Lg Group Developing Tomorrows Global Leaders Management Essay

Lg Group Developing Tomorrows Global Leaders c are EssayBased on the elemental charge philosophy ofcontention from a globose perspectivePursuit of best value for customer, employees and shareholders require the worlds best backup group by dint of watchfulness by article of beliefAnd contri stille to social unfoldment as a good merged citizen,Bon Moo Koo as a chairman of the LG Group, one of the three largest Korean chaebols, announced LEAP 2005 as mint of the future. It has a goal of limiting magnitude revenue to US$380 billion by 2005 with 50% coming from planetary sales. rebound 2005 centered on employees and this new vision would lead LG to develop the almost reenforceing workplace for employees.Mr. Y.K. Kim as the head of the LG Human imaging (HR) aggroup was charged with the task of identifying and developing in high spirits potential item-by-item and the global leaders that LG would need in the future. He worked closely with Dr. Michael Lee, Managing handle r of LG Academy (LGA). They estimated that LG would need approximately 1,400 new global leaders by 2005 with ab come out half would be Korean and the rest would be non-Korean.By 1987, LG had businesses and industries in chemicals, communications, energy, electronics, finance, insurance, machinery, metals, sports and trade. Even though LG was strong in Korea, it was not an international engine room or quality leader in any of its business segments, especially relative to world-class foreign competitors.A new corporal identity program was launched in 1995, Lucky-Goldstar Group officially changed its name to the LG Group. The logotype was designed to symbolize five let out concepts The world, The Future, Youth, Humans and Technology.Top wishment and HR team call for to create global working environments that embarrass both Korean and non-Korean leaders in prescribe to achieve the objectives of Leap 2005.Strategic analysis using 7s frameworkStrategyLow terms strategy (1947 19 87) centre on competing through depressive dis browse greet manufacturing but also strongly emphasized high production volumes under determine competitors with products of accept suitable, although not superior, qualityIt established Lucky-Goldstar brand as a low cost and acceptable quality products manufacturerValue strategy (1987 1995)Korean consumers were increasingly aware of and demanding higher quality products beca white plague of the standard of living change magnitude the ability to afford higher quality products and servicesKorean establishment began to relax trade barriers that made it easier for foreign companies to compete with LG in KoreaThe cost competitiveness of Korean began to slipStrategic druthers of LEAP 2005Focused on strategical markets that expected with economic growth and size, also the result of business opportunity in that marketTechnological revolution through innovation to be produced faster or more cost efficientlyInvestment for the greatest possible returnCustomer satisfaction as a key measure of successStructureCentralized decisiveness making and a top-down management processIn 1987, LGs heterogeneous affiliated companies were divided into 21 cultural Units consists of multiple Strategic Business Unit (SBUs)SystemsDepartments were marooned and sequentially handing off projects from product research to product design to engine room to manufacturing to marketing to salesManagers had to develop a new perspective on time based competition thus speed had to be a central value that permeated the groups socialisationShared ValuesFocused on valuing employees and contributing to social development through good corporate citizenshipIn 1987, cogitate on creating customer valueValuable components from old culture stability, harmony and respectEstablished and reinforce four new heathen elements quarrel, speed, simplicity and boundarylessnessStyleIn 1980s, the new management approach management by self-control for greater d ecision making autonomyCultural value of respect, translated into a top down management style and violence on hierarchyLeap 2005 required LG to change course to a global setting, leadership development emerged as one of the biggest challengesStaffManagers focused on producing high volumes and getting per unit as low as possible rather than finding out what customer wanted, developing high quality products or expanding marketing capabilities.SBU heads were given full profit and divergence responsibility for their unitsWithin SBUs, middle managers were charged with reviewing and reengineering business processes to ensure power and effectivenessCultural Unit presidents focused on integration and coordination crossways SBUsNeed more global leaders because LG had a domestic orientation in the past included both Korean and non-KoreanPeople from dissimilar disciplines and geographies increasingly needed to work together to analyze enigmas and figure out solutionsSkillsMany managers we re lack experience with decision autonomyNeed 100 of world class managers to achieve its target with more sophisticated association in financeRecommendationsCharacteristics of the human government activity that would help LG achieve head Koos LEAP2005 vision of the futureFirst, HR should be held responsible for defining an organizational structure. It should identify the model of the bon tons way of doing business. The well known 7s framework distinguishes 7 components in a companys architecture. LG Human resources Team should also used a change model to guide a transformation process at the company began by asking Who, Why, What and How. This model helps an organization identify the key success factors for change and assess the organizations strengths and weaknesses regarding each factor. As change agent, HR professionals do not themselves execute change, but they make sure that it is carried out. The hardest and most important challenge facing LG in that era was changing th eir culture. In helping to bring about a new culture, HR must(prenominal)iness follow a four measuring rods processIt must secure and clarify the concept of culture changeIt must articulate wherefore culture change is central to business successIt must limit a process for assessing the current culture and the desired new culture, as well as for measuring the gap between the twoIt must identify alternative approaches to creating culture changeHR strategies, policies, programs or practices translating the Chairmans vision into humansKey needed capabilities of LGs future global leadersManagers had to change their mindset from flawlessly executing orders to determining strategic directionManagers are required to have a clear idea of what customer needs, set and preferencesWorld class managers that have capabilities for success and growth strategiesLG needed a cadre of managers with more sophisticated knowledge of financeTo challenge and commemorate differently and to come up wi th breakthrough innovationsGlobalization they must be more literate in the ways of international customers, commerce, and competition than forever before therefore LG should increase their ability to learn and collaborate and to manage diversity, complexity and ambiguity.Profitability through growth they must also occasion more focus, more in touch with the fast changing and different needs of their customers.Technology the challenge for managers is to make sense and good use of what technology offers. They will need to figure out how to make technology a viable, productive part of the work setting.Intellectual Capital The challenge for organizations is making sure they have the capability to find, assimilate, develop, compensate and retain such(prenominal) talented individuals.Change, change and more change LG must be able to learn rapidly and continuosly, innovate ceaselessly, and take on new strategic imperatives faster and more comfortablyHow to identify, attract, select and hire, give lessons and develop, motivate, appraise and reward to perform at peak level, and retain the global leaders with the needed competencies and capabilities?The establishment of a development strategy is an important first step in the recruiting process. The second is achieving a fit between it and the rewards that an organization offers. A good fit must exist in in order to attract and motivate effective performance. The issue that needs to be considered when recruiting individuals relates to their need to perform. Attracting and recruiting the right talent is a critical part of managing human groovy and an integral element of the designing process in organizations.Companies are offset to evaluate their employees not only by objectives but also by the competencies they develop. One possible procedure is what is known as the balanced scorecard. Under this procedure indices of competencies are added to indices of results, and a weighted average is calculated to determine a final index, which tends to be tied to variable pay.Every company must decide what competencies it needs to develop in its managers in order to achieve its specific goals. The competency profile it chooses is a clear and accurate expression of the culture it wants to promote, and can therefore be used as a tool for cultural change.Core competence of the corporation incorporated learning in the organization, especially how to coordinate diverse production skills and shuffle multiple streams of technologiesHarmonizing streams of technology, organizing work, and delivering valueComplex harmonization of individual technologies and production skillsCould the team take the same approach with the Korean and non-Korean managers?Yes, as long as managers have some strategic competency as follows business vision, problem solving, resources management, customer orientation, effective networking and negotiation. And also leadership capacity with following basic competencies communication, org anization, empathy, delegation, coaching and teamwork.QuestionsWhat do you consider as the desired characteristics of the human organization that would help LG achieve Chairman Koos LEAP2005 vision of the future?If you were a genus Phallus of Mr. Y.K Kims LG Human Resources Team, what HR strategies, policies, programs or practices would you recommend to translate the Chairmans vision into reality?What were the key needed capabilities of LGs future global leaders?How would you identify, attract, select and hire, train and develop, motivate, appraise and reward to perform at peak level, and retain the global leaders with the needed competencies and capabilities?Could the team take the same approach with the Korean and non-Korean managers?