​[AI] Hyundai Motor Group speeds up changes to secure future competitiveness

Park Sae-jin Reporter Posted : 2019-03-28 10:06 Updated : 2019-03-28 15:49
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[Courtesy of Hyundai Motor]

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[This article was created to be used for Aju News Corporation's artificial intelligence studies]  

SEOUL -- Hyundai Motor Group has started a change to cope with the rapidly changing future environment. It has boosted organizational flexibility by shortening the level system for executives, while vitalizing the company by promoting some employees of its affiliated companies. The carmaker has also decided on the deployment of personnel from Hyundai Motor Group's Seoul headquarters to its Chinese firm to turn around the mood, which has recently been plagued by sluggish sales. With this opportunity, the carmaker is planning to completely revamp its long-standing organization culture by focusing on efficiency and speeding up efforts to secure long- and short-term competitiveness.

◆ Decrease of levels "6 to 4" in the level system for executives

Hyundai Motor said Wednesday that it will reduce its level system for executives from the current six-tier system to a four-tier one, starting from April 1. By integrating the previous executive level system of directors-level executives, directors, and supervisors into managing directors, it is going to maintain the current level system of the president, vice president and executive director.

Regular executive reshuffles, which were conducted at the end of each year, will also be changed to regular reshuffles linked to changes in the management environment and business strategies.

"It is part of our commitment to establish an autonomous and creative culture by giving excellent personnel various opportunities for growth," a Hyundai official said. "This is expected to further maximize the driving force and expertise of executives."

The personnel management system for general and research staff will also be improved. Key words of change are "expanding autonomy" and "expanding opportunities." Hyundai will conduct a personnel reshuffle within the second half of this year after collecting opinions from executives and employees.

Industry sources predict that Hyundai's decision-making system will grow to a new level. Hyundai Motor had previously introduced measures to innovate its corporate culture, such as flexible commuting and lunch time, and liberalization of dress.

"Since Hyundai Motor entered the system of senior vice chairman Chung Eui-sun, it has continued to make various attempts to strengthen its internal stability," an industry source said. "This will serve as an opportunity to rein in the slackening of growth in recent years."

◆ Some promoted executives of affiliated companies… Deployed to Chinese firms

Hyundai Motor has also promoted executives of some of its affiliates.

Kim Chang-hak, vice president of Hyundai Engineering's chemical plant business division, was promoted to president and named as CEO of Hyundai Engineering. Kim is considered an expert in the chemical plant and engineering fields. Along with finding new businesses, he is considered the right person for Hyundai Engineering's organizational innovation.

Lee Hwa-won, executive vice president of Hyundai Mobis' public relations office, was promoted to vice president and named as CEO of Kia Tigers. Lee, the new vice president, is an expert in public relations and communications, and is expected to streamline the baseball team's operations as well as communicate with fans. He previously served as the head of Hyundai Mobis' basketball team, Phoebus.

In addition, Kim Yoon-koo, executive director of personnel affairs at Hyundai and Kia Motors, and Yoon Seung-kyu, executive director of Kia Motors' North American division, were promoted to vice presidents.

During the reshuffle on Wednesday, the selections of outstanding female talents were also made. Byun Young-hwa, head of Hyundai's customer channel training team, Kim Jung-won, head of Hyundai Motor's accounting team at the Czech plant, and Cho Ae-soon, head of Kia's Gyeonggi-South regional headquarters, have been named new executives.

Hyundai has also decided to forward deploy its organization to normalize the business in China, which has been slow recently. All headquarters of Hyundai's Chinese businesses, currently located in Seoul, will be moved to China. By doing so, the carmaker plans to establish a quick and preemptive decision-making system centered on the site.

"This change is a measure to bringing changes in the way the organization thinks and works while counteracting against rapidly changing external environment," a Hyundai official said. "In the future, all of our executives and employees will do their best to become a company that will respond to customers' needs and create the highest priority values."