South Korea: Selecting and Developing Senior Leaders at Company A

This case is about Company A, one of the largest for-profit organizations in South Korea. The company has been successful in many sectors. However, recent radical changes in technology and business culture and environments have continuously threatened Company A's competitiveness and profitability. One main problem that had emerged was that an increasing number of newly promoted senior leaders were found to have non-satisfactory performances, and almost half of them were terminated following a recent annual personnel review process. This issue was primarily attributed to Company A's leadership not being aptly prepared to take on the challenges and responsibilities inherent to novel business areas. This case describes how Company A formed its current selection practices for senior leaders and developed programs aiming to help those chosen leaders flourish in new business environments. By studying this case, students will learn about the cultural characteristics of HRM practices in South Korea; identify the differences between high-context and low-context cultures; understand how country- or organization-specific cultures influence human resource management (HRM) practices as well as appreciate the key components of an assessment center (AC) and how an AC is designed and implemented.