The past and recent flare-ups between the South Korean Chaebols (leading figures of conglomerates) and labor unions in Korea are a good case example why the organization must initiate a right culture change in order to maintain competitive and successful.
Hofstede (1994) concluded that Power Distance is the extent that everyone in our society accepts the unequal distribution of power that determines the status of the people and structure of the organization.
It’s my opinion that these Power Distance and Collectivism dimensions don’t always remain stead-fast but do change as people become better educated, become aware of the current economic situation, and involved in labor union movement.
In the past, where the loyalty to the organization was a pre-requisite and where labor union was non-existent, employees were bound by this unwritten rule that has been passed on down from generation to generation; especially so in the countries that were heavily influenced by Confucianism such as Korea, China, and Japan.
People will accept the Power Distance and support the collectivism as long as the organization remain loyal and caring for their needs, but will slowly start rejecting the Power Distance and become individual as the organization becomes disloyal or uncaring for their needs. The past and recent labor dispute between South Korean conglomerates and labor unions are perfect examples that support this argument.
South Korean conglomerates have been very successful in maintaining a model organizational culture for many years with focuses on Power Distance and Collectivism; which demanded total devotion and loyalty of their employees. In return they gave the solemn promises to their employees that they’d be a part of the organization for life; which they could continue to do so until the businesses were affected by the globalization.
However, in order to remain successful in global competition and to increase revenues, many...