Chung’s Management Style Jolts Employees
By Kim Hyun-cheol
Staff Reporter
A series of surprise shakeups among top management at Hyundai-Kia Automotive Group is jacking up the level of anxiety among rank-and-file employees.
Although Chairman Chung Mong-koo, also known as MK, is known for his ``unorthodox'' style of management ― firing two vice chairmen two months after their appointment last week amid rumors of intense restructuring ― is making its employees wondering what's next.
``Although few talk about it openly, I know privately many employees are confused, wondering what's going on here, and on the chairman's mind,'' a manager told The Korea Times.
But he also stressed that unexpected executive reshuffles are nothing new and the ``stories are somewhat far from most employees.''
On Monday, Hyundai retired two of its vice chairmen ― Suh Byung-kee and Choi Jae-kuk ― and transferred Lee Kwang-sun, the president of the sales department, to parts affiliate Glovis.
Chung's personnel management style was the talk of the town in the past for keeping staff on their toes, but he showed signs of predictability with reshuffles after he was sent to jail for creating a slush fund and other irregularities connected to his effort to groom his only son Chung Eui-son to succeed him. Speculation at the time suggested that a tip from an estranged former employee triggered the probe into Hyundai.
Chung's so-called ``rugby ball'' management style, known for its unpredictability, continued in overseas markets last year, as he fired American market CEO Len Hunt barely two months after his promotion in February.
Company officials defended Chung's latest reshuffle as an effort to bring in a younger generation of executives. Now, most senior executives are below the age of 60.
But the generational shift also triggered speculation that the senior Chung is laying the foundations for his son to succeed him.
Chung Eui-sun, his only son, has been reinstated as Kia president. The retirement of two vice chairmen could pave the way for him to step in, according to industry watchers.
An analyst at a local securities firm said on condition of anonymity that there should be some alteration to Chung's style of personnel management.
``It is not desirable for the company to make the world feel it treats its executives like disposable auto parts,'' he said. ``Such a bulldozer-like style could substantially damage its credibility.''