Strategies for diversity in corporate culture
Since diversity is a problem in Korean corporations, some companies in Korea have endeavored to innovate their organizational culture in varied ways. They have adopted flexible working hours, a looser dress code, and new forms of address between employees (instead of using position titles, they now use “nim,” which is similar to “Sir” or “Madam”).
Korean corporate culture is famously homogenous in general. According to research done by the Korean Chamber of Commerce and Industry and McKinsey in 2016, in which 40,000 employees of 100 Korean companies were surveyed, only 23 Korean companies are at the top level of global corporate culture. Some 90 percent of medium-sized companies were “weak” in this category. Clearly, Korean corporate culture is not measuring up to global standards.
If this matters for organizations’ effectiveness, which has been shown again and again, what can we do? In the first place, the corporate practice that should be changed as soon as possible is the culture of “do as you are told to.” In order for this to be eliminated successfully, hirings and promotions based on homogeneity should be ceased and people from diverse backgrounds should be selected and nurtured. If people from diverse backgrounds are introduced to organizations and successfully made full contributors to the company culture, the diversity of opinions will increase, as well as the frequency with which employees challenge norms and conventions. Then, organizational performance will improve.
As mentioned above, Korean corporations rank poorly in diversity management. Based on Forbes’ 2012 “Global Diversity Rankings,” Korea is fifth-lowest in terms of the ratio of female to male talent in boards of directors. Specifically, it is 1 percent. Japan, which showed the closest characteristics to Korea, lagged behind with 0.9 percent. Thus, the diversity strategy that Korean companies should adopt first is the active hiring and promotion of female employees.
Korean companies can get additional benefits from hiring and promoting female employees besides an increase in diversity. In the first place, as the Korean population ages, the working age population decreases, and the average age in corporations will increase. Naturally, organizations’ energy is expected to shrink. The most immediate and effective method for resolving this is using female talent. Additionally, if more females work in corporations and earn salaries, their consumption level will increase, and markets such as retail and manufacturing will expand. Thus, an active interest in utilizing female talent will help us resolve other issues currently facing Korea.
It is clear that Korean corporations’ lack of diversity is increasingly becoming a problem in creating an effective corporate culture, and female-centered diversity strategies are a great way to combat this stifling homogeneity.