THE EMPOWERMENT PROCESS IN A GIANT KOREAN CONGLOMERATE‐THE LUCKY‐GOLDSTAR GROUP

Abstract

Shows how Mr Cha‐Kyung Koo, Chairman of the Lucky‐Goldstar Group (one of the three larger conglomerates in South Korea), successfully initiated and implemented empowerment in his organization. Empowerment is the process of sharing power with employees, motivating them, and holding them responsible for continuous improvements. The process includes: (1) setting meaningful and mutually‐determined goals; (2) motivating employees to achieve those goals; (3) designing jobs so employees can utilize their creativity; and (4) rewarding outstanding performance. The empowerment process in Lucky‐Goldstar begins with autonomous management, i.e. with delegation of authority to each “culture unit”. Using internal financial audits and results‐oriented appraisals as two strong control mechanisms, each culture unit strives to perform effectively and efficiently. In that process Lucky‐Goldstar provides supportive actions to help the unit continuously improve performance. After each year′s performance, a “consensus meeting” and “signing ceremony” take place to confirm the intense commitment that is required to make the process successful.

Citation

Lee, Y.R. and Lazarus, H. (1993), "THE EMPOWERMENT PROCESS IN A GIANT KOREAN CONGLOMERATE‐THE LUCKY‐GOLDSTAR GROUP", Empowerment in Organizations, Vol. 1 No. 3. https://doi.org/10.1108/EUM0000000003444