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Global hr forum2008-watson wyatt-comparison of korean, chinese, japanese leaderships and their directions for the development of future global talents
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Global hr forum2008-watson wyatt-comparison of korean, chinese, japanese leaderships and their directions for the development of future global talents

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  • 1. watsonwyatt.com Comparison of Korean, Chinese, Japanese Leaderships and their Directions for the Development of Future Global Talents November 5, 2008 Seoul, Korea
  • 2. watsonwyatt.com Introduction Session Hyuna Choi Office Practice Leader, Watson Wyatt Worldwide - Seoul, Korea
  • 3. Leadership Survey Overview  The purpose of the leadership survey is to find out – How employees view their company’s as-is leadership level compared with to-be level – How strong the relationship is between current leadership level and employee commitment level – Whether there is any leadership difference among countries (Korea vs. China vs. Japan)  An international survey was conducted for employees in various companies in those three countries – Over 3,600 employees from 111 companies – Internet based survey during ’06.Nov ~ ’07.Sep. 3 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 4. WW’s framework for the leadership survey Leadership Trait  Logical thinking Leadership Skills  Communication  Self-confidence  Listen to others  Consistency & clearness  Characters &  Social humility  Emotional responsibility stability Affecting employee commitment Individual Team Company - Feel for growth - Objective - Vision - Fruitful - Operation - Mgmt. - Collaborating - Output - System & policy 4 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 5. Findings – Leadership levels by country  For as-is leadership skills, China is the top while Korean employees requires highest expectation 3.71 3.69 5 point scale 4.05 3.49 4.13 3.53 3.51 3.36 3.61 3.63 3.65 3.60 As-Is To-Be Korea Japan China Korea Japan China Logical thinking Communication 3.81 3.65 4.03 4.02 3.51 3.44 3.57 3.61 3.44 3.41 3.55 3.62 Korea Japan China Korea Japan China Self-confidence Listen to others 5 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 6. Findings – Leadership levels by country (Cont’d)  For as-is leadership traits, China is the top while Korean employees requires highest expectation 3.65 3.72 5 point scale 3.92 3.47 3.88 3.49 3.45 3.36 3.51 3.63 As-Is To-Be 3.34 3.46 Korea Japan China Korea Japan China Consistency/Clearness Social Responsibility 3.67 3.90 4.00 3.51 3.57 3.98 3.59 3.47 3.60 3.58 3.49 3.35 Korea Japan China Korea Japan China Stability Characters/Humility 6 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 7. Correlation between leadership and employee commitment Correlation Tendency by Country Implication  Korean employees show high 81.1% level of correlation between leadership and employee 13.4% commitment 49.5%  Japanese employees do not seem to be affected by Korea Japan China leadership level  Among various commitment factors, leadership level affects % of commitment factors which has more team related commitment factors than 0.3 of correlation with leadership level most highly 7 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 8. Key takeaways  The level of employee expectation regarding leadership was very much different by country. WW sees this differences come from economic maturity, social characteristics and profile of its leaders. Each country has to address its own leadership agenda.  Korea: What is important at this stage is not only building a new leadership style, but also changing people’s perception and expectation of leadership.  Japan: It has become difficult for leaders to motivate its employees by bonus, promotion or salary increase. As performance oriented management does not work anymore, Japanese leaders are required to create interesting and meaningful jobs for its employees.  China: Although the survey shows that Chinese employees are highly satisfied with the leadership, it might reflect that the employees are not so critical and have less expectation on leadership style. But the fast developing economy does require the Chinese leadership to be more balanced, more mature and more globally competitive. 8 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 9. watsonwyatt.com Korea Session GS Kim Managing Consultant/CEO, Watson Wyatt Worldwide - Seoul, Korea
  • 10. How are Korean Leaders Different?  Strong leadership styles are still widespread in Korea  Big gap between employees’ expectation and satisfaction toward their leaders  Extremely reliant on leaders in solving issues and especially shows a big gap in this area  Excessive dependency on leaders in managing cultures and organizations 10 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 11. Key Implications  Economic development aspect: As Korea’s economic development was driven by strong leaders, crave for powerful leaders has become common  Political and historical aspect: Stereotype of leaders are formed by prominent leaders who contributed in Korea’s growth throughout the history  Social aspect: Desire to escape from responsibility and extreme pressure caused by complicated social phenomenon  Discrepancy is eminent overall Discrepancy in Leadership Expectation Intensity  Dependency/expectation from leaders in Korea  Social maturity (Process, competency, democracy) Expectation Gap  General leadership curve Time 11 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 12. Programs and activities that help or aggravate leadership development  Development of “no leadership” model  Leadership that does not take away the fun (and give back to) from employees  Change in leader-oriented organization management style  Leadership by employees  Develop self-managed employee development training programs  Strengthen social atmosphere that promotes a strong sense of responsibility 12 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 13. Case Study  MNC A in Korea: Inner Energy, Passion focused - Identify businesses and jobs: Each individual discover business, so that solutions / projects / new services are driven around one’s own passion and interest - Roles of leaders: Minimal managerial job (related to management responsibilities), participate and take roles equally in projects, frequently receive directions and work from employees - Roles of employees: Have a strong sense of responsibility regarding each individual’s performance, highly self-managed and led despite considerable pressure - Focused on having regard for ‘fun’ between leaders and employees  B Company: Process driven and differentiated Responsibilities - Organization management: Managed according to a thoroughly established process, value processes and systems developed by the organization’s competencies, minimize influence of leaders - Differentiation of responsibilities: Clearly acknowledge different roles of leaders and individuals, differentiate areas where leaders and employees each have to focus, important to focus in one’s own area of job  C Daily News Paper: Fun and Responsible Culture - Leadership style of the CEO: Minimal involvement and expression of detailed work, continuous communication, execute employees ideas unconditionally (even if they are not related to the natures of their work) - Employees: Strong sense of responsibility, self-managed, minimal support from leadership, work for fun and not for reward and pay 13 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 14. watsonwyatt.com China Session Smilla Yuan General Manager, Principle Consultant, Watson Wyatt Worldwide - Shanghai, China
  • 15. How are Chinese Leaders Different?  According to the survey, overall satisfactory rate toward leader is high. – Key strength of Chinese leaders are “Strong sense of responsibility” and “good execution power”. – Chinese leaders are relatively weak in mainly two areas, one is setting up own career target, control emotion,etc. The other is in subordinates’ motivation and development.  Employees are working with pride of company and feeling to grow up, even they feel their workload is too much.  Satisfactory rate goes up when leader gives the feeling of fairness and stability and leader is strict to him/herself. First and foremost employees’ resistance is very high toward indecent leader. 15 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 16. Primary Factor Analysis : China First Factor Humanity and dignity as leader Second Factor Stable relationship with followers Third Factor Fairness Fourth Factor Ability to drive work 16 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 17. Key Implications  Under the fast-growing environment, China faces shortage of quality talent, and due to the “Lost-generation” situation, experienced leaders are in big shortage. Age Distribution of Population Average Age of CEO 60 50 49 45 37 “Lost Generation” of the Cultural 30 Revolution 15 0 USA Europe China Source: UN; National Bureau of Statistics of China & Province Sources: CEO Succession 2003 “The Perils of Good Governance”, Booz Government Statistic data Allen Hamilton and “China Leadership Style Survey”, 2005, Korn Ferry 17 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 18. Key Implications (con’t)  Because of big shortage of leaders, Chinese leaders are relatively younger than other areas, who might be lack of people managing experience, while these leaders are relatively strong in delivering result and execution.  When considering promotion, past performance and hard qualifications are most considered, while there is less attention to their potentials in managing people, including motivating and developing people. This might explain Chinese leaders’ weakness. 18 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 19. Programs and activities that help or aggravate leadership development  Arising trend shows that companies are looking forward to recruiting experienced leaders, and the leaders themselves care about their leadership style and are keen in developing balanced leadership.  Due to the talent localization, MNCs are more willing to invest in local leadership development by sending their senior leaders to participate external or internal leadership developing program.  State Owned Enterprises generally have traditional leadership standard and promotion criteria but now they also wish to benchmark global leadership standard so as to make the leadership globally competitive. Currently more and more SOEs start to set up new leadership models and leadership development programs.  Private companies leaders are generally strong entrepreneurs, while they are looking forward to developing professional leadership style to address the challenge of growing size of the company and the growing needs of management system standardization. 19 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 20. Case Study  As the largest mobile operator in the world, China Mobile adopted the Step-by-Step way to develop the leadership of the whole huge group. 2000.-2002 2002.-2005 2005.-2006 2006.-Now One CM One CM Public Listed Globalization Strategy Strategy Key  Market-oriented  Performance  Leadership  Recruit leaders Focus HR System oriented model design and and talent design and implementation globally implementation Leadership Customer Result Global Traits Strategy focus focus oriented Mindset 20 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 21. watsonwyatt.com Japan Session Shinji Kawakami Consultant, Watson Wyatt Worldwide - Tokyo, Japan
  • 22. How are Japanese Leaders Different?  Create a flat organization and promote delegation  Have enough competencies and responsibilities on their job  Have high self confidence  Give clear instruction to members So, they look excellent leaders ! 22 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 23. How are Japanese Leaders Different? However,  Jobs that leaders create are not exciting  Members can not have the feeling to contribute to the society  Members can not feel “I am growing”  Weak relationship with members 23 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 24. How are Japanese Leaders Different? Members’ expectation to leaders  Create interesting job which they can enjoy  Be respectable superior 24 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 25. Key Implications  Decrease in authority of position  Decrease in sense of belonging to organization  Decrease in so call “luck motivation” without “grows motivation” 25 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 26. Programs and activities that help or aggravate leadership development  Leadership that makes members engage in their job  Introduce HR systems that focus on “internal rewards” rater than “external rewards” 26 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 27. To make members engage in their job Significance Significance Vigor Pride Engagement Competency Difficulty Difficulty Competency of Job of Job Absorption 27 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 28. Total Rewards Equivalent Individual External Ex. Ex. rewards Basic Salary Short term incentive Internal Ex. Ex. rewards Improvement of Support to carrier work environment development 28 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 29. Case Study  Change in promotion standard in a major pharmaceutical company  Leadership training program in a major advertising agency  Other unique HR systems 29 Copyright © Watson Wyatt Worldwide. All rights reserved
  • 30. END OF DOCUMENT W W W . W A T S O N W Y A T T . CO. KR 30 Copyright © Watson Wyatt Worldwide. All rights reserved