SK Chemical"s Management a Good Model in the IMF Era

Home > Business > Economy

print dictionary print

SK Chemical"s Management a Good Model in the IMF Era

Korean companies are amidst vigorous restructuring and downsizing of their operations.
But SK Chemical is now enjoying the fruits of that painful labor in their increased operating performances because the company had already completed its downsizing two years ago. When the company cut its workforce by 1,000 people in 1996, the action made a great deal of social repercussions.
But the result was great. Cho Min Ho, president of the company is saying, ' The company recorded 54.1 billion won in losses two years ago, but this year more than 10 billion won is expected in the black.'
In 1996, SK Chemical made extensive layoffs to decrease its employees by approximately 1,000 persons from 3,600 to 2,600 and now maintains the number to be 2,200. But the total revenue of the company increased from 670 billion won in 1996 to 740 billion won in 1997 and is forecasted to increase to 850 billion won in 1998. Accordingly, revenue per one employee was raised more than two times from 186 million won in 1996 to 386 million won this year. To raise the productivity, the company did away with many futile, redundant practices .
Meanwhile, the company changed its management strategy toward making its cashflow the most important. As a result of that, the company is now enjoying its stable state of management compared with its competitors.











Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)