Hyundai Motor flattens its management structure

Hyundai Motor Group said Wednesday it will streamline its organizational structure for executives in an effort to revamp its corporate culture and introduce a more efficient management system.

The company’s existing structure for executives will be reduced to four levels, with the director and vice president positions consolidated under the vice president title, leaving just the positions of president, executive vice president, senior vice president and vice president. The changes will be in effect from the start of next month.

The company expects the changes to make its organization structure more flexible and place more responsibility with the executives.

The organizational change is part of Hyundai Motor’s efforts to improve corporate culture. It has relaxed its dress code and work schedule.

The move also follows Executive Vice Chairman Euisun Chung’s appointment as CEO of Hyundai Motor and Hyundai Mobis last week. Chung is expected to shake up the company’s management structure in a bid to accelerate succession from his father and group chairman Chung Mong-koo.

By Chae Yun-hwan