LG loosens company’s hierarchical structure

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LG loosens company’s hierarchical structure

LG Electronics said Wednesday that it would simplify the company’s hierarchical structure to allow its employees more creativity and autonomy.

Under the current structure, the company has five ranks of employees. Starting July 1, it will be reduced to three. The rigid structure of Korean companies, which requires junior employees to be deferential to their seniors, has frequently been cited as an obstacle to active communication and innovative ideas, especially when it involves multiple layers of seniority.

“We believe the new structure, which will focus on workers’ roles, abilities and performance, will help employees grow further,” the company said in a press release. “The fast communication process will help us develop a work environment that is creative and autonomous.”

LG Electronics has been taking various steps this year to change its work environment so that people can “work smarter,” the company said. In March, it scrapped its ritual Monday meetings to allow its workers to focus more on tasks of the week. Many had been going into work on Sundays to prepare for the Monday meetings.

The company also adopted casual Fridays where employees can go into work wearing casual attire instead of full suits. Some departments within LG Electronics had already adopted casual workdays, but the recent initiative applies to all parts of the company, including headquarters.

And on Wednesdays, employees will be allowed leave work by 5:30 p.m. in what the company is calling “family day.”


BY KIM YOUNG-NAM [kim.youngnam@joongang.co.kr]



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