HR Problems in Hyundai Motor Co.|Human Resource|Organization Behavior|Case Study|Case Studies

HR Problems in Hyundai Motor Co.

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : HROB058 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


HR Problems
Case Length : 12 Pages
Period : 1960-2004
Pub Date : 2004
Teaching Note : Not Available
Organization : Hyundai Motor Co.
Industry : Automobile
Countries : India


Hyundai Motor Co., formed in 1967, was a part of the large South Korean Chaebol - the Hyundai Group - until the group split in September 2000. In the last four decades, Hyundai managed to establish itself all over the world as a company producing reliable, technically sound and stylish automobiles.

In the 90s, the company started aggressive overseas expansion programs. By the late 90s, when Southeast Asian crisis struck, the company like all the other chaebols, faced serious financial problems. To survive, it had to cut its labor force. The company offered various retirement schemes, unpaid leave for two years, etc. to workers, and expressed its inability to support its entire workforce in the slack period.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

The unions refused to compromise and the management too held its ground. Finally, the government intervened to force a negotiated settlement between the union and the management.


Damage that unhappy management-labor relations can cause to an organization


  Page No.
Introduction 1
An Overview of the South Korean Economy 2
Labour Problems in the Late 1990s 5
Labour Problems in the Early 2000s 7

Key Words:

Hyundai Motor Co., Labor Unions, Southeast Asian Crisis, Hyundai Group, Chaebols, International Monetary Fund (IMF), Daewoo Group, Federation of Korea Trade Union (FKTU), Korean Confederation of Trade Unions (KCTU), Voluntary Retirement Schemes, Corporate Restructuring, Ulsan Plant, General Motors, Compensation Plan, Management-Union Relationship

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