April 19, 2024

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[THE INVESTOR] LG Electronics said on May 31 it has decided to simplify the employee hierarchy system overall in a bid to foster better communication at workplaces and keep the corporate culture more agile.

Under the new system that takes effect from July 1, the number of ranks under executive positions will be reduced from the current five to three -- assistant, manager and senior manager – based on their job and performance, not seniority. 

Currently, there are five ranks -- assistant, assistant manager, deputy senior manager, manager and senior manager.

“LG will keep trying to pursue changes in order to make more creative working conditions and horizontal corporate culture,” said Park Cheol-yong, the chief human resource officer.

Starting from March this year, the tech firm banned the usual Monday meetings, which had become so perfunctory that they often distracted employees from the business at hand. It also designated every Friday as a casual-outfit day.

In February this year, LG’s hometown rival Samsung Electronics changed the employment structure, streamlining the ranks and titles of employees.

Korean conglomerates have been often criticized for their oversized corporate organization and top-down, rigid corporate culture.

By Kim Young-won (wone0102@heraldcorp.com)