Changing Corporate Culture

Cho Yang-ho, chairman and CEO of Korean Air.
Cho Yang-ho, chairman and CEO of Korean Air.

 

In the wake of Cho Hyun-ah, former vice president of Korean Air Lines, being put on trial on charges of compelling a taxiing plane to return to its gate, and assault against a flight attendant, her father, Chairman Cho Yang-ho, is attracting attention by emphasizing the importance of communication and flexibility within his company.

In a seminar with the executives of the company on Jan. 31, Cho said, “As the company faces more difficult situations, its executives, including myself, should make efforts to lead by example and win employees’ hearts. Let’s focus on improving the wrong system and culture through flexible communication and sympathy with the employees.”

Cho also asked, “We cannot know what the problem and its improvement plans are unless we go out in the field. Please go out in the field and listen carefully to what difficulties they have. Also, please consider what we need to improve our company, including customer services and safety, and change it.”

He added, “Since services are for individuals, consistency is important, but it also needs flexibility within rational limits. If you establish regulations for consistency, please let employees know why you made such regulations and how far they can be flexible on them, going beyond just instructing them to follow the regulations.”

He also asked them to have a sense of crisis. Cho said, “The result last year was caused by external factors, including the drop in oil prices, rather than our good performance. As the competition among airlines is becoming fierce and low-cost airlines are growing, we can never be optimistic on the current business environment.”

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