Student Questions - English

Chapter 4 questions

Startup has a more flexible organizational structure compared to existing large companies. However, I think that the larger the start-up, the less flexible the system will be. What is the method?

A. Some of the vertical structural systems of large enterprises are introduced.

B. Ignore the problem.

C. Flexible structure is not exist.

D. We have to give up the big stratup.


1. Q. Amoeba management is a management style that can be combined newly. If one team is formed, is each team electing a new leader? Or is it different from each cell?

A . It depends on the characteristics of each cells.

2. Q. How can we measure human capital according to the amount of education we receive?

A. There’s any specific criteria of measuring human capital.

3. Q. Korea's corporate culture has a lot of similarities with the ranks of the Korean military. People feel negative about the fact that the class structure is prevalent in our society. So, as people feel negatively, are they wrong in the corporate hierarchy, and should we improve? I wonder if it could have made such a big difference to our nation's large conglomerates like Samsung.


4. Q. If you pay a certain amount of money, it means that you don't have a legal case, and it doesn't mean that you don't have a legitimate lawsuit against the media and the public. Is there a policy like buyout in Korea?

A. It is a similar concept of 퇴직금 in Korea

5. Q. Companies may fire old workers. Regardless of the outcome, older workers have been involved in the field for decades, and they may know important information such as the know-how of the company and the secrets of the company. Then, the company will have to carry out a lot of disadvantages when laying down its old workers. Is there a response to the company's response? Or can it include the above mentioned clauses in buyout?

A. Some promises may exist between companies and those old workers.


1) When a company recruits applicants over-wrapping to promote its company, it is more likely that applicants will quit after entering. If so, should the company notify the company of the negative as well as the positive to the applicants?

- Those who have only seen positive aspects of the company are more likely to be disappointed. Therefore, it should inform the negative side, but also it has to tell applicants that the positive part is enough to compensate them.

2) There are some employees who are negotiating a salary raise with another company that can pay more than the salary paid by an existing company. Then how many time the company can tolerate the total number of raise negotiations per person in this case?

- Employee wage negotiations are always available if that employee’s market value has risen. Because employee wages are valued based on the market value of the employee.

3) What is the reason why it is advantageous to refuse to raise the wage in case of negotiations with workers whose wages are lower than the value created by the workers?

- Even if companies pay that much, it is very likely that employees will be able to achieve that level of performance or even lower that level.

4) Besides the cost, companies need to consider the value aspect. Then isn’t the centralized type that provides efficient and quick service of good quality by unifying the system more efficient than the decentralized type from that point of view?

- While the time is changing fast, centralized manner is very inefficient because it takes a long time to change. So it is reasonable to present basic guidelines to various organizations and in case of rest things apply them according to each organization’s situation.


Q1 : There are many companys that training employees. However, many employees want to go major company. So I think it is inefficient. How can the company hold the employees?

A1 : It may be a little too much for me to think, but it would be a way to write a contract to educate your staff. I think I can reduce the turnover rate of my employees if I receive an education and I do not want to leave for a few years or if I give some degree of education and raise an annual salary or a certain privilege.

Q2 : : In this class, professor said it’s better to come back after turn over. However there are many risks to go out the company secret information. How can solve this problem?

A2 : I have negative thoughts about coming back and coming back. The person who turns off once thinks that he has made a turnover after a long decision and turned his back on his condition. In addition, I think that it is possible that we can reveal the secret of our company to be able to get information of an opponent company by coming back again.

Q3:There are many reasons to turn over. What is more efficient to take hold or make other people to come?

A3 : I think it is more efficient to invest in bringing other talented people than to invest time, money, and effort in getting someone to turnover. I think we can pick the people we need and experience the work of other companies so that we can make things easier. I think it is more efficient to work with someone who is coming rather than grabbing someone to leave.


Question #1/ Usually small company have high turnover rate. Is that just a company size difference or is there any other reason?

Answer > In addition to the size of the company, small companies have fewer salaries than large companies and many companies do not have bonus or incentive. Even the salary is delayed. Decisively, as the scale is small, the amount of work assigned to one person becomes excessive. And this is considered as a factor of high turnover rate.

Question #2/ For Amoeba Management, each leader should have to think about not their own profit but whole company profit. In current corporate structure of Korea, is that a possible thing for leaders throw away own’s selfishness and only focus on company’s profit?

Answer > In the need for restructuring, the way of Amoeba Management that everyone participates seems to be the opportunity to all managers and employees who are looking for a desirable management paradigm.

Question#3/ Many people think experience work at medium-size businesses is one of the career. But for Medium-size company, moving to conglomerate of educated employees are lot of loss. In this situation, as a leader of medium-size business, how could they do attracting excellent employee and make them stay at company?

Answer > Nowadays, there are many places that support education of medium-size businesses for free. Medium-size business can use this kind of support to save money. Also, medium-size businesses need to pay attention to their treatment first to maintain their employees.


Q. If there is a conflict between young generation with new skill and established generation with depth in technology, how should the company coordinate them?

A. I think firm first have to do mentoring system. And match employees with fit them personality. This method can reduce conflict.

Q. What criteria should be set to target based on the lay off?

A. firm have to think various side. Like productivity, attitude and many other things.

Q. How can company find out raiding be effectively used? And which method company have to use for the employee has the right value for company?

A. raiding can effective when other employee would be more suitable for the job.


Q 1. When a company apply Ameba management to itself, there will be lots of complains. How manage this problem?

A. We should make an incentive for who are good at managing and work in changed condition.

Q 2. What are solutions of minimize the different of turnover rate between female and male?

A. Based on a policy of government that makes married couples be easier to take care of babies, companies should follow this.

Q 3. Start-ups have grown with flexibility but when they grow up enough, what should they do for managing effectively?

A. It depends on company. If the company feels it is not effective anymore, company should change its condition, management and decision makers.


1. Q. I am curious about your personal opinion on this government's amendment of labor law.

A. Not answer.

2. Q. I am curious as to whether the reduction in working hours will help to create youth jobs and stabilize the employment of workers.

A. The sharing of work through shortening the time in the present can be seen as a global trend. Korea should also revise the Labor Standards Act in the right direction to raise labor productivity through shortening working hours and ensure that employment creation effects occur properly. We should prepare reasonable countermeasures through consultation between labor and management so that the side effects that may occur during the implementation process can be minimized.

3. Q. It says in the text that balance between young people's turnover and existing employees is important. I am wondering what happened when I was working as a manager in practice.

A. Not answer.


1. When you introduce an amoeba-style management structure, some people will adapt well to the structure, but some people will not be able to adapt and confuse. How should you solve such people at the company level?

A : The company can not be responsible for the staff's adaptation. The structure of the company is something that employees must follow.2. What is the way to minimize the damage caused by the company when the key employee leave the company and how to replace the person's vacancy?

A : Finding the right person to get a quick job turnover when you see signs of getting or moving in from another company.


1. Turnover has a benefit. By changing environments, the company can get positive advancements. Is it necessarily?

A. Yes, Through turnover, we can create innovation of company's culture.

2. Turnover has many benefits and costs. If you want to make a offset(=zero sum), which one do you consider at first?

A. At first, we should know exactly what is the benefits and costs when we do turnover.

3. If you are the public officer, can you change the another job in Korea?(It has little bit risks.)

A. In my case, I have a problem to change the another job in Korea. Because of reputation of public officer(ex : safety and long-run)

이권희 ch4

1. The amoeba management structure in Korean companies that emphasize hierarchical order seems to be subject to many difficulties. Especially the high-ranking people familiar with the vertical structure are expected to rebound. What specific measures can be taken to overcome their objections?

-Step-by-step introduction is required.

2. Startup has a more flexible organizational structure compared to existing large companies. However, I think that the larger the start-up, the less flexible the system will be. What is the method?

-Some of the vertical structural systems of large enterprises are introduced.

3. Unlike the past, I think that the turnover rate of employees is high. Do you think that it is more costly for employees to leave and for employees to leave?

-Employees who come to turnover need more money.

Chapter 5 questions (decision making)


1. It seems that decentralization is very ineffective for companies that have reached certain level of size. However, there may be some times where flexible ideas needed to be exchanged. So, how could decentralization could be effectively applied to companies with sizes.

A. Use centralization and give some more authorities to individual department

2. Today, creativity is needed to successfully start a startup. So, would flat organization structure be always suited for the start up?

A. It depends on the type of startup and performance of each individual.

3. Often, hierarchy system is used for most decision making. However, new type of systems is used today and latest model may be ameba management. Can ameba management model be applied to any companies regardless of it size?

A. No, there is no absolute answer that can be applied to the structure of every company.


Q1. There are many kinds of decisions in an organization. What decision is the most important or complicate to the decision makers? And what step is the most critical in all decision process sing?

A. the role of decision makers is important to organization. then, every decision is most important as well.

Q2. In my opinion, some decisions like an incentive from the top is only focused on outcomes. However, it will make a positive result when they focus on ‘people’ in a long term. Because, the purpose of incentive is not company profit but staff motivation. But, is this used for proper purpose in the real world? Especially, what is the situation in Korea now?

A. it depends on companies. Good companies which people want to work for are having a great incentive system.

Q3. What kind of company is the best fit for centralizing a decision? And why? Then, How about decentralization?

A. Companies that need quick decisions are suitable for centralizing system. And companies that need creative decisions are suitable for decentralization.


3. Q. Three Advantages of Decentralization : Saving the Time of Management, Management of Management Technology, and Its Commitment to Tasks Given the advantages of the following, is there an industry advantage over centralization?(Excluding military personnel)

A. In the case of centralization, high level of speed and in terms of a good leader, high level of result could be advantages


1. Creative and control are the opposing concepts in decision making. If so, what are some of the more necessary concepts in Korea now?

-We need more creativity in our country.

2. Most of Korean companies have a vertical organizational structure. If we turn this into a horizontal organizational structure, there could be many problems. How can we minimize the problems we have to change?

-Step-by-step introduction is required.

3. Centralization and decentralization are different concepts. Which do you think is more efficient when making a decision?

4. Specigic knowledge has preferred decentralization. If so, I wonder why you prefer decentralization specifically.


1. In recent years, Korea has shifted from a traditional vertical organizational structure to a horizontal organizational structure. But, when we share opinions with each other, a lot of conflicts arise and transitional problems such as the fact that decision making does not progress rapidly occur. How can you manage your organization as smoothly and rationally as possible in this situation?

A. Managers have to take the initiative. They have to create an atmosphere where employees can discuss freely regardless of position.

2. What are the qualifications of a person in a high position in a vertical organizational structure?

A. Attitude of listening carefully and trying to communicate each others.

3. The number of start-ups is increasing. As the number of organizations grows, how do you manage the main conflicts that arise during the process of expansion or organization management in the expansion process?

A. In the beginning, the vertical organizational structure should be solid. Responsibility must be clarified.


1) Decentralization is also necessary because it is difficult to utilize scattered ideas if there is no centralized system for connecting information from the center. So isn’t a central system more necessary than decentralization?

- Recently, with the development of technology, it is possible to directly analyze and apply the information obtained from various regions. Therefore, because the information can be fully utilized in individual units, the central system can not be said to be more necessary than decentralization.

2) Did the benefits of decentralization decrease much compared to the past, as the special knowledge became general knowledge by the development of the Internet?

- Although the existing special knowledge became common knowledge due to the development of the Internet, there are many possibilities to generate special knowledge by utilizing it. So the benefit of decentralization has not been reduced, but the benefits have changed because of how it is utilized.

3) If employee is so challenging, false positive error is likely to occur. If employee is so conservative, false negative mistakes often occur. So both sides can harm the company in terms of the company’s benefit, but if company should choose one and hire, which one is universally chosen?

- False positive errors are less dangerous in case of startup which does not loose much things, but in case of large company, false negatives are more secure. Therefore, decisions will vary depending on the size of the enterprise.


Q1 : How can teach other people that the information and knowledge can’t see? And how can manage it?

A1 : Because information and knowledge are invisible and people have it, I think it is important to manage people to manage it. I think it is important to be able to communicate well to others and to keep secrets.

Q2 : To make information and knowledge document format, there are many advantages. However the most disadvantage is security problem. How can prevent this problem?

A2 : I think it is better not to document information. Documentation is easy for anyone to understand and I think it is the most vulnerable to security issues. I also think that knowledge and information are important factors that can make me different from others. If you do not document it, you only have to keep the knowledge, but if you document it, it will cost more.

Q3 : To increase the quality of decision making, it need investment. Can it be increase with traditional method?

A3 : I am investing a lot of money to improve the efficiency and quality of decision making, but I think there will be no major change in the quality of traditional decision making methods and costly decision making methods. Also, I think that investing the cost and effort here will give you better results.


1. In the time of economic crisis, job application rates increase because labor market contracts and number of unemployed people increase.

2. It is better to hire skilled professionals because their input will bring more benefits to the success of project.

3. There will be no rivalry between two products because each product’s success can benefit the other.


Question #1/ There are Centralization and Decentralization in decision-making process. As a leader of the company, when choose one of two of them, is there any standard or situation clarifying for them?

Answer > The organization is usually mechanistic when they choose centralization. In centralization, decision-making kept as high as possible and most communication is vertical. And organization is usually organic when they choose decentralization. In decentralization, authority to control tasks is delegated and most communication is lateral.

Question #2/ In Decision-making process, Creative are incompatible with control. Is that possible equalize all of them in decision-making process? And in current corporate structure of Korea, which concept is more focuses on more emphasis?

Answer > The two concepts cannot be made equal. It is true that Control should support Creative. Many leaders are hesitant to implement a bottom-up approach. However, for the creativity of the organization. The leader must lead the organization to be self-directed rather than a structure that recognizes the leader. In the end, leader had to support creative by loosening control.

Question #3/ In Horizontal organization structure and vertical organization structure, which organization structure is possible to draw more efficient decision-making?

Answer > Korea has had a vertical organization structure from the past, and has grown a lot in the past in its structure. Horizontal organization structure can do more flexible decision making. On the other hand, vertical organizational structure is not flexible, but decision-making speed is fast and intuitive. In other words, the structure in which the organization operates depends on the culture of the company.


Q. How can we maximize the role of the Middle Manager and make it decision making effectively?

A. Like sales work or susceptible to trend kind department can be effective. Because middle manager can be more sensitive and they deal with consumer more.

Q. How can company solve the coordinate problem in different organization units?

A. Firm should give them pressure.

Q. In decision making process, which situation used centralization/decentralization and how can company maximize the effects in the chosen method?

A. Economies of scale or Public Goods, Better use of central knowledge, and more. Centralization would be better. Decentralization would effective at perishable information, complex information, and more.

Q. If company use centralization decision making, what talent should the company see and employ the employee?

A. leadership, insight and more. Firm should watch varied sight of employee. And firm should watch his communication skill too.


Q 1. Can Robots decide a company’s policies?

A. Not yet. People are human resources and robots decide based on past experiences.

Q 2. Is an intuition important to decision? Can an intuition be a factor?

A. Basically, it’s not logical, however, it can be a factor.

Q 3. If a decision failed, which is more important to retry the action or redecide?

A. Retrying is the first step because redeciding is costly.


1. Q. the context of Capitalism 4.0, I am wondering to what extent government intervention should take place.

A. Both the US President Trump and the British prime minister, both in the age of infinite competition, are focusing on government intervention rather than on market principles. Economic conservatism has virtually collapsed. In the meantime, the role of the state as a guardian of the people, as insurer, as a provider of education, health service and infrastructure, as a public goods supplier, as a regulator of monopoly, and as a re- It is necessary to rethink the role of markets and nations.

2. Q. I have seen news that the Google CEO has not solved the hiring problem for new Googlers. I was wondering how you think about the recruitment method that competes for this competition.

A. The reason for the excessive and irreverent speculation of the present is because of lack of good jobs. The job hunting is expected to continue at a time when the global recession is prolonged. It is hard to find a clear solution at this time, although social capital is wasted because of the indiscreet speculation craze that does not help the actual job.

3. Q. In business administration, human resource management is only a way to maximize profit, and I wnder if corporate CSR activities should be viewed as a strategy to increase corporate profits

A. There may be a difference between economic and social perspectives. In planning the CSR activities, we must pursue social benefits that are in line with the original purpose, but we think that we cannot but consider the corporate image and economic benefits in reality. If we cannot keep up with the modaration, we think CSR activities are likely to fail.


3. Which of the horizontal and vertical organizational structures can make more objective decision making? And what should we do to resolve the disagreement that arises when we make decision making in a horizontal organizational structure?

A : In a vertical organizational structure, one final decision maker makes all decisions, so it can make a wrong decision based on the judgment of the person. However, in the horizontal organizational structure, more opinions can be collected and more objective judgment can be made. Instead, you need to be able to arrange a mediator to prevent disruption.


1. Assuming that it is not always possible to make the right Decision Making, how can you minimize regretting even if Decision Making fails?

A. Make a choice that will not be a big blow even if you fail to make a decision.

2. Examples of decision making through extreme centralization or extreme decentralization?

A. An example of the extreme decision making of centralization and decentralization is military. Normally, each commander moves separately, but during the war, the president moves all of organization.

3. If creativity and control are contradictory, but what is more important in both, which is a little more important?

A. Depending on the nature of the job, the perfect control actually comes from creativity.

Chapter 6 questions (organizational structure)

1. Why do many companies fail to cast away this hierarchical structure even though they evaluate the hierarchy structure as an archaic relic?

A. Management is easy from the standpoint of the company. It is simply because of that reason.

2. Coordination means that each department has to act like one body for the ultimate goal of the company. Is not coordination difficult for the horizontal structure of the company that respects individual personality?

A. Yes, It is. But, It is important to remember that respect for the individuality of each member is also a benefit of the company.

3. What should be done if outsourcing leads to the moment when we need to share corporate confidentiality?

A. Depending on the method, it is necessary to give a grade to confidentiality and to provide only as necessary.


Q1. Which of the decentralization and centralization is more appropriate in the organization's decision-making process is related to the characteristics of the organization's leader as well as the organization's own characteristics?

A: Dictatorial leaders are very instructive and do not allow participation in decision making. Centralization is therefore appropriate. On the contrary, decentralization is more appropriate because participatory leaders encourage members to suggest diverse opinions.

Q2. In the textbook, top management needs to focus on important decisions by keeping lower level management focus on less important decisions in order to avoid overwhelming centralization and to save the time. However, is this decision- making process itself centralized, isn’t it?

A: No, it isn’t. Decentralization enables top managers to spend more time and effort on their organization's long-term planning and critical issues, thereby enabling effective organizational operations. Regardless of how much the degree it is.

Q3. Can Centralization and decentralization then be pushed one way at a time, rather than alternating between more appropriate ways depending on the circumstances of the organization?

A: Rather than being swept by a changing situation, it is also a good strategy to keep the way the organization pursues.


4. In the management of human resources, there are 4 steps to start something.(Initiatives, Ratification, Implementation, Monitoring) Which one is the best step for you?

A. Monitoring - Through feedback, the same mistakes should not be repeated and the cost should be minimized.

5. Most companies in Korea have hierarchical structures. Is it efficient for working or doing the job?

A. It is effective, but it is difficult to say that rational decisions are made based on the opinions of all.

6. The firm, Disney, changed the strategy.(In short, centralization--->decentralization) What was the reason for success?

A. Because it was necessary to accept the opinions of more diverse departments.

(easy to reflect the opinions according to decentralization than centralization)

Chapter 6


1. Q. This is a question relating to functional structure. Employees work with colleagues who have a similar organ in their organs, with colleagues who have similar organs. Therefore, it is natural for employees in each department to have the appropriate competence and knowledge in the department. For example, employees in marketing need to have talent and knowledge in marketing. It is said that "A Functional Hierarchy makes it easier to design what we will call Narrow jobs with a limited number of tasks. And, of course, narrowly designed jobs tend to be quite compatible with narrowly focused human capital." Of course, it's not easy to be a part of a profession, and it's anybody's desire. But I think specialist is not enough in this society. I suspect that the choosing Multi-player is more suitable recruitment tool in the field for our society.

A. Also it depends on the characteristics of each fields. Some specific fields may need specialists and some fields may need professionals for convergence.

2. Q. In the case of Divisional structure, each division would organize a separate division of functional structure, which would include marketing departments in each division, as well as a design department. Eventually, we gather together and we think that if division is going to be a single company, it's going to be difficult to converge into one concept. I'd like to know how cooperation is supposed to happen.

A. That’s the reason why a good leader is needed.


1. It is a trend that is gradually changing into a horizontal organizational structure. I think that a vertical organizational structure is needed to some degree in order to make decisions and to manage work efficiently. Why did the vertical organizational structure gradually disappear?

A. Vertical organization structure created a coercive atmosphere. This atmosphere was changed because it was detrimental to organizational development.

2. Even if a company that has a horizontal organizational structure sets out various devices for it, it seems to have an implicitly vertical organizational atmosphere depending on the individual's career experience and the salary level received. How can a horizontal organizational structure work in this situation?

A. What is important at this time is the role of a person in a higher position. they must take the initiative with their responsibility and duty as much as they are in a high position and communicate smoothly with others.

3. In a horizontal organizational structure, the problem of decision seems to be big. What are the practical and quantitative ways to make efficient decisions in this structure?

A. Making a prototype and experiment with AB testing

4. 교수님께서 경험하셨던 대기업과 스타트업의 조직 구조의 차이가 궁금합니다.

A. ???

5. When business is started, the matrix structure is compulsively used in a firm because of the shortage of personnel. However, as the size of the company grows, it will gradually become a different organizational structure. Is there a general order in which organizational structures change as companies grow?

A. Beginning with the matrix structure, we gradually show the horizontal organization structure. Then, when the number of people increases, it has a rank system. In this condition, the structure changes to a vertical structure.


1. Stable functional division approach cannot be always efficient to the company, because their response to changes is slower compared to other approach.

2. Managers must observe potentials of employees in order to assign them to right positions and make it less costly where they can be more productive and profitable.

3. They must consider factors like company’s main activities and their goal, time and cost that are needed to perform each task.

4. It can influence organizations with hierarchical structure who must respond fast to current changes in nowadays world, because they need young professionals more.


Q1. In the case of the matrix structure, if the employee is included in more than one team, but the bosses of each team have their own goals and if the goals conflict with each other, what should employee do?

A: Standing a line well is also an important ability which a employees should have.

Q2. In the textbook, the flatter structure has a greater span of control. Does not an organization need a large number of managers or job title system if each employee has a great ability and their performance are excellent?

A: Yes, because they can control themselves and they know their task clearly in their work.

Q3. How can solve the problem of network closure and reduction of organizational flexibility arise due to the prolonged network structure?

A: In-house venture and outsourcing can solve this problem.


Q1 : Is it bad to take many steps to make decision? It can be more careful and remove some errors.

A1 : If you go through a lot of steps in making a decision, you have the advantage of making more informed decisions and making more decisions. However, you should use these decision-making methods where you need to be careful in making decisions rather than requiring quick decisions.

Q2 : army organization`s decision making is not democratic, but it is efficient. Are there some organization like army?

A2 : In the case of the military organization, the hierarchy must be clear, and the organization should not depart from the rule, so it should not be democratic but coercive. In the case of construction industry or manufacturing industry, it is safe and more efficient to follow established orders and rules, so I think that coercive decision making is more effective than democratic decision making.

Q3 : It is changing by company`s size and characteristic, How should we structure our organization?

A3 : If the organization is small, the horizontal organizational structure can make democratic decisions and harmonize with each other. If the organization is large, it will be easier to manage many people with a vertical organizational structure.


1. In the textbook, the company tells the company that it is profitable to hire a specialization. Recent industry trends suggest that it is much more likely to succeed in creating new value by combining knowledge with other fields as well as knowledge with one another. Would not it be profitable for the company to hire people with knowledge other than those who are specialization?

A : Strictly speaking, It is right that the company hire both. If a person with a lot of knowledge has come up with an idea or direction, it would be optimal for the Specialization to lead it.

2. In a textbook, a company is a class society and it is more efficient to have one decision maker. So why do companies in recent years want to have a horizontal corporate structure in reverse? For example, the professor said that the ameba method is not a specific class, but that it plays its role when it is needed. According to the textbook, it is more efficient for a person to make a decision by drawing one elite than that ?

A : Decision makers do not decide everything, but rather they coordinate and finalize their opinions to produce the most correct result. In other words, it is not a dictator but a democratic leader.

3. The most important opinion of a company is that it is the opinions of the people who are at the bottom of the hierarchy in the enterprise, who are connected to the outside world and often have many things to do. So, what should a company do to create an environment that best meets the above without the midst of the opinions of the people in the vertical structure of the company?

A : The role of the middle manager is important. Intermediate managers should meet frequently, without ignoring subordinate positions, to gather their opinions and communicate them as they are to the highest level.


Q1. As we can see this chapter, there are various organizational structures among companies. In case a company want to change their structure that is implemented in long term, is it possible to change their system rapidly? If it’s possible, how difficult would it be for you?

A. Once the organization is established, it is difficult for the company to reorganize their system.

Q2. Each structure has both strength and weakness at the same time. Could we have an ideal structure for our company? In other words, is there a way to get the best of each structure?

A. Depending on the type of company. Consider what is your own business model first.

Q3. Division and coordination is the most important factor in organizational structure. Who has the right to decide about dividing and coordinating? Who would be the best take that duty for a company?

A. A senior official or a professional manager of the company will be appointed

Q4. Network structure is increasing these day. Therefore, outsourcing system is widely used now. It can save much cost. However, how we manage the people in outsourcing business? Or a lot of conflicts from them? Is it the real effective way to cost-cutting?

A. Appropriate management systems should be created. Using good relationships with them can save a lot of money.

Q5. In the same situation above, do the employees in outsourcing company have loyalty to the company? If not, how can we make a positive relationship?

A. They should be considered equal companions, not the relationship between subordinate and superior.


1) In a hierarchically ordered organization, there is a high probability that subjectivity will intervene relatively. Then if non-quantified information is reported in this framework, what is the way that the content is not distorted?

- It would be possible to solve the problem by minimizing the revision of the document when moving step by step so that the subject is not intervened or by sending a large number of e-mails in a reference format to the persons concerned.

2) In his book, a good performance evaluation is not only a consideration of his or her achievements, but also the positive or negative impact of the employee on the outside. Then how can this be measured?

- In order to know the effect on the outside, we need to see through the peers around that person. So in addition to supervisor evaluation, multiple evaluation rated by a colleague should be introduced.

3) Does informal network organization actually help businesses? If so, is it only for organizations that are purposeful for businesses? Or is it possible to a simply group?

- Unless it is an organization that voluntarily meets to solve corporate problems, such as Toyota, but simple friendship will be difficult for the company to achieve the effect of investment.

4) One of the disadvantages of Matrix that mixing functional and departmental advantages is that there are both supervisors so it takes a lot of time to make a decision. Then is it possible to resolve this problem by consensus through preliminary meeting of directors and presenting guidelines.

- It may not be perfect, but if companies provide guidelines through prior consensus, they will be able to minimize the amount of time spent communicating.

5) Of course, functionally dividing the workforce has the advantage of specializing employees. However as the book said, recently, the departments were interconnected, so they have to understand what each other is doing. And they can motivate staff and make staffing very flexibly through job rotation. Then why do companies need to specialize their employees, nevertheless?

- It is important to know various tasks, but basically employees need to have expertise in their work. Also, when employee need to know a variety of areas is time to become an administrator. so all employees do not have to know all the different areas.


Q 1. In case start ups become bigger, which structure should they use?

A. It depends on a company. There are single decision making, matrix structure, and network structure. A company should decide which structure it will use considering its employees and itself.

Q 2. Although single decision maker is efficient, why other structures be used?

A. Because it is a culture or settled already.

3. Do companies need outside helpers when using coordination mechanisms?

A. Sometimes they need. There are two types of coordination: Synchronization and Integration.


1. Why do many companies fail to cast away this hierarchical structure even though they evaluate the hierarchy structure as an archaic relic?

A. Management is easy from the standpoint of the company. It is simply because of that reason.

2. Coordination means that each department has to act like one body for the ultimate goal of the company. Is not coordination difficult for the horizontal structure of the company that respects individual personality?

A. Yes, It is. But, It is important to remember that respect for the individuality of each member is also a benefit of the company.

3. What should be done if outsourcing leads to the moment when we need to share corporate confidentiality?

A. Depending on the method, it is necessary to give a grade to confidentiality and to provide only as necessary.


1. Q. How is one person having ultimate authority be the most efficient for organization decision making process when other wouldn't agree to the decision making and lose their motivation to work?

A. When the work needs to be done is simple and doesn’t require much thinking process.

2. Q. For matrix structure, since each person have two bosses, what should the employee do if the order from the bosses collide against each other’s decision?

A. Ask for cooperation between two bosses.

3. Does the organization structure have to take only one type of the structure? Can't it be combine according to its needs?

A. Yes, it’s possible.


1. Q. There are several organizational structures in the text. In the end, when all the decisions are made by the CEO, I wonder what organizational structure is in place to check the CEO's inability or dogmatism.

A. Steve Jobs was fired from Apple CEO due to his arbitrary management. The corporation is operated by consultation of the board of directors. It is also the board of directors to determine the authority of the CE

2. Q. I wonder what kind of place is in the representative enterprise using the Matrix or Project Structure.

A. I couldn't find it.

3. Q. These two problems, Synchronization Problem and Integration Problem, are not clearly understood. I'd like you to explain it again.

A. Coordination problems that od not require units to communicate with each other in order to coordinate. The output of workers must be synchronized in some way, but they do not need to speak to each other to do so. The quantity and timing of assembly line work is an example in most cases.

Integration Problem is a problem: there are multiple pieces of specific knowledge that must be combined to decide how to design the product. The firm cannot decentralize the decision to one of th groups, or the decision will emphaseize that group's specific knowledge but ignore the knowledge from the other groups.


Question #1/ There are two types in coordination. Synchronization and Integration. What’s the clear difference between them?

Answer >

Question #2/ The benefit of hierarchy can be organization is wide knowledge and technology. If then, hierarchy in current Korea society also have this kind of function?

Answer > Korean society was an academic society with a very high relationship with education and hierarchy. It seems difficult to function in Korean society. And fundamentally, it is necessary to mitigate the pressure which is concentrated too much on a specific field of Korean society.

Question #3/ There are slow decisions among the parts that generate costs in the organizational structure. If then, how these parts come about as costs.

Answer > companies that are slower in decision making than competitors lose the opportunity. For example, companies such as Google and eBay do not make the mistake of missing an opportunity. Because only half of the decision are right and the rest of them need to be corrected, they do not make the pre-analysis longer. Ultimately, the cost of slow decision means an opportunity to compare with competitors.


Q. When specialization in skill employee and has other skill employee work together, how should company have to do prevent conflict and end up nicely?

A. firm should signal them. That they can dissolve the team. And this can make employee to solve their conflict.

Q. If the company had established the initial division of the Define division and did not fit in with the company's assessment, how would the company be able to set up a successful baritone division without causing confusion?

A. firm should change their define division gradually. And they also have to think about employee’s thinking. And prevent their complaint.

Q. when a conflict between boss in a matrix or project structure, how can the company lead a conflict solve, and make successfully end the project?

A. firm has to pressure their boss. And make conflict solved.


1. At the beginning of Chapter 6 we begin by referring to the representative, generalized bureaucracy. When I look at the contents of the article, I interpreted the article as looking at it from a negative viewpoint rather than a merit of the bureaucratic choice. However, my judgment is that I can not follow any organizational structure in terms of the speed of work processing. What should be added to the existing bureaucratic organizational structure in order to develop and advance in line with modern society?

A. We respect bottom-up decision-making for the satisfaction of all employees.

2. There are various organizational structures in this do

3. Network structure is an essential virtue for today's 21C. This structure has a network effect and I think it will stimulate the competition through the information sharing with other companies, thereby revitalizing the capitalist society. However, I think that this virtue has disadvantages and may cause harm. So what about the fatal disadvantages of the network structure in terms of turnover learned in the previous chapter? (Except for the scout cases we learned in class during the turnover)

A. There is high possibility of weakening bonds within the company.


1. There are 2 types of coordination , synchronization and integration. What is synchronization and integration ?

2. Coordination problem is mentioned in ch.6 . What is coordination problem in detail?

-There can be a person who rides freely.

3. What is 'Bureaucracy cost' ?

Chapter 7 questions


1. Multitasking will increase your productivity, but it will also concentrate so much that it can cause side effects such as mistakes. What are the ways to multitask efficiently while minimizing the risk?

A : This is why you need a team. If team members make up for any mistakes that may occur, they can show maximum efficiency.

2. I would like to know specific examples of what the company can do to create an environment where employees can work together as one group.

A : First, the company should create an organic team structure and make it easy to communicate with the team

3. I want to know when the disadvantages of Talorysm have become crucial.

A : The analysis of all of the workers and the subdivision of the work, the efficiency of the work itself has increased, but the knowledge of other tasks has become insufficient and the work has become less organized.


Chapter 7 questions (job design)

1. When designing a job, how can you calculate how many variables each person has?

A. Not all can be calculated, but it is definitely better to consider.

2. When designing a job, do I have to judge people by their personality or their skills?

A. It is better to judge by personality that person can acquire skill but personality is already formed.

3. In practice, is it better to minimize the involvement of practitioners like Taylorism, or is it better to involve intervention?

A. The involvement of the practitioner should be done only when necessary under his / her judgment.


Q1. Is it possible to precisely compare and analyze in advanced, the organizational work efficiency resulting from the multiskilling training with reduced productivity of the organization at that time due to the training?

A: Data can be compared and predicted by accumulating data according to changes in productivity before and after training.

Q2. In the case of job enrichment, if an individual has a passive nature, can it be a burden and reduce efficiency?

A: Yes, for such workers, the burden of work can lead to a decrease in productivity.

Q3. Can autonomy and empowerment of a worker be likely to cause friction in the relationship with the supervisor because of the degree of it, which can hinder the overall efficiency of the work?

A: It may be, therefore manager should remember that empowerment is an extension of authority, not authority distribution. It is also important to clearly state the responsibilities.


2. The most important factor in job design is referred to as motivation. What else is not mentioned in the book besides this?

A. Job performance, job appropriateness, job understanding and so on.

3. The limit of Taylorism is that we treat human beings as a single part, a machine. So it's not a perfect theory. What do you think you should do to help your employees to be a corporate CEO in order to compensate? (Eg welfare, annual salary, working hours etc)

A. We think that welfare is the most important. Because the qualitative aspect of life is the most important thing in the our generations.


1) Usually, I think because companies trust employees’s expertise so they can give more authority when a company grants authority to an employee. However in book, multitasking becomes more important when granting more authority. What’s the reason?

- If employees do not have the authority, they only have to do the work they have been given. However when employees are empowered, multitasking becomes important because of the increased responsibility beyond the given task.

2) In book, it is more effective to link similar areas in case of multitasking. Then is this opinion saying raise expertise in business, IT, and design ineffective for workers?

- Because IT technology is developed and the age of individualization comes, it has become impossible for the business to consider without IT and design. So connecting these areas is ineffective in short term, but it is effective in the long term.

3) In the case of multitasking, supervision is hard so it is difficult to calculate the wage structure in incentive form or hourly basis.(in this case workers focus on one area and not on the other.) Then which wage method is effective for multitasking employees?

- Company must judge how efficiently and effectively the work assigned to the employee has been handled, not the time.

4) Of course, depending on the type of the business or the current state of the company, they will optimize or continually improve, but where does the company ultimately focus on?

- Finally, the company should strive to achieve its vision.

5) When recruiting staff from a company, which type of person is more likely to choose between multitasking and optimized?

- At the time of recruitment, it is more likely that optimized candidates will be selected because company wants to reduce the cost of training.


Q1 : Past occupations were narrow, did not they benefit by having more specialized areas in the narrower areas?

A1 : In the past, technological progress has been less so that there is no obstacle to live in one area, but now technology is developing and changing rapidly, so if you do not develop yourself in one skill or field, you risk being eaten or fed by others.

Q2 : I think there are psychological and economic ways to find an optimized job. I think it is unlikely that a job that satisfies all of them is actually possible. Which one would be a better choice if you choose only one of them?

A2 : I think it depends on what an individual thinks is important. Rather than making a lot of money while doing things I hate, it is better to do what I like, but make the right money.

Q3 : From a company standpoint, is it better to be a professional person only for one minute? Or is it better to know people in many fields without being professional?

A3 : I think that in an industry that needs technology or concentration, it is advantageous to do well in one technology, and I think that in the field of marketing, I have to be good at various fields. I do not think that it is important to know about other fields when manufacturing, but it is important to think creatively and know various fields.


Chapter 7:

1. New organizations will look for workers with experience, because it indicates that he/she will be more likely to multitask and adapt to the new environment.

2. Taylorism can be good for companies with repetitive activities performed daily, but it can be an obstacle for innovative changes.

3. Managers must create new incentives to motivate that type of employees, it depends on the individual personality and needs.


Chapter 7

Question #1/ The goal of Job Design is to improve worker’s efficiency. If the set of job design is not fit, there won’t be improve of efficiency. If than, how could efficiency be enhanced in such cases?

Answer > If the Job Design is centered on people, there will be no other differences. The important point is that organization had to change the focus to job. Leader should define what performance should have to be created in their job. Then, adjust the level of responsibility and the level of contribution, depending on how much it contributes to the company.

Question #2/ Motivation is highlighted in Job Design process. In addition to this, is there are some elements that need to be addressed centrally?

Answer > Job-Design process need to be seasonable. In addition to motivation, Job-design should also focus on productivity, cost savings, and reduction in turnover rate and training costs.

Question #3/ Taylorism had problem in treating human being like a machine. If the job is subdivided into monotonous task, how can we complement it?

Answer > It is a Ford System that compensates for these shortcomings of Taylorism. The Ford System focused on these shortcomings with focus on streamlining production efficiency, improving productivity and streamlining management.


1. Q. I think that the task significance is absolutely crucial to the job choice, and what if we could attract a little bit more about task significance as a strategy to attract employees?

A. Task significance is one of the most important factors for employees.

2. Q. I wondered if Adam Smith was focused on just a short period of time and wondered if the simple work or simple labor and repetitive work for long period of time was missing.


Q1. There is a mention about intrinsic motivation in this chapter. It said that specialized jobs can make workers boring, leading to low motivation. In my opinion, however, if I have a position in specialized job, I would be very proud of what I can do in this field. also, I would have more motivation to be the best specialist in this area.

On the contrary, I will feel pressure if I have multi-task. Because I would be distracted for many things what I had to and couldn’t focus on each task. what do you think about that? What if you were in that situation?

A. It depends on how you feel about your task. Therefore, one ought to find something congenial.

Q2. Job enrichment helps workers be more highly motivated. Obviously, it is a good system for both company and employees. Company can maximize employment effect and employees can feel a sense of accomplishment on their work at the same time. However, As we all know the say ‘there’s always an opposite case for everything.’, It can be wrongfully used. Is there any real cases people used that wrongly?

A. There are side effects everywhere. If you look around you, you will find it easier than you think.

Q3. Let’s assume that it happens that job enrichment used unfairly. For example, company make an unreasonable or unfair demand to workers. So many workers should do excessive overtime or the pressure of work and so on.

Like all these situation, what is going to be the standard to draw a line between right (job enrichment) and wrong (exploitation of workers)?

A. A proper reward system should be employed as well as a work of merit, and reciprocal communication should continue.

Q4. While I am reading this chapter, there was one thing that I confused. There were many terms like job enrichment, multitasking, worker empowered, decentralization, intrinsic motivation and extrinsic motivation….

In the summary section, there was a mention ‘the trendy terms for these features are job enrichment and worker empowerment. The more rigorous terms are multitasking and decentralization.’ I was confused about this expression. Because I thought that these terms are slightly different. Could you explain about that problem?

Are these terms (job enrichment- multitasking, worker empowerment- decentralization) exactly same? or different?

A. The terms are almost identical. It is sometimes used without distinction.

Q5. There were many cases in this chapter. ‘Job design for UPS delivery truck drivers’ is one of the case to explain an excellent modern example of application of the principles of Taylorism. They made an improvement by the design of the delivery truck efficiency. And it was mentioned positively. However, I do not feel comfortable while I am reading this case. I wonder that is it truly good system for worker? Or even company? Of course, it’s the fastest way to deliver a package to the customer. But it looks dangerous in many factors. It looks like that we never consider traffic accident or safety of delivery man. how do you think about it?

A. The purpose of the Company is to maximize the maximum profit through maximum efficiency.

Q6. Following the situations above, job design is for the benefits of the company. However, as we can see this chapter, job design has three goals. (1. Improve the worker’s efficiency in performing tasks, 2. Create and make use of worker knowledge on the job. 3. Improve work motivation). These factors are also good for company. But, I think it described in worker’s viewpoint. What do you think about this ironic situation? what’s the exactly goal of job design?

A. It aims to prevent the waste of human resources and create maximum effects.


1. What is the important thing of job design in real business world?

A. Success, and rewards, money

2. I think that the best thing intrinsic motivation can be strong is money. But small firms do not give them more money. How do these firms solve this problem? (I think small firms do not give workers good welfare too.)

A. When the company grows successfully, it provides stocks that can have a larger stake.

3. Today, many firm needs to good worker that fit their work and have diverse skills. So, job applicants try to study a lot of skills. This situation make job design more complicated. What is a good decision making that managers can do?

A. Strategy is not choosing what to add, but choosing what to throw away. managers reduce complexity and simplify access, but apply the compensation system with certainty.


1. Which type of enterprises is suitable for classical or modern job design ?

2. Specializaion and standardization is mentioned in job design. what is difference between this two?

-specialization is professional and standardization is nomal, general.

3. What is a 'decision authority' ?


Q 1. Are X theory and Y theory relative to job design?

A. No. There is no mention about people’s characters.

Q 2. These days, modern job designs are getting complicated. What is the future of modern job designs?

A. Job designs make people specialists and at the same time, convergence will be more important.

Q 3. To get a job, specialization is needed. What are they?

A. It specialization, Beauty specialization and so on. There are so many specializations that are related jobs.


Q. In job design, in terms of interdependence, we have to cut down on coordination cost through modularize, how should we do to well defined?


Q. In Taylorism, company should find out the best way to do work, and use that way to do work. What if employee does not fit with best way company think, in this situation, company still have to impose the way to employee?

A. Yes employee should use that firm think most effective way.

Q. Intrinsic motivation can help employee, to motivate continuous development. What if the company using Taylorism wants to motivate employee to increase productivity, which process will need?

A. Intrinsic motivation is strongest when the worker has the opportunity to learn on the job. But, Taylorism don’t have to learn much. And employee should work what firm wants to do. So it’s difficult to give Intrinsic motivation when firm adopt Taylorism.


1. Unlike the past, motivation to work is important for the workers today since they are more educated than the past, so wouldn't it be very inefficient to use classical job design to assign workers to their job?

A. Depending on the job, it may needs to be changed.

2. When going through organizational change, it is newly designed for the employees to work more and harder, wouldn't it cause too much burden on the employee and they might lose the motivation to work at the end?

A. Yes, it does.

3. would designing job so that employees continuously learn something new motivate them to work?

wouldn't it be better to design job so that the employees would enjoy the work?

A. It would depend on the situation.


1. Q. I am curious as to how the labor management system, such as Tailoring, is changing in the transitional period leading from the tertiary industry to the fourth industrial revolution.

A. There will be a big change in human resource management when artificial intelligence replaces people. Just as the appearance of computers has changed in the past. But it is clear that the emergence of artificial intelligence will not replace all human resources. Technology has made us free. It is up to us whether freedom is poison or good.

2. Q. There is a controversy about the Taylorism that man is not a machine. Nowadays, companies are focusing on raising the benefit(welfere) of employees, and I wonder if this is also included in the category of Taylorism.

A. We can see that there are two kinds of differences. The difference of Economic perspective and social perspective.

3. Q. If the job duty you want is different from others thought, which of these two choices will lead to high performance.

A. I think it is better to let them experience the job duty they want. You may experience changes in your thoughts while you are experiencing your own job, or you may be more enthusiastic.


Chapter 8 questions


Q1 : There are many types of free riders, but if you really do not want to participate, you need to consider your team with all of the issues such as introspective personality and lack of ability. It would not be as easy to think of a team as considering all these conditions. Can you make the best team?

A1 : By reflecting the personality and characteristics of each person on the team, it is necessary to mix various people evenly to get the best results. You must create a team that can improve and complement your own strengths and weaknesses.

Q2 : With the development of IT, many jobs are being replaced. In the future, IT seems to be able to replace most jobs in the future. What skills should people develop to keep their jobs and how to respond to such fast-growing IT.

A2 : Find ways to fuse these to meet the pace of IT development. Obviously there should be a problem of IT, but the ability to find and cope with it must be fused together.

Q3 : In what areas, in what job, and in what ways can IT be used with the greatest efficiency and desirable use?

A3 : I think that using IT for HR management will have a big effect. It will be more efficient to manage with more specific and accurate data rather than just managing with the sense of a person.


1. Teamwork is more satisfying than assembly line work.

2. Chaos is a great thing to see and learn new order.


Question #1/ Competition between each team makes the differential rewards. Differential incentive can be a great help in improving the competitiveness of a company or organization, but if it gets worse, it will become more and more difficult to corporate with team. For example, if the idea of one team and the ability of another team can make synergies but two teams are in a competitive position, so they won't cooperate, how should management manage that?

Answer > If there is no coordination and cooperation within the organization due to team competition, leaders should have to make or allow the Give and Take system. Or if there is incentive to voluntary participation, this problem can be solved naturally.

Question #2/ When a team is organized within an organization and when it was operated basis on of it, there are possibility occur of the free-rider problem. Workers who are inefficient free-rider for an organization are negative factor. However, if the team in the organization is made up of different position of people, their duties and tasks are difficult to be transparent. Eventually, workers who are free-riding are appear. To prevent this, is it a good idea for managers to organized team members who have similar task and position? Or is there another solution for managing it?

Answer > People change depending on the circumstance and situation. Likewise, free riders are not always free riders. Therefore, the leader should change the culture and system of the company appropriately to prevent the free-rider.

Question #3/ By using IT technology, manager can gather more objective data in decision making and can adopt quick and clear decision. In decision making about areas of uncertain profit, such as new business or investment, there are number of factors to consider. In this situation, decision making based on the use of IT technology is the most profitable for organization?

Answer > IT technology is good for collecting and sorting data. Once data are collected, data analysis can be done. And decision making based on accurate data can be made more rational


Q. The traditional concept of job design accommodates people to ‘job’. But, Modern job concentrate ‘Human’, not ‘Job’. Modern job design seeks to fulfill individual needs and to achieve organizational goals efficiently by designing job descriptions and work methods to bring meaning and satisfaction to job performers. However, the army still cannot escape from the traditional job design. It is an organizational structure that emphasizes unification and stability rather than individual characteristics. Do you think the military can escape from these traditional job design? If you think that modern job design is possible, what are the options?

A. DLEE: Companies that have a large number of professional employees with a strong professional consciousness are introducing a new personnel system faster than any other industry. In the army, soldiers have no professional consciousness other than professional soldiers. Amateur soldiers go out to the wall to play even if they have a MP. Therefore, the old Fear and Intimidation still exists. We will proceed as a non-coach during our class test. It is possible to be a pro-conscious professional student


1. Encouraging competition between teams could result in each teams focusing only on the short term based profit. However, short term profit does not always result in the best solution for the firm. How could these two be adjusted?

A. The competition between teams can result in long term profit.

2. As the machine takes over the repetitive jobs in the market, firms will want to hire creative empolyees. How can firms determine creative empolyees with brightening ideas during their interview?

A. The companies started to hire multi-talented employees. The new hiring policy includes longer probation period.

With decentralizing of the firm, abusing among managers could arise. Waht are the some ways that this could be prevented from happening?

A. Built in self-interest mechanism with performance based pay.


Q. If a company spent a lot of money on project and recruited professionals in each field, the company wants to earn more than a certain level of profit but if company failed to earn a profit because skilled professionals in the company didn’t coordinate well. In this situation which method company should use?

\ A. firm should signal them that they can disperse the team. And this can make professional team coordinate better.


For job design, one of the ways is a team. I focused on free rider problem. I think it is applicable to theory of games.

For example, two people are in one team. (Called A and B). They don't know how much they can achieve and they think they are so intelligent also people admit this. They get paid monthly.

A knows that B is intelligent, so B does. So, A has two selection.-work full or just half. If A works hard, B can work hard or roughly. If B works hard, A can get a reputation without any efforts then A chooses work little.

B also has two selection. If A doesn't work well, B will excuse that it is because of A. Also, if A works hard, B can get a good reputation. Then B chooses not to work well.

Q 1. Is there any problem of my understanding?

Q 2. If yes, how this assumption can be changed?

Q 3. Also how can we prevent free rider problem?

A. (DLEE:) Free rider is a problem because it results in under productivity and/or over consumption. Free rider by another name is exploitation. In order to prevent exploitation, strong leadership is required. In case of government, it take its position using regulation and penalty; collective payment scheme such as tax where everyone is forced to pay. Now the problem is that in order to eliminate free rider, many have become Forced Rider; contributing against ones wish without benefiting.



Contrary to the past job design, contemporary job design is not job-centered but person-centered job.

The reason for this is to help motivate and motivate employees. So it's not just job design for motivation.

What specific ways can motivation really help your organization?

In other words, what are the motivations for employees to help organize their end-of-life goals?


Q1. In this chapter, main discussion is a ‘team’. In real world, many organizations and even school emphasize the “teamwork”. So, one of the common job interview questions is also about ‘teamwork’. For examples, “Do you prefer to work as a team or by yourself?”, “What is your role within a team usually?” or “What can you say about teamwork?” and so on.

I think it is reasonable that companies ask interviewees about teamwork. Because they are also a team. They could not help thinking that teamwork is important. Therefore, this chapter give us some information like what are benefits or cost of team production from the viewpoint of organization(company).

Then, let’s look at this from the other viewpoint, the individual’s viewpoint.

What we should do for being a good team member? And what is the benefits or cost to individuals working as a team member? Do you think working together is more advantageous to individuals? And why? Lastly, how can we deal with the questions about teamwork?

A. Working together may not be advantageous, and working together may even be more costly. BUT working together washes away any risk associated with individual.

Q2. There’s always an opposite case for everything. Working together has major positive effects on company. However, it also makes problems such as inefficient decision making or free riding issue. To solve these issues, companies made hierarchy system or many incentive programs. However, I think it looks like a slight contradiction. Because, the ways to solve teamwork problems are discourage the formation of teamwork at the same time. In other words, for examples, incentive program can help ‘free riding’ problem. But, ironically, it also makes people working more individually, not as a team. This ironic situation would be a difficult task for HR department. How do you think about this? What’s the exact goal of a team and How do we make a perfect team?

A. Team work does not mean everyone is always friendly. 밀당 is important in team work. A team SHOULD have strong competition among the members to make each other strong, but also unite and cooperate when fighting outside forces. A stronger team mate will give me very good practice work out competing against me. Same team mate will be my strongest ally when competing other teams.

Q3. It is the main issue that companies take a job design. This is the same as overall organizational design and this is the future of a company. Every member of a company involves to this. Therefore, company and HR department need to be very careful.

Then, how much does the company give their employees right to interfere with that? Do you think it is right to give the empowerment to every individual in organization?

A. Large groups may be difficult, but small businesses are available. However, the final decision rests with the management.


1. Q.

There are nine employees in a company. Assuming that there are three staff members who have A quality of work, three staff members who have B quality of work, and three employees who have C quality of work. When you have to teams. You can expect the following combinations :

3 groups of (A,B,C)

(A,A,A) , (B,B,B) , (C,C,C)

(A,B,B) , (A,C,C) , (A,B,C)

(B,A,A) , (B,C,C) , (B,A,C)

(C,A,A) , (C,B,B) , (C,A,B)



Which of the most efficient and effective team combinations?

2. Q.

Some of the staff members may have an extrovert or an introvert, and some of them are introverts. There are many different kinds of personalities, as well. Can the employee's character be considered a factor in making a team, except for his job skills, his or her major or his field of expertise? So, do you think it would be better to tie a similar personality to someone who has similar personality traits?

DLEE: 친구 끼리끼리 모이더군요. 팀도 그렇습니다.

3. Q. Let's take a look at Korean singers.It's called a girl group or a boy, but the group is definitely one. Normal girl groups are generally divided their profits into number of the members, but there must be members who have are unique in them, are particularly popular with the public. Even in this case, there is a situation where the overall income should be divided equally into the members of the principle, but wouldn't there be a complaint? I think this situation can happen even in the companies. When paying compensation for performance, what is the most satisfactory method for each member? If a particular member of the group shows a unique talent alone in the group, is it a successful team making?

DLEE: 처음 팀이 형성 되서 Contract negotiation 때 멤버사이에서도 누가 독보적인 역량이 있지는 잘 모릅니다. 그래서 나중에 문제가 되지요. 제일 좋은 방법은 업무와 직접 연결되도록 재설계합니다. 개인은 업무수행 과정을 통하여 능력을 발휘하게 되며, 그 결과는 최종적으로 조직의 성과로 나타나게 되는 바 평가도 이러한 업무 흐름에 맞추어 개인에 대해서는 업무에 임하는 태도와 능력, 업무수행 과정을 평가하고, 최종적인 성과는 팀 전체의 업적을 통해 평가하도록 합니다. 평가체계는 개인평가 + 팀업적 고과입니다.


The best place to see the drawbacks of a team project is the college's group task.

Because they perform different amounts of work but receive the same results, the phenomenon of free rider and avoidance of responsibility is maximized.

In order to prevent this, the score is varied according to the participation rate, or the team member takes action to remove the name from the final result. However, the problem of the group task is still not disappeared.

What is the most efficient way to prevent institutional distribution of responsibility, rather than entrusting it to a person's conscience?

Also, if everyone gets the same rewards for the results, as in the example of a group assignment, then there will certainly be a voice of dissatisfaction. To prevent this, what can be done to understand the individual performance of the results?

A : We are as perceived as our achievements as our ability and we deserve it. When the time is right for a company to pursue productivity improvement and management rationalization, the sequence of team members is determined.



The best place to see the drawbacks of a team project is the college's group task.

Because they perform different amounts of work but receive the same results, the phenomenon of free rider and avoidance of responsibility is maximized.

In order to prevent this, the score is varied according to the participation rate, or the team member takes action to remove the name from the final result. However, the problem of the group task is still not disappeared.

What is the most efficient way to prevent institutional distribution of responsibility, rather than entrusting it to a person's conscience?

Also, if everyone gets the same rewards for the results, as in the example of a group assignment, then there will certainly be a voice of dissatisfaction. To prevent this, what can be done to understand the individual performance of the results?

A : We are as perceived as our achievements as our ability and we deserve it. When the time is right for a company to pursue productivity improvement and management rationalization, the sequence of team members is determined.

Q. What is the worst on the organization during the interception of a team that has done nothing but a minimum of performance recognition, and who has worked hard, but steals other people's performance?

A. Free rider lowers organization morale. Team evaluation should be done by team members who know this fact well. In this case, it is good to free up your team, but there is a risk of bullying, so you have to pick your team leader well


Chapter 8

Q. In the existing vertical organization, if the employee promotes to a certain level or more, the phenomenon of so-called "early aging" of the executives who perform the tasks just like the approval of the suggestions of subordinates rather than the suggestion or development of the ideas occurs. Then, will the team system contribute to preventing the aging of the executives?

A: No. The team is better suited to the cultivation and utilization of competent talent than merely differentiation based on competency.


1. Can we get out of the traditional office perspective even in a confined social space like an army?

A. It is impossible for the Korean army, but if you change to the volunteer military system, it is possible because of improving army's professional consciousness.

Chapter 9 questions (Performance Evaluation)


Q 1. In a movie industry, a celebrity is not always an actor/actress who are good at acting.

A. However, a celebrity earns more because she/he is popular. How can this gap be shortened?

As long as celebrities are famous, it is difficult because they earn money by getting popularity. The way is to make people get interest to an actor/actress who are good at their jobs.

Q 2. An actor/actress who play a villain usually earns less than a main character. What if they want only the main character?

A. We should make them villain specialists.

Q 3. Performance compensation system is a system that people get paid based on performance. However, Korean companies are not good at it because it is evaluated by peers. How can it be applied appropriately?

A. We should teach that peer review is not for their interest but for companies. Also, conscience is needed.


Q. Employee A voluntarily did some work without the desire of reward for the affection for the organization, and it showed high performance. However, there was a mistake in the process of job evaluation and incentives were paid to the B staff. (Promotion or bonus) When this happens, employee A may feel anger and less enthusiasm for work. I am wondering how to solve this problem if there is a mistake in the process of evaluating the job performance as in the following example, but the compensation has already been paid.

A. DLEE: One of the most important thing in dealing with employees is "do not humiliate" If giving incentive to B results in A feeling humiliated, any gain from B will be more than negated by A's humiliation. A will no longer willingly give Passion Pay, and A will hold back valuable information. The company suffers, and the country suffers because of A's passive aggressive behavior. #1 in Innovation will have #32 in productivity for this reason.


1. For example, when evaluating an employee, for example, a direct way of raising sales by directly selling an employee as an employee contributes to sales, or by continuing to care for an existing customer, in direct way the results are obvious to the eye, but the latter might not be noticeable. How would you measure the contribution of these indirect methods and what should be more important to the company?

A : The company eventually has to see the results. No matter how enthusiastic you try to be, the person who make a direct sale looks more superior to the other. So company must continue to invest in performance judgment to identify hidden efforts.

2. One of the problems in Korea in recent years is the performance based annual salary system of public institutions. While there are places where performance is evident, such as AT, the performance of the engineers working at Korail is not distinctive. If so, what should the company look at and judge their performance?

A : Safety will be the top priority for engineers, so it will be judged by train delays and accident rates. In other words, we should judge the performance as a contribution to the company in various ways, not just as a pursuit of profit.


Chapter 9 questions (Performance Evaluation)

Q. Job evaluation is a sensitive issue because it leads to salaries. When evaluating employees' performance, which of the absolute and relative evaluations would be a better rating for both employees and company satisfaction? Which of the following is right just evaluation of job performance at the time of job evaluation or the evaluation of employees' sincerity and positive energy for others besides job?

A. There are advantages and disadvantages of each, but if it have to choose between the two, absolute evaluation is better. And if you do not fully reflect the personality of every employee, then you just have to do an evaluation of their work.


Q. Is the result-oriented performance evaluation that judges the employees based on the result of the work rather than the process of the work an efficient evaluation?

A: Assume there are two classes of employees; hourly and salary. Hourly are less paid general skilled employees. Salary are highly paid, and special skilled employees. Typically, less skilled employees are evaluated on input; work process. Highly skilled and paid employees are evaluated on result of a task. Case in point: Voice magic vs. Secretary. Voice magic is more productive (higher output per cost), but the secretary has overall higher output (absolute higher output) and already in the employee pool. So mathematically speaking hire Voice magic, but considering all things, hire secretary.


2. Why do you think it is important to evaluate performance?

A. The company believes that evaluation is inevitable because it is the place that generates the maximum profit at minimum cost. Based on these assessments, you can be in a competitive advantage and help companies create company's value.


Q. Performance evaluation of employees in private companies is rather active.

Because private corporations are aimed at pursuing corporate profits, they are capable of dismissing incompetent employees drastically, and competent employees are rewarded for their performance. However, performance evaluations for public officials and public employees are too formal. So, in recent years, there has been a lot of discussions on performance evaluation methods. What are the most effective performance evaluation methods?

A-Some of the vertical structural systems of large enterprises are introduced.

Q. Silicon Valley G's employees are free to commute. However, there is a calm performance evaluation for employees.

If Korea, like this company, gives employees autonomy, which performance evaluation method should be effective?

Q. IBM's performance evaluation method is based on the "checkpoint" method. This approach is not just to grade employees,

It is a developmental evaluation method that allows employees to improve their personal abilities by showing them what to improve.

However, I think that the existing evaluation method is appropriate for the benefit of the whole enterprise.

What is it?


1) In the case of performance evaluation, we need to consider not only quantitative but also non-quantitative factors. But it is virtually impossible to accurately assess both factors. So should we try to develop criteria that can not be perfect?

- We don’t need to make assessment perfectly. We just need to design to motivate company’s employees.

2) For accuracy of the evaluation, we need to evaluate employees on the basis of all tasks. But in this case, staffs will feel the burden and can’t concentrate important thing. Don’t we have to evaluate staff focus on the direction that company should pursue?

- To achieve corporate‘s vision, employee must constantly strive and no one will complain when they achieve it. Simplifying work is essential to help staff focus. However, it is necessary to establish criteria that can be quantified so that it can be objectively evaluated.


Q1 : When evaluating performance, most of them are evaluated only as a result.

A1 : The rewards for the results are important, but compensation for the process must be done to enrich the morale of employees and reduce the number of complainants.

Q2 : What are some ways to resolve many of the side effects (eg interceptions) that can occur when evaluating outcomes as a result?

A2 : We think that it is necessary to report each other to solve such a problem. In order to prevent such problems, I think that a system should be prepared so that the system in the company can be created and the system can be announced.

Q3 : In what other ways should individual performance and team performance be assessed?

A3 : Team evaluation is different from individual evaluation, so it is difficult to judge who is big. Therefore, it is necessary to evaluate the team differently from the individual, and we think that the information should compensate differently through such information.


Question #1/ One of the ways to achieve a more objective assessment of employee performance is to set differentiate goals based on employee performance. In order to see clearly performance evaluation of an employee’s work, feedback should be given with a goal that is appropriate for each individual. However, if the employee’s performance over a period of time has been achieve a goal, but the goal is not a great benefit or performance for the organization or team to which the employee belongs, is it right to see this as a performance? And as a manager how it would be most effective to manage these problems?

Answer > The important thing is to see what the performance is based on. If the organization only focus on the result of performance based on its financial performance, such as employee’s sales or profits, they will be hard to achieve their goal. The real performance that organization must create is a valuable outcome from the customers perspective. And financial performance should be seen as a result of genuine performance.

Question #2/ Regarding performance evaluation, Google’s employee evaluates each employee who work with a company or project over course of a year. This kind of evaluation can be considered reasonable, but it can be an irrational way in some ways. When the company adopt this evaluation method and performance evaluation was conducted, the discrepancy or conflict in the project or work process affect the evaluation is natural thing. To minimize or prevent these kind of effect, what are the plans that managers should take?

Answer > In the end, Mutual evaluation is relative rather than absolute. To reduce these problems, make them clarify the reasons and if there are advantage or disadvantage to the evaluator, depending on the performance of the employee, they will be more carefully in mutual evaluation


1. Having no rules will be perfect in a subjective way of evaluation, and policy of transparency can boost the trust.


Q1. Many of the nation's top firms also give up their authority to the leadership. They simply want to avoid conflict within the organization, or they can look at the promotion of promotions as they advance, and arrange and arrange for each other. It is not easy for companies to eliminate this method of engaging the culture of a long period of time. In this situation, there is neither validity nor reliability.

Is it worth the aggravation? What should we do to improve these old-fashioned methods of performance assessment, particularly in Korea, and establish the correct performance appraisal and reward system?

A. It has long been a long period of time, and if the members do not complain, they can not change it.


Q. My question is that I think that the development of robots or artificial intelligence will affect performance evaluation in the future. I think that performance evaluation will be sophisticated and easy to manage, but if the standard is unclear, there might be problems. In the future, if we are to incorporate these technologies into the performance evaluation in accordance with the trend, what criteria should be set for performance evaluation?

A. It is difficult to evaluate the performance unless the standard is clarified. However, if the criteria are clarified, gamification will result and evaluation of performance will be impossible.

Chapter 10 questions (Rewarding Performance)


Q. Rewarding for performance can be a good motivator for the employees. However, there are still seniority order within organizational structure of Korean companies. Because of this nature, companies cannot ignore the time of individuals spend in a particular organization based on their ability and academic ability. If there are two employees with the same performance in the same position, should reward be compensated by length of service or it just a reference to compensation? And if there are negative feelings or complaints among the employees when managers exclude factors or seniority order such as length of service, how should managers handle or prevent this?



Q. In profit sharing problem, textbook said that executive member tries to increase ownership through profit sharing or employee stock option. And that actually it is not effective as executive member thinks. But in case of ‘넷마블’ executives give employee stock option and increase their morale. Like this case, increase ownership successfully not just simply sharing profit, but increase ownership which method should company use?

A. Performance evaluation for such plans is a very broad one. And this is uncontrollable. so most of research detectible effect on productivity or profits. so when company give employee stock option as incentive, they should evaluate performance in reasonable way. And result can be persuades employee to increase ownership.


Q1. With lump-sum pay-performance shape, an employee who is close to being promoted would work hard to take a next step. However, an employee who isn't near being promoted wouldn't work just as much, how could employer motivate this employee to work hard?

A. Apply incentive to the performance.

Q2. To motivate employees and reward their performance, giving out stock option would be the best since, employees could make more money as the company grow. However, stock option is not widely used in Korea, why is that so?

A. Companies in Korea are trying to reduce the cost by paying less.

Q3. It is common in Korea for the employees staying overnight instead of leaving their office at 6 PM even if their work is finished. Could this phenomenon be explained with Ratchet Effect?

A. Depending on how you look at the problem, it could be explained with Ratchet Effect.


Q. Performance Compensation System is a system that provides incentives to employees with high performance. We do it to increase employees' productivity and motivate their work, but I think it may hinder their motivation. For example, there are college scholarships. If you are awarded scholarships to students who have achieved the top 10% of the results in each department, students who already have high marks will be motivated to study. On the other hand, it is not so high when a middle school student gets a scholarship. This is because it is difficult to win a student who is already motivated to study and who is good at studying. Although the scholarship system may increase academic achievement in the short term, students with low academic achievement and low grades in the long term will be excluded from the competition. Rather, it increases the chances of students taking off. Therefore, the compensation system is motivated for a small number of highly motivated and highly productive employees, but the potential for medium-level employees and motivations for low performance is likely to be worse than before. And giving incentives based on competitive performance evaluations may help motivate students, but it may lead to a decline in motivation for mid-to-low performers. What are some ways to solve this problem?

A. Rather than rank and rank the performance of all employees, we will be able to apply different levels of absolute evaluation for each employee. For example, in the case of a university scholarship system, another scholarship system for students with high academic achievement can be operated together with the existing scholarship system. It is expected to be effective in improving work performance and motivation.


Q1. Rewarding is a necessary system for recharging employees. But how much, how to compensate is an important issue. Would it be better to reward me every time I make a performance? Or is it better to give a position like promotion?

A. : I think that it is better to compensate for each achievement rather than to reward each achievement, and to increase the compensation such as promotion by accumulating the achievement.

Q2. : If a company already has a lot of welfare and invests a lot of money in its employees, do you have to pay compensation if you make a profit?

A. I think it is a good idea to give a little achievement, not a lot of achievement in the case of a company like this, and give penalties if you do not get results for a long time.

Q3. What kind of reward would be better for a company to have a measure of how much rewards it would pay for proper rewards?

A. I think that it will not be complaints after a meeting with employees and executives to clearly quantify performance standards and standards.


Q. Members tend to focus on immediate performance only to concentrate on immediate outcomes rather than long-term or long-term goals. Companies, of course, are aware of these facts, and they want to reward them for their long-term goals. However, while the short-term measures can be measured, the long-term performance is not easy to measure, and the problem is that it is not easy to relate to performance. Of course, there is no bad thing about short-term achievements, but I think there will be a big problem in the aspect of the long term, if the employees continue to focus on the small ones. So how do you plan to build a strategy that runs a business in a long-term perspective?

A. Make sure that at last immediate performance may linked to the result of long-term goals.


Q1. The incentive-based performance evaluation method has the problem that competitors who pay higher incentives can not keep competent employees. So, isn’t it more effective to give employees an affinity with non-monetary benefits in long-term perspective?

A. The key of incentive is to get rewards from employee’s performance. So it doesn’t matter to give monetary benefits or non-monetary benefits. The important thing is providing reasonable compensation for employee performance.

Q2. Is it effective to motivate employees to pay costs to them to ensure an accurate performance assessment?

A. Of course, economic benefit is one of the motivating factors. However, if performance is given regardless of the efforts made by an impartial evaluation, it will eliminate the motivation to work hard totally. So fair evaluation is more important.

Q4. Is it profitable for the company to pay more than the amount that the employee is currently valued in the marketplace in order to protect its superior employees from competitors?

A. If the value being assessed in the current enterprise is greater than the value assessed in the market, company can pay up to the difference.


Q. By Investopia, Ratchet effect refers to escalations in production or price that tend to self-perpetuate. Once productive capacities have been added or prices have been raised, it is difficult to reverse these changes, because people tend to be influenced by the previous best or highest level of production. It causes huge economic loss. How can it minimize the losses?

A. Can advise them to have a challenge. A challenge can get people to be motivated.


Q. Local companies have started to implement the performance-based pay system in the late 1990s, to supplement the shortcomings of seniority, to promote motivation and attract superior talent. Now that it has been a long time, can you think that the performance-based pay is the same as the first goal? Focusing solely on short-term performance, based on performance-based performance based on performance-based performance, based on performance-based performance, boyeo routines, and unfair measuring practices.

Various problems such as complaints can be raised. Neither is the company but the educational institution. Depending on the different grades of achievement, these problems are happening in our classroom. What are the measures and solutions for these problems that have appeared so far since the introduction of bonuses for 20 years?Do you think there is a possibility that there will be a new way to reverse the way to overturn all the ways so far?

A. There is no perfect incentive system. Businesses should use a mix of systems appropriately. If a new reward system emerges, it does not seem to have changed significantly from existing ones.

Chapter 11 questions (Career based Incentive)


Q1. Company have to pay more salary if employees` career become long. If so, would it be better for the company to hire employees with less experience than to hire a lot of experienced people?

A. I have different opinions depending on the field, and I think that if you have a career as a technical worker, you should have some experience even if you have a lot of money. If you are in a field that requires creative thinking such as marketing, you do not need to have a lot of money and experience.

Q2. : Suppose employees have a bonus based on their experience. Assuming that two employees have ten years of experience, let A suppose that A has done a lot and has helped the company, while B has been around for ten years. So, is it right to give the same bonus to both employees according to your career?

A. I think that it is better to give different salary and bonus grade considering both achievement and career. I think the employees will not work harder and lazy.

Q3. : Should I have the same kind of experience as my employee's career when hiring experienced workers? Or do you have to work for another company and ignore your career and treat it according to your ability?

A. : I do not think it is good to treat another company 's career the same as our company' s career. I think it is good to have a time of about 1 ~ 2 years and to give a different treatment to our company after judging the degree of similarity with the experienced person.


Q. CEO salary regulation is becoming a global issue. There is a high voice that they should regulate their salaries, which are hundreds of times the average wage of workers in the industry. The main reason for this is the deterioration of organizational performance due to widening wage gap, the decrease of efficient distribution of wealth, and the calculation of wages lacking rationality. However, on the other hand, there is also the opinion that it is possible to use talented talents only by offering high wages. In the case of large corporations in Korea, child succession is taking place in management rights. In addition, chaebol group owners enjoy the privilege of dominating large groups with only two or three percent ownership, and they are paying a large sum of salary as part of management participation. In Korea, I am wondering if the degree of CEO salary regulation is necessary or should be regulated.

A. In Korea, regulation is necessary. The gap between the rich and the poor has grown from the rest of the world to the United States. Many experts have warned of the social and economic damage caused by the gap between the rich and the poor, and the damage is actually being revealed. A high salary may be needed to make a really talented person. However, in Korea, where management succession takes place naturally, I think it is necessary to regulate high salary.


Q1. Can't we separate promotion and wage? I wonder what changes will happen to corporate organizations if they decide to be determined solely by their accomplishments.

A. A lot of people will not willing to promote when the promotion and wage are separable.

Q2. When you hire a job for persons with experience, do you accept his or her previous experience in the company? What is speciality of persons with experiences compared to existing employees? Wouldn't it be possible for an existing employee to receive a complaint if he or she received the same conditions as the existing employee?

A. Existing employees may have complaints about hiring experienced persons. But like you either experienced human capital is the most important factors on companies.


Q1. In the seniority pay system, it can be problematic that employees who have a longer length of service have excessively high wages compared to their productivity. However, there is also a different approach to this problem. In the seniority pay system, at each point in time, productivity and wages do not match, but if you look at the entire working life cycle of an employee, it is extremely reasonable. At the beginning of working in the company, they receive higher wages than their productivity (A period) and after reaching a certain point in time, productivity is rapidly increasing due to accumulated experience, they receive lower wages than productivity (B period). And finally as time goes by and retirement approaches, their productivity drops, they receive excessive wages compared to their productivity (C period). In other words, the firm sets the point at which B = A + C to be retired, so that senior workers receive high wages because their wages include post-paid wages for the contribution to the company. Is this approach reasonable?

A. No it isn’t. It is the viewpoint from the standpoint of the worker extremely. A company is not such an organization which is kind- hearted, compassionate.

Q2. Another problem in the seniority pay system is that motivation is limited because the compensation for performance is minimal. In the above argument, however, the worker is motivated to work hard to avoid such a situation, because he loses his wage, which is carried over to the latter half, if he leaves the company due to poor performance in the middle of his working life cycle. Would it be reasonable to apply this claim to reality?

A. It is a reasonable argument to some extent.


Q1. If the tournament for promotion is done among employees, the rivalry can affect to their interdependence and trust between each other. Will it cause conflicts and influence their productivity?

A. The tournament for promotion can cause some conflicts among employees, because the stress level will rise and trust can be shaken in the workplace.

Q2. Tournaments can attract some workers who are not very skilled, but got lucky to have the best performance. What is the manager's action in this situation? Compensation?

A. Manager must consider cost and benefit of the situation, he must decide whether the company is better off by hiring or rejecting with compensation.

Q3. If the promotion is only natural part of incentive in the company, and there are no specific rules to be chosen for promotion, it might cause some misunderstanding and decrease in motivation to work harder for other employees. How can managers avoid this type of issue , if they don't want to set standard rules?

A. The policy of transparency can help in this type of situation, every employee should be aware of each other’s strength.


Q1. By Investopia, Ratchet effect refers to escalations in production or price that tend to self-perpetuate. Once productive capacities have been added or prices have been raised, it is difficult to reverse these changes, because people tend to be influenced by the previous best or highest level of production. It causes huge economic loss. How can it minimize the losses?

A. Can advise them to have a challenge. A challenge can get people to be motivated.


Q. Paying career-based incentives is becoming increasingly problematic as the population ages. In the past, there were more young people in the population ratio, now the elderly population becomes more and more, and the company also has more experienced workers, which is a burden on the incentive payment for the career.

To solve this problem, the wage peak system has been adopted, but this is only a temporary prescription, which causes the employees to lose their loyalty and enthusiasm to the company.

So, what is the way to give incentives efficiently in an aging society?

A. Fundamental measures for the aging population are needed. As the number of experienced workers are increased and their positions are narrowed, companies and governments must provide measures for their second job and continue to provide education. Declining incentives for older people is an inevitable choice.


Q1. There are two promotion rules that can be used and each have advantage and disadvantage. To eliminate the disadvantage of both rules, can't we just combine these two together? Only certain number of people can promote, but they have to be qualified for the standard. I would like to hear what others think about my idea.

A. With combined promotion rule, employees could lose motivation to work harder.

Q2. In American TV show "Boss Undercover," the best CEO is not always the best factory worker. In other way, promotion may lead an employee into failure, how could this be prevented?

A. Pay him/ her with out promotion or fire him/her.

Q3. For most government officials, they adopted one extreme promotion rule on yearly bases. Since they get paid the same no matter how much work they get done, we could found that they don't work hard compared to people working in the private firms. How can society do to prevent this from happening?

A. Apply incentive system, or apply customer’s opinion to the promotion.


Q. There are advantages and disadvantages of the seniority wage and piece wage. I personally think that the seniority wage is a salary that is tailored to a person's life cycle. Obviously, there is a family rather than a social year-end, and people with caregivers need more money. From the standpoint of employees, salaries are needed for each lifecycle, and from the standpoint of the company, salaries are required for performance. So, I know that the concept that started to emerge is a wage peak system, a U-shaped seniority level. In fact, there are only about 17% of the companies that introduced such a wage peak system nationally. I wonder if companies' perceptions of the 'wage peak' and 'U-shaped seniority', which seem to be reasonably good in theory, are not actually utilized by each company.

A. The wage peak system and U-shaped seniority are good concepts. But, Seniority lowers employee motivation. Firms prefer performance salaries, but most of them do not think deeply, just prefer.


Q. Using tournament way to promote employee, if employee’s performance is not so good, there are chances to promote, and contrary, if two employee performance is great, but they need to get only one to promote. Company thinks its ineffective, but company can feel difficult to change because they used this method for a long time. In this case which method to maintain tournaments and increase effectiveness?

A. In this case, company should adopt new indicator to promote employee. And gradually change their promotion rule. Because it can leading employee to turnover or inadequate use of skilled workers. So in the end company have to adopt standard way.


Q1. There are monetary rewards and non-monetary rewards for incentives. Most of our companies offer incentives based on their experience. Once you get a raise, you get promoted, and when you get promoted, you get paid automatically. This is a way of ignoring the value of the job, which ignores the value of the job, and therefore, it can not only be felt unfairly, but it can also lead to higher turnover.

In fact, I didn't know exactly how much I received each other, but I expected it to be based on the annual salary and position.Korean companies and employees are tacitly agreeing on such incentives. Although the quality and value of the work have remained unchanged,

It is obvious that this method of awarding incentives to older people is inefficient. The company will stand on its own terms. So why are these inefficient practices still being used in this era of achievement? Why does the company suffer such losses despite the company's pursuit of profit?

A. It is not easy to subvert the existing system used by large corporations. Businesses are willing to stick to their methods even if they suffer some losses. And those who enter the company are already beginning to acquiesce.

Q2. The retirement age of Korean workers is 60 years old. Entering an aging society, the retirement age is also being extended. What does the organization mean regarding the retirement age? In the United States or other multinational corporations, if there is no problem with the treatment of a given task, it is not recommended to induce retirement. Regardless of whether you are paying for your career, or what you're doing, you can do it regardless of whether you're older or younger. Therefore, there is no problem with abolishing retirement age in major developed countries. But South Korea is different. What can South Korean companies react to in response to rising retirement age? Are we prepared for a new incentive system for the change of time?

A. For this reason, companies are unwilling to hire new employees. Extending the retirement age leads to youth unemployment. This is not only about corporations but also the whole nation needs to think about it.


Q. Most companies prefer to look for people who have a career when recruiting new employees. It seems that in general, people with a lot of experience will have more expertise and skills in certain areas. And in fact, people based on their career are more capable. In order to pay a differential bonus according to employee’s career, it should have the suitable performance and efficiency. However, if the new person does not have the skills and abilities to match with their career, should manager support their ability and competence? And what is the best way to avoid an inefficient worker?

A. A company is an organization that pursue profits, so they don’t need to have inferior employees. To avoid efficient employees, companies can adopt the evaluation period.


Q1. Moon Jae-in is moving toward expanding the job creation in the public sector. But I think this is different from the career-based bonus level, but in the public sector, How can we do it effectively?


Q2. Careers can be thought of in many ways. I can see it in various ways such as annual work or performance. So what if there is a good way to see it as a career based bonus level?


Q3. Unlike companies, entertainment companies are paid differently according to the star and popularity of entertainers than their career experience. What happens if you give career-based bonuses to the entertainment industry?

A. The value of the actor will increase.

Chapter 12 questions


Q. In recent years, many companies have given stock options to employees and CEOs with incentives. The stock options are determined by the company's management status and success. So, the members of the company strive to increase the value of the company. However in case of CEO, they select short-term investment and project rather than long-term investment that make a result after his tenure or high risk project because of stock option. What options or incentives do you have to give CEOs the opportunity to invest in the company's future while achieving overall business efficiencies through stock options?

A. The incentives determined by the results are determined rather than the incentives determined by the current status. If the CEO carries out a long-term project that will benefit the company, the value of the company will increase as shareholders and customers expect it.


Q. For the start-up companies, stock option is very useful method. They can control over capital expenditure and select talented people as well However, this system makes investors hesitant to invest lots of money. How can we deal with this problem? How they make a rational decision of their resource distribution?

A. Nothing matters if the vision and goal of the company is clear.


Q1. Why should call option be given? Can't firm be done with it by just giving out bonus?

A. With call option, employees are much more motivated.

Q3. A professional employee who made a lot of money with call option and has the knowledge about the classified information about the firm starts his/her own start up in the same industry. The firm doesn't wish to have more competitor in the market, what should the firm do?

A. Interrupt the startup from gaining profit.