Best Practices and Performance-Based HR System in Korea

Abstract

The purpose of this paper is to review major changes in the HR system

in Korea and to suggest five propositions that need to be studied for

better understanding of the configuration of performance-based HR

system in Korea. The HR system in Korea went through great

transformations after the financial crisis in the late 1990s. The

performance-based HR system, which many Korean companies

currently claim to have, is thought to have originated from the notion of

so-called best practices of leading U.S. companies. In the framework of

best practices, there is one universal HR practice set that can be applied

to any situations. Although Korea maintained much of its unique

organizational culture and HR practices, Korea also modified its HR

system after the best practices to a great extent.

By understanding the similarities and differences between the

performance-based HR system and best practices, we will be able to

better understand the current Korean HR system. In this study we call

for empirical work on the changing configuration of HR system in Korea.

We suggest five propositions that will be crucial in understanding the

similarities and differences between the performance-based HR system and best practices.