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Jack Welch
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Jack Welch tells Korean businesses to rework managerial structure
Former General Electric Co. Chairman Jack Welch advised South Korea to boost its technological creativity, saying no innovative product, such as Apple’s iPod, is currently produced by South Korea.
In a videoconference hosted by the Ministry of Commerce, Industry and Energy on December 15, Welch said South Korea should raise its competitiveness through innovation, as the era of speedy production development and efficiency is gone, he said.
South Korean companies only put their focus on adding new functions after importing innovative products, while they make few inventions of their own, Welch said. In the United States, young entrepreneurs have presented a variety of innovative ideas, he said.
To boost creativity, Welch urged companies to set up a rational system of rewards in which "more incentives go to people who have creative ideas or make innovative products."
In addition, Welch advised South Korean companies of the need to change their traditional managerial system, saying they do not have enough of their workforce devoted to the managerial level because of the top-down executive structure of the Korean system. To increase profits from exports, mergers and acquisitions are necessary, he said, in which case a company should have sufficient workforce to fill all job levels at an acquired company. Related to labor disputes, Welch said building mutual trust should be companies’ top priority. “Whenever I visited a plant, I had always a meal with labor union members and we exchanged thoughts with one another.” Please direct questions or comments to [englishhani@hani.co.kr]
