Introduction: This case is a convergence of several Human behavioral aspects like power
distance and effect of values on professional society as an example ‘organizational hierarchy’.
SK telecom South Korean company has organizational hierarchy culture that reflects in South
Korea’s cultural value to major extent as well. Power distance has several characteristics. People accepting the unequal distribution of the power, employees value obedience to the authority and are comfortable receiving commands from their superiors without consultation or debate, they give preference to resolve differences indirectly through formal procedures rather than face to face or direct communication. On contrary, in egalitarianism, maintaining equity in all entities is a basic doctrine. People expect relatively equal power sharing and interdependent relationship with their bosses rather than mono dependence. In egalitarian culture, employee may approach boss in condition like decision dilemma. Lower positioned employees may suggest their opinions without hesitancy in abovementioned structure.
1) SK Telecom is attempting to distance itself from which South Korean cultural value? What indicators of this value are identified in this case study? What other artifacts of this cultural value would you notice while visiting a South Korean company that upheld this national culture?
SK Telecom is attempting to distance itself from traditional strong hierarchical system which is adopted by South Koreans few decades ago. Under this hierarchical system people authority positions are not to be questioned for their decision by any of their subordinates, the subordinates are expected to silently comply with all the order of their superiors.
This case study identifies various indicators of this hierarchical system in SK Telecom Company. It is stated in the case that an Employee at the fourth tier in SK Telecom Co.'s five-tier management
/professional hierarchy; the 33-year-old strategist held the title of "Hur Daeri" received plenty of respect from subordinates. None of the subordinates were allowed to question Hur’s decisions, and similarly Hur was expected to wordlessly obey with requests from his superiors. From the above we can state that power is concentrated in SK Company among few people in higher positions like vice president and managers. Involvement of the subordinates in decision making is far away. Even excellent ideas from the subordinates were shot down by their bosses, just because bosses in position have the power to do so. Subordinates are just made to do the work dispensed by the higher officials. Team leadership positions were given to only those with high seniority. South Korea's culture of deferring to people in higher positions was deeply ingrained in the telecommunications company.

Artifacts like lack of confidence, capacity to sustain peer pressure, locus of control, self efficacy and situation also indirectly becomes reason for positive or negative approach of employee towards organizational hierarchy. In majority of the Korean companies still the older people with experience are given new projects while younger generation who has enough talent are not encouraged or allowed to undertake a challenging task. Not particularly in South Korea but in any professional organization the above mentioned factors should be balanced along with egalitarianism, which is not visible in South Korea so far, but SK telecom is trying to become
iconoclastic company in this example.
2) In your opinion, why is this hierarchical value so strong in South Korea? What are the advantages and disadvantages of this value in societies?
The reason for the hierarchical value being so strong in South Korea is because of their cultural traditions and customs. We learnt from history of Korea that before the division of North and
South Korea, it was once a united country where there was monarchial governance. Monarchy government, ruled by a king or a queen who inherits their position from their family, which is often called the "royal family." With an Emperor ruling the country, he is regarded as the most powerful person in the country. His words and orders should be followed without any questions or dispute. No one can question the Emperor and his orders. The artifacts of this monarchy still exist in South Korean culture and tradition. People in South Korea have adopted unequal distribution of the power and they consider it as part of the system and culture. The same situation we see in many companies like SK Company or Samsung which were followers of hierarchy structure.
In traditional hierarchy, senior managers make up the board of directors and are responsible for establishing strategy, decision making and overall business direction, while middle managers obey the order and imply them. This kind of hierarchical structure clearly defines each employee’s role within the organisation and also defines the nature of their relationship with other employees. Hierarchical organizations are often more vertical with narrow spans of control, which gets wider as we move down the structure like pyramid. Decision making is centralized and flow of information or processing of the information is minimal. In the twentieth century as organisations grow bigger, hierarchical organisations were popular because they could ensure command and control of the organisation. However with the advent of globalisation and widespread use of technology, in the 1990’s tall hierarchical organisations began to downsize and reduce their workforce. Technology was able to carry out many of the functions previously carried out by humans.

Advantages of Hierarchical Organizations
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Authority and responsibility are clearly defined.
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Clearly defined promotion path.
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There are specialists managers and the hierarchical environment encourages the effective use of specialist managers.
 Subordinates respect higher officials. Discipline can be maintained in an organization.
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Employees very loyal to their department within the organization.
Disadvantages of Hierarchical Organisations
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The organization can be bureaucratic and respond slowly to the changing customer needs and the market within which the organization operates. As decision making is centralized, the person who takes decision might not be totally aware of situation or issue.
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Communication across various units can be poor especially horizontal communication as there is low process of information across the traditional hierarchy organizational structure.
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Creativity, efficiency lacks as employee involvement in decision making is minimal/low.
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There is limitation to development of knowledge and skills of employee as they are not given stimulating tasks.
 Job positions are not allotted based on talent, skill or intellect but on seniority, which is not optimal or even detrimental to the survival or growth of the company.
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There is more chance of fraudulence at higher level of hierarchy as there is low information processing and centralized decision making.
 We perceive dishonor and hindrance to employee /sub ordinates self-respect.
3) Do you think SK Telecom will be successful in integrating a more egalitarian culture, even though it contrasts with South Korea's culture? What are some of the issues that may complicate or support this transition?
We think SK Telecom will be successful in integrating more egalitarian culture, even though it contrasts with South Korean culture. Even though, people in authority position would like the old hierarchical culture as there is no resistance to decision making, but they have realized that by promoting more egalitarian culture , subordinates who deal with root level issues can come up with good ideas which if implemented ultimately benefits the whole organization. In this modern era of globalization where other companies worldwide are offering cut throat competition,

constant innovation and evolution can ensure survival and growth of the company for that to happen encouraging subordinates for their ideas and selecting agile, focused, passionate people for the positions irrespective if they are young and may not have enough seniority is very important.
The issues that support this transition:
SK Telecom is among the first large firms in the country to attempt this culture shift, and it has met with resistance along the way. SK Telecom introduced various approaches and plans that support egalitarian values. The company removed its five management ranks and their differentiated titles and status. The English word Manager is now used to address anyone employed throughout the five former ranks. (Hur Jae-hoon's title has changed from Hur Daeri to
‘Hur Manager’). Only vice presidents and above retain their previous status titles. People in charge of projects or people are also called "Team Leader." These reduce power distance and also inculcate interaction of employee with the superiors. This reduces power distance and also inculcates interaction of employee with the superiors.
 Furthermore, the company handover project leadership responsibilities to employees in their twenties, whereas these roles were previously held only by older staff with much more seniority. This way trying to encourage capable people and enhance their knowledge and skills. This is an initiative to eliminate power distance owing seniority.
 As an added change, the company is allowing a more casual dress code at work.
This also increases interaction among employees.
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Executive and managers are ready to accept and consider the opinion of staff/employee if they find it better than their opinion.
Through this dramatic shift in values and practices, SK Telecom's senior executives believe that junior staff will speak up more freely, thereby improving employee involvement, creativity and decision making. Majority of the employees support the egalitarian values. SK Telecom executive’s wants to quickly and completely remove these traditional hierarchal values and adapt new egalitarian values. This is reflected as company’s executive chose to all out reform rather than gradually.
The issues that complicate /serve as barrier to transition:
As traditional hierarchy is extremely embedded in system and people, it will be hard to exculpate absolutely. It needs time to achieve more egalitarian culture. Appropriate rules need to be enforced and implemented at various levels of hierarchy. Superiors and subordinates have to work together and remove unequal distribution of power. People, who have been in authority position, will have resistance to promote egalitarian values and will have to be incentivized.