Organizational Culture of Hyundai Automobile Company

The report highlights the organizational culture that is practiced in “Hyundai Automobile Company”. The analysis of the internal as well as the external environment of the company is important as because it helps to determine the effectiveness of the management strategies and the different issues faced by the organization. The report has presented a transparent picture of the current cultural status and identity of the company along with a number of other different factors that are influential in the determination of the culture of the company.

Running head: ORGANIZATION BEHAVIOR
Organization behavior
Name of the student
Name of the university
Author Note:

2
ORGANIZATION BEHAVIOR
Introduction
The organizational culture can be said to be the set of underlying beliefs, values,
assumptions and the different ways of interacting with the unique social as well as psychological
environment of the organization. The culture of any organization is mainly dependent on the
expectation of the company, experiences of the company, philosophy of the company and many
more as such. The culture can also include the vision and mission statement of the organization.
It is believed that better the culture, the better is the chance of attaining success in the company.
The following report highlights the organizational culture that is practiced in “Hyundai
Automobile Company”. The report has presented a transparent picture of the current cultural
status and identity of the company along with a number of other different factors that are
influential in the determination of the culture of the company. Apart from the determination of
the organizational culture, the impact of the culture on the operations of the company has also
been discussed in the report.
Discussion regarding Culture of the Company
In terms of the Culture of the Company, the management of Hyundai Motor Company
has the basic philosophy and believes to be existing for its own being and the foundation for its
continued existence”.The company has a set of different guiding principles for the employees in
the organization which makes it essential to realize the philosophy of the management and the
vision of the company (bluelink.hyundaiusa.com, 2018). The Company’s culture depends on the
vision of the company whose vision is to follow through the different types of business strategies
and the goals of the organization. The management of the company totally combines all of these
different factors to create its own organizational culture which mainly depends on three different

3
ORGANIZATION BEHAVIOR
points. Firstly realization of all the possibilities in the business, secondly the unlimited sense of
responsibility and thirdly the respect for the mankind as a whole (bluelink.hyundaiusa.com,
2018). The company gives utmost importance to the importance that the different automobiles
have on the society and mankind. It believes that apart from transportation the automobiles have
a great role to play in the growth of the mankind. The company also provides great value to the
employees of the organization and provides them with different benefits and helps to develop
their potential which can help them in the future.
The analysis of theinternal as well as the external environment of the company is
important as because it helps to determine the effectiveness of the management strategies and the
different issues faced by the organization. The company has a diversified business environment
with a global reach. Apart from this the company has also the capability to enhance its business.
The power of establishing and expanding its business to new horizons is another main advantage
of the company. The company is already the fourth largest automobile manufacturer of Asia. The
operations of the business though have been hampered by the increase in the cost of the
production. However, the injternal working environment of the company is very much friendly
in nature. The employees are very much helpful and adhere strictly to the guidelines of the
management. Ethics is also considered to be one of the most important areas of consideration.
The company organized its Ethics Management Office, with the Executive Director of the
Corporate Planning & Personnel Management Office serving as the Chief Ethics Officer, and
also established the Principles of Business Conduct, the Code of Conduct, and the Self-Review
Questionnaire.

4
ORGANIZATION BEHAVIOR
Figure no 1: Organizational Chart
Source: (bluelink.hyundaiusa.com, 2018)
The organizational chart of the company shows the presence of the Board of the Directors
in the topmost level of the organization. The board of directors is followed by the Chief
Executive Officer and the Vice president of Operations. While the Board of Directors are
engaged in taking important decisions, the CEO is engaged in implementing these decisions and
taking a report from the different managers on the progress of the work. The Vice President
looks after the daily operations of the organization. The General Manager comes next to the Vice
President Who controls the operations of the different managers in the lineup of the company.
There are a large number of different factors that have a great influence in the
determination of the organizational culture of Hyundai Automobiles private Limited. Individual
working with the organization is the first and the major factor of the organizational culture. The
employees of Hyundai can contribute to the culture by their own style of work, own attitudes,

5
ORGANIZATION BEHAVIOR
mentalities, interests, perceptions and many more as such. The thought process of the employees
too affects the organizational culture.The organizational culture can be said to be the set of
underlying beliefs, values, assumptions and the different ways of interacting with the unique
social as well as psychological environment of the organization. The culture of any organization
is mainly dependent on the expectation of the company, experiences of the company, philosophy
of the company and many more as such. The culture can also include the vision and mission
statement of the organization. It is believed that better the culture, the better is the chance of
attaining success in the company. The following report highlights the organizational culture that
is practiced in “Hyundai Automobile Company”. The report has presented a transparent picture
of the current cultural status and identity of the company along with a number of other different
factors that are influential in the determination of the culture of the company. Apart from the
determination of the organizational culture, the impact of the culture on the operations of the
company has also been discussed in the report.The main factors that have been identified are as
follows;
 Individual working with the organization is the first and the major factor of the
organizational culture. The employees of Hyundai can contribute to the culture by their
own style of work, own attitudes, mentalities, interests, perceptions and many more as
such. The thought process of the employees too affects the organizational
 as such. The people working in Hyundai are never late at work which itself creates a
proper organizational culture on its own (bluelink.hyundaiusa.com, 2018). The wish to
enter the office within the right time has been set in the minds of the employees which
ensures the sustainability of the culture of the company

6
ORGANIZATION BEHAVIOR
 The goals and the objectives of Hyundai Motors Company is also a major determinant
in the formation of the organizational culture of the business. The vision 2020 of the
organization has set the slogan of “Together for a Better
future”(bluelink.hyundaiusa.com, 2018). The Company has committed itself to be a life-
term partner in automobiles and beyond to come more close to the consumers and
making the cars produced by the company as their most beloved brand. The strategies
and the processes used to design and achieve the above mentioned vision of the
organization thus contribute to its culture in a much better and efficient manner. The management of Hyundai and the way it handles its employees also affects the
culture of the company’s workplace (Ackroyd et al. 2016). There are a lot many other
organizations where the employees are allowed toparticipate in decision making process
and participate in the construction of strategy. The following culture makes Hyundai
unique as employees of the company are attached more to the management and looks
forward to a long term association with the automobile company.
The automobile company has provided a great workplace to the employees where they
are always motivated to rise to different kinds of challenges and are able to work in a healthy and
proper manner (Alvesson&Sveningsson, 2015). Ensuring the mental as well as the physical
strength of the employees is necessary in the organization and helps them to perform in a much
better and competitive manner. According to, Bortolotti Boscari & Danese (2015)The
management of Hyundai has respected the diversity of the employees by offering them
environment in the workplace where all the different individuals can utilize their work and utilize
the most of their talents while also working in a set of teams to achieve different types of
ambitious goals of the organization. The employees of Hyundai are also free to share their

7
ORGANIZATION BEHAVIOR
knowledge based on individual experiences and different ways of thinking. The presence of such
innovative and proper physical atmosphere has helped the organization to meet the diverse needs
of the employees and have also ensured the sustained growth of the company in different
markets of the world.
The study of,Cao, Huo, Li & Zhao (2015) has shown that as one of the leading
manufacturers of cars and other automobiles in the globe Hyundai has a number of effective
leaders in their ranks. These leaders are capable to motivate the employees and lead the
organization to the path of the success. The personal experiences of these leaders usually send a
number of important as well as powerful messages to the people of the organization as the
actions are ethical and consistent. The employees of Hyundai have a great respect for the
managers and supervisors and follow all the different instructions and also closely observe the
leaders. The ethics is much of an organizational as well as a personal issue (González‐Romá,
2015). The ethical standards of Hyundai motor Company flows from the leaders and permeate
the organization. The leader implementingthe following example with thedifferent types of
coaching and teaching methods helps the subordinates to internalize the expected values. The
managers and the supervisors of the organization can communicate their message in many
different types of formal and informal ways. The leadership culture that succeeds must have
strong values, vision and consistency. Helms Mills & Mills (2017) suggests that the informal
messages are the most powerful coaching as well as teaching methods. The informal examples in
the company appear to make the leader much more familiar to the subordinates.
Hyundai Motor Company provides recognition and reward to the employees of the
organization for special causes and tremendous achievements both personally and as a team.
Appropriate rewards not only recognize and motivate the employees of Hyundai but also

8
ORGANIZATION BEHAVIOR
communicate the values of the organization to the employees (Hogan & Coote, 2014). IN HRD
system of the company, the innovations with the automobiles and the use of different capabilities
are rewarded in order to encourage the acquisition and the application of positive skills and a
variety of positive attitudes within the organization.
All the organizations are potentially vulnerable to events and crisis that can harm their
business or create a hurdle to the smooth flow of the business operations. In many of the cases
such kind of crisis situations leads to fatal incidents and can create a major damage to the
reputation of the organization (Manojlovich & Ketefian, 2016). The leaders in Hyundai have put
in place a number of different components to ensure safety and security of all the employees.
This includes;
a. Critical Response team
b. A critical response charter clarifying the do’s and don’ts of the employees
c. Emergency telecommunication systems
d. Presence of ambulance and doctors
e. Basic medical treatment unit
f. Presence of a expert workforce to avoid fatal incidents
Hyundai Motor Company is the largest manufacturer of motor cars and SUV’s in the
globe. It sells over 4 million vehicles worldwide and has a worldwide presence with different
manufacturing units in India, China, Turkey, USA and Russia. It sells cars in 195 different
countries of the world and has close to 1, 50,000 employees. The Company is served by Chung
Mong-Koo as the chairman and Lee Won-Hee as the President and the Chief Executive Officer
of the organization.

9
ORGANIZATION BEHAVIOR
The organizational hiring and firing have a great impact on the culture of the company.
Hyundai recruits people based on their practical knowledge and ability to showcase their skills to
improve the performance of the company (O'Neill, Beauvais&Scholl, 2016). The hiring of the
right people helps the organization to be the market leaders. However, according to,
Valmohammadi & Roshanzamir (2015) the company has a proper firing policy which is
necessary to get rid of the people who are considered to be junks and not fit for the company.
The firing generally happens if the company terms a person to be culturally misfit to the
organization. The hiring and firing activities help the organization to be stable and help to ensure
a better organizational performance. The knowledge of the employees is main factors behind the
hiring and firing activities. The success of the organization largely depends on the performance
of the employees the Hyundai hires. The HR management of the organization recruits people on
the basis of skills and experience. Generally employees are terminated when they are unable to
match their performance on the standard set by the organization.
Conclusion
The following report has provided a clear and transparent picture of the organizational
culture with the mentioning of the different factors and components related to them. The
explanation of all these elements in a brief yet compact form has enabled the report to be an
informative one. The thorough analysis of the following report can help the readers to understand
about organizational culture in Hyundai and will also be able to figure out the organizational
culture that is generally practiced in the automobile industry to attain success in the market.

10
ORGANIZATION BEHAVIOR
References
Ackroyd, S., Crowdy, P. A., Adler, P., Alvesson, M., Alvesson, M., Alvesson, M., ... &
Sköldberg, K. (2016). On the Naming of the Rose: Interests and Multiple Meanings as
Elements of Organizational Culture. In Changing Organizational Culture: Cultural
change work in progress (Vol. 19, No. 5, pp. viii-viii). Berlin: Jossey-Bass.
Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change
work in progress. Routledge.
Bluelink.hyundaiusa.com. (2018). HOME - hyundai.com. [online] Available at:
https://bluelink.hyundaiusa.com/ [Accessed 3 Nov. 2018].
Bortolotti, T., Boscari, S., & Danese, P. (2015). Successful lean implementation: Organizational
culture and soft lean practices. International Journal of Production Economics, 160, 182-
201.
Cao, Z., Huo, B., Li, Y., & Zhao, X. (2015). The impact of organizational culture on supply
chain integration: a contingency and configuration approach. Supply Chain Management:
An International Journal, 20(1), 24-41.
González‐Romá, V. (2015). Mark G. Ehrhart, Benjamin Schneider, and William H. Macey.
Organizational Climate and Culture. An Introduction to Theory, Research, and Practice.
New York, NY: Routledge, 2014, 364 pages, $59.95 paperback. Personnel
Psychology, 68(3), 703-706.
Helms Mills, J. C., & Mills, A. J. (2017). Rules, Sensemaking, Formative Contexts, and
Discourse in the Gendering of Organizational Culture☆. In Insights and Research on the

11
ORGANIZATION BEHAVIOR
Study of Gender and Intersectionality in International Airline Cultures (pp. 49-69).
Emerald Publishing Limited.
Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test
of Schein's model. Journal of Business Research, 67(8), 1609-1621.
Manojlovich, M., & Ketefian, S. (2016). The effects of organizational culture on nursing
professionalism: Implications for health resource planning. Canadian Journal of Nursing
Research Archive, 33(4).
O'Neill, J. W., Beauvais, L. L., & Scholl, R. W. (2016). The use of organizational culture and
structure to guide strategic behavior: An information processing perspective. Journal of
Behavioral and Applied Management, 2(2), 816.
Valmohammadi, C., & Roshanzamir, S. (2015). The guidelines of improvement: Relations
among organizational culture, TQM and performance. International Journal of
Production Economics, 164, 167-178.