Performance Management at LG: The LG Way

Brief Introduction to LG

LG Corporation, formerly Lucky-Goldstar, is a South Korean multinational conglomerate corporation. It is the fourth-largest chaebol in South Korea. It is headquartered in the LG Twin Towers building, Seoul. LG makes electronics, chemicals, and telecom products and operates subsidiaries such in over 80 countries.

The LG way of Performance Management.

The LG Way is a unique management philosophy that has been passed down through generations of LG managers and employees. Starting from the company’s establishment, the LG Way has continued as an embodiment of the spirit of LG’s vision, its experiences and management expertise accumulated over its history. Accordingly, the LG Way is the foundation for thought and action that every LG member should observe and practice.

Simply put, LG Way is the call to becoming a premier company hence the essence of its strategic vision is embodied in No.1 LG. At its foundation is the management principles of Customer-Value Creation and People-Oriented Management, which are in turn implemented according to the high ethical standards of behaviour delineated by Jeong-Do Management.

 

Performance Management in an essential and integral part of LG and the same is in-biped within the all the levels of management and employees working in the organisation. The final goal of LG is to become the world’s No. 1 brand and it can only happen when the customers are happy with the organisation.

Performance Management in LG is done is three steps:

1. No. 1 LG

A lasting company which contributes to human prosperity and fulfills social responsibility by delivering sustained and differentiated customer values.

·         a.TO CUSTOMERS

a trustworthy brand that provides best products and services

·         b. TO COMPETITORS

a leader that dominates, but a leader to learn from

·        c. TO EMPLOYEES

a great workplace that talented individuals want to join

·         d. TO INVESTORS

a secure investment that yields sustained high returns

2. “Jeong-Do" Management

a. Integrity

Work transparently according to principles and standards.

b. Fair Transaction

Provide equal opportunities and fair treatment in every transactional relationship.

c. Fair Competition

Improve capabilities with which one can fairly win the competition.

3. Management Principles

a. Customer – Value Creation

CUSTOMER FRIST	·         - Think of customers as the top priority – the starting point of management ·         - Make decisions with the emphasis on the end-user
DELIVERY OFSUBSTANTIVE VALUE	·         - Be on step ahead in finding latent customer needs ·         - Provide the best products and services that exceed customer expectations
INNOVATION-DRIVENCREATION	·         - Come up with differentiated ideas that sleep “outside the box” ·         - Always look for and practice better method and practices

 

b. People – Oriented Management

SELF MANAGEMENT AND CREATIVITY	·         - Take ownership in all matters and take initiatives ·         - Break free from conventional ways to pursue new ideas and think outside the box
RESPECT FOR HUMAN DIGNITY	·         - Respect diversity and dignity of individuals ·         - Consider people as the most important asset
CAPABILITY DEVELOPMENT AND ACTUALIZATION	·         - Believe in your ability to become Number One and focus on developing competencies through work ·         - Provide the opportunity for individuals to demonstrate their potentials to the maximum
PERFORMANCE BASED REWARD	·         - Set a challenging goal and make sustained achievements ·         - Evaluate and compensate fairly to reflect short and long-term achievements