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Research Article

The Synergy of Empowerment and Engagement: A Case of Kia Motors Slovakia’s Innovative Solution

Minsun Yeu1 · Yoo, Weon Sang2 · Shijin Yoo2

1 Harbin Institute of Technology, 2 Korea University

Published: January 2017 · Vol. 21, No. 3 · pp. 147-170
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Abstract

Kia Motors Slovakia (KMS) is a manufacturing facility established by Hyundai Motor Group to cover the European market. The factory has played an important strategic role and consistently showed a top-level productivity and various business performances in both external and internal assessments. Factories in other countries, it is not easy to local employees actively participate. Also local employees were not motivated and depends on Korean managers. There are two of the most important success factors for KMS to overcome these limitations: empowerment and engagement. The management of this factory has unprecedentedly delegated its strategic roles and responsibilities to local employees (i.e., empowerment), which has successfully driven active and voluntary managerial participation of the local employees (i.e., engagement). A unique managerial practice, Core Factor System, has been deployed to facilitate the synergistic effects between empowerment and engagement at KMS. This managerial practice has significantly contributed to KMS to achieve globally recognized business performances in virtually all areas including productivity, product quality, labor-management relations, and profit. This case analyzes the success of Kia Motors Slovakia in detail to provide managerial implications for Korean companies facing various challenges in managing manufacturing facilities in foreign countries.
Keywords: 기아자동차권한 부여참여현지화