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19-01-2015, 10:10 PM
An honorable member of the Coffee Shop Has Just Posted the Following:

1. Nut rage (8 December 2014)

http://fullcomment.nationalpost.com/...iness-culture/ (http://fullcomment.nationalpost.com/2014/12/16/nut-rage-incident-exposes-south-koreas-feudal-business-culture/)

‘Nut rage’ incident exposes South Korea’s feudal business culture

http://www.gravatar.com/avatar/7d918e7fc7625f8ce7a0cb72402fb93b?s=51&d=mm (http://fullcomment.nationalpost.com/author/aramintaw/)

(http://license.icopyright.net/rights/oneButtonTag.act?tag=3.12386?icx_id=171222)
Araminta Wordsworth (http://fullcomment.nationalpost.com/author/aramintaw/) | December 16, 2014 | Last Updated: Dec 16 7:00 AM ET


http://wpmedia.fullcomment.nationalpost.com/2014/12/south_korea_korean_air_apologies.jpg?w=620
LEE JON-MAN / THE ASSOCIATED PRESSTruly, deeply sorry: Heather Cho

Heather Cho’s hissy fit is throwing unwelcome light on South Korea’s secretive and elitist chaebol — the several dozen conglomerates that control most of the country’s business.

The executive vice-president of Korean Air Lines had a meltdown on board one of her company’s flights. The cause of her ire: a flight attendant in the first-class cabin handed her a bag of macadamia nuts, instead of placing it on a plate.

The 40-year-old insisted Park Chang-jin, the senior purser, be removed from the plane for this offence. The pilot — who was supposedly in charge — was forced to return to the gate at John F. Kennedy Airport and the flight was delayed.

But Ms. Cho’s sense of entitlement doesn’t stop there. Airline officials repeatedly tried to get Mr. Park to say media reports of the incident were false in an effort to save face. They also tried to buy off the only other passenger in first class who had a grandstand view of her performance — with a model airplane and a calendar.

The scandal comes after April’s Sewol ferry disaster in which more than 300 people drowned. The fated ship was part of a web of businesses controlled by the Yoo family. Investigators found the Yoos had siphoned off millions of dollars to live in luxury, while encouraging managers to cut corners and flout safety rules.

Last week, Ms. Cho and her father Cho Yang-ho formally apologized. But their acts of contrition have done little to allay concerns about their feudal management style. (http://www.forbes.com/sites/donaldkirk/2014/12/14/korean-air-nut-rage-incident-raises-issue-of-safety-risk-of-family-rule/)
Meanwhile, unedifying details are emerging of Ms. Cho’s bad behaviour, reports Ju-min Park (https://ca.news.yahoo.com/korean-air-chief-purser-nut-row-says-insulted-024248390--finance.html) at Reuters.
The head of cabin crew … said he was insulted and forced to kneel down to apologize to the executive … “In a situation where she said, ‘Make contacts right now to stop the plane. I won’t let the plane go,’ I dared not object to her, the owner’s daughter,” Park Chang-jin, the chief purser, told state-run TV network KBS ….
Park said that Cho swore at him, jabbed the back of his hand with a file case several times, and pointed her finger at him while he kneeled.

But that was not the end of it, adds You-gyung Lee (http://www.usatoday.com/story/todayinthesky/2014/12/14/crew-in-korean-air-nut-rage-says-he-was-insulted/20411185/)of The Associated Press
When Park returned to South Korea on a separate flight after being forced out from the plane, five to six officials from Korean Air came to visit his home every day and asked him to give a false account to authorities of what happened, he told KBS … The officials asked him to tell investigators that Cho did not use abusive language and that he voluntarily got off the plane.

It’s the usual PR disaster directly related to the owners’ feeling of entitlement, observesan editorial (http://www.koreaherald.com/view.php?ud=20141215000630)in The Korea Herald.
“Feudal” management practices, where the owning family of a company wields absolute, unbridled power and the employees’ primary goal is to protect the interests of the owning family, have no place in the highly competitive 21st-century business environment.

The founders of Korea’s conglomerates were pioneers and are mostly respected for their achievements. However, there is a sense of resentment toward second- and third-generation owners due to their sense of entitlement and arrogance … Leadership positions at the company founded by one’s parent or grandparent should not be a birthright. These positions need to be earned and should be filled by the most qualified person ― heir to the founder or not ― if chaebol are to stay competitive.

This is not the first time the airline has been in the spotlight as a result of poor management, notes Donald Kirk (http://www.forbes.com/sites/donaldkirk/2014/12/14/korean-air-nut-rage-incident-raises-issue-of-safety-risk-of-family-rule/2/) at Forbes magazine.
Largely overlooked in the ruckus is that Cho Yang-ho was kicked upstairs to the post of chairman after being forced to step down as president of Korean Air 15 years ago after a series of disasters that cost the lives of hundreds of passengers. These included the crash of a Boeing 747 when it flew into a hill in Guam in August 1997, killing 228 people, and the shoot-down by a Russian fighter plane of another 747, killing 269 people after it strayed into Soviet air space in September 1983.

The record of Korean Air was so disturbing that the late Kim Dae-jung, then president of South Korea, strongly criticized the Korean Air owners and their style of management. A central point at issue was the hereditary nature of the management in which Cho Yang-ho had come to power almost automatically in the style of succession that is typical of the modus operandi of the chaebol.

The only bright spot in all this: macadamia nut sales have soared (http://www.dailymail.co.uk/news/article-2874207/Sales-macadamias-soar-daughter-Korean-Air-Lines-chief-demand-served-plate-not-bag.html%E2%80%99) in South Korea.




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