The Research Of Yuhan-Kimberly’s New Paradigm Management

Current Korean economy is not good. The economic situation, both inside and outside the country, is facing difficult times. Consumption and investment are not showing signs of recovery, and unemployment rate is still high. Though export growth has kept economic staying normal, external circumstances are not favored either. There is sharp rising of oil price, high prices of raw materials and increased interest rates. China, Korea’s principal trading partner, has decided to speed down the economic growth. In the labor sector, interim employees are struggling to be employed as regular workers. Working conditions, including payment, are drastically changing according to the new five-working day system, which increases the strike of the labor unions.Though situations are not favorable, companies are trying to increase a competition power to achieve higher profitability, better productivity, less waste and bigger cost saving by innovation. Innovation sometimes includes restructuring, lay off of unnecessary workers.But, side effects are not small. For example, restructuring weakens the internal integrity of the organization, increases the work intensity, which often lead to increase of industrial accident.Sometimes cost saving forces to ignore the importance of the employee training. But it would be very important to establish a company’s culture to defeat the important problems. One solution for the above problems could be the research on production system with high performance.This paper will give explanation with theoretical background about the questions regarding the production system and competition power of coompany, such as "What is the origin of each company’s competitive power?","Where does the differentiation come from between other companies?", and "How to establish and promote a strategy for performance improvement?"Core competencies are those capabilities that are critical to a business achieving competitive advantage. The starting points for keeping core competencies are investment to human resources with training, knowledge management with experienced know-how, improvement of work system toward better efficiency and performance, and finally organizational innovation to enable prompt decision with systematic communications and information sharing.This paper will concentrate on the production system, especially on the features of Yuhan-Kimberly’s new paradigm system. How to improve company’s competitive strength without dismiss workers through the analysis the Yuhan-Kimberly’s new paradigm system and it’s basic theory of High Performance Work System(HPWS) and knowledge worker.