Decision of the Title 'PM' Through Member Collaboration and Voting
Introduction of Unified Rank System... Concept of Promotion Disappears
[Asia Economy Reporter Hwang Yoon-joo] SK Innovation is implementing a human resources innovation that unifies the traditional rank system into a single rank. SK Innovation's new single rank system is attracting attention from the business community because it not only standardizes external titles but also eliminates internal management stages.
On the 14th, SK Innovation announced that it introduced title changes and a single rank system along with organizational restructuring. The new titles will replace the existing ranks of employee-assistant manager-manager-department head, and the concept of promotion will disappear with the introduction of the single rank system.
The integrated new title, effective from January 1, 2021, is PM (Professional Manager), which was selected through a public contest and voting by employees starting last November. The selection criteria were mainly threefold: ▲contributing to the establishment of a horizontal organizational culture ▲reflecting and aiming for work expertise ▲incorporating the unique identity of SK Innovation affiliates. As a result of participation by 59% (2,059 people) of employees, 'PM' was finally chosen.
'PM' signifies becoming a professional member who independently manages tasks comprehensively. Additionally, it is uniquely used only within SK Group affiliates, allowing SK Innovation to express its distinctiveness.
Recently, many companies have unified titles, but often maintain rank systems for management purposes. However, SK Innovation has gone a step further by abolishing even such rank systems, achieving a true 'rank destruction.' This was made possible by the combination of talent management policies focused on 'growth' and the experience of operating a role-based system since 2007.
The abolition of seniority-based hierarchy is based on SK Innovation's corporate culture change efforts, where employees actively participate in creating the culture. SK Innovation has been promoting the so-called 'destruction of the three walls (boundaries of organization, time and space, and hierarchy)' to establish a working style based on 'autonomy' and 'responsibility.' This initiative aimed to create an environment where free thinking can flourish, fostering greater growth among employees. Talent management systems such as evaluation, transfer, and development have also focused on 'growth.' Going forward, all employees from new hires to department heads will be called by the new title 'PM' and will receive fair treatment internally based on performance.
Ji Seung-young, Head of HR Strategy at SK Innovation, said, "For the system's original function to be properly realized, it must be approached from the 'employee experience' perspective rather than the 'company's perspective' to convey sincerity."
SK Innovation is implementing a personnel system innovation that unifies all positions into a single rank. This is unrelated to the article content. [Image source=Getty Images]
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