Samsung Electronics Co Case Study
9 billion2. The success of every organisation is attributed to various factors including its organisational structure culture and leadership. In March 2016, the company announced a change in its organisational culture to start up-like culture3. This change in culture is meant to allow the company to remain viable and as competitive as before especially when its growth rate starts to slow. A start up culture involves an environment that acknowledges and welcomes creativity, creative problem solving, a flat leadership hierarchy, and an open communication model. Samsung Group is in the forefront to ensuring that its employee base remains innovative and creative enough to cope up with the industry and market forces8. In order to achieve this, the company has an elaborate human resource management system supported by the HR department.
The department recruits highly innovative, creative, and talented members of staff in order to maintain its creativity and innovativeness9. More importantly, the HR department has developed a plan for talent management including regular staff trainings and evaluations. This system strengthens the company’s culture. The reduction in number of leaderships of levels in the leadership promotes a virtue of openness which is part of the culture. This encourages free flow of ideas within the organisation. In addition, the reduction in number of hierarchy levels adds an advantage to the company’s culture especially on employee engagement13. Employee engagement has created a sense of belonging amongst the employees whereby they value the company’s development. In this case, there is an increased commitment to their roles and responsibilities.
The management has always encouraged their employees to participate in most of their volunteer programs. They also try to improve the environment in which they operate by engaging in activities which are environment friendly. Moreover, it facilitates different sporting activities which enhance the social life of its people. Therefore Samsung has continuously worked with their regional offices worldwide and project sites to ensure that their social responsibilities are fulfilled in any place where they do their business. Samsung technologies are committed to ensure that children are provided with clean and well-lit environment for learning. This is important because it gives people the skills of living and creating their own income. This task not only equips people with skills but also provide the world with the necessary human resources required.
Despites this, the company further employs these individuals as a way providing employment to the community. Some of these individuals have started their industries which in return employ a large number of people in the society. By this, Samsung Engineering is able to help the society in which it operates as well as strengthening their corporate position in the region. Samsung has extended its local concern to health of the people and agriculture. It has initiated “Blood Donation” program within the society. The blood obtained is of great help because it helps during treatment of children with cancer. This program seems to be successful in the area of its operation. Other community voluntary services include collaboration with local communities in agriculture.
It signed an MOU to co-manage a platform concerning environment among the young people. In this program, it enables children to learn from its experts on how it manages its environmental issues. This inculcates an environmental-friendly-culture in the children. Samsung has actively participated in Corporate Social Responsibility. It has greatly contributed in Agriculture by supporting farming activities among the farmers. The company in conjunction with Samsung art and Design Institute, where its employees are trained, uses this training as its competitive advantage. At this institute, the Samsung students acquire technical training which gives Samsung a unique edge in blueprint of technology. By combining the design distinction with its competence of traditional technology, Samsung Company has been able to sustain a strategy of high for its phones and televisions20.
Management of Employment Assignees Samsung acquire an edge of global development by sending its employees abroad and bringing in foreigners. It sends its home country employees as expatriates to a foreign country out of its headquarters. The employees who were sent outside the country observed successful management styles around other countries that could be established in Korea. By installing a payment system that is merit based, it motivated and encouraged action among employees at Samsung. As much as the merit based payment system motivated employees at Samsung to compete as it is observed in West region, the system was accompanied with its consequences. To begin with, the system led to stumble of the traditional culture of seniority in the organizational members.
Secondly, the culture replaced the business practices of guanxi, where there was favoritism among employees with common ties. This is due to cultural difference between Eastern and Western hence it might be difficult for Eastern firms to adopt Western practices since they might be inappropriate. For instance, the Western guanxi might be of great benefit to both Western and Eastern, but it only applies to Korean, Japanese and Chinese culture. Distinctive Features as an Emerging Multinational Market Enterprise from Asia The Asian market has some variations when compared to other markets like the West. The dynamism of the market is exhibited in various ways, and Samsung has had to develop certain features to cope up and thrive in the Asian market.
One feature entails human resource management. Its reluctance is due to the fact that the phenomenon is only common among the Japanese, but rare in Taiwan and Korea. The employment tenure in those places tends to be short term because of the contracts. Another feature lies in the organizational culture. In the Asian market, decision making is normally hierarchical and top down. There is high centralization, and most of the decisions are left in the hands of the top management. As a result, the company introduces new products to the market more often. For instance, A7 is among the company’s innovative products that reveal its creative culture. However, Samsung’s operations in Asia are threatened by various socio-political factors. One major challenge is the military power issue that strives to balance the West’s.
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