Samsung Management report PDF

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Table of Contents

Research Methods:

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Introduction: Samsung Electronics: Management in Samsung:

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Corporate Culture in Samsung:

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Human Resource Management of Samsung Electronics

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Samsung’s Decision Making

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Business Ethics and Social Responsibility of Samsung Business ethics of Samsung: Social Responsibility of Samsung:

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Samsung Total Quality Management:

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Conclusion:

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References:

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Research Methods:

We have conducted the research on different management prospective through official samsung websites. Other than using official websites, we also went through the surveys conducted by the samsung Company. We gather information from the blogs, and also from Universities students project reports regarding samsung. The information was also taken from the articles.

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Introduction: Samsung Electronics: Samsung Electronics Co., Ltd is a South Korean multinational electronics company headquartered in Suwon, South Korea. Through having an extremely complicated ownership structure with some circular ownership, it is the flagship company of the Samsung chaebol, accounting for 70% of the group's revenue in 2012. Samsung Electronics has assembly plants and sales networks in 80 countries and employs around 308,745 people. It is the world's largest information technology company, consumer electronics maker and chipmaker by revenue. As of June 2018, Samsung Electronics' market cap stood at US$325.9 billion. Samsung has long been a major manufacturer of electronic components such as lithium-ion batteries, semiconductors, chips, flash memory and hard drive devices for clients such as Apple, Sony, HTC and Nokia. It is the world's largest manufacturer of mobile phones and smartphones, started with the original Samsung Solstice and later fueled by the popularity of its Samsung Galaxy line of devices. The company is also a major vendor of tablet computers, particularly its Android-powered Samsung Galaxy Tab collection, and is generally regarded as pioneering the phablet market through the Samsung Galaxy Note family of devices. Samsung has been the world's largest television manufacturer since 2006, and the world's largest manufacturer of mobile phones since 2011. It is also the world's largest memory chips manufacturer. In July 2017, Samsung Electronics overtook Intel as the largest semiconductor chip maker in the world.

Management in Samsung: The goal of operational management of the company Samsung is to earn more money, and objectives are cost, quality, delivery, flexibility and customer satisfaction. Samsung electronics focuses on five business sectors ‘ they are semiconductor, multimedia, digital applications, lcd network and telecommunications, globalization and new trends in commercial operation of Samsung electronics in ten years, shows it means from 1993 to 2003, there were totally changes employers who operate successfully developments. In 2007, Samsung electronics becoming the second largest mobile phone factory in the world.

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Strategic success is a direct concern for the different actors of the market and customers. It creates the possibility of skills in management and marketing, product management design electronic. Samsung DRM product development creates impacts on their progress, when sales company .

Corporate Culture in Samsung: Samsung organizational culture has been traditionally seniority-oriented reflecting the national culture of its home country South Korea. Positive aspects of such a culture may include higher levels of employee loyalty and faster speed of decision making. On the negative side, however, seniority-oriented organizational culture does not encourage junior employees to communicate their ideas and propose initiative to their superiors. The success of Samsung directly depends on many factors, among them ― the efficient work of the company’s staff. Only when employees are interested in the success of the company (when they are stakeholders) ― then the company will prosper. Only a properly coordinated work at the company will help employees to demonstrate their skills, abilities and intelligence correctly. But, as in every company, Samsung’s corporate culture has its own secrets.

Missions of Samsung for their Corporate Culture: Basing Samsung Group, Lee Byung Chull formulated the three missions of the company: 1) to contribute to the economic development of the nation 2) to act based on considerations of economic expediency 3) to respect the human resources Samsung’s corporate culture focuses on the integration and efficiency thanks to the talented personnel. In order to reduce costs because of trials or errors, and take advantage of the experience and knowledge of employees, Samsung has always tried to hire only the most qualified employees. Since its inception, it has accumulated in the field of improving the efficiency and learned to systematize this knowledge quickly and distribute them throughout the

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organization. As our business spans across numerous countries around the globe, we recognize and analyze differences in laws, regulations, and practices in respective countries while conducting business in lawful and ethical manner. We also develop and implement global personal data security policies to respect the privacy of our customers and employees and to protect their personal data. Our endeavors to systematically manage compliance and ethical risks are driven by the Samsung Global Code of Conduct and the Business Conduct Guidelines that guide all our employees in taking action and making value judgment. Our Corporate Legal Office, under the direct leadership of the CEO, operates the Compliance Team and Privacy Steering Committee in order to advance compliance management, and the Compliance-related committees and the Privacy Steering Committee assists our top management in their decision making process. Under these committees, each of our Business Divisions and Regional Offices, dedicated to Compliance and Privacy Organizations, are up and running to respond to operating compliance supervision and operating compliance programs for local subsidiaries and branches.

Work Execution: Samsung has a clear orientation on work execution. People working in samsung concentrates on improving the systems, process and innovation. In Samsung’s Corporate Culture, employees are both employee and goals orientated. Samsung shares & cares about its employees concerns over their health, children’s education, post-retirement life and provide better working environments. It also provides legal welfare programs such as premium subsidies for National Pension, Industrial Accident Compensation Insurance. The staff there are highly employee oriented.

Loyalty: The important component of the corporate culture of Samsung is the loyalty with an emphasis on fairness and diligence. The honesty and corporate ethics are very important, but the bribery and the pursuit of personal gain are prohibited. Samsung actively implemented training programs about ethical principles for new and old employees. Furthermore, Samsung developed a special system to prevent any unethical actions and behavior of staff: delinquent people have to wait for severe punishment.

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Disciplined: Samsung’s employees are extremely disciplined and always try to perform some tasks, even they are difficult for them. Employees of Samsung work under enormous stress. Managers of Samsung terribly afraid of any financial, accounting and auditing control.

Line Between public and private affairs: The people working in Samsung draws a strict line between their public and private affairs in all business activities. When the interests of the company and the individual conflict, the legitimate interests of the company shall take precedence. Samsung do not tolerate the appropriation of company assets or the use of company influence for personal gains.

Healthy Organizational Atmosphere: Samsung creates a healthy organizational atmosphere for its workers. They foster positive working relationships by prohibiting offensive practices such as sexual harassment, violence and inappropriate money transactions between employees. They do not allow favoritism or private groups based on external affiliations detrimental to harmony within the company.

Seniority-Oriented Culture that Needs to Change: As samsung’s culture is seniority-based culture, which has many negative impacts. This do not encourages junior employees to communicate their ideas and initiate their superiors. Such ideas and initiatives may prove to be insightful and play an instrumental role in new product development or adding innovative features and capabilities to existing products. Taking into account critical role of innovations and creativity in electronics industry, it can be argued that negative aspects of seniority-oriented corporate culture outweigh its positive aspects for Samsung. The company is aware of this and in 2016, the senior management announced plans to reform Samsung organizational culture. These reforms included simplification of job rankings from the previous seven stages to four stages and employees calling each other by their name with the suffix “-nim,” which shows respect in Korean, instead of calling them by their job titles, such as manager or director.

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Moreover, culture-related changes vowed by the company included holding more online internal discussions and reducing extraneous meetings, reducing overtime and encouraging employees to spend their weekends with family or pursuing professional education opportunities.

Human Resource Management of Samsung Electronics In the recent time human resource management (HRM) has assumed new prominence because of continuing concerns about global competition, the internationalization of technology and the productivity of labor. It is argued that these market imperatives require manager to change the way in which they manage the employment relationship in order to allow for the most effective utilization of human resources (HR). Managers and academics argue that the traditional approaches to managing workers are inappropriate ‚can no longer deliver the goods. Harnessing workers full potential and producing the attitudes and behavior considered necessary for a competitive advantage require three aspects of managerial control to change: organizational design, culture, and HR policies and practice. Within Samsung Human Resource management is a large focus on integrity management according to oxford dictionary hence managing globally diverse team can be one way of managing integrity. Samsung puts in place a variety of programs to recruit and retain global talent.

Samsung Responses to recruiting and retaining global diversity:

1. Recruiting and retaining the global talent: Samsung now try to employ talented and individuals worldwide. Each foreign employee is given a mentor and has regular meeting with executives and access to global help desk is provided. 2. Fair evaluation and compensation: This is basically based on performance “Samsung evaluates the performance of an

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individual. They apply the same rate to the position grades irrespective to the gender, nationality, age, race and color. Moreover compensation is paid on the bases of salary and performance related pay. 3. Respecting human rights and diversity: Samsung have the code of conduct that allows for equal opportunities and nondiscrimination. However, many companies provide this by having a diversity section on application forms for fair employment. For example, Unilever also Samsung Prohibits of Forced and/or Child Labor.

Advantages to Samsung of having a diverse workforce: 1. New Business Idea: Adler, 1997 believed diversity enhances creativity and innovation. Creates a wider range of ideas and abilities, offering greater scope for innovation and competitive performance. Example: Reported in BBC Business News on the 14th November 2014 Samsung have now kick started the Virtual Reality market. This also could be one reason why Samsung have reported higher profits than Apple in the smartphone industry.

2. Representative workforce: Organizations with diverse workforce can better understand the customer needs and is responsive to changes in needs. However, Samsung needs to use the workforce effectively to gain this advantage. 3. Improved corporate image: Corporate social responsibility is a type of international private business self-regulation. The benefit Samsung as it puts them in as positive light making them to perceive as ethical, open and embracing on the other hand it can build in other ways that are adopting environmental friendly work activities like BP 4. Attracting ethical investors: Samsung is attracting ethical investors due to its diversity. For example For example, found on Samsung's Ventures web page, the investors 'The Social + Capital Partnership'

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entrust in Samsung who utilize venture capital to create value and change on a global scale (Samsung ventures web page)

5. Productive and flexible workforce: Diverse teams brings greater flexibility and it’s important for Samsung rapidly changing technological market. There are however other ways to improve productivity and flexibility of Samsung employees such as having food working conditions like Google.

There are numbers of drawbacks that Samsung might face of having diverse workforce: 1. Cost: Selecting diverse group of talent is very costly through recruitment, selection and training especially. However Samsung is one of the leading electronics company so this type of cost might not effect as comparative to small newly entered company like Xiaomi. 2. Mismanaged diversity: Mismanaged diversity can have long reaching effects on employee satisfaction and productivity. Hence if Samsung wants invest into diverse human capital they would need to manage their global workforce effectively for it to be successful. Samsung do show this through different global diversity recruiting and retention responses mentioned earlier.

3. Global and workforce conflicts: Samsung operated globally so adoption to cultural and governmental view is important to minimize the problems.

For example gender equality might cause problem in the

workplace. Furthermore existing employees may also feel threatened by international talent e.g. South Korean may feel that jobs are being taken away from them to overcome this concern Samsung needs to show them everyone gets an equal opportunities.

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Samsung’s Decision Making Decision Making is the process of Identifying problems and opportunities and resolving them. Decision Making involves effort both before and after the actual choice. Samsung makes decisions via different means and according to the situation considering many factors such as: * Decision Requirement * Needs of Market * Wants of Customers * Market Demand A company, in this case Samsung go through several steps before selling products or services.

Need Recognition: Need recognition is the first step which is very important because it leads Samsung to sell products or services. Smart phone has become a necessity of modern society. People communicate and obtain information through apps by using smart phone. Unlike desktop or laptop, smartphone has the advantage of transportability. Most places offer free Wi-Fi so that consumers can access to internet with your smartphone. It means you can obtain information that you want to know wherever and whenever you want with your smartphone.

Information Gathering and Searching: The second step of decision making is information gathering and searching. When a company recognizes their consumer need for a particular products or services they try to gather as much information as they can. Companies can acquire information through several sources which are personal, commercial, public and experiential source. They can also obtain information through advertisements, sales people, newspaper, radio, magazine and television. For these reasons, Samsung Electronics Inc. spends their one of the majority budget in advertisement on television, radio, and newspaper, magazine and so on. Good warranty is one of Samsung Electronics' key of success. Once consumer gets a good warranty service, they will think the company in positive way. And it reminds them the product of company when they decide to buy a new product. 10

Evaluation of Alternatives: After gathering the information, Evaluation of Alternatives is very important. There are several major smartphone companies for satisfying needs of consumers. Samsung Electronics Corporation invests a lot of money in designing department and advertisement to attract young people in order to break through give the company an advantage over those strong competitors.

One of the biggest Decision of Samsung Electronics was to write off Galaxy Note 7 out of Market. Samsung has killed the Galaxy Note 7. It is writing off $2.3 billion in the third quarter due to the cancellation of the highly touted phone. From my perspective, it was a smart, wise and cost-effective decision. Samsung sacrificed the Note 7 to save the company. The decision was not about the Note 7 itself, but about the brand and the company’s relationship with its customers. A company’s brand is the promise it makes to the customer. The depth and resilience of the brand is how it keeps that promise. We know that every brand makes mistakes. It is how a company chooses to deal with those mistakes that can maintain or demolish its credibility. Samsung is a huge multinational company with products, programs, and services across the globe. It rolled out the Galaxy Note 7 with much hype and fanfare, only to quickly find out it had a problem. Some of the phones caught fire or exploded. Early thought on it was that it is a simple issue of battery vendors which delivered an inferior product. But the replacement phones with the new battery had the same problem. It was then made clear that Samsung didn’t know the root cause of the problem.

With consumers all engaged, Samsung had a choice: Continue to try to find out what’s wrong, or decide that the cost of trying to save the Note 7. Samsung finally chose to recall every Note 7 from all over the globe. Clearly, Samsung had a lot of investment in this product. But Looking down the road, Samsung hopes consumers will have gotten over the Note 7 debacle, and it will be a footnote in the overall history of the company. Samsung needed to sacrifice the Note 7 to save the overall brand and to maintain the brand image. Moving forward, Samsung will undoubtedly focus on quality control throughout its supply chain

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and at every step of the product development cycle. These steps will make up key message points in its branding and public statements in the future. It will stay away from the safety issue and focus on the process improvement and quality control issue. There’s no question Samsung will lose some smartphone customers. Will it lose customers of its other products, like televisions or computers? Perhaps in the short term, but this move is all about the long term. Samsung made this non-programmed decision and reacted according to the market situation. Samsung is going to continue to innovate and make sure that people aren’t afraid of Samsung phones or any other Samsung product and see this for what it is: A one-product failure in a large and diverse company.

Business Ethics and Social Responsibility of Samsung Business ethics of Samsung: Business ethics take into consideration responsibilities not just inside the workplace, but also within the environmental, cultural, and social structures of communities. They also deal with liability issues intricate in s...