case analysis samsung

13
Samsung Case Study Maintaining the “Single Samsung” Spirit: New Challenges in a Changing Environment Caryn Ng Kar Yan B1102572 Keah Mei Sian B1102580 Nur Fathiha Bte Johan Ariffin B1100381 Mohd Roshan bin Mohd Yusop B0101223 Sarkunarajah S B1001971 Wan Arjunaidi Bin Awang @ Wan Abdul Halim E0300073 Abstract Samsung portrayed a very interesting and impressive success story in every aspec t of development. Although they were hit hard by financial crisis in 2009, Samsu ng survived the ordeal with their impressive financial performance. The astonish ing part of their achievement is mostly guided by internal management capability , positive aligned culture and belief system that empowering human capital is th e foundation in building and maintaining a great organization. Their strong belief system in emphasizing and investing on employees well being pays off when they become the leading company beating some of the top companies such as Sony, Apple and HTC. The process and development of human capital was ne ver an easy matter for Samsung, in fact the culture has been practiced and impro vised regularly ever since 1950 to fit to the demand and maturity of the current society and technology. Nevertheless at the end, Samsung indeed make a marked i n the world with sustaining a Single Samsung culture. 1. Perform a PEST on Samsung and identify the change drivers POLITICAL | ECONOMIC | * Work hand in hand with the government; consist the same agendas and values.Cha nge driver- Globalization Promotion Committee consisted of a set of committees o n policy planning, administrative reform, educational reform, science and techno logy influences Samsung as well. | * Main contributor of economy status i n south KoreaChange driver- top down reform of the Korean economy to meet the ra pidly changing conditions of the world economy. | SOCIAL | TECHNOLOGICAL | * Value human capital and their culture.Change driver- provides equality in diff erent generations, gender, levels and departments. | * Making technology as

Upload: arup-bose

Post on 13-Apr-2015

398 views

Category:

Documents


8 download

DESCRIPTION

Samsung Cae Analysis

TRANSCRIPT

Page 1: Case Analysis Samsung

Samsung Case Study

Maintaining the “Single Samsung” Spirit: New Challenges in a Changing Environment

Caryn Ng Kar Yan

B1102572

Keah Mei Sian

B1102580

Nur Fathiha Bte Johan Ariffin

B1100381

Mohd Roshan bin Mohd Yusop

B0101223

Sarkunarajah S

B1001971

Wan Arjunaidi Bin Awang @ Wan Abdul Halim

E0300073

Abstract

Samsung portrayed a very interesting and impressive success story in every aspect of development. Although they were hit hard by financial crisis in 2009, Samsung survived the ordeal with their impressive financial performance. The astonishing part of their achievement is mostly guided by internal management capability, positive aligned culture and belief system that empowering human capital is the foundation in building and maintaining a great organization.

Their strong belief system in emphasizing and investing on employees well being pays off when they become the leading company beating some of the top companies such as Sony, Apple and HTC. The process and development of human capital was never an easy matter for Samsung, in fact the culture has been practiced and improvised regularly ever since 1950 to fit to the demand and maturity of the current society and technology. Nevertheless at the end, Samsung indeed make a marked in the world with sustaining a Single Samsung culture.

1. Perform a PEST on Samsung and identify the change drivers

POLITICAL | ECONOMIC |

* Work hand in hand with the government; consist the same agendas and values.Change driver- Globalization Promotion Committee consisted of a set of committees on policy planning, administrative reform, educational reform, science and technology influences Samsung as well. | * Main contributor of economy status in south KoreaChange driver- top down reform of the Korean economy to meet the rapidly changing conditions of the world economy. |

SOCIAL | TECHNOLOGICAL |

* Value human capital and their culture.Change driver- provides equality in different generations, gender, levels and departments. | * Making technology as

Page 2: Case Analysis Samsung

an important aspect in company’s developmentChange driver- quick to adapt to new technology |

2. Perform a capability by assessment for Samsung via the IFE, EFE

INTERNAL FACTOR EVALUATION FOR SAMSUNG |

No | Strengths | Weight | Rating | Weighted

Score |

1 | Samsung is considered to be a key ingredient to South Korea�s impressive economic recovery. Provides the motivation to innovate and excel. | 0.15| 3 | 0.45 |

2 | Operates in one of the world�s most technologically and digitally connected world. Ability to test technology in its home ground | 0.05 | 2| 0.1 |

3 | Samsung is open to new ideas, and focused on becoming a creative culture | 0.05 | 4 | 0.2 |

4 | Employees with strong problem solving skills | 0.1 | 4 | 0.4|

5 | Strong investment in employees, thru effective human resource development | 0.15 | 3 | 0.45 |

No | Weaknesses | Weight | Rating | Weighted

Score |

1 | Digital natives (younger generation) do what they want to do, and not what the company wants them to do | 0.1 | 3 | 0.3 |

2 | Samsung replaced group based reward, with reward system based on individual performance. Not aligned with South Korean culture of being collectivist| 0.1 | 3 | 0.3 |

3 | Samsung is being seen as conservative by some younger employees| 0.15 | 1 | 0.15 |

4 | Different values system among old and young. Difficulty in socializing its new group of employees | 0.1 | 3 | 0.3 |

5 | Integrating foreign employees into the workforce | 0.05 | 3| 0.15 |

| | 1 | | |

2.8 |

The weighted score is above average, and shows were contributed by Samsung’s strong focus on developing its workforce thru multiple initiative. Though challenges will be there in integrating new employees and employees from diverse culture, Samsung is taking the right initiatives to address these gaps. In summary, Samsung is well positioned to address its internal weakness, and continue to be a strong organization.

EXTERNAL FACTOR EVALUATION FOR SAMSUNG |

Page 3: Case Analysis Samsung

No | Opportunities | Weight | Rating | Weighted

Score |

1 | One of the strongest economy in the world. Ranked 15th globally in 2010 | 0.15 | 2 | 0.3 |

2 | Strong South Korean government initiative in tapping into its human resource capability | 0.2 | 3 | 0.6 |

3 | Improved relationship between South Korea and China in recent years, helps Samsung to break into the Chinese market. | 0.1 | 2 | 0.2 |

4 | South Korean culture of hard work and speed. | 0.2 | 4 | 0.8|

No | Threats | Weight | Rating | Weighted

Score |

1 | South Korean culture of high power distance. All relationships are unequal. | 0.05 | 3 | 0.15 |

2 | Slim profit margin, in a globally competitive environment. | 0.1| 3 | 0.3 |

3 | South Koreans are collectivist. Focuses on collective sharing of resources. | 0.05 | 2 | 0.1 |

4 | South Koreans’ avoid conflicts, and masked their feeling. Results in lack of open communication. | 0.15 | 2 | 0.3 |

| | 1 | | |

2.75 |

Weighted score from External factor Evaluation show slightly above average. While the relationship between East Asia countries, continue to improve and coupled by the strong economy, the South Korean culture could be a component that will hold Samsung back. The high power distance, coupled with the lack of openness, could prevent issues from being openly discussed. The market that Samsung is involved in is based on slim profit, dues to global competition, therefore openness in discussing conflicts are critical to overcome those challenges. The collectivist culture could be going against Samsung�s internal initiative to promote individual recognition which is a norm in Western cultures. In summary, Samsung will have to place more effort in bridging the corporate culture that it is trying to develop with the national culture.

3. Discuss possible solutions to foster and maintain an aligned culture

Having an aligned culture is crucial in an organization. Taking into consideration of diverse culture plays an important role in shaping individual personality, physically and psychologically: employee morale, commitment, productivity, physical health, and emotional well being. To have a positive aligned culture we belief that it must be initiated from top down. For those who are currently in high management level should commit into organization culture before requesting the low management employees to make the commitment (Cameron & Quinn, 2011).

Samsung ability to create a diverse and creative culture is astonishing;

Page 4: Case Analysis Samsung

1. Samsung philosophy – built a culture where employees felt pride and has sense of accomplishment in contributing to the well being of society.

2. Samsung innovation- developed a culture of “sharing is caring” concept. Where knowledge, ideas and technology is shared and transferred through aggressive recruiting and networking.

3. Samsung cooperation among various functions – Most apparent in its strategic decision to couple technology and management by enforcing positive interactions between technology and management. The result was fast, dynamic, flexible and performance oriented culture, created as a benchmark for companies like Toyota, GE and Nokia.

In April 2010, the vice chairman and CEO of Samsung, Gee-Sung Choi has set up a Compliance Team to mitigating legal risks as Samsung has gained further prominence as an important player in global market. It was part of the efforts in order to keep up Samsung’ ethics and integrity (2011 Sustainability Report). Additionally in the same year, the top management has actually come up with a “Diversity Management Framework” as part of a strategic approach to diversity. Samsung has truly showed their appreciation of foreign manpower, women, the disabled and minority groups and they hope to create a working environment whereby everyone will be equally treated, without facing any discrimination. Hence they have also come out with a diversity vision: ‘Create the future by developing a diverse and inclusive culture that attracts and grows the world’s top talent’. It is aiming in foster an organizational culture where the diverse values and beliefs are shared to come up with creative ideas and ultimately sharpen the competitive edge of the entire organization (2011 Sustainability Report).

In addition, Samsung looked upon four other characteristics that cultivate a vibrant and positive aligned culture within the organization. Leadership, as a leader in 21st century, they should own characteristics such as openness, honesty, and forthright interaction with the organization employees (Ireland & Hitt, 2005). Management as the leader of the organization should learn to appreciate and understand the diverse belief, value, behavior and business practices especially when expecting to enroll the best talent from diverse culture, backgrounds and countries to work under same organization.

Female Employees, has gained much acceptance and appreciation in the corporate setting. In order to shape a pleasant working environment and support career development for female employees, Samsung has executed a trial run of a work-at-home/telecommuting system to prevent career interruption such as child care responsibilities. They have a standardized process and also career coaching specifically designed for female employees to get back to their work from extended child care leave. They have also plan on increasing the percentage of female from 20 to 30% when hiring fresh graduates. Another plan was by refining the process of identify potential women leaders in order to plummet the percentage of female executives to more than 10% within the next 10 years (2011 Sustainability Report).

Global Diversity, by looking into another effort of expanding global workforce, Samsung has launched a reverse deployment scheme under which employees of overseas subsidiary that dispatched to Korea. The aim of this scheme was to present a growth vision for global workers and encourage the information exchanges of organization between head office and global business sites. Approximately 1,000 foreigners from more than 50 countries work at business sites in Korea. In addition, a global help desk and various program has been offered to help those global workers to adapting themselves to work (2011 Sustainability Report).

Global Education, In year 2010, Samsung have also expanded the global SMA (Samsung Manager Academy) and GEC (Global Executive Course) programs to sharpen the sk

Page 5: Case Analysis Samsung

ill and capabilities of global workers. Samsung has also launched global orientation program to foreign workers and new hires, regarding the philosophy, values and strategy of the organization. There was also another regional specialist training which specifically designed in order to promote those global professionals who will making a step for Samsung to achieve superiority in global market (2011 Sustainability Report).

4. How does national and organizational cultures lay the foundation for HRD philosophy that guides HR strategies, systems and processes

* generational identities in South Korea

To begin Samsung and South Korea always operates hand in hand. From its value, vision and mission to idea, process and implementation, all are governed by one spirit. Samsung has proved that they possessed solid identity, culture and understanding which can withstand all obstacles and challenges beat internal or external factors.

Samsung lays a strong foundation in values. It is the pride of the nation where in 2011, it was recognized as one of the most technologically advanced and digitally connected countries in the world. Samsung had been a major catalyst for South Korea’s remarkable economic growth (Kim & Briscoe, 1997). It was generally believed that if South Korea had another Samsung, it would be the world’s fifth largest economy (Samsung Annual Report, 2006). All success will not be able to materialize if Samsung Human Resource Development (HRD) does not create a system or platform to value and appreciate its people.

The three values that contributed the these success includes;

i. Economic contribution to the nation – Whatever they do, they always emphasize on the needs and importance of its nation and Korean society

ii. Top priority to the people- The founding chairman belief Samsung and the people (employees) is one where humanity was respected and employees are allowed to exert their full potential benefiting not only the growth of the company but also the development of its employees.

iii. The pursuit of rationality- an effort by the company to develop a strong mindset, capable, efficient and competent employees in ensuring sustainable growth in the company.

Through their human resource development (HRD) philosophy which focused upon respecting people in all level, Samsung belief that “a company is its people”. There are four common external variables which at the end contribute to HR strategies, systems and processes; First government involvement, in South Korea, it is important to uphold structural and procedural management/implementation, which is also practiced in all aspects such as political, economical, and social field. Different involved parties have been contributing efforts in adapting the top-down policies culture which has been practicing in this state for centuries, in order to achieve democracy (Bedeski, R. E., 1994). For the past sixty years, South Korea has been transformed from one of the poorest countries to one of the most successful one. With the aid of Free Market Economy, it has actually leaded this state out of poverty (Sorman, G., 2008).

Second notion is the gender policies, after 1980s, Seoul government has been making effort in reaching equality between genders by raising the need of women in all sectors of society such as workplace, family, education and welfare, by emphasizing on women’s policies. For example, Seoul government has enactment the law and also implemented the policies in order to eliminate the gender inequality and discrimination. During the fourth United Nations (UN) World Conference, Seoul h

Page 6: Case Analysis Samsung

as been showing efforts by increasing the social involvement of women by developing women’s capabilities, increasing women’s political representation and improving welfare and civil rights of women. In year 2000, the Ministry of Gender Equality and Family has implemented a gender mainstream strategy, such as Gender Impact Evaluation and Gender-Sensitive Budget system. By year 2003, it was compulsory for all the government offices and municipal governments to select one to two Gender Impact Evaluation assignments for Gender-Based Analysis every year (Gender Mainstreaming in Local Authorities Best Practices, 2008).

Third is the industrial policies, in the beginning of 1960s, South Korea government has also regulate and coordinate economic affairs in achieving balance between growth and stability of the nation’s economy, to ensure proper distribution of income, to prevent domination of market and abuse of economic power, and to democratize economy. In short, South Korea government has been giving constitutional authority for income redistribution, income, workplace guideline, and limitation of business activity for the sake of majority South Korea’s citizens (Holcombe, R. G., 2011).

Lastly the national culture, Peter Anderson (1991) stated that culture is powerful and invisible shapers of one’s behavior including one�s interpersonal communication behavior pattern and style. And culture and communication does not flow in one way but they are interrelated to each other. South Korean’s communication are tend to more focusing on nonverbal communication, which they believed that by maintaining the seven human passions (joy, anger, sorrow, pleasure, love, hatred, greed) will actually stop them from gaining knowledge and truth. Hence, they tend to be restrained of expressing their emotion by using gesture and facial expressions (as cited by Kim, 2003). Koreans practiced compromising, cooperative and integrative style and they tend to avoid confronting the conflicts they faced, which goes well with values of Korean that striving for harmony, honor, humility and respect (Lather, Jain & Shukla, 2010). According to a research done by Hofstede (1980), South Korea was one of the countries that have been categorized as collectivism society, which they tend to have higher involvement upon diversity perceptions as they are more emphasizing on team work and inclusion. Collectivists tend to develop better relationship within co-workers that working under same department (as cited by Guidroz, Kotrba & Denison, 2005-2009).

5. How does globalization shape individual and organizational values in South Korea as in transforming societies?

In this current modern economic welfare, globalization is no longer defined and explained as a theoretical concept, but a stark reality. Firms that would like to sustain in this competitive twenty first century must be able to confront all forces and challenges that pervades every aspect of business. The improvement of communication, through the introduction and constant development, high speed and accessibility of the internet, has allowed international exchange to be done with a click of a button. Large corporations as well as smaller companies have decided to take a step forward and spread their operations from the domestic to the international market, in order to find new customers, opportunities and increase their revenue. These companies are the ones facing increased pressure from cultural differences, waiting on the market, where a new service, product or marketing campaign will be introduced. In order to meet these global challenges, such companies must be ready to standardize their organisation, apply the rules of globalization, respond to local differences and run an in-depth marketing analysis and research of the target foreign market. Omitting any of these goals can result in misunderstanding, miscommunication or other consequences. Therefore, all firms, regardless of their size, have to craft strategies in the broader context of world markets to anticipate, respond and adapt to the changing configuration of these markets.

5.1The impact of Globalization on Organization in South Korea

Page 7: Case Analysis Samsung

In the vast impact from the globalization, one of the key importance to success for a Korean firm is the need to remain responsive to local markets, while at the same time achieving global efficiency through integrating and coordinating operations across world markets and allowing for the transfer of learning from operations in one part of the world to another. This initiative is proven to be effective through the implementation of the distinctive supply chain management (SCM) by Samsung, Hyundai and Kia in their worldwide operation especially in the rising operational overhead and economic uncertainties.

As the firm expands internationally, it will need to move away from country-centred strategies and improve integration and coordination across national markets, leveraging its competencies and skills to develop a leadership position. Moreover, identifying the global competitive forces successfully and providing an apparent direction to lead the firm in an increasingly rapid changing market environment is a momentous challenge faced by the managers nowadays. Therefore, today’s manager must have ample of both human and technical skills to value the diversities in the firm that have been directly resulted from the globalization.

In the context of culture and the need to adapt to the changes from globalization, Korean firms have consistently design their policies and there is an increasingly strategic role for industrial relations (IR) within the enterprise, as much of what has to be done involves significant changes to traditional practices in this and the related area of human resource management (HRM). As firm like Samsung, Hyundai and Kia has well established in the international platform, it is undeniable that these firms has recruited numbers of expatriate to work in their firm in the home country. This can be proven by the growing numbers of western (Germans) skill workers that served Hyundai and Kia in South Korea due to the booming of automobile industry at South America and European market (Korea.net, 2009).

Due to this scenario, the Human Resource Department of these firms has crafted various policies to accommodate all of the employees who came from the different background. Moreover, the multi-culture seems to become the competitive edge for Samsung as the single Samsung culture has endlessly encouraged their employees to generate ideas for the firm to create products that in high demand from a different geographical region. Moreover, the increased of labour migration resulted from globalization gives advantages to both workers and South Korea firms. This is because the approach helps South Korean firms with labour shortages fill important posts and to ensure the smooth of their business operation. In addition, the “knowledge sharing” among the employees in those firms can really benefit them in the long-run.

In the context of technology change, globalization has also assists South Korean firms in deployment of technology transfer process. This is critical for the firms to bring in the latest technologies will then allow the firms to improve their competitiveness in the high-quality industries ranging from electronic to motor vehicles. This factor seems to be the competitive advantages for south Korean where they managed to hold the number three position both today and in five years, solidifying Asia’s dominance in the manufacturing industry’s new world order (Deloitte, 2010). Key manufacturing industries have now garnered recognition in the global arena, and Korea has emerged as the world’s largest shipbuilding nation and ranks first in terms of semiconductors and displays (Korea.net, 2009). Moreover, Korean automobile manufacturers are now a significant force around the world as are its appliance makers.

In addition to above, the impact from globalization in South Korea has also assist firms like Samsung, Hyundai and Kia to experience economies of scale in their home country. This can be seen by the move of these firms that outsourced some of the parts that available in their products subject to the high labor rate, re

Page 8: Case Analysis Samsung

sources, expertise, geographical location and etc. The reason behind the approach is because; these firms realized that specialization in certain goods is apparently better and efficient instead of manufacturing all by themselves. As example, significant portion of Hyundai’s production process is outsourced to parts makers, and many outsourced parts are sub-assembled into modules before going to the final assembly line. This is because globalization enables goods to be produced in different parts of the world and greater specialization enables firms to lower average costs and lower prices for consumers.

5.2 The impact of Globalization on Individual in South Korea

Ever since the impact from globalization, there have been many issues concerning communication, cultural differences and marketing where globalization modifies the nature of the local and international conflicts, and in particular multiplies the tensions with religious, ethnic and linguistic characters. Likewise, Korea’s globalization can be understood in a similar way where the Kim Young Sam government (under the name of segyehwa) attempted a top-down reform of the Korean political economy to meet the rapidly changing conditions of the world economy. In the Sydney Declaration of 1994, Kim had officially announced that his government’s drive for globalization and set up the Globalization Promotion Committee (segyehwa ch’ujin wiwônhoe). The Globalization Promotion Committee was headed by the prime minister and consisted of a set of committees on policy planning, administrative reform, educational reform, and science and technology (Gills and Gills, 2000). Korea’s globalization drive was initiated by the state, and segyehwa was kept as a name for Korean way of globalization. While eschewing the use of segyehwa as a name for Korean globalization, Kim Dae Jung’s policy continued to facilitate economic liberalization. Furthermore, recognizing the strategic value of overseas Koreans, especially Korean Americans, the DJ Kim government promulgated a special law regarding overseas ethnic Koreans in 2000.

It is necessary to note, the oppositions between West and Eastern world, based on diverse traumatize, such the colonization, and which engender contrasted reactions going of the refusal of the cultural imperialism to the attraction for the western model. The impact of globalization is noticeable in South Korea as well especially in the context of popular culture. With the advancement of technologies, whether its music, films or TV shows, the Americanization process is slowly taking over every part of the electronic pop culture in South Korea.

Due to this unfavorable impact from globalization, the government of Korea has consistently promotes its very own culture among the Koreans. This means that globalization has also prompted efforts to revitalize Korean culture and identity. Not only was globalization (segyehwa) kept as the word to describe the Korean way of globalization, but its policy also stressed the promotion of Korean culture and values. For instance, globalization underpinned by “Koreanization” is listed as one of the five “principal meanings” of segyehwa. As President Kim explains: “Koreans cannot become global citizens without a good understanding of their own culture and tradition, Koreans should march out into the world on the strength of their unique culture and traditional values”. Only when the national identity is maintained and intrinsic national spirit upheld will Koreans be able to successfully globalize” (Song, 1994). As part of its pursuit of Koreanized globalization, the YS Kim government sought to promote Korean studies (han’gukhak), both within and outside Korea.

During the last decade, Korea has seen a proliferation of festivals and events in various cities designed to enhance images and identities of each respective locality. The Andong Folk Festival, the Biennale of Kwangju, and Asian Film Festivals in Pusan are good examples of the current active promotion of regional identities (Sallie Yea, 2003). Moreover, some local music television stations, including MTV Korea have received orders to play only 10% of foreign video clips, thus leaving 90% for local artists (Stephan, 2010).

Page 9: Case Analysis Samsung

In the context of education, globalization stem from the economic sphere has much influenced the educational systems of every country because countries have utilized education as a means of prosperity or survival that meets the competitive demands of an increasingly globalizing society. Due to this demanding factor, Korea began to open its higher educational programs to the world after introducing the educational open-market policy in the mid-1990s. The open-market policy was implemented under World Trade Organization (WTO) influence and represented an impact of economic globalization on educational policymaking (Kim, 1997). Because of this policy, Korea’s higher educational institutes were able to directly adopt the educational programs of dominant countries, particularly the United States. Thus, in Korea, the impact of globalization on education is increasing, and globalization is causing the homogenization of education.

To see the effects of the homogenization of higher education, one need only look to Korea’s attempt to introduce a medical graduate school system, emulating that of the United States, as a part of the educational reforms in the mid-1990s (the Korean Ministry of Education, 1998a). In addition to that, English education in Korea is taught beginning in the third grade of elementary school since 1997. In the past, English education was not begun until middle school. The prominence of the English language in the emerging global economy has had a profound influence on Korean society. The widespread perception that English is the language of power has promoted the Americanization of Korean youth, who believe that English is a powerful means by which economic and educational success can be achieved (Kim, 2002). English is gaining more strength as a hegemonic language in Korea society in spite of the strong nationalistic attitudes and monolingualism to the Korean language (Park, 2004)

While in the aspect of employment, the study by United Nations (2009) has noted that female employment in the developing world has generally increased more rapidly than male employment and that export-oriented industries are more feminized under the impact of globalization. For examples of this trend, it cites Singapore, Taiwan and South Korea; in South Korea specifically, it notes that .the composition of the workforce in the electronics industry has changed in favor of male workers, as production in this sector shifted to more sophisticated communication and computer products. Moreover, since 1970, South Korea female workers had significantly less wages paid in their manufacturing sectors compared to men, but these gender wage gaps are closing over time subjected to the impact from industrialization era. This can be illustrated by the increasing numbers of female employees in firms like Samsung and Hyundai Corporation throughout its operation both in local and international context. This is to realized that globalization has impact South Korea workforce by reducing the gap of power distant and recognizing the concept of equality which is persistently emphasized by the western world.

6. How should Samsung address the current dilemma? Report to the Chairman

* Uphold the single Samsung spirit and values?

* Propose a bridging strategy for value differences in diversity management

* Populate “Managing the Change Journey Framework” with an outline solution for change.

There will always be a debate when it comes to differentiate the importance of multiple generations. For an example which generation deserves the upmost respect, recognition and appreciation? Is there a closure or can we close the gap between multiple generations? While searching for a common ground or similarities, most organizations still encounter the dilemma of the differences which then lead to difficulties, obstacles and challenges in managing human resource or manpower

Page 10: Case Analysis Samsung

. Based on the Samsung�s case study (Khilji et al., 2011) one of the main dilemma they faced is the generation differences in terms of mentality, commitment level towards work, and priority.

The older generations tend to avoid open conflict and act rationally, have a high commitment in their work, obey towards company’s rules, and has a culture that is more family-like. But on the other hand, the younger generations prefer Samsung to be more open in solving conflicts and more communicative, want a work-life balance, want to do what they are passionate it, and prefer individual performance-based rewards.

As we can see that both generations have their own pros and cons. For example, avoiding open conflict can better if the conflict is consider just a minor issue. In other hand, being more open in discussing and finding solutions can be better if it is consider a major issue. It is best to have a top-down and bottom-up communication because it can produce vital feedbacks and ideas. Secondly, to have employees that doesn�t mind to work long hours is better if the nature of the business is the longer hours of working, the higher productivity (example, hand-made manufacturer). But if the nature of the job is not as such, it is better to have employees who are passionate and efficient in completing their tasks (example, designer).

Lastly, being more collectivistic is better in creating a warmer culture in a company because employees feel the sense of belonging (family-like) and tend to help each other out in completing a project. However it is also better to have individualistic employees because they are usually more independent and reliable in completing a project or task. It is not the authors� intention to compare which generation is better than the other, but to see how Samsung can change these situations from a major conflict to a major advantage and making full use of it. This issue is consider as a major issue because it is about Samsung�s people and Samsung lived the nation�s philosophy of an intense development of HR (Khilji et al., 2011). Samsung put their people (Employees) as a top priority like how Byung-Chull Lee said “What sets a company apart from others is its people who committed to work for the company” (Khilji et al., 2011).

Single Samsung Spirit (Samsung�s values consisted of these 5 factors)

1) People – Samsung valued its people and strove to provide them with opportunities to perform to their fullest potential.

2) Excellence – Samsung should give its best efforts with endless passion and a spirit of overcoming challenges to become the world�s best company in every possible way.

3) Change – Samsung�s commitment to taking the initiative to execute change and innovation with risk awareness.

4) Integrity – Samsung acted in an ethical way, and ensured fairness with honor and grace.

5) Co-prosperity – Samsung was a good corporate citizen who took responsibility for the prosperity of its community and nation and the larger global society.

The authors suggest that Samsung should do more testing and assessment due to this generation conflict. Assuming gen X and gen Y are very different in terms of their mentality, commitment level towards work, and priority, but the most important question in business is; do generation differences affect Samsung�s businesses financially? If it affects Samsung businesses performance, is it a good or a bad impact? It’s alright to be different because in reality we can see that even employees in the same generation are very different in terms of their mentality,

Page 11: Case Analysis Samsung

commitment level towards work, and priority; and they are can work together just fine. This is simply because they all have the same goal to achieve in a particular project or task. Several ways to test and assess the generational differences impact towards Samsung company such as:-

1) Having a mixture of these two generations in a same team working on a project.

2) Exchanging job scope temporarily between senior and junior colleague.

3) Finding ways to fully use these two generations� strength to compliment each other.

Managing the Change Journey; Program Management the unique alignment between Samsung’s management and employees contributed to the company’s global success. Thanks to the strong investment in the development of its people. Samsung had 13 educational and training facilities globally which were dedicated to continuously upgrading its talent. Overall SHRDC has conducted approximately 250 training courses and workshops per annum. Enablement, New Employee Orientation (NEO) was considered to be the most critical enabler because it helped new employees adjust to the Samsung culture. Although NEO is the oldest programs at Samsung however it is still a requirement for all Samsung’s new employees. With four weeks of intensive in-house training all new employees were evaluated on how they solved problems and implemented new solutions.

Executive Leadership, NEO helps new employees think and behave as Samsung people, it also solidified Samsung’s culture of cooperation between senior colleagues and new employees. To achieve this SHRDC brought in third- year employees as mentors apprentices where their role was to connect with 10 to 15 new employees on a personal and professional basis. These top company talent assist in nurturing new employees Samsung’s philosophy, culture, values and helped foster the Samsung spirit. Communication and Ownership, once NEO was completed, new employees who based in Samsung affiliate company will be given a one year “New employees training program” in partnering with SHRDC. The training focused on improving job related skills and knowledge. On the job training new employees will work closely with the senior employees to solve various problems that were presented to them. At the end of a year program, new employees will be participating a Samsung Summer Festival where it created a lasting bond among new employees and provides a networking opportunity amongst new employees and senior colleagues.

Samsung management believed NEO helped in three multiple purposes;

1. Aligned employees across Samsung affiliates to Samsung’s strategic direction and thus promote a Single Samsung culture.

2. Fostered Samsung’s values among new employees and sustained the foundation of its unique culture.

3. Achieved business results through cooperation.

REFERENCES:

A representative of the ruling party, Kim’s address in the National Assembly. (1990, February 27). The Chosunilbo, p. A1.

A representative of the ruling party, Kim’s address in the National Assembly. (1991, January 30). The Chosunilbo, p. A2.

Delloite. (2011). 2010 global manufacturing competitiveness index . Retrieved from http://www.deloitte.com/assets/Dcom-Global/Local Assets/Documents/Manufacturi

Page 12: Case Analysis Samsung

ng/dtt_2010 Global Manufacturing Competitiveness Index_06_28_10.pdf

“Financial crisis to opportunity,” Retrieved from Korea.net, June 2010.

Kim, J. K. (2002). Globalization and English language education in Korea: Socialization and identity construction of Korean youth (Doctoral dissertation, New Mexico State University). Abstract retrieved January 21, 2012, from http://wwwlib.umi.com/dissertationsfullcit/3053643

Kim, Anna (1997). State vs. market in educational open-market policy-making of Korea (Doctoral dissertation, University of California, Los Angeles). Abstract retrieved January 21, 2012, from http://newfirstsearch.oclc.org

Gills, Barry and Dongsook Gills. 2000. “Globalization and Strategic Choice in South Korea: Economic Reform and Labor,” pp. 29-53 in Samuel Kim, ed., Korea’s Globalization. Cambridge: Cambridge University Press.

Kang, C.S. Eliot. 2000. “Segyehwa Reform of the South Korean Developmental State,” pp. 76-101 in Samuel Kim, ed., Korea’s Globalization. Cambridge: Cambridge University Press.

Khilji, S. E., Oh, C. H., & Manikoth, N. N. (2011). Maintaining The “Single Samsung” Spirit: new Challenges in a changing environment. London: Richard Ivey School of Business.

Kim, Samuel. 2000. Korea’s Globalization. Cambridge: Cambridge University Press.

Kyounglim Yun, Heejin Lee, and So-Hye Kim. The Growth of Broadband Internet

Connections in South Korea: Contributing Factors. September 2002.

Park, Joseph S. Y. (2004). Globalization, language, and social order: Ideologies of English in South Korea (Doctoral dissertation, University of California Santa Barbara). Retrieved August 12, 2012, from http://wwwlib.umi.com/dissertations/search

Samsung Annual Report 2006. Retrieved Appril 11, 2010, from www.samsung.com/us/aboutsamsung/corporateprofile/download/SamsungProfile07_Full.pdfl

Shin, Gi-Wook and Ho-Ki Kim, 2002. “Ethnic Identity and National Unification: Korea,”

unpublished manuscript.

S.Kim and D.R. Briscoe (1997). Globalization and a new human resource policy in

Korea. Employee Relation. 19.4, 298- 308

Stephan, H. (2002). Reform in south korea: Globalization and the post-crisis social contract. National University of Singapore: Singapore.

Song, Y.U. (1994). What is the reality of globalization: the meaning from President Kim’s guiding principle. The Dongailbo. Retrieved August 19, 2012, from http://www.donga.com

“The Global Information Technology Report 2007- 2008,” World Economy Forum.

UNCTAD (2009c). The Role of International Investment Agreements in Attracting Foreign Direct Investment to Developing Countries. UNCTAD Series on International Investment Policies for Development. New York and Geneva: United Nations.

Page 13: Case Analysis Samsung

UNDESA. 2009. 2009World Survey on the Role of Women in Development: Globalization, Gender and Work. New York: United Nations.

Yea, Sallie. 2003. “Re-inventing the Region: The Cultural Politics of Place in Kwangju City and South Cholla Province,” in Gi-Wook Shin and Kyung Moon Hwang, eds., ContentiousKwangju: The May 18th Movement in Korea’s Past and Present. Boulder, Co: Rowman and Littlefield.