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Human Resource Management at Samsung Electronics

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Sonia Bola

on 24 November 2014

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Transcript of Human Resource Management at Samsung Electronics

A study by Watson et al., 1993 showed that culturally diverse groups are more effective in performance and interaction.

Diverse teams make it possible to enhance flexibility (Fleury, 1999) and allows rapid responses and adaptations to change (Adler, 1997; Jackson et al., 1992).

Important in Samsung's rapidly changing technological market

There are however other ways to improve productivity and flexibility such as having a good working environment as shown by Google.
Human Resource Management at Samsung Electronics
Samsung's Responses to Recruiting & Retaining Global Diversity
Respecting Human Rights & Diversity
Have a code of conduct that allows for
equal opportunities and non-Discrimination

However, many companies provide this by having a diversity section on application forms for fair employment. for example, Unilever

Prohibition of Forced and/or Child Labour

Human Rights Education -
'Multi-Respect Corporate Culture' course 'workplace Manors' course

Diversity -
Females (make up 35% of the Korean workforce), disabled vocational trainee program, global employment
Integrity Management - Respecting Global Diversity
What is Integrity Management?
Within Samsung's Human Resource Management a large focus is on Integrity management.

Integrity according to the Oxford Dictionary is 'the condition of being unified or sound in construction' as well as having 'the quality of being honest with strong moral principles'

Hence managing a globally diverse team can be one way of managing integrity
Recruiting & Obtaining Global Talent
Samsung now try to employ
individuals worldwide

Each foreign employee is given a
and has
regular meeting
with executives and access to a global
help desk
is also provided
Fair Evaluation & Compensation
Based on performance 'Samsung evaluates the achievements of individual employees'

They 'apply the
identical rate
to the same position grades irrespective of gender, nationality, religion, social position or age'

Compensation is delivered in the forms of basic salary and
performance-based incentives
Respecting Global Diversity
One topic that is focused on within Samsung's Integrity Management scheme is Respecting Global Diversity

From Samsung Electronics Respecting Global Diversity report they believe that 'global expansion and new business expansion are critical to the sustainable growth of the company'

This as a result has lead Samsung to 'put in place a variety of programs to recruit and retain global talent'
Sonia Bola
Loughborough University
Assignment 1
Identified within Samsung Electronics Respecting Global Diversity report are a number of responses to recruiting and retaining global employees within their organisation.
Labor-Management Cooperation & Addressing Employees' Grievances
Build cooperative labour-management relations through a l
abour council
rather than a Union but is this any better?

They address employee grievances through
Advantages of Samsung Having a Diverse Workforce
Disadvantages of Samsung Having a Diverse Workforce
What is Diversity?
According to Kreitz, 2008 diversity is 'any significant difference that distinguishes one individual from another'

Kreitz believed this can be organised into four areas:

-Traits, skills, abilities

Internal Characteristics
- Gender, race, ethnicity

External Characteristics
- Culture, nationality, religion

Organisational Characteristics
- Position, department
Highlighted by the Equal opportunities commission (1995) and in the research paper 'Critical Review of Literature on Workforce Diversity' (Henry and Evans 2007) are benefits that Samsung can gain from having a diverse workforce:
New Business Ideas
Representative Workforce
Improved Corporate Image
Productive & Flexible Workforce
Attracting Ethical Investors
There are also a number of disadvantages that Samsung could experience from having a diverse team. (Henry and Evans (2007) 'Critical Review of Literature on Workforce Diversity')
Mismanaged Diversity
Global &
Workforce Conflicts
Adler, 1997 believed diversity enhances creativity and innovation

Creates a wider range of ideas and abilities, offering greater scope for innovation and competitive performance.

Reported in BBC Business News on the 14th November 2014 Samasung have now kick stared the Virtual Reality market

This also could be one reason why Samsung have reported higher profits than Apple in the smartphone industry.
Research indicates that greater diversity can create higher levels of dissatisfaction and turnover (Miliken and Martins, 1996).

Mismanaged diversity can have long-reaching effects on employee satisfaction and productivity.

Hence if Samsung want to invest into diverse human capital they would need to mange their global workforce effectively for it to be successful.

Samsung do show this through their different global diversity recruiting and retention responses mentioned earlier
Cascio, 1998 stated that diversity will help organisations enter the international arena

This is because organizations with a diverse workforce can provide superior services because they can better understand customers’ needs (Wentling and Palma-Rivas, 2000).

However, will need to use the workforce effectively to gain this advantage
Corporate Social Responsibility (CSR) is seen as a large topic area within today's business environment.

According to Mueller, 1998 'creating and managing a diverse workforce should be seen as a social and moral imperative'

This benefits Samsung as it puts them in a positive light making them to be perceived as ethical, open and embracing.

On the other hand can be built in other ways, such as, being an environmentally friendly business like BP.
Having diversity within Samsung's organisation may attract ethical investors

For example, found on Samsung's Ventures web page, the investors 'The Social + Capital Partnership' entrust in Samsung who utilize venture capital to create value and change on a global scale (Samsung ventures web page)

Overall, ethical investors for Samsung could again improve their corporate image as well as gain important funding to stay competitive and a market leader
Selecting a diverse group of talent individuals can be very costly through recruitment, selection and training.

However, Samsung is a leading profitable company so cost may not be too much of an issue as it would for a smaller less profitable competitor such as Xiaomi
Samsung operate globally so adaption to cultural and governmental views is important to minimize tensions

For example, enforcing gender equality in the workplace in a location that is strongly against it may cause conflict

Conflicts within the organisation arise largely due to ignorance. 'Prejudice feelings or derogatory comments cause a lack of acceptance' which can 'produce negative dynamics such as stereotyping and culture clashes' (White, 1999)

Existing local employees may also feel threatened by international talent. e.g. South Koreans may feel jobs are being taken away from them. To over come this Samsung need to show everyone has the same opportunity
Is it worth Samsung Electronics respecting global diversity?
In today's fast-paced work environment a successful organization is one where diversity is the norm and not the exception (Lawrence, 2001).

However there is limited evidence on whether or not diversity programmes like Samsung's Respecting Global Diversity scheme improves organisational performance (Redman and Wilkinson 2006).

However, Samsung have put in place a number of effective responses to retain and respect global diversity that seem to work well

Overall, through hiring a globally diverse team Samsung Electronics look to have achieved their aim of sustainable global expansion and new business growth.
Samsung Electronics Global Diversity Report
Samsung's Global Workforce
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