HRMG204 Organisational Behaviour
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Australian Catholic University
Organisational Behaviour (HRMG204)
Added on 2020-05-04
HRMG204 Organisational Behaviour
Australian Catholic University
Organisational Behaviour (HRMG204)
Added on 2020-05-04
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Running head: ORGANIZATIONAL BEHAVIOR A Case Study Report of SamsungName of the Student:Name of the University:Author’s Note:
1ORGANIZATIONAL BEHAVIOR Executive SummaryIn this report, the ethical issues related to Samsung are discussed. Samsung has been found to beinvolved in cases related to ethical issues in China, for instance, the workers that were hired inthe manufacturing facilities of China were reported to be below the working age. The workers ofmanufacturing units of Samsung and its supplier in China were also physically and verballyabused. The report relates the unethical labor practices of Samsung in China with theories,methodologies and literature of Organizational behavior. A SWOT analysis is provided toanalyze the issues of the ethical case of Samsung. The case has been analyzed and the steps thatSamsung has adopted to resolve the ethical issues are highlighted in the report. Samsungpresented a public apology and organized audit for its manufacturing facilities in China. It can berecommended that Samsung should devise proper human resource policy for its Chinese labormarket and the organization should balance its demand for products with supply of labor inChina so that the workers do not work overtime. It can be concluded that adopting the correctaction plan will ensure that Samsung can regain Customer Perceived Value and its brand imageand reputation.
2ORGANIZATIONAL BEHAVIOR ContentsExecutive Summary.........................................................................................................................1Introduction......................................................................................................................................3Discussion........................................................................................................................................4The Ethical Issues of Samsung....................................................................................................4SWOT Analysis for Samsung Case.............................................................................................5Connections to Theoretical and Empirical Research...................................................................6Analysis and Evaluation...............................................................................................................8Reaction of Samsung towards Ethical failure..............................................................................9Recommendations..........................................................................................................................10Action Plans...............................................................................................................................10Conclusion.....................................................................................................................................11Evaluation of Consequences......................................................................................................11Reference List................................................................................................................................13
3ORGANIZATIONAL BEHAVIOR IntroductionSamsung is the South Korean business conglomerate headquartered in Samsung Town,Seoul. Lee Byung-chul founded the organization in the year 1938. Samsung group hasdiversified business units and have ventured in sectors like food processing, insurance, retail andsecurities and textiles. Samsung ventured into electronic industry in the late 1960s and hasglobalized its operations since then in various countries across the globe (samsung.com/in/2017). The main source of income for Samsung has been from mobile phone and semi-conductors. Any business organization should abide by certain business ethics like followingstrict policies and practices to avoid potentially controversial issues which can adversely affectthe interests of the stakeholders of business organization and can tarnish the reputation of thebusiness in the long run. Some examples of such controversial issues are related to corporategovernance, labor exploitation, insider trading, bribery, discrimination, and issues related toCorporate Social Responsibilities of the business organization. In this era of globalization, thebusiness environment has become highly competitive and volatile (Robbins and Judge 2013). Abusiness organization focuses on continuous growth and innovation to achieve high performanceand to sustain high competition of the marketplace. However, the sole purpose of businessorganization should not only focus on creating value for shareholders and concentrate onprofitability, but to also focus on creating long term value for its stakeholders. The stakeholdersof a business include the government, suppliers, shareholders and investors, society, employeesand customers. Samsung Electronics got involved in controversies related to exploitation ofyoung workers in China.
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