Managing Human Resources: Issues and Solutions in Samsung

Running head: MANAGING HUMAN RESOURCES
Managing Human Resources
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1MANAGING HUMAN RESOURCES
Executive Summary
Human resource management deals with the management of human resources, which is actually
designed for maximizing the employee performance as per the strategic goals of an organization.
This study has chosen the news story of Samsung, where the employees of mobile division are
receiving maximum bonuses despite of their poor performance. From the identification of issues,
it has been found that the organization is discriminating among the employees from different
divisions in terms of providing bonuses. Such discrimination of bonuses is actually de-
motivating the employees and hindering their performance level. The study has also provided
solution to Samsung, where the organization has been suggested to provide equal bonuses to the
employees from different divisions.

2MANAGING HUMAN RESOURCES
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Description of News Story.........................................................................................................3
3.0 Identification of Problem and Theoretical Perspective.............................................................4
3.1 Inadequate Pay Structure.......................................................................................................4
3.2 Lack of Proper Reward Structure..........................................................................................4
3.3 Discrimination among Divisions...........................................................................................5
3.4 Cost Cutting Issue..................................................................................................................6
4.0 Practical Solution for Future......................................................................................................6
4.1 Competitive Salary Structure.................................................................................................6
4.2 Fair Reward Structure............................................................................................................6
4.3 Equal Bonus Pay....................................................................................................................7
4.4 Effective Performance Appraisal...........................................................................................7
5.0 Conclusion.................................................................................................................................8
References........................................................................................................................................9

3MANAGING HUMAN RESOURCES
1.0 Introduction
Human resource management (HRM) is a formal function used in an organization for
managing the employees and their performance towards achieving desired organizational success
(Albrecht et al., 2015). Human resources are considered to the most valuable organizational
assets for getting organizational success (Shahzadi et al., 2014). This study will discuss the
human resource issues in Samsung. The news story chosen in this study has revealed the reward
system issues residing within Samsung. Moreover, the study will identify the human resource
issues of the news story in respect to Samsung. The issues of the news story will also be aligned
with relevant theories of human resource management. Apart from that, the study will provide
appropriate solution to Samsung for reducing their issues of human resource management.
2.0 Description of News Story
The news story of Samsung is based on the matter of providing maximum reward to the
employees of mobile division despite of their poor performance. As per the news story, Samsung
typically does not pay so adequately and fantastically. Moreover, the organization supplements
the base salary of the employees with their annual salary. Samsung usually provides bonus of
50% of employees’ salary and it is usually paid on exceeding the internal profit of each division
(Android Authority, 2016). However, this news story has revealed that the employees of
Samsung’s mobile division are getting maximum bonus despite of the poor performance of the
division. As per the management executives, the employees are getting maximum bonus for their
sincere contribution in keeping the division running in spite of various challenges. Moreover, the
management executives of Samsung provided maximum bonus to the employees of mobile
employees for preventing mass exodus of employees (Android Authority, 2016).
The rise of cheap Chinese vendors has become an extreme challenge for the mobile
division of the Samsung. Such challenge has also reduced the profit level of the organization.
The employees of this division still got maximum bonus despite of its less earnings. In such
situation, the maximum bonus to the mobile division employees has been a bitter pill to swallow
for the employees of other divisions of Samsung. Moreover, the employees of Samsung’s
Electronic have not been treated so favorably. Furthermore, the employees of Samsung’s battery