Human resource management of samsung PDF

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Rahul m
1011531
Samsung HRM policies, practices and new trends
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. Current managerial orthodoxy therefore argues the
need for a restructuring towards hierarchical structures, an enlargement of job tasks with greater
employee autonomy and managerial leadership to shape the more intangible aspects of the
workplace, for examples beliefs, norms and values.
1. The strategic human resource management (SHRM) and its practice in the one of the world
biggest company Samsung group. And evaluate how Samsung is practicing human resource
management.
2. HR functions and various models and how Samsung adopt vertical and horizontal integration
in their human resource department and then give some recommendations for Samsung
according to the discussion.
Strategic Nature of HRM
Perhaps the most significant feature of HRM is the importance attached to strategic integration,
which flows from top management vision and leadership, and which requires the full
commitment of people to it. Most of them believes that this is a key policy goal for HRM, which
is concerned with the ability of the organization to integrate HRM issue into the strategic plane,
to ensure that the various aspect of HRM cohere, and to encourage line managers to incorporate
an HRM perspective into their decision-making.
It is considered that one of the common themes of the typical definitions of HRM is the human

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resource policies should be integrated with strategic planning. suggested that a future
increasingly associated with HRM is a stress on the integration of HR policies both with one
another and with business planning more generally. suggested that the concepts locates HRM
policy formulation firmly at the strategic level and insists that a characteristic of HRM is its
internally coherent approach.
Strategic Human Resource Management
Strategic HRM is an approach to making decisions on the intentions and plans of the
organization in the shape of the policies, programs and practices concerning the employment
relationship, resourcing, learning and development, performance management, reward, and
employee relations. The concept of strategic HRM is derived from the concepts of HRM and
strategy. It takes the HRM model with its focus on strategy, integration and coherence and adds
to that the key notions of strategic capability and strategic fit.
According to Hendry and Pettigrew (1986), strategic HRM has four meanings:
1. The use of planning;
2. A coherent approach to the design and management of personal systems based on an
employment policy and manpower strategy and often underpinned by philosophy;
3. Matching HRM activities and policies to some explicit business strategy;
4. Seeing the people of the organization as strategic resource for the achievement of competitive
advantage
The form of SHRM used is represented by the management commitment to the:
Objectives
Policies
Practices
Relates to all employees within the organization. It is not simply a matter of rhetoric. Objectives
and policy are formalized within the framework of a corporate strategy as reinforced by the
seminal work that was in at the start of formal discussions on SHRM. He believed that strategy
must be explicitly started rather than be a philosophical mission because only then can
organizations develop and balance planned action with entrepreneurial effort. A SHRM is as
essential as other strategies for two reasons:
Individual members of the workforce need to be able to cooperate in order to achieve mutual
reinforcement Individuals (who comprised the organization) need to be able to cope with
changing environmental conditions

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Johnson and Scholes (1999) delve deeply into strategic matters stating that a strategy is the
lifeblood of any organization. They make some key points which are relevant to SHRM:
If there is not an explicit strategy individuals may work at cross-purposes.
The top management must clearly communicate the strategy to those whose job it is to
implement usually employees at the bottom.
Individuals are creatures of habit and tend to be suspicious of new patterns of working.
Change must be part of overall strategic planning
Strategic statements are creative and thus an art.
Strategic planning requires individuals to change their attitude and thus behavior.
Strong, deliberate analysis is critical in order for SHRM to be defined and well documented. It
will not happened accidentally there has to be a proactive desire to make policies integral to the
realization of objectives defined by the other key strategies, which includes:
Finance
Production
Customer quality
Marketing.
HRM managers have to strongly articulate their developmental and employment strategies
among those already strongly recognized within the organization because, otherwise, the
achievement of the totality of the business objectives may be vulnerable Aims of Strategic HRM:
The aims of strategic HRM are to:
Generate strategic capability by ensuring that the organization has the skilled, committed and
well-motivated employees it needs to achieve sustained competitive advantage;
Provide a sense of direction an often turbulent environment so that the business needs of the
organization and the individual and collective needs of its employees can be met by the
development and implementation of coherent and practical HR policies and programs;
Provide unifying frameworks which are at once broad, contingency based and integrative
Strategic HRM Models
High-performance
Management A clear line of sight exists between the strategic goals of the organization and those
of its departments and employees at all levels.
Management defines what it wants in the shape of performance improvements, sets goals for
success and monitors performance to ensure they are achieved.
Leadership from the top engenders a shared belief in continuous improvement.
Focus on promoting positive attitudes, which leads to the development of a motivated and

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committed workforce.
Performance management processes are aligned to the objectives of the organization to ensure
the people are engaged in achieving high standards of performance.
Capabilities of people developed at all levels to support performance improvement.
People provided with opportunities to make full use of their skills and abilities.
People valued and rewarded according to their contribution.
High-commitment
Management The development of career ladders and emphasis on trainability and commitment as
highly valued characteristics of employees at all levels in the organization.
A high level of functional flexibility with the abandonment of potentially rigid job descriptions.
The reduction of hierarchies and the ending of status differentials.
Reliance on team structure for disseminating information, structuring work and problem solving.
Job design which increases the intrinsic satisfaction derived from work.
No compulsory redundancies.
New forms of assessment and payment systems.
High involvement of employees in the management of quality.
Management Treating employees as partners in the enterprise who have a voice on matters that
concern them. Establishing a mutual understanding of what is to be achieved and a framework
for managing and developing people to ensure that it will be achieved.
Strategic Human Resource Management Practices in Samsung:
Samsung overall introduce the legendary tycoon, Byung-Chull Lee in 1938, founded Samsung.
In 1995, Samsung sales rose to $87 billion and its assets totaled $87 billion (Samsung
Corporation, 1995a). Samsung is the second largest chaebol composed of 35 enterprises, which
employ 233,000 employees in 66 countries. Samsung is a major global competitor in electronics,
machinery, chemicals and finance. Other areas of Samsung operations include the auto
manufacturing, newspaper, hotel, and entertainment industries.
HRM challenge in Samsung chaebol Chairman Kun-Hee Lee, the third son of the founder,
manages this huge conglomerate. Chairman Lee and his family own core companies, which in
turn own other affiliated enterprises. Samsung has been one of the most important vehicles for
Korea remarkable economic growth and has received numerous awards from the government for
its contributions.
Not only has Samsung been a major catalyst for Korea economic growth, but it has also been a
pioneer among the chaebols in terms of the development of formal HRM systems. Samsung was