INTERCULTURAL COMMUNICATION IN BUSINESS INDIVIDUAL ASSIGNMENT AT SAMSUNG

TECHNOLOGY PARK MALAYSIA BM007-3-M-ICB INTERCULTURAL COMMUNICATION IN BUSINESS INDIVIDUAL ASSIGNMENT CROSS CULTURAL ENVIRONMENT AT SAMSUNG MBA 1st SEMESTER NAME STUDENT NUMBER INTAKE CODE MODULE LEADER HAND IN DATE : SABITA KUNWAR : NPB000173 : NPSMF2001MBA : PATHIVENDRA UPADHYAYA : 10 JULY 2020 i Abstract Samsung is a global pioneer in

i
TECHNOLOGY PARK MALAYSIA
BM007-3-M-ICB
INTERCULTURAL COMMUNICATION IN BUSINESS
INDIVIDUAL ASSIGNMENT
CROSS CULTURAL ENVIRONMENT AT SAMSUNG
MBA 1st SEMESTER
NAME : SABITA KUNWAR
STUDENT NUMBER : NPB000173
INTAKE CODE : NPSMF2001MBA
MODULE LEADER : PATHIVENDRA UPADHYAYA
HAND IN DATE : 10 JULY 2020

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Abstract
Samsung is a global pioneer in electronics. The operations concentrate on
innovative product innovations that add to the lives of people and create meaningful
change through social mobility. Samsung's successful and popular items include
smartphones, various smart TVs, fridges, washing machines and so on. The success story
behind Samsung's was its corporate community. Employers and staff have specific
responsibilities in fulfilling the purpose of the organization and in addressing cross-
cultural problems. The aim of this study is to learn the culture, leadership style and
communication activities of Samsung organization. This study focuses on the management
of cross-cultural business in the global economy. This will involve how Samsung
organizational culture, leadership style and communication practices are interrelated in
context of cross cultural environment. The finding also includes the evaluation of Samsung
culture and communication practices effectiveness which has played an ultimate role in the
success of Samsung organization.

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Table of Contents
List of Tables .............................................................................................................................. v
List of figures ............................................................................................................................ vi
CHAPTER 1 ............................................................................................................................... 1
Introduction ................................................................................................................................ 1
1.1 Samsung ................................................................................................................ 1
1.2 Background .......................................................................................................... 1
1.2.1 Leadership Team ........................................................................................... 2
1.2.2 Management Style ......................................................................................... 3
1.2.3 Organization Culture ..................................................................................... 4
CHAPTER 2 ............................................................................................................................... 5
Conceptual Framework ............................................................................................................... 5
2.1 Organizational culture ......................................................................................... 5
2.2 Leadership Style ................................................................................................... 5
2.3 Communication Practices ..................................................................................... 6
2.4 Conceptual Map ................................................................................................... 8
2.5 Research Question ................................................................................................ 8
CHAPTER 3 ............................................................................................................................. 10
Analysis .................................................................................................................................... 10
3.1 Relationship between organizational culture and leadership style ........................ 10
3.2 Relationship between Organizational culture and Communication practices ......... 11
3.3 Influence of Samsung leadership style and organizational culture on communication
practices in context of cross cultural environment......................................................... 12
3.4 Improvement in communication practices ........................................................... 13
CHAPTER 4 ............................................................................................................................. 14
Evaluation of organizational culture and communication effectiveness ..................................... 14

iv
CHAPTER 5 ............................................................................................................................. 16
Recommendation and Conclusion ............................................................................................. 16
5.1 Recommendation ................................................................................................ 16
5.2 Conclusion ......................................................................................................... 16
References ................................................................................................................................ 18

v
List of Tables
Table 1; Name of Samsung leadership team ....................................................................... 2

vi
List of figures
Figure 1; Relationship between Organization culture, Leadership style, Communication
practices in context of cross cultural environment. ...................................................................... 8

1
CHAPTER 1
Introduction
1.1 Samsung
Samsung is a global South Korean conglomerate based in Samsung city,
Seoul, South Korea. It was founded by Lee Byung - chul in 1938 as a trading firm. In the
late 1960s, Samsung entered the electronics industry, which is now the world's largest IT
company (slideshare, 2015 ). Samsung covers many fields including information and
communication systems, manufacturing, culture, and advertisements (Aslan, 2019).
Samsung produces electronic products such as TVS, printers, laptops, washing machines,
microwaves, handheld USB devices and LCDs. Other categories are produced in building,
such as real estate(UKEssays, 2018b).
Samsung Electronics Co. Ltd. is Samsung Group's sole company, and Asia's
biggest electronics manufacturer. The Samsung electronics stands for stability, reliability
and warmth (UKEssays, 2018b). Samsung Electronics specializes in the manufacture and
sale of electronics and portable computers. Samsung is a multinational corporation working
in 213 places around the globe. It hires 320,000 workers in 84 countries, where 70 per cent
of staff operate outside Korea (KNÖPFLE, 2016). Asia has been primary target for
Samsung’s direct investment. Since 2013 , the company has three main divisions,
Consumer Electronics, Device Solutions and IT & Mobile Communications(KNÖPFLE,
2016).
1.2 Background

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1.2.1 Leadership Team
The Board of Directors of Samsung Electronics comprises five Executive
Directors and six Independent Directors. Independent directors constitute a majority of the
board, pursuant to Article 542-8 of the Commercial Act. The Board leverages its
experience and competencies in diverse fields to ensure successful and strategic decision-
making. Directors are chosen by resolutions of a shareholder assembly. The executive
directors are elected from candidates approved by the board, and the Independent Director
Selection Committee recommends independent directors. Every members of the board shall
have a three-year term in office and shall be entitled to be re-elected at a shareholders'
general meeting at the conclusion in their tenure (global, 2020).
Table 1; Name of Samsung leadership team
Name Title
Committee participation
Manag
ement
Audit Independ
ent
Director
Recomme
ndation
Related
Party
Transacti
ons
Compensati
on
Governan
ce
Jae-Wan
Bah
Chairman of the
Board &
Independent
Director
● ○ ○ ●
Ki-Nam
Kim
Vice Chairman
& CEO(DS) ●
Hyun-Suk
Kim
President & CEO
(CE) ○
Dong-Jin
Kohl
President & CEO
(IM) ○
Jong-He
Han
President &
Head of Visual
Display
○
Yoon-Ho
Choi President & CFO ○
Sun-Uk
Kim
Independent
Director ○ ● ○
Byung-
Gook Park
Independent
Director ○ ● ○
Jeong Kim Independent
Director ● ○ ○
Curie Ahn Independent
Director ○ ○
Han-Jo Independent ○ ○ ○

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Name Title
Committee participation
Manag
ement
Audit Independ
ent
Director
Recomme
ndation
Related
Party
Transacti
ons
Compensati
on
Governan
ce
Kim Director
●※ : Head of Committee ○: Member
Source: https://www.samsung.com/global/ir/governance-csr/board-of-directors/
1.2.2 Management Style
Samsung's management style is a combination between the best from the
Japanese and American management styles. Until the 1980s, Samsung used mainly
Japanese-style management system. But in 1990s, after the popularity of semiconductor
industry, Samsung embraced an American-type approach and HR (chul Jung, 2014). In
1993, Samsung announced "New Management" unveiling. Since then Samsung has turned
itself into a world-class player with a high brand image and quality goods following the
latest Management Plan from a marginal supplier focused on low-cost advantages. (chul
Jung, 2014).
Samsung is committed to supporting value-based leadership practices.
Leadership based on values helps to respect the ethical principles established. Value-based
leaders encourage the fostering of self-management of worker (freeessays.club (2016)).
Samsung's leadership model is typically a cooperative form and integrated into their
business ethos. Although leaders often need to take decisions and guide their company by
mandate acts, Samsung promotes innovation, teamwork through its employee challenges
(edwardjknapp, 2017). Samsung also follow transformative leadership that focused on
group processes, personality and their effects, compliance inducing arts, influence exercise,
structure initiation (IvyPanda. 2020).

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1.2.3 Organization Culture
Samsung's corporate culture has historically been a seniority-oriented
expression of the South Korean home country's national culture. Good outcomes of such a
culture can include higher workplace satisfaction rates and quicker decision-making.
However, on the other side, seniority-oriented corporate culture does not allow junior
workers to express their proposals to their managers and to suggest action (Dudovskiy,
2017). Samsung's organizational culture centers on pursuing a high degree of technical
advancement that includes approaches for the growth of human capital. Samsung provides
a corporate ethos that is focused on creativity. This corporate culture is part of an
organizational strategy that emphasizes the expertise, talents and abilities of workers to
reinvent the technological goods of the business, such as smartphones and laptops.
Samsung's corporate purpose and vision statements are accompanied by the organizational
cultural characteristics, which concentrate on superior goods that enhance life and
community (Evans, 2019b).

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CHAPTER 2
Conceptual Framework
2.1 Organizational culture
The notion of "culture" often relates to exotic, distant peoples And sites,
stories, rituals, cultures and traditions international. Investigators have observed that
members of organizations are similar within our own society participate in rituals, pass
through corporate myths and stories, and use arcane jargon, and that these informal
activities may encourage or hinder the organization's objective of management {Baker,
1980;(Lund, 2003)}.
In the organizational behavior literature, a number of definitions for
organizational culture have been proposed. For example, Mangkunegara (2013) defines
organizational culture as a collection of principles or belief structures, beliefs and
expectations established in organizations that serve as guidance for their members' conduct
to address external adaptation and internal integration (Patra and Aima, 2018). According
to Hofstede (1980), organizational culture relates to common mind conditioning that
separates participants from one group. This involves mutual views, principles and activities
that differentiate one entity from another (Abu-Jarad et al., 2010).
Organizational culture is a collection of common ideals, opinions, and
standards that affect organizational thought, feeling, and acting by employees. Corporate
culture has four functions: to offer participants a sense of belonging, to enhance their
engagement, to reinforce organizational principles and to act as a behavioral management
system (Rehman, 2012).
2.2 Leadership Style
Leadership style is the manner and approach to provide direction, plan
implementation and people motivation. (Newstrom et al., 1993). The analysis is based on

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Bass's (1985) Full Range Leadership Model. Bass has identified preferred leadership styles
as transformative, transactional and laissez-faire)(Yahaya and Ebrahim, 2016).
Burns (1978) defined transformational leadership as a process in which
“leaders and followers raise one another to higher levels of morality and
motivation”(UKEssays, 2018a).. Transformational leadership serves as a means to “create
and sustain a context for building human capacity by identifying and developing core
values and unifying purpose, liberating human potential and generating increased capacity,
developing leadership and effective followership, utilizing interaction-focused
organizational design, and building interconnectedness” {Hickman, 1997; (Givens, 2008)}.
The concept of transactional leadership builds on an economic contract, the
concept of economic exchange or cost-benefit performed in the short term. It is based on
the contingent incentive method and management-by-exception (Ismail et al., 2010).
Transactional leadership focuses on results, conforms to an organization’s current structure,
and evaluates success according to the scheme of incentives and punishments within that
entity(StuOnline, 2014). Laissez-faire 's leader is said to be relinquishing responsibility,
giving no feedback, delaying decision-making and not interested in helping followers meet
needs there {Northouse,2010;(Long and Thean, 2011)}.
2.3 Communication Practices
Communication is characterized as a transformation or transfer and
interpretation of knowledge using symbols together from one individual or community to
another, and these signals can be verbal or nonverbal(Sadiartha and Sitorus, 2018). The
word contact (or its counterpart in some other languages) is used to refer to a variety of
activities communication practices including talking and hearing, writing and reading,
conducting and watching, or, more broadly, doing something that includes "messages" in
any context or circumstance (Craig, 2006).
Judge (S. Robbins & Judge, 2009) redefined contact as a friendship or a
partnership interaction between superiors and subordinates (downward communication) or
between subordinates and superiors (upward communication) or between employees

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(horizontal communication) and or between employee contact through the system to
accomplish human or corporate goals (Sadiartha and Sitorus, 2018). Connection is at the
core of both the corporate and foreign affairs. It is an important resource to get stuff
accomplished and the framework for awareness, co-operation and practice. Communication
moves knowledge, meets the demands of individuals and accomplishes tasks, but sadly if
not handled well, it may also misrepresent massages, create dissatisfaction, and render an
organization successful for citizens(Erkkilä, 2010).

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2.4 Conceptual Map
Organization Culture
Communication Practices
Leadership Style Cross Cultural Environment
Figure 1; Relationship between Organization culture, Leadership style, Communication practices in
context of cross cultural environment.
2.5 Research Question
The following question will address in this study;
Vision
Innovations
Creativity
Goal Oriented
Voice mail
Fax, Email
Formal
Informal
Meeting
Value based
Co-operative
Transformative
Social structure
Organizational growth
Employee motivation

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1. Is there mutual relationship between Samsung organizational culture and leadership
style?
2. How is the relationship between Samsung organization culture and communication
practices?
3. How Samsung organization culture and leadership style influence communication
practices in context of cross cultural environment?
4. What can be done to improve communication practices?

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CHAPTER 3
Analysis
3.1 Relationship between organizational culture and leadership style
Leaders play a significant part in forming and sustaining an organization's
ethos. It is the leadership that mobilizes focus toward a different direction and it is the
organization at community that brings the dream credibility. So it can be seen that
leadership and corporate culture are closely linked and have a symbiotic partnership in
general (Sharma and Sharma, 2010). An organization's core values continue with the
leadership, and then transitions to a leadership style. Having developed a cohesive
behavior, principles and convictions, a clear corporate culture develops (Tsai, 2011).
Leadership and corporate culture are regarded as two of the most critical organizational
components such that organizations can perform effectively and achieve sustainable
advantages.
Samsung's organizational culture focuses on achieving a high degree of
technical advancement and includes human resource development strategies. By definition,
a company's corporate culture includes the practices, fundamental beliefs and rituals
incorporated and anticipated of employee behavior. Samsung's leadership style emphasizes
on creativity inspiration and fosters the working environment that helps Samsung people to
remain focused on their jobs and fulfill the vision of their leader.
Samsung's ethos and ideology of people-oriented leadership emerged as an
artistic intelligence and abilities of humans as the company's most valuable resource.
Samsung Group organizations are a rare 'two-top leadership' structure, incorporating core
Samsung values, corporate theory, the Samsung extremely demanding long-term strategy
and skilled management leadership. Samsung's two-top leadership structure has built up a
strong organizational culture (Kang, 2018). Both Samsung's corporate culture and
leadership style often focus on inspiration, imagination, ingenuity, and the development of
the working environment that results in organizational progress, employee satisfaction, and
productivity. Samsung's intensely demanding leadership and corporate culture offers a solid

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base for Samsung continuous high value development and sustainable growth, Under this
leadership structure, Samsung organizational culture has created a strong, objective-
oriented, hard-working atmosphere to achieve the company's goals.
3.2 Relationship between Organizational culture and Communication
practices
Individual belief system of the person influences the way that they
communicate at work. This ideology is immune to reform, however it may be rooted in
well-communicated corporate culture. Communication is essential for the development of
friendships and the building of confidence and acceptance of the receivers of the message.
Connection is central to the organization's life and growth, including as its
goals.(ŞOMĂCESCU et al., 2016). Organizational people create culture by interacting with
each other. Culture develops directly through language, stories and other non-verbal
messages.
Something very different is the contact approach of Samsung; it favors
limited face-to - face informal communications with leading executives, but never
communicates individually with intermediate and lower-level managers (Kang, 2015).
Samsung used mails and faxes to connect with the company's investigation team and
compliance personnel. Hardworking, goal-oriented Samsung group is somehow affected by
formal interaction due to insufficient involvement between the company's head manager
and employee which directly affects employee satisfaction and company growth..
Samsung's seniority-oriented culture does not allow junior workers to express their
motivating thoughts and intent to their superior that may create frustration and tension
between the lower-level employee and their superior that will affect company development
and prestige.. Hence, there is inverse relationship between Samsung organization culture
and communication practices.

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3.3 Influence of Samsung leadership style and organizational culture on
communication practices in context of cross cultural environment
Communication is the organization's life-blood and must be allowed to
follow throughout the organization. Productivity declines when corporate members are
unable to express objectives explicitly and succinct. Furthermore, conflict and tension
arises when employees does not understand their personal efforts contribute to the overall
success of the organization. (Matthews and Thakkar, 2012) Nowadays in a competitive
world the ability to connect efficiently may be a problem. Though there are often
misunderstandings when two parties speak in the same language, owing to legal and
cultural disparities (Rani et al., 2016).
Samsung is unique in that it relies on human capital and risks management
programs. Samsung is recognized as a world leader in the industry due to its Inner capacity
to leverage separate initiatives. It recruits a limited number of non-Koreans within Korea
but employs a larger proportion of non-Koreans outside Korea. The organization's culture
is very family-centric. Thus decision would enable communication at all levels of
organization(Matthews and Thakkar, 2012). Nonetheless, workers may not necessarily
display respect even though actions are explicitly expressed within the company. An
obstacle to cross-cultural contact may be reflected by the workplace when workers believe
they are not respected. That raised a question at Samsung. Samsung organization culture
focused on innovation and motivation and Samsung leaders are the main link responsible
for harnessing the idea of employees to create innovation.
Samsung’s innovative leaders are smart communicators who are willing to
sustain strong foreign business contact while Samsung society emphasizes on superior
products that enrich life of community. Samsung leadership style coupled with leadership
efficient contact style is the cause for success in the organization. Samsung 's
organizational style and philosophy of enterprise is focused on inspiration and creativity.,
Samsung leaders often interact with each other to inspire them. Therefore, Samsung is
getting a big influence on the global economy.
Samsung has number of workers in different countries belonging to diverse
cultures, including religion, racial community, language that often contributes to friction,

13
staff confusion, but this cross-cultural interaction has helped to learn new insights, ideas
and perspectives from one another.. So, in future such experience helps to motivate
employee and encourage the growth of company. If, at first, a dispute and
misunderstanding emerge because of cultural isolation, it can be resolved after two parties
have started to share their knowledge and ideas.
3.4 Improvement in communication practices
Communication plays a critical role in creating meaningful relationships,
producing solutions and helping a team solve obstacles and meet difficult discussions.
Samsung communication will be more efficient and strengthened if there is strong
communication between the chief and the employee. Everything would be easier if workers
are encouraged to share their ideas directly with their boss, instead of using any structured
contact method. Proper awareness of various cultures and exchanging thoughts and
experiences with each other helps to preserve effective relations and minimize tension in
cross-cultural environments.

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CHAPTER 4
Evaluation of organizational culture and communication
effectiveness
Samsung possesses an organizational culture centered on innovation. This
corporate culture is part of an organizational design that highlights the knowledge, skills
and abilities of the employees to innovate the technology products of the company.
Samsung Business Ethos embodies the long-term strategic goals of preserving its global
role as one of the leading firms in the international semiconductor, consumer electronics
and emerging technology industries. Samsung Company ensures career development
opportunities not only through institutionalized programs but also by encouraging
employees to help each other achieve their career goals within the technology business
organization.
Organizational culture's innovation-centeredness makes the company thrives,
and provides incentives for the job growth of workers in the process. The ethical values of
Samsung, the corporate culture encourage justice, integrity and openness in the big
developments in business ethics that can be seen on the global market. The corporate
climate of Samsung brings business management challenges when it comes to meeting
institutional goals. The ethical aspect of corporate culture requires effective monitoring and
control to identify inadequacies in human resources in this respect. Samsung is facing the
challenge of securing prosperity for all and opportunities for all staff. The technology
conglomerate can experience obstacles in sustaining its organizational culture to create a
work environment where the professional growth aspirations of all workers are treated in
an equal manner(EVANS, 2019a).
Samsung correspondence takes place primarily electronically via company-
internal emails and bulletin boards. The different departments send emails to each other to
convey important messages regarding product updates and product and service related
information. There is an internal database network where all the product details was
transmitted to the workers for simple and fast access. The staff is intimated by telephone

15
calls and even by emails long in advance of meetings. Relevant papers are shared often by
postal mail between the offices located in various parts of the world (LOCUSassignment,
n.d). Samsung prefer formal communication within the organization and globally which is
more effective and trustworthy and less conflict arising in global market. All the
discussion, decision is taken following systematic order which result in least mistake.
Samsung leader are good communicator as they are more confidence and focused in their
work.

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CHAPTER 5
Recommendation and Conclusion
5.1 Recommendation
 As Samsung’s culture is a seniority-focused culture and has many negative impacts.
This doesn't encourage junior staff to share their thoughts and inspire their bosses. I
counsel Samsung to adopt a policy that allows employees to share their ideas and
expertise.
 Samsung hierarchical organizational system that is often inflexible and disastrous
should be removed. Organic systems should be implemented based on informal
relationships rather than a structured chain of command.
 Samsung casual contact is restricted to leaders and is not so helpful to the company.
Samsung is advised to use face-to - face contact even with its workers and create deep
ties between the employee and the leader. When employees feel their value they stay
committed to their job.
 Transformational leadership followed by Samsung conveys temporary enthusiasm and
provides false vision for the employee. I strongly suggest that Samsung pursue team
leadership as coordination is very important to the organization. The assignment of
collective work is more beneficial than the assignment of individual work.
 Samsung is also recommended to take transactional leadership that focuses mainly on
employee supervision.
5.2 Conclusion
To sum up, Samsung is a large-scale company that manufactures digital
goods like smartphones and other gadgets that make human life easier. Success of Samsung
Company is because of its organization culture, leadership style and communication
practices. In this paper we have discussed about the inter relationship between Samsung

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organizational culture, leadership style and communication practices. Samsung's corporate
culture focuses on achieving a high degree of technical advancement and includes human
development strategies. Samsung's highly competitive leadership and corporate culture
provide a stable basis for Samsung's sustained high-value creation and sustainable growth.
Samsung organization culture and leadership style are correlated as both are focused on
innovation, creativity and motivation.as Samsung leaders are good communicator, and they
are able to maintain successful business worldwide with less conflict and
misunderstanding. These entire factors are the reason behind Samsung continuous growth
and achievement.

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