HRMT20024 Term 3 2017: Performance Management Issues at Samsung

This report analyzes the performance management issues within Samsung, focusing on unfair reward distribution, lack of clear strategy, and biased decision-making. It applies theoretical concepts such as Goal Setting Theory and Expectancy Theory to propose recommendations for improvement. These recommendations include linking performance management to strategic goals, developing performance evaluation forms for different departments, providing proper development and learning opportunities, and diversifying motivational factors. The report concludes that effective performance management is crucial for improving employee performance and overall organizational success. Desklib offers a platform for students to access similar solved assignments and past papers for their academic needs.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author note

1HUMAN RESOURCE MANAGEMENT
Executive Summary
The report has helped in understanding the different issues and facts in the case study related to
the Samsung Company. The different issues have been identified that is related to the
performance management of the employees in the organization. The different kind of
recommendations has been provided related to the improvement of performance of the
employees.
The main aim and purpose of the report has been related to the understanding of issues in the
performance management of the employees. The recommendations related to the improvement
of the performance have been analyzed and this has helped in rectifying the issues in an effective
manner.
The conclusion has been based on analysis of different issues in the organization related to
performance management. The recommendations have been provided related to strategic HRM
and other diversity management.

2HUMAN RESOURCE MANAGEMENT
Table of Contents
Introduction..........................................................................................................................3
Brief about the Case Study..................................................................................................3
Problems and Facts in the Case Study.................................................................................4
Theoretical Concepts relevant to performance management...............................................5
Recommendations................................................................................................................6
Conclusion...........................................................................................................................7
References............................................................................................................................9

3HUMAN RESOURCE MANAGEMENT
Introduction
The report helps in analyzing and identifying the issues faced by Samsung Company
regarding the performance and reward management of the employees. The different theories and
literature has to be provided in order to understand the performance management of employees
in Samsung. The Human Resource implications has to be analyzed in such a manner that this
will help in managing the performance.
The main aim and purpose of the report is to understand the performance management of
the Samsung Company. The different analysis has to be done regarding the performance
management theories that can be implemented by the respective company in order to improve the
performances as this will improve productivity of the organization.
The structure of the report includes the definition of the performance management along
with analysis of the case of Samsung in relation to the performance management of the company.
The different unfair facts have to be discussed in relation to the Samsung Company that included
the fair bonus of the team as well. The recommendations have to be analyzed in such a manner
that includes the strategic HRM, diversity management and motivation and reward management.
Brief about the Case Study
The case study is based on the Samsung Company relating to the performance
management. The case study is on the poor performance of the company; however, the company
is still paying their employees the best incentives as deserved by the different employees in the
organization. The bonuses are capped at 50% of the salary of the employees and the mobile
division of Samsung were performing extremely poor. The battery division employees just
received 3% bonus for the entire year instead of 50% of the bonus.
It was even seen that the performance of the handset division of Samsung was not that
strong in the year 2015. It was seen that Samsung is trying to motivate the employees through
compensation strategies. Samsung adopts the new leadership approaches, as this will motivate
the employees in the organization. The main issue that has been analyzed in the case study is

4HUMAN RESOURCE MANAGEMENT
relating to the performance of the Samsung and the compensation paid to employees for
performing well in the organization as well.
Problems and Facts in the Case Study
There were different issues that has been identified from the respective case study is
relating to the performance of Samsung Company. The different issues that have been identified
from the case study are as follows:
Unfair Distribution is one of the challenges that are faced by Samsung Company in the
present scenario (Arnaboldi, Lapsley & Steccolini, 2015). The unfair distribution of the
rewards at the workplace has been done that has caused inequality among the different
employees in the organization. The different inequality among the different employees is
one of the major challenges that were faced by Samsung. It has affected the motivational
approaches of the employees in the organization as well (Armstrong & Taylor, 2014).
Samsung Company does not provide fair bonus to their respective employees in the
organization (Kristiansen, Obstfelder & Lotherington, 2016). Samsung Company did not
follow the equality technique to provide employees bonuses in order to make them
perform in an effectual manner. The unfair treatment to the employees has affected the
morale of the employees in different segments and this has affected the business of
Samsung as well (Schaltegger & Burritt, 2014).
Lack of clear strategy is the third issue that has been affecting the entire performance of
the Samsung Company (Van Der Aalst, La Rosa & Santoro, 2016). The respective
company did not maintain any kind of clear strategy that would have helped them in
understanding the requirements of the employees in the organization. Furthermore, the
company did not analyze the requirements of the customers in an effective manner and
this has created huge issues as this had dropped down their sales in the competitive
market (Van Dooren, Bouckaert & Halligan, 2015).
Biased decision-making is the other issue that has been found in the Samsung Company
as the company has taken biased decisions relating to the payment of compensation to the
employees in the organization. Samsung Company has provided their biased opinions

5HUMAN RESOURCE MANAGEMENT
relating to payment of bonus and this has affected the morale of the employees in the
respective organization (Todorović et al., 2015)
Theoretical Concepts relevant to performance management
There are different theoretical concepts relating to the performance management of the
employees in the organization. The concepts and theories that can be adopted by Samsung
Company in order to resolve such issues relating to the performance management are as follows:
Samsung Company can adopt the Goal Setting Theory in such a manner that this will
help the employers in establishing goals for the employees and motivate them to perform well in
the organization. The goal setting theory was proposed by Edwin Locke wherein it helps in
motivating the employees in the organization to generate equality among the employees.
According to Gerrish, (2016), as per the theory, it is the theory that helps the individuals in
following their goals and enhances the productivity of the entire organization in an effective
manner.
However, on the other hand Sparrow, Brewster & Chung, (2016) commented that when
the performance that was desired has not been achieved by the employees in the organization, it
is essential for them to modify their performance. Sharma, (2017) stated that the employees need
to improve their performance in such a manner that this will help them in achieving the results in
an effective manner. The goal setting theory is essential in nature, as this will help the company
and the employees in the organization to perform in an effectual manner.
For example- Suppose when employee X is not able to perform in an effective manner, it
was the duty of the respective employee to improve the performance of the employee in such a
manner that the X employee has tried his best in putting his efforts and achieved the goals. The
goal setting theory has helped the employee X in understanding the different issues that has been
faced by him. He tried to improve the performance as the motivation factor is generated from the
respective employer in an effectual manner.
The other theory that has been adopted by Samsung Company is Expectancy theory that
has been proposed by Victor Vroom in the year 1964 (Albrecht et al., 2015). The respective
company wherein the individuals adjust their different kind of behavior has adopted the theory to

6HUMAN RESOURCE MANAGEMENT
improve the performance. According to Rothaermel, (2015), the satisfaction is essential in nature
in the organization as this helps the employees in improving their performance in an effectual
manner. The employers of the respective company have to modify their behavior in such a
manner that this will help them in attaining goals in an effective manner. However, Ringov et al.,
(2017) commented that in the respective theory, it is believed that the entire performance of the
individuals is based on the expectations that are concerning the events that will be taking place in
the future.
For example- As per the Vroom’s expectancy theory, it can be analyzed that the effort is
related to performance and performance is related to reward. Suppose when employee A of
Samsung has provided his full effort in performing the tasks in the organization, then the
acceptable performance is required to be achieved in the organization. Similarly, after achieving
the overall performance, the reward is provided to the employees in an effective manner. The
employee A will require analyzing the issues that can hamper their performance and solve the
issues with providing proper performance.
These are the different theories that can be adopted by Samsung, as this will help them in
focusing on the performance of the employees in the organization (Kamoche et al., 2015). The
different effectiveness in the operations of the company is analyzed in such a manner that this
will help in improving the overall performance of the company along with financial performance
(Mahoney & Kor, 2015).
Recommendations
There are different kinds of recommendations that can be provided to the Samsung
Company as this will help them in improving the performance management system and motivate
employees without any kind of biasness. There are different ways through which the
performance can be managed that are as follows:
Proper linkage of the performance management to goals and projects as this will help
in supporting strategic plan or the competencies that will be deemed to the entire success
of the organization. The entire focus is required to be on the actual outcome or the
competencies such as strategic thinking, external and internal customer service and

7HUMAN RESOURCE MANAGEMENT
resilience in face of the change. This will help in improving the overall performance of
the company along with employees without biasness. This will help in managing the
entire human resource management of the organization.
Proper development of the performance evaluation form is required for different
departments in the respective company. This will help in reviewing the performance of
the company and officials differently. The different departments have different tasks to
perform and this will be requiring separate evaluation forms as well.
Proper development and learning is required to be provided to the employees in the
entire organization. Both the managers and employees need to be aware about the process
of the performance management. The managers of the organization need to be trained in
such a manner that this will help them in conducting effective reviews. The development
and learning is required to be provided to the employees in such a manner that this will
help the company in gaining competitive advantage.
Proper diversification and motivation is required to be provided to the employees, as
this will help in improving the performance management system. The motivational
factors include rewards and recognition as this will help in providing diversification in
the management. The employers need to provide constant reviews on the performance of
the employees in such a manner that this will help in understanding their views and
change the performance accordingly.
Proper growth and support is required to be provided to the employees in such a manner
that this will encourage the employees to perform better. The incentives have to be
provided to employees, as this will improve the performance of employees. The
performance management helps in understanding the different requirements of the
employees.
Conclusion
Therefore, it can be concluded that performance management plays a vital role in the
performance management of the employees in organizations. The different issues and facts have
been described in the case study and it has helped in understanding the core issues in the
respective company Samsung. The issues have been identified effectively in order to provide

8HUMAN RESOURCE MANAGEMENT
recommendations to make the performance management effective in nature. The human resource
management has to be managed in such a manner that has helped them in making employees and
employer aware about the performance appraisal forms that can be used in different departments.
It has been seen that performance management system helped in improving the overall
performance of organization along with employees. The recommendations have been provided as
this can help the company along with the employees to improve their overall performance in an
effectual manner. Proper development and learning has been provided and included in the
organizations as this helped in improving the performance by providing rewards to employees.
The reward management has been included as the recommendation for the entire organization as
this can motivate employees to perform well and there will be no such kind of biasness in the
entire organization. Lastly, theories of performance management have been used in respect of the
company and this helped them in gaining competitive advantage.

9HUMAN RESOURCE MANAGEMENT
References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Arnaboldi, M., Lapsley, I., & Steccolini, I. (2015). Performance management in the public
sector: The ultimate challenge. Financial Accountability & Management, 31(1), 1-22.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource
management. Kogan Page Publishers. (Brewster et al., 2016)
Gerrish, E. (2016). The Impact of Performance Management on Performance in Public
Organizations: A Meta‐Analysis. Public Administration Review, 76(1), 48-66.
Kamoche, K., Siebers, L. Q., Mamman, A., & Newenham-Kahindi, A. (2015). The dynamics of
managing people in the diverse cultural and institutional context of Africa. Personnel
Review, 44(3), 330-345.
Kristiansen, M., Obstfelder, A., & Lotherington, A. T. (2016). Contradicting logics in everyday
practice: The complex dynamics of performance management and professionalism in
Norwegian nursing homes. Journal of health organization and management, 30(1), 57-
72.
T., & Kor, Y. Y. (2015). Advancing the human capital perspective on value creation by joining
capabilities and governance approaches. The Academy of Management
Perspectives, 29(3), 296-308.

10HUMAN RESOURCE MANAGEMENT
Ringov, D. P., Liu, H., Jensen, R., & Szulanski, G. (2017, January). Adaptation and Unit
Performance in Replicating Organizations. In Academy of Management
Proceedings (Vol. 2017, No. 1, p. 12258). Academy of Management.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Schaltegger, S., & Burritt, R. (2014). Measuring and managing sustainability performance of
supply chains: Review and sustainability supply chain management framework. Supply
Chain Management: An International Journal, 19(3), 232-241.
Sharma, A. (2017). A study on the effect of performance management and its effect on
Organizational Effectiveness with special reference Third sector organizations using
System Dynamics: A Contingency theory approach. Research Journal of Humanities and
Social Sciences, 8(2), 109-115.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.
Todorović, M. L., Petrović, D. Č., Mihić, M. M., Obradović, V. L., & Bushuyev, S. D. (2015).
Project success analysis framework: A knowledge-based approach in project
management. International Journal of Project Management, 33(4), 772-783.
Van Der Aalst, W. M., La Rosa, M., & Santoro, F. M. (2016). Business process management.
Van Dooren, W., Bouckaert, G., & Halligan, J. (2015). Performance management in the public
sector. Routledge.