Human Resource Management Report: Samsung Case Study Analysis

This report provides an analysis of Samsung's Human Resource Management (HRM) practices, focusing on the company's reward structure and its impact on employee relations and turnover. The report begins with an executive summary and an introduction to Samsung, outlining its objectives and background. It then delves into key HRM topics including employee relations challenges, managing diversity, performance management, learning and development, motivation and rewards, and employee turnover and retention. The analysis highlights how Samsung strives to build a healthy work environment, manage diversity, and foster employee growth through various programs. The report also examines the company's approach to performance management and the role of motivation and rewards in enhancing job satisfaction and reducing employee turnover. The report concludes with a discussion of the challenges and benefits of Samsung's HRM strategies, offering insights into the importance of transparency, individual performance evaluation, and fairness in reward structures for maintaining a motivated and productive workforce. The report uses the provided news story to analyze the company's practices and offers a comprehensive view of Samsung's HRM approach.

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

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Executive Summary
The purpose of this report is to analyse the reward structure of the organisation is performed.
Samsung has gained its popularity in the electronic and technology department with the
improved technology that they had showcased in the Smartphone business. The organisation
gained global recognition with their cutting edge technology and design. This assignment
follows a news story published on the organisation, where their reward structure is stated and
the approaches of the organisation towards their employees are showcased. An introduction
to the organisation and its objectives are followed by some of the basic topics in Human
Resource Management. It is derived that motivation is one of the key components of job
satisfaction which in turn lowers the employee turnover rate. This motivation can be in a
form of appreciation or rewards.

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Contents
Introduction................................................................................................................................3
Background of the organisation.................................................................................................3
Employee relation challenges....................................................................................................4
Managing diversity.....................................................................................................................5
Performance Management.........................................................................................................5
Learning and development.........................................................................................................6
Motivation and rewards..............................................................................................................7
Employee turnover and retention...............................................................................................8
Conclusion................................................................................................................................10
Reference List:.........................................................................................................................11

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Introduction
Every business organisation has an operation division and the management division.
There are people who run the operations of the business and there are leaders and managers
to help them to achieve the goals of the organisation. The management department that is
going to be discussed in this report is Human resource. The HR department of an organisation
is not only responsible for appointing people in specific job but is also responsible for the
healthy safety and other aspects of an employee as well. The topic that is going to be
discussed in this report is how rewards and motivations are related to job satisfaction and in
turn impact the turnover rate of the employees. Firstly a brief description of the company will
be followed by the topic like: employee relations challenges, managing diversity,
performance management, career development and training, motivation and rewards lastly
employee turnover and retention rate (Guan et al., 2016).
Background of the organisation
Established in 1938, Samsung is a South Korean multinational organisation over the
years with building technological innovations in the telecommunication and electronic
industry the company has gained recognition and goodwill from consumers all over the world
(Samsung.com, 2018). Samsung is a believer in the human resource of the organisation as the
innovation and creativity of the people associated with the company are responsible for the
success and growth of the company (Samsung.com, 2018).
The motto of Samsung:
“Inspired by people, creating the future”.

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The aims and objectives of the organisation are: To ensure a sustainable future for the next
generation, To innovate and create new and improved products and services, To help people
develop and grow skills and expertise, To provide the consumers with high quality products
and services at a reasonable price and to develop a valuable relationship (Samsung.com,
2018).
Employee relation challenges
Strategic Human Resource are the plans and organisations that are undertaken by the
organisation to ensure that the people who are working with the company enjoy their work
and have job satisfaction at the end of the day. Job satisfaction rate among the employees are
directly responsible for the retention rate of the employees. Samsung recognises the potential
of the human resource of the organisation and strive towards building a healthy and valuable
relationship with the employees. The Human resource department of Samsung is responsible
for building a healthy and safe work environment for the employees (Gollan & Patmore,
2013). The organisation is a multinational company and assures to comprehend with all the
regulations of the country of operation. According to the article the company has set the bar
of providing bonus to the department according to the performance of the past financial year.
The contribution of the profitability is taken as a measurement of the rate of bonus that will
be given. This is a situation that may give rise to internal conflict among the members of the
organisation and also hamper the relation with the employees as they may fee l that the
organisation is being biased. But in this case transparency of the organisation is important;
the performance measurement criteria should be clear which will answer the question of the
employees (Khan et al., 2017).

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Managing diversity
Because the organisation is multinational there is ought to be people from various
backgrounds based on their ethnicity, religion, culture etc. it is important to manage the
diversity in the organisation in order to ensure that it is viewed as an opportunity for the
organisation. For example: A person who is Indian will have an idea of the Indian culture and
needs and requirement of Indian target market which in turn will help in product development
and improvement (Bouten-Pinto, 2016). Samsung is an organisation that believes in the talent
and skill of a resource. The company ensures that the people from varied backgrounds get
due leaves and holidays based on the festivals and celebrations they have. The person are also
encouraged to treat all the staff members equally and with respect and this is why effective
interpersonal communication is encouraged, gatherings and festivals are also recognised and
celebrated in the organisation (O'Leary & Sandberg, 2017). Samsung also encourages the
employees to work together in teams or departments which have a diverse population so that
people can learn and develop their knowledge base form the colleagues. Samsung is also
known to employee people with disabilities and exceptional talents form high school. The
company views this as an opportunity for expanding the environmental spectrum of the work
environment (Sharma, 2016).
Performance Management
The news story that is being analysed states that the performance of the
department as a whole is responsible for the rate of bonuses the department is entitle. The
company despite of suffering losses in the financial year has declared bonus even for the
departments that has not contributed in the profit (Ploom & Haldma, 2013). Performance
management is not only important for the appraisal and increment of the person it is also
important as it offers the individual an idea about his or her shortcomings and strengths as

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well. The performance of the department is not only the measurement that takes place in the
company, individual improvement and appraisals are also important for the people to be
encouraged and motivated in the long run (Gerrish, 2016). The company understands that it is
important to have clarity and transparency in the process of performance management so that
employees do not feel that the organisation and the management are being biased with a few
people. This gives rise to an unhealthy internal work environment. The company follows the
model of performance management to analyse the individual performance of the employed it
states that performance is dependent on organisational strategy and situational conditions, on
the other hand aspects like expertise and skills develops and impacts the behaviour of an
individual that drives the objective of the company as well as individual goal. Balanced
scorecard is one of the performance management tools that are employed by the human
resource department (Syed & Xiaoyan, 2013).
Learning and development
For an individual it is important to grown and improves in life in order to move ahead
towards a fruitful future. Job satisfaction among an employee depends upon a lot of aspects
and career development is one of the key aspects. An employee always looks for a better
opportunity and if he or she does not get enough growth opportunity in the organisation he is
already working in they will look for opportunities outside the organisation which in turn will
increase the employee retention rate (Kyndt et al., 2016). Samsung has always been an
organisation that encourages learning and innovation as the fundaments of the organisation is
based on innovation for which constant learning opportunities are provided to the employees.
Samsung has several internal and external learning and training programs for the people to
grow in their career, for example in 2016, around 34 thousand students from over 54
countries received support from Samsung (Plant et al., 2017). The program was developed

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according to the country in which the process was initiated and the people who were
associated were also helped in getting a job in the specialised field (Milligan et al., 2015). In
Strategic human resource management it is important to provide opportunities for the people
to grown in their career. In 2015 Samsung ranked third in talent development in awards
organised by the Association for Talent Development. The focus of the organisation has been
on supporting the leadership education programs. In order to promote collective intelligence,
the company has employed an internal system, MOSAIC, for developing a dynamic learning
system (News.samsung.com, 2018).
Motivation and rewards
Motivation is the process by which an individual or a group can be encouraged and
inspired to achieve a goal. Motivation can be intrinsic which means that an individual can be
motivated form within a person to do a certain task or take responsibility. Motivation can also
be extrinsic where the person can be motivated with rewards and external efforts. According
to the X and Y theory developed by Douglas McGregor, there are positive and negative
approaches of employee towards the work. In theory x he states that an employee is never
willing to work on his own, there is no internal motivation that drives the operations of the
business ((Lawter et al., 2015). Rewards or penalties are some of the tools that can be used
by the management of an organisation to ensure that the employees keep up their
performance. This theory also states that there is little or no ambition or growth aspiration
among the people of the organisation (Yoon et al., 2015). Change and responsibilities are
generally avoided by the people; hence they always require to be directed by someone. On
the other hand, theory Y states that employees are usually motivated and like doing their job,
the objective of the organisation are aligned with the personal interest of the employees
(Kushwaha & Lodhwal, 2016). Samsung is an organisation that motivates the people not only

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through appreciation but also through rewards. In order to maintain the motivation level of
the employees the organisation despite of not achieving definite profit margins decided to pay
bonus to the employees depending upon the performance of the department (Gîlmeanu,
2015).
The topics that are discussed above are some of the aspects that are related to job
satisfaction. Managers and leaders of the organisation motivate the people by recognising and
appreciating the efforts of the employees. Motivation is also achieved when problems and
grievance of the staff are heard and immediately steps are taken in order to solve these.
Samsung ensures that the people are happy to work for the organisation and they get their due
respect and recognition in the course of their tenure (Renard & Snelgar, 2016).
The drawbacks of this system that has been identified form the article is that reward
structure should be also be based on the individual performance, when appraisals take place
individual performance of the employees are evaluated, therefore it will be fair if the people
are also provided their rewards on the basis of their own performance. This will instantly
improve the motivation and productivity as the person will be inclined to perform better.
The fairness of the structure is also questionable as the profitability of a department
does not only depend on the performance of the employees; several other external and
internal factors are also responsible.
Employee turnover and retention
Employee turnover is the rate at which people join and leave the organisation. If the
rate is high then the management should start analysing the reasons for which people leave
the organisation frequently. Some of the aspects that are incorporated by the organisation to
ensure that the retention rate is low are: employee relationship, support and feedback from

9Human Resource Management
the
management, recognition and rewards and lastly proper direction. The Human Resource
Department of Samsung realises the effort an individual puts in order to lead the objective of
the organisation hence the company provides every possible support to the employee so that
they can develop and grown in their career. The organisation also maintain a safe and healthy
work environment for the employees and offer the right job to the right person so that they do
not have an issue with the task and the responsibilities itself (Cloutier et al., 2015). It is one
of the common grievances among people that they do not like their job, But at Samsung the
HR department before recruiting recognises the area of expertise of the people and then allot
them position. Here is a graph that shows the number of employees working for Samsung
(Silvennoinen & Nori, 2017).
Figure: Number of employees in Samsung
Source: (Samsung.com, 2018)
With the help of effective leadership, stimulating work and rewards the company ensures that
the retention rate is high (Nica, 2016).

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Conclusion and Recommendation
It can be concluded from the assignment is that Samsung is an organisation that not
only recognises the importance of the human resources in the success of the organisation;
they employ policies and changes in the organisation which will benefit the employees. The
news story that is being reviewed in this assignment states that the organisation keeps up with
the interest of the employees. The company focuses on the skill development of the people so
that they can perform better and the later their performance is also rewarded with the help of
bonuses and appraisals. The company ensures that all the procedures are clear and there is no
favouritism or biased decision. Motivation and appreciation is also recognised to be one of
the key instruments of employee retention therefore it can be recommended that the
organisation use this as a process of encouragement. It can be recommended that the
company can focus on the individual performance of the employees instead of focusing on
the department as the profit of a department does not only depend on the performance of the
employees.

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