Analyzing Samsung's Change Plan Using the Burke-Litwin Model

This analysis delves into Samsung’s recent initiatives aimed at fostering long-term sustainable growth through innovation and structural change. By applying the Burke Litwin Model, the assessment examines how external business environments influence Samsung's mission and strategic goals. Leadership dynamics are explored to understand their role in guiding organizational transformation. The study further investigates changes in organizational culture, systems, management practices, work unit climate, task alignment, individual values, motivation levels, and overall performance. These dimensions collectively highlight Samsung’s efforts to shift from a hierarchical structure towards a more horizontal one, fostering autonomy, creativity, and employee satisfaction. This holistic approach aims to enhance Samsung's competitiveness on the global stage by aligning its organizational framework with evolving business demands.

RUNNING HEAD: MANAGING ORGANIZATIONAL CHANGE
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Managing Organizational Change
A case Study of Samsung
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Contents
Introduction....................................................................................................................................................2
Company’s Overview....................................................................................................................................3
Change Model Theory...................................................................................................................................4
Assessing Key Factors...............................................................................................................................5
Putting the Burke-Litwin Change Model to Effective Use........................................................................7
SWOT analysis..............................................................................................................................................9
Strengths....................................................................................................................................................9
Weakness.................................................................................................................................................10
Opportunity..............................................................................................................................................10
Threats......................................................................................................................................................11
Potential area of resistance...........................................................................................................................11
Recommendations and Conclusion..............................................................................................................11
References....................................................................................................................................................12
Annotated Bibliographies............................................................................................................................14
Appendix......................................................................................................................................................18
Change plan grid:.....................................................................................................................................18
Data Analysis Burke Litwin Model.........................................................................................................18

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Introduction
Change management is a structured approach ensuring a smooth implementation of
changes that help in achieving organizational goal. These are range of process that helps in
incorporating an effective change. This helps i n gaining potential market advantage and helps
an organization in realizing its goal. The theories regarding organizational change management
are important enough to incorporate change. Change does not take place in isolation. It therefore
affects the whole organization system. For managing change, it is important to implement an
effective business planning and managing process. The purpose is to gain an effective business
related insight to manage the changes in an effective way (Armenakis & Harris, 2009). Change
management focus on people to ensure process of change. In order to understand specific
changes, it is evident to define the objectives in order to manage organizational effectiveness.
Changes in the business environment are important for meeting the individual needs as per the
growing business needs. Every individual company has to manage the changes that are taking
place in the business environment. The possibility regarding the market change can be gained by
implementing an effective change. Managing a change in a proactive way is important for
benefitting the organization (Arnold, 2015). This can only be gained by framing the business
strategies according to appropriate market needs. Adopting organizational change is stressful for
the organization in order to manage changes appropriately. Fundamentally an organizational
change helps in introducing an appropriate change. This change helps in introducing effective
change management theories in order to gain effectiveness (Bargal & Schmid, 2012). There are
various change management theories that help in ensuring effectiveness. This is important
enough for realising individual confidence and capability to gain market capacity. With this
mindset, it is possible for an individual to gain competitive advantage. There are various change
management models that will be appropriate enough to manage the changes in an effective way.
Company’s Overview
Samsung Group is a South Korean Conglomerate located in the Samsung Town, Seoul.
The company was founded by Lee Byung-chul in year 1938 as a trading company. The company
diversified into different areas like food processing, insurance, securities and retail. Samsung
entered the electronic market in late 1960s. Samsung has a strong influence on the South Korean
economic development. The company produce around one-fifth of the South Korean Total

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exports. Samsung achieved growth through exports. Slowly and gradually the company realize
the importance of growing internationally. Through its effective market strategy, Samsung was
able to engage more consumers while integrating its global marketing and promotional
strategies. The strategic plan of Samsung is to meet customers want and increase technological
innovation. Current market is very competitive creating ample of market opportunities. Samsung
has a brand vision that is totally different and unique from its other competitors. They are leading
the world by digital convergence revolution. This is based on managing the demands of the
consumer in an effective way (Benn, Dunphy & Griffiths, 2014).
The report is based on Samsung’s change activities and actions that have been taken
recently in order to gain competencies. Further diagnostic tool is used to understand the change
management process in the organization. It is important for a company to manage the changes in
an effective way so as to gain the benefit in order to gain market competencies. Changes are
inevitable in nature and it is important to derive effectiveness through using an effective change
model analysis (Cameron & Green, 2015). Samsung has incorporated many changes in the
organizational culture due to growing necessity. Being an international organization, it is
important to incorporate changes in order to gain competencies. The implementation of the
diagnostic model is important to understand the relationship in between the external changes that
has been taken place in the company. It is moreover important for an organization to gain
competencies in order to manage the overall aim. This is important for gaining the futuristic
growth in the organization while managing the changes at the same time. This is important for
an organization in dealing with consequent issues taking place in the organization. This is
relevant because of the increasing role and capacity of the organizational growth and
development. In a Multinational organization it has become important to implement the change
management concept in an effective way. This will however help in gaining the market
competencies (Boonstra, 2008).
Change Model Theory
The Burke-Lit win change model is based on establishing a cause-and-effect relationship
between 12 organizational dimensions. These factors are important for understanding

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organizational change. For managing changes in the organization, it is important to understand
the whole process to make steady changes.
Assessing Key Factors
The Burke-Lit win change model focus on changing the performance of a team or
organization by developing link in between performance and the internal and external factors.
All this affects the performance. Burke-Litwin change model is based on evaluating the
organizational as well as environmental factors. These factors are important to ensure a booming
change. The Burke-Litwin change model helps in managing the framework, comprising the
moving factors that can be manipulated to guarantee a smoother transition. The overall purpose
is to change the process to another establishing links amid the twelve dimensions.
There are 12 dimensions that are forming basic philosophy in order to form a change
model. The external environment is responsible for introducing changes that makes an
organization to change its mission, culture, leadership and its operating strategies These factors
act as an important parameter to meet the target
Below mentioned are the relevant points that help in analyzing the 12 dimensions
identified by the Burke-Litwin change model. These factors are used practically in order to
implement the changes in an effective way. Change management focus on people to ensure
process of change. In order to understand specific changes, it is evident to define the objectives
in order to manage organizational effectiveness.

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1. External Environment: For an organization the external environment is important for
managing impact on the organization in order to identify their direct and indirect contact on the
organization goals. These are important for managing the organizational
2. Mission and Strategy: For an organization it is important to manage the vision, mission
and the strategy of the organization. All these are provided by the top management to the middle
and the lower management in order to examine employees’ point-of-view about them.
3. Leadership: The purpose of the organization is to identify the leadership structure of
the organization. It needs to identify the chief role models in the organization. The organizational
leadership is important in identifying the important aspects related to company (Hayes, 2014).
4. Organizational Culture: The organizational culture is important for information on the
unambiguous as implied rules, regulations, customs, principles and values. This is important for
managing the organizational culture in order to improve the organizational performance
(Cummings & Worley, 2014).
5. Structure: In order to manage the structure that confined to hierarchical structure.
These are important to structure focusing on the responsibility, authority, communication,
decision making. In order to gain organizational competencies, the structure is important
between the people (Chao, Lee & Ling, 2012).
6. Systems: These are important Systems that include all types of policies and procedures
regarding people and the operations of the organization. An organization requires procedures to
manage the goal (Huczynski & Buchanan, 2010).
7. Management Practices: These are the basic practices that are been followed in an
organization. This practice is important for the mangers to conform the organization’s strategy in
dealing to employees and the resources (Goetsch & Davis, 2014).
8. Work Unit Climate: This is important to manage the collective study in order to
manage the organizational climate. This kind of relationships helps in managing the organization
with their team members and members in order to organize the organizational goals (Jones,
2010).

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9. Tasks and Skills: It is important activity that involves understanding specific job
position demands and skills and knowledge. This is important for managing the task
responsibilities of related job position. This is important to manage the jobs and employees
expectation (Organisational development & design explained .2017).
10. Individual Values and Needs: The dimension is important for seeking employee’s
opinion about their work. This activity is important for identifying the excellence factors that
result in job enhancement and better job satisfaction (Palmer Dunford & Akin, 2009).
11. Motivation Level: The purpose is to improve the motivation level of the employees.
This is important to determine willingness in putting efforts in order to achieve organizational
goals. It is important for an organization in gaining competency.
12. Individual and Overall Performance: It is one of the important factors that take into
account in order to gain a level of performance, on entity and organizational levels, while
gaining productivity, superiority, competence, and budget and customer satisfaction (Rothwell et
al 2009).
Putting the Burke-Litwin Change Model to Effective Use
Burke-Litwin model is important in shaping the organization in order to gain an effective
strategy in managing change. It’s good for Samsung to manage the organization in all the twelve
dimensions identified by the model. The purpose of the change model is to deal with the critical
aspect in order to manage the staff and collaborate to attain the new strategies and goals to
manage the changes in an effective way.
For Samsung, the most challenging part is to implement the changing organizational
culture. Globalization has created both opportunities and threats for the multinational
organizations. For that organization who is working globally, it has become evident to
implement effective organizational policies. These policies are important for managing the
changes in an effective way. Samsung has to grasp the international culture in order to remain
competitive. This is relevant from the point of view of growth and development that is been
taking place in the organization since a long time (Storey, 2007). Samsung is facing challenging
in terms of implementing international culture in its working. It has become important to

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implement the changes a company sees at an international level. These changes are important to
be incorporated in the organizational structure while managing it. Samsung has a large market
and it is gradually expanding. In order to manage changes it is important to implement the
changes in a better way. This will help in gaining competencies in order to ensure effectiveness.
Samsung has to implement effective cultural by incorporating the Burke-Litwin change model.
This model will help in analyzing the changes in the most effective way. This is how Samsung
can ultimately meet its target to gain market competencies (Turner et al 2008).
Samsung Electronics has announced on June 27 that it would reform its human resources
management system. The company has decided to shift the role-centered system in order to
improve its global competitiveness. The overall motive is to develop a creative and horizontal
organizational culture. These changes will be helping company in simplification of job ranks and
adoption of nonhierarchical titles. This has helped in managing the organizational goals in order
to develop competitiveness across world. With a rising competition, it has become important for
the company to use effective organizational policies to overcome the hurdle (Jin-sik, 2016).
The purpose was to develop changes In order to incorporate changes in order to gain
market competencies. These changes are helpful in bringing needful changes. These changes are
managing the human resource practice. It is moreover known for its strength in overcoming
crises and quantitative growth. However the company is seen weak in innovation based on the
autonomy and creativity due to its rigid culture. Due to this reason, the company is planning to
introduce liberal organizational culture. This will help the company in managing the
organizational goals. It is moreover important for managing the organizational task in order to
develop competitiveness (Jang, et al 2002).
Recently the Vice Chairman Lee of Samsung Group had hosted a debate on the topic of
“Innovations for a Global HR Policy” on Mosaic, the company's online community forum last
July in order to introduce changes in the organizational culture. Over 26,000 employees took part
in the debate. They gave around 1,200 ideas and suggestions. Ideas were collected to officially
declare “Start-up: Samsung Culture Innovations” in March. A team was created to look after the
innovation and development in the Human Resource Department (Daft, 2007).

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The new policy was developed to simplify the job ranks in Samsung from seven-stage system of
direct, assistant director, manager, assistant manager, and employee 1~3 to a four-stage system
(CL1~CL4) of career development depending on the development of job competency.
The focus was to develop a friendly organizational culture in order to boost growth. The
employees at each rank has to call the other employee with his/her name followed by the suffix
"-nim,” The company has now introduced a policy to freely decide on a horizontal and
respectable title as per the nature of their task. Though, they have to call the head of teams,
groups, parts, and executive directors with their titles. The purpose was to create a friendly
organizational culture but with certain restrictions in order to foster growth (Škerlavaj et al
2010).
Another interesting feature introduced by Samsung is change in its meeting culture and
reporting culture. The purpose was to introduce meeting culture where only those that are
actually essential are there, liberally articulate their thoughts. This will provide employees with
liberty to take decision to reach a conclusion. The purpose of the plan was to recommend
meetings end within an hour.
Another feature was to introduce a culture that helps in balancing work and life.
Currently the employees are facing an issue due to unnecessary overtime. There is a culture
where the employees are asked to stay late at the office just because a supervisor or boss has not
left. There are also plans to allow employees to take leave any time of the year. Moreover the
employees will be allowed to wear shorts in order to work comfortably (Joe & Lim, 2009). The
final purpose here is to manage human resources management system in order to gain quick
decision making. This is done in order to implement decisions and encourage communication in
order to seek innovation. This system launched from March 2017.
SWOT analysis
Strengths
 It has a significant market share with a wide product categories
 The brand stands at second position in the market share in mobiles.

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 The brand is efficient enough in terms of design features and technology.
 The brand is known for developing innovative technology in the Asian market by setting
manufacturing plant in India and reducing logistics and supply chain costs.
 In the past 3 years the brand value has increased by 80 percent (Lockwood, 2004).
Weakness
 The launch of Samsung Smart phones has caused cannibalization
 The demand for LCD is expected to decrease in coming future.
 Chinese products focus on economies of scale and hold a large market share.
 Samsung is a hardware leader but the company is dependent on others for its software
needs (Stone, 2015).
 The Online stores and an increasing competition from the Chinese brands are affecting
the brand value. The online stores are giving better deals due to no distribution channel.
Opportunity
 A wider opportunity in terms of creating market position while entering into unrelated
diversification
 The open organizational culture will help in creating better opportunities for the brand.
 The wider growing international market will be creating better opportunism in order to
manage growth. This is important to manage the organizational growth and develop
effectiveness.
 The purpose is to manage the organizational growth and develop purpose in gaining
market competency (Burke, 2017).
Threats
 Samsung is facing threat due to the other product lines and failure of product line that has
an impact on the brand dilution

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 The company is unable to focus at one place due to diversification of products.
 There are foreign players that have already started gaining market share in Asian market.
 There is a constant Threat from Chinese products.
 The consumer electronics and home appliance in low cost strategy causing competition in
market (Stone, et al 2016).
Potential area of resistance
There can be resistance in implementation of changes due to difference of opinion. The
employees will be finding difficulty in managing changes. Employees might resist in the initial
stage that can create problem. For gaining competency, it is important to implement changes and
to generate competencies. Changes are inevitable in nature and it is important to derive
effectiveness through using an effective change model analysis. For incorporating changing
across world, it is difficult in managing changes across all the companies in the world. The
human resource department will find difficulty in managing changes. For multinational
organization, it is difficult for the HRM department to incorporate changes The purpose was to
introduce meeting culture where only those that are actually essential are there, liberally
articulate their thoughts. This will provide employees with liberty to take decision to reach a
conclusion (Martins & Coetzee, 2009)
Recommendations and Conclusion
It is recommended to manage the changes in an effective way by developing a better
relationship in employees. The change management theory will help in understanding the
changes that are taking place in order to develop a friendly organizational culture. Adopting
organizational change is stressful for the organization in order to manage changes appropriately.
Fundamentally an organizational change helps in introducing an appropriate change. As per the
Burke and Litwin model, the changes will be introduced in 12 key ways, as identified. This will
bring about a series of changes in the structure, practices and the system of the organization. The
changes will be helping in managing the changes in an appropriate way. This is important for
incorporating changes in a well-defined way. Slowly and gradually the company realize the
importance of growing internationally.

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