Samsung's HRM Challenges: Strategic Analysis of Performance Issues

This report provides a strategic analysis of Human Resource Management (HRM) within Samsung, focusing on performance management issues highlighted by a 2015 news report concerning bonus distribution amidst declining mobile handset sales. The report identifies key issues such as biased decision-making, lack of strategic clarity, and unfair reward distribution, leading to potential employee dissatisfaction and turnover. It analyzes these issues through the lens of expectancy theory and goal-setting theory, recommending strategies for improved employee motivation, diversified training, and transparent performance evaluation processes. The aim is to assist Samsung in enhancing employee performance and retention by fostering a fairer and more motivating work environment. Desklib offers similar solved assignments and past papers for students.

Running head: STRATEGIC ANALYSIS OF SAMSUNG
Strategic Analysis of Human Resource Management in Samsung
Name of the Student
Name of the University
Author Note

1STRATEGIC ANALYSIS OF SAMSUNG
EXECUTIVE SUMMARY
The following report is composed on the basis of the news report of Samsung that was
published in 2015, after the decline of the sales of the mobile handsets that are manufactured
by the company. The employees who have been working in the concerned departments had
been continually provided with their incentives and the increased levels of the motivation that
was provided by the management of the company did foster the continuity of the operations
of the concerned department of the organization. The report deals with the various issue that
the company has been facing in the matters of the performance management. The report
proceeds to provide some practical recommendations regarding the management of the
performance of the employees.

2STRATEGIC ANALYSIS OF SAMSUNG
Table of Contents
Introduction....................................................................................................................3
News report in brief.......................................................................................................4
Key Issues......................................................................................................................4
Analysis of the news story.............................................................................................5
Recommendations..........................................................................................................7
Conclusion......................................................................................................................9
References....................................................................................................................10

3STRATEGIC ANALYSIS OF SAMSUNG
Introduction
Samsung is a pioneering organization in the field of electronic devices that includes
various products like the mobile phones, tablets, television sets and other such products. The
organization had failed to perform well in the fiscal year of 2015. Despite the low
performance of the organization, the employees had reported the receipt of the highest
amounts of the bonuses that they were supposed to receive. The bonus payments were
extended towards the employees on the basis of the contribution of the concerned employees
towards the sales and the operations of the company. The main motive of the management of
the organization behind awarding the employees with the bonus was to maintain the
motivation and the satisfaction levels of the concerned employees and to keep the company
functional.
The following report aims to discuss the issues that arose within the company due to
the improper distribution of the bonus that has been delivered by the management of the
company towards the staff that had been serving the company in the various departments
within the company. The issues that have been put forth by the case study are the imparity in
the distribution of the financial bonus that was granted by the company in the fiscal year of
2015. This might lead to disputes among the employees who have been serving at the various
departments of the company thereby affecting the relationships that exists among the
employees of the organization. The dissatisfaction that has been growing among the
employees might lead to the higher turnover of the company which might hamper the
operations of the company in the future days to come. The report attempts an analysis of the
issues and proceeds further to provide recommendations that might help the concerned
business organization to retain the employees of the organization.

4STRATEGIC ANALYSIS OF SAMSUNG
News report in brief
According to a report by Carlon, (2018) the department of the company dealing with
the mobile handsets had demonstrated the poorest performance. The company was reported
to have awarded 10% bonus to the employees who have been serving in the consumer
division, 21% bonus towards the employees of the TV staff department and around 20%
bonus to the staff serving in the departments related to the departments of the network
business. However, the staff serving the battery department of the company had not been
credited with such huge bonus amounts. The battery department staff had been awarded only
3% of the bonus amount for the entire fiscal year despite the capping of 50% bonus.
Key Issues
The given news story majorly deals with the various issues regarding the performance
of the employees of Samsung and the company as a whole. The major issues that are put forth
in the given news story are enlisted below.
 Display of biased approaches in the decisions. – This might be considered as one of
the various issues that might affect the employees of the organization. The given news
story sheds light on the fact that the concerned organization had taken biased
decisions regarding the payment of the bonus to the employees of the different
divisions of the company. These biased decisions might affect the morale of the
employees who have been serving the concerned organization.
 The lack of the clarity in the chosen strategy. – The unclear strategy that is being
followed by the company has led the management of the company to form notions
that are not in accordance to the with the requirements that are stated by the
employees. The company shows low analysis of the requirements of the clientele that
is served by the company. The lack of the clear analysis on the part of the

5STRATEGIC ANALYSIS OF SAMSUNG
organization has led to the formation of a number of issues which is reflected in the
low sales of the products of the company in the concerned market.
 A fair amount of bonus was not provided. – The entire staff of the organization did
not receive a fair amount of bonus. The huge differences in the amounts of the bonus
that was received might have hampered the effective performance of the concerned
employees. The morale of the employees serving the organization in the various
departments was heavily affected by the unfair treatment that had ben meted out to the
employees.
 The unfair distribution of rewards among the employees. – The greatest issue that
has been troubling the workforce of the company is the issue that pertains to the
unfairness in the distribution of the bonus among the employees of the organization.
this has led to an unrest among the employees of the organization. The motivational
approaches that were introduced by the company had also faced a backlash due to the
various due to the lack of the fair distribution of the bonus among the employees who
have been serving in the various departments of the organization.
Analysis of the news story
The issues that have been faced by Samsung are majorly linked to the management of
the performance of the employees who have been serving in the various departments of the
organization. There are a number of theories that might relate to the ways that might help to
deal with the poor management of the performance of the workforce of the company in the
various departments that operate within the organization. The most favorable strategies that
might be adapted by the organization in order to deal with the issues that are faced by the
company in the recent times are discussed in the following section.

6STRATEGIC ANALYSIS OF SAMSUNG
The expectancy theory is one of those theories that might be implemented by
Samsung Group in order to deal with the current scenario that the company has been facing.
The theory was proposed by Victor Vroom in the year 1964 (Parijat & Bagga, 2014). This
theory has been put to use by various organizations in order to improve the performance of
the workforce of the company and in the process improve the performance of the company as
a whole (Miner, 2015; Lazaroiu, 2015). According to Shields et al. (2015), the motivation
that is targeted to the employees in order to assist the effective improvement in their
performances depends majorly on the satisfaction that is derived by the concerned employee
while being involved in the concerned job. It is essential for the employees of the
organization to modify their behavior so that they may effectively achieve the goals that are
set by the management of the concerned company. The expectancy theory, in the opinion of
Sheehan (2014), lays its belief in the fact that the basis of the overall performance delivered
by the individuals relies on the expectations that pertain to the events that might occur in the
future. According to the expectancy theory stated by Vroom, it may be stated that the rewards
that might be awarded motivate the concerned employee to put forth the best of his
performance and the performance of the employee acts as the driving force for the effort that
is put in by the concerned employee (Caillier, 2014; Barrick, Mount & Li, 2013). The
employees of an organization must put in the best of their effort to achieve the performance
goals that are set by the organization. The rewards that are extended towards the concerned
employee are based on the achievement of the set goals.
The other theory that might be used by Samsung in order to cope up with the situation
that the company is facing in the recent times is the motivation and goal setting theory. This
theory was suggested by Locke and Latham during the late years of the 1960s (Bach, 2013;
Kehoe & Wright, 2013). The motivation and the goal setting theory states that the motivation
that is provided to the employees who have been serving an institution depends heavily on

7STRATEGIC ANALYSIS OF SAMSUNG
the appropriate feedback from the concerned management (Janssens, & Zanoni, 2014; Cania,
2014). The theory further states that the management of an organization might also attempt to
motivate the employees who have been serving the concerned organization by setting goals
that are very clear for the employees to understand and follow. This theory relates to the
varied results that might be achieved that might transpire from the setting of the necessary
goals on the basis of the performance that has been delivered by the concerned employee
(Muogbo, 2013; Kyndt et al., 2013). The propounders of this theory opine that the employees
generally tend to perform better under the situations that involve goals that are generally
difficult to achieve (Kramar, 2014; Locke & Latham, 2013). It has been observed that the
employees who have been assigned harder and more difficult goals tend to outperform the
employees who have been assigned goals that are easy to achieve.
The above discussed theories are some of the theories that might be adapted by the
company in order to boost the performance of the employees who have been serving the
organization.
Recommendations
The aforementioned company might be provided with a few recommendations in
order to help them to improve the performance of the concerned employees and help the
management to provide the concerned employees with the needed motivation without any
biasness based on any factor that might be operating within the organization. The various
ways that may be used to motivate the concerned staff and manage the performance delivered
by them in an effective manner are enlisted below.
 The proper ways to allow diversification as well as provide motivation to the
concerned employees. – The management of a concern must provide the concerned
employees with the with the proper amount of motivation in order to ensure the

8STRATEGIC ANALYSIS OF SAMSUNG
improved performance of the organization as a whole. The motivation that is to be
provided to the concerned employee might be in the form of recognition of their
service and granting rewards against the same. This might help the enhancement of
the diversification among the staff of the organization as well as the management. The
staff needs to be regularly updated on their performance through the various methods
of reviews from the concerned management. The regular reviews might help the
concerned staff to align their goals to the overall goals of the company thereby
leading to the overall improvement in the performance of the company.
 The concerned staff must be provided with the necessary training. – The
employees serving the organization must be provided with necessary training. The
entire staff of the organization must be well aware of the process that is followed in
order to evaluate and manage the performance that is delivered by the staff. The
developmental training that is to be provided to the staff should help the concerned
company to gain the competitive advantage.
 The performance evaluation form must be properly designed. – The performance
development form should be developed in a manner that allows the reviewing of the
performance of the employees of the different departments of the company.
 The management of the performance of the employees must be in accordance to
the goals set by the company. – The establishment of a proper linkage between the
goals of the company and the performance of the concerned employees might assist
the improvement of the overall performance of the organization without any
indication of biasness in the act.
 The company should be supportive of the growth of the employees. – The
employees must be provided with the necessary incentives in order to boost the
performance of the concerned employees.

9STRATEGIC ANALYSIS OF SAMSUNG
Conclusion
In lieu of the above discussion, it might be concluded that the management of the
performance of the employees of an organization tend to play a huge role in the improvement
of the overall performance of the concerned company. The various facts and issues that have
been discussed in the news story has helped to form a clearer understanding of the key issues
that Samsung Group of companies has been facing during the recent times. The above report
might safely conclude that the management of the performance of the staff might help in the
improvement of the overall performance of the organization. The suggested
recommendations might help the staff as well as the management of the company to improve
the performance of the concerned staff. The most effective way of achieving the sought
improvement is awarding the concerned staff with the rewards against the effort that they
have been putting in for the concern.

10STRATEGIC ANALYSIS OF SAMSUNG
References
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Barrick, M. R., Mount, M. K., & Li, N. (2013). The theory of purposeful work behavior: The
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employee performance: A preliminary study. Public Personnel Management, 43(2),
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Cania, L. (2014). The impact of strategic human resource management on organizational
performance. Economia. Seria Management, 17(2), 373-383.
Carlon, K. (2018). Samsung rewards Mobile division employees despite poor performance in
2015. Android Authority. Retrieved 5 February 2018, from
https://www.androidauthority.com/samsung-rewards-mobile-division-employees-
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11STRATEGIC ANALYSIS OF SAMSUNG
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