Report on Samsung's Human Resource Management and Reward Strategies

This report examines Samsung's human resource management (HRM) practices, specifically focusing on the rewards offered to the mobile division employees in 2015 despite poor performance. The report highlights the importance of employee performance and motivation in achieving organizational goals. It identifies key problems such as lack of motivation, team spirit, employee turnover, knowledge gaps, diversity challenges, employee relationships, and discriminatory practices. Furthermore, the report discusses potential solutions, including effective communication, diversity management, performance management, identification of learning and development needs, motivational strategies, and fair reward systems to address these issues and improve employee performance and retention. The report emphasizes the need for Samsung to adopt fair and consistent HRM practices to foster a positive work environment and enhance overall organizational performance.

RUNNING HEAD: Human Resource Management
Human Resource Management

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Executive summary
This report has been initiated with a motive to develop knowledge of the rewards which are
being offered by Samsung to the mobile division employees despite of the poor performance in
2015. Performance of the employees is dependent on the performance of the employees and
quality of the employee base of the organization. Focus of every organization is on enhancing the
performance of the employees for the attainment of desired outcomes. Rewards play vital role in
shaping the performance of the employees. In the case of Samsung, rewards have been offered to
the employees of mobile division even when the division was in loss. This was done with a
motive to boost the morale of the employees for enhancing their performance.
There are various challenges which have affected the performance of the mobile division
of Samsung. There are different problems which has affected the performance and these
problems are lack of motivation, lack of team spirit, employee turnover, lack of knowledge,
diversity as a challenge, employee relationships, discriminatory practices and lack of motivation.
Different solutions have been discussed which can be used for resolving the problems. These
solutions include effective communication, diversity management, performance management,
identifying learning and development needs, motivation and rewards, performance appraisal and
employee engagement.

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Table of Contents
Introduction......................................................................................................................................2
Identification of the problems..........................................................................................................3
Solutions for resolving the problems...............................................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
This report has been prepared on the topic “Human resource management”. The discussion will
be made regarding the rewards offered by Samsung to the employees of the mobile division
despite their poor performance in the year 2015. Performance of the employees is the key
determinant of the performance of the organization or the department of the organization. It is
essential for every organization to focus on the performance of the employees, monitor their
performance and use motivation as an approach for enhancing their performance. Every
organization must offer rewards to the employees in a fair manner for maintaining a healthy
environment at the workplace (Pourrashidi, et. al., 2017).
In this report, a case of Samsung has been discussed. In this case, Samsung has offered
rewards to the mobile division employees despite their poor performance in 2015. According to
this case, Samsung has offered a maximum bonus to the employees of the mobile division for
their contribution in managing the operations of the division while facing various challenges.
This was done with a motive to motivate the employees of the mobile division for engaging in
the operations of the division and enhancing the profitability of the division. Various challenges
have been faced by the mobile division in the year 2015. These challenges include increasing
competition in the business environment from the Chinese vendors and changing technology.
The bonus was offered at different rates to the different divisions of Samsung. This has created
hustle among the different divisions of the organization. The focus of Samsung will be on
offering proper compensation to the employees (Carlon, 2016).
This report will discuss the various issues or problems identified which could have
affected the performance and employee base of Samsung due to the different rate bonus offered

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to the employees. It will also discuss the practical solutions which can be adopted by Samsung
for the purpose of coping with the issues or problems.

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Identification of the problems
Samsung is operating in the global market and is offering a wide range of products to its
customers. During the year 2015, the performance of the mobile division of the Samsung. The
bonus has been offered at the rate of 50 % of the salary of the employees of the mobile division
employees (Samsung, 2018). Other divisions have been offered a bonus at different rates. This
has created dissatisfaction among the employees of Samsung. Different problems have been
identified which could have affected the performance and employee base of Samsung due to the
difference in the bonus rates. These problems are discussed below:
 Lack of motivation: the main reason behind the poor performance of the mobile division
of the Samsung is the lack of motivation. Motivation is an important aspect which
enhances the satisfaction level of the employees. The bonus is being offered at different
rates to the employees of different divisions. This has affected the satisfaction level of the
employees of different divisions of Samsung. Employees of mobile division are being
offered a bonus at 50 % despite the poor performance in the year 2015. Increase in the
profits was due to the cost-cutting exercises used by Samsung. Satisfaction level of the
other employees got affected due to the unfair bonus offered to the employees of the
mobile division (Beker & Smidt¸2016).
 Lack of team spirit: the performance of the mobile division has fallen due to the lack of
team spirit. Employees of every division must focus on providing quality services so as to
enhance the performance of the division for contributing towards the performance of the
organization. Dissatisfaction among the employees of the different divisions has resulted
in negative impact on the team spirit among the employees.

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 Employee turnover: employee turnover is an important concern for every organization.
An increase in the employee turnover rates results in financial impact, impact on the
reputation of the organization and increase in the efforts. It is essential for every
organization to retain the existing employee base for gaining a competitive advantage
over the others in the industry. Dissatisfaction among the employees can result in an
increase in the employee turnover rates of Samsung. The decision regarding the issue of
50 % bonus to the employees of the mobile division has been taken for retaining the
employees and motivating the employees (Walsh, et. al., 2010).
 Lack of knowledge: knowledge and skills are the crucial aspects on the basis of which
performance of the employees is determined. For the attainment of the objectives or
targets set, Samsung needs to be a focus on the skills and knowledge possessed by the
employees. One of the issues which have affected the performance of the mobile division
in the year 2015 is lack of knowledge. Competition in the business environment has
increased due to the entry of the Chinese vendors. Knowledge of the competition in the
business environment needs to be developed. Samsung has to take initiatives for the
purpose of enhancing the knowledge of the employees of the different divisions.
 Diversity as a challenge: diversity is one of the most common aspects of the workplace.
Every organization has to focus on the management of the diversity in an effective
manner for the accomplishment of the objectives of the business. Different employees are
working together and due to the differences in the class, age, gender, culture and
language differences may arise. These differences have affected the performance of the
mobile division of Samsung (Stankiewicz, 2015).

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 Challenges related to the relationship with employees: Samsung has to focus on
developing a healthy relationship with the employees so as to enhance the
communication process and performance of the employees. Issues have been faced due to
the lack of effective relationship between the employees and organization. Samsung has
not used effective motivational approaches for enhancing the satisfaction level of the
employees. This has affected the relationship between the employees and Samsung.
Relationship of Samsung with the employees got affected due to the differences in the
bonus rates offered to the employees of different divisions (Batti, 2014).
 Lack of monitoring: performance or activities of the employees need to be monitored at
regular intervals so as to eliminate the adverse impact on the performance of the
employees. Proper monitoring will help Samsung in measuring the performance of the
employees and controlling their performance by guiding their efforts in the right
direction. Performance of the mobile division was poor in the year 2015 and proper
monitoring should be there for keeping a check on the performance of the employees of
the mobile division (Tang & Rose, 2014).
 Discrimination while offering rewards: unfair bonus is being offered to the different
divisions of Samsung which has increased the dissatisfaction among the employees of
other division. Employees of the other divisions are treated in an unfavorable manner as
despite poor performance, mobile division is being paid bonus at a high rate. It is
important to adopt fair practice so as to encourage employee participation and
contributing to the satisfaction level among the employees (Banerji, 2013).

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Solutions for resolving the problems
For resolving the issues related to the human resource, there is a need to adopt strategies acting
as a solution for the issues. Samsung has faced different issues or problems which need to deal in
a proper manner. The main reason behind the fall in the profits of the mobile division of
Samsung is the increase in the competition level. It is vital to cope with this challenge for the
purpose of solving the issues faced. Different solutions can be adopted by Samsung for the
purpose of enhancing the performance and managing the human resource in a better manner.
These solutions are listed below:
 Effective communication: communication is an important element which plays a vital
role in enhancing the flow of exchange and managing the performance of the employees.
Communication process needs to be developed in an effective way so as to ensure that
the issues faced by the employees are highlighted in front of Samsung. Communication
will help in the analysis of the dissatisfaction among the employees of other divisions of
Samsung. Regular meetings can be conducted for promoting communication between the
employees and organization. Communication process will help Samsung in explaining
the expectations of the organization to the employees. Development of a better and
effective communication process will promote team spirit and unity among the
employees (Gopalakrishnan, 2012).
 Management of diversity: diversity management approaches can be used by Samsung for
promoting team spirit and managing the individuals with different background and
culture properly. Diversity management will help in managing the employees of different
divisions of Samsung by promoting teamwork. Different strategies can be adopted by

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Samsung for the management of diversity. Interaction among the employees needs to be
promoted for enhancing the communication among the employees of different divisions.
Diversity management will promote coordination and communication among the
employees of different divisions (Minavand, et. al., 2013).
 Performance management: every organization has to focus on the performance of the
employees so as to contribute to the success and growth of the business. Performance
management will help Samsung in focusing managing the performance of the employees.
This approach will help Samsung in managing the performance of the employees which
will ensure the attainment of the objectives of the organization. High-performance culture
can be developed with the help of performance management. This approach will make
the employees responsible for their performance and attainment of high-quality
performance (Hodson & Sullivan, 2012).
 Identification of learning and development needs: learning and development are crucial
which determines the skills and knowledge of the employees. In this dynamic business
environment, there is a need to identify the learning and development needs of the
employees. This identification of the learning and development needs will help in
identifying the areas which can be developed for developing the knowledge and skills of
the employees. Training sessions can be conducted by Samsung at regular intervals for
meeting the development needs of the employees. With the increase in the level of
competition, there has been a rise in the need for learning and development programs
(Dhauya, 2015).
 Motivation and rewards: motivation can be explained as the reason for the actions or
behaviors of an individual in a particular manner. Motivational approaches can be used

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for the purpose of encouraging employees to perform better. Rewards can be offered to
the employees so as to motivate them. Samsung is offering rewards for motivating the
employees. But this approach has backfired on Samsung as the rate of bonus is different
for different divisions. Rewards should be offered to the employees in a fair manner so as
to ensure that the employees are satisfied with the organization. Samsung can implement
motivational approaches and offer rewards for gaining support from the employees
(Armstrong, 2012).
 Performance appraisal: performance of the employees need to be monitored at regular
intervals. Measurement of the performance will form a base for the rewards or incentives
which need to be offered to the employees. Samsung can use performance appraisal
methods for measuring the performance of the employees and encouraging them to
enhance their performance for the attainment of the targets. Performance appraisal
includes a review of the performance, evaluation of the performance and discussion
regarding the career. Performance appraisal can be used as a method for the measurement
of the performance of the employees (Bakanauskienė & Brasaitė, 2015).
 Employee engagement: every organization needs to engage the employees in the
operations of the business. Samsung can use employee engagement for engaging the
employees in the operations of the business. This approach will help in enhancing the
contribution of the employees towards the performance of the organization (Werner, et.
al., 2012).

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Conclusion
Thus, from the above discussion, it can be summarized that it is essential for the organizations to
adopt fair practices for the employees. There are various issues or problems which may arise due
to the lack of effective and fair practices for the management of the employees. Samsung has
faced these issues to the decision taken regarding the difference in the bonus rates offered to the
employees of different divisions. There is a need to analyze the impact of these problems on the
performance of the employees. Strategies need to be adopted for the purpose of resolving the
issues faced by Samsung. These problems and solutions have been considered in this report.

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