Samsung: 1. Hu Man Resource Strategy and Performance

SAMSUNG
Samsung’s business strategy consists of three pillars or elements namely Effective market
readership, scanning and utilising opportunities in the market, and new product development.
A market reader can be described as a business that closely watches the market and is quick to
duplicate new products and/or introduce new features to existing products that other companies
initially introduced. Specifically, Samsung has shown itself to be successful in replicating the
design and essential features of smartphones from its’ main competitor, Apple. It was reported
that "one internal Samsung presentation from 2010 presented Samsung engineers with a step-by-
step process to try and steal so much of what made the iPhone such a special product”. (Heisler,
2016)
The second element, on the other hand, incorporates a relentless quest for current gaps in the
market and takes advantage of the opportunity with positive outcomes for the company.
Samsung, for instance, found that Asian-language speakers in particular needed a device they
could hand-write on, as drawing characters with a pen is simpler. The result was an unexpected
success with the emerging series of Samsung Note phones as a combined phone / tablet
(“phablet"). (Nisen, 2013)
Lastly, Samsung Electronics has a wide range of products covering hundreds of product lines
and is divided into three brand divisions: IT & Mobile Communications (IM), Consumer
Electronics (CE) and Device Solutions (DS). The multinational electronics company has 36
Research and Development (R&D) centers worldwide to secure the future core technology and
invested KRW 14,8488 trillion in R&D in 2015. Since 2006, Samsung has been the second
largest patent holder in the United States. Accordingly, as one of Samsung's strong competitive
advantage, new product development capabilities have been firmly established. (Samsung
Sustainability Report, 2016)
1. Hu
man Resource Strategy and Performance
At Samsung Electronics, they continue dedicating their human resources and technology to

producing superior products and services, ultimately leading to a better global society. The
company, in order to reach its full potential and the three-pillared business strategy they employ
various human resource strategies such as enhancing professional procurement capabilities by
nurturing global procurement experts and leaders and using training facilities dedicated to
supplier employees to provide free-of-charge training programs. With these kind of strategies,
Samsung becomes closer to their third goal which is new product development and even
effective market readership. Moreover, they are more able to adapt to the business environment
because of their constant trainings and updating themselves of the changes or improvements in
terms of technology. The company values their employees such that they conduct employee
satisfaction surveys for monitoring purposes and using other innovative HR practices, they build
a creative organizational culture. Another facet of Samsung’s Human Resource Management is
the Samsung Talent Review Session (STar Session). This comprehensive talent development
process helps the employees with their supervisors to design their career growth path and benefit
from career enhancement programs. Employees can apply for a wide range of human resource
development programs in line with their career development phase–MBAs, career training, and
job skill training. This talent promotion program is aligned with Samsung's Expertise
Development Process (EDP) that is tailored to all the company's staff.
2. Developing Compensation Plans
As its main compensation strategy, Samsung Electronics uses salaries. Their approach is
flexible and based on fair and transparent evaluation of performance. The compensation plan of
Samsung is being updated on changing demands. The business is based on the company's
feedback, experience, and quality of its employees. The policy on wages or cash compensation
involves minimum wages and incentives. In addition to performance based on wages, the
organization also measures the salary of an employee based on firm-specific job experience (the
quality employees have gained over time while working at the company) and firm-specific
knowledge that could promote promotion. Such a strategy helps keep the company's workers as
valued as they are. Reiterating the aforementioned business strategy of Samsung, their fair
compensation plans will push the employees to reach them.
For several reasons, this policy of compensation is appropriate. Samsung Electronics has
control over its compensation costs through the compensation policy. The ease of determining
pay ensures this control as the highest remuneration is for top performers. The use of merit as
criteria for determining the employee's pay and advancement also helps to create healthy
competition among the employees of the company which helps in adapting to the new business
environment as it is ever-changing. Moreover, the policy previously described allows the
company to achieve a balance between the needs of the employees and the financial objective of
the company. The company is also in a position to promote lasting, critical interpersonal
networks, employee attachment, and specific knowledge of the company, considering that the
salary is also market-oriented and well above minimum wage rates which is important to achieve
the business strategies imbibed in the company.
3. Personnel Planning and Recruiting
One of Samsung’s focus on Human Resource Management Strategy is Integrity

Management. This branch of Human Resource Management deals heavily on Respecting Global
Diversity. This refers to their recruitment style that focuses on hiring global employees within
the organization. It can be further described into four facets specifically recruiting and obtaining
talent, fair evaluation and compensation, respecting human rights and diversity, and Labor-
management cooperation and addressing employee’s grievances. Basically, Samsung is
employing talents worldwide. Each foreign employee is given a mentor and has a regular
meeting with the executives. Samsung believes and has seen that this kind of diversity, with
having global talents, leads to new business ideas which tackles a portion of their three-pillared
business strategy. It creates a wider range of ideas and abilities, offering greater scope for
innovation and competitive performance. BBC Business News reported that on November 2014,
Samsung kicked start the Virtual Reality market. This kind of innovation stemmed from global
talents coming together to execute an idea. Moreover, it was recently reported that Samsung had
higher profits than Apple in the smartphone industry. Another advantage from Samsung’s
strategy in Human Resource is the representative workforce. Because of their initiative on
diversity, their workforce can provide superior service because they can better understand the
needs of the customer. The diversity also answers for the gaps in the market that can be seen in
multiple lenses, touching again another pillar of their business strategy. In addition, diversity
allows for rapid responses and adaptations to change. Overall, Samsung’s goal of hiring a diverse
team look to have achieved their aim of sustainable global expansion and new business growth.
References:
Bentley, K. (2016). Samsung: Compensation Plan Outline. Compensation Management.
Dudovskiy, J. (2017). Samsung Group Report, Retrieved from https://research-

methodology.net/samsung-electronics-report/
Heisler, Y. (2016) “A look back at when Samsung copied every single thing about the iPhone”
BGR, Available at: http://bgr.com/2016/12/29/iphone-vs-android-samsung-copycat/
Nisen, M. (2013) “Samsung Has A Totally Different Strategy From Apple, And It’s Working
Great” Business Insider, Available at: http://www.businessinsider.com/samsung-corporate-
strategy-2013-3
The Samsung Electronics. (2016) Samsung Electronics Sustainability Report 2017. Retrieved
from
https://www.samsung.com/us/smg/content/dam/samsung/us/aboutsamsung/2017/Samsung_Elect
ronics_Sustainability_Report-2016.pdf. Retrieved on November 20, 2019.
The Samsung Electronics. (2017) Samsung Electronics Sustainability Report 2017. Retrieved
from
https://www.samsung.com/us/smg/content/dam/samsung/us/aboutsamsung/2017/Samsung_Elect
ronics_Sustainability_Report-2017.pdf. Retrieved on November 21, 2019.

Samsung: 1. Hu Man Resource Strategy and Performance

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Samsung: 1. Hu Man Resource Strategy and Performance

Uploaded by

Copyright:

Available Formats

SAMSUNG

At Samsung Electronics, they continue dedicating their human resources and technology to

2. Developing Compensation Plans

3. Personnel Planning and Recruiting

One of Samsung’s focus on Human Resource Management Strategy is Integrity

Bentley, K. (2016). Samsung: Compensation Plan Outline. Compensation Management.

Dudovskiy, J. (2017). Samsung Group Report, Retrieved from https://research-

You might also like