Samsung HR Practices

Samsung HR practices Summary In the recent time human resource management (HRM) has assumed new prominence because of continuing concerns about global competition, the internationalization of technology and the productivity of labor. It is argued that these market imperatives require manager to change the way in which they manage the employment relationship in order to allow for the most effective utilization of human resources (HR). Managers and academics argue that the traditional approaches to managing workers are inappropriate ‚can no longer deliver the goods. Harnessing workers full potential and producing the attitudes and behavior considered necessary for a competitive advantage require three aspects of managerial control to change: organizational design, culture, and HR policies and practice. Current managerial orthodoxy therefore argues the need for a restructuring towards hierarchical structures, an enlargement of job tasks with greater employee autonomy and managerial leadership to shape the more intangible aspects of the workplace, for examples beliefs, norms and values. 1. The strategic human resource management (SHRM) and its practice in the one of the world biggest company Samsung group. And evaluate how Samsung is practicing human resource management. 2. HR functions and various models and how Samsung adopt vertical and horizontal integration in their human resource department and then give some recommendations for Samsung according to the discussion. Key hr practices at Samsung Samsung is known for care about its employees. They give more preference to their employees. Following practices are done in the Samsung People valued in Samsung: Samsung give value to people whether they are their customers or employees. Samsung has maintained the culture of the organization and keeps the environment in which people come to Samsung and show their high level of commitment. Samsung made it easy for the people to do a business or work with Samsung. They are investing their all efforts for customer’s need. HR is involved in the placement, evaluation and reintegration of employees. Investing in people: Samsung has developed a lot of courses for Samsung employees to learn, and give the opportunities to go outside to learn .E.g the designer center staff can go abroad or have chance to work with more talent. HTP concept: Samsung establish the human tech thesis prize. The purpose of this prize was to search creative and driven young people who will lead the world of science for the future of Korea, to encourage research at collegiate level and to increase the awareness of importance of technology in society. Employee development: Samsung is in that environment where talent is scarce that’s why they appreciate their employees for their contribution and they work on the development of employees because they analyze the deficiency that their company needs employee development programs which are necessary to survive in the market . Diversity &inclusion: Samsung has a diverse culture. People with different backgrounds are connected with it. Samsung has maintained its culture and norms in such a way that everyone who is working there feels that company value them. Employees feel ownership and then employees show commitment towards organization. Respecting rights Samsung has maintained labor rights and dignity and respect of their employees . Strategic HRM model at Samsung: The concept of strategic HRM is derived from the concepts of HRM and strategy. It takes the HRM model with its focus on strategy, integration and coherence and adds to that the key notions of strategic capability and strategic fit. The following strategic HRM models are followed at Samsung. High-performance A clear line of sight exists between the strategic goals of the organization and those of its departments and employees at all levels. Management defines what it wants in the shape of performance improvements, sets goals for success and monitors performance to ensure they are achieved. Leadership from the top engenders a shared belief in continuous improvement. Focus on promoting positive attitudes, which leads to the development of a motivated and committed workforce. Performance management processes are aligned to the objectives of the organization to ensure the people are engaged in achieving high standards of performance. Capabilities of people developed at all levels to support performance improvement. People provided with opportunities to make full use of their skills and abilities. People valued and rewarded according to their contribution. High-commitment The development of career ladders and emphasis on train ability and commitment as highly valued characteristics of employees at all levels in the organization. A high level of functional flexibility with the abandonment of potentially rigid job descriptions. The reduction of hierarchies and the ending of status differentials. Reliance on team structure for disseminating information, structuring work and problem solving. Job design which increases the intrinsic satisfaction derived from work. New forms of assessment and payment systems. High involvement of employees in the management of quality. Management Treating employees as partners in the enterprise who have a voice on matters that concern them. Establishing a mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved. Role of HR function at Samsung The role of the HR function is to enable the organization to achieve its objectives by taking initiatives and providing guidance and support on all matters relating to its employees. The basic aim is to ensure that the organization develops HR strategies, policies and practices that cater effectively for everything concerning the employment and development of people and the relationships that exist between management and the workforce. The HR function can play a major part in the creation of an environment that enables people to make the best use of their capacities and to realize their potential to the benefit of both the organization and themselves. Essentially, the HR function provides the advice and services that enable organizations to get things done through people. HR should not be defined by what it does but by what it delivers. HRM and organizational performance HRM can make a positive impact on organizational performance in many ways, these are: Develop and successfully implement high performance work practices, particularly those concerned with job and work design, flexible working, resourcing, employee development, reward and giving employees a voice. Formulate a clear vision and set of values and ensure that it is embedded, enduring, collective, measured and managed. Develop a positive psychological contract and means of increasing the motivation and commitment of employees. Formulate and implement policies that meet the needs of individuals and create a great place of work. Provide support and advice to line managers on their role in implementing HR policies. Manage change effectively. Use HR Function to operate Samsung history is interesting in this regard in that the firm's founders wrote their value statement before they wrote their business plan. That is, they decided how they wanted to deal with the “people elements of the business” before they began to focus on product specifications and capital requirements. In broad terms, Samsung operational goals are the following: 1. Increase the value of the company 2. Increase market share 3. Build a company with an extraordinary work environment. 4. Achieving long-term business success 5. Ensuring that Samsung employees feel valued 6. Ensuring a sense of pride of association with the company 7. Ensuring that each employee has the opportunity to reach his/her highest potential personally and professionally 8. Generating a sense of excitement and fun. Employee benefits by Samsung Rewarding Samsung is committed to providing its staff with an environment in which they can flourish. They look for people with energy, creativity and commitment and give them the tools they need to fulfill ambitious goals, whilst striving to attain the highest standards of professional excellence and integrity. Samsung reputation as one of the world most admired employers is hard-earned. They have achieved it by offering opportunities for their people to pursue their goals, both professionally and personally. Because they operate a truly global business, they recognize the importance of diversity; of understanding individual ways of working, and how employee can complement each other to deliver outstanding results. Employee welfare Samsung helps support employees in the areas of family health, children education, housing, and retirement preparation. The Company allocates large sums of employee welfare investment to support their housing, children tuition for high-quality educational opportunities, medical treatment, and leisure activities. Employee wage and welfare The total employee wages and bonuses totaled 2.7 trillion Korean Won in 2003, 3.3trillion Won in 2004, and 3.6 won in 2005. The Company also provided benefits such as family healthcare, children education, housing, post-retirement plans, and other life needs to enhance the quality of life for each and every one of our employees. Support for housing Samsung offers housing support to suit the lifestyles of employees. Dormitories or rental apartments are provided for singles. The Company flat is also provided for employees who are transferred away from their families. Children education The Company provides tuition for the children of employee from pre-school to college. Support for leisure activities The Company provides in-house cultural programs and sports and leisure facilities, paying for full or partial expenses when employees pursue cultural and leisure activities. Medical support Top quality medical treatment, healthcare measures, and medical expenses are provided for employees health concerns. The in-house health-screening center carries out a periodic medical examination. Support for retirement So that retirees can live comfortable lives, the Company facilitates a retirement pension and other solutions. Contribution to the national economy and global communities Samsung, known to be the largest business establishment in Korea, continues to strive toward achieving high-performance with every employee accepting responsibility for the betterment of the community and the national Economy. Conclusions With the increasingly importance of human resources in modern business the management of people is highlighted to be strategic. Samsung Management Philosophy is devoted human resources and technology to create superior products and services, thereby contributing to a better global society. The strong determination to contribute directly to the prosperity of people all over the world. The talent, creativity and dedication of people are key factors to Samsung efforts, and the strides Samsung have made in technology offer endless possibilities to achieve higher standards of living everywhere. Samsung has highly focused on employees and their performance by providing benefits to employees and making them the part of the organization. Good HR practices by Samsung is a key factor of the development and capturing international markets by Samsung.