HR Policies and Practices Within Samsung

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HR Policies and Practices Within Samsung Free Essay

Companies today encounter strong competition in any market as the business world continues to receive an influx of new entrants. One of the effective methods that have been deployed in response is the recruitment of the right employees in terms of both quality and quantity (Valentine, Mathis & Jackson 2013). As a result, many companies have made a huge investment in their human resource management department to help them lure the right talent. It is through the policies implemented by the HR department that a company can ensure that the employees' experience is motivating thus making them more productive (Dowling, Festing & Engle 2013). These are the results of qualified HR engagements that have seen many companies utilize the tool of managing its employees as a means of safeguarding its perpetuity and its capacity to remain competitive. It is with a well-managed workforce that a company can enjoy the eventuality of a cohesive team working in line with the company’s interest (Gilmore 2013). A point to note is that all firms are different; therefore, there is a need to ensure that only the right HR approach is utilized. Similarly, the aim at hand is analysing Samsung’s human resource practices and the impact they have made on the company.

Background Information

One of the key ideologies that Samsung relies on is the need to ensure that every decision is based on values. It is the assertion of the company that the only way to succeed in life is acting on a solid foundation of strong values (Samsung 2016). Besides, the enterprise is also centred on people. The element of fairness is also an integral part of the company’s operation where the intention is to ensure that the business runs on a model that gives people equal opportunities (Samsung 2016). These are the elements that clearly demonstrate that in the company, the management is aware of the importance of investing in people.

HR Policies and Practices Within Samsung

One of the key aspects of Samsung’s operation that makes its HR department critical is the fact that it is a multi-national company. It operates in 213 locations outside Korea, and 70% of its 320,000 employees work outside Korea (Samsung 2015). Therefore, in the line of ensuring consistency, a strong HR has been a mandatory tool for the company. Besides, through the due diligent application of the HR undertakings, the right environment for the employees to exercise their creativity is provided (Rothwell et al. 2012). In appreciation of this fact, over the years, Samsung has improved its HR policies and practices as means of having an enabling environment for its employees that would lead to improved output by the company.

HR Practices and Policies

A competent human resource management strategy is helpful in attracting the right employees and cautioning the company from employee turnover expenses. It has become evident that a company can remain competitive through having a workforce that is fully motivated and highly knowledgeable in their areas of specialization (Hayton et al. 2012). Similarly, Samsung asserts that it is has seen successful due to being people-centric. In staying true to this value, the company utilizes the Soft HR practices. Samsung follows the philosophy of using human talent and technology as a means of producing high-quality products to stay competitive in various markets. According to the Soft HR practice, employees are perceived as the most valuable resource within a company (Gowda 2013). The primary emphasis is put on the need to develop and nurture the employees. Moreover, in the line of ensuring that the employees are more productive, Samsung strives to provide an empowering environment that helps them be inventive in their work (Samsung 2015). It is a crucial trait for a company that depends primarily on the creativity of the employees as a means of remaining competitive in the market.

Under the Soft HR practice, there is an intentional action of the company’s management to appreciate the diversity existing in the team. The aim is to treat employees as individuals (Mondy & Martocchio 2012), where their demands are recorded and realigned to provide the most appropriate working environment. It is also a practice used by Samsung where they intentionally target diversity as a means of recruiting new talent in the line of ensuring that the company taps on as much insight as possible (Samsung 2015). Besides, the company is concerned with ensuring that there is an ethical way of employees’ engagement. The operation is based on the assertion that the interest of every employee must be safeguarded and any element of discrimination is to be eliminated (Samsung 2015). It is a crucial undertaking since the company serves different markets that have different preferences and tastes. Besides, Soft HR practices demand an organization to have a rewarding system that motivates the employees to be more productive (Decenzo, Robbins & Verhulst 2013). In such a people-centred company as Samsung, HR provides a rewarding system that incorporates both the opportunities within the company and the rewards. It is the policy of Samsung to create an environment where the employees are subjected to a performance-based evaluation (Samsung 2015).To Samsung, the use of these two variables is critical in ensuring that the employees have the self-drive to reach their full potential. Another crucial element of the Soft HR approach is the need for HR practices to guard the current interests of the company and those it will have in the future (Ognjenović 2015). In other words, the call is for the company to inspire the workforce to help the company safeguards its interest even in the long term. It is a demand that is closely adhered to by Samsung as it utilizes an approach that guards the future of the company through nurturing global talent aimed at guaranteeing innovation and creativity in all its products (Samsung 2015). Moreover, Samsung’s HR practices and policies are sensitive to the need to protect the interest of the employees as means of empowering and motivating them. These are the standards that form the Soft HR practice and it is evident that Samsung indeed utilizes the Soft HR approach (Martocchio 2013).

External Forces That Affect HR Strategic Decisions Within Samsung

Market Competition

Samsung operates in a highly competitive market. One of the key factors that influence any HR practice is the level of competition faced by a company (Armstrong 2013). Creativity is critical for Samsung since it is the primary pillar on which the company bases its competitive edge. In appreciation of this factor, Samsung recruitment process includes tapping the right candidates with a great element of diversity regarding creativity and problem-solving capacities (Samsung 2015). Moreover, to ensure that the creativity among its employees is enhanced, Samsung ensures that the employees are given the needed resources to help them expand their innovative minds. It is made possible through various practices and policies such as Creative Lab (C-Lap) or MOSAIC (Most Open Space for Advice, Intelligence, and Creativity) (Samsung 2015). Moreover, in the line of realigning accordingly to compete better in the market, the intention is to train the employees once recruited but above all provide an environment that helps the company retain the employees.

Level of Skilled Required

The company requires highly skilled labour, and this strongly influences the strategic approach utilized in the recruitment process. The nature of the skills needed by any business determines the nature of recruitment that a company can use (Ognjenović 2015). Samsung is thus concerned with ensuring that the right balance is met in respect to creative diversity. Another crucial role of HR is keeping the employees motivated (Mishra & Bose 2016), and it needs to be highly integrated into the element that touches the matter of how skills are utilized. It is a phenomenon that also makes Samsung uphold diversity in the form of gender and people with special interests. It makes the company inclusive and is critical for the existence of Samsung (Samsung 2015). It is also in line with its basic value of being a business centred on people.

Geographical Coverage

Another external factor that affects Samsung’s HR strategic decisions is the nature of its geographical coverage. With the company operating in 213 locations outside Korea (Samsung 2015), the HR docket has made an intentional realignment to ensure that the recruits are put through leadership training as means of nurturing global expertise. Besides, because it is a multi-national corporation, the HR practices are thus done in a manner that is flexible enough to accommodate different wage limits across their areas of operations. Moreover, this is also the reason the company aspires to ensure that it safeguards the element of innovation diversity while tapping into the global talent. It is a critical approach that helps the company produce items that fit different tastes and preferences around the world.

How HR Function Is Organized and HR Policies and Practices Are Delivered

Samsung’s HR function is divided into three broad branches, namely next generation leaders, performance-based evaluation and diversity, and inclusion. The company makes intentional steps to secure its competitiveness in the market through recruiting and empowering employees (Samsung 2015). The company uses an integrated model approach where all the constituency demands are upheld concurrently. Under the concept of next generation leaders, the employees are exposed to leadership traits development and potential leadership challenges. Moreover, there is also a performance-based evaluation where the employees are subjected to an objective testing process of their performance against the set goals for selecting those who deserve to be rewarded (Samsung 2015). Furthermore, there is also a branch that safeguards the spirit of inclusivity and diversity where the primary goal is to ensure that no employee is discriminated in any way. It is delivered in the form of support for gender equality and diverse support to people with disabilities.

Role and Challenges of Line Managers in the Delivery of HRM

The primary role played by the line managers in Samsung is defining and setting the Key Performance Indicators (KPI) that protect the corporate sustainability. Supporting workforce cohesion is a crucial undertaking in any company (Mat, Zabidi & Salleh 2015). In this regard, line managers in Samsung play the role of determining the KPI and the compensation for the employees and the board (Samsung 2015). Thus, based on the above obligations, the possible main challenge that lies before the line-manager is striking a balance between safeguarding the company’s interest and those of the employees and the board. Moreover, another potential problem is ensuring that the right rationale is utilized when choosing the variables for defining the elements that safeguard the company’s sustainability. It is through the identified KPI that the contribution of the HR is measured, particularly through the analysis of employees’ input that is followed by a reward (Samsung 2015). It is important to note that any evaluation of the contribution of HR within Samsung is done only on the basis of performance.


Samsung’s approach of empowering employees as a means of remaining competitive in the market is a well-calculated move. An employee-centred approach is a sustainable way of upholding the spirit of competitiveness and evidently brings huge success to Samsung (Gowda 2013). Sales have been on the rise; the company has gained 28.8% of the US smartphone market compared to Apple’s 23% (Spence 2016). Apple, on the other hand, has not been experiencing good times under the leadership of Tim Cook. It is clear that the innovation level has declined over the years and this occurrence is heavily related to its HR’s capacity to attract the right talent (Satell 2016). Therefore, Samsung should proceed with its approaches. However, in the line of remaining competitive in the market, it needs to ensure that more resources are directed toward the research and development docket to help employees expand their knowledge. This effort is crucial in ensuring that the employees are better equipped in terms of understanding various tastes and preferences. It is also the best way of meeting market demands. Moreover, it will minimize the costs of empowering employees due to the utilization of a more specific approach as opposed to the current exploratory approach.


It is evident that HR practices are providing the companies with a platform based on which they can remain competitive in the market with the help of a more qualified workforce. Moreover, through HR practices, a company can create the most appropriate culture that conforms to the interests of employees. It is evident that Samsung’s operations are centred on the principle of appreciating the crucial role of employees. Furthermore, the company utilizes the Soft HR practices where the employees are its major resource. Besides, it is clear that Samsung is eager to uphold the spirit of diversity when it comes to attracting and nurturing global talent. Samsung also utilizes an approach that appreciates the competition in the market, the level of skills required, and the demands of the vast geographical coverage. However, in the spirit of remaining more competitive, it is recommended that more effort and resources are channelled into the research and development docket to better specialize the employees’ engagements in creative and innovative undertakings.

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