Human Resource Management at Samsung Group - Essay Example

? Part A: According to the principles of organizational psychology, an organization does not only achieve success by relying on the structure of the market, and organizational strategies, but also on the capabilities of its human resource personnel (Ashkanasy, 2012). Companies that achieve success in a business environment are the ones that treat their employees as the most important assets of the organization. Dessler, Reka and Cole (2011) define human resource management refers to the strategic management of organizations employees, who play an important role in meeting the strategic objectives of the company under consideration. Take an assumption that employees within a company have their own goals, and personalities. On this basis, employees cannot be perceived as part and parcel of the organization (Dressler, Reka and Cole, 2011). The principles of human resource management hold that the company should enact group and individual psychology for purposes of making these employees to strive in achieving the goals of the company. On this basis, human resource management aims at achieving the strategic goals of an organization by retaining, attracting and developing the talents of its employees. Dressler, Reka and Cole (2011) observe that human resource management acts as a link between the employees and the management of the organization. Human resource management helps an organization to develop strategies that will assess the various needs of its employees, and thereafter develop methods that will make these employees view their positions as part of their everyday responsibilities (Fudge, 2012). On this basis, human resource management is a very important element in an organization because it creates loyalty amongst the employees of the organization improving their efficiency in their work place. As a result of this improved efficiency, the organization will most definitely improve its production, and performance within a given market. Dressler, Reka and Cole (2012) believe that human resource management aims at achieving the following objectives; Recruitment and Retention of employees. Development of the various skills of the employees, to conform to the needs of the company. Samsung is an organization that has a well developed human resource strategy. For instance, the company has a human resource department, which is charged with the responsibility of identifying talented individuals to work within the company (Chang, 2012). The company has a human resource development center, which is tasked with the responsibility of training its employees on how to meet the objectives of the organization. The center is also responsible for developing the skills of the various employees that the company employs. This is for purposes of ensuring that these skills are effectively utilized within the company (Fudge, 2012). The human resource development center is also responsible for identifying the various needs of the company’s employees, and methods of satisfying those needs. This is because the aim of this process is to create loyalty amongst its employees; as a result there will be an increased efficiency in their roles. Chang (2012) observes that the company has a reward system, where employees are recognized for their performances, and rewarded by the organization. The rewards can either be monetary, or take the form of promotions within the organization. As a result of this policy, the employees of the organization are always working hard, with the hope of getting a promotion, or a reward. These human resource strategies by Samsung have made the company to be one of the leading electronic companies in the world. Part B: Samsung Group is a company from South Korea, with a global presence. The head quarter of the company is in Seoul, in a town referred to as Samsung. Samsung has an interest in the food processing sector, the electronics industry, insurance, and the retail industry. In 1987, the company operated under four business groups which are the Hansol Group, CJ group, Shinsegae group, and the Samsung group (Chang, 2008). After the 1990s, the company has increased its global presence, and is most notable for the sale of electronics. These electronics range from television sets, mobile handsets, and semi-conductors. The sale of electronics is a very important source of the company’s income/ revenue. As of 2012, Samsung was the largest information technology company in the world. Samsung is a very important company to the South Koreans, producing 17% of the country’s GDP (Chang, 2008). On this basis, the company has a considerable influence on the culture, media and politics of the South Koreans. The company has the following values (Chang, 2008); The development of skills and career. Developing and maintaining high quality ethical practices. Teamwork, dignity, respect and an entrepreneurial spirit. Social responsibility. The following are the objectives of the company; To maintain its leadership in the electronics market. Building of strategic alliances with other like minded companies in the industry in which it operates. Continuous investments in the facilities, employees, and their distribution systems. SWOT Analysis of Samsung: Strengths: i. The company offers a wide range of products and this includes mobile handsets, televisions, memory cards, and various home appliances. ii. The company holds one of the largest global market shares. For instance, it has the second largest share of the mobile market; this is after taking some of Nokia market through innovation and improvement of technology. iii. The company enjoys the benefit that comes from its diversity in the work force. These people come with various experiences which are crucial for the company in developing its marketing strategies. iv. Samsung has a very strong brand value which has been increasing in strength for over the last three years. v. Samsung has taken advantage of the emerging markets such those of China and India to invest in their economies. For example, the company has a manufacturing plant in India, and this leads to a reduction in the operational costs and logistics of the company. Weaknesses: i. The introduction of a new series of the organizations smart phones has lead to the cannibalization of its own market. That is customers are no longer buying some of its products, instead they are buying their new products. ii. The company depends so much on software companies, to supplement its hardware productions. iii. The company has a shortage of skilled designers who have the capability of designing their products to the satisfaction of its customers. iv. The products of the company are difficult to use, and this gives companies such as Nokia advantage in the market. For instance, in the Indian market, Indians still prefer products from Nokia because of the features that make it easy to use them. v. It has a number of old employees who are unable to work efficiently within the company. This is particularly in South Korea, where there is a shortage of labor. The productivity of these employee are low, and as such, the company might fail to achieve its objectives. Opportunities: i. Emergence of new markets such as those of Thailand, Vietnam and India provides it an opportunity to expand its operations. ii. Opportunity to partner with other global companies for purposes of using their distribution channels to effectively market and sale its products. Threats: i. Fierce competition from companies such as Apples who are constantly improving their products. ii. Terrorism is a threat to its businesses because it destabilizes the economy of a country. iii. The changing demographics is also a threat to the operations of the company. The population will always change when they are migrating to look for other opportunities. On this basis, the company has to develop other marketing strategies of capturing the new demographics. iv. Increased diversity can also be a threat to the organization, because this people of a diverse culture might find it difficult to adapt to the cultural values of the organization. These organization cultures might be conflicting with their cultural values. How the Organization Responds to Challenges: From this SWOT analysis, it is possible to denote that the challenges facing Samsung are inadequate skilled personnel, aging employees, changing demographics, and increasing work force diversity. For purposes of addressing these challenges, the company seeks to contract some of its important operations that it has failed to find highly skilled professionals to work in it. For example, the company relies heavily on third parties for computer software’s. This is because it is unable to develop its own software, for lack of skills. Take for example the computer products of Samsung. The company has a partnership with Microsoft so that users might be using the software’s of Microsoft through their computers. To address the problems of changing demographics, the company must have a flexible marketing strategy that will adapt to whichever demographic factors that they encounter. Part C: The Legal Environment: The constitution of Canada delegates the legislation of labor to the provincial governments. Each and every province in Canada has its own labor laws that govern the relationship between employers and workers (Dressler, Reka and Cole, 2011). For example the province of labor relations of the province in Alberta are defined by two main legislations, namely the employment standards act, and the labor relations code. These two laws have forced human resource managers to develop policies that do not breach these laws (Hebdon and Brown, 2012). Employment Standard Act of Alberta, Canada establishes the minimum standards of work in areas such as earnings and wages, hours of work, holidays and vacation, overtime, and termination of employment. These laws have implications on how an employer will treat a person below the age of 18 years. For instance, this act defines an adolescent as a person who is of the ages of 12 to 14, and a young person to be of the ages of 15 to 17 (McNamara, 2009). However, the minimum standard of employment applies to all employees regardless of their ages. Dressler, Reka and Cole (2011) observe that this includes the right to vacations, the minimum wage bill, and a notice of termination. This has great implication to the human resource management, and in formulating their policies. For example, the minimum wage bill for most employees is 9.95 dollars. The Human resource staff will develop a policy that reflects and satisfies these provisions set forth by the law. Division 2 of the labor relations code in Alberta outlines the relationship between the employers and the employees. Division 2, 21 of the act denotes that an employee has a right of participating in a trade union that operates under the law (McNamara, 2009). Policy makers will therefore allow their employees to join trade unions that advocate for their rights. The employers are not supposed to victimize anybody who joins the union. This law also prohibits discrimination in the work place. It prohibits employers and trade unions from discriminating an individual based on his or her affiliations to a particular trade union. Policy holders will therefore have to contend with the fact that their employees have a right of joining any trade union, and they must not be victimized in any manner. These labor legislation guides employers on how to relate with their employees in regard to the joining of trade unions, strikes, collective action negotiations, and certification. In case of a breach of these laws, then there is a penalty to be instituted against the offender. References: Ashkanasy, N. M. (2012). Experiencing and managing emotions in the workplace. Bingley, U.K.: Emerald. Chang, S. (2008). Sony vs. Samsung: the inside story of the electronics giants' battle for global supremacy. Singapore: Wiley. Dressler, G., Reka, M., & Cole, N. (2011). Management of human resources - In-class. Toronto: : Pearson Education Canada. Fudge, J. (2012). Constitutional labour rights in Canada: farm workers and the Fraser case. Toronto: Irwin Law. Hebdon, R., & Brown, T. (2012). Industrial relations in Canada (2nd ed.). Toronto: Nelson Education. McNamara, J. (2009). Worker co-operatives and employment law in Canada. Halifax, N.S.: Social Economy and Sustainability Research Network, Mount Saint Vincent Universit Read More