Human Resource Management at Samsung - Assignment Example

Human Resource Management at Samsung Lecturer’s Due Introduction In the near past, human resource management assumed a key position in the world of business and organisation management due to the ongoing concerns about world competition, the internalisation of I.T and the productivity of labour (Wilson, 2005, 107). These market imperatives require that company managers should identify, analyse and implement one or, preferably, more human resource strategies in order to prosper. The application of classical ways of handling organisation employees stands as obsolete. For that reason, managers decide to set particular policies and practices, which aid in quality performance from the workforce. For an industry to harness the full potential of its employees as a way to succeed in the competitive world, it must alter three factors of managerial control which are; business design, culture and HR practices and policies (Sims, 2006, 34). Currently, several global companies such as Samsung restructured their practices proving a more autonomous environment in order to structure the intangible aspects of the workplace (Truss, 2012 p.266). These intangible factors include beliefs, norms and values. The aim of the essay below is to discuss the strategic human resource management of the world’s largest company Samsung group. The study involves identifying; analysing and evaluating the human resource strategy applied and connect it to HR theories and models. It includes looking at how Samsung implements vertical integration in their human resource department. The second aim for the study is to identify some of activities and approaches the global firm implies, which is a way to concur with the strategy the human resource department implements. The objective of the discussion involves identifying and defining the issue at hand. Second, clear comprehension of the concepts, models and theories of strategic human resource management in Samsung. Finally, critical assessment and understanding of the models and theories of strategic human resource management featured in the organisation. Strategic Human Resource Management at Samsung Electronics For some years, there is a noteworthy rise in the expansion of interest towards strategic management (Cooke, 2003 p.45). The interest leads to the enhancement if concern by various organisation functions towards their responsibility in strategic management process. Therefore, the human resource management became integrated to the strategic management procedure by the development of a new principle referred to as Strategic Resource Management (SHRM). SHRM refers to all the activities impacting the behaviour of people in their efforts to create and implement a business tactic (Henderson, 2011, p.67). Strategic human resource management contains four main attributes, which include: organisation level, focus, roles and framework. All four characteristics align themselves with the vertical integration of the SHRM in the management strategy (Baranzini, 1990, p.297). For the purpose of the Samsung electronics company, the theory of concern is the vertical integration. Conceptualized by Torrignton and Hall, the vertical integration theory contains five sections (Torrington, 2008, p. 43). First, there is the separation section where there is no relationship between the organisation strategy and the human resource stratagem. The second section involves the ’fit’ level where individuals identify HR strategy as part of the company strategy. In the third level, the human resource strategy is essential for communication and debates. The fourth level recognises both strategies as a whole, where their association is powerful and have robust connections. The final level of the vertical integration theory shows that the HR strategy drives the organisation strategy (Foss, 2000, p.350). The theory functions appropriately with the ‘best-fit’ approach, which contains a number of models. Example of these models includes both lifecycle and competitive advantage models, where the level of vertical integration of the HR and organisation strategy is parallel (Wilton, 2010, p.507). The best-fit approach emphasises on the relationship between HR strategy and achievement of corporation goals considering the external environment. It is apparent that the two models involved need an addition of other models in order to function properly and efficiently after assessing the best-fit approach (Menard, 2008, p.325). It is important to link some of these concepts with the Samsung Vertical Integration after discussing the theory of vertical integration. Samsung’s vision involves being the leader in the Digital Convergence Revolution, with the objective of being among the top three in the world. The mission to carry out the vision engrosses the use of product and technology to create new lifestyles and businesses, service opportunities and product (Mun, 2010 p. 106). The company’s HR strategy involves concentrating on the most talented, committed and skilled workers, inclusive of the management team (Varma, 2013 p.57). The strategic human resource management approach used focuses on employees’ commitment to the objectives, practices and policies. Individual affiliates of the workforce need to collaborate to attain mutual reinforcement in order to cope with the changing environment. From the top to bottom, Samsung sets its roots deeply in talent and considers it as the most significant aspect towards quality performance. The electronic manufacturers identify and recruit their employees based on talent, commitment and skills (Chang, 2011, p.62). It creates a pool of talented programmers, gamers and software developers (Lee, 2006, p.48). The reason behind that is that the organisation believes that people with such attributes are open to innovation and vision. The global company recognises and places the talented, skilled and committed workers at the top to offer a competitive advantage. Based on the commitment, the firm considers it as a ladder towards success and is an essential attribute to all the employees at all levels of the company. A person’s dedication to his or her work dictates how much competent he or she is at the work place. Finally, skilled workers also hold a significant position in the industry (Michell, 2010, p.78). The company appreciates and advocates for professionalism at the workplace and people who are creative and quick at problem solving. The organisation aims at being competitively advantaged by strategically concentrating on employee talent, skill and commitment (Knowles, 2005 p.99). Samsung human resource department has a number of practices it applies as a means of implementing the strategies. First, it established a Human-Tech Thesis Prize (HTP). HTP aids in nurturing talents and motivate employee to come up with new ideas. The goal for the prize is to explore for innovative and self-driven young people with I.T talents capable of lifting the industry’s name (Roll, 2006, p.154). It also encourages research and increase awareness on the significance of technology in the society (Michell, 2011 p.201). Additionally, the prize has gone beyond enhancing talent at the company level. It has also allowed potential employees at both high school and college level to develop their talents, and enrich research in science and technology. Second, the firm invests in its employees. In a bid to enhance both skills and commitment, the firm offers to train its personnel. That provides both motivation and development of new skills. The design centre staffs go abroad and get a chance to work together with famous talents. Additionally, Kun-He- Lee launched a program in which great designers came to educate the employees. On the other hand, the overall Samsung tactic involves efforts such as product development and employee cohesion as a way to meet customer needs (Delios, 2012, p. 222). The three fundamental dimensions, which are quality, time-to –volume and simplicity in carrying out business, aid in implementing the strategy. The stratagem also stresses on team cohesion in carrying out organisation activities. To some level, assignments dished out the employees are mostly temporary and circulate among the workers. Through that, the company functions as a group and allows quick problem solving. In addition to that, the firm needs to work quickly in coming up with new products due to the volatile characteristic of the products. Similarly to the strategic human resource management approach implemented, the company strategy also involves a number of practices, which assist in achieving the company strategy. First, there is the participation of employees in community activities in order to enhance cohesion. Samsung Electronic registered 1500 of its employees in volunteer groups, partaking in several volunteering activities (Carroll, 2010, p.67). They also take part in the charity walks to raise money for the needy. Such activities enhance the ability to work together as a team towards problem solving and also as a way to attain customer needs. In addition to that, the company also strengthens its communication in order to allow efficient transfer of information between members of the organisation (Drori, 2013, p.45). That creates a proper working environment and supports cohesion. Second, the company improves product quality by applying quality management practices. Samsung Electronics Company conducts a series programs to enhance the capacity of the workforce. In order to ensure that employees provide quality performance, the management encourages completion of tasks appropriately. The business also has a reliable laboratory that is well equipped, which aids in research development and allow assessment of technology and identification of flaws. Particularly, the firm operates unique labs for materials, packaging, semi-conductors, noise and compatibility to ensure the best quality (Steers, 2013, p.167). Finally, as a way to enhance product development and also address the needs of the clients, the organisation works towards developing product safety. The industry aims at producing items that have met international standards and are safe for human use. Samsung has its products tested by twenty seven testing authorities in twelve countries. In total, the firm holds credentials from 40 laboratories, testing battery, telecommunication and safety of using the product. Link between SHRM and Corporate strategy The two strategies above stand as the SHRM and the company approach respectively. Based on the vertical integration theory and model, these two independent strategies provide a mission for the department and company visions. The Human resource partition needs to have its own strategy that aids it to succeed as an element that represents the workforce of the entire firm (Truss, 2012, 212). It applies the best-fit approach, where both the SHRM and the company strategy work harmoniously and revolve around the same aspects, which are product development and improved performance among employees. For example, the human resource department concentrates on employee commitment, skills and gift, which allows combined problem solving and team work (Griffin, 2012, p.66). A second example of how both strategies link is by the fact that the HR department searches for talent, skills and commitment, which are vital in innovation and product development. Samsung products have a small life cycle; therefore, they need progressive upgrading in order to stand out in a competitive market (Griffin, 2012, p.68). According to the vertical integration theory, the business ought to identify both the human resource management and corporate strategy as one. Therefore, in Samsung Electronics, a number if practices link both strategies together. Certain practices connect company strategy to employee talent, skills and commitment. Some of these practices include employee development, training and valuing of employees. Employee development associates corporate strategy to the human resource management strategy that revolves around nurturing employee talent. In a situation where talent is scarce and opportunity is plentiful, Samsung believes its employee’s morale and motivation increases when the firm appreciates and values the human capital employed. The employees also feel more motivated when there are challenges that stimulate critical thinking. Both accreditation and a challenging environment provide a suitable environment for identifying and maintaining talent (Farroll, 2006, p.44). Accreditation refers to recognising and rewarding any talents identified in the business. Appreciation may pose as a promotion, a certificate or trophy. Through accreditation, the talented people in the industry may decide to retain their positions in the firm, while people who have not yet discovered their talents may find an opportunity to do so (Roll, 2003, p.156). On the other hand, challenging environment provides employees with the chance to challenge their capabilities and in the process; people get to learn about their talents (Peng, 2013, p.295). Nurturing both new and old talents is a crucial aspect for the business since it aids in innovation and efficient problem solving. Therefore, employee development is a practice carried out by Samsung electronics, which links the corporate strategy to the human resource management. The firm needs to achieve product development stratagems by achieving HR strategies. For every business to prosper and to frequently ensure it maintains its competitive edge, it needs to train its employees. Training is one corporate action that aids in linking the corporate strategy to the HRM approach. The company needs product development and team cohesion, which requires a skilled workforce. Commodities at Samsung Electronics have a small product life cycle; therefore, the firm needs to advance its technology regularly (Stewart, 20082008, p.354). Samsung electronics invests in its employees by offering to train them and develop some learning programs. In addition to internal education, the management also gives people a chance to study outside. For example, the design employees get an opportunity to work with some of the famous talents in the world of software development. Kun-He Lee, who was the CEO of the company, launched a design revolution, where he invited IBM’s Tom Hardy from the United States to come and teach some of the employees on how to create new things. The training and experience gained, helps in improving the skills among employees; therefore, increasing the number of skilled personnel in the organisation. Occasionally, the employers dish out a number of assignments which circulate among the staff affiliates, who endeavour to come up with resolutions to the problems as a team (Mergers, 2013, p. 176). Highly skilled and motivated staff is an added advantage to the entire firm as in ensures there is quality product development and team cohesion at the work place. Problem solving is also a valuable skill in an employee, but when all employees decide to handle an issue together, it provides togetherness. Samsung Electronics human resource department focuses on skilled workers. For that reason, employees need to enhance their abilities to show competency (Selmer, 1995, p.97). A company needs to value the work of its employees and recognise it if they want quality performance (Evans, 2008, p.140). Every human being works best if people know and appreciate the work done since it boosts self-motivation. Through motivation, an employee fully commits his or her efforts towards the achievement of the business goals. For example, through a survey carried out by Samsung, the management found out that a number of their employees stay committed to the firm due to the development and maintenance of an extraordinary environment (Yusuf, 2003, p.272). Some context attributes such as accepting people from diverse cultures and respect of human rights reinforces employee commitment to the workplace. Additionally, through promotions and rewards, the company appreciates the human capital employed towards the success of the entire business (Meyer, 2005, p. 67). The human resource management approach requires active workers, which the firm achieves by valuing its personnel. Commitment has some of its own benefit such as quality performance that aids in achieving the corporate strategy, which involves product development. Furthermore, a devoted worker is a happy worker; therefore, it creates room for teamwork leading to team cohesion. Conclusively, valuing of employees is a practice that advances commitment, which is necessary to achieve the ultimate company targets. Conclusion In conclusion, from the text above the audience learns much about the Strategic Human Resource Management approach employed by one of the world’s leading electronic company. With reference to the vertical integration theory, which most 21st century companies apply, Samsung Electronics came up with a satisfactory plan that involves focusing on employee talent, skill and commitment. It also carries out a number of practices such as valuing of employees, training and employee development, which aid in connecting the HRM strategy to the corporate strategy. These aspects give the business a global competitive advantage to the company over some of its competitors such as APPLE and SONY. 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