Leadership Development Plan for Samsung - Assignment Example

Leadership Development Plan for Samsung Objectives This leadership development plan aims to meet the following objectives To develop the capacity among persons in the organization to take up leadership positions Most organizations in the world, including Samsung, have a limited number of eligible persons to take up leadership positions. A 2008 study conducted by Oracle Corporation indicates that 36% of the organizations under that survey show confidence in having adequate capacity for immediate replacement of current leaders (Corporation, 2014). The diagram below illustrates the results of the survey. The impending retirement of the current leaders requires the setting of plans and actions that will ensure an effective leadership transition. According to the Price Waterhouse Coopers 2008/2009 report, 19% of the managers and 29% of company executives in various organizations are eligible for retirement in 2015. There is the need for adequate plans to replace these baby boomers without compromising organizational performance. 2. To improve the market position of the organization in electronics and mobile phone industry The mobile phone and electronics industry is becoming more competitive with time. With the establishment of more telecommunication firms, there is growing competition that requires a leadership approach in securing Samsung’s market share. The leadership strategy aims at mitigating the effects of business rivalry on the company’s revenue, and developing plans to expand the market share. The expected outcomes of the implementation of this leadership development plan include; 1. An increased number of employees with leadership skills and qualities to fill in leadership positions 2. A continuity in the growth of Samsung’s market share and an improvement in withstanding business competition Assessment of needs A labor-skills requirement manual helps in the assessment of leadership gaps in the organization. The human resource department prepares a skills inventory that takes consideration of the leadership capabilities of the workers. This achieves identification of leadership gaps in departments and workstations and helps in finding out the leadership skills or qualities that need improvement. The involvement of employees in leadership surveys will provide valuable information for assessment of leadership needs. A questionnaire on desirable leadership qualities, styles, and capacity can be of great importance in providing information on leadership requirements of the organization. This may also help in identification of potential leaders in the organization for nurturing. A review and analysis of Samsung’s revenue for the past three years will be helpful in understanding the influence of competition on the company. The trends in revenue in comparison with those of close competitors will provide insight on how Samsung is fairing on in the market. Customer satisfaction surveys will give a glimpse of the reality in how the market perceives Samsung’s products. The feedback from customers provides valuable information on the level of client satisfaction, loyalty, areas of dissatisfaction, and close substitutes they prefer (competitive threat for Samsung). This information will enable Samsung to identify the plan effectively on retaining of its clients and growth of its market share using proper strategies to outwit the identified competitors. Internal and external environment Samsung is a multinational company and conglomerate based in Seoul, South Korea. It is a conglomerate in the sense that it contains many subsidiaries and affiliates. Its top management includes the chief executive officer, the board of directors, and the United States Executive team. Samsung deals in electronics and mobile phones. Samsung vision is involves dedication to coming up with innovative technologies and use of efficient processes that unveil new markets, enhance peoples lives, and facilitate the Samsung brand as a digital leader (Samsung, 2014). Samsung values its people. Samsung is dedicated in making available to its people opportunities in order to enable them rich their maximum potential. Excellence is the main drive for any activity or product in order for the market to get the best from Samsung. Samsung acknowledges that change is inevitable and therefore it focuses on the future changes in market needs and innovatively develops mechanisms to meet those needs. Samsung believes in integrity, which is, carrying out operations with ethical considerations of fairness, complete transparency, and respect for all. The organization values co-prosperity. This involves creating opportunities for others and showing concern for the environmental and societal issues around the world (Samsung, 2014). The vision shows the organization’s commitment to inspiring its market by focusing on Samsungs three main strengths. These strengths are new technology, creative solutions, and innovative products. Samsung hopes to make a significant influence to a better world for all. Samsung’s philosophy explains the organization’s mission on devotion to talent and technology by developing superior products for a better society (Jurevicius, 2014). Samsung’s journey to being a market leader in electronics and phone devices is because of its smart marketing strategies. In many organizations, heavy spending on promotion does not guarantee better outcomes although this strategy works for Samsung. Samsung applies good strategic marketing activities and heavy investment on marketing. A doubled budget on promotion and a revamped strategy saw Samsung shoot to being a market leader in 2012 Being a global organization, Samsung’s use of online platforms as a consumer-marketing tool is a good step. The organization easily reaches out to customers and seeks their opinions, thus creating a tight bond and easy communication flow between the company and its consumers. In addition to this close company-consumer relationship, the online platform gives Samsung a strong brand name globally (Michell, 2010). Samsung collaborates with various organizations to enhance its business and brand. The partnership strategy with other organizations of good reputation has a positive impact on marketing outcomes, for example the Samsung-Chelsea FC relationship. The relationship increases Samsung’s credibility as a company not only with interest in making profits, but is also with a concern on corporate social responsibility issues. The aggressive advertising strategies in various media make Samsung a household name in many countries, which is actually good for sales and growth of its market share. Although Samsung is a successful organization, some areas of the organization perform sub-optimally and thus need an overhaul. Samsung’s lack of a figurehead (like Bill gates for Microsoft) may have a downside of it in that; the consumer’s confidence in the stewardship of the company is questionable. On the other side, this reduces the uncertainties that come with association of individuals to the company’s performance, since human behavior is complex and unpredictable. The company’s risk taking attitude of experimenting new products and innovations contributes to both its successes and failures. Samsung needs to combine adequate investment in research and development, and effective marketing of the resultant well tested products for better outcomes. Samsung at one time was in the media on issues that negatively affect its reputation, for example issues on hiring graduates from colleges, and Samsung’s response to a leaking gas incident from one of its plants. As much as Samsung has a large market that is growing fast and it is confident of its products’ quality, the organization applies a desirable pricing policy. Samsung’s wide range of electronics makes it have a very wide market, although generally, the organization targets middle-income. The middle-income segment forms the largest share of the population, and thus targeting of this population results in high sales for the products. The company also makes expensive and luxurious commodities for the high-income persons. How the plan will align with objectives The development of the plan considers the views of various stakeholders and the current internal and external organizational environment. This is key in ensuring the plan is in line with mission, vision, values, and specific objectives of this leadership development plan. The objectives are the main point of reference at every stage in the development of the plan. Proper communication and explanation of the plan to all employees and stakeholders will provide a good understanding of the plan. This understanding is requisite for effective implementation of the plan in line with the set objectives. Clarifications may be necessary in case of confusion. An effort to secure top management support is key in ensuring that the implementation of the plan is in accordance to the set objectives in order to benefit the organization by bringing the desired changes or outcomes. Target audience This plan targets the persons who have the ability and willingness to take up leadership positions in the organization. Eligible persons need to have a post-graduate qualification in a leadership related course, have a remarkable leadership record in their work experience, a good understanding of Samsung’s plans and organizational structure, and possess good interpersonal skills with a strategic focus on issues. The leadership development plan targets employees from diverse specialties in order to bring about a multi-skilled leadership team (Ctb.ku.edu, 2014). The leadership team will be on the frontline in helping the organization to design a success strategy. All the divisions in the organization will vet their interested candidates and present utmost six candidates for leadership development. These candidates will then undergo a second selection process where four per division candidates will have a go-ahead to continue with the leadership development. Equal opportunity principle will be a point of reference in the whole process of employee selection for the leadership program. Structure and implementation of the plan The leadership program will involve various methods of development, making it a comprehensive plan of nurturing leaders. The current leaders take at least candidates for mentoring using these methods. These methods include: a) Modeling good leadership The most valuable way to develop leaders is by demonstrating what a good leader does and looks. If one possesses excellent leadership skills, there are high chances that the leadership trainees will be well aware of and emulate them. If one is not a good leader, the potential leaders under him/her will also probably copy his/her behavior, and his/her mentoring on leadership skills much beneficial. Therefore, there is need to identify current leaders who will set a good example as they mentor the upcoming leaders for the organization to continue prospering. b) Teaching as you lead The potential leaders benefit from this through observing how the leaders carry out their jobs. If a leader is handling a delicate matter, let him/her seize the opportunity to teach an aspiring leader about the art of handling crises. c) Mentoring Mentoring involves taking someone under your wing and teaching him/her directly over time. In mentoring someone, a leader makes a commitment to the aspiring one. The leader helps the trainee become a leader through teaching him/her experiences and by encouraging him/her as they accept new challenges. d) Exchange programs Leadership exchange programs within or without the organization helps in enriching the leadership development process. People are able to learn skills that are not present in their own organization or group. A visit to another entity can give people an image of new possibilities. e) Orientations In order for people to do a good job, they require the information and adequate training in order to perform their jobs well. Providing to people the assistance they need before assignment to duties is a valuable investment of the organizations time. The aspiring leaders need to know the training they require in order to do the job, the organization’s history, the available help, the chance to meet people, the organization’s mission/vision/values, and they need to feel welcome. f) Workshops and training sessions Workshops provide important knowledge, skills and help in solving issues in the work environment. These workshops can also raise morale and renew organizational commitment when they provide long-term solutions. g) Retreats Retreats help in revitalizing the leadership teams. Through a retreat, a group can identify new goals and think of new strategies. A retreat is also important when the organization is preparing to implement change and when all people must understand the anticipated changes in order to facilitate its success. They also help people to remember the value of their relationships as they work together. There should be active participation by all, enough time for interaction, and commitment by all to attend. The leaders also need ongoing development. Leaders need connections with other leaders so that they keep growing and overcome the difficulties they experience. They sometimes feel isolated in their jobs; they long for others to listen to their ideas, and they need to listen to others opinions. In order to achieve this, there should be a peer leadership group. These methods of developing leaders are aimed at enhancing the competitive advantage of Samsung and thereby in line with its vision of being a global leader in electronic industry. Timing and budget. This program is set to begin in January 2015 and take a duration of eight months. If there will be need to make adjustments, this may vary the duration by month. The budget set aside for this plan is $20000. Integration of the plan and follow-up The elements of leadership development will focus on improving the performance of every division and developing strategies for business success amid stiff competition. The top management commitment is also key in ensuring the successful integration of these plans in every division for organization-wide growth. The leadership candidates under the program will provide a record of their progress, achievements, and strategic contributions in enlarging Samsung’s market share on a bi-monthly basis. Review of these records is necessary in order to assess the extent to which the program is meeting its objectives. Evaluation An analysis of the changes in the revenue of Samsung will be an indicator of achievement or failure of this plan to increase the market share. A rise in the revenue and geographical coverage of Samsung’s products will indicate a rise in the market share, all factors held constant. The ability of the developed leaders to handle crises and offer meaningful and valuable strategic advice for organizational success is an indicator of the availability of leaders to take over from the retiring baby boomers. Rationale for the plan The plan provides a strategic approach to handling the organizational challenges of leadership and business rivalry. There is a talent shortage as most of the current leaders retire. This talent shortage is also negatively influencing leadership development and capacity of organization to meet their workforce need. The survey in 2008 indicates that more than 80 percent of the 930 companies in the study face talent shortage as a hindrance to their efforts on leadership development (Corporation, 2014). This diagram illustrates the findings per country. This clearly justifies the need for leadership development as soon as possible before all the baby boomers leave the organization with their talents. There is need for nurturing upcoming leaders as a long-term solution to the organizational problems. References Corporation, O. (2014). Seven Steps for Effective Leadership Development (1st ed.). CA: Oracle. Retrieved from http://www.oracle.com/us/media1/steps-effective-leadership-dev-1657106.pdf Ctb.ku.edu,. (2014). Chapter 13. Orienting Ideas in Leadership | Section 1. Developing a Plan for Building Leadership | Main Section | Community Tool Box. Retrieved 8 October 2014, from http://ctb.ku.edu/en/table-of-contents/leadership/leadership-ideas/plan-for-building-leadership/main International, A. (2009). YEMEN’S DARK SIDE: DISCRIMINATION AND VIOLENCE AGAINST WOMEN AND GIRLS (1st ed.). Amnesty International. Retrieved from http://www2.ohchr.org/english/bodies/hrc/docs/ngos/Yemen%27s%20darkside-discrimination_Yemen_HRC101.pdf Jurevicius, O. (2014). Samsung mission statement 2013 | Strategic Management Insight.Strategicmanagementinsight.com. Retrieved 8 October 2014, from http://www.strategicmanagementinsight.com/mission-statements/samsung-mission-statement.html Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics industry (1st ed.). Singapore: Wiley. Samsung,. (2014). SAMSUNG. Retrieved 8 October 2014, from http://www.samsung.com/us/aboutsamsung/samsung_group/values_and_philosophy/ Read More