Samsung: Employee Bonuses And Effects

The Analysis Based on the Case Study of Samsung Related to the Year 2015

Question:

Discuss about the Analysis Of Samsung Strategic HRM.

The analysis in this report is based on the case study of Samsung related to the year 2015. The organization did not perform quite well in this financial year 2015, however, the employees still received the highest amount of bonus. This bonus was awarded to the employees based on their contribution to the operations and sales of Samsung (Al Ariss, Cascio & Paauwe, 2014).

The main aim of the organization behind this step was to keep the employees satisfied and motivated so that the division can be kept running. The reduction of employee turnover was the main aim behind the decision taken by Samsung (Sung & Choi, 2014). The main department of the organization which had shown poor performance was the mobile handset department. The consumer division employees of Samsung were awarded around 10% bonus, the TV staff department was awarded around 21% bonus and the network business related staff were provided 20% bonus (Androidauthority.com., 2018).

The report is mainly based on the analysis of the case study of Samsung based on the different theories of strategic management, fairness, bonus provided to the employees. The issues faced by the employees will also be analysed in the report.

The aim of the report is to examine the reasons behind the decision taken by Samsung based many theoretical concepts like, strategic human resource management, challenges related to employee relationships, management of diversity, management of performance, rewards and motivation, retention and employee turnover. The step taken by the organization for the welfare of the employees will be analysed in the report based on the above mentioned theories.

Unfair distribution of wages is related to the way by which the employees of an organization are given unfair amount of wages with respect to the job that is being done. Fairness in the distribution of wages is sometimes related to the gap between the wages of the male and the female employees (Campbell, 2015). The unequal or unfair distribution is a major issue in the case study of Samsung as the organization has provided bonus to the employees who belong to the least performing sector (Sabharwal, 2014). Samsung has shown unfair distribution of wages by providing bonus to the employees of those departments which have been unsuccessful. This is the major issue related to the case of Samsung which had caused discontentment among the employees (Chen & Hsieh, 2015).

The Aim of the Report

This process is related to the way by which the members of a team are provided with their rewards or bonuses based on the performance. The trust in the team is based on the fair bonus provided to the employees (Olafsen et al., 2015). The process of team based payment is used in some of the organizations and it is mainly related to the success of the team in any particular task or job. The team based bonuses have the ability to motivate the members of the team to provide better performance (Choi & Rainey, 2014). Some part of the wages of the employees are related to the success of the team members in any department. The team members in this case receive similar kinds of payments or incentives. Samsung has provided to bonus to a team which was a part of the unsuccessful mobile handset department. The rewards have been effective for the mobile team; however, the other teams were not quite happy regarding this decision made by Samsung (Chuang, Jackson & Jiang, 2016).

The step that was taken by Samsung related to the bonus provided to the employees in spite of the financial losses was a strategy that was undertaken to retain the employees to keep the production department running (Mekler et al., 2017). The strategic HRM is mainly related to the process by which the organization aims to attract, develop, reward and thereby retain the employees so that the employees and the organization are benefitted from this practice (Clarke & Higgs, 2016). Strategic HRM acts as the partner in the success of an organization. Samsung had also taken this decision based on the different departments of the organization and the problems that are being faced by these departments. The lack of proper strategy of the organization is another major issue in the case (Dhar, 2015).

The other major issue that has been considered by Samsung while taking the decision is the relationship with the employees. The relationship with the employees helps in improving the credibility of the decisions taken. According to, Chuang, Jackson and Jiang, (2016), the relationship that is developed between the employees and the organization plays an important role in their stress and motivation levels (Knies et al., 2015). The level of good relationship between the employees and the organization increases the motivation levels and leads to the improvement of credibility as well. Samsung has tried to improve the relationship with their employees by providing them with rewards (Kuvaas, Buch & Dysvik, 2016). This will help the company to reduce the turnover of employees and further improve the operations as well. The improvement in relationship with the employees of Samsung will also help them in continuing their production even after the losses that were incurred by the company (Malik, Butt & Choi, 2015).

Unfair Distribution of Wages

Management of human resources is mainly related to the ways by which the manager of any organization performs his functions with respect to the needs of the employees. The allocation and planning of the resources is also a major part of the human resource management. The choice of the employees who need training and those who are assigned the best projects is the decision of the managers of the organizations. The human resource managers also work towards providing the goals, vision and the direction to the employees and the organization. The manager also has a major task of creating an environment in the organization which helps in the motivation of the employees. The managers of Samsung need to make sure that the employees are motivated enough to give their best to the company. The company needs to formulate effective strategies which relate to the ways by which the managers can control the performance of the employees. The major duty of the managers is to maintain an environment in the company where the employees can learn constantly and improve their performance in the process.

Example – The HRM strategy of Samsung had led to innovation in the 2014 when the talent management strategy of the company had been a huge success.

The rewards that are provided to the employees play an important role in their motivation process. The offer given by the organization of any additional monetary rewards motivates the employees to give their 100% to the company. Rewards can also non-monetary which are related to the work environment and the efforts that are taken by the organization. One of the most effective reward that can be provided by an organization is incentive, which is related to the extra financial benefits that are provided to the employees. Motivation provided to the employees in the workplace is also important for the effective performance of the employees. Samsung had decided to provide motivation to the employees with the help of the bonus which was given in spite of the poor performance of the organization in the year 2015. The employees of the mobile handset division which had to face many challenges in the market were provided their bonus. Samsung did not show a strong performance in the same year, however, the company decided to take this step in order to continue the operations of the department. The employees were provided with 50% bonus in the same year when the department performed in a poor way. This step was the major motivating factor for the employees and they helped the organization in keeping the department in a running state. The rewards system should be set in such a manner so that the employees are motivated to perform in the organization. Samsung had provided bonus to the employees in spite of the losses that were incurred by the organization in that division. This was a reason for discontentment for the other employees of many other departments.

Team-based Payment Process

Example – Samsung has a specific employee benefits strategy which has been in operation since the year 2012 and this has led to innovations in the different processes of the company.

Diversity management is related to the process by which the differences and the similarities of the employees can be managed by the organization. The diversity management process of an organization is mainly related to some values which are laid by the company. This process helps in creating an environment in the organization which helps the employees in contributing towards the goals of the organization and the personal growth of the employees as well. Samsung has taken many steps related to the management of diversity in the organization which includes physically disabled employees, female employees and many more. The organization has taken many efforts to manage the diversity in their working environment and this has helped Samsung in retaining employees even during the tough phases. Samsung has shown flexibility in their operations based on the inclusion of female staff in the leadership and their adaptability in the different environments. The recruitment of disabled employees is another major step taken by Samsung towards management of diverse environment. The case study has also shown diversity management by Samsung as they have provided rewards to the employees of all the divisions including their mobile division which had not performed well that year. The diverse group of employees can be managed by Samsung with the help of the policies that have been set by the company to manage the female and the disabled employees.

Example – Samsung had employed more than 600 staff with disabilities in the year 2005 and the number of staff has been increasing since then till 2010. The electronics unit of Samsung has also started recruiting graduates who have some disabilities.

The strategy related to learning and development in an organization relates to the articulation of the capabilities of the workforce, the competencies and the skills that are requires and how these are developed so that a sustainable and successful organization cam ne established. The development and learning process in an organization is a part of the HR policies which is aimed towards improving the individual as well as the group performance of the employees. The training and development program of an organization is a major part of the talent management related strategy laid by the company. The individuals need to identify the gaps that have occurred in their skills so that these gaps can be fulfilled with the help of training. Samsung had to face major challenges from new Chinese players in the mobile handset market which had led to the fall in their sales. However, the organization still managed to retain their position in the market with the help of the motivation that has been provided by Samsung to the employees in the form of bonus. The employees were also well trained with respect to the different departments in which they were working. Samsung can be recommended to organise a program related to learning and development of the employees regarding the various processes of the organization.

Strategic HRM

Example - Samsung has aimed towards updating their training and development programs by introducing tools related to virtual reality at the workplace. The improvement of training and development in the organization has further helped in improving the operations of Samsung. The employees were also given sufficient training before the implementation of cyber training equipments for training.

Conclusion

The case study has been analysed in the report with the help of the different concepts related to human resource management and the ways by which the organization has utilised these concepts. The different concepts related to human resource management that are analysed in the report are strategic HRM which is applied to formulate strategies so that they can manage the employees. The case study is related to the phase of Samsung when their mobile handset division did not perform well. The organization however provided rewards to the employees in the same year to keep them motivated. The different concepts related to which the case study has been analysed are, the relationship with the employees, the management of diversity, management of performance, development and learning, rewards and motivation and retention and turnover of employees. The report has been concluded with the learning that the different concepts of human resource management are necessary to fulfil the needs of the employees and to achieve the goals of the organization.

References

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