Disscuss about the Management Perspective Report on Samsung.
Samsung is a multinational electronics company headquartered in South Korea. The CEO of Samsung Jong-Yong Yun has played a vital role in incorporating management practices in the organization that fosters continuous improvement and has enabled the organization to overcome crisis related to finance. In Samsung, more than 1500 managers and employees underwent an in-house training session in Samsung and the employees of the organization were trained in Industrial Engineering concepts so that productivity of the employees in the organization increases. Samsung comply with laws and ethics; fulfill their social responsibility as global corporate citizen, they value environment, health and safety and respect customers. However, Samsung was allegedly using illegal labor practices for Chinese manufacturers which is an unethical practice (Samsung, 2017).
The research will be based on secondary research. Resources from existing sources like journals, books, government data, website of Samsung and other sources which can be found offline and online will be utilized for this research. The findings from the secondary research will be the basis of the outcomes of the research. The response gained from various experts on different concepts of management like the role of managers in present competitive and dynamic environment of business, organizational structures, politics and communication and organizational diversity are studied and analyzed during the research. A positivism research philosophy is applied because the topic can be investigated in a logical manner by this philosophy. The approach for the research is deductive research because theories and concepts that already exist help in developing the case study for Samsung. Inductive approach is not chosen for developing the case study of Samsung as no new theories and models are developed. For this particular topic analytical or descriptive research design is chosen as the case study of Samsung is developed with the help of critical and detailed analysis of theories and concepts of the various areas of management (Panneerselvam, 2014).
Managers are constantly trying to develop innovative the structure of an organization to increase organizational productivity. In recent days, virtual organizations has achieved competitive environment with the help of internet that has contributed to establish network structures of organization. In present business scenario, organizations are developing flatter structures to increase efficiency and reduce labor cost. Communication also plays a great role in organization and the major functions of communication are information, control, motivation and emotional express. Managers need to be effective communicators in a business organizations and they act as both sender and receiver of information. The channels of communication can be classified into rich or poor or lean. The rich communication channels like interviews and meetings are personal and two way communication medium from which fast feedback can be obtained, while lean channels are good for record keeping. There are different barriers to communication which include cultural barriers, language barriers, and psychological, relational and environmental barriers .A great manager must be aware of the strengths of employees, must contemplate on the triggers that activate the strengths of employees and must be aware about the learning styles of employees( hbr Management, 2017) Domnica (2012), states that leaders must focus on creating an innovative organization and develop strategies of continuous improvement to create a sustainable organization in today’s volatile and competitive marketplace. Thus, leaders play a much more critical role as they have to align the strategies of an organization to the broader vision and mission of the organization while management is responsible to establish long-term goals, set budgets, plan and allocate resources. According to Longenecker, Neubert and Fink (2007), organizations must understand the factors that lead to managerial failure to avoid such fiasco and achieve desired results in today’s business environment which is ultra-competitive. Ashford and Detert (2015), states that the middle level managers play a proactive role in organizations and take actions on issues which are of strategic importance to an organization like shift in technology and change in customer base. Thus, the top-down portray of strategies where the top managers play strategic roles and the middle-level managers simply follow these roles are not always true in present organizational setting. According to Gupta and Kurian (2006), organizations need to re-invent their work process and structures to survive in the dynamic marketplace of the present business scenario. According to Kassing (2009), employees accounted for circumvention by supervisor performance, supervisor inaction and supervisor indiscretion. According to Merindol & Versailles (2007), the distribution of responsibility in the command and control (C2) chain, is impacted by the implementation of information and communication technologies (ICTs). It is found that introduction of new technologies sometimes favor centralization and sometimes it leads to decentralization. Morgan (2003), states that the chain of command protocols are often misunderstood by employees. Alimo?Metcalfe (2010), investigated constructs of leadership qualities in male and female and found out that the men’s descriptors linked to transactional leadership while that of female led to notions of transformational leadership. Leonardo (2005), revealed that the critical race theory originated in the civil rights movement in the United States of America and this theory is associated with critical legal studies, discrimination in education, freedom of speech, racial discrimination and in the 1990s scholars in education applied this theory to evaluate educational policies. According to Moreton-Robinson (2004), whiteness was considered an invisible norm in the society against which judgment about other races were developed. These theories are critical in studying the organizational diversity of business organizations. Olsson and Walker (2003), interviewed 10 male and 10 female executives from New Zealand and found out that in corporate world behavior of men and women are perceived through gendered lens. Tienari, Vaara and Meriläinen (2010), has found out that top managers have masculine identity in global organizations. These management concepts are used to analyze a case study report of Samsung.
Ethical acumen-Case of Samsung
The business activities of Samsung strictly follow ethical code of conduct and the organization abides by laws and regulations and practices fair competition (Chen et al., 2015). The organization follows ethics like the organization never makes use of the trade secrets of competitors and do not access their confidential information. Samsung never uses power of coercion to achieve any advantage that can be harmful to the interests of customers or partners of the organization. Samsung also never engages into practices like price fixing or bid collusion. The organization ensures not to abuse a market position that is dominant and never includes unwanted items during sales transaction (Crane & Matten, 2016). The code of conduct of Samsung is composed of 5 management principles. Values l like restriction to discriminate against gender and nationality, protection of privacy of customers, opening of business information which is transparent are some of the ethical practices that are adopted by Samsung (Samsung, 2017).
The five principles of management practiced by Samsung are as follows
1) Laws and ethical standards are followed in Samsung
2) The organizational structure of Samsung has clarity
3) Samsung cares for environment, safety and health
4) Samsung acts like a corporate citizen who is socially responsible
5) Shareholders, employees and customers are respected by Samsung.
Samsung electronics follows code of conduct like injustice behavior such as bribery is prohibited in the organization. Samsung has to abide by the healthy organization structure of the Company to prevent the illegalities the employees. The human resource management of Samsung also focuses on International labor standards and local labor laws are and workplace diversity is fostered in Samsung. The organizations like Samsung should avoid biases and discrimination based on gender, race, religion or ethnicity (Parrott, 2014).
Role and legitimacy of the management function and impact of politics and the social environment
The management of Samsung focuses on providing more autonomy to employees, and to improve the process of works several initiatives are taken by Samsung. For instance, incentives are provided to employees for filing patents. Thus more than 3000 patents were filed in the year 2008 in Samsung (Samsung, 2017).
The management of Samsung focuses on its core capabilities to develop products which create greater value for customers. Samsung collaborates with retailers to provide them information about the designs of products customers want and feedbacks from customers are used to enhance the design of products and also to bring new product lines in the market. The organization structure in Samsung is open with less layers of bureaucracy. This enables managers of Samsung to get a faster approval for new products and other plans like budgeting and marketing plans in Samsung do not have to wait for long procedures of approval. The management of Samsung removed bureaucratic obstacles and thus it was possible for the organization to invest in key technologies to enhance innovative design of products. Samsung has a talent pool of engineers, managers and designers who provide their innovative ideas to top management. The organization has also opened centers for design and a two-way mirror was provided to designers to observe the behavior of customers and their response to a particular design was noted. Samsung is a learning organization and the Company makes investment to educate and train its employees. The managers of the organization formulate learning objectives along with the employees. The global competencies of the employees of Samsung are fostered by the organization and Samsung has introduced various courses in foreign language train employees for overseas assignment (Park-Barjot, 2014). The social norms have changed and organizations have a larger number of female workforces. Thus to foster creativity among employees and to retain them, the management of Samsung allows them to maintain a healthy work-life balance. The organization also provides a vacation for the self-management of employees. In order to increase the satisfaction level among employees, Samsung cares about the health of the employees and organizes welfare programs to secure the post-retirement life of the employees(Samsung, 2017).Corporate pension program, medical subsidies, employment insurance and compensation insurance are some of the welfare measures that Samsung has implemented for the employees. However, it has been found that recently employees of Samsung have worked for more than 16 hours each day in the Chinese manufacturing firm with one day off every month. Employees who were below 16 years of age were also hired. Also the explosion of Samsung Galaxy Note 7 due to overheating of faulty batteries was an unethical practice of Samsung that led to customer harassment and the organization had to recall 2 million devices and discontinue the product. Also recently the heir of Samsung, Jay Y lee was jailed for 5 years in a bribery case (ethical issues of Samsung, 2017).
The plans of the managers of Samsung involve innovation in process, products and personnel. The managers of the organization involved in strategic plans by focusing on product innovation. The product lines of Samsung that do not produce desired rate of return for the organization are pruned , for instance products like juicers and electronic pagers of the organization was replaced with hi-tech goods of high-margin like mobile phones and music players. The focus of Samsung on higher-end products also helped Samsung to increase the brand value of the Company. Samsung also adopted the concept of Just-In-Time technology to reduce inventory level and the concept of make-to-order production in Samsung also helped Samsung in process innovation (SEYEDI & PAKNEZHAD, 2015). However the flaws in manufacturing and battery design caused explosion of Samsung Galaxy Note 7 for which the organization had to recall 2 million devices in 2016 which has cost the company 5.3 billion dollar. In manufacturing firms of Samsung, young workers were hired for overtime work to cut cost and maximize profit. Also, Lee Jae-yong was provided offered $ 38 million bribes to gain support of President Park Geun-hye of South Korea. This briery was given to get help of government related to a merger that would strengthen control of Lee over Samsung at a crucial time (ethical issues of Samsung, 2017).
The management system in Samsung is open and the managers of the organization appreciate suggestions and ideas from employees. The knowledge management system of Samsung helps employees to share knowledge and expertise. Ethical practices of Samsung ensure compliance with law, respect for all stakeholders including customers and employees. However Samsung should avoid ethical controversies like unethical labor practices in manufacturing firms in China, explosion of devices like Galaxy Note 7 phone and the bribery case of Jay Y lee which can tarnish reputation of the organization.
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