Managing Human Resources Of Samsung - Myassignmenthelp.Com

Question: Discuss about the Managing Human Resources Of Samsung. Answer: Introduction Background to the report The following report is based on the unfair reward policies observed in the human resource practice of Samsung. Reward management system consists of firms policies, processes as well as practices for rewarding the workers based on their contribution and abilities. As put forward by Doenovi? Dragana (2016) reward management is mainly concerned with the development and implementation of strategies as well as policies that are determined to reward properly, fairly, equitably as well as consistently with the value of the organization. Major objective of the reward management is to support the strategy of the organization, recruit and retain the key employees of the firm and motivate employees. However, the case study provided on Samsung, indicates that organization did not proper and fair policies in its reward management system as there is of disparity with respect to amount of bonus. Scope of the report The report has been conducted on Samsung considering the scenario provided in the case study about the inequality in the reward system. Samsung is certainly a large electronic giant providing electronic goods such as Samsung Mobile, Television, refrigerator, Air Conditioner, etc. The vision of the firm is, Vision 2020, Inspire the world and Create the Future. Samsungs vision is at the cored of its commitment to develop a better world, which would be full of richer digital experience through enhanced technology and products. Figure 1: Samsung (Source: Samsung au, 2018) Aim Primary aim of the report is to identify the issues existing in the reward management system of Samsung and develop suitable reward management strategies. Issues with current practices Fairness Even though Samsung acquires a large share of global electronic market, fairness in the internal structure of the firm requires more attention. Each division of Samsung including Samsung Mobile and battery division is established setting individual targets and goals, which the divisions are supposed to achieve or meet. However, the given case study indicates that employees of Mobile Division of Samsung are provided with 50% bonus of the gross salary, while the battery division received bonus at 3%, consumer electronic division received the bonus of 10% and some other divisions received poor percentage of bonus. This scenario appears to be a significant internal organizational issue. Any additional benefits such as bonus fall under the category of employee rewards, which should be equal to all major production divisions of the firm. Prioritizing any particular department in terms of rewards create the issue of fairness, which should be avoided. Moreover, such issue could be the source of other significant related issues such as lack of employee motivation, lack of organizational coordination (Parvin Kabir, 2011).When particular department is prioritized in terms of benefits, and the employees of other division might feel their efforts will remain unrecognized (Todorova, Mills Welschen, 2012). They might not take additional initiative for the betterment of the organization, as they are highly unmotivated. Similarly, the managers could observe a lack of coordination among the divisions. For example, the employees of Battery division might not interact with the employees Mobile Division, which certainly implies poor organizational integration. Equity theory exemplifies the inequalities affect employee motivation. This means the employees who observe that they are receiving inequitable treatment would be motivated by emotion to obtain equity (DeNisi, Murphy Chen, 2017). As per the case study given, besides Samsun Mobile and profitable semi-conductor division, other major division do not receive equal bonus. This unfairness could decrease inputs, which they might put less effort to do less work and push for the output from Samsung. In addition, they could become resistant to organizational strategies or objectives. Such outcome could harm an organizations bottom line and when firms turnover comes in place, the loss remains two-fold. When the workers believe that the workplace is unfair towards them, they tend to distrust firms leadership. Likewise, when the employer avoids this distrust, workers morale as well as motivation could suffer. In this context, Le Roy, Bastounis and Minibas-Poussard (2012) commented that as the mo st leaders are operating in good faith based, the treatment just requires better communication. Thereby, the leaders should manage the unrealistic expectation with more open as well as active communication. The case study indicates that there is a state of inequality in the reward system of Samsung, where the employees of some divisions did not receive adequate bonus despite the achievement of divisional goals. Employee retention is directly related to fairness in the reward system as employees who are happy and satisfied with jobs show more dedication towards their work and they put more effort to enhance organizational productivity. However, here employees satisfaction is again dependent on how their employers are rewarding employees effort. When the organizations positively meet the needs of the employees and pay the rewards for their effort in a fair manner- such as providing them a stipulated amount of monetary reward equally throughput the divisions of the organization (Parvin Kabir, 2011). However, in the case of Samsung, it is worth mentioning that the employer did not develop a fair reward system because prioritizing Mobile Division in terms of bonuses would have been effective, had other divisions provided with significant benefits such as extended career development and growth opportunities, if not monetary rewards, along with existing percentage of bonus paid. Bonuses As put forward by Doenovi? Dragana (2016) neither total pay nor hike in salary has any significant impact on employees concern regarding fairness. Apart from these two elements, employees satisfaction also depends on other monetary benefit such as bonus. When it comes to bonus, employees major concern is internal equity, in which employees perceived fairness emerging from fair treatment compared to their fellow workers. On the other side, the concern about external equity comes from the fact of fair treatment compared with the employees of other firms in the sector. Nonetheless, Samsun did not maintain the equity in its bonus policies because compare to other divisions, Mobile and semi-conductor divisions are provided with extended amount of bonuses. Other issues Apart from the above-mentioned issues, some significant related issues such as employee retention practices can be affected if one of the elements such as bonus is not implemented fairly. As discussed above, long-term success of the organization depend upon the retention of key employees and to some extent, satisfaction of customers, increased sales and organizational productivity depends on organizations ability to retain the key employees in the organization. Now, the satisfaction of such key employees is further dependent on fulfillment of the basic needs such as fair amount of bonus and other monetary and non-monetary benefits. Thus, given unfair policies of bonus at Samsung could affect the retention strategies of the organization. An employee could dismiss the contact of employment or leave the job, when his/her good work or effort is not rewarded with bonus. Unfair reward could encourage employee to opt out better opportunity in other organization. Likewise, in the e-commerce industry, due to lack of benefits and poor attention to human resource development, employee turnover is rapidly growing. For example, Amazon.com observed an unexpected employee turnover of 21% from in the last year from 17% in the previous year (Danescu-Niculescu-Mizil et al., 2009). Similarly, Samsung could face same fate if fairness is not maintained in its human resource management policies- reward system. Suitable recommendation to resolve the issues- Fair reward system- Perceived fairness in employee rewards remains as the root or source of why employees leave organizations. As put forward by Younos Vakil Alroaia, and Zahra Najafi (2012), the idea of fairness could determine if a worker makes an additional effort to achieve organizational goals. For this particular reason, it is significant for the firms to ensure that their employee reward system is based on the ground of fairness. Employees perception of fairness as well as equitable treatment remains as the fundamental driver of retention, engagement and performance. Here, Karasz, Bogan and Bosslet (2014) also mentioned that unfair treatment could be corrosive. Therefore, following steps can be followed to develop fair employee reward system. Thus, to resolve the issue, the following strategies have been provided. As put forward by Doenovi? Dragana (2016), every organization needs a strategic reward system for employee that must include the four elements such as compensation, recognition, benefit and appreciation. This system must recognize and reward two different sort of employee activity such as behavior and performance. Here, performance is an easiest process to address, as the direct link between initial goals Samsung sets for its employees and the outcome. For instance, Samsun could implement an incentive plan or recognize its top productive employee for achieving periodic goals. However, rewarding a particular behavior making difference to the organization could be more difficult but it could overcome the challenge by setting some questions. The questions for example, What am I compensating my employees for?, What is the significant difference that I want to reward for?. In other way, for example, Samsung could compensate an employee for developing new ideas and innovative ways for comp leting the task more efficiently. Feedback system In order to maintain fairness in the performance management system, Samsung could implement employee feedback system. The organizations need a more enhancing idea of determining how happy and dedicated the employees are. The system should enable the employees to understand the health of their organizational culture. To resolve employee individual issues related to performance and reward, Samsung needs a system for eliciting feedback and tracking satisfaction. This means if an employee perform well and achieves the target within the given deadline, he/she should be appreciated for the performance (Roseman et al., 2011). This feedback system also increases the frequency of interaction between the employees and the leaders. With such feedback system, the leaders can address the issue, implement change and enhance firms employee involvement. In addition to this, Boerner and Catherine (2011) mentioned that on the completion of each project, if the employees are praised for the accomplishm ent, and they feel motivated and observe the fairness in the system. Moreover, if an employee is praised throughout the year for the performance, at the time of review, the leader cannot deny bonus. For example, to identify the issues, as the activity of proposed system feedback system, the following steps have been provided. The manager creates an Employee Assistance Request System (EARS) form. A particular action should be assigned to the system. The action leader should contract the manager on a daily basis. Together, they would fill out the issue form. The team leader and the manager should regularly give the updates to the coordinator, who has the responsibility of updating the EARS log. Likewise, when the issue is resolved, the coordinator must put it a holding file and wait for the follow-up. At the time of follow-up, the coordinator cross check to ensure the problem is resolved and the coordinator signs off the form. However, if the form is not resolved, EARS form should be sent back to the system for resolving it further. After a particular period of time when EARS form is closed, the coordinator should convey the issues to the top executives about how things have been resolved. Learning and development Even though, there is a state of inequality in the bonus system affecting employee motivation, the firm could resolve the issue by providing intangible benefits. The organization could provide proper training and skills develop program for the employees, which must include the element of communication and technological skills. The training program should be provided on a monthly basis. Such program would enhance employees skills, which eventually increase their market value. Here, providing learning and development program is not the only task that Samsung would do for its employees. The firm also needs to provide flexible learning option, where the firm should ask their employees to engage in more learning and development activities (Hollenbeck Jamieson, 2015). However, the employees must be overburdened with work and they do not have time. Hence, HR department of Samsung should respond by implementing an on-demand and mobile solution that makes learning opportunities smoothly acce ssible for the employees. In such process, employees can regularly go through new items such as the corporate and technological skills whenever they check the screen of their mobile. The information comes with a notification. Eventually, skills learning test should be taken in every 3 months to ensure employees enhance their skills through the programs. Conclusion In conclusion, it can be mentioned that even though Samsung developed the reward system to motivate their employees by providing them with annual bonus, but the organization did not pay adequate attention to all its divisions. 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