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Human Resource Management

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 HUMAN RESOURCE MANAGEMENT

Executive Summary
Human resource management is considered to be the backbone of any successful organization
performing operations in the international market. It is essential to for the HRM to ascertain the
pros and cons of every function that would help the organization to grow as well as achieve the
framed objectives. This specific report provides in—depth analysis about the role of HRM in
Samsung assessing challenges in retention and managing of staff. The chosen news story on
Samsung for this report provides critical analysis about how the organization is affected by the
story and how the organization can take significant measures to overcome the challenges.

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Table of Contents
Executive Summary ...................................................................................................................................... 2
Introduction ................................................................................................................................................... 4
Aim ............................................................................................................................................................... 4
Methodology ................................................................................................................................................. 4
Thesis Statement ........................................................................................................................................... 4
The News Story............................................................................................................................................. 5
Identification of the Problems ....................................................................................................................... 5
Analyzing the News and the Problems ......................................................................................................... 6
Impact of the News Story in relation to Employee Management ................................................................. 7
Challenges in Managing the Staff ................................................................................................................. 8
Challenges in Retaining the Staff.................................................................................................................. 9
Recommendations and Conclusion ............................................................................................................. 10
Conclusion .................................................................................................................................................. 10
References ................................................................................................................................................... 11

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Introduction
Samsung being one of the most successful organizations in the world has faced huge issues in
terms of revenue generation in the year to 2015. Despite the lack in acquiring the estimated goals
of revenue the organization has provided adequate bonuses to the staff and employees of the
mobile division. Assessing the specific role of the management it can be figured out that
Samsung has taken this significant step mainly for retaining and motivating the staff members
for providing exceptional performance in the upcoming years. Analyzing the entire situation it
can be assessed that the HRM of the organization is the key player to prolifically implement this
strategic measure for the betterment of the organization.

Aim
Considering the step that Samsung has taken for the staff members of the mobile department, it
is important to evaluate and analyze the purpose of such prolific step. Thus, the main aim of this
report is to strategically evaluate the basic reason for rewarding the employees, despite poor
performance (Android Authority, 2018).

Structure

Methodology
For analyzing the significance of such an intriguing step by Samsung, key concepts and theories
based on employee retention, employee management, motivation and rewards and performance
management has been taken into consideration. Assessing the aforementioned key theories
important data has been collected for successfully completing the report.

Thesis Statement
To research and understand the distinctive issues faced by the mobile division of Samsung and
the various approaches chosen by the HRM in employee management and retention.

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The News Story

According to an article released it has been reviewed that Samsung one of the key competitors of
Apple Inc. has rewarded the mobile division employees and other departments despite the poor
performance in the year 2015. According to the article, in 2015 the Samsung mobile department
didn’t fair in achieving the required profit targets but still the company has awarded the mobile
department staffs and employees with the maximum bonus for their genuine involvement in
keeping the mobile division running despite facing various hurdles (Android Authority, 2018).
Compared to the other Samsung divisions, the mobile division didn’t perform well in terms of
the objectives as per the expectations due to various significant reasons according to a Samsung
official.

Identification of the Problems

Assessing the news story article on Samsung rewarding the mobile division staffs and employees
despite the poor performance in 2015 prolifically highlights the basic internal and external
problems associated with it. According to the news story the basic reason for poor performance
of the mobile division was the significant growing challenges in cheap Chinese vendors in the
landscape of new market.

Moreover the organization has not been able to increase the business due to significant failure of
company’s management leadership. These significant problems forecast that the management of
the mobile division lacks the essential aspects of leadership which has crashed the management
hopes on the provided mission (Guest, 2017).

Taking both the internal and external challenge into consideration as per the news story, it is
essential for Samsung to strategically implement HRM measures that would enable to evaluate
and overcome the significant challenges. It is the effective role of the management to view these
challenges that would enable the organization in performing effectively in the following year
(Younge and Marx, 2015).

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Analyzing the News and the Problems

Critically analyzing the news from the business point of view it can be ascertained that the news
of Samsung rewarding the employees and staffs of mobile division despite poor performance is
due to the ineffective management strategic implementation and unable to apply the strategic
measures to control the rate of competition from the Chinese vendors. Assessing the news the
basic reason for granting the rewards to the employees despite poor performance can be
explained as a core concept of employee management, employee turnover and retention
techniques.

 Employee Turnover and Retention

According to Kwenin and Muathe (2013) it is the employee rewards, job satisfaction and
the policies of human resource are the key aspect of employee retention and employee
management. Kewnin and Muathe explained that favorable policies of human resources,
job satisfaction and efficient reward system have a positive link with employee retention
(Goldstein, Pulakos and Semedo, n.d.). According to the study it is the reward system by
the organizations and job satisfaction acts as a strong signal for employee retention. The
study also states that the organization management needs to provide quality values in the
jobs for making them satisfying for all the employees to stay with the organization.
Richie Sebastian, (2008) also proposed via his empirical study that a conceptual
framework via human resource management perspectives and institutional perspectives
(Yamamoto, 2011). It has been evaluated that the commitment of the subsidiary staff and
satisfaction level of the staffs are affected by the practices of the human resource.

 Performance Management

Assessing the problem of increase in competition for Samsung from the Chinese Vendors
can be critically explained in reference to the conceptual context of competitive
advantages and performance Management. It has been reviewed that the firm level
differences or heterogeneity allows in sustaining competitive advantage and boost the
performance of the employees. Considering the situation of Samsung unable to gain
competitive advantage due to the increase in Chinese Vendors it is essential for the
organization to evaluate the ability for staying ahead in the competition by the help of

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implementing superior performance and leaderships. Thus the competitive advantage is

directly proportional to the competition either in distinctive departments or in distinctive
organizations. Barney (2002) explained that an organization mainly experiences the
competitive advantage when the actions within a market create the economic value and
when the competitive organizations engage in similar actions. Barney (1991) also argued
that the competitive advantage can be gained when an organization is able to create a
value creating strategy that has not been simultaneously implemented by any potential or
current competitors.

Impact of the News Story in relation to Employee Management

Employee management can also be referred as the employee relationship management which is
defined as an information system that enables supporting the relationship in between the
employees and an organization. Employee management or employee relationship management
focuses on enabling the employees in collaborating on the typical managerial tasks with their
specific employers (Wood and Peccei, 1995). In relation to the news story of Samsung it can be
significantly assessed that rewarding the mobile division employees despite the poor
performance is significantly a strategic technique to motivate the employees and retain the
skillful employees that would enable Samsung in boosting the work performance in the
following years. The entire scenario can be explained by the concept of employee management.

 Motivation and Rewards

According to Gronross (1990); Berry (1981) and Gummesson (1990) if a specific

organization management wants its employees for delivering an exceptional service level
for both the organization (specifically to achieve the goals and the objectives) and
customers, it must be ready for doing a quality job with the employees. It has been stated
by Gronross (1981) that the internal marketing of the organization must prolifically create
an environment for employees that would support the customer consciousness and
motivate the employees. Wolf and Zwick (2008) critically explained that employee
involvement along with financial incentives and inducement can act as an effective way
for increasing the productivity as well as the performance of the organization (Numerof

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and Abrams, 2003). The authors specifically revealed that the employee job involvement
and rewarding can lift up the rate of productivity.

Delaney and Huselid (1996) explained that the practices of human resource management help in
improving the employee skills; inspire and motivate the employees along with arranging design
of the entire workplace. Thus, the dimensions of human resource management and employee
management can be acknowledged in development and training of employees, employee
feedback, workplace design and the pay system of the employees (Mignonac and Richebé,
2012). Considering the aforementioned key factors it can be easily assessed that the Samsung
news story of rewarding employees despite poor performance is a strategic step taken by the
management for retaining the skillful employees and boost their motivation for increasing the
effectiveness in work performance. This strategic measure of HRM effectiveness by Samsung
somewhat positively impacts the employee management for the long run as the organization has
been able to overcome additional recruitment costs and retaining the skillful employees by
rewarding them despite the poor performance.

Challenges in Managing the Staff

Considering the importance of employee management in an organization, it is important for the
management to focus on the workplace issues as it tends to intensify at a rapid rate. Thus taking
the Samsung news story in focus there can be various issues in managing the staff. Some of the
most important challenges are mentioned to critically evaluate the Samsung news story.

 Employee Issues: There are various issues in terms of individual employees. Issues like
personality conflicts, issues with the supervisors or organizational structure etc. It is the
key role of the management to learn the key reason of the issues (Glick, 2010). The
management must be clear enough to trigger the issue and implement significant steps.
Unable to answer or trigger the necessary ways can lead to confusing or ineffective
communication issues.
 Team Issues: In case of high performing teams issues in terms of personal disconnect
with other team members can negatively affect the work performance and the team can
eventually become non-functional (Ross, 1995). This sometimes also leads in
organizational and management miscommunication that confuses the individual and

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team’s common goals. It is therefore important for the team leaders to offer feedback
constantly and also foster the cohesiveness. The management must be aware to diagnose
the issue and take prolific actions for avoiding serious breakdowns in performance.
 Organizational-Wide Issues: Sometimes individual issues or the team issues can lead to
total organization chaos which needs to take immediate correct action (Roberts-
DeGennaro, 1986). It is essential to avoid these situations as it results in creation of
groups affecting the operations of the organization. Corrective actions must be taken
immediately from negatively impacting the corporate culture (VAN DE and VAN DER,
2003).

Challenges in Retaining the Staff

Taking the challenges of managing the staff of an organization into focus, it is essential for the
management of an organization in retaining the staff effectively. Distinctive challenges have
been reviewed in terms of retaining staff in global organizations. Assessing the news story of
Samsung, the key challenges that can affect the retention of staff are as follows:

 Compensation Packages: All employees seek for equal pay for their respective work.
This is considered to be a significant step in enhancing the rate of retention among the
organizations. Salaries, rewards, insurance etc are considered to enhance the retention
rate of the employees. In case of unsuitable compensation packages organizations are
unable to retain their skilful employees (Bais, 2012). It is the management who plays the
key role in ascertaining the compensation for keeping the best talents within the
organization.
 Recognition: Another key issue that persists in terms of staff retention is the employees
who feel unrecognized and unappreciated. Staffs always seek acknowledgement and the
management in failing to have a significant impact on employee recognition can lead in
losing the top performers of the organization (Goldstein, Pulakos and Semedo, n.d.). It is
thus important for organizations in assessing the resources for targeting all the employees
with proper recognition programs (Sigler, 1999).
 Self Development: All staffs seek for opportunities to develop their talents and skills for
personal satisfaction and for increasing the professional opportunities. Therefore, the self

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development implementation programs are effective in increasing the retention levels of

skillful employees (Isukapally, 2006).

Recommendations
 Evaluating and analyzing the key factors related to the news story of Samsung it can be
significantly recommended that there are few pros and cons in terms of rewarding the
employees despite poor performance.
 Firstly evaluating the pros is the role of the management can be easily sorted. This would
eventually help in knowing what faults are there within the strategic measures by which
the organization is unable to gain competitive advantage from the Chinese vendors
(Rekha and Devi, 2014).
 Secondly, rewarding the employees can actually boost the performance and motivation
level of the employees for focusing on their individual performances and achieve the
desired goals and objectives.
 Lastly, this significant step of rewarding is also beneficial for Samsung to retain its
skillful employees and enhance the performance and productivity level of the
organizational operations and reduce the recruitment expenses for hiring new employees
(Phillips and Connell, 2012).

Considering the cons, it can be evaluated and analyzed that rewarding the employees can turn out
to be ineffective. Employees can sometimes take the reward system for granted which can
eventually dismantle the effective operations and performance. The reward system also can bring
financial crisis for Samsung even for a shorter period of time. Though, organization like
Samsung can hardly be affected by rewarding the employees despite poor performance (Roberts,
1967).

Conclusion
From the research study, it can be concluded that Samsung would be able to hold on to its prized
employees after rewarding the employees despite the poor performance. It would also help the
organization to rearrange the strategic HRM implementation by which the organization would be
able to fill the voids that were lacking previously.

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References
Android Authority. (2018). Samsung rewards Mobile division employees despite poor
performance in 2015. [online] Available at: https://www.androidauthority.com/samsung-
rewards-mobile-division-employees-669904/ [Accessed 3 Feb. 2018].

Goldstein, H., Pulakos, E. and Semedo, C. (n.d.). The Wiley Blackwell handbook of the
psychology of recruitment, selection and employee retention.

Isukapally, M. (2006). Employee Retention-Talent Management. SSRN Electronic Journal.

Numerof, R. and Abrams, M. (2003). Employee retention. Chicago: Health Administration Press.

Phillips, J. and Connell, A. (2012). Managing employee retention. Abingdon, Oxon.

Rekha, Y. and Devi, C. (2014). Employee Retention Challenges and Practices. SSRN Electronic
Journal.

Roberts, F. (1967). The politics of public employee management.

Peer Reviewed Journals:

Bais, D. (2012). Employee Retention Management:some Issues. International Journal of

Scientific Research, 1(4), pp.22-24.

Glick, L. (2010). Lessons for Managing Creative Staff. Design Management Review, 17(3),
pp.73-77.

Guest, D. (2017). Human resource management and employee well-being: towards a new
analytic framework. Human Resource Management Journal, 27(1), pp.22-38.

Mignonac, K. and Richebé, N. (2012). ‘No strings attached?’: How attribution of disinterested
support affects employee retention. Human Resource Management Journal, 23(1), pp.72-90.

Roberts-DeGennaro, M. (1986). The Case Management Model in Employee Assistance

Programs. Employee Assistance Quarterly, 1(3), pp.63-74.

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Ross, G. (1995). Management-employee divergences among hospitality industry employee

service quality ideals. International Journal of Hospitality Management, 14(1), pp.11-24.

Sigler, K. (1999). Challenges of employee retention. Management Research News, 22(10), pp.1-
5.

VAN DE, E. and VAN DER, G. (2003). BREAK THE SILENCE: DO MANAGEMENT
OPENNESS AND EMPLOYEE INVOLVEMENT RAISE EMPLOYEE VOICE
WORLDWIDE?. Academy of Management Proceedings, 2003(1), pp.K1-K6.

Wood, S. and Peccei, R. (1995). Does total quality management make a difference to employee
attitudes. Employee Relations, 17(3), pp.52-62.

Yamamoto, H. (2011). The relationship between employee benefit management and employee
retention. The International Journal of Human Resource Management, 22(17), pp.3550-3564.

Younge, K. and Marx, M. (2015). The Value of Employee Retention: Evidence From a Natural
Experiment. Journal of Economics & Management Strategy, 25(3), pp.652-677.

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