Samsung Issues in Human Resource Essay

3026 Words Nov 7th, 2010 13 Pages
Samsung: Proposal for New Human Resource Strategies to Survive the New Business Environmental Volatility
Byungcheol Shin and Jeonguk Jo
Kwangsik Choi and Myojeong Kim
University of Seoul

The business environment have become more volatile due to economic crises and changing markets. Samsung, a leading conglomerate of Korea, is not an exception. Samsung is undergoing many issues related to human resources, and will not survive if it chooses to stay passive to the upcoming business environmental volatility. In this report, Samsung’s current policies and issues related to human resources are examined and discussed. The topics concerned are job retaining, job satisfaction, job security, global recruitment, job relevance,
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← Enhancing Motivation by Providing Appropriate Compensation for Performance. ← Implementing a New Recruitment System with Higher Job Relevance. ← Implementing the Career Development Plan to Reinforce Job Security. ← Instituting a New Department for Employee Rights.

Reinforcing Outplacement for Higher Morale The current outplacement system that Samsung announces places ex-employees to the position of advisory or councilor depending on the rank after retirement, providing up to 50-70% salary of the current annual pay. Also, Samsung provides continuous information and offices to ex-employees through various gatherings such as the Sung-woo, or other ex-employee gatherings. Although Samsung presents a very privileged outplacement system, the problem is that benefits are supported exclusively to employees that have achieved ranks over executive management levels that only apply to roughly 1700 employees, despite the fact that the number of workers in Samsung group exceeds 170,000. Normally, employee outplacement system should provide various consulting methods such as re-employment to other companies, personal ventures and retirement plans, whereas Samsung’s outplacement system to employees other than executive management level only provide a small financial support. This does not help employees develop their necessary skills for their career, and results in employees’ low trust of Samsung about outplacement. This

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