PEOPLE AND ORGANIZATION
The one of the major aim of each and every firm is to develop a good base of the customers and to expand the business. So, in order to complete this aim and to perform well, there are different ways and the techniques that are used by the firms. At the same time, in this, there are various issues such as increasing level of the competition, change in the technology, need of the customers, etc that are faced by the firm and affect the business of the firm. For proper handling the impact of all these factors, firms focus on the SHRM strategies, culture management, used of different motivation tools, etc that make easy the firms to have a successful business management (Barrick et al., 2013).
In the same concern of this, this report is based on the Samsung firm. Samsung is a leading electronic firm in the international market and it was found by Lee Byung-chul in 1938. Samsung is also second largest information technology firm at global level. Additionally, there are different products such as telecommunications equipment, chemicals, consumer electronics, home appliances, etc in which firm operates the business (Samsung, 2018). The major motto of this firm is to provide the different products for the customers with high quality and reasonable price. Due to this, Samsung operates its business in various countries and have approx 489,000 employees across the world.
Additionally, this report discusses the SHRM strategy of Samsung and also describes the importance of Hofstede cultural dimensions model in two countries like China and South Korea. This report also describes the impact of personality and the values on life and work outcomes. Eventually, in the last of this report, the importance of motivational concepts on the performance of the firm and employees’ behaviour are also discussed.
Impact of Culture on the Employees’ Behaviour and Organization
The success of the firm is depended on the management of the culture because due to the globalization, it now becomes easy for the firms to do the business across the boundaries. Because of this, culture is one of the major factors that have a significant impact on the business performance and the employees’ behaviour of the firm. Additionally, there are different countries that have different culture and for all firms that exist in the same culture, it is crucial to follow same value of the culture to perform well (Avey et al., 2010).
According to the Hofstede cultural dimensions, there are five parameters such as power distance, individualism, masculinity, uncertainty avoidance and long-term orientation that define the impact of culture on the employees’ behaviour and organization. In addition, it can be stated that there are various countries that follow the different culture.
Hofstede cultural dimensions model for Samsung with the comparison of South Korea and China
(Hofstede, 2017)
(Source: Hofstede-Insights, 2017)
Additionally, South Korea and China are two major countries and the culture of these both countries is totally different. Below is the different culture dimension of culture of South Korea and China and their impact on the employees’ behaviour and organization of Samsung.
Power Distance (China-80, South Korea -60)
The power distance is also one of the major parameters of the culture dimension. It is because power distance in the culture defines that how employees are familiar and the open with their seniors and managers. It is because it helps the firms to have an effective working environment and to complete it on time. In addition, if the power distance of the culture is high then the employees don’t have the permission to directly communicate with the managers that affect the performance of Samsung (Hofstede, 2017). It is because there is a process that has to be followed by the employees to communicate with the boss and the managers that create the issues for the employees to perform well and performance of the employees as well. Due to not proper communication with the managers or high power distance, the lack productivity of the employees affect the business of the firm and also affect the overall performance of the firm as well (Burtson, and Stichler, 2010).
On the other hand, if the power distance is low then there is full freedom for the employees of the firms to do the direct communication with the managers and the top level of Samsung. It makes easy the process and also enhances the productivity of the firm as well. Because of this, it can be determined that as per the culture dimension of power distance, low power distance in culture is quite better as compared to the high power distance.
The power distance of China is high as compared to South Korea. It means culture of China doesn’t provide the permission for the employees of Samsung to directly communicate with the managers that affect the performance of the firm. It is because there is a process in Chinese culture that is followed by the employees to communicate with the boss and the managers (Carraher, 2011). It creates the communication issues and affects the performance of the Samsungs’ employees as well. Due to not proper communication with the managers or high power distance, productivity of the employees also affects and creates the business issue for the firm (Barrick et al., 2013). But at the same time, the culture of the South Korea in terms of power distance is quite different from China. It is because the power distance of the South Korea is low that means there is full freedom for the employees of Samsung to do the direct communication with the managers. It makes easy the process and also enhances the productivity of the firm as well (Samsung, 2018). Because of this, it can be determined that as per the culture dimension of power distance, the culture of South Korea is effective as compared to China for Samsung to effectively manage the business and to handle the all business activities effectively. .
Masculinity (China- 66, South Korea -39)
It is also one of the major factors of the culture that influences the business of Samsung in both countries including parent and China. It means culture of different countries allows the people to the achievement of the work perform better, dedication towards the work, etc that helps for firms to perform better and to get a competitive advantage. The reason in this is that due to increasing level of the competition and the changing need of customers, it is difficult for the firms to sustain in the market and to develop a good base of the customers. Because of this, it can be determined that masculinity is one of the major factors or the aspects of Hofstede culture dimension that play major role in the successful business management and to perform well in the market.
In the concern of Samsung, it can be stated that for managing the business in South Korea and the China, Samsung has to be considered the masculinity factors. In the context of South Korea and China, it can be defined that the Masculinity ratio is China is high as it is 66, while in South Korea; it is 39 that is quite low from the China. So, from this aspects, it can be determined that culture of China allows the people to the achievement of the work, perform better, dedication towards the work, etc. it is quite helpful for Samsung to perform better within the firm and to manage the all aspects of the business as well (Altarawneh, and Aldehayyat, 2011). In addition to this, in South Korea, Masculinity ratio is low and it presents that there is lack focus of the employees on the hard work and the employees of South Korea is less success oriented as compared to the Chinese people. That is why, it can be stated that there is vital role of Masculinity for Samsung to perform better and to overcome the possibilities of arising the issues.
Uncertainty Avoidance (China- 30, South Korea – 85)
This factor is also considered as a major part of hofstede culture dimension by different firms at the time of operating the business in different culture. In this, if the uncertainty avoidance of is high that means in the culture, people are more conscious about the future and the life in the job and try to avoid the uncertainty as well as the unknown situations, while if the uncertainty avoidance is low that means people of that country don’t want to show their interest to avoid the uncertainty and the unknown situations (Hofstede, 2017). It helps the fir to successfully operate the business within facing any issues and the challenges as well as to target the maximum number of customers in less time. Because of this concern, every firm that operate its business in cross culture always try to consider the Uncertainty Avoidance factor of the Hofstede cultural dimensions.
Additionally, in the same concern of Samsung, it can be determined that uncertainty avoidance is one of the major factors of culture dimension that is considered by Samsung in its business. Furthermore, in the concern of Samsung, the uncertainty avoidance of South Korea is high that means in the culture of South Korea, people are more conscious about the future and the life in the job and try to avoid the uncertainty (Avey et al., 2010). It is because they think that the value of the society and the social culture is must for them. On the other hand, in the uncertainty avoidance, the culture of China is totally different from South Korea. It is because in China, people of china don’t want showing their interest to avoid the uncertainty and they just want to love the life free without any anxiety and issues (Hofstede, 2017). So, Samsung has to manage the business in China and South Korea by considering the uncertainty avoidance factor. Sometime, in the other countries, it creates the issues for the firm to target the customers and to expand the business at wide level.
There are different ways that are used by Samsung to get the success in the market and to handle the all business activities as well. In this, training and development strategy is one of the best and effective strategies that are used by Samsung and plays a major role in the growth of the firm. The reason in this is that Samsung operates its business at international level that creates the various issues for the firm in terms of culture, employees’ engagement, etc in the effective business management the business (Becker, and Huselid, 2010). So, in order to manage these issues and to effectively handle the all work there are different SHRM strategies that are used by Samsung.
Training and Development strategy
It is one of the major issues that are faced by Samsung during the business because of operating the business in different countries. In order to manage the business in different countries, culture is one of the major issues that create the hurdle for the firm due to the different in the language and the living standard of the people. So, for overcoming this issue and to manage the business in cross culture environment, training and development is the best and effective way that is used by Samsung (Burtson, and Stichler, 2010).
In this, Samsung provides the training for the employees regarding the new culture and other issues related the business that makes easy for the employees to perform well and to effectively handle the all working operations. From the research of Martin et al., (2011), it is illustrated that there are also various strategies that play a major role in the success of Samsung and to make success the training and development process of the firm. In addition, Samsung always tries to develop a learning work culture through training and development that helps Samsung to get success in the market and to develop a good base of the customers (Carraher, 2011). The reason this is that due to increasing level for the completion, the sustainability of the employees and to get a competitive advantage is one of the major challenges for Samsung. So, for managing these issues and to perform well in the market, Samsung tries to develop an effective learning work culture by providing an effective training for the employees regarding the cross culture and business management. It helps the firm by increasing the efficiency in the business and to sustain the employees for a long time period (Da Silva, and França, 2012). In the same concern of this, as Samsung operates the business across the worlds and in the different culture so in this case, the concept of training and development is quite important for Samsung. It helps Samsung to grow in the market and to develop a good base of the customers (Golding, 2010). So, by concerning this aspect, it can be determined that it can be determined that the training and development strategy is effective for Samsung in its growth.
Indentify the market and the need of the customers in cross border is also a major issue that is also faced by the firm. It is because different culture has different values and the people of that country have the special need. So, in order to complete the need of the customers of that country on time and to perform well, The HRM of the firm has needed to use the organizational development strategy. It helps the firm to perform better in the cross culture market and to target the customers as well. So, for managing this issue, Samsung uses the organizational development strategy that helps the firm to manage this issue and to perform well. In the research findings of Altarawneh, and Aldehayyat (2011), it is determined that organizational development strategy is also the main human resources strategy that is also used by Samsung in the growth. It is because in order to have the clear and the in-depth information about the need for the customers and the trend in the market. It is the result of this strategy that Samsung has covered lots of the electronics market at international level (Fernet et al., 2012). By using this strategy, it is easy for Samsung to identify the need for the customers and to provide the products for the customers as per the need of them that increase the profit of Samsung. Because of this, it can be stated that organizational development strategy of the firm is quite helpful to get the success in the market. But at the same time, in the research of Greguras, and Diefendorff (2010), it is determining that although the human resource department of the firm plays a vital role in the success of Samsung by using different marketing and business strategies but there are different issues and the challenges that are also faced by the HRM department of the firm. In this, cost, time, implementation of the strategies, employees’ engagement, etc are faced by Samsung and creates the business issue for Samsung. So, it can be stated that implement and manage the all SHRM strategies is not an easy task for Samsung in the business management.
To manage the business in cross culture, recruitment is one of the major issues that are faced by Samsung. It is because it is needed for the firm to hire and the skilled employees within the firm to perform better. So, in this concern, recruitment strategy is used by Samsung. Additionally,
It is an important strategy of Samsung that helps the firm to get success in the market and in the development of the organizations. Additionally, in the recruitments process of the firm, there is a process that is followed by the firm including test, group decision, interview, etc that helps the firm to hire the suitable and talent person for the job. It also assists the firm to get the competitive advantage and to target the maximum customers at minimum time (Gautreau, 2011).
Furthermore, take right decision on right time is also one of the major parts of recruitment strategy of Samsung that is used by firm for better business management. It is because Samsung deals in different business segments at international level so take the right decisions on right time is crucial for Samsung (Becker, and Huselid, 2010). In like manner, in addition, in the recruitment strategy, talent strategy is also one of the best and effective strategies that are used by Samsung to get a competitive advantage and to explore the business across the world (Samsung, 2017).
In this strategy, there are various ways such as focus on the best recruitment and the selection process, forecasting future staffing needs, etc that are used by Samsung and these all ways help Samsung to recruit the best employees in Samsung and to perform well. It also helps Samsung and the HRM department of Samsung to perform well and to get the additional advantage in terms of profit and the business expansion (Golding, 2010). At the same time, cross culture management is also a major part of the recruitment strategy of Samsung that helps the firm to get a competitive advantage and the growth in the international market (Barrick et al., 2013). The reason for this is that Samsung operates its business across the world so in this, firm faces various issues related to the cross culture, etc. In order to manage this issue and to perform well in the cross-culture, Samsung always considers the cross culture values of the people during the recruitment process. It helps the Samsung to increase its business performance and to expand the market. From the research findings of Avey et al., (2010), it is also determined that however, the use of recruitment strategy is the best way for the firms to perform well but at the same time, there are also various issues such as cost, training, work management, etc that are faced by Samsung and affected the business of Samsung as well.
Eventually, it can be determined that there are various ways that are used by Samsung there are different SHRM strategies that are used by Samsung to increase the level of performance and for a continued growth.
Impact of the personality and value on life and work outcome
The personality is the set of behavior of a person or an individual. But value has recognized the importance of a person in an organization. The personality and value both impacts on the persons daily life and also impacts on the work outcome (Barrick, et al., 2013). A good personality impacts the life of a person and helps them to do the work effectively in Samsung. The personality of the person affects the performance and reaction on the situation. Moreover, the value and personality also help the organization to increase the productivity and job satisfaction by using the business functions. The outgoing personality provides the best performance by affecting the other team members. In this kind of personality, the person helps other and boosts the attitude of the team members and happily treats them (Greguras, and Diefendorff, 2010). This kind of person has brilliant mind power and uses their power effectively for the success of Samsung. The person creates the positive image or good personality between the team members. The good personality in the organization affects the work behaviour and the person satisfies with their work. The job of the person also helps to create the personality (Yoon and Steege, 2013). There are five basic traits that are very useful to determine the human personality to effectively complete the organizational and daily routine work such as extraversion, agreeableness, conscientiousness, neuroticism and openness.
It is the major traits of the personality that direct the affect the performance of Samsung. It is because if the employee of the firm has the agreeableness treats of the personality that means it will direct affect the performance of Samsung as well. It is because the agreeableness nature of the employees creates the issue of trust, tolerance, etc that is not effective for the performance of the employees and Samsung as well. Because of this, it can be interpreted that agreeableness personality of the individual affects the performance of the firm as well as the outcomes of the work as well. In addition, there are also some parts of the personality traits and in this; openness is also one of the major parts of the personality traits (Swider, and Zimmerman, 2010). It is because if an employee has the openness then it creates new ideas, values, etc for Samsung that help Samsung to perform well and to develop a good working ethics. It is also same for the firm because if an employee has the openness then he/she put his/her full efforts in the success of the firm and try to grow Samsung that directly increases the performance of the firm. That is why, it can be stated that the openness in the personality one of the major aspects that play major role in the success and the growth of the firm (Gursoy et al., 2013).
It is also an effective personality type that pays a major role in the success of the firm and to increase the performance of the employees. It is because extraversion employees are effective for Samsung because extraversion employees are talkative, sociable, etc that is effective for the firms to create a learning work culture and to increase the performance of the firm and the productivity of the employees as well. Apart from this, from the research of Gursoy et al., (2013), it is determined that there is a huge impact of the behaviour and the personality of the people on the performance of the firm and the employees as well. But at the same time, it is also stated that there are different personality traits but at the same time, the nature of the employees and the behaviour of the employees also play a major role in the success of the firm. It is because if the behaviour of the employees is good then it helps the firm in the successful contribution in Samsung and also makes easy for the HRM of Samsung to successful implement the all strategies and policies effectively (Greguras, and Diefendorff, 2010).
There are also some factors that affect the personal values of the employees and the business of the Samsung also. The reason in this is that due to the changes in the technology and the need of the business, there are various changes that are to be done by Samsung and create the issue for Samsung in the successful implementation of HRM practices (Avey et al., 2010). There are also some other aspects such as culture, values, beliefs, etc in the employees personality traits that are also considered by Samsung and creates the issues for Samsung in the successful business management and expansion (Jerome, 2013). As well as, if there is no proper implementation of the HRM policies and the regulations that it also affects the internal and external operation of Samsung. The lack performance of the internal and external operation of Samsung also affects the work outcomes of Samsung.
In order to perform well and get the success within the firm, there are different factors that play a major role but at the same time, motivation is also one of the crucial aspects that have a vital importance in the success of the employees. It is because motivation increases the self morale of the employees and also makes a positive view of the employees towards the firm and the work also (Kaur, 2013). It provides the competitive advantage for the firm and makes easy the firm to get success in the market. In the concern of Samsung, it can be determined that as Samsung operate its business in different countries that create the issue for the Samsung in terms of employees engagement and the motivation (Fernet et al., 2012). So, in order to manage these issues and make better the employees behaviours, there are different motivational concepts that help the firm to manage the behaviour of the employees and to perform well (Lazaroiu, 2015). In this, intrinsic motivation, extrinsic motivation, positive reinforcement, successful applied different motivational theories, etc are the major concepts of the motivations that are used by Samsung and effective for the firm to manage the employees’ behaviours and performance as well.
Intrinsic motivation is an effective concept for the firm to manage the behaviour of the employees and to provide them motivation as well (Sánchez, and Hueros, 2010). It is because in this, the fair rules and regulations of the firm and the transparency in the business, etc provide the internal motivation for the employees and motivate the employees to perform well. So, in the concern of Samsung, it is effective because firm always have the fair business practices in the firm that provides the intrinsic motivation for the employees and helps the firm to work effectively within the firm.
It is also a major type of the motivational concept that is used by the Samsung to manage the business and the employees’ behaviour as well. The reason in this is that there are some psychological concepts in terms of better sales incentives, reward, performance appraisal, etc that are used by Samsung and makes easy the firm to increase the productivity of the employees and to overcome the various issues (Burtson, and Stichler, 2010). Because of this, it can be determined that intrinsic motivation and extrinsic motivation are the major motivational concepts that are used by Samsung for performing well and to manage the behaviour of the employees. Along with this, it can also be stated that positive reinforcement is also one of the effective concept of the motivation because due to this, employees feel comfort in the firm and also work in the firm with a positive mind set. In the positive reinforcement, Samsung uses the different methods such as praise, better salary, better job settlement, and reward that are used and provided by the firm for the employees. It helps the firms and the employees as well to manage the performance of the employees and to increase the productivity of the employees.
Furthermore, there are different theories such as Motivator-Hygiene Theory, Equity Theory, Maslow Needs Hierarchy Theory, etc that are used by Samsung. In this, as per the Maslow Needs Hierarchy Theory, there are some crucial aspects or the needs such as physiological, social, love, self esteem and self actualisation that should be completed. It is because fulfilment of these need provide the satisfaction of the employees and make a positive view of the employees towards the firm. In the same concern of this, from the research of Vuori, and Okkonen (2012), it is determined that in order to complete the physiological needs of the employees, Samsung provides better salary for the employees and also helps the employees to fulfil the basic needs. At the same time, in order to complete the remaining need of the Maslow Needs Hierarchy Theory, Samsung always use performance appraisal, different internal and external activities, CSR, etc that helps the firm to manage the employees behaviour and to perform better in the firm (Martin et al., 2011). That is why, it can be stated that in the motivation concepts, Samsung has a better use of the Maslow Needs Hierarchy Theory.
Furthermore, Samsung also follows the Motivator-Hygiene Theory in the business practices for better management of the employees’ behaviour and to enhance the performance of the firm. It is because in the Motivator-Hygiene Theory, it can be stated there are two major factors such as motivator and hygienic that play a major role for providing the full satisfaction for the employees (Gautreau, 2011). In the motivator factors, there are some tools or the tasks within the firm such as stimulating, challenging and absorbing work that are managed by the firm by concerning the need of the employees and due to this, Samsung is successfully operating the business across the world. Along with this, there are also some hygienic factors such as company policy, wages paid, working conditions, etc that are provided by the firm for the employees in order to manage the employees behaviour and to increase the performance of the firm as well (Sánchez, and Hueros, 2010). In the same concern of this, there are also different factors such as cost, time, etc that are also faced by Samsung at the time of managing the business at international level. So, it can be determined that applied these theories in the business segment for managing the business and the employees behaviour affect the other business operation of the firm.
The vroom expectancy theory is used to motivate the employees as well as for altering their behavior effectively. It focuses on altering the behavior of the individuals by reducing the pain along with increasing the pleasure. Vroom had realized that the performance of the employee is based on individual factor such as knowledge, skill, experience, personality, etc. Vroom had used three variables i.e. expectancy, instrumentality, and valence (Da Silva and França, 2012). The expectancy factor states that the employees in Samsung can increase their efforts that will help to increase the performance. For this the employees need to gather the right resources and apply right skills, etc. Instrumentality depicts that those employees who are performing well will get valued outcome for their performance (Sánchez, and Hueros, 2010). The employees in Samsung have trust on each other and have clear transparency that helps them to take effective decisions. In valence, the actual need of the employee must be satisfied by Samsung in order to motivate the employees. The employees work for getting some expected output in return (Carraher, 2011). So the employees in return put their efforts and work hard to attain those outcomes. This theory helps the employees to work in cross-culture by motivating them to put their efforts to achieve the outcome. This theory helps the employees to get motivation to work in different cultures effectively and to achieve the goals.
Along with this, Samsung also considers the equity theory as a motivational concept because it also helps the firm to successful achieve the business objectives and the behaviour of the employees as well. As per this theory, there are three types of equatorial behaviours including benevolent, entitled and equity-sensitive that plays a major role for increasing the productivity of the employees and behaviours (Burtson, and Stichler, 2010). The first factors benevolent states that there is full satisfaction for the workers when they are rewarded compared to co-workers and at the same time, they also feel guilty at the time when they equally or over-rewarded. In this the performance management of the employees is also a major part. In this, there are various ways that are used by the firms in the performance management but Samsung uses the 360 degree appraisal. It is because it helps the firms in this, firm provides the certain task for the employees and on the basis of this, and feedback is provided for the employees from managers, customers, etc (Swider, and Zimmerman, 2010). It makes easy for the firms to perform well and to provide a better performance appraisal for the employees. In addition, equity-sensitive states that every employee should be fairly rewarded. On the other hand, entitled states that co-worker feels they should be over rewarded. So, in this, Samsung follow the all these factors but the one of the major focus on the equity-sensitive that helps the firm to perform better and to have a better management of employees behaviour.
Need hierarchy theory of Maslow
In order to motivate the organizational employees, Maslow provided five stages of the need of a human being such as Physiological, Safety, Social, Esteem and self-actualization needs (Kaur, 2013). Maslow believed that after satisfaction of the first stage need a person can also be motivated by another need.
- Physiological needs– The physiological demands of person should be satisfied otherwise a person cannot be alive such as water, food, air, clothing, sleep, etc.
- Safety needs– For the protection of a person, the safety needs of a person should be satisfied for example- personal safety, financial security, well-health, and wellbeing. The safety needs of a person can be increased after the satisfaction of the physiological needs (Jerome, 2013).
- Social needs– The social needs of a person satisfy the interpersonal relationship with the relatives and known persons such as friendship, trust, love, etc. In the views of Maslow, this need of an organizational person can be satisfied after the fulfillment of physiological and safety need.
- Esteem need- The esteem need includes the self respect, competence, freedom, recognition, power, confidence, achievements, status, attention, etc. At this stage, a person needs own social respect and value in the society.
- Self-actualization need– This need is never fully satiable because it has a very high level of need. This need also have some feature of esteem need and some found the opportunity to get a high growth.
The need hierarchy theory by Maslow is also used in Samsung to motivate the organizational employees in an effective manner. The HR managers of Samsung found the need of an individual to motivate them and improve the individual performance (Lazaroiu, 2015). The physiological and safety needs of an employee is easily identified by the management and try to satisfy it for highly improve the performance of an individual employee. At the same time, the organizational management also focuses on the social and esteem needs of individuals for appreciate them for organizational success (Swider, and Zimmerman, 2010). The management of Samsung also provides rewards, bonus, leaves, and healthcare facilities to the employees in order to satisfy them in an effective manner.
Alderfer’s also provided the motivational theory which also supports the Maslow’s need hierarchy theory. The ERG theory includes three parts Existence, Relatedness, and Growth that satisfy the needs of the consumer as par the Maslow need theory. In the existence, the organisation fulfils the needs related with the physiological and safety of a person. Additionally, relatedness helps a person to satisfy the social needs of an individual in an organisation (Ball, 2012). The third need is the growth that includes the features of the esteem and self-actualization needs. By the use of this motivational theory, Samsung improves the performance of an employee and motivates them to done the work for improvement in the personality. The performance and behaviour of an employee and individual in Samsung organisation can increase by the use of this theory (Vuori, and Okkonen, 2012).
From the above discussion, it can be concluded that Samsung is one of the leading firm in the market and manage the business effectively at international level. At the same time, it can also be concluded that culture is a very important aspects that is also considered by Samsung to manage the business in different countries with the special concern of South Korea and China. it can also be determined that in order to successful manage the business, firm uses the Hofstede cultural dimensions that makes easy Samsung to operate the business in China and India. In like manner, it can also be concluded that there are different motivational concepts and the SHRM strategies that are also used by the firm for successful business management.
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