Running head: MANAGING AND RETAINING EMPLOYEES

MANAGING AND RETAINING EMPLOYEES

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Executive summary

The report provides a detailed description of the Human resource management of Samsung

organization. In the year 2015, the company has faced some mobile division issues and

performance was relatively low. To get the information a news story of Samsung has been

selected here. However, with the help of proper HRM practices the companies can get various

benefits. Thus, the rewarding of Samsung to their staffs for developing the performance has

elaborated in the report. The overall employee management, retention of Samsung has given

here. On the other hand, the each detail of the challenges of Samsung has been described in this

report. In recommendation there are some suggestions for the company which can be used in

their future. In the last part of the report the overall findings of the study has been elaborated

effectively as well.
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Table of content

Introduction ..................................................................................................................................... 4

Description of the news story ......................................................................................................... 5

Problem identification ..................................................................................................................... 5

Evaluating the news and the challenges of Samsung...................................................................... 6

Impact of the news story for the employee engagement................................................................. 8

Challenges of Samsung in employee management ......................................................................... 9

Challenges for retaining the employees ........................................................................................ 10

Recommendation .......................................................................................................................... 11

Conclusion .................................................................................................................................... 12

References ..................................................................................................................................... 13
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Introduction
The report has a detail description regarding the human resource management of Samsung. In

terms of conducting the report, there has been selected a news story based on Samsung mobile

division. In the news story, the overall information regarding the HRM process of Samsung has

been given. Samsung is a multinational company. They are conducting their business efficiently.

They are also getting successful to provide an intense rivalry to Apple. They have a significant

role in managing the workplace and the employee management. Along with this, the company

takes several steps for retaining their skilled staffs. However, there were some challenges in the

mobile division of the company. For reducing the problems, Samsung adopts some practical

strategies as well.

Aim: Thus, the main aim of the report is to discuss the various reward plans of Samsung for

improving their performance in mobile division.

The methodology: Regarding analysing the essential steps of the company for their HRM

process a news story has been selected. The overall theories of employee retention, motivation,

staff management, rewards systems have been gathered through a secondary research

methodology. Apart from this, the data have been analysed by the qualitative data analysis

method.

Thesis statement: The research or the report can efficiently provide the issues of mobile

division Samsung, and their useful HRM approaches for managing and retaining the employees.
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Description of the news story

The article is all about the Company Samsung and its human resource management. Apple is one

the major competitor of Samsung. However, Samsung achieves the top position in the mobile

industry. But In the year of 2015, the company didn’t perform well, and their sale also goes

down compared to the other divisions. The company faced sales issues in 2015, due to

developing of the cheap Chinese vendors (Android Authority. 2018). Still, Samsung has

rewarded the employees and give them bonus for motivating them towards the work. However,

the company offers a maximum bonus to the employees for running the business successfully in

this desperate situation (Wombacher & Felfe, 2017). According to a Samsung official, the

employees failed to achieve the objectives as well as profit margin set by the organisation. But

they have worked hard for achieving the sales target.

Problem identification
Samsung was rewarding the mobile division employees in 2015 for developing company

performance. The news story describes the internal and external problem associated with the

company and also explains the reason behind the Samsung’s poor performance in 2015. In 2015,

many Chinese companies were offering quality smartphones at low price. Therefore, customers

also like to buy those mobile phones at the reasonable cost. Mi, Oppo, Vivo and other Chinese

vendors are growing significantly in this industry, and this creates negative impact towards

Samsung.

However, the company was also facing many internal issues at that time. The leadership skill of

the leader is not up to the market (Johnson, 2017). Therefore the leader fails to manage the
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employees in this challenging situation. The management division of the mobile department also

faced many issues during that time, and the main reason behind this is the lack of leadership

skill.

Samsung faced many internal and external challenges in 2015, and these are the main reason

behind the company’s poor performance on that year. However, the management department of

Samsung needs to adopt some HRM strategies to overcome those challenges in a proper way.

The management team needs to implement those strategies for solving the business issues in the

upcoming year also (Potgieter & Mawande, 2017).

Evaluating the news and the challenges of Samsung

From the news, it can be seen that Samsung has been rewarding their employees of their mobile

division due to the poor performance of the company. In the case of analysing their rewards

critically, it can be seen that the company was also facing the issue in the strategic management

implementation (Hom et al. 2017). They were also getting a massive competition from their

rivals. However, the company has been adopted some strategies that have been discussed below

 Employee turnover and retention: For running the business efficiently the company

needed to focus on the employee retention. There some HRM approaches that help the

company to retain their employees. In this case, they utilised rewards for the employees,

proper job satisfaction and other HRM policies. With the help of usefu lrewards, the

company inspired their employees to work. Along with this, the employees want to

conduct their jobs as per their skills and efficiency (Al Mamun & Hasan, 2017). Thus, the

company had focused on providing them proper job satisfaction by fulfilling their
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demands. The companies use the reward systems and the job satisfaction policies for staff

retention. It is also a signal of the employee retention as well (Lyria, Namusonge &

Karanja, 2017). According to the study the companies always need to be focused on their

workplace management process. Proper workplace can help the company to provide job

satisfaction. However, the subsidiary staff’s commitment as well as the satisfaction level

has impacted by the human resource practices and policies of Samsung.

 The performance management: The Company Samsung was facing some challenges in

their performance management process. The company was facing fierce competition in

their mobile division. There are some market gainer Chinese companies in the market.

The companies provided issues in the sustainability of Samsung in 2015. Thus, Samsung

was unable to get any competitive advantage in their mobile division (Burton et al. 2017).

They were not so much useful in the production process in that time. However, Samsung

was trying to implementing some superior performance management and leadership in

their company. Therefore, they could get some competitive advantages by developing

their performance and competition level (Naim & Lenka, 2018). A company can get a

proper competitive advantage by improving their products, services as well as unique

business policies. There is an argument regarding the factor of competitive advantage

(Bailey et al. 2017). Other scholars say that the companies can earn competitive

advantages by making effective strategies. So, Samsung had developed their HRM

policies to maintain their performance of the employees by keeping both arguments in

mind.
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Impact of the news story for the employee engagement

With the help of employee management, the companies can be beneficial to get positive effort

from their employees (Singh & Satpathy, 2017). In the news story, it has been given that;

Samsung was trying to make a proper employee management by rewarding employees of the

mobile division. The company was giving poor performance constantly in the mobile division.

Thus Samsung thought they have to keep their efficient employees to increase company

performance. The overall scenario was based on the employee management process.

 Motivating and rewards: When a company wants to deliver proper services to their

customers then they need to make a good relationship with the employees. The internal

environment of the company needs to be supportive for the employees so they can be

motivated as well (Ruck, Welch & Menara, 2017). However, in Samsung proper

employee engagement and reward policies had developed the performance of the

employees. Thus, the company could efficiently build their production process.

 Learning and development: By using efficient HRM policies the company can make

their employees more skilled and inspired. However, to develop the skills and knowledge

of the staffs the company can arrange some training, provide proper feedbacks, and to

make appropriate workplace design and so on (Richardson, 2017). So, Samsung also

utilised the same HRM strategies for motivating the employees and developing their

performance (Rees & Smith, 2017). The strategy of Samsung helped them in their

employee management process for a long time. The company had effectively overcome
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the issue of poor performance in mobile division by retaining their former skilled

employees and making the new employees more efficient.

Challenges of Samsung in employee management

Employee management is essential in the organisation. Every organisation needs to focus on the

workplace issues for better employee management. The leader has the role in identifying the

employee issues and managing the employees efficiently. According to the news story, Samsung

also faced many sales issues within the organisation. So, the leader of the company did not want

to face challenges regarding employee management (Lussier & Hendon, 2018). Some of the

significant challenges that the Samsung could met within the organisation regarding the

employee management are discussed below

 Employee issues: Samsung is a multinational organization,and they have faced some

sales issues within the organization. Thus, low selling had provided impacts on the

employees as well. In this case, the employees of the organisation faced many challenges

such as personality conflict, individual conflict, management conflict and other conflicts

within the organization (Kavanagh & Johnson, 2017). Therefore, the employees had also

faced many work challenges with the organisational structure and the management team

(Petrou, Demerouti & Xanthopoulou, 2017). The management team of the company

needed to identify those issues and implement significant steps for managing this.

 Team issues: Samsung also faced team issues within the organisation. Personality
conflict among the employees could create negative impact towards the work

performance and team management. Miscommunication among the employees could

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bring severe negative impact towards the organization and the management team (Gibbs,

Neckermann & Siemroth, 2017). Therefore, the team leader needed to focus more on the

employee issues and needed to collect feedback from the employees. So they could

identify the workplace challenges and potential solutions.

Challenges for retaining the employees

The employees of Samsung could face many internal and external issues within the organisation

despite of poor performance of the company. Therefore the management team also faced many

challenges for keeping the skilled employees in the company. Samsung is a global organisation.

Thus retaining the old employees had become a tough challenge for them. According to the news

story, Samsung faced many challenges in maintaining the staff. The problems are as follows

 Recognition: Some of the employees within the company felt unrecognised and

unappreciated. Therefore Samsung could face the issue for retaining the old employees in

the organisation. Thus the company needed to target all the skilful employees with the

help of proper recognition program. Other scholars say sometimes the employees seek

acknowledgement (Guest, 2017). So the management team of Samsung needed to be

more focused.

 Self-development: All the employees in the organisation want better opportunities and

self-development. Sometimes they want professional opportunities in their respective

fields. Therefore in 2015, Samsung faced some issues regarding retaining the

knowleadgeble employees within the organisation as there were not much opportunities

for them. In this case, Samsung needed to focus more on the Self-development
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implementation programs for increasing the personal satisfaction and retention levels of

the employees.

 Compensation: All the employees within the organisation want equal pay (Hoffman &

Tadelis, 2017). Sometimes the skilful employees wish to get increment in the salary. In

2015, the employees felt that Samsung is unable to pay compensations. Thus, for

retaining their skillful employees the company decided to pay them huge compensation.

Recommendation
Samsung faced many challenges within the organisation due to poor performance of the mobile

divsion. Here are some recommendations that can help the company in managing employee

issues and workplace issues efficiently.

 Chinese vendors are giving quality smartphonesat low prices. Therefore Samsung can

bring new smartphones at low prices to capture the market quickly.

 The management team of Samsung needs to focus on the employee issues and deepening

on this they need to adopt some new management strategies for better employee

management. Better employee management can bring success to the organisation.

 Samsung is a global company. Therefore the employees faced many challenges, and the

organisation also faced many challenges regarding retaining the old employees. Thus, the

organisation needs to focus on the former employee's issues and also need to manage all

those issues efficiency. The company can offer attractive compensation packages to the

former employees for retaining them in this company.

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Conclusion
After analysing the report, it can be concluded that Samsung has been successfully overcome

their challenges. They have introduced various HRM strategies to develop the performance of

the company. The plans helped the company to strengthen the power of their employees and

rearrange the quality of their performance. They have conducted several HRM practices such as

employee management, motivate the employees, identified the team issues and many more.

Thus, in future, if Samsung face the same challenge the past experience may help them out to

overcome the problem and make them profitable again. However, in future, the management

team can identify some competitive strategies for gaining competitive advantages over Chinese

competitors. On the other hand, they can give more rewards for motivating the employees in the

workplace for retaining experienced employees.

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Android Authority. (2018). Samsung rewards Mobile division employees despite poor

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Peer reviewed

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