Samsung is one of the biggest technology giants globally, and it makes hundreds of products in diverse categories. However, the company's management style sometimes seems rigid, with a complex hierarchy structure. The South Korean firm wants to change that, and it is bringing some structural changes.
Right now, Samsung has seniority and rank-based hierarchy, similar to many other Korean firms. It is being reported that Samsung Electronics is changing its HR (Human Resource) management system across the company for the first time in five years. The company aims to make a flexible and flatter organizational culture, similar to startups and other US-based firms.
The company is planning to evaluate the abilities of individual employees and reward them accordingly. The South Korean firm is also planning to assess employee performance on an absolute scale rather than a relative one. It might also bring a peer evaluation method (with three colleagues chosen randomly), similar to many firms in the US. With this change, Samsung aims to make its decision-making process more agile while cutting down rising costs.
Samsung currently has four levels of hierarchy, and that was changed in 2016. The upcoming management style changes will be the first time in the past five years. The company has already held a few briefing sessions and is gradually informing its employees about the upcoming changes.
One Samsung official said, “By bringing changes to our personnel management system, Samsung Electronics is trying to create a flexible and horizontal organizational culture, and we will be able to announce the changes at the end of this month. As it is a system that has an impact on the work activities of employees, we are preparing for this by collecting various internal and external opinions.”
With the management style changes that Samsung is pursuing, the company wants to become more flexible and adopt changes in the industry. Since Samsung is a massive contributor to the Korean economy, these changes are being closely watched by industry experts and other firms.
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