Table of Contents
Human resources represent the key asset of any organization. The quality of this resource directly influences the competitive advantages, strategic prospects and the opportunities of the organization. The Samsung Corporation is a world leader in the field of the telecommunication equipment and digital technologies. Around 200 000 people work in 124 offices of the company in 47 countries across the world (Samsung Sustainability Report, 2015). The company is one of the most competitive world leaders that invest into their own human resources, composing its main assets. Like any international organization, the Samsung Corporation seeks the most effective use of the potential and opportunities for the employees, creating the favorable conditions for the successful work and continuous staff development. In this regard, staffing occupies the leading place in the company’s management as it serves as a straight line and an immediate cause of the labor behavior of employees (Samsung Sustainability Report, 2015). Being an integral part of the formation of the company’s labor capacity, staffing strategies used by Samsung allow hiring and retaining the most motivated employees who strive for the achievement of the company’s goals.
People represent the key value out of five main values of the Samsung Corporation. According to the Samsung Sustainability Report (2015), the prosperity of the company depends on the correctly selected human resources. For this reason, the company pays great attention to the development of staffing strategies. The clear formulation of the personnel policy of Samsung is one of the main conditions for the development of the appropriate HR policy (Samsung Sustainability Report, 2015). While recruiting the employees, the HR managers prioritize the ability of the candidates to share the company’s values. The personnel policy is the basis for the coordination of the work with people in terms of the analysis of the various aspects of the HR management.
Essence and Factors of Staffing
Staffing is a process in which the organization selects and recruits the employees who are most suitable for the vacancies from the list of applicants. Like any system, the staffing system in Samsung is characterized by several components and the internal links between them. The company operates in the complex external environment being in constant interaction with it (Hausknecht & Wright, 2012). The existence of the links with the external environment is based on the open, artificially created social system inherent to the staffing process. Thus, the role of staffing as a system element of the human resource management is to timely meet the needs of the organization in the qualified and competent personnel (Guo, Rammal & Dowling, 2016). The main aim of staffing in the company is to find the candidate, whose professional and personal qualities would meet the requirements of the vacant position and the organization in general.
Staff recruitment in the organization includes a range of measures taken in the process of selection of the candidates who possess the qualities necessary for the achievement of the goals established by the organization. Staffing consists in the comparison of requirements imposed by the employer and qualifications of the candidate. The successful staffing occurs only in the conditions of complexity of the approach and technological effectiveness of the business methods applied by the company (Hausknecht & Wright, 2012). It requires the announcement of the need for the personnel, the choice of the staffing methods and strategies, the analysis and development of the criteria of the search for the required specialists, the organization of the personnel assessment for the existing vacancies, the implementation of the adaptation program, introduction of the new employees, etc.
In regard to staffing, the correctly chosen staffing techniques and strategies allow recruiting and retaining the most professional and competent employees. According to Hausknecht and Wright (2012), while applying these methods and strategies, the company’s HR managers take into account such aspects as the production specifics, the size, complexity and technological variability. In the recruitment process, they apply the methods of selection, such as filling in of questionnaires and writing of autobiographies, holding conversations in the form of interviews, and sitting different tests (Hausknecht & Wright, 2012). The best results are achieved when the recruitment methods are combined, while the staffing process is correctly organized.
The choice of the staffing strategies in Samsung depends on a number of different factors, including the current conditions in the labor market, the regional and branch positions of the organization, its strategic and tactical goals, the stages of the life cycle, the characteristics of structure and organizational culture of the enterprise, the specifics of a vacancy, etc. In the course of the staffing process, it is necessary to estimate the level of the professional skills, abilities and knowledge of an applicant, as well as the possibility of his or her potential development in accordance with the anticipated goals of the organization (Guo et al., 2016). It is quite a labor-intensive and complicated process for a number of reasons. First of all, the HR managers are generally guided by their intuition, the recommendations of partners or the references. As a result, the ability of the specific employee to effectively contribute to the fulfillment of the company’s objectives is not adequately estimated. Secondly, there is no uniform methodological basis for the separate technologies or their fragments applied during staffing by the subjects of management, such as the HR departments, the recruitment agencies, the private headhunters, etc.
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The main workplace staffing methods include ethnocentrism, polycentrism, region centrism and geocentrism. According to Guo et al. (2016), the ethnocentrism presupposes the recruitment of the staff from the host country for all key positions available in both the host organization and the foreign affiliates. The polycentrism presupposes the appointment of the representatives of other nationalities present in the country to the key positions. This approach is based on the trust to the local heads and their knowledge of the local markets, people and the governmental policies of the country of residence. The regional centrism presupposes the regional appointments to the key positions determined by the specifics of the region. This approach is applied when the goods manufactured by the company are sold without any changes worldwide, in which case the marketing would consider only the cultural distinctions of the countries and regions. The geocentrism consists in the filling of the key positions by the qualified employees, irrespective of the nationality, culture or surrounding (Guo et al. 2016). At the same time, the human resource management, production, marketing, and the distribution of resources are carried out on the global basis. The main task of the staffing process in the Samsung Corporation is to find the correct “employee” for a definite position in due time. The company uses the geocentrism approach, recruiting the individuals who possess all necessary skills and abilities necessary for the definite position.
Staffing Strategies in Samsung
The staffing strategies in Samsung are related to the staffing solutions which define the considerable long-term effect on the employment and development of the personnel in order to realize the main goals of the company. At the same time, the selection of the company’s competitive working staff is carried out by taking into account the possible and already occurring changes in its external and internal environment.
The key elements of the staffing system in Samsung include the leading staffing principles, stages, and philosophy. The main workplace staffing principles applied by the company include planning, optionality and the active personnel selection (Samsung Sustainability Report, 2015). The principle of planning is expressed in the tendency when all actions for the selection of employees are taken systematically and are based on the planned requirement of the enterprises to be coordinated with the development strategy of the organization and its further prospects. The principle of optionality means that the organization seeks to attract as many applicants as possible, increasing the probability of the recruitment of the most suitable candidates. The principle of an active personnel selection presupposes the constant work with the applicants for the definite position characterized by the application of the active staffing methods. The staffing in Samsung starts from the search and identification of the candidates both within the company and outside it as well as taking into account the requirements and necessary costs. The company uses the active staffing strategies when the labor demand exceeds its offer.
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The filling openings strategy is the first workplace staffing strategy also used by Samsung. This strategy presupposes the search for the candidates for the open positions inside the organization. In case of the staff turnover or the introduction of new positions, the HR managers start searching for the best candidate for the available position from the list of the company’s current employees. In these conditions, the management pays more attention to the employees already working in the company. Moreover, the employees also assist in the filling of the openings making the perspective employees known to the HR managers. The filling openings staffing strategy allows rotating staff within the company without the additional expenses for the recruitment and education of the new employees.
The staff balance is another important workplace staffing strategy applied by the Samsung Corporation. The balance between the employees and contractors and their salaries forms an essential part of the production costs. Therefore, in the conditions of the market relations, the company seeks to establish the optimal balance of the employees in order to minimize the operational costs and guarantee competitiveness.
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Samsung tries to balance the personnel in parallel with the planning of the whole business. The balance between the employees and contractors is closely connected with the planning of the production, sales, finances, and turnover. When balancing the staff in the company, the heads of Samsung are guided by such principles as the compliance of the number and qualifications of employees and contractors with the volumes of the planned amount of work, the conditionality of the personnel structure by the objective production factors, the maximum efficiency in the use of working hours, the creation of conditions for the professional development and the expansion of the production profiles of workers.
Diversity of Goals
The staffing diversity represents one of the workplace staffing strategies. The diversity of the human resources is a rather complex problem for the company, which aspires to hire the representatives of different cultural and racial groups. Samsung applies the diversity of talents and leaders. The Samsung Corporation implements the access and legitimacy diversity principle, claiming that the access to the new markets may be difficult without the attraction of the employees possessing different cultural, social and other characteristics, while the legitimacy presupposes the trust to people. Moreover, the company applies the learning and effectiveness principle, which represents the incorporation of different points of view in order to increase the efficiency of the separate decisions, strategies, and rules, as well as determine the mission and changes in the corporate culture (Samsung Sustainability Report, 2015). The application of the diversity principle plays an essential role in the effective implementation of the diversity staffing strategy.
The company provides the equal opportunities for the recruitment, employment, professional development, promotion and compensation of any conditions of the labor relations for all employees and candidates irrespective of their age, religion, skin color, marital status, gender self-identification, sexual orientation, and the state of health (limited physical or intellectual capacities). Moreover, it does not discriminate its workers by the existence of the status of a veteran, the country of origin or the other characteristics stipulated by the applicable legislation in accordance with the applicable laws and jurisdictions (Samsung Sustainability Report, 2015). Besides, the company provides the professional and safe working environment without the drugs abuse and discrimination, along with motivating the employees on the basis of the results of their work and efficiency. Therefore, the diversity management allows better integrating the on-going processes into the organizational and production procedures.
Retention of Employees
The retention of employees is another key workplace staffing strategy used by Samsung. The retention staffing strategy is aimed at the retention of the key employees in the organization and maintenance of the staff turnover at a sufficient level. These goals include the planning of tasks, the motivation of employees, a strong corporate culture, education of employees and career development. The planning of tasks allows the employees to master their skills, making the work process easier and more engaging. The motivation and stimulation, both financially and morally, represent the main and the effective means for the development of the positive culture, bonuses, and remunerations. Besides, the career promotion and the public declaration are necessary for the retention of the best specialists in the company. Even the employees who do not possess the highest potential work much better in the companies that remunerate the best workers. The system of bonuses used by the company is connected with the key performance indicators (KPI), reflecting the results of performance and efficiency of the employee and the correspondence of his or her behavior to the organizational culture. The key motivating factors for the employees in the Samsung Corporation include the healthy corporate culture, the interesting professional tasks, the recognition of the employee’s professionalism, trust and delegation of responsibilities, the long-term perspectives of the career development, the training opportunities, the professional self-development, the stability and the positive dynamics of the business development, and the known positive reputation of the company. While the public recognition remains the most important element of the successful corporate culture, the highly effective employees need to receive the regular appraisal and the official messages of support and remuneration from the administration.
The strong corporate culture essentially influences the retention of employees in Samsung. It uses the so-called “corporate philosophy”, including missions, code of corporate behavior, the development strategy, personnel policy, the systems of internal communications, etc. The constant education as well as training aimed at the increase of the professional competence and skills of employees is another key element of the corporate culture, promoting the retention of the talented employees. The top management starts the education of the talented employees from the moment of their recruitment, thus making the future leaders out of them. Samsung offers the best opportunities for the constant education and training based on the innovative platforms and the individual schedules for its employees. The 2015 Samsung Electronic Sustainability Report states that the company focuses on the importance of the constant education and training:
Samsung provides compliance training for all employees - both in Korea and around the world - to promote clear understanding of the company’s compliance goals and to create a compliance culture. Training programs are designed to provide basic compliance education to all employees with advanced customized training related to specific job requirements (p.30).
Therefore, the effective educational process in Samsung increases the level of competence and confidence in the achievement of the efficiency standards, improves the skills and abilities of employees, and helps them to acquire the new knowledge and expand their own outlook, etc.
Employee Development and Professional Growth
The possibility of career growth and self-development includes the understanding of one’s own career and professional opportunities, participation in the professional competitions and interesting projects, including reports, professional conferences and business forums. Samsung uses the various channels for the professional and career growth of its employees, mainly by providing the necessary conditions for the mastering of the broader experience of the employees and introducing the more systematic procedures for the identification of the labor potential. Moreover, it encourages the promotion of the inner organizational reserves, develops the procedures for the identification of the labor potential on the basis of the principle of equality and provides the consultations and professional advice on the career development.
The following recommendations will allow the company to implement the staffing strategies more effectively. Firstly, it is important to analyze all spheres of the employee’s activity. For each employee, irrespective of the occupied position, it is important to feel as a part of a huge company and to know that his or her suggestions and ideas will be appreciated. Moreover, the company’s employees should see the prospects of the professional growth and career development. There are formal and informal polls, questionnaires, tests and other methods of the performance appraisal. They allow analyzing the situation regarding the human resources in the company. Secondly, the effective staffing strategies allow recruiting and retaining the most gifted and effective specialists, at the same time giving the prospects for the development and growth to the employees. The development of the effective programs aimed at assessing the personnel effectiveness and the formation of the long-term and short-term plans and goals will be essential for the effective implementation of the staffing strategies in the company. Thirdly, it is important to develop the initiative among the employees. The HR managers of Samsung should train employees to develop their leadership qualities as well as the interest in the company. Fourthly, it includes the changes in the labor compensation. It is recommended to restructure the salaries of the employees in accordance with such categories as a competitive salary, the payments for results, and the flexible system of privileges. The competitive salary should be paid to those employees who perform the individual work. The payment for the results includes various bonuses that will be an additional incentive of the performance improvement. The flexible system of privileges presupposes the possibility to choose the various options of privileges, including the health insurance, pension, various grants, social security of children, etc.
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Having studied the staffing principles of the Samsung Group, it is possible to draw a conclusion that the company pays much attention to the staffing strategies, which allow hiring the motivated employees in order to fulfill the company’s goals. The staffing strategies, including filling opening, staff balance, diversity goals, retention of staff and employee development, are rather effective. The various training programs aimed at the professional development give the company’s personnel a chance to continuously increase the level of professionalism and meet the company’s requirements.
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