Samsung Electronics Human Resource Management

Designing Superior Team Case

It’s now the world largest and most profitable consumer electronics company. No, it’s not Sony. It’s Samsung Electronics, and in 2005, it knocked off Sony as the world’s most valuable consumer electronics brand, according to the most recent valuable global brands survey done by the Interbrand Consulting  Group. It’s clever product designs have won over consumers and won numerous awards.

        Samsung group was founded as a trucking money company in the 1930s and in the 1960s became one of the several chaebol (large conglomerates) “shaped by the Korean government and protected from foreign competition by import duties and other government-sponsored regulations.” The electronics division, Samsung Electronics, is by far the largest and most global on the Samsung businesses.

        Although Samsung Electronics is sitting on the top now, Kim Byung Cheol, a senior executive, is worried about his company’s future. Why? Because Samsung “still has not mastered one crucial factor: originality.” Much of Samsung’s success in electronics can be traced to its ability to mimic and enhance others’ inventions, but it has never been the design innovator. Mr Kim says, “We are at a pivotal moment for the company. If we don’t become an innovator, we could end up like one of those Japanese companies, mired in difficulties.” However, analysts say that if any company can change itself, it’s Samsung.

        One of the first things the company is doing is investing $40 billion in research and development over the next 5 years, double the amount is spent in the previous 5 years. And accordingly, it is doubling its number of product and design researchers, going from 13,900 to 32,000. Samsung’s extensive commitment to changing its R&D capabilities is showcased in its newest facility-the Digital Research Center has office and laboratory space for 9,000 research, although only around 5,000 have been hired. Samsung in making it a global endeavor; 150 of the researchers are from foreign countries, including China, the United States, and India. However, R&D isn’t the only area where Samsung is focusing its efforts. Product design continues to be an important component of its future strategies, as well.

        At the company’s design center just a few blocks among from headquarters, in Seoul, the geographical distance isn’t the only evidence of the separation. Here, designers work in small teams with three to five members coming from various specialty areas and levels of seniority. Even though Korean culture has loosened up somewhat, respects for elder and a reluctance to speak out of turn are still the norm. But here at Samsung’s design center, there’s no dress code and team members work as equal. Everyone-even the youngest staffers who often have their hair dyed green or pink-is encouraged to speak up and challenges their superiors. But the departure from corporate tradition has helped Samsung emerge as an innovative design leader. With innovative design and innovative products, Samsung Electronics is positioning itself to continue its successful global brands strategy.