Samsung Management Essentials - Case Study Example

Samsung Management Essentials Institution Unit Code Unit Name Student’s Name & ID Class Number Tutor Name Date Executive Summary There are various management essentials with respect to organizational management. Some of these management essentials include the purpose of an organization, general business environment, corporate social responsibility and ethics as well as the organizational culture. The purpose of this report has been to explore these management essentials using Samsung as the company in question to elaborate these components in-depth. The report has made use of various sources including journal articles to obtain the necessary information about these management essentials. From the report findings, the mission statement of Samsung has clearly outlined the purpose of their company through outlining its importance. Their profit orientation is established around overseeing customer orientation towards their company philosophy as well as motivating employees in enhancing their revenues. The general environment comprises of various factors some of which include the cultural, political, legal, and economic factors. Samsung is largely impacted by the legal factors mainly from Apple. The findings of the report have also established that Samsung has upheld high ethical standards and CSR practices as have been discussed. The organizational culture comprises the shared valued and beliefs that shape the way people behave in a company. The report has established that Samsung has a culture of innovation, flexibility, results-oriented, and motivation. Table of Contents Table of Contents 3 1.0 Introduction 4 2.0 Purpose of an Organization 4 2.1 Purpose of Samsung 4 2.2 Mission of Samsung 4 2.3 Samsung Profit Orientation 5 3.0 Organization’s General Environment 5 3.1 Samsung General Environment-Legal Factor 6 3.2 Impact of Legal Factor 6 3.3 How Samsung Could Deal with the Legal Factor 6 4.0 Organizational Corporate Social Responsibility and Ethics 7 4.1 Samsung CSR and Ethics 7 5.0 Organizational Culture 8 5.1 Results of the Quiz 9 5.2 Samsung’s Organizational Culture 9 6.0 Conclusion 10 References 11 Samsung Management Essentials 1.0 Introduction Organization management can be defined as the practice of ensuring that people come together to share a common platform which will make them collaborate to achieve a given predefined goal (Robbins, et. al., 2016). Proper organization management oversees the optimal utilization of resources following a meticulous control and planning in the workplace. Effective management oversees that an organization becomes profitable in the long run (Robbins, et. al., 2016). The primary purpose of the report will be to assess some of the management essentials. In doing this, the report will use Samsung as the case organization to cover in detail the purpose of an organization concerning its mission and profit orientation. Additionally, it will discuss the general environment and the factors incorporated in the organization environment, the corporate social responsibility and ethics of an organization, as well as the organizational culture of Samsung. 2.0 Purpose of an Organization The organizational purpose describes the reason why the work that they are doing is considered to be important. Often, the employees of a given organization usually perceive the organizational purpose to be motivational and inspirational. 2.1 Purpose of Samsung The purpose of Samsung is to develop and deliver high quality services and products which improve the convenience of their customers as well as foster smarter lifestyles for them on a global level. Samsung is committed to enhancing the global community by its continuous pursuit of value creation as well as groundbreaking innovations (Hollensbe et al., 2014). 2.2 Mission of Samsung The mission statement of Samsung Electronics is to be committed to inspiring their communities. It will do this through leveraging the three primary strengths of Samsung which include ‘Creative Solutions,’ ‘Innovative Products,’ and ‘New Technology’-as well as to promote a new value for the core networks of Samsung which are Employees, Partners, and Industry (Jung, 2014). 2.3 Samsung Profit Orientation The profit orientation of Samsung aims at motivating their employees so that they can maximize their revenues. They have also incorporated the customer orientation into their company philosophy with the aim of safeguarding the reputation of their company as well as facilitate the customer satisfaction for their products (Jung, 2014). 3.0 Organization’s General Environment The general environment of an organization refers to the various elements that exist out of the boundaries of the individual organization which can impact a part of or all of the sections of a company (Oginni and Adesanya, 2013). According to the Open Systems theory, all companies are usually unique. This is partly because of the individual and unique environment within which they are in operation (Robbins, et. al., 2016). Therefore, it is important to structure the organization such that it can accommodate the unique opportunities and problems that are exclusive to that business environment. The particular general environment of an organization entails the network of the competitors, government agencies, distributors, and suppliers with which the specific organizations interacts with (Oginni and Adesanya, 2013). Therefore, the general business environment incorporates four distinct actors which come from the geographic are where they operate in. These factors include the cultural factors, economic factors, cultural factors, political factors, as well as the legal factors (Robbins, et. al., 2016). The cultural factors are the cultural values which tend to shape the organizational ethics and views as well as impact the importance of different issues (Oginni and Adesanya, 2013). The economic factors entail the economic recessions, upswings, and various regional factors which affect the ability of an organization to prosper. These economic factors may also dictate the role of an organization in the economy partially (Oginni and Adesanya, 2013). The political factors have the responsibility of establishing a fertile environment for the enhanced prosperity of an organization and also have the responsibility of developing the regulations concerning their taxation and operations (Robbins, et. al., 2016). The legal factors play a critical role in determining the security of the organization as well as their stability in the future. 3.1 Samsung General Environment-Legal Factor Since Samsung is a global company, it has numerous business rivals with one significant one being the Apple Inc. Company (Jung, 2014). Samsung has, for a long time been vigilant concerning some legal issues that surround them like the pirated issues as well as issues to do with copying product models. Numerous times, Apple has accused Samsung of copying some of their features and designs (Robbins, et. al., 2016). Following these accusations, Samsung has found itself facing various legal penalties. In the same legal perspective, Samsung has also been many times accused of failing to pay its employees as many benefits as the rival companies are paying their employees (Jung, 2014). This has been the underlying reason as to why some of the workers resign from working in Samsung and go to work for Samsung rival companies (Robbins, et. al., 2016). 3.2 Impact of Legal Factor As previously mentioned, Samsung has found itself at a place where they have had to pay a lot of heavy penalties because Apple has accused it of imitating the Apple’s iPhone and Apple’s iPad (Jung, 2014). These accusations that were made by Apple resulted in the worsening of Samsung’s public perceptions and the approval of the consumer of its strategies being hampered as well. This led to the increased concerns of hampering the reputation of Samsung permanently (Jung, 2014). 3.3 How Samsung Could Deal with the Legal Factor One of the ways that Samsung decided to handle to legal accusations by Apple is to change was to change it to be regarded as a start-up which they feel would squeeze them out of this legal maze that they find themselves in (Jung, 2014). Samsung could also handle these legal factors through ensuring that they abide by all of the legal regulations and issues that are in their domain. This would lead to the enhancement of their customers’ trust in them as well as enable them to uphold a positive image in that market. 4.0 Organizational Corporate Social Responsibility and Ethics The Corporate Social Responsibility (CSR) entails the way business is expected to conduct themselves so that they would be socially supportive, ethical, law-abiding, and economically profitable (Robbins, et. al., 2016). This, therefore, means that for a company to be regarded as socially responsible there is the need for it to fulfill the conditions of being law-abiding and profitable as well as being ethical in all of its activities. It means that organization need not only be concerned with the profits that they make, but they also have the responsibility of assisting other parties both environmentally and socially (Joyner and Payne, 2002). On the other hand, organizational ethics refers to the standards and ethics which guides the way in which businesses operate (Robbins, et. al., 2016). The corporate ethics is often demonstrated through the actions of responsibility, honor, integrity, compassion, and fairness (Joyner and Payne, 2002). Therefore, the primary aim of the organizational management is to oversee that their employees can understand and implement these ethics (Robbins, et. al., 2016). Companies usually benefit when they engage in the CSR activities as well as when they operate in an ethical manner (Joyner and Payne, 2002). This is because CSR and ethics often tend to enhance the business capability and at the same time ensure that the business is making the required profits (Robbins, et. al., 2016). Therefore, it becomes of utmost importance for the businesses to make sure that they uphold high ethical standards, take into account the social issues and at the same time make the significant profit for the organization (Robbins, et. al., 2016). Regarding CSR, there are three indicators under it which include the economic, environment, and social factors. The economic factors oversee that an organization needs to be economically competitive through giving competitive prices for the services and products (Joyner and Payne, 2002). The environmental factors concern the responsibility of the business to protect the ecosystem through minimizing their impact on the environment in their business practices (Robbins, et. al., 2016). Social factor of CSR entails the responsibility of the business to be accountable of the social environment and the communities that surround them. 4.1 Samsung CSR and Ethics Samsung upholds high levels of ethical and CSR standards. Regarding their ethics, Samsung is guided by their Code of Ethics which is subdivided into five distinct principles (Jung, 2014). These principles have been formulated around their responsibility to their customers, employees, the environment, legislation, the other industry players, as well as their shareholders. The ethical standards of Samsung stipulate that they comply with all the specified laws and business ethics, develop an organizational atmosphere which is sound, always respect their employees, shareholders, and customers (Robbins, et. al., 2016). Others include their responsibility of taking care of their environment and maintain safety and health for all and be socially responsible towards the corporate citizens. Regarding the CSR, Samsung has made various social contributions, undertaken some green management initiatives, and has overseen that there is shared growth. For example, in their social contributions, Samsung has developed a program named ‘Solve for Tomorrow’ whose motive is to handle some of the significant social issues impacting the society through engaging some NGOs and students in identifying these problems and helping them in finding the necessary solutions (Jung, 2014). In their green management initiative, Samsung has undertaken to operate in a ‘green’ workplace through minimizing the way they use resources like water and energy while at the same time ensuring that they reduce or prevent pollution as much as possible (Robbins, et. al., 2016). In their bid to share growth, Samsung has a ‘Shared Growth Fund’ which seeks to assist in improving the business for the suppliers who experience challenges in securing funding (Jung, 2014). 5.0 Organizational Culture The organizational culture can be defined as a stipulated system which comprises of some shared beliefs, values, and assumptions that in turn governs the way that individuals behave in the companies (Schein, 2010). The common values tend to have some significant impact on the people in an organization in that they dictate the way these people act, dress, as well as perform. Organizational culture typically comprises of seven distinct features. Each organization usually has a particular value for every of the seven characteristics, and when they are combined, they often define the specific culture of that organization (Robbins, et. al., 2016). These seven characteristics of organizational culture include innovation, stability, aggressiveness, fairness orientation, the attention to detail, teamwork, and the emphasis on people (Schein, 2010). The companies which have an innovative culture usually tends to encourage their workers to be innovative and take high risks when performing their jobs. The organization culture which emphasizes on elevated levels of accuracy usually expects their employees to pay considerable attention to their work details (Schein, 2010). Some companies often to not pay a lot of attention on the way the results were achieved but focus on the quality of the achieved results and oversee that these results are present in the first place. Such organizations are said to have a culture that emphasizes on the outcome (Robbins, et. al., 2016). The fairness orientation culture significantly considers the way their decisions will impact the people who are in the company. A teamwork culture, on the other hand, emphasizes the need for the work activities to be formulated around teams as opposed to the people working individually (Robbins, et. al., 2016). Aggressiveness describes an organizational culture where workers are encouraged to be competitive and aggressive while stability is the emphasis on always maintaining a status quo (Robbins, et. al., 2016). 5.1 Results of the Quiz From the quiz, “What’s the Right Organisational Culture for Me?” I scored 27 points (Robbins, et. al., 2016). From the results assessment, since I scored this mark, it means that I have a strong preference for innovative, flexible, humanistic, and informal cultures. Such a culture is likely to be found in the research units, the high technology companies, advertising agencies, and small businesses (Robbins, et. al., 2016). 5.2 Samsung’s Organizational Culture The organizational culture at Samsung is highly innovative, and it encourages some massive innovations to its employees which are necessary for them to stay competitive in the global technological industry (Jung, 2014). They are currently embracing a culture of a horizontal human resource system which will tend to maximize the creativity and autonomy in the workplace. Samsung’s culture also aims at moving towards the role-centered and task system so that they would enhance their global competitiveness (Jung, 2014). The meeting and reporting culture of Samsung are such that only the ones who are necessary attend them and feel free to express their views on the agenda of the meeting (Jung, 2014). Samsung’s organizational culture is also rather flexible and humanistic in that the employees are allowed to take the necessary leave periods, dress in ways that they feel most comfortable in, and not to fear their leaders but instead work together with them (Robbins, et. al., 2016). Following this culture, I think I would fit in rather comfortably because it is evident that it promotes creativity and innovation, it is working towards establishing a flexible working environment, and informal cultures like there not being mandatory to dress in a certain way. Also, the company is taking a more humanistic approach in handling their employees such that they are minimizing the pressure on the employees and provide a more relaxing working environment. Therefore, I would fit in this organizational culture well. 6.0 Conclusion Proper corporate management is essential for the business success and profitability. The management essentials include the corporate purpose, the general environment of the business, organizational ethics and CSR, and corporate culture. The purpose statement of a company describes the importance of the work which an organization is doing. The general environment of a business is composed of various factors including cultural, political, legal, and economic factors. Samsung has largely been impacted by the legal factors of their general environment. The CSR and ethics guide the way business supposed to act internally and externally as well as spells out the responsibility that it has on the environment, society, and the economics. The organizational culture entails the values and beliefs of a company which tends to govern how people in a company behave. The culture has seven characteristics including innovation, stability, aggressiveness, teamwork, fairness orientation, achievement orientation, and precision orientation. References Hollensbe, E., Wookey, C., Hickey, L., George, G. and Nichols, C.V 2014, Organizations with purpose. Academy of Management Journal, vol. 57, no. 5, pp.1227-1234. Joyner, B.E and Payne, D 2002, Evolution and implementation: A study of values, business ethics and corporate social responsibility. Journal of Business Ethics, vol. 41, no. 4, pp.297-311. Jung, S.C 2014, The analysis of strategic management of samsung electronics company through the generic value chain model. International Journal of Software Engineering and Its Applications, vol. 8, no. 12, pp.133-142. Oginni, B.O. and Adesanya, A.S 2013, Business Environmental Factors: Implications on the Survival and Growth of Business Organisations in the Manufacturing Sector of Lagos Metropolis. Business and Management Research, vol. 2, no. 3, pp.146-148. Robbins, S.P., DeCenzo, D.A and Coulter, M.K 2016, Management: The essential, 3e., Pearson, Melbourne, Australia. Schein, E.H 2010, Organizational culture and leadership, John Wiley & Sons, London. Read More