Samsung in China

Adjust one: In the current financial risk, Samsung was suffered a serious impact; many corporations in China begin to fire people. But the different is that Samsung has a new way to pass the financial risk. Samsung corporation in Weihai, Shandong province is an example, the manager said that as a company, we also face some problems of reducing production and employees, but we know that people in China focus on emotion, they really care about what others do in face of risk, if you just fire them, people begin to hate the corporation very much. It will go against our corporation strategy. So they reduce the work time to 4 days a week.

Even though this will bring the corporation some cost, the manager said that they believe they need to train a green hand one year and a half to be a mature worker. So depending in the self development of the corporation, they will not reduce people casually. But in South Korea, Samsung really reduces its employees when facing the financial risk. When facing with problem, such as the net profit reduced 44 percent and the cell phone gross profit reduce below 10 percent, in order to establish a good image in front of Chinese people, some of its corporations even begin to recruit new employees in China, so people in China have a good image about the Samsung.

Samsung really adopt some new ways to recruit new employees in China, they pay emphasis on adopting experts and talents in China. They believe in a group of the level of world-class technology with the “quasi-genius” level talent, and a large number of enterprise leaders, technical experts and professional managers can support the company’s development in China. Considering that China has a comparative large group of HR, the company only focus on the most outstanding persons. They deny many comparative good people for the simple reason that they are not so good. This practice differs from some other corporations, who only focus on Chinese cheap labor resources.

Samsung has some different ideas of what is good and what is bad. Many foreign corporations like to adopt Chinese who are really talkative, have good academic score and have the ability to efficiently organize the corporation, In its home country, Samsung also focus on this, But in China, people are somewhat shy and lack of the communication skills and organization ability. Samsung begin to focus on other side.

A suitable employee is expected to become experts in specific fields in China. Some shy people always has the advantages that they are really more patience and deeply love their careers and has the faith to overcome all the difficulties. They believe people who have strong interest in a particular area or a unique field may be valuable resources of the corporation in the long-run.

Samsung believes that in the process of looking for talent, you can not undervalue those different people. Many of the talents are anti-conventional and are not easy going. Enterprises need to do is learn how to work with them, how to make the necessary concessions to develop their potential. We must give them the opportunity to play and we must not use power to erase their talents.

China have so many people, some of them are really strange in the eyes of foreigners. So instead of just recruiting people in university in its home country, Samsung recruits some big players in China, most of them do not receive formal university education, their primary jobs were making programs for fun or compositing and selling second hand computers in their own family company. These kinds of people are definitely creative and do not follow some routings. And these people’s computer skills are superior and they are independent and staunch.

They can solve problems individually and the most important thing is that they love program making and computers. This kind of motivation can help the Samsung achieve profound success they can never image in their home country. In 1999, The Samsung software subsidiary in China spend 200000000 Rmb(nearly 30000000 dollar) to recruit these kind of people.” We really like a proverbial saying in China that if you want to be bigger, you need to include and respect. I think Samsung is an inclusive corporation.” The vice CEO of Samsung in China says. Samsung really wants its senior level managers to be local citizens. The vice CEO said that he hopes some positions in senior level to be Chinese

Public service activities are the essential classes in Chinese Samsung because our strategy is to make Samsung the respectable and favorite corporation in China. Chinese has a slang that if a person gives you a drop of water, you need to create a spring to repay him. So Samsung spends money on its employees, for example, Samsung provides some trips to South Korea and gives some money support to their employees’ children.

Of course, as slang goes in China: we do not afraid poor, we afraid unequal. So Samsung creates a more transparent and unbiased career development strategy and rewarding and adjusting system. Samsung always focuses on holding some public service activities to remained people to remember repay kindness.

Samsung always believe that great human resource is the motivation of development of the corporation, if we want to get great technologies, we need to have great human resource, so we do not save money on training people, this is the only way to ensure that we have comparative advantage and strong competitive in the competitive environment in the long run. In order to make managers pay attention to train people, the Samsung relates the achievements of the managers to their ability to attract and train great people. They want to attract high tech experts and marketing experts as well.

Even in China, Samsung also holds some general standards to recruit people, firstly is healthy, second is the information and international knowledge and skills. And third is highly ethical, they must like devotion and public activities. In South Korea, Samsung focuses on people’s experience and working history. So they lose many valuable human resources and many employees in the Samsung lose the faith and energy to work, sometimes they find some perfect people but view them as second level people, in China, people focus on so called face and others’ evaluation. If you view them the second level, you will get the third level working result from them.

So in China, the most important aspect of human resource management is recognizing their value, so in China, the value of people is highly appreciated. The higher managers should respect common employees at the same level of higher level managers, and higher managers rarely mention the employees’ disadvantages in public. Every people have his or her own value.

In China, people always get used to comfortable and they are very passive and afraid of taking risks. So in order to encourage them take responsibility and face risks, and be initiative, Samsung really makes its bonus high. And it focuses more on the motivation of people doing things and procedures of people doing thing instead of the results. Samsung never make annual salary on Chinese employees, it believes that if they have the fixed annual salary, they will get used to the so called “iron bowl” and their ability and talent will atrophy

People in China do not really have the habit of study, but in modern society knowledge is out of date rapidly. So Samsung in China wants to establish a dynamic to encourage people format the habit of study. Song-Tao Li is Samsung Electronics Marketer, she is a young employee, she said, Samsung’s appeal is that if she needs education she can submit a report to the company, companies often give her free learning opportunities for paid. Employees can go to Samsung headquarters in Korea for study, and the company establishes its research and development center in many local Chinese cities.

Suspected is not used, use will not be treated with suspect, the Samsung treat its staff with” highest national treatment. “To this end, Samsung introduced an open recruitment system for hiring new employees. New employee hired by the company would receive complete training. The aim is to make Samsung to become a bright Star.

In order to make the company to become a super-class enterprise, the Chinese Samsung try to establish “enterprise is people” entrepreneurial spirit under the guidance of fully implementing the “capacity doctrine,” “right man for right job”, “reward and punishment clear “principles. In order to educate the potential of employees, in addition to the Samsung Group headquarters to establish a comprehensive training college, all branches were set up their own training centers, and through overseas training and other forms of effective education, the company train all staff, including both upper managers and common workers.

“If you want to survive in China, you need to be a Chinese company.” this was said by Samsung’s former CEO Yin Zhonglong. Because Chinese people has the traditional of form a big family, which means the entire family members are lived together, so Chinese Samsung emphasize the unity of the whole company as a corporate culture.

The enterprises attach great importance to members of the Organization and unity. In order to form a community-based enterprises culture, Higher managers really emphasize the important to listen to staffs’ comments and recommendations. In addition, Chinese Samsung says that “the company’s growth and the health of labor relations in sync”. Under the guidance of such a conviction they foster community awareness of employers and employees reconciliation, so that business operations can make sure labor relations to go well.

Samsung has developed a business such as “revised welfare system” and “staff hold share system” and “treat staffs as family members ““life staff “and a series of systems, they really pay attention to their own staffs. They establish strong relationships between employers and employees and they try to achieve reconciliation. Because there is mutual trust between labors and managers, it has overcome many unexpected business crisis.

Because Chinese is a people who focus the importance of relationship, Samsung always makes something (wages, benefits, etc.) and other things (operational decision-making authority, personnel rights, etc.) strictly separated, each system takes a different policy. Chinese always want to know more information about the company; Samsung provides a monthly meeting to convene its business plans to the union representatives, to establish a good relationship of mutual trust; the company actives members to explain their expectations and hopes. Mutual understanding is deeply rooted in the spirit of enterprise, this atmosphere of reconciliation labor effectively promoted the development of Samsung.

Considering that Chinese management system is not so advanced and the duties of different departments are overlapped. Samsung build a strict management responsibility system in China, it appoints professional local managers (specialized operators), and foster a culture of responsible management. Diverse business operations are responsible for their own operational decisions. They even form their own market analysis individually. This makesthe whole Samsung more efficiently.

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