You are on page 1of 32


Inc. (Korean: LG, KRX: 066570, LSE: LGLD)
Korean multinational electronics company headquartered in Yeouido-dong, Seoul, and a member
of the LG Group, employing 82,000 people working in more than 100 locations around the world.
With 2013 global sales of USD 53.10 billion (KRW 58.14 trillion), the company operates its
business through five divisions namely: Mobile Communications, Home Entertainment, Home
Appliances, Air Conditioning & Energy Solutions, and Vehicle Components.[2] CEO of LG
Electronics is Bon-joon Koo, who assumed the role of Vice Chairman of LG Electronics on
October 1, 2010. LG Electronics is currently the world's second-largest television manufacturer

The Korean electronics industry with active support from the Government in the 1970s showed
promising growth. GoldStar established large plants and secured a nationwide production base.
The large plants helped the company to expand and sowed the seeds for globalization. In 1975,
GoldStar established a central R&D centre to develop color TV, VCRs and computers. In 1976,
the company produced the first Korean made color TV.
In 1977, GoldStars sales were over 100 billion. The export volume in 1978, reached US$ 100
million.24 After this the company laid the foundation for globalizing the Korean
In the early 1980s, GoldStar pursued profit-oriented operations and opted for a series of
restructuring exercises to combat rising competition and to be effective in its efforts in
globalization program. With the change in international trade scenario, it became essential for
the company to establish overseas manufacturing bases to pursue international markets. GoldStar
established a manufacturing subsidiary in Huntsville,25 U.S. in 1982 and other manufacturing
and sales subsidiaries in Germany. The company established a subsidiary in UK (1988) and a
manufacturing subsidiary in Mexico26 in1989.(ExhibitV)
The energy crisis and political unrest in the early 1980s had a negative effect on GoldStars
growth. But the company was able to overcome the situation and by 1984, the total sales were
exceeding 1.2956 trillion. 27 At this point of time GoldStar followed effective business strategies
and focused on product diversification and strengthened its national sales channels in Korea. At
the same time the company also focused on diversification of its export structure in international

the late 1980s LG had adopted a new strategy focusing on quality of product and expanding
marketing capabilities. When the South Korean government relaxed trade barriers, there was
great penetration of foreign companies entered to compete with domestic firms including LGE.
As a result, sales of LG products dropped by US$ 1 billion and profits deceased by 18% between
1986 and 1987. The company was able to challenge foreign companies by restructuring the
organization and adopting a new management style with decentralized structure.28 From 1992
onwards the company focused on 'creating value for customers', highlighting its commitment to
excellence for customers and internally helped employees to renew their devotion to customer
LG Electronics Inc. is a Korea-based manufacturer specialized in the provision of electronic
products. The Company mainly operates home entertainment division, which provides liquid
crystal display (LCD) televisions (TVs), plasma display panel (PDP) TVs, LCD monitors, as well as
audio, video and security equipment; mobile communications division, which provides mobile
terminals, tablet personal computers (PCs) and network equipment; home appliance division,
which provides refrigerators, washing machines, microwave ovens, healthcare equipment,
cleaners, water treatment machines and others; air conditioning and energy solution division,
which mainly provides industrial and household air conditionings, as well as other business
division. It also involves in the light-emitting diode (LED) business, optics solutions business,
vehicle components business and others.


LG Twin

Towers where LG Electronics is headquartered

A company provides equal employment opportunity to allqualified persons without

discrimination on the basis ofage, sex, race, disability, marital status or religion inaccordance
with applicable local, state andnational laws and regulations. Will makereasonable job

accommodation for persons withdisabilities who can perform the essential functions ofthe
position for which they are qualified and selected. Allemployment and promotion decisions will
be basedsolely upon individuals qualifications, experience, andprior contribution and
demonstrated capacity to performhigher or improved levels of performance and will be
inaccordance with the principle of equal employmentopportunity. Will take whatever affirmative
action isnecessary to attract and retain qualified persons
In 1958, LG Electronic was founded as GoldStar (Hangul:). It was established in the
aftermath of the Korean War to provide the rebuilding nation with domestically-produced
consumer electronics and home appliances. LG Electronics produced South Korea's first radios,
TVs, refrigerators, washing machines, and air conditioners.[4] GoldStar was one of the LG group
with a sister company, Lak-Hui (pronounced "Lucky")Chemical Industrial Corp. which is now
LG Chem and LG Households.

In 1978, LG Electronics achieved a revenue of USD 100 million in exports, for the first time in
its history. Rapid growth by globalization saw the company establish its first overseas
production, based in the United States, in 1982. In 1995, GoldStar officially adopted the LG
Electronics brand and a new corporate logo. LG Electronics acquired the US-based TV
manufacturer Zenith. In 1997, LG Electronics made the world's first CDMA digital mobile
handsets and supplied Ameritech and GTE in the US. The company was also awarded UL
certification in the US.[5] In 1998, LG developed the world's first 60-inch plasma TV, and in
1999 established a joint venture with Philips LG Phillips LCD which now goes by the
name LG Display.

LG Electronics plays a large role in the global consumer electronics industry. LG launched the
LG Chocolate phone in 2005 and is the second-largest LCD TV manufacturer worldwide as of
2009. By 2005, LG was a Top 100 global brand, and in 2006 LG recorded a brand growth of
14%.[6] Its display manufacturing affiliate, LG Display, is also currently the world's largest LCD
panel manufacturer.[7] In 2010, LG Electronics entered the smartphone industry. Since, LG
Electronics continued to develop various electronic products, such as the worlds first 84inch ultra-HD TV and smart appliances.

On December 5, 2012, the antitrust regulators of European Union fined LG Electronics and
several other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting
nearly a decade.[8]

To achieve the objective of the organization
Should be designed in such a way that healthy competition
effective co-operation among the workers is promoted.
Should aim at the best and the maximum use of the human resource available
Should aim at a good employer-employee relationship Should aim at employee
satisfaction Should protect the interest of the workers Should provide the opportunities for
promotion to the workers.

LG Electronics has 5 business units and more than 110 operations worldwide, employing 82,000
people. LG Electronics owns Zenith and controls 37.9 percent of LG Display

LG Electronics' products include
home theater systems
, refrigerators,
washing machines,
computer monitors, smartphones.[1

LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes in 2014.[11][12] LG
Electronics introduced their first Internet TV in 2007, originally branded as "NetCast
Entertainment Access" devices. They later renamed the 2011 Internet TV's to LG Smart TV
when more interactive television features were added, that enables the audience to receive
information from the Internet while at the same time watching conventional TV
In November 2013, a blogger discovered that some of LG's smart TVs silently collect filenames
from attached USB storage devices and program viewing data, and transmits the information
back to LG's servers and LG-affiliated servers.[15][16] Shortly after this blog entry went live, LG
disabled playback on its site of the video explaining how their viewer analytics work and closed
the Brightcove account the video was hosted on.[17][18] By December 2013 the page itself was
removed from LG's website.
LG's remote uses Hillcrest Labs' Freespace technology to allow users to change channels using
gestures[19] and Dragon NaturallySpeaking technology for voice recognition.[20]

Mobile devices


LG G3 Metal black

LG Electronics manufactures a wide range of smartphones and tablet devices.[21] Other than
the G3, LG officially unveiled the curved smartphone, G Flex, on October 27, 2013. LG has
released it in South Korea in November 2013, and later announced releases in Europe, the rest of

Asia, and North America.[22][23] At Consumer Electronics Show in January 2014, LG announced
an U.S. release for the G2 across several major carriers.[24]


In 2014, LG revealed three new additions to the G series of tablets, each which will include LG's
Knock Code feature, allowing users to unlock devices with a series of taps. The tablets also
feature Q Pair which allows tablets to sync up with a smartphones, and for phone calls and text
messages passed on to them in real time.[25]

Smart watch

LG and Google have announced an Android Wear-based smartwatch which is wearable on

June,2014. It was released along with the Samsung Gear Live and Moto 360.[26] In August, 2014,
the G watch R which has a round face (similar to the Moto 360) was released.[27]

Fitness and Activity Monitors

LG has also created products for fitness and activity monitoring. The LG Heart Rate Monitor
Earbuds send real-time biometric information via Bluetooth to a compatible smartphone
equipped with the free LG Fitness App. The LG Heart Rate Monitor Earbuds uses Valencells
PerformTek technology to capture heart rate and other biometric signals at the ear. [28]

Home appliance

LG manufactures and sells home aplliance products such as refrigerators, washers and dryers,
vacuum cleaners, kitchen appliances, and residential air conditioners. In June 2014, LG
Electronics also announced the launch of its smart appliances with HomeChat messaging
service in South Korea. HomeChat employs LINE, the mobile messenger app from Korean
company 'Naver', to let homeowners communicate, control, monitor and share content with LGs

smart appliances.[29] Users can send simple messages, such as "start washing cycle," in order to
control their washing machine.[30]


A personnel policy should reflect good practice, be written down, and be communicated
throughout the organization

Should be clear, precise and easily understandable

Should not be rigid, it should adapt to changing circumstances

Should be responsive to the prevailing situation and environment

Must be two way communication- between the management and the workers so that the
latter are kept informed about the latest development

It should support all the concerned parties

The work of HRM in company

Policy Statement
A company expects its employees to achieve and maintain ahigh standard of ethics, professional
conduct and workperformance to ensure the Company maintains its reputationwith all internal
and external stakeholders
To enhance reputation as a quality service provider and anenjoyable, stimulating and challenging
place to work
The policy will be seen to be successfully applied when allemployees are seen to perform their
duties professionallywith skill, care and diligence.
This includes: observing policies and procedures
treating colleagues with courtesy and with respect for theirrights, duties and aspirations
employees who do not conform to this standard of conductwill be subject to disciplinary action
as detailed in this manual


Recruit talented employees with global competitiveness and secure business competitiveness
through job rotation
Strive for continuous HR system improvement and motivate employees with HR operations
efficiencyPiotr Grygo/LGEWR (Wroclaw, Poland)Our Performance
1.4% Percentage of female executives (Korea)
58% Percentage of overseas employees
85 Average training hours per employee

Those who develop their capabilities continuously and compete with integrity.
Those who promote teamwork and work with creativity and autonomy
Those who are fully committed to the LG Way and possess strong execution skills
Those who are inspired to become best in the world with passion
Those who always put customers first and never cease to innovate

The Human Resources Policy and Procedures Manual have been developed to facilitate the
implementation and clearly define policies on human resource management. The Manual
provides guidelines to be followed in the administration of these policies, and assists all
employees in defining who is responsible for each human resource management decision, and
the correct procedure which is to be followed. The policies specified within are consistent with
those of best practice management principles. They have the full support and commitment of
management. HR policies must be kept current and relevant. Therefore, from time to time it will
be necessary to modify and amend some sections of the policies and procedures, or for new
procedures to be added. Any suggestions, recommendations or feedback on the policies and
procedures specified in this manual are welcome. This should be provided by email. These
policies and procedures apply to all areas of operations within and related entities .Hr policy is
set of rules that define the manner in which an organization deals with a human resource or
personnel related matters .An hr policy is a commitment of an organization to act in a specific
way while dealing with its employees.

Recruitment and selection of employees

Placement of employees
Training and development ofemployees
Performance appraisal of employees
Motivating of employees
Promotion and transfer of employees


LG Electronics utilizes a variety of recruiting channels to secure top-quality global talent. Once
employed, they are given many opportunities throughout their careers to make use of lifelong
education resources and develop into global business leaders.

International HR Recruit Activities

LGEs annual recruitment events have been holding in universities in Korea and overseas. In
addition, LGE is actively pursuing various recruitment activities such as career development
consulting and LG Techno Conference to acquire outstanding individuals throughout the world.
LGE cooperates with universities through the Industry-University Program and at the same time,
actively engages in recruitment activities for outstanding R&D individuals. As for the long term
goal, LGE plans to increase its current recruitment ratio to acquire diversity as a global

Overseas Employee Adaptation Program

When sending employees to an overseas subsidiary, LGE provides a training program involving
work, language, culture, and leadership so that the employees can communicate with locals. In
addition, LGE assigns these employees a project relevant to the country prior to sending the
employee to that country, or sends the employee for a short period of time before permanent
assignment to support fast adaptation and increase professionalism.

Develop Specialists Corresponding to the Training Roadmap

LGE conducts various training programs based on the corporate wide training roadmap. Based
on the results of the capability evaluation conducted each year, LGE implements a priority
handling training program for all employees, designed for each employees job. In addition,
LGEs Global e-Learning program was expanded and LGE provides a specialist fostering
program for each task and an individual capability development program for all employees.

Global Talent Training Programs

LGE has developed local training programs and has been actively making efforts to foster and
recruit local professionals. LGE provides the HR Fostering Program through the Pyeongtaek
learning center and 6 overseas learning centers (Brazil, Singapore, India, China, France, and
UAE). In particular, LGE has developed a mandatory Global Training Program and provides the
same course to all LGE employees throughout the world. This is LGEs initiative to strengthen
LG Way Leadership and to provide a uniform leadership fostering program to every employee.
LGE provides a specialist training program for each job category, a specialized program for the
different position levels, and in the case of Korea, LGE also provides in-house and external
MBA programs through cooperation with leading universities in Korea.

performance appraisal
During my stay at HQ for the In-Nation Service Employee (ISE) High Potential Individual Pool
(HIPO)HQ Job Assignment/OJT Program, I was deeply impressed by the work our colleagues
from HQ HR Team had put into preparing this program. My initial concern was the possible
language barrier but fortunately, I didnt have any problems thanks to the language fluency of the
well-trained HQ staff and outstanding interpretations, which are great examples of LG
Electronics capacity as a global corporation. The training was a great opportunity to network
with High Potentials from across the world and to have direct communication with the
companys leadership. Through the program, Ialso realized that LG Electronics has a strong
belief in the overseas employees.

Our Approach
Secure quality talent and foster them with
systematic HR management
Motivate employees with merit-based evaluation/reward
Implement HR system tailored to global talent
Employee Transfer Policy
This policy provides the procedure for transferring employee from one project to another one.
2. SCOPE :
A Transferred employee data should be maintained in the personal file of an employee and
should have a clear history of his working during the job with the company.
Transfer dates should be arranged through the departments involved with HR & Operations.
There should be at least two DAYS notice by GM/manager before a date of transfer. The
receiving department (to which an employee is transferring) initiates and submits an Joining
Letter Confirmation for Transferred Employees
Step 1. Authority should inform HR personnel officially for the transfer of any employee.
Step 2. HR should forward the employee clearance form to the relevant (previous) manager for
the clearance of his employee.
Step 3. After receiving clearance form from the previous manager of an employee, HR should
make a Joining letter confirmation form (HRD/FRM#046) and forward to the new manager of an
employee along with the copy of the clearance sheet for his records.
Step 4. New manager should make his comments on HRD/FRM#046 and send it back to HR


5. HR should file the joining letter confirmation in the personal file of an employees.

Systematic HR Development based on Training and Development Program

1. Development Program
At LG Electronics, employees are required to establish their own Career Development Program
(CDP) along with annual performance targets. Based on the CDP, employees have One-on-One
Caring interview with their managers to receive any support they need to follow through with
the plan. Under the system, employees choose their own career system, employees choose their
own careering required for the chosen track, and map out detailed action plans based on the
career development roadmap standardized for each business function. As an outcome of this
meeting, LGE designs a career development and training plan appropriate for each mem and
training plan appropriate for each memes and support needed to achieve established objectives.
One-on-One Caring interview is objectives. One-on-One Caring interview is ensured to receive
training support based on ensured to receive training support based on ensured to receive training
support based on age ment issues.LG Electronics identifies employees who have great potential
as business leaders at early stages of their careers and put them through a systematic training
process to foster the min to business leaders, function leaders, and experts depending on their
respective development tracks. We carefully monitor the course of employees development and
encourage employees to progressively expand their capacities through job rotations, particularly
to ensure that employees do not particularly to ensure that employees do notion or business. LG
Electronics operates a career development management program in conjunction with the
performance evaluation process for all its office employees. All LG E members have regular
One-on-One caring members have regular One-on-One caring dividual development goals,
including detailed training plan. As an outcome of this meeting, training plan. As an outcome of
this meeting, ing plan appropriate for each member's needs and also discusses their grievances as
well as and also discusses their grievances as well asand also discusses their grievances as well
asand also discusses their grievances as well assupport needed to achieve established objectives.

2. Functional Training System

In order to foster top class experts in diverse2. Functional Training SystemIn order to foster top
class experts in diverseof its 12 business functions and offers 713 training programs taught by
internal experts. Employees undergo required training based on their CDP and must complete at
least two credit hours per calendar year. Credits from the training are reported to the HR system
and reflected upon promotion. In addition to courses offered at the Business Function college
,study group sand seminars are organized to promote professional capability ganized to promote


professional capabilitytions such as R&D. We also provide additional credits to employees who
serve as instructors for internal training programs to promote for internal training programs to
promotenes leaders and Foreign Service Employee(FSE) candidates is implemented based on
theBusiness Leader Training Roadmap to develop Business Leader Training Roadmap to
developtive training courses are determined based on candidates chosen career track. For our
overseas employees, we established For our overseas employees, we established dard Training
System and offer leadership/

Motivating Employees with Merit-based Fair

Environmental record
Motivating Employees with Merit-based Fairporate-wide process that governs its evaluation and
incentive systems for its employees. Our merit-based employee evaluation systemOur meritbased employee evaluation systemrate assessment and discriminatory rewardbased on merit. We
also minimize the complexibility of the system (performance and capability evaluation) to make
it more accessible to employees. We also ensure that clear feedback on improvement points
(performance and professional capabilities) is provided to employees based on the outcome of
evaluation to promote employees longer term development and contribution to organization
performance. In addition to regular evaluation, managers also addition to regular evaluation,
managers also tion of their leadership to create a strong and sound organization. Our business
staff is evaluated on individual Our business staff is evaluated on individual ership, while the
technical staff is assessed based on professional knowledge, teamwork ability, sense of
responsibility, management ability and performance. Based on the out-come of employees
evalaution lg electronics rewards high performers with differentiated compensation in the form
of raise/incentive compensation in the form of raise/incentive compensation in the form of
raise/incentivetion and staffing. The outcome of employeetion and staffing. The outcome of
employeetiated compensation such as salary raise and regular/ad-hoc incentive bonuses. There is
regular/ad-hoc incentive bonuses. There is employees, and we reward high performers with
differentiated compensation based individual performance to motivate employees strong
performance. We also provide clear feedback and coaching to inspire excellent performance
eacross the organization.
In 2012, LG Electronics HQ and overseasIn 2012, LG Electronics HQ and overseasment the
global HR system based on thestandardized process. HQ provided guidelineson key HR issues
(i.e. leadership/performanceevaluation, acquisition of key talent, employee compensation
salary ,incentives, and promotion and assigned dedicated support staff at each region. Corporate
HR and subsidiary HR cooperated to review and revise the guidelines to suit local needs.

Through these efforts, our global HR process was taken to the next level LG electronics also
made a wide range of efforts to strengthen its training programs for to strengthen its training
programs for high potential employees programme form overseas subsidiaries In addition to
training opportunities through our integrated global training system we invited 60 high potential
employees to Korea on a job rotation lasting from three month to one year and provided an
opportunities to train and work at related departments. We also invited 70 overseas employees to
Korea and provided an opportunity to increase their pride in the company through a program
comprised of training sessions designed to enhance participants understanding of LGEand
Korea, production sites and LG Shop visits, and watching the performance Nanta.
Additionally, we implemented a high mentoringprogram that partners each of the 233 potentials
from overseas subsidiaries with a Korean high potential as their mentor. The program enables
overseas high potentials to receive the professional support they need and to form close
relationships with their Korean counter parts.

performance appraisal of employees

Since organizations exist to achieve goals, the degree of success that individual employees have
in reaching their individual goals is important in determining organizational effectiveness. The
assessment of how successful employees have been at meeting their individual goals, therefore,
becomes a critical part of HRM. This leads us to the topic of performance appraisal. People
differ in their abilities and aptitudes. These differences are natural to a great extent and cannot be
eliminated even by giving the same basic education and training to them. There will be some
differences in the quality and quantity of work done by different employees even on the same
job. Therefore, it is necessary for management to know these differences so that the employees
having better abilities may be rewarded and the wrong placements of employees may be rectified
through transfers. The individual employee may also like to know the level of his performance in
comparison to his fellow employees so that he may improve on it. Thus, there is a great need to
have suitable performance appraisal system to measure the relative merit of each employee.
Performance Appraisal is an integral part of Human Resource Management. And HRM deals
with personnel i.e. people. people is the most important and valuable resource that every
organization or institution has in the form of its employees. Dynamic people can build dynamic
organization. Effective employees can contribute to the effective of the organization.
HRM has multiple goals, which includes employees competency development, employees
motivation development and organizational development. Employees require a variety of
competencies, knowledge, attitude skills in technical areas, managerial areas, behavioral and

human relations areas and conceptual areas to perform different tasks or functions required by
their jobs.
HRM aim at constantly assessing the competency requirements of different individuals to
perform the jobs assigned to them, effectively and provide opportunities for developing these
competencies. As HRM deals with humans it is necessary to keep a check on their performance
after a regular interval of time given jobs, it is necessary to corrective actions them or there is
need to appraisal their performance. The process appraising for doing their work effectively is
than known as performance appraisal system. The system is defined clearly in this report.

The objectives of the project are:

1) The main objectives of the study are the throw the light on the different policies/ techniques of
the performances Appraisal system of the LG Company.
2) To show the implementation of the appraisal methods used to get the information about the

Opportunity & Challenge

Based on our basic conviction that the customer is the reason and purpose for service, we strive
to enhance value for customers. We firmly believe that customer value should take priority in all
corporate activities and that companies which fail to do so will find it difficult to survive. With
that in mind, all systems and policies at LG Electronics are decided from the customers
standpoint. At LG Electronics, customer service is not merely the responsibility of the relevant
department but recognized as an objective of the entire company. We have adopted
companywide systems and processes for customers benefit including measures for protection of
personal information, grievance handling, prompt after-service and customer communication.
We are making multifaceted efforts to develop innovative products to enhance quality of life and
to ensure safe and convenient usage of our products.



LG Electronics is working to secure world-class competencies to join the global top 3. Under our
definition of level 5 capability, whichrefers to the levels of global corporations such as GE and
Toyota, various forms of support are available to every member of theorganization. We believe
we will become a truly global enterprise by creating a setting in which competent and motivated
people canperform to their fullest and derive satisfaction from their performance. Building a
people company where talented people are giventhe opportunity for self-development is vital to
attaining our vision. At LG Electronics, individual employees are working to enhance
theirmarket value by carrying out their work in the best possible way with a view to becoming
the worlds best. Their efforts are supported bythe companys extensive training program which
gives individuals the chance to develop their abilities and gain global experience.


Voluntary initiatives to reduce greenhouse gases and address climate change are helping to shape
LG Electronics into a greencompany. As a company with 36 production facilities around the
world, we are guided by an environmentally-friendly vision andstrategies befitting a global
enterprise. We set up a greenhouse gas inventory starting with our plant in Cheongju to monitor
our emission levels. Moreover, we are enhancing production processes and developing
technologies to curb greenhouse gas emissions.Life cycle assessments are undertaken to assess
emissions throughout a products life cycle. After broadly classifying emissions intothe
production and usage stages, we found that more than 80% is attributed to product usage. We
recognize that raising energyefficiency of electronic products could be the most effective way to
provide economic benefits to consumers while curbing globalwarming. Regions such as the EU
are tightening regulations on energy efficiency and standby power. Keeping in step with
suchregulatory trends, LG Electronics is continuing with R&D to acquire the highest grades of
energy efficiency for its products.

Overview of LG Electronics
LG Electronics is largely divided into 22 units. On the domestic side, there are four business
units, the marketing division, and sevenfunctional divisions in the head office. The overseas
network consists of seven regional headquarters and three functional areas(support, R&D,
design).There are seven business sites (in Pyeongtaek, Cheongju, Changwon, Gumi) under the
four business units. The overseas operationsinclude 36 sales subsidiaries, 22 production
subsidiaries, eight product sales subsidiaries, five service subsidiaries, and branch offices.

JOYFUL Working 5 or JW5 is the mantra by which LG employees live. Based on five factors;
stress, communication, leadership, target setting and working hours, the idea is to eliminate the
existing issues pertaining to the above factors and bring fun at workplace.
So, it is a small wonder that employees, who report at 8.40 a.m., begin their day with exercise
and yoga, bracing up for eight hours of fun at work. The recruitments at LG takes place directly
and through campus.
A career at LG will allow you to realize your dreams. We offer the "Right People" great
opportunities for growth and sure rewards for exceptional performance.

On Campus hiring
On Campus hiring is for both engineers and management trainees. A total of 50 colleges are on
the panel of LG. Last year the company visited 35 campuses to hire 130 freshers. These are
MTech and MBA students.

The engineers area of specialisation varies from mechanics, electrical, to other fields. We
recruit students from varied institutions in order to accommodate a broad spectrum of
background and cultures, says Umesh Kumar Dhal, Head, HR and Management System.
Engineers without Masters degree are not considered at LG. We need engineers with in depth
level of technology who can contribute in research and technology transfer from Korea, Dhal
apprises. The hiring process starts from August for both the lines of requirement. Right now my
department is busy hiring, says Dhal. The students presented with offer letters in August, 2010
will join onboard from July 2011. The induction programme usually begins on July 1, each year.
Students are selected on the basis of group discussion, after which they have to appear in
psychometric test, followed by one round of interview and conclude with another round of
personal interview. They are given offer letter on the campus, Dhal says. The factors assessed
in the interview are students degree of intellectual awareness, drive for performance, levels of
adaptability, ownership and passion. To sum up, its the attitude, aptitude and field knowledge
that is evaluated, says Dhal. This year LG plans to recruit a little over 100 candidates.


Our Performance
LGEs Efforts to Secure Quality Talent Based on the conviction that the driving force behind the
companys growth is its people, LG Electronics continuously works to find and acquire quality
talent with a wide range of recruiting activities. As part of our efforts, we tour universities to host
recruitment event and provide career counseling to students of recruiting activities. As part of
our efforts, tour universities to host recruitment events and provide career counseling to students
also have diverse open recruiting programs in place to discover quality talent on an ongoing
basis. Our talent acquisition efforts extend to overseas as well; every spring, top executives from
LG Electronics participate in the Techno also have diverse open recruiting programs in place to
discover quality talent on an ongoing basis. Our talent acquisition efforts extend to overseas as
well; every spring, top executives from LG Electronics participate in the Techno efforts to secure
quality talent based on mid to long term HR requirements. In 2013, we plan to further strengthen
our talent acquisition efforts with diverse recruitment activities.

in business is a form of marketing communication used to encourage, persuade, or manipulate
an audience(viewers, readers or listeners; sometimes a specific group) to take or continue to take
some action. Most commonly, the desired result is to drive consumer behavior with respect to a
commercial offering, although political and ideological advertising is also common. This type of
work belongs to a category called affective labor.

A company provides equal employment opportunity to all qualified persons without
discrimination on the basis of age, sex, race, disability, marital status or religion in accordance
with applicable local, state and national laws and regulations. Will make reasonable job
accommodation for persons with disabilities who can perform the essential functions of the
position for which they are qualified and selected. All employment and promotion decisions will
be based solely upon individuals qualifications, experience, and prior contribution and
demonstrated capacity to perform higher or improved levels of performance and will be in
accordance with the principle of equal employment opportunity. Will take whatever affirmative
action is necessary to attract and retain qualified persons.


LG Electronics creates working environments that enable its employees to demonstrate their
capabilities, focus on their work, and create value for their customers. Employees are encouraged
to take a creative and individual approach to challenges, with a strong emphasis placed on
performance and skilland equal, merit-based opportunities across the board.



An individual's creativity is the basis for value creation. LG Electronics respects diversity and
autonomy, allowing each of its employees to exercise their creativity to the full.

Competence is the cornerstone of performance and thus we take competence to be the most
important factor our personnel decisions.

Rewards based on performance are essential for motivation. LG Electronics evaluates
performance results fairly and rewards them accordingly.

Equal opportunities build trust among people. LG Electronics ensures equal opportunities
regardless of gender, race, age, religion, or nationality.

Maintaining a long-term perspective is the foundation for LG's human resource policies. LG's
human resource programs are designed with a long-term perspective and implemented with
dedication and persistence.

Through its education centers worldwide, LG Electronics offers diverse educational programs to
its employees. These opportunities are accorded by rank and job to encourage growth and
developmentto instill the professional capabilities theyll most need, such as enabling them to
apply the latest technologies to their work.

LG Electronics employs a competitive, unique rewards system that takes account of employee
working situations by nation, region, and job. This rewards system motivates employees to
perform better by helping enhance their quality of life.

Differential advantages

Fast innovation as a competitive advantage:

LG wants to make peoples lives richer, easier and better. Our goal is to put a smile on all our
consumers faces. Smart technology enables consumers to do things more easily and
experience things more pleasurably. Consumers expect LGs products to contain the worlds
most advanced technology, and that our hardware and software have been perfected. In addition,
they expect LG products to work in ways that are simple yet smart. (LGE Annual Report,
LG has set extremely high innovation goal, the company is aiming for a target of 30% more than
what its competitors can do, this also means 30% more sales and increased market share. This
makes LG up to 3 years ahead of competitors in terms of technology.
Core Capabilities:
Here LG goal is to offer technologies that suits peoples needs, as it stated on its annual report
the core goal of our product development processes is to create technologies that enrich peoples
lives. It flows directly from LGs guiding principle of creating harmony among people.
Innovation flourishes best when it anticipates or answers a need that enriches peoples lives. We
create products that help people get more out of life, have more leisure time, and experience

more pleasure. We do this by always understanding their needs and continually surpassing their
expectations. (LGE Annual Report, 2010)
LG retains its customers by providing them with long term warranties (10 years) covering the
core technologies such as its washing machines. Its innovative technology brings trust to its
consumers by bringing the worlds smartest largest capacity washing machines in the market. At
the end of 2010, it launched an 11kg washing with a new and innovative damping system and
fixed outer tub. Beside the innovative technology, LG washing machines and the other product
line of home appliances fits perfectly into consumers lives, the company combines both product
design and simplicity that appeal to the consumers sophisticated taste. They also have a special
series of washing machines with a line of photo-etched design with various colours that attract
most consumers and especially young housewives whom are attracted to this stylish design with
the pleasure of touching the products sharp technology and features that makes everything ideal
and easy to use. (LGE, 2011)

Marketing Resources:
LGE relies on the loyalty and trust of its customers and this trough efficient communication tools
with the cooperation of many famous companies worldwide like Best buy. The company was the
first brand to sponsor the 1999 World Cup of Cricket and also in 2003.
LGE Introduces its new products using contemporary communications tools like TV
commercials, Radio, Internet and billboards in order to create more brand awareness in many
countries. The company has 10000 traders worldwide and more than 47 branches, and this play

Human Resources:
LGE offers diverse educational programmes to its employees trough learning centers
worldwide, it focuses on favourable working environments that let its employees demonstrate
their capabilities at full. It also focuses on individuals creativity to create value respecting
diversity of skills. It rewards its employees based on performance, create equal opportunities
built on trust among people without considering gender, race, age, religion or nationality, and
thus creates motivation and commitment.



Most employed people seriously consider a transfer at least once during their career. The new
environment they encounter when embarking upon a career straight after graduation from college
may not be compatible with the ideal they have imagined. In addition, work that is repetitive, and
the working habits they acquire while building up a career are also factors that must be taken into
account when considering a transfer. Notably, in todays competitive society, employees are
often tempted in considering transfer after receiving an offer from a scout promising higher
salaries that are commensurate with their merit and capacities. According to data released by
Statistics Korea recently, the period that workers in the youngest group (aged 15 29) spend
with their first employer amounted to one year and seven months, with 28.5 percent of them,
which is quite high, quitting after six months or less. The term lifetime employment sounds
rather anachronistic nowadays.

Despite the recent global economic recession, the demand for IT professionals reportedly
remains high. However, the IT industry always posts a higher turnover rate than other industries.
For instance, more than 10 percent of employees at Facebook, an SNS provider that has seen
robust growth in the past two to three years, were former staff of Google. Many other
competitors are reportedly racing to scout employees from Google, dubbed the hub of core
human resources in IT. Amid this situation, Google is scrambling to prevent its core human
resources from leaving. For instance, Google reportedly increased the salary of all staff by 10
percent, and paid them an extra bonus of $1,000. The situation in Korea seems to be no different

from that in the U.S. According to the employment trend of SW industry manpower released
recently by the Korea Information Society Development Institute, demand for human resources
in the SW sector and for IT manpower in advanced countries was rising in 2012. Due to global
companies HR practice of focusing on employees capabilities, some core IT human resources
in Korea are also moving overseas, including Silicon Valley in the U.S.

Customer Focus
We provide the highest quality, safe, reasonably priced service to all our customers, improving
quality of life in the areas we serve. We anticipate and meet the needs of both our external and
internal customers.

To achieve returns of 4% p.a. above inflation over rolling 5-year periods.
Negative returns expected 3.7 out of 20 years.

Suited to
Those looking for reasonably high returns and prepared to accept potentially modest to
significant fluctuations in returns over shorter periods.

Specific objective of LG Action:

Raise awareness among LGs in the EU27 on their powers for change, their responsibility
and key role to drastically reduce GHG emissions in their corporate and community sector.
Mobilise LGs to link up to and influence European and international (UN) climate
protection processes (including the European Covenant of Mayors) and to contribute to a
European framework and the global climate negotiations,
Identify and develop European LG Positions that can feed into national, European and
international climate and energy dialogues.


Assist national-LG and European-LG dialogue with national governments, to improve
communication and recognition / support for local climate action, in the view of implementing
the EU climate and energy objectives.
Conduct advocacy at a national, European and international level to gain recognition for
the essential role LGs play in the climate and energy debate. Use the COP 15 event in 2009
(where the post-2012 international climate negotiations will be concluded), and the COP 16 in
2010, to present the European LG Position(s) and update the situation of EU27 national

Earning rates

Year ending 30 June

Accumulation accounts

Pension accounts

% p.a.

% p.a.
















5-yr avge % p.a.



5-yr avge % p.a. over CPI




Global Operations
LG Electronics plays an active role in world markets with its assertive global business policy. As
a result, LG Electronics controls 114 local subsidiaries worldwide, with roughly 87,000
executives and employees.

Product development
The LG brand is made of four elements namely values, Innovation,PEOPLE, and PASSION.
Positioning Statement given by LG in this regard is focusing on the objective of strengthening
the customers life and lifestyle with pride of ownership, , amazing feeligs, extraordinary performance.In order to manufacture the products with style and the most highlyvalued technology, LG
Electronics has heavily invested in Research & De-velopment (R&D) following the Total Quality
Management (TQM) ap-proach in all areas including Production, inspection, Quality Assurance
and Design centres etc. As claimed by LG Our R&D is driven by thedreams of our customers,
Designing and R&D is the core area which is directly related to the emotions, feelings and
expectations of the custom-ers.By bringing innovation and creativity to all business processes including manufacturing, sales, marketing, advertising, branding and brandrelated strategies, LG
has transformed this digital world into the addedvalue for the consumers lives.LG has involved its
Designers in decision making by empoweringthem for bringing innovative ideas and best
designers efforts areacknowledged by awarding them with the titles like "Super Designer"
etc.thus promoting the activity of designing and innovation. Design efforts/contributions of LG
has been appreciated by the world renowned design organizations and honoured LG with the
awards in designing category in-cluding iF Design Award, Korea Good Design Awards, reddot
DesignAward, the IDEA Award and Good Design Award Japan. LG is achievingthe innovation and
creativity milestones through 38 research labs aroundthe globe empowering it through smart technology
thus making its prod-ucts more intuitive, user friendly and up to the demands and customiza-tion.
LG has introduced a new global brand identity: "Stylish design and smart technology, in
products that fit our consumers lives." LG has bonded the Corporate Social Responsibility (CSR) with
LGs brand building strategy (LG annual report, 2008). LG is also working on building its
credibility, reputation, goodwill through this platform by contributing to-wards the society which
may in turn will be helpful in attracting potentialclients and investors.
LG believes and reiterates that giving back to the community canbring people together across
cultures and continents. In this way LG has a trust building strategy of building a strong trust
bond with people and consumers (LG, 2008). LG has joined hands with stakeholders both
globally and locally which include employees, shareholders, customers,local communities,
organizations (NGOs), non-governmental and non-profit organizations (NPOs). LG has
sponsored, helped, and participatedvoluntarily in all programs focusing on social welfare,
educational andcultural purposes. It has also supported the poverty relief efforts. Lghasdone all
these efforts throughout the world. LG Electronics sponsored and jointly participated in activities
including Environmental SustainabilityPrograms, sponsoring the global environmental
conference in collabora-tion with United Nations Environment Programme (UNEP),Global
FamineAlleviation by providing meals and medical services for World Food Pro-gramme (WFP)
in Kenya and Ethiopia and Volunteer & Community Activi-ties.Being the global brand, LG


Electronics is concerned about the environment and has set trends through voluntary green house gas
LG Performances
Open Communication
Communication is a key element of LGEs corporate culture, and is essential to accomplishing
our vision of being the World Best at Enriching Lives through Innovation. Open
communication between team leaders and individual work units helps everyone to take pride in
our shared accomplishments, and motivates employees to complete each job to the best of their
abilities. In 2009, the CEO held communication meetings eight times every month, in which the
CEO could interact freely with employees. These meetings served to share our corporate vision
and strategies, and provide guidance on individual work duties.

Employee Counseling
LGE provides free access to psychologists and counselors, with the aim of helping employees to
resolve any personal or work-related difficulties they may have. In 2009, the corporate
established corporate counseling centers in Seoul and Pyeongtaek, in addition to three branch
offices. Each facility is staffed by independent, outside professionals. As of year-end 2009, LGE
had developed a two-week in-house counseling education program, and used it to train in-house

Our Performances
Global Campus Recruiting LGE holds annual recruiting seminars at universities in Korea, and
conducts semi-annual recruitment tours of business schools, engineering schools and graduate
programs in North American, Europe and Japan. Top candidates are offered door-to-door
consulting service to make their transition to life in Korea go more smoothly. Global Internship /
Co-op Programs We operate a global summer internship program that pairs LGE staff with
Korean students studying at overseas universities to carry out joint projects. The students get the
opportunity to apply the theory they learn in classes to real-world R&D and business activities,
and to become exposed to LGEs corporate culture. The corporate also accesses quality R&D
talent by carrying out periodic exchanges of personnel and technology with Korean and foreign
universities. Specialty Development Programs The job training programs offered to LGE staff
are custom-tailored to each employee, based on annual performance evaluation results. We also
provide employee development programs at the Company level. Global Manpower Training

Programs LGE operates domestic and overseas Training Centers in Korea and overseas (Paris,
Sao Paulo, Singapore, Beijing, Nanjing, Dubai, and India) that serve as the focal points of the
corporates HR development programs. Using our Learning Net intranet facilities, the Centers
coordinate education
programs, online education, foreign language courses, book learning and special lectures.

To benefit from the widest range of talents, LGE views the entire world as its recruiting
pool. We use micro blogging to enable easy communication and information exchange
among our global workforce, and we are studying ways to apply innovative web 2.0 tools
to personal study and new-hire job training in the near future.
Internalizing innovation culture
Internalizing the LG Way at overseas work units
Acceleration of Waste Elimination activities

Television advertisement
Posters and bulletin boards

LG Electronics implements a standard recruiting process in all of its global operations.

Small variations in the recruiting process may be found depending on local employment
conditions, such as the local labor market (industry, average retirement age, etc.), and local labor
laws and regulations relating to recruitment.In some countries, an additional stage may be added
to the recruiting process, such as with the administration of aptitude and attitude tests.


Performance interdependence
Skilled employees
Heavy cost include in recruitment and hiring employees
Reduce discrimination as per EEO Law

Purpose of Selection
The basic purpose is to choose the individual who can most successfully perform the job
from the pool of qualified candidates.
To meet the goal of company suitable applicant.
Elimination of unsuitable applicant through successive stages of selection.

Steps in the Selection Process

Screening interview
Aplication blank
Selection test
Selection interview
Medical examination
Reference checks
Hiring decision

Some Employment tests

Intelligence test: Mental ability test for positions in banking,

Eg: insurance and financial services
Aptitude tests : To check the potential to learn certain skills
Personality tests : To judge the relationship between personality factors and actual
Achievement tests : To measure what the applicant can do in the current job for
which applicant claims to know
Simulation tests : Test which duplicates many of the activities and problems an
employee faces at work.

Assessment centre: These exercises are designed to stimulate the type of work
which the candidate will be expected to do .
Graphology test : To examine the lines ,loops ,hooks,strokes ,curves in the
persons personality

Selection Interview:
The interviewer matches the information obtained about the candidate for the job and
through his own observations during the interview.

Medical examination:
Certain jobs require physical qualities like;perfect hearing,unusual stamina,tolerance of
hard working conditions,clear tone etc.

Selection Practices
Arthur Anderson:The company conducts critical behavioral interviewing which evaluates
the suitability of the candidate for the position ,largely based on his past experience .

It uses extensive psychometric instruments to evaluate short listed candidates.

The company uses occupational personality questionnaire to understand the candidates

personal attributes and occupational testing to measure competencies.

Industry trends
The Society for Human Resource Managements new HR Technology Survey highlights
the following key findings for the industry:
Expanded use of the web for delivery and utilization of HR applications on a service
The majority of HR professionals surveyed said their organization did not have an
employee self-service component built into its HR technology system.


Innovative HR practices of LG Electronics India

In order to give the organisation a competitive edge LG streamlined the whole system by
integrating the HR fundamentals with Information Technology and have adopted some unique
1. LG has a On-Line Recruitment Management System. Under this prospective candidates visit
their website and directly register their CV as a result duplication of CV is immediately
identified and not accepted. This process speeds up the whole process as it does initial screening
of vital parameters like age, qualification, experience etc.
2. LG has come up with unique concept of Pizza Meetings where the whole departments meet up
for Pizza Treat and discusses issues in an informal setting.
3. LG has a help desk facility for their employees to help them overcome every aspect of their
professional problems.
4. The Blue Collar employees are given English coaching classes and at the end of every month
one employee gives speech in English in front of MD and gets an incentive for the same.
5. LG also has a family ambassador programme where dedicated mentor goes to the workers
house ans talks to the family their problems and tries to make their situation better.
6. LG has a unique Joyful Working 5 programme. It is based on 5 key factors associated with
every job Stress, Communication, Leadership, Target setting and Working hours. JW5 helped in
eliminating the issues related to these factors and bringing fun at workplace.


Conclusions & Recommendations:

The Indian Consumer Electronics & Home Appliances Industry is traditionally dominated by the
inferior quality and sub-standard products. People go for price while buying home appliances.
They seem unaware of the features needed in a standard white good. Earlier mostly the white
goods are manufactured to cater the present defined demand are need. The whole scenario got
changed in the post liberalization era with the entry of multinationals like Samsung, LG, and
Sony etc. LG is among the great chaebols (confederation of small industries) from Korea. It
has started its operation in India in May 1997 by opening a 100 % fully owned subsidiary. LG is
a company positioned as manufacturer of innovative and world-class products. Its growth
strategy is based on sales and distribution network. It has penetrated in 1800 town with
population of 1 lakh and above. They are planning to expand their dealer network to over 3000
dealers by the end of 2002. They are planning to penetrate towns with 50,000 populations and
above. It means 7,000 more towns in its network. They have maintained a fast pace of growth
since their entrance in the Indian market. It has products in the categories of CTV, Washing
Machines, Refrigerators, Air conditioners and Microwave Ovens. It has established a strong
brand name standing apart in the consumers mind. In the beginning of 1999 a survey by Taylor
Nelson depicted LGs brand awareness at around 49 %, the Gall-up Survey conducted during
Cricket World Cup 2002 demonstrated LGs brand recognition at 85 %. It has invested 100mn
US $ in the manufacturing facility and is planning to invest US $ 289 mn over the next 3 years
and is also planning to export product worth 100 mn US $. LG believes in honest pricing and not
being gimmicks of discounts and price reduction as lure. Their strength of marketing is
consumer pool, good products and pricing power.
Its product designs are centred on the middle & upper class and the ads screened highlight the
product features.
Its employees are totally committed to quality and innovation. They chant TPI 50 and TDR,
which signifies, total productivity innovation and tear down re-engineering. Through this method
the company is bringing down its costs & developed new products.
LGs corporate image is that of being the Digital leader of the new millennium.
v In case LG intend to have an entire range of washing machines to cater to all segments of the
market, it should have a smaller capacity washing machine as Videocon ( 3 Kgs etc ) as the
market for them is still very large.
v The colours of LG Semi Automatic Washing Machines (Off White, Pale Beige, and Light
Grey) are very trendy and appeal to the customers.