Samsung

Introduction
Founded 1 March 1938; 79 years ago, Daegu, Japanese Korea

Founder Lee Byung chul

Headquarters 40th floor Samsung Electronics Building, 11, Seocho-daero 74-gil, Seocho
District, Seoul, South Korea

Area served Worldwide

Key people Lee Kun-hee, Chairman, Lee Jae-yong, Vice-Chairman

Products Apparel, chemicals, consumer electronics, electronic components, medical

equipment, semiconductors, solid state drives, DRAM, ships, telecommunications equipment, home
appliances

Services Advertising, construction, entertainment, financial services, hospitality,

information and communications technology, medical and health care services, retail, shipbuilding,

Revenue Decrease US$ 305 billion (2014)

Net income Decrease US$ 22.1 billion (2014)

Total assets Increase US$ 529.5 billion (2014)

Total equity Increase US$ 231.2 billion (2014)

Performance management system

Performance management is the systematic process by which the Department of Commerce involves
its employees, as individuals and members of a group, in improving organizational effectiveness in
the accomplishment of agency mission and goals.

Samsung performance management system

we believe the most important part of our continuous growth as the world’s leading company is our
people. Our future lies in nurturing global talent, which leads to innovation and creativity in our
products and services. To achieve our goal, we established a diverse range of policies and initiatives
in three areas: next generation leaders, performance based evaluation, and diversity and inclusion.
Next Generation Leaders
Systemic Training Process Regional Specialist Program Global Mobility

Performance-based Evaluation
C-Lab MOSAIC

Diversity and Inclusion

Gender Equality HR Policies Samsung Barrier Free

Our global human resources team advances the company’s employee policies and initiatives to
recruit, retain and develop talented employees. This team includes specialized groups focused on
areas such as training and development, organizational capability and creative culture. In addition to
a central team, HR professionals are embedded within each business unit in Samsung to meet the
changing needs of our workforce and our business.

In particular, we established the new Samsung Electronics Leadership Center (SELC) to operate a
diverse range of training and development programs to build a pipeline of talent and future leaders.
In 2014, SELC opened the new 21 acre state-of-the art training campus that can accommodate 2,500
trainees per day. Over 270,000 employees participated in about 1,800 training sessions at SELC during
2014.

Human Resource Development Management System

Learning and Development Process
Samsung operates a systemic learning and development system for its employees around the world.
Our global learning and development system is built on three pillars: core, leadership and expertise.
Building on this, we design and offer tailored training courses to achieve individual’s goals according
to the results of the Annual EDP (Expertise Development Process) assessment. In addition, we provide
opportunities for our employees to work in other markets and experience a variety of innovation and
creativity programs with partnering organizations to infuse employee learning and the development
systems into our strategic and organizational needs.

Mobility Program
Samsung’s Mobility Program provides employees outside of Korea with the opportunity of working
at Samsung Electronics HQ or other overseas subsidiaries. This program is designed to provide on-
the-job training for global employees to help them become global leaders. Since its inception in 2009,
approximately 1,000 employees from our global offices have participated in the program.

Remuneration and Rewards for Performance

To ensure our best performance enjoys working at Samsung and can reach their full potential, we
fairly evaluate and reward our employees for great performance with very competitive compensation
and benefits.

Our Approach
The main purpose of evaluation is to motivate employees to maximize their performance and job
expertise. Also, the Information collected on each employee is used for determining their
compensation, promotion, development, and career roadmap. We also believe feedback based on
fair evaluation can inspire and motivate throughout the organization.
Performance Evaluation
We conduct achievement evaluation on the annual performance of employees according to the goals
established by the employees themselves, and also competency evaluation on individual
competency. The evaluation results decide the annual salary of employees, based on which they
negotiate their contract with the company. All evaluations are processed through a computerized
evaluation system. After the evaluation, employees consult with the evaluator, and if they are not
satisfied with the results, they go through a re-evaluation by making a formal objection.
Competency-based Promotion
Performance-based compensation is an essential component in the company’s personnel
management policy. As a part of our efforts to nurture next-generation leaders, Samsung has
instituted a HR policy to promote employees based on individual contribution to corporate
performance. In addition, the company’s promotion system does not discriminate against gender or
nationality, living up to our commitment to diversity and inclusion.

Performance-based Talent management

Every employee should be fairly incentivized to deliver their best results. Based on this simple
philosophy, Samsung operates a variety of performance-based rewards programs that motivate
employees to demonstrate their ability and maximize their performance. Since the introduction of
the new annual salary system in 1997, Samsung adopted an accumulated, performance-based annual
salary system in 2010, through which employees with better performance are eligible to receive
higher bonuses. We also reward employees who demonstrate outstanding achievement with the
‘Proud Samsung Employee Award’ once a year. By providing employees in each field with promotions
and rewards, we support our best talents to maximize their skills and knowledge.

Flexible benefits
Samsung provides flexible benefits to employees to the extent permitted by local laws. Our flexible
benefits program aims to improve the individual lives of global employees, reflecting varying
preferences by location. We provide all regular and non-regular employees with social insurance
(including national pension, health insurance, employment insurance, and occupational health and
safety insurance), and support their physical examination, medical expenses, and family events. The
total expenditures on employee benefits has increased over the years, and, in 2014, we spent over
3.48 trillion KRW to reward our employees.
Training and Development program
 Designing the training program
This step comprises two processes:
1. Setting learning objectives : it involves making expected outcomes clear, setting outline training
content, planning training activities, selecting materials, designing evaluation procedure and
communicating program intent to the training participants and others.

2. Creating a motivating learning environment : the learning environment should take into account
both the trainee’s ability and motivation. Because the trainee is learning in a professional
environment, so the trainee need to have a motivation to try to improve their weakness.

Training Methods
 On-the-job training methods
 Job rotation
 The coaching or understudy
 Action learning programs
 Apprenticeship training system
 Informal learning
 Management games.
 Seminar
 University-related program
Training process

Personnel evaluation system

Personnel evaluation system is designed to assess employee performance outcomes, potential
capability and possibility to grow. Accordingly, data provided from the evaluation system helps the
company in taking advantages of employee’ ability efficiently. More importantly, the fairness of the
evaluation also encourages employees to improve themselves for their careers. The personnel
evaluation takes place once a year. The annual operation and comprehensive capabilities of each
employee are analyzed with a measure of objectivity and fairness of the level observed in charge.

Disadvantages and Solutions

1st Disadvantages
Samsung is an international company with thousands of employees. Therefore, the training might
not efficient and equal for all Samsung branches in the world. Employees in Samsung Vietnam might
not as qualified as those in Korea or Japan, for example.

1st solution
The joint training criteria’s should be available for all branches
The company should have supervisors from HR and relevant departments from head office travel to
offices in different countries spontaneously to assess training quality.

2nd Disadvantages
Huge amount of information provided in training courses and limited time, employees, particularly
new ones, struggle to absorb.

2nd solution
Prolong initial training courses a little bit for new employees to help them gradually adapt to new
jobs.

3rd Disadvantages
there is no guarantee that your message will get across in some functional departments.

3rd solution
The online training needs updating and surveilling more frequently

4th Disadvantages
There is no way or not convenient for trainees to send their feedback about training programs.

4th solution
A feedback gate can be an solution for this problem. It is where staffs can conveniently send their
thoughts on training programs.

HP (Hewlett Packard)

Founded January 1, 1939; 78 years ago

Founders William Redington Hewlett, David Packard

Defunct November 1, 2015 (For Hewlett Packard Enterprise). Now operating as, HP Inc.

Headquarters Palo Alto, California, U.S.

Area served Worldwide

Products Personal computers, Printers

Performance management system
Performance management is a process carried out by organizations in order to attain the organization
goals by identifying their employee's performance individually and in teams (Armstrong & Baron,
2005). The management levels may differ from organizations to organizations thus every
management has its own performance appraisal system to identify, support, ascertain problems,
develop and appreciation to the employee's regard their work performance (Sims 2002a, p. 81).
Performance management evaluates the company's performance of the employee's, which helps to
give effective feedback in order to improve their employee's working performance and to succeeded
organization targets.

Management by Objective
HP employees practice the scheme called "Management by Objectives" (MBO). This scheme has
structured the company objectives into two elements as long-term objectives and short-term
objectives. These objectives were discussed between their distinct management levels that are
communicating the performance criteria with the individual employee's and as department vise were
negotiated.

Evaluation of MBO
The management by objective performance appraisal that HP employs tend to reward employees
who achieve the agree target with increased pay or promotion, while those who do not attain
objective are seen as to failed and penalized accordingly.

Goal Setting
In HP Company, they traditionally practice the HP Way, according to it they give respect and
importance to each individual employee, therefore people in top-to-bottom level management have
determined their goals. According to Bill Hewlett (co-founder of HP) a organizations performance
should be measured by setting up of Goals also that should be measurable in both qualitative and
quantitative terms for efficient management performance (my strategic plan).

Performance Appraisal
It is a process of identifying the employee's characteristics during the working period that basically
indicates quantitative and also qualitative features of management performance. This can be
identified by adopting certain appraisal methods in order to find how the employee's work efficiently
and perfectly. Accordingly, performance appraisal has goal setting and performance evaluation as
arching targets. These targets are combined because of the performance management criteria used
by the managers/supervisor in order to encourage the employee's by giving proper command about
how to transfer results to compete distinct levels of performance.
Performance Evaluation
In Hewlett-Packard, the performance evaluation method is implemented as a basic development
device. The company conducts frequent meetings by mixed up with all level of management people
at one roof to evaluate about the management performance quarterly. According to the HP Way the
employees are given full freedom to place their requests and ideas in the meeting and their
suggestions are strongly supported. They practice an informal way of approaching to the analysis the
performance of its management by giving feedbacks to the employees on an ongoing basis. This
reflects and made the company to introduce 360-degree and MBO appraisal method as measuring
the company's performance.

Methods of Compensation
In HP Company their management's performance is analyzed by carrying out the management of
objectives appraisal method. Through this method the company find their employee's rating during
the work time and those who attain top rating are awarded with promotions and offers on the other
hand the employee's who got poor performance rating will be taken necessary actions to make them
correct accordingly. This appraisal scheme followed by the Hewlett-Packard Company measures both
the qualitative and quantitative aspects of their employee's performance. The company follows a
quality management hence their objectives

RECOMMENDATIONS

MBO is the primary tool that HP uses in appraising employee performance. The company was
able to establish as effective MBO system that is able to measure the performance of the employees
against the goals that they have set. However, relying on MBO alone can lead to different problems
and difficulties. MBO has both strengths and weaknesses. In order to maximize the strengths of MBO
and minimize its weaknesses, the company must make use of other performance appraisal tool.

Recommended Appraisal Tools

Other than MBO, the company can also make use of performance tools to make sure that the
performance appraisal system is effective and efficient. The following are the recommended tools for
HP:

Rating Scales

One of the most widely used performance appraisal method is some form of a rating scale. The
use of rating scales is popular among organizations because it is simple and easy to use. With rating
scales, employees are evaluated according to a set of predetermined factors, such as quantity of
work, quality of work, absenteeism, or the like. Each evaluation factor is ranked from the lowest level
of performance to the highest in as many as fifteen categories.
Checklists

Performance appraisal checklists provide the evaluator with a series of statements, phrases,
or adjectives that describe employee performance. These statements may be subdivided into specific
factors such as quantity of work, quality of work, and so forth, with the descriptors listed under each
category. Occasionally, the phrases or adjectives are simply listed without categorization. The
appraiser marks the statement or adjective considered to be most descriptive of the employee’s
performance during the period covered by the appraisal.

Training and Development

Leadership development

We have three categories of leadership development programs:

Foundational programs targeting those at a certain level or making career transitions, such as
becoming a manager.

Skills-based programs that emphasize HP’s Leadership Standards, which define the expectations for
all HP leaders. Many of these skills can be improved through targeted skills-based learning solutions.
For example, we have recently implemented a series of modular virtual-classroom solutions called
Experienced Manager Excellence.

Select talent development programs for individuals with particularly high potential for accelerated
development and increased responsibility within the company. These programs, called Key Talent,
are highly experiential, include senior HP leader faculty and sponsors, and are tied to HP business
priorities.