“A study on the organizational structure of Samsung”

Prepared by:
Name: Joydeep Datta
Id: 21IUT0160060
Program: MBA 1ST YEAR GENERAL
Batch: 2021-2023

A report submitted in partial fulfillment of the requirement of the course Human

Resource Management of MBA program batch 2021-2023

Submitted to: Dr. T.S.Haokip (Assistant Professor)

 Introduction

What is an organizational structure?

An organizational structure is a system that outlines how certain activities are directed to achieve
the goals of an organization. These activities can include rules, roles, and responsibilities.

The organizational structure also determines how information flows between levels within the
company. For example, in a centralized structure, decisions flow from the top down, while in a
decentralized structure, decision-making power is distributed among various levels of the
organization.

Types of Organizational Structures

Functional Structure

Four types of common organizational structures are implemented in the real world. The first and
most common is a functional structure. This is also referred to as a bureaucratic organizational
structure and breaks up a company based on the specialization of its workforce. Most small-to-
medium-sized businesses implement a functional structure. Dividing the firm into departments
consisting of marketing, sales, and operations is the act of using a bureaucratic organizational
structure.

Divisional or Multidivisional Structure

The second type is common among large companies with many business units. Called the
divisional or multidivisional structure, a company that uses this method structures its leadership
team based on the products, projects, or subsidiaries they operate. A good example of this
structure is Johnson & Johnson. With thousands of products and lines of business, the company
structures itself so each business unit operates as its own company with its president.

Flatarchy Structure

Flatarchy, a newer structure, is the third type and is used among many startups. As the name
alludes, it flattens the hierarchy and chain of command and gives its employees a lot of
autonomy. Companies that use this type of structure have a high speed of implementation.

Matrix Structure

The fourth and final organizational structure is a matrix structure. It is also the most confusing
and the least used. This structure matrixes employees across different superiors, divisions, or
departments. An employee working for a matrixed company, for example, may have duties in
both sales and customer service.
 Objective
 To study the organizational structure of a company.

Limitation
 One company.

Methodology
 Secondary data has been collected from the websites.
 Analysis

SAMSUNG COMPANY ORGANIZATIONAL STRUCTURE

CEO~
The responsibilities of an organization's CEO or MD are set by the organization's board of
directors and other authorities, depending on the organization's legal structure. They can be far-
reaching or quite limited and are typically enshrined in a formal delegation of authority.
Typically, the CEO/MD has responsibilities as a director, decision-maker, leader, manager, and
executor. The communicator role can involve the press and the rest of the outside world, as well
as the organization’s management and employees; the decision-making role involves high-level
decisions about policy and strategy. As a leader of the company, the CEO/MD advises the board
of directors, motivates employees, and drives change within the organization. As a manager, the
CEO/MD presides over the organization's day-to-day operations.
DIGITAL MEDIA AND COMMUNICATION~
Digital communications are just what they sound like: communications performed with and by
digital technology. Multimedia developers and managers use digital communications methods to
create a variety of entertainment, graphic design, and artistic productions.
CONSUMER ELECTRONICS~
For more than 40 years, Samsung Electronics has been at the forefront of innovation, delivering
breakthrough products and exceptional value to people around the world. As the #1 Consumer
Electronics company, Samsung Electronics is the global leader in mobile, semiconductor, and
display technologies. Through our successes with the Galaxy SIII and the Galaxy Note series, as
well as our groundbreaking advances in computer memory and green technology, we
continuously strive to push the limits of technology to better people’s‟ lives guided by the simple
philosophy, „Inspire the World, Create the Future‟ we are committed to shaping the future of
technology and setting the standards in the realm of fast, dynamic change.
IT and MOBILE COMMUNICATION ~
Has been a specialist provider of wide-area digital radio dispatch solutions and antenna sites.
We lead the industry in providing seamless, flat-rate airtime on our independently owned
Trunked Networks and the most up-to-date technologies in a rapidly changing market.
MOBILE COMMUNICATION DIVISION~
Communications and collaboration at any time at any place. Important businesses include
telecommunications services-based businesses (telephony, UC application solutions),
solution/service-based businesses (mobile office, single), and software development support
businesses (mobile contents, ESDM).
DEVICE SOLUTIONS~
Samsung's Device Solutions Business leads the world's memory and LCD markets in product
and technology development. It consists of four major divisions:
The Memory and System Large-scale Integration (LSI) Divisions, comprising Samsung's
semiconductor operations, and LCD and
Storage Systems Divisions
In a fast-paced electronic components industry, marked by intense competition and market
volatility, clearly differentiated products from each of these divisions have helped spur continued
growth. Samsung's
Memory Division
Designs and manufactures integrated circuits for storing digital information. It is the market
leader in dynamic random access memory (DRAM), static random access memory (SRAM),
NAND flash memory, and Solid State Drives (SSDs). In addition, the Division has been setting
an aggressive pace for developing new memory devices and multichip packages, as well as
pioneering fusion memories and commercializing nanotechnology. The
System LSI Division
Designs and manufactures logic and analog integrated circuit devices. It is comprised of 3 major
areas of business concentration - mobile solutions, home & media solutions, and ASIC& foundry
services. The Division focuses its efforts on five strategic product areas - display driver IC (DDI),
CMOS image sensor (CIS), a mobile application processor (AP), smart card IC and media player
SoC. systems hold the number one market share in DDI, Navigational AP, and MP3 SoC.
Samsung's
LCD Division
Produces panels for TVs, digital information displays (DIDs), notebook PCs, and desktop
monitors. It is the market leader in developing next-generation, premium products such as ultra-
slim, edge-lit LED-backlit LCD panels, and is at the forefront of creating new markets with
advancements in LED-backlit panel design and 240Hz LCD technology. The Division also is
leading the LCD industry in its transition to the 16:9 widescreen aspect ratio, as well as in the
introduction of high-value-added products such as 20-inch and larger slim-panel monitors and
super-bright DID panels. The
Storage Systems Division
Is a leading producer of high-capacity, high-performance hard disk drives for notebook and
desktop PCs, as well as digital camcorders, MP4 players, and a wide range of other consumer
electronics and mobile devices? It recently introduced a new line-up of ultra-compact, high-
capacity external hard drives. It has made significant advances in hard disk drive technologies
leading to the lighter, quieter, and more energy-efficient drive.
Samsung’s Organizational Structure Type and Characteristics
Samsung has a product-type divisional organizational structure. This structure type uses product
categorization as the basis for determining which resources and business operations belong to
certain divisions, such as the company’s Device Solutions division. The entire corporate structure
is unified via Samsung’s headquarters, which are located in Seoul. Strategic management
directions from the corporation’s headquarters are implemented through strategic objectives
specific to the structural divisions’ contexts, such as the context of the U.S. market for consumer
electronics. Samsung’s corporate structure has the following main characteristics:

i. Product-type divisions
ii. Centralized corporate hierarchy
iii. Geographical groupings
Product-Type Divisions. Samsung’s organizational structure’s main characteristic is its product-
type divisions. Each division is a group of resources and operations that represent a product
category, such as resources and operations for the production, distribution, and sale of consumer
electronics. The corporate structure’s emphasis on technological innovation and product
development in these divisions helps in achieving Samsung’s corporate vision and mission
statements. The technology conglomerate may add, merge, or disband divisions, depending on
current business needs and the development of the organization, considering that further business
diversification is possible. The following are the product-type divisions in Samsung’s
organizational structure:

a) Consumer Electronics
b) Device Solutions
c) IT & Mobile Communications
Centralized Corporate Hierarchy. Samsung’s corporate structure involves a hierarchical model,
despite its product-type divisions. The corporate headquarters are the most notable manifestation
of this hierarchy, which is part of an organizational design for ensuring that the conglomerate’s
operations are unified and effectively directed towards growth and operational effectiveness.
This characteristic of the organizational structure involves centralization of overall strategic
planning, as well as vertical lines of command and authority that relay strategic directions from
the headquarters to the daily operations in the Consumer Electronics, Device Solutions, and IT
& Mobile Communications divisions.
Geographical Groupings. Samsung uses geographical groupings or divisions as a minor
character of its corporate structure. In the company’s organizational chart, these geographical
divisions are generally under the product-type divisions. For example, Samsung Electronics
North America is a geographical division within Samsung Electronics, which is a product-type
division. Through this characteristic of the organizational structure, the company implements
region-specific strategies, such as strategies intended for the North American market for Device
Solutions.
 Findings
Samsung’s Corporate Structure’s Advantages & Disadvantages
Advantages. Samsung’s corporate structure has the advantage of extensive support for product
development, especially in terms of technology and innovation. This support comes through the
structural framework of the conglomerate’s product-type divisions. Another advantage of this
organizational structure is the company’s ability to fine-tune its strategies and operations based
on market characteristics. This is possible through the geographical groupings or divisions within
the product-type divisions, such as IT & Mobile Communications. These structural advantages
coupled with the strengths shown in the SWOT analysis of Samsung buttress the business against
fierce competition. In this way, the organizational structure supports the company’s competitive
advantage, especially against major competitors like Apple Inc.

Disadvantages. Samsung’s organizational structure has the disadvantage of limited autonomy of

the product-based divisions. For example, because of the centralized hierarchy, the product-
based divisions need to follow strategic directives from the company’s headquarters in Seoul.
Nonetheless, this structural hierarchy is necessary to keep Samsung’s entire organization unified
toward its mission and vision involving superior technology and technological products. In
relation, the corporate structure presents challenges in expanding the business in regional
markets, considering the low priority given to the geographical groupings. Nonetheless,
Samsung’s corporate culture helps in minimizing the negative effects of these structural
disadvantages. Also, its current global success means that the technology company effectively
uses the advantages of its corporate structure despite the disadvantages.
 References
 http://panmore.com/samsung-corporate-organizational-structure-
characteristics-analysis
June 19, 2022
3:56 pm