Samsung Electronics Announce Fourth Quarter -Myassignmenthelp.Com

Question: Discuss About The Samsung Electronics Announce Fourth Quarter? Answer: Introduction Bonus and incentives is considered as one of the tool used by the companies for keeping their employees motivate, which in turn helps them provide greater performance (Richard et al, 2013). This also helps in retaining the employees for longer period and attracts greater number of potential candidates for applying in the organisation (Pandey, 2014). However, it is necessary for the organisations to have a clear and equal bonus policy for all its employees to maintain equity in the workplace. However, various organisations fail to uphold their incentive policy that leads to the undesired situation and creates unhealthy workplace environment. This study will review the case of Samsung and their unequal annual incentive distributed among the employees over departments in 2015 from a theoretical viewpoint. The company provides incentives to their employee based on the profit they generate for the organisation. However, the upper limit set for the incentive is capped at 50%. This report w ill identify and explain the limitations the company is facing in HR management and the consequences they are likely to face due to the decision made. These findings will be supported with the theories and recommend probable solution for the case. Case Analysis Samsung is a big brand in the electronics industry that offers a wide range of electronics products to their international customers. The wide range maintained by the organisation makes it necessary for them to maintain a number of divisions. The organisational policies and norms are similarly applicable to all its employees working in various divisions. However, the 2015 unequal incentive distribution case is a failure in the perspective of equality in the policies. The management of Samsung distributed a full range of incentive of 50% to their employees working in mobile division despite of their failure to perform in the financial year, whereas, distributing incentives in accordance to the performance policy followed by the organisation. The officials in Samsung believe they have followed motivational encouragement to the particular division for their hard work they put into the company in the same year and will encourage them to provide greater performance in the upcoming year. H owever, this act can be viewed from a number of perspective and theoretical stance. Motivation and Reward Sajuyigbe, Olaoye and Adeyemi (2013) have identified motivation and rewards as interrelated and inseparable phenomena. The two-factor theory as proposed by Herzberg communicates that the motivation of an employee can be controlled by two primary factors that are motivators and hygiene (Malik Naeem, 2013). Hygiene factors as proposed by Hertzberg are the basic facilities the employer is expected to pay the employees such as basic salary, facilities, job security and working condition. This however, does not directly increase the motivation, but modification in this considerably changes the employees attitude towards their work. Motivators on the other hand are the rewards and incentives that have direct impact on the motivation in the employee. However, this hardly controls the dissatisfaction of the employees. Samsungs act of providing incentive to the underperforming division can partially justified. The incentive provided to the employees will definitely increase the employee motivation as anticipated by the Samsung officials that can be viewed in 2016 sales when compared with the previous year sales (Ghazi, Shahzada Khan, 2013). On the other hand, the benefitted employees might start considering this as the hygiene that might have adverse effect and a total failure of the anticipation. Hence, the investment made during poor profit turnover can be considered as poor decision of the management. Performance Management Expectancy theory as proposed by Victor Vroom on the other hand identifies the individual behavioural adjustment that helps employees to align their personal goals with the goals set by the organisation (Suciu, Mortan Laz?r, 2013). An individual performs according to the goal satisfaction. (Parijat and Bagga, 2014) on the other hand related expectancy with motivation as satisfaction could be replaced by motivation as they can be used interchangeably. These factors help in attaining greater level of performance. Samsungs case of 2015 from this theoretical stance is considered harmful for the organisation, as the goal set by the employees will possibly be reduce and will lose harmony with the organisational goal (Suciu, Mortan Laz?r, 2013). Moreover, the visible discrimination made between the divisions of the organisation will also contribute in reduction of satisfaction level among the other employees and may turn them de-motivated. For, example, the employees from battery division of the company received only 3% incentive despite of their greater performance compared to mobile division. However, the Smartphone division of the company got encouragement that got reflected in the increased market share in 2016 compared to 2015. Employee Turnover and Retention Porter and Lawlers expectancy theory, which is considered as the modified expectancy theory of Vroom identifies the need of employee satisfaction. This theory according to Korzynski (2013) values the effort and performance put by the employees and aims to satisfy the need in accordance to the performance delivered. Agwu (2013) further states that the amount of satisfaction is equal to the amount of reward received for the effort they put in. Samsung in 2015 provided the reward according to the divisional performance, which can be justified using this theory. However, the unequal benefits provided may lead to the perception of less valued. This decreased motivation will increase the rate of turnover in the company and the company will likely to fail in employee retention. Employee Relation Challenges Employee relation theories communicate that employee satisfaction and cooperation is directly related to the relation made between the employee and the employer. As identified in Human Relation Theory by its key proponents mayo, Herzberg, Maslow and McGregor, the focus should be on the employees social and psychological need (Ackers, 2014). This will help building stronger bond between the employees and employer that ultimately results into greater performance and increases efficiency of the work. However, automatic or Subtle Discrimination as stated by Jones et al (2017) is often observed in the organisational setting that leads to subconscious discrimination in the workplace. The case related to Samsungs unequal incentives is a perfect example of this type of discrimination, where the employers goal of motivating particular division may lead to dissatisfaction of the others. This significantly decreases the relationship of the group with the employer. Moreover, the South Korea is the home country of Samsung, which seriously lag regarding the existence of legislative act for controlling discrimination in the workplace (Jones et al, 2017). The country holds no as such legal enforcement for stopping workplace discrimination, which is the primary issue in this case. The country lacks in gender discrimination and workplace discrimination act for safeguarding the interest of the stakeholders. This is another major issue that can be identified in case of Samsung workplace discrimination. Recommendations Samsungs incentive issue that came up in 2015 has various limitations that have been identified above. Though the issues stand separately, they are interrelated and connected through the thread of discrimination. As considered by Wood, Braeken and Niven (2013) prioritising one above all is an act of discrimination that will lead to dissatisfaction of the greater mass. Samsungs case can potentially give birth to the identified issue, which the company needs resolving. Some of the recommendations are stated below: As mentioned, the Vrooms expectancy theory identifies the level of satisfaction in terms of value. The employee performance according to the theory will only rise if they are identified and valued. Reward and incentive policy is one way of communicating value for the job well done by the employees. Hence, the company definitely needs a transparent incentive policy, which will be equally applicable for all their divisions. This will help in maintaining the fare act in the organisation that is successful in satisfying the employee expectation. Moreover, the Samsung should also seek for other appreciation methods that will satisfy the expectations and value their effort. For instance, as proposed by Karim and Arif-Uz-Zaman (2013), constant feedback system is beneficial for an organisation, which will regularly track and update the employees about their performance and appreciate the effort put in the system. This can prove beneficial for Samsung in terms of valuing employees effort and will help in motivating the employees for providing optimum performance in their workplace. Moreover, as the level of satisfaction directly indicates the chances of employee retention and turnover. This will help Samsung retaining their employees for longer period avoiding high rate of employee turnover as expected from the case scenario. As the level of satisfaction is identified by the amount of reward received, hence, this is necessary for Samsung for proper identification of the effort put as recommended earlier (Gialuisi Coetzer, 2013). However, it is being recommended to have a strong set of rules defending the policies, which has to be equal for all the divisions. Hence, it can be recommended to Samsung to revise their rules and regulations within the organisation, avoidance of which will call for significant action for the offender. This should be valid in the managerial level, which will make them take decision accordingly for treating every division with equality. As mentioned, the case of Samsung is an evidence of subtle discrimination, which is an accidental discrimination in the divisions. Keeping one happy sometimes leads to dissatisfaction of the greater mass. This has adverse impact on the employee relation and disturbs the communication within the organisation. As identified by Carter et al, (2013), transformational leadership has the capability to improve employee relationship as it treats every employee equal and is successful in motivating its employees. Hence, the employee relationship challenge that is being faced by the organisation can easily be resolved using the transformational leadership style. This will not only help in motivating the employees, but also provide equal treatment and inspiration the employees that will create healthy environment within the organisation as necessary in Samsung. Another recommendation can be made for both motivating and retaining the employees is to provide growth opportunity. The company should provide a greater growth opportunity to their employees based on transparent performance matrix. As according to Jenter and Kanaan (2015), it has the potential to successfully motivate the employees and reduce employee turnover as expected from the case. Growth opportunity satisfies various level of need that is proposed in Maslows motivational theory, especially the need of security and esteem need. Moreover, this also has the ability to supplement in performance management and significantly raise the performance provided by the employees over different divisions of Samsung. Conclusion It is possible to draw conclusion form the above discussion that the step taken by the Samsung in their incentive policy was wrong form the ethical stance. This communicated discrimination in the workplace and supplemented in polluting the environment. The case occurred in Samsung will positively de-motivate the employees from the other departments that generated greater profit for the company. As identified in the report will degrade the performance quality of the employees belonging from other departments, which received lesser incentive despite of the greater production provided. The report also identified that discrimination among the employees will alter the relation and reduce the chances of employee retention. However, the company can still manage their employees and encourage them for providing greater performance in upcoming years by following the recommendations made in the report. Last by not the least, as recommended, change in leadership is necessary before implementing the policies due to the need of employee relation. However, the recommendations made have to be transparent and maintain equity for all its employees for having greater impact. References Ackers, P. (2014). 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