10 proven facts, How does Samsung Electronics manage the organization

 

Samsung management system 'super gap'

[caption id="" align="aligncenter" width="780"] Samsung Electronics Co., Ltd.[/caption]

There is one book that is emerging as a hot topic among opinion leaders these days.

This is a book called 'Super Gap' written by former Samsung Electronics Chairman Oh-Hyun Kwon.

Samsung is a company with world-class know-how and experience that has achieved the most remarkable business results in Korean history.

How does Samsung Electronics manage the organization and manage its talents?

So many managers are curious about how Samsung Electronics manages the organization and manages its talents.

The problem is that, perhaps because of public opinion, Samsung Electronics is passive in information and knowledge dissemination! Under these circumstances, a Samsung man who held the highest position in the group published a book.

(1) Good managers and bad managers

According to Samsung man:

"There are four main types of managers"
"The first is a leading person who constantly challenges and moves toward a given goal"
"The second is a responsive person who uses his or her knowledge and abilities according to the situation"
"The third is a passive person who only does what the above tells him to do"
"The fourth is a defensive person who always lists reasons why things don't work and blames others when bad things happen."

[caption id="" align="aligncenter" width="776"] Samsung Electronics former Chairman Oh-Hyun Kwon.[/caption]

“My countermeasures can be summarized in the 4Rs.”
"I prescribe Refresh to the leading person, Repair to the reactive person, Replace to the passive person, and Remove to the defensive person"

“Actually, the management of the members of the organization is similar.”
"It is correct to nurture the first as a leader, the second to motivate or leave a follower, and to expel the third and fourth as much as possible."

(2) How to renew the organization

"The change in the IT industry is very fast, and market trends change every minute."
“To survive in this environment, we must seek innovation, not an improvement.”
“But it is the silo culture that stands in the way.”

*Silo culture, like a cement tower, where each department is engrossed in communism and closures.

"To overcome this, it is necessary to periodically change human resources."

“For example, swapping the roles of product managers and sales managers.”

"Then the manager doesn't know much about that area, so he starts communicating with his subordinates and nearby departments, and studies other areas besides his usual area."

“Moreover, they can grow into big leaders later.”

"If you refuse to change or fail to adapt? It's right to reward them generously and then let them back out."
“Of course, if you are a small business with limited manpower, it will be difficult to run an organization this way.

“I still recommend trying it out.”

(3) How to Give Ownership to Employees

Samsung man further discussed that:

Employees who have ownership and employees who only do what they are told
“I liken them to babysitters and parents.”
“It’s the difference between taking care of someone else’s child and raising your own.

"Then how can we give ownership to employees? There is only one way. We have no choice but to delegate authority."
“In other words, you have to instill the idea that this is your job.”
“To do this, you have to trust your employees. You have to minimize frequent reports.”

"When giving orders, be sure to ask the person in charge for the thoughts of the person in charge rather than giving them a one-sided offer."

“It’s about appealing that your opinion as the person in charge is the most important.”

(4) In order to effectively peddle non-gong

"My method can be summed up in the 4Ps"
"Pay by Performance, Promotion by Potential"
“Reward with money for performance and reward with rank for potential”
“Because performance and money are temporary, potential and rank are permanent”
“And there’s also the point that managers aren’t just looking for performance.”

"In the past, when the company's performance was good, we promoted a large number of members of the relevant departments"
“At this time, a person lacking incompetency was promoted to an executive position and caused a stagnant phenomenon in the rank system.”
“This left a lasting sequel.”
"It would have been satisfactory for both the employees and the company if the retained earnings had been released rather radically."

(5) To Punish Effectively

“Basically, punishment within the company should be minimal, and even if someone makes a mistake, natural improvement should be pursued.”

"But if you have to, follow the rules below."
"First, we apply the zero-tolerance principle to so-called moral hazards such as crime, misconduct, confidentiality leak, violence, and false reporting."

“In other words, they are expelled at once. It is a fatal mistake.”

“I look at the rest up to 2 times, and if it is not fixed, I will be expelled.”
"For example, if the head of the organization uses abusive language, gives unreasonable instructions, or if a member of the organization does not follow reasonable instructions."

(6) The organizational system is simple and clear

“There are times when a company needs to change its organizational system according to circumstances and goals.”
"The first thing to do is draw an organization chart"
"It's like a soccer coach forming a team, so it's right for the leader to plan it himself."
“I want to emphasize three main things.”
"Make the organization name as simple as possible. It is right to avoid giving something fresh or bluffing."

“Because anyone can see what the organization is doing.”
"For example, if it's a haircut, 'Barbershop' is correct, but 'Hair Care Lab' is wrong."

“And the responsibilities and roles must be clear.”
“This is to prevent conflicts between departments and make quick decisions.”
"For example, if both the development team and the purchasing team do product reviews, it's wrong."
"If inevitably another organization has to do the same thing, make sure to create guidelines for expected problems."

"Finally, you shouldn't put people ahead of positions"
"For example, you shouldn't suddenly create a planning and publicity office just because you scouted a famous reporter."
“It can be ignited by inefficiency and internal politics.”

(7) How to find the right people

Samsung man also mentioned:

“Once there is no suitable person, leave it blank.
“If several people are mentioned as candidates, the leader has to make the choice.”

"If someone's ability is overwhelming, there shouldn't be a problem. But if everyone is similar, you have to think about it."

“At this point, I get third-party feedback, especially about personality and reputation.”
“It is also important to consider the situation.”
"For example, when hiring a new business manager, it's like choosing passion over experience."

(8) Only hold meetings when you are ready

“Personally, I tried to improve efficiency because senior managers felt sorry for having meetings too often and too long.”
"First of all, we divided meetings, conferences, and instructions."
“Meetings are where we talk to each other about specific issues, with materials and ideas.

“Of course, you have to prepare a lot.”

"At the meeting, everyone discusses freely over a cup of coffee."
"Without any burden"
"I share the message through various means of communication that it is better for me to make a decision now rather than discussing it with the members."
“There is no need for everyone to gather, right?”

“Following the above actions will reduce meetings and streamline communication tasks.

"Then what should the meeting do? I proceed under three principles."
"Do not create unnecessary seats. Ask more questions than interrogation and evaluation. Set an end time and finish on time."

(9) From Specialist to Generalist

"In order for the company to develop, it is necessary to discover and nurture good talents"
“This is possible through education”
“However, in Korea, universities and corporations emphasize broad knowledge to juniors and specialized knowledge to seniors.”

“It’s the same with the curriculum.”

"I think it's the other way around"
“Juniors should have a strong interest in a specific area and build up experience and knowledge step by step.”
"Seniors should develop their competencies in other areas so that they can compensate for their weaknesses"
“That way, juniors can quickly establish themselves and seniors can grow into leaders.”

(10) Johnver is used not only by founders but also by office workers and members of the organization.

Samsung man also stated:

"People are envious of my career"

"But I also went through various trials and tribulations, and there were times when I even thought deeply about resigning."
“The first was when I suddenly started sales when I was only doing R&D.”
“They felt a lot of pressure because they were two completely different things, but somehow managed to get over it with a challenging spirit and a positive mind.”

"The second is when a junior in school is appointed as a boss"
"In shame, I gathered my acquaintances and declared that I would quit the company soon."
“But I changed my mind when I said that I wasn’t like me, and I served my boss, who is a junior in school, for 8 years.”
“At this time, I really had to keep in my heart every day to be patient.”
“If you have experienced a bitter taste of failure in your organization or if you have received unsatisfactory results from regular personnel appointments, I hope my story will bring you comfort.

This sums up all How does Samsung Electronics manage the organization and how Samsung manages its talents.

Also read: SAMSUNG’S COMPANY FOUNDER – LEE BYUNG-CHEOL’S 3 RISK MANAGEMENT METHODS