Hence, Samsung must adopt a Samsung electronics organizational structure structure with centralization for critical and globally important decisions and to let small decisions be taken up by the lower managing authorities. The effectiveness cannot be measured solely based on the goal approach as there may be multiple conflicting goals.
The support and knowledge from expert and skilled personnel can be blended with the intellectual minds of the management and hence decision making process can be refined and qualified.
This current organizational structure on one hand empowers the critical decision making by concentrating the responsibility and a vision for focus in hands of some top managements Samsung electronics organizational structure.
Samsung electronics is spread across 80 countries and has developed a reputation by emphasizing on innovation in its management strategies. The span of control is the number of employees functioning under a single manager. The degree of standardization is known as formalization.
The authority is inherent in the hands of the leaders and top of the managers with the responsibility lying over their competent shoulders. The product outputs and the marketing outputs are compared with the set objectives by the top management to evaluate the present performance and set future missions.
The uncertainty of the legal and regulatory environment is also increasing as several revisions to relevant laws are pending for review which may negatively impact the creation of a holding company structure.
The four major groups divided under fourteen divisions have manipulated the globe and have marked an imprint of Samsung Electronics all over.
The effectiveness cannot be measured solely based on the goal approach as there may be multiple conflicting goals. Work and Life Balance through Work Smart: The goal oriented approach assumes the organization to be planned and logical entities for accomplishment of rationales of the organization.
Different geographic areas may call for different requirements and hence decision making must be decentralized into the hands of managers for a particular branch as they understand the local needs ad culture and thereby will be able to make better decisions.
The work specialization and the division of labor is based on the fields of functioning and production of the organization Miles et. Sometimes, the structure of Samsung can also be viewed as matrix structure with partly department oriented management and others based on the demarcation based on the product line or product organizational structure.
This ensures that the decisions taken are well consistent with the organizational strategic objectives and reduces to take up the risk of wrong decisions.
Samsung electronics has not only utilised status-quo resources but also developed dynamic capabilities as it rose to the top. The business is departmentalized to promote effective and divisional management with a centralized control commanding or guiding of vice presidents taking the responsibility of leadership in all facets of work within operational departments.
One man decision making structure. The authority is inherent in the hands of the leaders and top of the managers with the responsibility lying over their competent shoulders. Since announcing the review plan in November as requested by investors, the Company and its advisors have evaluated important strategic, operational, financial, legal, tax and accounting considerations in determining the optimal structure with the Board and management maintaining a neutral position.
Organizational Effectiveness The organizational effectiveness is prudent and strategic utilization of resources Brews, of all the departments to create and maintain competitive advantage. The main element of the organization is the theory of departmentalization which can be done based on various platforms and dimensions.
Samsung Electronics has established a Creative Development Research Institute System to provide employees with opportunities to pursue creative new ideas that take full advantage of their talents and professional passions in a way that encourages taking risks.
Samsung took quite a few risks initially to achieve its goals, it kept its winning team refreshed by constant vigilance and talent renewal. Samsung though calls for highly intensive and creative research and development unit and department yet, the key decisions, rules and regulations are being set and modulated by the top management leading to a spring back of innovative disruptive thinking strategies and increasing the level of dependence to execute something worth Euphoria!
With uncountable people owning at least one Samsung product, it is a true picture that the present organizational structure is promoting in overall progress. Any sort of differences or challenges may lead to job threat and hence, may result into wrong or sometimes blunder decisions.
The review also found a number of issues that may result from the process of converting into a holding company. Moreover, this structure also serves as a platform for sustainable growth by allowing the Company to invest in new growth engines with earnings generated by profitable businesses.
This approach is highly ideal for organizations which are relying on the feedback or response to the demands of the customers.
This is as a result of the centralized hierarchy of organizational control which pays more attention over innovation and production of various product range meeting the demands of the customers and less attention towards the methods, means or process undertaken in order to produce goods or services.
All the important or unimportant decisions are taken up by chairman Lee and there is a lack of leadership by professional managers. The chain of command is he flow of line of authority from the top level of management to functional level of the organization.
This new initiative encourages employees to be more entrepreneurial in developing creative ideas that can become new businesses. The price for all the products are based over the motto of providing a trendy technology with a high command over brand quality and image in a premium price.
Even though Samsung has a geographically dispersed structure yet, the division of power and decision making abilities lies in the hand of top management team or more specifically the chairman.Organizational Structure and Design Prepared By: Anuj Arora – 12FN Himika Chaudhary Nitin Mudgal Prateek Kumar – 12DM Sachin Gupta – 12FN Index Introduction Samsung India Electronics Ltd is a subsidiary of Samsung Electronics Corporation headquartered in Seoul, Korea.
The company was incorporated in the year Samsung organizational structure is divisional and the company is divided into three key divisions: IT & Mobile Communications (IM), Consumer Electronics (CE), and Device Solutions (DS).
The rationale behind the choice of divisional organizational structure relates to Samsung’s large product portfolio and differences between products and services the company offers to the market. The model of the organizational structure in the Samsung Electronics company is a department organizational structure with CEO as a commanding officer for the whole organization spread globally and with multiple heads, managers or leaders taking up the departments of finance, technology, marketing, research and development, or finance.
SpringSemester% Organization%Theory%Exam%% How Samsung Electronics’ Organizational Structure and Culture Affect Its Innovation % Name:%JeenChun%. Samsung Electronics announced today the result of its review regarding the optimal corporate structure of the Company. After conducting a comprehensive review with external advisors, the Company’s Board of Directors has decided not to convert to a holding company structure.