International Journal of Pure and Applied Mathematics
Volume 120 No. 5 2018, 3809-3819
ISSN: 1314-3395 (on-line version)
url: http://www.acadpubl.eu/hub/
Special Issue
http://www.acadpubl.eu/hub/
A STUDY ON ORGANISATIONAL CULTURE AND CUSTOM BEHAVIOUR
OCCURRING IN SAMSUNG ELECTRONICS
1
V.Santhosh Kumar , 2Dr..Murugan Ramu
Student, First Year BBA,LLB(HON’S), Saveetha school of law , Saveetha University, Saveetha
1
Institute of Medical and Technical Sciences , Chennai-77, Tamil nadu , India.
2
Assistant Professor of management , saveetha school of law , Saveetha University Saveetha Institute of
Medical and Technical Sciences , Chennai-77, Tamil nadu , India.
1
sk763808@gmail.com , 2muruganramu.ssl@saveetha.com,
___________________________________________________________________________
Abstract:
A learning organisation is a clearing based community that make the most important
value in Samsung Electronics that is why people share and facilitate personal and knowledge
and experiences system each other and ,are good though and idea in organisations . The study
measures the building practices conducted by the Samsung Electronics using organisation
culture. The learning organisation require sustainable and continuous activities and not
completed by changing many factors with Human Resource this study will same achieve
Samsung organisation .this analysis and expolres the success factors of Samsung Electronics
in organisational culture and custom behaviour . Samsung is potential for mobile and
television in India .so company low cost manufacturing with high quality. Samsung leading
in mobile industry . Samsung Electronics and Apple, Inc., two of the largest technology
today’s world, provides on how vertically integrated firms today operate. While both
Samsung and Apple control much of their value chains, they, too, outsource some of the
chains to other. Korea is a far e country that has become a high developed state in a short
period of time. Samsung is one of the world’s leading multinational corporations. Samsung
has been ranked 8th on the 2013 Inter brand Best Global Brand list. In future become top 5
brand in the world .
Keywords: organisation culture of Samsung Electronics, finding of Samsung Electronics,
suggestion ,benefit of customer in Samsung Electronics .
3809
International Journal of Pure and Applied Mathematics
Special Issue
INTRODUCTION:
Samsung was named by Lee Byung-chul, founder of Samsung electronics once he
established the Samsung trading Company on March, 1938. SAM in Samsung is defined as
strong, abundant and big; whereas "Sung" means that high and bright. (Chnag, J. H., 2010)
apparently, Samsung's origin wasn't involving electronics. Initially, Chairman Lee found out
a trade export company in Korea that sold-out fish, vegetables, and fruit to China. begin from
1958, Samsung began to expand into different industries such as media, financial, ship
building and chemicals and Samsung electronics was established under subsidiary of
Samsung group in 1969. The company then enlarged to semiconductor business and have
become the primary chip-making facilities within the country throughout that time. Samsung
electronics targeted on four areas that are digital media, semiconductor, telecommunication
network and LCD digital appliances. In 1993, the "lightest" transportable of its era was
developed. Finally, it surpassed Sony to become world's twentieth-largest and most wellliked brand. Samsung was Making OLEDs display. The Samsung was world large making
the OLEDs with 40% market share worlds wide and 90% share of world AMOLED market.
2800 international patent are in hand by Samsung electronics in 2006 that makes it because
the largest owner of AMOLED technology patents. the corporate also became the secondlargest mobile-phone maker beating Motorola in the year 2007 for the first time. In 2010, it
produces 30 nm-class DRAMs and 20 nm-class NAND flashes that were the first time within
the world. At 2011, it's the world's largest mobile phone maker and second-largest
semiconductor chip maker. Samsung electronics became the most important smartphone
vendor due to sales of Galaxy SII and Galaxy Note devices.Grattam (2002) “ a handbook of
Human Resource management on Samsung Electronics” the concept that people are the
organisation key resources of sustained competitive. Advantage continuous overriding theme
in the research literature (Nganginlai 2013) “ overview of the growth of Samsung group
Malaysia” this paper tell Samsung Electronics industry in Malaysia has gram to become an
prime industry , the evolution of Samsung Electronics industry .represive laws a
unionistAlison in Samsung Electronics.samsung group in Malaysia. The aim of study known
about the organisational culture and customer behaviour occurring in the Samsung
electronics.
3810
International Journal of Pure and Applied Mathematics
Special Issue
Objectives:
This research done to known about
● To measure the benefit of customer in Samsung Electronics .
● To analysis the efficient and economic marketing efforts .
● To known humanities and social study of Samsung Electronics .
Hypothesis
Null alternative : this is no impact of relationship between organisational culture and
customer behaviour in Samsung electrics
Alternative hypothesis: there is relationship between organisational culture and customer
behaviour.
Method and materials :
The present study deals with analysis research and descriptive kind study of research. The
research collected from secondary sources
● Article
● Books
● Websites
● Journal
Observation:
The communication channel of Samsung electronics is formalized. formalisation
describes however an organizations’s jobs are standardized and therefore the extent to that
worker behaviour is guided by rules and procedures. This component makes the process of
succession routine and regular. Thus, there'll be minimal
disturbance to a corporation
function if there are people being replaced. In Samsung, the personnel function is under cfo
whereas cfo reports to and receives orders from CEO. (Chang, S. J., 2008) maybe, once the
corporate must create an investment, the proposal is written by the connected business unit.
Finally, the proposal is approved by workplace of Secretaries and Chairman. (Calantone ,
Garcia ) Many rules might be found in Samsung electronics and this match with the
characteristic of mechanistic organization. according to Samsung electronics global Code of
Conduct, all the workers ought to follow the codes and therefore the business principles to
comply with laws and moral practices in addition on express their commitment to social
responsibility. (Samsung electronics Co., Ltd. [SECL], 2006) for example, according to
principle 2-2-2 from the world Code of Conduct, the corporate can make sure that any
proprietary info acquired through its business activities shall be recorded and safely unbroken
3811
International Journal of Pure and Applied Mathematics
Special Issue
and managed as intellectual property. In 2011, zero-tolerance principle was declared
altogether cases of misconduct and unethical business on "Law Day". (Bogeys )All workers
and executives ought to sign a pledge of compliance to agree of taking responsibility for any
violation or misconduct.The communication channel of Samsung electronics is formalized.
formalisation describes however an organization's jobs are standardized and therefore the
extent to that worker behavior is guided by rules and procedures(.S.y.song ) This component
makes the process of succession routine and regular. Thus, there'll be minimal disturbance to
a corporation function if there are people being replaced. In Samsung, the personnel function
is under cfo whereas cfo reports to and receives orders from CEO maybe, once the corporate
must create an investment, the proposal is written by the connected business unit. Finally, the
proposal is approved by workplace of Secretaries and Chairman. (Kwak, J.)Many rules might
be found in Samsung electronics and this match with the characteristic of mechanistic
organization. according to Samsung electronics global Code of Conduct, all the workers
ought to follow the codes and therefore the business principles to comply with laws and
moral practices in addition on express their commitment to social responsibility. (Samsung
electronics Co., Ltd. [SECL], 2006) for example, according to principle 2-2-2 from the world
Code of Conduct, the corporate can make sure that any proprietary info acquired through its
business activities shall be recorded and safely unbroken and managed as intellectual
property. In 2011, zero-tolerance principle was declared altogether cases of misconduct and
unethical business on "Law Day". All workers and executives ought to sign a pledge of
compliance to agree of taking responsibility for any violation or misconduct.
Planning:
Planning includes process goals, establishing strategy, and developing plans to coordinate
activities. In Samsung, their vision is about by the highest management that's "Inspire the
world, create the future". Samsung Electronics' core network that are trade, partners and
workers with the effort to contribute a much better world and with lot of experiences for all.
Besides, Samsung also achieve one in every of the highest 5 brands within the world by 2020
and established three strategic approaches in management that are creativity, partnership and
talent.
Leading:
Leading includes motivating staff, guiding the activities of others, choosing the most
effective communication channel, and resolving conflicts. office of Secretaries takes the
3812
International Journal of Pure and Applied Mathematics
Special Issue
leading role in Samsung as they do coordination whenever there are conflicts happen. but,
the synergies could also be created via involuntary cooperation or fiat because the business
units need to accept its resolution. Also, the secretarial Offices spread company philosophy
and improve business coordination and knowledge, that are shared among affiliates.Amabile,
T. M. (1996) the workers of this company are motivated by the philosophy of living by
strong values is that the key to good business. Those values encompass people, excellence,
change, integrity and co-prosperity, along with the Samsung code of conduct are the radical
for them to make every decision.
Organising:
Organizing includes determinant what tasks are to be done, who is to try and do them,
however the tasks are to be grouped, who reports to whom, and who can create the decisions.
Samsung electronics contains a strong business division structure that's managed
independently by business unit managers. (Mullen, J., & Hancocks, P.)the corporate is split
into 5 sectors, that are Digital Media, Semiconductors, Telecommunications, Digital
Appliances and LCDs. within these sectors, there are 13 global Business Managers (GBM)
who responsible to organize the firm on major product divisions in terms of personnel, sales,
and production inside their several divisions. staff are divided according to their specialize
and skills into completely different tasks to extend work output.Any proposal of investment
that's written by GBM should be reviewed by the finance department, followed by cfo. Then,
cfo reports to ceo. Finally, this is approved by office of Secretaries and Chairman.
Controlling:
Controlling includes looking performance, comparing it with goals, and correcting any
significant deviations. In Samsung, the overall performances of bod, ceo and staff are
controlled by Audit Committee, which contains a broad range of audit right from high to
bottom. ("Ethics Management", 1995-2008) for example, they need the right to inquire
regarding financial reports from the bod and staff at any time, the right to claim to suspend
illegal activity of the corporate bod member, the right to decision a general shareholders'
meeting so on. There are separate audit groups that under the direct control of ceo with the
responsible of encouraging staff to adhere to the practice of management by ethics. (Clover
(2005))
Product innovation
Samsung's product aim India enclosed CTVs, audio and video product, info technology
product, mobile phones and residential appliances. Its product vary lined all the categories
3813
International Journal of Pure and Applied Mathematics
Special Issue
within the shopper electronics and residential appliances. Analysts felt that the wide product
vary of Samsung was one in every of main reasons for its success within the Indian market.
Samsung positioned itself on the technology platform.
Price
Pricing is playing the main role for Samsung success .
Distribution
The launch of new products , Samsung having distribution system . Samsung had 18state
level disturbance offices and direct dealer interface . The direct dealer is help the company
get quick feedback from the dealers
Advertising and sales promotion :
In 1995 , Samsung entered to India, it realised that Indian customers not familiar to
the company so the company is launched company advertisements
Finding:
Samsung electronics have a centralized structure creating the highest management
own the authorities and powers over all the important decisions. This build the decision
creating process quick and swift and can carry out quickly. in this way, organization is more
efficient as implementation of any plans, ideas or policies will be carried out quickly without
any delay and this is often very important especially to affect the fast paced economic and
competition in market. this is often supported by a study in journal by Choong Y.Lee. but,
overly centralization in organization is also not smart for the corporate. (Shin JS, Chang
SW.)All of the vital decisions are created by the highest management whereas the middle and
1st line management cannot voice out their opinions however to follow the order of the
highest. If the decision created by the highest management is incorrect, it will affect the
company business and therefore lowering the company profits. Therefore, a decent leadership
is vital to guide the corporate.”( Dr.Lakshmi T and Rajeshkumar S , 2018. ) this is often
supported by the professor chang Sea-Jin that stated there's no guarantee that good leader can
sustain and even they'll make mistake as well in his book review. Samsung electronics are
having hierarchical management structure that reflects the importance of seniority within the
Korean culture. The hierarchical structure brings synergy when things are going well
however could potentially be disastrous if one a part of the process goes far from planned.
they're slow to react to new opportunities, which regularly need transformative change.
3814
International Journal of Pure and Applied Mathematics
Special Issue
Samsung electronics has several rules and regulations that are ruled by the highest managers
of the organization. once the highest managers are unable to regulate the lower-level
activities, they themselves can substitute the principles and rules. Since they need the
authority to rent and fire the executives and staff within the organization anytime, the staff
got to accept the tasks given by the managers and follow whatever they said. staff are
constantly determined and monitored (Trishala A , Lakshmi T and Rajeshkumar S, 2018)by top
managers throughout their working period to ensure that they're not creating any mistakes or
violating the principles. Consequently, fatigue are accumulated once staff are operating
below such nice pressures that referred to as structure fatigue.Moreover, staff of Samsung
electronics have to be compelled to obey the global Code of Conduct, that consists of variety
of principles. (Burns, T., Stalker, G.) maybe, under principle 1-4-1, it stated that 'employees
shall not attribute their personal political beliefs and conduct to the corporate, or cause such
opinions or conduct to be attributed to the company'. Besides, principle 2-4-3 showed that
'the company won't permit its officers and staff, whereas in office, to act as number of boards
of company with conflicts of interest or participate in competitive business activities.' (SECL,
2006) There are still a large amount of rules and principles that the workers ought to comply
with and that can be referred from the global Code of Conduct, 2006.
The management of Samsung electronics is understood as 'fear-based management'.
the staff need to be loyal to their company in order to remain within the company. However,
organizational fatigue can bring negative effects to the corporate. If the staff or executives are
laid-off against their wills for any reasons by the highest managers such as the chairman or
the office of Secretaries, their anger can lead to their betrayal and loss their loyalty. (Angle,
H. A.) there have been many cases on that the staff of Samsung electronics tried to sell the
proprietary technologies to Samsung's competitors and to alternative corporations.
Suggestions
● Samsung should focus on further increasing its market share to the various product
● Samsung should be constantly work on the innovating the product
● Samsung should be involved in partnership and more events did in the 2012 did
olympics .
● Samsung should be work maintenance and increasing international relationships with
various countries
3815
International Journal of Pure and Applied Mathematics
Special Issue
Conclusion
Samsung electronics has a mechanistic organizational structure because it has rigid
hierarchical relationships and tall organizational structure. within the company, every worker
has fixed duties and that they have to follow lots of rules. Also, the decision creating method
is centralized and therefore the communication channel is formalized. In Samsung, the goals
or visions are planned by the highest management. office of Secretaries takes the leading role
as they responsible to solve the conflicts furthermore as help the chairman to manage and
direct the individual affiliates. Besides, they also spread the company philosophy to inspire
the workers. Samsung electronics is split into Digital Media, Semiconductors,
Telecommunications, Digital Appliances and LCDs, that are managed by business unit
managers. the performances of Samsung electronics organization are controlled by Audit
Committee.
In this assignment, we've got learned the characteristics of the 2 types of
organizational structures, that are mechanistic organization and organic organization that
concern
the
work
specialization,
departmentalization,
authority
and
responsible,
centralization and decentralization, span of management and formalisation. when analyzing
these factors and looking all the connected information of Samsung electronics, we tend to
may conclude that this company is a mechanistic organization. Thus, our analyzing ability
can be strengthen once do this assignment. Besides, we've got a stronger understanding to
recognize and differentiate these 2 organization models. what is more, a lot of knowledge
about this company may be gained during the analysis.
Reference :
1. Amabile, T. M. (1996) Creativity in Context: Update to the Social Psychology of
Creativity.
Boulder,http://www.scirp.org/(S(i43dyn45teexjx455qlt3d2q))/reference/ReferencesPa
pers.aspx?ReferenceID=537199 CO: Westview Press.
2. Angle,
H.
A.
(2000)
“Psychology
and
Organizational
Innovation”.
Ihttp://redfame.com/journal/index.php/afa/article/download/2723/2874n A. Van de
Ven, H. Angle, and M. S. Poole (eds.), Research on the Management of Innovation:
The Minnesota Studies. New York: Oxford University Press, 135-70.
3. Burns, T., Stalker, G. (1961) The Management of Innovation. London: Tavistock
Publications.https://trove.nla.gov.au/work/7775520
3816
International Journal of Pure and Applied Mathematics
4. Calantone , Garcia
Special Issue
A critical look at technological innovation typology and
innovativeness
terminology:
A
literature
review
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.467.9895&rep=rep1&type=
pdf
5. Damanpour, F. (1996) “Organizational Complexity and Innovation: Developing and
Testing
Contingency
Models.”
Management
Science,
(42)
(5),
693-
701.https://books.google.com/books?id=FWI2DwAAQBAJ&pg=PT130&lpg=PT130
&dq=damanpour,+f+(1996)+%E2%80%9Corganizational+complexity+and+innovati
on+developing+and+testing+contingency+models+%E2%80%9D&source=bl&ots=c
aZ0u9A0p9&sig=07NX8QLlElsTguth0KxbCLJnwy
6. Donaldson,
L.
(1996)
“The
Normal
Science
of
Structural
Contingency
Theory.”http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.468.6669&rep=re
p1&type=pdf In S. R. Clegg, C. Hardy and W.R. Nord (eds.), Handbook of
Organization Studies. London: Sage, 57-76 Kogut zander (1992) ,Knowledge of the
firm, combinative capabilities, and the replication of technology.
7. Gatignon
Construct
, tushman (2002) ,
development
of
A structural approach to assessing innovation:
innovation
locus,
type,
and
characteristics
.https://pubsonline.informs.org/doi/abs/10.1287/mnsc.48.9.1103.174
8. Tushman (2012) Open innovation and organizational boundaries: The impact of task
decomposition
and
knowledge
distribution
on
the
locus
ohttps://papers.ssrn.com/abstract=1980118
9. Bogeys ( 2012) Managing Distributed Innovation Strategic Utilization of Open and
User
Innovation,
Creativity
and
Innovation
Management
?https://pdfs.semanticscholar.org/c4a4/03e50154dbbf937db3bd8c069612d6e82a61.pd
f
10. Lee 2004 Case study of Samsung's mobile phone business, KDI School Working
Paper
Series
Lee.https://archives.kdischool.ac.kr/bitstream/11125/17027/1/W04-
11.pdf
11. J.-Y. Song, “20 years of Samsung's New Management: An International Symposium”,
(2013).http://www.sersc.org/journals/IJSEIA/vol8_no12_2014/12.pdf
12. T. Khanna, “The Paradox of Samsung's Rise”, Havard Business Review July-August,
(2011). https://www.hbs.edu/faculty/Pages/item.aspx?num=40700
3817
International Journal of Pure and Applied Mathematics
Special Issue
13. Kwak, J. (2014) The Reasons Why Xiaomi Surpassed Samsung s Dominance in the
Chinese Smartphone Market .http://money.cnn.com/2018/04/30/technology/xiaomiindia-smartphone-manu-jain/index.html
14. Mullen, J., & Hancocks, P. (2017, February 28). Samsung heir faces trial after indictment on
corruption charges.http://money.cnn.com/2017/02/28/technology/samsung-jay-leeindictment-bribery-corruption-scandal-south-korea/index.html
15. B.alexson
“industrial
networks:
a
new
view
reality
,
London
in
business
1992.https://www.amazon.com/Industrial-Networks-New-ViewReality/dp/0415025796
16. H.hakansson
(2002)
“how
should
companies
interact
networks.http://www.uma.pt/filipejmsousa/ge/Hakansson%20and%20Ford,%202002.
pdf
17. S.y.song 2013 “20 years of Samsung new management . An international syraposium
https://lazure2.wordpress.com/2013/07/02/20-years-of-samsung-new-management-asmanifested-by-the-latest-june-20th-galaxy-ativ-innovations/
18. Clover (2005) owners perceptions of factors that constrain the survival and growth
SMEs https://www.tandfonline.com/doi/abs/10.1080/03031853.2005.9523712
19. Shin JS, Chang SW. 2006. Anatomy of Samsung Semiconductor's Global Leadership (in
Korean), Samsung Economic Research Institute, Seoul,
Korea.https://books.google.com/books?id=oGKvBAAAQBAJ&pg=PT675&lpg=PT675&dq=shi
n+js,+chang+sw+2006+anatomy+of+samsung+semiconductor%E2%80%99s+global+leadersh
ip&source=bl&ots=krnZqrZfXD&sig=smjSPMny4EB1OXykrRC0srsXPk0
20. Siegel J, Chang J. 2009. Samsung Electronics, Harvard Business School, Case 9-705508 Teece DJ. 2007. Explicating Dynamic Capabilities: The Nature and
Microfoundations of (Sustainable) Enterprise Performance. Strategic Management
Journal, 28(13): 1319http://contents.kocw.or.kr/document/lec/2012/ChungNam/ParkJaeKie/05.pdf
21. Dr.Lakshmi T and Rajeshkumar S , 2018. “In Vitro Evaluation of Anticariogenic Activity of
Acacia
Catechu
against
Selected
Microbes”,
International
Research
Journal
of
Multidisciplinary Science & Technology, Volume No. 3 , Issue No. 3, P.No 20-25, March.
22. Trishala A , Lakshmi T and Rajeshkumar S, 2018.“ Physicochemical profile of Acacia
catechu bark extract –An In vitro study”, International Research Journal of Multidisciplinary
Science & Technology, Volume No. 3 , Issue No. 4, P.No 26-30, April
3818
3819
3820