Samsung

Introduction
Founded 1 March 1938; 79 years ago, Daegu, Japanese Korea

Founder Lee Byung chul

Headquarters 40th floor Samsung Electronics Building, 11, Seocho-

daero 74-gil, Seocho District, Seoul, South Korea

Area served Worldwide

Key people Lee Kun-hee, Chairman, Lee Jae-yong, Vice-Chairman

Products Apparel, chemicals, consumer electronics, electronic

components, medical equipment, semiconductors, solid state drives, DRAM, ships,
telecommunications equipment, home appliances

Services Advertising, construction, entertainment, financial services,

hospitality, information and communications technology, medical and health care
services, retail, shipbuilding,

Revenue Decrease US$ 305 billion (2014)

Net income Decrease US$ 22.1 billion (2014)

Total assets Increase US$ 529.5 billion (2014)

Total equity Increase US$ 231.2 billion (2014)

Performance management system

Performance management is the systematic process by which the
Department of Commerce involves its employees, as individuals and members
of a group, in improving organizational effectiveness in the accomplishment of
agency mission and goals.

Samsung performance management system

we believe the most important part of our continuous growth as the worlds
leading company is our people. Our future lies in nurturing global talent, which
leads to innovation and creativity in our products and services. To achieve our
goal, we established a diverse range of policies and initiatives in three areas:
next generation leaders, performance based evaluation, and diversity and
inclusion.
Next Generation Leaders
Systemic Training Process Program Global Mobility

Performance-based Evaluation
C-Lab MOSAIC

Diversity and Inclusion

Gender Equality ,HR Policies Samsung Barrier Free
Our global human resources team advances the companys employee policies
and initiatives to recruit, retain and develop talented employees. This team
includes specialized groups focused on areas such as training and development,
organizational capability and creative culture. In addition to a central team, HR
professionals are embedded within each business unit in Samsung to meet the
changing needs of our workforce and our business.
In particular, we established the new Samsung Electronics Leadership Center
(SELC) to operate a diverse range of training and development programs to
build a pipeline of talent and future leaders. In 2014, SELC opened the new 21
acre state-of-the art training campus that can accommodate 2,500 trainees per
day. Over 270,000 employees participated in about 1,800 training sessions at
SELC during 2014.

Human Resource Development Management

System
Learning and Development Process
Samsung operates a systemic learning and development system for its
employees around the world. Our global learning and development system is
built on three pillars: core, leadership and expertise. Building on this, we design
and offer tailored training courses to achieve individuals goals according to the
results of the Annual EDP (Expertise Development Process) assessment. In
addition, we provide opportunities for our employees to work in other markets
and experience a variety of innovation and creativity programs with partnering
organizations to infuse employee learning and the development systems into
our strategic and organizational needs.
Mobility Program
Samsungs Mobility Program provides employees outside of Korea with the
opportunity of working at Samsung Electronics HQ or other overseas
subsidiaries. This program is designed to provide on-the-job training for global
employees to help them become global leaders. Since its inception in 2009,
approximately 1,000 employees from our global offices have participated in the
program.

Remuneration and Rewards for Performance

To ensure our best performance enjoys working at Samsung and can reach their
full potential, we fairly evaluate and reward our employees for great
performance with very competitive compensation and benefits.

Our Approach
The main purpose of evaluation is to motivate employees to maximize their
performance and job expertise. Also, the Information collected on each
employee is used for determining their compensation, promotion, development,
and career roadmap. We also believe feedback based on fair evaluation can
inspire and motivate throughout the organization.

Performance Evaluation
We conduct achievement evaluation on the annual performance of employees
according to the goals established by the employees themselves, and also
competency evaluation on individual competency. The evaluation results decide
the annual salary of employees, based on which they negotiate their contract
with the company. All evaluations are processed through a computerized
evaluation system. After the evaluation, employees consult with the evaluator,
and if they are not satisfied with the results, they go through a re-evaluation by
making a formal objection. Competency-based Promotion

Performance-based compensation is an essential component in the companys

personnel management policy. As a part of our efforts to nurture next-
generation leaders, Samsung has instituted a HR policy to promote employees
based on individual contribution to corporate performance. In addition, the
companys promotion system does not discriminate against gender or
nationality, living up to our commitment to diversity and inclusion.

Performance-based Talent management

Every employee should be fairly incentivized to deliver their best results. Based
on this simple philosophy, Samsung operates a variety of performance-based
rewards programs that motivate employees to demonstrate their ability and
maximize their performance. Since the introduction of the new annual salary
system in 1997, Samsung adopted an accumulated, performance-based annual
salary system in 2010, through which employees with better performance are
eligible to receive higher bonuses. We also reward employees who demonstrate
outstanding achievement with the Proud Samsung Employee Award once a
year. By providing employees in each field with promotions and rewards, we
support our best talents to maximize their skills and knowledge.

Flexible benefits
Samsung provides flexible benefits to employees to the extent permitted by
local laws. Our flexible benefits program aims to improve the individual lives of
global employees, reflecting varying preferences by location. We provide all
regular and non-regular employees with social insurance (including national
pension, health insurance, employment insurance, and occupational health and
safety insurance), and support their physical examination, medical expenses,
and family events. The total expenditures on employee benefits has increased
over the years, and, in 2014, we spent over 3.48 trillion KRW to reward our
employees.
Training Methods
On-the-job training methods
Job rotation
The coaching or understudy
Action learning programs
Apprenticeship training system
Informal learning
Management games.
Seminar
University-related program

Training process
Personnel evaluation system
Personnel evaluation system is designed to assess employee performance
outcomes, potential capability and possibility to grow. Accordingly, data
provided from the evaluation system helps the company in taking advantages of
employee ability efficiently. More importantly, the fairness of the evaluation also
encourages employees to improve themselves for their careers. The personnel
evaluation takes place once a year. The annual operation and comprehensive
capabilities of each employee are analyzed with a measure of objectivity and
fairness of the level observed in charge.

Disadvantages and Solutions

1st Disadvantages
Samsung is an international company with thousands of employees. Therefore,
the training might not efficient and equal for all Samsung branches in the world.
Employees in Samsung Vietnam might not as qualified as those in Korea or
Japan, for example.
1st solution
The joint training criteria should be available for all branches
The company should have supervisors from HR and relevant departments from
head office travel to offices in different countries spontaneously to assess
training quality.
2nd Disadvantages
Huge amount of information provided in training courses and limited time,
employees, particularly new ones, struggle to absorb.
2nd solution
Prolong initial training courses a little bit for new employees to help them
gradually adapt to new jobs.
3rd Disadvantages
there is no guarantee that your message will get across in some functional
departments.
3rd solution
The online training needs updating and surveilling more frequently
4th Disadvantages
There is no way or not convenient for trainees to send their feedback about
training programs.
4th solution
A feedback gate can be an solution for this problem. It is where staffs can
conveniently send their thoughts on training programs.

HP (Hewlett Packard)

Founded January 1, 1939; 78 years ago

Founders William Redington Hewlett, David Packard
Defunct November 1, 2015 (For Hewlett Packard Enterprise). Now operating as,
HP Inc.
Headquarters Palo Alto, California, U.S.
Area served Worldwide

Products Personal computers, Printers

Performance management system
Performance management is a process carried out by organizations in order to
attain the organization goals by identifying their employee's performance
individually and in teams (Armstrong & Baron, 2005). The management levels
may differ from organizations to organizations thus every management has its
own performance appraisal system to identify, support, ascertain problems,
develop and appreciation to the employee's regard their work performance
(Sims 2002a, p. 81). Performance management evaluates the company's
performance of the employee's, which helps to give effective feedback in order
to improve their employee's working performance and to succeeded
organization targets.

Management by Objective
HP employees practice the scheme called "Management by Objectives" (MBO).
This scheme has structured the company objectives into two elements as long-
term objectives and short-term objectives. These objectives were discussed
between their distinct management levels that are communicating the
performance criteria with the individual employee's and as department vise
were negotiated.

Evaluation of MBO
The management by objective performance appraisal that HP employs tend to
reward employees who achieve the agree target with increased pay or
promotion, while those who do not attain objective are seen as to failed and
penalized accordingly.

Goal Setting
In HP Company, they traditionally practice the HP Way, according to it they give
respect and importance to each individual employee, therefore people in top-to-
bottom level management have determined their goals. According to Bill
Hewlett (co-founder of HP) a organizations performance should be measured by
setting up of Goals also that should be measurable in both qualitative and
quantitative terms for efficient management performance (my strategic plan).

Performance Appraisal
It is a process of identifying the employee's characteristics during the working
period that basically indicates quantitative and also qualitative features of
management performance. This can be identified by adopting certain appraisal
methods in order to find how the employee's work efficiently and perfectly.
Accordingly, performance appraisal has goal setting and performance evaluation
as arching targets. These targets are combined because of the performance
management criteria used by the managers/supervisor in order to encourage
the employee's by giving proper command about how to transfer results to
compete distinct levels of performance.

Performance Evaluation

In Hewlett-Packard, the performance evaluation method is implemented as a

basic development device. The company conducts frequent meetings by mixed
up with all level of management people at one roof to evaluate about the
management performance quarterly. According to the HP Way the employees
are given full freedom to place their requests and ideas in the meeting and their
suggestions are strongly supported. They practice an informal way of
approaching to the analysis the performance of its management by giving
feedbacks to the employees on an ongoing basis. This reflects and made the
company to introduce 360-degree and MBO appraisal method as measuring the
company's performance.

Methods of Compensation
In HP Company their management's performance is analyzed by carrying out the
management of objectives appraisal method. Through this method the company
find their employee's rating during the work time and those who attain top
rating are awarded with promotions and offers on the other hand the employee's
who got poor performance rating will be taken necessary actions to make them
correct accordingly. This appraisal scheme followed by the Hewlett-Packard
Company measures both the qualitative and quantitative aspects of their
employee's performance. The company follows a quality management hence
their objectives

RECOMMENDATIONS

MBO is the primary tool that HP uses in appraising employee

performance. The company was able to establish as effective MBO system that
is able to measure the performance of the employees against the goals that
they have set. However, relying on MBO alone can lead to different problems
and difficulties. MBO has both strengths and weaknesses. In order to maximize
the strengths of MBO and minimize its weaknesses, the company must make
use of other performance appraisal tool.

Recommended Appraisal Tools

 Other than MBO, the company can also make use of performance tools
to make sure that the performance appraisal system is effective and efficient.
The following are the recommended tools for HP:
Rating Scales

One of the most widely used performance appraisal method is some form
of a rating scale. The use of rating scales is popular among organizations
because it is simple and easy to use. With rating scales, employees are
evaluated according to a set of predetermined factors, such as quantity of work,
quality of work, absenteeism, or the like. Each evaluation factor is ranked from
the lowest level of performance to the highest in as many as fifteen categories.

Checklists

Performance appraisal checklists provide the evaluator with a series of

statements, phrases, or adjectives that describe employee performance. These
statements may be subdivided into specific factors such as quantity of work,
quality of work, and so forth, with the descriptors listed under each category.
Occasionally, the phrases or adjectives are simply listed without categorization.
The appraiser marks the statement or adjective considered to be most
descriptive of the employees performance during the period covered by the
appraisal.

Training and Development

Leadership development

We have three categories of leadership development programs:

Foundational programs targeting those at a certain level or making career
transitions, such as becoming a manager.
Skills-based programs that emphasize HPs Leadership Standards, which define
the expectations for all HP leaders. Many of these skills can be improved
through targeted skills-based learning solutions. For example, we have recently
implemented a series of modular virtual-classroom solutions called Experienced
Manager Excellence.
Select talent development programs for individuals with particularly high
potential for accelerated development and increased responsibility within the
company. These programs, called Key Talent, are highly experiential, include
senior HP leader faculty and sponsors, and are tied to HP business priorities.