Samsung Organizational Structure

SAMSUNG ELECTRONICS ORGANIZATIONAL STRUCTURE

With Samsung’s influence in the technology world increasing and with a presence of more than 80 countries and 30,000 employees, analysis of its organizational structure has proved to be quite interesting. Samsung began in 1969 just after South Korea’s independence. It is one of the most powerful technological multinational corporations occupying the same league as Apple, Microsoft and LGE.

However, though it has been recognized as the world largest technological company it is still a family business i.e. most of those occupying high positions come from the founding family of Samsung. This nepotistic organizational structure can be attributed to the reactive nature of South Koreans who majorly depend on networking and loyalism to spread their influence and success. While most American technological companies’ structure are based solely on skill and credit, Samsung’s structure is based on both skill and loyalism.

The Asian reactive nature has also compelled the company to maintain its South Korean executive team because of the kind of harmony that is associated with their culture. Their lack of desire to begin conflict and their inherent nature to maintain their public face has actually worked well with Samsung in the past. Their belief in strong networks is what has actually propelled them to establish their influence across the world with many subsidiaries and partners.

During the 90s, Samsung just like other Multinational companies moved to China due to the attractive manufacturing conditions. This was a major step towards the expansion of Samsung as a global technological corporation. However, with time Samsung discovered the value of the China not only as a manufacturing hub but ...

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... networking and the Italian eloquence and persuasion would be a perfect recipe for a continuous successful profit generation. Thus Samsung should begin to value the advantageous characteristic of cultural integration because it offers more than what a single family can offer.

In conclusion, while Samsung’s organizational structure currently works perfectly with the top management positions being held by South Koreans affiliated to the founding families it would be a great move if some of the positions were given to members of other cultural anchorages.

References

Lewis, R.D. (2012). When Teams Collide: Managing the International Team Successfully. London: Nicholas Brealey Pub.

Nisen, M. (2013, March). Samsung Has A Totally Different Strategy From Apple, And It's Working Great. Retrieved from http://www.businessinsider.com/samsung-corporate-strategy-2013-3