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Can Give Samsung Company Greater Cooperation

Samsung Electronics management principles are analyzed in relation to Henri Fayol's 14 Principles of Management from 1916. It is noted that 7 of the principles directly apply to Samsung, including: division of work to increase cooperation; authority to motivate staff; discipline to maintain responsibility; subordination of individual interests to overall interests; remuneration through a merit-based pay system; centralization to allow top management control; and order to allow the large company to run smoothly. Samsung's clear ethical code and standardized policies/procedures help uphold several of Fayol's principles.

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Yi Fan
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41 views3 pages

Can Give Samsung Company Greater Cooperation

Samsung Electronics management principles are analyzed in relation to Henri Fayol's 14 Principles of Management from 1916. It is noted that 7 of the principles directly apply to Samsung, including: division of work to increase cooperation; authority to motivate staff; discipline to maintain responsibility; subordination of individual interests to overall interests; remuneration through a merit-based pay system; centralization to allow top management control; and order to allow the large company to run smoothly. Samsung's clear ethical code and standardized policies/procedures help uphold several of Fayol's principles.

Uploaded by

Yi Fan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ABUS002-4-1-MBUS

Tutorial Chapter 6
1. Choose a company
2. Analyse the application of Henri Fayols 14 Principles of Management (1916) given in the table
below in relation to the companys operation. Youre required to choose a minimum of 7
principles, and provide a brief remark to each one of it.
N
o.

Principle

Division of work

Is this as useful
today as it was
then?
Yes
No/Lea
st
yes

Authority

yes

Discipline

yes

Samsung company

Why or Why not? (as far as possible provide evidence)

Can give Samsung


cooperation

company greater

Samsung company need to motivating staff by negative


reinforcement to make sure the staff responsibility
Effected Samsung employee morale, productivity and even
company profitability can be adversely affected.
Samsung Electronics management principles
clean corporate structure - ethical code 21
All employees at the Company do not take any personal

advantage in business deals by using their job positions. The


company will not permit any illicit activity for the pursuit of
personal gain, such as irregular treatment of expenses, using
one's position for private gain.
4

Unity of command

Unity of direction

Subordination of individual
interest to the general
interest
Remuneration

yes

Centralization

yes

Scalar chain

yes

Samsung believes in merit-based pay system based on


competences and performance.
Samsung Remuneration System
Description of monthly pay system
Monthly pay Base pay + incentive + overtime pay + other
allowances
Additional pay
Traveling reimbursement: New Year's Day/Thanksgiving (100%
of Base pay)
Collective incentives (TAI, OPI) and others
Additional incentives are paid semiannually.
Incentive System
Target Achievement Incentive (TAI)
Incentive paid
semiannually according to the extent of achieving managerial
goals
Overall Performance Incentive (OPI)
Differential incentive
paid to departments and individual employees based on
managerial performance evaluated via EVA.
Standardized Samsung company policy or procedures
Can give Samsung company higher management to keep
control over a large company

10

Order

11

Equity

12
13

Stability and tenure of


personnel
Initiative

14

Esprit de corps

yes

Make Samsung company can run smoothly

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