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Oh-Hyun Kwon Sustainability report, 3. The impact of both economic scenarios on Samsungs human resource and overall business strategy a.
International Monetary Fund, Consequently product prices where cut down, 42 departments spun off, 10 indebted business units were sold out like the construction business sold to the US firm Volvo.
Samsung withdrew from the automobile sector, divested acquired firms, discarded from 3 joint ventures and sold them to foreign partners. But despite all her radical efforts to reduce her current debts and cut down her inventory, she was still highly indebted and her profit margins decreasing leading her to the point of bankruptcy.
According to Schuler, R. The contrast between labour markets on an organizations operations and human resource strategies in times of economic crisis and in an emerging economy are as follows; markets facing economic crisis generally affects the organization leading to a reduced working capital, employees lay off.
A group of researchers Ulmer et al. In general, the labour market during economic crisis is flooded and abundant due to the above factors, as companies concentrate their efforts in rightsizing and minimizing cost so as not to go bankrupt. Thus, economic recession periods results to high unemployment rates.
Contrary to an emerging economy, the availability of labour in such markets are tight, limited and expensive. Consequently, organizations dash into war in search for new talents and are ready to offer competitive quality pay making the selection procedures moderated to an extent.
In such situations, the organization has a couple of choices either to recruit from the external market, implement training programs internally, promote current employees or can hire a HR agency. Such policies are implemented to boast employees internal performance and work quality for the achievement of better result or to counter respond to such threats.
These policies are beneficial to employees enabling them to work in better conditions.
For example with the work smart policies employees receive specific training programs enabling them improve their skills for their action plans for obtaining better results. As for the flexible space policies, in employees were allowed to work 8 hours if they arrived before 6pm and in a mobile system was implemented enabling employees to check their mails on their phones.
After the crisis inSamsung launched a massive recruitment campaign offering part and full time work contract to balance the her labour supply. Fortunately enough, she was able to re-employ the workers laid-off in and clear all debts.
As demand for exceeded the supply of workers, Samsung Human resource development center implemented the capital enhancement and performance based systems using the retention and attraction strategies.
Through this systems and policies, Samsung was able to measure the performances and achievements of each employee and take immediate action. As the Asian economy was rapidly emerging, multinational companies dashed into a war in search of new talents making the availability of labour scare, limited, tide and expensive causing the labour market to be competitive.
According to Lee, N. Hoy suggests the different ways a company may reacts at its different stages of growth. Impact of the economic scenarios under HRM strategies and components a. Resourcing the Organisation i.Reliable essay writing service uk samsung.
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