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Added on: 0000-00-00 00:00:00Order Code: Question Task Id: 0
Internal Code: MAS6829
Human Resources Management:
Samsung typically doesn’t pay so fantastically, supplementing its employees’ base salary with annual bonuses. These bonuses are capped at 50% of the employee’s salary and are usually awarded for exceeding internal profit targets for each division. Despite Samsung Mobile performing relatively poorly in 2015, employees will still receive the maximum bonus for their “sincere contribution to keeping the division running despite numerous challenges”. Not exactly encouraging words – “keeping the division running” – but at least Samsung won’t see a
mass exodus of staff, which might have been the case if the Mobile division got diddly squat for their 2015 efforts. Samsung officials admitted that “last year, performance at Samsung’s handset division wasn’t that strong. But the division fared well despite growing challenges such as the rise of cheap Chinese vendors amid the new market landscape.” Samsung’s audited Q4, 2015 earnings will be released this week with the full financial year report not far away. Earnings guidance figures were issued for the quarter a couple of weeks ago and showed a 15% profit increase for the quarter over Q4, 2014, although revenue remained the same. Cost cutting exercises were the cause of increased quarterly profit, but Samsung Mobile obviously hasn’t fared too well on its own. The news of the maximum 50% bonus being awarded to a poorly performing division must be a bitter pill to swallow for other employees of Samsung Electronics that weren’t treated so favourably. Samsung’s battery division employees will be walking away with just a 3% bonus for the year due to a failure to increase its business throughout 2015.
Samsung’s consumer electronics division employees are being awarded a 10% bonus, network business employees get a 20% bonus and Samsung TV staff will receive 21% bonuses. Three more divisions – digital media research lab, technology centre and software centre – are all picking up a 45% bonus, while Samsung’s highly profitable semiconductor division is the only other department to earn the top salary bonus of 50%. As one Samsung official said: “Samsung will try to motivate workers through proper compensation. The decision for maximum bonuses to mobile employees includes the company management’s hopes to proceed on their given mission under new leadership.” If bonuses equal motivation, don’t expect anything exciting out of Samsung’s battery division in 2016.
Uploaded By : celina
Posted on : February 03rd, 2018
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