Creative Organizational Culture

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within 14 high-level categories of items, including the preface. Beside, the company conducts various initiatives and programs through the Sustainability Management Council, which consists of 14 related departments that handle issues from 10 different areas, including society and environment.

As described above, Samsung Electronics’ strategic vision is supported by its whole value system which serves as guidance for its employees to make major business decisions. Strategic vision and organizational culture are strongly linked and there is a need for perceived long-term mutual support between them.

5.2.2.2 Creative Organizational Culture

In the 2000s, Chairman Lee Kun-hee advocated creative management, and Samsung Electronics has been striving to create a creative organizational culture. To this end, Samsung Electronics has introduced and promoted various internal programs to reduce the discipline of its employees and enhance its autonomy. A great workplace program, self-discipline system, and self-attendance system are part of its effort for creating creative corporate culture.

Although this system does not directly raise the creativity of the company members, Samsung Electronics has been making efforts to change the management method by imposing autonomy on style and process of working, but control them on the basis of performance.

Moreover, Samsung Electronics strives to increase the diversity of the workforce; its organizational culture is changing to recognize diversity and utilize flexible management methods.

5.2.2.2.1 Creative Performance-based System

The concept of Samsung Electronics’ performance-based philosophy is where there is performance, there is a reward. Its evaluation and reward system encourage employees to work with autonomy and achieve high performance.

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Samsung Electronics conducts achievement evaluations on the annual performance of employees according to the goals set by the employee themselves. Also, the company uses the results as the basis data of reward, promotion and leader selection.

To manage performance of employees, the company evaluates them in terms of work process and outcomes as well as competency evaluations with regarding to individual

competencies and career management, which ultimately can reinforce organization competencies.

Evaluation is processed through a computerized system and performance management consists of four steps; setting goals, interim and regular interviews, evaluations, interviews based on the results.

Performance-based Rewards Award System

Through award system called as “Samsung Award of Honor, Samsung Electronics selects excellent employees who made great performance so that continuously improve individual competency and motivate other employees.

Selection & Promotion

Samsung Electronics continuously fosters its next-generation leaders by promoting talented people with great contribution to the company. Samsung particularly focuses on the fields of R&D and sales & marketing, because they think those talented employees will be the foundation for the corporate future growth.

Under the personnel management system of the company, the world-class human resources are selected regardless of the background like gender or nationality in order to achieve the very best performance results.

Career Management Job Posting

Employees can get a chance to change their jobs through the Job Posting program and it can

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be conducted anytime when there are job openings. According to Samsung, 1,700 employees in total have successfully changed their job for the past three years.

Career Consulting Center

Samsung Electronics opened the Career Consulting Center (CCC) in 2001. The CCC provides job changing education and career consulting to current employees, as well as opportunity consulting and external job matching to company retirees.

5.2.2.2.2 Dynamic Organizational Culture Reinforcement of Work Engagement A Self-regulating Work Environment

Samsung Electronics tries to support a quality-oriented work style, so that employees can focus on their job regardless of time or space. Flexible working hours— which enable employees to adjust their own working hours depending on individual situations—, remote working,

working from home and mobile offices are the typical examples of the self-regulating work environment.

Access to Culture

Samsung Electronics also provide programs to encourage employees to develop their creativity through various hobby activities and cultural experiences. Concert events and In-house clubs are the examples of its efforts.

Concerts at the Samsung Electronics Leadership Center

The concert hall at the Samsung Electronics Leadership Center, a 1,200-seat performance hall exclusively for classical music, was opened in 2014. One to two concerts by famous orchestras or ensembles are held every month, and employees, families of employees, 200 non-employees including local residents can watch the concerts.

In-house Clubs

To let employees experience various aspects of culture and maintain energy through hobbies, the company supports in-house club activities. There are 1,956 in-house clubs currently, and

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69,954 employees are participated in sports, leisure, art, culture, and talent sharing clubs. Also, its in-house clubs make contribution to the society by carrying out programs like Invitation Performances for local residents, sports exchange events with local sport clubs, performances at facilities for the disables.

Employee Benefits

Samsung Electronics offers a number of benefits programs based on the characteristics of the region of worksite to improve the quality of employees’ lives. Total expenditures of

employee benefits in 2015 was over KRW 3.48 trillion, and the benefits included health-care benefits, medical checkups, family events, educational expenses, recreational facilities and selective benefits, and so on.

Mental Fitness Management Life Coaching Center

To reinforce employees’ mental health and relieve their stress, Samsung Electronics

operates 14 specialized counselling centers and eight mental fitness clinics inside of the company.

(refer to figure 5.5) All staffs of the counselling centers are specialists with certified licenses, while the mental fitness clinics have full-time psychiatrists for one to one counselling and treatment of employees with marriage life issues, working stress. The company also provides healing programs for employees and operates a mediation room at each business site’s counselling center for eating meditation, walking meditation and pain relief programs, etc.

Healing Campus

Samsung Electronics Leadership Center operates Healing Campus for employees and their families every weekend. The campus offers a variety of healing programs; the examples of programs are Weekend Family Outings — regain strength through freestyle meditation and strolling— and a Couple’s Healing Stay — spend time for true communication over a two-day period.

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Samsung Electronics has been focusing on training and nurturing employees since the earliest days of its foundation, because the CEO of Samsung considered people as the core value of company. The company tries to encourage employees to reach their full potential by providing self-regulating and creative environment, and all employees are required to follow 'Employee Code of Conducts’ and 'Business Conduct Guidelines' at daily work.

Human Resource Management System

According to Samsung Electronics, the company believes that employees will stay with the firm as long as they feel that their contributions are valued, and they are able to do meaningful work in a stimulating and challenging environment.

Samsung Electronics operates a well-organized system with a human resource team that supports employees’ growth by helping each individual attain a sense of accomplishment, also providing proper compensation for work well done. Human resource professionals are embedded within each business unit to listen to the voices of people from actual worksites. This is apparent from the establishment of HR strategies through to the execution.