Reaction Paper – Samsung: A Management Revolution

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He may have also been the one who introduced Total Quality Management (TQM) in the whole enterprise. TQM, as more commonly known, consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers.

This was manifested when Lee had his Frankfurt Declaration, which he insisted that, “quality first, no matter what”.

I consider this one a success, in general. Samsung products nowadays are considered state-of-the-art devices made from high-quality materials. Samsung was able to become one of those technological companies that set a high standard to its products, which makes it difficult for other players in the market to compete with.

Perhaps one the most striking points of the article is the way it described Lee’s leadership style.

For one, he is very aggressive. A dramatic change from how his late father led the group. Initially, his people was not used to his type of leadership, probably owing to the fact that the older Lee mostly had the final say to every decision-making.

The younger Lee, on the other hand, inspired others to work hard and accomplish tasks in a very unusual way. He did this by not working his management team. He let them have do their respective tasks with complete freedom. He somehow “withdraws” himself from the scene, to allow his managers to make their own decisions.

For me, it was an effective move. Sometimes, for one to be able to test his/her abilities, especially in making decisions, he/she must have to be left alone.

Just like when travelling alone. One is faced with so many options that he or she alone will have to decide on what to take or not. The decisions that he or she will make will surely have either a positive or a negative result that in return will be a learning experience for him or her.

I think that that was what Lee is trying to teach to his people. I believe that he wanted his management team to be effective leaders by being able to make decisions that would give positive results for the company. He might have done that rare method of alienating himself from his staff because he might have wanted them to be able to stand on their own.

Given the chance, I think I would want to have that kind of manager, because I want to know how far I can go in terms of decision-making and being accountable to my own actions. But personally, I would not want a superior who does not maintain an open line of communication, because a good manager is a channel of communication, who also acts as a mediator in case of conflicts that may arise.

One very good point in the article, is the part where Samsung executives are given the chance to go back to school through half a year of reeducation.

It is always uplifting to learn that some companies know how to properly invest in their people. They give importance to training, for their people to be well-equipped with the skills required of their respective jobs, and to be at par with the industry standards.

Shangri-La Hotels and Resorts, a Hong Kong-based company that runs the Shangri-La, Kerry, and Traders brands of hotels, is one good example of a company that invests well in training its employees.

Having been trained in one of its Philippines properties, I can say that Shangri-La is very serious about training. Every property has a separate Training Department, with a corresponding Training Manager and Assistant Manager, under the umbrella department of the Human Resource. The company has a meticulously-planned training program, distinctly designed to fit the needs of the hotel’s different departments’ staff members.

The Training Department continuously conducts these training sessions, of which the employees are required to attend to. Attendance is also closely monitored.

Shangri-La, just like Samsung, also has its own training school. The Shangri-La Academy, as it is called, is a unique training center based at the Sun Yat-Sen University campus in Zhuhai, China. Its mission is to foster a new generation of hospitality professionals equipped with the innovative skills, flexibility and service ethos needed to succeed in the rapidly-changing industry.

This just goes to show how the company, like Samsung, helps its employees reach their full potential through education and training. Companies like these believe in tapping its people’s capabilities and competencies to bring out the best in what they do, which in turn will give a good impact to the company.

Through Lee Kun Hee’s leadership, Samsung employees are given the liberty to try and do whatever things they want. Lee’s regional specialist program is for me a very effective way for one to achieve the self-development and growth, and also the much-needed break. Although it may be costly, the program may benefit from it, given the conditions that it set to its program-takers. It is also a test on how disciplined Samsung employees are, and how serious they are in their respective jobs.

I also completely agree to Lee’s “7 to 4” program. In my view, this is the ideal work period. You start early so you finish early. There are still plenty of time (and also energy) after this period to be able to do other things for yourself.

This, among other things, shows how Lee is sensitive to his people.

With all the things discussed in the article and in this paper, I honestly think that Samsung chairman Lee Kun Hee was able to meet his goals and objectives for his company. Samsung Electronics is the world’s largest information and technology company measured by 2012 revenues, and 4th in market value.

Had he not been the risk-taker and dreamer that he was (and I think he still is), his company would not be where it is right now. Lee’s unusual leadership ways put his business to the top, being one of the industry giants worldwide. And let’s face it, the effects of his management and leadership programs contributed to Korea’s success as a nation, and as an economy.

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