APPLE OR SAMSUNG?

WHO SHOULD I BE WORKING

FOR?

Complied By: Rachel D’Souza

EnRollNo: 2798C

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 ACKNOWLEDGEMENTS.
The success and the final outcome of this human resource management assignment required the
support of a few important people. Thank you, teachers and family for your support to help me in my
clarifications whilst doing the project. Also, I am extremely grateful for the long period of time given
to complete this assignment so to have carefully thought out and made necessary changes for
improvement.

Majority of this essay is essentially my opinions alone. However, I did take the help of various
websites to backbone my ideas and opinions as well as increase my knowledge and understanding on
the subject.

On the completion of this assignment, I have learnt a lot about the topic such as the numerous factors
to consider when looking for a job and how the company’s success varies in accordance to the human
resource department. Things that I would never have looked into otherwise.

Most importantly, I have learnt a lot from both brands collectively. In particular, their work practices
and how it affects the final outcome and success of the company. In short, I got a perspective from
both companies and their practices and learnt to appreciate them more.

INTRODUCTION.

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Everyone wants to work in a well-represented company, commercialised. Having a well-known brand
name is just one of the factors which entice a potential employee to a particular organization.

Individuals today, are more concerned about whether or not their company follows good ethical
practices. Having good and efficient workforce practices are an essential factor when choosing the
company you wish to work for. In my opinion, a good-reputed company is not always the best route
to go for since they may accommodate unethical work practises for their employees. Therefore, it is
essential to do your research on the particular organisation in mind before committing to working
there. Today, there is vast number of websites available such as linkedin, glassdoor, etc, where in
previous employees give their honest opinion on how it is to work there. This gives potential new
employees an insight as to what to expect and if they should take up the job.

Human resources, according to the Invancevich and Glueck,“HRM is concerned with the most
effective use of people to achieve organizational and individual goals. It is the way of managing
people at work, so that they give their best to the organization”.

In short, it is concerned about the employees. We all know that employees are the body of the
organization and hence must be treated well. But not all organisations follow this adequate. Many
firms are concerned with profit making and will allow employees to stay late in order to finish work.
Some are not given breaks whilst others are not given extra pay for the overtime they put in.

Both Apple and Samsung are well known electronic, consumables brands. Both in equal competition
against each other. In Apple Inc, there are over 80.000 employees and Samsung, over 275,000. Both
are quite significant in the market and are known to be the top places to work. However there have
been hidden instances about their employees outside the US.

Apple, in China is said to have hired children at the age of 15 to work in factories under unsafe,
chemical fumed conditions (refer to appendix below for article). Apple, like most companies, has
placed their factories in countries adapting cheap labour to make more profit. Apple has, in the recent
years, gone and observed these malpractices and promised to make a change. In one of his interviews,
Steven Cook, the CEO of Apple had said: “we believe that workers everywhere have the right to a
safe and fair work environment” and instituted the numerous checks by the Fair Labour Organisation,
after the growing critics of the people over work suicides and numerous reports on exploitation.

Cut costs equals higher profits is said to be the common internal motto for most MNCs who relocate
in order to take advantage of cheap labour and flexible laws as compared to the United States.

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Samsung too, seems to be involved in such unethical behaviour. Reading articles, I found out that the
Samsung factories situated in China partake in dangerous, unsafe working conditions for its
employees. Its employees consisting of children aged 16. These children are exposed to fumes and
other dangerous gases and hence, their health will begin to degrade at a very young age leaving them
inefficient to work when they grow up. They are also restricting their knowledge by working instead
of learning,

In my opinion a human resource department needs to be situation in every location of Samsung’s, not
only in their offices. Today’s human resource department is the backbone of a successful
organization. HRM deals with the responsibilities, functions, behaviours and importance of
employees in the organization. From recruiting people to training them to performance appraisals,
motivating employees as well as workplace communication, workplace safety. The main focus of the
HR Department is to introduce practices and policies that focus on solely increasing performance of
the employees’ and maintaining high level of employee satisfaction This essay comprises of two
successfully organisations: Samsung as well as Apple, who both centrally believe that human resource
is the backbone to their corporate and hence highly value the department.

 “You need to have a collaborative hiring process.” – Steve Jobs, Apple

“We will devote our human resources and technology to create superior products and services,
thereby contributing to a better global society.” –Changjo Kwan, Samsung

LITERATURE REVIEW

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Different companies accommodate different human resource practises; all to ensure the most efficient
and strategic procedures and practises are being followed. By implication, Apple proves in the case
study above, that organization of workers in accordance to their talents seems to be a far more
appropriate approach than giving employees a sense of entitlement. Apple believes that doing so
would only exceed their expectations for continuous promotions and weaken their self-reliance. This
HR strategy seems appropriate as being in Apple, many individuals are under the impression that
joining such a company may increase their chances of having a higher pay and regular promotions
and increments. However, like other organisations, Apple pays similarly. Not allows employees that
initially sense of entitlement restricts future demotivation. The organisation gains a competitive
advantage by using its people efficiently, focusing on their talent and expertise.

OBJECTIVE OF THE STUDY

The objective of conducting this study is to get adequate knowledge on how the Human resource
department of both well-known brands: Samsung and Apple, can affect an employee’s behaviour and
the overall success of the business. Although the human resource department doesn’t seem to have
direct link to the product, it does play a fairly significant part for the employees who manufacture and
sell the product and give Apple and Samsung its brand name and reputation. Therefore it is essential
to know learn the significance of an effective human resource management team. And the implication
of the human resource management team in the success of the organisation.

APPLE INC.

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Apple Inc. is the leading manufacture of the popular electronic consumables. This multinational
corporation targets a wide market of consumer electronics, computer software, and PCs. This includes
the popular IPod, IPad, and the IPhone, as well as the Mackintosh line and the popular ITunes
software. Having such a wide and strategic range that targets a range of people, Apple has never
failed to bring excitement and consumer satisfaction for its customers.

Upon doing research on the success of Apple, various sites suggested that:

 Apple stays at least two years ahead of its competitors

 Offer great customer service and in-store experiences
 For any product that Apple creates, the people who create it have to want it themselves

The common point of recurrence in the 3 main successes of Apple is its Employees. Yes, I believe
that the reason for the success of Apple and any other organisation is due to its Employees. It is the
employees who imagine, create, manufacture and produce the overall end result of Apple’s products.
Therefore the employees of any organisation must be treated well and trained adequately to ensure the
overall success of an organisation. As of April 2015, Apple had finally announced its financial results;
making a total revenue of $45.6 billion and net profit of $10.2 billion

APPLE INC’S CODE OF CONDUCT

According to accountingweb.com, code of conduct is defined as behaviour expectations for both
management and other employees that provide employees with legal and ethical standards that will
influence their performance and commitment to the entity’s system of internal control.

Apple’s code of conduct plays a vital role in ensuring that the working conditions for its employees
are treated with respect and that the manufacturing process is environmentally recognisable. Some
codes of conduct of Apple are:

 Antidiscrimination-This states that no worker shall be discriminated based on race,

colour, age, gender, sexual orientation, ethnicity, disability, religion, political affiliation,
national origin, or marital status in hiring
 Prevention of Underage Labour- Apple welcomes applicants of all levels, including
interns and new graduates.
 Environmental protection - conservation of precious natural resources and the continued
health of our planet is a priority.
 Child labour is strictly prohibited. Suppliers shall not employ children. The minimum age
for employment or work shall be 15 years of age.

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  Working Hours-Except in emergency or unusual situations, a work week shall be
restricted to 60 hours, including overtime, and workers shall take at least one day off every
seven days. All overtime shall be voluntary.
 Fair Treatment- Suppliers shall commit to a workplace free of harassment. Suppliers
shall not threaten workers with or subject them to harsh or inhumane treatment, including
sexual harassment, sexual abuse, corporal punishment, mental coercion, physical coercion,
verbal abuse, or unreasonable restrictions.
 Health and Safety- Suppliers shall commit to creating safe working conditions and a
healthy work environment for all of their workers.
Appendix #1- derived through secondary research:

www.syniverse.com/files/Syniverse-Supplier-Code-of-Conduct.pdf

But the question is does Apple keep to its ethical promises as claimed in its code of conduct?

As mentioned previously in my introduction to the essay, through research I found out that Apple was
adapting to malpractices in their factories in China. However they claim that they didn’t know of such
and after years of critics, apple has promised to send the fair labour organisation to check. Yet there
has not been an accurate, positive response from them and no one knows whether the malpractices are
still carrying on.

EFFECTIVENESS OF HRM IN APPLE INC.

In order to do an effective, honest research on the HRM in Apple, I conducted research from sites like
GLASSDOOR.COM. This gave an insight to how the employees felt whilst working in the
organisation. The opinions of the employees differed vastly.

Staffing is an aspect taken very seriously in the HRM department of Apple. In the US, it is a two day
event where in over thousands of individuals show up, hoping to get a job. There are various forms of
recruiting an individual: Face-to-face, Telephone call, Skype, etc.

In accordance to a website: www.cultofmac.com, Luis Abreu speaks up about his “gruelling” hiring
experience for an Apple Company at Cupertino. Revealing to the readers how tiring the process is to
get shortlisted over and over. “It can take from a week to up to 3 months to get hired.”

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An induction programme is conducted annually for the new employees who are recently hired to
make them feel welcomed and to amplify their motivation and excitement to work in the organisation.
This may also orientate them to the culture and working methods of the organisation.

On their website, i.e., www.apple.com/jobs/us, they provide a range of options in order for people to
choose how they wish to contribute to the apple organization. Whether it may be in corporate, retail,
or an AppleCare Advisor.

“The interview process can be a challenge. Expect to be grilled on any technical skills you list on your
resume, as well as many behavioural attributes”.

Through various attributes found through research, it can be understood that the HRM takes its
staffing and recruitment process very seriously and hence prove to be effective for the success of
Apple.

However, it was just the upside in US alone. Apple is a global company and has branches all over the
globe. Not everyone is given the same treatment as the employees in US. More than 90 percent of
Apple’s products – including the iPhone, iPad and Mac computer — are assembled in China. Labour
practices and working and living conditions at factory-owned dorms are harsh, cruel and overall
unsafe. People are forced to work under such condition, which have led several to the point of suicide,
says a recent study. The New York Times wrote an article regarding this subject focusing on the ill-
treatment of the workers and how awful their working conditions were:

Appendix #2- An extract of the New York times article and proves how poorly these workers in
China are being treated.

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In my opinion an effective HR department must not only be for the developed countries, rather for all
the countries that the company is located at. This in return gives all round good name for the
company.

SAMSUNG.
“To devote our talent and technology to creating superior product and serviced that contribute to a
better global society.” This is Samsung’s well proclaimed vision. As we can see, Samsung gives great
value and credit to its “talent” members; that is, its employees. It is important that employees see their
worth and efforts valued as it acts as a motivator for them to pursue further. Thereby excelling in
better quality products.

The organisation has recently conducted a survey asking employees why they applied to Samsung.
The majority of the responses focused on the healthy and safe working environment provided for
them. A safe working environment is mandatory and Samsung provides such, as mentioned in their
Code of Conduct. Samsung has developed and gone beyond their training courses offered. Employees
now have the opportunities to work with talented professionals aboard and have come with promising
results in their productivity. Samsung has also opened an online communication platform
“SamsungLIVE” that allows all employees a chance to communicate, regardless of their rank in the
organisation. This gives all employees a voice in the organisation. They are opened to say whatever

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they wish to and are given the promise by the management to take their opinions into consideration.
Samsung develop a lot of courses for Samsung staff to learn, and give them opportunities to go
outside to learn. For instance, the design centre staff can go abroad or have chance to work with
famous talents

The main objective for every HR department of any company including Samsung Electronics, is to
ensure ethical, morale practices for each and all its employees. From employing the people to
developing their capacity and increasing their productivity and to finally reward their services through
performance levels of the employees.

Samsung has maintained a no union at any cost policy. This is essentially human resources practises
including an austere recruitment process, full-fledged training, merit-based compensations and an
above average wage rate. This underlines the need for a union.

The main, essential reason for the increase in productivity levels of the Samsung workers is due to
Performance Appraisal. This is the process of collecting, observing and analysing individual
behaviour. The key to this process is the match the expected performance of the employee along with
the anticipated goal set for them by the seniors/ supervisor. Due to adequate training, employees are
able to meet and even exceed their performance and productivity levels.

One of Samsung human resource strategies is to recruit the highest quality personnel from around the
world, regardless of their nationality, race or religion. Samsung is also making great efforts to identify
those individuals who possess the capability and talent which Samsung is looking for. Samsung
secures such talents and goes to the extent of further enhancing their competence. The employees
receive a fairly high compensation for their contribution in the form of achievement incentives every
year.

In order to compete on globally scales, companies need to adopt innovative strategies and carry out
open management that removes all restrictive and discriminatory institutions and practices. The
human resources departments are getting exceeding importance are the competition in the world
market increasing. Employees are hired based on their qualification, however need to be arranged
adequately to ensure full utilization of their efforts and abilities. Samsung declared “Open HR” which
means that the company was abolished any and all discrimination and prejudice practises based on the
qualification of an individual. Instead it is vastly based on the talent of an employee and the skills and
knowledge that they inhabit. This fully maximises their potential because they are not only seen for
their academic background rathe beyond that. This motivated the employees to exercise skills that
they would normal not proclaim such as their creativity in branding and advertising. Not only does
this help the employees’ self-esteem, but it also creates a form of harmony in the workplace. They
believe that opportunities should be provided to everyone regardless of their qualifications.

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Compensation and promotion is based on the individuals’ skills and performance levels. This, in my
opinion, is seen as a very effective HR strategy as many individuals these days are pay in accordance
to their qualifications while, in reality, they don’t work as much as the lower levels in the company’s
hierarchy.

An interview conducted with Mr. Rajest Dhadich, the Area business manager of Samsung in PUNE,
suggested that a more effective management technique was to use performance appraisal as a form to
increase productivity of its employees. It ensures the productivity of its employees, to remain
competitive and get a higher rating from the employers.

The office provides the employees with an employee friendly Human Resource (HR) Manual at the
date of joining which gives them a brief idea about what is expected out of them, their duties,
responsibilities, along with their rights. This is to ensure that the employee has a clear understanding
of his duties and responsibilities at all times. For Samsung it is essential that all employees know their
rights in an organisation.

The company organises wellness programs for its employees to ensure perfect health and wellness at
all times. It of medical check-ups, cerebral and cardio secular disease risk assessments, work related
stress assessments, etc.

The employment and hiring process of Samsung has developed over the years and changed
drastically. Preference was giving to those from prestigious universities and from personal references,
rather than competence and performance selection.

When asked about what the ideal employee for Samsung was, Mr Dhadich responded with:

 People with a passion, creativity, those who lead change and innovation
 Humane and honest people with high ethical standards who are willing to act out corporate
ethics and the company philosophy whilst complying with the rules and regulations
 People with expertise and understanding of foreign culture and who desire to venture globally
 People who maximize business synergy through cooperation and are able to increase the
value chain by mergence.

Through the information about the HRM of Samsung, we can understand why exactly the company
prospers so significantly. It is due to its employees. The employees are the main successors of the
organisation and so hence must be chosen carefully by the HRM of the company.

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 Appendix #3 shows a snippet of reviews of Samsung employees left on websites which helps the
individuals looking to work in Samsung. It provides an insight to how it is to work there.

Samsung’s CODE OF CONDUCT

Samsung Electronics global code of conduct
 We comply with laws and ethical standards
 We maintain a clean organizational culture
 We respect customers, shareholders and employees
 We care for the environment, health and safety
 We are a socially responsible corporate citizen
Appendix #4 - derived from the Samsung website

Like Apple, Samsung too has a border Code of Conduct that promises to take care of its employees.
However, like most MNCs, Samsung shares the same story. Workers in China, behind closed, unseen
doors, slave away for more than 86 hours a week with a day break every 2 weeks. This is however not
what people consider when they purchase their electronics because which electronic brand today is
ethical? Most if not all follow unethical practises in order to provide competitive prices for their
customers.  

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 A COMPARISON OF THE INCENTIVE
PROGRAMS OFFERED IN BOTH
ORGANISATIONS.
APPLE INCENTIVE PROGRAM SAMSUNG INCENTIVE PROGRAM
 401(k) Plan (with company match)  Subsidize school tuition for employees
 Café featuring local, organic ingredients children.
 Commuter programs, including free  Income protection
shuttle to Cupertino (Wi-Fi equipped)  National pension scheme
 Employee stock purchase plan  Flexible time plan
 Financial education seminars  Annual Health check ups
 Flexible Spending Accounts (for health  Rewards/ allowance when target is
care or dependent day care needs) achieved.
 Health insurance  Café points where they can utilize for any
 Holiday/vacation pay purchases.
 Life insurance  Full health insurance covering employee

 Long-term care insurance and their dependents.

 Long-term disability insurance  Guarantee coverage for medical bills that

 On-site fitness centre result from critical illness or death.

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  Personal/family counselling  Offers company discounts to various
 Product discounts recreational resorts
 Tuition assistance  Offers gym and fitness facilities.

 Wellness programs  CEO anniversary gifts.

 generous employee product discounts  Gifts for personal anniversaries.

Appendix 5- a table of comparison between both brands. Subject to change over a period of
time.Also, this incentive program may only be offered in US and not worldwide

CONCLUSION AND RECOMMENDATIONS.

We see a common tread on the success of both the organisations was due to its Employees. We can
understand the importance of employees in an organisation due to this and fully understand the need
of an effective human resource department. For the business to be successful and fully ultize its
workforce, a human resource department is needed.

A promblem faced by Samsung is their SamsungLIVE program. Although it is said to have ample
advantages for the employees, it can also have fairly high disadvantages as well. Online
communication has also seized to be a problem. for example, their can be a miscommunication
between two employees whilst using their program. This can further lead into arguments and conflicts
and potenially reduce the productivity levels of employees due to extreme disputs. In my opinion, it
sets for unnessary conflicts between employees. Also, this may cause less face-to-face interaction as
everything can be solved on the internet. Thius redcuign the need to socialize with one another.
Moreover the Top Management may not have thetime to essetially answer all the comments of the
employees. They may answer just a few, leading the rest of the employees to feel their voice is
unheard in the organization. Employees should instead be provided with a leader to answer their
neefuls.

Also, regarding the facts that both Apple and Samsung are sigificant advocates of the famous hidden
motto: reduce costs= increased profits“, I believe that both the brands should terminate this decision
and instead, find other alternatives to making higher profits whilst still maintaining their expectional
quality products. This includes: investing in machinery to do the work which was initially done by
children. This can ensure no overtime and use of child labour. Also it will be cost effective in the long
run. Only is this extremely beneficial for the company as they will be abiding by the laws and

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conducts they previously promised, the children can now complete their education without the worry
of work.

In my opinion, the human resource management seems to only be full-fleged in the developed
countries where laws are meant to be strictly followed and abided or to face deep consequences and a
bad reputation. Therefore most MNCs take advantage of the cheap labour and flexibile laws in the
developing countries. Therefore, I believe that there should be a human resource department allocated
in China as well that pays attention to the peoples needs and also ensures safe working conditions for
the people. This can gain a good reputation for the company and ensure good sales.

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