Disgruntled Employess Lead to Change

Illustrated by BB/Paris

Reports have been trickling into newspapers about disgruntled employees of Samsung India. Their complaints about the punishing work culture and exacting overtime rules have rung alarm bells in the top management of Samsung Electronics.

According to a recent report, Samsung has announced big changes. It has taken nearly three years for Samsung to re-think about the work culture it had been following. Disturbing stories that hit the headlines have forced the re-think. “The government of Brazil is suing Samsung for labour violations in the company’s Brazilian factories. Brazil wants $108 million in damages” was one such story. Another said: “Brazil’s labour ministry discovered labour violations at Samsung’s Manaus factory, such as excessive work hours of up to 15 hours daily, and insufficient breaks. Prosecutors even said that over 2,000 workers suffered from health problems in 2012 due to working conditions”.

Samsung plans to ease working conditions and have a less exacting regime in an effort to recreate a ‘winning spirit’ among employees. The corporate war between Samsung and Apple for capturing the burgeoning smart phone market of India has been fierce. The resolve of Samsung to bring about changes in its corporate culture will now also send Apple scurrying to redefine its management strategies.

Smartphones govern the growth index and penetration of Samsung. According to the report on global technology and telecom, India’s smartphone market will grow at a compounded annual growth rate (CAGR) of 23 % through 2018. This would account for 30 % of the global growth during the period.

In this backdrop, a change in corporate strategy by Samsung has clearly come as a smart move to recapture its falling stature. It marks an intention to stay as the leader that it has been in the smart phone market.