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Samsung Electronics to Implement New Organizational Structure in March

By February 10, 2017 at 6:14 am
Samsung (Photo : Photo: Getty Images)

Samsung Electronics is on its way to overhauling its rigid bureaucratic system by implementing a simplified job ranking system beginning in March, according to company officials Friday.

In its current system, the number of jobs under the executive level is seven. Starting March 1, the date that the new system is set to go in effect, that number will be cut down to four.

The move is part of the parent Samsung Group's personnel system reorganization plan released in June last year. Currently, there are Level 1 to 3 employees, then followed by an assistant department manager, a department manager, a deputy manager and then a division manager

The four career levels under the new system will no longer be based on seniority but by job proficiency. This also applies to research positions.

Another change is making employees refer to each other using the honorific ending "nim", which means Mr. or Ms. Employees will also have the option to use respectful and horizontal forms of address like "pro" or "soenbae" and "hubae", each referring to senior and junior colleagues, respectively.

Those in leadership positions like the team leader, group leader, section leader and executives are expected to be addressed using their title, the company said.

A Samsung official said that the new personnel system aims to develop a corporate culture that rewards performance rather than seniority by overhauling the company's top-down, hierarchical structure.

Samsung subsidiaries are highly likely to follow the lead of the parent company in making significant changes to its organizational structure. 

Implementation of the new system, however, has encountered some delays when the company got entangled in a massive corruption and influence-peddling scandal that involved South Korea's President Park Geun-hye.

The new plan aims to simplify the job ranking system and develop a "start-up" organizational culture more conducive to open communication and quick handling of duties.

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