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Samsung Chairman Lee Kun-hee is shaking hands with employees at the 2011 Samsung Electronics Semiconductor Line 16 operating ceremony. Hankyung DB
In the early 2000s, a meeting of affiliate CEOs was held in Yongin, Gyeonggi province, chaired by President Lee Kun-hee, announcing “a vision in 5 and 10 years.” Immediately after presenting the CEOs for three hours, President Lee came up with a strange story. “I don’t know what will happen tomorrow right now, but how do I know what will happen 5 or 10 years later?” It was the first word. For the embarrassing CEOs, what President Lee emphasized was “talent.” President Lee emphasized, “If you choose good people, they will make the future great in 5 or 10 years,” he said. “Vision is also important, but you shouldn’t neglect the job of choosing good people.”
President Lee was unusually greedy for people. President Lee’s belief that the key to a world-class global company ultimately rests with people. The first open recruitment of new employees in the country, the elimination of discrimination against women and women with academic backgrounds and the regional system of experts are the traces of the human resource management that Lee left while leading Samsung for 28 years. President Lee’s talent management helped Samsung become a leading global company. In 1987, when President Lee took office, the number of employees increased from 100,000 to 520,000 (as of 2018), more than five times, and sales increased 40 times from 9 trillion won to 387 trillion won.
Promoting global talents 10 years earlier
Samsung Chairman Lee Kun-hee visits a Vietnam business site in 2012 and takes commemorative photos with local employees. Hankyung DB
Harvard Business Review cited the “ regional experts ” system as one factor in which Samsung achieved globalization in 2011. Launched in 1990, the system dispatches domestic employees around the world, giving them the opportunity to learn the language and culture. premises for one or two years. More than 5,000 people have experimented with this system, with an average investment of more than 100 million won per person. Only the expenses spent so far exceed 1 trillion won.
The wealth of information accumulated by local experts helped Samsung enter advanced markets, as well as emerging markets such as Africa and South America. An employee who was posted to Thailand in the 1990s attended a local business school and befriended high-ranking people, contributing to Samsung’s significant increase in market share in Thailand in the mid-1990s. 2000. Japan’s Sankei Shimbun analyzed that local experts are the foundation of Samsung’s global local marketing and the source of rapid growth.
The regional expert system came out of President Lee’s mind. It was based on the belief that to become a global company, employees must also have a global mind. At the time, Samsung’s number one global product was also unchanged, so President Lee’s link with local experts was significant. The program did not stop even when the financial crisis of 1997 and the global financial crisis of 2008 broke out.
“A genie feeds tens of thousands of people”
When meeting with the group president, there was a question that President Lee would not forget. “How many top talents have you collected?” One of the biggest tasks of the branch president was to get talent. It was based on the belief that “the 21st century will be an age in which an extraordinary genius will feed tens of thousands of people.” President Lee said, “If you have 10 S-class talents, you are better than a company. 100 S-class talents is better than 10 companies. “
President Lee recognized the importance of key talents only after hiring Korean engineers from Intel and IBM and succeeding in the semiconductor business. From then on, President Lee paid great attention to recruiting and retaining key talent. Since 2002, each affiliate has received monthly reports on the performance of the protection of key personnel.
Samsung Electronics Vice President Lee Jae-yong also places great emphasis on having enough talent to hire him directly. Sebastian Seung (Seung Hyun-jun), a professor at Princeton University who became the director (president) of Samsung Research, a research organization integrated into Samsung Electronics this year, is considered a representative example. Director Seung made a nest in Samsung through a relationship with Vice President Lee.
‘Reward’ where there are achievements
Salary King Salary King leaves Samsung Electronics every year. There are many CEOs who earn more than 10 billion won in annual salary. The quarterly record is held by former Samsung Electronics VP Shin Jong-gyun, who led the success of the Galaxy smartphone. He received 9.6 billion won in the first quarter of 2014 alone. That means he received a salary of 100 million won a day. In terms of annual salary, the track record of former Samsung Institute of Advanced Technology president Kwon Oh-hyun stands out. It received 24.3 billion won in 2017, when the semiconductor industry hit a super cycle.
Shin Shin-young is also the background for Samsung CEOs receiving high salaries. Introducing Shin Kyung-young, President Lee emphasized, “I will make Samsung a payroll paradise.” In the economic world, he explains that one of the secrets of Samsung’s success is performance, which guarantees the best salary for key talents. It is explained that internal competition among Samsung executives has intensified thanks to the strong compensation, and as a result, Samsung’s productivity has increased.
President Lee also made a breakthrough in the national business contracting system. In January 1957, it was the first Korean company to introduce an open contracting system, and in 1995 the era of open contracting began. It broke the practice of hiring people based on academic backgrounds and removed the educational background limit and began hiring uniquely qualified employees.
At the time, President Lee said, “Regardless of college degree, we must provide the same opportunity to join the company and ensure that there is no discrimination in promotion or promotion after entering the company. Samsung’s entry standard is not education, but ability. “
Special care was also taken to eliminate discrimination against women. In 1995, the uniforms of female employees were removed and nurseries were built for married women. It was from the philosophy that people who had to work in the midst of unjust discrimination were frustrated by national and social losses.
Reporter Song Hyung-seok / Hwang Jung-soo / Lee Soo-bin [email protected]
