Samsung Electronics to implement horizontal work culture

Samsung Electronics Co. on Monday unveiled a new human resource management system to create a more horizontal work culture by doing away with the conventional years of service before promotion and work title address.

Under the overhaul, promotion will be "fast-tracked" and executive-level simplified to timely appoint talents regardless of the age and years of service, the company said in a statement. The revamp outline was finalized upon online debate with employees and agreement with the union, it added.

Samsung Electronics currently has four ranks in sub-management level, and employees usually work eight to 10 years to move up to the next level. The revised system will abolish minimum working years for promotion, which would allow younger generation in their 30s to join executive levels upon meaningful achievement. "Senior" track will be adopted to allow senior employees to work beyond their retirement.

Absolute evaluation will be expanded in annual performance review.

In another major change, work titles will be unified to “pro” excepting executives and only individuals and their boss will be notified of any change in the status quo. The company won’t go public with employee status including when they first joined the company.

The bi-annual evaluation will be reduced to once a year and include input by colleagues.

The changes will be implemented from 2022.

Upon arriving from his recent first overseas trip to North America since August parole, Samsung Electronics Vice Chairman Jay Y. Lee said his heart was “heavy” upon witnessing the “harsh reality”, which may have prompted the company to hasten the work culture change.

In the U.S. Lee met with executives from Moderna, Verizon, and Google and discussed future growth in bio, 5G, and artificial intelligence sectors.

The company will announce executive-level reshuffle this week.

It is uncertain if the management level under three key chief executives Kim Ki-nam, vice chairman and chief executive of device solution, Kim Hyun-suk, chief executive of consumer electronics, and Koh Dong-jin, chief executive of IT and mobile will be maintained.

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