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Samsung Electronics and the Ford Motor Company

HomeEssaysCompare and Contrast EssaySamsung Electronics and the Ford Motor Company
05.10.2020
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For every company, organizational culture and structure are the most critical elements of success. The main point is that efficient organizational structure and culture can provide highly effective and positive results. Moreover, due to these elements, the company is able to effectively apply its own mission and vision. Organizational structure motivates and organizes people, while organizational culture leads employees in the needed direction. Thus, these elements can have similarities and differences, which are dependent on the company`s mission and vision because, with their formation, the company realizes in what way it has to be organized. These issues were analyzed using the example of Samsung Electronics and the Ford Motor Company. Therefore, the paper is focused on the organizational culture and structure of companies, their analysis, and relation to each other.

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Similarities and Differences in Organizational Cultures of Ford Motor Company and Samsung Electronics

Ford became known as the largest company that was controlled by the family and that managed to reach such great success and organizational culture. Ford is considered a success symbol in the motor industry across the world (“Supporting One Ford”). The company`s organizational culture impacts the firm`s drive for the high performance to reach its own industry leadership vision. The company`s organizational culture defines the traditions, customs, and values that affect the group and individual behavior. Ford uses its own organizational culture to establish a high-performance workplace. It is critical for the organization to gain effective support and high productivity of the process and technology innovation. In fact, these needs are provided through an organizational culture that helps to understand Ford`s mission and vision statements with a strong emphasis on teamwork and excellence. At the same time, Samsung is a leading company that is focused on making the world better trough diverse business programs aimed at advanced technologies. Samsung manages to provide new imaginative directions in the world through innovative and reliable services and products, responsible approach, talented people, and effective organizational culture. Therefore, both companies have strong organizational cultures that have differences as well as similarities.

In general, Ford’s organizational culture is focused on the results delivery, collaboration, role models Ford values, and technical and functional excellence. These core principles were implemented in the One Ford plan in 2008 (“Supporting One Ford”). According to this plan, the main goal of the firm is to unify its global organizations to gain synergy and consistency. Therefore, one of the principles is technical and functional excellence which means that the company puts emphasis on excellence through organizational culture as a way of supporting innovation. Moreover, it recognizes the importance of excellence as a method to help performance ascend to a higher level (“Supporting One Ford”). Collaboration and teamwork are a critical issue in Ford that is defined as the most critical priority in organizational culture. Apparently, such characteristic of organizational culture entails employees’ participation. Therefore, organizational culture in Ford Motor Company facilitates teamwork that is mixed with individual skills and knowledge development. Also, it is critical to stress that benefits and compensation programs are a highly crucial part of the organizations’ employment relationships that include being a part of the leading company, career, and growth development opportunities, rewarding, and challenging work in common with great products and diverse workforce. Therefore, organizational culture in Ford, as a global company, includes benefits and compensation framework as a crucial element. The next crucial principle is the results delivery (“Supporting One Ford”). The characteristics of Ford organizational culture are aimed at the effectiveness of business goals attainment and customer satisfaction. Moreover, the organization is focused on accountability and responsibility. Hence, the Ford organization by delivering results maximizes financial performance through organizational culture. Furthermore, such an element of organizational culture motivates workers to reach higher career development levels to deliver more to the customers and other stakeholders. Another critical issue in organizational culture is the role model Ford values. The main point is that the employees in Ford Motor Company represent business and its values. Thus, such an element of the company`s organizational culture ensures positive behavior and integrity among employees. Also, the organizational culture of the firm is focused on sustainability, safety, and quality in all business activities (“Supporting One Ford”).

At the same time, Samsung Electronics also has strong and similar values that helped to form an effective organizational culture. One of them is people, and it means that the company aims to provide people with wealth opportunities to reach their full potential. Another value is excellence, and it proves that the company craves the development of the best services and products on the market. Another value is change, which is constant and for the company`s survival, the innovation is highly crucial so that the company needs efficiently new market demands to achieve long-term success. The next value is integrity, and it means that operating in an ethical way is a basic business element, meaning that the company’s actions are led by moral principles that ensure respect and fairness for the customers and the employees. The last value is co-prosperity, which shows that business is not able to be successful without the opportunity and prosperity creation for other people (“Values & Philosophy”). Therefore, it is possible to see that both companies are strongly focused on personal development, excellence, and integrity. However, Ford Motor Company focuses more on the acquisition of needed goals through teamwork, while Samsung is reliant on the attainment of crucial results through social cooperation with other people.

It is worth noting that both companies put great emphasis on personal development through support and team development. Ford has training programs that are aimed at supporting organizational culture characteristics. The employees are encouraged to improve, learn, and contribute ideas toward organizational development (“Supporting One Ford”). A similar position is provided by Samsung. In fact, Samsung managed to build creative organizational culture, while focusing on investment in the core values’ strengthening among employees that leads it to reach high-performance level. Also, the company implemented the Creative Development Research Institute System that gives employees an opportunity to gain creative, new ideas that take full advantage of their professional passions and talents in a way that encourages risks involvement (“Creative Organizational Culture” 23). Thereafter, such initiative makes employees more entrepreneurial in forming new ideas that can become new business programs. When the employees’ plan is accepted, they can focus on the project as the main task for one year and be free from their usual responsibilities (“Creative Organizational Culture” 23).

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Organizational culture in Ford includes the process of talented workforce recruitment. Hence, to attract potential talented employees, the company implemented in 2012 a new recruiting campaign with a great social media element. This campaign encourages potential employees to direct their talents to Ford and contribute to serving customers through innovative solutions (“Supporting One Ford”). The campaign`s goal is to renew the innovative image that has to show that for the company, employees are highly crucial because they help to create first-class vehicles Also, the number of college interns that can be involved in the company`s operations was increased by 20% in 2014 (“Supporting One Ford”). The internship programs are simply another way to attract talented people. Evidently, approximately the same attitude can be seen in Samsung. One of the implemented programs is a Future Creator Challenge that is a talent-based recruiting process developed to hire totally new employees in fields where expertise and creativity are the most critical matters. This process is aimed at hiring talented people in the company (“Creative Organizational Culture” 23). However, this process is more aggressive than in Ford.

Ford is a company that is grounded on diversity and inclusion values in the workplace. In fact, such attitude is highly effective because it helps to bring some creative ideas, experiences, perspectives and life responsibilities. Moreover, such vision helps to recognize and respect the person, maximize benefits derived from the diverse workforce, maximize employees’ personal and professional growth and value differences in the employees’ skills, knowledge, experience and background (“Supporting One Ford”). The company provides education and community support to promote inclusion and diversity. Hence, Ford fund invested more than one million in the scholarships in such organizations as the Society of Automotive Engineers, Hispanic College Fund, National Future Farmers of America Foundation and United Negro College Fund (“Supporting One Ford”). At the same time, this fund is aimed at providing environmental efforts, volunteerism, hunger relief activities and others. Apparently, such attitude is similar to Samsung because it managed to create a work environment where employees can show a high-performance level. Samsung Electronics is a global company that is focused on creating global markets diversity. All employees, despite their origin country, race and gender, are equal. Moreover, the female employee’s number has increased in the past years, and in 2011, their percentage increased by 4% since 2002 (“Creative Organizational Culture” 24). Samsung offers numerous programs for women to prevent their career interruption due to childcare obligations. Additionally, to build the pleasant work environment for full employees’ commitment to both home and work, the parental leave can be organized in a flexible way to support female employees with children under twelve. The company is also working on the in-house childcare facilities increase. Furthermore, Samsung managed to develop a childcare center that is able to accommodate around 300 children (“Creative Organizational Culture” 24). A great attention was paid to the provision of a flexible workplace policy where employees with pre-school children can work from home or at the nearest smart work centers that were built in Bundang and Seoul in 2011. In fact, these centers are used by employees that need such facilities as nursing rooms, meetings rooms, teleconferencing system, and other critical facilities (Samsung Electronics 24). Also, the company has strengthened education and networking programs. To increase the female executive’s percentage by more than 10% within the next ten years, the company raises training opportunities for women (“Creative Organizational Culture” 24).

Samsung Electronics organizational culture involves hiring disabled workers, and the company is ready to provide work opportunities and help to build their careers. The organization provided a program for disabled graduates’ employment to help people to live independently in the professional environment (“Creative Organizational Culture” 25). Also, there was provided a two-month internship program named Stepping Stone that is directed at disabled college students. People with excellent results are welcomed to take full-time positions during open recruitment. Moreover, the company installed for such people ground bus bars, bathrooms, elevators, and other critical facilities. In addition, some collective training courses are provided to break interpersonal barriers with staff with severe illness. To build a good organizational culture, the company improves communication and understanding methods with disabled employees (Samsung Electronics 25). Hence, it is possible to see that the inclusion policy is much stronger and more well-organized in Samsung than in Ford.

The intensified global competition, dynamic environment presents challenges for the employees’ expectations and needs that require the implementation of many strategic opportunities. Hence, Ford provides inclusive work-life programs such as flexible and reduced schedules, telecommunicating options, job sharing, and other programs aimed at providing high employee engagement and satisfaction (“Supporting One Ford”). However, in comparison with Samsung programs in this area, such strategies seem not enough. Samsung actively promotes flexible organizational culture that has to help employees reach a healthy work-life balance in a challenging, creative, and dynamic work environment. Therefore, the company managed not only to contribute to balancing life and work but also to improve productivity by providing a flexible work schedule to maximize work performance and reduce the overtime (“Creative Organizational Culture” 22). Such attitude contributes to the improvement of the working atmosphere that allows employees to focus on their jobs in a creative and autonomous atmosphere.

Therefore, among similarities between organizational cultures, one can name diversity and equality principles, strong education programs, and great work and internship opportunities. However, there are some differences among flexibility, inclusion and teamwork areas. Overall, the strongest element of organizational culture in Ford Motor Company is its support through the teamwork. Before the One Ford plan, the company had various product lines and cultures in different regions. However, nowadays organizational culture of the company provides improved business abilities that are grounded on synergy through unity. At the same time, there is some weak issue, and it is the lack of flexibility. In fact, this is a problem because flexibility in organizational culture can promote efficient problem-solving processes and resilience (“Supporting One Ford”). At the same time, Samsung has strong employee-oriented programs as an example of cooperation value that has to help other people. Such programs include a strong and well-organized flexibility and equality policy.

Ethical and Positive Elements in Organizational Cultures of Ford Motor Company and Samsung Electronics

It is critical to notice that the most positive element is that both organizational cultures are developed on the basis of social issues. The main point is that in both companies, organizational culture is employee- and community-orientated and is grounded on diversity and equality principles. Evidently, such attitude is highly critical for effective organizational culture development. In both companies, close attention is paid to educational and internship programs that are aimed at helping their employees to provide a higher level of performance and involve new people in the companies. In Ford, strong emphasis is put on the teamwork in the workplace, and this is a highly positive element because it helps to organize effective work. At the same time, in Samsung, one of the most positive elements is a provided balance between work and life. In fact, such attitude is highly crucial because in modern challenging conditions, the achievement of this balance became a great problem for many companies. However, in Samsung, it works as effective as possible. Both organizational cultures place strong emphasis on inclusion, diversity and equality that from the ethical perspective are highly crucial elements of each organizational culture. Hence, Ford promotes inclusion and diversity through the help of education and community, while Samsung promotes equality through the programs that are aimed at involving all people in the work, regardless of their gender, race, origin and physical abilities. Therefore, it is possible to state that in both cases, organizational cultures have many ethical and positive elements that help employees feel comfortable and safe.

Similarities and Differences in Aspects of Organizational Structures of Ford Motor Company and Samsung Electronics

Organizational structure of Ford is grounded on business needs in different market conditions across the world. Organizational structure defines organizational components configuration and their interaction system. In the case of this company, organizational structure is related to the global automotive industry conditions. Therefore, organizational structure of this company is premised on the need to control operation taking into account the regional market conditions. The main features of this organizational structure are global functional groups, regional geographic division and corporate hierarchy. Ford includes a traditional corporate hierarchy in organizational structure. The top management comprises the executive chairman and CEO. The next stage is executive vice presidents, group vice presidents and senior vice presidents that lead middle managers (“Business Strategy”). Apparently, this is a bright example of top-down control. The next structural element is regional geographic divisions across the world. However, in the case of Ford, organizational structure is parted only on several regional geographic divisions that handle its markets across the world. The potential effect of such feature of organizational structure is the relative ease of integration of business strategies. Hence, main Ford`s regional divisions are located in Asia Pacific, Africa, Middle East, Europe, and America. Each division is headed by the executive vice president (“Business Strategy”). The last structural element is functional groups that represent some business function, and each of these groups is headed by the vice president. In fact, such groups include Accounting, Finance, Legal, Communications, Government and Community Relations, Global Purchasing, Global Product Development, Human Resources and Corporate Services, Quality and New Model Launch, Global Marketing, Sales and Service, and Global Manufacturing and Labor Affairs departments (“Business Strategy”). Ford Motor Company uses a divisional structure because every organizational function is united in divisions. However, the company is more similar to the functional organization. It is grounded in different departments that are developed on the basis of the organization`s main function. Each department is headed by senior managers and can be divided into some other sections.

Samsung is organized in a different way. On the top of its organizational structure, there is the CEO and Digital Media and Communications division, and Device Solution division. The first division includes IT and Mobile Communication and Consumer Electronic departments, while the second division includes LED Business, SLSI, and Memory divisions. The Consumer Electronics department includes Digital Appliances and Visual Display divisions, while IT and Mobile Communications includes Media Solution Center and Digital Imaging, Network, IT Solutions, and Mobile Communications divisions (2015 Samsung Electronics Sustainability Report 7). Another critical division is Corporate Management. The company has also geographic divisions across the world, which are headed by higher managers. The organization is tall, and it meets some typical problems. The process of decision-making is quite slow, and there is a high bureaucracy level. Samsung Electronics is a bright example of division structure. In fact, such structure is used by the company because it allows it to handle the product division, produce various products for different market segments, have a large organization to reach the minimal efficient level that is needed to duplicate functions in the organization, produce products with short-life cycles and compete on the grounds of product features Such structural type is often used by organizations when they have to work with different product categories because it helps to handle the products complexities due to their diversification. In such structure, different divisions or departments have developed the basis of the manufactured product. Every division has their own manager that is responsible for the department`s work and has full authority over it.

It is possible to notice that both companies organized its top-down style with the CEO at the top of organizational structure. Moreover, both companies have divisions across the world. However, Ford Motor Company is the most functional organization, while Samsung Electronics is more divisional organization.

Factors behind Similarities/Differences in Culture and Structure of Ford Motor Company and Samsung Electronics

The main factors that create some differences and similarities between organizational culture and structure are the companies’ mission and vision. The main point is that when the company develops own mission or vision, it realizes how it has to be organized for the organization to be able to reach it. Therefore, in Ford, the organization`s mission defines actions that must realize organizational goals. At the same time, the company`s vision defines the desired future business condition and situation (“Supporting One Ford”). Therefore, Ford`s vision statement is focused on the idea that people have to collaborate as a global enterprise to provide automotive leadership (“Supporting One Ford”). Hence, the main points of Ford`s vision are lean business, emphasis on stakeholders and global leadership. At the same time, Ford`s mission statement is focused on the single goal, plan, and team. Moreover, such statement is known as One Ford mission that is the part of One Ford plan. It means that people must work as a team, while the company has to handle current demands and achieve growth. Samsung is also led by strong values, philosophy, and high ethical standards. The organization`s vision is dedicated to the efficient processes and innovative technology development that help to create new markets and continue to make Samsung a digital leader (“Values & Philosophy”). The company`s philosophy is aimed at devoting technology and people`s talent to superior services and products’ creation that contribute to a better global society. Samsung vision is aimed at the world inspiration and future creation through creative solutions, innovative products, and new technologies. The main approaches to this vision are talent, partnership, and creativity (“Values & Philosophy”). Therefore, these issues lead to the formation of differences and similarities in organizational cultures and structures. For instance, Ford vision is focused on teamwork as a way of achieving success, and taking into consideration these ideas, the companies’ culture and structure were formed. Organizational culture provides programs for the team common work and promotes the single goal that has to be achieved by employee collaboration. The structure is functional, and it is perfect for applying this vision because the departments are not strongly separated and work with the single goal. The same issues impacted on culture and structure formation in Samsung. This company is focused on new and creative products’ development that has to lead to global diversity. Hence, the company is focused on organizational culture that aims to promote equality, diversity, and flexibility. It is very critical for the company with such a high level of division. Organizational structure is also divisional due to the range of innovative products through which the company tries to make the world better.

Another factor that can impact differences and similarities of organizational culture and structure can be size (Tran and Tian 231). In both cases, great size of companies led to the understanding that more intense organizational structure framework is required. A great number of employees demand strong managerial support and leadership. In the case of culture, both large companies are focused on meeting all employees’ needs, regardless of their gender, race, origin and others. Another critical issue is the business environment, and it means that dynamic environment with changing customers’ desires is critical to consider in organizational culture and structure formation (Tran and Tian 229). The structure has to be as effective as possible to create conditions for the high-performance level, while culture has to be supportive with regard to employees and customers. Importantly, such an attitude can be seen in both companies.

The fit between Structure and Culture in Ford Motor Company and Samsung Electronics

It is critical to understand that organizational structure has a strong effect on organizational culture that leads employees during their activities’ performance. In response, organizational culture improves the way organizational structure motivates and coordinates organizational resources that help the company to reach its own goals (Janićijević 40). Therefore, it is crucial to gain the right fit between organizational culture and structure because it brings benefits to the company. In some stages, an appropriate organizational structure is related to a well-developed organizational culture that enhances the company`s core competence. Moreover, organizational structure determines its authority hierarchy by promoting shared organizational culture values. Apparently, such a mixed result provides increased coordination and motivation ability (Janićijević 41). The values of organizational culture are the best way to enhance organizational customer services, brand, and other organizational resources, while organizational structure promotes motivation, teamwork, and communication. Therefore, organizational and coordination resources enhancement under well-balanced culture and structure will lead to the achievement of goals. The main point is that the right fit between organizational culture and structure helps the company to effectively implement its own strategies.

Therefore, it is possible to see a fit between organizational culture and structure in Ford Motor Company. The organizational structure aims to ease the teamwork to gain the company’s goals. It is a top-down type that means that all elements have to submit to the senior management. The structure is functional, and it means that departments are focused on single product work. Hence, organizational culture, in this case, helps to motivate the employees to work better in these structural conditions. On the other hand, culture is aimed at improving the teamwork issues for better structure functioning. Hence, it is possible to see that organizational culture fits organizational structure due to its support, thereby leading to a positive organization`s results. The same situation can be seen in Samsung Electronics. The main point is that the organizational structure in this company is divisional and demands organizational culture support to work effectively. The organization includes many divisions across the world that are led by senior managers. Such divisions include various people that have to work effectively in these structure conditions; to provide such efficiency, organizational culture implemented many programs that are aimed at helping employees to adapt better and feel comfortable. Disability programs, educational and equality policy, and flexible programs aim to help the employees to perform better in such an organizational structure framework.

Overall, organizational culture and structure are highly crucial elements in the company, which can be seen in Samsung Electronics and Ford Motor Company. These elements have similar as well as different elements that occur due to such factors as the company`s mission, vision, size, and business environment. Moreover, a fit between organizational culture and structure plays a crucial role in the organization because it helps the company reach the needed goals. Therefore, organizational culture and structure in Samsung Electronics and Ford Motor Company are key elements of success.

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Summary

Organizational culture and structure are the most critical elements in every company because, with their help, the organization is able to successfully reach the needed goals. However, both elements can be associated with differences and similarities in different organizations. In fact, these issues were analyzed in Ford Motor Company and Samsung Electronics. Organizational culture in both companies was grounded on the core values. In Ford Motor Company, great emphasis was placed on teamwork, excellence, and results in delivery. At the same time, Samsung Electronics was focused on integrity, people, cooperation, and excellence. Among similar elements, one can name strong educational programs, talent attraction programs, diversity, inclusion, and equality policy. Some differences can be seen in the flexibility programs because, in Samsung, they are more seriously organized. The positive elements in organizational cultures can be their orientation to the employees’ needs, while the ethical element will be equality and inclusion policy that helps to treat all people in the same way. A similar situation is with organizational structure. Specifically, both companies have the top-down structure type in which all divisions are led by senior managers that submit to the CEO at the top of the structure. However, there are some differences in organizational structures. Ford Motor Company is a more functional organization because it is focused on the functional departments’ development that would help to reach its goal through teamwork. At the same time, Samsung Electronics is a divisional organization because it is focused on different products’ development for separate markets. The differences and similarities in organizational culture and structure can be explained by such factors as the company`s vision, mission, business environment, and size. Moreover, a great role in the company`s success plays a fit between organizational culture and structure because it helps the company to gain the needed goals. Such a fit can be seen in Ford Motor Company and Samsung Electronics because one element strongly supports another one. Hence, organizational culture and structure are some of the most crucial elements in the company.

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