In this document the author will analyse the payment setting rates of Samsung. Samsung is a Korea based multinational company. It is dealing in electronics products and technology. The Korean company is following ability and performance based payment rates. The author will also discuss the advantages and disadvantages of current payment rates system. In the second half of the document the author will discuss the external challenges Samsung is facing in the market and provide recommendations to motivate the employees. The data used in the document will be secondary i.e. journal articles, previous research, presentations, news, webpages etc.
Samsung approach toward setting pays rates
Samsung has moved from seniority based payment…show more content… Samsung spent a long time in the market. The customers are expecting some quality innovation from Samsung in India and China market. In China the company has dropped from its market leader position the new market leader is Xiaomi. Xiaomi is a domestic mobile device maker who is manufacturing quality smartphones. Similarly in Indian market the company has lost its top position as mobile maker. Again Samsung is facing tough competition from Indian domestic phone maker Micromax. Micromax is leading manufacturer in Indian market. Samsung has already lost 15% in mobile device shipments in Chinese market (Reisinger 2014). The company’s product life cycle is in the saturation phase and it is going towards decline. Due to this company has also lost its profit share in the global market. The company has decided to freeze the wages of Korean employees on account of profit fall in the mobile market (J. Lee 2015). Slowly-2 company external challenges are impacting the internal policies and decision making of the company. China and India are two big markets. The customers are obsessed with Samsung smartphones and they are looking for some new options. Samsung is not able to fulfil the customer’s expectation completely. Daily new entrants are coming in the market and they are impacting the business of