Samsung Electronics vice president Lee Jae-yong brings a major innovation in the company’s personnel management system for the first time in five years. The key is to get rid of seniority rules, such as the number of years it takes to move from one position to another. That means there will be executives in their 30s and CEOs in their 40s at Samsung, just like startups.
The South Korean tech giant unveiled its new personnel management system on Monday, saying it is innovating in personnel management system and organizational culture to usher in a new era and new changes.
Samsung will abolish a rule requiring employees a minimum number of years before being promoted from one rank to another. For example, an employee at the CL4 level had to work for five to seven years to be promoted to an executive. But now they can be promoted to a managerial position regardless of their age or the minimum number of years required if they improve performance. Samsung has also integrated the positions of senior vice president and executive vice president, reducing the steps required to be promoted to CEO. The company said it was a âSamsung fast laneâ for training young executives.
For employees, Samsung is adopting a free agent system, which allows employees to move to another department after working in the same department for more than five years. In addition, an employee exchange system, where a competent head office employee has the opportunity to work in an office abroad, and vice versa, is being introduced. For employee evaluation, â360 degree evaluationâ will replace the existing top-down evaluation and an absolute evaluation system will replace the current evaluation on a curve. It is a Silicon Valley style rating system also adopted by Google, Netflix and Microsoft.
Industry watchers say Vice President Lee’s new personnel management system is a vision to transform the company into the ‘new Samsung’ that creates something completely new rather than stopping to be one. manufacturing giant.