samsung group(2)

8/2/2019 Samsung Group(2)

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By

mani sajnani


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SAMSUNG

Innovation is crucial to Samsung's business. As new technologies are being

constantly introduced to the market, speed is essential for remain-ing competitive

in today's digital era, and new markets have to be pioneered

continuously.Through the interplay of creative, imaginative people; a global R&D

network; an organisation that encourages collaboration and cooperation among

business partners all along the supply chain; and a strong commitment to ongoing

investment, Samsung has put R&D at the heart of everything we do. The Samsung

Group (Korean: ) is the world's largest conglomerate by revenue,[3]

headquarters in Samsung Town, Seoul, South Korea. It is South Korea's largest

chaebol and composed of numerous international affiliated businesses, most of

them united under the Samsung brand, including Samsung Electronics, the

world's largest electronics company,[4][5][6]Samsung Heavy Industries, the world's

second largest shipbuilder[7] and Samsung C&T, a major global construction

company. These three multinationals form the core of Samsung Group and reflect

its name - the meaning of the Korean word Samsung is "tristar" or "three stars".

Samsung has been the world's most popular consumer electronics brand since

2005 and is the best known South Korean brand in the world. [8]Samsung Group

accounts for more than 20% of South Korea's total exports[9] and is the leader in

many domestic industries, such as the financial, chemical, retail and entertainment

industries. The company's strong influence in South Korea is visible throughout

the nation, which has been referred to as the "Republic of Samsung".

Samsung Group has reason to sing. The charbroil (family-controlled

conglomerate) has surpassed its former archrival, the erstwhile Hyundai Group,

to become the #1 business group in South Korea. Samsung's flagship unit is

Samsung Electronics, which is the world's top maker of DRAMs and other

memory chips, as well as a global heavyweight in all sorts of electronic gear,

including LCD panels, DVD players, and wireless phones. Other affiliated
http://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#ag_people%23ag_peoplehttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#rdnetwork%23rdnetworkhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#rdnetwork%23rdnetworkhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#organiz%23organizhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#invest%23investhttp://en.wikipedia.org/wiki/Korean_languagehttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Samsung_Group#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Samsung_Townhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Chaebolhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-koreatimes-3%23cite_note-koreatimes-3http://en.wikipedia.org/wiki/Samsung_Group#cite_note-koreatimes2-4%23cite_note-koreatimes2-4http://en.wikipedia.org/wiki/Samsung_Group#cite_note-economist-5%23cite_note-economist-5http://en.wikipedia.org/wiki/Samsung_Heavy_Industrieshttp://en.wikipedia.org/wiki/Shipbuilderhttp://en.wikipedia.org/wiki/Shipbuilderhttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-6%23cite_note-6http://en.wikipedia.org/wiki/Samsung_Group#cite_note-6%23cite_note-6http://en.wikipedia.org/wiki/Samsung_C%26Thttp://en.wikipedia.org/wiki/Korean_languagehttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-7%23cite_note-7http://en.wikipedia.org/wiki/Samsung_Group#cite_note-7%23cite_note-7http://en.wikipedia.org/wiki/Exportshttp://en.wikipedia.org/wiki/Exportshttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-exports-8%23cite_note-exports-8http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Chemical_substancehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Entertainmenthttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#ag_people%23ag_peoplehttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#rdnetwork%23rdnetworkhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#rdnetwork%23rdnetworkhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#organiz%23organizhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#invest%23investhttp://en.wikipedia.org/wiki/Korean_languagehttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Samsung_Group#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Samsung_Townhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Chaebolhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-koreatimes-3%23cite_note-koreatimes-3http://en.wikipedia.org/wiki/Samsung_Group#cite_note-koreatimes2-4%23cite_note-koreatimes2-4http://en.wikipedia.org/wiki/Samsung_Group#cite_note-economist-5%23cite_note-economist-5http://en.wikipedia.org/wiki/Samsung_Heavy_Industrieshttp://en.wikipedia.org/wiki/Shipbuilderhttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-6%23cite_note-6http://en.wikipedia.org/wiki/Samsung_C%26Thttp://en.wikipedia.org/wiki/Korean_languagehttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-7%23cite_note-7http://en.wikipedia.org/wiki/Exportshttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-exports-8%23cite_note-exports-8http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Chemical_substancehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Entertainment


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companies include credit-card unit Samsung Card, Samsung Life Insurance,

Samsung SDS (IT services), Samsung Securities, and trading arm Samsung C&T

Corporation.

Welcome to Samsung for 70 years, Samsung has been dedicated to making a

matter through diverse business that today span advanced technology,

semiconductors, skyscrapers and plant construction, petrochemicals, fashion,

medicine ,finance, hotels and more. Our flagship company, Samsung company

leads the global market in high tech electronics manufacturing and digital media.

Through innovative, reliable products and services talented people, a responsible

approach to business and global citizenship and collaboration with our partners

and customers, Samsung is taking the world in imaginative new directions.

Samsung India is the hub for Samsung's South West Asia Regional operations.

The South West Asia Headquarters, under the leadership of Mr. J S Shin,

President & CEO, looks after the Samsung business in Nepal, Sri Lanka,

Bangladesh, Maldives and Bhutan besides India. Samsung India which

commenced its operations in India in December 1995 enjoys a sales turnover of

over US$ 1Bn in just a decade of operations in the country.

Headquartered in New Delhi, Samsung India has widespread network of sales

offices all over the country . The Samsung manufacturing complex housing

manufacturing facilities for Color Televisions, Mobile phones, Refrigerators and

Washing Machines is located at Noida, near Delhi. Samsung 'Made in India'

products like Color Televisions, Mobile phones and Refrigerators are being

exported to Middle East, CIS and SAARC countries from its Noida manufacturing

complex. In November 2007, Samsung commenced the manufacture of Color

televisions and LCD televisions at its stateof-the-art manufacturing facility at

Sriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic

front loading washing machines at its Sriperumbudur facility


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Background

Samsung is the world's leading consumer electronics brand and one of the top

twenty global brands.

View of the Samsung logo inside the Time Warner Center in New York City.

Currently helmed by Lee Soo-bin, CEO ofSamsung Life Insurance, it has been

run by generations of one of the world's wealthiest families, formerly by chairman

Lee Kun-Hee, the third son of the founder, Lee Byung-Chull. Samsung Group also

owns the Sungkyunkwan University, a major private university in South Korea,

with many of its graduates being employed by Samsung Group affiliates.

Many major South Korean corporations such as CJ Corporation, Hansol Group,

Shinsegae Group and Joong-Ang Ilbo daily newspaper were previously part of the

Samsung Group. Though they are still controlled by ex-Chairman Lee Kun-hee's

relatives, they are no longer officially Samsung affiliates. Some leading companies

in South Korea, notably MP3 player manufacturer iriver and search engine portal

Naver, were established by ex-Samsung employees. A large number of South

Korean firms, particularly those in the electronics industry, are dependent on

Samsung for the supply of vital components or raw materials such as

semiconductor chips or LCD panels. This has led to continued allegations ofprice

fixing and monopolistic practices.

Samsung Group accounts for more than 20% of South Korea's total exports [9] and

in many domestic industries, Samsung Group is the sole monopoly dominating a

single market, its revenue as large as some countries' total GDP. In 2006, Samsung

Group would have been the 34th largest economy in the world if ranked, larger

than that ofArgentina.[11] The company owns or has taken over so many mid to

small sized businesses that it is often called a 'colonial empire' or 'hungry

dinosaur'.

The company has a powerful influence on the country's economic development,

politics, media and culture, being a major driving force behind the Miracle on the

Han River; many businesses today use its international success as a role model.
http://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Time_Warner_Centerhttp://en.wikipedia.org/wiki/New_York_Cityhttp://en.wikipedia.org/wiki/Lee_Soo-binhttp://en.wikipedia.org/wiki/Samsung_Life_Insurancehttp://en.wikipedia.org/wiki/Lee_Kun-Heehttp://en.wikipedia.org/wiki/Lee_Byung-chullhttp://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/CJ_Corporationhttp://en.wikipedia.org/wiki/Hansolhttp://en.wikipedia.org/wiki/Shinsegaehttp://en.wikipedia.org/wiki/Joong-Ang_Ilbohttp://en.wikipedia.org/wiki/MP3_playerhttp://en.wikipedia.org/wiki/Iriverhttp://en.wikipedia.org/wiki/Search_enginehttp://en.wikipedia.org/wiki/Naverhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Price_fixinghttp://en.wikipedia.org/wiki/Price_fixinghttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-exports-8%23cite_note-exports-8http://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-10%23cite_note-10http://en.wikipedia.org/wiki/Miracle_on_the_Han_Riverhttp://en.wikipedia.org/wiki/Miracle_on_the_Han_Riverhttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Time_Warner_Centerhttp://en.wikipedia.org/wiki/New_York_Cityhttp://en.wikipedia.org/wiki/Lee_Soo-binhttp://en.wikipedia.org/wiki/Samsung_Life_Insurancehttp://en.wikipedia.org/wiki/Lee_Kun-Heehttp://en.wikipedia.org/wiki/Lee_Byung-chullhttp://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/CJ_Corporationhttp://en.wikipedia.org/wiki/Hansolhttp://en.wikipedia.org/wiki/Shinsegaehttp://en.wikipedia.org/wiki/Joong-Ang_Ilbohttp://en.wikipedia.org/wiki/MP3_playerhttp://en.wikipedia.org/wiki/Iriverhttp://en.wikipedia.org/wiki/Search_enginehttp://en.wikipedia.org/wiki/Naverhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Price_fixinghttp://en.wikipedia.org/wiki/Price_fixinghttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-exports-8%23cite_note-exports-8http://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Samsung_Group#cite_note-10%23cite_note-10http://en.wikipedia.org/wiki/Miracle_on_the_Han_Riverhttp://en.wikipedia.org/wiki/Miracle_on_the_Han_River


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The result is that all of our productsfrom memory chips that help businesses A

digital leader a responsible global citizen a multi faceted families of companies an

ethical business samsung is all of these and more. At samsung group and samsung

electronics our products our people and our approach to business are held to only

the highest standards so that we can more effectively contribute to the better

world.

The Samsung Philosophy

At Samsung, we follow a simple business philosophy: to devote our talent and

technology to creating superior products and services that contribute to a better

global society.

Every day, our people bring this philosophy to life. Our leaders search for the

brightest talent from around the world, and give them the resources they need to

be the best at what they dostore vital knowledge to mobile phones that connect

people across continents have the power to enrich lives. And thats what making

a better global society is all about.

Our Values

We believe that living by strong values is the key to good business. At Samsung, arigorouscode of conduct and these core values are at the heart of every decision

we make.
http://www.samsung.com/in/aboutsamsung/corporateprofile/download/sec_global_codeofconduct.pdfhttp://www.samsung.com/in/aboutsamsung/corporateprofile/download/sec_global_codeofconduct.pdfhttp://www.samsung.com/in/aboutsamsung/corporateprofile/download/sec_global_codeofconduct.pdf


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People

Quite simply, a company is its people. At Samsung, were dedicated to giving our

people a wealth of opportunities to reach their full potential.

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence

and an unfaltering commitment to develop the best products and services on the

market

Change

In todays fast-paced global economy, change is constant and innovation is critical

to a companys survival. As we have done for 70 years, we set our sights on the

future, anticipating market needs and demands so we can steer our company

toward long-term success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is

guided by a moral compass that ensures fairness, respect for all stakeholders and

complete transparency.


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Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for

others. Samsung is dedicated to being a socially and environmentally responsible

corporate citizen in every community where we operate around the globe.

VISION AMD MISSION

Our Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.


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We believe that through technology innovation today, we will find the solutions we

need to address the challenges of tomorrow. From technology comes opportunity

for businesses to grow, for citizens in emerging markets to prosper by tapping

into the digital economy, and for people to invent new possibilities.

Its our aim to develop innovative technologies and efficient processes that create

new markets, enrich peoples lives and continue to make Samsung a trusted

market leader. Growing to be the best

Samsung India aims to be the 'Best Company' in India. 'Best Company' in terms

of the internal workplace environment, our manpower, our products as well as our

efforts to make our customers happy through our products and services. Samsung

aims to grow in India by contributing to the Indian economy and making the lives

of our consumers simpler, easier and richer through our superior quality

products.

"Our aim is to gain technological leadership in the Indian marketplace.

Our Mission

Everything we do at Samsung is guided by our mission: to be the best digital

Company


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Samsung grew into a global corporation by facing challenges directly. In the years

ahead, our dedicated people will continue to embrace many challenges and come

up with creative ideas to develop products and services that lead in their markets.

Their ingenuity will continue to chart Samsungs course as a profitable,

responsible global corporation.

SAMSUNG PROFILE 2008

PERFORMANCE

Wherever you are... in the hustle of the streets or the comfort of the

home...Samsung is part of the fabric of your life. As a global leader we are at the

forefront of change, anticipating today what our customers around the world will

want tomorrow.

2007 Financial Overview (WON/DOLLARS/EUROS)

2007 Financial Overview

AMOUNTS IN BILLIONS WON DOLLARS EUROS

Net Sales* 161,847.4 174.2 127.2

Total Assets 284,165.5 302.9 205.7

Total Liabilities 180,833.2 192.7 130.9

Total Stockholder's Equity 103,332.3 110.1 74.8

Net Income* 12,873.7 13.9 10.1

[Amounts in billions]

Won/U.S. dollar yearly average exchange rate: 929.20/1, Won/Euro: 1,272.72/1

Won/U.S. dollar as of the end of December 31, 2007: 938.20/1, Won/Euro:

1,381.26/1

Financial data includes Samsung affiliates ending their fiscal year at the end of

March 2008,

such as Samsung Life Insurance, Samsung Fire & Marine Insurance,

Samsung Securities, Samsung Investment Trust Management.


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Markets

Samsung is currently the world's No. 3 maker of compact cameras.

Samsung is the world's largest producer ofDRAM, SRAM and Flash

Memory.

Samsung is a leading manufacturer ofcomputers such as the Q1 Ultra

Mobile PC.

Samsung is the world's largest manufacturer ofLCD displays.

Samsung, the worlds number one manufacturer of CRT and TFT

computer monitors.

Samsung is the world's 4th-largest manufacturer ofHard disk drives.

Samsung SDI Co., the world's second- largest maker of Lithium-ion

batteries.

Samsung is the world's second- largest maker of multifunction printers

Device solutions business

Currently, Samsung has sixteen products that have dominated the worlds market

share, including: DRAM, color cathode-ray tube TVs (CPT, CDT), SRAM, TFT-

LCD glass substrates, TFT-LCD, STN-LCD, tuner, CDMA handset, color

television (CTV), monitor, flash memory, LCD Driver IC (LDI), PDP module,

PCB for handheld (mobile phone plates), Flame Retardant ABS, and Dimethyl

Formamide (DMF).
http://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/Shadow_Random_Access_Memoryhttp://en.wikipedia.org/wiki/Flash_Memoryhttp://en.wikipedia.org/wiki/Flash_Memoryhttp://en.wikipedia.org/wiki/Computerhttp://en.wikipedia.org/wiki/Samsung_Q1http://en.wikipedia.org/wiki/Samsung_Q1http://en.wikipedia.org/wiki/LCDhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/Shadow_Random_Access_Memoryhttp://en.wikipedia.org/wiki/Flash_Memoryhttp://en.wikipedia.org/wiki/Flash_Memoryhttp://en.wikipedia.org/wiki/Computerhttp://en.wikipedia.org/wiki/Samsung_Q1http://en.wikipedia.org/wiki/Samsung_Q1http://en.wikipedia.org/wiki/LCDhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DRAM


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Plus in the Television market, Samsung and LG make the only screens for LCD

TFT televisions and then later sell them on to the other companies.

According to Interbrand and BusinessWeek, Samsungs brand value ranked 43rd

(USD 5.2billion) in 2000, 42nd (USD 6.4 billion) in 2001, 34th (USD 8.3 billion) in

2002, 25th (USD 10.8 billion) in 2003, 21st (USD 12.5 billion) in 2004, and 20th

(14.9 billion) in 2005 among top global companies.

In terms of export that directly contributes to the Korean economy, Samsung took

up 18.1% of the all exports with USD 31.2 billion in 2000 and 20.7% with USD

52.7 billion in 2004. In addition, Samsung's tax payments to the Korean

government in 2003 was KRW 6.5 trillion, which is about 6.3% of total taxrevenue.

The market value of Samsung in 1997 reached KRW 7.3 trillion in 1997, which

amounted to 10.3% of the Korean market but this figure increased to KRW 90.8

trillion taking up 22.4% in 2004.

Moreover, the annual net profit of Samsung marked KRW 5.8 trillion in 2001,

KRW 11.7 trillion in 2002, KRW 7.4 trillion in 2003, and KRW 15.7 trillion in

2004, showing forth a steady increase.

In order to enhance the working environment and build a strong and trustworthy

foundation, the semiconductor sector of Samsung Electronics has been conducting

a Great Workplace Program called GWP since 1998. Then, in 2003, GWP has

spread throughout the entire Samsung Group as Samsung Fire and Marine

Insurance, Samsung SDI, Samsung Everland, Samsung Corporation, Cheil

Industries, Samsung Networks, and others started to apply its core principles. In

2006, 9 subsidiary companies of Samsung Electronics, 80 overseas branches, and

130 overseas business sectors have reported that they are actively applying the

GWP.

Dramatic surge in Net Profits starting in the late 90's: $2.2 billion (1999), $7.3

billion (2000), $8.9 billion (2002), $11.8 billion (2004).
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Samsung's Brand Value conducted by Interbrand of the world's top 100 brands:

$6.4 billion (2001), $8.3 billion (2002), $10.8 billion (2003), $12.5 billion (2004),

$14.9 billion (2005).

Market Capitalization (Ratio to the total market value of all Korean listed stocks):

A dramatic increase from 7.3 trillion KRW, 10.3% of the total national listing

value in 1997. At the end of 2004 national listing value in 22.4%.

Samsung's Annual Profits Growth: $4.5 billion (2001), $8.9 billion (2002), $5.6

billion (2003), $11.8 billion (2004) and Debt-to-Equity Ratio Decrease: 104%

(2000), 78% (2001), 68% (2002), 56% (2003), 51% (2004)

Affiliated companies

Samsung is comprised of companies that are setting new standards in a wide range

of businesses, from consumer electronics to petrochemicals, from advertising to

life insurance. They share a commitment to creating innovative, high quality

products that are relied on every day by millions of people and businesses around

the world.

Samsung SDI

Samsung Corning Precision Glass

Samsung SDS

Samsung Networks Samsung Techwin

Samsung Mobile Display

Samsung Digital Imaging

Samsung Heavy Industries

Samsung Total Petrochemicals
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Samsung Petrochemicals

Samsung Fine Chemicals

Samsung Life Insurance

Samsung Fire & Marine Insurance

Samsung Card

Samsung Securities

Samsung Investment Trust Management

Samsung Venture Investment

Samsung C&T Corporation

Samsung Engineering

Cheil Industries

Samsung Everland

The Shilla Hotels & Resorts

Cheil Worldwide

S1 Corporation

Samsung Medical Centre

Samsung Human Resources Development Centre

Samsung Economics Research Institute

Samsung Lions

The Ho-Am Foundation

Samsung Foundation of Culture Samsung Welfare Foundation

Samsung Life Public Welfare Foundation

From stylish phones to the semiconductor, from DRAM to digital tvs, samsung

encompases a variety of businesses that harness speed, creativity and efficiently to

invent, develop and market the products that are defining how we live today. With

more than a quarter of samsung employees engaged in research and development,
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each of our businesses is focused on discovring new technologies,products and

services that will open a new world of possobilities for the people who use them.

Circular investment

The relations of Samsung companies are very complicated. According to the

Financial Supervisory Service of South Korea, Samsung Everland owns 13.3% of

Samsung Life Insurance; Samsung Life Insurance holds 34.5% of Samsung Card

and 7.2% of Samsung Electronics, as well as more of other Samsung companies.

Samsung Electronics in turns keeps 46.0% of Samsung Card and stocks of other

Samsung companies; and finally, Samsung Card holds 25.6% of Samsung

Everland.

The family of Lee Kun-hee owns 40% of Samsung Everland, whilst Samsung Card

holds 25.6%, and related people have another 30%. Thus it is thought that Lee

controls 95% of Samsung Everland. Control of one company, through the circular

investment, enables the Lee family to control other Samsung companies despite

having only relatively minor holdings.

Through innovative technology, distinctive designs, and a dual focus on

convenience and value, Samsung has remained at the forefront of the digital

revolution we helped launch. We lead the global digital marketplace by

continually launching new products that not only meet- but also anticipate-

customers' demands.

The Digital Media & Communications Business also encompasses world-leading,

premium home appliances that are stylishly designed, equipped with convenient

digital features, and environmentally friendly. Our lineup includes refrigerators,

air conditioners, washers, ovens, vacuum cleaners and other appliances that are

indispensible in today's households.


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A premium brand image has powered Samsung's growth in the

telecommunications category. We lead the global telecommunication industry with

the widest range of mobile phones on the market today - including 3G and

multimedia phones - in addition to telecommunication systems.

Our mobile phones, admired by customers around the world, enhance mobile

lifestyles while meeting the diverse needs of the mobile marketplace. We've led the

standardisation of next-generation mobile phone technologies such as Mobile

WiMAX and High-Speed Downlink Packet Access (HSDPA) to solidify our

alliances with phone carriers around the world.

The business also comprises personal computers and MP3 players, creating

synergies across platforms. We merge the latest mobile technology with core

computing technology for the PC business, while mobile technologies - also

combine with our world-leading power efficiency and design to enhance MP3

player capabilities. Our goal is to use our leadership in technological convergence

to guide the industry as it takes mobility to the next level.

Everyday, more than a quarter of all Samsung employees40,000 peopleengage

in research and development to discover the next generation of powerhouse

products that will take everyday life beyond the ordinarybeyond

imagination.

The companys thrust on Product Innovation and R&D have given the company a

competitive edge in the marketplace. Samsung has two Software development

centres - Samsung India Software Centre (SISC) and Samsung India Software

operations unit (SISO) at Noida and Bangalore respectively.

While the Samsung India Software Centre in developing software solutions in

Samsungs global software requirements for hi-end televisions like Plasma and

LCD TVs and Digital Media Products, SISO is working on major projects for


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Samsung Electronics in the area of telecom: wireless terminals and infrastructure,

Networking, SoC (System on Chip) Digital Printing and other multimedia/digital

media as well as application software. In addition to working on global R&D

projects, SISO is also helping Samsung Indias Mobile business by focusing on

product customisation for the Indian market. Samsung India currently employs

around 2000 employees across its R&D Centres at Noida and Bangalore.

Samsung India is also carrying out Hardware R&D at its Noida R&D Centre. The

focus of the R&D Centre is to customise both Consumer Electronics and Home

Appliance products to better meet the needs of Indian consumers. From Flat

televisions with 'Easy View' technology, Frost free refrigerators with Stabiliser

free operations to Semi automatic washing machines with Silver Nano technology,

the Samsung R&D Centres in India are helping the company to continuously

innovate and introduce products customised for the Indian market.

R&D at Samsung

People

One of Samsung's strongest assets is our team of talented researchers and

engineers. More than a quarter of all Samsung employees42,000 peoplework

everyday in research and development, and we expect that number to surpass

50,000 by 2010. Atand amongour 42 research facilities around the world, they

collaborate on strategic technologies for the future and original technologies

designed to forge new market trends and set new standards for excellence.

Organisation

Samsung's R&D organization has three layers. The Samsung Advanced Institute

of Technology (SAIT), Samsung's technology competitiveness in core business

areas, identifies growth engines for the future, and oversees the securing and

management of technology. The R&D centres of each business focus on technology

that is expected to deliver the most promising long-term results. Division product


17/57

development teams are responsible for commercialising products scheduled to hit

the market within one or two years.

Investment

A critical way that Samsung responds to the highly uncertain business

environment and the increasingly competitive marketplace is through our

commitment to R&D. Each year we invest at least 9% of our sales revenue in

R&D activities. Samsung is committed to leading technology standardisation and

securing intellectual property rights.

Global R&D Network

Innovation is a global enterprise at Samsung. Our research and development

network spans six Samsung centres in Korea and 18 more in nine other countries,

including the United States, the United Kingdom, Russia, Israel, India, Japan and

China, as well as other research centres and universities. Closely linked, these

centres are tasked with hiring top-notch local talent, investigating the latest local

technology trends, and bringing to life those technologies that offer the greatest

benefits.

R&D Areas and Centre Name

Centre Name R&D Areas

Samsung Information Systems

America, Inc. (SISA)

Strategic parts and components, core

technologies

Dallas Telecom Laboratory (DTL) Technologies and products for next-generationtelecommunications systems

Samsung Electronics Research

Institute (SERI)Mobile phones and digital TV software

Moscow Samsung Research

Centre (SRC)

Optics, software algorithms and other new

technologies

Samsung Electronics India

Software Operations (SISO)

System software for digital products, protocols

for wired/wireless networks and handsets

Samsung Telecom Research Israel

(STRI)Hebrew software for mobile phones


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R&D Areas and Centre Name

Centre Name R&D Areas

Beijing Samsung

Telecommunication (BST)

Mobile telecommunications standardisation and

commercialisation for China

Samsung Semiconductor China

R&D (SSCR)Semiconductor packages and solutions

Samsung Electronics

(ChinaR&D Centre (SCRC)

Software, digital TVs and MP3 players for

China

Samsung Yokohama Research

Institute

Core next-generation parts and components,

digital technologies

Samsungs state of the art, highly automated manufacturing facilities are located

at the Companys sprawling Complex at Noida and its recently inaugurated

Sriperumbudur facility, near Chennai. Samsung Indias Noida CTV Plant enjoys

the Number 1 position amongst all Samsung subsidiaries in terms of its Colour

television productivity and has been ranked as the subsidiary with the Best

Quality System.

The manufacturing capacities of Samsung products manufactured at the Noida

Facility are as follows:

PRODUCT DETAILS

CTV Flat TVs & LCD TVs

Colour Monitor CRT & TFT LCD Monitor

Refrigerator Frost-free and Conventional Refrigerators

Washing Machine Fully Automatic and Semi Automatic

Mobile phones GSM Handsets

The highly advanced Chennai Facility that has been inaugurated in November

2007 will help the Company respond better and faster to the growing demand for

its products in the Southern part of the country. The Samsung manufacturing

facility at Sriperumbudur is the Company's second manufacturing complex in the

country.


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Samsung India is working with and contributing to the development of the

domestic component industry in the country. The Company is working with its

partners to improve their product quality and processes. Thus, Samsung vendors

are sent to different Samsung subsidiaries to meet the Samsung overseas vendors

in order to benchmark their own processes. Samsung is also training its vendors

on eco-partnership so that the components manufactured by them are eco

friendly as per ROHS norms.

Samsung products manufactured in India currently enjoy an average localisation

level of over 50%.

Patent Innovations

It is among the top innovators in the U.S. where Samsung topped the patent list

with over 7,400 patents granted, nearly 1,000 more thanIBM. Elsewhere, the

situationquite different. Only one non-European firm (Samsung) made it into the

top ten in Europe.
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There are many ways in which Samsung act as a Social

Citizen

Choose an area below to learn how Samsung is making a difference.

Social Welfare

Culture and Arts

Volunteer Services

Academics and Education

Social Welfare

Samsung lends support to people and their communities in many different ways.

Our current area of focus is on investing in teenagers futures, through support of

science education and creative thinking that encourages leadership; assisting

children in low-income families by supporting educational infrastructure, and

discovering and supporting outstanding students; and supporting programmes

that encourage family well-being. We also carry out programmes in these areas at

each of our eight volunteer centres.

Culture and Arts

Samsung provides support for diverse artistic and cultural activities around the

world. Over the years, Samsung has contributed extensively to numerous

museums, galleries and exhibits in Korea and in many countries, including the

United States and France. The Samsung Museum of Modern Art collects preserves

and exhibits modern and contemporary art from Korea and abroad, while the

Samsung Children's Museum, the first of its kind in Korea, invites children have

fun exploring the world they live in. Samsung also hosts and supports various

cultural events for children and programmes that encourage their early artistic

development.
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Volunteer Services

In 1995, Samsung launched the Social Contribution Corps to encourage employees

to get involved in community service. The initiative has since expanded to eight

volunteer centres across Korea, manned by social welfare experts who support the

development of employee volunteer programmes. Our employees use their

expertise and skills to give back to local communities, and each employee donates

an average of 10 hours to community-based projects

Academics and Education

Strengthening the minds and fostering the creativity of young people is a primary

focus of many of Samsungs programmes. Samsung is a major supporter of the

Korea Youth Science Olympiad, the countrys most prestigious science

competition for junior, middle and high schools and the National Students

Creativity Olympiad, aimed at encouraging inventiveness among students from

junior to high school levels.

OLYMPIC SCHOLARSHIP PROGRAM FOR INDIAN ATHLETES

Digital technology leader, Samsung India has announced a Samsung Scholarship

Programme to support seven top Indian athletes as they prepare for the

forthcoming Beijing Olympics. The 'Samsung Olympic Ratnas' who have been

identified for this Scholarship are:

- World Shooting Champion 2006, Rajiv Gandhi Khel Ratna Award Winner 2006

and Samsung Olympic Brand Ambassador : Manavjit Singh Sandhu

- Silver Medal Winner at the 2004 Athens Games and Rajiv Gandhi Khel Ratna

Award Winner 2004 : Rajyavardhan Singh Rathore

- First Indian shooter to win a World Championship Gold in Zagreb in 2006 and

Rajiv Gandhi Khel Ratna Award Winner in the Year 2001 : Abhinav Bindra

- Silver Medal Winner at the Commonwealth Games 2006 and Rajiv Gandhi Khel

Ratna Award Winner 2003 : Anjali Bhagwat


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- Silver Medal Winner at the Commonwealth Games 2006 and 2007 National

Games : Avneet Kaur Sidhu

- First Indian Archer to qualify for the Olympics and Gold Medal winner at the

Archery World Cup 2007 : Dola Banerjee.

- 2007 National Boxing Champion and Silver Medal Winner at the SAF Games

2006 : A L Lakra

Patterned on the Olympic Solidarity Fund, the Samsung Scholarship Programme

will support the training expenses of these players for a period of one year,

between October 2007 and September 2008.

Samsung India has also become the 'Olympic Partner' for the Indian delegation to

the 2008 Beijing Olympics. The Company will be the Official Sponsor in the

category of Consumer Electronics, IT and Telecommunications.

On the Samsung Olympic Scholarship Programme, states Mr. H B Lee, President

& CEO, Samsung South West Asia HQ, "Our Olympic programme seeks to

support the training needs of these seven, high potential, high caliber athletes, who

we hope can return from Beijing with Medals for the country. Hence, the term

'Samsung Olympic Ratna' for them."

Samsung India's association with the Indian Olympic Association commenced with

the 1998 Bangkok Asian Games and ever since the Company has supported the

Indian Contingent to the Y2000 Sydney Olympics, Y2002 Busan Asian Games, the

Y2004 Athens Olympics and now the 2008 Beijing Olympics

It has been our continuous endeavour to bring alive the pride and spirit of the

Olympics for our Indian consumers. Over the coming few months, we will

continue to organise Olympic related events in India to build interest and support

for the Olympics and the Indian team." states Mr Lee.

Samsung Electronics, the parent Company of Samsung India, is the Proud Partner

for the 2008 Olympic Torch Relay and is a Top Olympic Partner. This Year,


23/57

Samsung Electronics has also announced its support for the Olympic Movement

over the next eight years, till the 2016 Olympic Games.

PRODUCTS

IT business products

Monitors

Mobile Computing

P3 Channel Partner Program

Data Projectors

Printers & Multifunction

Black and White Laser Printers

Color Laser Printers

Black and White Multifunction Printers

Color Multifunction Laser Printers

Supplies and Accessories

Printer Knowledge Center

Professional Displays

Large Format LCD

Large Format Plasma

Home Theater Projectors

Knowledge Center

Telecommunication

Business Telephone System

Mobile

Enterprise

Solution

Home

Set-top box
http://www.samsung.com/us/businessproducts/index.htmlhttp://www.samsung.com/us/consumer/office/monitors/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/office/mobile-computing/index.idx?pagetype=typehttp://www.partnersamsung.com/PortalWeb/Loginpre.aspx?ReturnUrl=%2Fus%2FDefault.aspxhttp://www.samsung.com/us/consumer/office/data-projectors/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/office/printers-multifunction/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/office/printers-multifunction/black-and-white-laser-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/color-laser-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/black-and-white-multifunction-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/color-multifunction-laser-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/supplies-and-accessories/index.idx?pagetype=accsubtypehttp://www.samsung.com/us/knowledge_center/printers_database_compatibility.htmlhttp://www.samsung.com/us/consumer/professional-displays/professional-displays/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/professional-displays/professional-displays/lcd/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/professional-displays/professional-displays/plasma/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/tv-video/home-theater-projectors/index.idx?pagetype=typehttp://www.samsung.com/us/knowledge_center/professional_displays_white_papers.htmlhttp://www.samsung.com/us/business/telecommunication/index.htmlhttp://www.samsung.com/us/business/telecommunication/productType.do?ctgry_type=1http://www.samsung.com/global/business/telecomm/http://www.samsung.com/global/business/telecommunication/productType.do?ctgry_group=13&ctgry_type=28http://www.samsung.com/global/business/telecommunication/productType.do?ctgry_group=15&ctgry_type=30http://www.samsung.com/global/business/telecommunication/productType.do?ctgry_group=14&ctgry_type=30http://www.samsung.com/us/business/settopbox/index.htmlhttp://www.samsung.com/us/businessproducts/index.htmlhttp://www.samsung.com/us/consumer/office/monitors/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/office/mobile-computing/index.idx?pagetype=typehttp://www.partnersamsung.com/PortalWeb/Loginpre.aspx?ReturnUrl=%2Fus%2FDefault.aspxhttp://www.samsung.com/us/consumer/office/data-projectors/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/office/printers-multifunction/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/office/printers-multifunction/black-and-white-laser-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/color-laser-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/black-and-white-multifunction-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/color-multifunction-laser-printers/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/office/printers-multifunction/supplies-and-accessories/index.idx?pagetype=accsubtypehttp://www.samsung.com/us/knowledge_center/printers_database_compatibility.htmlhttp://www.samsung.com/us/consumer/professional-displays/professional-displays/index.idx?pagetype=typehttp://www.samsung.com/us/consumer/professional-displays/professional-displays/lcd/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/professional-displays/professional-displays/plasma/index.idx?pagetype=subtypehttp://www.samsung.com/us/consumer/tv-video/home-theater-projectors/index.idx?pagetype=typehttp://www.samsung.com/us/knowledge_center/professional_displays_white_papers.htmlhttp://www.samsung.com/us/business/telecommunication/index.htmlhttp://www.samsung.com/us/business/telecommunication/productType.do?ctgry_type=1http://www.samsung.com/global/business/telecomm/http://www.samsung.com/global/business/telecommunication/productType.do?ctgry_group=13&ctgry_type=28http://www.samsung.com/global/business/telecommunication/productType.do?ctgry_group=15&ctgry_type=30http://www.samsung.com/global/business/telecommunication/productType.do?ctgry_group=14&ctgry_type=30http://www.samsung.com/us/business/settopbox/index.html


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HDTV Tuners

Digital Video Recorder

Digital Satellite Receiver

Digital Terrestrial Receiver

Digital Cable Receiver

CCTV

Camera

Monitor

DVR

Network Controller

EZ View

Housing & Mount

what's new

Samsung Announces Production of Next-gen Nonvolatile

MemoryPRAM

Samsung has begun producing 512-Mb PRAM memory - a new non-volatile memory

technology that features high-performance and low power consumption. PRAM

(phase change random access memory) is expected to usher in the next generation of

non-volatile memory technology for mobile devices, particularly multimedia handsets

and smartphones. More scalable than other memory architectures being researched,PRAM combines the speed of RAM for processing functions, with the non-volatile

characteristics of flash memory for storage. Also, by using PRAM, the battery life of a

handset can be extended over 20 percent.
http://www.samsung.com/us/business/settopbox/index.htmlhttp://www.samsung.com/us/consumer/subtype/subtype.do?group=audiovideo&type=digitalsettopbox&subtype=hdtvtunershttp://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=49http://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=50http://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=51http://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=52http://www.samsung.com/us/business/cctv/index.htmlhttp://samsungsecurity.com/product/p1_list.asp?cate_id=2http://samsungsecurity.com/product/p1_list.asp?cate_id=3http://samsungsecurity.com/product/p1_list.asp?cate_id=4http://samsungsecurity.com/product/p2_list.asp?subCate_Id=13http://samsungsecurity.com/product/p1_list.asp?cate_id=6http://samsungsecurity.com/product/p1_list.asp?cate_id=5http://samsungsecurity.com/product/p1_list.asp?cate_id=7http://www.samsung.com/us/consumer/subtype/subtype.do?group=audiovideo&type=digitalsettopbox&subtype=hdtvtunershttp://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=49http://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=50http://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=51http://www.samsung.com/global/business/settopbox/productSubType.do?ctgry_type=37&ctgry_subtype=52http://www.samsung.com/us/business/cctv/index.htmlhttp://samsungsecurity.com/product/p1_list.asp?cate_id=2http://samsungsecurity.com/product/p1_list.asp?cate_id=2http://samsungsecurity.com/product/p1_list.asp?cate_id=3http://samsungsecurity.com/product/p1_list.asp?cate_id=4http://samsungsecurity.com/product/p2_list.asp?subCate_Id=13http://samsungsecurity.com/product/p1_list.asp?cate_id=6http://samsungsecurity.com/product/p1_list.asp?cate_id=5http://samsungsecurity.com/product/p1_list.asp?cate_id=7


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Products

Consumer Products

Mobile phones - CDMA, GSM

Televisions - LED TV, LCD TV, Plasma TV, DLP TV

Audio/Video - Blu-ray, Home theater, Home theater projectors, MP3

players, DVD players, Digital set top box

Cameras & Camcorders - Digital cameras, Camcorders

Computers & Peripherals - Mobile computing, Desktop monitors, Data

projectors, Digital photo frame, Hard disk drive, Optical disc drive

Printers & Multifunction - Monochrome laser printers ,Color laser

printers, Monochrome laser multifunction printers & faxes, Color laser

multifunction printers & faxes, Supplies & Accessories

Home appliances - Refrigerators, Washers & Dryers, Ranges, Dishwashers,

Microwaves, Air conditioners, Vacuum cleaner

CCTV - Camera, Monitor, DVR, Network,Controller, EZ View, Housing &

Mounts

Business Products - Mobile computing, LCD monitors, Data projector Telecommunication- Business telephone systems

Set Top Box- Digital video recorder, Digital satellite receiver, Digital

terrestrial receiver, Digital cable receiver

New Business Area

May 21, 2009 - Samsung enters wind turbine market[52]
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Jul 5, 2009 - Samsung Engineering Wins $2.6 Billion Oil Refinery Project

In Algeria[53]

Jul 8, 2009 - Samsung wins $1.6 bln Saudi refinery order from Satorp(Joint

venture set up by Saudi Arabia's state-run oil company Aramco and

France's Total S.A.)[54]

Jul 13, 2009 - Samsung partners with Coca-Cola on new vending

machines[55]

Jul 14, 2009 - Samsung & Gallant Air Conditioning open the Air

Conditioning Training School in Mansfield UK.

Jul 14, 2009 - Samsung-Bosch battery venture buys U.S. Cobasys from

Chevron Corporation[56]

Jul 15, 2009 - Samsung to invest $389 million in biosimilars:

report(Reuters)[57]

Jul 16, 2009 - Hyundai Motor, Samsung Join for Car Chips [58]

Jul 20, 2009 - Samsung Electronics to Invest $4.3B in Green

Transformation : report(Reuters)[59]

JUL 28, 2009 - Samsung Heavy Gets $5B Offshore LNG Facility Order

From Royal Dutch Shell[60]

Jul 29, 2009 - Samsung, LG, and SK Telecom to jointly develop chips[61]

Aug 03, 2009 - BMW to use Bosch-Samsung batteries for e-car; MUNICH;

Germany SB LiMotive, a joint venture of Bosch and Samsung focused

on the production of lithium ion batteries, has announced its first

customer: BMW will use SB LiMotive batteries to power its electric cars.

Main competitors

Camcorder Sony,Panasonic

Laser printer HP, Brother Industries, Xerox Corporation, Epson

Laptop computer HP, DELL, Acer Inc, Lenovo

Video projector Epson

MP3 players Apple Inc, Iriver
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Home appliances Whirlpool, Electrolux (AEG), LG, General Electric,

Bosch-Siemens

Optical disc drives LG,Toshiba

Home cinema Sony, Philips, Panasonic, LG, Onkyo, Yamaha, Denon,

Kenwood Corporation

CCTV Pelco

Telecommunications equipment Alcatel-Lucent, Nortel, Ericsson

LEDNichia, Osram

Shipbuilding Hyundai Heavy Industries, Daewoo Shipbuilding &

Marine Engineering

Photocopiers Ricoh, Canon, Xerox, Sharp Corporation, Toshiba,

Kyocera Mita, Panasonic

Fax Xerox, Sharp Corporation, Ricoh, Kyocera Mita, Murata

Machinery, Toshiba,Panasonic
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Chapter : 2

Introduction of organisational culture

Organisational culture
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Introduction

The internal working of every organisation has certain commonly perceivedpsychological characteristics or traits which are collectively called its culture or

mileu. These traits generally vary from organisation to organisation to organistion

are relatively stable over the time and influence the behaviour of people in the

organisation. Thus every organisation has its own unique culture.not only thiseven

different departments of same organisation may have different cultures depending

upon the perception of members of the departments. Various personal

characteristics such as values,needs,attidutes,exceptions etc. determine the manner

in which members are likely to perceive the various aspects of internal working.

The culture of your organisation is the state of its health.

A healthy oraganistion is one which obviuios effort made to get people with

different backgrounds,skills,and abilities to work together towards the goal of theoragnisation.

An effective,culturally diverse organisation is one whose culture is inclusive of all

of the varying groups and constituencies it intends to serve. The organisations

values,vision,mission,policies,procedures and norms constitute a culture thjat is

manifested in multiple perspectives and adaptability to varying values,beliefs and

communication styles.

For many companies the proper implementation of an organisational culture

survey can prpvide valueable information that can be usedto guide and increase its

success. However, Companies that choose to implement a survey must be prepared

to respond to both positive and negative results, and work with employees to make

improvements in the wprk environment. Failure to respond to employee feedback

can ultimately increase the number of workorce problems experienced within

organisation.
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Defining Culture

Perception about an organisational goals and decisions that a manager should take

to achieve these goals come not only from the formal control system but also

through the informal organisation. Both informal and formal structure combine to

create what ia called organisational culture.

It influences morale and the attitude of the individuals towards his work and his

environment. Organisation culture has been a popular concept in the theory and

research for sometime and has received a great deal of attention in the past 25yrs.

Organisational culture is a system of shared beliefs and attitudes that develop

within an organisation and guides the behaviour of its member.

It is also known as corporate culture:, and has a major impact on the

performance of organisation and specially the quality of work life experienced by

the employees. Organisational culture consists of the norms, values and

unwritten rules of conduct ofan organisation as well as management styles,

priorities, beliefs and inter personal behaviours that prevail.

Concept of organisational culture.

Culture implies a pattern of beliefs and behaviour. It is cultivatedbehaviour in the sense that it is learnt from the members of the society.
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Organisational culture is the totality of beliefs, customs, traditions, and

values shared by the members of the organisation. The culture

characteristics of an organisation are relatively enduring over time andrelatively static in their prosperity to change .

Together they create a climate that influences how well people

communicate ,plan and make decisions.

Strong values let people know that is expected of them. There are clear

guidelines as to how employees are to behave generally within the

organisation an their expected code of conduct outside the organisation.

Nature of organisational culture

The features of organisational culture are as under :
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Like an individual every organisation has its own personality.

The personality of the organisation defines the internal environment of an

organisation.

It differentiates an organisation from the others.

It relatively enduring or stable over the time.

It is perceived by the members and outsiders.

It exercises a significant influence on the attitudes, behaviour and

performance of organisational members.

Schein observed that atleast six popular meanings could be ascribed to

organisational culture. These are :

The observed behavioural regularities in the interactions, language and

rituals of the organisation members.

The norms which evolve over a period of time in working groups.

The philosophy which guides the decisions and policies of an orgaisation.

The rules of the game one must learn in order to be accepted in the

organisation.

The dominant values which are exposed by the organisation(or by the

dominant members of the organisation).

The climate that pervades and gets conveyed in the day to day functioning

of the organisation.

Components of organisational culture

It can be difficult to identify the large number of organisational culture areas that

exists. Recent research has identified over 460 different types of work environment
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characteristics that have been measured. Many of these characteristics can be

classified into the following major areas : jobs, roles, leader, organisation and

workgroup. In many companies there are particular areas where employee

feedback would be useful.

The basis of organisational culture lies in the following :

Individual autonomy : i.e the degree to which employees are free to

manage themselves or not accountable to others.

Position structure: i.e the extend of formalisation, centralisation and

direct supervision.

Reward orientation : i.e the extend to which rewards are related to

performance and the required system of behaviour in the organisation.

Consideration : i.e the extend to which the people in the organisation

offer social emotional support to each other and work as a team. Whetherthe supervision is production oriented or people oriented?

Conflict : i.e the extend of differences present between individuals and

departments and the way which they are resolved.

Risk taking : i.e the degree o freedom to experiment with new ideas, take

risks and commit honest mistakes without fear of punishment.

Communication patterns : the degree to which organisational

communications are restricted to the formal hierarchy of authority.

Outcome orientation : the degree to which management focuses on

results or outcomes rather than on the techniques and processes used to

achieve these outcomes.
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Types of organisational culture

Authoritarian and participative cultures : In this type of culture. There is

centralisation of power with the leader and obedience to orders and discipline are

stressed. Any disobedience is punished severely to state an example to others. The

basic assumption is that the leader knows what is good for an organisation and he

always acts in its interests. Participative culture tends to emerge where most of the

organisational members see themselves is equals and take part in decision making.

Mechanistic and organic cultures : The mechanistic organisational cultureexhibits the values of bureaucracy and so is called bureaucratic culture.

Organisational jobs are created around narrow specialisations and people think of

their careers mainly within these specialisations, authority is thought of as flowing

down from the top of the organisation to the lower levels and communication flows

through prescribed channels. There is a great deal of departmental loyalty And

inter-departmental animosity. This sort of culture resists change and innovation.

In Organic culture formal hierarchy of authority, departmental boundaries,

formal boundaries, formal rules and regulations, and prescribed channels of

communications are forward upon. There is a great deal of emphasis on task

accomplishment, team work and free flow of communication-formal and informal.

There is a widespread understanding within staffing of the problems, threats and

opportunities the organisation is facing and there is willingness and preparedness

to take appropriate roles to solve the problems. The culture stresses flexibility,

consultation, change and innovation.

Sub Culture and Dominant Culture : Each department of an organisation

may have its own culture representing a sub culture of the system. An organisation

culture emerges where there is an integration of all the departments into a unified

whole. Within any given unit, the tendency for integration and consistency will be

assumed to be present but it is perfectly possible for coexisting units of a larger

system to have cultures that are independent and even in conflict with each other.
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Role and significance of organisational culture

Each organisation is recognised by its culture. Whenever people name an

organisation, the culture attached to the organisation is immediately

recalled. An organisation is distinctively different from other organisations

by virtue of its cultural values, beliefs and norms. Besides this the following

functions are performed by the organisational culture.

Organisational culture creates the boundary beyond which no employees

are permitted to go. They automatically observe the organisational

standards and norms of behaviour.

An organisation is well recognised by its culture, the culture of an

organisation provides its stability. People prefer to continue with theorganisation. Employees, customers, financers and other related persons

prefer to remain with the organisation.

The social recognition of the organisational culture makes the organisation

grow and develop in all dimensions.

Organisational culture acts as a motivator that guides and controls theemployees. Satisfied employees get more and enthusiasm for performing

the respective jobs.

The attitude and behaviour of the employees are directed towards the

achievement of goals through a sound culture. Disciplined employees make

other employees disciplined and well behaved.
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Advantages of organisational culture

The advantages of a sound organisational culture are ultimately reflected

in employees performance and satisfaction. The image of an organisation is

increased and people are satisfied with the performance of the

oragnisation. Peoples satisfaction lies in the employees smile. It is

instrumental to increased production and satisfaction.

A strong culture ensures better performances. Culture enhances

organisational commitment and increases the consistency of employee

behaviour. It reduces ambiguity and tells implicitly what to do and how to

do.

There is a great deal of departmental loyalty and inter departmental

animosity. This sort of culture resits change and innovation.

In the organic culture, formal hierarchy of authority, departmental

boundaries, formal rules and regulations, and prescribed channels ofcommunications are frowned upon.

There is great deal of emphasis on task accomplishment team work, free

flow of communication- formal and informal.

There is a widespread understanding within staff of the problems, threats,

and opportunities the organisation is facing and there is willingness andpreparedness to take appropriate roles to solve the problems. The culture

stresses flexibility, consultation, change and innovation.

Creation of culture

Organisation culture provides the members with a sense of organisational identityand generates a commitment to beliefs and values that are larger than themselves.
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Creation of organisational culture is a very lengthy and complicated process.

According to a noted social psychologist, Edgar Schein, evolution of common

assumptions of the organisational members is the starting stage of creation of the

organisational culture. These assumptions act as the basis of creation of shared

values. Both assumptions and values are non observable elements of the culture.

At the last stage, observable artefacts of the culture are developed . thus according

to Edgar Schein culture exists on three levels: on the surface we find artefacts,

underneath artefacts lie values and behavioural norms and at the deepest levels

lies a core of beliefs and assumptions. Schein model of culture is shown in the

figure and the three levels it depicts are described below :

A) Observable Artifacts : These are symbols of culture in the physical and

social work environment and are most visible and accessible. Among the artefacts

of culture are the following :

Organisational heroes : As a reflection of the organisations philosophy

, this dimension concerns the behaviour of top executives and their

leadership styles. These leaders become the role models and a

personification of an organisations culture. They represent what the

company stands for and reinforce the values of the culture.

Artifacts

Assumptions

Beliefs and values
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