Samsung To Restructure Corporate Culture To Behave Like Startup

Samsung announced on Thursday of its plans to restructure its business in a manner similar to a startup.

Samsung is restructuring its entire workforce. It plans to boost the slow growth and demand in the market. The South Korean tech giant made this announcement on Thursday, with plans to cut down hierarchal practices and systems, which lead to more work hours and useless meetings.

The Galaxy maker conducted a ceremony called ‘Startup Samsung’ at headquarter in South Korea, where it made the announcement of its plans. It is planning to reach its goal by influencing all the executives to sign a contract to promise to leave the top-down system behind and try to turn the work environment into a more comfortable and open place.

Samsung has further plans of reducing the hierarchy cycle by cutting down the number of staff and even start online discussions with its employees and senior heads. It is clearly seeking for better and new business strategies as Lee Jae-Yong, 48, succeeds his father, Lee Kun-Hee. Samsung has plans to change its focus from chips and semiconductors to healthcare products and pharmaceuticals, which is a good decision at a time like this, since it is facing tough competition in the market.

The mobile phone maker is looking for other markets since it is facing huge competition from Apple and Chinese competitors. It is even making autonomous self-driven cars. It made headlines of working on artificial intelligence and plans to install this in its phones. The reorganization of the workforce and business operations will be announced in June this year.

This move will enable the workers to enjoy breaks and spend time with their families more often. In this manner, better output can be achieved out of them. Open communication between workers at all positions would mean that there will be more efficiency and coherence in their work and all employees will be able to share their thoughts and ideas, which is not usually the case in multinational companies.

Some analysts are not sure about Samsung’s plans. The tech organization believes that this is a way of simply analyzing its workforce closely to conclude efficiency of employees and later trim down its workforce to save extra expenditures.

Some employees of the tech giant were even allowed to have debates last year. They even made products and launched services, which was not a part of their jobs. Samsung has already made working hours flexible. However, some employees do not agree with the ambition of the company.