A review of development facility at Samsung Essay

A review of development facility at Samsung - Essay Example It has been found that foreign companies have a tough time managing labor issues when they enter Chinese markets. These issues include lack of educated workforce in China, reluctance of migration to work in Chinese industries and Union and Labor Law sensitive issues (Cia, Park and Zhao, 2007). Samsung group is a South Korean multinational engaged in the task of manufacturing consumer electronic and electronic components. It operates over 80 subsidiaries and serves globally employing over 470,000 employees. Samsung has been facing acute shortage of labor and problems in recruitment and selection of workforce in China. The study aims to find out reasons behind such labor problems and address them with suggested solutions. 1.1 Research title: A review of manufacturing facility of Samsung in China 1.2 Research Question: What are the reasons behind labor problems for Samsung in China? 1.3 Research Objectives: To find out the persistent problems associated with labor in China. Investigatin g reasons associated with recruitment problems for Samsung in the country. To identify ways that shall help overcome these labor problems. 1.4 Research Rationale Identify ways of managing Samsung’s labor recruitment and selection problems in China. 2. Literature Review Figure 1: Fishbone Diagram for Labor Problems of Samsung in China (Source: Joy-Matthews, Megginson and Surtees, 2004) 2.1 Main Issue 1: Cultural fit - Lack of educated workforce China is moving largely from being a labor intensive nation to a manufacturing concern that requires more of skilled labor. Such high technology work has attracted many a foreign workers and also returning overseas Chinese employees. Along with this, more and more Chinese people are trying to gain international work exposure before they return to China to get better and higher working positions in foreign multinationals (Zhang, Zhao and Lei, 2012). While undertaking a hiring process, with increased talent movement into China from global nations, gaining cultural fit has become one of the most important criteria’s for hiring new recruits. This feature has become more important than salary some companies. Companies engage employees in training into various types of technical skills if the person fits with the cultural fit requirements (Cockain, 2012). However, despite such great employment opportunities, companies in China, operating with their hierarchical work structure find it difficult to recruit right employee for the right place and at the right time. Recruitment of caliber talent has posed challenges in front of companies because the number of opportunities available for skilled workforce is far more than the availability if such skilled manpower within the country (Dryburgh, 2011). Another problem impediment in hiring top talent in organizations in China found in the study of Golley and Meng, 2011, is that most of the Chinese people are not confident about working with foreign management. They prefer to recruit a Chinese for all their managerial decisions. The company under this study is also in dire need for leadership talent. It is in need of experienced individuals with perspectives to run senior leadership. The problems with sourcing of such talent is in association with lack of knowledge of