(EDITORIAL from The Korea Times on June 29)

Corporate culture innovation

Samsung Electronics is taking steps toward innovating its corporate culture to raise its global competitiveness.

The tech company announced reform measures to be implemented starting March 2017. The aim is to replace its rigid top-down culture with one that is more flexible, creative and performance-oriented. The ambitious reforms include simplifying its seven-tier staff system, largely based on seniority and age, into four. The company will also institute other measures for creating a more efficient work environment.

It is hard to understand why a global firm like Samsung is still stuck in a backward corporate culture. Korean conglomerates like Samsung have contributed to Korea's notorious reputation as a "republic of night shifts" and other inefficient practices such as long meetings. Samsung is also pledging the establishment of a more employee-friendly workplace by implementing flexible work hours and reducing after-hours work.

Corporate culture innovation is a crucial task for Samsung, which has been hurt by a rapid drop in smartphone profits and a lack of new businesses to contribute toward growth. Although belated, the new Samsung campaign is a timely step toward ensuring its competitiveness among global rivals.

The question now is whether these measures will lead to fundamental changes in Samsung's culture. For a conglomerate such as Samsung, it will take a long time for the measures to fully disseminate and take root among its many affiliates.

It also remains to be seen whether Samsung's example will be benchmarked by the rest of Korea's business community. In a recent survey by the Korea Chamber of Commerce and Industry, 77 out of the 100 member companies said that their corporate cultures were substandard. It is an urgent task not just for Samsung, but for the entire Korean business sector to replace its outdated culture with one that is more open toward communication and change.

As Korea's leading tech firm, Samsung's experiment with corporate culture innovation is gaining attention. It should vigorously implement its reform measures and set a strong example.

In a recent survey, Samsung was rated among the world's top three most dynamic brands after Google and Amazon. But Samsung is nowhere near those companies in terms of corporate culture. We want to see Samsung leading globally not just in smartphone and memory chips but also in creating an efficient workplace.
(END)