Question

Hello, Please follow and answer the requirement on these question based on the case company which is Samsung.

a) What is the organizational structure for Samsung Company (centralized or decentralized)? specific case information. (250 words)

Answer 1

Samsung electronics has Centralized organizational structure where all strategic decisions taken by CEO and board of directors. Company has its own rules that CEO and board of directors must follow while taking decisions. Inspite of centralized strategic management company has made divisional organizatinal structure and it has following 3 key divisions. Their organizational structure has employees grouped hierarchically below CEO and board of directors as per division of manufacturing and their functions within division.

Following are functional areas of Samsung Electronics.

1) IT & Mobile Communications (IM)- Mobile Communication Business & Network Business

2) Consumer Electronics (CE)- Visual Display Business, Digital Appliances Business, Health & Medical Equipments Business & Printing Solutions Business

3) Device Solutions (DS)- Memory Business & System LSI Business.

4) Corporate Management Office: It is located at Seoul, South Korea, this corporate office deals with overall management of group and administrative control.

5) Sansung Advanced Institute of Technology (SAIT): It is located at Suwon, South Korea, all research and new product development activites done at this highly advanced center.

Samsung's each division of samsung is managed separately as per product characteristics, marketing requirement, new product development challenges and other aspects of business. Due to functional organizational structure all departments has clearly defined roles and responsibilities and by centralized decision making organization works as whole and better team work. Functional organizational structure has some disadvantages such as it creates space between departments and decision making is not quick and flexible.

Centralized structure provide similar procedures within organization, it leads to sense of direction and coordination among all employees.

Samsung uses standard mechanistic structure. Employees specialized in their task will work separately. It has well defined hierarchy of authority.

Apart from this Samsung is growing rapidly in oversease, many research and development centers, manufacturing plants and sales coordination centers established outside South Korea. Company has managed to be among top 5 electronics manucturing companies by managing their business in unique and well organized manner. This company is perfect example of successful execution of centralized management system.