[Letters] Reshuffled Samsung, positive and negative effects

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[Letters] Reshuffled Samsung, positive and negative effects

For students of organizational behavior, changes in the top ranks of Samsung Electronics signal important expected values and competency required from potential fresh recruits and applicants.

Possible conflicts and crisis of confidence among top leaders and ordinary employees should, however, be expected as part of any change in management.

The main signal from the company’s top leaders is about the need for youth and fresh energy to ensure the future of the organization.

The need for fresh ideas and youth was clearly stated by Samsung Group Chairman Lee Gun-hee: “Changes in the 21st century are faster than we anticipate. Samsung prepared for the 21st for 10 years, but measures for dealing with change are not enough.”

He added there is a need to “change people to prepare for the future and to reshuffle the organization.”

With these words, Lee expressed hopes for a smooth succession in leadership.

In my opinion, there could be positive and negative effects in the reshuffle, to emphasize young talent and fresh ideas at the top leadership.

Fresh ideas and innovative management are some of the positive effects that come along with reshuffling the business organization. Young business leaders are full of energy and passion.

On the other hand, new risks will emerge along with new ideas about products, technology and methods that will test the strength of the conglomerate.

I think that when Lee Gun-hee mentioned “youth,” he did not mean a literal interpretation of physical age, but about creativity in preparing for the future. It is expected that the average age of management staff will be younger after the reshuffle, with the promotion of younger managers.

But it is well known that when there is a serious crisis in business, young managers don’t have enough experience and seasoned wisdom that could provide a tested solution that comes only from the wisdom of senior managers.

With a reshuffle, which puts younger leaders in a position to change the company, there is a risk that the company won’t be able to come back from a crisis easily.

Therefore, the changes in top leadership at Samsung will raise the need for synergy in management. Synergy means that Samsung managers and employees at all levels and structures will be affected by the reshuffle. They’ll have to intensify efforts to harmonize old and new methods and ideas to maximize positive effects.

When the business organization is younger, people are more ambitious and works faster to deal with any crisis or competitive challenge.

There will be critical moments that threaten Samsung’s existence, and the younger leaders should have the ability to cope, and the capacity to overcome these expected crises with confidence.


Cho Min-goo,

a junior business student, Hanyang University Erica Campus, Ansan

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