Jaeyong Lee’s ‘New Samsung’, outline this week… Reorganization of HR system and imminent appointment of the president

The outline of the ‘New Samsung’ in which Samsung Electronics Vice Chairman Lee Jae-yong is driving is expected to be revealed this week.

According to the business community on the 28th, Samsung Electronics will unveil the personnel system reform plan within this month. Samsung Electronics has already prepared a plan to reform the evaluation and promotion system and shared it with internal members and listened to the opinions of employees in this regard.

According to what has been known so far, the HR system reform plan was prepared mainly based on a thorough performance-based approach, clear compensation, and the establishment of a horizontal corporate culture.

First of all, it seems that the ‘standard length of stay’ required for promotion to the career level (CL), which consists of four stages, will be abolished. Currently, it is possible to move to a higher CL after completing the period of 8 to 10 years in the CL, but in the future, a ‘promotion session’ operated by the team leader will open a path for bold selection and promotion.

In addition, in the process of evaluating the performance of employees, absolute evaluation is expected for the rest of the employees except for 10% of high performers. Currently, Samsung Electronics is limited to 25% of the ‘VG’ ratio, which is just below the highest performer (EX). However, according to the externally known personnel system reform plan, high-performance evaluators will be able to give more VG grades in the future.

Measures to abolish the titles by position and to properly take root the system of unifying them as ‘professionals’ are also expected to be included in this reorganization plan. The plan is to build a horizontal organizational culture by not exposing the position or employee number to the internal communication network and individually notifying the announcement of the promotion.

In addition to the reorganization of the personnel system, Samsung Group personnel are also expected to take place. Samsung usually starts organizing the organization for the next year, starting with the appointment of the president in early December.

As Vice Chairman Lee was released on parole in August and brushed off the ‘judicial risk of state government nongdan’, there is a possibility that a suitable person for the new Samsung he envisioned will be selected through this personnel appointment.

In particular, the business world believes that Vice Chairman Lee may have envisioned the appointment of the CEO to join New Samsung on this business trip.

During this business trip to the U.S. for the first time in about five years, Vice Chairman Lee met with executives of companies such as Moderna, Verizon, and Google and checked the local situation, focusing on Samsung’s future food, such as bio, 5G, and artificial intelligence (AI).

In particular, it is analyzed that the ‘Semiconductor Vision 2030’ strategy needs to be reviewed once as the site for a new foundry (semiconductor consignment production) in the United States worth $17 billion (about 20 trillion won) was finally selected through this business trip to the United States.

Samsung Electronics Vice Chairman Lee Jae-yong, who returned from a business trip to the United States on November 24, answers questions from reporters at the Gimpo Business Aviation Center in Seoul. [사진=유대길 기자 [email protected]]

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