Class 12 Business Studies Project
Topic: Principles of Management Applied in Samsung
Submitted by: Student Name
Class: XII
Session: 2025-26
Acknowledgement
I would like to express my gratitude to my Business Studies teacher, my school, and my classmates
for their constant guidance and support in completing this project on 'Principles of Management
Applied in Samsung'. This project has helped me gain deep insights into the practical applications
of management principles in the corporate world.
Certificate
This is to certify that Student Name of Class XII has successfully completed the Business Studies
project on the topic 'Principles of Management Applied in Samsung' under my guidance during the
session 2025-26. This project is the student's original work.
Introduction
Management is the art of getting things done through people in an efficient and effective manner.
Henri Fayol and F.W. Taylor proposed principles of management that guide organizations to
achieve goals. Samsung, a South Korean multinational company, has successfully applied these
principles to become one of the global leaders in technology. This project highlights the application
of these management principles in Samsung's operations.
Point 1: Division of Work: At Samsung, specialization is key. Different departments such as
research, design, production, and marketing handle distinct roles. For example, Samsung’s
semiconductor division is dedicated to chips, while another division specializes in smartphones.
This division of labor increases efficiency and ensures expertise in each area.
Point 2: Authority and Responsibility: Samsung managers are empowered to make decisions but
are equally accountable for outcomes. For instance, the mobile division head has authority to
introduce new models and bears responsibility for their performance in the global market.
Point 3: Discipline: Samsung maintains strict rules of punctuality, product quality, and workplace
ethics. Employees are trained to follow international standards, which ensures brand consistency
and customer trust worldwide.
Point 4: Unity of Command: Each employee reports to one superior, preventing confusion. For
example, workers in the assembly line report only to their shift in-charge, which avoids conflicting
instructions.
Point 5: Unity of Direction: Teams at Samsung work towards a single vision—innovation and
customer satisfaction. For example, the Galaxy smartphone launch involved R&D;, marketing, and
after-sales teams, all working with one objective in mind.
Point 6: Subordination of Individual Interest: Employees align personal goals with company goals.
Engineers often put in extra effort to meet deadlines for global product launches, showing loyalty to
the organization’s mission.
Point 7: Remuneration: Samsung motivates its workforce with fair salaries, performance bonuses,
and recognition awards. Competitive pay packages encourage employees to give their best
performance.
Point 8: Centralization and Decentralization: While strategic decisions are centralized at Samsung
HQ in Seoul, regional offices like India or the USA have autonomy in marketing and distribution
strategies to suit local markets.
Point 9: Scalar Chain: Samsung has a clear line of authority from top executives to factory workers.
This structured hierarchy ensures smooth communication and efficient decision-making.
Point 10: Order: Proper arrangement of resources is vital. In Samsung factories, raw materials,
machinery, and workforce are systematically organized for maximum efficiency.
Point 11: Equity: Samsung treats employees fairly across countries. Equal opportunities in
promotions and skill development are offered irrespective of nationality.
Point 12: Stability of Tenure: Samsung invests in retaining skilled workers through career growth
opportunities and long-term contracts, which reduces employee turnover.
Point 13: Initiative: Samsung encourages innovation from employees. The idea of foldable
smartphones came from engineers taking initiative beyond routine tasks.
Point 14: Esprit de Corps: Samsung promotes teamwork globally. For instance, during the Galaxy
Fold launch, cross-country teams from Korea, India, and the US collaborated successfully.
Point 15: Science, Not Rule of Thumb: Samsung bases decisions on data and research rather than
guesswork. AI-driven customer research helps identify features customers want.
Point 16: Harmony, Not Discord: Samsung builds harmonious relations between managers and
workers by ensuring safe working conditions and transparent communication.
Point 17: Cooperation, Not Individualism: Group success is prioritized. The launch of new
smartphones is seen as a collective achievement, not credited to one person alone.
Point 18: Development of Each Worker: Samsung provides extensive training programs for
workers and managers. Workers are trained in robotics, and managers in leadership skills.
Point 19: Mental Revolution: After the Note 7 battery issue, Samsung restructured its quality
checks, creating a shift in both employee and management attitude toward safety and
responsibility.
Point 20: Leadership Style: Samsung’s leadership reflects Fayol’s principles by balancing authority
with accountability. Leaders inspire teams while taking ownership of results.
Point 21: Division of Work in Manufacturing: Each stage of smartphone production—design,
assembly, software integration—is handled by specialized teams, ensuring efficiency.
Point 22: Unity of Direction in Galaxy Launch: All departments worked with a single vision of
making Galaxy a global success, demonstrating unified direction.
Point 23: Discipline in Brand Reputation: Samsung’s consistent quality control ensures its
reputation as a reliable global brand.
Point 24: Scientific Management in Supply Chain: Samsung uses time and motion studies to
optimize logistics, reduce waste, and speed up delivery of components.
Point 25: Decision-Making: Strategic decisions like technology innovation are centralized, while
regional marketing is decentralized to adapt to local consumer needs.
Point 26: Equity in a Multinational Environment: Samsung ensures fair promotions and salaries
across global offices, fostering inclusivity.
Point 27: Team Spirit in Marketing: Global campaigns, such as Olympic sponsorships, reflect the
teamwork of multiple Samsung units worldwide.
Point 28: Remuneration and Motivation: Employees are rewarded through performance bonuses,
promotions, and international recognition programs.
Point 29: Innovation and Initiative: The Galaxy Z Fold series is a direct result of Samsung
encouraging engineers to think creatively and take initiative.
Point 30: Scalar Chain in Organizational Structure: A structured chain of communication ensures
messages flow effectively from the CEO to the lowest level employees.
Point 31: Employee Stability: Samsung retains talent through job security, health benefits, and
growth opportunities, ensuring stability of tenure.
Point 32: Standardization and Simplification: Samsung standardizes product parts like chargers
and processors across models to reduce costs and maintain uniform quality.
Point 33: Mental Revolution after Note 7 Crisis: The crisis changed Samsung’s culture—safety and
quality were given top priority to regain customer trust.
Point 34: Time and Motion Studies: Samsung’s production lines are studied carefully to identify and
remove time-wasting processes, improving productivity.
Point 35: Harmony in Employer-Employee Relations: Samsung fosters respect and communication
between employers and workers, ensuring a cooperative work culture.
Conclusion
Samsung’s success as a global technology leader is strongly linked to its application of
management principles by Henri Fayol and F.W. Taylor. These principles have helped Samsung
achieve efficiency, innovation, employee satisfaction, and strong customer trust. This case study
proves that management principles are not just theoretical, but practical tools for success.
Bibliography
1. NCERT Business Studies Class XII Textbook 2. Samsung Official Website (www.samsung.com)
3. Business Studies Reference Books 4. Articles on Samsung Management Practices
