new hrm project.docx

8/10/2019 NEW HRM PROJECT.docx

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LG ELECTRONICS

INTRODUCTION

LG Electronics Inc. (Korean : LG, KRX: 066570 , LSE: LGLD) is a South

Korean multinational electronics company headquartered in Yeouido-dong , Seoul , and a memberof the LG Group , employing 82,000 people working in more than 100 locations around the world.With 2013 global sales of USD 53.10 billion (KRW 58.14 trillion), the company operates its

business through five divisions namely: Mobile Communications, Home Entertainment, HomeAppliances, Air Conditioning & Energy Solutions, and Vehicle Components .[2] CEO of LGElectronics is Bon-joon Koo, who assumed the role of Vice Chairman of LG Electronics onOctober 1, 2010. LG Electronics is currently the world's second-largest television manufacturer

INFORMATION

The Korean electronics industry with active support from the Government in the 1970s showed promising growth. GoldStar established large plants and secured a nationwide production base.The large plants helped the company to expand and sowed the seeds for globalization. In 1975,GoldStar established a central R&D centre to develop color TV, VCRs and computers. In 1976,the company produced the first Korean made color TV.

In 1977, GoldStars sales were over 100 billion. The exp ort volume in 1978, reached US$ 100million .24 After this the company laid the foundation for globalizing the Korean

electronicsindustry.

In the early 1980s, GoldStar pursued profit-oriented operations and opted for a series ofrestructuring exercises to combat rising competition and to be effective in its efforts inglobalization program. With the change in international trade scenario, it became essential forthe company to establish overseas manufacturing bases to pursue international markets. GoldStarestablished a manufacturing subsidiary in Huntsville ,25 U.S. in 1982 and other manufacturingand sales subsidiaries in Germany. The company established a subsidiary in UK (1988) and amanufacturing subsidiary in Mexico 26 in1989.(ExhibitV)

The energy crisis and political unrest in the early 1980s had a negative effect on GoldStarsgrowth. But the company was able to overcome the situation and by 1984, the total sales wereexceeding 1.2956 trillion. 27 At this point of time GoldStar followed effective business strategiesand focused on product diversification and strengthened its national sales channels in Korea. Atthe same time the company also focused on diversification of its export structure in internationalsales.
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the late 1980s LG had adopted a new strategy focusing on quality of product and expandingmarketing capabilities. When the South Korean government relaxed trade barriers, there wasgreat penetration of foreign companies entered to compete with domestic firms including LGE.As a result, sales of LG products dropped by US$ 1 billion and profits deceased by 18% between1986 and 1987. The company was able to challenge foreign companies by restructuring theorganization and adopting a new management style with decentralized structure .28 From 1992onwards the company focused on 'creating value for customers', highlighting its commitment toexcellence for customers and internally helped employees to renew their devotion to customersatisfaction.

LG Electronics Inc. is a Korea-based manufacturer specialized in the provision of electronicproducts. The Company mainly operates home entertainment division, which provides liquidcrystal display (LCD) televisions (TVs), plasma display panel (PDP) TVs, LCD monitors, as well asaudio, video and security equipment; mobile communications division, which provides mobile

terminals, tablet personal computers (PCs) and network equipment; home appliance division,which provides refrigerators, washing machines, microwave ovens, healthcare equipment,cleaners, water treatment machines and others; air conditioning and energy solution division,which mainly provides industrial and household air conditionings, as well as other businessdivision. It also involves in the light-emitting diode (LED) business, optics solutions business,vehicle components business and others.

History

LG Twin Towers where LG Electronics is headquartered

A company provides equal employment opportunity to allqualified persons withoutdiscrimination on the basis ofage, sex, race, disability, marital status or religion inaccordancewith applicable local, state andnational laws and regulations. Will makereasonable job
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accommodation for persons withdisabilities who can perform the essential functions ofthe position for which they are qualified and selected. Allemployment and promotion decisions will be basedsolely upon individuals qualifications, experience, andprior contribution anddemonstrated capacity to performhigher or improved levels of performance and will beinaccordance with the principle of equal employmentopportunity. Will take whatever affirmative

action isnecessary to attract and retain qualified persons

1958 1960

In 1958, LG Electronic was founded as GoldStar (Hangul : ). It was established in theaftermath of the Korean War to provide the rebuilding nation with domestically-producedconsumer electronics and home appliances. LG Electronics produced South Korea's first radios,TVs, refrigerators, washing machines, and air conditioners .[4] GoldStar was one of the LG groupwith a sister company, Lak-Hui (pronounced "Lucky")Chemical Industrial Corp. which is nowLG Chem and LG Households.

1970s 1990

In 1978, LG Electronics achieved a revenue of USD 100 million in exports, for the first time inits history. Rapid growth by globalization saw the company establish its first overseas

production, based in the United States, in 1982. In 1995, GoldStar officially adopted the LGElectronics brand and a new corporate logo. LG Electronics acquired the US-based TVmanufacturer Zenith . In 1997, LG Electronics made the world's first CDMA digital mobilehandsets and supplied Ameritech and GTE in the US. The company was also awarded ULcertification in the US .[5] In 1998, LG developed the world's first 60-inch plasma TV , and in1999 established a joint venture with Philips LG Phillips LCD which now goes by thename LG Display .

2000 present

LG Electronics plays a large role in the global consumer electronics industry. LG launched theLG Chocolate phone in 2005 and is the second-largest LCD TV manufacturer worldwide as of

2009. By 2005, LG was a Top 100 global brand, and in 2006 LG recorded a brand growth of14%.[6] Its display manufacturing affiliate, LG Display , is also currently the world's largest LCD

panel manufacturer .[7] In 2010, LG Electronics entered the smartphone industry. Since, LGElectronics continued to develop various electronic products, such as the worlds first 84 -inch ultra-HD TV and smart appliances.
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On December 5, 2012, the antitrust regulators of European Union fined LG Electronics andseveral other major companies for fixing prices of TV cathode-ray tubes in two cartels lastingnearly a decade .[8]

.

OBJECTIVES

To achieve the objective of the organization

Should be designed in such a way that healthy competition

effective co-operation among the workers is promoted.

Should aim at the best and the maximum use of the human resource available

Should aim at a good employer-employee relationship Should aim at employee

satisfaction Should protect the interest of the workers Should provide the opportunities for promotion to the workers.

OperationsLG Electronics has 5 business units and more than 110 operations worldwide, employing 82,000

people. LG Electronics owns Zenith and controls 37.9 percent of LG Display

ProductsLG Electronics' products include

televisions ,

home theater systems

, refrigerators ,

washing machines ,

computer monitors , smartphones .[1
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Televisions

LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes in 2014 .[11][12] LGElectronics introduced their first Internet TV in 2007, originally branded as " NetCast

Entertainment Access " devices. They later renamed the 2011 Internet TV's to LG Smart TV when more interactive television features were added, that enables the audience to receiveinformation from the Internet while at the same time watching conventional TV

programming .[13][14]

In November 2013, a blogger discovered that some of LG's smart TVs silently collect filenamesfrom attached USB storage devices and program viewing data, and transmits the information

back to LG's servers and LG-affiliated servers .[15][16] Shortly after this blog entry went live, LGdisabled playback on its site of the video explaining how their viewer analytics work and closedthe Brightcove account the video was hosted on .[17][18] By December 2013 the page itself wasremoved from LG's website.

LG's remote uses Hillcrest Labs ' Freespace technology to allow users to change channels usinggestures [19] and Dragon NaturallySpeaking technology for voice recognition .[20]

Mobile devices

Mobile

LG G3 Metal black

LG Electronics manufactures a wide range of smartphones and tablet devices .[21] Other thanthe G3, LG officially unveiled the curved smartphone, G Flex, on October 27, 2013. LG hasreleased it in South Korea in November 2013, and later announced releases in Europe, the rest of
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Asia, and North America .[22][23] At Consumer Electronics Show in January 2014, LG announcedan U.S. release for the G2 across several major carriers .[24]

Tablet

In 2014, LG revealed three new additions to the G series of tablets , each which will include LG'sKnock Code feature, allowing users to unlock devices with a series of taps. The tablets alsofeature Q Pair which allows tablets to sync up with a smartphones, and for phone calls and textmessages passed on to them in real time .[25]

Smart watch

LG and Google have announced an Android Wear - based smartwatch which is wearable on

June,2014. It was released along with the Samsung Gear Live and Moto 360 .[26]

In August, 2014,the G watch R which has a round face (similar to the Moto 360 ) was released .[27]

F itness and Activity M onitor s

LG has also created products for fitness and activity monitoring. The LG Heart Rate MonitorEarbuds send real-time biometric information via Bluetooth to a compatible smartphoneequipped with the free LG Fitness App. The LG Heart Rate Monitor Earbuds uses Valencells

PerformTek technology to capture heart rate and other biometric signals at the ear. [28]

Home appliance

LG HOMECHAT

LG manufactures and sells home aplliance products such as refrigerators, washers and dryers,vacuum cleaners, kitchen appliances, and residential air conditioners. In June 2014, LGElectronics also announced the launch of its smart appliances with HomeChat messagingservice in South Korea. HomeChat employs LINE, the mobile messenger app from Koreancompany ' Naver ', to let homeowners communicate, control, monitor and share content with LGs
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smart appliances .[29] Users can send simple messages, such as "start washing cycle," in order tocontrol their washing machine .[30]

FEATURES

A personnel policy should reflect good practice, be written down, and be communicatedthroughout the organization

Should be clear, precise and easily understandable

Should not be rigid, it should adapt to changing circumstances

Should be responsive to the prevailing situation and environment

Must be two way communication- between the management and the workers so that the

latter are kept informed about the latest development

It should support all the concerned parties

The work of HRM in company

Policy Statement

A company expects its employees to achieve and maintain ahigh standard of ethics, professional

conduct and workperformance to ensure the Company maintains its reputationwith all internaland external stakeholders

Objective

To enhance reputation as a quality service provider and anenjoyable, stimulating and challenging place to work

Application

The policy will be seen to be successfully applied when allemployees are seen to perform their

duties professionallywith skill, care and diligence.This includes: observing policies and procedures

treating colleagues with courtesy and with respect for theirrights, duties and aspirations

employees who do not conform to this standard of conductwill be subject to disciplinary actionas detailed in this manual
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FUTURE DIRECTION

Recruit talented employees with global competitiveness and secure business competitiveness

through job rotation

Strive for continuous HR system improvement and motivate employees with HR operations

efficiencyPiotr Grygo/LGEWR (Wroclaw, Poland)Our Performance

1.4% Percentage of female executives (Korea)

58% Percentage of overseas employees

85 Average training hours per employee

Those who develop their capabilities continuously and compete with integrity. Those who promote teamwork and work with creativity and autonomy Those who are fully committed to the LG Way and possess strong execution skills Those who are inspired to become best in the world with passion Those who always put customers first and never cease to innovate

HR POLICIES

The Human Resources Policy and Procedures Manual have been developed to facilitate theimplementation and clearly define policies on human resource management. The Manual

provides guidelines to be followed in the administration of these policies, and assists allemployees in defining who is responsible for each human resource management decision, andthe correct procedure which is to be followed. The policies specified within are consistent withthose of best practice management principles. They have the full support and commitment ofmanagement. HR policies must be kept current and relevant. Therefore, from time to time it will

be necessary to modify and amend some sections of the policies and procedures, or for new procedures to be added. Any suggestions, recommendations or feedback on the policies and procedures specified in this manual are welcome. This should be provided by email. These policies and procedures apply to all areas of operations within and related entities .Hr policy isset of rules that define the manner in which an organization deals with a human resource or

personnel related matters .An hr policy is a commitment of an organization to act in a specificway while dealing with its employees.


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Recruitment and selection of employees

Placement of employees

Training and development ofemployees

Performance appraisal of employees

Motivating of employees

Promotion and transfer of employees

HUMAN RESOURCE RECRUITMENT & DEVELOPMENT

LG Electronics utilizes a variety of recruiting channels to secure top-quality global talent. Onceemployed, they are given many opportunities throughout their careers to make use of lifelongeducation resources and develop into global business leaders.

International HR Recruit Activities

LGEs annual recruitment events have been holding in universities in Korea and overseas. Inaddition, LGE is actively pursuing various recruitment activities such as career development

consulting and LG Techno Conference to acquire outstanding individuals throughout the world.LGE cooperates with universities through the Industry-University Program and at the same time,actively engages in recruitment activities for outstanding R&D individuals. As for the long termgoal, LGE plans to increase its current recruitment ratio to acquire diversity as a globalenterprise.

Overseas Employee Adaptation Program

When sending employees to an overseas subsidiary, LGE provides a training program involvingwork, language, culture, and leadership so that the employees can communicate with locals. Inaddition, LGE assigns these employees a project relevant to the country prior to sending theemployee to that country, or sends the employee for a short period of time before permanentassignment to support fast adaptation and increase professionalism.


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Develop Specialists Corresponding to the Training Roadmap

LGE conducts various training programs based on the corporate wide training roadmap. Basedon the results of the capability evaluation conducted each year, LGE implements a priorityhandling training program for all employees, designed for each employees job. In addition,LGEs Global e -Learning program was expanded and LGE provides a specialist fostering

program for each task and an individual capability development program for all employees.

Global Talent Training Programs

LGE has developed local training programs and has been actively making efforts to foster andrecruit local professionals. LGE provides the HR Fostering Program through the Pyeongtaeklearning center and 6 overseas learning centers (Brazil, Singapore, India, China, France, andUAE). In particular, LGE has developed a mandatory Global Training Program and provides thesame course to all LGE employees throughout the world. This is LGEs initiative t o strengthenLG Way Leadership and to provide a uniform leadership fostering program to every employee.LGE provides a specialist training program for each job category, a specialized program for thedifferent position levels, and in the case of Korea, LGE also provides in-house and externalMBA programs through cooperation with leading universities in Korea.

performance appraisal

During my stay at HQ for the In-Nation Service Employee (ISE) High Potential Individual Pool(HIPO)HQ Job Assignment/OJT Program, I was deeply impressed by the work our colleaguesfrom HQ HR Team had put into preparing this program. My initial concern was the possible

language barrier but fortunately, I didnt have any problems thanks to the language fluency of thewell-trained HQ staff and outstanding interpretations, which are great examples of LGElectronics capacity as a global corporation. The training was a great opportunity to networkwith High Potentials from across the world and to have direct communication with thecompa nys leadership. Through the program, Ialso realized that LG Electronics has a strong

belief in the overseas employees.


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Our Approach

Secure quality talent and foster them with

systematic HR management

Motivate employees with merit -based evaluation/reward

Implement HR system tailored to global talent

Employee Transfer Policy

1. GENERAL

This policy provides the procedure for transferring employee from one project to another one.

2. SCOPE :

A Transferred employee data should be maintained in the personal file of an employee andshould have a clear history of his working during the job with the company.

3. PROCEDURE:

Transfer dates should be arranged through the departments involved with HR & Operations.

There should be at least two DAYS notice by GM/manager before a date of transfer. Thereceiving department (to which an employee is transferring) initiates and submits an JoiningLetter Confirmation for Transferred Employees

Step 1. Authority should inform HR personnel officially for the transfer of any employee.

Step 2. HR should forward the employee clearance form to the relevant (previous) manager for

the clearance of his employee.

Step 3. After receiving clearance form from the previous manager of an employee, HR shouldmake a Joining letter confirmation form (HRD/FRM#046) and forward to the new manager of anemployee along with the copy of the clearance sheet for his records.

Step 4. New manager should make his comments on HRD/FRM#046 and send it back to HRdepartment.Step


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5. HR should file the joining letter confirmation in the personal file of an employees.

Systematic HR Development based on Training and Development Program

1. Development Program

At LG Electronics, employees are required to establish their own Career Development Program(CDP) along with annual performance targets. Based on the CDP, employees have One -on-OneCaring interview with their managers to receive any support they need to follow through withthe plan. Under the system, employees choose their own career system, employees choose theirown careering required for the chosen track, and map out detailed action plans based on thecareer development roadmap standardized for each business function. As an outcome of thismeeting, LGE designs a career development and training plan appropriate for each mem andtraining plan appropriate for each memes and support needed to achieve established objectives.

One-on-One Caring interview is objectives. One-on-One Caring interview is ensured to receivetraining support based on ensured to receive training support based on ensured to receive trainingsupport based on age ment issues.LG Electronics identifies employees who have great potentialas business leaders at early stages of their careers and put them through a systematic training

process to foster the min to business leaders, function leaders, and experts depending on theirrespective development tracks. We carefully monitor the course of employees developme nt andencourage employees to progressively expand their capacities through job rotations, particularlyto ensure that employees do not particularly to ensure that employees do notion or business. LGElectronics operates a career development management program in conjunction with the

performance evaluation process for all its office employees. All LG E members have regularOne-on-One caring members have regular One-on-One caring dividual development goals,including detailed training plan. As an outcome of this meeting, training plan. As an outcome ofthis meeting, ing plan appropriate for each member's needs and also discusses their grievances aswell as and also discusses their grievances as well asand also discusses their grievances as wellasand also discusses their grievances as well assupport needed to achieve established objectives.

2. Functional Training System

In order to foster top class experts in diverse2. Functional Training SystemIn order to foster topclass experts in diverseof its 12 business functions and offers 713 training programs taught byinternal experts. Employees undergo required training based on their CDP and must complete atleast two credit hours per calendar year. Credits from the training are reported to the HR systemand reflected upon promotion. In addition to courses offered at the Business Function college,study group sand seminars are organized to promote professional capability ganized to promote


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professional capabilitytions such as R&D. We also provide additional credits to employees whoserve as instructors for internal training programs to promote for internal training programs to

promotenes leaders and Foreign Service Employee(FSE) candidates is implemented based on

theBusiness Leader Training Roadmap to develop Business Leader Training Roadmap todeveloptive training courses are determined based on candidates chosen career track. For ouroverseas employees, we established For our overseas employees, we established dard TrainingSystem and offer leadership/

Motivating Employees with Merit-based Fair

Environmental record

Motivating Employees with Merit-based Fairporate-wide process that governs its evaluation and

incentive systems for its employees. Our merit-based employee evaluation systemOur merit- based employee evaluation systemrate assessment and discriminatory rewardbased on merit. Wealso minimize the complexibility of the system (performance and capability evaluation) to makeit more accessible to employees. We also ensure that clear feedback on improvement points(performance and professional capabilities) is provided to employees based on the outcome ofevaluation to promote employees longer term development and contribution to organization

performance. In addition to regular evaluation, managers also addition to regular evaluation,managers also tion of their leadership to create a strong and sound organization. Our businessstaff is evaluated on individual Our business staff is evaluated on individual ership, while the

technical staff is assessed based on professional knowledge, teamwork ability, sense ofresponsibility, management ability and performance. Based on the out-come of employeesevalaution lg electronics rewards high performers with differentiated compensation in the formof raise/incentive compensation in the form of raise/incentive compensation in the form ofraise/incentivetion and staffing. The outcome of employeetion and staffing. The outcome ofemployeetiated compensation such as salary raise and regular/ad-hoc incentive bonuses. There isregular/ad-hoc incentive bonuses. There is employees, and we reward high performers withdifferentiated compensation based individual performance to motivate employees strong

performance. We also provide clear feedback and coaching to inspire excellent performance

eacross the organization.

In 2012, LG Electronics HQ and overseasIn 2012, LG Electronics HQ and overseasment theglobal HR system based on thestandardized process. HQ provided guidelineson key HR issues(i.e. leadership/performanceevaluation, acquisition of key talent, employee compensation salary ,incentives, and promotion and assigned dedicated support staff at each region. CorporateHR and subsidiary HR cooperated to review and revise the guidelines to suit local needs.


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Through these efforts, our global HR process was taken to the next level LG electronics alsomade a wide range of efforts to strengthen its training programs for to strengthen its training

programs for high potential employees programme form overseas subsidiaries In addition totraining opportunities through our integrated global training system we invited 60 high potential

employees to Korea on a job rotation lasting from three month to one year and provided anopportunities to train and work at related departments. We also invited 70 overseas employees toKorea and provided an opportunity to increase their pride in the company through a program comprised of training sessions designed to enhance participants understanding of LGEandKorea, production sites and LG Shop visits, and watching the performance Nanta.Additionally, we implemented a high mentoringprogram that partners each of the 233 potentialsfrom overseas subsidiaries with a Korean high potential as their mentor. The program enablesoverseas high potentials to receive the professional support they need and to form closerelationships with their Korean counter parts.

performance appraisal of employees

Since organizations exist to achieve goals, the degree of success that individual employees havein reaching their individual goals is important in determining organizational effectiveness. Theassessment of how successful employees have been at meeting their individual goals, therefore,

becomes a critical part of HRM. This leads us to the topic of performance appraisal. Peoplediffer in their abilities and aptitudes. These differences are natural to a great extent and cannot be

eliminated even by giving the same basic education and training to them. There will be somedifferences in the quality and quantity of work done by different employees even on the same

job. Therefore, it is necessary for management to know these differences so that the employeeshaving better abilities may be rewarded and the wrong placements of employees may be rectifiedthrough transfers. The individual employee may also like to know the level of his performance incomparison to his fellow employees so that he may improve on it. Thus, there is a great need tohave suitable performance appraisal system to measure the relative merit of each employee.

Performance Appraisal is an integral part of Human Resource Management. And HRM deals

with personnel i.e. people. people is the most important and valuable resource that everyorganization or institution has in the form of its employees. Dynamic people can build dynamicorganization. Effective employees can contribute to the effective of the organization.

HRM has multiple goals, which includes employees competency development, employeesmotivation development and organizational development. Employees require a variety ofcompetencies, knowledge, attitude skills in technical areas, managerial areas, behavioral and


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human relations areas and conceptual areas to perform different tasks or functions required bytheir jobs.

HRM aim at constantly assessing the competency requirements of different individuals to

perform the jobs assigned to them, effectively and provide opportunities for developing thesecompetencies. As HRM deals with humans it is necessary to keep a check on their performanceafter a regular interval of time given jobs, it is necessary to corrective actions them or there isneed to appraisal their performance. The process appraising for doing their work effectively is than known as performance appraisal system. The system is defined clearly in this report.

The objectives of the project are:

1) The main objectives of the study are the throw the light on the different policies/ techniques ofthe performances Appraisal system of the LG Company.

2) To show the implementation of the appraisal methods used to get the information about the performance.

Opportunity & Challenge

CUSTOMER VALUE

Based on our basic conviction that the customer is the reason and purpose for service, we striveto enhance value for customers. We firmly believe that customer value should take priority in allcorporate activities and that companies which fail to do so will find it difficult to survive. Withthat in mind, all systems and policies at LG Electronics are decided from the customersstandpoint. At LG Electronics, customer service is not merely the responsibility of the relevantdepartment but recognized as an objective of the entire company. We have adoptedcompanywide systems and processes for customers benefit including measures for protection of

personal information, grievance handling, prompt after-service and customer communication.We are making multifaceted efforts to develop innovative products to enhance quality of life and

to ensure safe and convenient usage of our products.

EMPLOYEE VALUE


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LG Electronics is working to secure world-class competencies to join the global top 3. Under ourdefinition of level 5 capability, whichrefers to the levels of global corporations such as GE andToyota, various forms of support are available to every member of theorganization. We believewe will become a truly global enterprise by creating a setting in which competent and motivated

people canperform to their fullest and derive satisfaction from their performance. Building apeople company where talented people are giventhe opportunity for self -development is vital toattaining our vision. At LG Electronics, individual employees are working to enhancetheirmarket value by carrying out their work in the best possible way with a view to becomingthe worlds best. Their efforts are supported bythe companys extensive training program whichgives individuals the chance to develop their abilities and gain global experience.

ENERGY & CLIMATE CHANGE

Voluntary initiatives to reduce greenhouse gases and address climate change are helping to shapeLG Electronics into a greencompany. As a company with 36 production facilities around theworld, we are guided by an environmentally-friendly vision andstrategies befitting a globalenterprise. We set up a greenhouse gas inventory starting with our plant in Cheongju to monitorour emission levels. Moreover, we are enhancing production processes and developingtechnologies to curb greenhouse gas emissions.Life cycle assessments are undertaken to assessemissions throughout a products life cycle. After broadly classifying emissions intothe

production and usage stages, we found that more than 80% is attributed to product usage. We

recognize that raising energyefficiency of electronic products could be the most effective way to provide economic benefits to consumers while curbing globalwarming. Regions such as the EUare tightening regulations on energy efficiency and standby power. Keeping in step withsuchregulatory trends, LG Electronics is continuing with R&D to acquire the highest grades ofenergy efficiency for its products.

Overview of LG Electronics

LG Electronics is largely divided into 22 units. On the domestic side, there are four businessunits, the marketing division, and sevenfunctional divisions in the head office. The overseasnetwork consists of seven regional headquarters and three functional areas(support, R&D,design).There are seven business sites (in Pyeongtaek, Cheongju, Changwon, Gumi) under thefour business units. The overseas operationsinclude 36 sales subsidiaries, 22 productionsubsidiaries, eight product sales subsidiaries, five service subsidiaries, and branch offices.


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Placements

JOYFUL Working 5 or JW5 is the mantra by which LG employees live. Based on five factors;stress, communication, leadership, target setting and working hours, the idea is to eliminate theexisting issues pertaining to the above factors and bring fun at workplace.

So, it is a small wonder that employees, who report at 8.40 a.m., begin their day with exerciseand yoga, bracing up for eight hours of fun at work. The recruitments at LG takes place directlyand through campus.

A career at LG will allow you to realize your dreams. We offer the "Right People" greatopportunities for growth and sure rewards for exceptional performance.

On Campus hiring

On Campus hiring is for both engineers and management trainees. A total of 50 colleges are onthe panel of LG. Last year the company visited 35 campuses to hire 130 freshers. These areMTech and MBA students.

The engineers area of specialisation varies from mechanics, electrical, to other fields. Werecruit students from varied institutions in order to accommodate a broad spectrum of

background and cultures, says Umesh Kumar Dhal, Head, HR and Management System.

Engineers without Masters degree are not considered at LG. We need engineers with in depthlevel of technology who can contribute in research and technology transfer from Korea, Dhalapprises. The hiring process starts from August for both the lines of requirement. Right now mydepartment is busy hiring, says Dhal. The students presented with offer letters in August, 2010will join onboard from July 2011. The induction programme usually begins on July 1, each year.

Students are selected on the basis of group discussion, after which they have to appear in psychometric test, followed by one round of interview and conclude with another round of personal interview. They are given offer letter on the campus, Dhal says. The factors assessedin the interview are students degree of intellectual awareness, drive fo r performance, levels ofadaptability, ownership and passion. To sum up, its the attitude, aptitude and field knowledgethat is evaluated, says Dhal. This year LG plans to recruit a little over 100 candidates.


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Our Performance

LGEs Efforts to Secure Qua lity Talent Based on the conviction that the driving force behind thecompanys growth is its people, LG Electronics continuously works to find and acquire quality

talent with a wide range of recruiting activities. As part of our efforts, we tour universities to hostrecruitment event and provide career counseling to students of recruiting activities. As part ofour efforts, tour universities to host recruitment events and provide career counseling to studentsalso have diverse open recruiting programs in place to discover quality talent on an ongoing

basis. Our talent acquisition efforts extend to overseas as well; every spring, top executives fromLG Electronics participate in the Techno also have diverse open recruiting programs in place todiscover quality talent on an ongoing basis. Our talent acquisition efforts extend to overseas aswell; every spring, top executives from LG Electronics participate in the Techno efforts to securequality talent based on mid to long term HR requirements. In 2013, we plan to further strengthenour talent acquisition efforts with diverse recruitment activities.

Advertising

in business is a form of marketing communication used to encourage, persuade, or manipulatean audience(viewers, readers or listeners; sometimes a specific group) to take or continue to takesome action. Most commonly, the desired result is to drive consumer behavior with respect to acommercial offering, although political and ideological advertising is also common. This type ofwork belongs to a category called affective labor.

EQUAL EMPLOYMENTOPPORTUNITY

A company provides equal employment opportunity to all qualified persons withoutdiscrimination on the basis of age, sex, race, disability, marital status or religion in accordancewith applicable local, state and national laws and regulations. Will make reasonable jobaccommodation for persons with disabilities who can perform the essential functions of the

position for which they are qualified and selected. All employment and promotion decisions will be based solely upon individuals qualifications, experience, and prior contribution anddemonstrated capacity to perform higher or improved levels of performance and will be inaccordance with the principle of equal employment opportunity. Will take whatever affirmativeaction is necessary to attract and retain qualified persons.


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LG HUMAN RESOURCES

LG Electronics creates working environments that enable its employees to demonstrate theircapabilities, focus on their work, and create value for their customers. Employees are encouragedto take a creative and individual approach to challenges, with a strong emphasis placed on

performance and skill and equal, merit-based opportunities across the board.

HR PRINCIPLES

CREATIVITY AND AUTONOMY

An individual's creativity is the basis for value creation. LG Electronics respects diversity andautonomy, allowing each of its employees to exercise their creativity to the full.

COMPETENCE

Competence is the cornerstone of performance and thus we take competence to be the mostimportant factor our personnel decisions.

PERFORMANCE-BASED REWARDS

Rewards based on performance are essential for motivation. LG Electronics evaluates performance results fairly and rewards them accordingly.

EQUAL OPPORTUNITIES

Equal opportunities build trust among people. LG Electronics ensures equal opportunitiesregardless of gender, race, age, religion, or nationality.

LONG-TERM PERSPECTIVE

Maintaining a long-term perspective is the foundation for LG's human resource policies. LG'shuman resource programs are designed with a long-term perspective and implemented withdedication and persistence.


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TRAINING

Through its education centers worldwide, LG Electronics offers diverse educational programs to

its employees. These opportunities are accorded by rank and job to encourage growth anddevelopment to instill the professional capabilities theyll most need, such as enabling them toapply the latest technologies to their work.

REWARDS

LG Electronics employs a competitive, unique rewards system that takes account of employeeworking situations by nation, region, and job. This rewards system motivates employees to

perform better by helping enhance their quality of life.

Differential advantages

Fast innovation as a competitive advantage:

LG wants to make peoples lives richer, easier and better. Our goal is to put a smile on all ourconsumers faces. Smart technology enables consumers to do things more easily andexperience things more pleasurably. Consumers expect LGs products to contain the worldsmost advanced technology, and that our hardware and software have been perfected. In addition,they expect LG products to work in ways that are simple yet smart. (LGE Annual Report,2010)

LG has set extremely high innovation goal, the company is aiming for a target of 30% more thanwhat its competitors can do, this also means 30% more sales and increased market share. Thismakes LG up to 3 years ahead of competitors in terms of technology.

Core Capabilities:

Here LG goal is to offer technol ogies that suits peoples needs, as it stated on its annual report the core goal of our product development processes is to create technologies that enrich peopleslives. It flows directly from LGs guiding principle of creating harmony among people. Innovation flourishes best when it anticipates or answers a need that enriches peoples lives. Wecreate products that help people get more out of life, have more leisure time, and experience


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more pleasure. We do this by always understanding their needs and continually surpassing theirexpectations. (LGE Annual Report, 2010)

LG retains its customers by providing them with long term warranties (10 years) covering thecore technologies such as its washing machines. Its innovative technology brings trust to itsconsumers by bringing the worlds smartest largest capacity washing machines in the market. Atthe end of 2010, it launched an 11kg washing with a new and innovative damping system andfixed outer tub. Beside the innovative technology, LG washing machines and the other productline of home appliances fits perfectly into consumers lives, the company combines both productdesign and simplicity that appeal to the consumers sophisticated taste. They also have a specialseries of washing machines with a line of photo-etched design with various colours that attractmost consumers and especially young housewives whom are attracted to this stylish design withthe pleasure of touching the products sharp technology and features that makes everything idealand easy to use. (LGE, 2011)

Marketing Resources:

LGE relies on the loyalty and trust of its customers and this trough efficient communication toolswith the cooperation of many famous companies worldwide like Best buy. The company was thefirst brand to sponsor the 1999 World Cup of Cricket and also in 2003.

LGE Introduces its new products using contemporary communications tools like TVcommercials, Radio, Internet and billboards in order to create more brand awareness in manycountries. The company has 10000 traders worldwide and more than 47 branches, and this play

Human Resources:

LGE offers diverse educational programmes to its employees trough learning centersworldwide, it focuses on favourable working environments that let its employees demonstratetheir capabilities at full. It also focuses on individuals creativity to create value respectingdiversity of skills. It rewards its employees based on performance, create equal opportunities

built on trust among people without considering gender, race, age, religion or nationality, andthus creates motivation and commitment.


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FACTOR AFFECTING HRM

Most employed people seriously consider a transfer at least once during their career. The newenvironment they encounter when embarking upon a career straight after graduation from collegemay not be compatible with the ideal they have imagined. In addition, work that is repetitive, and

the working habits they acquire while building up a career are also factors that must be taken intoaccount when co nsidering a transfer. Notably, in todays competitive society, employees areoften tempted in considering transfer after receiving an offer from a scout promising highersalaries that are commensurate with their merit and capacities. According to data released byStatistics Korea recently, the period that workers in the youngest group (aged 15 29) spendwith their first employer amounted to one year and seven months, with 28.5 percent of them,which is quite high, quitting after six months or less. The te rm lifetime employment soundsrather anachronistic nowadays.

Despite the recent global economic recession, the demand for IT professionals reportedly

remains high. However, the IT industry always posts a higher turnover rate than other industries.For instance, more than 10 percent of employees at Facebook, an SNS provider that has seenrobust growth in the past two to three years, were former staff of Google. Many othercompetitors are reportedly racing to scout employees from Google, dubbed the hub o f corehuman resources in IT. Amid this situation, Google is scrambling to prevent its core humanresources from leaving. For instance, Google reportedly increased the salary of all staff by 10

percent, and paid them an extra bonus of $1,000. The situation in Korea seems to be no different


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from that in the U.S. According to the employment trend of SW industry manpower releasedrecently by the Korea Information Society Development Institute, demand for human resourcesin the SW sector and for IT manpower in advanced countries was rising in 2012. Due to globalcompanies HR practice of focusing on employees capabilities, some core IT human resources

in Korea are also moving overseas, including Silicon Valley in the U.S.

Customer Focus

We provide the highest quality, safe, reasonably priced service to all our customers, improvingquality of life in the areas we serve. We anticipate and meet the needs of both our external andinternal customers.

Aim

To achieve returns of 4% p.a. above inflation over rolling 5-year periods. Negative returns expected 3.7 out of 20 years .

Suited to

Those looking for reasonably high returns and prepared to accept potentially modest to

significant fluctuations in returns over shorter periods.

Specific objective of LG Action:

i. Raise awareness among LGs in the EU27 on their powers for change, their responsibilityand key role to drastically reduce GHG emissions in their corporate and community sector.

ii. Mobilise LGs to link up to and influence European and international (UN) climate

protection processes (including the European Covenant of Mayors) and to contribute to aEuropean framework and the global climate negotiations,

iii. Identify and develop European LG Positions that can feed into national, European andinternational climate and energy dialogues.


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iv. Assist national-LG and European-LG dialogue with national governments, to improvecommunication and recognition / support for local climate action, in the view of implementingthe EU climate and energy objectives.

v. Conduct advocacy at a national, European and international level to gain recognition forthe essential role LGs play in the climate and energy debate. Use the COP 15 event in 2009(where the post-2012 international climate negotiations will be concluded), and the COP 16 in2010, to present the European LG Position(s) and update the situation of EU27 nationaldialogues.

Earning rates

Year ending 30 June Accumulation accounts

% p.a.

Pension accounts

% p.a.

2014 12.30 13.89

2013 13.95 15.21

2012 1.62 1.82

2011 11.59 12.80

2010 9.43 10.43

5-yr avge % p.a. 9.69 10.72

5-yr avge % p.a. over CPI 7.04 8.07


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Global Operations

LG Electronics plays an active role in world markets with its assertive global business policy. Asa result, LG Electronics controls 114 local subsidiaries worldwide, with roughly 87,000executives and employees.

Product development

The LG brand is made of four elements namely values, Innovation,PEOPLE, and PASSION.Positioning Statement given by LG in this regard is focusing on the objective of strengtheningthe customer s life and lifestyle with pride of ownership, , amazing feeligs, extraordinary perfor -mance.In order to manufacture the products with style and the most highlyvalued technology, LGElectronics has heavily invested in Research & De-velopment (R&D) following the Total QualityManagement (TQM) ap-proach in all areas including Production, inspection, Quality Assuranceand Design centres etc. As claime d by LG Our R&D is driven by thedreams of our customers ,

Designing and R&D is the core area which is directly related to the emotions, feelings andexpectations of the custom-ers.By bringing innovation and creativity to all business processes in-cluding manufacturing, sales, marketing, advertising, branding and brandrelated strategies, LGhas transformed this digital world into the addedvalue for the consumers lives.LG has involved itsDesigners in decision making by empoweringthem for bringing innovative ideas and bestdesigners efforts areacknowledged by awarding them with the titles like "Super Designer"etc.thus promoting the activity of designing and innovation. Design efforts/contributions of LGhas been appreciated by the world renowned design organizations and honoured LG with theawards in designing category in-cluding iF Design Award, Korea Good Design Awards, reddotDesignAward, the IDEA Award and Good Design Award Japan. LG is achievingthe innovation andcreativity milestones through 38 research labs aroundthe globe empowering it through smart technology

thus making its prod-ucts more intuitive, user friendly and up to the demands and customiza-tion.LG has introduced a new global brand identity: "Stylish design and smart technology, in products that fit our consumers lives." LG has bonded the Corporate Social Responsibility (CSR) withLGs brand building strategy (LG annual report, 2008). LG is also working on building its credibility, reputation, goodwill through this platform by contributing to-wards the society whichmay in turn will be helpful in attracting potentialclients and investors.LG believes and reiterates that giving back to the community canbring people together acrosscultures and continents. In this way LG has a trust building strategy of building a strong trust

bond with people and consumers (LG, 2008). LG has joined hands with stakeholders both globally and locally which include employees, shareholders, customers,local communities,organizations (NGOs), non-governmental and non-profit organizations (NPOs). LG has

sponsored, helped, and participatedvoluntarily in all programs focusing on social welfare,educational andcultural purposes. It has also supported the poverty relief efforts. Lghasdone allthese efforts throughout the world. LG Electronics sponsored and jointly participated in activitiesincluding Environmental SustainabilityPrograms, sponsoring the global environmentalconference in collabora-tion with United Nations Environment Programme (UNEP),GlobalFamineAlleviation by providing meals and medical services for World Food Pro-gramme (WFP)in Kenya and Ethiopia and Volunteer & Community Activi-ties.Being the global brand, LG


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Electronics is concerned about the envi ronment and has set trends through voluntary green ho use gasemission

LG Performances

Open CommunicationCommunication is a key element of LGEs corporate culture, and is essential to accomplishing our vision of being the World Best at Enriching Lives through Innovation . Opencommunication between team leaders and individual work units helps everyone to take pride inour shared accomplishments, and motivates employees to complete each job to the best of theirabilities. In 2009, the CEO held communication meetings eight times every month, in which theCEO could interact freely with employees. These meetings served to share our corporate visionand strategies, and provide guidance on individual work duties.

Employee Counseling

LGE provides free access to psychologists and counselors, with the aim of helping employees toresolve any personal or work-related difficulties they may have. In 2009, the corporateestablished corporate counseling centers in Seoul and Pyeongtaek, in addition to three branchoffices. Each facility is staffed by independent, outside professionals. As of year-end 2009, LGEhad developed a two-week in-house counseling education program, and used it to train in-housecounselors.

Our Performances

Global Campus Recruiting LGE holds annual recruiting seminars at universities in Korea, andconducts semi-annual recruitment tours of business schools, engineering schools and graduate

programs in North American, Europe and Japan. Top candidates are offered door-to-doorconsulting service to make their transition to life in Korea go more smoothly. Global Internship /Co-op Programs We operate a global summer internship program that pairs LGE staff withKorean students studying at overseas universities to carry out joint projects. The students get theopportunity to apply the theory they learn in classes to real-world R&D and business activities,and to become exposed to LGEs corporate culture. The corporate also accesses quality R&Dtalent by carrying out periodic exchanges of personnel and technology with Korean and foreignuniversities. Specialty Development Programs The job training programs offered to LGE staffare custom-tailored to each employee, based on annual performance evaluation results. We also

provide employee development programs at the Company level. Global Manpower Training


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Programs LGE operates domestic and overseas Training Centers in Korea and overseas (Paris,Sao Paulo, Singapore, Beijing, Nanjing, Dubai, and India) that serve as the focal points of thecorporates HR development programs. Using our Learning Net intranet facilities, the Centerscoordinate education

programs, online education, foreign language courses, book learning and special lectures.

FUTURE DIRECTIONS

To benefit from the widest range of talents, LGE views the entire world as its recruiting pool. We use micro blogging to enable easy communication and information exchangeamong our global workforce, and we are studying ways to apply innovative web 2.0 tools

to personal study and new-hire job training in the near future.Internalizing innovation culture

Internalizing the LG Way at overseas work units Acceleration of Waste Elimination activities

MODES OF ADVERTISING

Television advertisementTelemarketingPosters and bul letin boards

M agazines

APPLICATION PROCESSLG Electronics implements a standard recruiting process in all of its global operations .

Small variations in the recruiting process may be found depending on local employmentconditions, such as the local labor market (industry, average retirement age, etc.), and local laborlaws and regulations relating to recruitment.In some countries, an additional stage may be addedto the recruiting process, such as with the administration of aptitude and attitude tests.


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Assessment centre: These exercises are designed to stimulate the type of workwhich the candidate will be expected to do .

Graphology test : To examine the lines ,loops ,hooks,strokes ,curves in the persons personality

Selection Interview :The interviewer matches the information obtained about the candidate for the job andthrough his own observations during the interview.

Medical examination:

Certain jobs require physical qualities like;perfect hearing,unusual stamina,tolerance ofhard working conditions,clear tone etc.

Selection Practices

Arthur Anderson:The company conducts critical behavioral interviewing which evaluatesthe suitability of the candidate for the position ,largely based on his past experience .

It uses extensive psychometric instruments to evaluate short listed candidates.

The company uses occupational personality questionnaire to understand the candidates

personal attributes and occupational testing to measure competencies.

Industry trends

The Society for Human Resource Managements new HR Technology Survey highlights the following key findings for the industry:

Expanded use of the web for delivery and utilization of HR applications on a service basis

The majority of HR professionals surveyed said their organization did not have anemployee self-service component built into its HR technology system.


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Innovative HR practices of LG Electronics India

In order to give the organisation a competitive edge LG streamlined the whole system byintegrating the HR fundamentals with Information Technology and have adopted some unique

practices.

1. LG has a On-Line Recruitment Management System. Under this prospective candidates visittheir website and directly register their CV as a result duplication of CV is immediatelyidentified and not accepted. This process speeds up the whole process as it does initial screeningof vital parameters like age, qualification, experience etc.

2. LG has come up with unique concept of Pizza Meetings where the whole departments meet upfor Pizza Treat and discusses issues in an informal setting.

3. LG has a help desk facility for their employees to help them overcome every aspect of their professional problems.

4. The Blue Collar employees are given English coaching classes and at the end of every monthone employee gives speech in English in front of MD and gets an incentive for the same.

5. LG also has a family ambassador programme where dedicated mentor goes to the workershouse ans talks to the family their problems and tries to make their situation better.

6. LG has a unique Joyful Working 5 programme. It is based on 5 key factors associated withevery job Stress, Communication, Leadership, Target setting and Working hours. JW5 helped in

eliminating the issues related to these factors and bringing fun at workplace.


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Conclusions & Recommendations:

The Indian Consumer Electronics & Home Appliances Industry is traditionally dominated by theinferior quality and sub-standard products. People go for price while buying home appliances.They seem unaware of the features needed in a standard white good. Earlier mostly the whitegoods are manufactured to cater the present defined demand are need. The whole scenario gotchanged in the post liberalization era with the entry of multinationals like Samsung, LG, andSony etc. LG is among the great chaebols (confederation of small industries) from Korea. Ithas started its operation in India in May 1997 by opening a 100 % fully owned subsidiary. LG isa company positioned as manufacturer of innovative and world-class products. Its growthstrategy is based on sales and distribution network. It has penetrated in 1800 town with

population of 1 lakh and above. They are planning to expand their dealer network to over 3000dealers by the end of 2002. They are planning to penetrate towns with 50,000 populations andabove. It means 7,000 more towns in its network. They have maintained a fast pace of growthsince their entrance in the Indian market. It has products in the categories of CTV, WashingMachines, Refrigerators, Air conditioners and Microwave Ovens. It has established a strong

brand name standing apart in the consumers mind. In the beginning of 1999 a survey by Taylor Nelson depicted LGs brand awareness at around 49 %, the Gall -up Survey conducted duringCricket Worl d Cup 2002 demonstrated LGs brand recognition at 85 %. It has invested 100mnUS $ in the manufacturing facility and is planning to invest US $ 289 mn over the next 3 yearsand is also planning to export product worth 100 mn US $. LG believes in honest pricing and not

being gimmicks of discounts and price reduction as lure. Their strength of marketing isconsumer pool, good products and pricing power.

Its product designs are centred on the middle & upper class and the ads screened highlight the product features.

Its employees are totally committed to quality and innovation. They chant TPI 50 and TDR ,which signifies, total productivity innovation and tear down re-engineering. Through this methodthe company is bringing down its costs & developed new products.

LGs corporate image is that of being the Digital leader of the new millennium.

Marketing

v In case LG intend to have an entire range of washing machines to cater to all segments of themarket, it should have a smaller capacity washing machine as Videocon ( 3 Kgs etc ) as themarket for them is still very large.

v The colours of LG Semi Automatic Washing Machines (Off White, Pale Beige, and LightGrey) are very trendy and appeal to the customers.


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BIBLOGRAPHY

www.Google.com

www.wikipedia

new hrm project.docx

Documents