Table chairman Byung-Chull Lee started a business

Table of Content


Introduction: Background of Organizations. 2

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Sony. 2

Samsung. 2

Centralization & Decentralization. 3

Sony is centralized or decentralized?. 4

Samsung  is centralized or decentralized?. 4

Work specialization. 5

Sony. 6

Samsung. 7

Span of Control 8

Sony. 9

Advantages. 9

Disadvantages. 9

Samsung. 10

Chain of Command. 11

Line of Authority. 11

Staff of Authority. 11

Sony. 12

Line of Authority. 12

Staff of Authority. 12

Samsung. 13



Group Report…………………………………………………………………………………………………………………………………………19


Introduction: Background of Organizations



Sony was formed by 2 Japanese man Masaru Ibuka and Akio Morita on 7th May 1946. They worked together in similar approach to invent new and unique product to satisfy people needs. The company showed massive growth of $60 billion and became global organization (Yanyong91, 2011)


It develops, design, manufacture and sale various types of electronic goods in consumer. Industrial and professional market, including game console and software. The Company’s production includes Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound, Devices, Pictures, Music, Financial Services and All Other (



 On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea. Samsung electronics was established in 1969 in result of division mammoth Korean chaebol. Reason behind division was to produce and up bring the consumer electronics industry. In initial days, they come up with simple and small black and white television which result in success due to sales in early 1970s. following the success Samsung electronics gradually developed a diverse line of consumer electronics. The legacy continues and Samsung delivers the market with colored television and other appliances by 1980s, they started exporting, manufacturing, selling and shipping wide range of electronics goods. (Samsung, n.d)


Source: (Samsung, n.d)

In recent days, Samsung is one of the leading electronic industry by producing smart phone series known as galaxy, printers, LED’s, construction machines etc.


Centralization & Decentralization


Every organization success is based on decision making. To run organization authentic measure that are decisions and strategies to be made where line of authority should be designated accordingly where who will make decisions? It is further classified into two categories centralized and decentralize organization structure


1)      The process by which decisions are made and approved by the top-level manager is known as centralization. For example: CEO, CFO, COO 

2)      The process by which decisions are made and approved by the lower-level managers is        known as decentralization. For example: Supervisors, Operation managers.

       (, n.d.)




Sony is centralized or decentralized?

Company’s decision making is centralized; however, they believe in their workers given them authority to invade new ideas and bring new innovations to the Sony. Emphasizing more on individual work Sony if individual brings new idea to business they are further allowed to develop them. (Sony, n.d)


Sony believes in zero discrimination policy and have worker protection right also known as human-rights-rules. To make their workers feel secure about jobs and working condition Sony deeply focus over their right. (Sony,n.d)


In centralized organizational structure, all decision is done by top level management that are CEO, CFO, COO etc. They are aware of all activities within their organization which help them maintain better control over activities with their organization further as fewer people are involved in decision making hence it help them maintaining privacy and secrecy for their organization. However, centralization involvers upper level management therefor it consumes time as compare to decentralized structure. Another drawback for centralization is it restricts workers from bringing new ideas and innovations which has negative effect over company development and worker don’t feel trusted therefore their motivation level also gets effected.

(, n.d.)


Samsung  is centralized or decentralized?


Samsung operates on centralization where decision is taken by top level management. Where the orders are made by office of chairman Lee filtering down to secretaries and then down the hierarchy with affiliate leaders. Hence, it has a strong and effective structure which is owner-centered. All decision is made by chairman and all authorities are accountable to chairman, responsibilities and accountability lies over the shoulder of chairman. At some stages decentralization is also considered by involving Samsung comprising of office of secretaries in which trained personnel are considered in the position of affiliates. The trust based relation and loyalty for the chairman is the key quality for selection. (UKessays, n.d)


In Samsung, the lower level of management is described to do their respective job in their specialized areas for example mobile phone manufacture will only work on mobile phone production line and chip maker will work on chipset only. All the authorities are under the command of secretary office where 40% of decisions are made by them, while chairman holds 20% but main decisions are in the hand of the chairman. Whereas office main function are finance and accounting, auditing, planning, public relations, and human resource management, including the hiring and firing of all executives within the organization. Even the important strategic decision and sizable investment decision must be examined by the office first. (UKessays, n.d)


Work Specialization

Work specialization also called division of labor. It allows manager to manage complex tasks by dividing them into precise tasks. Each employee is specifically trained for the assigned duty which help them perform more efficiently and effectively which help to reduce production time and wastage hence, increase in productivity can be measured and stable production can be maintained.  (, n.d.).


work specialization can be beneficial to organization that it would increase employee’s skills and reduce lead time and make production cost effective by achievement of economies of scale but it can be burden and can result in retaliation from employees as they might not be ready to accept new working conditions or trend. They might get bored doing the same job for long which can reduce their productivity due to increased stress.  (, n.d.).










The advantages and disadvantages are as follows:


Source: (, n.d)



Sony believe in employee empowerment that is, every employee ought to have the capability to practice their potential regardless of ability. There is no discrimination in employees either in terms of posting or treatment. Thereafter Sony builds agreement regarding contemplations from hiring stage while offering career fields in respect with individual characteristics and capacities.  (Sony, n.d).


Every employee in company is located respectively in terms of their abilities and located to their respective departments. For example, if someone is good at accounts is in accounting department, if someone is good at marketing is working at marketing section of the company. (Sony, n.d)


Source: (Sony ,n.d)

The diagram shows that number of employees from 2011 started to decrease till 2016, it is the result of work specialization as less worker can perform more task within less time.




Samsung Electronics focuses on sharpening the expertise of future-oriented employees in the areas of R, marketing, management, etc. Samsung electronics’ core empowerment is achieved by major training and self-coherence education of each business sector. They have three functional training centers, leadership development center that leads and spread changes, Samsung institutes of global marketing that enhances professional marketing human power and Samsung advanced technology training institute for professional engineering human power. (Samsung, 2017)


In Samsung, work specialization is considered as key to success. They hire employee and train them according to their desired ability and then they work on production line as per their given tasks. People who are good at marketing only works at marketing department, those who are in assembly line they only focus on production. Employee who have some amazing interpersonal skills are placed at customer service centers to understand the customer behavior and to satisfy their demand. The worker is set to work on their specialized skills in their department to make organized fully specialized so that less wastage and maximum quality output can be produced.

Samsung has their human right policy for their employers and employees, they make sure that all worksites are fully under inspection to cater long-short term problems to avoid any problem to their workers and to make them fully secured for which they have policies like educational and training, risk management-site inspection and monitoring. (Samsung, 2017)


The below stated image shows employee headcount of Samsung:


Source:(Ron Amadeo, 2014)


Samsung has highest number of employee as compare to Sony, apple, Microsoft and google as it has wider range of products and has more production line which all need specialized people.


Span of Control

Span of control means the number of people who reports to one manager in hierarchy. It purpose is to build connection between upper level to lower level management, who they will connect to each other in an association. Span of control are of two types:

Tall span of control: Narrow Span of control means a single manager or supervisor manages few subordinates. This gives rise to a tall organizational structure.
Flat span of control: Flat span of control means a single manager or supervisor manages many subordinates. This gives rise to a flat hierarchical structure. (Ravi Roy, n.d)


The example below shows the span control of 4 for marketing manager:

Source: (Ravi Roy, n.d)


Every management needs strategy, to make sure that company organization operates at its best. As a main worldwide organization, Sony has a flat span of control. A flat span of management leads to flat organization (Ghenea, n.d.).

Sony has made its workplace dynamic and diverse where its workers are given chance to speak up, which make them feel trustworthy and increased job satisfaction. This helps manager to make wise decisions. Sony has a good brand image and goodwill which they developed over a period and has gained customer satisfaction by their services and quality of product. Sony encourages their employees to keep contributing their full skills to the company.

Sony has a tall span of control which and which has advantages and disadvantages faced by them.


·         Increased efficiency and reduced cost

·         Quicker decision making

·         Greater flexibility

·         Higher level of job satisfaction



·         Less control

·         Possibility of lack of familiarity

·         Lack of coordination or synchronization

·         Conflicts with manager                     (Slideplayer, n.d)




Samsung has geographically distributed pattern that all the decision power are taken by the top class management and the chairman that look after for all the decision. Under qualified manager, all the employees functioning in a respective manner, where every query discuss with him. Samsung has huge degree of span of control that allocates within trained manager or the respective body which have an excessive aptitude, ability to take good and appropriate decision and creative abilities. At global level, every functioning department lead by managers or senior managers that transmits the departmental changes to the top organization. This flow path assists the employees to follow the organizational hierarchy according to the justified plan which commemorates the work in progressive manner (Khanna, Song and Lee, 2011, pp: 142-143).















Chain of Command

The Authority goes from upper levels of the management hierarchy down to the lower levels, to every single subordinate in the company.

Chain of command has two parts:

Line of Authority: Is the authority given to the head of any organization or department to take decisions, actions and command the workers in the chain of command.

Staff of Authority: Is the allowed to the Employees in lower level of organization hierarchy to discuss their views and give advice the manager of a specific department, who can make decisions.

(Books, n.d.) (, n.d.)


Source: (References for business, n.d)


The relationship between Line of Authority and staff of authority is that staff of authority assist Line of authority.






In Sony corporation, in the lower level department employees share the same direct authority, but every department can have their own thoughts, decision and can make its own experiment with fewer numbers of approval (Sony, n.d)


Line of Authority

Hierarchal structure of Sony allows top level management “CEO or the manager in charge of Sony’s Home Entertainment Business Group “possess the authority to make decisions and act and pass directly to lower level in the hierarchy, for example Sony’s CEO has very strong line of authority over the head of Sony’s Professional, Device & solutions Group which includes also Sony’s semiconductor Business Group. Once order been given by head of Sony corporation it’s their job to carry it our effectively.

(Books, n.d.)(Sony, n.d.)


Staff of Authority

All subordinates in the lower level of Sony organization hierarchy share the same authority to give an idea to the Top-level managers in the hierarchy or to advise them. About decision has been made or has not made yet “under discussion “, but cannot gives order to the Upper level managers. For instance, a manager in HR department at Sony might advise the manager in charge of Sony’s Home Entertainment Business Group on a hiring decision but cannot gives orders to hire a certain applicant to a job (Books, n.d.)(Sony, n.d.). 











In Samsung, CEO of organization heads chain of command. The upper level management decides and make decisions which are to be justified and filled by the middle level management. Lower level management cannot directly share their comments and ideas with the upper level management, they need to share their views with their department manager then it passes on to other level. Each department has its own regulations and strategies however they hold their own decisions and its implementation is subjected to the CEO chain of command and decision made by CEO is considered by COO and CFO are further implemented within the organization. Samsung has allocated subordinates for every department who reports directly to upper level management.

Source:( Samsung, prezi, n,d)




Both the companies are centralized in terms of decision making. Sony and Samsung are work specialized and has skilled labor for particular job having specialized skills to perform at their maximum ability. Whereas Sony has a flat span of control but Samsung has a tall span of control which are best suitable to their organizations as they are chosen by them and its firm believe company choice is most appropriate for them. When it comes to chain of command Samsung’s is more effective than Sony as all decision are done at top level management no line or staff authority been provided at lower level which allow them to make decisions smoothly, whereas, Sony lower level management can put their ideas and implement at lower level with lesser number of approval which can lead to hindrance in future decisions as more involvement of lower level will disrupt the managers skills to take decisions.

From all above stated facts and figures it can concluded that both Sony and Samsung has very efficient and effective organizational structures and are well managed organizations







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Group Members:


1.      ABDUL HASEEB MASROOR (TP045017)              

2.      SAKHER ALI MOHAMMED ALHAJJ (TP046777)                     


4.      SAYEED MIA MD ABU (TP045497)


Area of Responsibility

Name and Signature of Member

Introduction: Background of Organization


Work Specialization


Span of Control


Chain of Command