As of 1 March, Samsung Electronics will implement its new HR system which combines 7 job ranks into 4 and makes worker appellations more horizontal.
The company will remove its job rank 1 (high school graduate), rank 2 (college graduate), rank 3 (university graduate), assistant manager, manager, senior manager and director. Instead the company will apply a new horizontal ranking system that will categorize workers from career levels one to four (CL 1~4), based on their performance, thereby reducing the rigidity of its hierarchy and making it more horizontal.
With the new system, workers are expected to use the Korean honorific ending “nim,” which means Mr. or Ms. The new system, however, calls for addressing by their title those in senior positions such as team leader, group leader, section leader and executives.
Samsung Electronics stated that “The new HR system is designed to remove the current top-down, hierarchical structure so employees will show respect for one another based on their performance rather than their seniority. […] If an employee has ability and a good performance record, he or she will reach a higher level in career than some employees with longer tenures.”