Explain the Impact of Culture on Organizational Performance in Siemens (Essay Sample)

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Case Questions:
1 Explain the impact of culture on organizational performance in Siemens:
2 Evaluate the approach of Siemens’ management in motivating its employees.
3 Choose either Abraham Maslow’s or Frederick Herzberg’s needs-based theory and explain the ways in which Siemen’s motivates its workforce.
4 Choose either Maslow’s Hierarchy of Needs theory or Herzberg’s Two Factor (Motivator-Hygiene) theory and evaluate its effectiveness
Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc448267572 \h 2How Siemens Culture affects the organizational Performance PAGEREF _Toc448267573 \h 3Human Resource Development Strategies PAGEREF _Toc448267574 \h 3Creating a high Performance culture PAGEREF _Toc448267575 \h 3The Culture of Team and Individual Target. PAGEREF _Toc448267576 \h 4The Culture of Talent Management PAGEREF _Toc448267577 \h 4Performance management PAGEREF _Toc448267578 \h 4Evaluate the Approach of Siemens Management in motivating its employees. PAGEREF _Toc448267579 \h 5Making Employees feel Trusted PAGEREF _Toc448267580 \h 5Respond: PAGEREF _Toc448267581 \h 5Communication PAGEREF _Toc448267582 \h 6Communication of the Visions PAGEREF _Toc448267583 \h 6Creating Short term achievement PAGEREF _Toc448267584 \h 6Incentive System That Fosters Knowledge Sharing. PAGEREF _Toc448267585 \h 7Abraham Maslow’s Hierarchy of Needs Theory PAGEREF _Toc448267586 \h 7How Siemens Uses Maslow Theory of needs to motivate its employees PAGEREF _Toc448267587 \h 8Promotions of Basic Human Rights PAGEREF _Toc448267588 \h 8Recognition PAGEREF _Toc448267589 \h 8Developing People PAGEREF _Toc448267590 \h 9Evaluation of how Herzberg’s Two Factor (Motivator- Hygiene) needs theory is Effective. PAGEREF _Toc448267591 \h 9Strengthening Motivation. PAGEREF _Toc448267592 \h 10
Introduction
Organizational culture can be defined as the values and set of codes and conducts that contribute to a particular social and psychological business environment in an organization. Corporate culture includes the expectations, philosophy, values and expectations an organization has. These factors express the organizations self-image, the internal working environment and its outside interactions with other groups. These cultures are based on shared attitudes, beliefs, customs and both the written and unwritten laws and regulations that have been practiced and developed over a considerably long time. Organizational culture is also sometimes known as the corporate culture. An organization culture can be seen through the way a business entity conducts its business that is through the treatment it gives its employees, clients, and the surrounding community. The extent of freedom allowed while making decisions and coming up with new ideas and the freedom of self-expression also determines the organizational culture. Corporate culture can also be established through the flow of information and the hierarchy of power in an organization. Kremer (2013) points out that by looking at the level of employee participation and commitments, one can determine the organizational culture of an organization. Any culture imposed on an organization impacts on the firm’s productivity, performance and provides codes on customer care, the quality of the product and the environment concern. It further extends to the methods used in the production process, sales and marketing and promotion of a new product. Every organization has its unique organizational culture, and it is one of the hardest structures to change in an organization.
This case study is going to look at the organizational culture of Siemens which is a company technology operation globally and has its headquarters in Munich Germany. Siemens core activities revolve around the area of energy, Industry, heath care and Infrastructure. By 2013 September the company had reported a consolidated revenue of 75.882 Billion Euros and had approximately 362,000 employees with several outlets in nearly all countries in the world. Siemens has an excess of 290 major production and manufacturing units throughout the world. In the United Kingdom, alone Siemens has 100 outlets with its headquarters in Bracknell and Bracknell. It has round 20,000 employees in the United Kingdom (Annual Report 2010).
How Siemens Culture affects the organizational Performance
Siemens uses various strategies embedded in its culture to ensure that it get a larger market share compared to its competitors among the most implied strategies include:
Human Resource Development Strategies
If employees are managed effectively then they will work well without minimum frictions and offer maximum output. Siemens as a company believes in the full engagement of employees in the work place. The company believes that employee engagement combines of commitments and the corporate citizens. The fundamental pillars of Siemens strategy in conjunction with the performances and portfolio, operational excellence, and the business responsibilities is the way it manages and motivates the workers.
For Siemens its employees are considered to be part of their competitive advantage. To utilize this competitive advantage to the maximum Siemens works towards encouraging its employees on improving the companies heritage of innovation. According to Siemens history, the company has been making its employees feel valued and engaged through personal letters, promotional, higher salary and pat on the back.
Creating a high-Performance culture
Siemens have based their operations on teamwork culture. The company emphasis on teamwork is set out clearly from the quotation from the Global Chief of Executive Officer Kleinfeld who said that "Many time in my life I have seen how one individual can make a big difference, especially when working in a great team. The quality of our people and our teams is the most valuable resource, particularly in today’s changing world where knowledge flows around the globe with lightning speed and is easily available." The company encourages its employees to be truly involved in the business and to feel part of the business success and failure. Employees, therefore, need to know why they are part of that business with this in the conscience of the employees Siemens sets out clear expectations from everyone (Bloomberg 2012).
The Culture of Team and Individual Target.
Individual targets always relate to the whole business objective. Therefore, every employee plays a significant role in attaining great results for any business. Siemens clearly state that "Our companies depends on the performance of each our teams and the total organization.”
A performing team is one that all members of the team have worked towards achieving a mutual goal and have a sense of joint responsibility for every result that the team attains (Barrett, 2008).
The Culture of Talent Management
For people to excel professionally, it involves developing every employee that works for the organization and not just the top managing directors but every employee. Siemens philosophy on talent manager involves ensuring that each and every employee is provided with the necessary equipment’s need, proper guidance and support to realize their full potential. This helps employees to do their best every day they come to work. Everyone works towards achieving the organizational goals as well as they are individual set out goals. Within this culture, employees can develop their carrier and handle complex tasks within the organization.
According to Siemens culture, everyone has a talent and therefore it is important to match one's talent with their tasks to achieve the best and improve on the company’s competitive advantage. In Siemens, Talent management entails both Job enrichment which encourages individual employees to make extra tasks and responsibilities in their existing roles because this will make their work look more rewarding and their job to be more enlarged where the scope of their duties is widened plus gaining extra knowledge and skills (Annual Report 2010).
Due to this culture, Siemens has enjoyed customer satisfaction since all staffs facing the clients are engaged and happy. Secondly, every employee has the opportunity and choice to realize their full potential.
Performance management
The company has a standard way of managing the development and performance of all its staff. This method is referred to as Performance management process. This process directly links the strategy set forward by the whole organization and plans for each and every employee. Employee’s targets are set based on the role that the individual has within the company. It through attaining your personal targets that you are considered suitable to help the company reach its targets
Siemens carries out performance process as a systematic process that is used to create trust and open communication by setting out the business objectives, monitoring the progress made by every employee, creating a continuous dialogue among team members and their managers and finally enabling a constructive discussion.
Performance management in Siemens is the driving culture towards high performance. This makes sure that everyone is honestly told how he/she performs, an employee is clear about what they need to achieve in the organization and their impacts in the company.
Evaluate the Approach of Siemens Management in motivating its employees.
Making Employees feel Trusted
Siemens Company relies on their employee’s loyalty towards them, so as to identify and detect arising problems while still in the developing stage. Siemens encouraged their workers to take part actively in developing a reliability culture by not consenting to anybody who viol...