Organizational Behavior: Dell and Siemens - Case Study Example

Organizational Behaviour Siemens and Dell Organizational Behavior: Dell and Siemens Introduction Organizational Behavior is an important terminology. Anyone and everyone that is associated with an organization need to understand its organizational behavior. For example the definition of organization behavior states, ‘It is the study to determine behavior and attitudes of individual and group within an organization’ (Arvinen-Muondo & Perkins, 2013). Another definition of organization behavior states, ‘a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness’ (Robbins, 2005). Headquartered in Berlin, Siemens was founded in 1847. The German multinational operates in numerous types of businesses. However, the notable ones are healthcare, industry, energy, infrastructure, and cities. Operating in more than 190 countries across the globe, Siemens has successfully been able to generate revenue of €75 billion / year, according to the 2013 company report (Davenport & Probst, 2002). It should be noted that Siemens is a huge organization and its operations are also huge. However, there are other organizations such as Dell Inc., which are doing comparatively well on a global scale. Although Dell is not as huge as Siemens the organization still managed to penetrate swiftly into the international market within a short time period. Dell is an American multinational that was founded in 1984. The company works in the field of technology; computers and products and services related to computers are its expertise (Dell, 2014). With the help of this report, the organizational structure and culture within Siemens and Dell will be discussed and analyzed. Furthermore, the report will present the relationship of how organizational structure can affect the organizational performance. The report also includes the leadership styles at Siemens and Dell; factors that affect individuals behavior at work, organizational theories and their relevance with the management of Siemens, different management approaches used at Siemens and Dell, impact of leadership style. Moreover, this report examines different motivational theories and their application within the work place, usefulness of motivation theories at Siemens, nature of groups and group behaviors within Siemens, factors promoting or inhibiting the development of effective teamwork within Siemens, and the impact of technology within Siemens. Figure 1 (Davenport & Probst, 2002) 1.1 Comparing Organizational Structure and Culture between Siemens and Dell Organizational Structure Organizational structure is the structure, which helps in determining the activities such as allocation of duties, supervision, goal achievements, coordination, etc. In simple words, it is a perspective or window through which individuals see or observe their organization and its overall culture (Aquinas, 2009). There are different types or organizational structures depending on the nature and type of the organization. However, the purpose and aim of every structure is almost the same. The major organizational structure types are “pre-bureaucratic structures, bureaucratic structures, functional structure, divisional structure, matrix structure, organizational circle, team, network, virtual, and hierarchy” (Aquinas, 2009). The most common type of organizational structure is functional organizational structure and is presented in the following diagram. Figure 2 (Aquinas, 2009) It should be noted that the organizational structure at Siemens is slightly different. The organizational follows a hierarchal organizational structure in order to cope up with the huge operations worldwide (Davenport & Probst, 2002). The major decisions and management of coordination of the substantial activities are driven by a special board known as the Siemens Sustainability Board. The board is led by the CEO who is also a member of the managing board. It should be noted that the major departments at Siemens are under the control and authority of the CEO (Davenport & Probst, 2002). Figure 3 (Davenport & Probst, 2002) On the contrary, Dell has a slightly different organizational structure. It has different operational levels. The structure is functional and decentralized one. The company utilizes the direct sales model, collaborative supply chain, direct service, etc. to run its operations effectively (Dell, 2014). The organizational structure of Dell is presented at follows. Figure 4 (Dell, 2014) Since Siemens is a huge organization and deals in different industries worldwide therefore there was a need to form a separate sustainability board that can effectively monitor all the operations of the organizations. On the contrary, the reason behind the functional organizations structure at Dell is because of its operations in a specific field. Both the structures have advantages for the organizations as they have been turned out to be productive (Friedman, 2007). Organizational Culture Organizational culture can be defined as how humans behave within the organization and how they relate themselves to that behavior. The culture of an organization generally includes the vision of the organization, its values, systems, norms, symbols, beliefs, language, etc. It should be noted that there are different characteristics of organizational culture. For example, innovative, detail oriented, aggressive, team-oriented, stable, people oriented, etc. (French, 2011). The different characteristics of organizational culture are presented in the following diagram. Figure 5 (French, 2011) It should be understood that organizational structure and organizational culture are interrelated with each other. Organizational structure of the organization has a direct impact on the organizational culture. If the organizational structure is effective and sound then the organizational culture will also be productive. Similarly if the structure is not stable then the culture will also be appalling (Davenport & Probst, 2002). The culture at Siemens is open. Every employee at Siemens is responsible for his or her task therefore it is the culture that allows these individuals to work in a friendly environment. The company conducts training to support their employees. There are numerous factors that contribute towards such a culture at Siemens. It is because the company wants to encourage its employees and want to yield better and profound results. Furthermore they also want to incorporate a culture through which they can ensure maximum growth and sustainability (Flamholtz & Randle, 2011). On the contrary, the organizational culture at Dell is friendlier than at Siemens. According to (Dell, 2014), the company set goals and standards to reach its target and to grow and it is then through the people that it is able to achieve those goals and principles, People at Dell actually live that culture; values, and standards. 1.2 The Impact of Organizational Structure and Culture on the Business Performance of Siemens Undoubtedly, organizational structures have their impact on the performance of organizations. as it has been aforementioned that organizational structure affects the culture, behaviour, and growth of organizations, therefore, it is important to study its impact. Since Siemens is a huge organization therefore it knew the impact of organizational structure on the culture and business performance well. For this reason it adopted the strategy of adding a Sustainability Board to its structure, which can effectively monitor all its operations. This has led towards the motivation of its workforce across the globe (Flamholtz & Randle, 2011). According to (Alvesson, 2012) and (Davenport & Probst, 2002), it is revealed that Siemens has effectively motivated its staff on all key levels. This suggests that the organizational structure at Siemens is a strong culture, since it exerts a major influence on the overall behaviour of individuals of the organizations. The values at Siemens are held intensely while it is through the management and workforce that it is shared widely and wisely. It is because of the effective strategy that Siemens is able to build a strong organizational structure. For this reason, Siemens has successfully created a high-performance culture across all its companies in the world (Alvesson, 2012). It should be noted that the influence of Siemens organizational culture is also very important and influential on the overall performance. It helps in motivating the employees as they understand their responsibilities and performs their duties well. An effective chain of command can be witnessed at the organization having a sound communication which helps towards better productivity (Aquinas, 2009; Davenport & Probst, 2002). 1.3 Discuss the factors which influence individual behavior at work Motivation is the main factor that influences individual’s behavior at work. If the employees are motivated higher performance can be achieved. Personality differs from individual to individual in behavioral patterns and emotion. Behavior of an employee can be determined through personality. Social perception is the way through which people make judgments about other by noticing their physical and non-verbal behavior. At Siemens, motivation and personality are the key factors that influence the individual behavior (Robbins, 2005). 2.1 Comparing Leadership style of Siemens with Dell It is discussed that strong leadership can drive weak organizations towards success. Talking about Siemens and Dell then the leadership style at Dell is more effective compared to Siemens. The leadership style followed by both the organizations are almost the same as Siemens use participative leadership style and Dell implies a consultative leadership style. Dell has the upper hand over leadership style in comparison with Siemens because their leadership style results in high programmability and job autonomy. Since its foundation, the CEO of Dell i.e. Mr Dell himself has not been replaced by any other leader. His transformational leadership skills, which are also discussed by Phillips & Gully, 2012, clearly explain why the company has been so successful. He understands and knows the goals of the company while his expertise and management skills are getting polished day by day which one can see in the form of the success of Dell (Geckeler, 2010). On the contrary, Siemens is an old organization and therefore there have been numerous leaders in the history of the company, both good and bad. The company has faced some challenges as a few leaders turned out to be a loss for the company. At present, the leaders at both the organizations have different organizational goals, which set them apart from each other and are also effective (Jennifer, 2009). 2.2 How organizational theory underpins the practice of management within Siemens At Siemens there is a mixture of two types of approaches i.e. Contingency Approach and Systems Approach. Systems Approach is used at Siemens to find out the market elements, which affect the profitability of the business. Contingency Approach underpins the management within Siemens as there is no particular set of rules, which are followed to manage the organization. It is because of the changes made in leadership over the past years, which have affected the policies of the companies as well (Jennifer, 2009). 2.3 Evaluation of the Main approaches to management theory As it is discussed earlier that the approaches for management used at Siemens are a mixture of Contingency and Systems Approach. On the other hand, the approach, which is widely followed at Dell, is Scientific Management Approach. Scientific Management Approach is efficient economically and it also increases the productivity level if the labor. Systems Approach provides timely and efficient plan and frees management from day to day operations management. The theory of Complex Approach is very beneficial but it lacks literature and is very complex at certain situations. The approach used at Dell for their operation management is Scientific Management, which has its strengths and weaknesses. The mains strength of this approach is that it reduces cost and increases productivity. The weakness of this approach is that it mainly focuses on individuals and not the efforts of the groups (Sadler, 2003). 3.1 The impact of leadership styles on employee motivation during the period encompassing organizational change If the following leadership styles are applied at Siemens it will have a different impact on motivation. The possible impacts that might occur are as follows. Dictatorial leadership style is demotivating as the employees work under order and pressure of the management to achieve the goals. Unitary leadership has one leader who takes all the decisions. It can have both positive and negative impact on motivation. Bureaucratic style does not motivate the employees much as in this style a goal is set and the achievements mostly depends on the policies that the organization follows to achieve those goals. Benevolent leadership style also motivates the employees as the project manager gives authority to the team members to make a decision. Employees are motivated by this act and the outcome is also good but this leadership styles has some cons attached to it as well. Charismatic leadership style is the best style of leadership as it highly motivates the employees of an organization. Consultative leadership style includes the participation of the employees in making a plan but the final decision is in the hands of the management. Consultative leadership motivates the employees and increases their productivity. Participative leadership style includes the participation of the employees in making a plan, which motivates the employees and increases the productivity as well. The above mentioned impacts of different leadership styles gives a reflection of what will be the impact on motivation of employees at Siemens if such leadership styles are implemented (Sadler, 2003). 3.2 Comparison of Motivational Theories and their implication within the workplace. Hierarchy of Needs Theory In this theory the different steps of needs are discussed; what more a person wants when his needs are accomplished. The theory is presented in a pyramid form and explains how the needs of humans grow. Theory X and Theory Y Theory X claims that the employees are lazy and dislike work and explains what is required to motivate them. Theory Y claims that employees are motivated and self-controlled. This theory explains how to maintain the motivation factor of the employees. If we compare the theories of Maslow and McGregor, the Theory X and Theory Y is much better as it mostly applies on the employees. On the other hand, Hierarchy of Needs Theory reflects the different level of needs of the individual (Aquinas, 2009). 3.3 The usefulness of Motivation theories for managers in Siemens If McGregor’s Theory X and Theory Y are applied at Siemens it will be easy to evaluate how these theories motivate. At Siemens, it will be analyzed that how many employees are a part of which category. After knowing about the efficiency of the employees it will be easier for the management to motivate them or to maintain their level of motivation (Bratton, et al., 2007). 4.1 Mechanisms for developing effective teamwork Within Siemens. Group consists of those individuals who have common interest and share similar traits. Teams are usually task oriented and is formed for a particular purpose. Formal groups are made because of the need and are prescribed for formal organizational structure where members have a close association. Individuals of informal groups are associated with each other but not prescribed by formal organization. The purpose of the team is to achieve goals, which have been set by the organization, and its members are also selected by the organization so that goals are achieved efficiently. At Siemens formal groups are formed of managers, subordinates or both to accomplish the task that has been assigned to them. The behavior of the group is formal and always has positive outcomes (French, 2011). 4.2 Factors that may promote or inhibit the development of effective teamwork in Siemens The leadership style promotes the development of effective teamwork within Siemens. The performance of the teams at Siemens is highly productive and efficient and there are no barriers to team working at Siemens. 4.3 Evaluate the impact of technology on team functioning within Siemens Latest technology is used in all part of Siemens as they keep themselves updated with innovations. Innovative ideas are appreciated by the by the management and every employee is appreciated for providing the organization with an innovative idea. Technology has never affected the operations at Siemens; it is adopted in order to increase the efficiency of the employees. Training programs are held to teach the employees the use of new technology and its benefits are also discussed. Siemens has a diversified market and caters all over the world. Virtual teams are supported by the management at Siemens that works collectively to improve the quality of work (Friedman, 2007). Conclusions and Recommendations It can be concluded that Siemens has its operations all over the world and needs to maintain good leadership and management so that it can continue with its progress in the coming years. It has lacked in leadership at times but has improved its shortcomings. The management, teamwork, motivation of employees and technology is the main essence of this organization and it works hard to maintain the standards at these factors. It is recommended that a good leadership style must be opted at Siemens, which motivates its employees and serves them so that high performance of the employees is attained. List of References Alvesson, M., 2012. Understanding Organizational Culture. 2nd ed. California: SAGE. Aquinas, 2009. Organization Structure and Design. 1st ed. New Delhi: Excel Books India. Arvinen-Muondo, R. & Perkins, S., 2013. Organizational Behaviour. London: Kogan Page Publishers. Baligh, H. H., 2006. Organization Structures: Theory and Design, Analysis and Prescription. 1st ed. Berlin: Springer Science & Business Media. Bratton, J., Forshaw, C., Mills, A. J. & Mills, J. C., 2007. Organizational behaviour in a global context. First ed. Peterborough: Broadview Press. Davenport, T. H. & Probst, G. J. B., 2002. 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