Boundary-Less Company - Case Study Example

Organisation and Behaviour Table of Contents Introduction 3 Question 4 Question 2 5 Question 3 8 Question 4 9 Question 5 11 Maslow Hierarchy of Needs 11 Herzberg two-factor theory 12 Question 6 12 Question 7 14 Question 8 15 Conclusion 16 References 18 Introduction Siemens is a multinational German conglomerate company in electronics and electrical engineering. The prime divisions of the company include Healthcare, Energy, Infrastructure and Industry. The corporate responsibility and excellence on operation are key pillars of Siemens. The flexibility of the Siemens Company is to turn theories in to effective plan and strategies. In the era of globalization and advancement of technology, rapid alteration in the business environment enables company to introduce change. The implementation of change management can benefit organization to enhance company and employee performance. The application of change management in company can lead to resistance to employees. Motivation is the important factor that can encourage and influence employees to be efficient and enthusiastic. Some of the staffs that are working at Siemens thrive on responding to challenges and prosper on problem-solving part. The employees of the company feel valued and believe that they are provided opportunity and motivation to be imaginative. An extraordinary level of performance culture can exist in organization when every member value contribution of each other and share same vision and trust. According to Klaus Klienfeld, CEO of Siemens, the overall operations of Siemens is based on high performance team culture. Moreover, Klienfeld also believes that the valuable resource of the company is the quality of teams and people who are rightly involved in the part of success. The success of the business is dependent upon the performance of the total organization, teams and each individual. The performance and productivity of organization can be dependent upon leadership style and application of effective leadership strategy. This prime purpose of the paper is to provide vivid explanation about the performance based working culture of Siemens. Question 1 The study of social administrations and organizations such as bureaucracies and businesses is known as the organizational theory. Moreover, it is also studies interrelationship with the background of operation. Furthermore, it also complements the study of organization behaviour, leadership, industrial psychology, human resource studies and management. The application of organizational theory can create huge influence on complete performance of any organization. The role of management is to make resources productive by managing managers, workers and business. The theory of organization is also defined as the relationship of business to their exterior background and analyzing and demonstrating of organizational strategies and behaviour of employees. Additionally, the execution of organization theory can benefit organization to provide solution to deal with the introduction of change management and changes. Siemens AG has also implemented organizational theory to the administration of the organization, like many other companies to achieve success and maintain sustainability in competitive market. The prime part of the business strategy of Siemens AG is People Excellence. This strategy enables to build a work culture which is based on high performance and provides responsibility to the employees to be stable in the organization. Henri principle on Classic Administration is also implemented by the management of Siemens. The scientific management of Taylor executed to the activities of the organization to improve the job performance and enhance the work culture. The key driver for success of the sustainable performance of Siemens Company is effective employee engagement. The vital management tool of the company is Siemens Global Engagement Survey. The human relations approach of Mayo is applied by the management of the company to let their employees to make judgments for the development. Moreover, the company focuses on employees to make their own decisions and be innovative. Being a global company, it is vital for company to be diversified to maintain its effectiveness. The things that differentiate Siemens Company to attain sustainable competitive advantage are the diverse and vast range of employees that have the experience, quality ad capabilities to be success (Gardner, Cogliser, Davis and Dickens, 2011, pp. 1120-1145). The organization continuously has the positive reaction and replies effectively towards the market force. The application of these theories has helped the company to be successful and conquers employees, customers and partners. These are the following reasons which supported the company to develop greater and standstill in the market. Question 2 Every company has different approach though the structure of organization to achieve final goal and objectives. Different approaches Siemens Innocent Structural approach Siemens is the divisional structural company which the parts of the organizations is divided in to several departments in accordance to the output. This type of organizational structure provides opportunity to company to separate bigger sectors in to semi-autonomous sets. Moreover, this type of company focuses every single aspects of the company which includes products and services. Several parallel teams in the Siemens Company focus on single service and product line. These clusters of the company are self-managed. The prime purpose of the company is to enhance the productivity is every sector and service line. The divisional structure of Siemens Company in to six industry domains are comprised of energy engineering, components, communications technology, installation technology, medical technology and data systems technology. Each of the division of the company provides independence in every sector in business undertakings. The corporate wide affairs are dealt by five functional corporate departments. These departments include sales, finance, managerial economics, technology and human resources. On the other hand, Innocent is an innovative company of United Kingdom to produce juice, vegetable pot, smoothies that are primarily sold to coffee shops, other outlets and supermarkets. Innocent company is the functional structural company which provides clear and better vision and road to employees to achieve goals and objectives. The management of the company mainly focuses on the development an innovation of product rather than concentrating on different departments. Cultural approach The cultural approach of Siemens company is based on task approach. This task culture approach is applied and implemented in the function of Siemens. This approach brings flexibility is the work culture of the company. Moreover, this approach has benefited Siemens Company to success and difficulties. Role culture is applied in the management style of the Innocent Company. This approach prevents the company to take any risk which can sometimes lead to difficulties. The introduction of new strategy can be slow. Leadership approach The Siemens company is managed and influenced by consultant leadership style. Joe Kaeser, CEO of Siemens has established a culture within the organization which is viewed worldwide as model of its kind. The values and ideas of the employees are considered carefully (House and Aditya, 2009, pp. 409-473). The leadership style of Innocent Drinks company is democratic and participative. This resembles the fact that company provides confidence to the employees. The company has created supportive, informal, fun and authentic culture in the workplace. This process empowers, engages and motivates employees to be passionate and enthusiastic. Question 3 The application of effective leadership style can create significant positive impact on largest corporations of the world. This can affect the style of new recruitment and senior management. Moreover, leaders can create corporate culture which can influence the performance of organization. According to Bryson and Crosby, leadership is defined as the mobilization and inspiration to undertake act for common benefit. It is vital for every organization to implement new strategies to bring change in organization. This application of change management can benefit organization to sustain in the competitive market. The ever changing taste of external and internal customer forces organization to implement change management. The constant evolution in the organization and people forces organization to undergo changes in the organization to gain competitive advantage over other competitors. The birth of resistance is down to the beginning of changes in the organization. It is believed that sometimes that resistance of the employees can be strong and extreme. It is crucial for organization to deploy effective methods and strategies that can help to overcome the matter of resistance. Therefore, it can be determined that organization must use best possible practices to resolve the issue. The Kotter Six Approach Model is one of the methods that provide techniques to facilitate and communicate with the employees working in the organization. Regular team meetings, application of new marketing strategy, selecting agent for negotiation of planning and manipulation are some important steps of the Kotter Approach Model to motivate employees (Hirschorn and Gilmore, 1992, pp. 104-115). Bureaucratic, democratic, charismatic, task-oriented leadership and people-oriented style are some leadership style which can be implemented for managing change in the organization. Bureaucratic leadership style is implemented by organization to provide strict rules that can ensure that staffs and employees working in the organization follow the objectives and specific changes in the organization. The application of this style is viewed as appropriate for safety measures. Charismatic leadership style is another style which inspires teams and employees working in the organization to be energetic and drive forward. Democratic leadership style is based on inviting other members of the teams to provide information and contribute to the administrative method of the organization. It is crucial for management of the organization to implement best possible leadership style that can benefit organization at the time of change management. Hence, it can be notified that implementation of leadership style must be dependent on the cause and time of the situation. Question 4 Motivation is defined as the theoretical construct that maintains initiates and guides goal-oriented behaviour of the organization motivation can be external and internal factors that can stimulate the energy and desire of the employee to commit to the role or job. The effective utilization of the motivational theory can benefit organization to attain goals and objectives. It is fundamental for organization or successful corporation to motivate employees. This can provide enthusiasm to increase the bottom line of the company. Employee needed to be motivated because it can encourage worker energy, commitment and creativity, prevent complacency and employee retention. The motivation in the workplace can be broken in two types such as extrinsic and intrinsic motivation. Intrinsic motivators are the desire of the employees working in the organization to develop professionally and accomplish goals. On the other hand, extrinsic motivators utilized by managers involve various work factors which includes promotions and pays. Job satisfaction can be powerful motivator and regarded as one of the part of intrinsic motivators that can be used by managers to help employees to understand the application of change management in the organization. Maslow Hierarchy of Needs is developed by Abraham Maslow which is ranging from basic needs of human begins to self-actualization. Abraham Maslow stated that once one level of the need is completed and then an individual seeks to move next level. Physiological, safety, social, esteem and self-actualization are the 5 level of needs. Physiological needs are food, water and shelter. Safety and security needs are security, stability and protection. Social needs are need for love, family, friends and affection. Esteem needs are recognition, need for respect, mastery, accomplishment and appreciation. Self-actualization needs are the desire of individual to gain full potential and need of reaching highest level. Herzberg theory is another employee motivational theory. Herzberg two theories consist of hygiene and motivation factors. Hygiene factors include security, salary, relations with peers, personal life, work conditions and policies. On the other hand, motivation factors of Herzberg theory include advancement, responsibility, recognition and achievement. ERG theory of Alders consists of three groups such as relatedness, growth and existence. Existence of ERG theory is desire for measurable well-being and functional. Relatedness factors are needed to gratify interpersonal connections in the organization (Bolden, 2011, pp. 251-259). Growth factors are desire for expansion and personal development. This can be applied in the workplace to motivate employees to be creative and productive. Motivation is regarded as the driving force that can be implemented by organization to control human behaviour and enhance the productivity of organization. Question 5 Maslow Hierarchy of Needs and Herzberg two-factor theory are two useful motivational theories that can be implemented by manager to motivate employees in the workplace. Maslow Hierarchy of Needs Maslow Hierarchy of Needs is one of the motivational theories that can help managers to understand the need of the employees in order to motivate employees. This theory can be effective when managers are empathetic and perspective to listen needs of the employees. Furthermore, the needs and requirement of the employees should be fulfilled by managers. For example, Siemens Company believes that it is vital to make sure that employee are engaged and feel valued. Employees are regarded as pivotal part of company. According to several theorists, motivation is the one of the crucial factor that can make employee feel that they are valued and eventually lead to enhancement of productivity of the organization. One of the prime business strategies of Siemens is to make employee feel that they are valuable part of the company. Therefore, People Excellence is vital at Siemens. Maslow Hierarchy of Needs provides beneficial summary of every needs of employees in the organization. Furthermore, this summary can be used by manager in product pricing, designing and positioning (Bjugstad, Thach, Thompson and Morris, 2006, p.5). Additionally, this theory can also benefit managers to focus on particular needs that are needed to be shared on the broader market segment Herzberg two-factor theory Frederick Herzberg created two-factor theory to provide framework to understand the importance of motivation in any workplace. Herzberg believes that there are two factors that can create help to motivate employees in the workplace. Motivators or satisfiers and hygiene factors are two set of factors. One of the prime benefits of application of Herzberg theory is reduction of employee dissatisfaction. Low productivity and poor production can force managers to implement change management in the organization. It is crucial for Siemens to provide ample level of motivators and hygiene factors to keep employee motivated. Some of motivational factors include rotation of employees and job enlargement. This can enable employees to accept to new challenges. Some of the hygiene factors include safe working conditions, effective interpersonal relations, job security and fringe benefits. The long-term positive satisfaction for employees can benefit organization to motivate employees to work harder to reach goals and utilize maximum competencies and skills of the employees. Question 6 A group is defined as the two or more than two individuals who are interacting between each other to accomplish and attain goals common goal of organization. There are two types of groups is organization such as informal and formal group. Informal groups are groups that are formed by non-managerial employees and managers to meet and achieve own goals. On the other hand, formal groups are group of members that are established by managers to achieve goals of organization. For example, Eco Excellence Program initiated by Siemens to ensure business success and helps to produce environmental friendly products for environmental sustainability. The functional roles that are provided to each member can benefit organization through active group collaboration and effect in to enhanced effectiveness and self-esteem. Belbin Team Roles is used by organization to identify behavioural weaknesses and strengths of employee. It is reported that mutual trust, productivity and understanding of individuals can be built by application of Team Role. Moreover, Belbin team Roles can be implemented by Siemens to upsurge personal efficiency, raise self-awareness and cultivate team with highest performers (Conger, 2004, pp. 136-139). Cohesiveness, competition, roles and leadership are factors that can affect the performance of groups. Cohesiveness is sticking organized. It is vital for each member of group to maintain core membership to be cohesive. The lack of cohesiveness can lead to dissatisfaction, less efficiency and absence of communication between members. Conflict and competition are viewed as crucial part for making any effective decision. Competition is case of short-term is regarded as the motivating and invigorating factor that can lead to improved performance. Moreover, it can also have negative impact on the performance of individual. The morale of employee can be affected in the process of conflict and continuation of competition. On the other hand, strong leadership is effectively supported by strong teams and groups. Leadership is determined as the process that can influence individuals to motivate. Norms and roles are the other factors that can also affect group behaviour (Caldwell, 2003, pp. 285-293). Each and every member in a group has a particular part that is well-defined by the quality and quality of message that participants are required to be engaged with other members of the groups. Group behaviour model consists of five different stages, such as forming, norming, performing, storming and adjourning. Forming is the first part of behavior model. In this part, teams are new and adjusting to the workplace environment and learning to work together. Members of this part need to identify their group process and purposes. In case of storming, teams are needed to display less conformity, upsurge of conflict and moving for power. Members in the norming stage demonstrate an enhanced capability to resolve conflict, solve problems and complete tasks. In case of performing stage, teams are more flexible to their tasks and roles. Moreover, teams in this stage have the ability to view conflict and evaluate effectiveness. Finally in adjourning stage, teams may leader group members as they are not their utmost level of performance. Question 7 Teamwork is defined action between group of members to create efficient and effective work. The introduction of teamwork in organization is to increase company culture, employee unity and employee performance. Therefore, it is critical for companies like Siemens which is customer centric to develop new strategies and ideas to diffuse duty in assembled teams. The importance of teamwork is vital to reach the expectation of organization. Problem solving, communication, cohesion and learning are the some of the vital significant of teamwork. Teamwork is vital because is to help to provide solution of any tough decision. This is mainly due to the fact that multiple minds are working for providing a problem-solving solution. Effective communication in the company can be maintained by teamwork. Moreover, this is regarded as the backbone of any company’s success. Employee working individuals can upsurge the time of work completion. Individual working employees can sometimes ignore to share their information and knowledge to other employees. These can take lot of time for completion of any task or projects. Teamwork can help to promote conversation between team members to share their ideas and provide viable solution that can be utilized for quick completion of task. Another important by-product of effective teamwork in organization is cohesion (Bennis, 2007, pp.2-5). The result of increase bonding, trust and chemistry can lead to enhancement of cohesion between employees. Furthermore, this can benefit organization to upsurge the speed to work-flow. Employees working together can learn for each other and share their personal views and knowledge. There are several factors that can help to promote effective teamwork in the organization. Team-building exercises, leadership, communication and diversity are some of the important factors that can promote and inhibit teamwork.Several challenging activity are provided by Siemens Company (Avoilo, Walumba and Weber, 2009, pp. 421-449). Like in Great Brain challenges of being high performance partner of rowing group is one of the challenging tasks of the company to keep people motivated and positive. Communication is one of the important parts of support processes of Siemens Reference Process House. The fundamental motto of the company is to openly communicate with team members about any errors and provide possible remedies. Question 8 In the era of technological advancement, every organization makes full use of technology to provide best possible to run task of the administration effectively. Mobile phones, e-mail, laptops, computers and groupware play significant part to improve performance of team. It is being notified that the continuing development field of Siemens is digitalization, automation and electrification. In order to gain competitive advantage over other rivals, it is vital for Siemens to take full advantage of execution and application of new technology in workplace. Siemens is significantly putting its focus on reduction of emission of harmful gases. The introduction of electro mobility is vital for negative environmental effect. The prime focus of the company is based on motivation of employees. The management of development and performance of employees has forced organization to accept introduction of new technology in organization for better team performance (Bass, 1990, pp. 19-31). The greatest competitive advantages of Siemens are innovative and creative products. The high performance culture of the company is beneficial for introduction of new technology in the organizations. Some of the latest innovation of the Siemens to boost the functionality of team members are Nanotechnology and region widespread Wi-Fi. Remote access technologies implemented by Siemens to help group members to have access to the virtual desktops and virtual private networking. Information technology is specialized program initiated by the company for better cohesiveness between team members. Water coolers, coffee machines and computers provide viable options for team members to complete task effectively. The benefits of application of technology in organization are it can help to save time and money. For examples, Siemens Company held teleconference with team members in different branches. This step benefits the company to save money instead of paying extra travelling expenses. Furthermore, the time of completion of every task can be lessening. This can help to increase productivity and save money. Some of the drawbacks are dependency and constant need for upgrade. Employees can be dependent to technological devices and can lead to loss in productivity. Technology is needed to be upgraded regularly. This can result in to added costs. Conclusion This can be concluded that high performance culture can stem the results of organization. The high performance culture of Siemens supports and provides framework that people with high performance can show their true commitment towards the benefit of organization. The prime cornerstone for high level of performance based culture on Siemens is the Talent management. The prime business strategy of Siemens Company is the importance of people towards the success of the company. Several team building exercise and training adopted by Siemens to solve quality problems and reach daily target of the company. Performance Management process is developed by Siemens to management the development and performance of employees. The four main elements that are the part of global action plan of Siemens are Leadership Excellence Program by Siemens, Strengthen expert careers, improved global pool of talent and high performance culture. The application of Maslow Hierarchy of Needs and Herzberg two-factor theory can benefit Siemens to motivate employees at the time of introduction of changes within the organization. The pivotal reason behind the implementation of divisional structure within the company is to foster independence. This is the main reason Siemens is different from other organization. This is mainly due to the fact that they do not want to use outside consultants as part of the organization. Talent management is one of the important parts of business strategy for Siemens to provide every employee within the organization support and guidance to achieve success and prosper in future for the benefit of the company. Job enlargement and job enrichment are the two vital aspects of talent management. The organizational culture of Siemens provides a place for people to nurture, perform well and help to achieve business policy. References Avolio, B. J., Walumba, F. O., and Weber, T. J., 2009. “Leadership: Current theories, research, and future directions”. Annual review of psychology, 60(5), pp. 421-449. Bass, B. M., 1990. “From transactional to transformational leadership: Learning to share the vision”. Organisational dynamics, 18(3), pp. 19-31. Bennis, W., 2007. “The challenges of leadership in the modern world”, American psychologist, 62(1), pp. 2-5. Bjugstad, K., Thach, E. C., Thompson, K. J. and Morris, A., 2006. “A fresh look at followership: A model for matching followership and leadership styles”: Organisational behaviour, 7(3), p.5. Bolden, R., 2011. “Distributed leadership in organisations: A review of theory and research”. International journal of management reviews, 13(3), pp.251–269. Caldwell, R., 2003. “Change leaders and change managers: different or complementary”? Leadership and organisation development journal, 24(5). pp 285-293. Conger, J. A., 2004. “Developing leadership capability: what’s inside the black box”? Academy of management executive, 18(3), pp. 136-139. Gardner, W.L., Cogliser, C.C., Davis, K.M. and Dickens, M. P., 2011. “Authentic leadership: A review of the literature and research agenda”. The Leadership Quarterly, 22(6), pp.1120–1145. Hirschhorn, L., and Gilmore, T., 1992. “The new boundaries of the “Boundary-less” company”, Harvard business review, 70 (3), pp. 104 – 115. House, R.J., and Aditya, R.N., 2009. “The social scientific study of leadership: Quo vadis”? Journal of management, 23(3), pp. 409-473. Read More