Organization Development - Siemens Company - Case Study Example

Organization Development Project Name: Institution: Date: Table of Contents 2.0 Organizational Structure 3 2.1 Structure 3 2.2 Hierarchy 4 2.3 Decision Making 5 3.0 The Role of Leadership 6 3.1 Leadership 6 3.2 Management 7 3.3 Actual Work 8 4.0 The Role of Followers (Employees) 8 5.0 Conclusion 9 References 11 1.0 Introduction Organizational management is an increasingly growing concept in business competitiveness and success in the current globally competitive market. As such, multinational organizations seeking ventures in this global platform have resulted to the adoption of strategic management approaches in the management of both the employees and the executive management. One such an organization is the Siemens Company. The organization headquartered at Berlin Germany, has over the years diversified its organizational operations across market segments including the healthcare, infrastructure and the electronics market. In its expansion strategy, the organization adopts a mission of harnessing the best market knowledge know how on the best products provision to facilitate increased consumer satisfaction. In addition, the organization has a vision of providing high quality electronic products in the market to enhance technology adoption efficiency. In its operations the organizational management bases its performance on three core values namely responsibility, competence and innovativeness (Idowu, 2009). Through the adoption of these structures, the Siemens Company established appropriate frameworks through which its employees and executive management. Further, the organisation has a strategic plan of reducing its product diversification strategies in the market by adopting a concentration approach on the market segments it has a comparative and competitive production advantage (“Siemens”, 2014). This report is a review of the Siemens Company human resources and people management. The report is divided into three sections namely the organizational structure, role of leadership and the role of the employees. Finally, the report offers a conclusive summary of the discussed issues. 2.0 Organizational Structure 2.1 Structure The Siemens organization is divided into respective divisions serving the diverse market segments. In this case, the organization as identified under the organizational history analysis, serves divers segments such as the business communication, infrastructure and the healthcare divisions. As such, the organization is divided into the four respective divisions. Each division is headed by respective divisional heads in the market. Through this, the organizational structure is divided into these respective divisions. In this regard, the organization has an increased divisional segmentation. The respective divisions represent the respective organizational products supplied in the market. As such, the respective divisions are classified about the market products and geographical markets served. As such, the organization has a divisional segmentation. Further, the organization has a functional segmentation in the respective market divisions. Functional organizational structures are classified as management structure in which organizational employees report and are supervised by their superior. Through a functional organizational structure, employees are supervised by line managers who make decisions on behalf of the workforce. Through this approach, the Siemens organization has established an organizational framework that propagates the line management aspects in the economy. Thus, this Siemens Company analysis establishes that the organization applies both the divisional and functional management structures. Rao and Krishna (2005) argued that a blend of organizational divisional and functional approaches application in organizations have the matrix approach in the market. Through the application of the matrix organizational structure, organizations achieve increased market competencies trough the implementation of a blend of the merits of the divisional and functional organizational structures. On one hand, the organizational divisional structure enhances the development of profit orientation structures. Moreover, the functional organizational structures allow for increased employee management and productivity enhancement. In addition, the matrix approach allows for joint overcoming of the structure challenges thus facilitating increased organizational performance and efficiency. Therefore, the Siemens organization has attained increased management and structure efficiency through the adoption of the matrix management structure (“Siemens”, 2014). 2.2 Hierarchy The Siemens Company has a relatively rigid organisational hierarchy structure. The organisation is headed by a Chef Executive Officer (CEO); currently the CEO is Joe Caesar, who got a four years re-election as the CEO in 2011. Besides the CEO, the organisation has a ray of organisational divisional heads with the respective organisational market divisions. Further, there exists a supervisory board that inspects on the organisational performance. Under the divisional heads are the respective functional managers responsible with the responsibility of enhancing and facilitating the operational activities of the organisation in the market. Moreover, the organisation has employed specialist staff consulted on a regular basis to enhance and support the organisational decision making process. Organisational structures have two basic models, the mechanistic and the organic structures. On one hand, the mechanistic approach in organisational structures, is based and hedged on bureaucratic organisational structures that are inflexible in the market. On the other hand, the organic organisational structure is a relatively new management concept in the market. Under this approach, organisations face increased flexibility and regulations reduction in its policies administration. An evaluation of the Siemens Company establishes that the organisation adopts a mechanistic approach in its management system. In this case, the management structure has the defining traits of a mechanistic approach. On one hand, the organisation has definite divisions and functional system. As such, though networked to function as a whole organisation, the divisions have individual operational systems that separate them from others in the organisation. In addition, the organisation has definite and clear employees’ guidelines, policies and operational rules. Siemens Company employees are guided by the employees’ code of ethics that dictate on the employees’ responsibilities, as well as their obligations and duties in their respective functions and divisions. In addition, the organisational relies on a formal communication process. In this regard, grapevine and informal communication channels are significantly reduced due to the elaborate formal communication systems adopted. In this case, the Siemens management has established a communication function that manages and dictates on the organisational communication network. The function manages communication flow efficiency through the establishment of communication channels as well as a feedback mechanism (“Siemens”, 2014). 2.3 Decision Making An organisational performance and eventual market success are based on the adopted decision making frameworks. As such, respective organisations in the industry develop diverse decision making models. In general, there are two basic decision making approaches namely the centralised and the decentralised decision making models respectively. On one hand, the centralised decision making framework allows for uniformity in decision made as well as facilitating increased decision making speed. Therefore, organisations relying on this decision making model have increased decision-making efficiency for urgent issues. However, the decision making model has its negative implications in the development of standard decisions rather than unique situation focused decisions. An evaluation of the Siemens decision making model establishes that the organisation has adopted a hybrid of the two decision making models. On one hand, the organisational executive management develops the organisational strategic plans such as the Siemens vision 2020. On the other hand, specialised decision making is delegated to the divisional level managements. In this case, the respective divisional heads are mandated with the responsibility of developing appropriate operational and strategic divisional decisions, although they must be in congruence with the overall organisational strategic decisions. The assimilation of the combined decision making models in the organisation is an imperative approach that has allowed the organisation retain decision uniformity while allowing for unique challenges resolutions in its diverse organisational market segments. 3.0 The Role of Leadership Organizational operations are managed through the actions of the respective management. Besides the management role, organizational executives have an obligation to provide leadership guidance to the employees. Therefore, as Burke and Friedman (2011) argued managers have three functional responsibilities to the organizational employees. Such responsibilities are the leadership, management and the actual actions in the management. 3.1 Leadership On one hand, organizational managements have a responsibility to increase the overall leadership role to the employees. Leadership roles incorporate the provision of employee career growth and development. Employee motivation in the industry is an imperative tool for the enhancement of the respective organizational success and increased productivity. In this case, organizations in the market strive to motivate their employees in order to increase their performance and productivity levels. Motivation is a large organizational concept that is intrinsically or extrinsically motivated. As such, the market faces increased challenges of developing enough extrinsic motivation factors. This aspect is achieved through leadership role by the respective managements (Rollin, 2012). The Siemens Company has over the years established an organizational leadership framework that facilitates employees’ career growth. In this case, the organizational leadership provides the career development opportunities through mentorship and internship programs. On its part, the organizational mentorship programs are divisional based. As such, the respective divisions provide mentorship programs to their employees. Besides leadership enhancement in the organization, the leadership provides skill's mentorship programs, such as the excellence leadership program, that facilitate increased organizational success rates in the market. Through this approach, the organizational leadership facilitates increased employees development through the mentorship programs that expose the employees to new aspects in their specialization professions. In addition, the organizational divisions, such as the healthcare divisions provide internship programs. Such programs focus and target new entrants into the industry such as students and fresh graduates. Through the internship programs, the organization plays a significant role as a corporate social responsibility program by providing practical industry skills to the society. Through the internship programs, the organization facilitates increased skills and expertise in the industry. As such, the organizational management provides leadership through enhancing industrial knowledge growth in the society. 3.2 Management The organizational management has a responsibility to provide management duties to the organizational stakeholders. In this case, management is classified into five basic functions. They are the planning, organization, directing, and controlling and coordination functions. On one hand, the management is charged with the responsibility of developing strategic organizational plans that lay the footprint and act as guidance for organizational operations and the attainment of the organizational goals. For the organizing function, the management is charged with the duty of ensuring that all the organizational policies and plans are delegated onto the respective implementation centres in the economy. Further, the management directs the implementation of the developed strategies while allowing for the coordination of the developed strategies. Finally, the organizational management evaluates the performance of the developed strategies in order to allow for a review or strategies change. In this case, the management controls the strategy evaluation process. In order to facilitate organizational performance and success, it is imperative for the respective organizations to develop the appropriate management structures for the efficiency functioning. To this effect, the Siemens's management has developed appropriate organizational structures to facilitate management responsibility. On one hand, the management has developed strategic planning approach as evidenced by the Siemens 2020 vision plan. In addition, the organizational management has established definite organizational frameworks and divisions through which the management policies and strategies are implemented. Further, the management has established a control mechanism through internal audits in which strategy implementation and the performance of the respective divisions is evaluated to allow for corrective or supportive measures initiation (“Siemens”, 2014). Therefore, based on this approach, it is apparent that the Siemens management effectively implements its management obligations. 3.3 Actual Work Other than providing leadership and managing organizational resources, organizational management has a responsibility of providing guidance on tasks execution. In this case, the organizational management is expected to actively participate in the actual process execution in order to showcase to the employees on the actual task execution process. This approach serves as a role model to the employees and motivates them to perform their duties with increased efficiency levels. Through this approach, organizations establish lasting relationships between the management and their employees. Such relationships are relevant in the enhancement of appropriate working standards and quality levels in the organizations. An evaluation of the Siemens Company approach to management involvement in the actual production process, this report establishes that the organization has a deficiency in this approach. Although the organization motivates its employees in the industry, through their supervisors and workshops, there is no registered significant involvement of the organizational executive management in the production process. Therefore, this report establishes that the Siemens management has failed on this front. Therefore, it is imperative that the organizational management to develop appropriate structures that will facilitate its involvement in this relevant leadership approach, in management. 4.0 The Role of Followers (Employees) Employees are an important aspect in the organizational performance. Therefore, the organizational management structures in the economy have increased their focus on employees’ management. Through this approach, organizations such as Siemens have definite structures governing their employees’ performance. Employees at Siemens Company play a significant role in facilitating its performance and eventual management success. The employees execute the organizational strategic policies (Kusluvan, 2003). For instance, they produce the healthcare and business communication equipments. Further, the organizational employees advance their services to the respective consumer segments. It is based on these provided services and products that the organization derives its reputation, brand and revenues. In the process of executing the mandated duties, the Siemens Company management has established relevant employees’ regulations. The organization has an HR function that develops relevant human resource management success. In its policies, the organization has established human resource policies dictating on the overall management process needs that dictate on the overall employee actions. As such, the employees are guided by the organizational rules, such as the code of ethics that advocates for the adoption of ethical practices in the market. As such, the employees’ actions are determined by the organizational employees’ code of ethics in the organizational divisions. The Siemens organization has established a strategic framework for developing and training the respective organizational employees in the market. Through this approach, the organization has developed a strategic framework for training its employee’s framework. As such, the organization has developed a qualified team workforce. Organizations workforce quality is determined by the respective recruitment processes in the market. As such, the Siemens Company has developed ideal management structures allowing for the recruitment and retention of a qualified workforce. This has enabled the organization establish and retain a qualified organizational team capable of meeting the organizational human resource needs both in the present and the future. In monitoring the organizational HR kills, the organization uses the quality management approaches such as the performance appraisal systems. As such, the organization evaluates its employee’s productivity that has considerably reduced on the organizational knowledge gap challenges as evidenced in peer organizations, in the industry. 5.0 Conclusion In summary, this report offers a management review on the Siemens organization. As such, the report evaluates the concept of leadership and management in the organization. Its focus is on the leadership roles, employee roles and the organizational structure. A review of the structure establishes that the organization has a mechanistic structure that adopts a matrix structure allowing for increased organizational structure headed by the CEO and other divisional heads. Further, a review on the leadership roles by the management establishes that the organization has efficiency leadership and management programs, but fails to incorporate sufficient management involvement in production leadership. Finally, an employee’s role analysis establishes that the organization has employees are governed by the organizational code of ethics that regulates the employee performance uniformity. Based on the above analysis, this report recommends that the Siemens Company management should consider incorporating an organist management approach in order to enjoy its merits. Further, the organization should establish leadership task oriented management approach to increase on the organizational overall leadership performance. This report concludes that, with the implementation of these strategies, Siemens Company will enhance its strategic HRM and employees relations. References Burke, R. E., & Friedman, L. H. (2011). Essentials of management and leadership in public health. Sudbury, MA: Jones and Bartlett Publishers. In Idowu, S. O. (2009). Professionals Perspectives of Corporate Social Responsibility, Heidelberg: Springer Kusluvan, S. (2003). Managing employee attitudes and behaviours in the tourism and hospitality industry. New York: Nova Science Publishers. Rao, V. S. P., & Krishna, H. V. (2005). Management: Text and Cases. New Delhi: Excel Books. Rollin, P. F. (2012). 42 rules for your new leadership role: The manual they didn't hand you when you made VP, director, or manager. Cupertino, CA: Superstar Press. Siemens Company, (2014). Global Website. Retrieved from Read More