Human Resource Management and Development - Case Study Example

HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT INTRODUCTION This essay seeks to explore the HRM practices and policies of Siemens in Saudi Arabia. Siemens is an international organization which started around 160 years ago in Berlin. It now has its headquarters located in Germany, with operations taking place in numerous countries including UK, USA, India, China, Vietnam, Philippines, Japan and Pakistan. Altogether, it has presence in 190 regions. (Siemens Worldwide, n.d) "In fiscal 2007, Siemens had revenue of 72.4 billion and income from continuing operations of 3.9 billion (IFRS)." (Siemens Worldwide, n.d) Siemens is a world leader in electrical, engineering and electronics. It provides comprehensive solutions in many fields, ranging from oil and gas, petrochemicals, and power generation and distribution to information and communications, and health care. Currently, siemens has a staff of more than 400,000 employees. (Siemens Worldwide, n.d) Siemens has a strong corporate culture guided by the following principles: "We strengthen our Customers - To keep them competitive." "We push Innovation - To shape the future." "We enhance company Value - To open up new opportunities." "We empower our People - To achieve world-class performance." Siemens recognizes that its employees are the key to its success. It thus concentrates on knowledge and learning. "Our corporate culture is defined by diversity, by open dialogue and mutual respect, and by clear goals and decisive leadership." "We embrace corporate Responsibility - To advance society." (Siemens Worldwide, n.d) The research on Siemens was done via an interview with the HRM manager of the Riyadh Office of Siemens, Saudi Arabia. He gave informative insight various aspects of HRM including recruitment, training and development, promotions, and salaries and benefits. MAIN RESEARH FINDINGS Recruitment and Selection According to the HRM manager interviewed, Siemens looks for employees who are innovative, and have the capability to come up with new and creative ideas and solutions. Innovation is the key to survival for a company such as this, as it faces fierce competition by numerous firms, e.g. ABB Ltd, General Electric Co., and Schneider Electric SA. (YAHOO Finance, 2008) When interviewing job candidates, some of the items on the check list are: Confidence; to put forward unconventional ideas and have the ability to argue in their favor. Ability to work effectively in a team; the candidate must be an active and productive team player. This can be gauged from past proffesional or academic experience. Leadership qualities Reaction to crisis situations; how will the candidate respond to an unexpected crisis, how fast will he/she take to bounce back, and will he/she be able to effectively lead others through trying times Technical skills; the candidates must be proficient in working with required Information Technology. All these qualities are important as they are believed to contribute to a competive advantage to the firm. Workforce Planning Siemens carries out workforce planning which is similar to that of National Grid, as outlined in the Case "Developing skills in a large organization through training and development". Siemens evaluates its workforce, and on the basis of that evaluation determines whether or not it has the required technical man power to achieve its objectives for a given period of time. If it does not, it either plans out a training program for its existing employees, or recruits new ones. Training Training for new recruits falls into two categories: 1. Fresh graduates with no professiona work experience udergo a training programme with lasts 12 months. 2. New recruits who hace had prior work experience in other organizations for a period of more than a year undergo traning for a period of 6 months. This training method is somewhat similar to the one carried out by Marks and Spencer's, as outlined in the Case "The role of training and development in career progression", in that they, too, have a specific training period for new recruits. The difference, however, is that Marks and Spencer's hired candidates who have done only A levels, whereas for Siemens in Saudi Arabia, a candidate must be at least a college graduate to be hired. The training budget is around 30% of the annual expenditure of the company. Mentor-protg program Siemens assigns new recruits to specified mentors, who help in both career and psychological development of the new employee. Assistance in career development includes training and coaching of the tasks at hand, and giving professional advice. Assistance in psychological development includes helping the new employee settle in his new job by providing companionship, and advice such as how to balance work and family life, etc. Management Trainee Program. Siemens in Saudi Arabia not only conducts training for its own employees, but also for youngsters from all over the Kingdom to better their knowledge, skills and abilities. According to a press release on Sunday, March 09 - 2008, "Eighteen of Saudi's top young professionals recently completed the first module of 'Commercial Trainee Program' conducted by Siemens, in association with the Saudi Arabian General Investment Authority". The aim of this program was to provide "Saudi's promising young professionals world-class management and leadership skills, as well as business administration know-how as part of the global giant's efforts to enhance the local human capital in Saudi Arabia". Christian Selch, CEO of Siemens Ltd. said: "We need the best skilled people to meet and exceed our customer needs and will continuously invest in the education for our employees as a way of looking after their overall welfare, but also for the good of Siemens who will then have access to a highly trained workforce who will boost its position as the leading infrastructure provider in the Kingdom." (Press Release, 2008) Performance Appraisals As is the case with Marks and Spencer's, a performance review takes place after ever 6 months. The employees are rated in a number of areas, and these ratings are compared to past ratings and the ratings of other employees to see how the employee is growing, and whether or not he/she is working at par with the rest of the work force. In case the employee is lagging behind significantly, corrective measures must be taken. The employee is consulted to find out whether the problem lies with his abilities, or external factors such as the work environment or level of task difficulty. If it is diagnosed that the problem lies within the employee's abilities, then training is in order. Siemens hardly ever fires any employee, unless low performance levels are observed persistently over a considerable period of time. If the problem seems to be external factors, then the proper corrective measures need to be taken accordingly. Benefits/Rewards/Compensation Siemens is known for its handsome salary packages. The employees are generally paid more than employees at similar posts in other organizations. Along with salaries, other benefits include medical and insurance. These benefits are activated however, after the training period has finished. Employees are recognized for their efforts. Those who demonstrate superior performance are awarded plaques or shields in order to keep the work force dedicated and motivated. Employees with superior performance levels are also rewarded with bonuses and more frequent promotions. Management Style The management believes in empowering employees, therefore, gives its work force significant amount of autonomy in decision making. Managers are approachable, and employees are encouraged to give regular feedback about their jobs and working conditions to see if their level of satisfaction is not dropping. To increase rapport between employees and supervisors, the company holds frequent social gatherings where the workforce interacts with each other on an informal basis. Goal-setting Since the company believes in empowering employees, managers consult their subordinated before setting targets for them. The subordinate is asked about what he/she thinks is a reasonable target and is required to present arguments in favor of the proposed target. However, the company believes in setting challenging goals for its employees in order to keep them motivated and on their toes. So, even though the employees are consulted, managers bear in mind that the final set goals should neither be too easy, nor impossible to achieve. They should be challenging enough to keep the employees working to their best abilities. BENEFITS OF TRAINING AND DEVELOPMENT According to research findings, workforce training delivers ROI s it can "increase productivity and employee feedback, reduce absenteeism, improve customer service, lower the number of complaints, add sales and decrease the need for supervision. It can also boost personal confidence and job satisfaction because employees feel valued, appreciated and committed to your business." (GO2 Tourism HR Society, n.d) Other well known benefits of training and development in the workforce include (Carter McNamara, n.d): Increased employee motivation Increased capacity to adopt new technologies and methods The employee training at Siemens bears testimony to these research finings, as the HRM manager stated similar benefits of training. He especially laid emphasis on how training increases employee productivity and boosts employee confidence. Also important was that it increases motivation, and gives the company a competitive edge in many ways. He also stated that programs such as the Commercial Management Trainee program mentioned earlier not only provide a pool of well qualified job candidates for Siemens, but also helps improve the image of Siemens in the public eye. CONSLUSION This essay analyzes the Human Resource management and development practices of Siemens in Saudi Arabia, with a special focus on the different types of training programs implemented for the employees. Along with training programs for new recruits, Siemens also organizes Management trainee programs for young professionals all over Saudi Arabia to help improve their knowledge and capabilities. To keep employees motivated, Siemens has an effective reward system in place, where recognition for high performance is given through pay raises as well as awards in the form of plaques and shields. All in all, Siemens is known for the investment it makes in its employees. This results in high job satisfaction, and lower turn over rate than most other companies located in the region. Siemens continuously works on improving its employee development strategies by doing external research, and collecting objective feedback from its employees. It is this focus that contributes to the ongoing success of this prestigious multi-national. APPENDIX QUESTIONNIRE How important is training and development at Siemens What is the annual training budget Is there any training for new recruits What are the different types of training programs that Siemens initiates What sort of relationship exists between managers and subordinates What are the benefits of training to your organization References: Siemens worldwide (n.d) [Internet] Available from: [Accessed 2 June 2008] Siemens Worldwide (n.d) siemens.com worldwide [Internet]. Available from: . [Accessed 2 June 2008] SIEMENS (n.d) SIEMENS: About Us [Internet] Available from: . [Accessed 2 June, 2008] SIEMENS (n.d) SIEMENS: Our principles [Internet]. Available from: . [Accessed on 3 June 2008] YAHOO finance (Jun 2, 2008) [Internet] Available from . [Accessed 2 June, 2008] Press Release (March 09 - 2008) Saudi youth complete Siemen's Commercial Management Trainee Program [Internet]. Available from: . [Accessed on 2 june, 2008] go2 Tourism HR Society (n.d) Employee Training Delivers ROI [Internet]. Available from: . [Accessed 2 June, 2008] Carter McNamara (n.d) Employee Training and Development: Reasons and Benefits [Internet]. Available from: . [Accessed 2 June, 2008] Read More