MODULE TITLE: PD II

PRGRAMME: BABS

Semester: Three

Organisation: Siemens; Context: Motivation

Group Members
Tawfiq Fayed; ID: 0343MHEMHE1015

Kenjaboeva Dilnoza; ID: 0067IKMIKM1114

Raphael Edoerhen Aghughu; ID: 0064EFHEFH1014

Khayotbek Ismoilob; ID: 0114TKTK1113

Submitted to
Mr. Ramendran Nair
Contents
1.0 Introduction ............................................................................................................................... 2

1.1 Organisational Profile Siemens.......................................................................................... 2

1.2 Siemens Mission .................................................................................................................. 3

1.3 Siemens Vision .................................................................................................................... 3

1.4 Organisational Culture at Siemens........................................................................................ 3

2.0 Analysis..................................................................................................................................... 4

2.1 Motivation and the Attempts by Siemens ............................................................................. 4

2.2 Theories in Practice at Siemens Scientific Management Theory ...................................... 6

2.3 Theories in Practice at Siemens Maslows Hierarchy of Needs ........................................ 7

2.3.1 Maslows Hierarchy of Needs at Work Situation .............................................................. 8

2.4 Theories in Practice Herzbergs Two Factor Theories ...................................................... 9

2.4.1 Satisfaction and Dissatisfaction or Motivators and Hygiene Factors at Siemens ............ 10

2.5 Challenges Siemens may Face in Context of Employee Motivation ...................................... 11

3.1 Recommendation and Conclusion .......................................................................................... 12

References ..................................................................................................................................... 14

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1.0 Introduction

Motivation or employee motivation is a crucial factor for managers and leaders in organisations.

Because, a motivated workforce at an organisation can lead it to highly productive and

successful performance; on the other hand, an unmotivated workforce could deliver a low quality

unproductive performance that can take the organisation out of the competition in the market.

This study involves Siemens, a multinational organisation, that has been maintaining a successful

performance with its dedicated employees for decades. Therefore, the study reveals how

employee motivation works as a positive factor in achieving higher organisational performance

for Siemens. So, lets get introduced to the organisation Siemens first.

1.1 Organisational Profile Siemens

Siemens is a German based multinational engineering group, headquartered in Berlin and

Munich. It is the largest engineering group in Europe. The company was founded in 1847.

The type of products Siemens manufacture is almost endless. Siemens mainly focuses on the

areas of electrification, automation, and digitalization. It is one of the worlds largest producers

of energy-efficient, resource-saving technologies. Siemens also supplies medical infrastructures

and a leader in medical imagining, laboratory diagnostics, and clinical IT. They have further

expanded their business in real estate sector and.

As of September 2015, Siemens had around 348,000 employees in more than 200 countries. In

2015 fiscal, their orders totaled 82.3 billion and revenue was 75.6 billion. (Anon., 2016)

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Siemens at A Glance

Founded : 1847

Headquarters : Berlin and Munich, Germany

President and CEO : Joe Kaeser

Global Presence : 289 Major Production and Manufacturing Plants (worldwide)

Employees : 348,000 ( Total number of employess; as of September 30, 2015)

1.2 Siemens Mission

We make real what matters. Thats our aspiration. Thats what we stand for. Thats what sets

us apart. A reflection of our strong brand, its the mission that inspires us to succeed.

1.3 Siemens Vision

Siemens vision is to enable the company to consistently occupy attractive growth elds,

sustainably strengthen companys core business and outpace the competitors in efficiency and

performance.

1.4 Organisational Culture at Siemens

Siemens organisation culture indicates that the importance of motivation in the company. They

believe in one engine of sustainable business that refers to an ownership culture, in which every

employee takes personal responsibility for the companys success. Always act as if it were your

own Company this maxim applies to everyone at Siemens, from Managing Board member to

trainee. (Anon., 2016)

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2.0 Analysis

This part of the study analyses the organisation Siemens to find out the motivational factors

among the employees at organisation. It also examines the practice of motivational theories in

context of Siemens that how the practical presence of these theories influence Siemens business

performance. While analysing we may also find the challenges and obstacles that Siemens has

faced or may face.

2.1 Motivation and the Attempts by Siemens

Motivation is a driving force that works as an inner stimulate for an individual to behave in a

certain way. When it is in case of an employee of an organisation who is well motivated, will be

satisfied with the work and workplace. Moreover, the employee will be more productive than

others and will produce better goods and services. This study shows how employees are

motivated at Siemens and which theories they practice.

There are various factors that can influence or motivate a person at workplace. Some common

motivational factors are psychological needs accommodation, clothing, foods etc. An

organisation can fulfill these needs of an employee by pay. However, there are some other

motivational factors apart from pay. Working environment can be a motivational factor as well.

A staff can feel motivated by good working environment.

At Siemens, a creative problem solving culture and environment is provided for the staffs, where

a staff has the opportunity to enhance his problem solving techniques so that they could make

them capable of responding to different challenges. This kind of creative culture in an

engineering company really motivates the staffs. The staffs have recognized that the company

has given them the independence to think in their own way. Thus the staffs come to know that

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the company gives value to their thinking and opinion. As a result, they feel extremely motivated

and perform better. (Annual Report, 2012)

In an annual report of the company, Siemens mentioned that they are overcoming challenges

with success by continuously breaking new ground and technology. And, this has become

possible only for their outstanding employees. It is a question that how their employees are

outstanding? It is also mentioned in the annual report. It says, at Siemens it provides their

employees

A creative problem solving environment

Freedom to think on own way

Additional opportunities

A different atmosphere of trust and cooperation

Scope to continuous personal development

Encouragement to share diverse creative ideas

Training programme to foster diversity

Recognition accepts employees ideas

And, finally, Siemens accepts and believes the fact that their employees commitment, expertise

and performance are one of their greatest strength. Therefore, to make sure again that the

employees are motivated, surveys are conducted among the employees in a serious manner to

find out whether the employees are satisfied and motivated. (Annual Report, 2012)

From the above we have found some strategic activities by Siemens to motivate their employees

to enhance their organisational performance. Now, in the below we will link these activities to

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academic theories related to employee motivation to find out which theories are in practice at

Siemens.

2.2 Theories in Practice at Siemens Scientific Management Theory

Scientific Management Theory is also known as Taylorism by the name of the inventor of the

theory Fredrick Taylor. He is known as the father of management. F. Taylor (1910) proposed,

- Use of a scientific method to perform a task in a most efficient way

- Instead of simply assigning workers to any job, match workers to jobs based on their

capability and motivation to that certain jobs where tasks are fragmented; and train them

for maximum efficiency.

- Workers performance should be monitored and controlled in order to determine the most

efficient ways of working.

- Works or jobs should be allocated to managers and workers, where the mangers should

spend time on planning and training to let the workers perform their tasks efficiently.

Therefore, principles of this theory suggests a standardization of relationship between work and

workers where works are fragmented into tasks that leads to job specialisation. Therefore,

payments are based on each workers performance. For instance, if a worker fulfills the target or

even exceeds, he will be rewarded with high payments. The loophole of this theory is that

implication of this theory at workplace may decrease a workers general ability of doing work. It

means, the theory makes workers specialised in one certain task or field only in a best way. As a

result, the workers dont have the scope of personal development or develop himself in other

fields so that his working area could be broad. In modern ages, companies as well requires

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workers with multi skills that contradicts with Taylors theory. Therefore, applying Taylors

theory in practice in a full form is quite impossible for the organisations in modern ages.

At Siemens Taylors theory is practiced to a certain extent. Employees here can decide by

themselves to find a best way to do certain job or task. But it doesnt mean that they are limited

to only one-way approach to do that job or task. Actually, the open culture at Siemens let

employees participate in work in a more dynamic and energetic way with suggesting and

implementing improvements. Siemens observes employees while work whether the process is on

right track it is not the only form of control because it could limit the growth and enthusiasm of

employees. Siemens believes pay cannot be enough to motivate the employees rather rewards

and benefits can motivate and retain them. And, thus it will lead to job satisfaction.

2.3 Theories in Practice at Siemens Maslows Hierarchy of Needs

Abraham Maslow (1954) developed a theory known as Maslows hierarchy of needs tells us of

five stages of needs in human life. At bottom theres basic needs and at top theres needs of self-

fulfillment. People are driven to work only to fulfill these different five layers of needs. Once

one need is achieved, human moves to another layer to fulfill that need. Once basic need is

achieved, human looks for safety, then he seeks for love and belongings. When human met these

three stages of needs, he wants self-respect, and at top he realizes his actual potential that

Maslow named self-actualization.

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 Figure 1.1: Maslows Hierarchy of Needs

2.3.1 Maslows Hierarchy of Needs at Work Situation

When Maslows hierarchy of needs is applied to work situations, firstly, it is the managers who

are responsible to make sure all the deficiency needs are met. Therefore, we can guess, in case of

organisations, this deficiency refers to safe environment and proper wages. Secondly, the theory

suggests to create such environment in the organisation that helps employees to develop their full

potential.

Consequences: If an organisation can fulfill the above needs implying Maslows theory, it may

experience

- An efficient, well dedicated, hardworking workers

- Results in productive and efficient performance

- Enhance overall organisational performance

And, if an organisation fails to provide the workers with above factors, it may face

- Increased employee frustration

- Results in poor performance

- Involves lower job satisfaction

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 - Increased employee turnover

Lets check out Siemens activities to fulfill employees needs to motivate them

1. At Siemens, it provides opportunities to its employees to think creatively and show their

potential by providing them a creative working environment that fulfills Maslows semi

top order needs. Siemens accepts their employees thinking and ideas, values their opinion

that help its employees to achieve their internal desires which ultimately helps them

meeting the esteem needs.

2. As we know Siemens welcome employees opinion, it also encourages suggestions and

projects from employees by rewarding them either financially or in a form of recognition

from management to individually or as a whole team. Therefore, Siemens recognizes

employees achievement.

3. As we know Siemens is an engineering company, the working environment or climate is

different from other organisations here. It encourages employees to take responsibility of

their own work. Therefore, the employees have the freedom to take decisions and make

necessary changes. Thus, it may bring improvements in technology and invention.

Employees make decisions by themselves to take control of challenges; thus employees

are fulfilling higher level of needs or self-actualization. Moreover, staff training and

development is provided to make sure self-actualization grooms with inner capabilities.

2.4 Theories in Practice Herzbergs Two Factor Theories

Fredrick Herzberg (1959) developed a theory which is known to us Herzbergs two factor theory

or motivation-hygiene theory where instead of traditional view, he generates a new idea about

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satisfaction and dissatisfaction at workplace. In the theory the term motivation refers to

satisfaction and the term hygiene refers to dissatisfaction. He explains in his research that there

are two factors which impact workers at workplace. One is hygiene factors and the other is

motivators. Hygiene factors are generally extrinsic or environmental; it will reduce the

dissatisfaction when managers provide employees with hygiene factors like good working

condition, adequate salary etc. but it will not necessarily lead to absolute satisfaction. To satisfy

the employees, there has to be motivators like recognition, responsibility, personal growth etc.

2.4.1 Satisfaction and Dissatisfaction or Motivators and Hygiene Factors at Siemens

According to Herzbergs two-factor theory the motivators at Siemens can be

- Valuing employees decision

- Accepts ideas and knowledge from the employees

- Freedom of thinking

- Employees are responsible of their own work

- Scope of personal development

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We already know that at Siemens, employees opinions are welcome and company values it. As

it is an engineering company, Siemens welcome creative ideas and knowledge from culturally

diverse employees. To promote creative environment, it lets employees thing on their own and

also let them responsibility at a challenging situation. Through training and grooming employees

can develop their personal capabilities so that they can advance their career further.

According to Herzbergs theory the hygiene factors at Siemens can be

- A well-managed and encouraged culturally diverse employees

- A different creative working environment which suits best for the employees

2.5 Challenges Siemens may Face in Context of Employee Motivation

Both the theories we discussed in this study have some common features or factors. These are

The opportunity for personal development

Achievement

Recognition

Promotion

Levels of responsibility

And these are the things those satisfy people in the workplace. There are some individuals who

love freedom and like to do what they like. Therefore, the Siemens managers need to be careful

while selecting the employees. They have to choose the right people for the right place.

Again, in Herzbergs two factor theory we have discussed about the hygiene factors. Sometimes,

these factors can be upsetting to some employees at Siemens. These factors could be

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 - Organisational policy of Siemens may frustrate some employees and be viewed to some

as a hindrance.

- To some employees of Siemens, bureaucracy or needless paperwork may be considered

to be a barrier to getting a job completed.

- Sometimes some employees may think that working conditions are not suitable for them

- Although we know Siemens value their employees, a certain individual working there

may have feeling like he is not valued nor consulted.

3.1 Recommendation and Conclusion

This study mainly shows the use of three known theories of motivation in practice in context of

Siemens. Mostly, Siemens have been implementing the key principles of the theories effectively.

As a result, the company is successful in motivating and retaining employees in a competitive

environment. Siemens have been successfully out competing their competitors by managing their

human capital in an effective way; thus they have mange to enhance their organisation

performance.

Apart from this, Siemens has to be careful about future challenges in managing and motivating

employees to keep up their organisational performance. Lets check out a number of

recommendations for Siemens below

While implementing Herzbergs two factor theory in practice, Siemens managers have to

be very careful to make sure that the hygiene factors are managed properly in order to

avoid dissatisfaction in the workplace. Moreover, they have to attentive to the issues like

personal development of the employees so that the employees can improve their

performance.

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 Siemens managers have to make sure that the dissatisfies and motivators are well

balanced in the organisation.

To reduce the dissatisfaction Siemens has to be cautious about their company policy.

Managers have to give the employees a feeling that the employees believe that they are

no different than manager; they are working as a team.

Moreover, it is important to determine both the intrinsic and extrinsic motivation for the

employees as it is important for employee productivity. You may find some employees will who

will be motivated by internal motivating factors like challenging tasks, recognition etc. Again

you will find some employees who will be motivated by external motivators like incentives, pay,

bonuses. Therefore, managers have to note and take after the employees to understand each

persons motive and do accordingly.

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References

1. Annual Report, 2012. Siemens. [Online] Available at:

https://www.siemens.com/annual/12/en/company-report/employees-and-management-

culture/ [Accessed 12 June 2016].

2. Anon., 2016. Siemens. [Online] Available at: http://www.siemens.com/about/en/

[Accessed 10 June 2016].

3. Anon., 2016. Siemens. [Online] Available at: http://www.siemens.com/about/en/

[Accessed 10 June 2016].

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