Organization Structure & Design (OB-III)

Business Excellence Model Practice and HRM Implementation

To Prof. Dipak Bhattacharyya By Abhilash Bodanapu (UH11002) PGDM ( HRM ) 2011-2013

Xavier Institute of Management Bhubaneswar 751013

Business Excellence Model (BEM) also known as the European Foundation for Quality Management (EFQM) Model : EFQM MODEL OR THE BEM:
The BEM is a widely used framework that helps companies to review their performance and practices in a number of areas and identify targets and actions for improvement. It is a benchmarking and audit framework originally developed in the European Foundation for Quality Management (EFQM) but based on the philosophy of total quality management sees the need for holistic development and growth of the organization.

THE EFQM MODEL IN DETAIL:

It makes use of a core model which is split into two aspects results, which are measurable indicators of business success, and enablers, which are measurable indicators of practices inside the organization that can lead to business success. Importantly results are not measured simply on financial criteria (a theme shared with the balanced scorecard, another widely used organizational audit and development tool) but include things like employee and customer satisfaction. There are 500 points available for each of the two sections the model looks like this.

The framework is well established and widely used, and is supported by a detailed assessment template, which allows trained assessors to allocate a score in each area. The theoretical top score has never been reached but each year there is a competition, which some (mostly large) firms enter and which makes a series of awards for high scorers. In this way an emergent model of best practice has become established and this provides a target

towards which others can move. The documentation of what the winners achieve and how they do so is an important part of the learning aspect of the approach. Companies can assess their performance with respect to this kind of a model, where, results could be financial, customer satisfaction, people satisfaction and impact on society. Again these can be achieved through working on enablers like leadership, people management and process management.

Business excellence model- Nokia Siemens Networks Mode of Operation

Result orientation Aspect of BEM model
The Nokia Siemens Networks Mode of Operation, which is derived from market needs and dynamics, alongside the product portfolio, brand and culture define how the organization works and lay out the key design principles, process areas, organizational set-up and key accountabilities and governance to be followed. This can be identified as The key design principles determine how the organization is managed and have been developed from the brand values of pioneering, passionate and pragmatic, enabling us to provide customers with: New ways of working involves from product vendor to solutions partner New ways of thinking, based on the insights into the market, technology and consumers New efficiencies, through solutions that make the best use of customers existing assets Creating the company culture of Nokia Siemens Networks will take time, is the responsibility of everyone and involves the integration of many aspects of the business including processes, customer relationships, the brand, the code of conduct, recruitment operations etc. Six target values, supported by eight sets of individual commitments have emerged from the earlier cultural direction statements and surrounding discussions.

Identification of Prime components of BEM Model in Nokia Siemens

We win together We innovate solutions We focus on customer success We communicate openly We inspire We build communities

Customer focus aspect of EFQM Model

In addition, embedded part of the organizations culture, as defined in the code of conduct which elaborates on our respect for the highest standard of ethical behaviour must always be a deeply. Human Rights Equitable workplace practices An environmentally sustainable business that extends to our supply chains Our commitment to work against bribery and corruption.

Management by well-defined processes

Nokia Siemens Networks consists of two main organizations (Fig 1) Customer and Market Operations Communication Technology and Operations

Supporting these are the key functions of Finance, Human Resources, Business Excellence, Strategy & Business Development, Corporate Affairs, Legal and Communications.

(fig 1)

Corporate Social Responsibility Aspect of BEM Model

Unite and connect communities: Providing new solutions for rural

connectivity to help connect the next billion, and to support their social and economic development.

Disaster relief and preparedness:

situations.

Working with its parent

companies (Nokia and Siemens) to provide technical expertise in disaster

Improve access to education: Creating initiatives that improve

education opportunities, contributing sustainably to improved educational outcome.

Award For Business Excellence - Nokia Siemens Networks Village Connection

won 'Excellence in Innovation' Award at the 2nd TEMA National Telecom Awards Nokia Siemens Networks had announced that its Village Connection solution to provide voice and data access in rural areas and had won the Excellence in Innovation award at the 2nd annual National Telecom Awards ceremony held by the Telecom Equipment Manufacturers Association (TEMA) on 2008.

Customer Orientation in Practice

Nokia Siemens Networks Village Connection is a unique GSM and IP-based solution deigned to extend mobile voice and data coverage to rural areas. where it is often economically unviable for telecom service providers to provide access. Village Connection combines technology with business model innovation to create a solution that is easy to implement, and benefits everyone involved. In addition, global telecommunications enabler Nokia Siemens Networks also provides consulting services to operators and service providers analyzing the most appropriate approach to reach rural markets. Village Connection is a software based solution that comprises GSM Access Points providing village wide coverage. A GSM Access Point forms a complete mini network where local calls are connected directly within the village. These access points can also be linked to regional Access Centers that carry the traffic to and from other mobile or fixed networks. A local entrepreneur hosts the GSM Access Point and interacts with village subscribers on operator's behalf.

Conclusion
The correct measure of the effectiveness of the EFQM model in Nokia Siemens Networks is its widespread use as a management system and the progress linked with its key management tool of self-assessment. It helped the organization to identify its success formula, identify the lacuna and transform the organization towards achieving excellence. Customer focus was the topmost agenda and it reaped the rewards as well.