Organization Behaviour - Tesco Vs Siemen

Organization Behavior Syed Zafir Momin
ORGANISATION BEHAVIOUR
REPORT TITLE SIEMENS AG AND TESCO PLC
PROGRAM MQP – JAN 2014
TITLE
WRITTEN BY SYED ZAFIR MOMIN
WORD COUNT 6424
DATE 5th June, 2014
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TABLE OF CONTENT
INTRODUCTION ........................................................................................................................................... 3
LO1 – 1.1 – ORGANIZATION STRUCTURE AND CULTURE ............................................................................... 4
LO1 – 1.2 – IMPACT ON THE PERFORMANCE OF A BUSINESS ........................................................................ 7
LO1 – 1.3 – FACTORS INFLUENCE INDIVIDUAL BEHAVIOUR AT WORK ........................................................... 8
LO2 – 2.1 – THE EFFECTIVENESS OF DIFFERENT LEADERSHIP STYLES IN SIEMENS AG AND TESCO PLC: ......... 10
LO2 – 2.2 – HOW ORGANIZATION THEORY UNDERPINS THE PRACTICE OF MANAGEMENT WITHIN SIEMENS
AG ............................................................................................................................................................. 11
LO2 – 2.3 – EVALUATION OF THE MAIN APPROACHES TO MANAGEMENT THEORY ..................................... 12
LO3 – 3.1 – THE IMPACT THAT DIFFERENT LEADERSHIP STYLES MAY HAVE ON MOTIVATION IN
ORGANIZATIONS IN PERIODS OF CHANGE .................................................................................................. 12
LO3 – 3.2 – THE APPLICATION OF DIFFERENT MOTIVATION THEORIES WITHIN THE WORKPLACE ................ 14
LO3 – 3.3 – THE USEFULNESS OF MOTIVATION THEORIES FOR MANAGERS IN SIEMENS AG ........................ 15
LO4 – 4.1 – MECHANISMS FOR DEVELOPING EFFECTIVE TEAMWORK WITHIN SIEMENS AG ......................... 16
LO4 – 4.2 – FACTORS THAT MAY PROMOTE OR INHIBIT THE DEVELOPMENT OF EFFECTIVE TEAMWORK IN
SIEMENS AG .............................................................................................................................................. 17
LO4 – 4.3 – EVALUATION THE IMPACT OF TECHNOLOGY ON TEAM FUNCTIONING WITHIN SIEMENS AG ..... 19
CONCLUSION ............................................................................................................................................. 20
REFERENCING ............................................................................................................................................ 21
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INTRODUCTION
What is Organization Behavior and Culture?
Organization behavior is the study of specific or group behavior and arranging them precisely in the organization
structure to progress in organizational performance and effectiveness.
“Organization behavior is concerned with the study of the behavior of people within an organizational setting.
It involves the understanding, prediction, and control of human behavior” (Mullins, 2010)
Organization Culture is a concept that has developed from anthropology. In simple words by Atkinson (2006)
“How things are done around here”. It is based on traditions, values, polices, beliefs and attitude along with
development of the individual for everything we do and think in an organization. Atkinson (1990p6-10)
This report will compare Siemens AG and Tesco PLC in contrast to their organizational structure and culture. It
will highlight the difference between the tall and flat structure. We will also throw light upon the different
culture these companies have adopted in according to their structure. It will also discuss the possible changes
the organization can adopt to enhance their performance and efficiency.
Siemens AG is a group founded in 1847 in Berlin. Its founder was Werner von Siemens. The Headquarters are in
Munich and Berlin, Germany. Mr. Gerhard Cromme is the President & CEO of the conglomerate. The group
operates in 4 major sectors: Healthcare, Energy, Industry and Infrastructure & Cities. It generates annual
revenue of 75.88 Billion Euro and total assets of 101.93 Billion Euros. Mr. Gerhard is also a chairman of the
supervisory board of Siemens AG. There are 20 members in the supervisory board. As per the German
Codetermination Act the board consist of half of the company shareholder and the other half company
employee. Siemens AG presently has 362,000 employees working around the globe in different division.
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Tesco PLC was founded in 1919 in Burnt Oak, Middlesex. Its founder was Jack Cohen The Company has
diversified its business in Grocery, Books, Clothing, Electronics, Furniture, Petrol, Financial services and Telecom.
The board consist of Sir Richard Broadbent who is the chairman with 2 executive directors and nine independent
non-executive directors of the organization .Its revenue is 70.89 Billion with assets 50.12 billion pounds
(2013/14).
LO1 – 1.1 – ORGANIZATION STRUCTURE AND CULTURE
Organizations structure is the hierarchical arrangement of lines of power, rights, duties of an organization and
communications. Organizational structure determines how the roles, power and responsibilities are allocated,
controlled and coordinated. It also describes the flows between the different levels of management.
Organizations have two kind of structure tall and flat structure as given in diagram 0-1. Tall structure
organizations have many levels of hierarchy with narrow span of control in which the managers have very few
staff under them and there supervision is very control being tall structure the line of communication is long,
making the firm unresponsive to change. Flat structure organizations have few levels of hierarchy and line of
communication is short making it more responsive to change. The span of control is wide as the tasks must be
vicarious and managers can feel overloaded. In tall organization the majority of decisions are taken by senior
managers and then passed down the organization hierarchy, but in flat organization the authority is down the
chain of command thus reducing the speed of decision-making.
Diagram 0-1
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The organization cultures are four types as reviewed by Mullins (2002) the power culture, role culture, task
culture and person culture. Mullins (2002) reviews Handy’s (1993) development on Harrison’s (1972) ideas and
identifies four main types of organisational cultures:
1. Power Culture – It concentrates power to very high level or a small group and its controlled like a web. It
needs few rules and little bureaucracy.
2. Role Culture – It is more based on the power of the person who delegates within a highly defined
structure.
3. Task Culture – In this the power is derived from a certain team with the expertise to execute against task.
This culture is confined to small team where people are skilled and specialized in there own area of
expertise. This is often used in Matrix Structure.
4. Person Culture – It is formed when an individual believes he believes himself superior to the organization.
Since the concept of the organization suggest that a group of like-minded individual pursue
organizational goals. Some professional partnerships operate well as person culture, because each
partner brings a particular client or expertise to the firm.
Siemens AG is a conglomerate (It is combination of two or more corporations engaged in entirely different
businesses that fall under one corporate group), which operates as a flat structure with little mid level
management in the hierarchy. It believes in skilled workers being more productive when they are directly
involved in the process of decision-making process. It operates in wide span of control with low level of
hierarchy. It has been following this structure to promote its employee through a decentralized decision making
process. As eliminating the mid level management promotes comments and feedback of the baseline staff by
reaching higher management to be acknowledged. This exhibits that Siemens AG follows a Task and Personal
culture across the organization with its high performance team. The issues in flat structure are have so many
different division in same location that the culture varies, as in tall structure we have seen the culture is very
similar as they all are under same roof.
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(Siemens AG – Flat Organization Structure)
Tesco PLC is a public listed company thriving on a tall organization structure. In the company all employees are
closely supervised, as the span of control is narrow and each manager is responsible for a small number of
employees. As given in 1.1 its structure, it is remote to change and is more internalized. In Tesco management
structure and responsibilities of each manager are clear and defined. It also demonstrates power and role
culture across its tall structure organization. As in tall organization success of every employee and manager is
clear therefore, tall organization structure has clear promotional ladder and reward. As we are aware Tesco PLC
has lost its market share due to its tall structure and according to Harrison (1972) its power and role culture
unable to adapt the market trends. As we can see in the diagram below the employee are closely monitored
and number of people reporting to one manager are very less compared to Siemens AG.
(Tesco – Store - Tall Structure)
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LO1 – 1.2 – IMPACT ON THE PERFORMANCE OF A BUSINESS
Siemens AG being a flat structure organization thus have a strong culture and with less middle level managers.
The employee communicates directly to the managers. The ideas with the help of the managers are acted upon
promptly. They support new innovation and spend a lot in research and development to provide innovative
products. The employees and managers have full control of every task that is to be accomplished. As both of
them stay close and therefore respond quickly to the change in demands and requirements of the customers. It
also empowers their staff for effective delegation. The culture is more democratic, providing flexible working
environment and dress code. Staff’s loyalty is also very high as they enjoy working. The company is known for
deploying matrix projects. As they have highly skilled professionals, it helps them to pull their best resources as
per the project requirement. Being a flat structure organization it follows a person culture around the
organization.
In Tesco PLC being a tall structure organization they have weak culture. The company has narrow span of control
with more empowered employee. As the manager have very few staff to manage and employees are given rules
and regulations they need to comply upon. They also relay on the instructions given by their manager in charge.
Their decisions take place at top management. The company has task culture and as they are subject to certain
task and command there is low level of motivation. The company is slow in adapting a change. Due to its tall
structure it deploys matrix team across its levels. These projects consist of specialist team that specializes in
their core field as given in diagram 0-2. Matrix structure supports tall structure acting flatter with task orientated
project teams. Tall structure being internally focused and maybe missing market opportunities whilst flatter
structures have motivated workers who support more external focus and seek market opportunities.
(Diagram 0-2)
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LO1 – 1.3 – FACTORS INFLUENCE INDIVIDUAL BEHAVIOUR AT WORK
The factors that influence persons behavior at work is because when his Job roles and responsibilities conflicts
with his behavior, decision making, taking initiatives, acting upon responsibilities, and delegation. Siemens AG
follows “Peoples Excellence” one of the most important strategy based on Responsibility + Being trusted =
Engagement, commitment and high performance. Focused on real motivation comes from within an
individual, valuing their efforts. Siemens AG believes their people are a source of competitive advantage. This
kind of strategy shows that it recruits right people for right job that will eventually develop both the
organization and individual. Chief Executive Officer of Siemens, Mr.Klaus Kleinfeld said in a Lecture in
Wharton University “In today’s world, knowledge travels faster than ever before, so if you are talking about a sustainable
competitive advantage, probably the only one is the quality of the people you have and the way they interact as a team,” This
indicates that perception of the management of Siemens AG believes empowering their employees with
ability to take decision brings positive and productive results. Siemens AG has taken stress as a factor that
destroys individual’s performance and health. They provide challenging activity like in Great Britain they are
“High performance Partner” of Rowing Team. This activity keep people positive and also motivates them to
take new challenges. They also provide Private health care program to make sure they are at their best health.
Siemens AG employees are highly motivated. As being able to work under less supervision and being well
acknowledged. As defined by Chartered Management Institute “Motivation is the creation of stimuli, incentive
and working environments that enable people to perform to the best of their ability. The heart of motivation is
to give people what they really want most from work. In return manager should expect more in the form of
productivity, quality and service”. Different Motivational theory is explained in contrast to the organizations in
LO3-3.2. In an article by Telegraph it stated that Siemens emotional intelligence is interconnected with
leaders whose revenue and growth figures were strong and these leaders put a premium on collaboration and
teamwork. Emotional intelligence is the ability to motivate oneself and persist in the face of frustration. It is a
concept that has been identified as a key aspect of managing people efficiently. (Coulson-Thomas, C. 1998).
That shows that Siemens provides great benefits and bonus to there team who are able to demonstrate
different skills. The employees in the organization are more Extroverts. Extroversion meaning in dictionary is
“the act, state, or habit of being predominantly concerned with and obtaining gratification from what is
outside the self”. A person having falling under these abilities is called Extrovert. Extroverts are humans that
tend to enjoy human interaction they tend to be enthusiastic, talkative and assertive. They also have strong
self-confidence with a charisma. They can be at times controlling but have a very sharp in interpersonal skill.
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They are the kind of people prefer to work in Sales, Marketing or Business Development they are not good in
back office jobs. As they have the flexibility to work in less supervision. As given in McGregor Theory
(explained in LO3-3.2), It clearly implies that Siemens AG management follows theory Y. As theory Y states
that employee with self-direction and self control in service of their objectives that they are committed. It also
implies motivation occurs at the relationship, honour and self-actualization level as at the psychological and
security level.
In contrast to Tesco PLC believes “Everyone welcome” and believes if a person is passionate, striving, driven,
committed, willing, determined, motivated, adaptable, flexible and devoted can work with Tesco PLC. They
believe that their training and development program after graduation can help any individual to work with
them. On the other hand the employee at Tesco PLC are more Introverted due to its task culture. Introversion
meaning in dictionary is “the state of or tendency toward being wholly or predominantly concerned with and
interested in one's own mental life”. A person falling under these qualities is called Introvert. Introverts are
shy people that are less inclined to teamwork. Their actions and decisions are very insular. The perception of
the management in the Tesco PLC believes that all employees are obliged to their task under their norm and
all innovative ideas are share and discussed in the top management. The company’s approach is Theory X of
McGregor believing that average person is lazy and has an inherent dislike of work. It also says that average
person avoids responsibility, prefers to be directed and lacks ambition and values. Tesco PLC has different
approach toward their employees’ loyalty. After completion of 6 months it provides a privilege card that
provides 10% discount and club points. It also provides a package with health care, Pension and a program
called supporting your life style. Tesco PLC has been focusing on international business in China and America.
Due to lack of concentration on its cash cow Great Britain it’s recorded that it has fallen 1% in the past 20
years. Lack of support to employee has made them less motivated at work, which has made the consumers to
move to competitors. Stress is a complex and dynamic concept; it is caused by various factors individual
difference, types of personality if a person in introvert or extrovert, nature of job and occupation. Stress is
mainly caused when a wrong person is assigned to a wrong job. If an introverted person is assigned to
extrovert environment as he will be unable to entertain his job due to his personal traits. It has been a
challenge as these employees are supervised very closely and are not given any room to take decision on their
behalf. The organizations culture is the main factor that influences the stress among the individual.
Understanding the employee and assigning to his job can create a positive change. Also implementing Kaizen a
Japanese principal “Continues improvement” can help individual to lower the stress level and be more
productive, As this process is more of on job learning and can improvise along with the span of time.
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LO2 – 2.1 – THE EFFECTIVENESS OF DIFFERENT LEADERSHIP STYLES IN SIEMENS AG AND TESCO PLC:
Leadership styles can be recognized by how authority is used, how a leader relates to others, employees
minds and efforts are used and how a leader communicates. Leadership and Management are often
interrelated as management is used for employee being given certain roles and targets with a team to
accomplish it, on the other hand leadership is a part of a job where an individual is able to demonstrate
willingness and enthusiastic behavior for its follower. An effective leader has the ability to manage and
communicate his team to capture his vision as there vision. Leadership is evaluated on how supporting or
directing is his style.
Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified three different styles of
leadership, in particular around decision-making. The three kinds of leadership style are Autocratic,
Democratic and Laissez-faire. Autocratic style is more of directing the employee it is one-way communication.
It is based on strict instructions in authoritarian way of giving instruction to the employee. The employee is
obliged to certain rules and is confined to complete their task, as they are not highly skilled. Democratic style
is more liberal toward monitoring their employee and believes they are able to demonstrate quality of work if
they are given direction. They are highly skilled. Siemens AG being a flat structure organization with a task and
personal culture has a democratic leadership style as the focus of the power is more with in the group a whole
and there is greater interaction within the group. The Leadership functions are shared among the members of
the group; Manager is more part of the team then some one more superior. In the organization the decision-
making and implementing of the system is worked in collaboration. As the company is more involved in
creative thinking and new ideas are support with possibility of failure. It believes that without certain degree
of risk the leverage to develop new ideas is not possible. As the teamwork independently on the share in
accordance to the group task are shared based on individual specialization. This democratic style has enabled
the team to adapt to change and new innovative technology. “Siemens Leadership Excellence” is development
program for leaders to achieve even higher expectation than Siemens. It is designed to prepare leaders for
challenges ahead. This program is designed to provide time to reflect on leadership roles. It also focuses on
higher-order leadership skills away from day to day business. It believes that people are like its technology and
innovation and are a source of competitive advantage. To make the most of the advantage, Siemens makes
sure that its employee work on company’s heritage of innovation. Tesco PLC is a tall structure organization
with a power and role culture it runs a very autocratic style. It has adapted its style because its business is
supply driven. Their major employees are confined to their task and role. The levels of people employed are
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not developed and require sense of direction. Their risks are very high as it is dealing directly with end user a
minor factor can make people move to different suppliers. Its culture is long embedded and is very difficult to
change. Major issues with this leadership are even after seeing a threat it is unable to react to the change
making it at risk. As we have seen Tesco PLC has failed to grow in China and America. It has also recorded 1%
downfall in profits in the U.K, Which has been a cash cow for them. In comparison Siemens AG has worked on
flat structure so the risk is very minimal as they are more compliant to change. Also, Siemens AG always
deploys matrix project as to minimize the risk of failure in any possible segment.
LO2 – 2.2 – HOW ORGANIZATION THEORY UNDERPINS THE PRACTICE OF MANAGEMENT WITHIN SIEMENS
AG
There are different framework to analyze the kind of approach the organization takes the basic are the
classical (Scientific management and bureaucracy), Human relations, systems and contingency. In accordance
to classic management theory it emphasized issues such as the unity of commands, organizational
specialization, span of control and the application of scientific management as this factors relates to McGregor
X Theory. In Systems approach it sees and organization as a whole and a part of larger organization. The idea
is that any part of an organization’s activities affects all other parts. On the other hand Human relation
emphasizes that the needs of workers should be satisfied in order for them to be more productive in the
organization. Contingency takes the view that the best style of leadership depends upon the factors active in
the specific situation. However, We cannot use classical management approach in Siemens AG as this
approach is good in tall structure organization with McGregor’s X. As Siemens AG adopts Human Relations as
it relates to McGregor’s Y theory, but we have also seen contingency in Siemens AG in International offices. As
the group structure remains the same the culture varies due to the situation and the urbanity. Siemens
believes that if needs of the individual are not satisfied it demotivates them to perform there task effectively.
It uses talent management to match the talent with the task to produce competitive advantage. Talent
management helps them to enable job enrichment and job enlargement. Their employees are provided with
the guidance and support to achieve their full potential. Therefore productivity will be effective and efficient.
This approach persuades the management into adopting a more positive job in leadership. It also contributes
to key improvement in physical working environment for the workers. (Mullins, L.2013)
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LO2 – 2.3 – EVALUATION OF THE MAIN APPROACHES TO MANAGEMENT THEORY
As we have seen scientific management, that is also called Taylorism. Taylorism as the first form of scientific
management, which was followed by new iterations; thus in today's management theory, Taylorism is
sometimes called Classical. Scientific management’s application was contingent on a high level of managerial
control over employee work practices. This necessitated a higher ratio of managerial workers to labourers.
The trouble in this management was there was no differentiating of intelligent, detail-oriented management
this misguided micromanagement caused interpersonal conflict between workers and managers. As we have
seen in LO1-1.3 the different factors that are responsible for human behaviour at work. As we are aware all
individual are different from each other the most efficient way of working for one person may be inefficient
for another. Also the economic interest of workers and management are hardly identical. Example: Some
people are motivated with monetary and some are with appreciation and added benefits. So the application
of Scientific Management in Siemens AG can create resentment and sabotage the workforce as we have seen
in LO2-2.2. Considering Siemens AG management process shapes its managers to understand their people’s
human behaviour, as their perception is theory Y of McGregor. They also emphasise on good human relation
as it increases productivity by motivation. They promote motivation, leadership, two way communication and
group dynamics. As these are the factors are the core of Human Relation. In Tesco PLC the management is
classical as there perception is theory X of McGregor, Scientific Management approach is more relevant as
there is strong control of management on the employee. As the employee is more tasks oriented they are not
motivated to bring new ideas or innovation, as they are not high skill labour.
LO3 – 3.1 – THE IMPACT THAT DIFFERENT LEADERSHIP STYLES MAY HAVE ON MOTIVATION IN
ORGANIZATIONS IN PERIODS OF CHANGE
Leadership is the process of social inspiration in that a person can procure the assistance and support of
others in the accomplishment of a common task. Management styles are divided in the main categories of
autocratic, paternalistic, and democratic. Robert Tannenbaum and Warren H. Schmidt (1958, 1973) argued
that style of leadership is dependent upon the prevailing circumstance; therefore leaders should exercise a
range of management styles and should deploy them as appropriate. As in Blake Mouton Managerial Grid it
focuses on two kind of leadership people oriented leadership and task oriented leadership, as we have seen in
the diagram 0-3 below. Task oriented leader will take all the project and mark the time frame and appoint the
job to the concerned, but a people oriented leader will discuss the project with the team to find the know-how
of the person then make the time frame. If you prefer to lead by setting and enforcing tight schedules, you
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tend to be more or task-oriented. If you make people your priority and try to accommodate their needs, then
you’re more people-oriented.
Diagram 0-3
As we know that Siemens AG follows a democratic leadership style with its high performance culture and it’s
employee are highly motivated. As in Blake Mouton Managerial grid the style of leadership can have impact
on staff motivation, Siemens leadership is high in people and production oriented. As the organization takes
people as there competitive advantage like their technology and innovation. In a period of change if Siemens
AG implements a dictatorial styles that is an authoritarian leadership style can affect the employees in various
ways. As this style follows a one-way communication the high skilled employee will not be able to
demonstrate their view, as there will be no room for discussion. As the employee will be subjected to set rules
and will be rewarded on individual output, there will be conflicts in teamwork. As all these factors will de-
motivate the employee it will drive them to look for different opportunities. If transformational leadership is
applied it will generate great awareness of the importance of the purpose of the organization to understand
the change to give outcomes. It will encourage them to excel their own self- interests for the sake of the
organization and its team. As transformational leadership is compromised of idealized influences, inspirational
motivation, intellectual stimulation and individual consideration. As all these factors favors the organization
behavior of Siemens AG it will be the most idealistic approach to motivate its staff in a period of change.
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LO3 – 3.2 – THE APPLICATION OF DIFFERENT MOTIVATION THEORIES WITHIN THE WORKPLACE
As chartered management institute has explained motivation as given in LO1-1.3. It is the driving force within
a person that persuades them to achieve some goals in order to fulfill some need or expectation. The basic
motivation model explain that Performance = functions (ability X motivation). There are two kinds of
motivation: Extrinsic motivation that relates for rewards that are tangible like a salary raise, the work
atmosphere and condition at work. Intrinsic motivation is more related to ‘psychological’ rewards things that
are intangible such as opportunity to use once talent, sense of challenge and attainment and being treated in
a caring manner.
Maslow’s Hierarchy of needs:

Maslow suggested that human needs are arranged in levels of importance. He suggested that people have
wants and these wants will increase based on what they have attained and fulfilled. It starts with physiological
needs, safety, Love, Esteem and Self-Actualization. It means that first human looks for basic need like hunger
and thirst, sleep, sensory pleasure and sex. Then it’s the safety of being protected from all danger and any
threat. Thirst level is the Love or social need is friendship, affection it is giving and receiving love. After that, is
Esteem it is like ego the desire for strength, confidence and freedom. The highest level is Self-Actualization,
when lower level needs are no more motivator. Next level is demand satisfaction. As all organization provide
basic salary with living allowance, Housing allowance and Health care. The Basic salary + living allowance is for
physiological need. Housing + Heath care is for safety need. The social need is given with the team or peers
and management. Esteem is mainly fulfilled with the respect and attention is given in an organization. Self-
Actualization is when a person is able to self-motivate he has efficient perception of reality. It is when a person
is stronger and calmer then ever. (Maslow, 1968,1970)
Hertzberg two factor theory:

Frederick Herzberg (1966,1987) theory is a one step further of Maslow’s Theory. His theory proposed that
there were two factors: Hygiene factor, In this he focused that absence of interpersonal relations, supervisor,
company policy, working condition and job security can promote dissatisfaction. It was also referred as
context of work. Motivation Factor, It makes up a range leading from no satisfaction-to-satisfaction. These
motivators are the job being inspiring, achievement, identification, and accomplishment. As in Siemens AG
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both the factors are given great importance as talent management along with leadership style of management
are key aspect to motivate.
McGregor Theory X and Y:

Theory X and Theory Y are based on motivation in human behavior. This theory is based on two extreme
possible behaviors. Theory X organization the workers are lazy, unmotivated and will avoid work at all possible
ways. They are inherently dislike work thus close supervision is required for productivity. A narrow span of
control is needed in every level of the hierarchical structure. Theory X manager tend to end in blaming
someone. Their only motivation is money. These people lack ambition, dislike accountability and preferred to
be led. These people are desire security. McGregor recognized that X Type workers are in fact usually in small
number and yet in mass organizations such as large-scale production they are unskilled workers. Theory Y
organization the workers are self-motivated and thrive on responsibility. The Management style is more
participative and they involve employee in decision-making. Y Type workers are encouraged to develop
expertise and make suggestion. The appraisal is frequent and encouraged to uplift their motivation. Y Type of
worker is skilled and their approach is well developed. This kind of worker is mostly found in flat structure
organization that believes that they are creative and able to manage their skills to benefit the organization.
(McGregor, D. 1960).
As in Siemens AG we have seen that all Maslow’s level of hierarchy and Herzberg Theory is more relevant.
They have more of Y type employee, as it has narrow span of control. They are self-motivated and are skilled
workers. The managers in Siemens AG are more a part of the team then a dictator. The organization uses
different approaches for appraisal of its workers.
LO3 – 3.3 – THE USEFULNESS OF MOTIVATION THEORIES FOR MANAGERS IN SIEMENS AG
Mangers in Siemens AG uses Herzberg theory as this theory covers all the factors of Maslow’s theory and adds
more to the context of job. Hygiene Factors, Managers can adopt to improvise policy to provide job security.
They can develop vibrant work condition that is more suited to their employees’ comfort. Managers can
organize challenging activities that are teamwork oriented, as it will develop trust between their peers and
supervisors. As these factors don’t satisfy the employee but lack of these factors can create job dissatisfaction.
As for the motivational factors management can make there task more challenging. They should provide room
for achievement and gain their recognition in the organization. As we have seen in 3.2 Maslow’s Hierarchy of
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needs in contrast to managers at Siemens AG are using there human resource development (HRD) strategy
that focus on employee training courses and if the employee is interested in different kind of work. The HRD
strategy uses different methodology to make their employee life better and balanced. In Maslow’s Hierarchy it
is the self-actualization state, they believe if a person is in this state he will be able to self-motivate and grow
with organization. In conclusion, as these factors can develop an individual but every employee has different
things that motivate a common ground cannot be used. They need to focus on individual person and
understand his driving force. As in Siemens AG employees are type Y, high skill labors and require more than
just basic necessities.
LO4 – 4.1 – MECHANISMS FOR DEVELOPING EFFECTIVE TEAMWORK WITHIN SIEMENS AG
To understand effective teamwork, we need to know the difference between team and group. Group in the
workplace usually comprises three or more employee who recognize themselves as a distinct unit or
department, but who actually work individualistically of each other to achieve their organizational goals. Team
comprises of three or more employee who may come from different departments within a business, but they
collaborate together over time to achieve some set purpose or project. Duchanan and Huczynski said “team is
a small group of people with complementary skills, who work together as a unit to achieve a common
purpose for which they hold themselves collectively accountable” (Duchanan and Huczynski, 2013). Group
consists of two types formal and informal teams. Formal group is made by an organization to serve a task or a
project but informal team is to satisfy personal or psychological needs of an individual. Meredith Belbin is a
British researcher and management theorist best known for his work on management teams. Belbin focuses
on the relationship between personality, ability and the effectiveness of management teams. Belbin defines a
team role as “tendency to behave, contribute and interrelate with others in a particular way” He describes
“Team-Role” a pattern of behavior characteristics of the way in which one team member interacts with
another team member, where their performance facilitates the progress of the team as a whole. In his book
Management Teams: Why They Succeed or Fail, Belbin asserts that only eight useful team-role types could be
identified. Later, however, a ninth team-role, that of Specialist, has been added to his taxonomy (Team-Roles).
Belbin team role are clustered according to there orientation. Action oriented roles – Shaper, Implementer
and completer or finisher. People oriented roles – Coordinator, Team worker and Resource Investigator. The
whole idea of Belbin’s was by understanding your role within a particular team you can develop your strengths
and manage your weakness as a team member and so improve how you contribute to the team. Team leaders
often use the Belbin model to help create more balanced teams. Teams can become unbalanced if all team
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members have similar styles of team roles or behavior. If team members have similar weakness, the team as a
while may tend to have that weakness or if they have similar teamwork strength they may tend to compete
for the team task rather than co-operate. As we have seen in Siemens AG it is a Team oriented organization,
where every project is executed through teams or groups as it enhances productivity as all team member
represent a different expertise to the project. Effective teamwork can be accomplished using Belbin’s team
role model. Analyzing the team membership using Belbin team roles as checks for potential strengths and
weakness within Siemens AG. Individual members of the team need to be observed to see their behavior,
contribution and also their behavior within the team. Manager needs to write the team member’s strengths
and characteristics or weakness as observed. Strength and weakness of each member of the team has to be
linked to the most accurately described among the Belbin description of team roles. Then it is possible to
analyze where the team’s strength is or its lack in certain ability. Example: Many Shapers can weaken a team if
each Shaper wants to pull the team in a different direction. Also, Siemens AG follows a task culture as we have
seen in L01-1.1. They believe is the employees are truly involved in the business and are a part of the success
it will motivate. Siemens AG under its people excellence it is believed that trust drives its high performance
culture. Team member’s in Siemens AG work on a shared goal as a group. They have a sense of shared
responsibility for the shared goal to achieve their objectives. This is all possible to the strategy of Siemens AG
to make the most use of their employee’s talent.
LO4 – 4.2 – FACTORS THAT MAY PROMOTE OR INHIBIT THE DEVELOPMENT OF EFFECTIVE TEAMWORK IN
SIEMENS AG
Teamwork is about galvanizing a group of people towards a shared objective. It is also about bringing the best
out of each individual in the pursuit of a collective goal thought worthy of being realized. According to Jon R.
Katzenbach and Douglas K. Smith ‘a team is a small number of people with complementary skills who are
committed to a common purpose, set of performance goals, and approach for which they hold themselves
mutually accountable.' (Harvard Business review, July 2005)
The success of an effective teamwork is a vital part of Siemens AG, as it wants to prosper in the global
community. In order for Siemens AG to achieve its vision, mission and goals it needs to understand the impact
and importance of effective teamwork. There are many potential distractions, obstacles and other detriments
that can lead to failure, but it will require deftly avoiding these in favor of beneficial traits instead in order to
overcome the job at hand. Recognizing these factors may help contributors be more planned in their
17
objectives. Siemens AG operations based on teamwork culture as quoted by the Chief Executive Officer Mr.
Kaus Kleinfeld of it “Many times in my life I have seen how one individual can make a big difference,
particularly when working in a great team. The quality of our people and of our teams is our most valuable
recourse, particularly in today’s world where knowledge flows round the globe with lightning speed and is
easily available”.
As most of the factors that can enhance the teamwork can be a barrier or demotivate their team.
Communication is basic crux for the team member as without it they will not be able to convey their direction
and share information. Employees in Siemens AG need to emerge as leaders to promote productivity as the
team member provides ideas others need to interpret its complex concepts, as Siemens is known for its
innovation. Positive attitude, It the team member believe that the goal or project was doomed to fail they will
not put a sincere effort. In addition if the teammate have opinion concerning between each other can affect
their success, as having a negative opinion can shelter antagonistic working environment. Planting seeds of
conflict or showing unwillingness to the among team members will effect there communication. In its place
the team members should enter the group with full intention on completing there given task with out
negative complaints or comments. Trust is one of the essential factors that promote effective teamwork
because team members towards task completion are rendered impossible or altogether unavailable without
it. Team member do not share as much information with each other, as they tend to shoulder more of the
load than they can sincerely handle. It is impossible to take risk even if it’s wisely calculated if there is no trust.
Siemens AG trust its employee as they work on project that have risk factors they understand that in doing
something innovative there are risk involved.
Leadership is another factor that promotes and inhibits the team performance. If the organization’s style is
Democratic and its managerial style as we have seen in LO-3.1 Blake Moutons managerial grid is high is people
and production oriented like in Siemens AG he will be a “Team leader”. As he will be able to support by
coordinating among their team members to make sure all the task are completed effective and efficiently. If in
a situation where one member is lacking or having issues it will guide and support them. As in the case if their
approach is more directives and production oriented it will affect the process, as the team member will lack
support. Motivation is also an important factor in the leadership as it drives the team members to achieve and
use there shared potential in accomplishing the project. Human resource development is one the key factor to
encourage the employee as in Siemens AG, if a workers needs to attend a training that can enhance his or her
skill to have a better career it is appreciated and consider. As this factor can affect the efficiency of an
individual so as team. Siemens AG believes that organization is nothing without its people; it has one of the
18
worlds most efficient and motivated workforce. If Siemens AG analyzes their individual employee strengths
and weaknesses can give good opportunities to utilize their skills entirely to their growth. That will enhance
them to make effective and efficient teams.
LO4 – 4.3 – EVALUATION THE IMPACT OF TECHNOLOGY ON TEAM FUNCTIONING WITHIN SIEMENS AG
Workplaces are adapting new technology at an exponentially increasing rate over the last few decades.
Organizations see technology as a competitive advantage to increase their profits. Organization use
technologies like Blackberry, Personal desktop assistant, tablets and live conferencing applications for steady
communication in their organization. As technology has its merits also has its drawback and demerits. Virtual
teamwork has been incorporated by most of the companies today including Siemens AG. As they function
virtual teamwork they have flexibility. Organization is able to alter team based on the challenges that they
face time-to-time. The teams are built using the best possible members available; it is particularly helpful
when they require a specialist. Virtual team doesn’t have issues like geographical, time zone or organization
constraints faced by actual teams. As they work around the clock depending on the region they have an added
benefits. The efficiency saving is made as there is no travel or relocation costs involved. As social, political and
economic aspects associated with human beings are ignored it causes Alienation “Work performed under
conditions in which the worker is estranged from his or her own activity on the act of production, through the
sale of labour power and subordination of skills and knowledge to the capitalist, or other external social forces”
(Thompson, 1989:p.xiii). In an assertion made by Blauner (1964) it makes the worker feel powerless,
Meaningless, Isolation and Self-estrangement. As Alienation is an aspect of work heavily impacted by
organizational technology. Siemens AG deploys numerous projects around the world with the support of there
virtual teams. As these individual function from their stationed office and with the help of there project leader
are able to provide there input virtually. They use VOIP (Voice over internet protocol) to communicate and
Video-conferencing tools like Microsoft Lync and Skype to have there meeting’s with there virtual teams.
19
CONCLUSION
Siemens AG uses a flat structure as it supports them with hierarchical arrangement of the line of power, right
and communication. The authority in the organization is down the chain of command that speeds the
decision-making. There task and role culture makes there flat structure more de-centralized. The demerits are
that they are unable to standardize this culture as they are widely spread. The strong culture of the Siemen AG
with their “Peoples Excellence” makes them a High performance Culture. As they take there employee as
there competitive advantage. Siemens emotional intelligence is interconnected with leaders whore revenue
and growth figures were strong and these leaders put a premium on collaboration and teamwork. The
democratic leadership style used in Siemens AG as the focus of the power is more with in the group a whole
and there is greater interaction within the groups. In the period of change Siemens AG can use
transformational leadership as it is compromised of idealized influences, inspirational motivation, intellectual
stimulation and individual consideration. As this approach will be more idealistic to motivate its staff in the
period of change. In motivational factors Herzberg theory can be applied in the talent management as it can
help them understand their individual employee. As in Siemens AG leaders may think that getting their
organizations to learn is only a matter of enunciating a clear vision giving employee the right incentives and
providing a lots of training. This assumption is not wrong but is very risky as the competition is getting
intensified, technologies are changing and customer preference is shifting. As Siemens AG needs to learn more
than ever to confront these forces; they must become a learning organization. Peter M. Senges’s flourished
this concept in the 90’s The Fifth Discipline. This approach can help Siemens AG employees to cultivate
tolerance, foster open discussion and think holistically and systemically. As it will help Siemens to act upon the
unpredictable quickly then its competitors.
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Organization Behaviour - Tesco Vs Siemen

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Organization Behavior Syed Zafir Momin

What is Organization Behavior and Culture?

LO1 – 1.1 – ORGANIZATION STRUCTURE AND CULTURE

(Siemens AG – Flat Organization Structure)

(Tesco – Store - Tall Structure)

LO1 – 1.2 – IMPACT ON THE PERFORMANCE OF A BUSINESS

LO1 – 1.3 – FACTORS INFLUENCE INDIVIDUAL BEHAVIOUR AT WORK

LO2 – 2.3 – EVALUATION OF THE MAIN APPROACHES TO MANAGEMENT THEORY

Maslow’s Hierarchy of needs:

Hertzberg two factor theory:

McGregor Theory X and Y:

LO3 – 3.3 – THE USEFULNESS OF MOTIVATION THEORIES FOR MANAGERS IN SIEMENS AG

LO4 – 4.1 – MECHANISMS FOR DEVELOPING EFFECTIVE TEAMWORK WITHIN SIEMENS AG

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