Siemens is the company which provides products and services in engineering, healthcare and finance. The products and services they provide starts from modern pedestrian crosswalks to financial services in different spheres of business. Nowadays Siemens employs around 14,000 people in the UK, including approximately 5,000 people in manufacturing sector. Total revenues of the company for year 2015 were £3.36 billion. (Siemens.co.uk on 07/04/2016)
Key financial figures
2011 2012 2013 2014
Turnover (£bn) 4.37 3.21 3.36 5.00
Employees 12,972** 13,520 13,760 14,000
The culture of organisation is values and beliefs that apply to the unique psychological and social environment within the organisation. Culture of organisation consists of organisation’s values, philosophy, experience; assumptions gathered and its self-concept, internal activities, and communication with outer environment such as customers, other organisations and forecasts for future. It is based on mutual values, beliefs, habits, rules and even fashion which has been established over some period of time and treated as good and appropriate thing for company. Corporate culture can be seen in different activities within the company, such as:
1) The approach of the organisation to its business and how it manages business, treats its employees, customers, suppliers and other outer community;
2) The degree of what opportunities are given in decision making process, coming up with new thoughts and ideas, and individual expression;
3) The level of power and information provided throughout the hierarchy of company;
4) The employees carrying out activities and duties properly towards collective goals;
Corporate culture affects the company’s efficiency and performance, and provides guidance on customer care, quality of product, attendance and punctuality of employees, and responsible for the environment in organisation. (businessdictionary.com)
So from the explanation above we can see that even the best strategy in business cannot be accomplished without strong culture. In Siemens particularly a culture is more like ownership culture that inspires every individual in company to do their best in order to achieve long-term goals. Siemens was led by generation of owners who have had enthusiasm about long-term success of company. They all realised that every person in company brings some contribution for their success. There are some principles of ownership culture that are present in Siemens:
• Owners assure business success of company
Managers ought to be a good examples for the company's strategic direction and guarantee the maintainable and effective usage of accessible assets and resources – in way moving and enabling their groups to give their best for the company.
• Behaviour is base of the ownership culture
Entrepreneurial behaviour is the standard and establishment for how Siemens employees should behave. This applies to every person in the Company – since at exactly that point their behaviour can continually progress.
• Owners care about every individual
Siemens concentrates on a people-oriented approach that admires and supports diversity of knowledge and experience. If this approach is used in all aspects of company, it will improve the performance.
• Ownership culture is based on company’s values
If every individual in Siemens acts accountable, reaches great results and is creative, they will commit to success of Siemens. Responsibility, excellence and creativity – are the key values of ownership culture in Siemens.
• Owners associate themselves with Siemens
Employee shareholders act responsibly and oriented to achieve long-term goals when they directly take a part in control over the company. And the reason for equity culture is an essential part of ownership culture in Siemens.
As a fact of equity culture is that company owes its presence to the employees who own shares of Siemens and it is around 140,000 employees. Thus, Siemens wants employees to be engaged in company’s success on annual basis.
Siemens employs undergraduates and graduates for professional jobs in their company. Siemens strategy goes beyond the approaches of another companies and the reason is that Siemens became an open culture providing opportunities for employees at all levels. At Siemens the culture inspires employees to get involved in work, and innovations. Control exists in Siemens but the person doing the job is involved to work as a team member and inspired in resolve the best ways of improving work processes. The reason for it is engineering needs to evolve new and better products and processes of production. Engineering is not about doing things in one reliable way, but finding new ways of processes and usage of materials.
Motivation is the inner inspiration that stimulates the individual to behave in a certain way. Employees who are well motivated will be fulfilled with their work and workplace. Therefore they will be more productive in their activities which means they will create a high quality services and goods. This case study determines how employees are motivated and committed in the dynamic environment at Siemens. Motivated employees are affected by different factors. Firstly, everyone has essential basic needs like food, cloth, house which salary can provide us with. Nevertheless, there are lots more factors that influence individuals. Siemens employees value that they are allowed to be creative and they can influence their work.
However, individuals are motivated by other factors apart from just pay. An environment in company which asks and seeks ingenuity and creativity can also motivate individuals. At Siemens employees are adding up to the fact that they are granted to think in their own way. Siemens encourages its employees so they can develop the processes in company. Rather than really motivating anyone, managers can design a situation which compels individuals to respond because they have to (Rabey, 2001)
The structure of Siemens spurs people by enabling them to enhance the way they work. Siemens gives the environment where employees can learn new things and are granted the chance to advance the business. This culture shows that Siemens admires its employees and supports new engineers with different level of education.
Maslow's hierarchy of needs is mostly illustrated as a pyramid with the biggest, most essential needs at the base and the need for self-realization at the top of pyramid. While the pyramid shape became the way to represent the hierarchy, Maslow has never used a pyramid to illustrate these needs in any of his writings. Maslow’s theory proposes that the essential basic level of needs should be carried out before person will want to reach higher levels of needs.
According to Maslow there are five types of needs: (timvandevall.com accessed on 14/04/2016)
1. Physiological needs – are the physical necessities for individual to survive. In case if these necessities are not met human body will not be able to work correctly and will eventually fail. Physiological needs are the most important, such as air, water and food and they need to be met first.
2. Safety needs – dominate human behavior after meeting physiological needs. Safety needs might be economic safety due to lack of work opportunities and crisis or physical safety due to wars, disasters.
3. Social needs – the third level of needs is interpersonal and this need is very strong during the childhood. Social needs such as friendship, family, intimacy require a sense of belonging and acceptance among social group. These groups may include clubs, co-workers, religious groups, sports teams, gangs, family, intimate partners and etc.
4. Esteem needs - all individuals have a need to feel respected by others; Esteem is usual demand of being accepted and valued. People often choose profession or hobby to increase their recognition in society. People with low self-esteem seek for fame and others respect, however these people should understand that without accepting themselves internally they are not going to gain any respect or fame.
5. Self-actualization need – Maslow describes this level of needs as the desire to become everything that individual can be and to have everything they could have to maximize their potential.
Maslow declares that while he firstly thought the needs of people had exact guidelines, the "hierarchies are interrelated rather than sharply separated", which means that esteem and subsequent levels are not clearly separated, instead the levels are scrupulously related.
Maslow’s hierarchy of needs is more fascinating at company to understand the needs of individuals. Siemens gives the opportunity to their employees to achieve their higher-level needs. For creative employees as engineers, this is likely to be important for workers. Esteem is about being respected by others and feeling self-respect. Feeling that persons' work is making a difference may boost self-esteem. Acknowledgment of an employee's achievements by the employer helps to achieve esteem needs. For example, Siemens rewards employees for their innovation and creativity in projects either financially or boosting esteem of worker by giving his project recognition.
Self-actualisation is involved to workers achieving their potential. Engineering work allows employees to do so by allowing them to get engaged and to be more responsible for their jobs. An engineering environment creates enthusiasm and challenges and individuals will be able to attempt changes and innovations. Employees often need to be creative to find solutions for regular problems and it is also possible to use technology to find different ways of doing things. Also Siemens provides employees training and development schemes through which engineers can expand their knowledge about changes in global sphere and go up the career ladder, which means they will meet self-actualisation needs by making them more confident.
In reality, people don't necessarily go one by one through these levels. They are less structured in the way they satisfy their needs. (Graves)
Different people with different cultural backgrounds and in different situations may have different hierarchies of need. (Hofstede, Early)
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