Siemens Human Resource Policies Management Essay

INTRODUCTION

In this assignment we will be going to discourse about Siemens human resource policies such as recruiting, selection, appraisal, performance and reward. The main objective of this assignment is to check the HR procedures and practices at Siemens. In order to do that, emphasizes are given mainly on the current HR practices at Siemens and on the effectiveness and efficiency of those practices. Besides, some recommendation has been provided better utilization of the company’s HR department. Siemens is one of the world recognized electronics and electrical business (Siemens, 2009). The company has its root in Munich of Germany. The worldwide operation of Siemens is controlled from this Munich Headquarter. In United Kingdom, Siemens control their local business from its local headquarter in Bracknell at Berkshire (Siemens, 2009). Siemens has been positioned among the top 3 electronics and electrical organizations all over the world. The company designs and manufactures products and services for both household customer and professional customer. It operates in three main sectors: industry, energy and healthcare (The Times 100, 2009). Siemens is a very big company which is employing around 450,000 people and which has a annual revenue of £53 billion in the year 2008 (The Times 100, 2009). United Kingdom is one of the most important hubs of Siemens business.

According to Alan Price (2007), the process of job analysis is that of gathering and analysis job-related information. This includes details about tasks to be performed as part of a job and the personal qualities required to do them. Job analysis process is divided into two parts. First one is job description and other part is knows as job specification (Graham & Bennett, 1989). Job description is the details of responsibilities and tasks to be associated with given position and job specification is related to identify the knowledge, skills, abilities, and other employee characteristics needed to perform a job (Graham & Bennett, 1989).

Siemens need people for various departments and roles and siemens always provide job description and job specification for its entire jobs.

Example of job description and job specification at Tesco

One of the most important job positions in Siemens Field Telecoms Engineer & Technical Support Engineer. For this position, Siemens’s job description and job specification has been given below:

According to Siemens Recruitment add on Trovit Job (2009), Job Description for Field Telecoms Engineer & Technical Support Engineer at Siemens:

Provide Telephone and Technical Support across Siemens / Samsung telephone systems

Provide the highest quality and professional cabling installation when required

Work in the Field on Installation and Maintenance projects to work schedules and customer expectations at all times

Ensure that the customers’ needs are met.

Assess site and project to ensure all information is correct

Complete paperwork accurately

Providing a courteous and professional service at all times

To support other areas of the business where necessary

To carry out duties in accordance with the company’s policies

According to Siemens Recruitment add on Siemens.com (2009), job specification for Field Telecoms Engineer & Technical Support Engineer at Siemens:

Excellent Cabling installation experience to the highest level

Strong Telecoms (pabx) knowledge including VOIP and Business Phones systems

Ability to manage requests and enquiries in a courteous manner

Minimum of 2 years Installations/Maintenance experience of Siemens and/or Samsung Business phone systems and periphery telecoms equipment/solutions like OAK, IVM, VOIP, IP, voice recording or similar products

Knowledge : Initiative, Organisational skills, Communication skills, Results and Quality Orientated.

The required skill for an engineer at Siemens are as follows:

Source: The Times, 2009.

Demand and supply forecasting

According to Graham & Bennett (1989), two types of forecasting have to be done by any organizations Human Resources Department. One of them is demand forecasting and another one is supply forecasting. Demand forecasting is associated with forecasting overall human resources requirements in accordance with the organizational plans; on the other hand, Supply forecasting is associated with obtaining the data & information about present & future human resource.

Demand and Supply forecasting

Source: Geisler, 2006.

Siemens use workforce planning technique to determine the rate of influx and outflow of employee. By using Workforce Planning Siemens get types of benefit:

Siemens can check the skills of its existing employees, which help Siemens to decide about whether those employee needs training or not.

To check whether there is any skill gap between the required skill for a particular job and the skills of the employees.

To identify the needs of new employees (The Times 100, 2009).

At present, Siemens is in need of new employees as they about to relocate its core plant in Lincoln (HRM Guide, 2009). Siemens has already constructed a plan to identify the skills and training that may be needed for those employees.

Selection and recruitment

The aim of the recruitment process of Simens is to ensure that Siemens understand the career goal, aspiratons and experience of potential employees, as well to give a chance those potential employees to decide whether siemsn is the right place for them.

During the selection process of Siemens a potential employee has been asked to participate in one or more of the following activities:

Apply online

An employess can look for a suitable vancat and apply for that vacancy through the website of siemens which is http://www.siemens.co.uk/careers/en (Siemens AG, 2009). Apart from that, they can apply through some other website like trovit job, reed, etc. After submittig application via online, Siemens recruitment team reveiw the application and check wheather the individual’s capabilities, qualifications and experience match with their requirment (Siemens AG, 2009).

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Telephone interview:

If an employee meet the selection criteria of Siemens, tthen he or she may be contacted for an initial interview. In this stage, the role and reponsibilites of the job postion is normaly discussed (Siemens AG, 2009).

Face to Face interview:

All employees needs to face at least one face to face interview at Siemens. The main goal is to disccussed about the skills, competencies and experience of the canditate and also to give him an options to know about the organizaiton (Siemens AG, 2009).

Aptitute Test

Simens arrage aptitute test for some of its role. These tests assist in determining the suitability of the candidate for the role. The aptitute test include numeric reasong, verbal reasoning and an occupational personality questionnaire (Siemens AG, 2009). The results of tese tests are assessed by qualified psychologists and compared against industry norms that are rlevant to the criteria being reviewed (Siemens AG, 2009).

References and background check

All the cadidates are subject to provide two references ( for example previous supervisors, manager and collegues). Siemens always do reference checks after they get authorization from the candidate ( Siemens AG, 2009). Apart from that, employment within some areas of their business is codnditional upon passing a background check.

Offer & Acceptance

If a candidate is successful at the final stage of their recruitment process, they will make an intial verbal offer of emplyment that, if accepeted will be followed by a written contractual offer (Siemens AG, 2009).

Training & Development

Training is a planned effort to assist employees in learning job related behaviors in order to improve performance (Graham & Bennett, 1989).

Training doesn’t only mean teaching new skills to existing employees or teaching required skilled to new employees. Training is a continuous process which enable organizations to keeps its employees ready for the job. Siemens normally follows the following two types of training:

Siemen’s training form

Source: Heinrich, 2009.

On the job training

Shadowing:

At Siemens, the HR team provides a colleague or managers to the employee. Manager or colleague watch the employees while working and train them if they have done any mistakes (Siemens, 2009).

Mentoring:

The trainee discusses with a tutor or mentor. The mentor or tutor hear the problems of the trainee and discuss with them about the solution (The Times 100, 2009)

Coaching:

Siemens sometimes provide coach or senior staff to encourage and guide the new employees while they work (The Times 100, 2009)

Job rotation:

In order to broadens the skills of the employees Siemens sometimes allow them to work into different department for a short period of them. It helps the employees to acquire new skills (The Times 100, 2009).

Off the job training

Induction training at Siemens enables the new employee to have basic information about the Siemens (Siemens, 2009). Apart from that, Siemens do have three types of development program for its employees. Those development programs are mainly designed for entry level employees (The Times 100, 2009).

Apprenticeships

The Apprenticeship programs of Siemens mainly aimed at school leaver students who want to earn money while they work. Though Siemens is running their apprenticeships in various location, most of time employees has a tendency to start their working life in the Siemens branch around the place they live ( HRM Guide, 2009). Apprenticeships train people under engineering and IT skims. All applicants of apprenticeship needs excellent communication skills and the ability of working in a tem.

Siemens Commercial Academy

This academy is launched by Siemens at 2005. The aim of this program is to make good employees for mainly for the finance department at Siemens. It’s an alternative to four years univsity degrees (Siemens, 2009). The Siemens Commercial Academy mainly target those students who has a natural interest in finance and accounting aspects of an organization. Once students get involve with this academy, Siemens rotate them around various department like Accounting, Finance, HR, Corporate Sales and procurement. It helps them an opportunity to gather several types of skills (HRM Guide, 2009). The Siemens Commercial Academy also provide IT courses and sometimes language courses (The Times 100, 2009)

Siemens Graduate Program (SGP)

Siemens Graduate Program is a course of two years, which requires the participants to go through three steps (Siemesn, 2009). This program helps employees to gather skills about several career paths. This program enables participants for their career in marketing, manufacturing, human resources. However, this depends on the interest of the employees as well as the availability of the position at Siemens (Siemens, 2009).

Performance appraisal

To determine the effectiveness of its development and training, Company uses an, Performance Management process which is known to be appraisal system (The Times 100, 2009). Line managers and their employees agree objectives at starting of a placement and move on are then monitored informally and formally throughout the placement. Its helps to concentrate everybody on the developing requires of the business. Yearly, the results build the basis of a staff performance where the worker’s manager reviews the build up towards the objectives that have been set (Siemens AG, 2009).Discuss the feedback with the employee and development needs are interpret in order to determine appropriate training. New objectives for the following year before are set. Some instances, in appraisals are linked to pay reviews. These cases, pay rises depend on staffs and worker’s meeting or exceeding their objectives (Siemens AG, 2009).

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Compensation and benefit Siemens

Performance-related Compensation:

Remuneration at Siemens is tailored to business strategy. Consistent remuneration of Siemens employees’ performance ensures that their strategic targets are achieved. Siemens believes that monetary incentives are a strong motivating factor. Siemens therefore works with fixed and variable elements of the pay package. The variable components in salary increase in step with the importance of employees position in the company (Wadding ham, 2009).

Typical Pay Composition:

Fixed pay

Fixed salary is based on the personal demands and the technical placed on position and on individual input. This part of salary does not vary (Siemens industrial turbo machinery, 2009).

Benefits

In addition to compensation at Siemens employees also receive other benefits in cash or in kind, for example, in the following areas:

Risk protection

Siemens companies offer additional, voluntary benefits in the area of accident, life insurance and invalidity (Siemens industrial turbo machinery, 2009)..

Health and well-being

Many cases, Siemens companies offer a numbers of items in various areas of well being and healthp that top upper statutory programs and help staff and employees to determine an individual balance between private life and work (Siemens industrial turbo machinery, 2009)..

Pensions

In over 30 countries Siemens maintains supplementary company pension plans (Siemens industrial turbo machinery, 2009)..

Fringe benefits

According to Siemens industrial turbo machinery (2009), Siemens offers additional fringe benefits and perks depending on usual local benefits and regional conditions,(for example company canteen, products and services at special prices).

For Siemens Company, people, like its innovation and technology, are a source of competitive advantage (The Time, 2009). This build the much of this advantage, Company makes sure i.e. staff and employees work on developing the Siemens Company’s heritage of innovation. Company believes that there are more ways to form people engaged and feel valued .Range from a pat on the back, a personal letter or a special mention in a meeting, to a promotion or a higher salary (The Time, 2009).

EVALUATION OF SIEMENS HRM

According to Geisler (2006), “Human Resources planning is the process -including forecasting, developing and controlling by which a firm ensures that it has-

• The correct number of people,

• At the correct place kind of people,

• The correct kind of people,

• The right time, doing work for which they are economically most useful”

Throughout the strong workforce planning, selection and recruitment process, Siemens is highly successful to have various number and correct kind of people at right places at the right time. Besides, the training and development of Siemens help its employees to become economically useful.

Evaluation of job analysis and workforce planning

Siemens always attract innovative people to work with them as Siemens believe that innovation drives their success. At Siemens, 32,300 researchers and developers register 37 inventions and file 23 patent applications every day (The Times 100, 2009). Siemens attack potential employees by through the following questions to them ( The Times, 2009):

How can Siemens control production to affordably satisfy individual customer requirements?

How do Siemens meet the world’s growing demand for energy without destroying the environment?

How can Siemens detect diseases before there is an outbreak? Would you like to work on these and other problems?

Siemens influence curious people with initiative and talent to find excellent career opportunities with them.

Evaluation of selection and recruitment:

Siemens use a number of different methods to assess candidates (Siemens, 2009). By using a number of different assessment methods, they are able to gain an understanding of employee’s strengths and development areas, which in fact helps them to recruit right people for them (Lorna, 2009). While recruiting and selecting employees, Siemens always emphasizes on the following skill of the employees: Communication Skills, Team Working, and Problem Solving, Interpersonal Skills, Self Confidence, Time Management, Decision making; and Analytical Ability skills (Trovit jobs, 2009) Siemens commonly use assessment centers as part of their recruitment process.

Assessment centers are generally made up of a number of different exercises. This could include a group exercise, a presentation, psychometric testing and interviews (Siemens, 2009). Online application and face to face interview helps Siemens to gather information about the employee’s skills. On the other hand, face to face interview, group exercises, aptitude test helps Siemens to check the skills practically.

Evaluation of training and development

Siemens Training and Development expenditure, 2009

Source: Personnel today, 2009.

Apprenticeships programs of Siemens plays a vital role in developing stuff, which would help Siemens in future as Siemens business is in growth stage now (The Times 100, 2009). The training and development process of Siemens helps its employees to get higher position within the organization. According to one of the example provided in Where to work (2009), one of the traffic design engineer named Paul Thomson started his career at Siemens as a trainee traffic signal engineer. Siemens provided him both on the job training by providing mentor, as well as off the job training through several education programs. Within three years of his training he has been promoted as Traffic Design Engineer at 2006. According to Paul- “The trust of firm and feeling of responsibility and and fellow staff and employees was amazing. The experiences I had and the new friends I made whilst training were excellent and I would recommend it to anyone. ” Anna Carder is another good example of the outcome of Siemens Training and Development (Personnel Today, 2009). Anna joined Siemens in the year 2006 with a background of BSc in Administration and Managerial Studies. She already on the job training through job rotation, She is now capable to work in HR depart, Traffic Control department.

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Siemens treat its entire graduate as individual. The on the job and off the job training methods of Siemens help its employees to gather experience, knowledge and potential to do many different types of roles in different department.

Benefits from Siemens’ Training and Development

Source: The Time, 2009.

Evaluation of performance appraisal

Performance appraisal at Siemens ensures that all the employees are being told honestly about their job performance. Siemens believe that if the employees are clear about the level of their performance they would be motivated if it is good, or they would try to improve the level of their performance thorough training provided by Siemens. Performance Management at Siemens helps the company to drive talent management.

Siemens get the following benefits by using its performance appraisal system: It can

• Ensure that all training is being used well and for the best interests of the company

• Keep all staff or employees up-to-date in a vast changing business

• Build sure that staff and employees is well motivated

• Acquire feedback from staff and employees on changes

• Form sure staffs and employees are involved in changes.

RECOMMENDATION

Though Siemens is about to cut some administrative jobs across the world because of credit crunch (Pitcher, 2009), the Human Resources department of Siemens is still efficient to recruit and retain its employees. However, the following recommendations would help to organization’s Human Resources Department to do better.

Anticipate external business environment

Innovation is the main competitive factors in the telecom business as there are continuous changes in the external business environment of this business (The Times 100, 2009). For example, Siemens is currently focusing on renewable energy and wind turbines, as the global weather is rapidly changing. While recruiting people Siemens should emphasize on those external people because it would help them to recruit innovative people who would help Siemens at future to cope the changes in external environment (Scribd, 2009).

Utilize the opportunities

In order to better utilization of opportunities Siemens need to recruit and train their employees at advance. For example, Olympic 2012 would be grate business opportunity for Siemens as the sale of telecom products would increase that time. Siemens would be able to provide healthcare provisions, communications technology, media, and security on that time. It is extremely important for Siemens to train their existing employees from now and to create a recruitment plan to hire new employees.

Emphasize on action learning

According to Professor Peter Pribilla (2009), “The speed at which a corporation can learn and employ new knowledge is a decisive factor in competition. It is not enough to learn and work. Learning and working must be integrated. Only then can a corporation be a learning organization. Action Learning addresses this challenge very efficiently.” Siemens should give more emphasize on action learning.

Increase pay scale and incentives

As the telecom sector in UK is highly competitive, Siemens should increase pay scale for lower level employees as compare to its competitors. Apart from that, Siemens should provide more incentive to their good employees to retain them in the organization (Hussain, 2009) because, Staff who feel valued stay longer in a company. This means that Siemens’ costs of recruitment can be reduced, resulting in cost savings across the organization (The Times 100, 2009).

Better coordination

According to Hussain (2009), a better coordination should be developed between the top management and lower level employees in Siemens. It will reduce the chance of whistle blowing in the organization.

Balance dissatisfies against motivators

Siemens company managers have to maintain balance dissatisfies against motivators (The Times 100, 2009). Procedures and policies that may cause dissatisfaction have to be managed. Reduce dissatisfaction, company believes the method is to rise up awareness of issues with staff and employees and involvement in their encourage (The Times 100, 2009). Then understand and recognize the need for change. This has helped company to manage programmers change. Motivators at Siemens Company are the factors that stimulate engineers to work in the best way possible. They enjoy the characteristics of their roles. Being empowered helps them to manage their roles and enables them to use this power to change things (The Times 100, 2009)..

Organizational results stem from high performance. People only perform well when they operate in a culture which nurtures and supports them and helps them to work towards the achievement of their ambitions. Siemens’ high performance culture provides the framework and support in which high performance people can show their commitment to a high performance organization.

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