1. 1. Contingency Leadership A Case Example of Siemens AG By: Bonnie R R Aylor For: BMGT8610 Spring 2015
2. 2. Whats the Aim of this Study? Use a specific case study to inform participants about leadership theory. To illustrate the constructs of the leadership contingency model. To demonstrate the dynamics of leadership in a multi-cultural atmosphere. To represent multicultural leadership in a contingency model paradigm.
3. 3. Introduction In March, 2007 confession of the Argentine Bribery Scam (Calgary, 2007). Out with CEO Kluase Klienfelder in with Paul Leoscher (Webb, 2013). Six years later - Joe Keaser stepped in (Webb, 2013). Leadership contingency model at Siemens AG
4. 4. Company Overview Siemens AG began doing business in 1847 (Siemens, 2015). This case begins with the introduction of Joe Kaeser (Economist, 2015). Dresser-Rand products compared to Siemens AG products. Structural changes announced by Joe Kaeser (Larson, 2015). Egypt and the EEDC (Larson, 2015).
5. 5. What about the Contingency Model? Connect small pieces to the whole (Mandanipour, 2012; Van de Van, 1985). Dealing with high stress (Dunphy & Stace, 1988; Fielder, 1971). Goals and Tasks (Mandanipour, 2012). Example EEDC agreement (Economist, 2015). Task Structure and Kaesers goals
6. 6. Current Situation Feature Webpage rotary motor built from used parts (Siemens, 2015). Institutional display of knowledge perceptions (Beccara-Fernande & Saberwhal, 2001). Technological representation of change (Mandanipour, 2012). Technological Breakthrough and Rapid changes in Technology (Dunphy & Stace, 1988).
7. 7. Current Financial Situation Dresser-Rand displays a steady growth Siemens shows a roller-coaster ride of growth (Dresser-Rand, 2015) http://www.msn.com/en-us/money/stockdetails?symbol=DE:SIE
8. 8. Incentives for Acquisition Increased ability to undergo growth related risk (Dedman & Filachov, 2008; Husted, 2000). Contingency theories of budget and change (Dunphy & Stace, 1988). Egypt (PM Egypt, 2015)
9. 9. Closing the Acquisition Siemens has started depositing towards the Acquisition (Dresser-Rand, 2015) Siemens had begun contributing to a Jr Stock for Dresser-Rand (2015). Switching departmental CEO (Siemens, Press, 2015). Contingency model aspects of leadership change (Dedman & Filachov, 2008; Drazin & Van de Van, 1985; Dunphy & Stace, 1988).
10. 10. Specific Problem Integrating Company Cultures Budgetary Concerns Cross-Cultural Comparison
11. 11. Siemens Historical Change Agents Program Operated during transition of Siemens Nixdorf into Siemens AG (Dover, 2002). Were chosen to learn tactics for encouraging change within their departments (Dover, 2002). Were regular employees, creating positional ambiguities (Dover, 2002).
12. 12. Leadership Failure Path-Goal Theory Obscurities with the program Conflict with Contingency Theory Merger & Entrepreneurship
13. 13. The New Program Mentors & On-the-job training Path-Goal & Leader Exchange Contingency model of followership Similarities between the two Final Outcome
14. 14. Current Needs Importance of cultural syncrocity Followers perceptions (Bryman, 1996; DeRue & Ashford, 2010). Cultural Alignment (Mulkzyc & Holt, 2008).
15. 15. Culture at Siemens Kaeser autocratic, masculine, task structured (Diskenson, et al, 2002; Fiedler, 1971; Larson, 2014; Gerber et al, 2011). Power distance relationship (Dickenson et al, 2002). Uncertainty Avoidance education & planning (Dickenson et al, 2002; Larson, 2014; Siemens, 2015; Mandanipour, 2010). Collectivism and individualism (Dickenson et al, 2002; Gerber et al, 2011). Vertical collectivism, horizontal individualism (Dickenson et al, 2002).
16. 16. Culture Across Regions Comparison of USA and Germany High power distance in Germany (Dickenson et al, 2002), low in USA. Complimentary participative styles of leadership (Dickenson et al, 2002). Germany has high uncertainty avoidance (Dickenson Et aa, 2002), USA has mixed features of uncertainty avoidance. Dresser-Rand Stock (Dresser-Rand, 2015).
17. 17. Action Alternatives The two main requirements for smooth transition of change at Siemens AG are knowledge integration and Cultural assimilation. The next couple of slides will introduce these action alternatives.
18. 18. Knowledge Integration Restructuring for automation and technology (Larson, 2014). Process of restructuring (Drazin & Van de Van, 1985). Cross cultural comparison of knowledge (Drazin & Van de Van, 1985). Barcoding and automation (Dunphy & Stace, 1988). Tacit to explicit form using automation (Beccara-Fernandez & Saberwhal, 2008). Teamwork and A to B (Mandanipour, 2010).
19. 19. Cultural Assimilation Comparison between US and German Contingencies Sales and Teamwork Final Plan Teamwork through Egypt project
20. 20. Bonnie Renee Reagan Aylor 2015 Sunday, June 14, 2015 20 Conclusion Company is taking the right steps. Contingency model of knowledge. Teamwork and automation. Tacit to explicit knowledge. Research needs: Organizational change to override cultural differences. Social performance to create cultural integration. Model of connectivity to enhance cultural assimilation performance.
21. 21. Bonnie Renee Reagan Aylor 2015 Sunday, June 14, 2015 21 Future Thinking Learn aspects of contingency model, including: Task-goal structure Organizational restructuring Change in leadership Knowledge integration methods Followership theories Cross-cultural differences Cultural integration methods Learned differences between path-goal and contingency models. How to discover organizational conflicts. Analysis of multinational cultures and their differences. Development of a plan to facilitate cultural ambiguities. Development of a plan to lead change. Recognize agendas for evolving leadership theory for future implementation.
22. 22. Bonnie Renee Reagan Aylor 2015 Sunday, June 14, 2015 22 References: (April 16, 2015 ). PM Meets Siemens CEO. Egypt State Information Service. Retrieved from www.lexisnexis.com/hottopics/lnacademic Becerra-Fernandez, I., & Sabherwal, R. (2001). Organizational knowledge Management: A contingency perspective . Journal of Management Information Systems, 18(1), 23-55. Retrieved from http://search.proquest.com.library.capella.edu/docview/218928929?accountid=27965 Bjugstad, K., Thach, E. C., Thompson, K. J., & Morris, A. (2006). A Fresh Look at Followership: A Model for Matching Followership and Leadership Styles. Journal of Behavioral and Applied Management, 7(3), 304-311,313-319. Retrieved from http://search.proquest.com.library.capella.edu/docview/196732400?accountid=27965 Bryman, A, Stephens, M, Campo, C. (1996). The Importance of Context: Qualitative Research and the Study of Leadership. The Leadership Quarterly, Volume 7, Issue 3, Autumn 1996, Pages 353-370, ISSN 1048-9843 , http://dx.doi.org/10.1016/S1048-9843(96)90025-9. (http://www.sciencedirect.com/science/article/pii/S1048984396900259) Day, D. V., Antonakis, J. (2012). The Nature of Leadership, 2nd Edition. Thousand Oaks, Ca, Sage Publications Inc. ISBN: 978-1-4129-8020-3. Dedman, E., & Filatotchev, I. (2008). Corporate Governance Research: A Contingency Framework. International Journal of Managerial Finance, 4(4), 248-258. doi:http://dx.doi.org/10.1108/17439130810902778 Retrieved from: http://search.proquest.com.library.capella.edu/docview/228359695?pq- origsite=summon&http://library.capella.edu/login?url=accountid=27965 DeRue, D. S., & Ashford, S. J. (2010). Who Will Lead and Who Will Follow? A Social Process of Leadership Identity Construction in Organizations. Academy of Management Review, 35(4), 627-647. doi:10.5465/AMR.2010.53503267 Retrieved from: http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=53503267&site=ehost-live&scope=site Drazin, R., & Van De Ven, A. H. (1985). Alternative Forms of Fit in Contingency Theory. Administrative Science Quarterly, 30(4), 514-539. http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=4013921&site=ehost-live&scope=site Dresser-Rand. (2015). Investor Relations. Retrieved from: http://investor.dresser-rand.com/stockquote.cfm Dover, P. (2002). Change Agents at Works: Lessons from Siemens Nixdorf. Journal of Change Management, 3(3), 243-. ISSN:14697017 / DOI:10.1080/714042535 http://www.tandfonline.com/doi/abs/10.1080/714042535# Dunphy, D. C., & Stace, D. A. (1988). Transformational and Coercive Strategies for Planned Organizational Change: Beyond the OD Model. Organization Studies,9(3), 317- 334. Retrieved from: http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=5994762&site=ehost-live&scope=site Dunphy, D., & Stace, D. (1993). The Strategic Management of Corporate Change. Human Relations, 46(8), 905. Retrieved from http://search.proquest.com.library.capella.edu/docview/231460107?accountid=27965
23. 23. Bonnie Renee Reagan Aylor 2015 Sunday, June 14, 2015 23 References (contd): The Economist, 412, 53-54. Retrieved from http://search.proquest.com.library.capella.edu/docview/1548682134?accountid=27965 The Economist (Online), Retrieved from http://search.proquest.com.library.capella.edu/docview/1417053935?accountid=27965 Etsy, A. (2009). An Interview with Jared Diamond. Sigma XI: The Scientific Research Society. Retrieved from: http://www.americanscientist.org/bookshelf/pub/jared- diamond Evans, M. G. (1974). Extensions of a Path-Goal Theory of Motivation. Journal Of Applied Psychology, 59(2), 172-178. doi:10.1037/h0036516 http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=pdh&AN=1974-31094-001&site=ehost-live&scope=site Fiedler, F. E. (1971). Validation and Extension of the Contingency Model of Leadership Effectiveness: A Review of Empirical Findings. Psychological Bulletin, 76(2), 128- 148. doi:10.1037/h0031454 http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=pdh&AN=1972-02829-001&site=ehost- live&scope=site Graen, G. B., & Uhl-Bien, M. (1995). Relationship-Based Approach to Leadership: Development of Leader-Member Exchange (LMX) Theory of Leadership over 25 Years: Applying a Multi-Level Multi-Domain Perspective. The Leadership Quarterly, 6(2), 219-247. doi:10.1016/1048-9843(95)90036-5 Retrieved from http://www.sciencedirect.com/science/article/pii/1048984395900365 House, R. J. (1971). A Path Goal Theory of Leader Effectiveness. Administrative Science Quarterly, 16(3), 321-339. http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=4010081&site=ehost-live&scope=site Husted, B. W. (2000). A Contingency Theory of Corporate Social Performance. Business and Society, 39(1), 24-48. Retrieved from http://search.proquest.com.library.capella.edu/docview/199340170?accountid=27965 Ju, T. L., Shu-Hui, C., Chia-Ying, L., & Tien-Shiang, L. (2005). A Strategic Contingency Model for Technology Alliance. Industrial Management & Data Systems, 105(5), 623-644. Retrieved from http://search.proquest.com.library.capella.edu/docview/234907392?accountid=27965 Larson, A. Siemens and GE Ink Big Orders with Egypt. Electric Power, Power Magazine. Powermag.com. Retrieved from: http://www.powermag.com/siemens-and-ge-ink- big-orders-with-egypt/ Madanipour, A. (2010). Connectivity and Contingency in Planning. Planning Theory. Retrieved from: http://plt.sagepub.com.library.capella.edu/content/9/4/351.full.pdf+html Mahadevan, N. (2015, Mar 14). Siemens Signs $4.2 Billion Power Deals in Egypt; German Conglomerate Agrees to Build Power Plant in North African Country. Wall Street Journal (Online). Retrieved from http://search.proquest.com.library.capella.edu/docview/1663358529?accountid=27965
24. 24. Bonnie Renee Reagan Aylor 2015 Sunday, June 14, 2015 24 Referecens (contd) Miller, R. L., Butler, J., & Cosentino, C. J. (2004). Followership Effectiveness: An Extension of Fiedler's Contingency Model. Leadership & Organization Development Journal, 25(3), 362-368. Retrieved from http://search.proquest.com.library.capella.edu/docview/226926753?accountid=27965 MSN Money. (2015). Retrieved from: http://www.msn.com/en-us/money/stockdetails?symbol=DE:SIE Mumford, M. D., Friedrich, T. L., Caughron, J. J., and Byrne, C. L. (2007). Leader Cognition in Real-World Settings: How do Leaders Think About Crises?. The Leadership Quarterly, Volume 18, Issue 6, December 2007, Pages 515-543, ISSN 1048-9843, http://dx.doi.org/10.1016/j.leaqua.2007.09.002. (http://www.sciencedirect.com/science/article/pii/S104898430700118X) Muczyk, J. P., & Holt, D. T. (2008). Toward a Cultural Contingency Model of Leadership. Journal of Leadership & Organizational Studies, 14(4), 277-286. Retrieved from: http://jlo.sagepub.com.library.capella.edu/content/14/4/277.full.pdf+html Pennings, J. M. (1975). The Relevance of the Structural-Contingency Model for Organizational Effectiveness. Administrative Science Quarterly, 20(3), 393-410. http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bah&AN=4013873&site=ehost-live&scope=site PR, N. (2014, September 21). Dresser-Rand Signs Agreement to Sell to Siemens for Approximately $7.6 Billion in an all Cash Transition. PR Newswire US, September 21, Regional Business News, ESBSCO Host. http://ezproxy.library.capella.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bwh&AN=201409211952PR.NEWS.USPR.DA17842&site=ehost- live&scope=site Siemens. (2015). Siemens Global Website: Features. Siemens Corporation. Retrieved from: http://www.siemens.com/press/en/index.php Siemens. (2015). Siemens Global Website: Jobs & Careers. Siemens Corporation. Retrieved from: http://www.siemens.com/jobs/en/ Siemens. (2015). Siemens Global Website: Press. Siemens Corporation. Retrieved from: http://www.siemens.com/press/en/pressrelease/index.php Siemens. (2015). Siemens Global Website: Siemens Worldwide. Siemens Corporation. Retrieved from: http://www.siemens.com/entry/cc/en/ Sousa, R., & Voss, C. A. (2008). Contingency Research in Operations Management Practices. Journal of Operations Management, 26(6), 697-713. Retrieved from: http://www.sciencedirect.com.library.capella.edu/science/article/pii/S0272696308000405?np=y