Adnan ul Haque

Human Resource Management

Word count: 2014

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Importance of Employee Motivation and Appraisal as a part of planning at Siemens UK

within creative Environment

Table of Contents

Sr. No# TOPICS Page No#

Forewords 3

Acknowledgement 4

1 Introduction-

1.1 Systematic Approach At Siemens UK

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2 Motivation And Change 6

3 Scientific Management at Siemens 7

4 Hierarchy of Needs 8

5 Herzberg Two Factor Theory 9

6 In a Nutshell 11

7 Recommendation 11

8 Bibliography & References 13

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FORWORDS

The purpose of this report is to explain what I observed and founded during my

research on the Employee motivation within creative environment and how managers

motivate employees for upcoming change. The report is also a requirement for the

fulfillment of PGD (ATHE Level-7) program. The report focuses primarily on the

motivational factors that influences and stimulates the individuals to respond to

change in appropriate manner. It is a case study of Siemens UK who employees

engineers and empower them to work within dynamic environment in order to boost

their creativity and leads to attain the organizational goal. The various findings reflect

the shortcomings, successes, observations and comments and remedial which would

be vital for improvement. Therefore the report gives a number of comments and

recommendations. It is hoped that this report would serve as a cardinal vehicle to the

improvement of the Siemens UK.

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ACKNOWLEDGEMENT

I would like to thank my respected advisor Mr. Devesh Sharma whose lectures and

explanations has guided me in different phases of this report. My indebt-ness and

salutation to him for providing the foundation of Human Resource Management and

he has provided me an opportunity to enhance my management decision making

skills. Without his explanations and guidance this task would have been of immense

difficulty.

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Introduction:

Siemens UK is an engineering group who has specialized in home appliances,

products and services which has made human life at ease. The range of its

manufactured products is wide and large. The wide spectrum of products includes

automated factories as well as daily used appliances like kettles and refrigerators. It

also hosts, maintains, supports and develops one of the main website of United

Kingdom BBC iPlayer. It has more than 18000 employees in the United Kingdom.

1.1 System approach at Siemens UK:

There is a major difference between invention and innovation. Invention means to

create something for the first time but innovation means modifying the already

existing product or services. Engineering is nowadays more of innovation rather than

simply inventing. To develop products, engineers use scientific principles as a tool to

solve the actual life problems. It means improving the quality and standards of

products, services, technologies and process as a whole, engineers use the

transformation of creativity at its best. To have a career at Siemens as an engineer,

individual has to use energy, passion and ideas because the environment continuously

changes. Siemens provides opportunities for professionals to groom their skills and

fresh graduates to gain practical experience in their field. The approach is systematic

yet dynamic which enables the employees to be competitive at all levels. This

deliberate approach of Siemens has made it open culture, full of opportunities at all

stages for its employees.

The Bureaucratic structure of Siemens does suggest that policies of the firm are well

defined and must be followed by all employees. The work should be carried out in a

proportionate manner but still it has more to offer than what neo classical school has

suggested. Job specification is a main element of neo classical school which stress on

the mastering one task so that it is always done in a best way. At Siemens, work is

carried out in best way but approach is contingent in nature. Every time best way is

not one followed previously, it can be immensely innovative and unique approach.

The employee motivation’s categorization is either by recognition of good work or

fear of discipline for poor attempt (Moses, 2005).

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2. Motivation and Change:

Motivation is the inner stimulate that urges the individual to behave in a certain way.

It is a driving force that encourages an individual to behave in certain way.

Employees who are well motivated will be satisfied with the work and workplace.

Furthermore they will be more productive in their approach which means they will

produce a high quality goods and services. This case study primarily focuses upon

three distinct theories of motivating employees. The study demonstrates how

employees are kept motivated and involved within the dynamic environment at

Siemens UK.

Individuals are motivated by various factors and it has been considered as one of the

main technique to guide him along the path. Primarily, the fulfilment of physiological

needs are sole important because everybody has the tendency to feel this needs, such

as accommodation, food, clothing, which can be satisfied by pay. However,

individuals are motivated by some other factors apart from just pay. An environment

which ask and seeks creativity can also stimulate individuals. At Siemens, this

creative environment is provided which groom some staff for enhancing their problem

solving techniques in order to make them capable to respond to different challenges.

Employees are signifying the fact that they are permitted to think in their own way.

They can use their imagination by working their own way. Siemens empower its

employees so they can improve the process. Rather than really motivating anyone,

managers can design a situation which compels individuals to respond because they

have to (Rabey, 2001)

A motivated individual feel that job is special and put efforts to achieve the desired

outcomes. They take pride in their work and it results in reducing the absenteeism at

workplace. He remains loyal to organization and serves it for long term. Unmotivated

individual will not be actively participating in his role within work environment. He

does not consider job vital which leads to poor performance and ultimately leads to

low productivity.

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3. Scientific Management and Siemens:

Fredrick Taylor is regarded as father of management. He has proposed a theory of

scientific management as he believed that relationship between worker and work

could be standardised. Theory involves the keen observation and splitting the task into

parts which results in job specialization. Those workers will be rewarded high

payments who produce the most. Taylor’s approach is different from needs of modern

working environment. He advocated work in one organized pattern but today

engineering requires people with more capabilities and flexibility. Job specialization

that he mentioned, today engineering staff uses that specialization in different

situation to resolve problems.

At Siemens, the open culture urges employees to participate more vigorously in work

by suggesting and implementing improvements. Check and balance exists in company

but individuals are persuaded to actively participate as a team so the control that

Taylor has suggested in his theory is a holding key. The one best way Taylor has

elaborated in his theory is applied at Siemens to a certain extent, employees are

empowered to decision making so they get involved in deciding best way to do the

job assigned but employees cannot be limited to only one way approach to do jobs.

Observance of employees while work ensure that process is going through proper

channel but it should not be used as only form of control because it can hinder the

growth and enthusiasm of employees. Pay is not the just enough mean to attain the

employees but rewards and benefits will attain and retain them. This will lead to job

satisfaction and recognition of skills which will take them to meet their topmost

needs.

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4. Hierarchy of needs:

Maslow’s hierarchy of needs has at bottom the basic needs and at top needs of self

fulfilment. The five different layers of need represent human’s driving forces to work.

With the fulfilment of one need, human moves to another level to fulfil his needs.

Once basic is completed, human wants safe environment, as he has that, his need for

being loved arouses. Once it is met, the individual seeks a self respect for his abilities.

At the top level, his complex needs to be creative takes off. To realize his actual

potential, need drives him to strive more.

Siemens provide a golden opportunity to creative individuals to show their potential

by fulfilling their semi top and top order needs. It provides creative environment to

achieve their internal desires and through it employers also help to meet the esteem

needs. At Siemens, suggestions and project for bringing improvement are rewarded

either in shape of finance to individual or whole team, or in terms of management

recognition of their achievements.

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Belongingness and Love Needs

Safety and Security Needs

Self Actualization

Self-Esteem Needs

Physiological Needs

Engineering work provides employees an opportunity to take responsibility of their

own work; they can bring improvements through making changes. They can strive

towards new challenges which a dynamic environment at Siemens is known for. In

responding to these challenges by making decisions, employees are fulfilling the

higher level needs. At Siemens, staff training and development is provided so that self

actualisation grooms with inner capabilities. This will ultimately lead to career

progression as well make them able to face the global market with more diversify

inner features. Alderferg’s ERG theory is the modified version of Maslow’s hierarchy

of needs; it has regression and progression along with environmental factors

(Robbins, 2003). At Siemens, employees are given altitude for progression to

understand the changing scenario.

5. Herzberg’s Two Factors:

Fredrick Herzberg’s research led to important difference between satisfaction and

dissatisfaction. He believed that at workplace people have needs which they want to

be fulfilled because with the fulfilment of need, people will be more productive for

organization. His research has two factors which has impact on people. Hygiene

factors will reduce dissatisfaction but it will not lead to absolute satisfaction. It is to

attain the people towards work. Managers try to avoid the dissatisfaction of

employees by providing hygiene factors like adequate salary, good working condition

etc where as motivators are to retain the employees in organization by making their

work recognized, handing them responsibilities by empowering them authority. The

job satisfaction will lead to improvement in productivity.

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Employees dissatisfied

and unmotivated

Employees satisfied

and motivated

Employees not dissatisfied but

unmotivated

HYGIENE

MOIVATION

Siemens managers have to ensure that the balance between dissatisfiers and

motivators is well along the line. Policies of company are managed in right proportion

to reduce dissatisfaction. Siemens involve their employees by letting them know

issues so they understand the need for change and do accordingly. Motivators are

factors which as Siemens encourages employees to work in the best possible way they

can perform. Empowerment helps employees to manage their role and with their

power change things for betterment. The mission of manager is stimulating employees

in a way that they believe they are working as a unit with manager, rather than

working for the manager (Tuttle, 2003).

From a fresh graduate to experienced faculty all work in a highly dynamic

environment which brings creative approach and flexibility to respond to changes

according to the need of situation. Furthermore, it develops their problem solving

technique in creative manner. Both intrinsic and extrinsic motivation is vital for

employee productivity. Some individuals are motivated by external motivators like

good salary package or working conditions while internal motivators are one which

require challenging tasks and empowerment. Internal are sole reason of reduction in

absenteeism (Kiger, 2006).

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6. In a nutshell:

Change is dynamic by nature so manager needs to be quick and responding to changes

and they need a creative approach rather than following traditional methods. At

Siemens, taylorism cannot be applied to all aspects as money is not the only

motivating factor. To meet lower needs of employees like safety and basic needs,

Taylor’s motivator ‘money’ can be used but at Siemens, employees need more

empowerment to enjoy their work. Work is done in a systematic way and best

possible way is selected but there is no one best way for all problems because

problem is unique by nature so requires new approach to resolve it. Maslow’s

hierarchy of need is more compelling at company to find understand the need of

individuals. The higher needs of individuals at Siemens are recognised by creative

environment and to enhance their higher needs proper and adequate training and

development program is available for employees. They are also given opportunities to

meet the challenges and respond to it in their own innovative way. Employees are

appreciated for their work which motivates them to strive more. They are motivated

by recognition for their achievements and opportunities to work in inventive manner

by empowerment. There is full opportunity to for career progression for employees at

all levels. The recognition works as a performance appraisal tool which ensures that

employees are not just dissatisfied but in fact highly satisfied at what they do. The

bureaucratic structure and well defined policies always helps the organization to

maintain a discipline at every level but flexibility is essential to bring a required

change and respond to that change.

7. Recommendations:

At Siemens, though empowerment is given to employees but they need a bit more in

shape of empowerment through coaching. It allows being creative yet having a proper

guidance of an expert. Secondly they should also consider job enrichment to motivate

people towards organizational goal. The management at Siemens should also consider

the performance management program, through which individual’s management skills

will be evaluated by making them actively participate in management and this will

lead to self fulfilment needs. Empowerment is not suitable for every individual as

there are some x and y type employees so they should start Simulation through

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professional mentors. They should also consider job rotation at ground level to

maintain the motivation and enthusiasm towards organizational goals and reduce job

boredom. Working in creative environment can lead to immense stress for which

Siemens should introduce some holidays package, fun activities so that stress and

fatigue is reduced and optimum level of employees are maintained efficiently and

effectively.

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