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Transcript of Presentation Siemens
7/28/2019 Presentation Siemens
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Organisational Change pattern at
Siemens, Bangalore
Krithika Rajendran
1PI11MBA74
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History of Siemens in India
• Siemens’ heritage in India dates right back to 1867when it began laying the world’s first undersea cable
from London to Kolkata. Siemens set up a branch inIndia as early as 1922, in Mumbai and Kolkata. Thoughthe company’s assets were confiscated during WorldWar II as enemy property forcing it to shut operations,Siemens re-entered India after the war. It startedoperations as the “Siemens Division” of “ProtosEngineering", a local contracting company. Siemens wasengaged in sales and service of its own brand of switchgear and switchboards. Its first workshop waslocated under the bridge of, what is today, theMahalaxmi Railway Station in Mumbai.
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History of Siemens in India• In 1957, Siemens was incorporated as a company under the
Indian Companies Act as Siemens Engineering & ManufacturingCo. of India Pvt. Ltd. In 1961, Siemens became a public limitedcompany with restricted external shareholding and was listedin the Bombay Stock Exchange a decade later.
• The Siemens Group in India comprises of 17 companies,providing direct employment to over 18,000 persons. Currently,
the group has 21 manufacturing plants, a wide network of Salesand Service offices across the country as well as over 500channel partners. It operates in the core business areas of Industry, Infrastructure & Cities, Energy and Healthcare.
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Sectors operating
• Energy
• Healthcare
•
Industry
• Infrastructure & Cities
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Organizational Change
• A concerted, planned effort to increaseorganizational effectiveness and health throughchanges in the organization’s dynamics usingbehavioral science knowledge.”
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Kurt Lewin’s 3 step Model of Organizational Change
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Nature of organizational change
• Affects whole organisation
• A continuous process
• Reactive or proactive
• Perceptual and Behavioral
• Incremental or transformational
Linear and sequential
Singularly or parallel processed
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Levels of Organisational change
Level 1: Shaping and
Anticipating the Future
Level 2: Defining Businesses/
Core Competencies
Level 3:Reengineering(structurally
changing)
Level 4: Incrementally
changing
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Organisational Level of Siemens
• On the basis of these four levels of organisationalchange, the organisation in which I interned is inthe Level 4. In this level, the organisation has amanagement that perceives only a modest need forchange, is relatively risk-avoidant, has many
constraints on its actions and only has a modestconsensus among them on what to do. Theorganisation’s strategic planning solely focuses on
refining an existing mission statement.
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New organisation structure in 2007
• Announcement of the planned reorganization of Siemens in early October
• ƒSet up work groups to define and plan the 3 Sectorsin mid October
• ƒPublish new margin target range for Healthcare
Sector in early November• ƒAnnounce 3 Sectors and their CEOs and Division
structure at end of November
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Cont..
• ƒAppoint and announce Division CEOs in early December
• ƒImplement new organizational structure beginning of January 2008
• ƒLaunch project to reduce SG&A costs early in January 2008
•
ƒAnnounce new margin target bands for Sector levels• at Annual Shareholders’ Meeting on January 24, 2008 • ƒPro-forma financial reporting based on new
organizational structure as of Q3 in fiscal 2008
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Resistance to change
• Fear of the unknown
• Economic threat
• Job security : Unemployment
• Resource allocation
• Structural changes
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Overcoming change
Education And Communication
Participation
Facilitation And Support
Negotiation Manipulation
Coercion
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