HR PRACTICE AND PROCEDURES at ABSTRACT
This This course coursewor work k is a requis requisit itee for the course course Recrui Recruitme tment, nt, Select Selection ion,, Assess Assessmen ment, t, Performance and Reward. The main objective of this coursework 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. practices. Besides, some recommendation recommendation has been provided better utilization utilization of the company’s HR department.
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HR PRACTICE AND PROCEDURES at
TABLE OF CONTENTS
PAGE NUMBER
1. INTRODUCTION
5-7
1. A. About the Company
5
1. B. History of Siemens
6
1. C. Vision of Siemens
6
1.D. Mission of Siemens
6
1. E. Aim of this project
7
2. HUMAN RESOURCE PRACTICES AT SIEMENS
9-20
2. A. Job Analysis
8-10
2.B. Demand and supply forecasting
10-11
2.C. Selection and recruitment
12-13
2. D. Training & Development
14-17
2.D.i. On the job training
15
Shadowing
15
Mentoring
15
Coaching
15
Job rotation
15
2.D.ii. Off the job training
16-17
Apprenticeships
16
Siemens Commercial Academy
16-17
Siemens Graduate Program (SGP)
17
2.E: Performance appraisal
17
2.F. Compensation and benefit Siemens
19-20 2
HR PRACTICE AND PROCEDURES at
TABLE OF CONTENTS
PAGE NUMBER
1. INTRODUCTION
5-7
1. A. About the Company
5
1. B. History of Siemens
6
1. C. Vision of Siemens
6
1.D. Mission of Siemens
6
1. E. Aim of this project
7
2. HUMAN RESOURCE PRACTICES AT SIEMENS
9-20
2. A. Job Analysis
8-10
2.B. Demand and supply forecasting
10-11
2.C. Selection and recruitment
12-13
2. D. Training & Development
14-17
2.D.i. On the job training
15
Shadowing
15
Mentoring
15
Coaching
15
Job rotation
15
2.D.ii. Off the job training
16-17
Apprenticeships
16
Siemens Commercial Academy
16-17
Siemens Graduate Program (SGP)
17
2.E: Performance appraisal
17
2.F. Compensation and benefit Siemens
19-20 2
HR PRACTICE AND PROCEDURES at 2.F.i. Performance-related Compensation
19
2.F.ii. Typical Pay Composition
19
Fixed pay
19
Benefits
19
Risk protection
19
Health and well-being
20
Pensions
20
Fringe benefits
20
3. EVALUATION OF SIEMENS HRM
21-25
3.A. Evaluation of job analysis and workforce planning
21
3.B. Evaluation of selection and recruitment
22
3.C. Evaluation of training and development
23-24
3.D. Evaluation of performance appraisal
25
4. RECOMMENDATION
26-28
4.A. Anticipate external business environment
26
4.B. Utilize the opportunities
26
4.C. Emphasize on action learning
27
4.D. Increase pay scale and incentives
27
4.E. Better coordination
27
4.F. Balance dissatisfiers against motivators
28
5. Bibliography
29-30 3
HR PRACTICE AND PROCEDURES at 1. INTRODUCTION
1.A. About the Company 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.
Siemens people all over the world. Source: Personnel today, 2009.
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HR PRACTICE AND PROCEDURES at 1. B. History of Siemens Siemens operation has been started by Willam Simens at England in the year 1847 (Siemens, 2009). Simens AG (2009) divided the de velopment stages of Siemens at seven steps as follows: 1847 – 1865:
Initial Stage of Siemens
1865 – 1890: Triumph of internationalization 1890 – 1918: Growth through partnership and consolidation. 1918 – 1933: Return to the world market and unity within the “House of Siemens” 1933 – 1945: The National Socialist economy and the war years 1945 – 1966:
Reconstruction and emergence as a global player
1966 – 1989: New markets and areas of busines 1989 – 2005: The age of globalization
1.C. Vision of Siemens
The vision of Siemens is “A world of proven talent, delivering breakthrough innovations, giving customers a unique competitive edge, enabling societies to master most vital challenges and creating sustainable value (Siemens AG, 2009)”.
1.D. Mission of Siemens
The mission of Siemens is ‘Throughout global network of innovation and strong local presence, pooling and developing knowledge and competencies within a high performance organization, aiming to create outstanding value for clients, employees, shareholders and society (Simens AG, 2009)’.
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HR PRACTICE AND PROCEDURES at 1. E. Aim of this project The aim and objective of this research report is to explore overall Human Reources Management of Siemens, i.e. how Siemens recruit people, how they maintain and improve skill and efficiency of their employee etc. According to Warner & Heinrich (2009), Siemens always emphasize on their outstanding quality on the way to their suceess. Siemens achieved this outstanding qaulity by not just only for their products quality, the people inside Siemens also plays a v ital role in the succes of Siemens.
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HR PRACTICE AND PROCEDURES at 2. HUMAN RESOURCE PRACTICES AT SIEMENS
2. A. Job Analysis
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 an d 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:
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HR PRACTICE AND PROCEDURES at •
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
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Ensure that the customers' needs are met.
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Assess site and project to ensure all information is correct
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Complete paperwork accurately
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Providing a courteous and professional service at all times
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To support other areas of the business where necessary
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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:
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Excellent Cabling installation experience to the highest level
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Strong Telecoms (pabx) knowledge including VOIP and Business Phones systems
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Ability to manage requests and enquiries in a courteous manner
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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
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Knowledge : Initiative, Organisational skills, Communication skills, Results and Quality Orientated.
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HR PRACTICE AND PROCEDURES at
According to The Times (2009), the required skill for an engineer at Siemens are as follows:
Source: The Times, 2009.
2.B. Demand and supply forecasting 9
HR PRACTICE AND PROCEDURES at 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 be nefit: 1) Siemens can check the skills of its existing employees, which help Siemens to decide about whether those employee needs training or not. 2) To check whether there is any skill gap between 10
HR PRACTICE AND PROCEDURES at the required skill for a particular job and the skills of the employees. 3) 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.
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HR PRACTICE AND PROCEDURES at 2.C. 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). 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).
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HR PRACTICE AND PROCEDURES at 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 qua lified 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 check s 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).
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HR PRACTICE AND PROCEDURES at 2. D. 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.
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HR PRACTICE AND PROCEDURES at 2.D.i. 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 discuss 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, 2 009) 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).
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HR PRACTICE AND PROCEDURES at 2.D.ii. Off the job training Induction training at Siemens enable 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 program 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 co mmunication 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
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HR PRACTICE AND PROCEDURES at 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 rquires the participants to go through three steps (Siemesn, 2009). This program helps employyes to gather skills about several career paths. This program ena ble participants for their career in marketing, manufacturing, human resoucres. However, this depends on the interst of the employees as well as the availability of the postion at Siemes (Siemens, 2009).
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HR PRACTICE AND PROCEDURES at 2.E: Performance appraisal
To measure the effectiveness of its training and development, Siemens uses an appraisal system, known as a Performance Management process (The Times 100, 2009). Employees and their line managers agree objectives at the beginning of a placement and progress is then monitored formally and informally throughout the placement. This helps to focus everyone on the developing needs of the business. Annually, the results form the basis of a staff dialogue where the employee’s manager reviews the progress towards the objectives that have been set(Siemens AG, 2009).. Feedback is discussed with the employee and any development needs are captured in order to decide appropriate training. Together, new objectives for the following year ahead are set. In some instances, appraisals are linked to pay reviews. In these cases, pay rises depend on employees meeting or exceeding their objectives(Siemens AG, 2009).
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HR PRACTICE AND PROCEDURES at 2.F. Compensation and benefit Siemens
2.F.i. 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 employess position in the company (Waddingham, 2009).
2.F.ii. Typical Pay Composition:
Fixed pay Fixed salary is based on the technical and personal demands placed on position and on individual input. This part of salary does not vary (siemensindustrialturbomachinery, 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 Many Siemens companies offer additional, voluntary benefits in the area o f accident, invalidity and life insurance (siemensindustrialturbomachinery, 2009)..
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HR PRACTICE AND PROCEDURES at Health and well-being In many cases, Siemens companies offer a range of items in different areas of health and well-being that top up statutory programs and help employees to find an individual balance between work and private life (siemensindustrialturbomachinery, 2009)..
Pensions In over 30 countries Siemens maintains supplementary company pension plans (siemensindustrialturbomachinery, 2009)..
Fringe benefits According to Siemensindustrialturbomachinery(2009), Siemens offers additional fringe benefits and perks depending on regional conditions and usual local benefits, (e.g. company canteen, products and services at special prices).
For Siemens, people, like its technology and innovation, are a source of competitive advantage (The Time, 2009). To make the most of this advantage, Siemens makes sure that its employees work on developing the company's heritage of innovation. Siemens believes that there are many ways to make people feel valued and engaged. These 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).
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HR PRACTICE AND PROCEDURES at 3. 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 right number of people, • The right kind of people, • At the right places, • At 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 number and right kind of people at right places at the right time. Besides, the training and development of Siemens help its employees to become economically useful.
3.A. Evaluation of job analysis and worforce planning
Simens always attarct 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 attrack potential employees by through the following questions to them ( The Times, 2009):
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How can Siemens control production to affordably satisfy individual customer requirements?
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How do Siemens meet the world’s growing demand for energy without destroying the environment? 21
HR PRACTICE AND PROCEDURES at •
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.
3.B. 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, wh ich 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.
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HR PRACTICE AND PROCEDURES at 3.C. 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 Wheretowork (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 23
HR PRACTICE AND PROCEDURES at Engineer at 2006. According to Paul- “The feeling of responsibility and trust of the company and fellow 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 a on the job training through job rotation. She is now capable to work in HR depart, Traffic Control department.
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.
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HR PRACTICE AND PROCEDURES at 3. D. Evaluation of performance appraisal
Performance appraisal at Siemens ensures that all the employees are be ing 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 up-to-date in a fast changing business • make sure that staff is well motivated • get feedback from staff on changes • make sure staffs are involved in changes.
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HR PRACTICE AND PROCEDURES at 4. 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 helps to organization’s Human Resources Department to do better.
4.A. 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).
4.B. 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 sells 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.
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HR PRACTICE AND PROCEDURES at 4.C. 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 enou gh to learn and work. Learning and working must be integrated. Only then can a corporation be a learning organisation. Action Learning addresses this challenge very efficiently." Siemens should give more emphasize on action learning.
4.D. 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).
4.E. 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.
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HR PRACTICE AND PROCEDURES at 4.F. Balance dissatisfiers against motivators Siemens managers have to balance dissatisfiers against motivators (The Times 100, 2009). Policies and procedures that may cause dissatisfaction have to be managed. To reduce dissatisfaction, Siemens believes the best method is to raise awareness of issues with employees and encourage their involvement (The Times 100, 2009). They then understand and recognise the need for change. This has helped Siemens to manage change programmes. Motivators at Siemens 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 organisation.
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HR PRACTICE AND PROCEDURES at 5. References
Bennett, R. & Graham, H.T., 1989. Human resources management . 6th ed. London : Macdonald and Evans.
HRM guide, 2009. Business driven action learning . [online] HRM guide. Available at: http://www.hrmguide.com/skills/action_learning.html [Accessed 3 August, 2009]
Hussain, B., 2009. Siemens internship report. [online] Scribd. Available at: http://www.scribd.com/doc/18659297/Siemens-internship-Report [Accessed 3 September, 2009]
Pitcher, G., 2008. Siemens to cut 16,000 jobs worldwide. [Online] Personnel today. Available at: http://www.personneltoday.com/articles/2008/07/09/46654/siemensto-cut-16000-jobs-worldwide.htm [Accessed 18 August 2009].
Rajput, H., 2009. Internship report on Siemens. [Online] Scribd. Available at: http://www.scribd.com/doc/17373819/Internship-Report-of-Siemens-By-HAK-RAJPUT
[Accessed 1 September, 2009]
Siemens AG. 2009. Jobs and career. [online] Siemens AG. Available at: http://w1.siemens.com/jobs/en/ [Accessed 4 September 2009]
The Times 100, 2009. Siemens: Meeting global and local needs.. [Online] The Times 100. Available at: http://www.thetimes100.co.uk/case-study--meeting-globallocal-needs--89-236-1.php [Accessed 18 August 2009]. 29
