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Organization Behavior

Syed Zafir Momin

ORGANISATION BEHAVIOUR
REPORT

SIEMENS AG AND TESCO PLC

TITLE
PROGRAM

MQP JAN 2014

TITLE
WRITTEN

SYED ZAFIR MOMIN

BY
WORD

6424

COUNT
DATE

5th June, 2014

Organization Behavior

Syed Zafir Momin

TABLE OF CONTENT
INTRODUCTION............................................................................................ 3
LO1 1.1 ORGANIZATION STRUCTURE AND CULTURE.....................................4
LO1 1.2 IMPACT ON THE PERFORMANCE OF A BUSINESS.............................7
LO1 1.3 FACTORS INFLUENCE INDIVIDUAL BEHAVIOUR AT WORK.................8
LO2 2.1 THE EFFECTIVENESS OF DIFFERENT LEADERSHIP STYLES IN
SIEMENS AG AND TESCO PLC:......................................................................10
LO2 2.2 HOW ORGANIZATION THEORY UNDERPINS THE PRACTICE OF
MANAGEMENT WITHIN SIEMENS AG.............................................................11
LO2 2.3 EVALUATION OF THE MAIN APPROACHES TO MANAGEMENT THEORY
................................................................................................................. 12
LO3 3.1 THE IMPACT THAT DIFFERENT LEADERSHIP STYLES MAY HAVE ON
MOTIVATION IN ORGANIZATIONS IN PERIODS OF CHANGE..............................12
LO3 3.2 THE APPLICATION OF DIFFERENT MOTIVATION THEORIES WITHIN
THE WORKPLACE........................................................................................ 14
LO3 3.3 THE USEFULNESS OF MOTIVATION THEORIES FOR MANAGERS IN
SIEMENS AG............................................................................................... 15
LO4 4.1 MECHANISMS FOR DEVELOPING EFFECTIVE TEAMWORK WITHIN
SIEMENS AG............................................................................................... 16
LO4 4.2 FACTORS THAT MAY PROMOTE OR INHIBIT THE DEVELOPMENT OF
EFFECTIVE TEAMWORK IN SIEMENS AG........................................................17
LO4 4.3 EVALUATION THE IMPACT OF TECHNOLOGY ON TEAM FUNCTIONING
WITHIN SIEMENS AG...................................................................................19
CONCLUSION.............................................................................................. 20
REFERENCING............................................................................................. 21

Organization Behavior

Syed Zafir Momin

INTRODUCTION
What is Organization Behavior and Culture?
Organization behavior is the study of specific or group behavior and arranging them
precisely in the organization structure to progress in organizational performance and
effectiveness.
Organization behavior is concerned with the study of the behavior of people within an
organizational setting. It involves the understanding, prediction, and control of human
behavior (Mullins, 2010)
Organization Culture is a concept that has developed from anthropology. In simple words
by Atkinson (2006) How things are done around here.It is based on traditions, values,
polices, beliefs and attitude along with development of the individual for everything we
do and think in an organization. Atkinson (1990p6-10)
This report will compare Siemens AG and Tesco PLC in contrast to their organizational
structure and culture. It will highlight the difference between the tall and flat structure.
We will also throw light upon the different culture these companies have adopted in
according to their structure.It will also discuss the possible changes the organization can
adopt to enhance their performance and efficiency.
Siemens AG is a group founded in 1847 in Berlin. Its founder was Werner von Siemens.
The Headquarters are in Munich and Berlin, Germany. Mr. Gerhard Cromme is the
President & CEO of the conglomerate.

The group operates in 4 major sectors:

Healthcare, Energy, Industry and Infrastructure & Cities. It generates annual revenue of
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75.88 Billion Euro and total assets of 101.93 Billion Euros. Mr. Gerhard is also a chairman
of the supervisory board of Siemens AG. There are 20 members in the supervisory board.
As per the German Codetermination Act the board consist of half of the company
shareholder and the other half company employee. Siemens AG presently has 362,000
employees working around the globe in different division.
Tesco PLC was founded in 1919 in Burnt Oak, Middlesex. Its founder was Jack Cohen The
Company has diversified its business in Grocery, Books, Clothing, Electronics, Furniture,
Petrol, Financial services and Telecom. The board consist of Sir Richard Broadbent who is
the chairman with 2 executive directors and nine independent non-executive directors of
the organization .Its revenue is 70.89 Billion with assets 50.12 billion pounds (2013/14).
LO1 1.1 ORGANIZATION STRUCTURE AND CULTURE
Organizations structureis the hierarchical arrangement of lines of power, rights, duties of
an organization and communications. Organizational structure determines how the roles,
power and responsibilities are allocated, controlled and coordinated. It also describes the
flows between the different levels of management. Organizations have two kind of
structure tall and flat structure as given in diagram 0-1. Tall structure organizations have
many levels of hierarchy with narrow span of control in which the managers have very
few staff under them and there supervision is very controlbeing tall structure the line of
communication is long, making the firm unresponsive to change. Flat structure
organizations have few levels of hierarchy and line of communication is short making it
more responsive to change. The span of control is wide as the tasks must be vicarious
and managers can feel overloaded. In tall organization the majority of decisions are
taken by senior managers and then passed down the organization hierarchy, but in flat
organization the authority is down the chain of command thus reducing the speed of
decision-making.

Organization Behavior

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Diagram 0-1

The organization cultures are four types as reviewed by Mullins (2002) the power culture,
role culture, task culture and person culture. Mullins (2002) reviews Handys (1993)
development on Harrisons (1972) ideas and identifies four main types of organisational
cultures:
1. Power Culture It concentrates power to very high level or a small group and its
controlled like a web. It needs few rules and little bureaucracy.
2. Role Culture It is more based on the power of the person who delegates within a
highly defined structure.
3. Task Culture In this the power is derived from a certain team with the expertise
to execute against task. This culture is confined to small team where people are
skilled and specialized in there own area of expertise. This is often used in Matrix
Structure.
4. Person Culture It is formed when an individual believes he believes himself
superior to the organization. Since the concept of the organization suggest that a
group of like-minded individual pursue organizational goals. Some professional
partnerships operate well as person culture, because each partner brings a
particular client or expertise to the firm.
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Siemens AG is a conglomerate(It is combination of two or more corporations engaged in


entirely different businesses that fall under one corporate group),which operatesas a flat
structure with little mid level management in the hierarchy. It believes in skilled workers
being more productive when they are directly involved in the process of decision-making
process. It operates in wide span of control with low level of hierarchy. It has been
following this structure to promote its employee through a decentralized decision making
process. As eliminating the mid level management promotes comments and feedback of
the baseline staff by reaching higher management to be acknowledged. This exhibits
that Siemens AG follows a Task and Personal culture across the organization with its high
performance team.The issues in flat structure are have so many different division in
same location that the culture varies, as in tall structure we have seen the culture is very
similar as they all are under same roof.

(Siemens AG Flat Organization Structure)


Tesco PLC is a public listed company thriving on a tall organization structure. In the
company all employees are closely supervised, as the span of control is narrow and each
manager is responsible for a small number of employees. As given in 1.1 its structure, it
is remote to change and is more internalized. In Tesco management structure and
responsibilities of each manager are clear and defined. It also demonstrates power and
role culture across its tall structure organization. As in tall organization success of every
employee and manager is clear therefore, tall organization structure has clear
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promotional ladder and reward. As we are aware Tesco PLC has lost its market share due
to its tall structure and according to Harrison (1972) its power and role cultureunable to
adapt the market trends. As we can see in the diagram below the employee are closely
monitored and number of people reporting to one manager are very less compared to
Siemens AG.

(Tesco Store - Tall Structure)


LO1 1.2IMPACT ON THE PERFORMANCE OF A BUSINESS
Siemens AG being a flat structure organization thushave astrong culture and with less
middle level managers. The employee communicates directly to the managers. The ideas
with the help of the managers are acted upon promptly. They support new innovation
and spend a lot in research and development to provide innovative products. The
employees and managers have full control of every task that is to be accomplished. As
both of them stay close and therefore respond quickly to the change in demands and
requirements of the customers. It also empowers their staff for effective delegation. The
culture is more democratic, providing flexible working environment and dress code.
Staffs loyalty is also very high as they enjoy working. The company is known for
deploying matrix projects. As they have highly skilled professionals,it helps them to pull
their best resources as per the project requirement. Being a flat structure organization it
follows a person culture around the organization.
In Tesco PLC being a tall structure organization they haveweak culture. The company has
narrow span of control with more empowered employee. As the manager have very few
staff to manage andemployees are given rules and regulations they need to comply
upon. They also relay on the instructions given by their manager in charge. Their
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decisions take place at top management. The company has task culture and as they are
subject to certain task and command there is low level of motivation. The company is
slow in adapting a change. Due to its tall structure it deploys matrix team across its
levels. These projects consist of specialist team that specializes in their core field as
given in diagram 0-2. Matrix structure supports tall structure acting flatter with task
orientated project teams. Tall structure being internally focused and maybe missing
market opportunities whilst flatter structures have motivated workers who support more
external focus and seek market opportunities.

(Diagram 0-2)
LO1 1.3 FACTORS INFLUENCE INDIVIDUAL BEHAVIOUR AT WORK
The factors that influence persons behavior at work is because when his Job roles and
responsibilities conflicts with his behavior, decision making, taking initiatives, acting
upon responsibilities, and delegation. Siemens AG follows Peoples Excellence one of
the most important strategy based on Responsibility + Being trusted =
Engagement, commitment and high performance. Focused on real motivation
comes from within an individual, valuing their efforts. Siemens AG believes their people
are a source of competitive advantage. This kind of strategy shows that itrecruits right
people for right job that will eventually develop both the organization and individual.
Chief Executive Officer of Siemens, Mr.Klaus Kleinfeld said in a Lecture in
Wharton University In todays world, knowledge travels faster than ever before, so if you
are talking about a sustainable competitive advantage, probably the only one is the quality of
the people you have and the way they interact as a team,This

indicates that perception of

the management of Siemens AG believes empowering their employees with ability to


take decision brings positive and productive results. Siemens AG has taken stress as a
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factor that destroys individuals performance and health. They provide challenging
activity like in Great Britain they are High performance Partner of Rowing Team. This
activity keep people positive and also motivates them to take new challenges. They also
provide Private health care program to make sure they are at their best health. Siemens
AG employees are highly motivated. As being able to work under less supervision and
being well acknowledged. As defined by Chartered Management Institute Motivation is
the creation of stimuli, incentive and working environments that enable people to
perform to the best of their ability. The heart of motivation is to give people what they
really want most from work. In return manager should expect more in the form of
productivity, quality and service. Different Motivational theory is explained in contrast to
the organizations in LO3-3.2.In an article by Telegraph it stated that Siemens emotional
intelligenceisinterconnected with leaders whose revenue and growth figures were
strong andthese leaders put a premium on collaboration and teamwork.Emotional
intelligence is the ability to motivate oneself and persist in the face of frustration. It is a
concept that has been identified as a key aspect of managing people efficiently.
(Coulson-Thomas, C. 1998). That shows that Siemens provides great benefits and bonus
to there team who are able to demonstrate different skills. The employees in the
organization are more Extroverts. Extroversion meaning in dictionary is the act, state,
or habit of being predominantly concerned with and obtaining gratification from what is
outside the self. A person having falling under these abilities is called Extrovert.
Extroverts are humans that tend to enjoy human interaction they tend to be enthusiastic,
talkative and assertive. They also have strong self-confidence with a charisma. They can
be at times controlling but have a very sharp in interpersonal skill. They are the kind of
people prefer to work in Sales, Marketing or Business Development they are not good in
back office jobs. As they have the flexibility to work in less supervision. As given in
McGregor Theory (explained in LO3-3.2), It clearly implies that Siemens AG
management follows theory Y. As theory Y states that employee withself-direction and
self control in service of their objectives that they are committed. It also implies
motivation occurs at the relationship, honour and self-actualization level as at the
psychological and security level.
In contrast to Tesco PLC believes Everyone welcome and believes if a person is
passionate, striving, driven, committed, willing, determined, motivated, adaptable,
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flexible and devoted can work with Tesco PLC. They believe that their training and
development program after graduation can help any individual to work with them. On
the other hand the employee at Tesco PLC are moreIntroverteddue to its task culture.
Introversion meaning in dictionary is the state of or tendency toward being wholly or
predominantly concerned with and interested in one's own mental life. A person falling
under these qualities is called Introvert. Introverts are shy people that are less inclined to
teamwork. Their actions and decisions are very insular. The perception of the
management in the Tesco PLC believes that all employees are obliged to their task under
their norm and all innovative ideas are share and discussed in the top management. The
companys approach is Theory X of McGregor believing that average person is lazy and
has an inherent dislike of work. It also says that average person avoids responsibility,
prefers to be directed and lacks ambition and values.Tesco PLC has different approach
toward their employees loyalty. After completion of 6 months it provides a privilege card
that provides 10% discount and club points. It also provides a package with health care,
Pension and a program called supporting your life style. Tesco PLC has been focusing on
international business in China and America. Due to lack of concentration on its cash cow
Great Britain its recorded that it has fallen 1% in the past 20 years. Lack of support to
employee has made them less motivated at work, which has made the consumers to
move to competitors. Stress is a complex and dynamic concept; it is caused by various
factors individual difference, types of personality if a person in introvert or extrovert,
nature of job and occupation. Stress is mainly caused when a wrong person is assigned
to a wrong job. If an introverted person is assigned to extrovert environment as he will
be unable to entertain his job due to his personal traits. It has been a challenge as these
employees are supervised very closely and are not given any room to take decision on
their behalf. The organizations culture is the main factor that influences the stress
among the individual. Understanding the employee and assigning to his job can create a
positive change. Also implementing Kaizen a Japanese principal Continues
improvement can help individual to lower the stress level and be more productive, As
this process is more of on job learning and can improvise along with the span of time.
LO2 2.1 THE EFFECTIVENESS OF DIFFERENT LEADERSHIP STYLES IN SIEMENS AG AND
TESCO PLC:
Leadership styles can be recognized by how authority is used, how a leader relates to
others, employees minds and efforts are used and how a leader communicates.
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Leadership and Management are often interrelated as management is used for employee
being given certain roles and targets with a team to accomplish it, on the other hand
leadership is a part of a job where an individual is able to demonstrate willingness and
enthusiastic behavior for its follower.An effective leader has the ability to manage and
communicate his team to capture his vision as there vision.Leadership is evaluated on
how supporting ordirecting is his style.
Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified
three different styles of leadership, in particular around decision-making. Thethree kinds
of leadership style areAutocratic, Democratic and Laissez-faire. Autocratic style is more
of directing the employee it is one-way communication. It is based on strict instructions
in authoritarian way of giving instruction to the employee. The employee is obliged to
certain rules and is confined to complete their task, as they are not highly skilled.
Democraticstyle is more liberal toward monitoring their employee and believes they are
able to demonstrate quality of work if they are given direction. They are highly
skilled.Siemens AG being a flat structure organization with a task and personal culture
has a democratic leadership style as the focus of the power is more with in the group a
whole and there is greater interaction within the group. The Leadership functions are
shared among the members of the group; Manager is more part of the team then some
one more superior. In the organization the decision-making and implementing of the
system is worked in collaboration. As the company is more involved in creative thinking
and new ideas are support with possibility of failure. It believes that without certain
degree of risk the leverage to develop new ideas is not possible. As the teamwork
independently on the share in accordance to the group task are shared based on
individual specialization. This democratic style has enabled the team to adapt to change
and new innovative technology. Siemens Leadership Excellence is development
program for leaders to achieve even higher expectation than Siemens. It is designed to
prepare leaders for challenges ahead. This program is designed to provide time to reflect
on leadership roles. It also focuses on higher-order leadership skills away from day to day
business. It believes that people are like its technology and innovation and are a source
of competitive advantage. To make the most of the advantage, Siemens makes sure that
its employee work on companys heritage of innovation. Tesco PLC is a tall structure
organization with a power and role culture it runs a very autocratic style. It has adapted
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its style because its business is supply driven. Their major employees are confined to
their task and role. The levels of people employed arenot developed and require sense of
direction.Their risks are very high as it is dealing directly with end user a minor factor
can make people move to different suppliers. Its culture is long embedded and is very
difficult to change. Major issues with this leadership are even after seeing a threat it is
unable to react to the change making it at risk. As we have seen Tesco PLC has failed to
grow in China and America. It has also recorded 1% downfall in profits in the U.K, Which
has been a cash cow for them. In comparison Siemens AG has worked on flat structure
so the risk is very minimal as they are more compliant to change. Also, Siemens AG
always deploys matrix project as to minimize the risk of failure in any possible segment.
LO2 2.2 HOW ORGANIZATION THEORY UNDERPINS THE PRACTICE OF MANAGEMENT
WITHIN SIEMENS AG
There are different framework to analyze the kind of approach the organization takes the
basic are the classical (Scientific management and bureaucracy), Human relations,
systems and contingency. In accordance to classic management theory it emphasized
issues such as the unity of commands, organizational specialization, span of control and
the application of scientific management as this factors relates to McGregor X Theory. In
Systems approach it sees and organization as a whole and a part of larger organization.
The idea is that any part of an organizations activities affects all other parts. On the
other hand Human relation emphasizes that the needs of workers should be satisfied in
order for them to be more productive in the organization. Contingencytakes the view
that the best style of leadership depends upon the factors active in the specific
situation.However, We cannot use classical management approach in Siemens AG as this
approach is good in tall structure organization with McGregors X. AsSiemens
AGadoptsHuman Relations as it relates to McGregors Y theory, butwe have also seen
contingency in Siemens AG in International offices. As the group structure remains the
same the culture varies due to the situation and the urbanity. Siemens believes that if
needs of the individual are not satisfied it demotivates them to perform there task
effectively.It uses talent management to match the talent with the task to produce
competitive advantage. Talent management helps them to enable job enrichment and
job enlargement. Their employees are provided with the guidance and support to
achieve their full potential. Therefore productivity will be effective and efficient. This
approach persuades the management into adopting a more positive job in leadership. It
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also contributes to key improvement in physical working environment for the workers.
(Mullins, L.2013)

LO2 2.3 EVALUATION OF THE MAIN APPROACHES TO MANAGEMENT THEORY


As we have seen scientific management, that is also called Taylorism. Taylorism as
the first form of scientific management, which was followed by new iterations; thus in
today's management theory, Taylorism is sometimes called Classical. Scientific
managements application was contingent on a high level of managerial control over
employee work practices. This necessitated a higher ratio of managerial workers to
labourers. The trouble in this management was there was no differentiating of intelligent,
detail-oriented management this misguided micromanagement caused interpersonal
conflict between workers and managers. As we have seen in LO1-1.3 the different factors
that are responsible for human behaviour at work. As we are aware all individual are
different from each other the most efficient way of working for one person may be
inefficient for another. Also the economic interest of workers and management are hardly
identical. Example: Some people are motivated with monetary and some are with
appreciation and added benefits. So the application of Scientific Management in Siemens
AG can create resentment and sabotage the workforce as we have seen in LO2-2.2.
Considering Siemens AG management process shapes its managers to understand their
peoples human behaviour, as their perception is theory Y of McGregor. They also
emphasise on good human relation as it increases productivity by motivation. They
promote motivation, leadership, two way communication and group dynamics. As these
are the factors are the core of Human Relation. In Tesco PLC the management is classical
as there perception is theory X of McGregor, Scientific Management approach is more
relevant as there is strong control of management on the employee. As the employee is
more tasks oriented they are not motivated to bring new ideas or innovation, as they are
not high skill labour.
LO3 3.1 THE IMPACT THAT DIFFERENT LEADERSHIP STYLES MAY HAVE ON MOTIVATION
IN ORGANIZATIONS IN PERIODS OF CHANGE
Leadership is the process of social inspiration in that a person can procure the assistance
and support of others in the accomplishment of a common task. Management styles are
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divided in the main categories of autocratic, paternalistic, and democratic. Robert


Tannenbaum and Warren H. Schmidt (1958, 1973) argued that style of leadership is
dependent upon the prevailing circumstance; therefore leaders should exercise a range
of management styles and should deploy them as appropriate. As in Blake Mouton
Managerial Grid it focuses on two kind of leadership people oriented leadership and task
oriented leadership, as we have seen in the diagram 0-3 below. Task oriented leader will
take all the project and mark the time frame and appoint the job to the concerned, but a
people oriented leader will discuss the project with the team to find the know-how of the
person then make the time frame. If you prefer to lead by setting and enforcing tight
schedules, you tend to be more or task-oriented. If you make people your priority and try
to accommodate their needs, then youre more people-oriented.

Diagram 0-3
As we know that Siemens AG follows a democratic leadership style with its high
performance culture and its employee are highly motivated. As in Blake Mouton
Managerial grid the style of leadership can have impact on staff motivation, Siemens
leadership is high in people and production oriented. As the organization takes people as
there competitive advantage like their technology and innovation. In a period of change
if Siemens AG implements a dictatorial styles that is an authoritarian leadership style can
affect the employees in various ways. As this style follows a one-way communication the
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high skilled employee will not be able to demonstrate their view, as there will be no room
for discussion. As the employee will be subjected to set rules and will be rewarded on
individual output, there will be conflicts in teamwork. As all these factors will de-motivate
the employee it will drive them to look for different opportunities. If transformational
leadership is applied it will generate great awareness of the importance of the purpose of
the organization to understand the change to give outcomes. It will encourage them to
excel their own self- interests for the sake of the organization and its team. As
transformational leadership is compromised of idealized influences, inspirational
motivation, intellectual stimulation and individual consideration. As all these factors
favors the organization behavior of Siemens AG it will be the most idealistic approach to
motivate its staff in a period of change.
LO3 3.2 THE APPLICATION OF DIFFERENT MOTIVATION THEORIES WITHIN THE
WORKPLACE
As chartered management institute has explained motivation as given in LO1-1.3. It is
the driving force within a person that persuades them to achieve some goals in order to
fulfill some need or expectation. The basic motivation model explain that Performance =
functions (ability X motivation). There are two kinds of motivation: Extrinsic motivation
that relates for rewards that are tangible like a salary raise, the work atmosphere and
condition at work. Intrinsic motivation is more related to psychological rewards things
that are intangible such as opportunity to use once talent, sense of challenge and
attainment and being treated in a caring manner.
Maslows Hierarchy of needs:
Maslow suggested that human needs are arranged in levels of importance. He suggested
that people have wants and these wants will increase based on what they have attained
and fulfilled. It starts with physiological needs, safety, Love, Esteem and SelfActualization. It means that first human looks for basic need like hunger and thirst, sleep,
sensory pleasure and sex. Then its the safety of being protected from all danger and any
threat. Thirst level is the Love or social need is friendship, affection it is giving and
receiving love. After that, is Esteem it is like ego the desire for strength, confidence and
freedom. The highest level is Self-Actualization, when lower level needs are no more
motivator. Next level is demand satisfaction. As all organization provide basic salary with
living allowance, Housing allowance and Health care. The Basic salary + living allowance
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is for physiological need. Housing + Heath care is for safety need. The social need is
given with the team or peers and management. Esteem is mainly fulfilled with the
respect and attention is given in an organization. Self-Actualization is when a person is
able to self-motivate he has efficient perception of reality. It is when a person is stronger
and calmer then ever. (Maslow, 1968,1970)
Hertzberg two factor theory:
Frederick Herzberg (1966,1987) theory is a one step further of Maslows Theory. His
theory proposed that there were two factors: Hygiene factor, In this he focused that
absence of interpersonal relations, supervisor, company policy, working condition and
job security can promote dissatisfaction. It was also referred as context of work.
Motivation Factor, It makes up a range leading from no satisfaction-to-satisfaction. These
motivators are the job being inspiring, achievement, identification, and accomplishment.
As in Siemens AG both the factors are given great importance as talent management
along with leadership style of management are key aspect to motivate.
McGregor Theory X and Y:
Theory X and Theory Y are based on motivation in human behavior. This theory is based
on two extreme possible behaviors. Theory X organization the workers are lazy,
unmotivated and will avoid work at all possible ways. They are inherently dislike work
thus close supervision is required for productivity. A narrow span of control is needed in
every level of the hierarchical structure. Theory X manager tend to end in blaming
someone. Their only motivation is money. These people lack ambition, dislike
accountability and preferred to be led. These people are desire security. McGregor
recognized that X Type workers are in fact usually in small number and yet in mass
organizations such as large-scale production they are unskilled workers. Theory Y
organization the workers are self-motivated and thrive on responsibility. The
Management style is more participative and they involve employee in decision-making. Y
Type workers are encouraged to develop expertise and make suggestion. The appraisal is
frequent and encouraged to uplift their motivation. Y Type of worker is skilled and their
approach is well developed. This kind of worker is mostly found in flat structure

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organization that believes that they are creative and able to manage their skills to
benefit the organization.
(McGregor, D. 1960).
As in Siemens AG we have seen that all Maslows level of hierarchy and Herzberg
Theoryis morerelevant. They have more of Y type employee, as it has narrow span of
control. They are self-motivated and are skilled workers. The managers in Siemens AG
are more a part of the team then a dictator. The organization uses different approaches
for appraisal of its workers.
LO3 3.3 THE USEFULNESS OF MOTIVATION THEORIES FOR MANAGERS IN SIEMENS AG
Mangers in Siemens AG uses Herzberg theory as this theory covers all the factors of
Maslows theory and adds more to the context of job. Hygiene Factors, Managers can
adopt to improvise policy to provide job security. They can develop vibrantwork condition
that is more suited to their employees comfort. Managers can organize challenging
activities that are teamwork oriented, as it will develop trust between their peers and
supervisors. As these factors dont satisfy the employee but lack of these factors can
create job dissatisfaction. As for the motivational factors management can make there
task more challenging. They should provide room for achievement and gain their
recognition in the organization. As we have seen in 3.2 Maslows Hierarchy of needs in
contrast to managers at Siemens AG are using there human resource development
(HRD) strategy that focus on employee training courses and if the employee is interested
in different kind of work. The HRD strategy uses different methodology to make their
employee life better and balanced. In Maslows Hierarchy it is the self-actualization state,
they believe if a person is in this state he will be able to self-motivateand grow with
organization. In conclusion, as these factors can develop an individual but every
employee has different things that motivate a common ground cannot be used. They
need to focus on individual person and understand his driving force. As in Siemens AG
employees are type Y, high skill labors and require more than just basic necessities.
LO4 4.1 MECHANISMS FOR DEVELOPING EFFECTIVE TEAMWORK WITHIN SIEMENS AG
To understand effective teamwork, we need to know the difference between team and
group. Group in the workplace usually comprises three or more employee who recognize
themselves as a distinct unit or department, but who actually work individualistically of
each other to achieve their organizational goals. Team comprises of three or more
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employee who may come from different departments within a business, but they
collaborate together over time to achieve some set purpose or project.Duchanan and
Huczynski said team is a small group of people with complementary skills, who
work together as a unit to achieve a common purpose for which they hold
themselves collectively accountable(Duchanan and Huczynski, 2013).Group
consists of two types formal and informal teams. Formal group is made by an
organization to serve a task or a project but informal team is to satisfy personal or
psychological needs of an individual. Meredith Belbin is a British researcher and
management theorist best known for his work on management teams. Belbin focuses on
the relationship between personality, ability and the effectiveness of management
teams. Belbin defines a team role as tendency to behave, contribute and interrelate
with others in a particular way He describes Team-Role a pattern of behavior
characteristics of the way in which one team member interacts with another team
member, where their performance facilitates the progress of the team as a whole. In his
book Management Teams: Why They Succeed or Fail, Belbin asserts that only eight
useful team-role types could be identified. Later, however, a ninth team-role, that of
Specialist, has been added to his taxonomy (Team-Roles). Belbin team role are clustered
according to there orientation. Action oriented roles Shaper, Implementer and
completer or finisher. People oriented roles Coordinator, Team worker and Resource
Investigator. The whole idea of Belbins was by understanding your role within a
particular team you can develop your strengths and manage your weakness as a team
member and so improve how you contribute to the team. Team leaders often use the
Belbin model to help create more balanced teams. Teams can become unbalanced if all
team members have similar styles of team roles or behavior. If team members have
similar weakness, the team as a while may tend to have that weakness or if they have
similar teamwork strength they may tend to compete for the team task rather than cooperate. As we have seen in Siemens AG it is a Team oriented organization, where every
project is executed through teams or groups as it enhances productivity as all team
member represent a different expertise to the project. Effective teamwork can be
accomplished using Belbins team role model. Analyzing the team membership using
Belbin team roles as checks for potential strengths and weakness within Siemens AG.
Individual members of the team need to be observed to see their behavior, contribution
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and also their behavior within the team. Manager needs to write the team members
strengths and characteristics or weakness as observed. Strength and weakness of each
member of the team has to be linked to the most accurately described among the Belbin
description of team roles. Then it is possible to analyze where the teams strength is or
its lack in certain ability. Example: Many Shapers can weaken a team if each Shaper
wants to pull the team in a different direction. Also, Siemens AG follows a task culture as
we have seen in L01-1.1. They believe is the employees are truly involved in the
business and are a part of the success it will motivate. Siemens AG under its people
excellence it is believed that trust drives its high performance culture. Teammembers in
Siemens AG work on a shared goal as a group. They have a sense of shared
responsibility for the shared goal to achieve their objectives. This is all possible to the
strategy of Siemens AG to make the most use of their employees talent.
LO4 4.2 FACTORS THAT MAY PROMOTE OR INHIBIT THE DEVELOPMENT OF EFFECTIVE
TEAMWORK IN SIEMENS AG
Teamwork is about galvanizing a group of people towards a shared objective. It is also
about bringing the best out of each individual in the pursuit of a collective goal thought
worthy of being realized. According to Jon R. Katzenbach and Douglas K. Smitha team is
a small number of people with complementary skills who are committed to a common
purpose, set of performance goals, and approach for which they hold themselves
mutually accountable.'(Harvard Business review, July 2005)
The success of an effective teamwork is a vital part of Siemens AG, as it wants to prosper
in the global community. In order for Siemens AG to achieve its vision, mission and goals
it needs to understand the impact and importance of effective teamwork. There are
many potential distractions, obstacles and other detriments that can lead to failure, but
it will require deftly avoiding these in favor of beneficial traits instead in order to
overcome the job at hand. Recognizing these factors may help contributors be more
planned in their objectives. Siemens AG operations based on teamwork culture as quoted
by the Chief Executive Officer Mr. Kaus Kleinfeld of it Many times in my life I have seen
how one individual can make a big difference, particularly when working in a great team.
The quality of our people and of our teams is our most valuable recourse, particularly in
todays world where knowledge flows round the globe with lightning speed and is easily
available.
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As most of the factors that can enhance the teamwork can be a barrier or demotivate
their team. Communication is basic crux for the team member as without it they will
not be able to convey their direction and share information. Employees in Siemens AG
need to emerge as leaders to promote productivity as the team member provides ideas
others need to interpret its complex concepts, as Siemens is known for its innovation.
Positive attitude, It the team member believe that the goal or project was doomed to
fail they will not put a sincere effort. In addition if the teammate have opinion concerning
between each other can affect their success, as having a negative opinion can shelter
antagonistic working environment. Planting seeds of conflict or showing unwillingness to
the among team members will effect there communication. In its place the team
members should enter the group with full intention on completing there given task with
out negative complaints or comments. Trust is one of the essential factors that promote
effective teamwork because team members towards task completion are rendered
impossible or altogether unavailable without it. Team member do not share as much
information with each other, as they tend to shoulder more of the load than they can
sincerely handle. It is impossible to take risk even if its wisely calculated if there is no
trust. Siemens AG trust its employee as they work on project that have risk factors they
understand that in doing something innovative there are risk involved.
Leadership is another factor that promotes and inhibits the team performance. If the
organizations style is Democratic and its managerial style as we have seen in LO-3.1
Blake Moutons managerial grid is high is people and production oriented like in Siemens
AG he will be a Team leader. As he will be able to support by coordinating among their
team members to make sure all the task are completed effective and efficiently. If in a
situation where one member is lacking or having issues it will guide and support them.
As in the case if their approach is more directives and production oriented it will affect
the process, as the team member will lack support. Motivation is also an important
factor in the leadership as it drives the team members to achieve and use there shared
potential in accomplishing the project. Human resource development is one the key
factor to encourage the employee as in Siemens AG, if a workers needs to attend a
training that can enhance his or her skill to have a better career it is appreciated and
consider. As this factor can affect the efficiency of an individual so as team. Siemens AG
believes that organization is nothing without its people; it has one of the worlds most
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efficient and motivated workforce. If Siemens AG analyzes their individual employee


strengths and weaknesses can give good opportunities to utilize their skills entirely to
their growth. That will enhance them to make effective and efficient teams.
LO4 4.3 EVALUATION THE IMPACT OF TECHNOLOGY ON TEAM FUNCTIONING WITHIN
SIEMENS AG
Workplaces are adapting new technology at an exponentially increasing rate over the
last few decades. Organizations see technology as a competitive advantage to increase
their profits. Organization use technologies like Blackberry, Personal desktop assistant,
tablets and live conferencing applications for steady communication in their
organization. As technology has its merits also has its drawback and demerits. Virtual
teamwork has been incorporated by most of the companies today including Siemens AG.
As they function virtual teamwork they have flexibility. Organization is able to alter team
based on the challenges that they face time-to-time. The teams are built using the best
possible members available; it is particularly helpful when they require a specialist.
Virtual team doesnt have issues like geographical, time zone or organization constraints
faced by actual teams. As they work around the clock depending on the region they have
an added benefits. The efficiency saving is made as there is no travel or relocation costs
involved. As social, political and economic aspects associated with human beings are
ignored it causes AlienationWork performed under conditions in which the worker is
estranged from his or her own activity on the act of production, through the sale of
labour power and subordination of skills and knowledge to the capitalist, or other
external social forces (Thompson, 1989:p.xiii). In an assertion made by Blauner (1964)
it makes the worker feel powerless, Meaningless, Isolation and Self-estrangement. As
Alienation is an aspect of work heavily impacted by organizational technology. Siemens
AG deploys numerous projects around the world with the support of there virtual teams.
As these individual function from their stationed office and with the help of there project
leader are able to provide there input virtually. They use VOIP (Voice over internet
protocol) to communicate and Video-conferencing tools like Microsoft Lync and Skype to
have there meetings with there virtual teams.

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CONCLUSION
There task and role culture makes there flat structure more de-centralized. The demerits
are that they are unable to standardize this culture as they are widely spread. The strong
culture of the Siemen AG with their Peoples Excellence makes them a High
performance Culture. As they take there employee as there competitive
advantage.Siemens emotional intelligence is interconnected with leaders whore revenue
and growth figures were strong and these leaders put a premium on collaboration and
teamwork. The democratic leadership style used in Siemens AG as the focus of the
power is more with in the group a whole and there is greater interaction within the
groups. In the period of change Siemens AG can use transformational leadership as it is
compromised of idealized influences, inspirational motivation, intellectual stimulation
and individual consideration. As this approach will be more idealistic to motivate its staff
in the period of change. In motivational factors Herzberg theory can be applied in the
talent management as it can help them understand their individual employee.As in
Siemens AG leaders may think that getting their organizations to learn is only a matter of
enunciating a clear vision giving employee the right incentives and providing a lots of
training. This assumption is not wrong but is very risky as the competition is getting
intensified, technologies are changing and customer preference is shifting. As Siemens
AG needs to learn more than ever to confront these forces; they must become a
learning organization. Peter M. Sengess flourished this concept in the 90s The Fifth
Discipline. This approach can help Siemens AG employees to cultivate tolerance, foster
open discussion and think holistically and systemically. As it will help Siemens to act
upon the unpredictable quickly then its competitors.

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