HRM systems and organization’s performance – Case Siemens

Extract

[...] Developing performance objectives, measures, targets and actions at all levels of the organization Staff Dialogue A staff dialogue is then organized to define and to comment the following parameters: MBO Process The target are expected to be agreed upon, approved and submitted to Corporate HR using online tools. The responsibility is given to individual managers with a close collaboration with the employees during the setting and achievement. c. Compensation The reward is at the focus of the employees and strongly linked to their motivation. [...]

[...] Conclusions As discussed, there is a strong link between successful adoption of a bundle of best HR practices and organisational performance (Pfeffer and Veiga, 1999). Siemens HRM manage to combine a resource-based model with the use of best HR practices in order to reach an acceptable vertical and horizontal integration of the HRM with the organization strategy. Even if Siemens prioritize to growing talent within the company, in Singapore, the recruitment is often undertaken at local level by the manager with no real guideline and closer to a processual approach described by Watson [...]

[...] Siemens HRM Performance The Performance of the department is improving by an increase of competiveness mostly influenced by financial and employee performance considerations. Due to the cost leadership strategy and high involvement of the employee in the performance results different models are in competition (not especially in opposition if well managed). The Hard HR model with the purpose of reaching the optimal labor efficiency: Employees are viewed as a passive resource to be managed and controlled. The driver is financial with the aim to minimize the cost everywhere like low wages, tighter training approval, number of staff etc. [...]

[...] This is done during the staff dialogue and Siemens is then using a management by objectives technique using a 2-ways process by opposition with down” of the targets are related to their superior's unit level performance and the balance linked to their own unit level performance. Different drivers are considered depending on the function: Sales, Order Income, Business Volume, Gross Margin and EBIT (Sales Function). In addition, some individual targets are derived from the business strategy. Balanced Scorecard Traditional financial indicators should be complimented by further perspective: Future-oriented management system Aligning organizational and individual targets with corporate strategy Balancing long-term and short-term actions Using measures to inform employees about drivers of future business success In order to link the HRM strategy with the organizational performance, Siemens is using the so-called balanced scorecard to fulfill the requirement of the stakeholders customers (Satisfaction), employees (Growth and Development) and process requirement (Efficiency). [...]

[...] HRM systems & Organization Performances Siemens HR is following a Resource-Based Model as the staff dialogue aims to understand and analyze the distinctive competences of the workforce with the goal of developing a sustainable competitive advantage for the organization (Kamoche, 1996). Any change in the organization or the market or is handled by tailor-made training carefully analyzed by the management and HRM. In order to maintain this sustainability, Siemens HR provides value (Responsible, Excellence, Innovative) with the objectives of enhancing efficiency (financial productivity), customer attraction and retention, customer needs satisfaction (Quality, Delivery time) and HR systems and practices associated. [...]