Human Resource Management

Case -1 Siemens builds strategy oriented HR system

Siemens is a 150-year-old German company, but its not the company it was even a few years ago. Until recently, Siemens focused on producing electrical products. Today the firm has diversified into software, engineering and services . it is also global , with more than 4000000 employees working in 190 countries . in other words Siemens became a world leader by pursuing a corporate strategy that emphasized diversifying into hightech products and services, and doing so on a global basis. With a corporate strategy like that, human resources management plays a big role at Siemens. Sophisticated engineering and services require more focus on employee selection, training and compensation than in the average firm , and globalization requires delivering these services globally. Siemens sums up the basic themes of its HR strategy in several points. These include: 1. A living company is a learning company . The high-tech nature of siemens business means that employees must be able to learn on a continuing basis. Hands on apprenticeship training around the word to help facilities this. It also offers employees extensive continuing education and management development 2. Global teamwork is the key to developing and using all the potential of the firms human resources. Because it is so important for employees throughout Siemens to feel free to work together and interact, employees have to understand the whole process, not just bits and pieces. To support this, Siemens provides extensive training and development . it also ensures that all employees feel they are part of a strong , unifying corporate identify. For example HR uses cross-border, cross-cultural experiences as prerequisites for career advances . 3. A climate of mutual respect is the basis of all relationship- within the company and with society. Siemens contends that the wealth of nationalities , cultures, languages and outlook represented by its employees is one of its most valuable assets. It therefore engages in numerous HR activities aimed at building openness , transparency , and fairness, and supporting diversity.

S.R.Luthra Institute of Management

Page 1

Human Resource Management

Questions:1. Based on the information in this case, provide examples for Siemens of at least four strategically required organizational outcomes and four required workforce competencies and behaviors. Ans: Strategically required organizational outcomes would be the following: 1) An employee selection and compensation system that attracts and retains the human talent necessary to support global diversification into high-tech products and services; 2) A learning company in which employees are able to learn on a continuing basis; 3) A culture of global teamwork which will develop and use all the potential of the firms human resources; 4) A climate of mutual respect in a global organization. Workforce competencies and behaviors could include: 1) openness to learning; 2) teamwork skills; 3) crosscultural experience; 4) openness, respect, and appreciation for workforce diversity.

2. Identify at least four of the strategically relevant HR system policies and activites that Siemens has instituted in order to help HR contribute to achieving Siemens strategic goals. Ans: 1) Training and development activities to support continuous learning through a system of combined classroom and hands-on apprenticeship training to support technical learning; 2) Continuing education and management development to develop skills necessary for global teamwork and appreciation for cultural diversity; 3) Enhanced internal selection process which includes pre-requisites of crossborder and cross-cultural experiences for career advancement; 4) Organizational development activities aimed at building openness, transparency, fairness, and diversity support.

S.R.Luthra Institute of Management

Page 2

Human Resource Management

3. Provide a brief illustrative strategy map for Siemens. Ans: Student answers will vary but the strategy map should answer the following questions: 1) What overall goals does Siemens want to achieve? 2) What must Siemens do operationally to achieve its goals? and 3) What employee attitudes and behaviors will produce these operational outcomes?

S.R.Luthra Institute of Management

Page 3

Human Resource Management

Case -2 The carter cleaning company The high performance work system quality
As a recent graduate and as a person who keeps up with the business press, Jennifer is familiar with the benifits of programs such as total quality management and high performance work systems. Jack has actually installed a total quality program of sorts at carter, and it has been in place for about 5 years this program takes the form of employ meeting. Jack holds employee meetings periodically, but particularly when there is a serious problem in store such as poor quality work or machine breakdowns. When problems like these arise, instead of trying diagnose them himself or with Jennifer, he contacts all the employees in that store and meets with them as soon as the store closes. Hourly employees get extra pay for this meetings. The meetings have been useful helping jack to identify and rectify several problems. For example: in one store all the fine white blouses were coming outlooking dingy. It turned out that the cleaners-spotter had been ignoring the company rule that required cleaning the perchloroethylene cleaning fluid before washing items like these. As a result, these fine white blouses were being washed in cleaning fluid that had residue from other, earlier washes. Jennifer now wonders whether these employee meetings should be expanded to give the employees and even bigger role in managing the carters stores quality. we c ant be everywhere watching everything all the time, she said to her father . yes, but this people only earn about $8 to $15 per hour. Will they really want to act like mini managers? he replied.

S.R.Luthra Institute of Management

Page 4

Human Resource Management

Questions:1. Would you recommend that the Carters expand their quality program? If so, specifically what form should it take? Ans: Most students will agree that there are opportunities to expand the quality program. The employee meeting approach is a good start in terms of utilizing high-involvement organizational practices. There are opportunities to maximize the overall quality of their human capital. For example, training seems to be an obvious area to improve in terms of educating and building awareness about basic standards and procedures. 2. Assume the Carters want to institute a high performance work system as a test program in one of their stores. Write a one-page outline summarizing important HR practices you think they should focus on. Ans: Students should include some of the following ideas in their outline: The types of HR practices they would implement to improve quality, productivity, financial performance; methods for job enrichment; strategies for implementing and leveraging a team-based organization; ways to implement and facilitate high commitment work practices; employee development and skill building activities to foster increased competency and capability in the workforce; a compensation program which provides incentives (for example, profit sharing, pay for performance) for achieving major goals and financial targets.

S.R.Luthra Institute of Management

Page 5