Essay: Impact of Corporate Culture & Motivation on Employee Performance at Siemens

Introduction

Siemens is a multinational conglomerate providing products and services in engineering, healthcare, and finance. Their offerings range from modern pedestrian crosswalks to financial services across various business sectors. Siemens employs around 14,000 people in the UK, including approximately 5,000 in the manufacturing sector. The company reported total revenues of £3.36 billion in 2015 (Siemens.co.uk, 07/04/2016).

Key Financial Figures

Year	Turnover (£bn)	Employees
2011	4.37	12,972
2012	3.21	13,520
2013	3.36	13,760
2014	5.00	14,000

Question 1: Organizational Culture

How does Siemens’ corporate culture contribute to its business success and employee satisfaction?

The culture of an organization comprises the values and beliefs that shape its unique psychological and social environment. It includes the organization’s values, philosophy, experiences, assumptions, self-concept, internal activities, and interactions with the external environment. Organizational culture is built on mutual values, beliefs, habits, rules, and practices established over time and deemed appropriate for the company.

Corporate culture manifests in various activities within the company, such as:

1. The organization’s approach to business, management, and treatment of employees, customers, suppliers, and the broader community.
2. The opportunities provided for decision-making, idea generation, and individual expression.
3. The dissemination of power and information throughout the company’s hierarchy.
4. The proper execution of activities and duties towards collective goals.

Corporate culture influences a company’s efficiency, performance, customer care, product quality, employee attendance, and punctuality. A strong culture is essential for implementing any business strategy effectively.

In Siemens, the culture is akin to an ownership culture, inspiring individuals to contribute to the company’s long-term goals. The company is guided by generations of owners passionate about its success, recognizing every employee’s contribution. Siemens’ ownership culture principles include:

• Business Success Assurance: Managers should exemplify the company’s strategic direction and ensure sustainable and effective resource usage, motivating and empowering teams to excel.
• Behavior as the Foundation: Entrepreneurial behavior is the standard for Siemens employees, driving continuous improvement.
• People-Oriented Approach: Siemens values and supports diverse knowledge and experience, enhancing performance.
• Values-Based Culture: Accountability, excellence, and creativity are the core values driving Siemens’ ownership culture.
• Employee Shareholders: Employees who own shares act responsibly and are committed to long-term goals, with around 140,000 employee shareholders contributing to the company’s success.

Siemens offers professional opportunities for undergraduates and graduates, fostering an open culture that encourages innovation and involvement at all levels. The company’s engineering focus requires continuous evolution in products and processes, demanding creativity and team collaboration.

Question 2: Employee Motivation

What are the key factors that motivate employees at Siemens, and how do these factors align with established motivational theories?

Motivation is the internal drive that stimulates individuals to behave in specific ways. Well-motivated employees are fulfilled with their work and workplace, leading to higher productivity and quality of services and goods. This case study explores how Siemens motivates employees in a dynamic environment.

Employees are influenced by various factors beyond basic needs such as food, clothing, and shelter. At Siemens, employees value creativity and the ability to impact their work. Factors that motivate individuals include:

• Creative Environment: Siemens fosters a culture that encourages ingenuity and creativity, allowing employees to think independently and contribute to process improvements.
• Supportive Structure: The company’s structure enables employees to enhance their work methods, providing learning opportunities and advancement prospects.

Rather than directly motivating employees, managers at Siemens create situations that compel individuals to respond positively. The company’s approach aligns with Frederick Herzberg’s Two-Factor Theory, distinguishing between hygiene factors (salary, job security) and motivators (recognition, responsibility). Siemens’ emphasis on creativity and autonomy addresses both hygiene factors and motivators.

Question 3: Maslow’s Hierarchy of Needs

How does Maslow’s Hierarchy of Needs apply to the workplace environment at Siemens, and in what ways does the company help employees achieve higher-level needs?

Maslow’s hierarchy of needs, often depicted as a pyramid, prioritizes human needs from basic physiological necessities to self-actualization. Maslow proposed that individuals must satisfy lower-level needs before pursuing higher-level needs. The five levels are:

1. Physiological Needs: Basic survival needs such as air, water, and food.
2. Safety Needs: Security, including economic and physical safety.
3. Social Needs: Interpersonal relationships, including friendship, family, and belonging.
4. Esteem Needs: Respect from others and self-respect.
5. Self-Actualization: Realizing one’s potential and maximizing personal growth.

Maslow’s theory suggests that unmet basic needs hinder the pursuit of higher-level goals. At Siemens, the company supports employees in achieving higher-level needs, crucial for creative roles like engineering. Esteem needs are met through recognition and respect, while self-actualization is fostered by engaging employees in responsible and innovative work.

Question 4: Individual Variations in Needs

How do individual differences and cultural backgrounds impact the application of Maslow’s Hierarchy of Needs at Siemens?

People do not necessarily progress through Maslow’s hierarchy in a structured manner. Different individuals, influenced by cultural backgrounds and personal circumstances, may prioritize needs differently. This perspective aligns with Clayton Alderfer’s ERG Theory, which condenses Maslow’s hierarchy into three categories: Existence, Relatedness, and Growth. ERG Theory suggests that individuals can be motivated by needs at multiple levels simultaneously, and frustration in meeting higher-level needs can regress to lower-level needs.

Geert Hofstede’s cultural dimensions theory also highlights how cultural variations impact the hierarchy of needs. For instance, collectivist cultures may prioritize social needs over self-actualization, while individualist cultures may emphasize personal achievement and esteem.

Conclusion

Siemens’ corporate culture and motivational strategies are deeply intertwined with various academic theories. By fostering an ownership culture and supporting employees’ creative and professional growth, Siemens addresses both basic and higher-level needs as outlined by Maslow, Herzberg, Alderfer, and Hofstede. Understanding these theories provides valuable insights into effectively managing and motivating employees, ensuring long-term success for the company.