Effectiveness of HRM Practices in Siemens AG

This report discusses the effectiveness of different HRM practices in Siemens AG, a multinational conglomerate company. It covers topics such as self-managed teams, reward management, and job design.

Human Resources

Table of Contents
INTRODUCTION...........................................................................................................................3
a) Current environment of the organisation................................................................................3
b) Purpose and functions of HRM, applicable to workforce planning and resourcing...............4
c) Pros and Cons of different approaches to recruitment...........................................................6
d) Effectiveness of different HRM practices in Siemens AG.....................................................8
e) Relations between Motivational Theory and Rewards and Series Of Job Design..................9
f) Makes recommendations for improvement...........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resources is one of the necessary concept, which lays down performance & carry
out business function in most efficient and sustainable way. A purpose of human resource is to
build process in which people or employees can work together and maintain their interest as part
of the organisation (Jennings and Stadler, 2015). Role of the HR personnel is to build lawful
regulation to build strategies to hire and recruits people in one of the suitable manner. Also, with
HR, employee relation is one of the better expectancy and goals which is judicially important for
firm to maintain its working for long. This report will be cover on “Siemens AG” is the
multinational conglomerate company headquartered in the Munich and largest industrial
manufacturing firm into Europe with offices located abroad. Organisation deals in industry,
energy, healthcare and infrastructures & cities.
Moreover, report will try to be focus on purpose & function of the human resources in
regards with workforce planning, strength and weakness of recruitment approach , effectiveness
of different HR practices, benefits of the employee's relation along with discussion over current
environment to the business (Schaufeli and Taris, 2014). Lastly, report will put down certain
recommendation in relation to a business firm.
a) Current environment of the organisation
Human resource (HR) is the essential concept depends on organisation capacity to hold
human empowerment and building effective relation with other people of the company. HR is an
internal part of the company deals with building potential of its people by use of training as well
as development to its people to give their best of the ability. Also, performance of the HR is
completely depends upon environment of a firm named as external & internal i.e., SWOT use
which also based onto the same (Bloom and et. al., 2012). Majorly, SWOT analysis is divided
into two parts: internal and external. On one hand, internal environment means strength &
weaknesses and external consists of opportunities and threats of an organisation. In regards to
Siemens AG, analysis of the SWOT is necessary aspects to judge firms ability to maintain
human relationship within Siemens AG. Furthermore, personnel of a company would try to
thinks over restructuring of their strategies and action plan to pursues decision making properly.
The Swot analysis in context of Siemens AG is as follows:
Strength Weakness

Siemens AG is globally known industrial level
of digitization, automotive and electrification
firm to serves people with greater equality &
achieving trust of the people. Also, well built
market position in Germany and global market
is comes out as strength (Wood and et, al.,
2012). Also, well skilled people with diverse
nature has proved as gain for Siemens AG to
maintain its profitability. Moreover, they have
“next47” innovative tech to support their
resources & business activity.
Siemens AG has its dependency on third party
or vendors, as because of an inefficient supply
chain & pure relationship with other support
entity for effective performance at to the major
side of the business. Siemens AG is facing
with high employee turnover, as new people is
ruling and in response, they are lesser trained.
Due to this, efficiency of the business has
slower down and decreased.
Opportunities Threats
Siemens has its strength as leadership in form
of digitisation by combining of the software,
platforms and services. Effective use of HR
such as people, manpower skills & ability can
be seen as opportunity for Siemens AG to rise
their performance and ability for longer firm
duration in its life time (Chelladurai and
Kerwin, 2017). Digitization of the HR is comes
up with new market and opportunities to led
people with optimised goals or targets.
Lack of planning and shifting of the people to
the competitors are major threats for Siemens
AG. Due to slowdown of German economy, e
business has removing manpower as due to
lack of business and revenues. Also, due to
irresponsible behaviour of an employee's, firm
is loosing its business and profitability on the
same side.
b) Purpose and functions of HRM, applicable to workforce planning and resourcing
Human resource management is refers to as an area of management deals with planning,
organising & controlling of the resources such as manpower, people, strategy, idea or action with
the purpose to accomplishes business terms or goals. This concept mainly deals with harmony &
peace into working culture or environment. Purpose of the human resource management is to
identify needs of the workforce and performs gap analysis with help of demand & supply of the
manpower. There are some basic function of the HRM such as effective recruitment or selection,

setting of the pay-roll along with building form of sustainability to firm on the proactive side of e
business operation. In context of Siemens AG, its essential to have discussion on purpose and
function of this firm to do analyse of the performance of the firm. The purpose and function in
relation to Siemens AG is as follows:
Purpose of HRM:
Build employee relation: HRM is not only deals with keep track to the people, but also
led to process for building effective relationship among different people of the organisation. In
regards to Siemens AG, employee's is central to perform and essential resource with purpose to
carry over business goals or targets along with developing HR tendency for the people. Also, the
purpose of the HRM is to maintain attitude of an employee's in positive way with purpose of
accomplishes business targets in lesser point of time (Budhwar and Debrah, 2013).
Bringing positivity among environment: Purpose of the Hrm is to build environment that
in reality suits business necessities and growth of the business. In regards to the Siemens, Hrm
department of the organisation is eligible to takes out exact decision making to build operational
efficiency of the business. Purpose is need to be plan with effectiveness and long term capability
of the firm.
Function of HRM:
Recruitment & selection: Its one of the essential function, where Hrm is authorised and
subjected to hiring of the candidates, which suits actual requirements of the given job. Initially,
HR personnel conducts initial screening of the application received, initiates verbal to select for
interview round (Alfes and et. al., 2013). In this function, HR Dept. develops and use their own
strategy, so as to carry out recruit process effectively.
Pay-roll process: This is the challenging and stress load function related to the Hrm, in
which qualified HR personnel of the Siemens is about to calculate pay-roll such as salary, wages,
incentives, other monetary compensation of their employees on basis of work done by them.
Hard and soft model of HRM:
Basis Hard HR management Soft HR management
It is the staff management system, in
which workers are mostly seen as the
resource that is need to be controlled to
achieves higher business objectives or
It is one of essential approach to HRM
that involves treating employee's as like
most necessary asset of the company.
When management uses Soft approach,

Meaning goals (Moutinho and Vargas-Sanchez,
2018). It mainly comprises of hard HR
skill such as technical, analytical etc. it
mainly treat employees simply resource
such as planning and machinery.
its view employee's as most critical
resource who keep business with long
strategy.
Focus It helps to identify workforce needs of a
business and recruit & manage as per the
accordance of organisational scenario.
It concentrates on the needs of people
such as their roles, rewards and the
motivation etc.
Objectives The main objective of hard management
is to lead soft term changes in
employee's by recruitment, hiring and
selection (Mosakowski, 2017). During
this, minimal communication is from top
level happen.
The focal objective of soft management
is to develop long term workforce along
with building two way communication
and provides performance related
rewards.
Leadership
style
When organisation is operating under
hard management, use of autocratic style
of leadership will be considers.
When company is working under soft
management skill, in that situation, use
of democratic leadership style will be
initiates to led management proactively.
With use of this analysis, its highly analysed that, purpose and function of the Hrm would
help to plan use of the workforce planning and invites resources to lead organisation to achieve
its goals or target along with ensuring long term success for the company.
c) Pros and Cons of different approaches to recruitment
Recruitment is the process of search for prospective candidate and motivating to apply
for the job to the company. The purpose of recruitment is look out for perfect candidate and
develop strategies to hire that person for the job (Marchington and et. al., 2016). Its a prior to the
selection, in which candidate is used to be selected on the basis of test, examination, assessment
etc. In the present era, role of recruitment & selection is to hire best skilled and perfect measures
in terms of skills, competence and ability to handle work based pressure. In context of the
Siemens AG, firm is well-known for its unique approach to hire and recruits such as use of

innovative tools or techniques. It is made realised that recruitment is proven as one of the
necessary approach with Siemens AG can use to pursues productive decision making.
Recruitment is comprises of internal and external method of recruitment along with putting down
emphasis on its pros and cons.
Recruitment: Recruitment is a clear process of searching for expected employees and
stirring them to employ for jobs in the organisation (Lu, Zhu and Bao, 2015). When more
individual apply for jobs then , in that situation, chances for hiring of right and better persons
exists (Definition of the Recruitment, 2018). For purpose of the Siemens AG, its necessary to
have different formulation such as internal & external method to makes sure that hiring should
be effective. Analysis over approaches to recruit are as follows:
Sources: Internal and external approach to recruitment, 2019
Internal recruitment: In this category of recruitment, company looks for filled opening
by looking onto their existing manpower with an intention to recruit well-informed candidate for
typical job role. Also, it can be regarded as promoting to senior level role on basis of its previous
work experience along with transfer, promotion and employee referrals are best mode to recruit
internally (Pollock, Jefferson and Wick, 2015). Siemens AG prefers for higher executive hiring
by looking for existing employee's of the firm who have adequate experience, familiar with
know how along with have perfect knowledge of compliance of the firm. One of the pioneer
strength is saving valuable time and money with taking hiring of the perfect employee's.
Illustration 1: Internal and external approach to recruitment

Weakness is the lack of searching of other talent than their existing manpower, which can be
good option. Its best to hire to top executive person through internal source only.
External recruitment: In this recruitment, governing body decides to recruits person
outside of an organisational premises to fill vacancy with support of fresh talent and resources.
Sources of the external recruitment such as campus placement, employment agencies, job fair,
employment portals, Walk-in, bulk hiring etc., are some necessary methods to hire more
employees for the organisation (Cascio, 2015). Siemens AG prefers to hire employees for role of
profile based on sales and business development, fresher as for human resource executive,
administration etc. Strength of the external recruitment is capability to looks for effective talents
& advised manpower after looking at the red ocean to direct for job position as per capacity of
the person. Weakness of the external recruitment is wastage of time and money along with
saying “No” to the right manpower in compromising with an actual condition of the firm.
d) Effectiveness of different HRM practices in Siemens AG
There are different HRM practices with the help of which it manage of work force is
possible. There are many workers in Siemens AG which are work in for achieving organisational
aims and objectives. So in this case, it is responsibility of managers to understand ways through
which best treatment with workers is possible (Albrecht and et.al., 2015). When workers are
satisfied then they give best services to consumers by performing business operations in better
and effective manner. Siemens AG is the organisation which deals in different sectors such as
energy, health care sector, insurance, infrastructure, etc. , so there is requirement of large number
of workers for providing better services to consumers. There are some HRM strategies which are
prevailed in Siemens AG for getting proper productivity and profitability which are discussed as
under-
Framing self managed and effective teams- Siemens AG is the organisation which deals
in different sectors such as infrastructure, manufacturing of machines, etc. so there is
requirement of different teams among them tasks and projects are divided. HR manager select
different workers having various skills and knowledge, so in this case HR manager have to frame
teams who have complete and relevant information for completed assigned task. Managers of
Siemens AG are also responsible for job designing through which workers are aware about their
job roles and commercial activities are done in effective and efficient manner.

Reward management- Reward is the best motivator for employees which assist in
making them completing task in better and effective manner. Reward is the monetary or non-
monetary benefits which are raised among people when they are working in organisation. This is
the way through which motivation level of employees can be maintained. There are two types of
reward i.e. intrinsic and extrinsic, so it is important and significant for HR managers of Siemens
AG to understand that what is the personal objective of employees while working in organisation
and accordingly plan reward policies.
Selective hiring- Hiring is the main and core activities which is performed by HR
managers of Siemens AG through which they can maintain proper working of organisation
because employees are the sources through which organisational operations are performed. There
are many individuals who applied for the vacant position in organisation. Hence in this case it is
responsibility of HR manager to use selected methods of hiring through which they can maintain
cost as well as time of hiring candidates. HR manager must use social media platform,
employment agencies, campus recruitment and select candidates as per required skills and
competencies (Practices of Human Resource Management. 2019). When there is proper and
selective hiring of candidates, then labour turnover rate is also less and it is easy to maintain
positive environment in organisation.
Training and development programme- In current era, changes are taking place with
frequent speed such as change in machinery, up- gradation of software, etc. so in this there is
requirement of training program to workers through which they can work with new technique.
Training requires time and cost and there are different methods of learning, so it is responsibility
of managers to analyse which method is best out of it. While planning for training method, it
must be communicated to workers through which it is easy to analyse that with which method
employees are satisfied and comfortable.
Fair and performance based compensation- Compensation is the monetary fund which
is provided to employees in lieu of their working towards organisation. This compensation is
fixed under law which has to be considered to avoid government and legal party interferences. It
is responsibility of HR manager to disclose remuneration properly with the help of which
employees are satisfied in performing their job roles (Bratton, 2017). It is essential and
significant for HR manager of Siemens AG through which they can perform actions in better
and effective manner.

From the above discussion, it is clear that HR manager of Siemens AG has to perform
activities in appropriate manner through which they can maintain positive culture and
environment in organisation. There is requirement of proper communication techniques through
which it is easy to communicate important and crucial information among workers. So this
reduces possibilities of mis-communication among employees, so errors in operations are also
negligible.
e) Relations between Motivational Theory and Rewards and Series Of Job Design
Herzberg's Motivational theory is also known as two factor theory because there are two
factors which has to be considered for motivating workers. Two factors are – motivators and
hygiene factors (Gold, 2017). There is requirement of proper motivation to workers to get best
performance from team mates.
Motivating factors- It is the one factor of this theory which indicates that during the time
of working in the company employees required motivation so that they can perform their
responsibility in effective manner. The components which provide motivation to the employees
are motivational sessions, vision of the task and other. In this factor, there is motivation among
workers to perform actions in better and effective manner. When employees are able to maintain
bridge between personal and organisational objectives, so they are motivated and it assist in
maintain long term relations with workers of Siemens AG (Herzberg’s Motivation Theory.
2019).
Hygiene factors- It is another factor of this theory which indicates those components that
encourage and motivate the employees till a limited time period or it is entail to present that
component so that workforce can feel motivated. These factors are salery, training and
development, incentives, bonus, vacations and others. While in this factor, hygiene factor is
discussed. If there is unhygienic conditions in organisation, then employees of Siemens AG does
not work in effective and efficient manner. This factor is not present in job role but at surrounded
environment.
Hence it is clear that motivational theory, there is proper reward to workers through
which they are motivated and perform actions in better and effective manner. There is equal
weight-age of surrounding as well. When surroundings are good at Siemens AG, this makes it
easy for workers to work if there is change in their job roles (Brewster, 2017). There is
requirement of proper hygiene through which employees are satisfied and it is easy for HR

manager as well to design job properly. Job design can be done through job design, enrichment,
work simplification and job enlargement. With the help of job rotation, it is easy for workers to
understand about activities of different job roles. This also assist in maintaining work
simplification and it gives positive impact on performance of a Siemens AG. So it is clear that
reward system, motivational theory and job design are inter related with each other.
f) Makes recommendations for improvement
Out of all analysis, it is recommendable that, Siemens AG should start focusing on high
efficient recruitment system along with giving importance to internal & external approaches to
the recruitment to hire best skilled people within an organisation. For filling top role, internal
recruitment is the best option and fills last vacant by external sources of recruitment to fill hiring
chain in best manner. Firm is currently operating at the productive manner, but there has long
terms support of the HR functioning such as recruitment & training and development to be very
efficient to accomplishes decided goals or targets in lesser point of time. With better training and
development, firm can achieves its strategic objectives or targets into lesser time.
Motivation is also another common factor which helps the person to build its confidence
and motivational factor such as basic necessities needs or wants. With use of motivation, firm
can build its employee's confidence and direct it to the organisational objectives or targets. Also,
its essential to build kind of inspiration for the people to development of rewards and offers it to
employee's, so that Siemens AG would achieves strategic position in the market.

CONCLUSION
Out of this report, its concluded that an importance of HRM for success and growth of an
organisation is arrives as the necessary concept. In this manager also help in regulating own task
based activities at the place to aim for attaining all the desired targets and objectives. Along with
this, HRM function and its purpose is also benefited for the company to accomplishing their set
target. Different recruitment and selection method is helpful to hire best candidate at workplace
so that they perform their best to enhance positive performance. Furthermore, employee relation
is also important for company to build positive work environment in which organization make
their performance more competitive. All these are directly contribute in making workers and
company productive at the market place.

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