Table of Contents:
Table of Contents: 1
Performance Management at Siemens 2
Introduction: 2
Analysis of Siemens current situation: 3
Task 1 4
Setting Performance Targets of Team to Meet Strategic Objectives 4 1.1 Evaluating Tools and Techniques Available To Set Team , Performance Targets: 4
1.2 Assessing the value of team performance tools to measure future , team performance: 5 1.3 Assessing the Link between Team Performance and Strategic Objectives: 6
Task 2 6
Agreeing team performance targets to contribute in meeting strategic objectives 6
2.1Need to encourage individual commitment to team performance in achieving organisational objectives: 6
2.2 Evaluating team performance plan evaluation in meeting organisational objectives: 8
2.3 Relating the application of delegation, mentoring and coaching to the achievement of the organisational objectives: 8
2.4 Required performance targets within teams against current performance: 9
Task 3 9
Monitoring actions and activities defined to improve team performance 9
3.1 Evaluation of team performance against agreed objectives of the plan: 9
3.2 Evaluating the impact of team performance in contributing to meeting strategic objectives: 10
3.3 Assessing the process for monitoring team performance and initiating changes: 11
Task 4 12
Contribution of influence and persuasion to team dynamics 12
4.1 Impact of individual dynamics, interests and organisational politics on securing commitment to action: 12
4.2 Influencing and persuading methodologies to gain commitment of individuals to a course of action: 14
References: 16

Performance Management at Siemens

Introduction:

This assignment is about strategic performance management. It contains a detailed study of Siemens. It is divided into four main tasks.
Details of tasks are as follows,
Task 1: it is about assessing the ability of setting performance targets of teams in order to meet strategic objectives.
Task 2: it is about assessing the understanding that team performance targets contribute in meeting strategic objectives
Task 3: it is about being able to monitor actions and activities required to improve team performance.
Task 4: it is about being able to apply influencing and persuading skills, to the dynamics and politics of personal interactions.

Analysis of Siemens current situation:
Siemens employees 21000 people in the UK. It considers its employees as the greatest assets. It encourages its employees with management skills to take part in its management training programs.
Siemens is doing a great job in these 3 sectors
1.energy sector
2.Health care sector.
3.Health care sector.
Siemens is striving hard to provide best services to its customers. It is working on its ‘think customer programme.

Task 1
Setting Performance Targets of Team to Meet Strategic Objectives
1.1 Evaluating Tools and Techniques Available To Set Team Performance Targets:
Different organisations use different methods and techniques to set their team performance targets. Organisation under discussion is Siemens, so I will evaluate the tool that Siemens uses to set its team performance targets. Siemens believes that excellence is the combination of high ethics and high performance.fit4 2010 model has four areas or dimensions, People excellence, corporate responsibility, portfolio and operational excellence. Portfolio strategy of fit 4 is aimed at gaining first or second positions in highly competitive and growing markets.
People excellence, for Siemens is both a goal and a reality. It takes it as a goal because it believes in ongoing development of staff in order to cope with external changes of economic, political, cultural and social environment in which it operates. It takes people excellence as a reality because it has a pool of highly qualified and experienced individuals from around the world.
Siemens believes in operational excellence. To achieve this purpose, it sets technology trends, uses its power of innovation, and keeps its cost structure efficient. Lastly, Siemens believes that it is responsible to the society for its activities. It believes in sustainable global environment. Siemens sets its team performance targets on the basis of its four main areas discussed above. Teams are required to adhere to these main objectives. Performance of team is assessed on the basis of achievements of these targets.
The advantage of this assessment method is that the goals are clearly set on the basis of which assessment will be made. Moreover, team is assessed from four different dimensions discussed above. But it also has a drawback. Only four dimensions are not sufficient to assess any team.

1.2 Assessing the value of team performance tools to measure future team performance:
Team performance tools are very important for the organisation. This is because the results obtained from assessment provides the organisation with valuable information and guides about the deficiencies and drawbacks of the team. This data can be used for setting future team performances. It can guide the team where they are lacking to show better and improved results in future.

1.3 Assessing the Link between Team Performance and Strategic Objectives:
Siemens strategic objectives are satisfying its customers, innovation, sustainability, competition with competitors and facing the challenges. These strategic objectives can be easily met by building a strong team, managing the performance of the team, monitoring the team. Siemens has developed good processes for managing its team and developing its employees, so that all should work together to achieve the strategic objectives of the organisation.
There is a direct link between team performance and strategic objectives. In order to meet the strategic objectives, it is necessary that the team should perform well. The team should work together to meet the objectives

Task 2
Agreeing team performance targets to contribute in meeting strategic objectives
2.1Need to encourage individual commitment to team performance in achieving organisational objectives:
It is very necessary to encourage teams and their performance in order to achieve organisational objectives. Encouragement increases morals of team members. They feel their efforts are appreciated. This motivates the team members and they become more committed. If teams are not encouraged, their staff gets de motivate they do not remain focussed and committed. Different organisations use different ways to encourage their team members. Some organisations announce employee of the month, rewards are given, increase in salary or bonus is given, etc.
Siemens also knows the value of encouraging its team members. it uses mix of techniques for this purpose. Hob enrichment is one technique that it uses. It is basically vertical enlargement of job. Employee is given challenging tasks of some senior level. His skills are utilised. It gives him the opportunity of promotions. Another method that Siemens uses is job enlargement or in other words horizontal enlargement. This method increases number of tasks given to employee. His challenges remain the same.
Other encouraging techniques that Siemens uses are: * Matching talents with tasks * Appreciation * Promotions * Setting objectives * Enabling forthright discussion * Everyone has the opportunity to utilize their full potential * High salary * Creating dialogue between each team member and his manager * A simple pat, letter or mentioning in meeting * Motivation

The individual commitment by above mentioned ways increases motivation. The members feel satisfied and so more committed to their team. It leads to Siemens success.

2.2 Evaluating team performance plan evaluation in meeting organisational objectives:
Siemens believes in developing a high performance team. It gives clear goals to its team members. All are then required to work together to achieve shared goals.
It makes its team performance efficient by matching talent with the tasks. Individual’s abilities are judged and the tasks are then assigned to them on the basis of those abilities and skills. This is a successful way of meeting organisational objectives in efficient way. It helps the organisation to gain competitive advantage. It makes the best use of potentials of its members. This talent management technique of Siemens gives it the benefits of both job enrichment and job enlargement.

2.3 Relating the application of delegation, mentoring and coaching to the achievement of the organisational objectives:

Delegation means assigning the tasks to a junior. Delegation is done by a senior member. He allows the junior to do some task of senior level. The junior remains accountable to the senior for the task he performs. Senior keeps control over the activities of the junior.
Delegation can help in achievement of organisation objectives. It has many benefits. Firstly it gives the junior a sense or realisation. He feels that he is trusted for that work. It motivates him and he becomes more committed towards achieving objectives. Moreover, in busy days manager may find it hard to complete all the tasks. So he can delegate some of his work to achieve organisations objectives timely.
Mentoring is a personal development method. It is basically a relation between two people, mentor and mentee. Mentor is one who provides services and mentee is a person who learns from mentor. Mentor is a guide for mentee. Mentor guides mentee in carrier issues, personal development or in choosing right directions. It is a type of training. Mentor is mostly an older colleague or a senior. It is long term relationship.
Coaching is somewhat similar to mentoring with a few differences. It is short term. It mainly deals with the issues at work, mostly development issues. In short coaching is specific unlike mentoring that takes a broader view. Both these processes provide guidance, and are motivational techniques. A motivated individual always remains focussed and concentrate on organisational objectives.
2.4 Required performance targets within teams against current performance:
Every team is given performance targets. When team starts working, it tries to achieve those performance targets. This is called the current performance of team. This current performance many not be fully according to the targets set for that team. It is also possible that the organisation decides better performance targets for the team for future. This usually happens after the organisation makes a detailed analysis and judgement of the team current performances. It highlights the gaps which are needed to b filled. The areas where the team needs further improvement. On the basis of those gaols identified, new performance targets are set. Current performance is assessed by comparing it with the required performance targets. Required performance targets of Siemens are to remain committed to the team as well as the organisation. It requires the team members to remain accountable for their works that they perform and the results they obtain. Current performance of Siemens is that the team is very clear about its goals and objectives. They are accountable to their seniors. They all are committed to the organisation. They all have one common aim of achieving organisational targets.

Task 3
Monitoring actions and activities defined to improve team performance
3.1 Evaluation of team performance against agreed objectives of the plan:
Agreed objectives of Siemens are to keep making new innovative products, to grow in technology market, to remain sustainable, provide customer with best services. All these objectives are made clear to Siemens employees. Employees are provided with manager’s guidance in case of any confusion. After the team starts working, its performance is monitors and appraisals are carried out. Evaluation of team performance against agreed objectives is as under: Siemens teams perform well and show good results. This is evident from the overall success of Siemens. Today it has excelled in many areas and is growing further. It manages its team performance in best way and in return it gets best results from its team.
3.2 Evaluating the impact of team performance in contributing to meeting strategic objectives:
Team Performance plays a major role in enhancing the performance of organisation. The impact of team performance in meeting strategic objectives is as under:

* It enhances the relationship between line managers and the individuals. It also encourages the line managers to build and maintain a positive relation with all the employees. The relation should be based on mutual understanding, trust and empowerment. * Team performance ensures that all employees are well aware of the organisational goals and their contributions in achieving those goals and objectives. * It ensures that every individual in the organisation understands their roles, responsibilities and what is expected from them, the level of skills required from them. * Team performance ensures that the communication within the organisation is effective and is relevant to the organisational objectives. * In order to make team performances successful, few things should be clear. E.g. all should be clear about what is meant by team performance, Understanding the organisation thoroughly, and its needs and how they can be met via team performance.

3.3 Assessing the process for monitoring team performance and initiating changes:
Siemens monitors its team performance via performance management process. This process considers the objectives of individuals as well as the strategies of whole organisation. It creates a link between them. Individual’s targets are set on the basis of their abilities. This process then monitors that the individuals are working in line with the organisations objectives.
Performance management process follows the following steps: * Firstly objectives are set. * Secondly the progress is monitored. * Ongoing dialogue is created between the employee and his/her line manager. * Lastly results are established.
This process has many plus points. It helps in the staff development, increases staff motivation, creates a link between employees and their seniors; it rewards the employees when they produce good results. This process generates records of employee’s performance that can be used in future; it also helps to identify poor performers.
This process also has few drawbacks. Firstly it is a very time consuming work. As it takes a lot of managers time in assessing the individuals. It can even divert the attention of managers from important works to noncore activities. Moreover when the weak employees are told about their weaknesses, they might get more discouraged and de motivate. At times a poor report of employee is prepared even when the employee in not a poor performer. This happens because it is a method depending upon managers. The decisions might become biased and unfair. This process should be applied when the organisation have time to spend on it. In critical days, when other important works demand attention, this process should be avoided because it can be a waste of time for the organisation.

Task 4
Contribution of influence and persuasion to team dynamics
4.1 Impact of individual dynamics, interests and organisational politics on securing commitment to action:
Peter Löscher, President and CEO of Siemens AG is an Austrian manager and former President, Global Human Health at global pharmaceutical company Merck & Co. He became Chief Executive Officer (CEO) of Siemens AG on May 20, 2007 as the successor of Klaus Kleinfeld. He took on this new position on July 1, 2007. He was considered as the top officer in the history of last 160 years. He was hired from outside the Siemens organisation. From 1988 until 2000 he worked for the German pharmaceutical company Hoechst in Spain, Japan, Great Britain and the United States. After Hoechst merged with Rhone-Poulenc he stayed at Aventis until 2002. He then joined Amersham, which was taken over by General Electric. In 2006 he became a member of the executive board of the US pharmaceutical company Merck.
Siemens discussed about its reorganizational activities of the future and the structural arrangements with its Central Works Council and the IG Metal union in Germany. According to Peter loscher Siemens is a responsible employer.
For Siemens, all the employees matter a lot. They all are important to the company. Siemens is now renewing its previous accord because of its new agreement related to employment and securing locations. Its previous accord was signed in July 2008. Siemens is extending its principles to the entire company. The new agreement will also apply to Siemens’ subsidiaries of Germany.
In the future, Siemens will continue to act responsibly when taking structural measures to maintain its long-term competitiveness and will continue to implement these measures in dialogue with its employee representatives. The company will also honour its commitment to implementing workforce adjustments, wherever possible, without layoffs due to operational requirements. As in the past, Siemens will use every possible means to achieve this aim, including shifting personnel between locations and setting up short-time work programs. The new location and employment agreement does not apply to Siemens IT Solutions and Services (SIS) GmbH, since the securing of locations and employment is covered by the provisions of an SIS-specific collective bargaining agreement.
During the crisis, Germany’s short-term work program performed its bridging function impressively. Siemens’ workforce has been stable since the end of fiscal 2007. In the fall of 2007 – at the beginning of the recent crisis – the company had about 126,000 employees in Germany. According to the latest figures, it now has 128,000. In 2009 – in the middle of the crisis – Siemens added 6,200 new employees in Germany alone. Due to favourable economic developments, the company terminated its short-term work program on July 31, 2010. Job centre plus has accredited the Traffic Solutions business within Siemens Mobility with its Two Ticks award. In order to achieve this, Traffic Solutions has made five commitments regarding recruitment, training, retention, consultation and disability awareness. These commitments are:
Siemens Mobility has signed up to the UKRC (UK Resource Centre for Women in Science, Engineering and Technology) CEO Charter which establishes the business’ commitments to women’s recruitment, retention and development, The UKRC facilitated focus groups that looked at women’s perceptions and experiences of working within the organisation. Recommendations were made and actions for the future have now been agreed with the participants. Traffic Solutions which is part of the Mobility Division is the only private business local to our Poole headquarters to be accredited with Job Centre Plus’ Two Ticks Symbol. The rest of the Division is currently applying for this accreditation and expecting to be awarded with this shortly.
Siemens is against discrimination. Siemens is trying hard and is fully committed to provide discrimination free workplace to everyone. The purpose is that everyone should be able of utilizing its potentials to the fullest. Siemens ensure that all the people who are disabled may also be able to contribute fully. Siemens, in order to ensure its aim is putting variety of measures in place. Siemens allows applications from disabled people. It also makes sure that no applicant is rejected on the basis of his disability. The Siemens policies mean that any disabled employees are treated fairly and where appropriate, full support is available.
Another improvement was made relating to disability issues. A disability tool box talk was given to all staff members that highlighted disability issues and provide information to employees on support available and useful contacts. Diversity is a new issue. Staffs were needed to understand diversity issues, especially experiences of the employees relating to diversity matters. For this purpose of better understanding, a diversity climate survey was carried out. A working group was established and following review of the findings a number of activities have taken place or are planned. Working with an external organization, a review of Traffic Solutions’ recruitment process was carried out. The process was found to b good and effective, still few more recommendations were made to improve it further. Recommendations mainly related for the developments. Improvements are now being made to ensure that the companies’ recruitment system is more fair and transparent.
Siemens UK and few other companies has started investigating flexible working procedures. The aim is to collect information for best practice. This will help the employees in future by providing them with greater flexibility.

4.2 Influencing and persuading methodologies to gain commitment of individuals to a course of action:
One if the main method of gaining individuals commitment in work is motivation. Motivation helps to achieve goals and targets. It is a driving force. An employee can be motivated in many ways. E.g. rewarding the employee, announcing bonus, promotions etc. Siemens gives challenging tasks to its employees who motivate them and keep them committed.
Commitment can be achieved by keeping the employees satisfied. Their problems should be discussed with them. Actions should be taken to resolve their problems.
Good leaders can keep the employees committed. Leaders can use their abilities to keep their employees satisfied and focussed on their jobs.
Maslow gave a theory of gaining commitment. He divided needs into five levels. According to him the needs should be satisfied in order to keep the staff committed. His model is called as hierarchy of needs.
Taylor also gave a theory of gaining commitment from employees. According him, when big tasks are divided into smaller and easier tasks, it becomes easy for the employee to do those tasks. It therefore increases their morale and commitment. This is called as scientific management technique.
Herzberg also suggested two factor theories. The two factors are motivational factors and hygiene factors. Responsibility, Status, Advancement and Recognition are motivational factors. If they are satisfied, they keep the employee committed. Pay and working conditions on the other hand are hygiene factors. If they neither are satisfied, they de motivate the employee. Hertzberg and Maslow theories are more relevant to Siemens.

References:

1. Bernard Marr. (2008) managing and delivering performance. Kindle edition.oxford,uk.elsevier Ltd 2. Dodd Starbird and Roland Cavanagh.(2011).building engaged team performance. First edition. United States of America. Implementation partners LLC 3. Sean Chapple.(2010).leading high performance teams. first edition.uk.lulu.com 4. Abraham H maslow.hirarchy of needs, a theory of human motivation.(1943). Kindle edition. United States of America.