Organizational Behavior

2016

Submitted By: Fahmid Anam Chowdhury

Siemens
London School of Commerce
Page Table of Contents
No.

2 Executive Summary

3 Introduction

4 (1.0) The impact of culture on Siemens

structure

7 (2.0) Factors that Motivate an Individual

10 (3.0) Ways in which Siemens motivate its

employees

14 (4.0) A critical evaluation of Herzberg’s two

factor theory

16 Conclusion

17 Reference

Page | 1
 Executive Summary

The main purpose of this report is to solve the questions

of the given case Siemens. All the information that are
included in the report are taken from various sources.
The first part of the report contains a brief overview on
Siemens. Second part is based on organizational
structure and culture, along with the fact whether that
culture has been developed in Siemens or is the culture
the determinate of the structure. The third part defines
Alderfer’s motivational issues and relates it in terms of
the case. Fourth part contains the comparison between
Abraham Maslow content theory and Porter Lawler’s
process theory and Siemense’s ways of motivating
employees. The last part describes Harzberg’s two factor
theory and determines its effectiveness. The overall
report is based on the questions given in the case.

Page | 2
 Introduction

Siemens PLC was established in UK over 170 years ago.

Since 1843, Siemens has been performing in United
Kingdom and operates more than 19,000 employees.
Siemens is an engineering company that provides
product and services to people all over the world.
Siemens is a worldwide force that targets mainly on the
field of electrification, automation and digitalization. They
are the dominant supplier for power generator,
transmission, medical diagnosis also they are the global
manufacturer of energy-economical and material-saving
technology. Siemens plays an important role in industry
solutions and in infrastructure. They have around 351,000
workers in more than 150 countries and originated sales
of €79.6 billion in the year 2016.

The list of products that Siemens designs and

manufactures include traffic lights, gas turbines, wind
generators as well as household appliances like
refrigerator. The organisation originates around 40% of
the UK’s wind power it also maintains and braces the

Page | 3
BBC’s official webpage and they are also related to the
development of the BBC iPlayer.
(1.0) The impact of culture on Siemens
structure

Organisational structure is the internal framework of a

business that shows the path in which management is
organized and describes the way an organisation is
separated into departments with different levels of
authority. Departments work together in order
accomplish a common goal for the organization. It
promotes departmentalization and division of labor.

Organisations have mainly two kind of structures,

hierarchical structures and matrix structures.
Orgaisations with hierarchical structures are often large
organisations and they consist of different levels of
authority which is known as vertical differentiation. In
hierarchical structure the decisions are made by the top
of the managers therefore communication among the
employees are very poor due to the employees are not
involved in the decision making. In this case employees
are always demotivated because their innovative ideas
are not considered by the top of the managers. For
example, hierarchical structure can be related with the
Autocratic leadership because autocratic leaders take
decisions by themselves without consulting with the
employees and not involving them in the decision
making. Leaders set objectives by themselves, so

Page | 4
employees are so dependent on this leadership that they
will not show any initiative to share their ideas. This
leadership makes the employees demotivated and in the
end they quit the job. This leadership is only appropriate
for the armies and the police job because for immediate
response orders are needed to be issued.

Organisations with matrix structure brings organizers and

workers together from various sector to achieve a
common motive. Matrix structure is commonly used in
organisations who deals with bigger projects where
economies of scale is needed for the use of internal
resources. They mainly focus in divisional and functional
structures. The former divides the departments within a
company according to the performance of the function
and the latter divides them according to the products and
customer location. Some pros of matrix structure is that it
allows proper communication between the members of
the team and ignores all the traditional boundaries
between the departments where only senior managers
are allowed to talk to each other. This structure helps to
focus on the big project rather than focusing on what is
good for the department. The structure is mainly used so
that people with innovative ideas from different
departments can create solutions by which the company
will be beneficial. Some cons of matrix structure is that
team members may have two leaders which will cause
conflicts in their interests. Less control from the top
managers to complete the project. For instance, Siemens
is an engineering company that supports matrix structure
which is also related to democratic leadership because

Page | 5
there is a continuous process of development for new and
better quality products so for this reason teamwork is
needed to collect innovative ideas as much as possible
from the employees. Their motive is to motivate their
employees so that they feel equally important and put
more dedication in their work.

Organisational culture is related to behaviors,

experiences and values that expresses itself outside by
holding an organization together. The culture is based on
a strong influence inside the organisations people that
shows how they act and perform in their jobs. Most of the
organistaion maintains a unique culture that sets
boundaries and guidelines for the members inside the
organization premises. The way an organization
maintains its business, treats their staffs is also an
organization culture.
Organisational culture is divided into two cultures they
are collaborative culture and controlled culture.
Collaborative culture operates with group work due to
organisation wants customer relief. Working under in this
type of culture provides shares to staffs, they have the
freedom to make their own decisions that will affect the
expansion of the company positively. Managers who run
this type of culture is supposed to be trust worthy, liberal,
motivating, inspiring and committed. This type of culture
promotes high productivity rate among the workers for
the organisation.
On the contrary, controlled culture is based on the
objectives and vivid goals. Hierarchical organisations are

Page | 6
mostly used in this type of culture. Without been
reviewed by the management, the controlled culture
makes employees feel un-empowered to make decisions
in the work place premises and also individual skills are
required in this type of culture.
An organisation will perform highly if the culture is
acceptable to the employees. The employees will be
motivated which in turn will increase their productivity
and efficiency. The organisation will have a better
performance and productivity if the organisational culture
is innovative and the employees are trying to develop.
The organisation will suffer a low productivity if the
culture is not acceptable by the employees.

Orgnisational structure and culture frequently changes

the identification of an employee either positively or
negatively. It mostly depends on which culture is
executed and which structure in implemented.
Siemens is related to structure and culture that structures
with wide span of control and associates with culture
which believes in staff control. This will result in
innovation and more motivated in the workforce. Higher
efficiency and success can be achieved as costs are less
involved. Staffs are motivated to work because they are
getting the chance to contribute their decisions. Seimens
is a type of culture which is built on a high performance
culture. The culture adopted in Siemens can be
expressed a collaborative culture which is about
motivating employees to fulfill their work. Siemens

Page | 7
agrees that an organisation is baseless without their
employees and are devoted to their employees.

(2.0) Factors that Motivate an Individual

Abraham Maslow was an American psychologist who was

best known for his Hierarchy of needs theory which was
published in 1943. Maslow’s hierarchy need theory is still
relevant in every part of the business today. For any kind
of situation ‘need’ is the primary cause for an individual.
Time to time various theories of motivation was evolved
which pushed an individual to work effectively devote
more to work. Alderfer viewed a different scenario that
life of an individual is dominated by themselves rather
than motivational issues from lower to higher. Alderfer
ERG theory is the update version of Maslow’s need base
theory, where Alderfered referred that self-actualization
and self-esteem is the key for a better standard of living.
Carrying Abraham Maslow’s theory as a guideline,
Alderfer established, existence, relatedness and growth is
his theory which forces individual to enjoy a better
lifestyle. Alderfer distinguished some of the Maslow’s
assumption which states that need will occur only once at
Page | 8
a certain period of time. Alderfer recognized development
of personal desire as an intrinsic which is equal to
Maslow’s theory of higher needs. Alderfer recommended
people sometimes unable to meet their higher needs
therefore they try to increase their effort in order to
attain higher order needs. To improve self-desire and
social custom, self-actualization is the prime element.

Abraham Maslow’s theory of hierarchy needs have mainly

five steps, theyFigure
are psychological needs, safety needs,
1 Maslow's Hierarchy
social needs, esteem
Needs needs and lastly self-actualization.
Firstly psychological needs are the basic level of needs
that are required for the humans like food, shelter,
clothes. Psychological needs are the strongest needs
because if a person lacks of these needs than it would be
difficult for the person to be satisfied and hope for the
other needs. For example, Siemens provides safety and
better environment so that their worker can work in a
safe place. They are determined to maintain high
standard of environment, physical and mental well-being
of their worker. Then there is social needs that meets all

Page | 9
the psychological needs and is no longer controlling
thoughts and the style that can become active in the
needs for security. Secondly safety needs are also those
needs that includes job security. For example, employees
in Siemens will not have fear of getting fired from their
job because the management is so flexible that even if
the employees don’t know their job the management will
teach them. They also provide insurance services which is
a way to motivate their employees. The social needs
includes relationship, job environment and togetherness
among the employees. Maslow also stated that people
can overcome their aloneness by meeting with new
people inside or outside the organisation. For example,
there should be a good relation among the employees at
Siemens because this relation will result in better
teamwork by which the organisation will be beneficial and
also it will motivate the employees because their job
won’t be boring anymore due to consulting with the other
employees. Then there comes esteem needs which
includes status and recognition because generally a
person wants to be a bigger person in terms of earning
and at an organisation. For example, in Siemens top of
the manager’s builds such a reputation that the
employees wants to be inspired from them as well as
they are paid a good amount. Lastly self-actualization is
at the peak where it mentions the organisation where a
person achieves the goals by competing all the tasks that
was provided by the organisation. For example, Siemens
helps their employees to enhance their capabilities which
may lead to a better evolution. Siemens also helps
employees to meet their targets in the global market
through training and improvement.
Page | 10
Siemens always provide a room for new generation
employee for which they pursue different structure and
they are successful to have a different culture.
Challenges and ability to perform work and resolving
dispute ensures Siemens safety environment. It is
important to motivate an employee directly or indirectly
to work harder and efficiently to gain achievement and
other benefits. Whether it is individual life events or
motivational issues work for the betterment for both
employees and organisation, it ensures individual needs
which is the core concern behind every work.

(3.0) Ways in which Siemens motivate its

employees

Abraham Maslow found out the five basic needs for

human that has drastically influenced a person’s
behavior. This motivator factors can be seen on person’s
activities. This are psychological needs, safety needs,
social needs, esteem needs and self-actualization.
Psychological needs are those needs that basically
includes food, shelter and clothes. Safety needs are those
needs that includes stability and job security of an
individual. Social needs are those needs that includes
team work and feelings among the people. Esteem needs
are those needs that involves prestige and recognition
that an individual wants in their personal lives. Finally
self-actualization is at the top of all needs that includes
the personal accomplishments of an individual.

Page | 11
Porter and Lawler’s theory is a development over Vroom’s
theory. Porter and Lawler’s theory tells that motivation
doesn’t balance satisfaction and performance. The model
recommended by them shows the simple classical
assumptions made related to the positive relation
between satisfaction and performance. They suggest a
model to describe about the complicated relation that
occurs between satisfaction and performance. Effort or
motivation doesn’t point directly to activity which is
mentioned by the Porter and Lawler’s model. Basically
performance is the ultimate way that will lead to
satisfaction.
Lyman Porter and Edward Lawler introduced the theory of
motivation relating different conditions. Porter and
Lawler’s theory is the infinite model of motivation. The
model have been virtually used in the study of
administrators. It also describes the communication that
occurs between job activities and job approach. This
model lies under four basic assumptions about the human
behavior. The first belief tells that an individual’s act is
determined by the mixture of factors that is involved in
the climate. The second belief tells that individuals tend
to be balanced humans that makes appropriate decisions
about their act inside the orgnisation premises. Thirdly
the belief tells that individuals have various aims,
eagerness and demands. Lastly the belief tells that
individuals take decisions between substitute behaviors
on the basis of their assumption.

Page | 12
The different factors of Porter and Lawler’s model are
effort, performance and satisfaction. Effort mentions the
amount of energy that an employee puts in their work. It
is determined by two factors that how much an employee
will put effort in their work which is amount of benefits
and depending on the effort the benefits will be provided.
Performance is measured by the effort of an employee. At
the same time the amount of performance depends on
the amount of workforce and also the capability of the
employees. Hence if the employee has less capability and
makes wrong appearance view, the employee’s
performance may be flat in spite of extreme effort.
Performance is the major key to satisfaction. And hence
benefits is achieved through satisfaction. If the amount of
benefits is provided less the employees will be
dissatisfied.

Page | 13
There are two kinds of benefit which is intrinsic and
extrinsic benefits.
FigureIntrinsic benefits
2 Porter and can
Lawler's be termed as an
Model
achievement and self-actualization and extrinsic benefits
can be termed as working conditions and image. An
analysis supports that the intrinsic benefits are likely to
produce approach and satisfaction which is related to
performance.

Employees of Siemens work in a very friendly

environment. A developed workplace is likely to get an
exceptional work. Siemens try to distinguish between
satisfied and dissatisfied factors. Siemens by eliminating
the dissatisfactory factors which on the other hand
creates an era for their employees that leads to take
many policies. Siemens try to understand employees
need and on the basis of that they create a challenging
program that increases capacity for working as a
motivating aspect. Siemens is the place where young
employees who are recently graduated gets the
opportunity to work because Siemens believe these are
the people who likes challenges and that can create an
innovative environment. Therefore Siemens’s main
strategy is to make the worker innovative and skilled thus
giving them social needs and esteem needs.

Siemens’s major purpose behind their accomplishment is

to encourage their worker to act individually and also
work as a team. Siemens follows some aspects that

Page | 14
creates a strategic nature of work for the improvement of
their employee.

Page | 15
 (4.0) A critical evaluation of Herzberg’s two
factor theory

Frederick Herzberg is a behavioral scientist who

presented the two factor theory or the motivator’s
hygiene theory in 1959. There are some job aspects that
result in ‘satisfaction’ as well as there are other job
aspects that avoid dissatisfaction.

Figure 3 Herzberg's Two Factor

Theory

Herzberg listed these job aspects into two divisions, they

are:

 Hygiene factors: Hygiene factors are those factors

that are needed for presence of motivation in the
work area. These are not the way to positively satisfy
in the long-term but if the factors don’t exist than it
will lead to dissatisfaction. Basically hygiene factors
refers that an individual is suitable for the job, make
Page | 16
 an individual calm and do not lead them to
dissatisfaction. The hygiene factors are extrinsic to
work. Hygiene factors are also known as dissatisfiers
because they try to avoid dissatisfaction. Under
hygiene factors there includes company policies,
fringe benefits, interpersonal relations, job security,
physical working conditions, status and pay.

 Motivational factors: Hygiene factors cannot be

witnessed as motivators according to Herzberg
because the motivational factors supports positive
satisfaction. The employees are motivated with these
factors for a higher performance. These factors are
perfect satisfiers. These factors are intrinsically
beneficial for the employees. Under motivational
factors there lies recognition, growth, responsibility,
sense of accomplishment and meaningfulness of the
work.

There are also some restrictions of the two factor theory:

 The two factor theory neglects situational
fluctuations.
 Herzberg assumed intersection between productivity
and satisfaction. Whereas the analysis operated by
Herzberg underlined upon satisfaction but neglected
productivity.
 The raters need to make an analysis. Analyzing same
feedback in different way may spoil the findings of
the raters.

Page | 17
  Comprehensive measure of satisfaction was not used
which result in an employee will find his/her job
applicable in spite of the fact that he/she may not
like their job.
 The two factor theory isn’t free from a biased point of
view that is based on the logical reaction of the
employees enquire the sources of satisfaction and
dissatisfaction. Employees will blame on the external
factors like company policies.
 The theory dodges the blue-collar employees. In
spite of these limitations, Herzberg’s theory is widely
applicable.

(5.0) Conclusion

This report consists of the explanation of culture and

structure in Siemens as well as an individual’s way of
motivation in the organisation. This report includes
hierarchical and matrix structure which is under an
organisation. Porter and Lawler’s teory and the
improvement over the Vroom’s theory is mentioned in
this report. It also includes the way Siemens motivate its
employees in the Herzberg’s two factor theory.

Page | 18
Page | 19
 Reference List

1. Siemens ‘About Siemens’ Available at:

http://www.siemens.com/about/en/ Accessed at:
17.12.2016
2. Siemens ‘History’ Available at:
http://www.siemens.co.uk/en/about_us/index.htm
Accessed at: 17.12.2016
3. Chron ‘Different types of organisation structure’
Available at:
http://smallbusiness.chron.com/different-types-
organizational-structure-723.html Accessed at:
18.12.2016
4. Study.com ‘Defination’ Available at:
http://study.com/academy/lesson/what-is-
organizational-culture-definition-characteristics.html
Accessed at: 18.12.2016
5. Investopedia ‘Organisational structure’ Available at:
http://www.investopedia.com/terms/o/organizational-
structure.asp Accessed at: 19.12.2016
6. Chron ‘Matrix’ Available at:
http://smallbusiness.chron.com/advantages-
disadvantages-matrix-organizational-structures-
business-organizations-26350.html Accessed at:
19.12.2016
7. Study.com ‘Matrix’ Available at:
http://study.com/academy/lesson/matrix-
organizational-structure-advantages-disadvantages-
examples.html Accessed at: 19.12.2016

Page | 20
8. Business case studies ‘Hierarchy needs’ Available at:
http://businesscasestudies.co.uk/siemens/motivation-
within-a-creative-environment/hierarchy-of-
needs.html#axzz4TEVfvAh3 Accessed at: 20.12.2016
9. Academlib ‘Porter and Lawler’ Available at:
http://academlib.com/2845/management/porter_lawl
er_model_motivation Accessed at: 20.12.2016
10. Msg ‘Herzberg’ Available at:
http://www.managementstudyguide.com/herzbergs-
theory-motivation.htm Accessed at: 20.12.2016

Page | 21