Performance management in Siemens.
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E5 Performance management is very important to a business like Siemens as this shows how they maintain their workers good performance and encourages them to carry on with the good work. Performance management refers to as setting targets, measuring performance against these and suggesting courses of action. A number of methods can be used to check Siemens employee's performance they are-: Appraisals: The purpose of the performance appraisals process is to improve employee performance and to provide appropriate rewards. Performance appraisals help employees improve by providing feedback on how they are doing and can provide motivation by recognising well-done jobs. Performance appraisals help the manager make personnel decisions such as promotions, reassignments, and terminations. They also help define training needs and integrate total human resources of the firm. Rating scales can be used. Outstanding Excellent Good Fair Poor Always responds usually responds Occasionally Normally acts occasionally is Appropriately even well with customers becomes flustered courteously but abrasive or With irate customers with customers responds poorly offensive when Or uses poor to irate customers responding to Judgement customers Self-evaluation: This is when the employee assesses themselves against a series of criteria. Giving marks out of, say 10 under each heading given can do this.
Employees are encouraged to produce as much output as possible and maximize productivity. Although productivity is increased in this method, the standards of the product may decrease as employees strive to gain rewards. Commission-based pay Is often used when for sales staff and employees are paid a percentage of the value of the goods they sell. Commission-based pay motivates employees because their own performance and ability to sell the company's products determine the level of their salary. McGregor's Theory X and Theory Y. The motivation of employees is normally the responsibility of the manager. He or she makes assumptions about an employee's basic needs when deciding on a suitable motivation method. Douglas McGregor's 1960 study - "The Human Side of Management", suggests that two types of employee exist, each possessing different needs. McGregor argues that the type of employee a person becomes is influenced by management style. Theory X conveys a negative view of human nature, portraying employees as lazy, unmotivated people who dislike work and need to be controlled through punishment. McGregor argues that if a manager treats employees as if they are naturally inclined to be idle and disinterested and believes that they do not want responsibility, then they will fulfill this role.
* The nature of the job itself - does it provide the employee with the appropriate degree of challenge * Sense of achievement. * Assumption of responsibility. * Opportunity for promotion and responsibility Siemens main motivation theory they follow is Douglas McGregor's Theory X and Theory Y as they believe that they have two types of workers in their firm. Theory X workers, people who come to work because they have to and Dislike their job so are not very motivated and Theory Y workers, people who come to work as they enjoy the challenge of being a member of a team who don't need encouraging as they are motivated and this is the kind of people Siemens are trying to recruit as they are investing in the future of the business. Siemens also use another motivation theory to show the businesses drive for success. It is called Frederick Taylor's Principles of Scientific Management. Taylor believes that there are things that all businesses could do to motivate their workers in ways that would satisfy the company and the workers as well. These include Performance-related pay (PRP) and Piece rates these are the two Siemens focus on when looking at Taylor's Principles of Scientific Management. As they feel it is important for the business to motivate their workers in a way which the workers follow what they try to achieve in Siemens.
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