Peer evaluation: Siemens uses this to see how workers asses each other workers within a department observe each other’s work and note down how they think they are doing. This approach makes it possible to check on how much team members are contributing to the product of the teamwork.
Target settings for individuals and groups: There are three broad ways Siemens uses to do staff appraisals; they are based on personal attributes, skills or performance. Siemens uses different approaches for different groups of employees this is because Siemens think it is the best way for Siemens workers to achieve their maximum potential for the firm in order for Siemens to maintain their advantage of the market.
Departmental rivalry: The managers of Siemens human resources department have the extremely difficult job of deciding which areas of the business get the benefits of staff training and development. But these benefits for the different departments of Siemens are limited therefore some departments miss out thus causing major conflict between all the departmental managers.
There are four main motivation theories that Siemens could have followed them are:
- Frederick Taylor’s Principles of Scientific Management
- Douglas McGregor’s Theory X and Theory Y
- Abraham Maslow’s Hierarchy Of Needs
- Frederick Herzberg’s Two Factor Theory
Taylor's Principles
Frederick Taylor in his 1911 work - "Principles of Scientific Management" advanced the view that employees are basically motivated by money. The job of management was to provide formal order and control in the working environment. Management did the planning and provided the support to show the workforce how best to do the job. Taylor felt that, with this clear line and staff organisational structure, productivity would increase because the employee would recognise that a higher output rate would lead to higher pay. Obviously, this approach tends to address what are perceived to be lower level needs and, by its very nature is far more relevant to labour intensive industries.
Taylor's principles would support the use of these three pay systems:
Performance-related pay (PRP)
Is a scheme, which links output and performance to pay. Employees receive bonuses, which are dependent on their ability to reach specific targets. PRP rewards are good performance, so it should motivate employees to work harder. However, some critics argue that factors beyond an employee's control, such as the breakdown of machinery, could affect their performance. Critics also argue that PRP categorises employees as good or bad performers and this can have a negative consequences on upon those who fail to achieve their targets. To overcome problems, managers need to consult with employees and ensure the targets they set are SMART - Specific, Measurable, Achievable, Realistic and Timed.
Piece rates
Provide employees with a variable income; payment is directly linked to output. 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. It is self-fulfilling prophecy.
Theory Y argues that employees are not money motivated but gain reward from the job itself. Theory Y presents employees as self-disciplined, work appreciative people who crave responsibility and creative fulfillment. McGregor's Theory Y is significant because it suggests that given the right conditions and management style employees can be motivated to work efficiently and productively.
Clearly, Theory X and Theory Y workers will react in contrasting ways to different management attempts to increase motivation. The manager's role is to determine which approach and style should be adopted in order to satisfy the needs of the workers. For example, the Theory X employee is more likely to respond to financial inducements, the Theory Y employee would be stimulated by job enrichment, job enlargement, and job rotation and quality control circles.
Abraham Maslow's hierarchy of needs.
Maslow's theories of motivation have been popular since the 1950s and are based on meeting people's needs in the workplace. The theory suggests that unsatisfied needs can lead to dissatisfaction.
Maslow identified a range of needs that were largely hierarchical in nature:
Basic needs are for reasonable standards of food, shelter and clothing in order to survive. This level of need will typically be met in workplaces by the receipt of money in exchange for work done.
Security needs are also concerned with physical survival. In the workplace these security needs could include physical safety, security of employment, adequate rest periods, pension and sick schemes.
Group needs are concerned with an individual's need for affection and love. Most people want to belong to a group. As organisations grow, individuals can lose their identity, becoming just another number or face in the crowd. Organisations therefore need to find ways of building individuals into groups and teams.
Self-esteem needs are based on an individual's desire for self-respect and the respect for others. Employees have a need to be recognised as individuals and to feel important. This is where giving status to individuals and recognising their achievements is important.
Self-actualization needs are concerned with personal development and individual creativity to achieve one's full potential. In order to meet these needs at work, individuals need to be provided with the opportunity to use their creative talents and abilities to the full.
Frederick Herzberg's two factor theory
Frederick Herzberg carried out some important research into motivation. He identified a range of dissatisfies associated with the context and satisfiers associated with the content of jobs.
Dissatisfies include the following:
- Autocratic or arbitrary company policy and administration.
- Low pay.
- Antagonistic relations between different levels of employees
- Unfriendly relationships within the hierarchy.
- Unfair management and supervisory practices.
- Unfair treatment of employees.
- Feelings of inadequacy.
- Impossibility of growth and development.
Herzberg suggested that the existence of the above, to any great extent, would cause dissatisfaction which would, in turn, lead to absenteeism, poor levels of output, resistance to change and negativity in the workplace.
In contrast, Herzberg identified a range of the satisfiers associated with the content of the work that would encourage motivation these are:
- Recognition of effort and performance.
- 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.
