Executive Summary
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. The association with Bangladesh began in 1956, and since then it has been involved in a number of Bangladesh’s major modernization and infrastructure development programs. SBL is operating in Bangladesh for last 50 years with the aim shaping a better future and enhance the lives of people.
The purpose of the report is to identify the HR system and practice of Siemens Bangladesh limited. Being a multinational company SBL has a structured HR system with both global and local touch.
Siemens regards it’s employee as most essential asset and resources in ensuring continued success and development. The growth of Siemens all around the world has provided promising prospects for all competent and highly motivated employees in a continuous manner. By providing rich Human Resources practices and offering of competitive benefit package, Siemens believe in ensuring a working environment where management and employees put combined effort towards the growth of the company and accepts new challenges in a diversified environment. Acknowledgment of success is ensured here to motivate our staff.
The SBL human Resource practices determine to ensure every employees growth with highest potentiality by providing a healthy & competitive work environment where the employee gets opportunity to excel their knowledge & skills .It also ensures the appropriate career opportunities in line with the capabilities & performance through Siemens Performance Management Process
Finally recommendation was provided to make the HR system more effective and efficient for the organization. If SBL follows the HR system thoroughly then it will be always in upper hand to retained best employees in the organization in the future.
Introduction
Siemens is one of the leading companies in the growing area of electrical engineering and electronics sector in the world. This German electrical giant operates in 190 countries, creating leading-edge innovations for better life, and driving profitability and corporate responsibility around the globe.
Values & Vision
The value of Siemens is highest performance with the highest ethics
High performance and ethical behavior are the two pillars of sustainable business success – they are not contradictory. In the long term, Siemens can only be successful if we are able to satisfy both requirements at the same time
Responsible: Committed to ethical and responsible actions
Excellent: Achieving high performance and excellent results
Innovative: Being innovative to create sustainable value
The vision of Siemens is aspirations for the future
Our vision puts into practice our belief that the highest performance and highest ethical standards can drive our profitable growth while addressing stakeholders’ requirements.
Background of Siemens Bangladesh Limited
The association with Bangladesh began in 1956, and since then it has been involved in a number of Bangladesh’s major modernization and infrastructure development programs.
Siemens has been active in railway projects in the country since 1962. In 1968, had the privileged to become the first direct foreign investor to start a joint venture with the government to manufacture telephone switches and sets. The company has been quite successful in the power and energy sector of Bangladesh. In 1967, Siemens were actively involved in constructing the Ashuganj power plant and thus gained a major market share of the country’s power sector. Beside that from the beginning, medical systems and solutions has been the country’s technology of choice in the sector.
Siemens has been operating in the country for 50 years, during which time has established as a leading solution provider in Transportation System, Power Transmission and Distribution, Medical Solutions, Power Generation, Power Distribution and Lighting Solution in the electrical and electronics market, Automation and Drive, Industrial Solutions and Services. So, on any particular day people will find Siemens products and solutions all around you
History
Ever since its foundation in 1847 by Werner von Siemens, Siemens has addressed the challenge of shaping the future with innovations. Few companies have done as much as Siemens to shape our world. Visit the Siemens Archive Web site www.siemens.com and see the highlights of more than 160 years of company history
Product, Solution & Services
Siemens Bangladesh Ltd. business portfolio comprises the following business areas
• Automation and Drive
• Power Distribution & Generation
• Transportation System
• Medical
• Industrial Solution and Service
Automation & Drive
Automation and Drive is one of the key business divisions in Siemens Bangladesh Limited. The division plays a key role in the profitability and outlook of the company. The A&D with a comprehensive range of products, systems and services for production and process automation and building technology has been successfully able to enhance the businesses of its valued customers. Security, comfort and efficiency of any buildings is very important to every walk of life, so Siemens with their high technical and innovative building technologies such as fire alarm, access control system CCTV and others guarantees a protected living and working safety to its customers. Same success holds with Osram. Osram with its quality lighting products have been effectively able to keep a pace with the rapid growing market in Bangladesh. Keeping pace with the needs and changing lifestyles of the people of Bangladesh, Siemens with its expertise offers high quality products and services to meet the customer satisfaction by making them feel that Siemens is all around you, which in way has been the driving force to achieve success in all the business units.
Power
Siemens presence in the power sector of Bangladesh started in the mid 60s. As first project the company completed the instrumentation and control system as well as the HV/MV substations for two units of Ashuganj Power Station in 1968. Today Siemens is known in Bangladesh for their expertise in realizing Power Generation projects and projects for HV and MV substations, Prepaid Metering projects and infrastructural projects for industry (Textiles, Steel, and Pharmaceuticals) and the private sector (Hotels, commercial and corporate buildings) in Bangladesh.
Medical
Siemens Medical Solutions brings together trendsetting medical technologies for diagnostic imaging, therapy and healthcare information systems, as well as management consulting and support services, to help transform the delivery of care. As a leading healthcare solutions provider, the goal is to enable customers to gain new efficiencies by integrating their clinical, operational, and financial processes. From reducing cycle times, to increase access to vital information, improving information security, and controlling costs, their solutions assist health care providers throughout the world to do more with fewer resources. At Siemens, people measure their performance on the tangible, quantifiable results that they provide to customers.
The product portfolio covers wide range in the healthcare sector, from imaging systems for diagnosis and treatment to modern information technology, service and maintenance offerings, as well as consulting services in the area of process optimization. And Med continues to develop further. With the acquisition of CTI Molecular Imaging, the Group has strengthened its commitment in molecular imaging, one of the technologies of the future in medicine. With the acquisition of Diagnostic Products Cooperation (DPC), Med is expanding its diagnostic spectrum into the area of immunodiagnostics. And with the planned acquisition of Bayer Diagnostics, an integrated diagnostic company will result for the first time in the healthcare industry, bringing together under one roof imaging diagnostics, laboratory diagnostics, and clinical information technology across the entire value-added chain.
Transportation System
Siemens Transportation systems offers a comprehensive solution for Railway transportation system right from locomotives, signaling & Interlocking system, rail communication, turnkey system. Siemens is one of the leaders of Transportation system solution is the partner of Bangladesh Railway development for more than 40 years. Siemens provided almost 95% railway signaling & interlocking system of Bangladesh railway in Sixty’s and Seventy’s which is still ensures human safety of Bangladesh rail transport. Siemens TS now provides state of the art computer based interlocking & signaling system safe
rail travel. Siemens TS is a complete solution provider of metro rail services, underground and overhead light rail including design manufacturing, construction, supply of trains, operation, maintenance etc. Siemens ensures safety of human and national property.
Industrial Solutions & Services
Siemens Industry Services and Solution (I&S) offers a complete solution for production and process automation of Pulp & Paper, Cement, Iron & Steel, Metal, and Mining. It provides full support for marine solution port automation, oil & Gas and Water technology. With integrated automation it delivers solution for municipal water and waste water treatment including removal of arsenic. Total integrated airport solution, traffic and parking management system are a synergy of Siemens I&S services. I&S Integrated services (IS) provides a one point solution for infrastructure like building, stadium etc. I&S-IS deal with complete solution of power supply, lighting, building automation, parking etc. In Bangladesh Siemens is operating in Industry Services & Solution more than 50 years and contributed in Bangladesh development in industry automation, water & public health, airport automation. We are now experienced and equipped to support our customers to get long term benefit out of these investment.
The individual Groups within these areas are responsible for their own worldwide operations, with regional units around the globe supporting their efforts.
This decentralized structure gives the Groups the greatest degree of entrepreneurial responsibility and the ability to nurture the closest possible ties to their customers. Cross-Group and cross-regional cooperation is crucial for the success of the GLOBAL NETWORK OF INNOVATION. At the same time, it enables Siemens to provide comprehensive, customer-focused products, solutions and services for the global market.
SWOT Analysis
Strength
• Leading electrical engineering & electronics innovation
• Goal-oriented company
• Global network
• 50 years of operation in Bangladesh
• Highly qualified people both local & global
• Cross-cultural experience
• Follows global HR system to make the business more smooth and competitive
• Compliant towards business “ Highest performance with Highest Ethic”
Weakness
• Lengthy business procedure and documentation
• Long chain of command & authority
• Long lead time for product ordering and delivery
Opportunity
• Potential pool of people
• Prosperous business market
Threat
• Huge competition from local giants
• Local competitions are coming up with similar products at a lower price.
The SWOT analysis has been done to find out the internal and external weakness and strengths of organization. Siemens Bangladesh limited has a strong strength in their innovations in shaping up the future of the world with the aim of enhancing the living standards of the people of Bangladesh.
HRM in Siemens Bangladesh Limited
Siemens Bangladesh Ltd (SBL) was incorporated in 1956 and over the last 50 years, has established as a premier MNC in Bangladesh. The Company is a 100% wholly-owned subsidiary of Siemens AG. Siemens AG is today one of the ten largest electrical & electronic companies in the world. As of 2006, it employs close to 480,000 staff in more than 190 countries worldwide. The success of SBL has achieved is due to the loyalty, dedication and hard work of each and every one under the same umbrella.
Siemens regards it’s employee as most essential asset and resources in ensuring continued success and development. The growth of Siemens all around the world has provided promising prospects for all competent and highly motivated employees in a continuous manner. By providing rich Human Resources practices and offering of competitive benefit package, Siemens believe in ensuring a working environment where management and employees put combined effort towards the growth of the company and adhere the new challenges in a diversified environment. Acknowledgment of success is ensured here to motivate our staff.
Maintaining the global culture SBL is the place to work where a favorable working environment is prevailed to showcase employee’s talents and allows stretching ones abilities to the fullest. Support, encouragement and leadership one can expect to receive from his/her Managers in every step.
Human Resource Management Policy
Siemens Bangladesh Limited is one of the regional companies of SIEMENS AG where the employees are diverse in aspect of their religious belief, nationality, race & gender. To ensure the equal opportunity policy, the company is committed to treat every employee with respect, fair judgment and assess with their performance & capabilities.
The SBL human Resource practices determine to ensure every employees growth with highest potentiality by providing a healthy & competitive work environment where the employee gets opportunity to excel their knowledge & skills .It also ensures the appropriate career opportunities in line with the capabilities & performance through Siemens Performance Management Process. The main objective is to provide an honest & open communication practice in order to retain highly motivated workforce who are entirely dedicated towards their respective job responsibilities in order to obtain company objectives.
If we look into the existing HR flow chart of SBL then we can easily identify that SBL follows a very basic HR process and each process are inter-related. As we know the objective of any business organization is to maximize profit through its company’s strategic goals. The only way to achieve organizational goal and performance is through the human resources within the organization. Thus the role of HR comes into play to provide its organization with high qualified and skilled employee in order to achieve organizational goal.
SBL’s motto is to achieve highest performance with highest ethics. So the HR of SBL needs to consider the fact that in every step of the HR process how it can add value to get the best and qualified human resources keeping in the mind its ethical standard and policies. As we know the organizational performance can be only be achieved if the HR process is effective & efficient.
Employment in SBL
Siemens Bangladesh limited employs about 215 persons. Siemens considers its employees to be the lifeblood that keeps the company one step ahead all the time. That’s why they recruit high potential individuals and offer them competitive salaries and extensive social benefits. If we look into the HR structure or department of SBL comprises of a team of four. The HR head is responsible for the development of the policies and strategies along with the concern of the Executive Management. Regarding the job specification for respective divisions are joint effort of the HR head and the individual division heads based on their requirements.
Employment
Employment terms & condition is determined in line with employee classification of employment status. Employees are defined as persons employed by the company with employment contract to any position and duties assigned. SBL classifies employee’s employment status as follows:
Permanent Employment
Employee under permanent employment status who has completed successful probation
period under the stipulated terms & conditions stated in employment contract.
Non Permanent/Probationary
Probationary employees are employees whom the company has employed under the
provision of Permanent employment position but regard as non permanent until he/she
successfully completes a certain trial period under stipulated terms & condition stated in
employment contract relevant benefits will only be applicable after the successful
completion of this tenure.
Contractual
Contractual employee is employed for a fixed tenure assigned with as special task.
Employee under contractual employment is not eligible to receive any benefit like any
other permanent staff of SBL. The remuneration of contractual employee is negotiated
based on the educational background and previous job experience.
Trainee
Trainee is employed for a stipulated tenure and do not eligible to hold permanent
employment status.fresh graduates or with no experience can be employed as trainee.
Internee
Students from renowned educational institutes are given opportunity to complete a
stipulated internship period with SBL where the interne needs to submit a report based on
a given topic align with work experience assigned by the university. A fixed amount is
offered to the intern as per the company practice. Company business confidentiality
should strictly be maintained while making of such report. Concerned manager is hold
responsible for such compliance. A copy of the internship report has to be submitted to
the respective Div/Dept as future reference.
Appointment & Documentation
The recruitment and selection of employees are carried out mainly on the basis of qualification, merit and fitness. Progress within the company will depend very much on employee’s ability, dedication and loyalty towards the company. Company reserves the right to practice to promote its own staff to higher positions whenever possible. The company may transfer the employee within the organization as and when the need arises.
Appointment
Employment of an employee is being confirmed through proper documentation of an appointment letter where the name of the employee with permanent address, date of commencing, his/her job title, position level and starting salary package is clearly defined. Appointment letter is treated as legal authentication of an employee’s employment status with SBL.
At the time of joining, the candidate must submit attested copies of all of his/ her academic, experience certificates and clearance certificate from his/ her previous organization(s) to HR which are to be documented in his/ her personal file after proper verification. The attestation must be done by First class gazetted government officer. After being appointed an employee receives an orientation conducted by HR where a short briefing session is arranged on employee’s benefits and company’s policies. The same time the employee has to give some specific personal information by filling up a form for the record purpose of HR Department.
Probation
To ensure the staff selected for the position is capable for the job function, all newly appointed staff has to serve an initial probationary period as specified in the Letter of Appointment. During probation period employee become acquainted with work, colleagues and company facilities. During probation period, superiors will evaluate performance, ability and reliability to determine whether this person can make a successful career with the company in future.
If the company is not satisfied with an employee’s performance, the company may at its discretion, extend the probation by another period not exceeding the duration of the previous period. Employee is informed in written of this extension before the expiry of the initial probation.
Source: Siemens Employee Handbook/Human resource policy/employment terms & condition
Confirmation
Before the end of probation period, the concerned department or division head shall decide whether the employee should be confirmed in his/her job with the company. Confirmation is subject to the employee’s positive performance during the probation tenure. Upon successful completion of probation period, an employee is being notified in writing of his/her confirmation of the employment in the company. After the confirmation the employee shall be entitled to receive all relevant benefits according to the status of his/her employment. Employee is also given with PR (Payroll) number at the time of confirmation.
After confirmation employee needs to sign employee deed and Business Conduct Guideline. HR will do the needful in cooperation with the Employee to include him/ her in SBL Group life insurance coverage.
Source: Siemens Employee Handbook/Human resource policy/employment terms & condition
Up-gradation
The employees are subject to remain in one grade minimum for 2 to 3 years to be considered for up gradation. However, any deviation to this depends on the discretion of the Management.
Source: Siemens Employee Handbook/Human resource policy/employment terms & condition
Termination of Employment
Either employee or the company may give notice of intention to terminate the contract of service in accordance with Letter of Employment. The notice period of termination and the termination benefit is defined accordance with employment status and current company practice. At the time of separation, employee shall return all the information related to Siemens entire maintained in written & electronic forms and all company properties kept in his/her possession to the Department /Division on his last working days. Final financial settlement of that employee is due subject to the clearance & release order provided by respective Division/Department.
Source: Siemens Employee Handbook/Human resource policy/employment terms & condition
Retirement
The employees shall retire from the services of the company on attaining the age of 58 (fifty eight) years. The date of birth as recorded with the Company at the time of appointment shall form the basis for determining the age of the employee concerned.
Source: Siemens Employee Handbook/Human resource policy/employment terms & condition
Personnel Planning and Recruiting
Employment planning is a planning process, which is used to fill positions in an organization. This may include filling up position from a clerk to a CEO. It is the most integral part of a firm’s strategic and HR planning process.
The main employment planning decision is to decide whether the positions will be internally or externally filled. Planning and forecasting for the employee to decide for the duties of the positions to be filled is also an important segment.
Factors that are needed to be forecasted
Managers should consider several factors when they conduct the forecasting the need of the firm. Different firm does it in different ways according to their need. Our company Siemens is a service oriented firm. They analyze the requirement of the business division, based on the growth of the business and new project. They scrutinize –
- Projected turnover
- Technological changes
- Financial resources.
The Managerial Judgmental activities
While analyzing the growth of the business and new projects the managers of Siemens have to perform diversified activities;
Decisions to improve the quality of their existing products.
Changes in the technology and their adopting procedures.
Evaluating the financial resources that will be needed to adopt new policies.
Employee Recruitment and Selection process
From the interview we have detected that the major steps in employee recruiting and selection process that Siemens take are:
1. Requisition
The HRM dept. first decides upon the requirements of the position to be filled up.
2. Advertisement
The advertisement personnel in change circulates advertisement for the employees through –
Papers: newspaper, weekly magazines
Online: online advertisements
3. Primary Screening
A pool of candidates formed on the basis of their background information, education and skills. There can be:
Internal candidates- potential applicants within the organization
External candidates-potential applicants outside the organization.
Primary screening depends on the requirements that are needed to be fulfilled in the designated positions.
4. Interview
Interview conducted in different ways described in the interview section.
5. Selection
Based on the testing methods the candidates are judged by the management who best suits the position.
6. Appointment letter
After selection appointment letters are being sent by post.
7. Confirmation letter:
Confirmation letters are then sent back by the appointed person.
Employee Testing and Selection
Once the collection of potential candidates is done, the next step is to select the best person for the job. This is one of the important steps in the recruitment process. Identifying the right kind of person for the right job is essential for the organization.
Types of Tests used in SBL
In Siemens subjective written test along with cognitive abilities, personality and interest, or achievement tests are used.
The Test of Cognitive Abilities
Tests in this group include tests of general reasoning ability and tests of specific mental abilities like memory and inductive reasoning.
Personality and Interest
Personality test measures basic aspects of an applicant’s personality. Siemens give much importance to personality test. A person’s interest in different activities is also a matter of importance.
Achievement tests
This test is basically a measure of what a person has learned. In Siemens this achievement test is used to measure the effectiveness of learning process.
Management Assessment Center
In Siemens these three exercises are done for Management Assessment Center
• The leaders group discussion
• Management discussion
• Individual presentations
Other Selection Techniques
Only Background investigations and Reference Checks are used in Siemens for the mean time.
Source: Human Resource Management, tenth edition by Gary Dessler,2006-2007,Chapter 6, Employee Testing & Selection
Interview
A procedure design to solicit information from a person’s responses to oral inquiries. Siemens usually conducted three types of interviews-
• Directive
• Sequential
• Appraisal
Directive Interview
An interview follows a set sequence of questions. In directive Interview, the interviewer prepares a list of questions in advance and does not deviate from it. In many organizations, standard form is used on which the interviewer notes the applicants predetermined questions. Many of the questions asked in a questions interview are forced choice in nature and the interviewers need only indicate the applicant’s response with a check mark on the form. Siemens Bangladesh follows a highly structured interview which follows prearranged sequential questions. In such an interview, the interview is often little more than a recorder of the interviews responses and little training are required to conduct it. The structured approach is very restrictive .The information elicited is narrow and there is little opportunity to adapt to the individual applicant. This approach is equally constraining to the applicant, who is unable to qualify or elaborate to answers to the questions.
Sequential Interview
An interview in which the applicant is interviewed sequentially by several persons and each rates the applicant on a standard form. In a sequential interview several persons interview the applicant in sequence before a selection decision is made. In an unstructured sequential interview each interviewer may look at the applicant from his or her own point of view, ask different questions, and form an independent opinion of the candidate. On the other hand, in a structured sequential or serialized interview, each interviewer rates the candidate on a standard evaluation form and the ratings are compared before the hiring decision are made.
Appraisal Interview
A discussion following a performance appraisal in which supervisor and employee discuss the employees rating and possible remedial actions. In many organizations, two evaluation systems exist side by side; the formal and informal. Supervisors often think about how well employees are doing; this is the informal system. It is influenced by political and interpersonal processes. So that employees who are liked well than others have an edge. On the other hand, a formal performance evaluation is a system set up by the organization to regularly and systematically evaluate employee performance. The performance evaluation technique used will differ with the task being evaluated. When an employee leaves a firm for any reason, an exit interview is often conducted.
An exit interview, usually conducted by the HR department, aims at eliciting information about the job or related matters that might give the employer a better insight into what is right or wrong about the company. Many of the techniques explained in this chapter apply equally well to appraisal and exit interviews.
Employee Training & Development
Employee training is very important for the company to keep the performance standard intact as well as for attempting to enhance worker productivity.
‘Training is the process of teaching new employees the basic skills they need to perform their jobs.”
Training processes are broader today than they have been in the past, which used to focus on production process training. However today there is a new trend for training and development programs. Employees now adapt to rapid technological changes, improve product and service quality, and boost productivity to stay competitive. Siemens is also trying their best to achieve these qualities by conducting their training programs.
Siemens training system in Bangladesh
Major Training programs:
- Vocational Training
- On-The-Job Training
Vocational
Vocational training is based on special skill attributes and interests.
On-The-Job Training (OJT)
OJT means training a person to learn the job while working at it From a CEO to a clerk who joins the company gets some kind of on the job training. There are several types of OJT. Siemens Bangladesh is now using some of them according to their requirements on the specific task that needed to be performed by the employees efficiently.
Types of On-The-Job Training adopted
• Coaching – It is the most familiar method used by Siemens whereby an experienced worker or the trainee’s immediate supervisor trains the employee on the job. Siemens is using now this training technique to each of their employee from managers to rest of the workers in different sections of the stores.
• Job Rotation – Another technique that can be used for training the manager of Carters. Here the trainee is moved from job to job at planned intervals.
• Apprenticeship Training – It is a structured process by which individuals are trained through a combination of classroom instruction and on the job training to become skilled. Besides learning to do the actual job, here the trainees get the instant feedback about their performance over the job. Siemens also employ this method to train their fresh employees to make them the most effective performers of their own fields.
• Training facilities provided in Siemens
Currently Siemens is operating in Bangladesh with the effort of providing best performance services. For fulfilling that criterion the company is now providing newer techniques in all their departments as well as their training section.
PowerPoint presentation media
They are giving much emphasis on using presentation as a part of their training programs. The superior or the trainer shows PowerPoint presentations based on the required materials during the training programs.
Advantages
The advantages of the technique are as follows
• The presentations make the trainees able to visualize their required resources needed to perform their future job.
• It helps to reduce the cost and time needed to perform the training as there is less use of printed materials and handouts.
• It also helps to make the training easily understandable to all of the trainers.
Programmed Learning
It is a systematic method for learning job skills consisting 3 major functions –
• Presenting questions, facts, or problem to the learner
• Allowing the person to respond
• Providing feedback on the accuracy of his or her answers
Siemens Bangladesh uses the programmed learning named as “Management Learning”. This training technique is especially for the managerial positions.
The method is proven very useful and effective from Bangladeshi perspective.
Advantages
Siemens has been benefited a lot by employing this technique to most of its current mid level managers. The main advantages of this technique are –
• It reduces training time one-third.
• It can facilitate learning since it lets trainee learn at their own pace.
• It provides immediate feedback.
• It reduces the risk of error.
But at the same time developing manuals or software for programmed instruction has to be cost effective.
Aspects of ‘Computer Based training’ in Siemens
Here computer based system is used to interactively increase knowledge or skill about the job. It is beneficial in the way that –
- It reduce learning time by an average of 50
- It is cost effective when designed and produced.
- Instructional consistency is present while using this technique.
- It provides Mastery of learning
Increase retention and motivation resulting from responsive feedback.
Siemens Bangladesh uses Computer Based Training (CBT) as an integrated system in the whole company throughout country.
The System
The company has centrally controlled computer-networking system to provide computer programming and applications in the entire country as it is doing over the world. Through central service the facilities are being provided to different locations.
Training for Teamwork
It is used for improving the company’s efficiency. The HRM department has gone through the investigation and found out the effectiveness and necessity of teamwork in the organization. The company thinks that this method is helping them in the areas as-
- Effective Team building
- For growing Team leadership
- And Effective group work.
Customer Service Training in Siemens
Customer Training provides practical hands-on experience with the product.
Performance Management and Appraisal
Siemens believe in “S_CCESS cannot be achieved without ‘U’. So they arrange a yearly performance appraisal programs for the entire company employees to motivate them and make them feel as a valuable part of Siemens.
Performance review exercise gives you the opportunity to see how an employee has performed during the past one year and to enable to be guided towards being an ideal employee. It allows superior to highlight the employee’s strong and weak points and discuss on areas which require development. The rating evaluation and discussion will be private and confidential between the employee and the company. SBL practices performance review program through Performance Management Process. All employees belong to M & E group (Up to E III Level) are considered to be eligible under process. Employee belongs to E IV and G Grade level is appraised by the Annual Appraisal practice.
Performance appraisal is a crucial link in the HRM process; it is the means by which organizations assess how well employees are performing and determining appropriate rewards or remedial actions. A performance appraisal has been defined as any personnel decision that affects the status of employee regarding their retention, termination, promotion, transfer, salary increase or decrease or admission into a training program.
Every year organization goes through performance evaluation for all the employees. The process starts with target setting for the employees in line with the goals of the organization. Based on the set target the employees are monitored as per their immediate supervisors or respective managers. After words all inputs are considered from the manger and Division head and pass down to HR for their final concern. Then individuals are provided with feedback to further improvise their efficiencies to achieve the set target and the process goes on. The increment or the promotion of the employees depends on their performance level which is judged through the PMP.
The evaluations are done by using following methods
• Graphic scale rating – a scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describe his or her level of performance for each trait.
• Management by objectives – Involves setting specific measurable goals with each employee and then periodically reviewing the progress.
Performance Appraisal Process
Target Setting
Target setting is the first step in the performance management process and aims to provide target group with individual objectives on how they can support the overall business goals and perform their tasks. It is important that smart targets are set in order to ensure quality in results.
Monitoring
Monitoring is a process where Manager and Employee review the status quo of target achievement and discuss the employee’s capabilities shown through his/ her actions and behaviors up to then. It helps to improve the employee’s performance through a continuous communication and coaching process as well as assist the manager in the identification and implementation of interim actions in order to support employee to achieve result and implement the development action plan.
Review of completed individual targets occurs throughout the year in the monitoring meeting. Existing target can not be modified within the financial year except in case of
• Change of unit targets
• Change of job responsibilities
• Structural /personal changes
Discussion & Feedback
The discussion helps to objectively differentiate between employees based on their results and capabilities evaluations as well as identify possible potentials. Feedback on the outcome is done on the discussion between the manager and employee on an annual basis. It is mandatory to provide feedback on the employee’s achievement of results and evaluation of capabilities shown through actions and behavior.
Implementation
Implementation is the final outcome of the whole Performance Management Performance where the development & compensatory actions are realized and in progress. The efficiency & effectiveness of Development Action Plan is being measured during Implementation.
Evaluation
Evaluation is the assessment by the manager of the employee’s
• Target achievement
• Capabilities shown through actions and behaviors
Salary & Review
All employees under SBL payroll receives wages on monthly basis In order to reward an employee for his individual contribution towards his/her job responsibilities and commendable performance, SBL takes initiatives to conduct periodic salary review ensuring internal equitability and external competitiveness.
Individual salary review and salary increment usually takes place once a year after the evaluation of employee performance through current performance management process. Employee who is not covered with SBL Performance Management Process is evaluated by the annual appraisal practice.
Source: Siemens employee handbook 2007/ compensation & benefits
SBL Grading Structure
Based on the grading policy the company provides basic salary and compensations for its employees. We have seen so far there are certain categories of employees and body of executives in the company.
Employees
• M level= Managerial Level
• E level = Executive Level
• G level= Non Management Level
Depending on the type of job and the performance set standard the pay scales are being fixed.
Managerial level – From upper to lower level the base salary varies with the rank. And also the compensation and benefit packages are being provided accordingly.
Executive level – The salary and benefit for the executive level are a bit different from that of the management or non-management level.
These people get special compensational packages like vacation fare, property loan, bank loan and the like.
Non-managerial level – Here also the salary payments and compensations are given according the type of work performed at a certain standard for example, the technicians, engineers, accountants, medical expertise, researchers and so on.
Source: Siemens employee handbook 2007/ compensation & benefits
Benefits /Incentives
The employee benefits/incentives provided here in Bangladesh are
• House Allowance – for rent residential house or flat.
• Conveyance Allowance – Transport facilities and/or extra payments for the employees for their fare.
• Medical Reimbursement for Self & Family
• Group Insurance Coverage –All the permanent employees are covered under the Group Life Insurance coverage according to the grade level holding by the position. The company provides a Group Life Insurance to its employees from American Life Insurance Company.
• Provident Fund & Gratuity – Certain percentages of their regular salary are kept aside for fully payment in the future once.
• Bonus- The permanent employees are eligible to receive festival bonus. Beside this the management employees are also eligible for one kind of performance bonus known as variable income based on one’s target achievement
• Mobile Phone -Company may provide mobile phone to the employee for business purpose to allow him/ her to better communicate with customers and within the company
• Fitness club- The employees can use Siemens health club after work as a part of employee fitness.
Recommendations & Conclusion
Siemens Bangladesh Ltd. follows very strong and healthy HR policies which not only focus on human resources but also consider organizational goal while developing any human resource strategy. SBL has a flatter HR structure which faster the speed of doing business more efficiently and effectively. Even though with such effective HR structure and policies, still there lays merits and demerits and hence provide a scope of improvisation for better organization.
Being a multinational company SBL is in the upper hand as it has an effective HR system than of the local giants. The HR system of SBL very much organized and specific in terms of policies and strategies for dealing employees and other parties both inside and outside of the organization. The HR policies and strategies are pursuing to ensure that the recruiting, selecting, training, appraising and compensation systems are consistent with the company’s strategic plan. As said by a writer that in a growing number of organizations human resources are now viewed as a source of competitive advantage. A high quality workforce enables organization to compete on the basis of market responsiveness, product and service quality, differential products and technological innovations. Thus SBL HR system takes into consideration employees as much as possible to develop and trained them both personally and professionally.
Let us take a close look how each HR aspects such as recruitment & selection, training & development, performance appraisal, compensation & benefits and promotion affects the HR process of SBL in gaining competitive advantage and hence organizational performance.
Y= F(X1+X2+X3…………..)
• Y= Organizational Performance to gain competitive advantage
• X1= Recruiting & Selection
• X2=Training & Development
• X3= Compensation & Benefits
• X4= Performance Appraisal
In the regression model Y is a function of X1, X2 and so on. In order to analysis the organizational performance of SBL, I have analyzed regression model in a terms of qualitative. Recruiting & selection (independent variable) is directly or indirectly related to organizational performance (dependent variable) and hence the entire process follows towards the improvisation of organizational performance.
Since SBL motto is Highest Performance with Highest Ethics during the recruitment process the HR department needs to emphasize on interview that portrays ethical process. In the selection process the candidates must go through honesty test apart from other tests, which will help the HR department to have a better understand of the candidates. If the HR does not hire right kind of people then there will always be chance for those employees to fail in performing their task efficiently which may lead to poor performance thus low organizational performance.
All human beings posses certain kinds of knowledge and skills which needs to be nature for further development. So from a HR point of view, it is HR utmost duty to provide training to the employees not related to their job only but also training which can help the employees to develop personally. Training will make the employees specialized in their respective tasks which will enable them to perform better and hence will lead to high organizational performance or vise versa.
Compensations & benefits are also related to organizational performance. Good compensation and benefits package enhance employees to perform better in their task. There is more chance for the employees to be more devoted towards their work and hence will lead to the achievement of organizational goals. Moreover better pay scale within the industry attracts higher number of qualified candidates. So there will be more options for the SBL HR to recruit qualified people for the organization.
Performance appraisal is one of the most important steps in the HR process. It is very important to review employee’s performance and provide time to time promotion and increments. Performance review enhances employee’s motivation and job satisfaction. The HR needs to make sure that employees are treated fairly and equally in order to achieve better organizational performance. Moreover it also enhances employee retention with the organization.
In addition, employee relations are also important for HR to take into consideration. HR acts as a counselor and providing support to any employees facing mental disorder or family pressure in course of his/her day to day work or else such situation may hamper organizational work or activities performed by the employee and hence will lead to low organizational performance.
Thus I can conclude that the existing practice of HR in SBL in helping to gain competitive advantage but it is very important to sustain the competitive advantage SBL HR needs to make the policies and strategy more flexible and attainable for the organization as well for the employees. The proposed HR should be in line with the existing in order follows a better and more advance HR practice and management.
Proposed HR Practice & Management
In order to get the best applicant follows a vigorous and in-depth process. Since recruiting and hiring employees are costly, it is important for SBL ensure an effective recruiting and selection process of candidates. They have to keep in mind that all the applicants go through each step in order to be an employee of SBL.
Training is an integral part in developing an individual both personally and professionally. Though SBL provides lots of training program both local and overseas but also should focus on other training program related to job performed by different employees to enhance further the development of the employees to achieve highest performance with highest results.
Compensation as said earlier plays an important role in motivating the employees. Perks and incentive drives the employees to achieve their target faster and effectively. When company pays good compensation package there is more chance for the employees to be with the company. Thus can lead to higher retention of employees
Performance appraisal is one of the important aspects of HR policies and strategies, as it motivates and develops individual within the organization. Promotion, compensation etc are all related with performance appraisal. If proper and biased performance appraisal process is not followed then it would be difficult for SBL to retained qualified human resources and thus will not be able to achieve company’s goals.
Finally ethics, justice and fair treatment must exist in the HR management system of SBL. SBL being a compliant company does business keeping its ethical standards in mind. The organization must encourage the employees to perform their task with honesty and dedication. Moreover all the employees must be treated equally and with fair means so that individual can grow along with the organization. As said before workforce can provide a competitive edge for the company, to take the leverage SBL needs to hold on to qualified employees through EEO system.
In the end we can conclude that SBL HR must undertakes the needful actions to keep healthy relationship with the employees. If required HR must makes necessary correspondences with the union and the management. HR must plays a vital role as a counselor and motivator of the employees to diminish any situational or psychological discomfort if anyone come across in their day to day work.
Along with monitoring and guiding the total workforces, Human Resources Department of Siemens Bangladesh Limited may assist the employees to achieve their given individual target as well as moving towards the organizational goals.
Thus I can finally conclude that if SBL follows the proposed HRM practice and style they will get better competitive advantage and will be able to achieve its target more effectively and efficiently in future.
