Training and development as a strategy for growth a siemens case study
Reasons for emphasizing training and development programs for personnel in todays business world includes:. To readily create a pool for available and adequate replacement of personnel who may be leaving or moving up in the organization. Training and development programs motivates employees to develop a greater sense of self-worth, dignity and well-being.
Training and development help employees to learn how to use the resources in an approved fashion that allows the organization to reach its desired output. According to Cascio training and development is a package consisting of planned programs designed to enhance performance at the individual, group and at organizational levels.
The process of training and development in any organization is aimed at solving significant problems, proper analysis of its contribution to the effectiveness and efficiency of the organization and an aid in adjusting to work environment that can increase the capacity of individual or group in contributing to the attainment of the organizational goals Isiaka Sulu Babaita, Training and development programs in an organization lead to increased productivity, it reduces the employee turnover, and it enhances the employees efficiency resulting in financial gains. The figure shows how training and development programs are interlinked with the business environment, changes and challenges, the learning process and ultimately resulting in business excellence.
According to Daniel training should not be taken as a luxury or a remedy to train weak employees, it should not act as a group of physicians who minister organizational ills, but it should act as an agent of change.
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Further the training unit should understand the strategic directions of the organization and its core functions and design and implement the training session accordingly and should move the employees in direction incompliance with its core values. In the current scenario the organizations have realized the importance of training and development and shifted their thinking accordingly.
It is evident to the organizations that training is where skills are developed; attitudes of employees towards are changed, ideas are evolved and organizations are reinvented. Training and learning new skills will increase the sales build effective and efficient team, improve the quality, standards of work and meet a broader range of objectives hence creates a new organizational culture.
Training and development has grown its concerns not only to help individuals to improve their skills, enhance their knowledge, but also helps whole organizations and sub departments grow and develop Isiaka Sulu Babaita, Siemens is one of the leading technology business and one of the largest electrical and electronics engineering companies in the world.
Siemens understands the fact that for a business to be competitive, it is important that it has the right number of people with the right skills in the right jobs. For this purpose it carries on work force planning that enables it to audit its employees, their skills and identifies the areas where their is a skills gap necessary for its objectives.
As Siemens has a business focused on innovation therefore it needs to anticipate and respond rapidly to external business environment such as climatic change.
To tackle with the climatic changes and other internal business changes Siemens either recruit new employees with the required skills or train the existing employees to develop their skills in order to fulfill their business demands. Siemens train their employees either by providing on job training or by off job training. Further siemens has three main development programs for the entry level people who start their careers with siemens, who are benefited from the training and educational programs to enhance their skills required by the company.
These programs are:. An appraisal system named as Performance management Process is used by Siemens to measure the effectiveness of its training and development program, this process helps to focus everyone on the developing needs of the business. There are several benefits for Siemens in using appraisal. It can. Siemens needs motivated and well trained staff that have up to date skills in order to be competitive, as it understands the fact that well trained staff is an asset to the company therefore provides its staff with a learning environment where they not only enhance their knowledge but also sharp their skills.
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The policy deals with recruitment, remuneration and training and development and emphasizes individual responsibility, strong leadership and a commitment to life-long learning. Performance appraisals are the feedback mechanism that helps the organization to measure the change in the skill level of employees. Organizational goals are high-level aspirations set to guide the development programs of a business.
Organizational goals also refer to the low-level goals within departments and at personal level set across the business towards the achievement of the organizational goals. Therefore, organizational goals refer to the sum total of the goals an organization sets to achieve its objectives. Goal unity is very vital in organizations. It refers to the ability to align all goals set in the organization to overarching aims. Goal unity makes the organization function like an organism. All the efforts that the members of the organization make contribute towards the achievement of the goals of the organization.
The role of goal unity in an organization is that it enables all the members of the organization to align their abilities and resources towards the achievement of the main goals of the organization.
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This is the basic ingredient in the success of businesses. When an organization achieves goal unity, it experiences three distinct advantages. First, it experiences synergy. Synergy is the tendency of people working as a team to achieve more than the sum total of their individual performance. The achievements that an organization makes because of goal unity give it a unique advantage in productive terms compared to similar organizations that have no goal unity. Secondly, goal unity leads to better resource allocation and prioritization. An organization with goal unity will receive better returns for a given amount of resource outlay.
Such an organization is also less likely to waste its resources. Thirdly, goal unity is the basis for the development of certain strategic advantages. The possession of goal unity by an organization shows that the organization has a focused approach to dealing with issues. In this sense, the organization is able to adapt to change.
Training for employees and organizations
It is also able to align its resources to take advantage of any opportunities. In the case of Siemens, the company achieves goal unity by developing its overall goals from the individual goals of each employee. The elaborate components of the high performance culture ensure that there are multiple channels of attaining goal unity. Performance related pay refers to financial considerations or special rewards offered to an employee based on their output. It differs from the normal pay because it arises from the performance of an employee.
Its role is to motivate employees to perform better. For instance, a sales representative may get performance related pay associated with the amount of sales. Performance related pay rewards results and not effort.
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It is possible to find a correlation between performance and results, yet it is also possible to put much effort in a job without producing measurable results. The first advantage of performance related pay is that it insulates the organization from payments not associated with results. In a sense, it ensures that the organization gets value for its money. Secondly, it serves to motivate high achievers in the organization. It shows that an organization values those that bring in the best results. Thirdly, performance related pay makes sales planning very easy.
It is easy for it to know how much money it will make out of a given business deal since the only costs the organization incurs are costs associated with successful sales. The disadvantage of performance related pay is that if an organization relies on performance alone as the basis of pay, some employees suffer. For instance, a receptionist cannot do anything to increase the number of people served at the reception.
The only way to determine whether a receptionist qualifies for performance related pay is by taking qualitative measurements. Such measurements are very difficult to quantify in monetary terms. The second disadvantage is that beyond a certain point, money loses its motivational power. Employees look for elements such as job satisfaction, opportunities to grow, and increasing responsibilities.
Failure to recognize these changing needs make performance pay ineffective. The third problem with performance pay is the measurement of performance. In some jobs, it is very difficult to know how to assign a performance value to the nature of work. For instance, is there a straightforward way of measuring the performance of a delivery truck driver? Is it the number of kilometers covered, or is it the hours spent at work? Which of these two options generates value for the organization, and makes sense to a truck driver?
Performance related pay, unlike scientific management does not require elaborate measurements. Scientific management gives an organization more work in terms of the identification of parameters to use in the planning and management of work. Performance related pay simply finds a parameter that meets the objectives of the organization and usually leaves the details of the work to the specific employees.
Siemens added functional and technical topics to complement the big picture. Learning formats consist of self-assessments, face-to-face workshops, webinars, peer-group interaction and self-learning. Interpersonal and professional skills are helping them to be more versatile, overcome challenges, understand the business perspective, have powerful conversations with business leaders, manage stakeholders and help shape the business strategy.
IT is now empowered to drive innovation working hand-in-hand with the business using new methodologies like Agile and Design Thinking to quickly prototype and test new ideas before investing in a formal project. All business partners can exchange experiences and lessons learned within their community to sustain the change.