hrp final ppt

7/21/2019 Hrp Final Ppt

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Building a structure todrive

Performance &Responsibility


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Case revolves around the most turbulent

times in the companys history.

Charges of rampant corruption, briberybrought negative publicity for the company.

Protability and employee satisfaction was atan all time low.

Under this critical situation, Peter Loscherbecame the CE in !uly,"##$, replacing theincumbent %laus %leinfeld.

&ntroduction


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'ounded in ()*$ by +erner von iemens and

his partner, !ohann -eorg als/e in 0erlin.

iemens grew rapidly, operating on a globalscale, with presence in almost all nations.

1ransitioned from a functional reportingstructure to a divisional structure in (2)2.

1his new structure placed greater emphasis onlocal responsiveness and enabled iemens tobenchmar/ against its peers.

Company 0ac/ground


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'unctional vs 3ivisional

tructure 0usiness departmentali4es

according according to the

activities performed byindividual groups

5 clear chain6of6command

Communication 7owsfreely within departments,

but less so betweendepartments

8ight complicate strategicdecision6ma/ing

0usiness

departmentali4es

according to geographicalareas, mar/ets, orproducts and services

3ivision heads havedecision6ma/ing power

3uplication of e9orts andincrease in costs

&ntra division among

divisions


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Corporate 8anagement

tructure


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Corporate -overnance


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'eatures of iemensstructure

Coordination among iemens businesses and

corporate technology :C1; for a solutionfocused rm

Local 8s iemens

1eam based 8anagement by the 'our eyes

principle 'our eyes principle = a two person team

consisting of technical head and commercialhead


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1wo year restructuring programme called

'it*8ore.

iemens ne, a program to simplify largescale pro?ects for global customers.

'ocus on global developments.

5uthoritative


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0ribery scandal led to low condence among

clients and employees.

'riction between head@uarters and localregions.

low and time consuming decision ma/ingprocess.

eartless management by %leinfeld.

&ne9ectiveness of four eyed principle.

Problems at iemens


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Replaced 4 eyes principle with CEO principle

Emphasis on transparency

Corporate


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Consensus and group decision ma/ing was

abolished.

Established one individual for onemanagement team.


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Before Loscher After Loscher

rgani4ationstructure

compleA impler:cleardelegation ofauthority;

8anagement style 5ggressive targetoriented management

-oal driven /eepingfuture in mind

Culture 3emotivatedemployees only

driven by target

8otivated employeeswhere their feedbac/

was appreciated

3ecision ma/ingprocess

* eyed principle CE principle

Comparison between the twoeras


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Consolidation of the businessB (# operating

groups to sectors

rgani4ation of the (2# countries into ($regional clusters

8inimi4ation of the administrative andcoordination activities within individualcountries

Establishment of Competence centers

Corporate

reorgani4ation


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(st dimensionB -lobal business6 ectors,

3ivisions and 0usiness units

"nd dimensionB


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'ocus on local customi4ation

3eveloping a spirit of entrepreneurship DisionB iemens6the pioneerF

Establishment of 8ar/et 3evelopment 0oards:803s;

iemens ne approach to customers

iemens


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8iddle 8anagers as the /ey vehicle to get to all

organi4ational levels

5n open door policy and strong internal communications Encouragement in the form of appraisals and

recognition to enhance employee productivity

PGL targets to be shared by global business andregional units

Elimination of the two6dimensional to reducebureaucracy and redundancy in sales and supportactivities and eliminate con7icts and boost collaboration


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1han/ Iou

hrp final ppt

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