TRAINING & D E V E L SIEMENS VS TESCO O P M E N T Nicola Spassov Bakardjiev • Chichester University • Student number: 1108696
Nicola Spassov Bakardjiev Chichester University Student number: 1108696
I N D E X
Page 5: Introduccion Page 6: Companies Page 7: Training Page 10: Development
Introduccion Siemens and Tesco are leading businesses in their respective environment. The workforce in both cases is more than 400.000. The size of Tesco has been reached by acquisition whereas, Siemens as a technology company has reached its size thanks to being innovative company throughout investment in R&D. In this report an investigation and assessment in their respective HRD(Human Resources Development) emphasizing in training, development, evaluation, and feedback between others. Human Resource Development is part of SHRM and, can be defined as an integrated approach to successfully perform employees capabilities and performance of team integration and individual contribution (Armstrong and Baron 1998).Thus, both reports are suggesting that a vertical integration approach has been made, where various strategic tools are pledged to align business team and individual objectives (Armstrong 2001).
5
The Companies
Identifying their needs.
Identifying their aims.
Staff that recognize customer need
Skills and first class knowledge
Tesco’s key element of identifying customer need is trough customer satisfaction measurement. Thus, organizations ergo personnel can understand customer behavior (Grigoroudis, E and Siskos, Y 2011). Further development and the current competency of their staff are of relevance to maintain this relationship.
Siemens is an innovative and talent development seeker company. As result, customers are driven to them by their innovative products. The main concern of Siemens is to be up to date technologically through employee’s knowledge and, keep innovating in order to be a leading technology company. Development program has to be implemented in order to keep this knowledge up to date.
Deliver what people need
Deliver quality product and service
Both have simple straightforward aims as part of their strategy. Simplified goals create understanding and helps achievement (Armstrong 2010).
Identify training needs. Right people right place right time… • Adaptation • Technical skills and competence • Wide range of skills who can
6
Right people right skills with the right job… • Competitive advantage • Talent and minimal knowledge gap • Fill a gap following a promotion of existing employees
Student number: 1108696
Despite the range of complexity within different roles in Siemens, Tesco needs to feel gaps as well(see figure above). Customer focus, working with others as well as personal behavior and leadership are the key elements for Tesco , whereas, Siemens puts emphasis on knowledge and talents. Evaluation is vital in both cases, however, Tesco underlines that evaluation trough 9 critical success factors helps to identify those employees with the potential to be the best leader. See appendix 1.1
Siemens, focus on filling knowledge gap e.g., trough retirement. The transfer of knowledge has to be pledge trough a development plan allowing competitive advantage, talent development and promotion.
Training Programe Before creating a training program, a system approach has to be done in anticipation to proceeding to the implementation of a planned training, Manpower Services Commission (1981). Identification of inputs (behavior), outputs (competence) and sub-systems is required. Both reports are mentioning their respective training and location, however, the implementation and execution is pretty much generalized. See different options of training delivery that could have been applied in both companies in appendix 1.6 On-the-job training through shadowing, mentoring, coaching and job rotationt Off-the-job training through course presentations qualifications
7
Training
On the job training Advantages
Disadvantages
• Cheap
• Effectiveness of learning, strongly influence by guidance of the coacher.
• Quick spot and solution to problems. • Productivity, learn while work. • Integration, work is put in practice.
• Bad habits can be transmitted easily. • Environmental distraction.
Both companies share similar procedure. Although, Tesco´s aims are personal development and leadership whereas Siemens aims to develop further knowledge adding value to their HR. It is formed of four sections, please see appendix page 1.2 It is essential to provide training to managers and team leaders on how to train and even more important, to stress what is expected of them as a key part of their jobs and will be one of the areas in which their performance will be measured (Armstrong 2009).
Tesco
Siemens
This approach might be more of the use by Tesco. The reasons:
Siemens uses this training as a form of knowledge transfer between different staff members, employee´s monitoring system and talents spotter. Siemens´s staff turnover is around 8% according to CEO of Siemens (SI) China Hao Ruiqiangthe. Mr Ruiqiangthe also mentioned that Siemens needs new talents constantly, therefore, it is essential to identify how to offer quality training and a prosperous career in order to attract new talents in Siemens.
• Complexity of job position e.g., customer assistant does not require to solve complex formulas. Systematic tasks in most job positions are carried out by senior staff members effortless; this applies to other more senior positions as well. • The requirement of knowledge from the scratch in most positions is not required. However, aptitude/attitude is essential. • Most training is delivered in-house or in-store by training staff or personnel managers (Paton, 2005). Staff turnover is around 29% according to Catherine Glickman Personnel director at Tesco(2005). Reduction of training cost trough in-house trainees whom are likely to be sell assistants, store assistant and in some cases shop managers is Tesco´s strategy in the lower and wider level of their business hierarchy.
8
appendix 1
Student number: 1108696
Off the job training Advantages
Disadvantages
• Training centers equipped with and staffed for training.
• Difficulties in re-adaptation to the workplace.
• Best way of acquisition of advanced skills and company procedures.
• Perception of learning and reality is in some occasions lost. The concept of ´action learning´ as developed by Revans (1989) is designed to mitigate this problem. • Job position replacement is likely to create job position clash on trainees return to the workplace (Lecture Ellis 2011)
• Systematic training techniques, special trainer who speed up knowledge acquirement, therefore, reduces economical expenditure.
Tesco
Siemens
The uses of this training form is often appropriate for specific skills, that usually involves having to attend external courses e.g., A-Level Option programme, which aims to develop new recruits into manager positions and familiarize them with Tesco´s objectives. The goal is, that thanks to off-the-training Tesco can smooth the way to a professional and rapid training. However, in some occasions qualified Tesco training staff offers them.
Technical apprenticeships, aimed to school leavers with intention to earn as well as learn. Siemens Commercial Academy, a four years programme regarded as an alternative to university aiming at students with interest in Business & Finance. The programme consists of rotation through various commercial placements including Accounting, HR, and Procurement and Corporate areas. The award is an recognize HDN in Business & Finance. Siemens Graduate Programmes, Siemens recruits graduates into three core areas of the business; engineering, IT, Business. The candidates enter with relevant skills, knowledge and experience. The programme offer chances to work in many different roles. Participants, gain further qualification such as IET(Integrate Energy Therapy) or IMechE (Institution of Mechanical Engineers)
9
Development
Siemens applies development programmes as the costs of recruiting staff are high. It is far more cost effective to keep good staff Siemens (2010). Well trained employees with good key skills. Tesco, relate it as a need to know whether investment in time and money is producing improvements. Also evaluation of personnel development is required constantly ergo, different techniques are implemented.
Personal Development Planning(PDP) The initial purpose of both companies may be to provide what Tamkin et al (1995)call a ´selforganised learning framework´. However, as commented by Tamking ´Some organisations have interpreted learning widely, encompassing all aspects of self development or included learn activities that have little to do with individual’s current job or even future career e.g., Tesco offering personal development to a stock boy. PDP can be used as an intrinsic/extrinsic motivational instrument i.e., self-generated interest, scope to develop skill, challenging work and opportunities for advancement. In the other hand extrinsic refers to increased pay, praise, or promotion.
Advantages
Disadvantages
• Translates corporate goals into individual,team,and divisional goals.
• Must have effective process of continuous development.
• It helps to clarify corporate goals
• Dificult to get consistency
• It is a continuous evolutionary process in which performance improves over time
• Has to be widely accepted and followed
• It relies on consensus and cooperation rather than control or coercion • It encourages self-management of individual performance • It measures and asseses all performance concerned with linking performance to financial reward. • It requires continuos feedback
10
• Companies sometimes blame external factors to save money e.g., recession affecting reward schemes. • Overshadow performance review • Too lengthy, lack of clarity • Focus on weaknes rather than strengths
Student number: 1108696
Tesco is keen enough to use SMART objectives in order to enhance Specific, Measurable, Achievable, Realistic and time framed objectives. In addition, objective standards should be defined and, tools should be provided in order to achieve them(objectives). Evaluation method used by Tesco is the 360-degree-appraisal, the evaluation and feedback is obtain from their superiors and in most occasions from different departments who have direct contact with the employee. This university report believes that by obtaining feedback from either superiors or people closely related, the level of subjectivity of the performance development is likely to be very strong. This could be done intentionally in order to maintain control over employee’s performance ergo to exploit their capabilities in order to grow Siemens has implemented the Siemens graduate Development Programme 2005, as a mean of development essential skills, integration of employees and a creation of employees feel that company value them. Siemens believes that the motivational theory of Herzberg and Maslow shows that staff work better whereas Tesco, mention none of them. Tesco’s case study suggest that Tesco’s motivational theory has close relation to the expectation theory which was formulated by Vroom(1964) i.e., relationship between performance and outcome must exist, motivation can be easily affected when extrinsic rewards are not worth the effort. Tesco’s effort to keep staff costs low and performance high can be de-motivational as this theory states. A possible although, difficult solution is to empathize more in an informal feedback rather than formal.
Conclusion: A diagram from each company is available (see appendix 1.4 /1.5)
11
References
Books Grigoroudis, E and Siskos 2010, Customer Satisfaction Evaluation, Springer, London. Armstrong,M (1996)A handbook of Personnel Managment Practice,6th edn, Kogan Page. Manpowr Service Commision (1981) Glossary of Training Terms,3rd edn,HMSO,London. Armstrong, M(2002) Human Resources Management Practice 8th edn ,Kogan Page. Revans,R W(1971) Developing Effective Managers, Logman,Harlow. Revans, R W(1989) Action Learning, Blond & Briggs, London. Armstrong and Baron , A(1998) Performance Management: The new realities , Institute of Personnel and Development, London. Vroom,V (1964) Work and Motivation, Wiley, New York. Ellis ,S 2011, Room 1.03 - Seminar Room, University of Chichester. Walters,B (1983) Identifying training needs, in A Handbook of Techniques and Strategies in Personnel Managment, ed D Guest and T Kenny, Institute od Personnel Managment, London.
Webs Nic Paton 2005, Supermarket Sweep: Tesco [online], Personnel Today, Available from: www.personneltoday.com [Accessed: 20.11.2011]. Unknown 2008, Siemens denies cutting jobs in china [online], China Tech News, Available from: www.chinatechnews.com [Accessed: 20.11.2011]. Siemens 2011, Training & Development [online], Available from: www.siemens.co.uk [Accessed: 26.11.2011]. CIDP 2011, Learning & Development [online], Available from: www.cipd.co.uk [Accessed: 26.11.2011]. Tescopoly 2011, Tescopoly Sweep Final [online], Available from: www.tescopoly.org [Accessed: 27.11.2011].