1. Human Resource Strategic Plan: Siemens
Vera Derpienski
Wanjiao Liu
Kimberly Znebel
MGMT4001 - Human Resource Planning
11/07/2011

2. Executive Summary
A strategic Human Resource plan aligned with organizational strategies
ensures ‘the right people are in the right place at the right time’. This holistic
approach to business management enables us to articulate a clear shared
strategy that supports and enables people, encouraging extraordinary
performance and results.
In order to connect a global community, be responsive to a dynamic economy
and be able to respond to threats and opportunities in the context of business
strategy as it relates to growth, innovation, and technology a completely
integrated, scalable HRIS platform is required
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3. TABLE OF CONTENTS
INTRODUCTION................................................................................................................1
1.1.Organization ...................................................................................................1
SITUATIONAL ANALYSIS...................................................................................................3
1.2.SWOT Analysis – Organizational Strategic Assessment.................................3
1.2.1.SWOT Analysis – Human Resource Strategic Assessment...........................3
1.3.TOWS Analysis – Tactical Alternatives...........................................................6
HUMAN RESOURCE STRATEGY..........................................................................................7
1.4.Human Resource Recommendation Plan.........................................................7
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5. Introduction
1.1.Organization
“Siemens is one of the largest and most diversified companies in the world of electronics
and electrical engineering.” (Siemens, 2009-2011) Siemens operates in more than 190
many countries, including North and South America, Europe, Brazil, India, China, Middle
East, and is one of the leading suppliers in the energy, industry, and healthcare sectors. In
Canada alone, Siemens employs approximately 6,000 employees who work on designing
and installing complex systems for different industries and single individuals. Their
employees work at 1,640 different locations, which include 176 R&D facilities serving
millions of customers and industries around the globe by providing effective innovative
technological solutions.
Siemens Health Care products and services include: hearing technology, customer
solutions, imaging and therapy system, and the most innovative whole-body MR-PET
which provides precise diagnoses, helps to decrease waiting times and increase hospitals’
efficiency and effectiveness.
Siemens Industry products and services include: industrial water treatment, customized
motors Velaro high speed train that can travel up to 350km/h using 0.33L of gasoline per
100km.
Siemens Energy products and services include: HVDC transmissions, industrial gas
turbines, wind turbines, OSRAM (energy-saving lighting solutions), power transmission and
distribution, gas and oil.
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6. Siemens Financial Services include: providing customers around the globe with capital to
purchase equipment, operate businesses, and improve infrastructure sector. For example,
Siemens “developed a financing structure for Russia’s state railway operator and played a
key role in an innovative wind power project in Grevenbroich, Germany. (Siemens Canada
Limited , 2009)
Siemens Real Estate Services include: providing and overseeing real estate services
around the globe, including construction of energy efficient buildings which can also be
used for office spaces. The company also offers Bosch home appliances, mobile phones
and much more.
The Company’s central office is located in Germany; however, it also has regional offices in
every country of its operation.
Siemens Headquarter in Germany Siemens Canada Limited Headquarters
Siemens AG 1550 Appleby Line Burlington
Wittelsbacherplatz 2 ON L7L 6X7
80333 Munich, Germany Tel.: +1 905 319-3600
Germany (German): +49 (800) 225 53 36 Fax: +1 905 319-7170.
International (English): +49 (69) 797 6660
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7. Situational Analysis
1.2.SWOT Analysis – Organizational Strategic Assessment
Location Factor Type of Factor
Favorable Unfavorable
Internal Strengths Weaknesses
1. Innovation 1. Unrealized ROI
2. Globalization 2. Limited natural resources
3. Diversification 3. Limitation of R&D centres
External Opportunities Threats
1. Acquisitions / joint 1. Intense competition
ventures 2. Risks conducting business outside of
2. New contracts Germany
3. Alternative energy 3. Direct competition from emerging
markets
1.2.1.SWOT Analysis – Human Resource Strategic Assessment
Strengths Impact
One
Innovation Educated, skilled labour forces ensure continued pride in workmanship
and quality of products and services.
If one company wants to expand its business and makes more profits,
being innovative is essential. However, if this company wants to
innovate, the company needs to retain the outstanding engineers and
performers. Therefore, HR department needs to adjust the company’s
reward system in order to retain these engineers. For example, gain
sharing, profit sharing and stock ownership.
Two
Globalization Opportunities to expand into EU, N. America, Pacific Rim & Asia
HR planning should fit with the overall business strategies of Siemens.
For example, it is important for the company to consider the local legal,
political, economic and cultural factors in each country.
Three
Diversification Extensive business portfolio provides Siemens with multiple market
opportunities that are less susceptible to unstable economic climates.
As HR employees in Siemens need to understand the transformational
and transactional roles within the HR function. Because Siemens has
many sectors in its business, HR employees need to understand that the
traits in different sectors are different. Therefore, HR should use different
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8. administrative systems for different sectors.
Weakness Impact
One
Low revenue in Pacific Rim & Overlooked opportunities to create more revenue which creates the
Asia greatest ROI as a result of low labour costs
Strategic: Implement a long-term HR Planning initiative to align with the
business strategy. Each region has different traits. Most countries in Asia
are developing countries and these countries have more population than
Europe, so Asia has more potential markets. Siemens should pay more
attention in Asian markets next year.
Two
Few natural resources Essential to partner and create alliances
Technology: One solution is to use current capabilities and develop
alternative material synthetically. Describe the HR initiative in more
detail
Three
Limitation of R&D centres Unbalanced development of R&D centres and employees in Pacific Rim
& Asia limits innovation and growth strategies
Technology: To ensure the optimal distribution of technological
information, HR should restructure the technological information system.
For example, Siemens should recruit more engineers in Asia and Africa.
Another way is to dispatch several engineers to Asia and Africa to train
the local engineers.
Opportunity Impact
One
Acquisitions and joint ventures Co-operating cross-industries; Absorbing / attrition throughout EU, N.
to drive growth America, Pacific Rim & Asia
Corporate Strategy leads to HR Strategy: Because Siemens co-
operate internationally the current infrastructure limits communication
resulting in different regions use the different strategies that are not
always effective in realizing organizational goals.
Two
New contracts and orders Flexible capital resource coupled with a well-educated and diverse skill
set
Human Capital: If Siemens recruits external employees or develops and
trains internal employees on the job, the human capital capabilities of
Siemens can be optimized. These employees could improve their skills
and expand their knowledge. It is good for employees to be well-
educated and develop a diverse skill-set. These employees then
become more actively involved in Siemens business strategy.
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9. Three
Increasing demand for alternative Legislation / government funding in support of green initiatives and
energy alliances in N. America
Economic Climate: Anxiety about interest rates and unstable currencies
adversely affect Siemens willingness to invest or borrow in support of
business growth, invest in employees and capital investments. (Siemens,
2011)
Threats Impact
One
Intense competition High labour costs directly impact the cost of products sold
Human Capital: An initiative to implement a global training and
development strategy to support internal growth to build and distribute a
shared knowledge base increasing insourcing capabilities.
Two
Risks associated with Complexities as a result of differences in economic structure, labour laws,
conducting business outside and staffing expectations
of Germany
Economic Climate: Siemens has to worry about the value of different
currencies because it affects Siemens’ ability to buy & sell products
internationally, and thus affects employment levels.
Three
Direct competition with High quality products are produces at a relatively low cost
Pacific Rim & Asia
Technology Factor: The ownership or the technological authority belongs
to Germany, but the products are produced at Pacific Rim and Asia and
protection of these rights are not guaranteed. Describe the HR initiative in
more detail
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10. 1.3.TOWS Analysis – Tactical Alternatives
The implementation of a globally integrated HRIS platform allows us to align HR
strategy with organizational strategy providing us with the tactical advantage of
expanding internationally. Training can be standardized to ensure company culture of
high quality product and service is understood and maintained. Performance
management becomes more meaningful and employees are able to become more self-
directed and engaged. Communication is enhanced with a well-synchronized plan that
values employees, where all levels of the organization are on the same page and
working towards the same larger goals increasing retention rates, reducing costs,
improving productivity and is the ultimate competitive advantage.
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11. Human Resource Strategy
HR steps to expand in emerging markets
Site selection Evaluating the talent pool
Labour laws and regulation Visa and work authorizations
Employment terms and employee entitlements
Staffing determination Using expatriates
Recruitment and retention Offer letters
Salary and benefits
Source: PwC, International assignment perspectives, volume 3, 2009
Expanding into an emerging market may position an organization to move forward on the
global scene, but without an HR strategy, that move may turn out to be difficult and costly.
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PwC, “Redefining the people frontier: Human resources in emerging markets,”
International assignment perspectives, volume 3, July 2009.
1.4.Human Resource Recommendation Plan
In order for Siemens to gain a competitive advantage and profitably manage a diversified
portfolio of business units their human resource strategy must align with the complexity of
their business strategy. A full-scale HRIS system that can be modular, dynamic and
responsive to the ever changing business environment and economy on a global level is an
essential tool towards achieving that objective. The cost of developing an in-house solution
in terms of time and money would be resource prohibitive considering the scope and scale
of this project. A Software as a Solution (SaaS) alternative is our recommended platform
choice. This service provides intuitive, integratable, scalable software without the
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12. investment in full-scale development, time and labour cost, support, hardware, and software
licensing. Individual components can be tested and rolled out to the user community one
part at a time to allow for user acceptance testing and recommended modification
improvement to ensure a successful overall customer satisfaction. A fully integrated HRIS
system that is defined by organizational strategy can now be utilized tactically (refer to
TOWS analysis), by supporting business operations and day-to-day activities.
The functionality the HRIS system will provide support of this objective include:
• Open and transparent communication channels
• Support and recruitment, promotion, succession planning and retirement
• Project support to ensure the most qualified staff are available and have
opportunities to participate
• A comprehensive compensation and benefits package that is directly tied to
organizational and individual performance.
Communication and transparency allows business leaders to focus on growth, innovation
and technology. Self-service options permit for more engaged workforce, allowing them to
become more autonomous and effective in cross-functional teams. Training and
Development can be designed to be aligned to the development of internal competencies -
many of which are unique technical skills and cultural norms. Challenging assignments that
expand the capabilities of staff and realize corporate goals can be collaboratively designed
between divisional managers and staff. As these capabilities being developed, insourcing
potential becomes greater assuring opportunities to be more responsive to both the internal
and external environment. Insourcing capabilities will be a key competitive staffing
strategy supporting:
• Retention
• Promotion
• Retirement, and
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13. • Succession planning
by utilizing a corporate wide database of current skills.
The self-directed staff support features of this component of the HRIS platform will enable
management and staff to monitor required skills and address gaps to assure a continuous,
skilled, capable workforce. By proactively focusing on our internal workforce, external
recruitment can be more cost effective and productive. Recruitment campaigns can then be
targeted to our specific needs ensuring the best fit for both the organization and the new
recruits. This supportive and responsible approach to staffing strengthens retention by
allowing all staff to become more engaged, challenged and valued. In return, staff is able to
offer their optimal efforts towards organizational success.
The HRIS platform can also be integrated into the day-to-day business operation through
project support functionality. Innovation, diversification and globalization are strategically
our greatest strengths (refer to SWOT). While a skilled, highly educated workforce who
takes pride in their workmanship consistently providing quality products and services are
tactically our greatest strengths (refer to TOWS). To remain competitive on a global scale in
volatile economic markets being able to insource the most qualified staff for a project (R&D
and customer consultation) is a mandatory (or short-term) goal. Capitalization on this ability
by matching identified organizational and employee development needs ensures we
continue to expand on our insourcing capability (long-term goal).An additional indirect
compensation opportunity is realized with this approach.
To tie all these components together and complete the cycle, the compensation and
benefits program must be aligned with business and individual capabilities and
requirements. We now have in place all of the pieces that will support this continuous
objective with our HRIS system through the communication, staffing support, and project
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14. support functionality. Organizational goals are clearly continuously communicated and
understood. Increased retention is also achieved in terms of implicit rewards because
employees are more engaged, challenged and aware of what is required to achieve
personal success by contributing directly to organizational success.
An innovative proactive HR strategy that appreciates and realigns the benefit of our prime
asset- people is the greatest competitive advantage to drive company goals, realizing
optimal sustainability, viability and value.
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15. References
Siemens. (2011). siemens.com. Retrieved November 1, 2011, from Global Website:
http://www.siemens.com/about/en/businesses/sfs.htm?
&lang=en_us&output=json&session-id=97fed8f67f37424a49530996f3e7c283
Siemens Canada Limited . (2009, June 1). Robert Hardt, Vice President, Industry Sector .
Retrieved October 25, 2011, from www.siemens.ca:
http://www.siemens.ca/web/portal/en/NewsEvents/Management/Industry/Pages/Rob
ertHardt.aspx?&lang=en_us&output=json&session-
id=97fed8f67f37424a49530996f3e7c283
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16. Appendices
Appendix 1 - Assignment
MGMT4001 — Human Resources Planning
FALL 2011 Group Project
Human Resource Planning objectives are strategic in nature, and most effective when linked with strategic, operational and day-to-day
work planning.
Objective
The objective of this assignment is for students to explore and demonstrate their understanding and application of the concepts,
approaches, skills and techniques required for a strategic approach to the Human Resource Planning in organizations.
Assignment
The project will be a case examination of an organization of your choice. You will be required to:
1. Describe the organization
2. Analyze the organization using a SWOT analysis
3. Use your analysis to make recommendations regarding the firm’s human resources planning.
What is a SWOT analysis?
To prepare you for this assignment we will be going through how to do a SWOT analysis in class. There are also excellent sources on
the web to get you started. Google SWOT analysis and start reading!!
Assignment Details
Organization research will be based on secondary sources only (e.g., web sites, annual reports, news stories, print material); students will
not be required to enter an organization to collect primary data.
The project will be completed in groups of 4 students. Each group must choose a company and submit the company name and list of
team members by the beginning of Week 4.
As a minimum, the written report should include (Also, refer to the grading information below):
A description of the company (maximum length 250 words) including:
• Name, address and location details
• A description of what the company does, products, services etc.
• Market details such as where they operate, who buys their products etc.
IMPORTANT NOTE – This summary must be in your own words, no cutting and pasting from the company web site.
A SWOT analysis of the organization including:
• 3 Strengths
o For each strength you must:
1. Explain why it is a strength and justify it with company data.
2. Describe an HR Planning initiative that will maintain, use or capitalize on that strength
• 3 Weaknesses
o For each weakness you must:
1. Explain why it is a weakness and justify it with company data.
2. Describe an HR Planning initiative that will improve the stated weakness
• 3 Opportunities
o For each opportunity you must:
1. Explain why it is an opportunity and justify it with company data.
2. Describe an HR Planning initiative that will exploit or benefit that opportunity
• 3 Threats
o For each threat you must:
1. Explain why it is a threat and justify it with company data.
2. Describe an HR Planning initiative that will mitigate that threat
A Recommended HR Plan
Given your findings, recommend an HR plan for your company.
The typed report must be submitted by dropbox no later than 11:59pm on Monday, November 7th, 2011. The report should be no
more than 10 pages (plus a cover page and a page for works cited). Please use a font size of 12. Source all your information. Use
endnotes and provide a list of works cited.
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17. Appendix 2 - Rubric
Evaluation
This project is worth twenty percent (20%) of the students overall grade.
Group Project Grading
Weighting - % Requirement Description
5 Submission of Group Work Organization template by week 3 in
the dropbox
10 A description of the company (max 250 words) including:
Summary is in your own words, no cutting and pasting from
the company web site.
15 SWOT analysis - 3 Strengths
Explain why it is a strength and justify it with company data.
Describe an HR Planning initiative that will maintain, use or
capitalize on that strength
15 SWOT analysis - 3 Weaknesses
Explain why it is a weakness and justify it with company data.
Describe an HR Planning initiative that will improve the stated
weakness
15 SWOT analysis - 3 Opportunities
Explain why it is an opportunity and justify it with company data.
Describe an HR Planning initiative that will exploit or benefit that
opportunity
15 SWOT analysis - 3 Threats
Explain why it is a threat and justify it with company data.
Describe an HR Planning initiative that will mitigate that threat
15 A Recommended HR Plan
Given your findings, recommend an HR plan for your company.
5 Overall Report Formatting
5 Group Participation – Groupwork Participation Confidential
Assessment handed in in the DropBox
100%
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