Organisational Change

Assignment

Organizational Change

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Introduction:

Siemens is a German global powerhouse in electrical engineering and electronics. The company has 405,000 working staffs to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Over the years, Siemens has developed 3 main portfolios: Industry, Energy and Healthcare. Siemens Process Analytics (PA), one of the business unit of Siemens Sensor & Communication, is a leading provider of process analyzers and systems.

The recent strategy of the Siemens group was: Growing profitably in the marketplace and Keeping our costs competitive with lean internal structures.

The change to be described here, occurred in October 2009 start of our new fiscal year, but the process of change started one year earlier. It was part of a global cost reduction which resulted of 20,000 jobs cut worldwide.

This assignment will describe first the change of process that Siemens decided to launch in South East Asia and the context in which it occurred. Then, I will propose an assessment of the success of the management of the change of process and finally a critical analysis involving Dunphy&Stace’s2 contingency approach and Hickson&Pugh’s group of societies1.

Part 1 : Description of the process change and context 1017 words

1. The Nature of Change

The figure1 below shows the main concept of the change decided by Siemens HQ.

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Figure1: Sales Hub Concept

Siemens PA management defined a list of C-countries (Ranking: A, B, C according to their performance) regrouping the non-performing countries in South East Asia. According to this concept, the listed countries will no longer be responsible for selling and promoting the Siemens Process Analytics portfolio. It will be handled by a structure, called Sales Hub, newly created and based in Singapore and responsible for selling those products through local distributors in...