Assessment Criteria 1.1 Explain how models of organization culture can be used to achieve
organizational objectives.
Siemens in order to achieve its strategic and operational objectives of expansion into automation and
digitization need to enhance its corporate culture as well along with other business strategies. The company
can consider the various dimensions of culture as proposed by Geert Hofstede (Browaeys & Marie-Joelle,
n.d.). As per Geert Hofstede there are five cultural dimensions which are:
Power distance: the power distance is defined as the extent to which powers are dispersed unequally in the
organization. As per these dimension Siemens need to develop a culture of cordial relationship between
superiors and subordinates bridging the status gap. Managers should not be viewed as dictator by its
subordinates.
Individualism vs. collectivism: In case of Individualism culture employees are more self centered and
maintains less interpersonal relationship with others in the organization whereas in a collectivism
organizational culture group integration is of high importance. Siemens through effective training and
development should try to promote group cohesiveness in the organization.
Masculinity – Femininity: This dimension is related to the gender discrimination in terms of values. Siemens
should maintain a balance in distribution of job roles, responsibilities and remuneration between its both
male and female workers.
Uncertainty Avoidance: This relates to the tolerant point of a member to face any uncertain circumstances in
the organization. Siemens through its tactful operation strategy need to develop a culture of low uncertainty
avoidance.
Long-Term vs. Short-Term Orientation: A long term orientation values job more than customs and relations
whereas organization inhibiting short term orientation values its worker and its belief system. Siemens need
to be sensitive towards its organizational as well as employee’s value system.

Assessment Criteria 1.2 explain the difference between organizational and national culture
Germans believe in focusing on the task assigned to them. One of the dominant issue and central part of all
business interactions is the performance of the task. German culture also defines the type of communication.
The relationship level takes up a more subservient role in proficient life. Additionally, there are numerous
bylaws, regulations, techniques and methods in the German companies. Written agreements and contracts
are preferred by the German business people. Non-compliance to these rules and regulations may invite

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penalties and rigid consequences. Though this culture foster consistency and mutual obligation yet it leaves
no room for suppleness and individual fortitude (Expatica Germany, 2014) . Siemens also follows the same
corporate culture of their home country to a great extent.

(Cheng & Seeger, 2011) carried out a study to assess the corporate culture of two different countries and
find out whether the incompatible cultures may lead to synergy effect or not. He found out that
understanding of cross culture is indispensable for mergers and acquisitions. Siemens is considered as the
model of German engineering expertise. It has long-standing custom of worker synchronization and
influential employee’s assemblies. Siemens also follows the German pattern of following standard operating
procedures and processes. Moreover, Siemens observes a systematic process for decision-making and lay
emphasis on detailing and performing task in order assigned.

As per the report of (CGMA, 2014) , Siemens have executed transparency in their meetings by encouraging
uncluttered debates on moral issues and the ways to handle them. Such unambiguousness includes the
exterior reportage of obedience linked progresses (Passport to trade 2.0, 2014a) stated that the Germans have
inclination to be extra casual about time and constantly make certain they can manage time for the purpose
of marketing. It also asserted that Germans are culturally aware and they have anticipations that others
should understand them as an independent country. They are straightforward in their language and
interpersonal communications in the organizations are largely belligerent and emphatic. Hinner (2009)
stated in Cheng et al (2011) that Germans think that trivial talks are spoiling time activity as it has nothing to
do with the work they are doing. German executives tend to offer their views in more of an argumentative
style and open vocal belligerence appear to be endured more in the German society.

Germans observes low degree of flexibility and spontaneity in attitudes and values. They have clear
demarcation between the things and people which enable them to live an organised life. Unexpected changes
in the transactions in the business are not welcomed by them even if it is beneficial for them and they abhor
absurdity in business as they take it very seriously. Moreover, colleagues do not require or presume to be
admired is the corporate culture of Germans (Passport to trade 2.0, 2014b) . Siemens observes the culture of
maintaining quality in their organization. Executives and employees in the organization are highly motivated
and work towards improving the quality standards. In addition to this, ownership and equity culture
prevalent in Siemens nurture a sense of belongingness among the employees of the organization. Thus,
Siemens’ culture and German culture are more or less same and quite well aligned.

Assessment Criteria 1.3 analyze the corporate cultural profile in an organization

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Siemens is one of the most successful companies of Germany in the field of worldwide electronic market. It
attained such a respectable position by delivering sustainable value to their customers (Siemens, 2005) .
Siemens was formed in 1847 in Berlin by two men namely Telegraphen-Bauanstalt von Siemens & Halske.
It emerged as one of the most successful and highly reputed company of Germany. Siemens attained a
leading position with the invent of telegraph, dynamo and primary x-ray machine for the human beings
(Simens, 2008) .

Siemens is one of the premier corporations of Germany. It is one the giant corporate in the field of
electrochemical and electronics. Like any other German Export firms, Siemens AG also targeted U.S.
markets. Investments in research and development have been made by Siemens aggressively. It has a
remarkable position amongst companies of U.S. as the recipient of copyrights and donor to prominent
American universities and academies for co-operative research plans. It’s because of qualified German
public and training system which facilitated in essential human capital required by Siemens to be at leading
position in highly competitive electrochemical industry (Siemens, 2009) . As per the report of (IBEF, 2013) ,
Siemens is international participant in integrated circuit technology, engineering and electronics. A SMART
strategy was launched by the company in 2009 focussing on affordability, reliability timeliness and
maintenance free perspectives of the products. Additionally, the company transformed from being
workforce-centric from consumer-centric. The company claims of having highly contended employees.
Siemens stands as the largest technology company of the world. It has made many technological
modernizations in the areas of power, healthcare, engineering and substructure (Siemens, 2014b) . One of the
key strategic step taken by Siemens is the localization which is the key behind is success all over the world.
Strategic initiatives taken by Siemens and launching at appropriate time, emphasis on the workforce and
escalating sales channels leads to the prosperity of the company (SMC, 2015) .
Compliance with the internal and external rules and regulations of the company is required for the achieving
full social potential of corporate responsibility. Observing compliance with the law and regulation is seen as
the part of their self-image and corporate culture by Siemens. The company finds the need to outlook
acquiescence as a face of their corporate values and as fragment of a dynamic company and administrative
culture. This modification is buttressed by the Compliance Program of Siemens, which is alienated into the
following three mainstays: Prevent, Detect and Respond (Siemens, 2013c) .
Siemens is of the view that a company cannot reap the benefits of its outstanding strategies if they lack in
strong culture. The company therefore aims towards fostering ownership culture which encourage every
employee of the organization to strive towards long term success of the company (Siemens, 2014b) .
Siemens has a culture of strict adherence to company policies and values. The analysis also provided that the
company lays high emphasis on duly complying with its corporate social responsibility. In addition to this,

customers are the most important stakeholder in company’s culture. But there are inherent loopholes in the
company relating to leadership gaps and communication gaps.
Assessment Criteria 1.4 Discuss the impact of an organization’s corporate culture in achieving its objectives
An organization’s cultural climate has significant impact on the way it attains its objectives in the short-run
and long-run. Siemens aims at customer satisfaction, quality maintenance, strict policy adherence and
stakeholder development (Siemens, 2011) . As per the report of (Siemens, 2011) , the quality culture
prevailing in the organization pay emphasis on the customer as the key factor for the continuous success of
the organization. They are keen in incessant enhancement of their quality as a part of their top priority. A
satisfied customer is fundamental to success of any organization. He expects the quality for the price paid by
him. In Siemens, executives are aware of importance of maintaining quality and workforce are categorized
by their extraordinary mind-set of quality control. Managers of Siemens are of view that success of their
organization is reliant on their inventive fortes and exceptional quality of their merchandises and solutions.
In the report presented by (Siemens, 2014b) , the ownership culture is widespread in the organization which
is responsible for the sustainable business practices prevalent in the company. In Siemens, every individual
assumes that fulfilling his or her responsibility is imperative for the success of the company. Right from the
board of director to trainee embrace the culture to treat the company as of their own and act accordingly.
The company rely on strong culture for its long term success and believe that worker stakeholders perform
sensibly and are focused on to the long term when they unswervingly contribute in their company’s
achievement.
People oriented approach adopted by Siemens nurtures diversity of experience and expertise and is reflected
in their success and they have versatile workforce which through their knowledge and expertise strive for
high productivity and profits. Siemens believe the company is obliged that it has employees that identify
with the organization and are highly committed towards the positive development of the company. The
equity culture is prevalent in organization which fosters the sense of belongingness and responsibility
towards the organization. Siemens believes this culture to be decisive for the long term success of the
company (Siemens, 2014a) .
Assessment Criteria 2.1evaluate the existing climate of an organization
Organizational climate is defined as the perception of an employee regarding an organization’s policies,
values, practices, behavior and environment to cite a few. A crucial relation lies between organizational
climate and individual’s performance and behavior (Srivastava, 2005) .
Siemens global business strategy of sustainability forms the core aspect of its internal and external
organizational climate. Siemens internal organizational climate is build of integrity in its business operations
as it follows legal and ethical code of conduct in dealing with internal as well as external business partners.

6
The company maintains ethical standards in its financial activities as well. Siemens have got employees
from different cultural background and the company manages diversity through imparting effective training
and development program, maintaining a non discriminative attitude towards employees from other nations
and providing equitable rights to both men and women (Siemens, 2013b) . The company discharges its social
responsibility towards its employees and society by following policy for environmental protection, health
management and occupational safety in its business activities (Siemens, 2013b) . To enhance employee’s
welfare in the organization Siemens extended the maternity leave period from 120 days to 180 days in 2011
and also adopted work from home policy for employees in 2013 where employees could work from home
once per week (Siemens, 2013b) . The company also provides its employees an opportunity to purchase
company’s stock. It spent around dollar 42.4 million in 2013 for training and development program to
enhance employee’s skill and maintain high performance culture. It also introduced leadership development
program to build future leaders for beating global challenges. Siemens was honored as among the Best
Companies in People Management practices in 2013 (Siemens, 2013b) .
Siemens external organizational climate framework is build of maintaining cordial relationship with its
various stakeholders. It provides superior customized service to its customers globally. It maintains amicable
relation with its investors by providing quarterly reports, annual reports and other relevant information
timely. In order to augment relation with suppliers globally it imparts training to enhance suppliers skills
free of cost. Siemens also maintains close contacts with the government, policy makers and other
administrators for its organization interests (Sustainability Report, n.d.) .
As per the report of (Simenes, 2007) , there are few companies in the world that boasts a long tradition and a
corporate culture. Siemens is of one them where management of the organization take due care of the social
responsibility while making any corporate decisions. Ever since the company was founded, it has always
been committed towards transferring its legacy to the next generation. The company’s culture exhibits itself
as a fellow of society and that they are modelling upcoming era not only with their inventions, but also with
their instruction and on-going edification. Since long, enduring discourses with inner and outer groups of
investors is inevitable part of corporate culture of the organization. Siemens corporate culture encompasses
unbiased radical posture, admiring liberty of outlook and regarding the encountered diversity in their
overseas undertakings as enrichment of their business as well as corporate culture.
Assessment Criteria 2.2 Recommend ways to improve corporate climate in an organization
Siemens, the engineering giant manufacturing organization in German faced a scandal in 2006 against
bribery. Employees in the organization were accused of paying bribes in millions of Euros to the officials in
order to gain contracts from large organizations and even government around the globe. Due to this business
irresponsibility and unethical act Siemens lost its creditability and goodwill in front of its investors,
employees and society as a whole. The organization was declared incompetent in handling business affairs.
As a response to the scandal and to maintain integrity Siemens appointed external investigators from New

7
York law firm to carry out a rigorous internal audit in the firm. After the audit process several reasons
popped out which were held responsible for the scandal to take place such as a belligerent expansion
strategy adopted by the organization due to which employees began to perceive that bribery is a part of the
corporate climate to achieve tough performance targets and meet business objectives, complex
organizational structure and poor quality of accounting system (Graham & Gillespie, 2012) .
Poor leadership quality of the managers in Siemens was one of the greatest reasons for such scandal to take
place. In order to enhance the corporate climate Siemens can follow some of the recommendations as cited
(George Bradt, 2013) . Siemens need to change its corporate culture and environment due to its rigorous
expansion objectives in order to sustain its competitive advantage. Employees in the organization need to be
adaptable to organization’s cultural changes which can be developed by imparting effective training and
education.
Employees should be clearly communicated regarding the company’s value system vital to achieve present
and future organization’s success where there should not be any place for unethical behavior. Employees
need to develop a responsible and positive attitude towards organization’s culture and enhance skills to
maintain good relations with the organization’s various stakeholders such as customers, investors to cite a
few. Above all the organization need to conduct effective learning and development session for leadership
development in the organization. Employees at all level need to possess a leadership quality to decide upon
right and wrong and to meet the business objectives responsibly and ethically.
Assessment Criteria 2.3 propose a framework of organizational values that meet the specific strategic and
operational needs of an organization
The strategic and operational objective of Siemens is to expand into the world of automation and digitization
after electrification (The Economists, 2014) . The company aims to reduce the existing bureaucracy in its
organization, develop and expand business portfolio and implement projects more efficiently (The
Economists, 2014) . In order to meet its objectives the organization has plans to undergo a change in
organizational structure with a reduction in number of group divisions and downsizing of employees
followed by redeployment of few staffs. Along with a change in organizational structure Siemens believes
that a change in organizational culture is essential for effective expansion and operation of business
portfolios (The Economists, 2014) .
A change in organizational culture would mean a need to introduce new competing organizational value
framework to meet the global challenges and change management (Cameron, 2006) . Leaders in the
organization need to undertake the responsibility of building value system and diffusing the same into the
employees of the firm. Signifying values forms a pillar for any strategic and operational decisions. Values
once framed, understood and followed speeds up the business activities and decisions (Madhavan, n.d.) .

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