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HR PRACTICE AND PROCEDURES at

ABSTRACT

This coursework is a requisite for the course Recruitment, Selection, Assessment,

Performance and Reward. The main objective of this coursework is to check the HR

procedures and practices at Siemens. In order to do that, emphasizes are given mainly on

the current HR practices at Siemens and on the effectiveness and efficiency of those

practices. Besides, some recommendation has been provided better utilization of the

company’s HR department.

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TABLE OF CONTENTS PAGE NUMBER

1. INTRODUCTION 5-7

1. A. About the Company 5


1. B. History of Siemens 6
1. C. Vision of Siemens 6
1.D. Mission of Siemens 6
1. E. Aim of this project 7

2. HUMAN RESOURCE PRACTICES AT SIEMENS 9-20

2. A. Job Analysis 8-10

2.B. Demand and supply forecasting 10-11

2.C. Selection and recruitment 12-13

2. D. Training & Development 14-17

2.D.i. On the job training 15

Shadowing 15

Mentoring 15

Coaching 15

Job rotation 15

2.D.ii. Off the job training 16-17

Apprenticeships 16

Siemens Commercial Academy 16-17

Siemens Graduate Program (SGP) 17

2.E: Performance appraisal 17

2.F. Compensation and benefit Siemens 19-20


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2.F.i. Performance-related Compensation 19

2.F.ii. Typical Pay Composition 19

Fixed pay 19

Benefits 19

Risk protection 19

Health and well-being 20

Pensions 20

Fringe benefits 20

3. EVALUATION OF SIEMENS HRM 21-25

3.A. Evaluation of job analysis and workforce planning 21

3.B. Evaluation of selection and recruitment 22

3.C. Evaluation of training and development 23-24

3.D. Evaluation of performance appraisal 25

4. RECOMMENDATION 26-28

4.A. Anticipate external business environment 26

4.B. Utilize the opportunities 26

4.C. Emphasize on action learning 27

4.D. Increase pay scale and incentives 27

4.E. Better coordination 27

4.F. Balance dissatisfiers against motivators 28

5. Bibliography 29-30

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1. INTRODUCTION

1.A. About the Company

Siemens is one of the world recognized electronics and electrical business (Siemens,

2009). The company has its root in Munich of Germany. The worldwide operation of

Siemens is controlled from this Munich Headquarter. In United Kingdom, Siemens

control their local business from its local headquarter in Bracknell at Berkshire (Siemens,

2009). Siemens has been positioned among the top 3 electronics and electrical

organizations all over the world. The company designs and manufactures products and

services for both household customer and professional customer. It operates in three main

sectors: industry, energy and healthcare (The Times 100, 2009). Siemens is a very big

company which is employing around 450,000 people and which has a annual revenue of

£53 billion in the year 2008 (The Times 100, 2009). United Kingdom is one of the most

important hubs of Siemens business.

Siemens people all over the world.

Source: Personnel today, 2009.

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1. B. History of Siemens

Siemens operation has been started by Willam Simens at England in the year 1847

(Siemens, 2009). Simens AG (2009) divided the development stages of Siemens at seven

steps as follows:

1847 – 1865: Initial Stage of Siemens

1865 – 1890: Triumph of internationalization

1890 – 1918: Growth through partnership and consolidation.

1918 – 1933: Return to the world market and unity within the “House of Siemens”

1933 – 1945: The National Socialist economy and the war years

1945 – 1966: Reconstruction and emergence as a global player

1966 – 1989: New markets and areas of busines

1989 – 2005: The age of globalization

1.C. Vision of Siemens

The vision of Siemens is “A world of proven talent, delivering breakthrough innovations,

giving customers a unique competitive edge, enabling societies to master most vital

challenges and creating sustainable value (Siemens AG, 2009)”.

1.D. Mission of Siemens

The mission of Siemens is ‘Throughout global network of innovation and strong local

presence, pooling and developing knowledge and competencies within a high

performance organization, aiming to create outstanding value for clients, employees,

shareholders and society (Simens AG, 2009)’.

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1. E. Aim of this project

The aim and objective of this research report is to explore overall Human Reources

Management of Siemens, i.e. how Siemens recruit people, how they maintain and

improve skill and efficiency of their employee etc. According to Warner & Heinrich

(2009), Siemens always emphasize on their outstanding quality on the way to their

suceess. Siemens achieved this outstanding qaulity by not just only for their products

quality, the people inside Siemens also plays a vital role in the succes of Siemens.

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2. HUMAN RESOURCE PRACTICES AT SIEMENS

2. A. Job Analysis

According to Alan Price (2007), the process of job analysis is that of gathering and

analysis job-related information. This includes details about tasks to be performed as part

of a job and the personal qualities required to do them. Job analysis process is divided

into two parts. First one is job description and other part is knows as job specification

(Graham & Bennett, 1989). Job description is the details of responsibilities and tasks to

be associated with given position and job specification is related to identify the

knowledge, skills, abilities, and other employee characteristics needed to perform a job

(Graham & Bennett, 1989).

Siemens need people for various departments and roles and siemens always provide job

description and job specification for its entire jobs.

Example of job description and job specification at Tesco

One of the most important job positions in Siemens Field Telecoms Engineer &

Technical Support Engineer. For this position, Siemens’s job description and job

specification has been given below:

According to Siemens Recruitment add on Trovit Job (2009), Job Description for Field

Telecoms Engineer & Technical Support Engineer at Siemens:

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• Provide Telephone and Technical Support across Siemens / Samsung telephone

systems

• Provide the highest quality and professional cabling installation when required

• Work in the Field on Installation and Maintenance projects to work schedules and

customer expectations at all times

• Ensure that the customers' needs are met.

• Assess site and project to ensure all information is correct

• Complete paperwork accurately

• Providing a courteous and professional service at all times

• To support other areas of the business where necessary

• To carry out duties in accordance with the company's policies

According to Siemens Recruitment add on Siemens.com (2009), job specification for

Field Telecoms Engineer & Technical Support Engineer at Siemens:

• Excellent Cabling installation experience to the highest level

• Strong Telecoms (pabx) knowledge including VOIP and Business Phones systems

• Ability to manage requests and enquiries in a courteous manner

• Minimum of 2 years Installations/Maintenance experience of Siemens and/or

Samsung Business phone systems and periphery telecoms equipment/solutions

like OAK, IVM, VOIP, IP, voice recording or similar products

• Knowledge : Initiative, Organisational skills, Communication skills, Results and

Quality Orientated.

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According to The Times (2009), the required skill for an engineer at Siemens are as

follows:

Source: The Times, 2009.

2.B. Demand and supply forecasting

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According to Graham & Bennett (1989), two types of forecasting have to be done by any

organizations Human Resources Department. One of them is demand forecasting and

another one is supply forecasting. Demand forecasting is associated with forecasting

overall human resources requirements in accordance with the organizational plans; on the

other hand, Supply forecasting is associated with obtaining the data & information about

present & future human resource.

Demand and Supply forecasting

Source: Geisler, 2006.

Siemens use workforce planning technique to determine the rate of influx and outflow of

employee. By using Workforce Planning Siemens get types of benefit: 1) Siemens can

check the skills of its existing employees, which help Siemens to decide about whether

those employee needs training or not. 2) To check whether there is any skill gap between
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the required skill for a particular job and the skills of the employees. 3) To identify the

needs of new employees (The Times 100, 2009). At present, Siemens is in need of new

employees as they about to relocate its core plant in Lincoln (HRM Guide, 2009).

Siemens has already constructed a plan to identify the skills and training that may be

needed for those employees.

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2.C. Selection and recruitment

The aim of the recruitment process of Simens is to ensure that Siemens understand the

career goal, aspiratons and experience of potential employees, as well to give a chance

those potential employees to decide whether siemsn is the right place for them.

During the selection process of Siemens a potential employee has been asked to

participate in one or more of the following activities:

Apply online

An employess can look for a suitable vancat and apply for that vacancy through

the website of siemens which is http://www.siemens.co.uk/careers/en (Siemens

AG, 2009). Apart from that, they can apply through some other website like trovit

job, reed, etc. After submittig application via online, Siemens recruitment team

reveiw the application and check wheather the individual’s capabilities,

qualifications and experience match with their requirment (Siemens AG, 2009).

Telephone interview:

If an employee meet the selection criteria of Siemens, tthen he or she may be

contacted for an initial interview. In this stage, the role and reponsibilites of the

job postion is normaly discussed (Siemens AG, 2009).

Face to Face interview:

All employees needs to face at least one face to face interview at Siemens. The

main goal is to disccussed about the skills, competencies and experience of the

canditate and also to give him an options to know about the organizaiton

(Siemens AG, 2009).

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Aptitute Test

Simens arrage aptitute test for some of its role. These tests assist in determining

the suitability of the candidate for the role. The aptitute test include numeric

reasong, verbal reasoning and an occupational personality questionnaire (Siemens

AG, 2009). The results of tese tests are assessed by qualified psychologists and

compared against industry norms that are rlevant to the criteria being reviewed

(Siemens AG, 2009).

References and background check

All the cadidates are subject to provide two references ( for example previous

supervisors, manager and collegues). Siemens always do reference checks after

they get authorization from the candidate ( Siemens AG, 2009). Apart from that,

employment within some areas of their business is codnditional upon passing a

background check.

Offer & Acceptance

If a candidate is successful at the final stage of their recruitment process, they will

make an intial verbal offer of emplyment that, if accepeted will be followed by a

written contractual offer (Siemens AG, 2009).

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2. D. Training & Development

Training is a planned effort to assist employees in learning job related behaviors in order

to improve performance (Graham & Bennett, 1989).

Training doesn’t only mean teaching new skills to existing employees or teaching

required skilled to new employees. Training is a continuous process which enable

organizations to keeps its employees ready for the job. Siemens normally follows the

following two types of training:

Siemen’s training form.

Source: Heinrich, 2009.

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2.D.i. On the job training

Shadowing:

At Siemens, the HR team provides a colleague or managers to the employee.

Manager or colleague watch the employees while working and train them if they

have done any mistakes (Siemens, 2009).

Mentoring:

The trainee discuss with a tutor or mentor. The mentor or tutor hear the problems

of the trainee and discuss with them about the solution (The Times 100, 2009)

Coaching:

Siemens sometimes provide coach or senior staff to encourage and guide the new

employees while they work (The Times 100, 2009)

Job rotation:

In order to broadens the skills of the employees Siemens sometimes allow them to

work into different department for a short period of them. It helps the employees

to acquire new skills (The Times 100, 2009).

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2.D.ii. Off the job training

Induction training at Siemens enable the new employee to have basic information about

the Siemens (Siemens, 2009). Apart from that, Siemens do have three types of

development program for its employees. Those development program are mainly

designed for entry level employees (The Times 100, 2009).

Apprenticeships

The Apprenticeship programs of Siemens mainly aimed at school leaver students

who want to earn money while they work. Though Siemens is running their

apprenticeships in various location, most of time employees has a tendency to

start their working life in the Siemens branch around the place they live ( HRM

Guide, 2009). Apprenticeships train people under engineering and IT skims. All

applicants of apprenticeship needs excellent communication skills and the ability

of working in a tem.

Siemens Commercial Academy

This academy is launched by Siemens at 2005. The aim of this program is to

make good employees for mainly for the finance department at Siemens. It’s an

alternative to four years univsity degrees (Siemens, 2009). The Siemens

Commercial Academy mainly target those students who has a natural interest in

finance and accounting aspects of an organization. Once students get involve with

this academy, Siemens rotate them around various department like Accounting,

Finance, HR, Corporate Sales and procurement. It helps them an opportunity to

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gather several types of skills (HRM Guide, 2009). The Siemens Commercial

Academy also provide IT courses and sometimes language courses (The Times

100, 2009)

Siemens Graduate Program (SGP)

Siemens Graduate Program is a course of two years, which rquires the

participants to go through three steps (Siemesn, 2009). This program helps

employyes to gather skills about several career paths. This program enable

participants for their career in marketing, manufacturing, human resoucres.

However, this depends on the interst of the employees as well as the availability

of the postion at Siemes (Siemens, 2009).

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2.E: Performance appraisal

To measure the effectiveness of its training and development, Siemens uses an appraisal

system, known as a Performance Management process (The Times 100, 2009).

Employees and their line managers agree objectives at the beginning of a placement and

progress is then monitored formally and informally throughout the placement. This helps

to focus everyone on the developing needs of the business. Annually, the results form the

basis of a staff dialogue where the employee’s manager reviews the progress towards

the objectives that have been set(Siemens AG, 2009).. Feedback is discussed with the

employee and any development needs are captured in order to decide appropriate

training. Together, new objectives for the following year ahead are set. In some instances,

appraisals are linked to pay reviews. In these cases, pay rises depend on employees

meeting or exceeding their objectives(Siemens AG, 2009).

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2.F. Compensation and benefit Siemens

2.F.i. Performance-related Compensation:

Remuneration at Siemens is tailored to business strategy. Consistent remuneration of

Siemens employees' performance ensures that their strategic targets are achieved.

Siemens believes that monetary incentives are a strong motivating factor. Siemens

therefore works with fixed and variable elements of the pay package. The variable

components in salary increase in step with the importance of employess position in the

company (Waddingham, 2009).

2.F.ii. Typical Pay Composition:

Fixed pay

Fixed salary is based on the technical and personal demands placed on position and on

individual input. This part of salary does not vary (siemensindustrialturbomachinery,

2009).

Benefits

In addition to compensation at Siemens employees also receive other benefits in cash or

in kind, for example, in the following areas:

Risk protection

Many Siemens companies offer additional, voluntary benefits in the area of

accident, invalidity and life insurance (siemensindustrialturbomachinery, 2009)..

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Health and well-being

In many cases, Siemens companies offer a range of items in different areas of

health and well-being that top up statutory programs and help employees to find

an individual balance between work and private life

(siemensindustrialturbomachinery, 2009)..

Pensions

In over 30 countries Siemens maintains supplementary company pension plans

(siemensindustrialturbomachinery, 2009)..

Fringe benefits

According to Siemensindustrialturbomachinery(2009), Siemens offers additional

fringe benefits and perks depending on regional conditions and usual local

benefits, (e.g. company canteen, products and services at special prices).

For Siemens, people, like its technology and innovation, are a source of competitive

advantage (The Time, 2009). To make the most of this advantage, Siemens makes sure

that its employees work on developing the company's heritage of innovation. Siemens

believes that there are many ways to make people feel valued and engaged. These range

from a pat on the back, a personal letter or a special mention in a meeting, to a promotion

or a higher salary (The Time, 2009).

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3. EVALUATION OF SIEMENS HRM

According to Geisler (2006), “Human Resources planning is the process –including

forecasting, developing and controlling by which a firm ensures that it has-

• The right number of people,

• The right kind of people,

• At the right places,

• At the right time, doing work for which they are economically most useful”.

Throughout the strong workforce planning, selection and recruitment process, Siemens is

highly successful to have number and right kind of people at right places at the right time.

Besides, the training and development of Siemens help its employees to become

economically useful.

3.A. Evaluation of job analysis and worforce planning

Simens always attarct innovative people to work with them as Siemens believe that

innovation drives their success. At Siemens, 32,300 researchers and developers register

37 inventions and file 23 patent applications every day (The Times 100, 2009). Siemens

attrack potential employees by through the following questions to them ( The Times,

2009):

• How can Siemens control production to affordably satisfy individual customer

requirements?

• How do Siemens meet the world’s growing demand for energy without destroying

the environment?

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• How can Siemens detect diseases before there is an outbreak? Would you like to

work on these and other problems?

Siemens influence curious people with initiative and talent to find excellent career

opportunities with them.

3.B. Evaluation of selection and recruitment:

Siemens use a number of different methods to assess candidates (Siemens, 2009). By

using a number of different assessment methods, they are able to gain an understanding

of employee’s strengths and development areas, which in fact helps them to recruit right

people for them (Lorna, 2009). While recruiting and selecting employees, siemens always

emphasizes on the following skill of the employees: Communication Skills, Team

Working, and Problem Solving, Interpersonal Skills, Self Confidence, Time

Management, Decision making; and Analytical Ability skills (Trovit jobs, 2009) Siemens

commonly use assessment centers as part of their recruitment process.

Assessment centers are generally made up of a number of different exercises. This could

include a group exercise, a presentation, psychometric testing and interviews (Siemens,

2009). Online application and face to face interview helps siemens to gather information

about the employee’s skills. On the other hand, face to face interview, group exercises,

aptitude test helps Siemens to check the skills practically.

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3.C. Evaluation of training and development

Siemens Training and Development expenditure, 2009.

Source: Personnel today, 2009.

Apprenticeships programs of Siemens plays a vital role in developing stuff, which would

help Siemens in future as Siemens business is in growth stage now (The Times 100,

2009). The training and development process of Siemens helps its employees to get higher

position within the organization. According to one of the example provided in

Wheretowork (2009), one of the traffic design engineer named Paul Thomson started his

career at Siemens as a trainee traffic signal engineer. Siemens provided him both on the

job training by providing mentor, as well as off the job training through several education

programs. Within three years of his training he has been promoted as Traffic Design

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Engineer at 2006. According to Paul- “The feeling of responsibility and trust of the

company and fellow employees was amazing. The experiences I had and the new friends I

made whilst training were excellent and I would recommend it to anyone. ” Anna Carder

is another good example of the outcome of Siemens Training and Development

(Personnel Today, 2009). Anna joined Siemens in the year 2006 with a background of

BSc in Administration and Managerial Studies. She already a on the job training through

job rotation. She is now capable to work in HR depart, Traffic Control department.

Siemens treat its entire graduate as individual. The on the job and off the job training

methods of Siemens help its employees to gather experience, knowledge and potential to

do many different types of roles in different department.

Benefits from Siemens’ Training and Development

Source: The Time, 2009.

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3. D. Evaluation of performance appraisal

Performance appraisal at Siemens ensures that all the employees are being told honestly

about their job performance. Siemens believe that if the employees are clear about the

level of their performance they would be motivated if it is good, or they would try to

improve the level of their performance thorough training provided by Siemens.

Performance Management at Siemens helps the company to drive talent management.

Siemens get the following benefits by using its performance appraisal system: It can

• ensure that all training is being used well and for the best interests of the company

• keep all staff up-to-date in a fast changing business

• make sure that staff is well motivated

• get feedback from staff on changes

• make sure staffs are involved in changes.

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4. RECOMMENDATION

Though Siemens is about to cut some administrative jobs across the world because of

credit crunch (Pitcher, 2009), the Human Resources department of Siemens is still

efficient to recruit and retain its employees. However, the following recommendations

would helps to organization’s Human Resources Department to do better.

4.A. Anticipate external business environment

Innovation is the main competitive factors in the telecom business as there are continuous

changes in the external business environment of this business (The Times 100, 2009). For

example, Siemens is currently focusing on renewable energy and wind turbines, as the

global weather is rapidly changing. While recruiting people Siemens should emphasize on

those external people. Because it would help them to recruit innovative people who would

help Siemens at future to cope the changes in external environment (Scribd, 2009).

4.B. Utilize the opportunities

In order to better utilization of opportunities Siemens need to recruit and train their

employees at advance. For example, Olympic 2012 would be grate business opportunity

for Siemens as the sells of telecom products would increase that time. Siemens would be

able to provide healthcare provisions, communications technology, media, and security on

that time. It is extremely important for Siemens to train their existing employees from

now and to create a recruitment plan to hire new employees.

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4.C. Emphasize on action learning

According to Professor Peter Pribilla (2009), "The speed at which a corporation can learn

and employ new knowledge is a decisive factor in competition. It is not enough to learn

and work. Learning and working must be integrated. Only then can a corporation be a

learning organisation. Action Learning addresses this challenge very efficiently." Siemens

should give more emphasize on action learning.

4.D. Increase pay scale and incentives

As the telecom sector in UK is highly competitive, Siemens should increase pay scale for

lower level employees as compare to its competitors. Apart from that, Siemens should

provide more incentive to their good employees to retain them in the organization

(Hussain, 2009). Because, Staff who feel valued stay longer in a company. This means

that Siemens’ costs of recruitment can be reduced, resulting in cost savings across the

organization (The Times 100, 2009).

4.E. Better coordination

According to Hussain (2009), a better coordination should be developed between the top

management and lower level employees in Siemens. It will reduce the chance of whistle

blowing in the organization.

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4.F. Balance dissatisfiers against motivators

Siemens managers have to balance dissatisfiers against motivators (The Times 100,

2009). Policies and procedures that may cause dissatisfaction have to be managed. To

reduce dissatisfaction, Siemens believes the best method is to raise awareness of issues

with employees and encourage their involvement (The Times 100, 2009). They then

understand and recognise the need for change. This has helped Siemens to manage change

programmes. Motivators at Siemens are the factors that stimulate engineers to work in the

best way possible. They enjoy the characteristics of their roles. Being empowered helps

them to manage their roles and enables them to use this power to change things(The

Times 100, 2009)..

Organizational results stem from high performance. People only perform well when they

operate in a culture which nurtures and supports them and helps them to work towards the

achievement of their ambitions. Siemens' high performance culture provides the

framework and support in which high performance people can show their commitment to

a high performance organisation.

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5. References

Bennett, R. & Graham, H.T., 1989. Human resources management . 6th ed. London :

Macdonald and Evans.

HRM guide, 2009. Business driven action learning. [online] HRM guide. Available at:

http://www.hrmguide.com/skills/action_learning.html [Accessed 3 August, 2009]

Hussain, B., 2009. Siemens internship report. [online] Scribd. Available at:

http://www.scribd.com/doc/18659297/Siemens-internship-Report [Accessed 3 September,

2009]

Pitcher, G., 2008. Siemens to cut 16,000 jobs worldwide. [Online] Personnel today.

Available at: http://www.personneltoday.com/articles/2008/07/09/46654/siemens-

to-cut-16000-jobs-worldwide.htm [Accessed 18 August 2009].

Rajput, H., 2009. Internship report on Siemens. [Online] Scribd. Available at:

http://www.scribd.com/doc/17373819/Internship-Report-of-Siemens-By-HAK-RAJPUT

[Accessed 1 September, 2009]

Siemens AG. 2009. Jobs and career. [online] Siemens AG. Available at:

http://w1.siemens.com/jobs/en/ [Accessed 4 September 2009]

The Times 100, 2009. Siemens: Meeting global and local needs.. [Online] The Times

100. Available at: http://www.thetimes100.co.uk/case-study--meeting-global-

local-needs--89-236-1.php [Accessed 18 August 2009].

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The Times 100, 2009. Siemens: motivating within a creative environment. [Online] The

Times 100. Available at: http://www.thetimes100.co.uk/case-study--motivation-

within-creative-environment--89-376-2.php [Accessed 18 August 2009].

The Times 100, 2009. Siemens: Training and development as a strategy for growth.

[Online] The Times 100. Available at: http://www.thetimes100.co.uk/case-study--

training-development-strategy-for-growth--89-335-1.php [Accessed 18 August

2009].

Wheretowork, 2009. Working with Siemens [online] Wheretowork. Available at:

http://www.wheretowork.com/organisations/information.asp?id=1426 [Accessed 7

September 2009]

Usumi, U., 2009. Amideast Case Study - Siemens hipath telephon. [Online] Scribd. 2009.

Available at: http://www.scribd.com/doc/13279009/Amideast-Case-Study-Siemens-

hipath-telephony. [Accessed 15 September, 2009]

Babar, S.A., 2009. Siemens: Internship Report. [Online] Scribd. Available at:

http://www.scribd.com/doc/18659297/Siemens-internship-Report [Accessed 13

September, 2009]

Scribd. 2009. Siemens: Training and development as a strategy for growth. Scribd.

Available at: http://www.scribd.com/doc/17431725/Siemens-13-Full. [Accessed 10

September 2009]

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