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If you have to classify the types of organizational restructuring that IBM trying to accomplish, what would it be ?

If you have to classify the types of organizational restructuring that IBM trying to accomplish, what would it be ?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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If you have to classify the types of organizational restructuring that IBM trying to accomplish, what would it be ?
16:14 Tue 18 Apr x PPT Week 13-14_ Team and Leadership_2023 GROUP WORK: 2-3 PEOPLE CASE: IBM Although the massive restructuring effort detailed in the chap- ter's example is probably the smart move long-term for IBM, it doesn't mean that it comes without costs. As with any restruc- turing effort, there are those that remain skeptical. IBM's Senior Vice President Robert W. Moffat Jr. found that out the hard way when 10 percent of the 450 managers he invited to a three-day organizing meeting surrounding the globalization effort stood him up. Many managers within IBM are skeptical, having suf- fered through numerous restructurings, and they didn't really feel that previous changes had produced much change in terms of day-to-day operations. 41 Those who aren't on board had better get on board quickly though, according to Moffat. In the past three years, IBM has hired 90,000 new employees in low-cost countries, bringing its total organizational size to 375,000 people on six continents." No better example of this globalization effort is an IBM facil- ity in Hortolandia, Brazil. What was once a mainframe manu- facturing facility now houses hundreds of Brazilians sitting in rows of cubicles that span more than a football field in length. 32% These workers provide information about various services such as software programming and financial accounting to over 100 clients across 40 countries.42 Yet even there the transition was difficult, as Brazilian employees tended to favor local custom- ers. American Robert Payne, who runs part of the tech services organization in Brazil, told them that the rule of thumb was to "think as if you're the president of IBM. What's best for the company long-term?" 11.1 11.2 If you had to classify the types of organizational restructur- ing that IBM is trying to accomplish, what would it be? What are the potential drawbacks of moving the organiza- tion in this direction? How might IBM combat these dif- ficulties as they arise? 11.3 How is technology allowing IBM to organize itself differ- ently than it has been in the past? Although this tech- nology might allow the organization to become more efficient, what effect do you think it will have on workers and the teams in which they operate?
Transcribed Image Text:16:14 Tue 18 Apr x PPT Week 13-14_ Team and Leadership_2023 GROUP WORK: 2-3 PEOPLE CASE: IBM Although the massive restructuring effort detailed in the chap- ter's example is probably the smart move long-term for IBM, it doesn't mean that it comes without costs. As with any restruc- turing effort, there are those that remain skeptical. IBM's Senior Vice President Robert W. Moffat Jr. found that out the hard way when 10 percent of the 450 managers he invited to a three-day organizing meeting surrounding the globalization effort stood him up. Many managers within IBM are skeptical, having suf- fered through numerous restructurings, and they didn't really feel that previous changes had produced much change in terms of day-to-day operations. 41 Those who aren't on board had better get on board quickly though, according to Moffat. In the past three years, IBM has hired 90,000 new employees in low-cost countries, bringing its total organizational size to 375,000 people on six continents." No better example of this globalization effort is an IBM facil- ity in Hortolandia, Brazil. What was once a mainframe manu- facturing facility now houses hundreds of Brazilians sitting in rows of cubicles that span more than a football field in length. 32% These workers provide information about various services such as software programming and financial accounting to over 100 clients across 40 countries.42 Yet even there the transition was difficult, as Brazilian employees tended to favor local custom- ers. American Robert Payne, who runs part of the tech services organization in Brazil, told them that the rule of thumb was to "think as if you're the president of IBM. What's best for the company long-term?" 11.1 11.2 If you had to classify the types of organizational restructur- ing that IBM is trying to accomplish, what would it be? What are the potential drawbacks of moving the organiza- tion in this direction? How might IBM combat these dif- ficulties as they arise? 11.3 How is technology allowing IBM to organize itself differ- ently than it has been in the past? Although this tech- nology might allow the organization to become more efficient, what effect do you think it will have on workers and the teams in which they operate?
◄ Search 16:09 Tue 18 Apr x === PPT Week 13-14_ Team and Leadership_2023 Continuance Commitment. Represents a strong correlation (around .50 in magnitude). Represents a moderate correlation (around .30 in magnitude). Represents a weak correlation (around 10 in magnitude). ources: T.A. Judge and R.F. Piccolo, "Transformational and Transactional Leadership: A Meta-Analytic Test of Their elative Validity," Journal of Applied Psychology 89 (2004), pp. 755-68; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. opolnytsky, "Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, orrelates, and Consequences," Journal of Vocational Behavior 61 (2002), pp. 20-52; and P.M. Podsakoff, S.B. MacKenzie, B. Paine, and D.G. Bachrach, "Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical iterature and Suggestions for Future Research," Journal of Management 26 (2000), pp. 513-63. IN-CLASS ACTIVITY CASE: IBM IBM Willy Chiu, in charge of IBM's worldwide network of elite labs, received an instant message one night informing him that a major competitor was moving in on a $100 million project developing a new IT system for a Korean bank. What happened after that could only happen in today's technologically advanced world- Dippe BlackBerry texts, cell phone conversations, and 18 Internet chat Orechberg windows all operating at the same time, across four continents. me, adrodd TAN Today's organizations are faced with trying to find a way to orga- nize themselves as efficiently as possible using technology that w allows them to do things they never could before. When you hear that the world is growing flatter for companies, don't doubt it for a second. Secono Traditionally, IBM has structured its 200,000-employee orga- noon up nization along geographic lines. In fact, some might argue that IBM was the company that pioneered the first multinational geo- graphic structure by setting up mini-IBMs in countries around the globe. Each country in which IBM operated had its own workforce and management team that reacted to the clients for which it provided services in each country. It was a structure that made perfect sense in a world where consultants needed to be on location with their clients when those customers were hav- ing software or computer issues. However, IBM's environmental factors are changing rapidly. Competitors such as those out of India are providing many of the same services for significantly less money. GROUP WORK: 2-3 PEOPLE CASE: IBM lthough the massive restructuring effort detailed in the chap- er's example is probably the smart move long-term for IBM it 5 33% ↑ To change with its competitors and the "flattening world," IBM is reorganizing its workforce by creating and utilizing what it calls "competency centers." These centers group employees from around the world on the basis of the specific skill sets that they have to offer clients. Some workers will be grouped into they have one location that can service clients all over the world through are recation chants an the use of technology. In Boulder, Colorado, IBM employs 6,200 mology professionals as part of a call center that monitors clients' com- puting functions worldwide. If something goes wrong in one of IBM's 426 data centers, employees in Boulder will more than likely be likely be the ones to handle it or send it to someone who can. mney com Other IBM workers will be grouped by broader geographic loca- tions so that they can still be in relatively close proximity to their customers. When these employees are needed by a client, IBM custom has a computer database that allows it to put together teams of highly specialized consultants by examining the skill sets listed on 70,000 IBM resumes. As the world becomes flatter through tem etia technology, clients expect the best talent from around the world, not just the best talent that happens to be sitting in their city. These structural changes will allow IBM to give clients just that. For IBM, these are the necessary changes that come with being a global company. According to IBM Senior Vice President Robert W. Moffat Jr.: "Our customers need us to put the right skills in the right place at the right time." "3 These workers provide information about various services such as software programming and financial accounting to over 100
Transcribed Image Text:◄ Search 16:09 Tue 18 Apr x === PPT Week 13-14_ Team and Leadership_2023 Continuance Commitment. Represents a strong correlation (around .50 in magnitude). Represents a moderate correlation (around .30 in magnitude). Represents a weak correlation (around 10 in magnitude). ources: T.A. Judge and R.F. Piccolo, "Transformational and Transactional Leadership: A Meta-Analytic Test of Their elative Validity," Journal of Applied Psychology 89 (2004), pp. 755-68; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. opolnytsky, "Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, orrelates, and Consequences," Journal of Vocational Behavior 61 (2002), pp. 20-52; and P.M. Podsakoff, S.B. MacKenzie, B. Paine, and D.G. Bachrach, "Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical iterature and Suggestions for Future Research," Journal of Management 26 (2000), pp. 513-63. IN-CLASS ACTIVITY CASE: IBM IBM Willy Chiu, in charge of IBM's worldwide network of elite labs, received an instant message one night informing him that a major competitor was moving in on a $100 million project developing a new IT system for a Korean bank. What happened after that could only happen in today's technologically advanced world- Dippe BlackBerry texts, cell phone conversations, and 18 Internet chat Orechberg windows all operating at the same time, across four continents. me, adrodd TAN Today's organizations are faced with trying to find a way to orga- nize themselves as efficiently as possible using technology that w allows them to do things they never could before. When you hear that the world is growing flatter for companies, don't doubt it for a second. Secono Traditionally, IBM has structured its 200,000-employee orga- noon up nization along geographic lines. In fact, some might argue that IBM was the company that pioneered the first multinational geo- graphic structure by setting up mini-IBMs in countries around the globe. Each country in which IBM operated had its own workforce and management team that reacted to the clients for which it provided services in each country. It was a structure that made perfect sense in a world where consultants needed to be on location with their clients when those customers were hav- ing software or computer issues. However, IBM's environmental factors are changing rapidly. Competitors such as those out of India are providing many of the same services for significantly less money. GROUP WORK: 2-3 PEOPLE CASE: IBM lthough the massive restructuring effort detailed in the chap- er's example is probably the smart move long-term for IBM it 5 33% ↑ To change with its competitors and the "flattening world," IBM is reorganizing its workforce by creating and utilizing what it calls "competency centers." These centers group employees from around the world on the basis of the specific skill sets that they have to offer clients. Some workers will be grouped into they have one location that can service clients all over the world through are recation chants an the use of technology. In Boulder, Colorado, IBM employs 6,200 mology professionals as part of a call center that monitors clients' com- puting functions worldwide. If something goes wrong in one of IBM's 426 data centers, employees in Boulder will more than likely be likely be the ones to handle it or send it to someone who can. mney com Other IBM workers will be grouped by broader geographic loca- tions so that they can still be in relatively close proximity to their customers. When these employees are needed by a client, IBM custom has a computer database that allows it to put together teams of highly specialized consultants by examining the skill sets listed on 70,000 IBM resumes. As the world becomes flatter through tem etia technology, clients expect the best talent from around the world, not just the best talent that happens to be sitting in their city. These structural changes will allow IBM to give clients just that. For IBM, these are the necessary changes that come with being a global company. According to IBM Senior Vice President Robert W. Moffat Jr.: "Our customers need us to put the right skills in the right place at the right time." "3 These workers provide information about various services such as software programming and financial accounting to over 100
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