Project Presentation: Organizational Design And Change

Project Presentation Group 3 : Akshay Singh 18P069 Danish Kapoor 18P078 Divyansh Garg 18P081 Jitesh Mittal 18P084 Pankaj Bansal 18P091 Vishakha Sharma 18P119

Organizational Design And Change

Submitted to: Prof Madhushree Nanda Agarwal

Introduction - IBM 1911 The company began in 1911, founded in Endicott, New York as the ComputingTabulatingRecording Company (CTR)

To Present Day

1924

It started off as a hardware manufacturer producing state of the art computer systems

It was renamed to "International Business Machines" in 1924

IBM has roughly 3,66,000 employees across the globe and is present across 70 countries

IBM is moving towards a more service based organization with the times, requiring more client focus and thus a regional dimension

Key Business Areas

IBM Cloud

IBM Watson

Cloud architecture by IBM

Artificial intelligence for enterprises

IBM Services

Global experts in business strategy, technology and design

IBM Systems

Mainframe, cognitive and storage offerings

IBM Security

Enterprise security offerings

IBM Research Research in areas such as AI, blockchain and quantum computing

To cater to these needs, IBM currently follows a 3-D organizational structure with subtle variations across different regions.

Stakeholder Analysis S. No

Stakeholder

Goals

Importance

Goals met ?

1.

Low cost standard solution customer ( Low margin)

Standardized products Low cost of products and maintenance

Very Low Low

Yes No

2.

High cost customized solution customer ( High margin)

Solutions based on cutting edge research Customized solutions along with good customer service

High High

Yes Yes

High quality products/services Well defined career paths Learning and development Receive good monetary and other benefits Work on innovative projects Wealth maximization Good compensation and defined career path Learning and development. Freedom and autonomy,

High High Average Average Average Very High High High

Yes Yes No No No Yes Yes Yes

• • •

3.

Employees

4. 5.

Shareholders Consultants

Shift of focus from hardware business with standardized products towards technological services and consulting requires investment in research to build customized products with high margins. Therefore the product / geographical dimension in the matrix structure becomes important Resources are being pulled out from projects which involve legacy systems / standardized product and hardware solutions accordingly.

Previous Structure This was meant to cater to salesforce requirements for different regions, industry segments and products

It had six dimensions which were functions, products, geographies, customers, products and channels

Previous Structure

New Structure Product Focused Structure Characteristics : • Product type divisions • Function based segments • Geographical divisions These 3 dimensions are matrixed together to form the current organizational structure

New Structure PRODUCT TYPE DIVISIONS

PRIMARY RESEARCH Based on primary research, these were the insights gained about the new organizational and reporting structures at IBM

Cognitive Solutions

Global business services Technology services and cloud platforms

Global Financing

Systems

New Structure Geographical Divisions

A

To cater to global businesses keeping in mind the regional differences, IBM also made use of geographical divisions: • Asia Pacific • Europe/ Middle East /Africa • Americas

B C

Key Functions To Support Business Areas

Global Markets ( Formerly sales and distribution) .

Intellectual Property

01 03

Human Resources .

05

02

Research and development’

04

Integrated supply chain .

06

Finance

Understanding The Structure Country Manager • Dotted relationship • Senior executive from individual’s product division • Product divisions segregated on regional basis • Regional product divisions have functional divisions also

Global Functional Manager

DUAL REPORTING

• Direct reporting relationship

The shift towards a product based structure reflects increasing focus towards providing technology based solutions and consulting services. The matrix structure for consultants was at two levels : Level 1: Each consultant is tagged to and reports to a service line, a geography leader and an industry leader.

•

Level 2: Each consultant has a people manager also

called functional manager responsible for employee related issues . •

A project manager manages all the aspects of the project assigned.

•

People manager is usually tagged to service line and is a direct reportee to the service head and geography head. The performance evaluation of the consultant is undertaken by the functional manager.

Stakeholder Map

Advantages & Disadvantages Advantages 



Disadvantages

The dual reporting structure  to product and functional seniors ensures that functional expertise is maintained along with proper research and learning. Also every product gets the requisite resources. Since every product division is further segmented into different regions, it is ensured that products and services are customized according to regional demands.



Since the performance evaluation is conducted by the global functional manager, any communication gap may lead to an improper appraisal. This could lead to employee frustration and high turnover rates. Innovation suffers at middle level since the appraisal is directly is conducted by the global functional manager.

Advantages

Disadvantages





Difficult to track performance of employees due to communication gaps as there is work on global projects.





A lot of time and effort is wasted while reported to the different heads.

IBM Checkpoint •

•

Introduced To Simplify monitoring performance and communicating feedback to multiple stakeholders

Geographic distance between functional managers lead to communication gap and improper performance evaluation

Records and communicates performance successfully to different stakeholders

Functions

SAP based solution with the ACE app provides access to checkpoint via smartphones for ease

Quarterly reviews along with weekly follow ups for a fair process

Thank You