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Role of Organisation Structure - IBM

Organization Selected : IBM

INTROUCTION

Organization seeks to change its strategies so that it can assist them to attain objectives and goals. Although, change is not a constant event because company needs to adapt changes on to stay in market for a long time. These modifications can be drive through external and internal changes that's why it has capability to impact in positive and negative manner. As it is given in case study, IBM which is a leading computer company at present time has gone through severe changes. There are various kinds of changes that occurred in organisation that impacted on its productivity and profitability. This assignment consists of theories and management practice of change, culture characteristics, effective team development, role of organisation structure, learning styles and their application, and organization change management (Iles, 2010).

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Main Body

Draw a change kaleidoscope for the organisation at the point at which Gestner took over. Using this model (Balogun and Hope-Hailey), discuss the change options available to him at that point Changes are required for every organisation to stay in the market for a long term because it supports sustainability. In order to stay in marketplace, company needs to face several challenges because firm needs to adapt modifications due to external and internal changes. These changes are required to shift a firm from one state to another. These changes are unpredictable and can be risky because it is hard to give a statement how far these changes will help organisation to attain its objectives or will impact in which manner. IBM applied various modification that can keep it safe from adverse condition and help it to run a business in an efficient way. The organisation needs to adopt changes that improve its current state to achieve its future goals (Hellman, 2012).

There are several changes that brings opportunities and threats for the organisation. It depends on handling changes in right direction. If these changes tackled in an appropriate way then it ensures growth opportunities for business. In contrary, if these changes mis–handled then it can bring lot of threat that can create problems for company. There are two kind of changes which impact on business such as external and internal. Thus, these changes are affected on organization so below is the description at which Gestner took place in company.

External changes

After post- war, there were changes in economic and technological aspects of US. This result into government control in respect to functionality of computing sector. This benefit IBM to make strengths that is sell expensive peripherals, software, computer. With this, buyers get locked with firm as they can't purchase these items again in short time period. Besides this, changes in rules and regulations of government require to be considered by management of IBM to reframe tactics and conduct business in according to norms. IBM also require to use technologies which are effective and help them to position superior than competitors (Yoder, 2014).

Internal changes

An organization also needs to be change its process that can cause to bring new changes. IBM that is International Business Machines name was Computing Tabulating and Recording (CTR) which is formed with collection of three firms name by Charles Flint. IBM is international firm, so management require to have skilled members for delivery of quality services to clients. For this, they require top reframe policies and structure for retaining people for longer time. This aid seniors to design system and conduct business activities in respect to market conditions (Kotter, 2012).

Before Gestner take over chairmanship of IBM there were several problems that required essential changes to be done in an effective way. That's why according to the Change Kaleidoscope model he can adopt various options which can make bring changes in organisation.

Change implementation needs supports by three groups that is managers, consultant and employees. All three groups must be agree to bring changes because without not change can be made without their involvement. As organization was declining that's why it is necessary to conduct a change process from top management (Crawford and Nahmias, 2010). Before Gestner take over chairmanship of IBM there were several problems that required essential changes to be done in an effective way. That's why according to the Change Kaleidoscope model he can adopt various options which can make bring changes in organisation.

CHANGE KALEIDOSCOPE:

This is model of change management which define that in an organisation is present in dynamic environment. It is necessary that alteration and modification in system are made by management to sustain firm in market. In this globalisation is prime reason that firms require to use advanced technologies for utilisation of resources in efficient manner. Thus, deliver quality items and services to customers for maintaining firm's position and brand image in market. In IBM, change Kaleidoscope was used for enhancement in production level. This aspect also helps company to manage change by adopting program for transforming business (Iles, 2010). In this, research and development plays essential role in designing system for delivery of quality services to clients. Top personnel involve stakeholders that are staff, investors, suppliers in meeting for communicating information about changes. They also take their opinions and suggestions for making appropriate judgements in respect to changes in system and policies. This help seniors to enhance team effectiveness by conducting training and development programmes. Thus, resourcing, performance measurement result into creation of manpower which are efficient to execute tasks effectively (Turner, 2014).

Design or Implementing Choices

As it is an inner part of ring and it is open to Gestner to pick any option for change. Therefore, there are four change paths that depends on their nature of result and of change. Thus, he can opt for evolution, adaption, revolutions and reconstruction. On the basis of the case study, Gestner selected reconstruction of organisation structure as he reduced employees which were causes to increasing cost.

  • Change start points - There are several change start points, in IBM change begin by top management but it also start with bottom line (bottom – up change). As he was experienced as Management Consultant at McKinsey. That's why he realised that cost should be cut and in order to do so he appointed two cost specialists who are good in practising. Initially change should also occur at only part of organisation, therefore, it was started from cost reduction so that productivity can be managed (Cowne, Frankl and Gerschel, 2015).
  • Change style is pattern to manage change process that can be divide in five parts such as education and delegation, through changes can be discussed with employees and their support can be expected. Decision can be taken in collaboration with employees with on the contrary limited number of employees can participate in change decision. Changes are directed and controlled by change agents. If Gestner did not considered these options he used coercion to impose change decision with authority. As his change target was to change modify behaviour and values and generate expected outputs. The level of levers and interventions are needed for change management of organisation. It is required to apply culture web to recognise organisation culture and existing change barriers that are needed to remove.

These are options which can be opted for change, Gestner needed to focus on internal forces of change such as cost of people that put their efforts to increase productivity. Gestner needed to conduct a top management changes through which they can find out actual problems of organisation. In order to overcome these issues he appointed cost analyst that results in keeping a close watch of marketplace that consists of change in salary structure, reduced in job from 5000 to 1200. Compensation was based on performance of employees that was beneficial for IBM in cutting down the cost. As it is give in case study, after joining of Gestner IBM started to focus on enhancing customer relationships so that it can stay in the marketplace for a long time and adopting decentralizing to assist in different areas (Marshall, Orrell and Cameron, 2011).

According to the given case study of IBM, it adopted a change process that was based on the above model such as change in start points and change in style. The organization adapted pro- active approach that supports in organization growth and performance. It was going through the culture changes, total quality management, business process re-engineering that needed to implement changes in order to attain better results.

Change kaleidoscope is tactic which is used by management of IBM to make strategies through which individual and team members are influence to work with latest technologies. They make changes in system and policies in respect to external market components. Through this, innovative and creative business ideas and activities are conducted which are beneficial for company. Thus, change benefit senior to make success and growth of business in respect to positioning higher than rival firms (Ang, L., 2012).

What theories are you aware of that would explain the steps Gestner might have taken to help to overcome resistance to change?

Change refers to alteration and modification in system and strategies that are made by management to conduct business in according to market conditions. It is necessary that alteration in system and strategies are made by seniors for sustaining firm's position and image in market. Internal changes are made in IBM in respect to external factors that is government policies, economic conditions, competitors, technology and other components.

Louis Vincent Gestner, chairman of IBM who didn't have knowledge in respect to run computer business. The problems which were faced by him was lowering down in workforces worldwide. IBM is international firm which require to change their core values. It is necessary that recognition to staff members is given to make them feel connected and valuable part in company. Employees were made competent to work with advanced technologies for delivery of appropriate services to clients (Drew, 2010). Changes help firm to reduce redundancies and enhance relations with clients for maintaining brand image in market. These are changes in plan which are made in IBM are defined below:

Types of Changes 

  • Fewer, faster jobs in a flatter organisation: In IBM, management transformed old salary grading system to new in which job titles were reduced from 5000 to 1200. This help them to maintain connection with team members properly. Number of jobs are cut which aid seniors to make fast decision making and inform employees about changes. 
  • Look to marketplace: Administration make changes in structure of salary of staff that is from single to merit budget in respect to their work and job family. Market oriented rates were considered while providing wages to temporary employees (Brisson, 2010).
  • Reward for performance: In IBM, old compensation plan result into difficulties and problems in respect to distribution of salary among team members. Management design new system by which they set budget for providing acknowledgement to employees about pay scale. They inform people about top performers that is stars and provide them wages in according to their performance and outcomes.

Resistance of change

These are changes which are made by management of IBM for maintaining manpower for sustainability of firm's market image and position. Flatter organisation help them to provide direction and instruction to employees in respect to their tasks and targets. Besides this, market rates are considered while providing staff salary aid seniors to retain skilled and competent people (Dols, Landrum and Wieck, 2010). This help them to lower down turnover rate that is shift to another firm. Reward for performance is another aspect which help management to give acknowledgement and recognition to staff members performance. Thus, top performers are encouraged and motivated to work effectively and gain rewards in respect to their outcomes. You are required Programming Assignment Help UK at an affordable budget.

Kurt Lewin change model

In many organisation declining can be often seen due to some reasons which is major cause to adopt reorganization, adjustment and other changes. These modifications brings positive changes if it is aligned in a proper manner. But these changes may not makes everyone happy and that's why employees resist to change. That's why Kurt Lewin developed a model that consists of 'Unfreeze – Move – Refreeze'. According to these three states IBM can conduct change as -

(Source - The Kurt Lewin change model, 2018)

Unfreeze 

In this stage, people who are working in organization they realizes that something is going to be change and they have some doubts, uncertainty about new changes (Dols, Landrum and Wieck, 2010). The change leaders are required to communicate in an effective way to their employees so that they can understand why changes are essential for organisation. By knowing the fact about change requirement they will able to accept changes. That's why it is essential that top management should involve employees so that they can support with constructive approach during change process. According to the given case study, Gestner should also transfer their message among employees and involve them in change process so that they could understand requirements of change. They also support to the management so that organisation can achieve its goals.

Move 

This phase define that employees resist change that is they didn't want work with advanced technologies. In firm, alteration in system in respect to alteration in technology are made by management to conduct business activities in according to market conditions. IBM is conducting business globally, so there are large number of competitors which affect on firm. It is necessary that seniors encourage and convince subordinates to work with latest techniques and technologies (Kotter, 2012).

Refreeze 

It is about solidifying change. It can be observe that after move stage in which changes are implemented, employees are apt to revert to their habits back. Thus, it is necessary for leaders to arrange evolutions, and monitor adjustments whenever required. This is essential because employees can understand that there is no option to go back towards old habits and this will make them stable in new changes. Slowly, they will realise that they it is good for them. In IBM employees were not agreed for a a formal system but if Gestner communicate with employees in a effective manner then there was possibility that they understand value of being involved in employee relations.

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Force field analysis is also supports this model ash there are some elements which supports change whereas others are resisting these changes (Ang, 2012). It is framework which management of IBM uses to analyse factors which impact on functionality of firm. They find out driving tactics which affect on accomplishment of business goals and objectives. This helps management to give explantation to team members about importance of modification and alteration in system. Employees are motivated and inspired to adapt changes and work with advanced technologies for delivery of quality services to clients. Thus, enhance organisation functionality to improve market image and brand image in respect to competitors.

John Kotter eight step and ADKAR are different model of change which are used by management to make modification in firm. These are tactics which are used by senior of IBM to inform staff members about urgency and needs of change in firm. Employees are made to convince and influence to work with latest technologies by acknowledging benefits of change (Brisson-Banks, 2010).

Strategies to overcome resistance to change:

Administration of IBM can adopt to reduce change resistance from team members. For this, they have various tactics which help seniors to influence employees are stated below:

  • Education and communication: In IBM, management inform staff members about modification in system that are made for conduction of business activities effectively. Training and development are conducted by senior for enhancement of skills and knowledge in respect to changes in technologies (Turner, 2014). This helps administration to have skilled staff which have competency to work with advanced technologies. Thus, quality services are provided to clients which benefit firm to sustain its market reputation and image.
  • Facilitation and support: Administration of IBM provide facilities to team members for encouraging and dedicating them to work properly. They require to provide positive working environment and facilities in respect to wages, working hours and safety and other. Along this, seniors also provide support to team members in respect to guidance and instruction to employees to work with advanced technologies.
  • Negotiation and agreement: Top personnel of IBM require to make negotiation with team members in respect to their salary and other facilities. Agreement is made with employees in which rules and regulations are noted in respect to their roles and responsibilities. Besides this, approval in respect to their duties and obligations of wages and duration are stated. This help management to maintain team members and adopt changes without resisting (Iles, 2010).
  • Participation and involvement: Management of IBM involve staff members in meeting and conference. Employees opinion and suggestions are taken for formulation of policies and alteration in system in according to market conditions. This help seniors to give value and recognition to team members for motivating them to perform tasks effectively. 

CONCLUSION

From the above assignment it can be concluded that change is crucial aspect for company that gives it a growth and sustainability in the marketplace. As IBM stagnated due to lack of trust and effective communication in their company. External and internal changes are made by management for which change kaleidoscope is used to convince team members. Fewer, faster jobs in a flatter organisation, look to marketplace and reward for performance are changes made by seniors to make changes in policies. Unfreeze, move and refreeze are conducted to make employees to adapt changes. There are several models that can support in change process such as Change Kaleidoscope and Kurt Lewin change model. These models will support in bring out new changes and over come resistance. Education and communication, facilitation and support, negotiation and agreement and participation and involvement are strategies used by management to overcome resistance to change of staff.

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