28296_Pawanpal_Singh_

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Yorkville University *

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Feb 20, 2024

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Pawanpal Singh 2020050399 BUSI 2133 Organization Theory and Design 11/11 22S-C-ON_5A_Z) Professor- Sujatha Selvaraj Case study analysis 1
Table of Contents Introduction ...................................................................................................................................... 3 Change requirement in IBM strategy .............................................................................................. 4 Contribution of IBM’s new organization structure ......................................................................... 5 Organization life cycle ..................................................................................................................... 6 Change management model ............................................................................................................. 7 Overall assessment ........................................................................................................................... 9 Conclusion ....................................................................................................................................... 9 References ...................................................................................................................................... 10 2
Introduction Organizational structure is the foundation of an organization. It is the basic plan or design of an organization that determines how it will function and how its parts will interact. The organizational structure defines the relationships among the different parts of the organization and between the organization and its environment. The organizational structure affects the ability of the organization to implement its change management strategy. The structure provides the foundation for organizing and managing resources, setting goals, and making decisions (Lombardo, 2018). It also determines who is responsible for what within the organization. In this project, some changes will be made in the organizational structure of IBM that is a multinational technology corporation. This project will help to understand the contribution of organizational structure and their impact on IBM’s design and strategy. Moreover, the project will also address the change management project that IBM implemented in early 1990s to transform the company from selling hardware to delivering solutions. 3
Change requirement in IBM strategy There were several change challenges that were required to support changes in IBM strategy. One challenge was the need for a flatter organizational structure. The change requirements for the IBM project were mainly to shift the focus of the company from hardware to delivering solutions. This change was necessary in order to keep up with the competition and remain relevant in the market. It was also necessary to update the company's image and appeal to a new demographic. With a flatter structure, communication would be more efficient and decisions could be made more quickly. Another challenge was the need to empower employees to make decisions. With more decision-making power at the lower levels of the organization, employees would be more engaged and would be able to take ownership of their work. Finally, the changes in strategy also necessitated changes in technology and business processes. To support the growth in analytics and cloud services, IBM needed to develop new technologies and update its business processes (Gesmin, et. al., 2011). Overall, these changes required a concerted effort from all levels of the organization, including leadership, employees, and management. There were several barriers and change requirements in IBM’s organizational structure that needed to be implemented. The company needed to become more agile and able to quickly adapt to changes in the marketplace. This required a change in the organizational structure to enable more decentralized decision-making and faster execution. The company also needed to focus more on customer needs and less on its own internal goals. This required a change in the organization's culture and management practices. IBM needed to increase its focus on emerging markets. This required a change in the way the company operated, with increased emphasis on collaboration across divisions and more focus on innovation. Overall, IBM needed to make several changes in order to support its new strategy. These included changes in organizational structure, culture, and management practices. Further, the company needed to focus more on customer needs and less on its own internal goals in order to become more agile and responsive to changes in the marketplace (Stewart, 2004). Finally, IBM needed to increase its focus on emerging markets in order to remain competitive. All of these changes required a change in organizational structure. 4
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