Ibm's Organizational Change

2637 words 11 pages
Organizational change is when an organizations overall strategy for success changes and changes the way in which it operates. Organizations must undergo significant change in order for the organization to develop. Change should be done to accomplish some overall goal. “Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc.” (McNamara) There are usually conflicts to change because people are afraid of the unknown. In order for organizational change to be carried out the leader should meet with all managers and staff to explain reasons for the change.(McNamara) There are at least four levels …show more content…

Each department was basically over itself that has thousands of employees and budgets ranging to hundreds of millions of dollars. “Decision-making for big decisions was completely hierarchical. A fundamental change in product architecture—such as CMOS architecture—would require all four functional executives to agree on strategy, product design, resources, and rollout, and to adjust their budgets accordingly.”(Meyer, 2005) Without any real budget or performance review authority, the program managers had little power in the traditional functional organization. There would be disputes within the functional groups, there would be problems involving a different functional group would work their way up the management ladder, which then would reach executive levels. But this was not easy at all because there are only so many problems that any single set of executives can resolve in a given week. So basically the old IBM functional organization turned next-generation product line initiatives into “death marches.” Because no executive would ever volunteer to take on a project unless they were told to do so. (Meyer, 2005)
Executives of the S/390 division were confronted by the realities of getting from the H to G series, because they knew they needed a new organization strategy just as much as they needed a new product strategy. IBM decided that the German mainframes,


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