Managing Organizational Change

Strayer University

Assignment 2: Diagnosing Change

HRM 560 – Managing Organizational Change

by

Damian Gibbs

Submitted to: Dr. Paul Jaikaran

Winter 2016

IBM is the largest IT Company in regards to revenue and buying power and according to Fortune 500 magazine. They are also ranked 24th of the top 100 for 2015(http://www.rankingthebrands.com/The-Brand-Rankings.aspx?rankingID=131&year=950). Today the organization currently employs more than 350,000 plus employees. Dr. Alexander Dey, whom business would eventually be acquired by one of IBM’s predecessors invents the first dial recorder in 1888. Formally known as CRT the organization adapted its name Intetnational Business Machines or IBM in 1911.

• Describe the company in terms of industry, size, number of employees, and history.

IBM Global Employment Standards are said to be set high base on how business is conducted. The organization makes a point to maintain compliance with applicable laws and regulations. Employees are required to comply with all IBM policies, procedures and practices at all times and are responsible for consulting their management if they have any questions. These practices are emphasized through annual training known as BCG’s (business conduct guidelines). Other policies that are standardized are as follows: Wages and benefits; Working hours; Nondiscrimination and harassment; Respect and dignity; Freedom of association; Health and safety; Protection of the environment; Laws, including regulations and other legal requirements; Ethical dealings; and Management Systems just to name a few;

• Analyze in detail the current HR practice, policy, process, or procedure that you believe should be changed.

When viewing the management system I would have to point out the annual employee review is both outdated and sets the employees against one another instead of supporting camaraderie. This system is based upon annual departmental goals, once chosen are set in stone, are ranked from 1 to 4 with 1 being the echelon and four being the bottom of the barrel

After a mini-poll conducted by HR, 2015, ushered in a change. The single number label will be no more. In its place, five dimensions will now be evaluated: business results, impact on client success, innovation, personal responsibility to others, and skills (http://finance.yahoo.com/news/ibm-ditching-contentious-employee-review-195247489.html;_ylt=AwrBT6PjFrBWHqwApw9XNyoA;_ylu=X3oDMTByMjB0aG5zBGNvbG8DYmYxBHBvcwMxBHZ0aWQDBHNlYwNzYw–). These will include shorter-term goals, and quarterly feedback.  With this system the employees can gauge where they are and take necessary steps to improve their performance immediately.

The reasons for the proposed change is the feedback from the internal customer, a declining stock price due to poor operational success, dwindling morale within the organization based upon poor work life balance, employees that feel as if they do not belong because ideas are not being heard.

• Formulate three (3) valid reasons for the proposed change based on current change management theories.

There are multiple frameworks to use to assess readiness for change such as COPS, Seven-S and Burke-Litwin. COPS. Looks at four separate aspects of the organization and the comparative strengths and weaknesses of each are evaluated: Culture, Operations, People, and Systems (Hodges 439). Seven-S emphasizes the interaction of different parts of an organization. The foundation of this model is based on the interdependence amongst seven variables: strategy, structure, systems, staff, style, skills and shared values (Hodges 446).

• Appraise the diagnostic tools that you can use to determine an organization’s readiness for change.

Burke–Litwin model.  In this model the complexity and interdependence of the interior and exterior influences affecting change. It demonstrates in what way the external environment affects the performance of the organization and how organizational performance affects the external environment. It is predictive rather than prescriptive in that it specifies the nature of causal relationships and predicts the likely effect of changing certain elements rather than others. It also differentiates between two types of change: transformational change and transactional/incremental change (Hodges 437).

Seven-S and Burke-Litwin would be the tools I would use to determine if the organization is ready for change. Burke-Litwin simple because it is predictive. Knowing what the outcome can allow one to make adjustments and fine tune strategy. It is difficult to know where you are going if you cannot verify where you are. Seven-S because though everyone is an individual strategy it needs to align with the organizations mission; structure of the team needs to be common place as it is the official and unofficial distribution of task and duties; systems or the process (should be outlined); staff has to be onboard and working the details; style is conduct and philosophy of the people; skills are the abilities of the people; and shared values is the belief system of the people

• Propose two (2) diagnostic tools which you can utilize to determine if the organization is ready for change. Defend why you believe the diagnostic tools selected are the best choice for diagnosing change in the organization.

Based upon Seven-S variables I believe IBM is ready for change. The System is not operating at its most efficient and it is being pointed out by the Staff therefore, the Structure is also failing. The Strategy of old is not working. IBM (Style) has held a history of what some term Rape, Pillage, and Burn, where they acquire business, use up good things, and sell the company off or dissolve it. Trends in the market says we need more than buying power to sustain. The Shared values of the organization, THINKer’s, is that we have to change in order to maintain success in the market. Moving from hardware to software was the start but there is more to come.

• Using one (1) of the diagnostic tools you selected, assess the organization’s readiness for change.

The results indicate the transition period is here. IBM has been hardware or production heavy and has started to move towards service oriented and software niche. They were a catalyst for change as most production in the U.S. has moved to foreign soil because it is cheaper to import that to produce.

• Provide results of the diagnostic analysis: