Professional Documents
Culture Documents
Title of The Project
Title of The Project
Title of The Project
1 Objectives 3
3 Methodology 5
5 Introduction to IBM 34
9 Questionnaire 59
11 Conclusion 75
OBJECTIVES
In the very high pace of the technological growth in the sector of Information Technology, IBM
is surely one of the pioneering organizations. I have decided to work upon the following
objectives:-
1) To study the HR practices of IBM. This would include the various aspects of HR
management. This would include the work culture which is being provided to the
2) To study the organizational strategies of IBM. This can be done by the study of the
organizational structure which exists in the company. The study of marketing strategy,
business lines of IBM, achievements and awards and SWOT analysis of the company will
resource practices which are prevalent in the India. IBM being one of the largest IT companies
in India is the best company to study the same. Also, the organizational structure and other
strategies have a far reaching impact on the Human Resource practices of a company. Hence,
Methodology
The study is exploratory in nature. All published and unpublished available on the subject
matter was consulted. Interview and discussions were held with the various executive/
Managers/ staff employed in IBM. The HRD functions/ activities being undertaken in IBM was
also studied. Primary and secondary data available with these organizations was also used for
In order to measure the employees perceptions of emerging HR trends in IBM, the survey was
undertaken. The survey was based on structured questionnaire. The questionnaire was mainly
based on objective type close-ended question, but few open ended questions were also
included.
The final questionnaire was administered in person to the extent possible and through mail if
needed. The 10 respondents were selected among the executives and staff working in IBM. The
convenient random sampling technique was used for the selection of the respondents.
Finally, the results of the survey has been presented in Tabular form, analyzed and interpreted
to meet the required needs of this project study and presented in Report form.
Introduction
people, is an essential part of every manager's responsibilities, but many organizations find it
"People are our most valuable asset" is a cliché which no member of any senior management
team would disagree with. Yet, the reality for many organizations is that their people remain
The rate of change facing organizations has never been greater and organizations must absorb
and manage change at a much faster rate than in the past. In order to implement a successful
business strategy to face this challenge, organizations, large or small, must ensure that they
The market place for talented, skilled people is competitive and expensive. Taking on new staff
can be disruptive to existing employees. Also, it takes time to develop 'cultural awareness',
product/ process/ organization knowledge and experience for new staff members.
As organizations vary in size, aims, functions, complexity, construction, the physical nature of
management. But, in most the ultimate aim of the function is to: "ensure that at all times the
business is correctly staffed by the right number of people with the skills relevant to the
business needs", that is, neither overstaffed nor understaffed in total or in respect of any one
Human Resources Management (HRM) is that branch of management that deals with managing
Management. However the term Personnel Management is being replaced in most spheres by
the term Human Resource Management or Human Resource Development (HRD) or simply
Human Resources (HR). In our text we shall be using these terms interchangeably.
function of Human Resource Management is to acquire, train, develop and retain the human
resources of the organisation so that with the help of these human resources, the organisation
• Manpower Planning
• Performance Appraisal
• Organisation Development
• Employee Counseling
• Compensation Planning
• Industrial Relations
• Employee separation
Manpower planning
The penalties for not being correctly staffed are costly. Understaffing loses the business
economies of scale and specialization, orders, customers and profits. Overstaffing is wasteful
and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect
Very importantly, overstaffing reduces the competitive efficiency of the business. Staffing level
planning requires that an assessment of present and future needs of the organization be
compared with present resources and future predicted resources. Appropriate steps then be
Thus the first step is to take a 'satellite picture' of the existing workforce profile (numbers, skills,
ages, flexibility, sex, experience, forecast capabilities, character, potential, etc. of existing
employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal
turnover, planned staff movements, retirements, etc, in line with the business plan for the
The result should be a series of crude supply situations as would be the outcome of present
planning if left unmodified. (This, clearly, requires a great deal of information accretion,
manager, whose main task may well be to scrutinize and modify the crude predictions of other
• Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new
What should emerge from this 'blue sky gazing' is a 'thought out' and logical staffing demand
schedule for varying dates in the future which can then be compared with the crude supply
schedules. The comparisons will then indicate what steps must be taken to achieve a balance.
That, in turn, will involve the further planning of such recruitment, training, retraining, labor
supply and demand into equilibrium, not just as a one–off but as a continuing workforce
planning exercise the inputs to which will need constant varying to reflect 'actual' as against
predicted experience on the supply side and changes in production actually achieved as against
An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to
determine their essential factors) written into a job description so that the selectors know what
physical and mental characteristics applicants must possess, what qualities and attitudes are
• In the case of replacement staff a critical questioning of the need to recruit at all
• Effectively, selection is 'buying' an employee (the price being the wage or salary
multiplied by probable years of service) hence bad buys can be very expensive. For that reason
some firms (and some firms for particular jobs) use external expert consultants for recruitment
and selection. Equally some small organizations exist to 'head hunt', i.e. to attract staff with
high reputations from existing employers to the recruiting employer. However, the 'cost' of
poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select
• Internal promotion and internal introductions (at times desirable for morale purposes)
• Careers officers (and careers masters at schools)
• Advertising (often via agents for specialist posts) or the use of other local media (e.g.
commercial radio)
Where the organization does its own printed advertising it is useful if it has some identifying
logo as its trade mark for rapid attraction and it must take care not to offend the sex, race, etc.
antidiscrimination legislation either directly or indirectly. The form on which the applicant is to
apply (personal appearance, letter of application, completion of a form) will vary according to
It is very desirable in many jobs that claim about experience and statements about
qualifications are thoroughly checked and that applicants unfailingly complete a health
questionnaire (the latter is not necessarily injurious to the applicants chance of being appointed
Before letters of appointment are sent any doubts about medical fitness or capacity (in
applicants to attend a medical examination. This is especially so where, as for example in the
case of apprentices, the recruitment is for a contractual period or involves the firm in training
costs.
Interviewing can be carried out by individuals (e.g. supervisor or departmental manager), by
panels of interviewers or in the form of sequential interviews by different experts and can vary
from a five minute 'chat' to a process of several days. Ultimately personal skills in judgment are
probably the most important, but techniques to aid judgment include selection testing for:
• Attainments
• General intelligence
(All of these need skilled testing and assessment.) In more senior posts other techniques are:
• Leaderless groups
• Command exercises
(These are some common techniques - professional selection organizations often use other
Largely the former consists of teaching interviewers how to draw out the interviewee and the
latter how to xratex the candidates. For consistency (and as an aid to checking that) rating often
intellectual levels, motivation, prospective potential, leadership abilities etc. (according to the
needs of the post). Application of the normal curve of distribution to scoring eliminates freak
judgments.
Employee motivation
To retain good staff and to encourage them to give of their best while at work requires
attention to the financial and psychological and even physiological rewards offered by the
Basic financial rewards and conditions of service (e.g. working hours per week) are determined
occupations but as much as 50 per cent of the gross pay of manual workers is often the result of
local negotiations and details (e.g. which particular hours shall be worked) of conditions of
service are often more important than the basics. Hence there is scope for financial and other
As staffing needs will vary with the productivity of the workforce (and the industrial peace
achieved) so good personnel policies are desirable. The latter can depend upon other factors
(like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as
Hence while the technicalities of payment and other systems may be the concern of others, the
Increasingly the influence of behavioral science discoveries are becoming important not merely
The former demand better-educated, mobile and multi-skilled employees much more likely to
be influenced by things like job satisfaction, involvement, participation, etc. than the
Hence human resource management must act as a source of information about and a source of
inspiration for the application of the findings of behavioral science. It may be a matter of
drawing the attention of senior managers to what is being achieved elsewhere and the gradual
education of middle managers to new points of view on job design, work organization and
worker autonomy.
An organization needs constantly to take stock of its workforce and to assess its performance in
contributors (should be an automatic process in the case of good managers, but (about
o what has been done to improve the performance of a person last year?
o and what can be done to improve his or her performance in the year to come?).
• To identify potential, i.e. to recognize existing talent and to use that to fill vacancies
higher in the organization or to transfer individuals into jobs where better use can be made of
numerical criteria (often this salary performance review takes place about three months later
and is kept quite separate from 1. and 2. but is based on the same assessment).
On-the-spot managers and supervisors, not HR staffs, carry out evaluations. The personnel role
• Advising top management of the principles and objectives of an evaluation system and
appraised.
o Introducing self-assessment;
used.
• Organizing and establishing the necessary training of managers and supervisors who will
carry out the actual evaluations/ appraisals. Not only training in principles and procedures but
also in the human relations skills necessary. (Lack of confidence in their own ability to handle
• Monitoring the scheme - ensuring it does not fall into disuse, following up on
evaluation / appraisal schemes is common and the temptation to water down or render
schemes ineffectual is ever present (managers resent the time taken if nothing else).
manner anyway (e.g. if there is a vacancy, discussion about internal moves and internal
attempts to put square pegs into 'squarer holes' are both the results of casual evaluation). Most
managers approve merit payment and that too calls for evaluation. Made a standard routine
task, it aids the development of talent, warns the inefficient or uncaring and can be an effective
form of motivation.
Industrial relations
Good industrial relations, while a recognizable and legitimate objective for an organization, are
difficult to define since a good system of industrial relations involves complex relationships
between:
(a) Workers (and their informal and formal groups, i. e. trade union, organizations and their
representatives);
(b) Employers (and their managers and formal organizations like trade and professional
associations);
(c) The government and legislation and government agencies l and 'independent' agencies like
Oversimplified, work is a matter of managers giving instructions and workers following them -
but (and even under slavery we recognize that different 'managing' produces very different
results) the variety of 'forms' which have evolved to regulate the conduct of parties (i.e. laws,
custom and practice, observances, agreements) makes the giving and receipt of instructions far
• 'Substantive', determining basic pay and conditions of service (what rewards workers
should receive);
• 'Procedural,' determining how workers should be treated and methods and procedures.
finance to support industrial action, some have policies not to strike, some employers are more
vulnerable than others to industrial action, some will not make changes unless worker
agreement is made first, and rewards always ultimately reflect what the market will bear);
the technology of production (the effect of a strike in newspaper production is immediate -it
the distribution of power within the community - that tends to vary over time and with
economic conditions workers (or unions) dominating in times of full employment and
Broadly in the Western style economies the parties (workers and employers) are free to make
their own agreements and rules. This is called 'voluntarism'. But it does not mean there is total
• Determine minimum standards of safety, health, hygiene and even important conditions
of service;
functions, thus:
1. To keep abreast of industrial law (legislation and precedents) and to advise managers about
their responsibilities e.g. to observe requirements in respect of employing disabled persons, not
etc. in relation to discipline and redundancy, and similarly to determine organizational policies
(in conjunction with other managers) relevant to legal and moral requirements (see also 4.).
2. To conduct (or assist in the conduct) of either local negotiations (within the plant) or similarly
not directly involved the personnel manager will advise other managers and administrators of
3. To ensure that agreements reached are interpreted so as to make sense to those who must
operate them at the appropriate level within the organization (this can involve a lot of new
learning at supervisory level and new pay procedures and new recording requirements in
administration and even the teaching of new employment concepts – like stagger systems of
4. To monitor the observance of agreements and to produce policies that ensure that
agreements are followed within the organization. An example would be the policy to be
followed on the appointment of a new but experienced recruit in relation to the offered salary
5. To correct the situations which go wrong. 'Face' is of some importance in most organizations
and operating at a 'remote' staff level personnel managers can correct industrial relations
errors made at local level without occasioning any loss of dignity (face) at the working level.
'Human resource management' and the obscurity of its reasoning can be blamed for matters
which go wrong at plant level and for unwelcome changes, variations of comfortable
6. To provide the impetus (and often devise the machinery) for the introduction of joint
in respect of working conditions and behavior could never cover every situation likely to arise.
Moreover the more demanding the task (in terms of the mental contribution by the worker to
its completion) the more highly–educated the workers need to be and the more they will want
to be consulted about and involved in the details of work life. Matters like the rules for a
flexitime system or for determining the correction of absenteeism and the contents of jobs are
three examples of the sort of matters that may be solely decided by management in some
organizations but a matter for joint consultation (not negotiation) in others with a more twenty-
7. To provide statistics and information about workforce numbers, costs, skills etc. as relevant
to negotiations (i.e. the cost of pay rises or compromise proposals, effect on differentials and
possible recruitment/retention consequences of this or whether agreement needs to be known
awards and possibly pension and other records; to produce data of interest to management in
respect of personnel matters like absentee figures and costs, statistics of sickness absence,
costs of welfare and other employee services, statements about development in policies by
other organizations, ideas for innovations; to advise upon or operate directly, grievance,
Attention to the mental and physical well-being of employees is normal in many organizations
as a means of keeping good staff and attracting others. The forms this welfare can take are
many and varied, from loans to the needy to counseling in respect of personal problems.
• Schemes for occupational sick pay, extended sick leave and access to the firm's medical
adviser;
requirements in respect of quotas of disabled workers and a need for 'certificates' where quota
• Provision of financial and other support for sports, social, hobbies, activities of many
• Possibly assistance with financial and other aid to employees in difficulty (supervision,
• Care for the welfare aspects of health and safety legislation and provision of first-aid
training.
The location of the health and safety function within the organization varies. Commonly a split
of responsibilities exists under which 'production' or 'engineering' management cares for the
provision of safe systems of work and safe places and machines etc., but HRM is responsible for
administration, training and education in awareness and understanding of the law, and for the
training is the systematic development of the attitude, knowledge, skill pattern required by a
person to perform a given task or job adequately and development is 'the growth of the
• Provide the conventional training of new and young workers (e.g. as apprentices, clerks,
etc.);
From time to time meet special needs arising from technical, legislative, and knowledge need
changes. Meeting these needs is achieved via the 'training loop'. (Schematic available in PDF
version.)
The diagnosis of other than conventional needs is complex and often depends upon the
inspiration include:
• Common sense - it is often obvious that new machines, work systems, task
etc. and behavioral failures revealed by absentee figures, lateness, sickness etc. records;
experience of others;
• The suggestions made by specialist (e.g. education and training officers, safety
Designing training is far more than devising courses; it can include activities such as:
meetings;
• Undertaking planned reading, or follow from the use of self–teaching texts and video
tapes;
• Learning via involvement in research, report writing and visiting other works or
organizations.
• Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation
Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identify
needs to modify or extend what is being provided, to reveal new needs and redefine priorities
and most of all to ensure that the objectives of the training are being met.
The latter may not be easy to ascertain where results cannot be measured mathematically. In
the case of attitude and behavioral changes sought, leadership abilities, drive and ambition
fostered, etc., achievement is a matter of the judgment of senior staffs. Exact validation might
be impossible but unless on the whole the judgments are favorable the cooperation of
managers in identifying needs, releasing personnel and assisting in training ventures will cease.
In making their judgments senior managers will question whether the efforts expended have
produced:
• Faster results in making newcomers knowledgeable and effective than would follow
from experience;
• Improvements in the qualifications of staff and their ability to take on tougher roles;
• Better employee loyalty to the organization with more willingness to innovate and
accept change.
taking a strategic view of a very important resource i.e. Human Resource. It helps management
in identifying key skill sets, knowledge, values required in the employee and the rewards that
are needed to be given to the employees so that the organisation goals are fulfilled. Also like
other management functions, it has to ensure that these resources are available at an optimal
cost. It has to look into various training and development activities to ensure this. This is a key
area for Human Resource Management as it shows their contribution in terms of money. The
money here would be the opportunity cost incurred due to appointing of new employees
The HR manager has a dual role in the organisation. He performs the role of an executive as
well as a consultant. Managing people is not only a HR area but also part of the job of line
managers. These managers are managers heading various activities like accounts, audit,
production, marketing, sales etc. They have people working under them and have to manage
them too. There are times when line managers have problems handling employees and are
unable to resolve the issue. This is where the HR person steps in as a consultant. The HR person
can provide advice to the line manager to tackle the situation. This is in addition to the
executive role he performs. The executive role of the HR person is his role in carrying out the
routine activities of his area. There are occasions when they have to on both the hats of an
executive as well as that of a consultant. A typical example is the role of the HR person when
recruiting people for line functions, where line managers decide as they have the expertise,
they help the line managers with advice while simultaneously carrying out their executive role
of recruiting.
The objectives of managements, the ways in which enterprises are managed to achieve these
objectives and the human resource management (hereinafter referred to as "HRM") and
industrial relations (hereinafter referred to as "IR") initiatives in this regard, are affected by
pressures, many of which are exerted by globalization. Changes in IR practices (rather than in
institutions and systems) such as increased collective bargaining at enterprise level, flexibility in
relation to forms of employment as well as in relation to working time and job functions have
occurred as a result of such factors as heightened competition, rapid changes in products and
processes and the increasing importance of skills, quality and productivity. These factors have
also had an impact on HRM policies and practices. In managing change, the key elements
include employee involvement in effecting change, greater customer orientation, and ensuring
that the skills of employees are appropriate to the production of goods and the provision of
services acceptable to the global market. As such, managing people in a way so as to motivate
them to be productive is one important objective of HRM. The implications and consequences
foreign direct investment interlocking economies, as well as increased free trade. The inability
2. Governments are increasingly less able to control the flow of capital, information and
3. There has been de-regulation of financial and other markets, and the integration of
markets for goods, services and capital such as the European Community.
4. It has led to the de-nationalization of enterprises and the creation of global companies
investment, goods and services. This means, inter alia, the necessity for high quality skills at all
levels to attract high value-added activities, as distinct from cheap labour low value-added
India’s huge population provides it with a critical competitive advantage during a period of
increasing concerns regarding an aging workforce in the developed world and talent shortages
globally.
In this global context, India can consider itself relatively lucky. Just 7 percent of Indians are
above the age of 60. In 25 years time only 12 percent will be above 60. India will continue to be
young and will see a swelling workforce of scientific, technical, and professional talent.
Despite this seeming competitive advantage, the fact is that due to its late start on the road to
development and a strong history of union activity, India has traditionally lagged in the
systematic development of high-quality talent. There have been a lot of talented professionals
around, but Indian organizations have only in the past few decades engaged in a focused effort
In the first 40 years after Indian independence, slow economic growth rates, militant unionism,
the protected nature of the Indian economy (and correspondingly limited concern with
employee productivity) as well the dominance of public-sector enterprises in key industrial
sectors meant that companies did not view HRM as a key business imperative. Opportunities in
the private sector for ambitious and talented people were limited and employee mobility was
low.
Starting mid-1991, this all started to change. Faced with an economic crisis due to a fiscal lack
of discipline and negligible foreign exchange reserves, the country started on the path of
economic liberalization. Effectively, this meant the end of the tradition of industrial licenses, a
The message was clear – the rules of doing business in India were changing. And they were
changing in ways that they had never before. In a nutshell, if one was to draw the major themes
in the Indian economy in the decade of the 1990s, they would be:
sectors
financial and regulatory environment, and a noisy but active democracy are just some of the
factors that are cited as a part of India’s portfolio of advantages. These advantages combined
with the new, more positive economic climate has led to major changes in the landscape for
HRM.
Employee mobility – Gone are the days of lifetime employment and stable careers. While in
certain sectors such as heavy manufacturing or in public-sector organizations this still may not
Diminishing employee loyalty – The increasing employee mobility and proliferation of job
opportunities caused the first casualty in the form of eroding employee loyalty. The somewhat
paternalistic style of people management had created an aura about being stable with one job
or organization. The 1990s saw a total reversal with job changes, and even career changes,
becoming acceptable. The longevity of employees started being counted in a few years or even
The global Indian manager – A new trend that has emerged is the use of India as a sourcing
ground for global talent. Topping the list of organizations seeking Indian talent are global
consulting majors and investment banks. This trend also validated what had already been
witnessed in software and information technology: the premium value attached to Indian
talent.
Shedding the welfare focus – Given the strong welfare focus and the employee-centric labor
legislation in India, job security had been a thing taken for granted. However, many
organizations, including some from the public sector, recently have gone in for a systematic
productivity and becoming lean has been a fundamental mindset shift among Indian managers.
We can focus on five broad themes that typify the nature of the HRM challenges in India.
Individuals scouring for job opportunities in the market have many more choices today. The
changed dynamics in the recruitment market impacts on the retention strategies within
organizations as well – the usual tactics of paying above the market or high-impact roles may
2. Focus on efficiency
outsource, and automate. This has happened with the enhanced use of outsourcing and
technology solutions to transform the transactional nature of the HRM function. In today’s
changing context, HR professionals are being challenged to show results and deliver tangible
value.
In recent years trade unions have been reluctant to call for strikes because they are afraid that
a strike may lead to the closure of the unit. Service sector workers feel they have become
outsiders and are becoming increasingly disinterested in trade union activities. Instead of
demanding higher wages, allowances, or facilities, trade unions now demand job security and
some are even willing to accept wage cuts or wage freezes in return for job protection.
The liberalization process not only opened India to the globe, but also allowed leading Indian
organizations to arrive on the global stage. While Infosys, Wipro, and TCS are prominent names
in the IT industry globally, large multi-business houses such as Reliance, Tata Sons, and the AV
The challenge of managing diversity on a global scale will be a new one for Indian business
leaders and HRM professionals. The demand for skills that can effectively integrate cultures,
manage diversity, initiate communication mechanisms across time zones, and still maintain a
As a large majority of cutting-edge research and practices in the area of management thinking
(including HRM) has been in the West, more specifically in the United States, what is the level
of “fit” with the realities of different cultures? Local adaptations of global HRM initiatives have
been very successful in some case, but not in others. As far as the “fit” of these concepts and
International Business Machines Corporation abbreviated IBM and nicknamed "Big Blue" (for
corporation headquartered in Armonk, New York, United States. The company is one of the few
information technology companies with a continuous history dating back to the 19th century.
IBM manufactures and sells computer hardware and software (with a focus on the latter), and
offers infrastructure services, hosting services, and consulting services in areas ranging from
IBM has been well known through most of its recent history as the world's largest computer
company and systems integrator, with over 388,000 employees worldwide, IBM is the largest
and most profitable information technology employer in the world. IBM holds more patents
than any other technology company and has eight research laboratories worldwide. The
company has scientists, engineers, consultants, and sales professionals in over 170 countries.
IBM employees have earned five Nobel Prizes, four Turing Awards, five National Medals of
Technology, and five National Medal Of Science. As a chipmaker, IBM has been among the
COMPANY PROFILE
The company which became IBM was founded in 1896 as the Tabulating Machine
Company by Herman Hollerith, in Broome County, New York (Endicott, New York or
Binghamton, New York), where it still maintains very limited operations. It was incorporated as
Computing Tabulating Recording Corporation (CTR) on June 16, 1911, and was listed on the
New York Stock Exchange in 1916 by George Winthrop Fairchild. CTR's Canadian and later South
American subsidiary was named International Business Machines in 1917, and the whole
company took this name in 1924 when Thomas J. Watson took control.
IBM's history dates back decades before the development of electronic computers. Of the
companies merged to form what later became IBM, the oldest was the Tabulating Machine
punched card data processing equipment. Hollerith's series of patents on tabulating machine
technology, first applied for in 1884, drew on his work at the U.S. Census Bureau from 1879–82.
Hollerith was initially trying to reduce the time and complexity needed to tabulate the 1890
Census. His transition to the use of punch cards in 1886 laid a foundation for generations of
The company which became IBM was founded in 1896 as the Tabulating Machine Company by
Herman Hollerith, in Broome County, New York (Endicott, New York or Binghamton, New York),
where it still maintains very limited operations. It was incorporated as Computing Tabulating
Recording Corporation on June 16, 1911, and was listed on the New York Stock Exchange in
1916 by George Winthrop Fairchild. CTR's Canadian and later South American subsidiary was
named International Business Machines in 1917, and the whole company took this name in
New York, United States. The company is one of the few information technology companies
with a continuous history dating back to the 19th century. IBM manufactures and sells
computer hardware and software (with a focus on the latter), and offers infrastructure services,
hosting services, and consulting services in areas ranging from mainframe computers to
nanotechnology.
IBM has been well known through most of its recent history as the world's largest computer
company and systems integrator. With over 388,000 employees worldwide, IBM is the largest
and most profitable information technology employer in the world. IBM holds more patents
than any other U.S. based Technology Company and has eight research laboratories worldwide.
The company has scientists, engineers, consultants, and sales professionals in over 170
countries. IBM employees have earned five Nobel Prizes, four Turing Awards, five National
Medals of Technology, and five National Medals of Science. As a chip maker, IBM has been
In 2002, IBM strengthened its business advisory capabilities by acquiring the consulting arm of
professional services firm. The company has increasingly focused on business solution-driven
consulting, services and software, with emphasis also on high-value chips and hardware
technologies; as of 2005 it employs about 195,000 technical professionals. That total includes
about 350 «Distinguished Engineers» and 60 IBM Fellows, its most-senior engineers. It should
be noted, however, that IBM and some other U.S. firms’ use the term 'engineer' in a broad
sense, applying it to technicians from diverse disciplines that may not be graduates from
In 2002, IBM announced the beginning of a US$10 billion program to research and implement
"on demand" to all businesses as a metered utility. The program has since then been
implemented.
In the same year its hard disk operations was sold to Hitachi.
IBM has steadily increased its patent portfolio since the early 1990s, which is valuable cross
licensing with other companies. In every year from 1993 to 2005, IBM has been granted
significantly more U.S. patents than any other company. The thirteen-year period has resulted
in over 31,000 patents for which IBM is the primary assignee. In 2003, IBM earned 3415
Protection of the company's intellectual property has grown into a business in its own right,
generating over $10 billion dollars to the bottom line for the company during this period. A
2003 Forbes article quotes Paul Horn, head of IBM Research, saying that IBM has generated $1
In 2004, IBM announced the proposed sale of its PC business to Chinese computer maker
Lenovo Group, which is partially owned by the Chinese government, for US $650 million in cash
and US $600 million in Lenovo stock. The deal was approved by the Committee on Foreign
Investment in the United States in March 2005, and completed in May 2005. IBM acquired a
19% stake in Lenovo, which moved its headquarters to New York State and appointed an IBM
executive, Steve Ward, as its chief executive officer. The company retained the right to use
certain IBM brand names for an initial period of five years. As a result of the purchase, Lenovo
inherited a product line that features the ThinkPad, a line of laptops that had been one of IBM's
As of 2004, IBM had shifted much of its focus to the provision of business consulting & re-
engineering services from its hardware & technology focus. The new IBM has enhanced global
delivery capabilities in consulting, software and technology based process services—and this
On June 20, 2006, IBM and Georgia Institute of Technology jointly announced a new record in
silicon-based chip speed at 500 GHz. This was done by freezing the chip to 4.5 K (−269 °C;
−452 °F) using liquid helium and is not comparable to CPU speed. The chip operated at about
350 GHz at room temperature. IBM acquires SPSS in July 2009 for $1.2 billion.
SWOT ANALYSIS
STRENGTH WEAKNESS
Valuable intellectual property, 260,000 expensive employees
A multi-national organization
OPPORTUNITY THREATS
Low cost generic competition Outsourcing
IBM stands 14 in Fortune 500 companies with a revenue scale of $103,630 millions with profits
of $12,334 millions.
AWARDS:
Corporate Citizenship: IBM was ranked the no.1 ethical corporation by Covalence, the
Swiss ethical ranking agency, above 581 businesses across 18 sectors, The rating is
based on capture of information from media and the internet, matching corporate
Corporate Citizenship: IBM Singapore won seven awards at the Singapore HR Awards
Corporate Citizenship: IBM was named one of the "50 Most Socially Responsible
Environment: IBM Canada Ltd. has been selected as one of Canada's Greenest
Employers. This special designation recognizes the employers that lead the nation in
Accessibility: IBM Spain was recognized as the best company for social action in 2008 by
Corporate Citizenship: Stan Litow, Vice President, IBM Corporate Citizenship &
Corporate Affairs, was chosen to ring the opening bell at the NY Stock Exchange on
February 23, International Corporate Philanthropy Day. He accepted the National
Corporate Citizenship: In Taiwan, IBM was ranked No. 2 in the Corporate Citizen Survey
of the foreign company group of Commonwealth Magazine's 2009. For the last three
consecutive years, IBM has been selected as one of the top 10 corporate socially
responsible companies.
Corporate Citizenship: IBM Poland has been awarded the status of 'Best Practice for
Business and Society' by the Responsible Business Forum, the country's largest
Corporate Citizenship: IBM Romania has been recognized with a 'diploma' award from
the Romanian Donors Forum and the Trust for Civil Society in Central and Eastern
Europe for being one of the top corporate socially responsible companies.
Accessibility: IBM Spain and Association Semilla's joint Social GNU project has won the
title of best 'Best IT Project' at an awards ceremony hosted at the Ministry of Industry.
Corporate Citizenship: IBM China was awarded a certificate of appreciation for their
Corporate Citizenship: For the seven consecutive year, IBM Hong Kong has been
awarded with "The Caring Company Award" by the Hong Kong Council of Social Services.
AWARD ASSOCIATED WITH IBM:
The Impact Best of Show Award recognizes Cross View, one of the IBM sponsors of the
Impact conference, for the solution that best demonstrates the unique power of using IBM
The SOA Cost Optimization Award recognizes Miracle Software Systems, Inc. and its web
methods to WebSphere Message Broker and WebSphere Process Server migration solution
for exploiting IBM SOA and WebSphere and providing a proven solution that helps
customers achieve cost optimization, agility, and increased ROI (Return on investment).
The Business Process Management Award recognizes Ascendant Technology for its “Invoice
Workflow” for Accounts Payables as the most exceptional solution in helping customers to
improve their efficiency, elasticity, and control of their key business processes across the
enterprise.
Green Partner Award - Enterprise Information Management
The Green Partner Award recognizes Enterprise Information Management (EIM) for its
GreenCert solution for excellence in helping businesses through use talent, natural
resources, and technology in smarter ways. IBM's GreenCert play an important role in
helping address business challenges, including rising energy costs, regulatory mandates, and
greenhouse gases an energy company realizes when it takes steps to reduce emissions.
The Distributor Excellence Award recognizes Tech Data Azlan as a high value-add distributor
who is leading the charge in building their Business Partners' ability to leverage IBM SOA
and WebSphere software capabilities in creative, leading edge, and exciting way.
Projectized Organization
Any organizational structure in which the project manager has full authority to assign
priorities, apply resources, and direct the work of persons assigned to the project.
A project organization is generally a temporary thing. It will only exist from the projects start
until its end. All the project team members are coming from different organizations of part of
the organization. They will all have a temporary assignment to the project. So, they have not
only a project manager, but also their 'normal' boss, who orders him around when the
employee is not in the project. These 'normal bosses' are an important group of stakeholders.
The projectized organization should be a result from the project strategy; it should be
constructed in such a way that the strategy can be implemented within the environment of the
project. A very obvious example: if the strategy contains an aspect of having independent
reviews, the organization should support its independence, by creating a separate working
The project team that does the work should be as small as possible. Small is beautiful, and
effective. Don't start inviting everyone to the organization. Only people who have an added
value and will spend a significant amount of time to the project can be in the core organization.
Try to avoid going overboard on working groups. Working groups can drown a project in
communication overhead. If there should be that much discussion anyway, postpone the
Next to the people who do the work, are the people that have some influence on it, but do
nothing; a large part of the stakeholders. The project organization can be used to satisfy some
wishes of stakeholders to create the much needed win-win situations. In its most simple form,
you can create a project trashcan where you put in the people who just want to be involved in
the project (to save their territory), but which you have no use for.
Current members of the board of directors of IBM are:
Ayan Barua – CEO, PICSimon Shum Siu-hung – CEO, Lenovo Computer Ltd.
Michael L. Eskew – former Chairman and CEO, United Parcel Service, Inc.
Corporation
Ria Leslie Sanchez – Junior Director International Programming Operations and External
Affairs, IBM
MANAGEMENT PRACTICES
latter)
Helps identify problem areas and determines where further in-depth analysis is
required. It also help to remediate and repair issues that have been identified, including
access management.
Hosting services:
IBM provides one of the most comprehensive application hosting services in the
industry from basic support to global deployments. With IBM Application Hosting
services, you can leverage the leading applications that can help reduce your time to
market or boost customer satisfaction without the usual upfront infrastructure costs or
Consulting services:
IBM business strategy consultants support clients in the translation of innovative and
core competencies into real business value by formulating strategies, managing change,
and realizing benefits. Working collaboratively with clients, we provide solutions to the
business needs that your organization is confronted with, such as growing revenues,
Recently entered into an outsourcing business (customer services and technical support)
a unit called IBM DAKSH is specially set up for the out sourcing business. Dealing in
Green sigma:
IBM’s goal with the Green Sigma TM offering is to partner with clients to drive
innovation, achieving economic benefits for the business and reducing impact to the
environment. This focus on ways to develop processes to bring down the carbon
units, enabling the organization to more effectively source, evaluate and motivate employees in
At the same time, HR needs to continue to provide administrative services that are reliable,
cost-effective and responsive to the needs of business units around the globe. HR must perform
This perspective shaped a series of discussions that took place in March 2006 with more than
25 senior HR executives from around the globe. Over four days, HR leaders from various
industries, including utilities, financial services, retail and government - to name a few -
engaged in a dialogue to share insights and best practices on a variety of topics. These included
issues such as changing workforce demographics, the role of workforce analytics in developing
strategic insights, and the structure and competencies of the HR policies of the future.
Across industries, changing business conditions, demographics and globalization have raised
the need to understand and manage the dynamics of talent, from sourcing to resource
management to recognition systems. To allow HR to focus on these more strategic issues, the
next generation HR organization must promote the use of shared services and employee self-
service to move away from its traditional role of answering questions and resolving disputes.
Further, the HR organization needs to work more effectively with other vendors in its extended
enterprise, providing the tighter coordination that is needed to deliver administrative services.
Finally, HR needs to look inward at its own talent model, to help ensure that its employees have
the capabilities, skills and confidence to provide strategic guidance to the business.
The roundtable participants highlighted the clear need for the HR function to focus its limited
• Understanding the impact of both globalization and changing workforce demographics on the
supply of talent.
• Determining the drivers of employee retention and developing strategies for retaining top
performers.
• Engaging with the corporate strategy process to determine the need for critical skills and
capabilities
• Balancing the supply and demand for talent on a dynamic basis within and across business
units.
For the HR organization to take on these new responsibilities, it must be able to shed
some of its more routine tasks and restore its internal capability. Many organizations have
moved to using outsourcing vendors to perform routine administrative tasks, while others have
• Getting out of the business of “answering questions, ”shifting to dealing with issues that are
more strategic. Spend less time managing routine transactions and interactions that too often
fill the days of HR professionals. Place the nexus of addressing administrative issues in one
place. Track employee inquiries to determine whether HR policies and procedures are easy to
understand and apply, and whether they need improvement. At the same time, increase the
• Developing relationships across organizational boundaries: More and more, companies are
non-core tasks such as payroll and benefits administration, as well as employee service center
• Building capability in the HR talent pool: Improve or acquire the skills needed for a greater
strategic orientation in several ways: bringing in professionals from outside the company;
attracting existing employees from outside the HR function to join the HR team; providing
services and capabilities. The window for evolving into a more strategic HR organization is now -
miss it, and more than the power and prestige of the HR function will be at stake.
We can consider a few recent twists and turns in marketing point of view:
• Bricks and Clicks — not “simply clicks”: Despite an early lead by Internet pure plays with their
plentiful brand awareness campaigns, brick-and-click enterprises now-a-days seem to have the
major advantages.
• Private trumps public: Creative marketing tactics could not save the multitude of public
interactions launched over the last few years. With the exception of a few, large industry
stalwarts, enthusiasm surrounding public exchanges has now shifted to private models that
• Inside turns out: Companies are discovering that internal assets, such as online employee
Business-model experimentation does not always produce expected results. In fact, to many
executives, today’s marketing expenditures can feel more like wagers than investments.
Through IBM works with leading marketers across a variety of industries, IBM has honed in on
five pragmatic tips that can help position a business for solid performance — even in turbulent
times also.
Many leaders establish a central framework for their brand — one that clearly
communicates what elements should remain constant across geographies and what
marketing dimensions. It should address the entire marketing mix — from advertising to
the Web presence. Example — a company’s website might vary in appearance, even
An experience is not simply about the quality of services received during a business
transaction, but also it is the overall feeling a consumer has after each encounter with a
company. IBM has developed a methodology that can help the companies architect the
exact type of emotional “imprint” they would like to leave with customers at each and
easily understandable set of target emotional outcomes, marketing and operations into
While providing the customer with a single, consistent view of the enterprise is
critical; enterprises must also develop an overall view of each customer. A consolidated
view benefits both the customers and the business. IBM practices on some practical
o Look At The Details: Analyzes when, where and how customer data can be
gathered.
o Take Leadership Seriously: A strong leader, who is accountable for all touch
points, must be appointed. IBM has established an executive position — Chief
Marketers cannot go far without the right technology platform for implementing
marketing initiatives. To position themselves and retaining their positions most flexibly,
As one of the world’s most recognized brands, IBM make out the constant challenges of
Employees are the essence of each and every organization. IBM has one of the largest
professional workforces around the world. IBM is the one of the most admired company in the
world, and is also retaining the position. It is possible only with the support of the quality of the
leaders and managers. IBM brought the expertise of their people, a workforce that is
responsive to market requirements, with the skills and expertise to deliver value to clients, is
resilient to market forces and delivers strong leadership into the market.
Which IBM is able to retain its position as one of the World’s top
The attributes that qualify these 3Cs are the Top Reasons that people come to work at IBM.
CAPABILITY – Molding Global Leaders and Fostering Employee Talent: To be a leading
career growth. IBM offers a wide basket of career opportunities allowing employees to
move to different jobs and career paths within the company. IBM offers employees
international careers, offering immense scope for professional development and career
growth, across technological and functional areas. IBM recognizes talent and offers
global career growth opportunities beyond India with fast track options, offering a
complete career advantage of working for an IT leader and visionary in the On Demand
world. One of IBM’s key strategies and policies is to attract, motivate and retain the best
talent in our industry, and develop them into global leaders. The company makes sure
talented employees are recognized for their achievements and encourages them to seek
fresh challenges and learn new skills through training and mentoring programs. Besides
newer ones, IBM offers employees several programs for employee development, to help
IBMers become more effective in their jobs. Some of these initiatives include Mentoring,
Training Programs. IBM’s investments in training prepare employees with the skills they
need now and in the future. IBM earned the No 1 ranking in Training Magazine's
"Training Top 100" list, an annual ranking of companies that understand, embrace and
use training to achieve real business results, support corporate values and enhance the
work lives of employees. IBM has ranked among the top five of the Training Top 100
empowering employees as partners to success, offering a global work culture and best
workplace amenities. At IBM, cubicles are out and mobile offices are in. Workforce
flexibility is a competitive advantage for IBM. It helps make the Employer of Choice for
new hires, and enables them to retain their top talent. Some of IBM’s workplace
flexibility programs include individualized daily work schedule, Flexible Work Week,
Regular Part-Time, Leave of Absence, and Remote/Mobile Work Options. IBM strives to
make life more convenient for the employees so they can save their energy and be more
productive at work. The idea is to ensure IBMers work better even when they are home,
or on the move. Most mobile employees are provided with IBM laptops, which function
like their office “cabinet,” containing all their files, presentation materials, and a whole
extent of support services that they need to meet their clients’ and other requirements.
Be it downloading files, checking and replying to mail, or linking to the electronic library,
IBMers can dial into the IBM network, and get connected, through the nearest landline
telephone.
CULTURE: Workforce Diversity: Diversity in IBM means welcoming all the people to the
success of the employees, enhances the ability to satisfy their clients and advance IBM’s
continued growth. IBM's definition of diversity includes all human characteristics that
make us unique as individuals. It includes everyone and excludes no one. Race, gender,
geographic origin, culture, lifestyle, age, disability, economic status, marital status, and
religion are just some of the characteristics that define them as people. IBM has
employee of IBM, was awarded the Helen Keller Award in 2004, by the National Center
It would be really kind on your part to take out a few minutes from your busy schedule
and fill up this questionnaire which would be analysed for the completion of my
research report.
Q:1) What are the typical HR challenges that your organization faces?
Recruitment
Manpower Planning
Training
Compensation
Retention
Below 5%
5-10%
10-15%
15-20%
Above 20%
Q:3) What are the methods adopted by the company to find the cause of the turnover?
Exit interview
Climate Survey
Grapevine
Q:4) What are the methods adopted by the company to retain people?
Career growth
ESOPs
Flexi-time
Q.5) Do you think that the industrial relations are being well planned in your organization?
1) Yes
2) No
3) Don’t know
Q. 6) Do you think that the compensation is based on merit? Alternatively, do you think that the
1) Yes
2) No
3) Don’t know
1) Yes
2) No
3) Don’t know
Q.8) What do you think about the appraisal policy in your company?
2) It is unfair
3) No comments
Q.9) Do you think your organization is able to attract the best talent pool available in the
industry?
1) Yes
2) No
3) Don’t know
Q.10 ) Do you think that the employees are motivated enough in the direction of the
organizational goals?
1) Yes
2) No
3) Don’t know
Data analysis, findings & recommendations:
This section deals with the analysis of the primary data which was been collected from the
respondents. Here we will analyze the broad trends and the problems. Also recommendations
will be given to improve those problems. Thus, the complete data crunching and
Q.1) What are the typical HR challenges that your organization faces?
Recruitment
Manpower Planning
Training
Compensation
Retention
Any other
As is clear from the response, recruitment and retention emerges to be the most difficult HRM
0
Below 5% 5-10% 10-15% 15-20% Above 20%
As is clear from the graph, most people believe that 10-15% is the employee turnover rate.
Q.3) What are the methods adopted by the company to find the cause of the turnover?
Exit interview
Climate Survey
Employee Satisfaction Survey
Grapevine
Any other method
Two of the most popular techniques in IBM to find the cause of turnover are: Exit interview &
As regards the retention program of the company is concerned, IBM provides a steady growth
policy for its employees which is always being valued by them and hence is considered as the
Yes
No
Don't know
As is seen in the graph, most people said that the industrial relations are being very properly
planned. Thus, the interaction of IBM as an entity with the external environment is pretty much
well planned. We can take this as their proper organizational planning efforts.
Q.6) Do you think that the compensation is based on merit? Alternatively, do you think that the
7
6
5
4
3
2
1
0
Yes No Don't know
As can be seen from the graph, most people feel that the employees at IBM are adequately
compensated for their services. Some people still believe that they are not adequately
compensated. Thus, it is important for the HR at IBM to address the concerns of such
Yes 9
No 1
Don't know 0
As can be seen from the data, almost everyone thinks that the training function of IBM is very
much streamlined. Thus, IBM focuses on training its resources. Also, the training/ induction
Q.8) What do you think about the appraisal policy in your company?
again there is a section of people who feel that the appraisal policy is biased.
Q.9) Do you think your organization is able to attract the best talent pool available in the
industry?
Don't know
No
Yes
0 1 2 3 4 5 6 7 8 9
Most of the people think that IBM is able to attract best talent in the industry. It is majorly
organizational goals?
Yes
No
Don't know
As can be seen from the pie chart, most of the employees are motivated towards the goals of
the company. Thus, the HR at IBM is being able to motivate people in best possible manner.
RECOMMENDATIONS
1) To aid in retention, companies must look at valued employees place highly and attempt
2) Invest efforts and money in becoming an employer of choice and build company
3) Companies need to continually invest to ensure that they are a step ahead and know
executives can make this happen by discussing both company goals as well as
employee’s ambitions.
7) One of the most important tasks for any manager is hiring an employee. Yet, very few
are rained in this skill. Responsibility lies with management in hiring managers. Right
8) Look at retention linked performance bonuses for managers who are good at retaining
their people.
CONCLUSION
We have studied the information on the various management practices and its’ structures
followed by IBM and we have analyzed their working strategy, business lines, and their
achievements and awards. By analyzing all these subjects, we can conclude that IBM will
surely gain all it’s successes and achievements due to their well trained and maintaining
management team, well prepared HR policies and the working environment for the
employees.
Complex business equations made more difficult y competitors all offering great incentives,
good work environment, and work place satisfaction and career development
opportunities.
Retention problems are like cancer that can hit any company anytime, but there are ways to
combat leaving, most importantly knowing your staff needs and how to provide them.
The biggest challenge employer’s face is the changing nature of workplace with advent of
The buoyant job market is one of the most serious issues facing employers who are
The number one reason for employees to leave is lack of opportunities for career
development.
Opportunity to work on particular technology leads to employees leaving the company. This
is more so, where the companies are big with more number of employees and it becomes
professional positions and the challenge of providing interesting and varied work and global
opportunities
People are becoming increasingly selective about who they work for “Can I be proud of the
It’s a candidate tight market where there are more jobs than candidates and employees feel
they are better informed about what the market is providing and employment conditions in
Salary is not the single most important factor. Employees are also looking at poor
“Who is hit?” lower levels are the most vulnerable. Small companies are becoming