Project

Presentation
Group 3 :

Akshay Singh 18P069

Organizational Design And
Danish Kapoor 18P078
Divyansh Garg 18P081
Jitesh Mittal 18P084
Change
Pankaj Bansal 18P091
Vishakha Sharma 18P119

Submitted to: Prof Madhushree Nanda Agarwal

Introduction - IBM
1911 1924 To Present Day

The company began It started off as a IBM has roughly IBM is moving
It was
in 1911, founded hardware 3,66,000 towards a more
renamed to
in Endicott, New manufacturer employees across service based
"International
York as producing state of the globe and is organization with the
Business
the Computing- the art computer present across 70 times, requiring more
Machines" in
Tabulating- systems countries client focus and thus
1924
Recording a regional dimension
Company (CTR)

Key Business Areas

IBM IBM IBM IBM IBM IBM

Cloud Watson Services Systems Security Research

Research in
Cloud architecture Artificial intelligence
areas such
by IBM for enterprises Global experts in Mainframe, Enterprise security as AI,
business cognitive and offerings blockchain
strategy, storage and quantum
technology and offerings computing
design

To cater to these needs, IBM currently follows a 3-D organizational structure with subtle variations across different
regions.
Stakeholder Analysis
S. No Stakeholder Goals Importance Goals met ?

1. Low cost standard solution Standardized products Very Low Yes

customer Low cost of products and maintenance Low No
( Low margin)

2. High cost customized solution Solutions based on cutting edge research High Yes
customer Customized solutions along with good customer service High Yes
( High margin)
High quality products/services High Yes
3. Employees Well defined career paths High Yes
Learning and development Average No
Receive good monetary and other benefits Average No
Work on innovative projects Average No
4. Shareholders Wealth maximization Very High Yes
5. Consultants Good compensation and defined career path High Yes
Learning and development. Freedom and autonomy, High Yes

• Shift of focus from hardware business with standardized products towards technological services and consulting requires
investment in research to build customized products with high margins.
• Therefore the product / geographical dimension in the matrix structure becomes important
• Resources are being pulled out from projects which involve legacy systems / standardized product and hardware solutions accordingly.
Previous Structure
This was meant to cater to salesforce
requirements for different regions,
industry segments and products

It had six dimensions which were

functions, products, geographies,
customers, products and channels
Previous Structure
New Structure
Product Focused
Structure

Characteristics :
• Product type divisions
• Function based
segments
• Geographical
divisions

These 3 dimensions
are matrixed together
to form the current
organizational
structure
New Structure
PRIMARY RESEARCH PRODUCT TYPE DIVISIONS

Based on primary research, these were the

insights gained about the new organizational Cognitive Solutions
and reporting structures at IBM

Global business
services

Technology
services and cloud
platforms

Global Financing

Systems
New Structure
Geographical Divisions
To cater to global businesses keeping in mind the A
regional differences, IBM also made use of B
geographical divisions: C
• Asia Pacific
• Europe/ Middle East /Africa
• Americas

Key Functions To Support Business Areas

Global Markets Research and

( Formerly sales and distribution) . 01 02 development’
Intellectual Property 03
04 Integrated supply chain
Human Resources .
. 05
06 Finance
 Understanding The Structure
Country Manager Global
• Dotted relationship
• Senior executive from Functional
individual’s product division DUAL Manager
• Product divisions • Direct reporting
segregated on regional relationship
basis REPORTING
• Regional product divisions
have functional divisions
also

The shift towards a product based structure reflects increasing focus towards providing technology
based solutions and consulting services. The matrix structure for consultants was at two levels :
Level 1: Each consultant is tagged to and reports to a • Level 2: Each consultant has a people manager also
service line, a geography leader and an industry leader. called functional manager responsible for employee
related issues .
• A project manager manages all the aspects of the project
assigned.
• People manager is usually tagged to service line and is a
direct reportee to the service head and geography head.
The performance evaluation of the consultant is
undertaken by the functional manager.
Stakeholder Map
Advantages & Disadvantages
Advantages Disadvantages Advantages Disadvantages
 The dual reporting structure  Since the performance   Difficult to track performance of
to product and functional evaluation is conducted by employees due to
seniors ensures that the global functional communication gaps as there is
functional expertise is manager, any communication work on global projects.
maintained along with gap may lead to an improper
proper research and learning. appraisal. This could lead to
Also every product gets the employee frustration and   A lot of time and effort is
requisite resources. high turnover rates.
wasted while reported to the
different heads.
 Since every product division  Innovation suffers at middle
is further segmented into level since the appraisal is
different regions, it is directly is conducted by the
ensured that products and global functional manager.
services are customized
according to regional
demands.
 IBM Checkpoint
• Introduced To Simplify
monitoring performance and Records and communicates
communicating feedback to performance successfully to
different stakeholders
multiple stakeholders

• Geographic distance between SAP based solution with the ACE

functional managers lead to Functions app provides access to checkpoint
communication gap and via smartphones for ease
improper performance
evaluation

Quarterly reviews along with weekly

follow ups for a fair process
Thank You