Abstract
Management is an important element in the success of an organization. Therefore, it is imperative for organizations to integrate optimal management strategies. This report outlines the contribution of management to IBM’s success. The study takes into account various management aspects.
The first section of the report outlines the significance of management in an organizations success. The second part outlines an analysis of various management concepts. Some of the elements evaluated include the managerial functions of planning, controlling, and organizing.
The contribution of leadership, ethical behavior, and social responsibility to organizational success are also evaluated. Moreover, the importance of effective team management and communication in the organization are analyzed.
Introduction
Effective management is essential in a country’s economic growth as it contributes towards the establishment of synergy amongst the four factors of production, which include machines, materials, human capital, and money.
Poor management may lead to a low rate of economic growth despite a country being endowed with substantial factors of production (Tripathi & Reddy, 2008).
Moreover, the future success and performance of organizations is subject to the competence of the organizational leaders. Tripathi and Reddy (2008) assert, “Management is the dynamic and life-giving element in every organization” (p.1).
Therefore, it enables an organization to deal with issues that emerge in firms’ course of operation, for example employee conflict. Management also enables organizations to coordinate current business activities and plan for future occurrences.
Tripathi and Reddy (2008) further opine that management aids organizations in their pursuit to develop an effective working environment.
However, the degree to which an organization can be defined as successful with regard to management depends on how well it has adopted coupled with implementing various principles of management.
Some of these principles relate to planning, organizing controlling, team management, communication, social responsibility, ethical behavior, and leadership. IBM ranks amongst the global market leaders in the information technology industry.
Despite the high degree of volatility within the information technology industry, IBM has managed to sustain optimal financial performance over the past decades. The firm’s success is evidenced by the high rate at which it has ventured into different market segments.
Aim
This paper evaluates how IBM has integrated management. The analysis is conducted with reference to planning, organizing controlling, team management, communication, social responsibility, ethical behavior, and leadership.
Analysis
Planning
Bose (2002) defines management as the process through which an organization projects what should be done in order to cope with future changes.
Planning entails different aspects, which include formulating business objectives, determining the action to be undertaken and methods to be used in order to attain the pre-determined objectives, deciding on who will undertake the tasks, and how the results will be evaluated.
The intensity of competition in the global information technology industry requires firms in the industry to be effective and efficient with regard to planning. IBM has formulated a number of policies that it follows in the process of executing its planning function.
First, IBM ensures that all managers at the top, middle, and lower levels of management undertake the process of planning for long-term and short-term objectives.
In a bid to improve the planning effectiveness, IBM requires the top, middle, and lower-level managers to identify and propose possible modifications in the firm’s plans. Therefore, the firm promotes planning at departmental stages.
The firm’s management has also provided employees with an opportunity to contribute to the planning process.
Employees recommend and share their opinion on diverse corporate procedures and policies, which has played a critical role in improving the firm’s effectiveness in aligning itself with market changes.
The firm’s effectiveness in planning has improved the potency with which it formulates operational policies, procedures, and financial and non-financial objectives. Furthermore, the firm prepares budgets, operational programs, and schedules effectively.
Planning also enhances IBM’s effectiveness in formulating alternative course of action. The futuristic characteristic of planning is critical in IBM’s effort to cope with changes that emanate from internal and external business environments.
Controlling
Succeeding in the business environment requires firms to ensure that their operations are in conformity with the set principles, procedures, and plans, which can only be achieved if optimal control procedures are implemented.
DuBrin (2009) argues that controlling is essential in a firm’s effort to achieve positive performance. IBM has adopted an effective control mechanism by establishing various standards of performance.
In an effort to remain competitive, IBM has formulated a policy whereby employees are required to achieve predetermined targets within a particular period by developing a balanced scorecard that comprises specific key indicators.
IBM evaluates the employees’ performance using the balanced scorecard at the end of the set duration. The evaluation is undertaken by comparing the set targets against the actual performance. Thus, the firm identifies possible deviations.
Through controlling, IBM determines whether the employees are focused at their jobs. Comparing the set targets against the actual employee performance gives IBM insight on the action to take in order to ensure that the employees meet the set standards.
Thus, control enables IBM to gauge the likelihood of attaining the set organizational goals. Tripathi and Reddy (2008) emphasize that lack of effective control limits a firm’s ability to determine whether the set objectives will be realized.
Organizing
This element constitutes the next step after implementing the plan. Tripathi and Reddy (2008) assert that the workforce has to be organized in order to implement the plan successfully.
The organizing function enables a firm to bring together resources such as workforce and raw materials necessary to accomplish the predetermined goals.
Therefore, staffing constitutes a key element in a firm’s organization effort. Tripathi and Reddy (2008) define organization to include the process of selecting and training employees. Moreover, organizing also entails establishing a strong relationship amongst the workforce.
The relationship is developed by assigning responsibilities and instituting a form of authority. The employees get specific responsibilities from the corresponding authority to execute the task. IBM has a well-developed organizational structure that comprises a number of departments.
Every department is assigned a specific role. However, all the departments collaborate with each other in undertaking their duties, and thus the firm is in a position to achieve synergy.
Leadership and organizational success
Leadership is vital in the operation and performance of organizations. Tripathi and Reddy (2008) define leadership to include the process through which organizational managers determine how they will impress the subordinates.
The objective of leadership is to develop a high level of cooperation amongst employees hence increasing the likelihood of achieving the set goals.
Effective organizational leadership enables an organization to attract, develop, and retain a strong workforce.
Thus, the probability of an organization building a strong organizational brand increases. Below is an analysis of how effective leadership is essential in promoting organizational success.
Effective leadership contributes to organizational success by enhancing a firm’s ability to cope with changes. Currently, the IT industry is experiencing an increment in the rate at which new IT products are being developed.
Firms and individuals are investing in research and development in an effort to develop products that will address the existing market needs. In a bid to thrive in such an environment, it is critical for firms to implement the necessary changes.
The type of leadership adopted determines the employees’ perception regarding the desired change and hence their level of commitment. Poor leadership may lead to employee resistance towards change hence affecting the organization’s competitiveness negatively.
One of the elements that have enhanced IBM’s success relates to effective leadership. Since its inception, IBM has managed to develop and implement innovative leadership. Furthermore, the firm perceives challenging and complex situations as critical in its success.
Consequently, it is capable of identifying potential business opportunities from the complex business situations. In a bid to exploit such situations, IBM values employees who are creative, imaginative, and innovative.
Its choice of such employees hinges on the need to engage in continuous product development and improvement. However, this goal is only achievable if employees get an opportunity to exercise their ideas. Thus, IBM has adopted transformational leadership style.
The transformational leadership style adopted by IBM has enabled the firm to be effective in its new and continuous product development.
Organizational identification has considerable influence in the development of organizational behavior and hence the attainment organizational goals.
Harrington (2006) defines organizational identity to include the distinctive and unique characteristic of an organization as perceived by employees. Positive organization identification influences the employees’ decision to continue working in a particular organization.
The leadership style adopted increases the degree of congruence between employees and the professed organizational values. A high degree of fit between employees and the organizational values influences the level of employee satisfaction.
Moreover, effective leadership improves the degree of cohesion and collaboration between employees.
Thus, nurturing effective leadership enables organizations to build mutual trust, hence increasing cooperation and information sharing amongst employees, which culminates in improved organizational performance.
The organizational leadership adopted does not only influence the degree of organizational identification amongst employees, but also other external stakeholders such as customers, suppliers, and the general public. Therefore, leadership influences an organization’s public image.
IBM has developed “360 degree of trust” that cuts across all its constituents which include the clients, business partners, and communities. Some of the values that the firm has nurtured include integrity, trusting in the employees’ capabilities, positive intent, and accountability.
Importance of team management and communication in the organization
According to Harrington (2006), communication is the most important element in human resource management. Through communication, an organization is able to improve the level of transparency and cooperation amongst employees.
Effective communication is essential in an organizations’ effort to achieve its goals and objectives. Thus, managers should nurture effective communication in order to perform their managerial functions, which include planning, leading, directing, controlling, and organizing more effectively.
Organizations can adopt diverse strategies in developing their organization strategy. Some of these strategies include one-way, two-way, and five-way communication strategies.
The five-way system is also known as the star communication system and is the most effective. The five-way system entails communication in five main directions, which include up, sideways, down, the customers, and suppliers. IBM has adopted the five-way communication system.
First, communication ensures that employees are well informed about their duties, responsibilities, and the operational standards to follow in the course of executing the assigned duties.
Moreover, communication enables organizational managers to inform the employees if their performance falls below expectations. Thus, it plays a critical in promoting motivation amongst employees.
Secondly, communication aids in the development of an environment that is conducive for working. Nurturing effective communication enables employees to socialize with their colleagues.
The likelihood of sharing new knowledge and information that is vital in the organization’s success increases. Therefore, organizations are in a position to formulate alternative course of action.
Communication also plays a fundamental role in altering the employees’ attitude regarding their job and the organization in general. Well-informed employees are more likely to have a positive attitude regarding their job compared to insufficiently informed employees.
In addition to the above elements, communication improves the effectiveness with which an organization implements the control function. For example, through communication, an organization ensures that the employees’ behaviors align with the set procedures and standards.
In addition to communication, teamwork is another important aspect in the operation of an organization. Currently, organizations are increasingly adopting teamwork in an effort to enhance their competitiveness. An organization can accrue a number of benefits through teamwork.
First, a firm can improve the scope of work undertaken by employees on a daily basis. Through teamwork, employees share their talents and skills with their team members hence increasing the likelihood of attaining high performance.
Secondly, teamwork contributes towards development of a strong workforce, as employees from different ethnicities and backgrounds can interact and work together. Such interaction improves the likelihood of an organization developing a strong organizational culture.
In pursuit for high competitive advantage, organizations are increasingly adopting the concept of projects. The projects are designed to achieve a specific goal. For example, IBM invests in projects aimed at developing new information communication technologies.
However, the success of such projects depends on the quality of teamwork implemented. Teamwork promotes organizational performance by providing organizations with an opportunity to develop a strong human capital.
Currently, organizations can hire employees from different regions irrespective of physical distance due to the high rate of technological development, which has led to the emergence of virtual teams.
Consequently, teamwork promotes organizational performance by increasing the likelihood of effective project management and coordination amongst project team members.
Contribution of social responsibility
IBM is cognizant of the importance of achieving sustainable growth. One of the ways through which the firm intends to achieve this is by investing in corporate social responsibility.
Bose (2002) defines corporate social responsibility to include how organizations manage their operations in order to influence the society in which they operate. Corporate social responsibility is based on three main pillars, which include social, environmental, and economic actions. IBM has benefited in a number of ways by investing in corporate social responsibility.
First, the firm has developed a positive reputation in the global market. A large number of individuals desire to work in the firm. Therefore, the firm has developed a strong workforce.
Moreover, the employees’ level of productivity has improved significantly while the rate of labor turnover in the firm has reduced. Investing in corporate social responsibility has also played a critical role in minimizing regulatory influence from the government.
Thus, the firm operates smoothly. Social responsibility has also led to improvement in the firm’s level of sales and customer loyalty by ensuring that the products being developed are of high quality.
In summary, social responsibility has also contributed towards IBM becoming a “stakeholder balanced” organization hence achieving positive financial performance.
Contribution of ethical behavior
IBM is committed towards ensuring that all its operations are ethical by being employee and customer-focused.
First, the firm ensures that all its operations are focused towards customer satisfaction. In a bid to achieve this goal, the firm ensures that the products produced are of high quality.
Secondly, the firm has implemented an effective customer service policy. Thus, IBM has developed a high level of customer satisfaction. Consequently, IBM has managed to develop a strong customer base hence increasing its sales revenue and profit.
Similarly, the firm ensures that its employees are treated well. IBM has integrated a comprehensive employee reward system that comprises both financial and non-financial benefits. Secondly, the firm does not discriminate employees based on any demographic variable.
Consequently, employees have developed a high degree of organizational identification hence improving their desire to stay in the firm.
The firm operates in a manner that does not affect the society negatively. For example, the firm ensures that its operations do not contribute to environmental pollution. Consequently, its public image has improved significantly.
Conclusion
Effective management has played an essential role in IBM’s success. Despite this aspect, the firm cannot rule out the possibility of negative impacts emanating from the internal and external sources. However, firms can cope with such occurrences through effective management.
Continuous review of the management strategies is paramount in order to make the necessary adjustments. Moreover, the management strategies adopted should focus on both the internal and external stakeholders, which will improve the firm’s market position and its competitiveness.
Reference List
Bose, D. (2002). Principles of management and administration. New Delhi, India: Prentice-Hall.
DuBrin, A. (2009). Essentials of management. Mason, OH: Thomson Business and Economics.
Harrington, H. (2006). Resource management excellence: the art of excelling in resource management. Chicago, CA: Paton Press.
Tripathi, P., & Reddy, N. (2008). Principles of management. New Delhi, India: Tata McGraw-Hill.