1.
U2A2
Select one organisation that has experienced a change in strategy –
examine how it has impacted the organisation and specifically hr
processes and practices by focusing on key metrics and how they
have changed over time (hint: publicly listed companies publish
data annually); focus on the differences before and after and
evaluate the impact of the change in strategy taken.
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Assessment of IBM's Strategic Shift and Its Impact on HR Processes
and Practices
Introduction
International Business Machines
Corporation (IBM), a stalwart in the
technology industry, has undergone
significant strategic transformations over its
century-long existence. Notably, in the mid-
2010s, IBM pivoted towards cloud
computing, artificial intelligence (AI), and
enterprise services to address the evolving
demands of the digital era. This strategic
redirection profoundly influenced its organizational structure,
particularly within Human Resources (HR), necessitating a re-
evaluation of HR processes and practices to align with the company's
new objectives.
Strategic Shift Overview
In response to declining
revenues from traditional
hardware and software
products, IBM initiated a
strategic shift around 2015,
emphasizing cloud-based
solutions and AI technologies.
This transformation aimed to
reposition IBM as a leader in
emerging tech markets and
involved substantial investments in innovation and acquisitions, such
as the purchase of Red Hat in 2019.
Impact on HR Processes and Practices
The strategic pivot required IBM to realign its HR strategies to
support the new business model effectively. Key changes included:
1. Performance Management Transformation: IBM transitioned
from traditional annual performance reviews to a more
dynamic, continuous feedback
system. This approach
emphasized real-time
performance discussions,
fostering agility and
responsiveness among
employees. The new system
focused on two primary dimensions: business results and skills
development, streamlining the evaluation process.
2. Skills Development and Training: Recognizing the rapid
evolution of technology, IBM invested heavily in upskilling its
workforce. The company implemented AI-driven tools to
identify skill gaps and recommend personalized training
programs, ensuring employees remained adept in areas critical
to the company's strategic goals. This proactive approach not
only enhanced employee capabilities but also improved
retention by demonstrating a commitment to professional
growth. citeturn0search1
3. Talent Acquisition and Diversity Initiatives: IBM expanded its
recruitment efforts beyond traditional talent pools, focusing on
diverse candidates from various educational backgrounds and
geographic locations. By prioritizing skills and potential over
formal degrees, IBM tapped into a broader talent base,
enriching its workforce diversity and fostering innovation.
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Key Metrics Analysis
To evaluate the impact of these HR transformations, we examine
several key metrics before and after the strategic shift:
1. Employee Engagement and Satisfaction: Post-implementation
of continuous feedback mechanisms, IBM observed a notable
increase in employee engagement scores. Surveys indicated
that employees felt more valued and aligned with the
company's direction, leading to higher job satisfaction levels.
2. Attrition Rates: The focus on skills development and career
progression contributed to a reduction in voluntary turnover
rates. Employees were more inclined to remain with the
company, recognizing the opportunities for growth and
development.
3. Diversity and Inclusion Metrics: IBM's inclusive hiring practices
resulted in a measurable increase in workforce diversity. The
representation of underrepresented groups improved,
reflecting the company's commitment to building a diverse and
innovative workforce.
Visual Illustrations
To provide a comprehensive understanding of IBM's strategic
transformation and its impact on HR practices, the following images
are included:
1. IBM's Transformation Journey: A visual representation of IBM's
shift towards cloud computing and AI, highlighting key
milestones and strategic initiatives.
2. Performance Management Evolution: An infographic depicting
the transition from annual reviews to continuous feedback
mechanisms, illustrating the components of the new
performance management system.
3. Skills Development Framework: A diagram showcasing IBM's
AI-driven approach to identifying skill gaps and delivering
personalized training programs.
4. Diversity and Inclusion Progress: A chart reflecting the
improvement in diversity metrics over time, emphasizing the
impact of inclusive hiring practices.
Conclusion
IBM's strategic shift towards cloud computing and AI necessitated a
comprehensive overhaul of its HR processes and practices. By
adopting continuous performance feedback, investing in skills
development, and prioritizing diversity in talent acquisition, IBM
aligned its human capital strategies with its business objectives. The
positive trends in key HR metrics underscore the effectiveness of
these initiatives, positioning IBM for sustained success in the rapidly
evolving technology landscape.
