Running Head: CASE STUDY 5

Case Study 5

Irene Lavant

Liberty University

BUSI 642-D01 LUO

August 10, 2014

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Introduction

IBM is the world’s largest and most respected manufacturers of information

technology. With stiff competition from other manufacturers such as Microsoft, Cisco

Systems, General Electric, and Hewlett-Packard, IBM realized that, in order to stay on

top, the company needed a new way to assess and acquire the best talent in

technology. Talent acquisition is a process that generally befalls the Human Resource

(HR) department of any business. Therefore, IBM determined that the best and first

changes need to focus on the way that HR operates. IBM needed a more accurate yet

efficient way to manage human capital. Through innovative thinking and collaboration,

executives at IBM developed the Workforce Management Initiative (WMI) to help the

HR elements of the business flow seamlessly instead of operating independently and ill-

optimized as in the past. The result is an integrated HR system unlike the world ever

saw, even though systems similar to this existed before in smaller businesses.

Optimization and innovation stood out as the key to IBM’s successful repurposing and

restructuring of HR to act as well-oiled, talent acquiring machine.

New Structures and Roles

The new structures and roles for HR mean that the HR leaders at IBM faced the

same critiques as the company’s other talent. In addition, use of the new WMI system

meant that the HR officials at IBM needed assessment and training to operate

effectively. First, a restructuring of the HR roles and mission meant that many in HR

gravitated into new positions with new, different, and changing responsibilities. The

organizational structure that emerged as a result of the formation of WMI immediately

alerted those in HR that a structural change took place. The traditional structure of the
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company, which segmented each area of HR, was inefficient, but the new structure

under the WMI led to a steady, flowing supply of human capital where needed. The

WMI cut HR into a layer cake of three customer sets: executive and technical

resources, managerial talent, and rank-and-file employees, with cross functional HR

teams serving each layer (Grossman, 2007).

In addition, the new structure signaled that those in HR attained new roles,

covered more than one area, needed additional training, or became obsolete. No one at

IBM is safe from being in that obsolete category; those lacking necessary competencies

have the opportunity to be trained if they can and want to be (Grossman, 2007). The

WMI system took all of the IBM workers, from executives, management, and workers,

identified them, defined them, and assigned them to operate under more than one role if

needed. Analyst broke down each employee profile, explored each skill set, and

determined the role for each employee as a result (Grossman, 2007). These employees

and their skills fall under 4,000 measurable and defined skill sets, all of which are

monitored by the IBM HR department (Grossman, 2007). Because IBM developed this

system, the company also holds requirements for its HR officials. The experience the

company has in analytics, research, and development helped the company determine

the level of expertise required of its HR department workers. The HR leaders under

WMI held the responsibility of increasing their business and HR knowledge through

training and collaboration in order to become a better supporting player.

A challenge facing HR as IBM changed its structures and roles involves providing

feedback and information to other leaders not verse in HR. When IBM decided to scrap

the traditional structure of HR, the company embroiled itself into a tedious process of
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analyzing qualifications and roles of the company’s leadership. The discovery of leaders

in need of new initiatives and new training became evident. In the new structure, those

in HR find themselves better equipped and able to give feedback and training to those

executives with obsolete positions, skills, and training. Also, the new structure

positioned HR to collaborate with the business side of IBM, as opposed to just

employee performance. Traditionally, it was very easy for the HR operations to become

disconnected from the business operations, because HR leaders working as business

partners might not be familiar with the global process operations and vice versa

(Boudreau, 2010). The result is that the company is a leader in employee development,

talent mobility, expertise management, leadership, business, and many other HR

practices (Bersin, 2013). “The tie that binds all talent directors is knowledge of the

individual business sectors” (Grossman, 2007, assembling the team).

Skill Expectations

With the inclusion of the WMI, business leaders at IBM need skills directed

toward the needs of the employee base. These skills target motivating the workforce,

relating to the workforce, and encouraging learning and responsibility. Leader

performance is based on complex problem-solving skills, solution construction skills,

and social judgment skills; all with a body of knowledge or expertise in one or more

disciplines (Connelly, et al., 2000). When combined, leaders have the skills needed to

provide solutions and constructive feedback to the workforce that helps workers meet

company objectives. Many times, it is a lack of one of these basis skills that causes fails

in the business relationship of employers and employees. Therefore, the most valuable

skill lies in the social skills. A leader that holds the ability to socialize effectively holds
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the skill to persuade, negotiate, and motivate while providing judgment and decisions to

the workforce. In addition, many attributes need to follow a leader’s skill set, such as

integrity, ability to communicate, and vision (Boudreau, 2010). These attribute translate

into a leader who organizes and structures for company events and activities, such as

training sessions, professional development, and performance management (Boudreau,

2010). Other elements that satisfy the WMI include competencies. Competencies, like

passion, drive, and trustworthiness, are inside people inherently and not taught or

trained. By using competency models, IBM leaders look for employees to display these

qualities while performing on the job.

When HR runs as efficiently as it does at IBM since WMI came, the leadership

holds the opportunity to focus on business issues. However, by obtaining knowledge of

the employee pool and how HR acquires talent is helpful for both departments. The

interactions and dialogues between the business leadership and HR breed an

environment where the two departments confer to acquire talent that better meets the

needs of the business. This is because the business leaders, through interaction with

HR, share their knowledge and requirements for new talent so that HR has the

information needed to deliver. Once the new talent begins a career path at IBM, the

leadership already has those individuals with the skills and knowledge needed to

enhance company performance and meet goals.

Leveraging with WMI

The success of WMI became another marketable and profitable tool for IBM. As

a firm that turned its successful turnaround into a consultation service for other

business, IBM stands to use its WMI system to help other businesses in their talent
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searches. In addition, IBM developed software for other HR departments of other

enterprises. IBM also earned back its status as one of the big innovators in technology

thanks to WMI. The benefits represent a rise in stock value, satisfaction of the

stakeholders, increase in customers, and a product that IBM could sell. IBM also

realized its own cost savings since use of WMI. WMI integration cost IBM millions of

dollars but this money returned to the company in the form of hard savings due to use of

better systems, such as management of contractors and full-time employees

(Boudreau, 2010). To retain the balance between soft benefits and hard benefits, IBM

needs to allow WMI to continue to function as a living resource. The changes that occur

in WMI allow the company’s workforce and HR to adapt in three year increments. This

keeps the WMI updated and cost-effective.

Conclusion

When IBM fell on hard times, the company restructured instead of slacking. The

Bible teaches man that preparation is the key to survival during hard times but also in

good times. In Proverbs, the Scripture teaches that, “A slack hand causes poverty, but

the hand of the diligent makes rich. He who gathers in summer is a prudent son, but he

who sleeps in harvest is a son who brings shame” (Proverbs 10:4-5, NIV). Because IBM

continues to plans during these good times, the company guarantees its survival for

many years to come. The WMI system is an entity that refreshes itself and requires

those who enjoy their careers at IBM to constantly mold themselves, colleagues, and

subordinates in the manners that benefit the company most. HR at IBM serves as a

model for other companies to follow and as an additional product for IBM’s use in its

product repertoire.
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Resources

Bersin, J. (2013). IBM Launches Its Smarter Workforce Initiative. Retrieved on August
12, 2014 from http://www.forbes.com/sites/joshbersin/2013/01/31/ibm-launches-
its-smarter-workforce-initiative/

Boudreau, J. (2010). IBM’s Global Talent Management Strategy: The Vision of the
Globally Integrated Enterprise. Society for Human Resource Management.

Boudreau, J. (2010). IBM’s Global Talent Management Strategy: The Vision of the
Globally Integrated Enterprise. Strategic HR Management case study–PART B.
Retrieved on August 11, 2014 from
http://www.shrm.org/education/hreducation/documents/boudreau_modify%20ibm
%20case%20study_pdf%20only-cs5-partb-final%20to%20post.pdf

Connelly, M., Marks, M., Mumforda, M., Zaccarob, S. (2000). Leadership skills:
Conclusions and future directions. The Leadership Quarterly. 11(1), pp.155–170.
Retrieved on August 10, 2014 from
http://www.sciencedirect.com.ezproxy.liberty.edu:2048/science/article/pii/S10489
84399000478

Grossman, R. (2007). HR Magazine: IBM’s HR Takes a Risk. SHRM- Society for

Human Resource Management. 2(4), Retrieved on August 9, 2014 from
http://www.shrm.org/publications/hrmagazine/editorialcontent/pages/0407grossm
an.aspx

Proverbs 10:4-5, New International Version