Organizational Structure of IBM Assignment

IBM Structure
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Fatehi Theory 1996

Table of Contents
Organisational Structure of IBM.....................................................................................................1
1.1 Geographic Structure .......................................................................................................1
1.2 Functional Structure.........................................................................................................1
1.3 Product Structure..............................................................................................................1
1.4 Chain of command...........................................................................................................2
1.5 Span of Control.................................................................................................................3
Cultural ...........................................................................................................................................5
2.1 HOFSTEDE National Culture..........................................................................................5
2.2 Schein Theory...................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

Organisational Structure of IBM
To achieve their vision and mission a business focus on their structure that is set in
specific way. International business machines corporation (IBM) utilise their organizational
structure as a strategic way which means to contour their products for development and supply in
the information technology market (Franco de Carvalho and et.al, 2014). According to Fatehi
(1996), Functions, products and geographic areas stay and defined of three basic models of
organizational structure. There are categorised of five organisational structures which is defining
as follows –
1.1 Geographic Structure
The particular structure, staff members are classified as per the their region. In the end of
head of every region such as senior level executives who shares obligations for the area. In this
structure, head office is responsible for maintaining control on strategical plans along with
supervising and controlling the operations of IBM.
1.2 Functional Structure
In this structure, several responsibilities are given according to functional areas. There are
various functions such as marketing, finance, research and development etc. there is a head of
such different function which is called senior manager who is responsible for providing
information directly to IBM's chief executives.
1.3 Product Structure
Under this structure, organisation required to arrange their staff according to its product
lines and these are also group in terms of product divisions. In this, all the functions related to
product being sold and market being served and controlled by the divisions. Under this structure,
a new product may be launched by creating new division very easily. The one limitation of such
structure is that it creates problems related to control and co-ordination for whole company
(Witte, Neaton and Head-Gordon, 2019). The corporate structure of IBM's has followed product
type section -
 Global financing
 Systems
 Technology services & cloud platforms
 Global business services
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 Cognitive solutions
Illustration 1: Structure of IBM. 2019
(Source: Structure of IBM, 2019)
1.4 Chain of command
When the reporting system has been followed of top of hierarchical structure to the
bottom is known as the Chain of command. In the IBM followed the hierarchical structure where
delegated responsibilities with power and reduce work load in efficient way. The chain of
command of the IBM handle by chief executive office who is Virginia Rometty and monitor
every activities of business. A CEO delegate responsibilities to director which is related to
different departments and direct to their team regarding to work. After that they have been
categorised into CFO, vice president of cognitive solutions, Global & EU markets, corporate
strategy, systems, operations & IT, marketing and industry platforms (Saee, 2006). It can take a
long time in IBM for information to pass up and down the chain of command, staff may be not
fully empowered.
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1.5 Span of Control
A hierarchical structure has different secular, each with narrow span of control. When in
IBM come feedback from top level so it provide to below level management and direct regarding
to task. There are mainly control by the CEO due to corporate structure and it is American
multinational technology enterprises. For example – A manager of IBM develop with five direct
reports has a span of control of five. In IBM it is expanded as per the requirement of reports.
Mixed Structure
Illustration 2: Mixed Structure. 2019
(Source: Mixed Structure. 2019)
Matrix Structure
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Illustration 3: Matrix organisation chart. 2019
(Source: Matrix organisation chart. 2019)
Flat or tall structure
Illustration 4: Flat and Tall chart. 2018
(Source: Flat and Tall chart. 2018 )
From the above structures IBM has followed Matrix organization chart because there are
categorised different departments and provide separate roles and responsibilities to employees.
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Cultural
2.1 HOFSTEDE National Culture
According to theory Hofstede effectively defined about the national cultures that is
different from each other -
Individualism v/s Collectivism - There are defining about the societies performance in
reference to individual and apply for financial rewards at work for example – bonus, sharing
profit. IBM has focusing on the high individualism due to placed on people's time and their need
for privacy and freedom. There are providing freedom for privacy and employees enjoy the
challenges.
Power Distance – A PD defined about IBM into lower and high score that would defined
that which time accepts and motivates organisational structures on personal obligation and
liberty. The power distance of IBM is based on Low PDI where provide flatter organization and
employees are considered as equals. There are delegating authority as much as possible.
Long term orientation – In this category focused on the several national cultures have on
the time view and take much longer term regarding to performance. It is influencing of the
investment decision and risk taking of IBM. The company mainly based on the long term
orientation and invest for long term return.
Masculinity v/s femininity – IBM has low Masculinity because there are mainly focus on
relationship oriented as well as quality of life.
Uncertainty avoidance – It is categorised into two way low levels and high levels of
uncertainty that indicate about acceptance and support for rules and data in reference to
entrepreneurial culture (Gieseking, Ratner, and Schatz, 2017). IBM has prepared effective
strategy due to Low UAI because openness to change or invention and less sense or urgency.
Indulgence v/s Restraint - The term of Indulgence related to societies where allows
satisfaction of basic and natural human drivers to enjoy their life. The another term Restraint
belongs from the strict social norms. The IBM focus on the high Indulgence due to optimisic.
IBM has followed this theory to present effective culture and provide comfort regarding
to work place.
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Figure 2: Hofstede’s culture theory, 2019
(Source: Hofstede’s culture theory, 2019)
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2.2 Schein Theory
The theory of Schein's management concentrate on the culture in reference to IBM. IBM
is stronger on the product because they are following product based organization structure where
they are mainly focusing on the products and design in efficient manner to attract more
customers (Farmani, and et.al, 2019).
Compare IBM with Dell
As per the comparison with Dell it is recognised that dell follow the functional structure
where they focused on different types of functional activities. On the other side IBM focused on
the product based structure so they are modifying their products in effective manner (Komainda,
Dreuw and Köppel, 2017).
CONCLUSION
As per the above discussion it has been concluded that IBM followed product based
structure because thy are mainly focused on the quality of the product in effective manner. IBM
mainly concentrate on the global financing, technology services, cognitive solution etc. IBM also
focused on the Matrix chart because every one have separate roles and responsibilities and
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delegate power and authority according to work. The Hofstede culture theory defined that in the
different situation how to change environment of IBM. The Schein's theory defined about the
culture of management and how to effectively conduct activities.
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REFERENCES
Books and Journal
Farmani, Z. and et.al, 2019. Experimental and theoretical study of gas/oil relative
permeability. Computational Geosciences, pp.1-15.
Franco de Carvalho, F. and et.al, 2014. Derivation of spin-orbit couplings in collinear linear-
response TDDFT: A rigorous formulation. The Journal of chemical physics. 140(14).
p.144103.
Ghoran, S.H. And et.al, 2016. Isolation, spectroscopic characterization, X-ray, theoretical studies
as well as in vitro cytotoxicity of Samarcandin. Bioorganic chemistry. 66. pp.27-32.
Gieseking, R. L., Ratner, M. A. and Schatz, G. C., 2017. Theoretical modeling of voltage effects
and the chemical mechanism in surface-enhanced Raman scattering. Faraday
discussions. 205. pp.149-171.
Komainda, A., Lefrancois, D., Dreuw, A. and Köppel, H., 2017. Theoretical study of the initial
non-radiative 1 Bu→ 2 Ag transition in the fluorescence quenching of s-trans-
butadiene: Electronic structure methods and quantum dynamics. Chemical Physics.
482. pp.27-38.
Saee, J., 2006. Managerial competence within the hospitality and tourism service industries:
Global cultural contextual analysis. Routledge.
Witte, J., Neaton, J. B. and Head-Gordon, M., 2019. Push it to the limit: comparing periodic and
local approaches to density functional theory for intermolecular interactions. Molecular
Physics. 117(9-12). pp.1298-1305.
Zech, A. and et.al, 2018. Benchmark of Excitation Energy Shifts from Frozen-Density
Embedding Theory: Introduction of a Density-Overlap-Based Applicability
Threshold. Journal of chemical theory and computation. 14(8). pp.4028-4040.
Online
Flat and Tall chart. 2018. [Online]. Available Through:
<https://expertprogrammanagement.com/2017/09/span-of-control/>
Hofstede Theory. 2018. [Online]. Available Through:
<https://www.tutor2u.net/business/reference/hofstedes-national-cultures>
IBM organization Structure. 2019. [Online]. Available Through:
<http://panmore.com/ibm-organizational-structure-product-management>
Matrix organisation chart. 2019. [Online]. Available Through:
<https://www.edrawsoft.com/matrix-organizational-chart.php>
Mixed Structure. 2019. [Online]. Available Through:
<https://www.clarin.nl/node/6.html>
Organization Chart. 2019. [Online]. Available Through:
<https://www.orgcharting.com/ibm-org-chart/>
Structure of IBM. 2019. [Online]. Available Through:
<https://www.edrawsoft.com/template-ibm-organizational-chart.php>
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