IBM's Transformation Under Gerstner

This assignment examines the leadership transformation of IBM under CEO Lou Gerstner. It analyzes how his strategies, including fostering teamwork, empowering employees, and changing company culture, led to improved organizational performance. The case study highlights the importance of leadership style in driving success within a challenging business environment.

Strategic Management

TABLE OF CONTENTS
CASE STUDY ................................................................................................................................1
REFERENCES................................................................................................................................3

CASE STUDY
1. The leadership process at IBM started y developing initial plans. In this Gerstner visited
companies offices all over the world. After that policies were changed to create a
different working environment in IBM. Along with this, cost was reduced by taking
effective measures (Hill and Schilling, 2014) Gerstener removed some restrictions and
allowed employee to work freely. This helped in reducing conflicts and creating a better
working environment. Moreover, they focused on increasing goodwill so that
organisation can grow and develop.
2. Before Gerstener became CEO, employee have to follow rules and regulations very
strictly. They have to wear formal dress. Also, 10000 employees were laid off by
company. There was no elements such as culture, teamwork, etc. implemented in IBM.
Gerstener transformed work culture by allowing supervisors to take decisions. This made
it easy to perform daily business operations. Also, Gerstener modified policies and
developed team work. It helped in working effectively with supervisor. There was
flexibility in dress code. Employee were given more freedom to discuss and solve work
related affairs (Bettis and Mitchell, 2016) Yes, leadership style played crucial role in
this. Due to this it was easy to work together and taking effective decisions.
3. When Gerstener arrived he first of all analysed that there was some key elements such as
team work, culture, etc. missing in work culture. This was due to leadership style that
was followed by leader. So he focused on leadership development. This was the issue that
was hindering IBM loss. Thus, by following delegated leadership style it allowed
supervisors to take daily decisions. Also, by changing traditional of IBM it enabled
workers to work freely. Therefore, it helped in changing overall work culture. It was
beneficial for IBM as it improved employee performance. It fostered future leader by
creating and example on organisation culture can be influenced by changing leadership
style. It showed leader on how developing culture, teamwork overall productivity of
organisation can be enhanced (Wheelen and Bamford, 2017).

4. Leader plays a vital role in motivating employee to achieve goals and objectives. They
are responsible for creating a better working environment and improving organisation
culture. In today challenging business situation it is very important that leader focus on
their commitments. It will help in encouraging employees to put more efforts. It also
describes leader efforts in achieving goals. Leader must be having strong skills and
capability to lead (Lasserre, 2017). Thus, creating futuristic leaders is essential as it helps
in driving growth.
5. I will suggest that IBM leader should not impose restriction on employees to work. They
must motivate them to work together so that culture can be maintained. Also, they must
change leadership style according to change in business situation. Leader should focus on
teamwork so that it improves employees performance. They must develop plans for the
future. Besides this, participative style must be followed so that employee can take
effective decisions.

REFERENCES
Books and journals :
Bettis, R.A. and Mitchell, W., 2016. Creating repeatable cumulative knowledge in strategic
management. Strategic Management Journal, 37(2), pp.257-261.
Hill, C.W. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach.
Cengage Learning.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Wheelen, T.L. and Bamford, C.E., 2017. Strategic management and business policy.