Multinational Enterprise - International Business Machines - Essay Example

Multi national Enterprise Introduction: A study of the different policies of Multi National enterprise has been conducted to analyze how the different strategies incorporated by them suits their business needs in order to operate in multiple countries. For the purpose of study, IBM has been chosen as the organization. Company Profile: International Business Machines (IBM) is one of the major players in the international market of Information Technology. The organization has it’s headquarter in New York. IMB has associated themselves with the selling of computer hardware and software along with various research activities in the field of information technology. The company was established in 1911 and has continued delivering the best for more than a century. IBM currently operates in more than 170 countries and has massive employee strength. Over the years it has been a lucrative place for the employees to get associated with this global brand. The figures as of December, 2010 suggest that IBM has more than 426, 751 employees all round the globe (IBM Research Locations, n. d). In 2011, IBM was ranked as the 18th largest firm in the United States of America by Fortune The global ranking of the organization is also very impressive considering the fact that Fortune has listed it as the top organization in terms of leadership qualities exhibited by the organization. (About IBM, n. d) Training process in IBM: IBM organizes various training program on latest advancement in technology to its employees. The training process undertaken by the employees motivates them as it helps in the overall advancement of the career by adding value to their skills. The employees also feel that they can achieve the professional goals within the organization and thus creates a job satisfaction among them and they start performing better (Winning the Battle for Talent, n. d) IBM also stresses on the various activities among the employees so that their social needs are addressed in a better fashion and even engages the employees in various social activities so that they can feel to a vital part of the society.. Whenever a new employee joins in the organization in any country, IBM provides extensive training to the employees regarding the organizational culture, values and also regarding the process for which the employees are hired. The training process helps the employee to adjust themselves with the environment of the organization and gets a clear view of the role which he has to carry out. At the end of the training session, an assessment of the newly hired employee takes place to find out how well he had developed his skills to deliver for the organization. Training is also providing to the employees after the appraisal of the employees in the areas where the employees are lacking. This training process helps the employees to gain efficiency in achieving their tasks. Separate training is provided to employees of varying departments (Winning the Battle for Talent, n. d) Recruitment and selection: IBM being a global organization, the recruitment and selection of the employees takes place differently at the various units of the organizations depending upon the vacancy. The Human resource department of the organization is in complete charge of the recruitment and selection process. The process of centralized recruitment maintained within the organization helps in reducing the administration cost and uniformity is maintained in the recruitment of the employees. Steps are also taken to ensure that no biasness creeps in the process of recruitment. The organization maintains both the process of internal and external recruitment for selection of the employees. In matters of internal recruitment, often references from the employees are taken or internal promotion is made to fill up the vacancy. In matters of external recruitment, the organization arranges for walk in interviews and also takes help of the consultancies in finding the desirable candidate for the required post. The selection of the candidates takes place after a complete evaluation of the merit and his knowledge regarding the subject. A consideration of the experience of the candidate is also done during the selection process. IBM also recruits the employees from the data base of the employees in their web portal. Whenever there is a vacancy in any department of the organization, the details of the vacancy is posted in the web portal and candidates apply for the job and the assigned HR team then recruits the employees after consideration of various factors. Recruitment through web portal suits the need of the organization because all the diversified units can have an access to the web portal simultaneously and can choose the right candidate for the organization (Selection Process, n. d) . Compensation and benefits: The policies of compensation and benefits provided to the employees of IBM are flexible in nature and the benefits received by them are equal for all the employees in different parts of the world based on their positions and roles. The salary structure maintained by the organization is high in comparison to the other organizations in the industry. Cash compensation benefits of the organization include basic pay along with performance bonus, commissions and various other modes of earnings. When the employees in the organization perform at their highest level they are also provided with the opportunity of earning the best salary in the industry. The performance bonus program of the organization also allows the employees to earn 2-8 percentages of their annual earnings. The benefits provided by the organization also cover the healthcare benefits of the dependents of the employees. The IBM medical plan options also covers benefits regarding health maintenance programs. A wide range of insurance program is also provided to the employees, includes accident income plans, group life insurance, and long term care insurance. Pension plans are also provided to the employees so that they have a source of income even after they retire from the organization. The employees of the organization are also allowed to purchase stock of the company at a discounted rate. The whole range of compensation and benefits creates an interest among the employees to continue delivering the service towards the organization and helps in retaining a large section of the employees. The perks and incentives also motivate them to perform better and help the organization reach its goals and objectives. (Pay and benefits, n. d) Conclusion: The study of the different policies of IBM reflects the fact that the organization has been careful in devising a strategy which suits the operation in different countries. IBM has provided importance in providing the sane opportunity to all the employees across the globe and has been careful in devising strategies so that the requirements of the employees have been fulfilled. The recruitment and selection process is conducted by the help of the online web portal which enables the organization to access the applications of a wide number of candidates on a global scale. The organization provides same level of training to all the employees across the globe so that every employee develops the same level of expertise. The compensation and benefits provided to the employees are also on equal terms so that no preference is given to any set of employees from a particular region. .In carrying out operations in different countries, providing same benefits to all set of employees is a must and IBM stresses on its importance in a major way. In matters of recruitment and selection, the organization also tries its best to prevent any cases of discrepancy. The overall strategies adopted by the organization had proved considerable in handling a huge number of workforces over the years. References About IBM, (n. d), IBM, retrieved on February 10, 2012, from: http://www.ibm.com/us/en/ IBM Research Locations, (n. d), IBM , retrieved on February 10, 2012, from: http://www.research.ibm.com/worldwide/ Pay and benefits, (n. d), IBM, retrieved on February 10, 2012, from: http://www03.ibm.com/employment/us/li_pay_benefits.shtml Selection Process, (n. d), IBM, retrieved on February 10, 2012, from: http://www05.ibm.com/employment/uk/extreme-blue/apply_selection.html Winning the Battle for Talent, (n. d), IBM, retrieved on February, 10, 2012, from: http://www304.ibm.com/jct03001c/services/learning/ites.wss/zz/en?pageType=page&c=a0013800 Read More