IBM Global Recruitment - Essay Example

? Individual assignment for Human resources management Essay user [Pick the IBM is regarded as one of the pioneers in the field of computing these days. IBM has set the standards for a very long time and is leading from the front primarily in the hardware computing devices like peripherals, printers, keyboards, mother boards, system units etc. IBM has the best available hardware and computer systems that are preferred by most of the customers around the world because IBM is focusing on the quality of the material to give the tough time to the competitors. IBM was established in 1911, at start it was a really small company based on the production of calculators and simple hardware machinery but with the passage of time grew larger and larger with the immense expansion in the hardware domain of computing1. Human resource management of IBM has also improved from time to time and now there are great changes that are taking place in order to align the HR management of IBM with the organizational goals. In this paper we will review how IBM manages the Human resource management within the organization in order to achieve the strategic goals and what does the future holds for IBM in the perspective of the current performance 2. There were great reforms in the human resource management sector of IBM in 1993 when Louis Gerstner, one of the most able senior managers of IBM introduced new corporate culture in the workplaces of IBM and managed to get the converged new talent inside the company. IBM started to expand with a swift speed because at that time the world of computing was taking new turns and IBM was foreseeing the new roles in the computing world. It is also very important to note that in order to competitive advantage, IBM management tried to hire the best talent and professional around the world3. HRM in the perspective of Salary and monetary policies IBM has the strategic goals in terms of increasing the revenues and they are making changes in the human resource and staffing with respect to this goal for example IBM has a strategic goal that they should increase the revenue 5% per year and they should acquire a 10% increase in the earning per share. In order to achieve this strategic goal, IBM is providing increased salaries to their employees but there are different standards if the internal salary packages are discussed. IBM's salary system is double standard. There are two standards of the IBM salary packages. First is external standard and the other is internal salary standard. According to external standard, the salary of the employees should not be less than the top 10 companies of the world because there is a need to attract the talent from the society and human resource management strategy needs to be devised in such a way that the workers working in the environment does not feel over worked. IBM’s main focus is to provide the maximum allowances to its employees so that they can maintain a competitive advantage over other leading software and hardware developing companies. The external salary packages are increase from time to time with the periodic increments so that the employees can feel attracted and can experience the job satisfaction. The internal salary criteria are identified with the skill level and domain of working in the organization. They are not always set to be high because there are always different classes of employment within different working environments. There are highest job packages and lowest job packages in the internal salary criteria and Human Resource Management Department of IBM has classified a five level hierarchy in the internal salary system that makes this a fair and just allowance policy. In order to meet the strategic goals of 5% revenue, the increased talent is attracted with the good salary packages and similarly a total policy of refinement is working because of the internal salary packages that deplete the chances of over consumption. If the best talent will be hired in the IBM workplaces, the performance will be increased and as a result the strategic goals of revenues will be achieved. Similarly if some workers are not working according to the set standards and corporate culture of the organization then the salary packages will be lowered automatically and thus the overall profitability will not be disturbed. The earnings per share strategic goal of around 10% every year can also be achieved because of this classified salary policy within the organization of IBM. The human resource management policies are working continuously to keep a check on the balancing of the talents and the rewards. From time to time the employees are given benefits, prizes and extra bonuses in order to keep them intact with the loyalty of the job and work commitment4. The human resource management department of IBM has set the two way salary standards because of the fact that any person who is eligible to work for IBM will definitely have a great salary expectation and that is why the external salary criteria is set very high to attract the best talents available in the market and avoid the divergence of the professional to other companies. Once the people are hired in IBM, they are definitely checked against their skills and it is made sure that they do no become a liability for the organization. If they are performing well, they will be given a reward according to their skill level whereas if the they are not performing well then there will be cuts from their salary because it is the basic rule of the human resource management that the workforce should always be productive for the company rather than a liability. If there are problems then there are numerous training programs arranged by the administration and management of IBM which will be discussed later in this paper. Stock options for the Employees IBM human resource management also offers stock option for the best personnel who can provide a great value for the organization and help the administration to achieve the strategic goals. It is calculated that around 26% of the staff uses the stock options which makes around 79,000 of people. This is a great human resource management profitability factor for IBM because the employees and new hires perceive very positive view about the upper hierarchies and the work dedication and motivation level is increased many a times that adds to the profitability of the organization5 . The stock options features that are added in the organization by the human resource department are really productive in making the HR procedures within the organization steadier. Most of the people who are hired in IBM are really sharp, energetic and motivated who are seeking to start a new career with increased job satisfaction and salary. These talented people have a great potential for new startups, companies and business oriented approaches and IBM’s human resource department has decided to elevate this talent and provide them with more opportunities because this will add the value and services for the IBM itself. The brand name of IBM has the most importance in producing all kinds of profits and revenue and stock option will increase this factor with a great positive approach. So the Human Resource Management system should think of how to save them in the company. Stock options also increase the new horizons for the company because new approaches, ideas and techniques of people to excel in the competitive world will give IBM’s administration a new way to have free advices and consultancy so that they can attain the full advantage of the workforce not only in the technical terms but rather in the domain of human resources and management. Training and Development Latest studies have found out that the human resource department of IBM is sustaining the burden of around 260,000 high cost employees that means that such a huge number of employees are being paid without being productive for the organization. The human resource department is worried about sorting out a solution to this problem and instead of firing these employees, they have devised a great and undoubtedly the best training program that is focused not only to share the best and most latest knowledge with the already hired employees who are facing different problems and new internees who can be available for augmenting the productivity and profitability of the company in future. Human resource management department of IBM is offering numerous training programs in different technical and managerial domains. The cost of the training programs is around 2% of the total turnover of the company but the long term profits of such kinds of training programs are huge that has compelled the administration to devise such programs and give a chance to the employees to learn even more in order to survive in the competitive world. IBM believes in sharing and openness and this strategic goal requires immense learning and sharing within the organization to expand the internal horizons to the level of the internationally competing trends of the world. The training programs that are designed by the IBM are of different categories for example introduction training, tutor system, buffet mannered training, internationalization of the trends and computer skills training, management and HR training. Job skill training is especially designed for those employees who are working in IBM but there is a need to train them to accommodate the new technological changes and advancements. Such training programs are the cardinal part of the IBM’s strategic goals and strength of openness and outsourcing and as long as the employees of the IBM cooperation will not have the up to date knowledge, the products produced by the personnel will definitely not be up to the mark and this is the main motivation behind the designing and commencement of such training programs6. Staffing Following the “openness” strategic goals, the Human resource department of IBM has devised a complete frank policy in terms of staffing. The staff can easily share and say in order to refine the collaborative environment and professional work structure inside IBM. In IBM, staffs can say what they want to say without any fear. The anonymity factors is preserved and while giving any kind of suggestions, comments, opinions or critical analysis, the IBM human resource department makes it sure that the people who are posing these thoughts are remained anonymous to the upper administration so that every decision can be taken without any kinds of division and personal motives. This approach in staffing augments up to the productivity to the organization IBM uses the “commitment based human resource management model” which makes the employees as the virtual stake holders of the company and a great sense of responsibility is given to the employees7. In this model, the employees are not perceived as a third party which is not included at all in the policy making and improvements in the company rather every employee is taken on board while devising the overall strategies and a healthy environment is provided where every person can criticize the existing loop holes of the company and feedback is inculcated on how to improve the company. IBM has taken a great adaptation in order to increase the achievement of the strategic goals and now each employee is confident about the upper administration because he knows that his analysis will be reached above the administration and he will not be overlooked just because of the fact that he is just a employee in the big organization like IBM 8. During the past days when the human resource sector of IBM Was not maintaining an openness strategic goals, there was a monotony in the workplaces because the employees were not given a free hand as said by the former CEO IBM Lou Gerstner but now the result oriented HR culture is introduced which is focused on giving a free hand to employees so that as soon as they see any opportunity, they simply grab it without waiting for an official order or letter from the upper command. This depletes the loss of time and resources and every employee can take the initiatives at his own level9. Conclusion Keeping the above progress of IBM, it can be easily predicted that the next five years are going to be great in both the competitive advantage scenarios and achievements of the strategic goals. From a 90’s week and lingering company to the present $100 billion company's metamorphosis, IBM has always tried to introduce a volatile and adaptive culture in the company and this is the cardinal reason why IBM is giving a tough time to its competitors. The culture of openness and sharing will open new horizons for IBM because this is the age of merging and IBM is seeking to buy many different companies as IBM has bought a lot of major companies around the world like CommQuest Technologies and Mylex Corporation. The success is waiting for IBM provided the policy for openness is followed nn the future. Similarly there is a need to cut down the expenses of the less useful employees because it can pose a threat to the monetary strategic goals of the company. The profitability of the IBM shows that there will be a great boost in the increase of the alignment of the strategic goals with the human resource policies because the age of the evolution has passed and IBM is now at the climax of the experience. The senior management has learnt lessons from the bitter experiences of the 90’s and now they are seeking to implement the best HRM policies to gain the best talent and profits throughout the world. Works cited Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Berman, Saul & Korsten, Peter. 2013Corporate strategy for the new millennium. IBM Institute for Business Value, 2013. Byars, Lloyd L., and Leslie W. Rue. 2006. Human resource management. Boston: McGraw-Hill/Irwin. 290 DuBrin, Andrew J. 2009. Essentials of management. Mason, OH: Thomson Business & Economics. Harvard Business Review. "IBM Focuses HR on Change." 2012. http://blogs.hbr.org/cs/2012/01/ibm_focuses_hr_on_change.html (accessed 16 Mar 2013). Hrmreport.com.2013. 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