...Internal and External Equity Comparison Edgar Martinez HRM/324 September 10, 2012 Annette Clark Davis Internal and External Equity Comparison In today’s competitive globalized economy, an organization’s approach to equity and its perception of equity can affect an organization’s ability to captivate, retain, and motivate its employees. Therefore, external as well as internal equity play an important role in an organization’s design of its compensation structure. In this essay, it shall examine the total compensation plans for the Home Depot Corporation and IBM Global Services, focusing on internal as well as external equity. Additionally, it shall also review the various advantages as well as disadvantages of internal and external equity for both organizations. Finally, it will provide an explanation to how each plan supports each organization total compensation objectives as well as the relationship of the organization’s financial situation to its plan (University of Phoenix, 2009). Internal and external equity An Organization that notably uses internal equity to form its pay structure is the Home Depot. The Home Depot’s internal equity exist because of its pays wages and hiring processes designed to fit each store budget, instead of hiring people with the skills to do the job at a market rate pay. The Home Depot’s decentralized stores use an elitist compensation system with different compensation plans by organization level and incentives offered only to...
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...IBM Case Analysis Assignment Problem Statement IBM PC is not able to sustain sales and profit in the competitive PC market. Problem Analysis There was a drastic change in the external environment. IBM was a leader in the mainframe business but they failed to adapt to the external factors, especially the technology and market sector. They went from operating in a simple and stable environment to a complex and unstable environment. IBM had a very rigid corporate structure. They would disregard innovative ideas which came up from their talented engineers. They took a considerable amount of time to react to the market as a result of which their competitors took over. They failed to recognize the market shift and explore the numerous opportunities available to them. Also IBM’s PC production process was slow. Their products were hard to find at the retailers’. Excessive bureaucracy in the organization led to slow decision making process (e.g. pricing decision). They were neither in touch with their customers nor their engineering division. This affected their customer intimacy. The top management put a blind eye to the extensive research that was done by their engineers. As a result a number of talented engineers left IBM for rival companies. IBM used to operate in a market where they were the leaders in the mainframe technology and there was a high entry barrier, because of which they had very few competitors. Other companies couldn’t really gamble with prices...
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...1. Case Background International Business Machines (IBM) was founded in 1888 as “Herman Hollerith and the Tabulating Machine Company”. It is an American multinational technology and consulting corporation. It manufactures and markets computer hardware and software. Thirty Six years after, the name of the company was changed to IBM Corporation. IBM was also known as the big blue. It ranked among the “Worldwide Top 20 Semiconductor Sales Leaders”. Some of the awards and recognition received by IBM are the following: 3 Noble Prizes, 4 Turing Awards, 5 National Medals of Technology and 5 Medals of Science. In July 2007, the company dealt with Spanish utility Iberdola, one of the world’s largest producers of renewable energy. The contract w/c amounts to $84.4 million will open an Innovation Center at Iberdola in Salamanca, Spain. The center will develop new information technology and provide services for the utility. Further, IBM will create a Global Center of Excellence for Nuclear Power in France to develop software and consulting services for the design, construction and operation of nuclear power plants. For the quarter ending 30 September 2007, IBM’s revenue increased by 7%. The increase came from Global Technology Services segment and higher sales from Software and Global Business Services segments. 2. 2a. General Environment Analysis: |GENERAL ENVIRONMENT FORCES |OPPORTUNITIES |THREATS ...
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...IBM Case Analysis “What happened to IBM, the symbol of American supremacy?” -Challenge to America video, 1993 Problem Statement IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace. Problem Analysis In 1993 IBM reported a $5.6bn loss for the fourth quarter of 1992 ending a yearly deficit of $4.97bn; which at the time was the biggest annual loss in American corporate history. The fiscal loss could be explained in part to the ongoing aftermath of the severe 1990-91 recession that adversely affected the entire computer industry, but clearly IBM was no longer the colossal success it had been throughout most of its history. Primary to its listless growth was a fundamental change in the environment of the computer industry, which was the persistently accelerating rate of technological breakthrough in the world of data processing and IBM’s slow response to this change. IBM’s personal computing business technological environment was changing rapidly as the underlying shift in the computer field was from mainframe computing dominance toward personal computing...
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...Assignment: Business Environment Table of Contents: Executive Summary...................................................................................................................3 Assignment I- Task 1 P1. Type of business, purpose and ownership...........................................................................3 P2, M1. Different stakeholders that influence the purpose of the business...............................3 D1.Influence of stakeholders…………...………………………………………………..…...5 Assignment I- Task 2 P3, P4. Describe how two businesses are organized, and how the structure helps the businesses in fulfilling their purpose……………………………………………………….....5 Assignment II- Task 1 P5, M2. Two contrasting environments influence on business, and their challenges................8 P6, M3. Political, Legal, Social factors and challenges that affect the two businesses ...….....8 D2 Changes in political, legal, social, and economic factors may impact on organization strategy……………………………………………………………………………………......9 Bibliography............................................................................................................................11 Executive Summary: The business environment is a mix of all the internal and external factors that have influence on the business. All the factors that are under the control of the business do not form part of business environment. Some of the examples of these factors affecting...
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...And External Environment Have you ever imagined yourself as a leader of a huge or small organization ? Which decisions would you make to guarantee a high efficiency of work ? I know that you feel that it may be easy to successful. It's just a decision-making and some employees who need someone to command them. Sitting behind large offices is a dream target for many employees, but to achieve this goal you need not only a hard work, but a high level of knowledge. Neglecting a simple thing could lead to the end. Over years many companies suffered from losses while others had already collapsed and did not exist anymore. There were many different reasons behind these problems. Some companies ended due to the competition with other firms. Others gave up because their products are no longer desirable. Most these firms figured out the main reasons of the problems too late. Many employers focus on internal environment more than the external environment or they would not pay attention to the outer boundaries. They may believe that the external environment is something you can’t control or deal with. For example, they look after good staff, great services, high quality of products ,appropriate structure…etc. All these issues manage and handle internal environment of the organization. Unfortunately, many firms somehow or another neglect external factors which could also affect negatively their business. Many companies went out of the market just because of the impact of external sectors...
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...IBM Global Technology Services Thought Leadership White Paper Cloud Computing Defining a framework for cloud adoption How common ground can help enterprises drive success with cloud computing2 Defining a framework for cloud adoption Contents 1 Introduction 3 Looking at cloud computing across two dimensions 3 Cloud delivery models 7 Cloud service types 8 Roles in cloud consumption and delivery 10 Challenges and considerations 11 Summary Introduction With the many widely discussed advantages to cloud comput- ing, including elastic scaling, faster service provisioning, greater IT efficiencies and usage-based accounting, businesses are increasingly interested in adopting a cloud computing environment. Yet a swell in media and analyst coverage, plus a proliferation in cloud computing providers and marketing messages, has resulted in a great deal of confusion about what the term “cloud computing” really means. For example, some providers look at cloud computing as way to provide compute or storage capacity as a service, provi- sioned from a parallel, on-demand processing platform that leverages economies of scale. Others may equate cloud com- puting with software as a service, a delivery model for making applications available over the Internet. IT analysts view cloud computing from the perspective of variable pricing without long-term commitments and massive elastic scaling of services. IT leaders look at cloud as an infrastructure architecture alternative...
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...Global leadership Development Ways in which IBM engages into global integrated enterprise (GIE) International Business Machines Corporation, or IBM, is an American multinational technology and consulting corporation with headquarters in Amonk New York, United States IBM operates in five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology and Global Financing. GTS provides IT infrastructure services and business process services. GBS provides professional services and application management services. Software consists of middleware and operating systems software. Systems and Technology provides clients with business solutions requiring advanced computing power and storage capabilities. Global Financing invests in financing assets, leverages with debt and manages the associated risks. The company was founded in 1911 as the Computing Tabulating Recording Company Computing (CTR) through a merger of three companies: the Tabulated Machine Company, the International Time Recording and the Computing Scale Company. CTR adopted the name International Business Machines in 1924.In 2012, Fortune ranked IBM the #2 largest U.S. firm in terms of number of employees (433,362), the #4 largest in terms of market capitalization, the #9 most profitable, and the #19 largest firm in terms of revenue. In December 2012, it acquired Kenexa. In February 2013, it acquired StoredIQ Technology advancements have forever changed the way business...
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...Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting three eighteen wheel trucks and operated its factories round the clock to fulfill the unexpected customers demand. The trustworthy relationship between Dell’s management and work force made it possible to change the disastrous moment in the I.T industry to a great opportunity for the organization. Dell has very user friendly web site and half of Dell’s sale, half of tech support and three...
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...Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting three eighteen wheel trucks and operated its factories round the clock to fulfill the unexpected customers demand. The trustworthy relationship between Dell’s management and work force made it possible to change the disastrous moment in the I.T industry to a great opportunity for the organization. Dell has very user friendly web site and half of Dell’s sale, half of tech support and three...
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...Change is vital in every organization to survive and to keep up with the ever-changing technology and environment. They include globalisation, clashing cultures and diversity, changing technology, challenging economies, the need to be more efficient, innovative and responsive to customer demands, corporate social responsibilities, and aging and growing population (Thompson, 2009). In order to survive, organizations are required to constantly change so that it remains competitive with the changing environment Organization development is different from organizational change. It is primarily concerned with change that is goaled towards transferring the knowledge, skills and expertise needed to achieve goals and solve problems. The intention is to improve the organization in terms of problem solving, quality of work life, etc and moving the organization to a better direction or position in order to have better performance, lower turnover and higher job satisfaction in employees. Organizational change whereas, is more broad in perspective and can refer to any changes in the organization from change in organizational structure to technical or managerial innovations Organizational targets for planned change include changes in strategy, objectives, technology, culture, structure, processes, management etc. These change activities in the organization are managed, facilitate and implement by change agents. There will be a discussion on why organizations enlist the help of change agents...
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...Autonomic Computing: An Overview Manish Parashar1 and Salim Hariri2 The Applied Software Systems Laboratory, Rutgers University, Piscataway NJ, USA 2 High Performance Distributed Computing Laboratory, University of Arizona, Tucson, AZ, USA parashar@caip.rutgers.edu, hariri@ece.arizona.edu 1 Abstract. The increasing scale complexity, heterogeneity and dynamism of networks, systems and applications have made our computational and information infrastructure brittle, unmanageable and insecure. This has necessitated the investigation of an alternate paradigm for system and application design, which is based on strategies used by biological systems to deal with similar challenges – a vision that has been referred to as autonomic computing. The overarching goal of autonomic computing is to realize computer and software systems and applications that can manage themselves in accordance with high-level guidance from humans. Meeting the grand challenges of autonomic computing requires scientific and technological advances in a wide variety of fields, as well as new software and system architectures that support the effective integration of the constituent technologies. This paper presents an introduction to autonomic computing, its challenges, and opportunities. 1 Introduction Advances in networking and computing technology and software tools have resulted in an explosive growth in networked applications and information services that cover all aspects of our life. These sophisticated...
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...the business strategy with respect to products and services provided to external customers and the internal structure of the enterprise is critical for economic performance and efficiency. This paper presents the notion that information technology strategy should be articulated in terms of the external business strategy (how the firm is positioned in the IT marketplace) in addition to how the infrastructure of the information systems should be managed and configured, on top of how a company can deploy a strategy to streamline its business processes and stay ahead in the market. A point in case was how IBM able to move from a company that was going down the drain to getting back on its feet and becoming once again successful in the world market arena. This was through the various strategies that they undertook during the course of the meltdown such as acquiring the idea of the “e-business strategy”, streamlining, integrating and centralizing IT enabled enterprise processes. Not only do processes and activities lead to a successful company, leadership comes up as one of the paramount factors in the success of an organization. One of the points to note is the change in leadership that did a great a job to steer the IBM to greater heights. People like Gerstner played a vital role in bringing back IBM to life through their well cultivated leadership skills and strategies. Under the leadership of Gerstner, IBM was transformed from a company that primarily manufactured mainframes to...
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...(EMS) refers to the comprehensive management strategies organizations apply in responding to environmental issues through the integration of environment-conscious thinking in all business management aspects and operating systems. The environmental management systems focus on ensuring that organizations manage various environmental impacts associated with their activities. Environmental management systems are critical components of organizations alongside strategic planning, public relations productivity, and product quality. Environmental management systems are critical in the marketplace success of various organizations since consumers are attracted to businesses that focus on sustainable development and environmental integrity issues. The ISO 14000 family of international certifications provide guidelines about different environmental management issues and they are the benchmarks used by many multinational companies in evaluating their environmental activities (Rondinelli and Vastag 2000). For instance, the ISO 14001 certification provides the conditions of developing environmental management systems and their certifications. The ISO 14001 assures external stakeholders and an organization’s management that environmental impacts are under evaluation and improvement. Background of IBM Corporations The International Business Machines (IBM) Corporations is one of the major Information Technology companies in the world. The company offers products and...
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...iBM 1. 2. Analyze IBM strategies, to remix their businesses in order to move to the emerging higher-value spaces, in Macro and Micro environment level 3. IBM strategy PESTEL analysis in Macro level Five forces analysis in Micro level Recommendation Conclusion SOWT analysis Complexity analysis 4. o IBM understood Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. o Economies of developing nations were growing rapidly, driven by historic investments in fundamental business infrastructure. Enterprises were looking to tap skills and expertise available all over the world and to integrate their operations globally. o Change in computing architecture was rippling across the data center and the network, along with a proliferation of technology infused into all aspects of work and life. Companies were seeking to integrate advanced technology with their business processes and operations, not only to reduce costs, but to enable innovation and growth. o IBM remixed their businesses in order to move to the emerging higher- value spaces by focusing on software and IT industry. IBM Strategies 5. IBM Strategies Hardware And Services Software IBM sold the personal computing department To Lenovo 6. PESTEL Analysis for Macro environment factors Social Political Technological Environmental Economic Legislative 7. Iraq War in 2003, affected world economy, and IBM stock fell down. Technology affects directly...
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