1.
1 Introduction of the study
Definition of Organizational studies is "the examination of how individuals construct
organizational structures, processes, and practices and how these, in turn, shape social relations and
create institutions that ultimately influences people"
Organizational Functioning is an important factor for any Organization to achieve the desired goals
and Objectives. This requires Co-ordination at all levels to smooth functioning.
Meaning of Organizational studies:
Organizational study sometimes known as organizational science, encompass the systematic study
and careful application of knowledge about how people act within organizations. Organizational
studies sometimes are considered as overarching designation that includes the following disciplines:
industrial and organizational psychology, organizational behavior, human resources, and
management. Whenever people interact in organizations, many factors come into play. Modern
organizational studies attempt to understand and model these factors. Like all modernist social
sciences, organizational studies seek to control, predict, and explain. There is some controversy over
the ethics of controlling workers' behavior, as well as the manner in which workers are treated. As
such, organizational behavior or OB has at times been accused of being the scientific tool of the
powerful.
1.2 Importance of the study
IBM produces and sells computer hardware, middleware and software, and
provides hosting and consulting services in areas ranging from mainframe
computers to nanotechnology.
IBM’s corporate mission statement highlights leadership in the information technology
industry.
The company aims to maintain its business within the information technology industry.
The company aims to be important by remaining as the basic resource in the industry.
IBM has several leadership development and recognition programs to recognize employee potential
and achievements
1.3 Period of study
1.4 CHAPTERISATION:
• Chapter-1 Introduction
• Chapter-2 Industry and company profile
• Chapter-3 Functioning of various departments
• Chapter-4 Conclusions
VISION AND MISSION OF IBM:
VISION:
IBM should be first -and -foremost on any new enterprise data center migration short –list.
MISSION:
To lead in the invention, development and manufacture of the industry’s most advanced information
technologies, including computer systems, software, storage systems and microelectronics.
SCOPE OF WORK
IBM will provide IBM Managed Resiliency Services – managed continuity (called “Services”) as
described in this SOW and the Schedule for IBM Managed Resiliency Services – managed
continuity (called “Schedule”).
2.1 INDUSTRY PROFILE:
IBM, is a US computer, technology and IT consulting corporation head quartered in New York. It is
the world's biggest technology company and the second most valuable by global brand. IBM
manufactures and sells computer hardware and software and offers infrastructure services, hosting
services, and consulting services in areas ranging from mainframe computers to nanotechnology.
Revenue:
US$ 95.75bn (2009)
Number of employees:
399,409 (2009)
Origin of ownership:
US
Geographical presence:
Worldwide
CSR Report used:
IBM Corporate Responsibility Report 2009
letter from the chairman 1 Samuel J. Palmisano Chairman, President and Chief Executive Officer
our company 4 IBM basics The role of the ibmer 6 A world of global citizens employees 10
Investing in the IBMer ibmers in service 14 Corporate Service Corps enters its third year
communities 18 Engagement, expertise and sustainable service environment 24 Environmental
sustainability, inside and out supply chain 32 A holistic approach Governance 36 Managing risk,
maintaining trust public engagement 40 Collaborating for societal progress 2009 performance Data
summary 44
Environmental Risks and Impact:
IBM's environmental focus is:
- Energy conservation;
- Climate protection;
- Supply chain requirements;
- Material use;
- Management of end-of-life electronic equipment.
The company's climate protection programme is divided as follows:
- Energy conservation;
- Reducing perfluorocompound (PFC) emissions;
- Procuring and fostering renewable energy;
- Supporting alternate employee commute options;
- Increasing the efficiency of logistics
Environmental Compliance:
IBM conducted 600 initial audits from 2004 and 2009, measuring supplier compliance to both the
Electronic Industry Citizenship Coalition (EICC) and IBM Codes of Conduct.
The company has also engaged closely with its industry peers through the EICC in an effort to
understand and map the use of minerals in the electronics supply chain which are coming from
regions of the world with social responsibility challenges.
Targets and Performance:
Emissions: In 2009 the company generated 2,436 metric tons x 1,000 of CO2 (2008:2,502).
- Electricity: In 2009 IBM procured 11.3% of its energy from renewable sources, compared to 8.6%
in 2008,
- Waste: IBM has a goal to recycle 75% of its hazardous waste and recorded 76% in 2008 and 2009.
- Water Conservation: Savings as a percentage of prior year's use was 3.2% in 2009 and 2.4% in
2008.
Spotlight – CSR Project, Smarter Cities
In New York, in collaboration with leaders from the Partnership for New York City, the City
University of New York, the Brookings Institution, and other organisations from the public, private
and voluntary sectors, IBM convened 550 high-level executives from more than 185 cities in 25
countries. More than 60 speakers and breakout leaders presented 28 case studies on different aspects
of how the global economy is shaping up as a competition among the world's cities, regardless of
their location, for talent, investment, and influence. IBM plans to continue these dialogues in 2010,
including another Smarter Cities regional forum in June in Shanghai held in conjunction with that
city's Expo.
2.2 COMPANY PROFILE:
IBM has been present in India since 1992. Since inception, IBM in India has expanded its operations
considerably with regional headquarters in Bangalore and offices in 14 cities including regional
offices in New Delhi, Mumbai, Kolkata and Chennai. Today, the company has established itself as
one of the leaders in the Indian Information Technology (IT) Industry. IBM has set the agenda for
the industry with 'on demand business' - a kind of transformation where an organization changes the
way it operates and reduces costs; serving customers better, reducing risks and improving speed and
agility in the marketplace. IBM is already working with customers to transform them into 'on
demand' businesses. IBM is the only company in the world that offers end-to-end solutions to the
customers from hardware to software, services and consulting. Linux support further enhances
IBM's e-business infrastructure enabler capability.
Our offerings:
IBM is the only IT Company in the world and also in India that offers end-to-end solutions to
customers from hardware to software, services and consulting. IBM Global Services is the worlds
and also India's largest information technology services and consulting provider. IGS provides the
entire spectrum of customers' e-business needs -- from the business transformation and industry
expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and
training services. IGS delivers integrated, flexible and resilient processes -- across companies and
through business partners -- that enable customers to maximize the opportunities of an on-demand
business environment.
Advertisements:
In 2005, IBM announced the acquisition of Network Solutions Ltd., a leading infrastructure services
company in India. This strategic investment will enable IBM to augment it's networking and
managed services portfolio of offerings in India and broaden it’s reach across the country. Software
Group the largest provider of middleware and the second-largest software business in the world
offers its customers comprehensive solutions to meet their e-business requirements. IBM Software
provides best-of-breed solutions for financial services, manufacturing, process, distribution,
government, infrastructure and small & medium business sectors. IBM Software portfolio consists
of:
- Transformation and integration solutions that are built on the IBM Web Sphere middleware
platform. - Information leveraging solutions that are built on a portfolio of Data management (DB2)
tools. - Lotus product line to help organisations leverage collective know-how. - Tivoli range of
products to enable organisations to manage complex technology infrastructure. - Rational range of
Application Development Tools to help software development houses develop applications in a
structured and systematic way.
Systems and Technology Group:
The portfolio of eServers (xSeries, iSeries, pSeries, and zSeries) offer a broad range of products
from entry level, mid-range to high-end servers and mainframes, presenting customers with the best
technologies and practices to support their e-business infrastructure requirements.
IBM has been providing leading-edge storage technology to organisations around the world for
nearly half a century. IBM offers a complete portfolio of storage networking products and solutions
that not only includes LTO, SAN, NAS but also IP Storage - iSCSI appliances and gateways.
IBM's Personal Computing Division was acquired this year by Lenovo Group Limited, the leading
Personal Computer brand in Asia. Lenovo will continue to be the preferred supplier of PCs to IBM
and IBM will provide service and support for 5 years to Lenovo PCs.
IBM Global Financing provides flexible and attractive financing and leasing programs to fund
Information Technology (IT) requirements of Indian customers. IGF helps customers through
greater access to the hardware, software, solutions and services essential to compete in the global
marketplace.
India is an important market for IBM and the company has been making significant investments
from time to time.
IBM Innovation Center for Business Partners:
(One among 10 facilities worldwide) Independent Software Vendors are encouraged to port their
solutions on IBM platforms at this Center and develop Web based applications for Indian customers.
Linux Solution Center, Bangalore:
(One among 7 facilities worldwide) The center supports Business Partners and Independent Service
vendors across the ASEAN / South Asia region
IBM Linux Competency Center, Bangalore:
(One among only 4 facilities in Asia) This center develops standards and embedded software for
open source, undertaking high-end research in the area for IBM Worldwide.
Software Innovation Center, Gurgaon:
This state-of-the-art center combines IBM's global experience and technology expertise to deliver e-
business solutions for Indian organisations and also the government through the e-Governance
Centre. The center offers IBM’s customers a range of services including technical consultation,
proof of concept and technical presentations, implementation planning, solution architecture,
application design and development, deployment, and education and training. The e-Governance
Centre, a part of this facility offers technology, support and infrastructure to help governments and
total service providers to design, develop, test and port prototypes of e-Governance applications.
India Software Lab at Bangalore and Pune:
The Software Lab in India develops, enhances and supports key IBM Software products &
technologies in collaboration with other IBM labs worldwide. Center for Advanced Studies at
Bangalore was established at the India Software Labs to allow universities access to IBM's leading-
edge product development and the supporting infrastructure, while IBM has the opportunity to work
with academic leaders and researchers on research projects.
High Performance on Demand Lab in India, Bangalore:
– This specialised software and services lab in India to drive automation and virtualisation into the
increasingly complex IT infrastructures supporting the emerging economy of India. This is the first
of its kind lab for IBM in India, bringing specific high-value skills to help clients in India and the
surrounding region to enhance and optimise their IT resources to support the growth of their
businesses.
Engineering & Technology Services Center, Bangalore:
This center provides technology design services for advanced chips, cards and systems to companies
in India and across Asia.
India Research Laboratory, Delhi:
(One among 8 facilities worldwide) IBM's India Research Laboratory (IRL) focuses on areas critical
to expanding the country's technology infrastructure. It also has significant initiatives in Services
and Sciences, Information Management, User Interaction Technologies, e-Commerce, Life Sciences,
Distributed Computing and Software Engineering. Currently, IRL researchers are working on
several projects like bioinformatics, text mining, and speech recognition for Indian languages,.
Services Innovation and Research Center, Bangalore:
Will be an extended arm of IBM's India Research Lab (IRL), headquartered in New Delhi. The
Services Innovation and Research Center (SIRC) was recently launched as an initiative that will
work in close collaboration with IBM's Global Services group to develop innovative technologies
and solutions that improve operational and delivery capabilities.
IBM also set up its Global Delivery Centers at Bangalore, Pune, Gurgaon and
Kolkata:
They deliver "best-of-breed" technology solutions to IBM customers worldwide covering
middleware, e-business technologies, enterprise and web technologies, data warehousing across
functional areas like Supply Chain Operation Services, Financial Management Services, Human
Resource Services, Customer Relationship Management, e-Business Integration, Application
Management Services.
Global Business Solution Center in Bangalore:
IBM further expanded its global consulting delivery capabilities with the establishment of a first-of-
a-kind Global Business Solution Center. The center will allow IBM's more than 60,000 consultants
to collaborate and deploy reusable tools and assets in 55 key business areas such as Consumer
Driven Supply Chain Optimisation, Banking Risk and Compliance and Product Lifecycle
Management.
Business Transformation Outsourcing Centers at Bangalore, Delhi and Mumbai:
This center handles Business Transformation Outsourcing needs of IBM customers worldwide.
Some key areas of competence of this center are Customer Contact Centers, Receivables
Management, Telemarketing, Transaction Processing and Finance and Accounting.
With the acquisition of Daksh eServices, one of Asia's leading business services providers, with
service delivery centers in India and Philippines, IBM further enhanced the BTO service capability.
With Daksh, IBM adds banking, insurance, retail, hi-tech telecommunications and travel verticals to
BTO India’s service capabilities.
Partnering India
IBM shares the belief that India can unleash its true potential only through making IT available to
and usable for large numbers of people. IBM's Community initiatives focus on education and
children and leverage its expertise in technology to address societal issues. IBM has partnering
relationships in India with a number of educational institutions. IBM has also set up an IT Center in
Mumbai in association with Victoria Memorial School for the Blind to impart IT education to
visually impaired people. IBM Kid Smart Early Learning program was launched to further
strengthen IBM’s commitment to community in India. This is the only program in India aimed at
introducing technology at the pre-school level in disadvantaged sections of society to get a head start
on their academic development through the use of age-appropriate software developed by IBM. Try
science is another community related programme launched, which reinvents science learning,
recreates the interactive experience of onsite visits, and provides science projects as well as
multimedia adventure field trips for museum visitors - primarily children, their parents and teachers
FUNCTIONS OF VARIOUS DEPARTMENTS:
3.1 HUMAN RESOURCES DEPARTMENT:
The terms "human resource management" and "human resources" (HR) have largely replaced the
term “personnel management" as a description of the processes involved in managing people.
Human resources (HR) are one of the most important “assets” of your business. The individuals who
make up your organization go a long way toward driving its success, whether they are employees,
managers, consultants or others. HR refers to the recruitment and management of personnel, in
compliance with the law. Thus, the practice of HR requires knowledge of the laws that affect your
workplace - at the federal, state and local levels. In addition to legal compliance, HR covers the art
of managing your business internally. This is one of the major responsibilities of the human resource
team. The HR managers come up with plans and strategies for hiring the right kind of people. They
design the criteria which is best suited for a specific job description. Their other tasks related to
recruitment include formulating the obligations of an employee and the scope of tasks assigned to
the employees. Based on these two factors, the contract of an employee with the company is
prepared. When needed, they also provide training to the employees according to the requirements
of the organisation. Thus, the staff members get the opportunity to sharpen their existing skills or
develop specialised skills which in turn, will help them to take up some new roles. HRM encourages
the people working in an organisation, to work according to their potential and gives them
suggestions that can help them to bring about improvement in it. The team communicates with the
staff individually from time to time and provides all the necessary information regarding their
performances and also defines their respective roles.
This is beneficial as it enables them to form an outline of their anticipated goals in much clearer
terms and thereby, helps them execute the goals with best possible efforts. Performance appraisals,
when taken on a regular basis, motivate the employees. This is a vital aspect of HRM because the
performance of an individual in an organisation is largely driven by the work atmosphere or work
culture that prevails at the workplace. A good working condition is one of the benefits that the
employees can expect from an efficient human resource team. A safe, clean and healthy
environment can bring out the best in an employee. A friendly atmosphere gives the staff members’
job satisfaction as well. In an organisation, there are several issues on which disputes may arise
between the employees and the employers. You can say conflicts are almost inevitable. In such a
scenario, it is the human resource department which acts as a consultant and mediator to sort out
those issues in an effective manner.t. In other words, they take timely action and prevent things from
going out of hands.
FUNCTIONS OF HR DEPARTMENT:
Recruitment and selection:
The selection and recruitment process is very important to every organization
because it reduces the mistakes caused by engaging a incompetent, unmotivated, and under
qualified employees. Firing the unqualified candidate and hiring the new employee is again
an expensive process. This step is always the primary function of any organization.
Orientation:
Orientation is a process which is committed during the first day of the new joiner,
this could help the new employees to understand the companies rule, regulations and legal
procedures if any. Many organizations do not provide a thorough orientation to the new
employees. This is the fundamental step to help a new employee to adjust himself with the
employer and with his new job. Employee orientation program should include the objectives
and goals of the organization and how the employee can help to achieve the long-term and
short-term goals of the organization.
Good Working Conditions:
The employees working climate is always responsible for the employee’s performance. It is the
responsibility of the human resource management to provide good working conditions to the
employee so that they may like the workplace and the work environment. It is the fundamental duty
of the HR department to motivate the employees. Human resource management should come up
with a system to provide financial and non- financial benefits to the employee from the various
departments. Employee welfare is another concept which should be managed by HR team.
Employee welfare promotes job satisfaction
Training and Development:
Training and development are the indispensable functions of human resource management. It is the
attempt to improve the current or future performance of an employee by increasing the ability of an
employee through educating and increasing one’s skills or knowledge in the particular subject.
3.2 MARKETING DEPARTMENT:
Marketing logistics involve planning, delivering and controlling the flow of physical goods,
marketing materials and information from the producer to the market. The aim is to meet
customer demands while still making a satisfactory profit. To maintain organizations
competitive edge, AL JESVIN creates an effective strategy regarding product, price, place
and promotion. These four functions of marketing logistics help the organization to reach the
target customers and deliver the products or services sold by the organization to these
customers.
FUNCTIONS OF MARKETING DEPARTMENT:
Product Delivery:
The function of logistics marketing is finding out who your customer is and how to get the
product or service to the customer. Each customer can have individualized needs so the
logistical services provided may vary from customer to customer. Regardless of these
differences, the customers expects 100 percent conformance and assured reliability at all
times with every transaction. The goals of this aspect of marketing logistics include filling the
order, on-time delivery, precise invoicing and zero damage.
Price :
Organization bases pricing decisions on both internal and external factors. Marketing
logistics must recognize price drivers. The profile of the customer, the product and he type of
order are factors that drive the price. These changes are not typically controlled by marketing
logistics. However, marketing logistics must react to these factors and understand how the
factors affect customer’s decisions. Discounts for quantities and the related logistical cost
structure can impact the price the customer will ultimately pay for the product or service.
Additional factors driving price include the shipping costs based on the size, weight and
distance the organization will ship the item. Further, the size of the manufacturing run, labour
costs and the types, quantities and quality of the materials used in the manufacturing process
can affect price.
Promotion:
Promotion is another important aspect of an organization’s marketing logistics process. When
bringing a product to market, the organization must coordinate the logistics of the various
marketing materials. For example, the art department might design the art work for the
product's box and an outside supplier might manufacture the boxes with the artwork.
Marketing logistics can help to ensure that all of these entities work together and produce the
marketing materials needed to sell the product.
Place :
The function of place in marketing logistics allows the organization to simplify the
transactions between a logistics provider and the customer. The organization must execute
logistics in such a way that the customer is not aware of the complexities involved in the
logistics process. For the customer, the output is always more important than the process. The
organization should, therefore, never expose the backroom processes involved with logistics
delivery to the customer. Also the location of the factory, warehouse and customer can
greatly impact the marketing logistics process by increasing or reducing costs. For example,
locating a factory in India might reduce the labour costs associated with a product. However,
at the same time locating the factory in India might increase the shipping costs and negate
any cost savings.
3.3 FINANCE DEPARTMENT:
Finance Department is the part of an organization that is responsible for acquiring funds for
the firm, managing funds within the organization and planning for the expenditure of funds
on various assets. It is the part of an organization that ensures efficient financial management
and financial control necessary to support all business activities.
FUNCTIONS OF FINANCE DEPARTMENT
Bookkeeping
This is the most basic function of the finance department. It involves the day-to-day
recording, analysis and interpretation of a company’s financial transactions. This will include
the tracking of all expenses (purchases, payments etc.) and sales of finished products. In
some start-up companies, this role is often carried out by a bookkeeper who might be
replaced by more specialized payables and receivables clerks as the company grows or
expands its operations.
Management of company’s cash flow
It is the duty of the finance department to manage all cash flows into and out of a company
and ensure that there are enough funds available to meet the day-to-day running of the
company. This area also encompasses the credit and collections policies for the company’s
customers, to ensure that vendors and creditors are paid correctly and on time; and that the
company is also paid correctly and as when due
Budgets and forecasting
In this function, the finance department works with managers to prepare the company’s
budgets and forecasts and also give feedback with regards to the financial standing of the
company. This information can be used to fulfil the cash needs of each department, plan
company staffing levels, plan asset purchase and expansions at minimum cost before they
become necessary. The finance department can also use past records from respective
departments to make better budget and forecast over long-term and short-term time horizons.
Advising and sourcing longer-term financing
It is the duty of the finance department to advise companies on the best financing mix that
could yield the company the best profit and also help them source longer-term financing at
the lowest cost such that there is a profit level of liquidity. Some of the many varied paths a
company can source funds to finance their business as discussed in one of our articles “10
Most Common Ways to Finance Your Business” include bank credit or private lender debt
or, share issues to private investors (where applicable).
Management of Taxes
Running a company involves paying tax, and it is the duty of the finance department to
handle tax issues. This includes creating good corporate relationships with government by
remitting PAYE (Pay As You Earn) to the relevant authority, and ensuring that
implementation of tax matters are done within the framed policies.
Management of Company’s Investments
Apart from analyzing and selecting new investments, it is also the duty of the finance
department to manage company’s existing assets. The finance department should be
concerned with current assets apart from fixed assets. The company’s working capital needs
to be managed efficiently in such a way as to maximize profitability relative to the amount of
funds tied up since it has more implication on the firm liquidity than its fixed asset.
Financial Reporting and analysis
Financial reporting and analysis is the function that takes raw accounting entries and
transforms them into meaningful, usable and comparable financial statements. The finance
department contributes to organizational growth by measuring and reporting on regular bases,
key numbers that are vital to the success of the company. This will likely include a summary
of all funding sources, expenditures and reserves available for future use (excluding those
already committed and budgeted for current period) some non-financial information. And are
usually communicated to managers in a logical and understandable format.
Assist managers in making key strategic decisions
The finance department provides company management with information necessary to make
strategic decisions such as which markets or projects to pursue, the payback periods for large
capital purchases, decision on what should be given out as dividend out of the company’s
earnings and what to plough back into the business, the best financing mix that could yield
the company the nest profit, decision on how to allocate funds to investment etc., thus,
making sure that money is being used in the best way. Having read up to this point, you must
have discovered that the importance of the finance department to any company cannot be
overemphasized since the financial policy of any company to a greater extent, determines not
only its existence, and survival but also the performance and success of that company. Any
company aspires to grow and make profit should make sure the activities of the finance
department are handled by individuals who have all it takes to be in the department.
PRODUCTION DEPARTMENT
Production is the functional area responsible for turning inputs into finished outputs through a
series of production processes. The Production Manager is responsible for making sure that
raw materials are provided and made into finished goods effectively. He or she must make
sure that work is carried out smoothly, and must supervise procedures for making work more
efficient and more enjoyable.
Five production sub-functions
In a manufacturing company the production function may be split into five sub-functions:
1. The production and planning department will set standards and targets for each section
of the production process. The quantity and quality of products coming off a production line
will be closely monitored. In businesses focusing on lean production, quality will be
monitored by all employees at every stage of production, rather than at the end as is the case
for businesses using a quality control approach.
2. The purchasing department will be responsible for providing the materials, components
and equipment required to keep the production process running smoothly. A vital aspect of
this role is ensuring stocks arrive on time and to the right quality.
3. The stores department will be responsible for stocking all the necessary tools, spares, raw
materials and equipment required to service the manufacturing process. Where sourcing is
unreliable, buffer stocks will need to be kept and the use of computerised stock control
systems helps keep stocks at a minimal but necessary level for production to continue
unhindered.
4. The design and technical support department will be responsible for researching new
products or modifications to existing ones, estimating costs for producing in different
quantities and by using different methods. It will also be responsible for the design and
testing of new product processes and product types, together with the development of
prototypes through to the final product. The technical support department may also be
responsible for work study and suggestions as to how working practices can be improved.
3.5 Balance sheet analysis
Income statement
Cash flow statement
Ratio analysis