IBM’s Organizational Transformation: Case Study

Shared by SteadyAtlas9417 November 2, 2026 PDF
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About this document

Pages
22 pages
Price
$22 one-time, yours to keep
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Subject
Business Management, Information Technology

This case study examines the organizational transformation at IBM in the early 1990s, focusing on the discourses involved in the process. It uses Stakeholder Agency Theory to identify six forms of discourse in organizational change. It is useful for understanding the role of IT in organizational transformation.

What's inside

  • IBM's financial crisis in the early 1990s
  • Stakeholder Agency Theory and organizational transformation
  • Six forms of discourse in organizational change
  • The role of IT in IBM's transformation
  • Executive discourse and other voices in transformation

Who it is for: Students studying organizational transformation and business strategy. (Postgraduate)

#business decisions #business it #business strategy #case study #ibm case study #organizational transformation #stakeholder agency theory

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Summary

IBM's organizational transformation from 1991 to 1994 is studied. Students learn about the role of information technology in organizational change and the different voices involved in this process.

Organizational Change and IT

Organizational change and the role of IT in driving this change are discussed. Different target structures for organizational transformation are introduced. IBM's financial struggles in the early 1990s are described.

Actors and Management Systems

Two dimensions of organizational structure are explained. The distinction between mechanistic and organic management systems is explored. The degree of participation and hierarchy in organizations is considered.

The CEO Discourse

The appointment of a new CEO at IBM in 1993 is detailed. The CEO's initial assessment of IBM's problems and his subsequent discourse about middle management are outlined. The methods used to achieve financial objectives are described.

Retrospective

The limitations of the research are acknowledged. The methodological constraints of the study are discussed. The case concludes with the results of the transformation and future prospects.

Key terms

Stakeholder Agency Theory
A theory that identifies six forms of discourse in organizational transformation.
Discourse
The intention of a subject to communicate with an intended audience.
Organic management system
A management system that uses face-to-face coordination through ad hoc meetings.
Mechanistic management system
A management system that coordinates through rules and plans.
Reengineering
The process of reducing low-value work without further headcount reduction.
Socio-technical approaches
Approaches that involve both social and technical aspects in IS development.

Questions this document helps with

  • What role does information technology play in organizational change?
  • How did IBM's new CEO address the company's financial problems?
  • What are the differences between organic and mechanistic management systems?

Summary written with AI from the document's text.

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