Question

IBM recently went through a major reorganization that included firing more than 10,000 people. One result of this change means it is likely that IBM responded to the challenge of a rapidly changing marketplace by:__________

a. increasing the size of their traditional departments to handle 24/7 operations.
b. flattening their organization and empowering their employees, allowing them to get closer to the customer.
c. centralizing their decision making to better control their total quality management program.
d. acquiring additional firms

Answer 1

IBM's reorganization, involving major layoffs, indicates a shift towards a flatter organizational structure and empowered employees, which are strategies to become more agile in a rapidly changing marketplace. The correct option is b.

Step-by-step explanation:

IBM recently went through a major reorganization that included firing more than 10,000 people. This indicates that IBM likely responded to the challenge of a rapidly changing marketplace by flattening their organization and empowering their employees, allowing them to get closer to the customer. Flattening an organization often involves reducing layers of middle management, which can lead to downsizing, and streamlining decision-making processes to become more agile and responsive to market changes. Empowering employees typically means delegating more authority to lower-level employees, encouraging a more collaborative and proactive approach to encountering customers and their needs.

This strategy is in keeping with current organizational trends that shift away from hierarchical structures toward more team-based and flat structures, reflecting a modern business environment where agility and close customer relationships are highly valued. Significant layoffs, as difficult as they are, can sometimes be a part of this restructuring to create a more streamlined and efficient organization that is better able to adapt to global market dynamics.

Answer 2

IBM

b. flattening their organization and empowering their employees, allowing them to get closer to the customer.

Step-by-step explanation:

By firing more than 10,000 people during a major reorganization, IBM removed many middle managerial layers, thus flattening the organization. As a result, employees down the managerial ladder will be empowered to work closely with IBM customers. What is achieved is called a flat organization, which has few or no levels of middle managers. A flat organization improves communication between the executive and the customer-facing employees.