Discussion Topic: New HRM Practices at IBM:
IBM has moved from a business that primarily focused on manufacturing, and selling computer hardware and managing clients on-site data centers to becoming a key player in cloud-based services, artificial intelligence-based products, and blockchaining (a security system for Bitcoin and cryptocurrencies). The business focus at IBM today is speed, innovation, and a focus on the client experience.
To attract and retain talented employees, to support change, and to facilitate the creative and innovative thinking that IBM needed to transition to new businesses required adopting new HRM practices. Innovative products and services often result from employees with diverse backgrounds working together. Recognizing this, as well as wanting to be an inclusive employer, IBM has taken several steps to develop a pipeline of skilled and diverse tech employees. The company's New Collar program helps identify and hire individuals from nontraditional backgrounds who have the potential to master technical skills but might otherwise get ignored because they don't have the necessary education background, such, as a college education. IBM provides opportunities for women who have not been working for an extended period of time to develop the skills needed for tech jobs. The company has also been recognized for its efforts in hiring graduates of historically black colleges and university.
Many of the IBM's HR practices involve using state-of-the art AI applications and data analytics. IBM's learning management system provides many training and development opportunities customized to match employees' interests and needs, YouTube videos, and TED talks. Learning opportunities are organized on the learning management system by channels, similar to what you have experienced on Netflix or Amazon. Employees can get answers to their questions about the learning opportunities by accessing a live-chat adviser. They can also see how their peers have evaluated the various learning opportunities. Since the redesign of the learning management system, employees are using it over one-third more than in previous years and course completions rates have increased. IBM's Blue Matching tool helps employees identify new opportunities within the company. It identifies jobs that match employees' skills, experiences, current locations where they work or their location preferences, and historical job performance. IBM employees interact with Myca (My Personal Career Advisor) to answer questions about their career, get job recommendations, identify new career paths, and identify training programs that fit their interests. Myca has artificial intelligence and uses natural language processing and machine learning to have a conversation with employees. Myca becomes acquainted with each employee through reviewing their resume, job history at IBM, and any other important work and educational experiences they submit in their personal profile. CogniPay helps managers make better compensation decisions by evaluating data on performance, what other employers pay for similar jobs, and what the demand is for similar skills. The analysis also includes internal forecasted demand for their expertise and voluntary attrition of employees with the same skills.
IBM estimates that CogniPay, Blue Matching and Myca have saved the company more than $100 million dollars. These savings are based on considering the expenses IBM avoided in recruiting for new talent, hiring and training new employees, and the value of employees who would have likely left the company because of a lack of career advancement opportunities.
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QUESTIONS
Q1. Does IBM's use of AI applications in HRM practices support and align with the business priorities? Explain your answer.
Q2. What are the advantages and disadvantages of using CogniPay, Blue Matching, and Myca for HR practices? Explain.
Q3. IBM is a successful, well-known company. So why does it need to provide programs such as New Collar? Explain.