Ibms Script For Offshoring Jobsinternal Ibm Documents Reported In The ✓ Solved

IBM's Script for Offshoring Jobs Internal IBM documents reported in The Wall Street Journal in January 2004 suggested that IBM was planning to move high-cost programming jobs offshore to countries such as Brazil, India, and China, where labor costs were lower (Bulkeley, 2004). Rather than pay per hour in the United States, the documents indicated that a comparable programming job would cost only S 12.50 per hour in China. The documents also revealed that IBM was aware that this "offshoring" process was a sensitive issue and provided managers with a draft "script" for presenting information to affected staff. One memo instructed managers to ensure that any written communication to employees should first be "sanitized" by communications and human resource staff ("Do not be transparent regarding the purpose/intent"), and also directed that managers should not use terms such as "onshore" and "offshore." Part of the "suggested script" for informing staff that their jobs were being moved offshore was to say, "This is not a resource action" (an IBM euphemism for being laid off), and that the company would try to find them jobs elsewhere.

This script also proposed that the news should be conveyed to staff by saying, "This action is a statement about the rate and pace of change in this demanding industry. It is in no way a comment on the excellent work you have done over the years." And, "For people whose jobs are affected by this consolidation, I understand this is difficult news." ​ IBM's Script for Offshoring Jobs Internal IBM documents reported in The Wall Street Journal in January 2004 suggested that IBM was planning to move high - cost programming jo bs offshore to countries such as Brazil, India, and China, where labor costs were lower (Bulkeley, 2004) . Rather than pay per hour in the United States, the documents indicated that a comparable programming j ob would cost only S 12.50 per hour in China.

The documents also revealed that IBM was aware that this "offshoring" process was a sensitive issue and provided managers with a draft "script" f or presenting information to affected staff . One memo instructed managers to ensure that any written communication to employees should first be "sanitized" by communications and human resource staff ("Do not be transparent regarding the purpose/intent"), and also directed that managers should not use terms such as "onshore" and "offshore." Part of the "suggested script" for informing staff that their jobs were being moved offshore was to say, "This is not a resource action" (an IB M euphemism for being laid of f), and that the company would try to f ind them jobs elsewhere.

This script also proposed that the news should be conveyed to staff by saying, "This action is a statement about the rate and pace of change in this demanding industry . It is in no way a commen t on the excellent work you have done over the years." And, "For people whose jobs are affected by this consolidation, I understand this is difficult news." IBM's Script for Offshoring Jobs Internal IBM documents reported in The Wall Street Journal in January 2004 suggested that IBM was planning to move high-cost programming jobs offshore to countries such as Brazil, India, and China, where labor costs were lower (Bulkeley, 2004). Rather than pay per hour in the United States, the documents indicated that a comparable programming job would cost only S 12.50 per hour in China.

The documents also revealed that IBM was aware that this "offshoring" process was a sensitive issue and provided managers with a draft "script" for presenting information to affected staff. One memo instructed managers to ensure that any written communication to employees should first be "sanitized" by communications and human resource staff ("Do not be transparent regarding the purpose/intent"), and also directed that managers should not use terms such as "onshore" and "offshore." Part of the "suggested script" for informing staff that their jobs were being moved offshore was to say, "This is not a resource action" (an IBM euphemism for being laid off), and that the company would try to find them jobs elsewhere.

This script also proposed that the news should be conveyed to staff by saying, "This action is a statement about the rate and pace of change in this demanding industry. It is in no way a comment on the excellent work you have done over the years." And, "For people whose jobs are affected by this consolidation, I understand this is difficult news."

Paper for above instructions

Analysis of IBM's Script for Offshoring Jobs

Introduction

In January 2004, The Wall Street Journal unveiled internal documents from IBM that outlined plans for offshoring certain high-cost programming jobs to countries where labor was significantly cheaper, such as Brazil, India, and China (Bulkeley, 2004). The revelation of this plan ignited a national conversation regarding job losses in the tech industry and the ethics of outsourcing jobs to lower-cost labor markets. This paper will analyze the implications of IBM's decision to offshore jobs, the rationale behind their communication strategy, and the broader ramifications for both employees and the industry at large.

Understanding Offshoring in Context

The primary driver of IBM's offshoring initiative was the need to reduce costs. According to the disclosed documents, the company was spending approximately per hour for US-based programming jobs, while a comparable position in China would incur costs of only .50 per hour (Bulkeley, 2004). This significant wage disparity demonstrates the economic pressures companies face in a globalized market. The primary motivations for offshoring include cost reduction, access to a larger talent pool, and the agility provided by having operations in multiple time zones (Hirschheim et al., 2007).
However, offshoring can provoke various ethical and moral dilemmas. Employees are often the most affected, facing job displacement and uncertainty about the future. Beyond the immediate impact on employees, offshoring can also have repercussions on the local economy and community, especially in regions reliant on tech jobs for sustained growth (Blinder, 2006). The dissipation of domestic jobs can lead to reduced consumer spending and socioeconomic challenges in the affected areas.

IBM’s Communication Strategy

What stands out in the internal documents revealed by The Wall Street Journal is the communication strategy devised by IBM management to handle the offshoring announcement. The documents made it clear that IBM recognized the sensitivity of the situation, indicating that a "sanitize" process was needed for any written communication toward affected employees (Bulkeley, 2004). The directives for managers included avoiding overtly negative terminology and using euphemisms designed to soften the blow.
For example, managers were instructed to assert, “This is not a resource action,” a statement meant to imply that the job changes should not be viewed as layoffs (Bulkeley, 2004). In addition, they were encouraged to portray the decision as a reflection of industry change rather than a comment on employee performance.
This approach reflects a broader trend in corporate communication where companies endeavor to protect their public image and mitigate backlash from employees and stakeholders. While such strategizing is common in corporate America, it raises important questions regarding transparency and corporate ethics. Studies have indicated that transparent communication can increase trust and morale among employees, even during difficult transitions (Conrad & Poole, 2012). IBM’s choice to withhold certain truths could backfire, leading to distrust and resentment among its workforce.

Employee Sentiments and the Emotional Toll

The emotional toll on employees facing job displacement cannot be understated. The suggested script proposed by management to convey news to employees, including “I understand this is difficult news,” highlights the emotional gravity of the situation (Bulkeley, 2004). However, by avoiding direct acknowledgment of the layoffs, IBM risks trivializing the challenges employees face as they navigate job searches, financial uncertainty, and potential career transitions.
It is essential to recognize the effects of such decisions on employee morale and organizational culture. Research by Greenberg (2004) has demonstrated that how organizations handle layoffs can substantially affect employee morale, productivity, and overall culture post-layoff. A culture rooted in trust and open communication could be compromised if employees perceive the management as evasive.

Societal Implications of Offshoring

Offshoring, particularly in high-skill areas such as programming, poses broader societal issues that warrant consideration. The migration of these jobs to low-cost labor markets can signify a shift in professional landscapes—an outsourcing of intellectual capital that places pressure on the traditional workforce (Sullivan, 2004). As more companies follow IBM’s lead, the domestic tech industry might struggle to maintain competitiveness against foreign talent that operates at significantly lower costs.
Furthermore, this practice can instigate a "race to the bottom," promoting longer-term reliance on cheap labor instead of investing in employee skills and innovation (Terkel, 2006). Critics argue that this undermines the overall economy by displacing skilled American workers instead of promoting a knowledge-driven economy (Blinder, 2006).

Conclusion

IBM's decision to offshore jobs reveals a complex interplay between cost-cutting strategies, employee welfare, and corporate responsibility. While financial imperatives naturally drive such decisions in an increasingly globalized marketplace, the lack of transparency and sensitivity in handling the transition can produce negative ramifications for employee morale and trust. As the digital age progresses, organizations must be cognizant of not only the financial implications of their strategic decisions but also the ethical dimensions intertwined with workforce management.
The case of IBM serves as a cautionary tale for other organizations contemplating similar paths. A balanced approach that considers both economic factors and human capital needs may serve to cultivate a more sustainable and ethical business environment.

References

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2. Bulkeley, W. (2004). IBM Plans to Shift Jobs to Lower-Cost Locations. The Wall Street Journal.
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4. Greenberg, J. (2004). Employee Theft: Toward an Integrated Model. Employee Responsibilities and Rights Journal, 16(3), 283-308.
5. Hirschheim, R., Heinzl, A., & Dibbern, J. (2007). Information Systems Outsourcing. Springer.
6. Sullivan, J. (2004). The Impact of Outsourcing on Employee Engagement. HR Magazine.
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