Editing Thomas J. Watson Jr.
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Perhaps Watson's most enduring contribution to IBM was its organizational structure, since new products, no matter how successful, carry a company for at most a few years. In 1956, in a move that became a bi-annual event, he reorganized IBM on divisional lines, to give a decentralized organization, with five major divisions in the US. The new structure comprised: |
Perhaps Watson's most enduring contribution to IBM was its organizational structure, since new products, no matter how successful, carry a company for at most a few years. In 1956, in a move that became a bi-annual event, he reorganized IBM on divisional lines, to give a decentralized organization, with five major divisions in the US. The new structure comprised: |
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#Data Processing Division |
#Data Processing Division — selling to (and servicing) commercial customers |
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#Federal Systems Division |
#Federal Systems Division — selling to (and servicing) the US government |
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#Systems Manufacturing Division |
#Systems Manufacturing Division |
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#Components Manufacturing Division |
#Components Manufacturing Division |
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Smaller units were Electric Typewriter, IBM World Trade, [[Service Bureau Corporation]], Supplies Division; and Time Division (sold off in 1958). |
Smaller units were Electric Typewriter, IBM World Trade, [[Service Bureau Corporation]], Supplies Division; and Time Division (sold off in 1958). |
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Watson said "We had a superb sales organization but lacked expert management organization in almost everything else".{{Citation needed|date=October 2010}} His goal was to redirect IBM to absorb the shocks of change, including change from its own innovation.<ref name="mercer">{{cite book|author=David Steuart Mercer |title=IBM: How the World's Most Successful Corporation is Managed |publisher=Kogen Page Ltd | |
Watson said "We had a superb sales organization but lacked expert management organization in almost everything else".{{Citation needed|date=October 2010}} His goal was to redirect IBM to absorb the shocks of change, including change from its own innovation.<ref name="mercer">{{cite book|author=David Steuart Mercer |title=IBM: How the World's Most Successful Corporation is Managed |publisher=Kogen Page Ltd |date=March 22, 1987 |url=http://futureobservatory.dyndns.org/2013.htm |isbn=978-1-85091-287-3 |url-status = dead|archive-url=https://web.archive.org/web/20061003095223/http://futureobservatory.dyndns.org/2013.htm |archive-date=October 3, 2006 }}</ref> |
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He introduced the terminology "line and staff".{{Citation needed|date=October 2010}} In his words: "By the mid-'50s just about every big corporation had adopted the so-called staff-and-line structure. It was modeled on military organizations going back to the Prussian army in Napoleonic times."{{Citation needed|date=October 2010}} |
He introduced the terminology "line and staff".{{Citation needed|date=October 2010}} In his words: "By the mid-'50s just about every big corporation had adopted the so-called staff-and-line structure. It was modeled on military organizations going back to the Prussian army in Napoleonic times."{{Citation needed|date=October 2010}} |
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The final element of formal organizational change was the isolation of headquarters staff in [[Armonk, New York|Armonk]], [[New York (state)|New York]]. This was said by him to be in order to be near his family in Connecticut. |
The final element of formal organizational change was the isolation of headquarters staff in [[Armonk, New York|Armonk]], [[New York (state)|New York]]. This was said by him to be in order to be near his family in Connecticut. |
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His first book in 1963 discussed his management philosophy.<ref name="Watson2003">{{cite book |author=Thomas J. Watson |title=A business and its beliefs: the ideas that helped build IBM |url=https://books.google.com/books?id=vWIVyXC2rK8C| |
His first book in 1963 discussed his management philosophy.<ref name="Watson2003">{{cite book |author=Thomas J. Watson |title=A business and its beliefs: the ideas that helped build IBM |url=https://books.google.com/books?id=vWIVyXC2rK8C|date=April 25, 2003 |orig-year= 1963 |publisher=McGraw-Hill Professional |isbn=978-0-07-141859-1}}</ref> |
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==Honors== |
==Honors== |