Some employees in IBMs Global Technology Services group rece

Some employees in IBM’s Global Technology Services group received e-mails from the company informing them that a recent evaluation had identified them as an employee who had not kept pace with acquiring the necessary skills and expertise needed to meet changing client needs, technol-ogy, and markets. As a result, IBM requires them to dedicate one day a week or up to 23 total days between October 2014 and March 2015 to focus on training. During this time, the employee will take a pay cut, receiving only 90% of their base salary. Once training is completed salaries will be restored in full. Employees can either take the training or look for job opportunities within IBM that better match their current skills set.Employees have reacted negatively toward the program. Some feel the program with its pay cut is unfair because their work has received positive evaluations from their man-agers. Also, employees noted that all workers in their group were being assigned to the same training program regard-less of their individual skill levels. A few employees believe that the training program is a cost-cutting exercise that is being presented as a training program. A spokesperson for IBM emphasized that the salary cut and retraining program was not standard practice across IBM but affected only a few hundred employees in the U.S. technology services Some employees in IBM’s Global Technology Services group received e-mails from the company informing them that a recent evaluation had identified them as an employee who had not kept pace with acquiring the necessary skills and expertise needed to meet changing client needs, technol-ogy, and markets. As a result, IBM requires them to dedicate one day a week or up to 23 total days between October 2014 and March 2015 to focus on training. During this time, the employee will take a pay cut, receiving only 90% of their base salary. Once training is completed salaries will be restored in full. Employees can either take the training or look for job opportunities within IBM that better match their current skills set.Employees have reacted negatively toward the program. Some feel the program with its pay cut is unfair because their work has received positive evaluations from their man-agers. Also, employees noted that all workers in their group were being assigned to the same training program regard-less of their individual skill levels. A few employees believe that the training program is a cost-cutting exercise that is being presented as a training program. A spokesperson for IBM emphasized that the salary cut and retraining program was not standard practice across IBM but affected only a few hundred employees in the U.S. technology services

1. Do you believe this program is strategic? Why or Why not? Should employees\' salaries be reduced for the time they attend training programs? Provide a rationale for your answer.

2. What other ways might IBM convince the affected employees to update and gain new skills?

Solution

No, the employees salary should not be reduced for the time they attend training programs because salary the biggest motivational factor any employees and in- fact it’s their basic need from which they should not be restrain. Doing this will demotivate and decrease their work performance.

2. The IBM must convince and encourage the employees for on –the- job training and weekend training.