Introduction to the Company
Global companies can lose their top positions in the market from both outside and inside factors. To remain competitive, they must adapt and change their strategies in all areas of business. Recently, a massive influx of changes among the companies that have risen to the highest ranks was oriented on employees, leadership, and organizational culture (Karayianni & Ivanov, 2019). This essay will discuss the cultural setting of Intel Corporation, review its current state and discuss what changes are essential for the company to implement in order to become more competitive.
Intel Corporation has been on the market for over 50 years, in which it became one of the flagships of the personal computer hardware market. The company has a revenue of $72 billion and more than 110,000 workers across the globe (Clark, 2020). Despite these impressive numbers, it has been losing its position to its competitors, and there is a need to reimagine its organizational culture.
Overview of the Current Cultural Setting
The company itself has acknowledged the need to shift away from its current work environment. The organizational culture of Intel has been built on standardized methods that made the company stable in the face of past crises (Llopis, 2020). Nowadays, this strictness has produced a prolonged period for new product reviews and approvals due to bureaucracy, manufacturing slowdown due to the lack of proper cooperation between teams, and other organizational issues (Clark, 2020). As a result, other companies began releasing better technologies at a faster pace, and the talent pool of Intel started to shrink (Karayianni & Ivanov, 2019). A significant change in cultural setting can change this notion.
To review the inner structure of the company, it is essential to understand what shaped its culture. With its numerous successful product launches and developments of microchips, Intel Corporation has taken the leadership role in this market (Clark, 2020). However, this position caused the company to become less observant of its customers’ reactions to its further developments, eventually causing the company to dictate the decisions of computer-making companies that relied on its products (Clark, 2020). The organizational culture of Intel has been aligned with this focused vision and needs to be revised to become efficient nowadays.
Overview of New Cultural Setting
With the focus on delivering the best possible product to its customers, Intel has been restrained in its innovative capabilities. Llopis (2020) argues that corporate strategies, while they helped with the establishment of efficient businesses, “were not designed to serve mass variance,” which is expected on the modern market. To change this fact, it is essential for the company to create a work environment that would nurture individuality and flexibility. This variety in demands requires diversity and inclusiveness to meet the expectations of as many customers as possible (Llopis, 2020). As more people will have an influence on the inner processes of the company, new ideas will become more common.
A mix of a clan structure with a portion of adhocracy is the best suitable framework for Intel Corporation that will help the company to achieve the desired level of flexibility and innovation. Chen et al. (2018) state that “organizations with this culture are characterized by teamwork, employee involvement, and corporate commitment to employees” (p. 4). Therefore, the proposed changes to the organizational culture must focus on the internal factors, and the opinions of employees must be considered on par with the customer demands, and this intended shift is shown in Figure 1.
To shift to this new paradigm focused on individuality, Intel Corporation must create a complex supportive structure for its 110,000 employees. The growth of human capital for research and development can provide a significant boost to a company’s competitiveness (Karayianni & Ivanov, 2019). However, other employees must not be left out, as their ideas could be worth as much as those of a specialist. In fact, Intel has recognized this potential and has a special hotline for employees who seek professional growth (Llopis, 2020). The company must seek other ways to exploit its own potential.
Companies that intend to take aim at innovations as the primary source of competitive advantage have to discover the contemporary norms of organizational culture. Among the firms with a similar goal, strategies can vary due to the spontaneous nature of the innovative process, yet there are several key factors that can nurture the required work environment. First and foremost, these organizations show a high level of flexibility (Chen et al., 2018). In the face of an ever-changing market landscape, Intel has to use its human resources with maximum efficiency. While a focused approach might appear to be more beneficial for such a case, a shared mission can be accomplished faster when the capacity of every participating individual is increased (Llopis, 2020).
There are numerous reasons that can arise due to such a sudden shift in the direction of leadership. There is a risk for efficient resource expenditure, slowdown of the company’s growth, or even downsizing (Karayianni & Ivanov, 2019). However, the benefits of the focus on individuals tend to increase employee satisfaction and productivity (Karayianni & Ivanov, 2019). Intel has already begun to introduce rewards to its employees for their personal achievements (Llopis, 2020). The system needs to accompany a larger framework that will interpret the efforts of an individual into a beneficial effect on the entire company.
Flexibility can be challenging to achieve in a company of the size of Intel. The firm must recognize which processes provide an opportunity for employees to operate autonomously and decrease the pressure from the managerial judgment and assessment. Chen et al. (2018) argue that a focus on individual employees and their autonomy allows the company “to explore ideas flexibly and independently, which may increase the novelty of product development” (p. 7). Autonomy decreases stress among employees and boosts their career advancement, although it adds uncertainty to the organizational processes of a company (Karayianni & Ivanov, 2019). Intel can promote self-governing behavior among various departments but must focus this policy on R&D.
In conclusion, it is expected for Intel Corporation to change its practices from predictability and conformity to a less stable yet flexible approach that will promote innovation. As the company has lost a significant portion of its competitive advantage in the past few years, innovative technology is an essential part of its current and future culture. Intel Corporation has to develop a strategy that promotes the professional growth of every employee while keeping the company sufficiently stable to remain the top microchip provider.
Chen, Z., Huang, S., Liu, C., Min, M., & Zhou, L. (2018). Fit between organizational culture and innovation strategy: Implications for innovation performance. Sustainability, 10(10), 3378. Web.
Clark, D. (2020). Intel’s culture needed fixing. Its C.E.O. Is shaking things up. The New York Times. Web.
Karayianni, F., & Ivanov, D. (2019). Reorganization on employee satisfaction: The gray area of corporations: A case study on Intel Corporation’s employees [Doctoral dissertation]. Web.
Llopis, G. (2020). Intel’s culture evolution in a continually expanding and unpredictable marketplace. Forbes. Web.