ISSN 2822-0323 (Online)

March 2023

Advance Knowledge for Executives

(AKE)

2(1), No. 16

Change Management Model in Corporate Culture and Values

: A Case Study of Intel Cooperation

Seng Loong Kok

Manipal GlobalNxt University, Malaysia

SK16943@campus.globalnxt.edu.my

ORCID ID: orcid.org/

0009-0006-0997-7960

(Corresponding Author)

Supaprawat Siripipatthanakul

Manipal GlobalNxt University, Malaysia

supaprawat.siripipatthanakul@campus.globalnxt.edu.my

ORCID ID: orcid.org/0000-0001-6671-2682

ABSTRACT

Objective:

Using Kotter's Change Model and Rahim's Meta Model, this case study reviewed

Intel Corporation's (Intel) organizational culture and values and its interrelation with its crisis

response and change management strategy. This study supports the argument that the existence

of a robust corporate culture and values has a positive impact on conflict and change

management strategy.

Method:

The case study analysis was structured into three main sections: 1) an overview of

Intel's history, mission statement and core values; 2) Examine of the company's nature of

business dynamics and the driving forces of change; and the impact of these forces on the

organization and performance, 3) Evaluation of Intel's Crisis Response and Change

Management Strategy regarding Kotter Change Model and Rahim Conflict Management

Approach.

Result:

This study supports the argument of a contingency approach in managing the change

process. While the mainstream research argues that inter-functional conflicts have adverse

effects on overall organizational performance; however, the findings suggest the ability manage

these conflicts constructively can lead to long-run organizational performance enhancement.

The study also observed the importance of organizational communication, and seamless

corporate culture and values integration are the critical success factors to facilitate an effective

change process to achieve sustainable organizational performance.

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Recommendation:

The practice of strategic management has evolved over the decades with its

success in forging competitive advantages. Strategic Human Resource Management (SHRM)

research in recent decades suggests increasing importance and recognition of human capital as

the fundamental element of strategic management processes. With the increasing trend of

globalization and business dynamics that are highly driven by rapid technological

advancement, a robust organizational culture that can adapt to these changes is vital for its

market survival.

Keywords:

Human Resource Management, Change Management, Corporate Culture, Values

, Multi-National Corporation

INTRODUCTION

Since the turn of the 21st century, the dynamics of the world have changed rapidly at an

unprecedented rate, from the globalization of trade, climate change movement, and enhanced

connectivity have posed challenges for firms to adapt to these changes and creation of

sustainable competitive advantages to address the competitions (United Nation, 2017). The

increased complexity and variables made strategic management practice vital for achieving

organizational goals, but the absence of the pattern can be lethal and affect the firm's survival.

Literature and studies have been published since the strategic management concept was

first introduced in 1979 (Nag, Hambrick & Chen, 2007) and its success in developing

competitive advantages (Porter, 1985). Strategic Human Resource Management (SHRM)

research in recent decades suggests the increasing importance and recognition of human capital

as the fundamental element throughout strategic management processes (Potter, 1998; Lefter,

Marincas & Puia, 2007; Anca-Ioana, 2013; Ramona & Anca, 2013). One of the critical aspects

of strategic management is formulating and implementing the necessary change strategies to

align the internal resources to its external environment opportunities and threats to achieve the

desired business objectives. This case study aims to review Intel Corporation's (Intel)

organizational culture and values and its interrelation with its crisis response and change

management strategy, using Kotter's Change Model and Rahim's Meta Model.

Thus, the constant variable in life changes. The same principle applies to the business

world, where firms must adapt to changes derived from competition, technological

advancement, and consumer behaviour and preference shifts. Failure to adapt to these changes

can devastate firms' long-term performance. Many works of literature have been published on

the impact of organizational culture on change management strategy to forge sustainable

competitive advantage.

LITERATURE REVIEW

Background of INTEL Cooperation

Intel was founded in 1968 by former Fairchild engineers Robert Noyce (the co-inventor

of microchip uses silicon design, nicknamed the "mayor of Silicon Valley") and Gordon Moore

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(noted for Moore's law which predicted the rate of miniaturization in the semiconductor

industry and had widespread impact in many areas of today's technological change). The

company was initially named N.M. Electronics, after the last name of the co-founders, later

changed it to "INTEL" after acquiring the right to use its name (which stands for Integrated

Electronics) from Intelco (A hotel chain company) later that year for USD15,000. The

company's first product, the 3101 Schottky bipolar random-access memory (RAM), was

produced in 1969, and the first microprocessor, model 4004, was built in 1971. The Intel

corporation went public in 1971 on the NASDAQ stock exchange.

The company is considered one of the most successful and admired in the 20th century.

It has grown to be the largest chip manufacturer in the world for 26 years consecutively since

1991 until Samsung overtook it in 2017 (Forbes, 2017). The headquarters of Intel is in the same

city where their first office was opened - in Santa Clara, California, with an operator presence

located worldwide. As of July 2020, Intel's market capitalization stood at USD203 Billion,

ranked 45th on the Fortune 500 list (Fortune, 2020).

INTEL's Mission, Objective and Core Values

As a technology innovation-driven company, Intel derives its competitive advantage

from solid research and development capabilities. Intel harnesses these competencies internally

via its internal R&D team. As such, Intel strongly emphasizes their human capital, which is

critical in developing and delivering its technology products. The recognition of human capital

as a strategic asset of Intel is noted in its Mission Statement as follows:

"Delight our customers, employees, and shareholders by relentlessly delivering the

platform and technology advancements that become essential to how we work and live."

The objectives must be clearly defined and well-communicated, outlining what the company

needs to achieve to remain "essential", as highlighted in Intel's mission statement; to

accomplish the mission; such as the following objectives are established:

•

Extend our silicon technology and manufacturing leadership.

•

Deliver unrivalled microprocessors and platforms.

•

Grow profitability worldwide.

•

Excel in customer orientation.

Given the nature of Intel, business dynamics are highly driven by rapid technological

advancement, and the importance of a robust culture that can adapt to these changes is vital for

its market survival. A set of core values are defined within the organization as guidelines for

Intel employees on work ethics and attitudes in the performance of their jobs and decision-

making to achieve these objectives. In principle, Intel set six core values which are:

•

Customer-oriented – To meet & exceed customer expectations, both internal & external.

•

Results-oriented – Objective-driven and accountable.

•

Risk-taking – The desire to challenge the status quo & achieve new heights on standards.

•

Great place to work – Create a conducive and supportive work environment to excel.

•

Quality – The priority in all aspects of the value chain processes.

•

Discipline – The ability to focus on the tasks to achieve the desired outcome.

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INTEL's Business Backdrop: 1999 – 2001

The Dotcom Rush, Y2K Compliance and Race to 1Ghz: The Good, the Bad and the

Pressure.

Intel's business growth is highly associated with the internet age, which started in the

early 90s and saw the affordability of personal computers because of cost reductions and

digitization of business processes, which later formed the Dotcom phenomenon in the late

1990s (Intel Annual Report, 1999). The Computing Industry's rapid technological

advancements enabled producing high-performance computers at a lower cost (Figure 1) and

the adoption of digital multi-media experiences, which created new digital business models

(Tian & Stewart, 2006) that drove high demands for computing machines. These driving forces

saw the emergence of various technology companies such as Amazon.com Inc, Yahoo!, eBay

Inc., Netscape Communications Corporation and Google LLC.

Figure 1.

Cost Per Million Instructions per Second Trend 1982 – 1995 (MIPS)

Source: Grove, 1996 (Intel)

The Millennium Bug, commonly known as the Y2K bug, was a computer coding format

limitation issue that suggests potential discrepancies when dealing with dates beyond

December 31, 1999. The root cause of the Millennium Bug originated from the two-digit

coding format on accounting for the year adopted between the 1960s through the 1980s due to

data storage in computers being costly and taking up much space during those days. As such,

the limitation of the two-digit format will potentially cause computer data corruption and

system failure due to the computer's inability to recognize the Year 2000 and misinterpret it as

the year 1900.

As a result, both computer software and hardware companies raced to provide "Y2K

compliance" solutions to overcome the issues during the late 1990s. The need to ensure Y2K

compliance drove worldwide spending in both public and private sectors, amounting to more

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than USD300 billion (Slate, 2009). While the Y2k issue indirectly drove the market demand

due to Y2K compliance-related spending, internally, Intel faces similar challenges as the other

industries in ensuring Y2k compliance by investing in enterprise resource planning (ERP)

systems and legacy systems system migrations to minimize the risk exposure to Y2K Bug.

Technological innovations are one of the sources to obtain a competitive advantage.

Since Intel's inception, its ability to innovate and offer better products compared to its

competitors has enabled Intel to establish a strong market position over the years. These

technological edges will deliver better performance, cost efficiency, product quality and

reliability against rivals. Towards the late 1990s, Intel experienced stiff competition from its

rival, Advanced Micro Devices Inc. (AMD), in the race to develop the 1Ghz microprocessor.

The significance of the outcome demonstrates the perception of the market leader and

technological capability, which is one of the critical elements of Intel's marketing mix strategy.

Intel's strong commitment to achieving technological superiority is evidenced by its high

investment in its Research and Development (R&D) capability (Figure 2).

Figure 2.

Intel R&D Investment Trend (USD-Million)

Source: Intel Annual Report, 2001

METHODOLOGY

This comprehensive literature review contained a narrative synthesis. The purpose of

narrative synthesis is to summarise and explain a synthesis's results via academic writing. Four

steps comprise the qualitative research method: research design, data gathering, data analysis,

and report writing. Content analysis is a qualitative approach that employs verbal, visual or

written data to describe specific phenomena systematically and objectively, hence facilitating

the production of valid conclusions. It is also an adaptable data analysis method applicable to

systematic qualitative reviews. To find knowledge and theory, systematic qualitative reviewers

must adjust or adapt content analysis approaches to match highly organized and contextualized

material. Finally, qualitative content analysis was used in this investigation (Limna et al., 2022;

Jaipong et al., 2022;

Lim, 2022;

Jaipong et al., 2023;

Viphanphong et al., 2023; Sitthipon et al.,

2023

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In addition, secondary data was collected by obtaining information from internet

sources, including official papers, academic articles, and relevant websites, regarding Human

Resource Management, Change Management, Corporate Culture, Values, and Multi-National

Corporations. The secondary was reviewed between December 2020 and March 2023.

RESULTS

Identifying the Causes of Change: Intel's SWOT Analysis (1999-2001)

A sustainable competitive advantage is establishing operational efficiency or

differentiation against competitors (Porter, 1996). While Porter's Five Forces Model suggests

the five underlying forces that determine the firm's competitiveness, the shift of these forces

also implies the causes of change or the Strategic Inflection Points (SIP), where the business

dynamics begin to shift (Grove, 1996). This study reviewed Intel's SWOT position during the

1999 – 2001 Dotcom Bubble period (Figure 3) and subsequently formed the basis for the

analysis of Intel's Crisis Responses and Change Management Strategy in addressing the

opportunities and challenges and the role that its cultural core values influence on the strategy.

Figure 3.

Intel's State of the Union 1999-2001: The SWOT Analysis.

Source: Author generated, 2023.

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First Mover Advantage: The Technological Challenges

First Mover Advantage (FMA) is achieved when a firm successfully gains above-

average profit by being the pioneer in offering a product or service to the market. One of the

sources where FMA can be derived from Technological Leadership (Lieberman &

Montgomery, 1988; Suarez & Lanzolla, 2005). Since Intel's incorporation, the company has

built its successes over the technological leadership strategy, from the development of Dynamic

RAM to its microprocessor segments. The FMA strategy resulted in its market share

domination and above-average profit margin, at least most of the time.

While FMA offers an appealing proposition for firms to make the first move, a similar

notion also comes with its risk and uncertainty. In Intel's case, the FMA strategy does have a

fair share of setbacks throughout its history, the exit of the memory chip segment in the 1980s

and the Pentium Floating Point Unit (FPU) Bug in the 1990s (Grove, 1996). In general, Intel

derived its technological leadership from its in-house R&D: 1) Product Design Capability – the

ability to develop next-generation chips with better performance and efficiency, and 2)

Manufacturing Technology Development Capability – the ability to develop process

technologies that are commercially viable and operational Efficiency (Grove, 1996). Exhibit

4.0 highlighted the key technological challenges experienced by Intel and the implication of

these challenges to the business during the 1999-2001 period.

Organizational Conflicts between Functional Roles: R&D, Production and Finance

Inter-functional conflict has been a common issue in managing change. Several studies

have shown controversial views on the impact of inter-functional conflicts, both constructive

(Xie, Michael & Stringfellow, 1999; Deetz & Stevenson, 1986) and destructive (Schwenk &

Cosier, 1993) effects towards organizational performance. The existence of organizational

conflicts sometimes is necessary for check and balance and to promote critical thinking if the

conflict can be managed by a collaboration and integration approach (Xie, Michael &

Stringfellow,

1999).

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Table 1.

Intel Technological Challenges and Impact

Source: Author generated, 2023.

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Without exception, the Intel technological issues during the period inevitably experienced

the inter-functional conflicts phenomenon. Abiodun (2014) suggested that conflict can occur

because of structural or personal factors. Intel's causes of disputes can be attributed to the

following:

The difference in the functional objectives and KPIs

The individual or functional performances are measured against the respective scope of

work. In intel's case, the R&D group mainly focuses on developing products and processes

based on a set of key deliverables; the production group is measured on its fulfilment of

production targets, and finance emphasizes meeting the target costs and within its budget.

Conflicts arise when additional resources are needed to meet their KPIs due to unforeseen

development while finance tries to keep everything within the budget.

Lack of understanding of the dispute backgrounds and needs.

Lack of understanding can be due to the absence of knowledge and skillsets over the

subject matters, such as finance personnel limited technical competencies to comprehend

the engineering data or material development, vice versa, the lack of understanding by

technical/operational personnel on the importance of financial modelling and budgeting.

Information is vital for strategically formulating the necessary strategies (Porter & Millar,

1985). The lack of information and communication to address the subject matters

timeliness of Information flow also contribute to the conflicts.

The defensive behaviour towards accountability

Finding the issue's root causes is the fundamental task in formulating corrective actions.

However, the process is commonly perceived as an attempt to designate fault and put the

blame. The fear and defensive perception create the tendency to be less cooperative and led

to defensive behaviour towards sharing information.

The Comfort Zone Syndrome (CZS): Diminishing Critical Thinking & Innovative

Problem-solving.

Many studies have been established on the relationship between the comfort zone with

change management over the decades (Tuckman, 1965; Tuckman & Jensen, 1977; Bardwick,

1995; Carnall, 2007). White (2009) defines the comfort zone as the behavioural state within

which a person operates in an anxiety-neutral condition, using a limited set of behaviours to

deliver a steady level of performance, usually without a sense of risk. The comfort zone

syndrome is one of the manifestations of change resistance due to its early stage of "defensive"

behaviours (Tuckman, 1965; Carnall, 2007), which leads to organizational conflicts.

Critical thinking is widely researched in psychology, philosophy and organizational

behaviours. Its significance is evidenced throughout the history of human civilization in

military victories, technological breakthroughs and the modern-day's strategic management of

nations and corporations. Facione (2011) defines Critical Thinking as "a purposeful, self-

regulatory judgment which results in interpretation, analysis, evaluation, and inference, as well

as an explanation of the evidential, conceptual, methodological, or contextual considerations

upon which that judgment is based", which shared the similarities in the concept of strategic

thinking.

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Innovative or creative problem-solving is a critical element in developing a competitive

advantage. Porter (1985) suggests that competitive advantage can be attained by performing

tasks differently or more efficiently than competitors. Kirton (1980) described the two

distinctive styles in problem-solving, the innovator's approach, which favour radical and new

solutions, and adaptors that improve the existing ways on a gradual basis. Sidhu & Deletraz

(2015) suggest the correlation between the comfort zone effect on entrepreneurship success and

innovation culture that seminal entrepreneurship and innovation skills can be learned.

Regarding White's Comfort Zone Development Phases Framework (1995), Table 2

shows the correlation between Intel's management strategy and the inter-functional

stakeholder's comfort zone development phases.

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Table 2.

Correlation of Intel's management strategy and the inter-functional stakeholders' Comfort Zone Development Phases.

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Table 3.

Kotter's 8 Steps Change Model

Source:

Author generated, 2023 Based on the Change Management Model of Kotler (2014).

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Evaluation of Intel's Crisis Response and Change Management Strategy with reference to

Kotter Change Model and Rahim Conflict Management Approach:

The contingency or situational approach suggests there is no one universal approach to

managing change and conflict (Follett, 1940; Blake & Mouton, 1964; Rahim and Bonoma,

1979). Rahim and Bonoma (1979) identified two basic dimensions that distinguish the five

approaches to handling conflict: concern for self and respect for others. The approach's

preference depends on the motivation orientation towards the two dimensions.

While the approach to managing conflicts and change may be different and closely

associated with the consideration of leadership styles (Rahim, 2002), considerable literature has

been published over the years on the criteria of successful conflict and change management

(Coch & French 1948; Lewin 1951; Lawrence, 1969; Shephard, 1967; DuBrin, 1974; Kotter &

Schlesinger, 1979). Kotter's research (2007) finds little success in corporate change efforts. The

study highlighted the eight common errors that constitute the failed change strategy, which was

later incorporated as the eight steps change model (2014) (Exhibit 6.0).

Figure 4.

Rahim Two-Dimensional Conflict Management Style.

Source:

Rahim and Bonoma, 1979.

The role organization culture and values: its inter-relationship with effective problem-

solving.

Searching for the "right" organizational culture and values has been the holy grail of the

management world, both academics and practitioners. Corporate culture is defined as a pattern

of underlying assumptions – invented, discovered or developed by a given group as it learns to

cope with its problems of external adaptation and internal integration – that has worked well

enough to be considered valid and, therefore, to be taught to new members as the correct way

to perceive, think and feel concerning those problems (Schien, 2010).

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There are a large number of published studies on organizational culture. These studies

suggest corporate culture and values influence the organization in multiple aspects such as

leadership (Lok & Crawford, 2004; Baumgartner, 2009), performance management (Mosley,

2007; Den Hartog & Verburg, 2004; Parry & Proctor-Thomson, 2002; Gullett & Sixl-Daniell,

2008), change management (Atkinson, 1990; Lim, 1995) and innovation management (Ahmed,

1998; Martins & Terblanche, 2003).

Table 4 shows Intel's task force change strategies about the conflict management

approach (Rahim & Bonoma, 1979) at each stage of Kotter's change framework and the

underlying Intel corporate cultural core values in encouraging substantive or task-related

conflict and discourage affective or emotional conflict (Rahim, 2002)

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Table 4.

Intel Conflict Handling Approach and Reinforcement of Intel Cultural Core Values Observed during the 8-Stage Change Process

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Source: Author generated, 2023.

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DISCUSSION:

The observations from this study suggest Intel's inter-functional conflicts were root-

caused by weaknesses in inter-functional communications that led to the issues as discussed in

the early section of the study: 1) Difference in functional objectives and KPIs, 2) Lack of

understanding of the dispute backgrounds and needs, and 3) the defensive behaviours towards

accountability. The perceived CZS within Intel's organization implies its impact towards change

resistance which leads to diminishing critical thinking and innovative problem-solving,

ultimately affecting organizational performance. While inter-functional conflicts have adverse

effects on overall organizational performance; however, the ability to manage these conflicts

constructively can lead to long-run organizational performance enhancement, as observed in this

study.

The evaluation of Intel's Conflict and Change Management Strategy using the Kotter-Rahim-

White multi-dimensional models suggests two improvement areas to Intel's SHRM framework:

The Need to Enhance Organizational Structure to Facilitate Effective Inter-Functional

Communication

Inter-Functional Communication (I.C.) is commonly undermined due to the presumption that

it is part of the organizational norm. Unfortunately, the reality is far from the truth, with

recent studies suggesting the importance of I.C. in many aspects of business management,

from successful strategic planning and execution (Meade, 2010), to successful organizational

change (Kotter, 2014). While the academic definitions of I.C. remain widely debatable, for

this study, I.C. is defined as "the exchange of information and ideas within an organization"

(Bovée & Thill, 2000).

The organizational communication orientations can be identified as vertical and horizontal

communication. Vertical communication is generally related to the chain of command,

reporting and decision makings based on a hierarchical structure. Horizontal communication

facilitates the coordination of resources and enables the performance of tasks to achieve the

overall goals and objectives. This study suggests the efficiency of information flow of a better

integrated horizontal organizational structure will tend to be more robust and dynamically

agile to problem-solving, especially in the high-specialization, geographical and "silo"

hierarchical organizational structures, which are common in large multi-national companies.

An organizational framework incorporates a secondary cross- functionals organizational

communication structure, which aims to enhance the efficiency of information flow and

effective decision-making based on commonly aligned objectives.

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Figure 5.

Proposed Organizational Structure Enhancement

Source:

Author generated, 2023

The Need to Enhance the Acculturation and Reinforcement of Corporate Culture Core

Values in the Human Resource Development (HRD) framework.

The human capital development strategy is gaining importance to attain strategic and tactical

advantage via technological or market penetration within the SHRM framework. While there

are many debatable arguments on the "right" human capital development strategy, one of the

mainstream works of literature is the cultures and values impact on organizational conflict and

change management.

Decades of studies showed various causes of conflicts derived from differences in

geographical locations, religious beliefs, mergers and acquisitions, competencies background,

leadership styles and many others. The consensus from these studies acknowledges the fact –

Differences create conflicts. With the increasing trend of globalization and cross-border

trades, it evidenced the increased interest in the studies of the SHRM's role in developing the

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organizational cultural values framework for effective acculturation of corporate values,

which leads to the enhancement of overall performance both at the employee and

organizational level in the long-run.

While observations from this study suggest the existence of a robust corporate culture

core values framework has a positive impact in resolving inter-functional conflicts, driving

effective change strategy, and ultimately improving organizational performance. Hence, this

study recommends a holistic HRD strategy that is tangible rather than superficial in culturing

the core values.

Figure 6 summarised a further enhancement of the HRD framework with an

organizational learning initiative to fortify the stage 8 outcomes of Kotter's change model. A

showcase and case study workshop should be conducted as part of the organization's training

and development plan for induction and integration programs to equip the employees with

valuable learnings and expectations to deal with similar scenarios.

CONCLUSION:

George Bernard Shaw said: "The single biggest problem in communication is the illusion

that it has occurred". This notion demonstrates the risk of assuming organizational

communication is a natural evolution by its existence, which forms part of the reason for

communication breakdown in the information flow. Peter Drucker suggested, "the most

important thing in communication is hearing what isn't said". This view supports the findings,

which indicate the importance of observing the causes of resistance and allowing the

expression of ideas at the initial stages of the conflict and change management process.

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Figure 6.

A Proposed HRD Framework: Integration of Corporate Culture and Core Values

Source:

Author generated, 2023.

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The study also observed the processes of conflict management and organizational

change management processes are "mutually inclusive", as a constructive conflict at

the initial stage of change management will create the needed dynamics for identifying

the gaps and formulation of innovative solutions to address those gaps. A clear set of

ground rules for initiating the conflict confrontation requires openness, positivity,

understanding of "there are always solutions to problems", and mutual trust and

respect among participants. The study witnessed the contingency approach conflict

management throughout the change process has a positive impact in guiding towards

achieving the goals of the change process.

Corporate culture and values can be learned and unlearned. This study suggests

the importance of an HRD framework emphasizing organizational learning initiatives

to enhance corporate culture and values integration at employee induction and

development. The study argues that the existence and reinforcement of Strong

Corporate Culture Core Values are vital in driving effective change and conflict

management by diverting "emotional" conflict towards "Task-Related" conflict.

As Peter Drucker quoted, "learning is a lifelong process of keeping abreast of

change, and the most pressing task is to teach people how to learn", this study stresses

the importance of a holistic SHRM strategy in the organizational strategic

management framework and its significance in fostering the right corporate culture for

adapting to change towards organizational performance.

FUTURE CHALLENGES: The Need for Continuous Technological Edge and

Beyond

Change and continuity are the main driving force behind Intel's successful history.

The digitization era marked the rapid technological breakthroughs that reshaped the

business environment we know, from personal computers to artificial intelligence,

social media to the Internet of Things, cloud networks to Big Data, mobile

connectivity to 5G technologies and many others. These innovations were fully

realized in part due to Intel computer processing technologies which continue to push

the technologies to envelop.

These rapid changes in the technological landscape perhaps imply the frequency

of the Strategic Inflect points emerging, as described by the late Intel's Chairman Andy

Grove, has become more frequent than what Intel experienced in the past. The key to

survival and remaining relevant in the business competition, perhaps, now lies in the

ability to make the least mistakes in adapting to change faster.

In Intel's 2019 annual report, CEO Bob Swan stressed the potential of data had

increased Intel's addressable market to nearly $300 billion. The company's key focus

will be on innovating and investing across six pillars of technology that will continue

to drive Intel's product leadership: process and packaging, architectures, memory,

interconnects, security technologies, and software. At the same time, Intel Labs is

researching completely new approaches to computing—such as neuromorphic,

probabilistic, and quantum—that could unlock new opportunities.

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This directive suggests the potential of acquiring technological competencies or

market penetration via merger and acquisition strategies. Therefore, the challenges lay

in seamlessly integrating these foreign entities into the Intel culture. Intel management

recognized the significance and intensely focused on cultural evolution, as success will

determine Intel's performance over the next decade, as stipulated in the annual report.

Figure 7.

Intel Core Values Evolution: 1999 versus 2019.

Source: Intel Corporate Website.

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Table 6.

The Five Focus of Organisational Learning Concepts

Source: Wang & Ahmed (2003).

RECOMMENDATIONS:

While there is no "hard and fast" rule when it comes to conflict and change

management, this study supports the argument of a contingency approach in conflict

handling (Rahim, 2002) and managing the change process (White, 2009; Kotter,

2014).

Hence,

the

organizational

structure

that

supports

cross-functional

communication, seamless corporate culture, and values integration are the critical

success factors to facilitate an effective change process to achieve sustainable

organizational performance (Kotter, 2014).

Intel's evolution effort over its corporate culture and values recognizes these

critical success factors. While three of the original core values are retained, the

evolution saw the expansion of "Great Place to Work" to two new core values, namely

"Inclusion" and "One Intel", which reaffirmed the argument of this case study on the

importance of embracing a common culture and values.

The evolution effort also observed the integration of the two old values,

"Discipline" and "Result-Oriented", into "Truth and Transparency". The illustration of

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the new core value defines the importance of openness, innovative problem-solving

and "integrating" as defined in Rahim (2002) two-dimensional approach. In addition,

the value also stresses the importance of the communication process in delivering

results.

Hence, as discussed in the earlier section, the potential improvements suggested

the two improvement areas are mutually inclusive. The organization structure

alignment will facilitate a smoother cross-functional communication and decision-

making process towards the common goals and objectives and be supported by a

holistic HRD framework emphasizing initiative and focus on the acculturation of

culture and values, especially during the induction and integration stage.

IMPLEMENTATION:

Wang & Ahmed (2003) identify five focuses on organizational learning (Exhibit

12.0), which summarise a learning organization is founded on the learning process of

individuals in the organization. Applying learning at the corporate level was primarily

conditioned on individual learning, training, and development. The method of

individual learning significantly impacts the concept and practices of organizational

learning.

Based on these organizational learning concepts, this study suggests learning via

role models and a holistic HRD case studies workshop session. The suggestion begins

with the Human Resource Department researching case studies of successful scenarios

within the organization and analyzing the practices that conform to the highest

standards of Intel's core values. "Showcase" sharing from employees and senior

management experience with reference in specific scenarios within the organization to

provide more tangible examples of the expectations on core value conformance,

critical thinking and innovative problem-solving.

Another fact to note is that not all learning is positive learning. While

organizational learning attempts to teach the employees the right things to do, it is also

as important to highlight those pitfalls to discourage such practices. Therefore, the

need to ensure that organizational learning takes place not only builds competencies

but, at the same time, mitigates terrible habits.

An introduction of an Annual Recognition/Awards on the practice of Intel's core

values and the incorporation of measuring the conformance of employee performance

to Intel's core values in the annual employee appraisal. This practice will reinforce the

commitment and emphasis on the importance of Intel's core values at the

organizational level. The idea of the initiative is to make the corporate culture and

value "tangible" other than just superficial. These HRD initiatives should be

implementable within the existing organizational resources without significant

investments.

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DISCUSSION QUESTION:

The Covid-19 Pandemic has changed the way of life and the workplace. Social

Distancing and working from Home have placed today's managers in the position

of leading virtual teams without face-to-face human interaction. This new norm

increased the challenges of the task of managing a team by way of communication

effectiveness and efficiency. What are Intel's key challenges and possible measures

to address the issue?

Global economic growth and employment rates are under siege as the tension of

trade wars continues to impose tit-for-tat trade sanctions, according to the World

Trade Organization (WTO). The U.S. companies with a significant manufacturing

presence in China are looking at approaches to downsizing are on the rise. What are

the possible impacts of the trade wars on Intel's human resource management?

Technologies and Analytic Tools have reshaped the workforce with increased

automation adoption. In Human Resources (H.R.) function, technology brings

intelligence to H.R., transforming H.R. into an influential consultancy/coaching

role. However, the H.R. department is traditionally viewed as a supporting

administrative function rather than a strategic part. What are the key challenges the

H.R. department faces in increasing its role at the strategic management level?

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Intel Case Study

Prompt to Clone This Intel Case Study

Apply this example's core structure, strategic pacing, and structural hierarchy directly to your own topic.

What are you generating today?

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