Case Study Analysis Hewlett Packard

The case study analysis titled, A Deer Caught in the Headlights at HP the Situation"

Introduction

Hewlett-Packard Company (HP) is suffering underperformance in the computer and printer market, Hewlett-Packards Board members decided to employed Carleton (Carly) Fiorina from Lucent Technologies to help them with process changes to Hewlett-Packard organization.

The board member of Hewlett-Packard wanted to bring the fresh air and efficiency idea along with Fiorina to the organization. According to Fiorinas previous experience at Lucent Technologies, after one months observation, she defined the organizations problems were low productivity, high cost and inefficiency on R&D activities. Hence, she decided that she would implement her successful change process to make change from organizational level as well as the strategic level at Hewlett-Packard. Fiorina decide to centralize the decision making. And made change of the functional department. Shown as the Graphic-1 below.

Graphic-1

Fiorina states that she would be making a plan with a frontend and backend department, which means that the backend of the firm would in charge of manufacturing and distribution of print devices and computers. Although the frontend only focused on marketing and sales. Fiorina specified that the company would reduce the variety of products. She also emphasized the improve of performance should be very clear.

Six years passed, the board required Carleton Fiorina to resign, and she was out from the position at Hewlett-Packard. Nonetheless Fiorina had the ideas that successful operated for her at previous firm, that does not mean that the framework will work under any circumstances. It can consequence an inappropriate result for the firm and resistance of change by the staffs.

Background

The Hewlett Packard Company (HP) is an International Company. The headquarter was set in Palo Alto California. HP is a firm that manufacturing a variety of devices and software to corporate consumers in business and individual users. Hewlett Packard was established by William Redington Hewlett and Dave Packard, in a houses garage in Palo Alto in 1939, The Company established its reputation as a manufacturer of innovated products back to 40s. Hewlett-Packard is one of the first companies at Stanford Industry Park. By the 1990s, Hewlett-Packard's business grew steadily and reached a peak. Their main business was the four business of electronic instruments, medical equipment, computers and printers. HP was producing from electronic devices such as oscilloscopes and signal generators to costly medical devices such as nuclear magnetic resonance (MR) machines, HP has excellent representation in quality and technology. In the field of computers, Hewlett-Packard mainly produces minicomputers and PCs. In the area of printers, HP Laser printers and inkjet printers almost monopolize the market. In the nineties of the last century, HP was the most famous company in Silicon Valley and the first choice for many outstanding graduate students. HPs first corporate client was Walt Disney, which bought eight audio oscillators to use in the making of its full-length animated film Fantasia in1940 (Hall, 2015).

Key Problems

Previously, HP has been designed the structure including back end ( design, manufacturing, distribution for printers, and computers), and front end (marketing and sales operations, consumers, corporate customers). During the 6 years execution, there are many problems in HPs management. Firstly, the board of director never paid attention to statistical performance evaluation in organization structure, so that the effectiveness of the organization performance can not be estimated objectively and timely, later the execution would face poor quality. Secondly, the engagement in awareness of diagnosis is not enough, then the whole companies employees would be reluctant to change the current operation mode, even though it has already been harmful to all the companies. Especially for some senior employees, the enthusiasm towards organization structural revolution would be low. Thirdly, the psychological safety for investigating on employees feedback can be lacked, then the employees would hide real opinions, and the revolution would not really get close to their demands. Fourthly, the original plan for organizational adaptation has been targeted as the market threats, after 6 years, the results come out ineffective as it has been planed, thus, the direct responsibility should be owed to the organizational structures problems, or management mode problems, that is the sales, costs, employees have not been organized reasonably.

Alternatives

There are some alternatives, which should be related to the basic aspects inside organization. These should be explained according to the organizational theories.

Firstly, the organization structure must be concrete, and solid. It means, apart from any organizational form evolution, the basic structure should be clearly defined, so that the employees would have a sense of positioning. Then, the limited responsibilities would improve activeness, and employee engagement, as well as organizational structures stability (Baligh, 2010).

Secondly, the organizational culture should be constantly ascertained. Instead of losing the sense of mission, the transformational leadership should offer orientation, guidance towards the execution with clear and dedicate reinforcement on the meaning, mission, principles, rules, so that these could insert the daily strategic decision making and constant training (Hofstede, 2003).

Thirdly, since the market environment keeps on changing, if HP wants to win over the competitors, the technological change should be revolutionary, owing to the IT industrys specialty. Then, according to William Bridges transition model, when there are some variations in the organization structure, employees should be communicated with definite and practical instructions with restrictions, and written conventions from the beginning to the end. The neutral zone should be specially paid attention to, because the old patterns, and new approaches switch should be coordinated (Heath, 2011).

Fourthly, apart from total revolution, if HP wants to keep cost effective adjustment with employee engagement, Kotters model can be applied. On the basis of the original organization structure, the different layers of managers should be in charge of communication about the consolidation, urgency, coalition, and so on (Kotter, Cohen, 2012). Lewins model Unfreeze, Change, and Refreeze work can also be applied (Lewin, 2012). Only then can the employees activeness be taken advantage of. On one hand, they can still be familiar with their previous work tasks, on the other hand, they can also be reminded of adding or changing new work tasks to improve the quality. In this process, the individuals organizational behavior should be respected, from their attitudes, perspectives, acknowledgement towards company, and working conditions, atmospheres, and so on.

Fifthly, the performance evaluation is essential. Because HP is complex in organization structure, the performance should endure supervision from different directions with statistical data analysis and periodical goal achievement. The performance evaluation should be recorded and shared in groups, so that the transparency would lead to self discipline in execution.

Questions:

1. What was the case about?
2. Why did HP replace their former CEO? Where did Fiorina come from?
3. What were the key changes Fiorina wanted to make at HP?
4. What was Fiorina approach to change?
5. Was the change accepted by her senior management team?
6. Suggest any possible solutions for HP.