Table of Contents
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Contents Cover Page Table of Contents Executive Summary Issue Statement Information Analysis Findings
Problems & Challenges Recommendations
Executive Summary The case study, which we analyzed, was written to study the concept of Human Resources of Hewlett-Packard (HP), which was started in 1938 by two electrical engineers Bill Hewlett and Dave Packard. The company grew from a small electronic instruments company into one of the global leaders in information technology products and services by the end of the 20th century. The ‘HP Way’, a unique people-focused, consensus-driven work culture initiated by the founders had been the driving force behind its growth. HP feels it is very selective in considering job candidates. Great emphasis is given on adaptability and cultural fit. An important outgrowth of the open door communication policy is what HP calls “Management by Wandering Around” (MBWA). HP has tried to spread and institutionalize this concept by wide exposure in company publications, meetings and training sessions and by the example of upper management. HP feels it’s the best use of people which aids the coordination of the design, manufacturing, and distribution process. For getting the best out of its employees, HP has used a competitive performance appraisal and salary administration process. In this system, “wage curves” for various levels are set to be competitive with relevant labor markets. Individual pay is set by a combination of relevant experience and “sustained performance.” In future HP is going to face challenges regarding the adaptability and durability of its methods and its managers. The compounding pressure of growth, the requirements of newer market and intensified competition will only make it more complex. HP desires to grow its own management and supervision means. The problems of assimilating the number of new employees and new supervisors through effective leadership are compounded by the increasing geographical. Having gone through the human resource practices of HP and its future challenges which lie ahead due to expansion, we can say unleashing innovation over the long term, making deep-seated, meaningful change through leadership & cooperation — are the main keys to sustaining growth against the current of change.
The purpose of this written report is to obtain information from the case study regarding human resource practices in Hewlett-Packard and thereby understanding future challenges and recommending ways to cope up with impending hurdles.
Management Philosophy HP believes that the thinking of other people should not necessarily be accepted without the most careful consideration and without some actual testing in practice. It has developed a unique way of working with its people tagged as “HP Spirit” which is the key to their productivity, leadership, continuing progress and success. “THE HP WAY” The founders of Hewlett-Packard Company, Bill Hewlett and Dave Packard, developed a directing set of corporate objectives and a business style known as “The HP WAY”. This participative management style supports even demands, individual freedom and initiative while emphasizing commonness of purpose and teamwork. The company provides direction in the form of well-defined negotiated goals, shared data, and support of necessary resources and employees are expected to create their own ways of working. BACKGROUND In 1939 Bill Hewlett and Dave Packard set up the “Hewlett-Packard Company (HP)” in a one-car garage and produced a new type of audio oscillator. By 1980, sales were 3.01 billion US Dollar. For the first 20 years they...