Hewelett Packard Case Wiac

Topics: Human resources, Human resource management, Management Pages: 5 (1550 words) Published: December 1, 2012
Human Resource management|
HP Case|
WAC Submission|
Submitted By:
Syed Ahad GardeziM. Awais IbrahimSyed Ammar HassanZaid Rahman ShamsiMBA II29-Nov-12| Lahore School of Economics

Submitted to: Prof. F.A. Fareedy

Company Background:
HP products were mainly electronic test and measuring instruments for engineers and scientist. Since then HP has added computers, calculators, medical electronic equipment and many more products. HP had 57000 employees worldwide and there were 20 manufacturing locations spread across the United States and 8 others around the world. Company’s objectives were first put in writing in 1957. Product Strategy:

The prevailing importance is on R&D to products that will compete by new technical contribution rather than through marketing or to the competitive devices. The product strategy reflects the external modification, technical contribution and basic design or purposes of the instruments were not altered. HP’s focus was on technical contribution and short run profits rather than improving long term growth. Organization:

The fundamental business unit at HP is the product division. The division is an incorporated self-sustaining organization with a great deal of independence. No product area is a division until it contains the six basic functions of R&D, manufacturing, marketing, quality assurance finance and personnel. At the end of 1980 there were 40 HP divisions. Coordination of divisions’ activities is the responsibility of 10 product groups. Financial Element:

The financial reporting system also provides special statements to view each division’s success in worldwide management of its product line. Each division is measured along two dimensions: 1) The financial results of the actual manufacturing of products in the divisions. 2) The total worldwide activity in the divisions’ product line’s whenever they are manufactures. Capital allocations are negotiated during the yearly budgeting process although divisions are expected to be self-sustaining over any time period. Human Resource Elements:

Hiring is done by normal interviewing processes. Testing is rare and then limited to specialized skills tests mostly pertinent to a position. The confrontation with the problem growth in 1973 also led to the expansion of training in the values and methods of HP. Executive seminars were increased and a new series of courses started for supervisors on managing at HP. The course is offered for the employees and it was taught by the local personnel staff and by at least by one lone manager. The routine tasks of employees are carried by a comprehensive system of management by objective (MBO). By introducing this system HP thought that each group or division to operate as a completely separate business. So that divisions have freedom of choice in their operations. The perception of the entire team about the success of HP is the communication at each level of division which is due to trust, team work and openness. HP used a variety of techniques to encourage an ongoing dialogues with its. One way it tries to do this is by an open door policy. Supervisor was there to promote the employees and helped them in to seek any advice. The career was given a specific name at HP that was “career maze”. “This phrase acknowledges the normalcy of cross functional, cross divisional, and lateral moves that often occur over the course of career at HP.” The performance appraisal and salary administration process also expose individual employees to many managers around the company. The performance components were predominant in the line with HP and moreover pay positions of the employees closely related to the performance. Problems

Loss of Human Capital
One issue that HP faces is the loss of human capital. The company is not very good in retaining its most important resource and is facing problems in this regard. The workforce of HP is so competent and all the employees are very proficient when...
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