Deborah Y. Riley
Principles of Management – Fall Quarter
Professor Camilla Pugh
November 28, 2010
Question - #1 Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious.
One of the serious problems Hewlett-Packard faced was poor management. Carly Fiorina provided no concrete direction for the company and staff. The vision she implemented for the company digital, virtual, mobile and personal was very vague. Because of this no one really knew if it was really working for the company. With the vision being vague as a result of this the company lost revenue as well as employees.
The second serious problem was Hewlett-Packard confusing matrix structure. This blurred accountability lines and slowed decision making. Although this system does have advantages it can also create problems. One of the advantages is avoiding duplication of products. Another advantage is the availability of expertise and experience managers have access to. The disadvantages would be confusion and conflict. This structure also requires more management skills that Carly Fiorina lacked.
The third serious problem would be Hewlett-Packards reward system. They system that was in place wasn’t a very good one because it was very complicated. Employees were unaware of how their performance affected their bonuses. Employees should be aware of how they are able to get bonuses. The system should be a very clear and simple one that everyone is able to understand. By having this employees have a clear understanding on how they are being rewarded. This would cut down any conflict that could arise with a difficult system. Question - #2 Describe how the company should attempt to correct each of the three serious problems.
Hewlett-Packard took the first step to correct the management problem by firing Carly Fiorina and hiring Mark Hurd. The...