HP HRM Case Study

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Introduction

Hewlett-Packard is one of those companies that have risen to the top. It is a well known company with a good name and great financial successes. But is this company able to remain at this top? Could HP avoid failure that followed success in many high-tech companies? In HP it was always believed that one of the fundamental strengths of the company lay in its people. Since the beginning, as it is defined in the brochure “The HP Way”, they tried to help HP people share in the company’s success which they make possible; to provide employment security based on performance; to ensure them a safe and pleasant work environment; to recognize their individual achievements; to value their diversity; and to help them gain a sense of satisfaction and accomplishment from their work. For employees it was very easy to identify with these values. Employees were working in family feeling environment where a bell would signal that coffee and donuts were served, and employees would gather around to talk with one another. Following Hewlett and Packard example, managers were spending time wandering through the organization to see what was going on, to build new channels with employees and to foster closeness with HP. It was understood that all hired employees were hired here forever. Created independent divisions allowed keeping this human touch. However, nowadays, after overcoming few difficulties and expanding on highly competitive, fast growing and uncertain market many employees feel that “HP Way is dead”. The importance of “HP Way” is that “HP Way” bestows the company with unique competitive advantage: highly competent employees who exhibit good teamwork and are committed to excellent performance. But competitive advantage is the only thing that can keep the company on the top. At the same time it does not work when employees are dissatisfied. Why are the employees dissatisfied?

What does an employee in HP need to be satisfied? Let’s list the main factors that employees of HP find as missing:
Family feeling
Good management
Employment security
Company structure

To understand this, let’s look closer and analyze these key problems. Family Feeling
One of the most important assets of the company is its employees. Their performance is what makes the company work and additionally make profit. And that s why they deserve to get the feeling they are taken care of and that the company is interested in their work and them as human beings as well. These ideas were incorporated into HP Way designed by Hewlett and Packard in the early years when the company was growing. However, the situation has changed. The fast changing market, high competitiveness and even largely spreading company brings in questions: How to make the environment more comfortable for employees? Is it possible to lower the stress levels by implementing design changes? Does better communication among employees make them feel more satisfied with the company? Management

In the first years of HP business, the company laid great emphasis on communication. HP used a variety of techniques to encourage an ongoing dialogue with its employees. One of them was Management by Wandering Around (MBWA). Managers at all levels were encouraged to spend part of each day wandering through the organization to see what was going on and also to communicate with other employees. But these days the managers have not so much time to do it this way and wander every day through the organization. They have no time to speak with their subordinates, to see how they are doing or to control them. But the manager’s job is exactly to control, to communicate with his employees, appraise their performance and manage them. Employment Security

HP’s goal had always been to provide “employment security” for its people. For a long time employees believed that as long as they continue to perform, a career in one job or one organization is guaranteed. They understood that employment...
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