Hewlett-Packard Under Carly Fiorina, and After Her
Carly Fiorina became first outsider CEO of Hewlett Packard in July 1999. Three years later in May 2002, under her management HP merged with Compaq Computer. While this merging period she had faced various problems such as goverment regulators in both US and Europe. Carly Fiorina got her bachelor at Stanford, received MBA at University of Maryland and MS at MIT. She had worked for AT&T and Lucent Technologies for 20 years.Fiorina is known for having “silver tongue and an iron will” which means being articulate and persuasive.worht Carly Fiorina selected from 300 candidates.Each member of search committee listed 20 qualities for potential CEO then boiled these down to four essential criteria; the ability to conceptualize and communicate sweeping strategies, the operations savvy to deliver on quarterly financial goals, the power to bring urgency to the organization, and the management skills to drive a nascent Internet vision throughout the company. The situation of HP was not bright when she started to her job. The main product of HP was printer which had dominated since the 1980s.The dearth of new products went along with the cumbersome bureaucracy and the many different product groups. Even though strong oppositions to the merger with Compaq at board of directors in HP, in 2001 the announced the merger officially and started meeting with Compaq executives. After merger some products of each company were affected, for instance the HP Jornade handheld was dropped in favor of the Compaq’s iPAQ. This merger also provided great opportunities for cost cutting through greater efficiencies such as 17,000 jobs were eliminated after the merger.
Q1) Human relations skills are management skills facilitating effective interaction with personnel. These skills include leadership, communication, decision making, negotiation, counseling, and conceptual skills. The HP committee did not put it into 4 essential criteria for potential CEO but most probably they put it in 20 qualities. Some of the human relation skills are; sensitivity to others, treating people fairly, listening intently, communicating warmth, establishing rapport, understanding human behavior, empathy, tactfulness, cooperative team member, avoiding stereotyping people, feeling comfortable with different kinds of people, fun person to work with, treating others as equals, dealing effectively with conflict, helping clarify misunderstandings, creating an environment of social interaction Q2) I agree with this statement for the most part, tradition of a company must be considered, but I think companies should use their times to move ahead and get ready for challenges of today’s business world. If company has very strong ties with their tradition, in that case it would be hard to seize new opportunities ahead. Industry and companies changing rapidly and tradition is remaining. On the other hand, tradition can be considered as a milestone for most companies at their growth period. Tradition indicates past achievements, failures and also experiences. But assuming that what worked in past will work again can be too pessimistic. Without adapting changes to company tradition will never be enough to keep advantage against the rivals. Companies and leaders may keep some major traditions in order to prevent values and norms, but should tend to look forward and be open-minded in terms of technological and innovative opportunities. Q3)
The principal cause of bureaucracy is that rules of work (which must be followed whether they make sense or not) are developed at a distance from reality. And, the primary reason for this distance is that work processes are interdepartmental. They flow through departmental boundaries with ease. Therefore, to find a person with enough authority to revise a process means moving up in the hierarchy several levels away from the work. The people who are closest to the work and have...
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