Hewlett Packard is an electronics hardware company founded by Bill Hewlett and Dave Packard in 1938. It started off producing printers and computer hardware but has now spread out and is developing a large range of electrical goods and services. HP is now one of the largest technological companies and has the title of the world’s leading PC manufacture which is a long way from when it was founded in a one car garage. HP still states that its number one value is the customer satisfaction of one of their products or services which is the core value that the company started off with. This report will outline the key issues at HP under the five management disciplines and how relevant management theories relate to these issues.
Carly Fiorina’s style of leadership at HP would be described as slightly autocratic under Blake and Mouton’s Leadership grid theory as she wanted things done only her way (VMS, 2010, p.471). Fiorina had the vision of bring back HP to the grand company that it used to be in doing this she only had concern for the task at hand rather than concern for her employees. These two factors make up what is known as style counselling and on this method Fiorina would be seen as the authoritative management type. Under House’s path-goal theory Fiorina would be categorised as an achievement-oriented leader as she set high and challenging goals for the company (VMS, 2010, p.475). Due to these views many senior executives and employees left the company because of Fiorina’s radical leadership. Due to this strict and tough leadership style that Fiorina had when times changed and HP began stalling she lost the backing of the board causing her to lose her job. This is shown through Fielder’s theory where it is stated that a leader cannot change so you have to put the right person in the right job (VMS, 2010, p.472). Fiorina was unable to adapt her style of leadership to the new market which meant that HP had to put someone else who was better suited to it.
Human Resource Management
In HP’s profit-sharing system everyone got a fair share in the rewards. This meant that no matter what performance employees had they got a fair share of the rewards (VMS, 2010, p.343). This many that HP was keeping employees on by allowing them to have a part in the company's profits. This backed up HP's statement of job security within the company as employees would have stocks within the company. This type of system really only offered a lateral movement within the company meaning that even if employees were performing extremely well it would have been hard for them to move up the corporate ladder within HP. This would have caused employees to be less motivated as it would be causing them job dissatisfaction under the two-factor theory (VMS, 2010, p.384).
If HP had implemented the strict performance-based bonus system instead employee’s motivation to achieve would have increased. The performance base system is where individually employees get a merit pay system where they will receive cash benefits for their level of performance (VMS, 2010, p.341). Through this system employees would be aiming to achieve goals to gain promotion which is part of the acquired needs theory. This could have meant that HP employees worked a lot harder as they would get more out of it personally.
In the old HP way the corporate ownership, corporate values and staff recruitment was very similar to the way Maori business acted. This was because in the old HP way it was seen as a collective group and that everyone was able to have a say in the way the company was being run. It was seen as a family as they had job security and was able to talk to anyone within the company ladder. This reflects the way Maori business is conducted as it uses collectivism rather than individualism. This is where the group as a whole owns things such as assets that the business holds. The only major difference between the...
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