Hewlett-Packard Organizational Behavior
Hewlett Packard (HP) is an American multinational information technology corporation that was founded by Bill Hewlett and Dave Packard. HP operates in many countries around the world. They provide services to a wide variety of consumers. HP provides hardware and software to small and medium-sized businesses (SMBs), and large enterprises. Some of their products include a line of printers, software and cloud products, digital cameras, scanners, tablet and pocket computers, mobile phones, calculators, desktop and personal computers, notebooks, disk drives, and other storage devices. Throughout the years, HP has endured many mergers, acquisitions, buyouts, layoffs, and many other challenges. Also, a lack of strategy and innovation has caused a record of poor performance. These factors have had a major impact on HP and they’re beginning to lose their competitive advantage. Competitive advantages help companies differentiate themselves from their competitors, and this is what it takes to survive in a competitive environment. According to the company’s website, HP believes that sustainability is the key to helping them lead in key markets. In addition, HP has had a hard time retaining key employees and a high turnover within the top management team. Within a decade, HP has been led by several CEOs: Carly Fiorina, Mark Hurd, and Leo Apotheker. Meg Whitman, the current president and CEO at HP, is making an effort to create a new vision, promoting the revitalization in organizational performance, and encouraging employees to revert back to the ‘HP Way’. The HP Way reflects core values and the way performance is delivered. This concept consists of five principles: 1.) pursuing opportunities that are consistent with making a technical contribution; 2.) delivering superior performance; 3.) achieving the best results when you get the right people, trusting them, giving them freedom to find the best path to achieve objectives, and letting them share in the rewards their work makes possible; 4.) showing responsibility in contributing directly to the well-being of the communities in which its operates; 5.) displaying integrity (Collins, 2005). To address the organization’s issues, the recommendation would be to improve the board’s governance and trust amongst each other, restructure the organization, apply turnaround management, and regain the confidence of the shareholders. Hewlett-Packard Organizational Behavior Case Analysis
Although HP had a problem with innovation, leadership seemed to be the biggest issue. A mountain of issues began with Carly Fiorina, who was CEO at HP for almost six years. Fiorina’s personality and management style appeared to be ruthless, which helped her to achieve most of her objectives. She tore down independent business units and tried to make them more centralized (Burrows, 2005). She was not very successful as CEO and HP’s net income fell. According to the NY Times, “Hewlett-Packard said its net income fell 82 percent.” (Sorkin & Norris, 2001). Fiorina admitted to withholding HP's profits overseas to avoid paying taxes. During restructuring, she fired at least 18,000 employees. This was implemented because of the merger with Compaq and the weak economy. In fact, Fiorina stated that her biggest mistake was not firing more people more quickly. According to Fortune, Fiorina stated “I would have done them all faster. Every person that I've asked to leave, whether it's been clear publicly or not, I would have done faster." (Loomis, 2005). In addition to the firings, she defended the outsourcing of American jobs. Fiorina also wanted a merger with Compaq. This 24 billion dollar merger was done in an attempt to please shareholders and make HP more competitive but that did not happen. HP actually lost its market share and had trouble increasing their profit margins. During this merger, she had disagreements...
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