Hewitt-Packard Company - Case Study
Heloise V. Posey
Professor Marla Boulter
Principles of Management (Bus 302)
February 25, 2011
Hewitt-Packard commonly referred to as HP, is an American multinational information Technology Corporation headquartered in Palo Alto, California. The company was founded in a one-car garage in Palo Alto by Bill Hewlett and Dave Packard, and is now one of the world's largest information technology companies, operating in nearly every country. HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise servers, related storage devices, as well as a diverse range of printers and other imaging products. HP markets its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors.
1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious.
The first three problems I identified with Hewitt-Packard starts with the new CEO taking
charge of a struggling and dysfunctional corporation, the confusing "Matrix Structure" with its
blurred accountability and slowed decision making, the complex company reward system,
inability to keep their employees, the pervasive distrust and under management and complex
bonus systems tied to the employee's performance of lack of performance. I think these are the
most serious concerns that I see because you cannot run an organization or company effectively
and productively when you are struggling and your employees are not on the same visionary path
with you. Your accountability is giving your word and your honor and without accountability
what do you really have to offer your company and your employees and what reason would they
have to want to stay at a company whose credibility and accountability and honor is
questionable. To run a corporation you have to have the ability to make decisions favorable as
well as non favorable in a timely and effective manner sometimes regardless of the outcome but
always with the company's interest first and foremost. If your employees do not feel that you
and the company do not exhibit trust worthy qualities what can you really expect from them.
Why would I give my all to a company I cannot trust. Any company that is undermanaged is a
company that is mismanaged on the fast track to failure. If you and your employees do not know
what your company's bonus process is how can you in all honesty expect your employees to
know how their work ethics will impact on their performance awards and bonuses.
2. Describe how the company should attempt to correct each of the three most serious problems.
First any company that is dealing with the struggles and dysfunction should first identify
the source and nature that is causing the struggles and dysfunction. The company cannot be
managed and executed fully until the reasons for the struggle and dysfunction are handled. Once
you have identified the source implement a new strategy of change to help everyone understand
just what and how the new changes will impact the company. Have firm ideas of what and
where you want the company to be. Implement a formal plan if a change in overall company
strategy is needed. Once the company and its employees are comfortable on what needs to be
done to keep on track with its strategy, the organization needs to lay out a detailed plan. In this
plan, the company must be honest with itself and its employees on what it can do alone and what
expertise if any it must bring...
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