Analysis of Hewlett-Packard’s Institutionalizing Structural Change

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Organizational change is difficult and challenging. However, once the change has been made and it is successful, there is one last step that is needed, which is institutionalizing the change. According to Fernandez and Rainey (2006), this is where employees learn and establish new behaviors and leaders institutionalize them so that new patterns of behavior become the norm. This has also been referred to by Cummings and Worley (2009) as refreezing from Lewin’s three stage change model where refreezing is to make the new practice routine. Therefore, institutionalization is an important part of any change program to maintain longer term success. An example of an organization that has institutionalized structural change within their …show more content…
Therefore, the interventions that were created to encourage communication and team work among the different divisions over time became cumbersome and inhibited their ability to make decisions quickly. Furthermore, stability was another issue for Hewlett-Packard since the demand for new technology was very high. Therefore, institutionalization of change was adversely affected because change was the norm.
Intervention Characteristics In addition, to the three organizational characteristics there are five intervention characteristic that include goal specificity, programmability, level of change target, internal support, and sponsorship (Cummings & Worely, 2009). In regards to Hewlett-Packard, in 1990 a new intervention was developed to combat the delays caused by the last intervention. In addition to being more congruent with their “HP way” the new intervention also had goal specificity. There were two main goals with this intervention. First goal was to remove layers of management that would improve communication and increase responsiveness to the market. The second goal was to divide the business into two groups based on customer needs. One group would handle all the personal computers and the other group would handle all the corporate workstation computers. Having defined specific goals enabled staff to understand the new behaviors needed to implement
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