Hewlett-Packard was an American multinational information technology corporation established in 1939. In November, 2015 it split into two new companies, HP Inc. and Hewlett Packard Enterprise. The former company’s employees took great pride in its corporate culture known as the HP Way. Comprising various values, objectives and practices, this widely admired management philosophy was based on integrity, teamwork, trust in individuals, innovation and contribution to both customers and the community. The management used to be part of the team, demonstrating its true care for the employees. People would be reassigned rather than fired, and those who could not be reassigned were offered to quit so that their records remained unharmed. Another common practice was “management by objectives” (MBO) which nurtured innovative thinking and entrepreneurial spirit by allowing employees to decide upon how their goals could be achieved best. The human factor was fundamental. However, things changed drastically after both Bill Hewlett and Dave Packard died in 1996 and 2001, respectively. HP found itself in an extremely competitive PC market, with its infrastructures falling behind the changing market trends and its revenue growth slowing down. Measures had to be taken. A new CEO, Carly Fiorina, was hired in 1999 from outside the company, thus having no knowledge of the HP Way. When the employees were asked to take voluntary cuts or additional vacation time to save the corporation’s money,
The intention of the following individual action plan is to recognize my leadership strengths and identify areas where I am able to further develop and strengthen my leadership qualities. The challenge within the action plan is to be cognizant of my strengths and weaknesses within the context of my professional and personal life allowing for me to constructively work towards strengthening my weaknesses. The deeper subset to the challenge will require that truth and sincerity of my experiences both professionally and personally be disclosed. The sense of urgency is present and current, I have personally
1. Describe the HP organizational Culture. What are some implications of this culture for developing new innovations? What is evidence of R&D’s dominance in HP?
Do you buy your insurance at Progressive because you like Flo? She may be the current face of Progressive as a company, but a strong cultural emphasis over the past few years has produced significant results for their customers, their shareholders and their employees. Coleman (2013) discusses building a differentiated culture and a lasting organization through the six factors of vision, values, practices, people, narrative (a historical review of the culture) and places (work environment). This paper will use these six factors to review the significant growth at Progressive in overall revenue, earnings, and employee satisfaction through a gradual evolution of the Progressive corporate culture. It will discuss particularly people and customer focused changes in culture, their impacts on the workforce, and their effectiveness. It will close with a discussion of how the lessons learned could be applied at other companies that have high turnover, a poor image, and/or a culture that detracts from their competitive landscape.
"After the Layoffs, What Next?" is a case study involving the aftermath of the downsizing of Delarks, a Midwestern clothing store chain. In this case Harry Denton, the architect of the downsizing, is able to orchestrate a considerable financial turnaround, but in so doing he alienates most of Delarks' remaining employees and most of Delarks' upper-management. Denton is an inexperienced CEO whose management experience rests solely in managing a national chain's flagship store in New York. Though Denton's restructuring of Delarks' business model will cause Wall Street to take notice and toast Denton's efforts, his inexperience may in the end eventuate in Delarks' collapse. Delark's downsizing was done in a rather abrupt way in which most laid-off employees were entirely unaware that they were about to lose their jobs. The problem Denton unknowingly faced was that the employee-pool at Delarks was very tight-knit where members felt as if they belonged to one big satisfied family, and the unexpected lay-offs caused great distress within the company.
McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a strong organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).
HP entered into an agreement with Compaq Computer Corporation in September 2001. In this definitive agreement, HP is going to purchase all of Compaq’s common shares outstanding, and pay a total price of 0.6325 shares of its common stock for each share of Compaq’s common stock.
He found out that the company was latent with financial and operational problems which threaten Home Depot’s future. The company was distinct in retail and extremely entrepreneurial based, along with customer focused business. Nardelli was not necessarily a tyrant, he just assumed he could treat Home Depot the same way he would any of his previous companies he worked for. With Nardelli being industrial based versus retail based, he concentrated on overhauling the processes but swept aside the elements that made Home Depot special in the process. Nardelli has a tough-minded approach to changes, which he probably learned at GE, but this set him on a collision course with the free spirited and close-knit culture fostered by his Home Depot predecessors. By the end of this case study, many of the original leadership for Home Depot were gone, whether they retired, were let go, or quit. Of course, Nardelli would still make himself accessible and was comfortable interacting with all levels of an organization, from CEO’s to factory workers. He was firm but still considered to be “a breath of fresh
Hewlett Packard also known as HP was founded by William Hewlett and Dave Packard in a small rented garage in Palo Alto, California which is now known as the original Silicon Valley. HP is one of the world’s largest Information Technology (IT) companies operating on a global level. HP specializes in computers, computer systems and software. Also, in the development and manufacture of hardware, software design, service delivery as well as data storage. Identified Strategies
The group of individuals that started Hewlett-Packard also known as “HP” were David Packard and William Redington Hewlett or as “Bill Hewlett”. The two of them meet “in the fall of 1930 when [they] enrolled as a freshman at Stanford” (Packard 18). David Packard was born in Pueblo, Colorado in 1912 to his father a lawyer and his mother a high school teacher. When Packard was a kid, he liked to do experiments such as creating explosives and making his own personal radio. Additionally, Packard was involved in football, basketball, and track that began from his junior year until he graduated as he says, “I enjoyed athletics and learned some lessons that were helpful in managing Hewlett-Packard” (Packard 11). When Packard attended Stanford, he kept
• HP culture was innovation-driven and had an incentive structure that rewarded innovation and not the commercialization of the investment.
As Thompson (2015) has discussed, the world is changing fast and organizations must be flexible in handling changes to be able to thrive well or they may experience dilemmas. In 1997, Apple Company, which almost reached bankruptcy ousted its that time CEO, Gil Amelio, where Steve Jobs replaced him and declared himself interim CEO. Apple that time is experiencing a disruptive change, a change that is radical and immediately happening, in other words unexpected. However, they were able to response to it quickly and prevented the company to hit the very bottom by bringing back Steve Jobs. Jobs had so much idea with him, which the company needed most at that time (Time, 2016).
The case deals with two major transformational organisational changes that take place within a span of 5 years in Marconi PLC. The first change process was under the leadership of Lord Simpson who took over this large diversified conglomerate in 1996 when the company was in a mature phase, already in decline. The company was under performing, had a rigid structure, lacked a clear vision and the employees had become change averse and complacent. To recharge the company Lord Simpson lead a change process with a clear vision with a growth oriented strategy, acquisition and a cultural change process for the employees. To motivate the employers to embrace the cultural change he introduced an attractive stock option plan.
In 1989, David Packard, the co-founder of Hewett-Packard put into writing the company’s organizational values which was to be used as the HP’s way and also use as a management tool and as a criteria for daily decision making. These company values have been reinforced by the company’s current CEO, Meg Whitman and they are: 1. Integrating critical opposites- to create an organization that sustain its competitive advantage regardless of the
Recognition of local cultural practices, gradual introduction of modern management principles, and clear communication of expectations results in high employee motivation, reduced attrition with the resultant organizational success. The HI management team needs to clearly communicate their expectations to the RDH staff while maintaining beneficial practices in local culture. In essence, forceful execution of modern management principles into a conservative organization is a detrimental practice that managers should avoid at any cost.
2. What do you think of the way the team set out to find a market for the Kittyhawk? What correct turns and what wrong turns did they make?