Restructuring: Human Resource Management Essay

657 Words Feb 11th, 2014 3 Pages
Hewlett-Packard (HP) company is the world’s one of the leading computer manufacturer founded by Bill Hewlett and Dave Packard in 1939. Their first product was an audio oscillator named HP model 200A. In 1966, HP introduced the world’s first go-anywhere and do-anything computer called HP2116A and the world’s first desktop scientific calculator was also invented by HP in 1968. HP is one of the very successful computer manufacturer till date and it has been ranked 15th in the Fortune 500 magazine for the year 2013.
Restructuring comes in various forms; it may be due to excessive growth of the company or the massive decline in revenue of the company. Downsizing, Plant closures, mergers and acquisitions are some of the common reasons for
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HP is going through a mass downsizing and one of the reasons that many companies survive is because of the effective human resource system. Therefore, HR plays an important role during the restructuring of the company. They are involved from planning to implement the strategy effectively. The first major role that HR has is to implement an effective planning strategy. Obilade (2009) states that “Some of the HR activities that need to be involved in a properly implemented downsizing project/ program include planning and analysis, HR development, staffing, and compensation and benefit” (p. 20). Downsizing has many hidden costs such as severance and rehiring costs, pension and benefit payouts, loss of institutional memory, lack of staffers when the economy rebounds, and so on. Human resource staffs need to carefully analyze the costs that would be incurred during restructuring of the company. It is estimated that the total cost of restructuring for HP will be about USD 3.6 billion in severance and other charges.
Many workers have been laid off during past year and HP continues the process until the fiscal year 2014. Human resource is responsible to figure out who is going to stay as well as who is going to leave the company. It is…

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