Hewlett-Packard Company: Personal Management and Organizational Behavior Research Paper
The firm, right now is understood popularly as HP or Hewlett-Packard Company (NYSE: HPQ), was based in 1939 by Bill Hewlett and Dave Packard, Stanford University classmates at Palo Alto, California (HP, 2007). Starting out with the manufacture of an audio oscillator in a storage, the corporate right now presents a wide range of technological products and services worldwide. One of the earliest clients of HP was the Walt Disney Studios which positioned an order for eight oscillators for the making of its film Fantasia. During the 1940s, the company obtained many orders from the united states authorities for electronic instruments due to World War II. This laid the foundation for the growth of HP. In the 1950s, as HP grew, Bill Hewlett and Dave Packard launched a model new administration fashion that soon turned a well-liked corporate tradition and was adopted by a quantity of different know-how companies (HP, 2007). The firm went public in 1957, and true to its policy of respecting staff, the corporate provided inventory grants to employees. Since the start of the twenty-first century, HP has turn into of the world’s largest IT firms and is a powerful pressure in the realms of printing, private computing, and IT infrastructure globally (HP, 2007).
The firm leads globally in the manufacture of printers, software program such as blade, x86, Windows®, Linux, UNIX, and high-end UNIX servers, whole disk and storage methods, and desktop and notebook computer systems. HP has reported income totaling $100.5 billion for the four fiscal quarters ended July 31, 2007 (HP, 2007). Speaking from a world context, the company serves multiple billion folks in more than a hundred and seventy international locations, has 156,000 employees, and ranks 14 in Fortune 500 ranking (GCR, 2006b). HP spends over $3.6 billion (U.S.) yearly for research purposes. According to its official web site, the company’s mission is to “invent technologies and services that drive business worth, create social benefit and enhance the lives of consumers — with a focus on affecting the greatest variety of people potential.” In fiscal 2006, HP income increased 6 % to $91.7 billion, and non-GAAP earnings per share elevated 46 p.c to $2.38. And, based on Mark Hurd, present CEO and President of HP, the company “achieved probably the most balanced revenue mix by enterprise group and region that HP has seen in years” (Hewlett-Packard, 2007).
Leadership at Hewlett-Packard
Initially, the company’s founders focussed on the quality of the merchandise and not on growth. But when the corporate became public in 1957, the founders deliberate to offer appreciable operating freedom to the managers of those enterprise items but to do so inside a set of economic and management pointers (HP, 2007). These tips grew to become encapsulated within a vision assertion generally known as the ‘Hewlett Packard Vision’: “Confidence in and respect for our individuals versus relying upon intensive guidelines, procedures and so on; which relies upon upon individuals to do their job proper (individual freedom) without constant directives” (‘The HP Way).
A good chief is one who is prepared to have a vision, set organizational targets, and encourage staff towards attaining those objectives (Luthans, 2005). It was via the visions, goals, and motivational methods of Bill and Dave that the corporate HP grew to become an enormous success. When Bill retired as CEO in 1778, he was adopted by John Young, who served until 1992. The firm reached several milestones of success beneath his leadership. Thus nice visionary leadership was an important issue within the success of HP.
Management at Hewlett-Packard
Bill Hewlett and Dave Packard introduced a administration method that came to be popularly known as “administration by strolling around.” This involved informal methods of administration through personal involvement, good listening abilities, and the recognition that “everybody in a company desires to do a good job”(HP, 2007). As managers, Bill and Dave introduced the idea of management by objective – their first set objectives and communicated overall objectives to their staff, and in addition gave them the freedom to choose their very own methods to attain the company’s targets (HP, 2007). Thus the employees determined what they thought is best for their very own areas of accountability. This made the management type at HP extra participative in nature.
HP additionally launched the open door policy. They had open cubicles and executive workplaces without doors in order to encourage employees to return ahead and focus on their issues with their managers (HP, 2007). The HP goals provided a framework for managerial decision-making on a day by day basis. Dave stated: “We thought that if we could get everyone to agree on what our objectives had been and to know what we were attempting to do, then we may turn them loose, and they would transfer in a typical direction” (Hewlett-Packard, 2007). This is, actually, the core of the management model referred to as MBO (management by objectives). This management model differed radically from the then in style and conventional top-down management fashion of many corporations.
Hewlett Packard is viewed by its employees as having an impressive organizational culture. The ‘Unwritten rules of the Game’ interviews conducted with middle managers highlighted the reality that the culture was seen as ‘supportive,’ very, very open, with a ‘staff ethic’ (Gratton et al., 1999). At HP, the ability to function as a team player somewhat than as a person is extremely valued and bolstered. The significance of selling the customer the ‘right product’ somewhat than promoting at any cost stresses the long-term nature of the culture (Gratton et al., 1999). Hewlett Packard seeks people who wish to turn out to be a half of the ‘family’ somewhat than those who want to reap high returns over a short period (Gratton et al., 1999). Though Hewlett Packard promotes the rhetoric of freedom and innovation, it isn’t right to assume that HP has a unfastened culture. Strict managerial management is achieved via output control. The rigorous application of enterprise planning and performance systems ensures that the target of employees’ behaviors is tightly prescribed and controlled. How employees achieve that concentrate on just isn’t overtly prescribed (Gratton et al., 1999).
Today, management concept shows that in order to make staff less careworn, they should be made to feel relaxed at their office. Bill and Dave introduced various measures to make workers feel relaxed: they provided catastrophic medical insurance, made it a rule to make use of first names to handle employees, and gave common worker events and picnics (HP, 2007).
HP has a framework for sturdy inner communication. This ensures that workers are nicely informed and also present suggestions to management. HP uses several channels to communicate with workers, “together with an inner internet portal and company news website, common e-newsletters, quarterly all worker webcasts, and regular communication classes with the CEO and other senior leaders” (GCR, 2006c). In 2006, the CEO alone held 15 communication sessions at locations all over the world (GCR, 2006c). The workers can get particulars of all main company events through the website. Surveys are extensively used to get suggestions from workers. Employees are encouraged to ask inquiries to HP enterprise groups and capabilities through the award-winning “Ask HP” service. In 2006, more than 112,000 employees (74% of the whole workforce) responded to HP’s annual international worker survey – the Voice of the Workforce (VoW) (GCR, 2006c). HP’s Chairman, CEO, and President, Mark Hurd, and HP’s Executive Council personally undergo the anonymously written feedback of the staff (GCR, 2006c).
Measurement of Performance
At a person degree, Hewlett Packard additionally makes use of a wide range of mechanisms to plan, monitor, and assess particular person efficiency: performance analysis, rating, and self-development plans. There is a continuing, casual, day-to-day appraisal of efficiency by line managers. In reality, amongst all organizations within the Leading Edge Consortium, Hewlett Packard scores highest for the variety of discussions performed by line managers with their employees on profession management, appraisal, and private growth (Gratton et al., 1999). HP rewards good performances and offers engaging bonuses and rewards to its best staff. This keeps them motivated. In 2006, the Total Rewards technique was introduced to further improve the performance-based culture at HP (HP, 2007).
The company sees itself as a multinational corporation and not as a worldwide corporation. It, therefore, seeks to advertise a tradition that enables totally different national cultures to thrive together with the HP Way. Diversity, generally, adds creativity to the workforce and likewise helps in creating a stimulating work surroundings. HP’s workforce has scaled new heights in the realm of range. The workforce at HP is unfold throughout numerous regions on the planet: the Americas; Europe, the Middle East, and Africa; and the Asia Pacific and Japan (HP, 2007). As many of the employment progress takes place outside the United States, there is a world diversity focus. Globally, HP focuses on increasing the representation of women in HP, and domestically, throughout the United States, HP focuses on increasing folks of shade. HP has a Diversity & Work/Life Manager named for every of the following regions: Asia-Pacific, Europe, Middle East, and Africa, and Latin America (HP, 2007). There is an HP Diversity Council formed with senior executive management from each HP business to develop, direct and champion variety initiatives worldwide. Ron Brown Award is given by HP for Diversity in Education, and the corporate has launched digital Villages to slim the digital divide (HP, 2007).
HP is an organization that has a global citizenship strategy covering a extensive range of issues.
This desk shows some of HP’s present and future targets in each of the three precedence areas.
|Goal for 2006||Progress||Future goals|
|Supply chain responsibility||Conduct new, and follow-up/verification audits at 90 sites||Conducted one hundred twenty five web site audits||Audit 95% of high-risk product materials, element, and manufacturing provider sites by the tip of 2007|
|Energy efficiency||Reduce HP’s on-site greenhouse gasoline emissions by 18% from 2005 levels||Through a number of process adjustments, we lowered web site emissions by 31%||Reduce the combined energy consumption of HP operations and products 20% beneath 2005 ranges by 20102|
|Product reuse and recycling||Recycle 1 billion kilos of electronic merchandise and supplies by the tip of 2007||To date, HP has recycled greater than 920 million kilos since 1987||Recycle 1 billion kilos of digital products and supplies by the end of 2007|
The latest focus has been on environmental points such as power efficiency and product reuse, and recycling. The global citizenship priorities for 2007 are provide chain duty, energy effectivity, and produce reuse and recycling. HP ensures that suppliers meet excessive environmental accountability standards and even has a Supplier Code of Conduct. HP also promotes the recycling of products by way of take-back and through laws. Mark Hurd cits that the corporate is on course to realize the long-term goal of recycling 1 billion kilos because the product recycling program started in 1987 (GCR, 2006a).
Hewlett-Packard was widely criticized for conducting illegal investigations to track down troublesome leaks brought on by warring board members. The company’s status got here beneath risk as the media brought into the limelight the various conflicts throughout the company. For a board to turn out to be a high-performance unit, it should be succesful of have a mechanism in place for resolving conflicts among the board members. A high-performance board is one that can comfortably face confrontation, dissent, and battle (Luthans, 2005). The board members must be aligned in four key areas: strategic and operational goals, delineation of roles and duties, guidelines and protocols for choice making, and battle management and interpersonal relations (Luthans, 2005). In the case of HP, the board members were not clear relating to the strategies and operational targets of the company; there was no transparency and no mechanism to resolve battle among the board members (Guttman, 2007). In her memoir, Tough Choices, Hewlett Packard CEO Carly Fiorina, who was ousted earlier than the outbreak of the scandal, reveals that board members have their own limitations and that the HP board was sometimes disruptive and “didn’t know what they didn’t know” (Guttman, 2007).
The Wall Street Journal reported that within weeks after Patricia Dunn became the new chairman of HP, she discovered herself “in open warfare” with Director Tom Perkins (Guttman, 2007). Dunn complained that Perkins was conducting high-level technique discussions that belonged in entrance of all directors, as properly as making choices on which she did not have a vote. This battle was primarily because of a lack of clear-cut assignment of obligations. The battle might need been prevented if there had been appointed committees to conduct due diligence and make either recommendations or choices on essential issues. A conflict can turn out to be harmful if not managed properly. Some of the mistakes made by HP on this regard are: the leaking of confidential information by HP administrators, recruiting of supporters, and accusing people who discover themselves absent.
Hewlett Packard has revolutionized the world of management by way of its introduction of the management-by-objectives mannequin and its give attention to the liberty and welfare of employees. These modifications ushered in by visionary leaders have made HP one of the profitable companies on the planet.
Hewlett-Packard (2007). HP Interactive Timeline.
HP (2007). Highlights of our range journey.
Global Citizenship Report (GCR) (2006a). Global citizenship at HP.
Global Citizenship Report (GCR) (2006b). Employees.
Global Citizenship Report (GCR) (2006c). Communications.
Guttman, M. H. (2007). Lessons from the Hewlett-Packard Debacle. USA Today. Vol. 135, Issue 2740. 2007. Page 60+
Gratton, L.; Hailey, H.V.; Stiles, P.; Truss, Catherine (1999). Strategic Human Resource Management: Corporate Rhetoric and Human Reality. Oxford University Press. Oxford. Publication Year: 1999.
Luthans, F. (2005). Organizational Behavior: Tenth Edition. McGraw-Hill. New York. 2005.