HP at Cultural Crossroads Case study analysis: SHUBHADIP BISWAS Section-A Pgdm 10-12 IILMGSM  
HP at Cultural Crossroads <ul><li>Founded in 1938 in California as an electronic instruments company by Bill Hewlett and D...
HP at Cultural Crossroads <ul><li>Relevance of this case study: </li></ul><ul><li>Importance of Organizational Culture. </...
HP at Cultural Crossroads <ul><li>TRADITIONAL HP’S WAY: </li></ul><ul><li>Lifelong employment and employee satisfaction. <...
HP at Cultural Crossroads <ul><li>The challenges face by hp way: </li></ul><ul><li>Retirement of Hewlett followed by Packa...
HP at Cultural Crossroads <ul><li>CARLY FIORINA WAY: </li></ul><ul><li>Implemented several cost cutting mesures </li></ul>...
HP at Cultural Crossroads <ul><li>CARLY FIORINA WAY: </li></ul><ul><li>Positivity: </li></ul><ul><li>one great example of ...
HP at Cultural Crossroads <ul><li>Seven primary characteristics capturing Organizational Culture from the perspective of t...
HP at Cultural Crossroads <ul><li>The HP Way </li></ul><ul><li>Collaborative approach-team& people orientation </li></ul><...
HP at Cultural Crossroads CONCLUSION : There was indeed an urgency of change in traditional Hp’s way. Flexibility was requ...
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Hp at cultural cross road

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Hp at cultural cross road

  1. 1. HP at Cultural Crossroads Case study analysis: SHUBHADIP BISWAS Section-A Pgdm 10-12 IILMGSM  
  2. 2. HP at Cultural Crossroads <ul><li>Founded in 1938 in California as an electronic instruments company by Bill Hewlett and David Packard. </li></ul>The founders……. The product …. The logo then HP's culture had over the years translated into a consensus-style culture that was proving to be a sharp disadvantage in the fast-growing Internet business era. HP needed a new leader to cope with rapidly changing industry trends. new CEO Carly Fiorina tried to take some drastic steps to improve the financial performance of HP, which proved to be a major departure from HP's long cherished culture.
  3. 3. HP at Cultural Crossroads <ul><li>Relevance of this case study: </li></ul><ul><li>Importance of Organizational Culture. </li></ul><ul><li>Role of flexibility in organization culture. </li></ul><ul><li>Empowerment of employees vs leadership—execution of power. </li></ul><ul><li>Change in organization culture should be a gradual process. </li></ul><ul><li>Innovation vs tradition. </li></ul><ul><li>Organizational Culture: </li></ul><ul><li>a system of shared values or characteristics held by members of an organization that distinguishes from other organizations. </li></ul>
  4. 4. HP at Cultural Crossroads <ul><li>TRADITIONAL HP’S WAY: </li></ul><ul><li>Lifelong employment and employee satisfaction. </li></ul><ul><li>HP was built as a collaborative culture - not a star system. </li></ul><ul><li>Relaxed and open culture </li></ul><ul><li>Open-door policy </li></ul><ul><li>Management by walking around—treating employees as family members </li></ul><ul><li>Recognizing individual achievements & treating all with trust and respect </li></ul><ul><li>To achieve common objective through teamwork </li></ul><ul><li>To encourage flexibility and innovation </li></ul><ul><li>To conduct business with uncompromising integrity </li></ul><ul><li>To focus on a high level of achievement and contribution. </li></ul><ul><li>Management by objective[MBO] </li></ul><ul><li>Open communication </li></ul>
  5. 5. HP at Cultural Crossroads <ul><li>The challenges face by hp way: </li></ul><ul><li>Retirement of Hewlett followed by Packard </li></ul><ul><li>External competition intensified </li></ul><ul><li>Ready availability of management—drawback---interruption in work culture </li></ul><ul><li>Traditional culture had translated into a consensus style culture </li></ul><ul><li>Competitors-----progressive but hp----- stagnant </li></ul><ul><li>the world had moved beneath HP’s feet and there were very few options left. </li></ul><ul><li>HP departed from its lifelong employment tradition </li></ul><ul><li>Problem of bureaucracy </li></ul><ul><li>No sign of innovation </li></ul><ul><li>Urgency for a new leadership </li></ul>
  6. 6. HP at Cultural Crossroads <ul><li>CARLY FIORINA WAY: </li></ul><ul><li>Implemented several cost cutting mesures </li></ul><ul><li>Laid off---1700 employees </li></ul><ul><li>Focus on performance not on team </li></ul><ul><li>Another lay off of 6000 employees </li></ul><ul><li>Pay cut </li></ul><ul><li>Merger------------with compaq </li></ul><ul><li>No more lifelong employment and employee satisfaction </li></ul><ul><li>Compensation to improvements in customer aproval rating </li></ul><ul><li>360-degree feedback concept </li></ul><ul><li>Focus on R&D and breakthrough project to increase innovation </li></ul><ul><li>Bonus based on hp vs competitor’s performance </li></ul><ul><li>Tried to change organizational culture too much too fast. </li></ul>
  7. 7. HP at Cultural Crossroads <ul><li>CARLY FIORINA WAY: </li></ul><ul><li>Positivity: </li></ul><ul><li>one great example of true leadership driving a massive culture transformation. </li></ul><ul><li>Fiorina understood that if HP was to survive in the new internet era, its culture had to be changed. </li></ul><ul><li>The new HP way would need people to work together, move faster, and be nimble. </li></ul><ul><li>. It required HP to master the commoditized technology business (which is what the systems business had become) instead of sticking to its old innovation driven engineering business. </li></ul><ul><li>Focusing on innovation </li></ul><ul><li>Negativity:-----negative impact on company’s performance: </li></ul><ul><li>No team work </li></ul><ul><li>No empowerment of employee </li></ul><ul><li>Star approach </li></ul><ul><li>Degrading moral value of organization </li></ul><ul><li>Dissatisfaction within employees </li></ul><ul><li>Too much competence culture </li></ul><ul><li>Destroying company’s cherished culture </li></ul><ul><li>Hire & fire policy- Fearful & uncertain working environment </li></ul>
  8. 8. HP at Cultural Crossroads <ul><li>Seven primary characteristics capturing Organizational Culture from the perspective of this case: </li></ul><ul><li>Innovation & Risk taking---carly’s way </li></ul><ul><li>Attention to detail--- hp’s way </li></ul><ul><li>Outcome orientation---hp’s way and carly’s way </li></ul><ul><li>People orientation---hp’s way </li></ul><ul><li>Team orientation---hp’s way </li></ul><ul><li>Aggressiveness---carly’s way </li></ul><ul><li>Stability---hp’s way </li></ul>
  9. 9. HP at Cultural Crossroads <ul><li>The HP Way </li></ul><ul><li>Collaborative approach-team& people orientation </li></ul><ul><li>Performance, People, Values ….all are important equally </li></ul><ul><li>Egalitarian culture </li></ul><ul><li>Lifelong employment </li></ul><ul><li>The Carly Way </li></ul><ul><li>Star approach </li></ul><ul><li>Performance first…everything else later </li></ul><ul><li>Innovation & risk taking </li></ul><ul><li>No empowerment of employees—degrading morale </li></ul><ul><li>Hire & fire policy </li></ul><ul><li>Too much fast and aggressive way. </li></ul>
  10. 10. HP at Cultural Crossroads CONCLUSION : There was indeed an urgency of change in traditional Hp’s way. Flexibility was required. There was need of a leader who can guide. But………. Change is always a gradual process . I t is clear that if Carly had not moved as decisively and as quickly as she did then, scenario could be a brighter one for hp. Value of employees is one of the most important factor in organizational culture--- empowerment is required---- no person like to be managed-----they like inclusion which was present in hp’s way not in carly’s way. Carly stepped down in 2005. Hp continues its journey without Carly……………

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