HP at Cultural Crossroads - Impact of Cultural Change - Organisational Behaviour
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The document analyzes HP's organizational culture, contrasting the 'HP Way' with the 'Carly Way' during a significant cultural transformation. It highlights key values such as management by objectives, open communication, job security, and the impact of policies on employee motivation and performance. The document also discusses the pros and cons of both approaches, including the shift towards a more competitive, innovative environment versus potential issues like low morale and dissatisfaction among employees.
HP at Cultural Crossroads - Impact of Cultural Change - Organisational Behaviour
- 1. HP at Cultural Crossroads ‘HP Way’ or ‘CarlyWay’ ? Group 5: Ketaki, Himanshu J, Himanshu K, Rashi, Prakhar, Saurab
- 2. THE HP WAY – ANALYSING HP CULTURE HP’s Organizational Values 1. Management by Objective Each stakeholders from every level needs to contribute to company’s goals by developing objectives 2. Open Door Policy Freedom to express concerns 3. Open Communication Promoting teamwork by giving right training and information 4. Management by Wandering Managers walking through the employees regularly, keeping in touch with employees via impromptu get together HP’s Corporate Objectives: 1. Profit Profit by means of increasing perceived good value by customers; always reinvested profits back into the company; no debts taken for the company directly 2. Customers Mutual respect, effective response to customer needs. 3. Field of Interest Businesses which help continue HP’s tradition of self financing 4. Growth Growth for shareholder value and achieve business objectives 5. People Job Security, Job satisfaction ,sharing of success with employees 6. Citizenship Importance of being a good corporate citizen in each country of operation Collaborative Approach oriented towards Team Work with importance to people and values
- 3. Employees, if perfectly, motivated work towards creating breakthrough innovation Employees, if not motivated well, aim at bringing in products with minor revisions into the market more frequently to acquire the incentive. Pro’s Con’s - Prevents complacency, if the company is leading in the sector and has no major competitor. - Frequent bonuses keeps the employees motivated to work better. - Much less chances of registering a huge profit as compared to the competitors when company is not performing well - Will lead to cut down on employee bonuses - Lowered Morale of employees Pro’s Con’s THE HP POLICIES – PRO’S & CON’S TECHNOLOGY & INNOVATION COMPENSATION POLICY Incentives for employees linked to number of innovations. Bonuses given out when the company beats its own numbers of revenue
- 4. Sales Compensation Structure based on performance Feedback based Pay - 360° Feedback concept Revitalizing HP Labs – Focus on Patents Cost Prudent Functioning Competitor Performance based Bonus Laid of 1,700 + 3,000 + 6000 Employees (Jan, Apr, Jul) Voluntary Pay Cuts or Forced Vacations Structured Manager – Employee Ratio HP – Compaq Merger THE CARLY WAY Positivity: - True leadership driving a massive culture transformation. -Necessary for Survival – Industry Standards as benchmark - The new HP way would need people to work together, move faster, and be nimble. - Required HP to master the commoditized technology business instead of sticking to its old innovation driven engineering business. - Focusing on Innovation Negativity - No Team Work - No Empowerment of employee - Degrading moral value of organization - Dissatisfaction within employees - Too much competence culture - Destroying company’s cherished culture - Hire & Fire policy-Fearful & uncertain working environment
- 5. Carly Way & Its Effects - Finding ‘Way’ Criticism from Analysts Employee Grievanc es Resistance from Stakeholders Falling Profits Share Price Stagnant Revenues
- 6. •More flexibility and understanding to bring about a gradual change.Gradual Change •Taking inputs from experienced managers and making them a part of decision makingCoalition •Understand the core culture and not mistake its understanding by what seems apparent.Core Culture •Understanding the employees , the work culture and the organizational value system.Value System •Creating and Communicating new VisionVision •Consolidation of results of small changes before new changesStep by Step •Performance & Feedback based Pay systems created more stir.Compensation •Could have made efforts to ensure employee satisfaction .Employee Satisfaction •Subtle Cost Cutting MeasureCost Cutting Inclusive Change WHAT COULD HAVE BEEN DONE DIFFERENTLY?