Assignment 2
Integrating Culture and Diversity in Decision Making:
The CEO and Organizational Culture Profile
Hewlett-Package (HP)
Integrating Culture and Diversity in Decision Making: The CEO and Organizational Culture Profile
Hewlett-Package (HP)
HP is a multinational organization based in the United States; HP is a public company that deals with information technology products and services with the headquarters being based in Palo Alto, California. HP offers financing, computer software, computer hardware, Information Technology (IT) Services and consulting to target customers. HP was founded in 1939 as a one car garage by Dave Packard and William ‘Bill’ Redington Hewlett (House & Price, 2009). HP is the global leader in the production of personal computers among other products. HP is listed at the New York Security Exchange (NYSE). HP’s key people are Ralph Whitworth as the interim chairman and Meg Whitman as the Chief Executive Officer and president. Revenues as at 2012 were US$120.4 billions with an employee base of over three hundred persons. This paper reflects at the organizational culture of HP.
Organizational culture has been critical reflecting on the existence of HP, since an organizational culture contributes to the overall behaviors of the human beings working in the organization, who are part and parcel of the organization (Packard, 2006). Organizational culture is HP is influenced by the vision, values, working language, norms, symbols and systems; it has been noted that habits and beliefs has been critical in shaping the organizational culture of HP (House & Price, 2009). Organizational culture is passed over from existing employees to new employees through assumptions and behaviors in ways of thinking, perceiving and feeling. Organizational culture at HP has influenced the way human capital interact with stakeholders and clients, which has enabled building a competitive edge in the target market.
Organizational culture at HP focuses at risk taking, innovation, attention to details, orientation to outcomes, orientation to people, orientation to teams, aggressiveness and stability (Malone, 2007). Founders of HP established a management style which engaged a corporate culture, the model was effective in the large organization to an extent that it was later named the ‘the HP way’; which is a proof that an all inclusive organizational culture existed in the organization (Packard, 2006). The model was emulated in a number of large organizations in the United States and in the globe.
HP never supported the hire and fire mentality of engaging employees, HP offered job security to the human capital within the system. Reflecting in 1974 when the economy was facing hard times in the United States, HP managed to stand strong at the time of the crisis. HP never lay off its employees due to the supportive organizational culture. Founders of HP motivated employees and they went to an extent of assuming the employees as part of their family (House & Price, 2009). The big ‘family’ in HP was known by the concept of Bill and Dave family, which was a reflection of the organizational culture within HP (Packard, 2006).
HP empowered its employees through benefits, premiums and stock options which are known as profit sharing today. Employees felt part of the organization; HP went to an extent of financing scholarships for the children of the employees. in 1950s, HP introduced a teamwork approach in the decision making processes; which addressed issues on day to day operations, profit, growth, fields of interest, customers, citizenship, its people and on general management. The system of management has since evolved to ‘management by objectives’, ‘Total Quality Control’ and ‘Management by Wandering Around’ (Packard, 2006). Organizational culture at HP is a role model mainly reflecting at the corporate culture. ‘The HP way’ supports the slogan ‘do not be evil’ (Malone, 2007). Merger of HP and Compaq meant that the dominant organization, which was HP, maintained ‘the HP way’ corporate culture (Packard, 2006).
The best leadership style at HP is transformative leadership style. Transformational leaders are characterized with inspiration, where the leaders have high expectations that each and every employee within the teams and the organization will perform their duties diligently with minimal supervision. Transformative leadership encourages high engagement and productivity among the teams. Transformative leaders in many ways empower employees in their places of work. The same concept was noted with Bill and Dave, the two entrepreneurs considered human capital within the organization as one of the most important resource.
It is useful buying in some concepts of transactional leadership style in transformational leadership style. Managers at organizations are reflected as the transactional leaders in making sure that routine work is done in the right way and in a reliable way. Transformational leadership in most cases focuses at the initiatives that have the capability of adding value and at the same time building a competitive edge for the organization. It is worth noting that different leadership styles are needed in different situations in decision making processes.
Assuming a decline in sales in the products and services offered by HP, a change in culture would be needed in addressing the shift in the target market. Decline in sales could be contributed by the changing needs and preferences of the target customers. The new organizational culture would focus at the uniqueness of the HP products and services and alignment in meeting the needs of the target market. This is critical in proving the reasons attributing to customers purchasing the products and services. It is worth focusing on the target market, researching on the market in reflection to demographics, publications and potential customers. Organizational culture must incorporate changes in the business environment in meeting the exact needs of the target market, which will improve the sales and build a competitive edge (House & Price, 2009).
References
House, C. & Price, R. (2009). The HP Phenomenon: Innovation and Business Transformation. Palo Alto, California: Stanford University Press.
Malone, M. S. (2007). Bill & Dave: How Hewlett and Packard Built the World’s Greatest Company. New York: Portfolio Hardcover.
Packard, D. (2006). The HP Way: How Bill Hewlett and I Built Our Company. New York: HarperBusiness.
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