Question

Management in Action Hewlett-Packard Is Counting on Organizational model, but it was a failure. Since February 2013, the Change to Boost Revenue Growth company has introduced new models, and they are being well received in the market. In a similar vein, H-Phas Meg Whitman became CEO of Hewlett-Packard Co. in created an overall vice president for design. This was 2011. Since the time H-P's revenue peaked in 2011 at done to create a strategic focus on product development. $127 billion, it has dropped every subsequent year. On H-P didn't stop at just a reorganization or a new tab- the positive side, the company had two consecutive let strategy, according to Forbes. A survey of the com- quarters of growth in 2014. H.P also is trying to right- pany's 20,000 salespeople revealed that employees size and reduce costs by planning to lay off 16,000 em- rated the internal sales tools a mere 7" on a scale of 1 ployees. H-Pearlier decided to lay off 34,000 people, to 100. For example, it took HP as much as three weeks resulting in a total reduction of 50,000 employees, to prepare a sales quote, when competitors could do it in Whitman described the job cuts as an opportunity to a matter of days. The company decided to upgrade its streamline the company further and make it more nim- sales process by using new tools from Salesforce.com ble. An expected $1 billion in cost savings in fiscal 2016 Whitman also look to the road to reassure custom- would allow H-P to invest in new technologies and crs that H-P was doing the right things. In the last skills to revive growth. Others like UBS analyst Ste- year, she conducted 305 one-on-one meetings with ven Milunovich, believe that these job cuts will erode customers or sales-channel partners, aides say, as well employee morale and may lead to increased turnover as another 42 roundtable chats with small groups "But fixing the world's biggest tech company-with around the world $120 billion in annual revenues and 330,000 employees- It did not take Whitman long to realize that the or is a herculean task. Bloated by more than 70 acquisi- ganizational culture also needed to be changed to fos- tions in the past 15 years, HP isn't just sprawling and ter consistency between the company's strategies and stalled out: it may actually be running in reverse. culture. According to Forbes, she eliminated the Whitman decided to change the organizational barbed wire fence and locked gates that separated structure to fuel growth. She created two clusters of parking lots for the executives and the general em- businesses. One focuses on corporate technology cus- ployee population. "We should enter the building the tomers. This group, which sells servers, storage, and same way everyone else does," she said. She also de networking, delivered 43% of the company's overall cided to work from a cubicle, like most employees, operating profits according to Forbes. Unfortunately, instead of from a larger, more private location. She the software and services that accompany all this hard- keeps a picture of her mother in her office. She also ware have not been as successful. H.P tried to build the role models when she travels by staying at more mod- software side of the business via acquisitions, which estly priced hotels. according to Forbes have not been very successful. The While H-P is positive about the changes taking magazine noted that when it comes to software acqui- place, some analysts are more skeptical. Bill Shope, an sitions, Autonomy (H.P's enterprise software com- analyst from Goldman Sachs, concluded that "serial pany] was merely the most high-profit misstep. All restructuring cannot solve H-P's secular challenges, told, over the past decade HP squandered nearly particularly following years of underinvestment." He $19 billion to buy myriad outfits that contribute only forecasts that H-P's revenue might fall to S107 billion 75 to overall profit. The services unit, which staffs in fiscal 2015 other companies tech projects, is barely at breakeven." H-P is currently looking for small to midsize acquisi FOR DISCUSSION tion candidates in cloud computing, security, and ana- lytics software. 1. Which of the supertrends are driving H-P to change? The second structural cluster sells printers, PCs. 2. Which of the forces for change are causing H-P to laptops, and mobile devices to people worldwide. This undertake major organizational change? Explain. segment of the business contributed 29% of operating 3. How might Meg Whitman have used Lewin's and profits in 2013. The problem here is that the lucrative Kotter's models of change to increase the probability printer business is shrinking. Technology is simply of achieving positive organizational change? Provide moving more toward ink free photo and document specific recommendations sharing, which benefits companies like Google, Face- book, and Dropbox. 4. To what extent is HP following the four steps for Strategically, H-P also is trying to get back into the fostering innovation? Explain. fast-growing tablet market. The company attempted to 5. What advice would you give Whitman based on gain entry in this market in 2011 with the TouchPad what you learned in this chapter? Be specific Organizational Change innovation CHAPTER 10 333

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Assignment Question(s):   

1. Which of the super trends are driving H-P to change?

2. Which of the forces for change are causing H-P to undertake major organizational change? Explain.

3. To what extent is H-P following the four steps for fostering innovation? Explain.

4. What advice would you give Whitman based on what you learned in this chapter? Be specific.

Answer 1

1.

The super examples that are changing the possible destiny of Hewlett-Packard Company fuse advertise division, contenders offer unequivocal recommendations that concise the association to introduce their things in the market, a couple of firms can't bolster congruity in view of inconvenient progression and the overall suppliers have changed their technique for movement alongside data.

The advantages of the association extended in 2011 anyway have lessened in the following years. In 2014, the advantages of the association extended in two consecutive periods.

The example of the contenders offering unequivocal proposals is another genuine edge of the association. For instance, Apple Company is a contender of Hewlett-Packard in the field of advancement and they have introduced unequivocal things. Hewlett-Packard Company had stood up to contention from their adversaries and this has prompted Whitman to improve their various leveled rehearses.

2.

Clarify. The outer powers of progress that are making HP make such a significant authoritative change are the mechanical headways and market changes. The innovative headway of never again printing archives and pictures yet being able to share reports electronically and through internet based life.

3.

The four stages for cultivating development are as per the following: perceive problem&opportunities&devise arrangements, gain partners by conveying your vision; beat worker resistance&reward them to accomplish progress; execute well by viably overseeing individuals, gatherings, hierarchical processes&systems in the quest for advancement.

Above all else, Whitman perceived the issues of HP and she attempted to make changes for the diminishing income. Second she made two groups to help developing HP organization. I didn't see a reasonable vision that Whitman passed on to her workers, particularly those in essential level. At that point I didn't see the particular estimates that Whitman took to strengthen her advancement results.

Possibly the progressions on hierarchical structure and authoritative culture is the fortification. The last advance Whit worked admirably. The progressions and developments are sure in HP organization in spite of the fact that there are some wary voices.

4.

By focusing on the executives of protection from change among workers instead of centering cutoff . a decent worker may expand benefit by indicating a superior exhibition on focusing on correspondence, cooperation, prizes, assistance and support, explict and implict and control help to beat the issues held in the organization.

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