Chapter 14 Case – “Hewitt-Packard Company”
Instructor: Professor Pamela McLaughlin
Course: Management of Concepts – BUS 302
Date: August 21, 2011
* Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious.
One of the more serious problems that I have found in this case is under management. When a company is under managed, workers struggle because their management is not sufficiently engaged to provide the direction and support they need. The management is not informed about worker’s needs and, therefore, is unable to help with resources and problem solving. Thus management cannot judge what expectations are ...view middle of the document...
* Describe how the company should attempt to correct each of the three most serious problems.
The company has already made the first step at correct their under management by getting rid of the former CEO, Carly Fiorina, and hiring new CEO, Mark Hurd. Hurd is already taking a step away from CEO and going down to the bottom floor to rebuild HP. You have to start from the bottom up to rebuild a company; just making statements as CEO does not get things done. Hurd chose to recast the strategy that Fiorina had in place, but to make it more concrete, Hurd offered specific visionary purposes. Again Hurd has also made the first step at fixing the matrix structure. Again the matrix structure divides employees under the same department into sub departments with project managers or sub-managers. This system allows for a smaller group to work on a project making it have better communication and team skills. Hurd divided up the sales division, so that each of the major HP product divisions has its own dedicated sales division. With the bonus system, Hurd has already simplified it. HP could also tie bonuses to schedules. To do this it’s essential that they map out an accurate schedule before a job begins, and update the schedule as changes occur. This bonus system could attach a financial reward to finishing the job on schedule. Also a bonus system should be desirable to employees and to keep them engaged to a project. If a bonus system is not desirable, then employees are more subject to leave the company to go somewhere where they are desirable and appreciated. HP has much rebuilding to do, beyond restructuring their management and bonus system. HP will have to be restored as communities, which means from the middle out, not the top down. Being an engaged leader means you must be reflective while staying in the never-ending world of managing.
* Recommend a leadership style or combination of initiating structure and consideration the CEO should adopt to address the problems of distrust and declining morale. Explain your answer.
I would recommend a combination of visionary leadership, coaching leadership and affiliative leadership styles. Visionary leadership style is most appropriate when an organization needs a new direction. Its goals are to move people toward a new set of shared dreams. Visionary leaders articulate where a group is going, but now how it will get there; setting people free to innovate, experiment and take calculated risks. Coaching leadership style is a one-on-one style focused on developing individuals, showing them how to improve their performance, and helping to connect...