Introduction
Hewlett-Packard has been recognized for its ground-breaking innovations and the organizational culture its founders established. The two entrepreneurs, Bill Hewlett and Dave Packard, actively encouraged a high level of engagement from all employees. Workers were also given an exceptional amount of freedom, with scientists motivated to investigate and create concepts and workers in manufacturing plants given enough time to complete their tasks. However, the company faced challenges due to rapid technological development, resulting in dilemmas in its human resources tactics.
Alignment Between Core Values and Human Resource Practices
The focus on values and principles has been an integral part of the HP company since its creation. The core element of the structure was the integration of human resource practices as a means of business improvement. The company emphasized collaboration on all levels of the workforce, constant professional development, and teamwork in addition to the open-door policy.
Each employee had an opportunity to share their ideas on the company policy, and people felt like a part of a united system that worked towards shared objectives. It is evident from HP’s statement that “We recognize that it is only through effective cooperation within and among the organizations that we can achieve our goals” (Rogers, 1995, p. 20). Such an approach was realized through a structuralized corporation system, where the founders initially revised the division.
Additionally, the attitude survey helped to maintain a stable level of satisfaction and address emerging issues promptly. Employees were aware of the career system and their opportunity to work in the company to achieve a higher level in the profession. However, it should be mentioned that the policy alignment was appropriate and effective for the time it was created and the industry of the 1960-1980 period.
Later, the rapid development of the business sphere provoked the emergence of new methods and requirements for companies like HP. The policies could not correspond to the pace of workflow and the experimental risks taken in the development department. Hence, the appearance of the Computer Systems Organization (CSO) and the Computer Products Organization (CPO) required new strategies to balance the working system, which could not be secured at the same level as at the beginning (Rogers, 1995).
It provoked new issues in human resources management, business objectives, and the division of company structure. To improve the alignment, the company should state its new focus on the market and decide on the necessary workforce system, arrangement, and practices that will be relevant in the modern world. The focus on productivity as teamwork should be preserved but with alterations to the realities, such as decentralized management.
Advantages and Disadvantages
The arranged HP way presented a reliable system for many employees, providing clear objectives and opportunities in the company. Comparing the points stated in the article, several pros and cons can be mentioned throughout the organization’s strategies. The main advantage is the possibility of improving knowledge and constantly working for promotion to a managerial position. According to HP, “the constant fertilization across functions helped coordinate the design, manufacturing, and distribution processes” (Rogers, 1995, p. 9). Hence, it helped to support qualified specialists across all positions in the company.
However, the disadvantage became evident with the company’s expansion, which led to several issues, including the need to lower the employee number, which contradicted the policy of no layoffs. Thus, HP instituted two new policies: downsizing and redeployment. These tactics led to the disappointment of employees, who relied on the stable system of the company.
The other advantages of HP were close communication and an open-door policy which provided more freedom to the employees. Nevertheless, this point was also challenged through the development of a rapid working pace, placing people into stricter rules and schedules. I would not like to work for the such company because it is determined to follow the competitive market, sacrificing the principles that established its reputation. The employees cannot fully trust the managers and leadership methods that change radically.
Changing Competitive Environment
The primary approach that HP must implement is the constantly evolving policies focusing on the core elements. Throughout its history, the company remained loyal to the values presented by the founders. However, the modernized business models and competitive markets forced HP to take risks in developing entirely new structures and shifting the focus from the employees-centered, which resulted in acquisitions, consolidation, and outsourcing, creating dislocation (Rogers, 1995). As a consequence, employees felt degraded in the solidarity of the company. The emphasis must be put on the workforce once again to improve the collaboration systems through a new leadership approach and additional steps of teamwork and communication that will replace the coffee and donut break while still granting more freedom for employees.
Conclusion
Therefore, HP way presented a successful strategy that helped to establish core principles for the company and maintain the trust level of its workers and customers. However, changing trends brought new obstacles for the business, which led to the degradation of the adopted methods of organization and lower employee performance. To remain relevant and follow the competitive field, HP should reinvent its core values and form a new HP way, following the current trends in the market and human resources.
Reference
Rogers, G., C. (1995). Human Resources at Hewlett-Packard (A). Harvard Business School.