Organization Management & Behavioral Theory

A CASE STUDY ON THE HP WAY

Presented by group no.3

Ayan Banerjee Bhavna Pandey Putul Banerjee Ronal Mukherjee 11 13 67 64

Rudrani Chatterjee 66 Subhadeep Panda 65

INTRODUCTION
Hewlett-Packard Company (NYSE: HPQ), commonly referred to as HP, is an American multinational information technology corporation headquartered in Palo Alto, California, USA. The company was founded in a one-car garage in Palo Alto by Bill Hewlett and Dave Packard. Now it is one of the world's largest information technology companies, operating in nearly every country.

HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise, and industry standard servers, related storage devices, networking products, software and a diverse range of printers, and other imaging products. HP markets its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP also has strong services and consulting business around its products and partner products.

The HP Way - an example of corporate culture for a whole industry

From the beginning the two founders have developed a management style which had never occurred in a large company before. They coined a new type of corporate culture which was to be called "the HP way." HP always renounced the "hire and fire" mentality, which meant to employ many workers for a single big order and to dismiss them afterwards. Instead, the company offered its employees "almost perfect job security.") Even in 1974, when the U.S. economy was in a profound crisis and many people were unemployed, HP avoided layoffs by a four-day workweek, which was a unique measure in corporate America. The two founders trusted in the "individual's own motivation to work") and treated their employees as family members; hence the custom to call each other by the first name - even the two chiefs were only known as Bill and Dave. The HP workers were participated in the company with stock options and were even paid additional premiums when HP was successful - today known as profit sharing. These measures served to identify the employees with their work and to encourage them. Moreover, the HP way included extensive employment benefits such as scholarships for the employee's children. At the end of the 1950s Bill and Dave decided to write down the company's objectives, which were to serve as guidelines for "all decisionmaking by HP people,") since the company had grown ever larger. With some changes, those objectives are still valid t oday. They cover as follows: "Profit, Customers, Fields of Interest, Growth, Our People,
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Management, and Citizenship.") And these objectives are to be achieved through teamwork. HP's strategies nowadays comprise mainly the "Management by Objectives", "Management by Wandering around" meaning informal communication within the company, and "Total Quality Control" which aims at producing highly qualified products.) The HP way is seen as model for corporate culture in many countries. The roots of many subsequent companies are located in HP, e.g. Steve Wozniak, who worked at HP and later co-founded Apple. This has led to the establishment of a new corporate culture in Silicon Valley and many firms have tried to imitate the HP way and ad opted measures such as stock options, innovative work rules, teamwork, and profit sharing.

The HP Way
We have trust and respect for individuals. We approach each situation with the belief that people want to do a good job and will do so, given the proper tools and support. We attract highly capable, diverse, innovative people and recognize their efforts and contributions to the company. HP people contribute enthusiastically and share in the success that they make possible. We focus on a high level of achievement and contribution. Our customers expect HP products and services to be of the highest quality and to provide lasting value. To achieve this, all HP people, especially managers, must be leaders who generate enthusiasm and respond with extra effort to meet customer needs. Techniques and management practices which are effective today may be outdated in the future. For us to remain at the forefront in all our activities, people should always be looking for new and better ways to do their work. We conduct our business with uncompromising integrity. We expect HP people to be open and honest in their dealings to earn the trust and loyalty of others. People at every level are expected to adhere to the highest standards of business ethics and must understand that anything less is unacceptable. As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an integral part of the organization, a deeply ingrained tradition that is passed from one generation of employees to another.
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We achieve our common objectives through teamwork. We recognize that it is only through effective cooperation within and among organizations that we can achieve our goals. Our commitment is to work as a worldwide team to fulfill the expectations of our customers, shareholders and others who depend upon us. The benefits and obligations of doing business are shared among all HP people. We encourage flexibility and innovation. We create an inclusive work environment which supports the diversity of our people and stimulates innovation. We strive for overall objectives which are clearly stated and agreed upon, and allow people flexibility in working toward goals in ways that they help determine are best for the organization. HP people should personally accept responsibility and be encouraged to upgrade their skills and capabilities through ongoing training and development. This is especially important in a technical business where the rate of progress is rapid and where people are expected to adapt to change.

Now organizations can address challenges by implementing

proven information management (IM) strategies and by taking a longer-view approach to information life cycle management (ILM). In this paper, HP hopes to demonstrate how you can leverage basic common sense and industry best practices to meet those objectives. Costs are a key driver for more efficient information management, particularly in a downward or recovering economic cycle. A number of initiatives have continued the effort to evolve from a paperbased society to a more efficient and cost-effective electronic environment. Documenting information management costs Traditional documents cost about $30 each to create a file. An average document is copied, physically or electronically, 12 to 19 times, at a cost of $27 each time. As much as 90% of an enterprises total printing expenses may be invisible or uncontrolled. A typical four-drawer file cabinet holds 15,000 to 20,000 pages, costs $37,000 to fill, and $3,000 a year to maintain. Fully 85% of documents are never retrieved: 50% are duplicates and 60% are obsolete. From 10% to 15% of documents are misplaced or misfiled, and it costs from $180 to $375 to re-create a typical document.

Benefits of ILM
Organizations can derive a wide range of proven, measurable advantages by implementing a robust information life cycle management approach. A well-planned information management program can be used to achieve these things: Minimize the risk of noncompliance with regulations and statutes (including Sarbanes-Oxley, Basel II, FDA, privacy legislation, and industry-specific requirements) by 30% to 50%. Decrease storage, connectivity, and other infrastructure costs by 25% to 45%. Gain visibility into the true cost of managing imaging, printing, and information. Enhance productivity and user satisfaction, free up technical resources, and reduce help desk calls. Improve environmental sustainability through reduced energy consumption, storage, and paper use. Increase the value and usefulness of corporate intellectual capital. Leverage existing knowledge and functionality to improve product development and reduce time to market by 30% to 40%. Improve customer service by gathering and sharing key knowledge, optimizing processes, and reducing response or turnaround times by 25% to 40%. Drive greater end-user productivity by streamlining training requirements and by reducing information search times up to 50%. Drive greater IT efficiency with improved service levels, greater resilience, and a lower total cost of ownership. Accelerate business results by improving key workflows and process efficiencies.

CONCLUSION
HP recognizes the fire in employees & believe that extraordinary efforts deserve their rewards, thats the reason the HP have special rewards and recognition programs, including cash awards to recognize exceptional contributors.

Employees get to own part of the company they work with. HP has a special share ownership plans that enables the employees to buy HP shares at discounted prices. But more importantly they invent diverse technology without losing sight of the people they created for.

HP is a company that gives freedom to work. The work culture does not include huge pressure but just need sense of responsibilities.