When Mark Hurd became CEO of HP, he discovered that the company had some structural issues. One major problem was that there were 11 layers of management between him and the customers. This caused confusion for HP's top corporate clients, as they didn't know who to reach out to for assistance. Additionally, HP's head of corporate technology had to wait three months just to get approval to hire 100 sales specialists.
HP's sales representatives had little time to engage with customers because of administrative duties. Mark Hurd resolved this problem by terminating low-performing employees and removing three levels of sales management. What are your opinions on these changes? How do you predict customers, executives, and the sales force will react?
By eliminating one sales group and integrating its representatives into existing sales groups, the organization became more efficient. This change is likely t
...o be well-received by both company executives and the sales force as it enables faster decision-making and increased customer interaction. Consequently, customers are happier with their needs and concerns being effectively addressed. Therefore, it is worth examining whether HP would benefit from a mechanistic or organic structure, giving rise to this question.
The rapidly changing products and services offered by HP require an appropriate structure that resembles an organic structure. Being agile and proactive in its corporate strategy is crucial for HP to cope with the dynamic industry and intense competition. An organic structure would better support this type of strategy. Moreover, organizational structure significantly influences an organization's efficiency and effectiveness.
The effectiveness and adaptability of a company heavily rely on its organizational structure. Students are taught that reducing
management layers promotes innovation, and there is a widespread belief that to survive and succeed, a company must function as a learning organization that encourages innovation.
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