1) Discuss the “HP Way” in terms of how HP manages people? What are the primary value What are the company personnel policies and internal structures which support these values? What other business policies support the HP Way? HP founders put value not only on making creative products but also on creating a friendly corporate culture. These beliefs became the foundation of the “HP Way. ” The “HP Way” is to earn the trust and loyalty of others; give respect for individuals and their responsibilities; and create an environment that both celebrates individualism and supports teamwork.
From the managers, it required sharing corporate objectives and helping the employees to understand their roles and responsibilities. The employees were taught to pursue corporate goals through open communication. The HP Way is an objective-oriented philosophy, in which each constituency can share the same values and work toward same goal. First and foremost, the HP way inspires entrepreneurship among the employees. They are encouraged to challenge themselves and innovate the company.
Second, the company shares the profit and employees get rewarded according to their performance. Third, communication and teamwork are the core values of the company. Fourth, the management trusts employees and fosters a cooperative organizational culture. In this respect, one of the most important characteristics of the HP Way is the trust in the organization. Even if trust is intangible asset for company, it would be the strongest competitiveness compared to other company and which can be differentiated from other company since trust is based on personal affection.
The HP Way is clearly different from typical western management style, which is based on rational behavior. The HP Way focuses on teamwork and on forging a highly developed collaborative workplace thorough effective cooperation within organizations. HP managed to avoid the traditional weaknesses of American companies that have allowed either individualism or consensus building to be taken to the extreme. HP excelled in managing dualities – specifically in creating a delicate balance between individual creativity and teamwork.
HP created a carrier network that begins with the recruitment of diverse people in terms of their skills and personality and then promotes horizontally as well as vertically throughout the company. Typically, HP employees move through four to six functional areas in the course of their carreers. This creates broad knowledge of the company and fosters teamwork. And when it is time to promote employees, managers look for the best people instead look who is next down the carreer line.
HP management believed that employees should not follow a pre-defined path to a particular post, nor be guaranteed a promotion without contributing to the company. HP creates an inclusive work environment that supports the diversity of people and stimulates innovation. HP allows people flexibility in working towards goals in ways that they help determine are best for the organization. In addition, by adopting MBO, HP can define each individual’s job objective and his or her major responsibility with more simplicity and precision.
Since employees were expected to suggest ways they can contribute to the unit’s goal, it makes each individual feel that they are part of the company and have more responsibility for their performance. Finally, HP’s self-financing policy was intended to support its human resource philosophy and policies, particularly employment security. Even if economic downturn is serious, HP adopts various ways of spending less on wages rather lay off employees. In doing so, the HP Way emphasizing integrity, respect for individuals, teamwork, innovation, and contribution to customers and the community