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- http://www.slideshare.net/sujithoommen/hewlet-packard Title- hewlet


packard, By- sujithoommen
http://www.analytics-magazine.org/july-august-2010/129-better-decision-making-how-hpdelivers-business-value-with-enterprise-wide-analytics-services
Analytics Page, Better Decision-Making
- http://www8.hp.com/hpnext/posts/hp-way-now#.VdfNQ31dLIU
The HP Way Now , By- Tracy Keogh
http://www.ukessays.com/essays/management/organizational-culture-and-organizationalbehaviour-management-essay.php

HP is a technology company that is established worldwide, offering products, technologies,


software, solutions and services to consumers, small and medium sized businesses and large
organizations, including customers in the government, health and education sectors. Operates in
more than 170 countries with 349,600 employees HP's organizational culture starts with HP's
world famous policy the "HP way" which gives importance to individualism as well as teamwork
which forms the basic assumptions.
It has a flat organizational structure and thats so, the spam is wide. It has a formal organizational
structure basically divided business areas. Its operations are organized into seven segments:
Services, Enterprise, Storage and Servers (ESS), HP Software, the Personal Systems Group
(PSG), the Imaging and Printing Group (IPG), HP Financial Services (HPFS), and Corporate
Investments. Services, ESS and HP Software are reported collectively as a broader HP Enterprise

Business. It is the form of structure that determines the hierarchy and the reporting structure and
other forms of management. This is referred to as an organizational chart.
HP Way ( Before)

Life-long employment and employee satisfaction


Collaborative1 & Relaxed culture
Open door policy & communication
Management by walking around treating employees as family members
Recognizing individual achievements , treating all with trust & respect
Encouraging flexibility & teamwork
Uncompromising on professional & personal integrity
Focus on high level of achievement & contribution

Hewlett-Packard
HP
Financial
Services
(HPFS)

Storage and
Servers
(ESS)

Sales &
Distribution

Past time ( before Fiorina work


1.

The

at HP)
organisational

Personal
Systems
Group

Imaging and
Printing
Group
(IPG)

Corporate
Investment
s

(PSG)

Present time ( Fiorina work at

HP)
structure 1. The organisational structure is

was tall structure.

become

flat

structure

because

Fiorina shaved the number of HP's


business unit from eighty three to
only a handful.
2. The organization structure of HP 2. The organisational structure of
was

decentralized

organization HP

changes

structure because notwithstanding organisation


the

efforts

decision.

made

by

the

top Fiorina
herself,

to

centralized

structure

made

every

strongly

because
decision
resisted

suggestions and reorganized the


1

3.

Have

unit into sixcentralized divisions.


for 3. Inhibit delegation because

more

opportunity

to

subordinates

delegation
some tasks.

in Fiorina

strongly

resisted

for

delegate to another people and


she has low confidence and trust

in the abilities of the subordinates.


4. The culture type of HP was 4. The culture type of HP changes
collaborative culture.

to

controlled

culture

because

power and authority are vested at


the top.
5. Organisational conflict managed 5. Organisational conflict manage
by

confrontation/

collaboration by forcing way because people in

way because the culture of HP was HP


collaborative and
minded.
6. The

network

are

forcing

to

follow

community decision of Fiorina either


structure

Internal network structure.

the
they

agree or disagree this decision.


is 6. The network structure changes
to

Vertical

or

Stable

network

structure because Fiorina pushed


through a merger with Compaq
company in 2002.
7. Empowerment structure and its 7. Traditional hierarchical structure
purpose

to facilitate and support and purpose securing compliance

operational

staff

in

serving with managerial directives.

customers.
8. The organisational culture of HP 8. The organisational culture of HP
was Role culture.

is

changes

because
influence

to

power
stem

Power
and
from

culture

decisional
central

sources and less decisions power


9.

HP

culture

of managers.
encouraged 9. Fiorina dismissal of bottom 5%

employees to improve individual of under performers and payment


performance

over

several

year on based on performance against

and bonuses were paid based on competitors.


the profit.
10. Shared personal goals are 10. Shared personal goals are
same because inconspicuous.

different

because

have

conspicuous between Fiorina and


board of directors, subordinates
about some decisions.
11. The culture of HP was pocket- 11. The culture of HP changing to
protector paradise.

make-or-break culture.

Fiorina Way (Work at HP)


Carly Fiorinas strategic and operational mandate from the onset was to breathe new life into HP,
and execute one of the most challenging business transformations of the decade.
The organisational structure is become flat structure because she began with a vigorous
overhaul of the 83 different units.
The network structure changes to Vertical or Stable network structure because Fiorina
pushed through a merger with Compaq Company in 2002.
The organisational structure changes centralizing only because all decision-making
through her office and reorganized the unit into six centralized divisions. And then,
Fiorina had lay off 6000 workers and replaced 30% of the top management. Further lay
off 11,600 employees.
As well as being involved in a new marketing campaign to re-launch the HP brand.
Fiorinas game plan was to restructure the company and revamp its traditional culture,
thereby presenting a consolidated image of HP to customers.
The culture type of HP changes to Controlled and Power culture because power and
authority are vested at the top, decisional influence stem from central sources and less
decisions power of managers.
Organisational conflict manage by forcing way because people in HP are forcing to
follow the decision of Fiorina either they agree or disagree this decision and dismissal of
bottom 5% of under-performers and payment of bonuses based on performance against
competitors.

Shared personal goals are different because have conspicuous between Fiorina and board
of directors, subordinates about some decisions.
11. The culture of HP changing to make-or-break culture.
Fiorina

This began with a reorganization of the business into two groups: front-end and back-end.
However, the implementation of the new structure was done prior to a revamp of the
companys information systems, resulting in ambiguities in the assigning of
responsibilities and a lack of cohesion between the users of both groups.
HPs culture encouraged employees to improve individual performance over several years and
bonuses were paid based on the companys profit. However, Fiorina chartered an alternative
agenda: As she jetted the world to visit customers, shareholders and world leaders, her abrupt
and autocratic approach to leadership won her few fans within HP, especially as she seldom
mixed with the employees.
Sales Compensation Structure based on performance -Focus on performance , not on team
Feedback based Pay - 360 Feedback concept -360 degree feedback concept
increase in innovation - Revitalizing HP Labs Focus on Patents -Focus on R & D
Cost Prudent Functioning --Implemented several cost cutting measures
Competitor Performance based Bonus -Bonus based on HP vs. Competitors performance
Laid of 1,700 + 3,000 + 6000 Employees (Jan, Apr, Jul) Laid off- 1700 employees -Further lay
off of 6000 employees
Voluntary Pay Cuts or Forced Vacations-Pay cut
Structured Manager Employee Ratio - No more life long employment
HP Compaq Merger -Merger with Compaq
-Tried to change organizational culture too much and too fast

3. Inhibit delegation because Fiorina strongly resisted for delegate to another people and
she has low confidence and trust in the abilities of the subordinates.
4. The culture type of HP changes to controlled culture because power and authority are
vested at the top.

5. Organisational conflict manage by forcing way because people in HP are forcing to


follow the decision of Fiorina either they agree or disagree this decision.
6. The network structure changes to Vertical or Stable network structure because Fiorina
pushed through a merger with Compaq company in 2002.
7. Traditional hierarchical structure and purpose securing compliance with managerial
directives.
8. The organisational culture of HP is changes to Power culture because power and
decisional influence stem from central sources and less decisions power of managers.
9. Fiorina dismissal of bottom 5% of under performers and payment on based on
performance against competitors.
10. Shared personal goals are different because have conspicuous between Fiorina and
board of directors, subordinates about some decisions.

Hewlett-Packard

Sales &
Distribution

Storage and
Servers
(ESS)

HP
Financial
Services
(HPFS)

Imaging and
Printing
Group
(IPG)

Personal
Systems
Group
(PSG)

Corporate
Investment
s

Figure 1; Organizational Structure of HP

The HP Way
In 1956, Bill Hewlett, Dave Packard, and a handful of other HP executives gathered at the
Mission Inn in Sonoma, California, to create a set of values and principles to guide their
company. The six objectives that this small group subsequently created not only helped shape a
new kind of company, but ultimately became the foundation for what came to be known as the
HP way.

These six objectives, which later became seven, are:


1. Recognize that profit is the best measure of a companys contribution to society and the
ultimate source of corporate strength;
2. Continually improve the value of the products and services offered to customers;
3. Seek new opportunities for growth but focus efforts on fields in which the company can make
a contribution;
4. Provide employment opportunities that include the chance to share in the companys success;
5. Maintain an organizational environment that fosters individual motivation, initiative and
creativity;
6. Demonstrate good citizenship by making contributions to the community;
7. Emphasize growth as a requirement for survival.

For Fiorina way - hpatculturalcrossroads-130928081231-phpapp01.pptx


hp-compaq-case-110326234415-phpapp01.pdf

Line and Staff Structure - Though line structure is suitable for most organizations,

especially small ones, it is not effective for larger companies. This is where the line and staff
organizational structure comes into play. Line and structure combines the line structure where
information and approvals come from top to bottom, with staff departments for support and
specialization. Line and staff organizational structures are more centralized. Managers of line
and staff have authority over their subordinates, but staff managers have no authority over line
managers and their subordinates. The decision-making process becomes slower in this type of
organizational structure because of the layers and guidelines that are typical to it.

Functional Structure - This kind of organizational structure classifies people according to

the function they perform in their professional life or according to the functions performed by
them in the organization. The organization chart for a functional organization consists of Vice

President, Sales department, Customer Service Department, Engineering or production


department, accounting department and Administrative department.
The Organization Chart of Tarmac
Tarmac has a typically hierarchical structure with seven levels:

As far as this paper does not concern the definition of organizational structure, dimensions of
structure are much more important issues. The usual approach to structural dimensions is to
assume that each dimension of structure can vary independently. Perhaps the principal
disadvantage is that we have many dimensions of structure to deal with rather than a simple
typology. Hall [18] studied bureaucracy and he showed that an organization can be very
bureaucratic in one characteristic and much less bureaucratic in another characteristic. Jackson
and Morgan [22] compared three studies of the fundamental dimensions of organization
structure; those done by Aston group [27], by Child [7], and by Reimann [28].
The comparison shows that the studied dimensions were very similar and they can be grouped in
four main dimensions:
1. Structuring of activities (specialization, standardization, formalization, vertical span
of control),
2. Concentration of authority (centralization, autonomy),
3. Line control of work flow,
4. Supportive component.
In this paper the following dimensions are taken into consideration:
specialization - the division of labor within the organization, the distribution of official duties
among a number of positions,
standardization - procedures that occur regularly, are legitimized by the organization, have rules
that cover circumstances, and apply invariably,
formalization - the extent to which rules, procedures, instructions, and communications are
written,
centralization - place where the authority to make legitimate decisions that affect the
organization is located.

Current HP organizational structure

When we compare and contrast the past and present of HPs structure and culture, we got current
HPs organizational structure. Now, I want to describe how organizational structure and culture
of HP changes. Organisational structure of HP changes from tall structure to flat
structure when Fiorina reach HP Company. According changes from tall
structure to flat structure, the span of control is wide. Therefore, difficult to
supervise lot of subordinates effectively. All businesses have to organise what they do.
A clear structure makes it easier to see which part of the business does what. There are many
ways to structure a business.
By Function:

Chief Executive

Board of Directors

HP Financial
Personal
Functional
arrange
according toImaging
whatandeach section
Storage
and the business
Sales & organization
Services
Systems
Printing
Servers (ESS)
(HPFS)
Group (IPG)
orDistribution
department does. This depends on the business
type, size and structure
used. Lets look
at a (PSG)
Group

functional structure: In HP, we have


PSG Personal Systems Group, Services, IPG Imaging & Printing Group, HP
Financial Services, ESSN Enterprise, Storage Servers, Storage &Networks and HP
Software
Pros and Cons of Functional Structures

Advantages
Specialisation each department focuses on
its own work
Accountability someone is responsible for
the section
Clarity know your and others roles

Disadvantage
Closed communication could lead to lack of
focus
Departments can become resistant to change
Coordination may take too long
Gap between top and bottom