Case Study Analysis - AET / 560
Case Study Analysis
Terry C. Holbrook
AET / 560
October 24, 2016
Dr. Christine Nortz
Case Study Analysis
“A Deer Caught in the Headlights.” The case study analysis titled, “A Deer Caught in the Headlights” at HP the Situation" comes from the e-book," Implementing Organizational Change: Theory into Practice" Chapter 3.”
Introduction
“Hewlett-Packard Company (HP) is experiencing poor performance in the computer and printer business, Hewlett-Packard’s Board members hired Carleton Fiorina from Lucent to help with making changes to Hewlett-Packard production. Carleton Fiorina will reorganize the company in order to revitalize the sales force, trim costs, and energize employees” (Spector, B., 2013, p. 51, Para. 1). HP, one of the leading manufactures’ of electronic equipment such as: computers, printers, and imaging products for corporations and end users. All products that are manufactured by HP are available through various marketing outlets around the world via the internet, and retail chains. Fiorina’s arrival was like a breath of fresh air to stakeholders at HP. Fiorina’s focused idea was to, “Centralize the decision making, revitalize the sales and trim costs while energizing the company” (Spector, B., 2013, p. 51, Para. 2). Fiorina over the next few months made several appearances to which she introduced her bold new ideas and audacious comments on how things would be done, “Let me make something very clear,” Fiorina told executives. “You will make your numbers. There will be no excuses. And if you can’t make your numbers, I will find someone who will” (Spector, B., 2013, p. 51, Para. 2).
Fiorina’s organizational change was to create a program with a back door and a front door, emphasizing that backdoor of the HP would handle manufacturing and distribution of printers and computers. Whereas, the front end concentrates on marketing and sales.
After six years of “My way or the highway” attitude, stakeholders demanded Fiorina’s resignation. A large part of a change leader’s success is having the ability to create motivation whereas employees want to embrace. Change leaders need to create a culture of wanting and all-inclusiveness. Even though Fiorina had huge successes in the past for organizations previously worked at, that same culture or idealistic scenario will not work all the time, on everyone.
Background
The Hewlett-Packard Company (HP) is a Global Technology Corporation. The headquarters are located in Palo Alto, California. HP is a company that develops a variety of hardware and software to consumers in organizations as well as households all over the world. HP was founded by William Redington Hewlett and Dave Packard, in a one-car garage in Palo Alto in 1939, “The Company established its reputation as a maker of sophisticated instrumentation. HP’s first customer was Walt Disney Productions, which purchased eight audio oscillators to use in the making of its full-length animated film Fantasia in1940” (Hall, 2015, Para 11). HP today continues to specialize in the manufacturing of computers, printers, and imaging products. In 1999, when Fiorina came aboard as the new CEO, HP was plagued by poor performance. Fiorina, who was ranked by Fortune Magazine as the first woman to head up a top-20 organization, immediately laid off 30,000 U.S. employees. This was not a very popular move in the eyes of the public, but according to stakeholders, this organizational change saved over 80,000 other employees which probably saved the company.
Key Problems
When Fiorina burst on the scene, with guns blazing and a “My way or the highway” attitude, while saving 80,000 employees jobs and cutting 30,000 employees, created an atmosphere of caution and resistance to change. This atmosphere of caution lacked the engagement and the sharing of information that are essential within the company culture, and those are: learning, training, and commitment. Organizations are very different entities; one change plan will not work for everyone. Just because you had success at one organization with a change plan does not mean that the change agent is going to have that same success everywhere. In some cases, shoving a change idea down the throats of an organization can prove to be counter-intuitive to employees in such a way that could be taken as threatening could also cause internal issues, which included resistance from the employees. Change agents need to create an environment of trust and understanding and they can do that by having a meeting with all parties concerned, laying out their ideas and getting feedback to make them feel a part of the change. Initiating this type of conversation to all employees about the how and why changes need to be made usually has the effect of lowering resistance and helping to create levels of commitment.
Alternatives
The Hewitt-Packard company was being plagued by poor performance. First step is to determine what is causing poor performance within the company. How does she uphold the principles of the company that has been so carefully created and that has brought success to the company? Along with, which of the organizational design and organization practices need to change? How should they change?
Proposed Solutions
Poor performance could be caused by many things:
• Ineffective leadership: it is up to the leader to bring out the best in all their employees.
• Wrong people at the wrong place: some people work at a job because it is the family business.
• It is important that the right person is doing the right job.
• Inadequate work-systems and processes: set expectations; implant a reward system that helps to inspire the employees.
• Individual’s incapability’s: this could be a skill issue; the person just is not trained to do that certain job.
Implementing change and creating a harmonious process can be difficult for change agents. The texts outline several models of change and theories in which to implement change in such a way as to make the change and inspired change. Thompson (2015) states, “Change is substantial and happens without people transitioning, and the transition is psychological and is three phase process where people gradually accept the details of the new situation and the changes that come with it” (Thompson, 2015, Para.1). In remembering the psychological aspect the next step would be to communicate with the employees. It is important to make a communication plan, this will generate information on why the change is coming and keeping everyone informed of the change. In some cases one theory or model does not give that perfect fit, therefore several models may be used. Another model is Kotter’s model; it works well with traditional organizational structures, using a top-down model because not everyone in the company is involved in the change vision. When working with upper management and change leaders this model can be very effective in helping change leaders to organize the changes and get everyone moving in the same direction. The use of Kotter’s model, will also give clear steps that can give guidance to the employees.
• Understanding what the performance issues are.
• What caused the poor performance?
• What is required to make the changes?
• Make sure that each employee is properly trained and informed.
• Evaluate each employee and provide feedback to the employees.
• Provide the employees that show confusion additional guidance.
• Have a performance improvement plan ready.
In addition, Lewin’s model Unfreeze, Change, and Refreeze works well with Kotter’s model, when the assigned change leaders have a better understanding of the protocols needed Lewin’s model will give each leader a chance to implement the changes properly.
• Unfreezing- Old ways are not appropriate anymore and changes are needed
• Change- Select a promising and appropriate approach
• Refreezing- the new changes are put into action and becomes established.
Proposed Solutions
As the texts have shown, there are several models that can be utilized to create effective changes so that resistance is kept to a minimum, so that the change is successful. Lewin’s and Kotter’s models are efficient and are used in many organizations. In HP’s organizational changes, the use of Lewin’s and Kotter’s models is a good place to initiate the change. They will minimize the amount of resistance and supply a variety of stages and methods that will help bring together employees and administrative leaders. It is important for the change leader to know where to start, by introducing themselves to the employees and letting everyone know who they are and exactly what the agenda entails, will make the initial changes easier and less resistant. Starting the conversation with employees to find their concerns for HP, and what procedures are working and which ones are not. Allowing each employees know exactly what the will be changes to the organization and their contribution can offer to the success of HP would be esteemed. Solidifying comprehensible expectations for each employee will help with the change.
Recommendations
Offering workshops to help employees understand the new programs will help the success at HP. You will find that some employees will not have adequate training to perform the new changes, so ongoing workshops are needed for a smoother transition and assurance of goals being met. Steering away from Fiorina’s “My way or the highway” attitude, an awards system should be implemented to recognize employees efforts for change during these uncomfortable times. Incentive programs; employee awards, bonus pay, comp. days, etc., to ensure continued commitment and that objectives are met without resistance.
Hewitt-Packard, according to Forbe’s magazine, is one of the top 20 organizations and has a solid place in the market. In spite of the organizational changes to production there has been minimal unrest, Hewitt-Packard will continue to mount significant return from executing the organizational change strategy while they encounter development.
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References
Hall, M., (2015), Hewitt-Packard Company, Encyclopedia Britannica, retrieved from:
Spector, B. (2013), Implementing organizational change: Theory into practice (3rd ed.). Upper Saddle River, NJ: Prentice Hall. Chapter 3 page 51-52, Para. 1-3
Thompson, R. (2015), Bridges transition model, guiding people through change. Retrieved from:
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