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bus302 paper 2 - David Martin Hewlett-Packard Company Case...

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David Martin Hewlett-Packard Company Case Study Bus 302 8/20/2011 Sterling C. Jack, Ph, D.
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1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. One of the Hewlett-Packard’s most serious problems its lack of management. CEO Carly Fiorina didn’t provide enough direction. The strategic vision she was using to guide the company was unclear, and nobody in the company has any idea if it was being carried-out or not. Without a well-defined strategic vision for the company, employees had no motivation and no sense of organizational purpose. As a result it can lead to a number of symptoms such as poor image, slow growth and a decline in sales, which is a direct connection to lack of leadership and imprecise strategic vision. The second of the H-P’s most serious problems was its confusing matrix structure, which blurred accountability lines and slowed decision-making. A matrix structure focuses on integrated teams and involves reporting to multiple managers. It can be highly effective, but it can be confusing to work within and it can also create conflict between project bosses in different parts of the matrix. According to Williams (2011), some of the common problems are disagreements or misunderstandings about schedules,
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budgets, available resources, and the availability of employees with particular functional expertise. A matrix structure requires a high level of coordination to manage complexity involved with running large, ongoing projects at various levels of completion and it also requires much more management skill than the other forms of organizational structure. The third of the most serious problem was the H-P’s reward system because it was so complicated and no one understood how performance affected his or her bonuses. A reward system does not have to be complex; it should be clear and simple in order to get the best results. Leonard (1994) refers to Jerry McAdams notations, which state as follows: “an employer needs to keep performance measures simple and select only "what's important." A complicated and convoluted measurement system will lead to a complicated and convoluted reward system. 2. Describe how the company should attempt to correct each of the three most serious
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bus302 paper 2 - David Martin Hewlett-Packard Company Case...

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