Director
Analytical Report On Case Study titled “Human Resources at Hewlett-Packard By Richard Werssowelz & Michael Beer”
Table of Contents
Sl. 1 2 3 4 5 6 7 8
Contents Cover Page Table of Contents Executive Summary Issue Statement Information Analysis Findings
Page No
Remarks
Problems & Challenges Recommendations
Executive Summary The case study, which we analyzed, was written to study the concept of Human Resources of Hewlett-Packard (HP), which was started in 1938 by two electrical engineers Bill Hewlett and Dave Packard. The company grew from a small electronic instruments company into one of the global leaders in information technology products and services by the end of the 20th century. The ‘HP Way’, a unique people-focused, consensus-driven work culture initiated by the founders had been the driving force behind its growth. HP feels it is very selective in considering job candidates. Great emphasis is given on adaptability and cultural fit. An important outgrowth of the open door communication policy is what HP calls “Management by Wandering Around” (MBWA). HP has tried to spread and institutionalize this concept by wide exposure in company publications, meetings and training sessions and by the example of upper management. HP feels it’s the best use of people which aids the coordination of the design, manufacturing, and distribution process. For getting the best out of its employees, HP has used a competitive performance appraisal and salary administration process. In this system, “wage curves” for various levels are set to be competitive with relevant labor markets. Individual pay is set by a combination of relevant experience and “sustained performance.” In future HP is going to face challenges regarding the adaptability and durability of its methods and its managers. The compounding pressure of growth, the requirements of newer market and intensified competition will only
Table of Contents
Sl. 1 2 3 4 5 6 7 8
Contents Cover Page Table of Contents Executive Summary Issue Statement Information Analysis Findings
Page No
Remarks
Problems & Challenges Recommendations
Executive Summary The case study, which we analyzed, was written to study the concept of Human Resources of Hewlett-Packard (HP), which was started in 1938 by two electrical engineers Bill Hewlett and Dave Packard. The company grew from a small electronic instruments company into one of the global leaders in information technology products and services by the end of the 20th century. The ‘HP Way’, a unique people-focused, consensus-driven work culture initiated by the founders had been the driving force behind its growth. HP feels it is very selective in considering job candidates. Great emphasis is given on adaptability and cultural fit. An important outgrowth of the open door communication policy is what HP calls “Management by Wandering Around” (MBWA). HP has tried to spread and institutionalize this concept by wide exposure in company publications, meetings and training sessions and by the example of upper management. HP feels it’s the best use of people which aids the coordination of the design, manufacturing, and distribution process. For getting the best out of its employees, HP has used a competitive performance appraisal and salary administration process. In this system, “wage curves” for various levels are set to be competitive with relevant labor markets. Individual pay is set by a combination of relevant experience and “sustained performance.” In future HP is going to face challenges regarding the adaptability and durability of its methods and its managers. The compounding pressure of growth, the requirements of newer market and intensified competition will only