The most serious problems I identified in the case would be the lack of management, the structure of management and the reward system.
Carly Fiorina’s strategic vision had been underutilized, vague and no one knew if the vision was being executed. Employees within the company could not follow the company’s vision and no motivation followed with the employees. With the vision being not enforced, the company began to see a decline in sales, poor growth within the company and employees leaving the company.
The next problem identified was the confusing matrix structure within the company. The structure had a slow decision making process and blurred lines of accountability.
A matrix structure can be highly effective; it focuses on integrated teams and involves reporting to multiple managers. But it can be confusing to work within a matrix and it can also create conflict between project bosses in different parts of the matrix. Some of the common issues encountered with the matrix structure are budgets, available resources, disagreements or misunderstandings about schedules, and the availability of employees with particular functional expertise. A matrix structure requires a much more management skill than the other forms of organizational structure and a high level of coordination to manage the complexity involved with running large, ongoing projects at various levels of completion.
The last problem identified in the case study is the reward system. The reward system was noted to be complex that no knew how their performance effected their bonuses’. Hewlett-Packard employees were leaving and having trouble attracting new ones.
2. Describe how the company should attempt to correct each of the three serious problems.
The first step Hewlett-Packard took in an attempt to correct their problem was to fire Carly Fiorina. The company hired