Illustrates what caused a mayhem at HP when the new CEO brought about changes which were drastically different from the existing culture at the company. The incidents have been related to organisational behaviour theories and principles

1. HP at Cultural
Crossroads
‘HP Way’ or ‘CarlyWay’ ?
Group 5: Ketaki, Himanshu J, Himanshu K, Rashi, Prakhar, Saurab

2. THE HP WAY – ANALYSING HP CULTURE
HP’s Organizational Values
1. Management by Objective
Each stakeholders from every level needs to
contribute to company’s goals by developing
objectives
2. Open Door Policy
Freedom to express concerns
3. Open Communication
Promoting teamwork by giving right training and
information
4. Management by Wandering
Managers walking through the employees
regularly, keeping in touch with employees via
impromptu get together
HP’s Corporate Objectives:
1. Profit
Profit by means of increasing perceived good
value by customers; always reinvested profits
back into the company; no debts taken for the
company directly
2. Customers
Mutual respect, effective response to customer
needs.
3. Field of Interest
Businesses which help continue HP’s tradition of
self financing
4. Growth
Growth for shareholder value and achieve
business objectives
5. People
Job Security, Job satisfaction ,sharing of
success with employees
6. Citizenship
Importance of being a good corporate citizen in
each country of operation
Collaborative Approach
oriented towards Team Work
with importance to people and
values

3. Employees, if
perfectly, motivated
work towards
creating
breakthrough
innovation
Employees, if not
motivated well, aim
at bringing in
products with minor
revisions into the
market more
frequently to acquire
the incentive.
Pro’s
Con’s
- Prevents
complacency, if the
company is leading
in the sector and
has no major
competitor.
- Frequent bonuses
keeps the
employees
motivated to work
better.
- Much less chances of
registering a huge profit
as compared to the
competitors when
company is not
performing well
- Will lead to cut down on
employee bonuses
- Lowered Morale of
employees
Pro’s
Con’s
THE HP POLICIES – PRO’S & CON’S
TECHNOLOGY &
INNOVATION
COMPENSATION
POLICY
Incentives for employees
linked to number of
innovations.
Bonuses given out when the
company beats its own numbers of
revenue

4. Sales Compensation Structure based on performance
Feedback based Pay - 360° Feedback concept
Revitalizing HP Labs – Focus on Patents
Cost Prudent Functioning
Competitor Performance based Bonus
Laid of 1,700 + 3,000 + 6000 Employees (Jan, Apr, Jul)
Voluntary Pay Cuts or Forced Vacations
Structured Manager – Employee Ratio
HP – Compaq Merger
THE CARLY WAY
Positivity:
- True leadership driving a massive
culture transformation.
-Necessary for Survival – Industry
Standards as benchmark
- The new HP way would need people
to work together, move faster, and be
nimble.
- Required HP to master the
commoditized technology business
instead of sticking to its old innovation
driven engineering business.
- Focusing on Innovation
Negativity
- No Team Work
- No Empowerment of employee
- Degrading moral value of
organization
- Dissatisfaction within employees
- Too much competence culture
- Destroying company’s cherished
culture
- Hire & Fire policy-Fearful &
uncertain working environment

5. Carly Way & Its Effects -
Finding
‘Way’
Criticism
from
Analysts
Employee
Grievanc
es
Resistance
from
Stakeholders
Falling
Profits
Share
Price
Stagnant
Revenues

6. •More flexibility and understanding to bring about a gradual change.Gradual Change
•Taking inputs from experienced managers and making them a part of
decision makingCoalition
•Understand the core culture and not mistake its understanding by what
seems apparent.Core Culture
•Understanding the employees , the work culture and the organizational
value system.Value System
•Creating and Communicating new VisionVision
•Consolidation of results of small changes before new changesStep by Step
•Performance & Feedback based Pay systems created more stir.Compensation
•Could have made efforts to ensure employee satisfaction .Employee Satisfaction
•Subtle Cost Cutting MeasureCost Cutting
Inclusive Change
WHAT COULD HAVE BEEN DONE
DIFFERENTLY?