Business_Firms

Running head: Hewitt-Packard Hewitt-Packard Hewitt-Packard Company 1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. The first serious problem of Hewlett-Packard’s was a confusing matrix structure that blurred accountability lines and showed decision-making. Matrix structure is a departmentalization that focuses on integrated teams and involves multiple managers that used together. In addition, matrix structure open up for communication, and provide an opportunity for team members to learn from each other. It can be very efficient, but it can be very confusing to work with and it can also create conflict between project bosses in different parts in matrix (Williams, 2011, p.159). Therefore, matrix structure requires high level of organization and more diverse set of expertise and experience to carry out large complex tasks which help all the functional areas of the company. Second, of the most serious problem of Hewlett-Packard was financially in trouble because it cost them another $10 billion to combine the Hewlett-Packard and Compaq systems, after acquiring Compaq Computers for $19 billion. Moreover, there was a persistent mistrust with the combined company. New CEO Mark Hurd had to testify before Congress regarding what he knew of the situation because of a board member revealed confidential information to the press, the scandal involving spying and phone tapping. Third, of the H-P’s most serious problem was the lack of management. Management is getting work done through others (Williams, 2011, p.3). One of the insiders complained that CEO Carly Fiorina was too much of a big picture thinker and did not provide enough direction (Williams, 2011, p.254). The strategic vision Fiorina was using to direct the company was vague, and nobody knew in the company if it was performed or not. In fact, without a well describe strategic vision for the company, employees has no incentives and no organizational goals. Thus, it can lead to poor symptoms such as poor image, slow growth and a decline in sales. 2. Describe how the company should attempt to correct each of the three most serious problems. In order to correct each of the three most serious problems, the company should correct the confusing of matrix structure which had H-P’s single sales division reporting to four or five division heads at once, which Mark Hurd implemented to correct. Because of the confusing and not working matrix structure, Hurd needed an immediate corrective action in order to employ clear accountability lines and move up decision making. In addition, Hurd divided up the sales division, so that each of the major H-P product divisions had its own dedicated sales division. Another way to correct the problems was to fix the company financially stable. In order to progress and increase profitability in the company, new CEO Mark Hurd need to look into new market and organizational opportunities while reducing sales and support costs. Therefore, to accomplish these goals H-P would need to alter their current selling approach, shifting from being industry focused to being focused on larger enterprise customers. Indeed, in order to succeed, the company should have leader like Mark Hurd that has different style, who focuses on execution, vision, mission, goals, and objectives. A leader who could turn the H-P’s strategic vision into truthful and a strong desire to promote change or solve problems, and it’s certain to the company’s strategy is being properly accomplish. 3. Recommend a leadership style or combination of initiating structure and considering the CEO should adopt to address the problems of distrust and declining morale. Explain your answer. Consecutively, to address the problems of distrust and declining morale, CEO Mark Hurd should adopt a combination of leadership style such as the supportive leadership style and the participative leadership style. Leadership style is the way a leader generally behaves toward followers. Leaders under supportive leadership style is a leader that is friendly, approachable, shows concern to employees and their welfare and treats employees as equals, and creates a friendly climate, recommended by path-goal theory. Path-goal theory specifies that leader behaviors should complement rather than duplicate the characteristics of followers’ work environment. As a result, it improves performance and increases employees confidence, lowers employees job stress, or improves relations and trust between employees and leaders (Williams, 2011, p.262). Another way of addressing the problems of distrust and declining morale is adapting the participative leadership style. Participative leadership style is a leader who consults employees for their suggestion and input before making decisions. Participation in decisions making helps followers understand which goals are most important and clarify the paths to accomplish them. To become more committed to make things work, leaders must be also people-oriented. In conclusion, whatever style to adopt, the ability to persuade and influence others is the key to success. 4. After having examined all of the issues facing HP, recommend whether the CEO should focus on the approach to the current strategy or on implementation and execution. Defend your decision. I would certainly recommend that the CEO should focus on implementation and execution. Execution Management is basically defined as translating strategy into reality. It is not just accomplishing a task or a goal, but also to achieve the primary business objectives goals. A good execution management will focus on what as well as how of an achievement. The reason why the board hired the new CEO was because of his focus on execution management. Hurd begun to work with lower divisional levels to make sure operations were running smoothly. He also recast CEO Fiorina’s vision strategy into more tangible. He as well deals with the confusing matrix structure by separating the sales division, so that each of the major H-P product divisions had its own dedicated sales division. Therefore, by focusing in implementation and execution, the CEO Mark Hurd was able to profitably transform the company from struggling into a well-structured and profitable corporation.