The Hp Way

Human Resource at Hewlett Packard

HRM Case

Background

HP was started by Bill Hewlett and Dave Packard in 1939, with $538 in a one-car garage at Packard’s rented house. Perhaps the reason for the success of HP computers is the valuable management concepts of the company that were later formally drafted as the objectives of the company in 1957.

HP believes that the thinking of other people should not necessarily be accepted without the most careful consideration and without some actual testing in practice. It has developed a unique way of working with its people tagged as “HP Spirit” which is the key to their productivity, leadership, continuing progress and success. These 7 objectives; Profit, Customers, Field of Interest, Growth, Our People, Management, Citizenship and the business style at the organization came to be known by as the “HP way”. Net revenue of $114,552 billion (Net revenue for fiscal year 2009) shows the strength and effectiveness of the company.

At HP, the organizational culture is very important for success. Dave believes that even if a manger has mastered managerial techniques, he may mange things well but if he “knows the territory well” he will manage it a hell of a lot better. Another important potion of success is the style. HP division manager states that individual freedom was a common characteristic amongst the higher level management of the company. Even when a new employee is appointed he/she is not guided by the boss in fact they are expected to “use their heads”.

Qualitative

* Set of Corporate objectives and business style known as “HP WAY”

* They have flexible working hours, freedom to input about their job and suggestions for making changes are welcomed.

* Participative management style that demands initiatives while emphasizing commonness of purpose.

* Well defined negotiated goals and support of necessary resources is provided by company- Company does not dictate on how to achieve these goals.

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