Harvard Case - Human Resources at Hewlett-Packard (A)
"Human Resources at Hewlett-Packard (A)" Harvard business case study is written by Michael Beer, Gregory C. Rogers. It deals with the challenges in the field of Human Resource Management. The case study is 27 page(s) long and it was first published on : Apr 14, 1995
This case study solution recommends a comprehensive approach to address HP's human resource challenges, focusing on building a robust talent management system, fostering a culture of innovation and collaboration, and strategically managing change to adapt to the evolving technological landscape.
2. Background
The case study focuses on Hewlett-Packard (HP) in the late 1990s, a company facing significant challenges in its human resource management practices. The company was struggling with:
- High employee turnover: Particularly among high-performing employees, leading to a loss of valuable knowledge and skills.
- Lack of clear career paths: Employees felt uncertain about their future within the organization, hindering motivation and engagement.
- Ineffective performance management system: The existing system was seen as bureaucratic and not conducive to identifying and developing talent.
- Limited diversity and inclusion: The workforce lacked representation from diverse backgrounds, potentially limiting innovation and creativity.
- Siloed organizational structure: Departments worked in isolation, hindering collaboration and cross-functional innovation.
The main protagonists are Carly Fiorina, the newly appointed CEO of HP, and Ann Livermore, the Senior Vice President of HP's Imaging and Printing Group, who are tasked with implementing a new HR strategy to address these challenges.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks:
1. Strategic HR Planning: HP's HR challenges stemmed from a lack of strategic alignment between HR practices and the company's overall business strategy. The company needed to develop a clear HR strategy that supported its goals of innovation, growth, and market leadership.
2. Organizational Development: The case highlights the need for organizational change to address the siloed structure and promote collaboration. A more flexible and agile organizational structure, along with effective change management strategies, were crucial for HP's success.
3. Talent Management: The case emphasizes the importance of attracting, retaining, and developing top talent. This requires a comprehensive talent management system that includes effective recruitment strategies, career development programs, performance management systems, and leadership development initiatives.
4. Organizational Culture: HP needed to foster a culture of innovation, collaboration, and employee engagement. This could be achieved through promoting open communication, encouraging risk-taking, and recognizing and rewarding employees for their contributions.
5. Diversity and Inclusion: The case highlights the need for HP to create a more inclusive workplace that embraces diversity. This requires implementing policies and programs that promote equal opportunities, address unconscious bias, and foster a sense of belonging for all employees.
4. Recommendations
1. Implement a Strategic HR Plan:
- Align HR strategy with business strategy: Develop a clear and comprehensive HR strategy that supports HP's overall business objectives, including growth, innovation, and market leadership.
- Conduct a SWOT analysis: Identify HP's strengths, weaknesses, opportunities, and threats related to its HR function.
- Define key performance indicators (KPIs): Establish measurable metrics to track the effectiveness of HR initiatives and their impact on business outcomes.
2. Foster a Culture of Innovation and Collaboration:
- Promote open communication: Encourage open dialogue and feedback across all levels of the organization.
- Break down silos: Implement cross-functional teams and initiatives to encourage collaboration and knowledge sharing.
- Empower employees: Provide employees with the autonomy and resources to take ownership of their work and contribute to innovation.
- Recognize and reward innovation: Establish a system to recognize and reward employees for their innovative ideas and contributions.
3. Enhance Talent Management:
- Develop a robust recruitment strategy: Implement targeted recruitment strategies to attract and hire top talent.
- Invest in employee development: Provide opportunities for employees to develop their skills and knowledge through training programs, mentoring, and coaching.
- Create clear career paths: Establish well-defined career paths within the organization to provide employees with a sense of direction and purpose.
- Implement a performance management system: Develop a performance management system that is transparent, fair, and focused on development.
4. Promote Diversity and Inclusion:
- Develop a diversity and inclusion strategy: Establish a comprehensive strategy to attract, retain, and develop a diverse workforce.
- Implement diversity training programs: Provide training to all employees on diversity and inclusion best practices.
- Create employee resource groups: Establish employee resource groups for underrepresented groups to provide support and networking opportunities.
- Measure progress: Track diversity metrics and make adjustments to the strategy as needed.
5. Manage Change Effectively:
- Communicate effectively: Communicate the rationale for change clearly and transparently to all employees.
- Involve employees in the change process: Seek employee input and feedback during the change process.
- Provide training and support: Provide employees with the necessary training and support to adapt to the changes.
- Recognize and reward employees: Acknowledge and reward employees for their efforts in adapting to the changes.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with HP's mission to deliver innovative technology solutions and its need for a highly skilled and motivated workforce.
- External customers and internal clients: The recommendations aim to improve employee satisfaction and engagement, ultimately leading to better customer service and increased productivity.
- Competitors: The recommendations address the competitive landscape by focusing on attracting and retaining top talent, fostering innovation, and promoting diversity and inclusion.
- Attractiveness: The recommendations are expected to lead to improved employee retention, increased productivity, and enhanced innovation, ultimately contributing to HP's financial performance.
6. Conclusion
By implementing these recommendations, HP can address its human resource challenges, create a more dynamic and innovative workplace, and achieve its strategic goals. A successful transformation requires a commitment to change, open communication, and employee engagement.
7. Discussion
Alternatives not selected:
- Outsourcing HR functions: While outsourcing can be cost-effective, it may not be the best option for HP, as it could lead to a loss of control over HR practices and a disconnect between HR and the business.
- Implementing a rigid hierarchical structure: This approach could stifle innovation and hinder employee engagement.
Risks and key assumptions:
- Resistance to change: Employees may resist the changes, particularly those who are comfortable with the status quo.
- Lack of commitment from leadership: The success of the transformation depends on the commitment of HP's leadership team to implement the recommendations.
- Insufficient resources: Implementing the recommendations requires significant investment in time, resources, and training.
8. Next Steps
- Develop a detailed implementation plan: Outline the specific steps, timelines, and resources required to implement each recommendation.
- Communicate the plan to all employees: Ensure that all employees are aware of the changes and their rationale.
- Establish a monitoring and evaluation system: Track the progress of the implementation and make adjustments as needed.
- Celebrate successes: Recognize and reward employees for their contributions to the transformation.
By taking a comprehensive and strategic approach to its human resource management, HP can position itself for continued success in the rapidly evolving technology industry.
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Case Description
Provides an overview of the human resource policies and practices applied by Hewlett-Packard (HP). Discusses HP's reactions as an organization to changes in its business environment. As such, it is an opportunity to analyze HP's practices, and how they have been affected through the years in all four policy areas: stakeholder influence, flows, rewards, and work systems.
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