The Rise and Fall of the HP Way Case Study Essay

The Rise and Fall of the HP Way Case Study - Essay Example What was the HP Way? In the HP Alumni Association, Inc. (2012), it was revealed that the HP Way had five clearly stipulated corporate values to wit: â€Å"We have trust and respect for individuals. We focus on a high level of achievement and contribution. We conduct our business with uncompromising integrity. We achieve our common objectives through teamwork. We encourage flexibility and innovation† (HP Alumni Association, Inc. 2012). The date stipulate for these corporate values to be designed, instituted and implemented within the organization is in 1992. Accordingly, the HP corporate objectives designed as early as 1966 focused on seven explicit goals: (1) profit, (2) customers, (3) field of interest, (4) growth, (5) employees, (6) organization, and (7) citizenship (HP Alumni Association, Inc. 2012). ... Governance under Carly Fiorina Case facts revealed that Carly Fiorina was a former sales executive that was hired to shake up HP. She was reported to become HP’s Chairman and CEO in 1999, three years after the death of one of its founders, Dave Packard. It was specifically noted that she was hired from external sources and was instrumental in changing various corporate values that were identified to be an integral part of the HP Way. From among the tranformations attributed to Fiorina were: (1) mishandling of lay-offs; (2) valuing profits more than people; (3) creating a ‘cult of personality’; and (4) creating a culture of fear (Dong, 2002, p. 1). To expound on the aspect of laying-off employees, according to Jaime Ash, a retired engineer who stayed with HP for more than 28 years, the HP way that employees and management had been talking about focused on â€Å"co-workers (who) were reassigned to new jobs rather than fired; how the company for a time implemented a shortened work week for all employees so certain individuals would not lose their jobs† (Dong, 2002, p. 1). In sum, the differentiated practices under Fiorina’s helm and the HP Way are detailed below: Corporate Practice HP Way Fiorina’s Helm Firing/lay-offs Job reassignment Laid-off 6000 employees Corporate culture Trust, respect Distrust, fear Motivational program Motivated by hugs Motivated by fear Management practice To be part of the team; Distant and aloof; decentralized top-down approach Communication practice Open, sharing information Close, secret, discreet Mistakes that Led to HP’s Near Collapse From the information and assessment of the facts, one could