Question

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MGT 101

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Assignment-2

Please read case “Hewlett-Packard Is Counting on Organizational Change to Boost Revenue Growth” at the end of Chapter 10 “Organizational Change & Innovation” available in your textbook Management: A Practical Approach 7^th edition by Kinicki, A., & Williams, B., and answer the following questions:

Assignment Question(s):                                                        (Marks 10)

1. Which of the super trends are driving H-P to change?
2. Which of the forces for change are causing H-P to undertake major organizational change? Explain.
3. To what extent is H-P following the four steps for fostering innovation? Explain.
4. What advice would you give Whitman based on what you learned in this chapter? Be specific.

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*************please re-write this answer by using new and unique answers, please. (Use your own words, don't copy and paste)**********************

Which of the super trends are driving H-P to change?

HP has been a company that offers a wide range of technological products and is having to change as it faces its competitors that offer targeted products, such as companies that only sell tablets or cell phones. It also faces the impact of technology moving towards ink-free photo and document sharing, provided by companies such as Dropbox, Google and Facebook.

Which of the forces for change are causing H-P to undertake major organizational change? Explain.

The external forces of change that are causing HP to make such a major organizational change are the technological advancements and market changes. The technological advancement of no longer having to print documents and pictures but having the ability to share documents electronically and through social media.

To what extent is H-P following the four steps for fostering innovation? Explain.

I don’t think HP did a good job at fostering innovation. It followed the first step of recognizing that there was a problem by evaluating the annual revenues and discovered that the revenues had been consistently decreasing since 2011. It devised a solution of laying off thousands of employees in order to increase investment in new technologies. It also decided in changing the organizational structure.

What advice would you give Whitman based on what you learned in this chapter? Be specific.

My advice for Whitman would be that instead of laying off so many people, to first look into the employees as see their input of improving and making profits increase. As I mentioned above, I would also advise her to evaluate all aspects of the company and develop a strategic plan, and then communicate it to others to bring them on board to her plan.

Answer 1

Super trends are driving H-P to change

• Every subsequent year H-P’s revenue peaked in 2011.
• In 2014, H-P had two consecutive quarters of growth.
• Through planning lay off for number of emoloyees H-P is trying to reduce its costs by planning lay off numbers of employees.
• Through cutting jobs the company will save approximately $1 billion and plan to utilise all these money on the new technologies and skills to revive growth

Forces for change

• To minimize the cost and save money for supporting new technologies and skills, cutting off jobs is an opportunity and may also have negative efforts
• HP relieved 34000 associates by reducing a total strength of 50000 people.
• Reducing the employee numbers can cause the employee morale and the turnover of the organization to increase

Change to increase the probability of achieving positive organizational change

• Fuel growth was the option choose by Whitman to change the organizational structure
• Two clusters of business was created one focus on Corporate technology and second on structural culture
• The focus on corporate technology customer selling servers and networking 43% of company’s overall profit
• The second cluster sells PC laptops and mobile devices
• HP is happy and positive about the change happening

Four steps for fostering innovation

• The major four steps in fostering innovation is searching, assessing, developing and implementing the innovative ideas.
• As soon as HP started realising that innovation is the key factor for Success, they started to follow the above fostering strategy
• The formation of two business clusters have increased the company sales
• This was developed by facilitating each clusters through necessary support and resources

Advice for Whitman

• HP can concentrate on managing the resistance to change among the employees rather than focusing cut off
• A good employee may increase the profit by showing a better performance
• Paying attention in the below points may help HP to overcome certain issues

1. Communication
2. Participation
3. Facilitation and support
4. Rewards
5. Manipulation
6. Explicit and Implicit