Custom «Diagnosing Change: Hewlett-Packard Company (HP)» Sample Essay
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One of the most important and difficult duties of the company's management is the timely and accurate diagnosis of organizational problems. Change diagnosis is a detailed analysis of the primary requirements for organizational change to find the best ways and methods of its implementation. Diagnosis of Hewlett-Packard Company (HP) allowed determining not only the need to introduce changes, but also the ability to use diagnostic tools for the implementation of the planned improvements. Diagnosing change in the HP makes it possible to form a new organizational mode that would be appropriate for internal peculiarities of the company's functioning.
HP refers to the world leaders in the industry of information and communication technologies and cybernetics. The company is the sound provider of software and hardware exploited for corporate and individual purposes. The business of HP is guided by superior IT decisions on appropriate infrastructure, PCs, system integration, the outsourcing IT service and support, and print service (About HP, n.d.).
The mission of HP setting the direction of the company and the prospects of the necessary changes is to create a first-class high-tech technology to facilitate the daily professional and personal activities of all consumers, regardless of their status. The company has positioned itself as a purposefully advanced business changing lives of people involved in it through innovative technologies. HP promotes a new vision through innovative IT solutions. It serves as the relevant background for making organizational changes in the company.
HP is a large corporate structure which possessed over $106 million while its net revenue exceeded $25 million in 2015 (HP Inc., 2015). The number of its basic and diluted shares was more than 1,800 in 2015 (HP Inc., 2015). The number of employees was 287,000 people in 2015 (Hewlett-Packard number, 2015).
The history of HP started in 1939 when the company started producing measuring equipment. First competitive advantage of the launched business was low-frequency oscillator of relatively high quality offered at more than moderate price. Market success was accompanied by orders from well-known brands. Later, the product range of the company was diversified by a minicomputer, a calculator, and other communication technologies, including printers. They became the basic products appreciated by numerous customers throughout the world. The twenty-first century was eventful for the company due to mergers and acquisitions affecting a scale of the business and its development in an era of rapid market changes.
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Assumed Changes in HR Practice
The HR policy of the company is based on the maintenance of working environment in a large team that is conducive to the best contribution of stakeholders and employees to the company's results. Thus, the internal social policy is directed at meeting the needs of these people in courtesy, dignity, and respect. Employees adhere to ethical standards, which in turn eliminates the hostile work environment and sexual harassment. In addition, HP promotes grievance policy to provide information support to the company's workers. The organization practices the feedback from its staff members through numerous communication technologies.
The excellent social responsible employer is about to split the business into two parties. The first one will engage in production and sales of computers and printers while the second company will sell software and hardware (Paul, 2014). The significant coming change will cause inevitable changes in social policy and prior mode of HR exploitation. Therefore, HR allocation and improvement of this type of management are current issues that need to be considered according to restructuring changes of the business.
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Finally, the process of HR management in separate companies should be changed. The notable brand will divide the entire social composition of the personnel. Therefore, the change will concern mostly the renewal of social corporate culture and procedures of HR exploitation in both HP parties. Business background of new business units will form specialized HR policy and focused recruitment and retention. The common HR policy will be also changed according to the expected change of business concepts and values.
Change Management Theoretical Background of Change Rationale
According to change management theories, the change in HR management is invoked by the necessity to perceive consciously the objective need for the reformatting of this social aspect of HP. The most appropriate model which explains this decision is ADKAR. It comprises the awareness of the necessity of the change in line with the general business change, a desire to update the HR policy using the most important strategic resources, knowledge of the direction of change, the ability of re-applying the required skills, and reinforcement of the expected changes (Hiatt, 2006). These motives can be the guiding drivers to create a new upgraded HR management in response to the split.
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A relevant theory of change management that would be applied towards the necessity to reform HR management is Lewin’s model of change (Adams & McNicholas, 2007). Alignment of HR management practice, recruitment, and motivation to new circumstances of existing in separate business units will occupy three-stage process of rationale’s justification. Firstly, the change is invoked by business necessity to specify the markets. Therefore, HR management will unfreeze to prepare the personnel to accept inevitable change. Later, the change itself will be implemented as a consequent and logical step of a business split. In the end, the changes, namely new HR management, will be introduced and normalized. This model showed the inability to maintain the prior system of social policy in the new circumstances.
The change is the following action which occurs at a certain stage of the company’s development. According to business evolution, despite organizational transformation, HR management of HP addresses its reason to Deming’s PDCA circle which reflects the change as a certain improvement of social and business processes (Srivannaboon, 2009). Thus, HR practice was planned to change. Consequently, this plan will be implemented, checked, and enacted according to new standards.
Renewal of HR practice and creation of new social processes, including recruitment, retention, and motivation, may be diagnosed with benchmarking, retrospective analysis, expert review, and risk monitoring, among others. All of them characterize different sides and origin of a change.
Benchmarking can be used as a set of tools to locate systematically, assess the merits of others' experiences, and organize their use in own practice to assess changes (Zhu, 2014). Comparison with competitors or similar cases of the reformatting of HR practice will determine the differences between them and allow revealing the readiness of HP or any of its expected parties for change. The retrospective analysis reveals the cause and the leading trends of their action, which determined the situation in the past and contributed to the need for both split of HP and the reformation of HR practice (Cox & Hassard, 2007). On the other hand, the exploitation of retrospective analysis enhances the future development and helps incorporate the best examples of HP solutions in the practice of HR management according to the specificity of the past success. Therefore, the supervisors will be aware of their ability to update social policy depending on the peculiarities of the coming change. These selected diagnostic tools are the best choice for diagnosing the change in the organization as they address the solution to the best prior practice used in the past or exploited by current business leaders.
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Benchmarking can be used to demonstrate the company's readiness to change its HR management regarding the planned split. Thus, if applying a benchmarking to explore other brands or competitors in this industry, certain benefits can be predicted. For example, the Lenovo Company has used a split in the case of its business unit called Motorola Mobility (Orr, 2015). At the same time, its social processes relating to recruitment of talented professionals became a progressive factor for the autonomous development of this direction. If comparing this experience with HP, this successful and leading company can be considered ready for the change because it has a much more stable and sustainable social policy than its indirect competitors. These results testify that the comparative success of social policy and HR management of HP is much more persistent to external or internal changes. Even the loss of business integrity will not affect significantly the renewal of HR management in new autonomous business units. Therefore, the organization is ready for the change.
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The practice of changing HP HR management due to the planned split should adhere to current change management theories. Thus, the rationale for this change is in the application of ADKAR model, Lewin’s model of change, and Deming’s PDCA circle that successfully explain the necessity to change social practice in favor of new transformation of HP business. Implications of exploited benchmarking indicate the readiness of HP for the change.
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