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HP Way is a set of primary values that define how workforce and the company are

to perform. These values have become the foundation of the HP Way. It is an objectiveoriented philosophy, where each constituency can share the same principles and work toward a common goal. The primary values of the HP Way are trust and respect for individuals; high level of achievement and contribution; conducting business with uncompromising integrity; common objectives through teamwork; innovation and flexibility. The companys founder put focus not only on to make creative products but also to create supportive corporate culture. The Company has many personnel policies and internal structures which support these values and each policy complement and support each other. The activities of HP employees are guided by a comprehensive system of management by objectives (MBO). The greatest advantage of MBO is that objectives are goals, not specific tasks handed out by management. Goals can be achieved in multiple ways and it is expected from employees to find their own best ways to meet these goals. Job autonomy encourages creativity in the workplace and increase the sense of accountability to employees. From the beginning HP instituted participative management style to foster teamwork, trust, openness and cooperation. Teamwork is practiced within divisions between R & D, manufacturing, marketing, and finance. Through participative decision-making HP is able to support the involvement and closeness of all departments through effective cooperation within organizations, even as it has grown into a big enterprise. Employees are able to use their discretion and maintain teamwork. The employees are encouraged to pursue corporate goals through open communication. Open communication increases awareness about the company among employees and they feel fairness and part of the management through this process.

Management by Wandering Around helps in building more channels of communication with other employees. The hiring process is to find the best talent who can fit in its culture and have strong technical and interpersonal skills. As mentioned in the case if HP hired someone, they were hired forever. It secures the future of the employees. HP has an excellent story telling strategy to orient employees and kindle companys spirit within old employees. HP avoided layoffs which was a unique measure to gain trust from employees. Career Maze concepts i.e. the lateral move inside the company is a good way to increases competency and growth of employees. The reward system rewards innovation and pay system rewards performance which is helping in setting up high performance group. All employees are on the same profit sharing and stock option plan which encourages sense of company ownership within the employees. There are other business policies also which supports the HP way. HP is committed to its customers as well as to its employees. When it comes to its commitment to customers, HP doesnt believe in gaining a market share by keeping low introductory prices for its products. When it comes to its commitment to employees, HP restrains itself from having contract workmen. HP self financing policy supports the human resource philosophy, particularly employment security. The financial reporting system enables evaluation of a divisions domestic and worldwide performance and rewards innovative divisions with additional funds for further innovation and acts as an indirect form of asset allocation. 2) HP Way was all about respect, integrity, achievement, innovation and teamwork. The company had many structures and policies which supported the HP Way. Gradually after the turmoil of the 1980s the company started losing its core values. Any company lose its effectiveness if it ceases to live its core values or if it refuses to change its operating practices, strategies, structures in response to changing realities..

There are many good things about HP. It has a decentralized organizational structure which enhances entrepreneurship and accountability. Budget is allocated based on the performances and innovations made by the divisions. HP follows the policy of no-layoffs even in economic turmoil, technology change, and competitive pressure, it chooses to downsize and redeploy the employees. HP doesnt offer a job to its employees, it offers a career. It moves the employees cross-functional and cross-divisional, which is critical for the development of employees in a technology based company. HPs work style provides ample space for building relationships. Common coffee breaks, communication luncheons, quasisocial gatherings, picnics, etc. provides enough room for the employees to interact and build a community. Negative aspects of HP arose after 1980s turmoil when they started deviating from the long-held business policies. New business policy formulation is not in alignment with its core values. It is losing its human touch by doing contract work, redeploying their employees, reducing the benefits, poor job security. Management is not people oriented as they use to be. Autonomy, cooperation, coordination has now become the main concern. Each of business segments is operating independent of each other; they have their own distribution channels which are leading to decrease coordination. Companys fundamental values i.e. trust, participative management, and respect for the individuals is losing its existence because of new business policy, unclear strategy, and direction. Hp has grown into big company by new expansion, acquisition and some consolidation, and is unable to integrate its core values, beliefs across all companies. Even though it has many positive traits I would not like to work for this kind of company. Job security, respect and autonomy are the three key elements of motivating factors for me which HP is gradually losing. Core values bring meaning to peoples work and help them decide what to do and what not to do in the course of their work. I feel engaged if

my career goal is in alignment with the companys goals, values and principles. HP is losing its credibility by deviating from its core values. All great companies and leaders stick to their core values and intentionally include them in their entire decision making. I would certainly like to work for the company which puts employees first and give each of them an opportunity to grow. By following the HP Way it did create a living brand for itself in employees mind which now seems to be degrading. Certainly I would not like to be in a company that is characterized by distrust, fear, and bitterness. 3) The core values of the HP Way i.e. integrity, respect for individuals, innovation, teamwork and contribution to customers can still be maintained even when the company is restructuring. To remain successful in dynamic environment, it is imperative to alter business strategies according to the changes in business trends without ignoring the core values. Intensely competitive environment has forced HP to sacrifice its various traditional way of doing business for e.g. avoiding forward pricing, avoiding acquisition and partnership, avoiding contract workmen, providing Job security to its employees etc. With uncertain business condition, technological change, and demographic change its imperative to bring some changes in traditional HRM approach to remain competitive in the market. HP needs to apply strategic best fit and resource based model among the four Strategic HRM (SHRM) perspectives i.e. Universalistic, Strategic best-fit,

Configurational and Resource-based. At the initial phase when company is restructuring it should take care of Vertical, horizontal and external integration in formulating HRM policy. After strategic best fit implementation, HP should continue with resource based model to gain competitive advantage over others. Its important to boost the morale of the employees while undergoing organizational change event. HR department should make sure that clear, frequent, accurate and timely communication is conveyed to employees. Employees will be less anxious and

more productive if they know they are being consistently informed about the company. A formal training program should be organized time to time and teach them how to sail through this tough situation without losing their hope. HP is following the policy of downsizing and redeployment in order to avoid layoff which is creating a sense of insecurity among employees. Low morals and stress leads to decrease productivity hence HP can offer more to employees in terms of compensation measures. The severance packages should be increased in order to make the policy more appealing and to include better benefits in terms of monetary value. HP should incorporate into their HR assessment the balanced scorecard approach for assessing the effectiveness of the organization. The Balanced scorecard is important at this stage as company can focus on most of the features needed to be competitive. These include being customer-focused, improving quality, emphasizing team work, degree to which employees, internal & external customer needs are satisfied and managing for the long time. HP is expanding its business throughout the world and the HP way can be applied to work in other cultures too. The closed hybrid model approach can be used for international expansion i.e. a subsidiary uses a parent-country template for HR but adapts practices within the template to local conditions. The main idea of each value should be conveyed to the foreign countries so that they can implement the values in ways that are customary to the various cultures of foreign countries. In this touch competitive environment the generation is moving from Gen-X to Millennial and beyond. Studies have shown that Gen-X generation and millennial employees are effective in pushing innovation, enjoy autonomy and have more of a knack for cooperation and organization. This ascertains that the HP Way can be continued, the management should bring some in the culture of the company to adapt to the dynamic environment.

Cons: new management is not as people-oriented as they use to be, unclear strategy and direction,
downsizing

. Poor job security. Feel more like a contract worker wearing a perm's badge.

-Employee benefits getting lesser and lesser.

-Cost cutting measures hitting bone and hurts morale. -Training opportunities poor. -Overworked. -Feel that upper management are more in tune with financials than actually producing solutions for customers.

In short, I think that Hewlett and Packard would never have talked about "growth and profits first", they talked about "shared objectives", growth and profits being only a mean to reach these shared objectives.

The company had many structures and policies which supported the HP Way. It was said in the case that when HP hired someone, they were hired forever. They went for the best talent they could find with the expectation of keeping them onboard. The hiring process reflected the HP Way focus on how something was done by asking applicants about how they would go about doing something in their interviews. In addition, the company avoided layoffs by increasing work hours and instituting a transfer system within the company. HP also instituted a policy of management by objectives or MBO. The greatest advantage to this policy was that while it did set goals for employees and groups, it was not a specific task set handed out by management. It was a set of goals which could be achieved in multiple ways and allowed the employees to grow in their own way to some extent. It was decentralizing in some ways to the company but in the big picture it was a positive step for management to take. In terms of management style,

However, the way all the activities, systems and policies were formulated was done in such a way that each activity complemented and supported the other. Hence, each activity, system or policy became an effective means of supporting the companys business. One companys formula for success will not always be applicable as the industry and the market trends constantly change. Competitors increase, along with newer ideas and products. An increase in market supply affects product price. Technical innovation where HP relied heavily on prior to the 80s may not be the same strategy needed as the IT era continues to develop and set new trends in the 80s and in the coming decades. The challenge for HP is how to sustain its success story by coping with industry changes, by perhaps revisiting and revising its strategy without letting go of its legacy of doing businessthe HP Way
But the culture started losing its effectiveness due to the changing profile of the company and the dynamics of global competition To understand how organisational change, if not handled well, could prove detrimental to the existence of a company.

HP needs to rethink strategies and practices and markets, without reneging on the values and principles and cultures that fueled that glory in the first place .
The core essence of the HP Way consists of five fundamental precepts.*1) The Hewlett-Packard company exists to make a technical contribution, and should only pursue opportunities consistent with this purpose; 2) The Hewlett-Packard company demands of itself and its people superior performanceprofitable growth is both a means and a measure of enduring success; 3) The Hewlett-Packard company believes the best results come when you get the right people, trust them, give them freedom to find the best path to achieve objectives, and let them share in the rewards their work makes possible; 4) The Hewlett-Packard company has a responsibility to contribute directly to the well-being of the communities in which its operates; 5) Integrity, period. Therein we find the hidden DNA of the HP Way: the genius of the And. Make a technical contribution and meet customer needs. Take care of your people and demand results. Set unwavering standards and allow immense operating flexibility. Achieve growth and achieve profitability. Limit growth to arenas of distinctive contribution and create new arenas of growth through innovation. Never compromise integrity and always win in your chosen fields. Contribute to the community and deliver exceptional shareholder returns. Behind these specifics lies the biggest "And" of all, the principle that underpins every truly great company: preserve the core andstimulate progress. On the one hand, it is guided by a set of core values and fundamental purpose that change little over time, while on the other hand, it stimulates progresschange, improvement, innovation, renewalin all that is not part of the core guiding philosophy. In a great company, core values remain fixed while operating practices, cultural norms, strategies, tactics, processes, structures, and methods continually change in response to changing realities. Lose your core values, and you lose your soul; refuse to change your practices, and the world will pass you by. Those who build the most iconic and enduring institutions know the difference between what is truly sacred and what is not, between what should never change and what should be always open for change, between "what we stand for" and "how we do things." Any company can fall from great to good if it ceases to live its core values or if it refuses to change its practices

The HP Way was about the various aspects of that reward: respect, achievement, integrity, teamwork, innovation

the HP Way that brought shared values of integrity and respect, performance and passion.

Core values are the beliefs and values that an organization holds dear. They are not consciously created but are part of the fabric of the organization, probably as a result of the views of the founders - they are discovered not invented. Whatever the organization does in the future or however it changes, the core values should remain the same. They evolve, often unnoticed over the years, until they can be encapsulated with words and become a fundamental part of the way people think.
What makes the HP Way unique, though, is the seriousness with which values are treated as a management tool. They are not spread by sloganeering, but serve as criteria for daily decision-making and advancement. Brought to life as well as Hewlett-Packard does the HP Way, values based management lifts everyone above trivial concerns to focus on those that are truly important."
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HP has achieved "what appears to be the greatest dichotomy: creating an environment that celebrates individualism, but at the same time one that is also wholly supportive of teamwork. Although HP people are taught to engage in cross-functional teams, they are also rated on the performance of decentralized business units and personal achievement."
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HP excelled in managing dualities specifically in creating a delicate balance betweenindividual creativity and teamwork. Most companies tend to recruit, train and promote people within functional corridors. But Hewlett-Packard (HP) breaks the walls, creating a carrier network that begins with the recruitment of diverse people in terms of their skills and personality and then promotes horizontally, as well as vertically throughout the company. "Typically, HP employees move through four to six functional areas in the course of their carriers. This creates broad knowledge of the company and fosters the kind of teamwork other companies covet".
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When it comes time to promote, managers don't look who is next down the carrier line, they look for the best people. Neither employees should follow a pre-defined path to a particular post, nor need they to get a bigger title to be given new responsibility.

HP has one of the strongest and most effective corporate cultures in business history. It would be a terrible mistake to throw it away and to try to replace it with a fruit salad of "the best" elements of two overlapping companies selected by a committee of experts in a corporate clean room.

Employees say there is a culture of fear that did not exist before, and blame her for launching the first salvo in what became a bitter proxy fight. Retirees are bitter over what they feel has been her complete disregard for their advice and contributions. how co-workers 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. "Everybody respected everybody else. Management was part of the team, Under "MBO," managers allowed employees to determine how best to accomplish agreed-upon goals, thus fostering innovative thinking and an entrepreneurial spirit. But to Hewlett and Packard, and their employees, it also meant something

more: Trust. "Belief in people had been fundamental at HP," said retiree Al Bagley. "Trust in people was such a big thing."
http://www.paloaltoonline.com/weekly/morgue/2002/2002_04_10.hpway10.html
Activities that support the HP Way can be clustered according to: Organizational System, HR Policy, Organizational Structure, and Culture. Activities tied to organizational system include: Hiring for competency, potential and culture fit; Acculturation for new hires; Competitive salary structure; Profit-Sharing and Stock Options; Pay tied to Performance, Management by Objectives; Promotion form within; Career Progression through the Career Maze.

HR Policies promised Employee Security. The company also institutionalized employee empowerment in the workplace. Employees were given autonomy in doing their jobs and finding ways to improve them HP has a decentralized organizational structure. Product Divisions were formed and general managers of each were responsible for his respective divisions growth. Budget was allocated based on the performances and innovations made by the divisions. HP has an informal Culture that values Trust and Teamwork. It emphasizes not only results but also processes. It has an open-door policy. People address each other and even their bosses on a first name basis, Management by Wandering Around was encouraged and Division Reviews were done for leaders to be acquainted with employees. Attitude Surveys were regularly conducted to check the pulse of the workforce. Technical innovation and not marketing nor other ways of competing was HPs ma in strategy that time. Job responsibility was enhanced by a system of Management by Objectives, and a salary that was competitive in the market. Sense of company ownership was established through profitsharing and stock options. Having a unique career pathing system also increased the competency and growth of employees.

A reward system that rewarded innovation, as well as a budget and pay system that rewarded performance boosted the decentralized structure in setting-up high performing groups. Perhaps there was a threat of acquiring a competitive mindset among employees in the company, but it was tempered through communication practices that reinforced teamwork and knowledge-sharing. Management practices also created an informal yet motivated workplace, and even reinforced the level of trust within the company. Hence, everybody was busy doing what was best for the company.

Stringent screening was also done in the recruitment stage. Criteria for hiring was not only based on skill, but also interpersonal skill and cultural-fit. New hires were made to undergo training that oriented them about the company and the HP Way.