This report analyzes the human resource management strategies of Hewlett-Packard and provides recommendations for improving organizational performance. It includes a PESTEL analysis of the host country and discusses HR theories and practices.
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Running head: HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD Human Resource Management at Hewlett-Packard Name of the student: Name of the university: Author note:
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1HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD Table of Contents Introduction:..................................................................................................................3 Company profile:...........................................................................................................3 Industry drivers:............................................................................................................4 Host country profile:..................................................................................................4 PESTEL analysis:.....................................................................................................4 Why to go there?.......................................................................................................8 HR theories:..................................................................................................................8 Universalistic approaches:........................................................................................8 Configurational approaches:.....................................................................................8 Contingency approaches:.........................................................................................9 HRM strategy................................................................................................................9 Recruitment and selection:.......................................................................................9 Training and development:...........................................................................................9 Reward management:.............................................................................................10 Conclusion:.................................................................................................................13 Recommendations:.....................................................................................................13
2HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD Executive Summary The following report deals with the human resource management analysis of Hewlett Packardwheretheprimaryfocusisgivenonthenecessaryhumanresource strategies that are needed to be taken to increase the organizational performance. Thereportdealswiththecomparativestudyofthedifferenthumanresource strategies based on different models and theories. In the latter part of the statement, globalanalysisisbeingmadetodemonstratehowthesestrategiesaffectthe organizational performance, employee commitment and workforce quality of various organizations. A brief pestel analysis is also projected here to show the political, economic, social, technological, environmental and legal characteristics of the host country of the company which allows the growth of the organization and helps it stand out in global business.
3HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD Introduction: Human Resource Management is a planned way of approach to managing the people working in an organization so that the business achieves its maximum gain in the competitive market. The role of the Human Resource of a company comprisesofmanagingtheperformanceoftheemployeesinastrategicway focusing on the policies of the organization and recognizing employee’s benefit by arrangingpropertraininganddevelopmentprogram,adequaterecruitmentand selectionandmanagingrewardforthem(Wright,2018.).Managinghuman resources deals with problems related to performance management, developing safety and wellness for the employees, arranging employee motivation program and maintain the suitable workplace culture and environment (Zell, 2018). This human resource management report of Hewlett-Packard is developed to assess the human resource strategy of the organization and based on it specific recommendations are made on the process of how the business of the company will establish a joint venture in the market and the necessary steps that should be taken in terms of recruiting staffs locally and also managing the relocation of some expatriate staffs to plan the new venture alongside those of the company’s joint venture partner. Company profile: Among the hardware companies in the world, Hewlett-Packard is the second largest company in the world. Among the multinational companies based in America, Hewlett Packard is one of them having its headquarter in Palo Alto, California (Burgelman,McKinneyandMeza,2016).Itoffersawiderangeofhardware includingpersonalcomputers,supercomputers,networkingproductsandalso provide services related to supporting and maintenance of the device. Hewlett- Packard software includes IT information management and business intelligence applications(Vartiak,2016).Theoperationsofthecompanycanbebroadly categorized in several sectors which includes the enterprise storage and servers, imaging, personal system group and many more. The company markets to wide range of consumers, government agencies, small and medium sized businesses to over170 countries (Eesley, and Miller, 2018). About three hundred and twelve thousand employees work for HP which has a market capitalization of nearly two
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4HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD billion dollars. The company is traded on the New York Frankfurt’s Lima and Mexican StockExchanges(SikkaandLehman,2015).Thefoundersofthecompany established some management concepts concerning human resource management which includes active participation of the administration and emphasizing on the trust and openness within the organization which has been known as the HP way and becametheplatformforemployeesatisfactionandsuccessfulgrowthofthe company. Industry drivers: The main focus of Hewlett Packard is on reconstructing its business to gain longterm benefits. The company dissociated its stake to an IT service provider in Bangalore namedMphasis Limited. Besides it decided to expand its business in softwareandITservicesandagreedwithMicroFocusInternationalPlcand Computer Sciences Corporation (Sharma and Angmo, 2014). Host country profile: Hewlett Packard has some host countries. Among them, the primary host country of it is the United States. The company has its headquarter at Palo Alto, California in the US. The state of the USA is among the world’s foremost military and economic strength with added global interest. The country is highly developed and has the largest economy in the world as per nominal GDP and stands second among the largest economy as per PP (Leigh and Du, 2015). Though the country has a wide disparityinincomeandwealth,stillitrankswellintermsofsocioeconomic performances. PESTEL analysis: Hewlett-Packard is recognized to be the most significant hardware brand in the world. During the past few years, the company faced a significant hit as the sales of PCs has declined. A PESTEL analysis is thus evaluated based on how different forces have affected the company: Political: In the United States, personal ownership takes away most of the market systemanddecentralizeddecisionmakingauthorityisgiventobothprivate businesses and home. The amount of production from the business sector proves
5HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD the independent system in the US. About one third of this output productivity goes to the government (Gil de Zúñiga,Molyneux and Zheng, 2014). This scenario proves that both the private sector as well as the consumers itself has a significant role in the corporate area than the political position. The government plays a vital role in governing the business sector in terms of incorporating business laws which include protection of property right, and prohibition of certain business practices. Ensuring the safety of the product is another central issue that the government reflects in its laws. Economic: The economy of the United States is one of the largest in the world. The decision of the people develops a major of its market-based businesses. Records showed that the annual purchase of the consumers has an average of about 5 trillion dollars per year. This record proves that local customers are purchasing about 80% of the market goods. Studies on recent statistics showed that the US GDP is at $41,800 per capita with a growth of nearly about 3.5% (Kolmakov,Polyakova, and Shalaev, 2015). Due to the active business sectors, the economy of the US is very much pronounced. HP plays a vital role in the production sector of the country where it produces computers, engines, and other hardware related products. However, there are some economic issues in the US which can affect the prosperity of financial condition and the strategic plan needed for its growth. Problems like the rate of unemployment in the country, where reports showed that a considerable part of the young generations in the state fails to complete their graduation and hence leads to redundancy. Social: the United States is the third most populated country in the world. The total population estimates to around 296 million. A diverse society exists in the US in terms of nationality, religion, and race (Capraro, Corgnet,EspÃn and Hernán- González, 2017). This diversified nature of the country helps in performing open tradeandthearrivalofimmigrantlaborsinthecountry.Thisgrowingrateof immigrantsinthecountryleadstotheneedforcomputerandtechnology advancement. Still, there are some issues regarding employment in the country. About sixteen states in the country provide wages which are higher than the usual rate in per hour basis while 26 states offer national level wags to its workers. Thus
6HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD there is indifference among the payment of wages in the country. In addition to this, there is also discrimination in the number of female employees in comparison to male employees. The rate of unemployment in the US is directly related to the education level where it is seen that about 1.8% of the graduates are unemployed. Technological: Being one of the most technologically advanced countries, the major of its employment sector depends on computers and advanced gadget systems to do their work activity. This helped in the growth of the company of Hewlett-Packard. It is also noted that the job openings in the computer sector have also increased giving a chance to computer professionals to prosper in their field. People of the United States has accustomed themselves with the use of a computer-based system for paying bills, booking tickets, shopping and many more (Stayton and Mangematin, 2016). About 84 million citizens have internet access in their home. This shows that the country is technologically advancing. Environmental: the US has all total a diverse geographic feature, environment and biota scenario. This diversified nature attracts many tourists in the country from Japan, Brazil, Mexico, China, and Canada. Different countries have different legal norms concerning environmental factors. In the United States, Florida and Texas have different environmental liabilities in case of any environmental disasters. Before startingwiththenewmarket,thecompanyshouldlookintothestandardsof environmental laws which are required to operate their business such as the climate change,regulationsrelatedtoairandwaterpollution,lookoutforeco-friendly products and support towards renewable energy resources (Baranenko et al., 2014). The United States faces some of the environmental issues in consideration of the weather conditions. The country has recorded about 2188 weather disasters since 1980. The catastrophe of 2017 marked about $1billion economic damage disrupting daily life. Legal: Each state in the US has its government legal structure. Business operating in particular states comes under their respective legal scheme. The country of the
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7HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD US treats its national and foreign peoples equally. The employees are working there in the US can expect a fair trial from the judicial system of the country. A firm operating in the state needs to evaluate the legal conditions that can affect its business. Some of the statutory factors that need to be considered by Hewlett- Packard before entering in a new market are- discrimination law, Employment law, consumer protection law, anti-trust laws in computer system industry and health and safety law. Analysis of USA’s factors concerning the PESTEL analysis: Globalization- With the beginning of the 21stcentury, the United States stands on top in the economic ladder (Steger, 2017). The US has revived its economy by engaging with the rest of the world. But with the starting of the new era, the globalization of the US has slightly changed. Many criticisms have come from the citizenswheretwoorganizationsaremainlyaimedatoneistheInternational Monetary Fund and the other is the World Trade Organization, whom the US has helped to stand out and lead in terms n of creating disputes in trade within the country. Consumer behavior- The consumer behavior of the US plays a vital role in any international business that tends to take place in the US market. The consumer behavior of the United States is somewhat different from the rest of the western countries in the world. There is a variable factor that affects the consumer behavior in the US market place like demand and structure of the market, characteristics of buyers, the process of decision making by the consumers and their buying patterns (Dawes, Meyer-Waarden and Driesener, 2015). The crisis arising globally has led to consciousness among the consumers in America. They are now tending to move towards less expensive brands. The application of consumer credits is very much high. According to the data of the Federal Reserve, the debt of credit card exceeded USD 1 trillion setting a new mark in the American market. ThecapitalinvestmentintheUSsupportsadvancedtechnology-The commercialization of the advanced technology trends. US enterprises are dealing with science and technology leader in the world market.
8HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD Why go there? Due to all the economic, technological advancement, the United States stands as the most appropriate host country for Hewlett-Packard to spread its business out in the American market. HR theories: Universalistic approaches: Researches over the years have found that effective HR practices have led to the improvement of performance in the company. To improve the performance scale of Hewlett-Packard, the first approach of HR theories that can be applied is the Universalistic Approach. This universal HR practice includes comprehensive training, selective staffing and cross-utilization (Alam and Mukherjee, 2014). This theory states that people working in the firm possesses skills and knowledge that are valuable for the firm. Therefore, investing to increase the employee skills to get increased productivity depends solely on the firm. Configurational approaches: Todevelopabetterunderstandingofthestructureandfunctionofan organization, the configurational approach is very much required. The configurational approachprovidesastrategicplantotheorganizationbymaintaininginternal consistency between the different variables which has a strong influence on the efficiency of the organization (Bailey et al., 2018). The theory states there exists a minimum number of constellations in an organizational variable that reflects almost all types of existing corporate practices; hence coordination among those will result in the success of the organization. Contingency approaches: The contingency theory states that there exist certain situational factors that directly affect the relationship between the independent and dependent variables of anorganization.Independentvariablesarethecausesofthechangeinthe dependent variable whereas the dependent variable is the responses affected by the independent variable. The theory states that there is no specific way by which the organizational behavior can be changed, it solely depends on the prevailing situation
9HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD (JerryandSouai,2014).Therearecertainvariablesthataffectorganizational behavior, and the company needs to apply trial and error measure to identify those factors. HRM strategy Recruitment and selection: Recruitment and selection are one of the necessary policy that needs to implementedappropriatelyinanHRMstrategy.Managersofanorganization consider this process to be one of the most critical ones because from this process the best suitable individuals get selected for a particular post of the organization from a pool of applicants (Ekwoaba, Ikeije, and Ufoma, 2015). A screening process supports the process. In some cases, the screening process cannot always simplify the recruitment selection because of the presence of certain other factors like legal consideration, the pool of the applicants, the hierarchy of the organization, the speed of making decisions, selection criteria and the probationary period (Berman, 2015). Finding the best match for the intended post makes an organization beneficial in achieving success. It adds value to the organization. So to find out the best, strategic human resource approach is expected in the organization. After the selection process, retention of the employee is another major factor that organization should look upon by maintaining reduced turnover rates and increasing the morale of the workplace culture. Supporting this strategy increases the efficiency and the gain of profit of the organization. Training and development: To withstand the competitive environment in the market place, the company must invest in the training and development program of the employees (Kadiresan et al., 2015). It is the sole responsibility of the Human Resource Department of the company to provide proper training programs for the employees selected for a specific job position. There are several ways by which the training and development program of the employee can be enhanced like- 1.Developing a multi-rater feedback system
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10HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD 2.Conducting useful surveys for the employees 3.Developing a succession plan and leadership programs 4.Improving the overall performance management system 5.Designing applications for rewarding and recognizing the employee 6.Customizing the team building and providing solutions for the development of the company. ThehumanresourcedepartmentofHewlett-Packardhasnoticedthat employees in the company need an extended training development program including working in groups and basic employment programs. Reward management: Reward management is another essential part of the HRM strategy which helps in motivating the employees, maintain internal and external equity and helps to develop financial sustainability. There are two types of rewards namely extrinsic and intrinsic rewards. Extrinsic rewards satisfy the basic needs of the employee while the intrinsic rewards satisfy the esteem needs of the employee (Sultana, 2014). As a result of such bonuses and compensation program the business production output from the employees also increases. Apart from production, it raises the efficiency and cooperation among the workers. The following HRM strategies hence help in achieving theworkforce flexibility, quality,employeecommitment,adaptabilityandstrategicintegrationwithinthe organization. To implement this strategy, two types of designing policies of HRM has to be kept in mind: 1.Soft HRM- The elastic human resource model considers the employees as an essential resource for the company to gain competitive benefit (Ihuah, 2014.). In this model, utmost priority is given to the needs of the employees and the necessary strategies are taken to motivate them for work by providing reward and recognition. 2.Hard HRM- The hard human resource model treats the company employees as resources. It deals with the linking of the business planning process, the resources required for the business and the cost of the funds (Collings, Wood
11HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD and Szamosi,2018). The model identifies the need for workforce in the industry and manages the recruitment strategies of the company. Recommendation: Among the two approaches, the one that would be beneficial to the company solely depends on the company’s strategic plan. In the hard method, it is expected that a more productive workforce will be developed, but thebasicneedsoftheemployeeswillbelessfocused.Toachievegreat planning, strategic integration and high workforce flexibility it is recommended to use the soft approach of the HR model where the reward and recognition of employee performance will be more effective. As a result of which the employees will give their full dedication in the workplace thus achieving the expected gain from the competitive market. Comparative study of HR systems globally: Global HRM includes all the critical aspects of an organization like the payroll, talent management strategy that is operating on a global basis. 1.Organizational Performance: For any organization, the performance is verymuchimportant.Threesignificantareaswhichenhancethe performance of the organization are the development of the employees in the organization, management of compensation of the organization and the citizenship behavior of the organization. Globally it is seen that with the propertrainingandcompensationprogramoftheemployeesthe performance of the organization gradually increases. 2.Employee Commitment: The relationship between employee motivation andorganizationalcommitmentisdirectlyrelated.Organizational commitment is equal to that of emp,oyee commitment. Globally it is seen more the employees are motivated more they are committed towards the company’sobjectives.Employeeswithongoingcommitmentfeean emotionalattachmenttotheorganizationandthuswillhavegreater dedication to contribute to the company’s gain. 3.Workforce Flexibility: Maintaining workforce flexibility increase the morale, employeemotivationandtheabilitytoretaintheirtalent.Expanding workforce flexibility means increasing the teamwork rather than individual action.Usefulcollaborationduringtheworkinghourswill,therefore,
12HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD increaseproductivityandalsohelpinreducingtheeffectofchronic overwork. 4.Workforcequality:Workforcequalitymeansthattheemployeesare motivated to do their work, improve their skills to achieve better results. From the global analysis, it is seen that useful workforce quality comes fromthemanagementandthesystemoftheorganization.Any organizationlackingitwould,therefore,resultindeteriorationof performance as the employees will be less motivated by the administration itself. Analysisoforganizational,nationalandculturallyspecificissuesthat influence the development and implementation of HRM strategy: 1.Corporate culture: To demonstrate it, Charles Hardy’s model is used. The four classes of religion that is mentioned in the model include power, role, task and personal (Maclean, Harvey, and Clegg, 2016). The power culture includes radiating control from the center and is held by a few individuals in the organization and the influence of those few spread throughout the business. The role culture is based on the role that is played by individuals in the business and is characterized by a high degree of control with every individual in the organization. Here the power is determined by the position in the organization. The task culture is one of the dynamic types and the task done determines the team’s dynamicity. It helps in having capable teamwork productivity. Lastly, personal culture deals with individual people who are recognized as an essential and unique resource for the organization. 2.National culture:
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13HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD AccordingtoHofstede’stheoryofnationalculture,thereexistsix categories which help to define the national religion (Liu,Meng, and Fellows, 2015). This includes- Individualismvs.collectivism-Somesocietiesvaluetheperformanceof individual’srolewhilesomeothernationsvaluetheperformanceofthe teamwork.This has an important implication on how the employees are rewarded at work. Power distance- It is considered to be the limit up to which inequality is toleratedinanorganizationandemphasizesonthedelegationof empowerment autonomy. Masculinity vs. Feminity- It deals with the style of decision making. The masculine approach means a hard-edged approach with a more aggressive form of decision making while feminine approach means making decisions with a significant level of consultation and in a more intuitive manner. Uncertainty avoidance- it deals with the different risk-taking the attitude of different countries. It is concerned about avoiding uncertainty from a more entrepreneurial approach. Long term orientation- it deals with the time horizon while making decisions. Hofstedefoundthatinsomecountriesthereisaneedforlongterm orientations which leads to investment in appraisals. Indulgence vs. Restraint- Indulgence stands for the societies which encourage freegratificationofhuman,expressingthemfreelywhilesomeother organizationsarerestrainedfromsuchopennessandsuppressthe enjoyment. Conclusion: Participative management framework, workplace flexibility, and openness in the working culture foster the human resource management system of Hewlett Packard. Still, some essential HR theories needed to be strategized to increase the organizational performance management by using resources correctly, applying fair recruitment policies and by improving the training and development program for the employees. A need for a flexible workplace is thus needed for making the employees
14HUMAN RESOURCE MANAGEMENT AT HEWLETT-PACKARD more productive so the business of the company could flourish in the competitive market. Recommendations: Thus to gain the support of the stakeholders, specific management skills are required for the organization to adopt like communication between the organizational members and the stakeholders, the ability to negotiate and resolve conflict arising in stakeholders. The strength to address the issues does not always mean to get what the company wants but also to understand and manage the expectations of the stakeholders. Good leadership skill is an essential factor that drives the whole team in an organization. To gain the support of the stakeholders, it is necessary to have a good leadership skill to take the initiative in critical situations.
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