Management Learning Report: HP Leadership Challenges Analysis

This report analyzes the leadership challenges at Hewlett-Packard, focusing on organizational development through strategic management. It examines the changing leadership aspects across different CEO tenures, including Carly Fiorina, Mark Hurd, and Meg Whitman, and their impact on the compa...Read More

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Management learning
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Executive summary
Based on the article “Leadership Challenges at Hewlett-Packard: Through the
Looking Glass”, it was found that the report focused on the organisational development
through management of strategies considering the business organisation named Hewlett
Packard. The leadership aspects changed over time, which could be considered as responsible
for the implementation of leadership strategies and enable transformation. There were certain
obligations that enabled the leaders and Bard of directors to gain greater control over the
business processes and functions while at the same time, allowed meeting the legal and
regulatory requirements effectively too. It has also been found that a greater number of
scopes and opportunities were created, which also reduced the chances of risks and induced
both professional knowledge and management learning. This also favoured the process of
decision making, collaborative thinking, creativity, innovation and improved the skills and
potential of employees to achieve the business goals and objectives effectively. Moreover,
few recommendations were provided, which included the implementation of communication
strategies, use of democratic leadership style, integration of emotions with cognitions and
also understanding the feasibility before implementation of necessary actions.

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Table of Contents
Executive summary....................................................................................................................1
Analysis......................................................................................................................................3
Role as CEO in the organisation................................................................................................7
Recommendation and implementation.......................................................................................8
References................................................................................................................................10

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Introduction
Considering the article “Leadership Challenges at Hewlett-Packard: Through the
Looking Glass”, the report presents us an idea about the various issues and challenges related
to leadership at Hewlett-Packard and also how the organisational development can be
possible with the help of strategic management and various leadership strategies too. The
report also presents relevant information and data about how being a CEO of the
organisation, it can assist me to act in a transformational manner while at the same time,
promote collaborative thinking and ensure management of change within the organisation
along with facilitation of organisational growth and development too (Laperche & Picard,
2013).
The objective of the report is also to make sure that a proper understanding about the
change in leadership aspects over time is achieved, furthermore, facilitate the organisational
change management along with organisational growth and development too (hp.com, 2020).
This will also allow for understanding what is the right thing to do and what may be wrong,
which shall further assist the CEO or manager of the organisation to implement the right
leadership strategies and transform the entire organisation through consistent growth,
development and enhanced business efficiency.
Analysis
According to Larcker & Tayan (2011), it has been found that the leadership aspects
change from time to time, which has helped in the management of changes in strategies,
approaches along with the emergence of various issues and challenges. This often affects the
senior management and also the various members at the board level, which has also created
significant impact on the corporate strategies and approaches that are managed within the
organisation. There are various obligations of the Board of Directors that are responsible for

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the management of individual roles and responsibilities, furthermore, implement a proper
strategic direction that can facilitate greater control over the business functions and processes
along with ensuring compliance with the legal and regulatory aspects much more
comprehensively (Rowland & Hall, 2014).
The working environment and overall business environment within which, the
company operates, has been changing consistently. In terms of stock price history and other
related events, during the year 1999, Florina becomes the CEO, at 2001, the company
enabled acquisition with Compaq and it drew a number of positive changes within the
organisation (hp.com, 2020). Moreover, in the year 2005, Hurd becomes the CEO and soon,
it was followed by the scandal, which damaged the brand image and reputation to a certain
extent (McConnell, 2014). In the year 2010, Apotheker became the CEO and then in the year
2011, the spin off or sales of PC units further improved the brand’s ability to achieve the
desired sales revenue. At present, Whitman became the CEO and has been managing the
organisation till now. Also, the revenue generated has increased consistently every year,
which also proved the fact the environment within which, the company operates has been
changing consistently over time (Ungaretti et al., 2015).
There are various legislations, laws, rules, regulations, information as well as
intelligence sources that are responsible for the evaluation of scopes and opportunities
required to sustain in the competitive business environment. These legislations are also
responsible for ensuring that the strategic direction of the organisation is created and proper
risk management control techniques are developed, which could help in maintaining integrity
and also fulfil the legal and regulatory requirements perfectly (Noruzy et al., 2013). The
legislations have also allowed HP to evaluate as well as approve the corporate strategies to be
implemented and at the same time, recruit or even terminate a CEO, whenever required.

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Based on information sources, the acquisition of Compaq has also created great opportunities
to outweigh the risks associated with the business functioning (Rothaermel, 2016).
Often changes have been experienced at HP due to the reduction of reporting units
and also the replacement of profit sharing program with the performance based compensation
system, which also facilitated individual productivity and also affect the marketing and sales
for the organisation. Also the integration of cultural aspects have created significant changes
within the organisation. The capacity, skills and competence of individuals and groups are
quite good, which has also helped in the approval of certain deals along with making
decisions that are needed to improve the organisational effectiveness (Goetsch & Davis,
2014). Moreover, the CEO also has acquired the skills and ability to change his mind at
certain stages with the changes within the organisation, which also encouraged training and
development sessions required to enhance the skills, knowledge and confidence among the
management as well as among the various organizational members. Due to the good skills
and competence, the CEO, i.e., Mark Hurd, in the year 2005 to 2010, also aggressive changes
were made, which included restructuring of the Board,, reassigning the employees to
divisional groups, which might be evitable and necessary for innovation, but always, the
innovation might not bring significant improvements that are required actually (Hill et al.,
2014). This could also though create some change and enhance the capability of the
organisational members to act accordingly and contribute to their potential for the fulfilment
of organisational goals and objectives effectively (Wang, Waldman & Zhang, 2014).

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There are several barriers while introducing changes in the organisation such as
limited understanding or knowledge about how the change management could benefit the
organisation and also failing to understand its impact (Morden, 2016). The lack of proper
communication management, poor support by the management, lack of skills, knowledge and
negative attitudes and behaviours of employees, all are considered as major barriers to the
introduction of change and this could also result in financial loss, poor work quality, failed
scopes and opportunities and lower morale of employees. It was found that the replacement
of the profit sharing system and reduction of reporting units, all were part of the changes,
though these were found to be extreme and not effective too (Shin et al., 2015). At certain
stages of the business operations, it was also found that the confidence level of the
management lacked, which represented the fact that each and every innovation perspective
might not be a sign of improvement thereafter (Hoch, 2013).
The leader played a major role in the introduction and management of changes within
the organisation where the improvements are needed to reach the desired level of
effectiveness within the organisation (Lorinkova et al., 2013). From the statement of Larcker
& Tayan (2011), it was understood that the leadership has been doubtful about the skills and
confidence possessed by the management, which also could be associated with the
establishment of a good corporate culture through innovation at HP. On the other hand,
during the years in between 2005 to 2010, Mark Hurd made sure to implement some
aggressive changes to the organisational functions and processes which allowed for
restructuring of the organisation and also the corporate sales group’ stopped and management
departments reduced to a certain extent (Chemers, 2014). This has been found to be
beneficial for HP for the improvement of accountability along with gaining better control
over the budgetary aspects and improved flow of cash. The leader, i.e., Meg Whitman, also
with the help and support from the Board of Directors, managed to make decisions regarding

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investments along with providing necessary benefits to the various stakeholders (Larcker &
Tayan, 2011). The leader also made sure to acquire the opinions and ideas of the employees
to facilitate the process of decision making and ensured collaborative thinking, creativity and
innovation furthermore.
Role as CEO in the organisation
Considering my role as the CEO of the organisation, it is my duty not only to ensure
that the business functions and processes are managed properly, but also to promote
collaborative thinking through management learning and innovative thinking as well. As a
CEO of the organisation, I would like to use disciplinary power and at the same time,
maintain a steady flow of operations. I would also like to arrange reward systems, programs
and incentive schemes for keeping the employees motivated and encouraged at work,
furthermore, keep their morale sky high. Moreover, this would also help in exchange of
rewards and benefits based on performance, furthermore, could allow me to look ahead
strategically and guide in the right direction.
As the CEO of HP, I would also like to go beyond the regular day to day operations,
rather prioritise on the development and implementation of strategies required to achieve the
desired level of performance and success. Moreover, I would also like to build teams,
maintain a proper level of motivation and encouragement at work, thereby, collaborate with
the employees and understand their valuable ideas and opinions to foster effective decision
making. I would arrange training sessions for enhancing their skills, knowledge and
expertise, furthermore, push the employees achieve greater performance along with the
achievement of personal and professional growth too.
To integrate own emotions with cognitions, I would also make sure to listen
cautiously to the ideas of each and every organisational members, which is required to

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enhance the decision making process efficiency, thereby, allow to maintain a positive
workplace culture and maintain positive behaviours and emotions all throughout.
To manage work based relationships properly, I would be aware of cultivating trust to
ensure that the organizational members complete their job roles to a high standard while at
the same time, respect each other’s values and opinions. This would also allow me to
promote awareness, openness and also manage effective communication through emails,
letters, group discussions, etc. I would also try to maintain positive body language, use good
listening skills, maintain eye contact and also interpret assertiveness to manage smooth flow
of information, thereby, resolve conflicts, misunderstandings and also reach the satisfactory
outcome.
The personal leadership styles are regulated and monitored with the help of finding
out whether the continuous motivation and support by the leaders proved to be effective for
the employees to share their individual ideas, opinions and responses that could contribute to
the enhanced business performance. I have maintained the democratic leadership style to
acquire the ideas, opinions and responses of the employees and ensure making effective
decisions that are required to improve the business performance and effectiveness.
Recommendation and implementation
 There are various alternatives and solutions to various strategic problems and issues
that are associated with the business functioning. There might be strategic issues and
problems arising due to the management of changes, which might be incompetent and
ineffective, thereby, further, affect the business functioning. The recommendations
are as follows:

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 It is recommended to implement proper communication strategies and learning
solutions so as to address the issues and problems, thereby prevent risks and also
enhance the efficiency of change management process
 It is also recommended to use the democratic leadership style and undertake
transformational approaches for creating significant positive impact of change and
enhance the effectiveness of business processes as well as the people associated with
it.
 The most suitable leadership style for the successful implementation of change that is
recommended has to be the democratic leadership style, which could benefit the
organisation in maintaining a good corporate culture too
 The management of training and developmental programs has been recommended too
for improving the skills of employees and also their expertise, knowledge and ability
to perform t their potential.
 The integration of own emotions with cognitions would also be beneficial and has
been recommended too for undertaking both transformation and transactional
practices required to promote collaborative thinking, creativity, innovation and
emotional intelligence all throughout.
 It is also recommended by me to bring organisational change with the help of
assessing what needs to be achieved and check the feasibility of business operations
and processes so as to facilitate innovation, creativity and better potential to resolve
the strategic issues and problems much more comprehensively.
 It is also recommended to provide rewards and benefits to the employees for keeping
them motivated, encouraged and perform to their potential, thereby, guide them
towards the right strategic direction for the accomplishment of business goals and
objectives effectively.

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References
Chemers, M. (2014). An integrative theory of leadership. Psychology Press.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: Theory & cases:
An integrated approach. Cengage Learning.
Hoch, J. E. (2013). Shared leadership and innovation: The role of vertical leadership and
employee integrity. Journal of Business and Psychology, 28(2), 159-174.
hp.com. (2020). Retrieved 19 February 2020, from https://www8.hp.com/us/en/home.html
Laperche, B., & Picard, F. (2013). Environmental constraints, Product-Service Systems
development and impacts on innovation management: learning from manufacturing
firms in the French context. Journal of Cleaner Production, 53, 118-128.
Larcker, D. F., & Tayan, B. (2011). Leadership challenges at Hewlett-Packard: Through the
looking glass. Rock Center for Corporate Governance at Stanford University Closer
Look Series: Topics, Issues and Controversies in Corporate Governance No. CGRP-
21.
Lorinkova, N. M., Pearsall, M. J., & Sims Jr, H. P. (2013). Examining the differential
longitudinal performance of directive versus empowering leadership in
teams. Academy of Management Journal, 56(2), 573-596.
McConnell, D. (2014). Implementing computing supported cooperative learning. Routledge.
Morden, T. (2016). Principles of strategic management. Routledge.

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Noruzy, A., Dalfard, V. M., Azhdari, B., Nazari-Shirkouhi, S., & Rezazadeh, A. (2013).
Relations between transformational leadership, organizational learning, knowledge
management, organizational innovation, and organizational performance: an empirical
investigation of manufacturing firms. The International Journal of Advanced
Manufacturing Technology, 64(5-8), 1073-1085.
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Rowland, C., & Hall, R. (2014). Management learning, performance and reward: theory and
practice revisited. Journal of Management Development.
Shin, Y., Sung, S. Y., Choi, J. N., & Kim, M. S. (2015). Top management ethical leadership
and firm performance: Mediating role of ethical and procedural justice
climate. Journal of Business Ethics, 129(1), 43-57.
Ungaretti, T., Thompson, K. R., Miller, A., & Peterson, T. O. (2015). Problem-based
learning: Lessons from medical education and challenges for management education.
Academy of Management Learning & Education.
Wang, D., Waldman, D. A., & Zhang, Z. (2014). A meta-analysis of shared leadership and
team effectiveness. Journal of applied psychology, 99(2), 181.