The two founders of HP, William Hewlett and David Packard, from the beginning de
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The two founders of HP, William Hewlett and David Packard, from the beginning developed a Management Style never used before on a large company. They renounced the "hire and fire" Management Style (to employ people only for a big project and then fire them). In the US economical crisis of 1974, they avoided layoffs (dismissals) by a four-day workweek. This made a Corporate Culture unique in the US Another measure, more recently adopted by Apple (Steve Wozniak, who worked at HP, later co-founded Apple) and Google, is that they treated the employees as family members. They called each other by the first name. Even the two founders were known as Bill and Dave. Employers participated in the company with stock options to increase motivation and involvement in the companies objectives. Also they were paid additional premiums when the company was successful (profit sharing). The HP Way included also extensive social benefits, as for example scholarships for the employee's children. In the late 1950s, William Hewlett and David Packard revisited the company's objectives. These were the guidelines for "all decision-making by HP people". With slightly changes, they are still valid today. The objectives they established (to be achieved through teamwork) are: "Profit, Customers, Fields of Interest, Growth, Our People, Management, and Citizenship". This established a new Corporate Culture in Silicon Valley and many firms tried to imitate The HP Way" adopting measures like stock options, innovative work rules, teamwork, and profit sharing. Nowadays, "The HP way" is seen as model for Corporate Culture globally accepted. 1 2 Question: How does HP motivate its employees (Maslow's Pyramid of Needs)?Explanation / Answer
Since the style of a leader is also ascertained by the situation, Blake & Mouton implied that the best commencing spot within the Managerial Grid can be realized between the 5.5 (i. e. middle of the road) & the 9.9 (i.e. team management).
They named the position in between as the “green zone”.
The leadership style is only effectual when other styles are employed as per circumstance.
They suggest that the fundamental leadership style must be acquired from the green zone.
It is prudent to remove all emotions towards the personnel & to completely concentrate on the production.
But when sentiments are running high among personnel, a leader would sail through by concentrating his attention on the personnel’s requirements, even if at the cost of production.
It is thus more effective to apply different leadership styles.
For instance, if one’s firm is in the middle of a merger / certain other significant alteration, then it can be acceptable to place more emphasis on staff than on the production, to direct & reassure them in a potentially tough time. Similarly, when encountered with an emergency/ economic adversity / physical risk, concerns about personnel may be kept to one side, for the short run at least, to obtain good outcomes & efficiency
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