BANKING ACADEMY OF VIETNAM

BTEC HND IN BUSINESS (ACCOUNTING)

ASSIGNMENT COVER SHEET
NAME OF STUDENT
REGISTRATION NO.
UNIT TITLE
ASSIGNMENT TITLE
ASSIGNMENT NO
NAME OF ASSESSOR
SUBMISSION DEADLINE

V Quang T (Leader); Bi Mnh Trng

F04182; S05182
Unit 3: Organisations and Behaviour
Hewlett Packard
1 of 2
MBA Le Thu Hanh
06/ 11/ 2014

I, V Quang T (Leader); Bi Mnh Trng hereby confirm that this assignment is my own work and
not copied or plagiarized from any source. I have referenced the sources from which information is
obtained by me for this assignment.

________________________________
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_________________________
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FOR OFFICIAL USE

Assignment Received By:
OB A1 QCF SEPT 2014 BAV

Date:

Unit Outcomes
Outcome

Evidence for
the criteria

Feedback

Assessors decision
First
attempt

Understand the
relationship
between
organisational
structure and
culture
LO1

Understand
different
approaches to
management
and leadership
LO2

Compare and
contrast
different
organisational
structures and
culture

1.1

Explain how the

relationship
between an
organisations
structure and
culture can
impact on the
performance of
the business

1.2

Discuss the
factors which
influence
individual
behaviour at
work

1.3

Compare the
effectiveness
of different
leadership
styles in
different
organisations

2.1

Explain how
organisational
theory
underpins the
practice of
management

2.2

Evaluate the
different
approaches to
management
used by
different
organisations

2.3

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

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Rework

Internal
Verification

Outcome

Evidence for
the criteria

Feedback

Assessors decision

Internal
Verification

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)
Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE

DATE

DATE

NAME:.........................................................................................

(Oral feedback was also provided)

STUDENT SIGNATURE
NAME :..............................................................................
FOR INTERNAL USE ONLY
VERIFIED
YES
NO
DATE
: ...........................................................................
VERIFIED BY : ...........................................................................
NAME
: ...........................................................................

Cases Scenario
COMPANY Hewlett-Packard (note: the following article is taken from the text
Derailed: Five Lessons Learned from Catastrophic Failures of Leadership by
Tim Irwin Ph.D. (Author), 2009 pages 40 to 44 but tailored for this assignment
only. Some of the organisational positions have change over time).

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A NEW BUT UNBEFITTING LOOK

Before joining H-P, Fiorina had already gained a reputation for her hard-charging,
high-fashion style. She fit well in sales and marketing circles where self-promotion
was acceptable and the limelight was your best friend. She felt H-P should join that
circle. "In certai'?- respects, Fiorina did exactly what she had been asked to do,"
explained a 2005 Time magazine article. "Hewlett-Packard ... was a pocket-protector
paradise, its culture defined by the H-P way: paternal, collaborative, entrepreneurial,
community minded and inconspicuous .... Fiorina was brought in to drive a sta~e
through that squishy culture's heart .... The company needed to reposition itself in a
new, networked environment. Fiorina ... was well versed in the dangers of cultural
inertia."1
It took little time for Fiorina's cultural makeover of H-P to take hold ... and begin
turning sour. While no one was arguing the need for a more unified front, H-P
insiders began to sense that Fiorina's change strategy was less about H-P and more
about promoting its new boss.
In attempts to confront the problems that ailed H-P, Fiorina shaved the number of HP's business units from eighty-three to only a handful and consolidated executive
authority through her office. She then stemmed financial losses in the PC division
through extensive layoffs.2 Although the measures allowed the company to cut
costs, they were in stark contrast to the long admired, fraternal culture of the
company, and offended disciples of the H-P Way.
Fiorina's make-or-break moment occurred in 2002, when she pushed through a
controversial merger with Compaq, overcoming opposition from board member and
Hewlett family member Walter Hewlett in the most expensive proxy battle ever
fought. Although the merger made H-P the immediate market leader in personal
computers, Fiorina's treatment of Walter Hewlett showed a gross disregard for H-P's
roots, something her critics had been charging almost from the beginning.
Had the merger proved to catapult the company into the limelight as Fiorina
expected, it is reasonable to think she might still hold her position. As it happened,
however, the $19 billion acquisition and merger with Compaq fell well short of profit
targets. Not only did this bring into question Fiorina's leadership, it brought out
another side of the boss that few had yet to see.
"In 2003," explained the Time article, "despite Fiorina's promises that operating
margins would reach 3%, the company's PC division earned a meagre 0.1 % on $2
1.2 billion in sales. And last August, the company's Enterprise Servers and Storage
Group, which sells to corporate customers, reported a $208 million loss for the

1 Bill Saporito, et. al, "Why Carly's Out: HP's ousted CEO, Carly Fiorina, tried to revive the Silicon Valley legend
with the vision thing. What the company needs is far more fundamental," Time, 21 February 2005.

2 Pui-Wmg Tam, "Hewlett-Packard Board Considers a Re-organizarion Management Moves Stem from Performance
Concerns; Helping Fiorina 'Succeed,"' Wall Street Journal, 24 January 2005.

OB A1 QCF SEPT 2014 BAV

quarter. As a furious Fiorina reacted by publicly firing "the server unit's boss and two
others, the board began to take a harder look at her performance." 3

As the H-P insiders and the broader business community became more confident
the Compaq merger was a bust, Fiorina became more defensive about her ability to
execute the company's strategy. She turned, instead, to blaming others for the
company's failure to meet earnings expectations. The board then began suggesting
she spread the leadership load, perhaps to a new chief of operation. She strongly
resisted the notion. While many had their hunches, the makeover had not been so
clearly personal to Fiorina until then.
"The tide really began turning against Fiorina," Business Week writer Ben Elgin
wrote, "following H-P's massive profit shortfall in the third quarter of [2004] . .. H-P's
second miss in five quarters ... Although Fiorina fired three top sales executives for
the miss, the board's doubts about its CEO grew. At the same time, the board's
prodding of Fiorina to bolster H-P's operations talent went largely unheeded." 4
As Fiorina held firm, H-P's stock price continued to fall at one point to 55 percent
below its pre-Carly price. The board tightened its position and eventually made it
clear to Fiorina that they planned to shift some of her operational responsibilities to
her direct reports, potentially chief strategy and technology officer Shane Robison.
According to sources close to the discussions, it was their intention not to fire Fiorina
in this process but rather to help her succeed. "The board felt," wrote Pui-WingTam
in the Wall Street]ourna4 "Ms. Fiorina had great abilities."5
Fiorina strongly resisted this plan, citing two primary reasons: I) Robison's lack of
experience in running a company, and 2) it was the CEO's prerogative to delegate
operations, not the board's. Because of her resistance, the board asked for her
resignation, on the grounds that they needed a leader with more operational talent.
"As a light rain drizzled outside," explained Business Week's Ben Elgin, "the
directors stewed over their star CEO's failure to execute her ambitious plan for the
company. In addition, directors were concerned about the 'board's inability to work
constructively with [Fiorina],' according to an H-P insider. The next day, they asked
Fiorina to step dow~. And on Wednesday, Feb. 9, at 5 a.m. Pacific time, H-P stunned
the world, announcing Fiorina's dismissal, ending her five-and-a-half year stint atop
one of the legends of Silicon Valley." 6 The board finally concluded, explained a Time
article, "that Fiorina had one significant weakness as a chief executive: she just
wasn't very good at running the business." 7
3Saporito, "Why Carly's Out."
4 Ben Elgin, ''The Inside Story of Carly's Ouster," Business Week, 21 February 2005.
5 Pui-Wing Tam, "Fallen Star: H-P's Board Ousts "Fiorina as CEO-Amid Languishing Stock, Computer Chief Resists
Pressure to Delegate-A Big Merger's Missed Goals," Wall Street Journal, 10 February 2005.

6 Elgin, "The Inside Story of Carly's Ouster."

7 Saporito, "Why Carly's Out."
OB A1 QCF SEPT 2014 BAV

On the day the ouster was announced, some employees raised their glasses and HP's stock price jumped as much as 10.5 percent at one point, settling up 6.9 percent.
"The stock is up on the fact that nobody liked Carly's leadership all that much,''
said Robert Cihra, an analyst with Fulcrum Global Partners." The Street had lost all
faith in her and the market's hope is that anyone will be better." 8
WHY FIORINA EVENTUALLY FACED DEMISE
Fiorina's rock-star image and tendency toward self-promotion exacerbated the
tensions brought on by her operational changes. Morale dropped as did the very
identity that had made H-P a computing icon. "She had a flair,'' described Tam in the
Wall Street Journal, " for marketing and public speaking, and jetted world-wide to
visit customers, employees, shareholders and world leaders. She greatly expanded
H-P's fleet of corporate jets and attracted criticism for everything from her hairstyle to
her designer suits."9
In the end, her high-profile style, penchant for travel in Gulfstream jets, and abrupt
management methods were deeply at odds with the paternal, understated culture of
H-P. She was a self-assured, extroverted salesperson in a company full of quiet,
introverted engineers. If anything, she needed to lean to their side of the spectrum,
not the other way around. Nearing the end of Fiorina's tenure, Richard Hagberg, a
consultant from San Mateo, California, told her that "rock stars were probably not
going to be accepted by ... a bunch of engineers." But instead of reaching out,
Fiorina isolated herself. Unlike the leaders before her, she rarely socialized with H-P
staffers.10
"Ms. Fiorina's leadership was also marked by a drop in morale," wrote Wall Street
journal's Pui-Wing Tam. "She had ... many fans in the business world. Yet inside H-P,
she was a highly polarizing figure who stirred deep animosity from many veteran
employees. "11
To the board and many on the outside, Fiorina symbolized the very image the
company needed to prop them back on track. But in this case, opposites did not
attract. Over time, the perception of Fiorina as a self-promoting, stubborn aristocrat
could not be the face of such a collegial company.
The case above has been based on a real life organisation, but details have
been changed for assessment purposes and do not reflect the current
management practices. Students are encouraged to search the internet for
cross references in answering this assignment.
8 Paul R. La Monica, "Fiorina Out, HP Stock Soars," CNNMoney.com, February 10, 2005. Available at http://money.
cnn.com/2005/02/09/technology/hp_fiorina/index.htm.

9 Tam, "Fallen Star."

10 Saporito, "Why Carly's Out."
11 Tam, "Fallen Star."
OB A1 QCF SEPT 2014 BAV

See also
http://www.amazon.com/Derailed-Catastrophic-Failures-Leadership-NelsonFree/dp/1595555498
http://www.hp.com/country/us/en/uc/welcome.html
http://www8.hp.com/us/en/hp-information/executive-team/team.html
http://www8.hp.com/us/en/hp-news/press-release.html?id=991498#.UpMjetLI2sQ

OB A1 QCF SEPT 2014 BAV

You are employed in a consulting agency. You are currently assisting a

consultant and have been given specific responsibility for the areas outlined
below:
Prepare a report, citing relevant research, which addresses the following
tasks:
Task 1

From your investigation compare and contrast the past and present
expected different organisational structures and culture of Hewlett-Packard.
1.1

Explain how the relationship between Hewlett-Packard structure and culture

can impact on the performance of the business
1.2

Discuss the factors which influence individual behaviour at work in HewlettPackard

1.3

Task 2

Compare the effectiveness of the likely different leadership adopted by

Hewlett-Packard with Carly Fiorina and the current leaders.
2.1

Explain how organisational theory underpins the practice of management

used by Hewlett-Packard.
2.2

Evaluate the different approach used by HP

industries in Vietnam.

as

with

other

computer
2.3

Note Support your answer by presenting facts in the case as well as by

referencing external sources of information.
GRADING
Pass

is achieved by meeting all the requirements defined in the assessment

criteria.

Merit

Identify and apply strategies to find appropriate solutions.

(M1)

Characteristics / Possible Evidence Use of comparative chart is

sufficiently detailed to show that an effective approach to study and
research has been applied to both organisations.

OB A1 QCF SEPT 2014 BAV

Select and apply appropriate methods.

(M2)

Characteristics / Possible Evidence Appropriate methods have been

applied in organizational structure, culture and approaches to
management related to given organisations as well as sources are
justified.
Present and communicate appropriate findings

(M3)

Characteristics / Possible Evidence An appropriate structure and

approach has been used and logical and coherent arguments has been
presented related to work behaviour, individual differences, personality
and/or traits

Distinction Use critical reflection to evaluate own work and justify valid conclusions
(D1)
Characteristics / Possible Evidence creation has been used to
generate and justify valid comments on approaches to management
and style of leadership.
Take responsibility for managing and organizing activities

(D2)

Characteristics / Possible Evidence independence demonstrated and

substantial activities have been planned, managed and organized
related to evidence in managerial roles authorities and/or reference to
leadership activities.
Demonstrate convergent, lateral and creative thinking

(D3)

Characteristics / Possible Evidence report has been prepared with

care and clearly demonstrates the learners thinking, innovation and
creative thought used.

OB A1 QCF SEPT 2014 BAV

PRESENTATION
1. The assignment should have a cover page that includes the assignment title,
assignment number, course title, module title, Lecturer/tutor name and
students name. Attach all the pages of assignment brief/cover sheet with your
report and leave them blank for official use.
2. Ensure that authenticity declaration has been signed.
3. This is an individual assignment.
4. Content sheet with a list of all headings and page numbers.
5. A fully typed up professionally presented report document. Use 12 point Arial
or Times New Roman script.
6. Your assignment should be word-processed and should not exceed 3,000
words in length.
7. Use the Harvard referencing system.
8. Exhibits/appendices are outside this limit.
9. The assignment should contain a list of any references used in the Report.
NOTES TO STUDENTS FOR SUMMISSION

Check carefully the submission date and the instructions given with the
assignment. Late assignments will not be accepted.

Ensure that you give yourself enough time to complete the assignment by the
due date.

Do not leave things such as printing to the last minute excuses of this nature
will not be accepted for failure to hand-in the work on time.

You must take responsibility for managing your own time effectively.

If you are unable to hand in your assignment on time and have valid reasons
such as illness, you may apply (in writing) for an extension.

Failure to achieve a PASS grade will results in a REFERRAL grade being

given.

Take great care that if you use other peoples work or ideas in your
assignment, you properly reference them in your text and any bibliography.

NOTE: If you are caught plagiarizing, the University policies and

procedures will apply.

OB A1 QCF SEPT 2014 BAV

HEWLETTPACKARD

Prepared for:
Lecturer: MBA Le Thu Hanh
Subject: Organisations & Behaviour
Banking Academy, Hanoi
BTEC HND in Business (Finance)
Prepared by:
Group 17
Student: V Quang T (Leader); Bi Mnh Trng
Class: F07
Word number: 3200 words

Submission date: 06 November 2014

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Table of Contents
Introduction..............................................................................................................................12
1.1: Compare and contrast different organisational structures and culture:...............................1
Carly Fiorina:..................................................................................................................1
Meg Whitman:.................................................................................................................1
1.2: Explain how the relationship between an organisations structure and culture can impact
on the performance of the business............................................................................................2
1.3: Discuss the factors which influence individual behaviours at work:..................................2
Internal factor:.................................................................................................................2
External factor:................................................................................................................3
2.1: Compare the effectiveness of different leadership styles in different organisations...........4
2.2: Explain how organizational theory underpins the practice of management.......................5
2.3: Evaluate the different approaches to management used by different organizations...........5
Conclusion..................................................................................................................................7
Appendix....................................................................................................................................8
1.

Leadership of the Combined Company (HP and Compaq):...........................................8

2.

HewlettPackard Official Board (2014):........................................................................9

References................................................................................................................................10

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Introduction
HewlettPackard Company (HP) is one of the very first innovative company in the
computer industry. As its two cofounders are considered as the ones who set up the startup
culture of Silicon Valley, HewlettPackard is also might be known as the founder of the
world today. The company is wellknown for its HP Way, what Bill Hewlett and David
Packard have created and deeply set into HPs culture and structure as the core rules and
values. HPs undeniable success today has been through so many periods, both the ups and
the downs, which mostly would be discussed in this report, the authors hope that it could
provide a useful personal perspective for further knowing in the future.

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1.1: Compare and contrast different organisational structures and culture:

In this very first part of the report, the authors would show and explain about the
structures and culture of the HewlettPackard company, as the differentiated types between
Carly Fiorinas times and the present CEO Meg Whitmans would be mentioned in the table
below:

Past
(Carly Fiorina)

Present
(Meg Whitman)

Structures

Flat and wide;

by Product;
Centralized

Flat and much wider;

By Function;
Decentralized

Culture

Power Culture

Task Culture

Carly Fiorina:
Structure:

~ Flat and wide: After the merger with Compaq, Fiorina created HPs structure to have 3
levels: the first and the highest is Fiorina herself, as being Chairman and CEO; the second
level has 3 branches; and the third has fours (Appendix 1).
~ by Product: Fiorina divided the company into different parts, based on the line of products,
which are: Printing and Imaging; Access Devices; IT Infrastructure; Services (Appendix 1).
~ Centralized: Fiorina worked with her executive team only, as her decision was not to keep
so many people in that team, she placed all the others to lower levels in much less quantity of
members (Gifford, 2010; PoliticalCorrection.org, 2009), which made all the powerful
decisions in HP belonged to only her.
Culture:
~ Power Culture: Fiorina has gained all the power as her properties, just by deleted many
group names on HR list, assigned and only worked with her own team, all the decisions of
HP belonged to her (Gifford, 2010).

Meg Whitman:
Structure:

~ Flat and wide: The structure also has 3 levels, but compared to Fiorinas, the distribution is
much wider: top level has 12 Directors included Whitman; second level has 13 Managers;
third lower level has 28 Supervisors (Appendix 2). This type of structure gives Whitman
chances to be closer to her employees, which is compatible to her leadership style (this issue
will be discussed in the next parts).
~ by Function: HPs structure is now being categorized into departments by naming
differentiated functions. For example, Whitman directly manages the CFOs department
(financial function), which has smaller missions are Interim Control & Account and Treasurer
& Analytics inside, and Communication & Marketing department (media function), which
brings within smaller missions of Actionable Customer Intelligence and Channel Marketing,
etc. (Appendix 2).
~ Decentralized: Whitman invited employees to come back to offices for being closer to
executives, she listens to and gives power to her employees opinions more, as she keeps her
promise of doing away with HPs dense bureaucracy (Coyle, 2013).
Culture:
OB A1 QCF SEPT 2014 BAV
1

~ Task Culture: Whitman has cleared out the distance between internals, just for putting
more and more focus on the results of every teams and employees satisfaction at work (Bort,
2012; Parker, 2014). At her own executive team, she puts the other directors on the same
level with her (Appendix 2), just not like Fiorina the Dominator (Appendix 1).

1.2: Explain how the relationship between an organisations structure and culture can
impact on the performance of the business
HP between Carly Fiorina and Meg Whitmans dominations are simply the diverse
HP. Types of structure and culture the 2 CEOs applied have brought far different results in
many aspects of HP.
When Fiorina sat on the throne, the companys culture and structure has had deep and
wide conflicts in every single corner. Fiorinas power culture was simply not suitable with
HPs structure, as to a huge company like that, she cannot make every single one obey her.
Before Fiorina, in great 60 years, HPs 2 cofounders featured the harmony between internals
as family members, with longterm commitment and promise of sustainable jobs (Groeger,
2014), she just erased that history by having fired 18,000 HPs relatives in her term of 6 short
years (PoliticalCorrection.org, (2009). Fiorinas consequence of actions absolutely made even
the most lenient one in HP be angry. As the seniors executives start to disagree in public
(Gifford, 2010), the conflicts between structure and culture based on Fiorinas thoughts began
to reveal itself and HPs reputation has been cast down with no mercy, and the longlasted
prestige of David and Bills shadow even received criticism from their later generations when
Fiorina decided to merge Compaq with HP (Gifford, 2010). On the same path, HPs
employees benefits couldnt be guaranteed, as they were impossibly feel spiritually
comfortable working with an aggressive woman who challenged their beloved former
leaders core values.
Meg Whitman used to not receive trust when she was assigned to be HPs CEO, she
was considered as a woman who is lack of a HPs vision (Pendola, 2013). Through all those
mockery, Whitman has proved that she does have a vision, and that vision even is compatible
with the HPs undeniable core values. Whitmans Task Culture does really fit the HPs
structure, she broke down the walls between structural levels (Coyle, 2014). Her actions of
recreating what had always existed while Bill and Dave were there did satisfy not only HPs
people, but also the public who cares about the company. HP has regained its reputation in
those recent years, as an innovative and forwarding technology company, not an old and
dying symbol anymore (Mims, 2013). Whitmans plan for HP Turnaround has been public
and till now it did make people believe in it. There is clarity and that is going to translate
into increased sales, said Majdi "Mike" Daher, CEO of Denali Advanced Integration (Burke,
2014). And comes along with the externals trust, the union of HPs inside people does
improve. They are not afraid of being suddenly and massively fired anymore, their new CEO,
their new leader has made it written down: No more cuts! (Hesseldahl, 2014). HPs
employees benefits and their families therefore are assured.

1.3: Discuss the factors which influence individual behaviours at work:

Internal factor:
1. Personalities:
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2

o Openness to experience: As HP desires to find changetheworld people,

openminded ones seem to easier develop and love working in the company.
Its a chance for the employees, as their responsibility is to make the world be
a better place to live and work in, and HP will help them to do it (Hp.com,
2014).
o Extraversion: Carly Fiorina, former CEO of HewlettPackard, enjoys being
on stage speaking before crowds, meeting and working with new people
around the world (Cupp, 2014). Fiorina also clearly enjoys being in a position
of authority and influence (Gifford, 2010).
o Conscientiousness: As we can see in Extraversion, that Carly Fiorina clearly
enjoys being in a position of authority and influence, her employees can show
their ideas for developing HP, but according to Fiorinas conscience for her
works, these ideas are only accepted when Fiorina saw its uses.
o Agreeableness: People who have high agreeableness tend to be suitable and
feel comfortable working within HPs culture, as the companys environment
featured the harmony relationships between employees (Coyle, 2013).
o Neuroticism: The workers who have low emotional stability cannot be able to
rapidly adapt, therefore they are likely not able to survive with HPs huge
changes in short time under Fiorinas reign (Gifford, 2010).
2. Attitude: Former CEO of Hewlett-Packard, Carly Fiorina is female leader, she
can show their employees how wise and powerful she is, as not only man can
lead. But as the authors mentioned in Extraversion (Personalities), Fiorina also
clearly enjoys being in a position of authority and influence, their employees feel
so uncomfortable when working with her autocratic attitude, although she got her
talents, but she doesnt know how to get employees loyalty (Gifford, 2010).
3. Ability and aptitude: HP puts serious thoughts on their candidates as they seek
for adaptability and culturally fit. Their employees must be hired for longterm
commitment, nobody is temporarily hired (Hp.com, 2014). It promotes from
within and grows its own managers from people who have growth potential,
which means the likely loyal people tend to stayin longer with HP.
External factor:
1. Discipline: The rules of the company can affect to employees action, as they
directly or indirectly suffer. HP under the reign of Fiorina has been too extreme,
so macho (Gifford, 2009). Fiorinas rules have caused a lot of disagreements
from employees because of its effects to every each individuals (Gifford, 2010).
This led to the situations of dissatisfied and repressed employees at work, then
eventually it became negative actions of individuals to Fiorina (Gifford, 2010).

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3

2. Leadership: Leaders do influence the other individuals a lot. Fiorinas leadership

created many arguments inside of HP (Gifford, 2010), but with the present CEO,
Meg Whitman, this leader increases the harmony between HPs employees
(Coyle, 2013). Positive relationships with colleagues, and with CEO, absolutely
do ease and comfort every individuals.
3. Change: Changes, despite come from inside or outside of the company, are the
reason that most possibly dominate individuals behaviours. HPs Board of
Directors sudden decision of choosing Fiorina was a great change for HPs loyal
employees, and Fiorinas decision of firing 18,000 of those ones was even huger
(PoliticalCorrection.org, 2009). The consequences those changes brought to the
company might be the core reasons why every single person in HP, from
employees to shareholders, decided to not like Fiorina at all (Vries, 2005).

2.1: Compare the effectiveness of different leadership styles in different organisations

Through the history of 75 years from 1939 to 2014, HP has been managed and has
been led by several visionary people. However the conditions of the company was, its leaders
are recognized so talented. Carly Fiorina is one of the most famous one in the HPs history.
Carlston S. (Carly) Fiorina joined HP in 1999 as the new CEO of the company, and
she was named chairman a year later (Hp.com, 2014). She is one of the most typical example
of the Authoritative Leadership Style. Right when sat on the hot seat, she has change the
whole structure of the megacorporation, which was sustainable from the very first time of
the 2 cofounders, she admired the philosophy but cancelled the practices (Gifford, 2010).
Reckless vision are likely the most suitable words for Fiorinas thoughts. By quitting the
power of a thousand tribes, which are humansized teams in HP (Gifford, 2010), comes
along with put in a more merit-based rather than seniority-based reward system
(Rothaermel, 2013), Fiorina seemed to be a dictator tried to defy the HPs 60yearold
culture and disagreements of whole employees and the boards. Another risky action Fiorina
has made was merging Compaq to HP in 2001, which brought her even more criticism.
Michael Dell, of Dell Computers called it the dumbest deal of the decade (Gifford, 2010).
Suffered all the criticism, Fiorina was still strong despite 2 days after the combination
of Compaq and HP, 2 companies lost $13 billion in shares value (Gifford, 2010). But her
strength was not reliable enough to make people believe in her vision, as she had to walk out
of HP on February 10, 2005 while HP stocks were soaring (La Monica, 2005).
With all the failures, Fiorina was obviously not the favourite leader in HP history. The
next leaders which are Mark Hurd and Leo Apotheker didnt make the situation be better
(Bort, 2012). Now the hope is being put on the current CEO Meg Whitman.
On September 22, 2011, Margaret Cushing (Meg) Whitman was appointed as
president of HPs Board of Directors and HPs CEO (Hp.com, 2011). This next female leader
has chosen the Affiliative Leadership Style. Whitman first recreated a friendly
environment in HPs workplaces by inviting employees come back to offices, instead of
letting them individually work at home. And to enhance the harmony between internal ones,
she decided to build cubicles for greeting everyone be back, and Whitman is always nearby
(Coyle, 2013).

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4

We now need to build a stronger culture of engagement and

collaboration and the more employees we get into the office the
better company we will be.
~ Meg Whitman
(Entrepreneur.com, 2013)
Whitmans actions seem to have brought HP a new face. Under Meg Whitman's
Leadership, HP Stands To Gain 33 Percent is the big title of an article written by Mark
Meadows in 2013. Compare to Fiorina, Whitman has done it quite well, as HPs stock price
on October 31, 2014 is $35.88 per share, approximately 1.67 times of HPs stock price on the
day Fiorina went away (February 10, 2005) (Yahoo! Finance).

2.2: Explain how organizational theory underpins the practice of management

After many generations of leaders, HP Company has survived and thrived despite of
all the adversities it has faced.
Have good management to succeed us, Bill Hewlett, cofounder of HP has made
the summary in one short sentence. The Frederick Taylors theory Scientific Management
has been used and has assisted HP as a loyal longtime friend.
The management that Bill Hewlett has mentioned above was based on both Bill and
Daves timeconsuming thorough thoughts, came along with the results of their meetings
with the companys managers, all were about how HPs continuous activities should be
properly defined, not only in the short future, but the fixed rules that can stick with HP in
long run (Hp.com, 2001).
It's very important that everybody understands and
enthusiastically supports those objectives because it won't work
otherwise.
~ David Packard
(Hp.com, 2001)
While Bill and Dave have their managers trained since the very early 60s (Jacobson,
1998), HP nowadays does have so many courses for employees to participate in with the aim
of training them to do their jobs in the right way, to teach them how to finish the things they
have never been through, and let them know how their jobs can scientifically cooperate with
all the others. One of HPs famous training program is HP ExpertOne, which carries inside
of it 600 differentiated courses with 800 instructors (Hp.com, 2014). That program does
assume training courses in Operating Systems, Software, Data Center and Cloud, and many
others in the technologies field that are systematically useful for HPs future growth (Hp.com,
2014).
Besides all the success brought by Scientific Management, HP also applied other
approaches to management. One among the theories HPs used is the Henri Fayols Classic
Administration. David and Bill have divided the company into parts, which were called
teams, with separated specialized missions assigned by the 2 directors. Each team has an
intimate manager, who are the level nearest to the consumer [] where their (the managers)
unique management philosophy could still flourish (Gifford, 2010). This is compatible to the
system of objectives, and on paper, it drew HP into a form of pyramidshaped tree of
organizational structure. By that way, the profitable operation of each independent team will
contribute to the overall revenue of the whole system, the interests of HP is calculated by
summarizing all the teams interests.
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2.3: Evaluate the different approaches to management used by different organizations

The exceptional HP can be counted as one of the greatest enterprises which hugely
changed, and created the world today. Even many companies have learnt from the giant,
mostly about how HP use the Management by Objectives approach and also its technologies,
there have been so many other great entrepreneurs, whom are considered as Bill and Daves
later generations, who led their companies in their own ways, and (also) did change the
world.
The corporation the author want to mention here is the famous Microsoft, which
opened its official office in Vietnam with Tri Minh Vu as the CEO (Microsoft.com, 2012).
Since HP has made itself be a friend of Scientific Management, Microsoft chose its
companion as the Human Relations approach from the very early days. Both companies
have had the work done, but the things they focus on are simply different.
The human relations approach emphasized the importance of human attitudes,
values and relationships for the efficient and effective functioning of work organizations.
(Organizations and Behavior course book, page 37, BPP). Under the rules of Bill Gates,
Microsoft did concentrate on how its employees can feel comfortable, and even do not want
to leave the office. Microsoft was the pioneer of the newagey workplace, making work as
comfortable, inspiring and fun as possible so workers would spend lots of time there, John
Battelle, cofounder of Wired Magazine said.
Gates did care a lot about each of his employees characteristics, he has always hired
the smartest people who can get the job done, and he even chose to hire (his) friends and
past colleagues, as they will have loyalty to (him) and (he) personally knows whether they
have what it takes to realize (his) vision, according to Mubbisher Ahmed.
Its undoubtable to recognize the success of both HP and Microsoft, but anything has
its dark side. Within the authors shallow thoughts, the pros and cons (or the advantages and
disadvantages) of both management approaches are performed in the table below:

Pros

Cons

Scientific Management
(HewlettPackard)
Clear orientation and destination lead to
measurable and predictable results.
Obvious divided tasks come along with
detailed responsibilities make the process
become much more controllable and
observable.
Its much easier to exactly detect whom
should carry the blame when things go
wrong.
This method decreases the roles of
humanity, as it does count people as a
tasks finisher, machinelike.
The lack of awareness about workers
conditions may lead to dissatisfaction and
inconvenience, which can cause lower
productivity in further situations.

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Human Relations approach

(Microsoft)
Focusing on analyzing personal data of
each employee can give the exact
solutions for bursting her productivity.
Comfortable environments inside the
offices create good conditions for the
employees to dedicate.
Its more ethical caring about peoples
feelings and characteristics than
considering them as machines.
Costs more money and time for buying
stuffs, for synthesizing and analyzing
workers data.
Too playful environments can navigate
employees to distractions, as they could
not concentrate on their main works
anymore.

Conclusion
After being through all the high and all the low times, HP still stands ardently as it has
always been a symbol of modern era. For all of the HPs leaders, both the former ones and the
current, to have been in charge of the company is a glorious honor, which none of them could
have forgotten. Opinions of the authors in this report are just the sided ones, which are
expected to be able to help others to have more various views. The authors also hope to have
brought the readers enjoyable time of reading.
Thank you!

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Appendix
1. Leadership of the Combined Company (HP and Compaq):

Source: Hoopes, C. (2014). The Hewlett-Packard and Compaq Merger: A

Case Study in Business Communication. [online] Arthur W. Page Society.
Available at: http://www.awpagesociety.com/wp-content/uploads/2011/09/HPCompaq-case.pdf [Accessed 5 Nov. 2014].

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2. HewlettPackard Official Board (2014):

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Source: TheOfficialBoard.com, (2014). Org Chart HP - Hewlett-Packard.

[online] TheOfficialBoard. Available at: http://www.theofficialboard.com/orgchart/hewlett-packard [Accessed 4 Nov. 2014].

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