Birth of Hewlett Packard (HP) can be traced back to a very humble beginning by Bill Hewlett & Dave Packard in a one car garage in 1939. Dealing in electronic test & measuring instruments for first 20 years, HP has now expanded its range to include Computers, calculators’ medical electronic equipment, instrumentation for chemical analysis & solid-state components. In 1980 sales had grown at a compounded rate of 23% over the last decade whereas net profits had compounded at 27%. Such a growth was thus followed by the increasing number of employees which rose to 57,000 across the world. There are presently twenty manufacturing locations across United States & eight others around the globe. (Beer et. al.,, 1982)
This case study surrounds a number of management concepts developed by founders of HP called the “The HP Way”. It’s difficult to define what an HP way is. But it certainly seems to have a profound an impact on shaping company’ success and its future. The essence of HP way of doing things lies in the belief that every employee is treated as a mature adult – urging him to use his/her own head while making decisions rather than pin pointing what needs to be done. To promote and inculcate HP way and Culture among employees, HR at HP takes specific steps including Telling company stories, training programs “Working at HP” to ease transitioning of employees in HP culture.
Use of MBO program also promotes the freedom an employee have in making