Presented To- Presented By-

Mr.Arun Sahay Pujil Khanna

Bhawna Upadhyay
 create a world:

• in which everyone and

everything is connected

• in which we are investing for

the common good
hp’s purpose • in which trillions of useful
e-services are accessed by
billions of information
appliances supported by an
"always-on" infrastructure
 create ”a
winning
e-company
with
hp’s vision
a shining soul.”

• to lead in an
internet age

• to invent for the

common good
 enabling e-services

e-services:
internet Enabling

strategy and Transformation

vision

enabling enabling
intelligent, connected always-on
devices and environments internet
infrastructure
 • net revenue FY 09:
$114.6 billion

• headquarters: Palo alto,

California
hp company
• company founded: 1939
overview
• fortune 500: No-9

• fortune global 500: No-30

• No of employees: 93,000
global presence: sales and
service in more than 120
countries

hp presence
no hp presence
 • global presence

• financial strength

• integrity and trust

• technology leadership
and innovation
hp highlights • world-class partnerships

• customer satisfaction and

standards leadership

• customer-focused solutions
to help you succeed
 hp’s values
• innovation and flexibility

• high level of
achievement and
contribution

• teamwork

• trust and respect for

individuals

• uncompromising
integrity
hp diversity
People are our
competitive
advantage; differences
are
our strength:
• diverse perspectives,
talents and teams help
us meet the needs of
our global and multi-
cultural customers
• diversity fosters
teamwork, creativity,
productivity and
innovation
• each of us brings
 • In 2000, $52 million in
cash and equipment
contributions
– $36.8 million united
states

– $15.2 million outside

hp in the united states

– $2.9 million to united
community way (hp gift only)

• more than 100,000

employee volunteer
hours in classrooms and
the community
 HP’s position before merger

•By 2001, as the industry stumbled,

meeting growth targets became
difficult for HP and it was forced to
cut jobs and scrap plans
•As a result HP stock price dropped
drastically.
•Turning the company around
required more than just strategy
from within
 Growing Problems at HP
• HP was not adapting to technological
innovation fast enough
•Margins were going down
•IPG (HP’s Imaging and Printing Group) was the
leader in its market segment but did not rank
anywhere among top 3 in servers, storage or
services
•Printing line was facing competition from
Lexmark and Epson which were selling lower-
quality inexpensive printers
•Needed to build strong complementary
business lines
 •Creates an $87 billion global
technology leader, with the
industry’s most complete set of IT
products and services for both
businesses and consumers

•New hp would be the No1 global

player in servers, imaging &

hp, compaq printing, and access devices (pcs

& hand- helds), as well as Top 3
player in IT services, storage, and
merger management software.

•New hp would have operations in

more than 160 countries and over
145,000 employees
 Market Benefits
•Merger will creates immediate end to end leadership

•Compaq was a clear #2 in the PC business and stronger

on the commercial side than HP, but HP was stronger on
the consumer side. Together they would be #1 in market
share in 2001

•The merger would also greatly expand the numbers of

the company’s service professionals. As a result, HP would
have the largest market share in all hardware market
segments and become the number three in market share
in services.

•Improves access to the market with Compaq’s direct

capability and low cost structure

•The much bigger company would have scale advantages:

gaining bargaining power with suppliers; and scope
Situation as of December 2000:
•Using HP’s 3rd corporate-supported generation
application
•Pros:
• Content integrated – single search located
documents from many suppliers.
•Cons:
• Documents manually posted by team of 3 full-
time contractors
• Only company-wide access docs could be posted
• Site was mainly used by one business
organization
• Most organizations had their own market
intelligence sites with documents posted
• Employees did not know where to go for MI
content
• Decentralized content purchase process
Role of Org structure in an Org efficiency &
effectiveness?

Organizational Structure
The formal arrangement of jobs within an organization.
Organization Efficiency and Effectiveness.
Organization that have formal org structure very good and
systematic the organization not only with getting activities
completed and meeting organization goals but also doing so
as efficiently possible.
In successful organization high efficiency and high
effectiveness go hand in hand through better Org structure.
Poor Org structure most often due to inefficiency &
ineffectiveness can cause lose desired goals.
 Structural problems
• Formal structure was not designed.
• 11 layer of management that have many.
• Sales people confused to work.
• Customers did not know Whom to
call for complaint.
•That sales specialists did not
typically spent their time for customer.
 What do you think of his changes.?
Think about CHANGES.
Buy once
• Eliminate 3 layer of management to reduce
inefficiency of sales structures.
• Sales reps assign one top customer that
customer know whom to contact that make for Search
one site
customer easy to contact.
• Top HP sales executives makes speedier
decision due to this low waste of time.
• Sales peoples spent 40% time as Compare30% Make business
decisions faster!

because to the customer provide proper

attention.
How do you think the company customer
response these changes.?
PEOPLES RESPOND.
 After the addressing of his company structural problems that
make a big changes.
 Due to this changes worker take proper attentions on the
customer.
 Customers gain proper attention, dealing & Low time
consuming.
 Easy call and say something easy that they want.
 These type of changes was very help full for their customers
because eliminating one person instead four persons.
 Organization was going to become an industry leader in
computers market.
page 19
Cont……
ORGANIZATION STRUCTURE
PROPOSED STRUCTURE
 Workforce Optimization
Managing a large services workforce

Optimization:
Matching workforce needs to Supply:
Demand: available people and skills Skills
New and existing projects available
and clients Global scale Training
Streams of service events opportunities
Complex constraints
Attrition
Millions of variables
High Performance Human Resource (HP-HR)
Practices

Production problem solving teams that

maximize horizontal information flows
Job rotation to build flexibility, team
communication
Careful screening of workers down the job
ladder to identify team skills
Job security used to build incentives to invest
in firm’s future
Training in problem solving, team skills
Incentive pay
High Performance Human Resource (HP-HR)
Practices

 Compare to Traditional Human Resource

Practices
 Wage and salary only loosely tied to
performance
 Narrowly defined jobs
 Limited screening for non-managerial jobs
 Tight supervision
 Little training
 Layoffs in slack times
High Performance Human Resource (HP-HR)
Practices

 Group pay incentives have free rider problems

 Use smaller groups to foster peer pressure,
mutual monitoring
 Train on workplace norms
 Combine with stronger screen on team work
at hiring
 Multiple HP-HR methods make incentive pay
more successful
 High Performance Human Resource (HP-HR)
Practices
 Fostering worker ideas to raise productivity
Requires job security, or workers may fear
job loss from suggestions
Flexibility in job assignments makes
commitment to job security more credible.
Commitment to training makes commitment
to job security more credible.
Multiple HP-HR methods make decentralized
decision-making more successful
 High Performance Human Resource (HP-HR)
Practices
 When employees are expected to multitask
Requires combination of fixed compensation
for routine tasks
More complex compensation for innovative
activities

 Multiple HP-HR methods make multi-tasking

more successful
 BENEFITS OF
RESTRUCTURING
•Due to these changes worker take proper
attentions on the customer.
•Customers gain proper attention, dealing &
Low time consuming.
• Easy call and say something easy that they
want.
•These type of changes was very help full for
their customers because eliminating one
person instead four persons.
•Organization was going to become an industry
leader in computers market.
 Mechanistic or a Organic Org?
why?
More Mechanistic

m
High specialization
Rigid departmentalization
Clear chain of command Because.
Narrow spans of control • Mechanistic should be
Centralization
High formalization
necessary for HP because large

organization tend to be more

mechanistic.
• Make better span of control.
• Clear chain of command,
regulations, standardize task
and similar control are essential
THANK YOU!!!