Assignment # 2 – “Hewitt-Packard Company”
1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious.
The three most serious problems identified in the case are the strategic vision, the matrix structure, and the company reward system.
The strategic vision of the company was very vague. The strategic vision was “digital, virtual, mobile, and personal. The employees working at Heward-Packard were not sure if the strategic vision was being executed or not. When employees are not sure if the strategic vision is not being executed this can affect the way ...view middle of the document...
This causes different kinds of confusion for the company. The sales division should be divided to represent the different departments.
To correct the company reward system, HP needs to simplify the reward system. It should not be so complex that employees are not sure if performances are affecting their bonuses. The company needs to let the bonuses be directed by the performance of the departments and the company.
3. Recommend a leadership style or combination of initiating structure and consideration the CEO should adopt to address the problems of distrust and declining morale. Explain your answer.
The recommended leadership style the CEO should adopt to address the problems of distrust and declining morale is supportive leadership. Under this leadership the CEO is friendly and approachable. With this leadership style the employees’ confidence rises which causes improved performance and the employees stress levels are lower. This leadership style also improves relations and trust between employees and leaders. Since the employees of HP are starting to feel like they are working...