Before going into How Randy Mott changed the Structure of HP, you might wonder what is Organizational Structure? Any one?
In the very first class of these course prof. Yu talked about organizing has one of the four management task. Organizing is structuring working relationships in a way that allows organizational members to work together to achieve organizational goals. The outcome of organizing is the creation of organizational structure, a formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals. The main purpose of organizational structure is to coordinate and motivate Organizational members so that they work ...view middle of the document...
However, the IT industry is a highly changing environment with a need for flexible structure and decentralized hierarchy to encourage greater innovation which is essential for success in the industry.
Strategy: The strategy of an organization will determine the organizational structure it employs. Differentiation strategy aimed at increasing the value consumers perceive an organizations goods and services usually succeed best with a flexible structure. Flexibility facilitates innovative products and services quickly.
On the other hand, a low cost strategy fares best with a formal and conservative structure, giving managers more control over the activities of the business.
Randy Mott’s main goal was to cut HP’ s tech operations by half by 2008. The strategy was a cost cutting strategy, hence the need for a more formal and conservative organizational structure.
Human Resources: The organizational structure is also determined by the human resources it employees. All this is saying is that, the more highly skilled, professional the work force and the greater the number of employee working together in teams, the more flexible the organizational structure. The less skilled the workforce the more formal the structure and managers tend to have greater control on the day to day activities of the organization.
Giving the fact that HP employs highly skilled tech professionals, the idea of a centralized operation meant close supervision, less freedom and autonomy which was frowned upon by employees.
Technology: is the combination of skills, knowledge, machines, and computers that are used to design, make, and distribute goods and services. The whole idea is that the more complicated the technology the more likely the occurrence of unexpected events...