Reference no: EM132646353

William R. Hewlett and David Packard, two organizational leaders who demonstrated a unique managerial style, began their operation with $538 in 1939, in a one-car garage. Eventually they built a very successful company that now produces more than 10,000 products, such as computers, peripheral equipment, test and measuring instruments, and handheld calculators. Perhaps even better known than its products is the distinct managerial style preached and practiced at Hewlett-Packard (HP). It is known as the HP way. The values of the founders - who withdrew from active management in 1978 - still permeate the organization. The HP way emphasizes honesty, a strong belief in the value of people, and customer satisfaction. The managerial style also emphasizes an open-door policy, which promotes team effort. Informality in personal relationships is illustrated by the use of first names. Management by objectives is supplemented by what is known as managing by wandering around. By strolling through the organization, top managers keep in touch with what is really going on in the company.

This informal organizational climate does not mean that the organization structure has not changed. Indeed, the organizational changes in the 1980s in response to environmental changes were quite painful. However, these changes resulted in extraordinary company growth during the 1980s.

Questions

1. Is the Hewlett-Packard way of managing creating a climate in which employees are motivated to contribute to the aims of the organization? What is unique about the HP way?

Would the HP managerial style work in any organization? Why, or why not? What are the conditions for such a style to work?