...At twenty-three, Carly Fiorina had dropped out of UCLA Law School with no plans about what she wanted to do with her future. However, almost twenty-two years later, she became president and CEO of Hewlett-Packard Company - the first woman CEO of a Fortune 20 company. She was given a mandate by HP’s board of directors to “shake things up” and was later named the "Most Powerful Woman in Business" by Fortune magazine. Prior to joining HP, Fiorina spent nearly twenty years at AT&T and Lucent Technologies, where she held a number of senior leadership positions (Cara Carleton Fiorina. (2014). In 1999, Hewlett-Packard hired Carly Fiorina, former senior executive of Lucent Technologies, as its Chief Executive Officer. Carly brought nearly twenty years of knowledge and expertise in sales and marketing to the company, which was seeking to reverse a declining market position relative to its competitors such as Apple. Her successes included recreating HP's image from that of an ordinary printer manufacturer to one as a supplier of a variety of Internet products. Fiorina overcame a number of challenging hurdles in undertaking the merger of HP with Compaq Computer Corporation, while enduring the public-relations uproar associated with a proxy fight initiated by the Hewlett family, who strenuously objected to the acquisition of Compaq. She bolstered HP's image as a state of the art American engineering company while taking the company into what was becoming known as the Internet Age. However...
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...Hewlett-Packard Under Carly Fiorina and After Her Submitted by: Chris L. Espina Date of Submission: May 17, 2014 I. Perspective held by the Students This case talks about the management and leadership of Carly Fiorina, the chosen CEO of HP after her long years with AT&T and Lucent Technologies. She was known to be a woman of “silver tongue and iron will”. She dropped out of law school and pursued for Business Administration and Marketing Career and found herself successful in the field of sales and marketing, thus paving her way to be a top choice for the chief executive position of Hewlett-Packard. The perspective taken in this analysis was on Carly Fiorina. It is then to be assessed, her actions and decisions made for the company and how did it affect in the entity’s performance. Recognition of elements and factors were done regarding on the negative effects of the actions she took for HP, that made her lose her credibility in the company and resulted to her resignation from the position she was handling. II. Case Facts Hewlett-Packard is known to be the second largest computer maker in the world. In 1999, the company hired Carly Fiorina to be its Chief Executive Officer, who is the first outsider who ever filled a top position in the company for the past 60 years. She was a student of philosophy, medieval history and marketing. With her skills in sales and marketing, together with her charismatic spirit and steadfastness, Fiorina won the CEO position...
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...Motivation Since Carly Fiorina’s tenure as CEO, surveys conducted by HP have shown that employee morale has “cratered”. (7) This can be attributed to several major negative motivational factors that have hindered HP's work environment, such as poor job security and weak communication between leaders and employees. The period under Carly Fiorina and Mark Hurd was dominated by excessive cost cutting, and as a result fear was said to be the main source of motivation during their tenures. As stated previously, Carly Fiorina began a trend of mass layoffs in an attempt to make HP more efficient. Hurd and current CEO Meg Whitman have continued this trend with a series of unexpected announcements. However, various studies have shown that a sense of job security is a major “hygiene” factor, a basic need that is required to maintain worker satisfaction and morale. By initiating massive job layoffs, HP has harmed worker morale. Later, as one of his first acts as CEO, Hurd announced that HP would be cutting 14,500 jobs, or 10% of its workforce. In 2008, he announced plans to cut 24,000 jobs. In total, these layoffs amounted to an almost 20 percent reduction in the company’s workforce over just seven years. In 2009, Hurd began a series of large company-wide pay cuts. During the 2009 recession, Hurd imposed a 5% pay cut on all employees and removed many benefits. While Meg Whitman promised that job layoffs were over when she became CEO, this trend has continued. This broken trust may...
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...responsibilities and relationships in a way that is clear, but not excessively detailed and hierarchical. Although the matrix seems to be a logical organizational solution, Fiorina, has not found it an easy structure. She has struggled with ambiguous responsibilities and reporting relationships, been slowed down by the search for consensus decisions, and found it hard to get all the different units to work constructively together. In fact, CEO Carly Fiorina was so preoccupied with immediate issues that she lost sight of her ultimate objectives. Fiorina and her staff consider that the HP Way is an anachronism of a different, slower time, and that for the company to survive and succeed in the future it must be driven purely by a rational business strategy. After all of the layoffs, organizational changes, assertion of executive hierarchies and the destruction of traditional company rules of behavior, the HP Way that the old-timers are fighting to save is probably already dead. Fiorina and her team appear not to believe in the Way, they are now reduced to appealing to it in order to get enough shareholders votes to win. What this means is that, contra-Carly, the HP Way really did exist, it remains as powerful and useful as ever, and that its last use will be to destroy itself forever. So, What Is the Strategy? Fiorina did not believe in the HP Way, and she just followed its dictates. But the heart of the HP Way is the notion of trust, and the...
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...Three (3) Most Significant Errors Made Out of All of the Change Stories Presented and Describe the Ramifications of Those Mistakes. Any organization that wants to grow and stay ahead of the competition should embrace change. Despite this fact, there are many things that can go wrong when an organization decides to make a change. Resistance from employees is one factor that plays a part in an organizations change process failure. The change process must be effectively managed in an effort to lessen the chance of resistance (Palmer, Dunford, and Akin, 2009). The three most significant errors made out of all the change stories presented happened with Hewlett-Packard, Kodak, and McDonald’s. Let’s look at Hewlett-Packard first. In1999 Carly Fiorina became the new CEO. During this time Hewlett-Packard had issues in many departments and lacked...
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...and effort in duplication of resources. Since they did not make most of the e-business revolution, companies like IBM and Sun Microsystems gained advantage over them. Their inability to cope with the changing conditions in the industry and recession in US by the end of 1990s had a further negative impact on their growth. In order to bring about changes in the organization, Carly Fiorina was appointed as the CEO in 1999. She had a clear vision and she concentrated on marketing to increase the company's profit. She restructured the organization by dividing the firm into 4 groups with 2 groups focusing on sales for business and customers and other 2 for manufacturing for each printing business and personal computer and IT business. While under her leadership the issue regarding lack of clear direction and complexity of the organization structure improved, there were numerous other issues, which eventually led to decreasing company's revenue. The biggest mistake made by Fiorina was merging HP with Compaq. There was never any real synergy in this merger from the beginning and after the merger also Fiorina could not effectively...
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...recently faced in different levels of its management and focuses on corporate behavior of the Hewlett Packard Board of directors and its effect on corporate culture and structure within the organization according to the concepts of the management and organizational behavior (MOB) theories. This study is based on real facts that occurred with the Board of Directors of the Hewlett Packard organization. Business magazine, academic articles, and online submissions, as well as books about the HP way of business were diagnosed for their structure, content, and accuracy of the topic. The research draws attention to the fact that the combined companies experienced many problems-financial, cultural, and structural-resulting in poor performance of Carly Fiorina, who was named CEO of HP in 1999 and fired in 2005.One of the problems that Hewlett-Packard was facing was at least one of the board members was leaking confidential information to the press. Company directors were trying to determine who was leaking information to the press and hired a firm to investigate the matter. The investigators became so focused on finding the source of the leaks that they lost sight of the privacy of reporters and...
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...Carly Fiorina is King Arthur I have recently read “The Sword in the Stone”. In this story there is boy named King Arthur. If this boy was to be reincarnated, I believe Carly Fiorina would be the reincarnation of him. I believe in this because Carly is noble, successful, and knowledgeable. These are all traits, similar to King Arthur. Carly is also a dependable leader, like Arthur. Carly led Good360, the world's largest product philanthropy organization. This organization teams up with large and small companies all around the world to distribute merchandise to the people who are in need of it. Good360 has been known as one of the most cost-efficient charities. A full 99.7% of all donations go directly to charitable recipients.King...
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...Week 3 Assignment 1 Strayer University Managing Organizational Change HRM560 October 23, 2013 Week 3 Assignment 1 1. Using Kotter’s model, identify the three (3) most significant errors made out of all of the change stories presented and describe the ramifications of those mistakes. a) The first significant effort I’d like to discuss is Kodak’s evolution into the digital technology era. I believe the Kotter’s error that relates to them most is, “failing to create short-term wins”. While Kodak felt as if they were making the correct decision, a big goal, coupled with limited planning is a recipe for disaster. Also, by not implementing a series of short-terms wins the staff and investors were both left to wonder what is considered success. If those benchmarks had been set the concern from both of the aforementioned parties could have been ceased or negated altogether. b) The second significant error was made by McDonalds. I believe the Kotter’s error that applies to their scenario is, “Allowing too much complacency”. As an established and well known brand, it is easy for industry leaders such as McDonalds to get complacent. As times change so does the customer. Today’s society is more cognizant of health risk, and now more than ever it is trendy to diet and exercise. As a leading fast-food chain McDonalds should have been ahead of the trend by ways of their research and development. Their complacency resulted in lawsuits and a identify crises that...
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...THE RISE AND FALL OF CARLY FIORINA For a long time, Carleton S. (‘Carly’) Fiorina was one of the best-known CEO’s in the world. Brought in as Helwett-Packard’s (HP) CEO in 1999, Fiorina was instantly recognisable for her charisma, visibility and aggressiveness. Practically every OB book (including past editions of this one) featured her. She was even mentioned as a possible cabinet member of the Bush administration or a Senate candidate from California. Widely praised as a change agent and a visionary leader at Lucent Technologies-which she led before joining HP-Fiorina had a way of generating enthusiasm and excitement. Some called her a ‘rock star’ CEO. However, under Fiorina’s leadership, HP struggled as the world’s second largest computer company. Although revenue climbed steadily under her leadership, profit did not. Nor did the stock price-an investor who bought HP stock the day Fiorina was hired would have seen 55 per cent of the investment vanish by the time she was fired. Her acquisition of Compaq in 2002, which Walter Hawlett (son of the company’s co-founder and one of HP’s largest shareholders) was adamantly against, never paid off as promised. As a result of these struggles, the HP board tried to find a way to limit Fiorina’s powers and give more authority to other executives a month before her firing, Fiorina was told point-blank by three board members that she had to change her style. She adamantly refused. A month later, when informed of the board’s decision...
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...My opinion for John Morgridge and Carly Fiorina in their respective videos. After I watch their videos, I think they are all the most one of the excellent entrepreneurs in the world. Because they make a great contribution to a society, even the whole world. First Let we know their background, and then, we talk about their important point in their videos. Carly FIorina, I find some materials about her background from the Wikipedia." Carly Fiorina (born Cara Carleton Sneed, September 6, 1954) is an American Republican politician and former business executive who currently chairs the non-profit philanthropic organization Good360. In 1980, Fiorina started at AT&T and its equipment and technology spin-off, Lucent Technologies, and rose through the ranks to become an executive. As chief executive officer of Hewlett-Packard (HP) from 1999 to 2005, she was the first woman to lead a top-20 company as ranked by Fortune magazine." "John P. Morgridge (born 1933) is an American businessman who was the chairman of the board of Cisco Systems. he worked for Stratus Computer and Honeywell Information Systems before serving as president and Chief Operating officer of GRiD Systems.He joined Cisco in 1988, then a four-year-old company with 34 employees, as its second chief executive officer and chairman of the board. He was replaced by John Chambers as CEO in 1995 and as Chairman in 2006.At his retirement in 2006, Cisco had 50,000 employees in 77 countries." From their background...
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...Week 8 Assignment Assignment #2 Chapter 14 case Hewitt Packard Company Tracey Brown Professor Jack Sterling Principles of Management 8/20/2011 1. Discuss the three most serious problems you have identified in the case .Defend why you think they are the most serious. Hiring Carly Fiorina was a mistake because she was a broad visionary which says she looked at the company with a “wide view”. She knew she wanted to guide the company in a digital,virtual,mobile and personal way but lacked the means of communicating this vision to the rest of the company; her vision was not explained well to upper management so when lower management and their subordinates heard of this vision but with no plans of attaining it the employees moral dropped creating a struggling dysfunctional corporation, hiring a visionary for the company is a good ideal but you have to make sure the broad visionary remembers to include everyone and communicates with everyone on the plans in which to obtain those visions. Acquiring a company for 19 million dollars and then putting in another 10 million dollars to integrate the system was not a smart ideal since the company was already financially struggling; why would you buy a company that costs 10 million dollars to integrate? Why not buy a company that already has the same capability as yours? This decision only helped moral dropped lower than what it was and creates distrust. Board Members with no ethics leak pertinent information...
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...Assignment 1: Stories of Change All organizations must go through a change. Change will not always be accepted. It may take time before all the pieces have been ironed out; however, communication should always be open and honest. This paper will evaluate three significant errors made; suggest recommendations for each organizations change, attribute a change image to the leading managers or directors and recommend different strategies for managing each change story. Identify Errors All the change stories possessed its own challenges. The three main challenges faced were the following: allowing too much complacency, underestimating the power of vision, and failing to create short-term wins. The first error of complacency is easily done by most. As humans we tend to become comfortable with what maybe going on. Change whether drastic or minimal can be a hard pill to swallow for many. It is up to management to ensure that a plan of action is in place in order to be prepared for any issues. A sense of urgency should be implemented at all times whenever change is involved. No one can guarantee the actions or reactions of others. Tenured employees always have the slowest reaction to changes. They believe change will occur on their time; however, change must happen when presented. Underestimating the power of vision is key to the success of any role. If the organization doesn’t possess vision then how will it make it to its goal? The sense of direction in place must be communicated...
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...1.Whistleblowers, those individuals who call attention to possible wrongdoing within their organizations, are the subjects of much controversy. Some say that whistleblowers are noble characters, willing to sacrifice personally and professionally to expose organizational practices that are wasteful, harmful to the public safety. Others suggest that whistleblowers are, by and large, disgruntled employees who recklessly accuse individuals they feel have wronged them in order to attain their own selfish goals. The truth, as is often the case, probably lies somewhere between these two extremes. Whistleblowers do call attention to genuine abuses of power by decision-makers in business and government. However, whistleblowers may often be wrong in their accusations and their motives are not always pure. Their actions can disrupt a workplace, and may cause serious harm to individuals wrongly accused.But it is not an issue that can be ignored, due to the possible negative consequences for both your employees and your organization I believe that whistleblowing policies can contribute to a just workplace by helping to improve the ethical climate and by helping to ensure that employee rights are respected. Wrongdoing cannot be corrected unless organizational leaders are aware of it. Whistleblowing policies should promote more open communication about sensitive ethical and moral issues. One research study suggests that formal whistleblowing policies do indeed encourage such communication...
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...On November 6, 2001 Carly Fiorina HP CEO announces merger with Compaq. This is the one of the most notable days in HP history and as well as PC industry. It was called Largest merger in the PC industry and dumbest deal of the decade. When analyzing this merger after 13 year picture is changed. HP share price has raised more than 150% after merger. Carly Fiorina is not CEO and HP is still one of the most profitable companies in the world. HP is one of the famous companies found in Pao Alto in the garage. It was founded in 1938 in the year when PC industry wasn’t existing, when Steve jobs and Bill Gates weren’t even born. It is the company from which PC industry giants like Apple and Microsoft inherited corporate culture. Bill and Dave were graduates of the electrical engineering program of Stanford University. They decided to start business on drawing on Bill’s study of negative feedback. So there first product became the resistance capacitance audio oscillator, used to test sound equipment. First client was Walt Disney which used HP product in his animated movie Fantasy. From the day of founding HP was distinguished from other tech companies by it’s corporate culture. They called it HP way. Even Steve Wozniak founder of Apple praises HP corporate culture and says that the Apple seed was planted in Hewlett-Packard cubicle. It was philosophy which emphasized integrity, respect for individuals, teamwork, innovation and contribution to customers. HP grow from garage to world's...
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