Business Firms

Running head:   Hewitt-Packard

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 first serious problem of Hewlett-Packard’s was a confusing matrix structure that blurred accountability lines and showed decision-making. Matrix structure is a departmentalization that focuses on integrated teams and involves multiple managers that used together. In addition, matrix structure open up for communication, and provide an opportunity for team members to learn from each other. It can be very efficient, but it can be very confusing to work with and it can also create conflict between project bosses in different parts in matrix (Williams, 2011, p.159). Therefore, matrix structure requires high level of organization and more diverse set of expertise and experience to carry out large complex tasks which help all the functional areas of the company.
Second, of the most serious problem of Hewlett-Packard was financially in trouble because it cost them another $10 billion to combine the Hewlett-Packard and Compaq systems, after acquiring Compaq Computers for $19 billion. Moreover, there was a persistent mistrust with the combined company. New CEO Mark Hurd had to testify before Congress regarding what he knew of the situation because of a board member revealed confidential information to the press, the scandal involving spying and phone tapping.
Third, of the H-P’s most serious problem was the lack of management. Management is getting work done through others (Williams, 2011, p.3). One of the insiders complained that CEO Carly Fiorina was too much of a big picture thinker and did not provide enough direction (Williams, 2011, p.254). The strategic vision Fiorina was using to direct the company was vague, and nobody knew in the company if it was performed or not. In fact, without a well describe strategic vision for the company, employees has no...