The fast paced, ever changing, and volatile business climate of today affects the ability of multinational companies such as Hewlett-Packard to sustain a competitive advantage. In 2002 the company conducted a controversial acquisition of Compaq which led to lay-offs, infighting, and impacted their ability to implement structural changes. Hewlett-Packard is a widely respected company known for executing continuous improvement throughout all levels of the company. However, the challenge all companies face is the ability to implement and sustain intervention programs over a period of time to the degree that the changes become part of the organization’s functions. Thus, the strategies and framework Hewlett-Packard used to institutionalize intervention programs throughout its history will be examined.
Institutionalization Process
Institutionalization is embedding change processes brought on by effective interventions to an organization’s functioning for a prescribed period of time. Moreover the process of institutionalization consists of socialization, commitment, reward allocation, diffusion, and sensing and calibration. They are the by-products of two dimensions: organization characteristics (such as congruence and unionization) and intervention characteristics (goal specificity and programmability).
When Hewlett-Packard (HP) acquired Compaq in 2002, the combination of these two dimensions produced the institutionalization processes. According to Cummings and Worley (2009), there are five factors of the institutionalization process (socialization, commitment, reward allocation, diffusion, and sensing and calibration) that determine long-term implementation of interventions. In other words, the degree to which these fa...
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...ist organizations must maintain constant vigilance over environmental forces such as the economy and internal forces such as employee actions and behaviors that undermine the change process (Cummings & Worley, 2009).
Conclusion
Change strategies are part of every organization’s design. In order for an organization to have success with implementing persistent change all or the majority of institutionalization factors outlined must be present. The most compelling aspect of Hewlett-Packard’s interventions was emphasis on targeting the level of change at both the organization and department level. Finally, the aggressive structural changes Hewlett-Packard initiated during the course of its existence reflects the strategic planning and risk associated with sustaining a competitive advantage in the highly volatile information technology industry.
Bolman, L. G., & Deal, T. E. (2013). Reframing Organizations (5th ed.). San Francisco, CA: Jossey-Bass.
According to Pascale, socialization is essential to the integration of new members into an organization (P 27). However, it is up to the organization to create an environment that offers both new and established members order and consistency through explicit procedures and implicit social controls (P 34). Furthermore, by providing organizational members with continuity and clarity, the firm is able to establish a strong cohesive culture that empowers its employees so that they may develop the social currency they need to implement change and execute tasks efficiently (P 35). It is this strong cohesive culture that has sustained some organizations over numerous generations (P 29); and it is this culture that Pascale’s seven step model of socialization is intended to cultivate (P 34).
Leading Change was named the top management book of the year by Management General. There are three major sections in this book. The first section is ¡§the change of problem and its solution¡¨ ; which discusses why firms fail. The second one is ¡§the eight-stage process¡¨ that deals with methods of performing changes. Lastly, ¡§implications for the twenty-first century¡¨ is discussed as the conclusion. The eight stages of process are as followed: (1) Establishing a sense of urgency. (2) Creating the guiding coalition. (3) Developing a vision and a strategy. (4) Communicating the change of vision. (5) Empowering employees for broad-based action. (6) Generating short-term wins. (7) Consolidating gains and producing more changes. (8) Anchoring new approaches in the culture.
Managing transformational at National Computer Operations is an article discussing the dilemmas faced when a company is forced to implement changes within a two year timeframe in order to compete with other emerging computer technology companies. NCO’s Managing Director Gar Finvold, decided to review NCO’s market position and to look for improvement opportunities that change implementation enhancements would ensure that NCO would emerge and maintain their position as the leading computer support services firm.
From Peter Hall and Rosemary Taylor's study of "New Institutionalism". "New Institutionalism" term that now appear with developing predominance in political science. A portion of the ambiguities obscurity wrapping the new institutionalism can be scattered on the off chance that we see that it doesn't shape a brought together substance of cerebration. Hall and Rosemary introduce three theories of "Institutionalism": "Historical Institutionalism", "Rational Choice Institutionalism", and "Sociological Institutionalism". These theories were enhanced in response to the behavioral view that was legitimate amid the 1960's and 1970's and solicitations to clarify the parts of foundations in demonstrating social and political outgrowth. Among the three
While the purpose of a catalytic mechanism is to essentially take a business “by it’s horns” and establish processes and core structures that works towards producing effective results internally and externally, it may not necessarily provide the thoroughness needed when mid to large sized companies are involved. The problem with establishing catalytic mechanisms is that it doesn’t establish who, within the organization, should reinforce these procedures. This one single point of contact is key for enforcing such an affect on the organization.
Meyer , J. W. , and Rowan , B. “ Institutionalized Organizations: Formal Structure as Myth
Concern InfoTech Pvt. Ltd. (2013) Socialization [online]. [Accessed 11th December 2013]. Available at: < http://www.sociologyguide.com/basic-concepts/Socialization.php>.
The IAD framework identifies key variables that researchers should use in evaluating the role of institutions in shaping social interactions and decision-making processes. The analytical focus of the IAD is on an action arena, where social choices and decisions are made. Three broad categories of variables are identified as influencing the action arena. Institutions or rules that govern the action arena, the characteristics of the community or collective unit of interest, and the attributes of the physical environment within which the community acts (Ostrom 1990; Ostrom 2005). Each of these three categories ha...
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
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