The "HP Way" Case Study by Nicky

The "HP Way"
A discussion of the primary values encapsulated at Hewlett-Packard (HP).
# 128314 | 1,295 words | 4 sources | APA | 2010 | US
Published on Jul 11, 2010 in Business (Companies) , Business (Management)

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This paper takes a look at the set of values and methods that Hewlett-Packard (HP) has used as the basis of their business model, known as the "HP Way." This model is considered to be a source of competitive advantage for the company. The paper describes a number of Hewlett-Packard's policies and structures, such as its decentralized organizational structure and divisions. Also discussed is HP's approach to management as seen in the relatively small size and influence of the corporate staff. Several of HP's work systems which also support the underlying philosophies of the "HP Way" are enumerated, such as Management by Objectives and the emphasis on teamwork. The paper also touches on the importance of job security at HP and how it affects employee retention and creates a positive work environment. Potential pitfalls of working at HP are also explored. The paper concludes by agreeing that the "HP Way" works.

From the Paper:

"These values are supported by a number of Hewlett-Packard's policies and structures. One such structure is the decentralized organizational structure. Decentralized structures support individuals, empowering them to make their own decisions and find ways in which they can contribute. This empowerment directly supports the trust and respect for individuals by not subjecting them to a strong command structure.
The structural policy regarding divisions supported the concept of achievement. For example, a new product could not be a division until it had achieved sufficient profitability to pay for all of the six basic functions. In other words, the standing of a product was based on its contribution to the company, and this had to be earned through achievement. "

Sample of Sources Used:

  • Morgan, Gareth. (1998). Images of Organization: Executive Edition. p.126 Retrieved October 31, 2008 from,M1
  • Dong, Jocelyn. (2002). The Rise and Fall of the HP Way. Palo Alto Weekly. Retrieved October 31, 2008 from
  • Gillmor, Dan. (2005). Getting Back the HP Way. Computerworld. Retrieved October 31, 2008 from,4814,100179,00.html
  • Kotelnikov, Vadim. (2008). The Hewlett Packard Way: Sustaining Competitive Advantage by Managing Critical Opposites. Retrieved October 31, 2008 from

Cite this Case Study:

APA Format

The "HP Way" (2010, July 11) Retrieved August 23, 2019, from

MLA Format

"The "HP Way"" 11 July 2010. Web. 23 August. 2019. <>