-
Essay / Institutionalization - 1385
Today's ever-changing and unstable business climate affects the ability of multinational corporations such as Hewlett-Packard to maintain a competitive advantage. In 2002, the company made a controversial acquisition of Compaq which led to layoffs, internal conflicts and impacted its ability to implement structural changes. Hewlett-Packard is a well-respected company known for implementing continuous improvement at all levels of the company. However, the challenge that all businesses face is the ability to implement and sustain intervention programs over a period of time, as changes become part of the organization's functions. Thus, the strategies and framework used by Hewlett-Packard to institutionalize intervention programs throughout its history will be examined. Institutionalization Process Institutionalization incorporates processes of change brought about by effective interventions in the functioning of an organization over a prescribed period of time. Additionally, the institutionalization process includes socialization, engagement, reward provision, diffusion, detection, and benchmarking. These are the by-products of two dimensions: characteristics of the organization (such as congruence and unionization) and characteristics of the intervention (goal specificity and programmability). When Hewlett-Packard (HP) acquired Compaq in 2002, the combination of these two dimensions produced institutionalization. process. According to Cummings and Worley (2009), five factors in the institutionalization process (socialization, engagement, reward allocation, diffusion, detection and calibration) determine the long-term implementation of interventions. In other words, the extent to which these prestigious organizations must maintain constant vigilance toward environmental forces such as the economy and internal forces such as employee actions and behaviors that undermine the economy. process of change (Cummings & Worley, 2009). ConclusionChange strategies are part of the design of every organization. For an organization to successfully implement persistent change, all or most of the institutionalizing factors described must be present. The most compelling aspect of Hewlett-Packard's interventions was its emphasis on targeting the level of change at both the organizational and departmental levels. Finally, the aggressive structural changes initiated by Hewlett-Packard during its existence reflect the strategic planning and risks associated with maintaining a competitive advantage in the highly volatile information technology industry...