Essay Sample on Human Resource Management in Hawlett-Packard

Introduction

The human resource management department is a fundamental part of the company because it is responsible for some decisions and choices that affect the current status of business organizations as well as the future business errands. An excellent example is a case of Hewlett-Packard (HP) in which the human resource manager, Carl Fiorina, facilitated the acquisition of Compaq. Even though this merger was viewed as unnecessary and could be a risk factor to management issues, Fiorina considered this acquisition as beneficial as it elucidated confidence in the future (Marshall, 2010). The biggest challenge Compaq acquisition could bring is exposing HP to financial management problems. The computer-manufacturing costs had resolved to cut operational costs and focus on unique design and innovation of its computer products. Thus, incorporating another business entity could complicate management of the initial plan.

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New Designs, Innovation and Cost Benefits

Fiorina's philosophy on the HP-Compaq merger was based on the idea of restructuring the company and further establishing large scale operations (Couto, Plansky & Caglar, 2017). Through this, the company was bound to enjoy several advantages that come along with the operation of large business organizations. One, there is the advantage of economies of scale, and this materializes during production processes, procurement alongside any other activity in the company that requires expenses. Even though effective mechanisms of cost-cutting include specialization and concentration on a single line of business, Fiorina opted for the merger because the project was justifiable (Neu, 2013). In this part, brainstorming from Compaq and HP was a visionary tool for innovation to improve production from both ends of the corporation.

Low-cost Providers and Innovation

Cutting costs is a function that yields high profits for business organizations. However, cutting costs to the extreme spells doom. The reason as to why this argument count is because low costs of production potentiate production of low-quality goods, and this is a sign of incompetence (Morabito, 2014). This is a true phenomenon that may have lingered in Fiorina's mind. The point is, if HP intended to hold onto its pride in innovation that produced unique computers, it had to invest in production processes. If the investment was not an option, the company should at least consider other viable options for maintaining the spirit. In this line, Fiorina intended to capture Compaq's technicians and production team and incorporate them into the HP's production processes. Through this, there are high yields because the merger consolidated know-how as well as technology from Compaq.

Low Costs and Competitiveness

The subject of cutting costs and economies of scale stretches to competitiveness. The practice of acquiring Compaq and bracing itself for economies of scale facilitates the reduction of costs of production (Hitt, Ireland & Hoskisson, 2013). The net effect of this drives the prices of their products exceptionally down. This is a strategic way of attracting more clients and maintaining the existing one. In a free market, HP earns immense competitive advantages against its rivals. An interesting point, with this merger, to note is that the acquisition of Compaq delivers a large percentage of its loyal clients, and as such, HP's client base widens.

Conclusion

Human resource management facilitates a lot of important activities in business organizations. These activities include cutting down costs of production and operating the businesses as well as innovation. In HP's case, Fiorina, the human resource manager, undertakes daring decisions in pursuit of cutting the company's operational costs, maintaining innovation as well as seeking for new designs for computers. However, Fiorina's moves come to a sudden end soon after leaving the company.

References

Couto, V., Plansky, J., & Caglar, D. (2017). Fit for Growth: A Guide to Strategic Cost Cutting, Restructuring, and Renewal. https://books.google.co.ke/books?id=cK6GDQAAQBAJ&printsec=frontcover&dq=new+designs+to+enhance+cost+savings+and+reinforcing+innovation&hl=en&sa=X&ved=0ahUKEwjk--C50L3gAhUs-YUKHXUyBxwQ6AEIQTAF#v=onepage&q=new%20designs%20to%20enhance%20cost%20savings%20and%20reinforcing%20innovation&f=false

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Competitiveness & globalization. Mason, OH: South-Western Cengage Learning. https://books.google.co.ke/books?id=vwadCAAAQBAJ&pg=PA111&dq=low+costs+and+competitiveness&hl=en&sa=X&ved=0ahUKEwiF2Pbm1r3gAhUszYUKHT9cB_gQ6AEILjAB#v=onepage&q=low%20costs%20and%20competitiveness&f=false

Marshall, N. A. (2010). A Framework for social adaptation to climate change: Sustaining tropical coastal communitites[sic] and industries. Gland, Switzerland: International Union for Conservation of Nature and Natural Resources. https://books.google.co.ke/books?id=LM8LRwEsCQcC&pg=PA27&dq=Adapting+Benefits+to+A+Change+Strategy&hl=en&sa=X&ved=0ahUKEwjYgpXUuL3gAhUITxUIHW72BrYQ6AEIKDAA#v=onepage&q=Adapting%20Benefits%20to%20A%20Change%20Strategy&f=false

Morabito, V. (2014). Trends and challenges in digital business innovation. https://books.google.co.ke/books?id=3fG3BAAAQBAJ&pg=PA26&dq=challenges+of+low+cost+provider+and+innovation&hl=en&sa=X&ved=0ahUKEwj3mtWz1L3gAhWFyoUKHQw-BfgQ6AEIOTAD#v=onepage&q=challenges%20of%20low%20cost%20provider%20and%20innovation&f=false

Neu, F. H. (2013). Cutting costs: Successful strategies for improving productivity. https://books.google.co.ke/books?id=c_zx6jumpQYC&pg=PA25&dq=cost+savings&hl=en&sa=X&ved=0ahUKEwj6yJub073gAhVRExoKHf2UDqc4FBDoAQgtMAE#v=onepage&q=cost%20savings&f=false