HP Case Study

free essayGiven case describes the current market success of HP company, which exercises the efficient management of the human resources. The case overviews a relationship between the success of any organization and the efforts and dedication of its management and employees. However, the dedication of employees mostly depends on the degree of their job satisfaction or positive impacts that this job has on their lives. For example, most successful corporations across the globe such as Google, Pepsi, and Microsoft among others have focused their efforts on investing in their employees (Hagner, Dague & Phillips, 2014).

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Nowadays it is widely known that the secret for improvement of overall organizational performance lies in the enhancement of employee performance through continuous training. Therefore, further questions arise about how much integrative or satisfying these trainings are to the employees or how effective they are in supporting improved employee performance as well as creating higher job satisfaction. The HP case study demonstrates an in-depth insight about various employee training modules that can be used by an organization, which include online training platforms at the organization or through the partnership with online trainers like SkillSoft Corporation, face-to-face training workshops and mentorship among others. The primary intention of these big corporations in project management training is to produce today’s leaders full of creativity and workplace improvisation that will help them make the most economically viable decisions. However, to provide world-class project managers, it is important to look at the intentions of employees prior to offering such job-related trainings (Yeuk-Mui, 2014). It is important because some employees decide to undertake such trainings just to increase their wage-earning potential rather than gaining employability skills. Therefore, it raises an issue because for an organization like HP to experience the ultimate reward from the employee training, it needs to make sure that company’s objectives are in line with those of its employees. In addition, the type of training offered by a firm whether it is on general project management skills or firm-specific management skills is another issue. The type of training is an important aspect because the more training a company offers, the lower turnover intention is (Cha, 2008). It means that an organization can gain competitive advantage through efficient human resource management approach.
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Theoretical Model

Ultimate objective of any business is to grow and expand as well as remain sustainable in the long-run. One of the best strategies for a firm to become the top company is attaining and maintaining its competitive advantage. Competitive advantage gives a business a higher stake in the market compared to its competitors. There are multiple ways for a firm to gain the competitive advantage including product differentiation, human resources management and economies of scale among others. The best theoretical model explaining the situation of the company is the theory of strategic human resource management (SHRM) (Truss, Mankin, & Kelliher, 2012). This theory describes the use of strategic human resource management as a tool for achieving the competitive advantage, which is what HP company has employed.

Modern industrial development has limited the level of product differentiation. Therefore, firms are now exploring other avenues of gaining competitive advantage and human resource management is one of the best opportunities. The theory has been founded upon the resource-based view of competition, which refers to the internal business capability to influence organizational performance. The theory supports that a company can achieve competitive advantage through HRM. Namely, through strategic planning of the human resource structure, efficient recruitment processes, employee appraising, compensation and training, and development of the employees’ career paths.

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All these procedures allow a firm to attract and maintain qualified and competent employees. Across the world, businesses know that the advantages that come along with better human capital are enormous. For example, they include generation of higher profits for the firm, lower employee turnover, higher quality products and easier implementation of the corporate strategies (Barrett, 2005). It is the reason the former CEO of Citicorp once has said, “I believe the only game in town is the personnel game … My theory is if you have the right person in the right place, you don’t have to do anything else. If you have the wrong person in the job, there’s no management system known to man that can save you.” (Schuler, 1988).

HP company has used employee training as a tool for strengthening its human resource management (Noe, 2013). For example, the ninth position on the US Fortune list belongs to the qualified employees that have enabled the company to produce the high-quality computer hardware equipment. The theory supports the case study and its framework captures all the training efforts made by HP company. Some other large enterprises across the US that have used the theory of human resource advantage include IBM, which used the strategy of training programming to its employees, McDonald’s, Dayton Hudson Corporation and Delco-Remy among others.

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Case Analysis

HP company has taken the best approach to ensure its superiority in the computer hardware market. Unlike other ways of gaining competitive advantage, the human resource management approach is more sustainable. However, some critical areas of HRM are missing in the case. For example, company’s strategy mostly focuses on employee training whereas there is a broad range of business aspects left unmanaged. Employee compensation has not been adequately addressed when it ought to be integrated within company’s performance policy in terms of profit making. It means that if company’s profits increase, employee compensation increases accordingly.

Moreover, company’s focus on hiring people without prior experience and training them is somewhat limited. The company has not embraced the diversity of skills from other firms who might bring ideas from outside. In addition, the aspects of employee satisfaction with the training have not been emphasized (Huang & Su, 2016). As they undergo the training, a separate system needs to be established for evaluating the satisfaction rate of employees. Thus, learned project management ideas are adequately translated into the actual performance of the company. Furthermore, training has been focused mainly on project management whereas all other career paths are left aside. It might demotivate employees working in other departments as they can feel left out creating an imbalance in the commitment of employees. Fostering working relationships has not been given enough attention. If workers have conflicts, no matter how trained they are, working together is difficult. Therefore, policies that ensure hospitable environment within the company need to be established.

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First, job training must cover all employees regardless of their position in the business. It will bring the sense of synergy to all workers ensuring that everyone focuses on the same goal. The concept of job satisfaction needs to be at the forefront of corporate strategies to check the employee turnover intention on a regular basis. It means that competitors will not be able to lure workers from the company. Sustainable leadership is a critical component of organizational success and therefore, careless leaders might unsettle the whole idea of human resources advantage (Sleezer, Russ-Eft & Gupta, 2015). It means that  employees need to understand the essence of taking a professional approach toward project management from the beginning.

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