Institutionalization Essay -- Business, Multinational Companies

The fast paced, ever changing, and volatile business climate of today affects the ability of multinational companies such(prenominal) as Hewlett-Packard to stick up 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 geomorphological changes. Hewlett-Packard is a widely respected company known for executing continuous improvement passim 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 realm of the organizations functions. Thus, the strategies and framework Hewlett-Packard used to institutionalize intervention programs throughout its history will be examined. Institutionalization ProcessInstitutionalization is embedding change processes brought on by effective interventions to an organizations functioning for a prescribed period of time. unless 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), on that point 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... ...ist organizations moldiness maintain constant perplexity over environmental forces such as the economy and internal forces such as employee actions and behaviors that undermine the change process (Cummings & W orley, 2009). ConclusionChange strategies are part of every organizations 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-Packards 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.