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Case Study- Hewlett-Packard

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HP, otherwise known as Hewlett-Packard Company is a multinational information technology based in the United States at Palo Alto, California. The company provides products, services, solutions, technologies and software to many large, medium and small sized businesses including the governments, education and health sectors across the world. HP was found by William Hewlett and Dave Packard in the 1940s and it has grown to become one of the leading PC manufacturers in the world. The company specializes in manufacturing and developing computing, networking hardware, data storage, delivering services and designing of software. By 2012, HP was the largest PC vendor in the world following its unit sales.

Before establishing any performance management system, an organization should consider whether there are appropriate management practices put in place to support the process. HP has adopted a performance-based culture where the employees are encouraged to perform better and earn more. This culture is effective in the company as the employees are allowed to come up with original ideas and share them with the company. This program highly motivates the employees as they are able to contribute their ideas to the company and at the same time attain a high level of achievement. Through the performance related program at HP Company, the employees are rewarded at different rates depending on their attainment of thresholds, targets and aspiration goals. Most employees like working on a set target and the higher the target the higher the pay. This program enables the employees to set high target as the more the target, the high the benefits in terms of pay. The program is also beneficial to the company in that the company is able to increase its sales and services to the customers. This program has attracted many committed and dedicated employees into the organization.    

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