Analysis of HP Inc

Its future growth is expected to come from BRIC countries -Brazil, Russia, India, and China which are already contributing about 33% of company’s revenue. Its total costs for the year 2007 is $95 billions considered too much, though it has been already engaged in cost cutting measures. (HP Annual Report 2007, p 6)
The company’s future strategy should be directed towards reducing costs which is the hall mark of its annual report and it is observed that another key factor is eliminating avoidable litigations which might comprise of sizeable percentage of its costs. Unless these issues are addressed as a ‘change management’ strategy, results i.e cost cutting will be difficult to achieve. The tool at hand is Nadler-Tushman Model (1980) to diagnose the organizational behavior at HP Inc (Nadler &amp. Tushman, 1980) Change implementation is a complex process affecting the human and organizational behavior for which Nadler-Tushman Model will be useful as a road map. The model will show the fit of elements with one another in a system. The fit process is what is known as congruence by which the model is known. Nadler and Tushman (1980) have said that the model helps identifies areas to be focused to improve performance, in this case, cost cutting, for which change in the organizational behavior is a must. …
The resources, information and feedback from the environment will make it conducive for the HP inc to implement change management for cost cutting and avoiding litigation.
The key environmental elements serve as inputs which are responsible for influencing costs for the organization. They are regulations, market fluctuations, suppliers of raw materials &amp. other inputs, rival firms in the market and others. Besides, funds, know-how and data are resources as one of the inputs apart from environmental elements. Past experience as history also serves as one of the inputs. The model says that inputs undergoing transformational process should result in achievement of effecting change for ultimate goal of cost reduction in various spheres and eliminating avoidable litigation as outputs. The relationship between inputs and outputs along with transformation process are shown in the figure 1 below.
Figure 1 above
The starting point of the transformational process is the ‘task’ which involves use of latest know-how to eliminate wasteful process aimed at cost cutting. It will include changes in the work flow, procedures and processes. In house development of know how must accelerated so as to avoid maximum possible patent costs as well litigation costs. The solution lies how these changes are managed through people as individuals, formal and informal organizations. People would accept changes provided they do not affect them in any manner in the first place. So they recognize future events as a result of changes through what is called perceived justice which should result in fairness in work distribution, assignment and how they are achieved in the process. Further, rewards should be fairly distributed and there should be fairness in