Hewlett Packard and Compaq Computers Research Paper

Hewlett Packard and Compaq Computers - Research Paper spokesperson tally to Palo & Houston (2001), the merger of Hewlett-Packard Company (NYSE HWP) and Compaq Computer Corporation (NYSE CPQ) was meant to create an $87 billion global engineering leader. The main aim of the new HP was knowing to offer the industrys most complete set of IT products and work for both businesses and consumers with a commitment to serving customers with open systems and architectures, (Palo & Houston, 2001). The combined social club was expected to create harbor through significant cost structure improvements and access to new growth opportunities. According to Fiorina, the strategic benefits of combination highly complementary organizations and families were set to immensely benefit the customers. The synergies of these companies were expected to create a value of $25 billion and this merger was supposed to be a force to reckon with in the IT sector, storage and forethought softw be. This merger wa s a ill fortune because the new culture was not compatible with the HP manner of doing business. According to Malone (2002), the major resistance came from the management of HP since they felt short convinced by this newly merged company given that the culture was so alien to the HP legendary way. From the onset, it can be seen that there is no mutual understanding between the parties from the both companies and this is the reason why there is a revolt curiously from HP management. Thousands of employees believe that the HP way, the companys influential and unique culture is the most rich asset that has led to the success of the organization hence the reason for fears that a merger would destroy this culture. However, Fiorina differs with the views former(a)wise people who support the HP way. The new CEO did not follow the dictates of the HP way and this is where she failed the hale deal. It can be seen that the notion of organizational culture is very important since it det ermines the success or failure of the company. The culture of the company mainly spells the way people in a particular company are supposed to behave. People in a particular organization create values and norms from the culture that obtains in that particular company and these values shape their behaviour. Any attempt to deviate from these values is likely to be met with stiff resistance from the employees like the case in this merger of HP and Compaq computer companies. Change in an organization is something that is often resisted by many employees since they do not want to change their usual way of doing things in the company. Change entails that workers will be forced to acquire new knowledge in aver to be in a position to operate effectively under the new culture. Any change initiative that does not have the support of the stakeholders such as the employees is likely to fail since it would be designed to fulfil the needs of a few people. The other reason why the merger of the g reat two companies failed is that the CEO failed to effectively communicate her plans to the stakeholders. She chose to be secretive and this impacted negatively on the outcome of the merger. The other reason why the merger failed is that the CEO of the new company used an autocratic style of management. She undermined the erudition as well as valuable ideas of the employees while she expected them to support her ideas