Performance Management Appraisal of Hewlett-Packard (HP)


Hewlett-Packard is believed to be one of the most popular companies in the world. It markets all over the world and distinct locations. Monthly bill Hewlett and Dave Packard founded HP in the entire year 1939. The company has its own philosophy to realize success and stand not the same as its competitors on the market. Management by Targets (MOB) is one of the successful trends carried out by HP Company to measure its performance management and appraisal system. Therefore many companies were following this method for evaluating their performance management. The objective of this record is to recognize the performance management performance and consistency of appraisal and also discover the durability and limits at HP Company and also to make suggestions regarding their limits and possible ways to triumph over them (Armstrong 2005).


Hewlett-Packard (HP) is a multinational company marketing allover the world. The company offers an array of consumer and IT products such as personal computers, Laptops, producing machines and services, Printer ink, Toner & newspaper, Monitors, Accessories and software's, Scanners, Smart Devices etc.

The HP Way

The HP way is not totally different from other company's management idea. However the company has got its own key points and management frame applied by its founders in approaching the top to underlying part level management in unique way. It means that the company should trust and value every individual plus they have confidence in their employee's intellect contributes to company success plus they implemented decentralized system (Peter Burrows business week 2004). This leads HP Company to wthhold the second top most places in the hardware industry internationally (Hardware Top 100 2010).

System Aims

Performance management is an activity carried out by organizations in order to achieve the firm goals by determining their employee's performance separately and in teams (Armstrong & Baron, 2005). The management levels varies from organizations to organizations thus every management has its performance appraisal system to recognize, support, ascertain problems, develop and appreciation to the employee's respect their work performance (Sims 2002a, p. 81). Performance management evaluates the company's performance of the employee's, which helps to give effective responses in order to improve their employee's working performance and to succeeded organization focuses on. The organizations goals are believed to be the long-term goals and to attain that performance appraisal system are to be carried as short-term goals. Controlling process, which is the most important role of any organization to monitor the individual employee's performance which helps to compare the employee's performance and to analyses the entire management performance (Sims, 2002a). The essential need for handling system is to initiate performance principles, observing performance of the employee's and checking it with the principal concepts framed by the business and finally taking required action to manage the performance.

Performance management at HP

Hewlett-Packard applies the product quality management therefore their organizations target and objective can be involved about the best customers. Therefore, HP employees practice the system called "Management by Aims" (MOB). This system has structured the company objectives into two elements as long-term goals and short-term targets. These targets were talked about between their particular management levels that are connecting the performance conditions with the average person employee's so that section vise were negotiated. The Management by Aim (MOB) scheme finds how the employee's complete their job successfully, which shows the process of mentoring and instruction. This process is made efficient by interconnecting the monitoring process at all levels throughout the HP Company. MOB also requires in the strategic planning of HP Company as a part that describes desire to or goal of the business. The business's top management will involve in performance management system and presents the performance appraisal process to the employee's and given chances to fix their goals. Even the workers at underlying part management level should participate in the procedure of decision making by suggesting their views for attaining targets successfully this process is completed for every half a year between all levels. The Mob's objectives are to serve as day-to-day to assist in making decision for tremendous growth of the business. Dave Packard believe in " if HP made every individuals understanding their company aims and goals and what the company planning for, they could easily get every employee's slim attention towards attaining the goal". This is known as the "HP Way. "

Frequency of Appraisal:

It is an activity of figuring out the employee's characteristics through the working period that essentially indicates quantitative and also qualitative top features of management performance. This can be identified by adopting certain appraisal methods in order to find the way the employee's work effectively and perfectly. Accordingly performance appraisal has goal setting and performance analysis as arching focuses on. These targets are combined as a result of performance management conditions used by the professionals/supervisor to be able to encourage the employee's giving proper command about how precisely to transfer leads to compete distinct degrees of performance.

1. Goal Setting

In HP Company they usually practice the HP Way, corresponding to it they provide value and importance to each individual staff, therefore people in top-to-bottom level management have decided their goals. According to Bill Hewlett (co-founder of HP) a organizations performance should be assessed by establishing of Goals also that needs to be measurable in both qualitative and quantitative terms for productive management performance (mystrategicplan).

2. Performance Evaluation

In Hewlett-Packard, the performance evaluation method is integrated as a basic development device. The company conducts frequent meetings by confusing with all level of management people at one roof top to judge about the management performance quarterly. Based on the HP Way the employees receive full freedom to put their demands and ideas in the getting together with and their ideas are strongly reinforced. They practice an informal way of nearing to the research the performance of its management giving feedbacks to the employees on a continuing basis. This reflects and made the business to bring in 360-level and MOB appraisal method as measuring the business's performance.

Method of Appraisal

Management of Objectives

In HP Company their management's performance is analyzed by carrying out the management of targets appraisal method. Through this technique the company find their employee's ranking through the work time and the ones who attain top rating are awarded with promotions and offers on the other hands the employee's who acquired poor performance rating will be studied necessary activities to make them correct consequently. This appraisal system followed by the Hewlett-Packard Company steps both qualitative and quantitative aspects of their employee's performance. The business follows a quality management hence their objectives

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