Rational Choice in an Uncertain World

5/26/2018 Rational Choice in an Uncertain World

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Running Head: RATIONAL CHOICE IN AN UNCERTAIN WORLD

Rational Choice in an Uncertain World

An Assignment Submitted by

Name of Student

Name of Establishment

Class XXXX, Section XXXX, Summer 2012


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RATIONAL CHOICE IN AN UNCERTAIN WORLD

Table of Contents

Purpose of the paper........................................................................................................................ 3

Introduction ..................................................................................................................................... 3

Background ..................................................................................................................................... 3

Statement of Problem ...................................................................................................................... 4

Description of Decision Making Process ........................................................................................ 6

Research proceduresused in managing diversity by Hp ............................................................. 6

Implementation of diversity management strategies at Hp ......................................................... 7

Hp diversity approach ................................................................................................................. 8

Facing increasingly multicultural labor force ............................................................................. 9

Gender non-discrimination practices at Hp ............................................................................... 10

Proposed evaluation system to assess the effectiveness of diversity management strategies at Hp....................................................................................................................................................... 11

Conclusion .................................................................................................................................... 12

Appendix ....................................................................................................................................... 13

References ..................................................................................................................................... 14


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The purpose of this paper is to describe and analyze an issue, experienced by your organization,

which requires, required, or will require a resolution to be determined through the decision-

making process. Accordingly, the paper will describe and analyze diversity issue within Hp.

In the recent past, increased globalization, high labor force diversity and complexity of

jobs has result in increased diversity within organizations. Indeed, diversity has become a central

aspect in many organizations (Ruffano 2005). Though, there is no one single definition of

diversity, it can be defined as the difference in social and cultural backgrounds among individual

working in the same organization (Barak, 2005). As restated by Ruffano (2005) diversity

management has become a critical business issue among organizations with multicultural

employees. It diversity management affects the performance and efficiency of employees and an

organization in general. It is against this background that this paper as sought to tackle this issue

in a practical organization. Accordingly, this paper will analyze the issue of diversity

management at HP, leading multinational Information Technology Company. The paper will

start by giving the background of the company, and subsequent sections will discusses the

concept and models the company has used in its diversity management.

Established in 1939 by two friends Bill Hewlett and Dave Packard, with its headquarters

in Palo Alto, California, Hp has continued to gain praise for its innovative products, competitive

spirit and ethical operations (www.hp.com).

Presently, Hp has expanded to become the leading seller of personal computers and

software in the world. It has a workforce of about 349,600 workers across the world, and in 2011


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its revenue stood at $127.4 billion (www.hp.com). The company boosts of effective

management, innovative product range and huge market share (estimated at 20% of the worlds

share in personal computers). The company designs, makes and services a range of products and

systems for computation and communications. Hps products and services consumed and applied

in industries, education, healthcare, business engineering and even at home. Since it has a

presence in 120 countries across the world with a workforce of about 349,600, it has a

multicultural workforce that has created the challenge of diversity management (www.hp.com).

However, as early as 1940s, Hp had foreseen this issue and responded by formulated the well-

known the open corporate culture concept. Groeger (2008) as points out that the two

founders of the company formulated a management style that was new in the corporate cycles,

referred to as management by walking around. Later, the company coined a new term of

corporate culture termed the Hp way. All these efforts were meant to ensure that the

management creates an approach that can address diversity management.

As stated before, Hp is faced by the challenge of diversity management. The increasing

diverse workforce in the company presents a continued demand for successful interaction among

this diverse workforce. Individuals experiences of diversity and concepts of diversity

management matters since they inform recruitment processes and what occurs after the

recruitment. The diverse global labor force has moved diversity management to the peak of

management issues. Labor force migration, gender as well as ethnic differences have continued

to radically transform the composition of the labor force, making the diversity issue more

complex. A number of studies have noted that diversity though challenging can be used creates

creativity and innovation, hence, diversity presents both challenges and opportunities to an


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organization. As such, Hp understands that if it effectively handles diversity, it exploit the

opportunities that comes with diverse workforce.

As Barak (2005) points out, diversity becomes beneficial when organizations wishes to

expand its strategy, tactics, viewpoint, reposition, or launch a new product or service. If the

organization effectively managers diversity, it will be in a position to reap from synergistic and

cultural benefits such as improved innovativeness, flexibility and improved communication.

Indeed, Ruffano (2005) argues that when diversity is successfully management, it become a

competitive advantage for the organization. Ruffano (2005) adds that, to survive present day

competitive environment, organizations need to predict and respond to business changes. Ability

change entails ability to learn and this requires diversity.

On the other, when diversity is not successfully managed it create problems to the

organization. This will be through reduced productivity and low moral among employees. It can

as well hinder creativity and communication with the organization. Such problems are common

in organizations that seek convergent processes, where employees are required to think or

conduct themselves in a similar manner(Barak, 2005). However, bearing in mind that people

comes from different cultures; such an attempt may just increase confusion and ambiguity in the

organization.

The above overview of the issues underscores the complexity of the diversity issue. As

noted by Ruffano (2005)diversity presents a double edged knife; thus the challenge of diversity

management is to formulate conditions that reduce its possibility to hinder performance, whereas

increasing its possibility to increase performance.


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Research proceduresused in managing diversity by Hp

As noted by Alder (2002). the managers ability to identify diversity and its possible

benefits and costs determines how an organization will deal with diversity management.

Accordingly, Alder (2002) established three ways to manage the diversity, these are parochial,

ethnocentric and synergistic (see appendix). Hp carried out both employee and customer surveys

in relation to its diversity management practices. These surveys established the effectiveness of

the previous diversity management practices at the company. Through these surveys the

company was able to select synergistic approach to address the diversify issue. This approach

underlines cultural contingency as the best way to approach the issue of diversity management.

Synergistic approach recognizes the similarities and differences among various cultures that exist

in a global organization such as Hp. These similarities and differences are seen as beneficial in

designing and advancing organizational structures and systems (Alder, 2002).

Alder (2002) formulated four steps necessary to create cultural synergy (see figure 1).

After the research carried out by the company, it went through these four steps to attain this

synergy. Similarly, Alder (2002) as well established five strategies that can be used to manage

cultural diversity (see, figure 2). The most effective strategy is cultural synergy that can be

achieved by appreciating different cultures while maintaining self culture. While applying this

strategy, Hp has tried to uphold cultural synergy by treating markets, workplaces and community

differently. When Woking with individuals who hold different views, a person can learn to view

challenges from different viewpoint, learn new approaches of tackling problems, and therefore,

can help in creating cultural synergy. This is what the company has done.


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In doing the research that resulted in the company adopted the synergy approach; the

company involved the management, the employees and customers. All these groups were

important because they are the stakeholders in the company. In addition, they are directly

impacted by diversity issues and therefore, their participation is necessary for the success of the

strategies adopted to address diversity management.

Implementation of diversity management strategies at Hp

Hp began its diversity management practices at its inception through its open corporate

policy. Accordingly, this management approach was termed as management by walking


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around, this was motivated by the belief that each employee wanted to go a great job. Hps open

culture brought an environment of trust and shared understanding in its early years. Hp believed

that trust was key t its profitability and growth.

In 1957, when Hp went public, it formalized its policy of the Hp way. This unique

organizational culture is founded on the set of five organizational values and seven company

objectives. The five values include, trust and respect, teamwork and flexibility, uncompromising

integrity, high standard of achievement and innovation (www.hp.com).

According to Dong (2002), Hp way is a management approach that focuses on

integrity, teamwork, creativity respect and corporate social responsibility. Dong (2002) asserts

that this culture initiated by Hp has spread across the Silicon Valley and is acknowledged as the

foundation of Hp as well as Silicon Valley success. When Hp merged with Compaq it restated it

five organizational values and included two more values, passion for its customers and agility

(Dong, 2002). Indeed, when the founders of the company (Packard and Hewlett) passed on, they

were mainly remembered for the Hp way culture they had created.

Hp diversity approach

Hp diversity and inclusion approach is well outlined as shown in figures 3; these figures

illustrate Hps practices and achievement in relation to diversity. At Hp, employees have been

taught to understand that diversity and inclusion are a requirement for creativity and innovation.

Throughout the various Hp branches across the world, employees are putting their individual

differences aside to work towards the goals and objectives of the company. The company has

continued to create a diverse and inclusive work environment. This is not a one time process, but

a continuous process that has taken years and has been by values and effective leadership.


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The company views diversityas presence of many exceptional persons within the

company, the industry and community. Diversity in this case entails men and women from

various countries, cultures, environment, ethnicity, skills, competencies and other aspect that

create differences that make each employee unique. Inclusion as used by Hp implies creating

work environment where all the people working in the company have a chance to fully

contribute towards the success of the company. At the same time, the individual is valued for

his/her unique skills, competencies and thinking. Inclusion as well entails forming a global

community where the company connects each person trough innovative products and services

and its cutting edge workforce. Indeed, the company has managed to integrate diversity and

inclusion firmly within the company.

The company has acknowledged that creating a diverse and inclusive workplace is a

continuous process that needs regular renewal. Each stage in this process has its importance that

has to be remembered. All these stages create a diversity value practices applied by the company

in building its competitive global labor force and work environment.

Facing increasingly multicultural labor force

With growth and internationalization of Hp to different regions and countries, its

employees have become highly diverse, though they have helped Hp to achieve its full potential.


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Developing and appreciating the talents and skills of each employee creates new ideas to Hp.

Accordingly, the company has been able to benefit immensely from the creativity and innovation

resulting from individuals who have varied experiences, viewpoints and cultures. This aspect is

the driving force of inventions that are witnessed at Hp. The highly multicultural labor force at

Hp has helped the company to win the high competition present in the marketplace. In return,

Hp has ensured that it provides an inclusive and flexible environment, which motivates

employees to give their best. The company understands that to serve its customers well, it must

be able to attract, nurture and retain diverse employees. Towards this end, the company has

cultivated the values of trust, dignity and mutual respect as basic beliefs that are demonstrated in

the conduct and behavior of its employees.

Gender non-discrimination practices at Hp

Hp has undertaken non-discrimination policy; this is done through electronic job posting,

domestic partner benefit and, non harassment conditions. Since its inception, the company has

shown a continued commitment towards its employees and fair labor practices. Accordingly, its

policies and supporting practices in relation to gender non-discrimination entail a set of values

comprising of a deep understating that each and every employees should be shown respect and

dignity. In view of this, the company does not allow any form of discrimination against its

employees or potential employees on the basis of creed, race, gender, religion, color, age,

disability, national origin or any other aspect that result in discrimination. At the same time, the

company complies with all relevant local and national laws regarding non-discrimination and

equally opportunity.

These efforts and practices of Hp towards non-discrimination have been recognized by

various regulatory bodies. This has been demonstrated by the high scores the Hp has continued


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to get on the Corporate Equality Index that are given by Human Rights Campaign Foundation

(www.hp.com).

Proposed evaluation system to assess the effectiveness ofdiversity management strategies

Assessing and evaluating diversity is difficulty and requires much time. However, to

effectively manage diversity, the company will have to implement different initiatives to assess

and evaluate its diversity management practices. There are several methods that can be used;

these include employee surveys that can be used to collect data to establish their views one year

after the previous survey was carried done. Data gathered from these employee surveys will give

the company a basis to make yearly comparisons about its diversity management practices. In

addition, this information can be reviewed to establish performance in areas such as selection

and hiring, turnover rates and employee retention. More so, data can be used to establish if

workers from diverse groups are represented at each level of the company, particularly at the

management level.

Apart from employees surveys, the company can as well use annual performance

reviews and 360-degree feedback to evaluate its diversity management practices. The annual

performance method can be used to establish if the various units within the organization are

achieving effective and profitable performance by using a more diverse workforce. The 360-

degree method can be used to offer employee feedback relating to how managers address

diversity issues. The results can be used by the management to improve on how it addresses the

diversity issues.

Additionally, the company can use customer feedback and employee focus group to

evaluate its diversity management practices. The focus group will be used to collect information

from employees to establish their viewpoints on diversity practices implemented by the


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company. Customer feedback will allow the company to get feedbacks from the customers if

their diverse needs are being satisfied through the products and services from the company.

The above evaluation methods can be used simultaneously to provide a broad perspective

of the effectiveness of the companys diversity management practices.

Diversity has become a challenging issue for many organizations. Indeed, diversity

management is a complex issue that requires effective strategies to deal with it. Companies that

are able to deal effectively with diversity are able to create a competitive advantage. As seen in

this paper, Hp has tried to address diversity management by creating cultural synergy at its

workplace. However, this paper suggests that some improvement can be made, for instance, the

company need to develop leadership skills, give feedbacks in a sensitive manner, and promote

cross cultural awareness. In addition the suggested evaluation methods can be used to pinpoint

areas that need further improvements. It should be understood that culture is dynamic and to

effectively address diversity, strategies implemented must be regularly reviewed to cope within

changes cultural trends.

Form this paper, its certain that Hp provides a good example of how diversity can be

managed. Indeed, other companies can use this case study as an example of how they should

address the issue of diversity in their companies. With the globalization ever taking place, we are

bound to see more and more diverse individual working together in the same workplaces and

increasing the complexity of diversity management.


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Alder N (2002).International Dimensions of Organizational Behaviour: Fourth Edition, McGill

University, South-Western, Thomson Learning

Barak M (2005).Managing Diversity towards a Globally Inclusive Workplace,Sage

Publications, London

Dong J (2002). The Rise and fall of the Hp Way, Palo Alto Weekly, Online Edition

Groeger M (2008).The Hp Way, an Example of Corporate Culture for a Whole Industry :

Accessed On 28/9/2012 from: http://www.silicon-valley-story.de/sv/hp_way.html

Hp (2012): website, www.hp.com

Ruffano N (2005).Making Diversity Work, Net Effects Series, Pearson, Prentice Hall,Upper

Saddle River, New Jersey

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Rational Choice in an Uncertain World

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