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Building the Culture at Agilent Technologies Back to the Future Case Solution

Solution Id Length Case Author Case Publisher
578 714 Words (3 Pages) Charles A. O'Reilly, Grace Yokoi Stanford Graduate School of Business : HR20
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Yes, the culture change that is being worked upon is essential for the company’s future success. This is because a large number of employees of Agilent Technologies are still in the transition phase; that is, they are not able to differentiate clearly between their previous work and practices against the current job requirements. Also, with Agilent now operating independently of their previous HP network and group, many of the redundant and slow processes of HP need to be transformed in the new Agilent Technologies. This is because the work of research and development requires employees to be more meticulous and also for establishing the success of this newly named venture. The culture change is also important to keep the workforce motivated and to ensure that the company is dynamic, even without the previous HP support and backing. Lastly, the methods of culture change so far seem sufficient; in fact the employees are currently over-burdened with all the changes that the management is bringing in.

Following questions are answered in this case study solution:

  1. Is the culture change sought by Ned Barnholt necessary for the future success of Agilent Technologies? Is it sufficient?

  2. What do you like most so far about the process of cultural and organizational change at Agilent? What do you like least?   

  3. What is your assessment of the changes in rewards and performance management adopted as part of Agilent’s HR transformation?

  4. What changes would you recommend in the content or process of Agilent’s culture change initiative going forward?

Building the Culture at Agilent Technologies Back to the Future Case Analysis

2. What do you like most so far about the process of cultural and organizational change at Agilent? What do you like least?  

What I like the most about the organizational change at Agilent is the concept of change agents and thought leaders. This is because such persons rise from within the company, are well-respected, and taken as role models. Such people are assets for Agilent Technologies as they are star performers and also motivate others to perform. Identifying and working with change leaders is a win-win situation for the change agents as well as other employees.

What I like the least is the current ranking system that the management has enforced. There are problems with the ranking system: it is keeping the employees tied up unnecessarily and also has the potential to create professional jealousy in the organization. This is because, firstly, the ranking system is a complex system that the management has introduced which employees are having trouble understanding currently. Secondly, those falling on a higher rank are likely to face jealousy and confrontation in the company from those falling on a lower rank.

3. What is your assessment of the changes in rewards and performance management adopted as part of Agilent’s HR transformation?

The changes in rewards and performance management appear comprehensive and fruitful. However, such changes are supposed to be looked at in a long-run perspective; the fruits would not be visible in the short-run. Hence, a lot of patience is required at all levels to see the results of the changes. One of the best changes to the performance management system is empowering the managers to make decisions as opposed to the conventional top-down approach that was employed at HP.

Secondly, the recognition and non-monetary rewards are a great initiative in this programme. As some employees have already pointed out that salaries are not the main motivating factors, it is many other factors, which then become important to keep the workforce motivated. For example, thank you notes, greeting cards, informal dinners are all factors which bring the employees close to each other and hence should be continued in the transformation process.

4. What changes would you recommend in the content or process of Agilent’s culture change initiative going forward?

The content and process of culture change should run primarily as per the requirements and feedback of the workforce, who are direct contributors, as well as beneficiaries of the initiatives. Therefore, further recommended changes to the system are: improving communication networks, the role of management, and competitive position. Firstly it means that the top management should continue to emphasize on the vision and mission of Agilent Technologies. The employees would then be clear on what they are required to do in the change process. Secondly, the management should play a better role in establishing priorities and taking prompt decisions in the change management process. Lastly, the employees should be kept up-to-date on how the company is progressing as opposed to its competitors. The role of change agents, team leaders, and sales and marketing staff is larger in this case to specify the company’s position to its internal customers (the employees).

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