Institutionalization is embedding change processes brought on by effective interventions to an organization’s functioning for a prescribed period of time. Moreover the process of institutionalization consists of socialization, commitment, reward allocation, diffusion, and sensing and calibration. They are the by-products of two dimensions: organization characteristics (such as congruence and unionization) and intervention characteristics (goal specificity and programmability).
When Hewlett-Packard (HP) acquired Compaq in 2002, the combination of these two dimensions produced the institutionalization processes. According to Cummings and Worley (2009), there are five factors of the institutionalization process (socialization, commitment, reward allocation, diffusion, and sensing and calibration) that determine long-term implementation of interventions. In other words, the degree to which these fa...
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...ist organizations must maintain constant vigilance over environmental forces such as the economy and internal forces such as employee actions and behaviors that undermine the change process (Cummings & Worley, 2009).
Change strategies are part of every organization’s design. In order for an organization to have success with implementing persistent change all or the majority of institutionalization factors outlined must be present. The most compelling aspect of Hewlett-Packard’s interventions was emphasis on targeting the level of change at both the organization and department level. Finally, the aggressive structural changes Hewlett-Packard initiated during the course of its existence reflects the strategic planning and risk associated with sustaining a competitive advantage in the highly volatile information technology industry.
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