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Organizing at Dell Computers
Thanks to significant changes in the personal computer marketplace, the performance of Dell has been on the downward spiral. Most notably, Dell has been known to keep off from the negotiating table even at a time when its rivals were rejuvenating their operations through mergers and acquisitions. However, since Michal Dell made a comeback, there has been a change of strategy at Dell with the chief executive promising far reaching changes to take the company back to where it was just five years ago. It can however be noted that for an organization like Dell to make significant strategic changes, some adjustments have to be undertaken in the organizational structure as well. In this text, discuss the primary initiatives adopted by Dell to turn around the PC Company. In so doing, I will also give a personal opinion on whether Michael Dell stands much chance in restoring the lost glory of the firm.
Turning Dell Computers Around: Initiatives Implemented by Dell
Apart from spearheading changes in the prevailing culture of the management at Dell Computers, Dell has also overhauled the management team by bringing in executives from global players like Motorola and General Electric. One notable addition Dell's executive team is Garriques...
Garriques was head hunted by Dell to enhance customer focus by styling up the designs of consumer PCs. When it comes to the change in culture amongst the firm's management, the move is founded on the need to change the mentality of executives so as to ensure they are not conditioned to be risk averse.
It can also be noted that Dell has gone ahead to embrace a more decentralized approach to decision making. This can be gleaned from relative discretion executives have in making important decisions. According to Montana and Charnov (2006), decentralization facilitates decision making as there is no existing need to make consultations with those in the higher levels. It therefore means that with delegation of authority to lower levels, Dell's flexibility in enhanced given the highly dynamic marketplace it operates in. For instance, managers of divisions have the absolute discretion of determining how the targets (financial) of their divisions are met.
Further, Dell is keen to ensure that the company's customer focus is enhanced. This can clearly be demonstrated by the creation of a consumer design unit headed by a former heavy-hitter at Nike, Ed Boyd. This move could be successful in sending a clear…
References
Edwards, C. (2009, October 15). Dell's Extreme Makeover: How Michael Dell is Trying to Change Almost Everything About The Computer Company He Founded. Retrieved June 20, 2011, from: http://www.businessweek.com/magazine/content/09_43/b4152036025436.htm
Griffin, R.W. (2007). Fundamentals of Management. Cengage Learning.
Montana, P.J. & Charnov, B.H. (2008). Management. Barron's Educational Series.
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