Organization Theory and Design in Dell Technologies - Essay Example

Since its inception, Dell's organization has gone through a metamorphosis similar to the industry that it serves. Initially Dell Corp was founded byMichael Dell in 1983 who today remains as the Chairman of the Board. The organization has gone from a one man show in 1984 to a world-wide conglomerate shipping more than 10 million systems per quarter (4Q FY06) and is now listed as America's number one admired company. The company's culture, like Michael, has changed as he and the company grew older. From a brash, young college drop-out of 'about 19 years of age' to a seasoned Chairman of the Board, Michael now runs a company that grosses more than $14 billion dollars per quarter. The company has been able to sell its product on a worldwide basis, because the products are easy to use, and do the job that they are touted for, but the company's culture also spells professionalism. No company in the world that has accomplished as much as Dell has could do so in a 'fly by night' manner. This success speaks volumes for the company's leadership. The leadership, from top to bottom, is composed primarily of individuals much like Mike (and in this case not the one who can dunk a basketball). Observing these individuals through the company's website is a lot like looking at men, and a couple of women, who dress and portray the image of professionalism. Each, with few exceptions, is wearing a suit and tie, or similar fashions for the women, and conservative white shirts. This overall picture of serious minded people seems to set a standard for anyone who wishes to interact (at least on the management level) with Dell employees. Whether this perception is reality, or whether the leaders of the organization are truly as professional as they seem and if that professionalism carries over to the rest of the employees is a question that can, and cannot be answered by observing the company's website. The question can be answered if the professionalism of the website itself is an example of how the company is conducted and managed. This particular website is easy to navigate, has very few grammatical or spelling errors that would seem to imply an "I don't care' attitude, and with the website's professional look the impression that is created is one that Dell cares enough about how it is perceived that even such items as the website shows care and diligence. On the other hand, the website is only a picture of a certain segment of the organization itself, and even though it is a relatively clear and unambiguous picture, it could portray only what the company wishes to portray. That seems to be the less than likely scenario, although one that needs to at least be considered. Another telling factor in being able to discern a professional environment at Dell, is the massive amount of growth mentioned earlier in the paper. There is very little likelihood of one man creating a small company in 1983 and within less than 25 years watching that company grow to $50 billion in sales every year. There is very little likelihood of that happening unless, of course, there was a fair amount of professionalism found within the company. That type of environment feeds upon itself, with most individuals emulating those cohorts that they come in constant contact with. As new employees enter the scene, they tend to emulate what they see, adhere to the standards already set, and follow the guidelines (written or unwritten) that they perceive. Therefore; professionalism begats more professionalism, which begats more professionalism, and so on and so on. The environment then becomes a self-fulfilling proponent of success (at least in Dell's case). Much of this professional attitude must start from the top and filter down, which says a lot concerning Michael Dell and his executive staff. The executive staff and the leaders at Dell have control of the company and seem to realize what a responsibility that control is. By participating with other standards organizations as well as lead their own groups, these individuals influence not only the environment in their own company, but also greatly influence the directions and standards of many other companies as well. Examples of this influence is the list of key personnel at Dell (listed on the website) who also participate in outside organizations, and not only by attending once per month meetings, but many times by being on the boards of these other organizations, or at the very least in positions of great influence. Individuals such as Winston Bumpus who is the director of systems management architecture and standards for Dell are good examples. Bumpus, who is also the president and chairman of the board of the Distributed Management Task for and is co-chair of the OASIS Web Services Distributed Management Technical Committee, or Liam Quinn who is the director of communication technology strategy and also represents Dell on the Wi-Fi Alliance Board and chairs the Wi-Fi Alliance Spectrum and Regulatory Committee are excellent examples of this influence. Liam not only works with business committees but is also on the board of directors of the Wireless Networking and Communications Group at the University of Texas at Austin, so not only is he influencing the business world, he is also influencing the future generation of technology by working with hand in hand with the education world as well. There are a myriad of other Dell employees that are too numerous to mention that have as much or more influence in different areas as well. It is this type of environment that allows the opportunity for not only Dell's success but for individual employee success at Dell also. That is only part of the picture however, there must not only be an environment of success to enhance the likelihood of that success, but there must be some strategic direction as well. Michael Dell had this to say about what the future may hold for the computer industry; "I still believe the industry is in its early innings in terms of its development and (rate of) change, and certainly the pervasiveness of very high-speed broadband connections, fiber, very high-speed wireless, which will change where and how computing occurs around the world." "But the PC is an indispensable part of how productivity and entertainment, education, medicine works today in society." (Krazit 2006) Obviously Michael has overseen the tremendous growth of Dell and therefore had to have had some strategic direction for the company to follow. While Krazit interviewed Dell he asked him about the future and how Dell fit into that future. Michael reiterated that the strategic objective of the employees of Dell (the company) was to work in collaboration with its customers in order to foster an environment that allowed for innovation and growth. Dell's employees echoed that sentiment. "At Dell, our approach to innovation focuses on customer requirements. Customers define what is important. Dell innovates internally and through collaboration with other in the industry. Many of Dell's innovations are shared through standards, rather than locking customers into proprietary solutions. Customers gain flexibility and real value. This approach is direct, customer-driven innovation." (Kevin Kettler, CTO). When a company has its employees spouting the company line, and actually sounding like they mean it, then it is likely that there is more to the company than the bottom line. There are not many companies realizing that the right way to enhance the bottom line is by offering the customers what it is they really desire. Dell seems to be one of those companies, not just by the strategic design that it espouses, but also by the fact that it actually follows through on that strategy. The company fulfills its customer's desires for a higher quality, more flexible system in which growth can be enhanced. That could be one of the main factors for Dell to have experienced the phenomenal growth that it has experienced, and continues to experience throughout the years. A professional environment that is enhanced by fulfilling customer's desires for products that are innovative and high quality created by employees that believe, work and thrive in a culture of flexibility and growth. Who would have imagined that such an organization would exist, and become as large as Dell has, not many would or could, which proves that a company's environment does count, that a company's culture can have an effect not only on the individuals who work for the company, but on many outside groups and individuals as well. It is interesting that the environment of such a company as Dell, coupled with its strategic direction and its leadership would have such a positive effect, but the numbers do not lie. Dell is now approaching $50 billion in sales per year, and that says it all. Works Cited Krazit, Tom. Dell Reflects on 25 years of PCs. (2006) http://news.com.com/Age+of+computing+The+PC+turns+25/2009-1042_3-6099132-2.html, accessed August 17, 2006 http://www1.ap.dell.com/content/topics/global.aspx/corp/en/homec=hk&l=en&s=corp. accessed August 17, 2006 Read More