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Organisational Structure of Dell Company

Paper Type: Free Essay Subject: Business
Wordcount: 1464 words Published: 1st Jan 2015

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Organisational Structure is the hierarchical framework within which an organisational allocates rights and duties, and arranges its line of authority. Organisational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. In a centralized structure, decision flow from the top down. In a decentralized structure, the decisions are made at a various different levels. A good organisational structure can often spell the difference between a smooth operating organization and one in chaos. By establishing a hierarchical structure with a clear chain of command, companies are better able to streamline their operations.

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Organizational structure is not static, but rather with the internal and external environment in which companies’ change and enterprise adjustment strategy for enterprise organization structure. This paper mainly discusses the basic organizational structure and strategic relationship to “Dell” as an example, Dell’s strategy for the evolution of and in accordance with the strategic how to adjust its organizational structure, so that the two promote each other’s development, analysis, Dell in the matching process in the neglected problems that can not buy that? Finally from Dell’s strategy and the organizational structure of the matching process of revelation, given the organizational structure of the process of how to adapt to the strategic principles and policy proposals. 


DELL Organisational Structure:

 Dell (Dell) companies in 1984 by entrepreneur Michael Dell founded the Computer industry; he is currently the longest-serving CEO. Since Dell entered the Chinese market, choose a unique Marketing approach allows Dell jumped the sky. Dell’s direct sales model, collaborative supply chain, direct service and efficient marketing system combined into a whole for the Dell won the unparalleled competitive advantage to Dell’s from a little-known small company into the computer Industry giant. 

Dell Corporation’s organizational structure is a functional, decentralized structure. The company encourages different departments and functional components to contribute ideas to enhance the strength of the organization. The hierarchical structure provides defines the various functions provided by Dell Corporation, including Business Development, Education, and Global. A decentralized structure provides more learning availability for all members of the enterprise, as decisions come from various levels; in contrast, the centralized structure has more of the decision-making coming from the upper levels of the enterprise, such as the CEO and Vice Presidents. In the divisional organization, every division has its own groups to support that specific division (such as purchasing units and human resources units).

Within Dell’s organisational Sales and Support divisions, the structure is quite typical of the technology sector – each division has a senior manager, who oversees the work of the division with a group of team leaders, who each have responsibility for a group of employees. The workforce is dominated by Sales and Marketing staff but also includes a significant Technical Support staff, as well as personnel working in Finance, Business Operations, IT and Human Resources divisions. The workforce in Dell is non-unionized.

Dell markets its products with the promise of the “Dell Advantage”, which refers to a company that is easy to deal with, easy to trust, and where the customer’s needs are paramount, so that each customer essentially has a customized PC built according to their specifications. In this climate, excellence in Customer Service, from point of initial contact through product delivery and on to after- sales support, is one of the keys to high performance. Dell promotes and values continuous learning and has driven Business Process Improvements (BPI) into all elements of its operations. The approach has been to educate employees to think from the customer perspective and to use a methodology and toolset to improve everything they do. Lean Thinking and BPI have enabled Dell to contribute to Dell’s competitive advantage.

Cross functional teams look at end-to-end repeatable processes with a view to improving the customer experience, eliminating waste, reducing cost, increasing efficiencies and removing low or non value-added activities from employees. While the programmer has the support and involvement of senior management, the involvement of employees on the ground who use the process on a daily basis is fundamental to the success of the programmer. Through BPI and Lean, all Dell employees have the power to fundamentally change their day-to-day work processes. These results in a high degree of flexibility coupled with a team-based approach to problem solving, giving the company the capacity to respond effectively to new challenges. http://www.ncpp.ie/dynamic/docs/icd_dell_ireland.pdf

Levels of Dell Corporation:

Technical Level

Dell Corporation is a layered organization which consists of technical, management and community levels (Boone, Kurtz, 1992). The technical level is very important for Dell Corporation because of the nature of tasks it performs. Technology is the primary driving factor in this arena. It is concerned with specific operations and discrete tasks, with the actual job or tasks to be done, and with performance of the technical function. Within Dell Corporation technical level includes the physical production of goods. Accept computer technologies, accessories for these types of products are the next major market in the electronics industry. Along with accessories, the demand for “smart” appliances for the home and office will also grow. More and more consumers will want their everyday appliances to be Internet-ready and able to think for themselves. These areas are where PC and notebooks can find and exploit opportunities. As any company Dell Corporation must look for new trends in business development. Dell has 4,000 engineers and spends $600m each year on R&D (Dell Inc. Company profile, 2005).

Administrative Level

Another level of organizational structure is the Administrative level. In Dell Corporation it is concerned with the co-ordination and integration of work at the technical level. Decisions at the administrative level relate to the resources necessary for performance of the technical function, and to the beneficiaries of the products or services provided. Administrative level is concerned with those activities involved in recruiting of professional staff, training, and development within the organization and infrastructure, namely the systems of technology planning, finance, quality control, etc. which are crucially important to an organization’s strategic capability in all primary activities (Dell Inc. Company profile, 2005; Dell Inc. Home Page, 2005).

Decisions is concerned with mediating between the organisation and its external environment, such as the users of the organisation’s products or services, and the procurement of resources; and the ‘administration’ of the internal affairs of the organisation including the control of the operations of the technical function.

Institutional level

Institutional level is concerned with broad objectives and the work of Dell Corporation as a whole. Decisions at this level are concerned with the selection of operations, and the development of the organisation in relation to external agencies and the wider social environment. It provides a mediating link between the administrative level and technical level (Dell Inc. Company profile, 2005; Dell Inc. Home Page, 2005).

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It should be mentioned that in Dell Corporation there is not a clear division between determination of policy and decision making, co-ordination of activities and the actual execution of work. Most decisions are taken with reference to the execution of wider decisions, and most execution of work involves decision. Decisions taken at the institutional level determine objectives for the managerial level, and decisions at the managerial level set objectives for the technical level. Dell Corporation performs effectively having clear objectives and good communication.


Dell Inc. Company profile. Available at: http://biz.yahoo.com/ic/13/13193.html


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