Topic > Dell Computer Corporation - 1277

Dell Computer CorporationDell Computer Corporation was recognized as a leader in the personal computer industry in the 1990s. However, economic instability and the gaining of market share by competitors have heavily affected the company. In 2001, PC sales declined, layoffs were constant, and employees were disengaged. Therefore, to revitalize the company, a new philosophy called “The Soul Dell” was unveiled throughout the organization. However, the central issue for Dell was the methodology it used to develop and communicate its core values ​​to employees. As well as the inability of senior leaders to influence the paradigm shift from the existing organizational culture and support an effective change management process. Case Study Analysis Background / Culture Dell Computer Company is known for its meteoric rise to industry dominance based on founder Michael Dell's ability to transition temporary businesses of building and upgrading personal computers into an enterprise multibillion dollar (O'Rourke, 2010). Dell's business model involved manufacturing low-cost, high-quality build-to-order PCs called "Dell Direct". The direct shipping strategy to customers eliminated the need for intermediaries and gave Dell a competitive advantage (O'Rourke, 2010). The company's growth accelerated in the 1990s with over 38,000 employees and a global platform. Dell and Chief Operating Officer, Kevin Rollins, created a highly competitive, win-at-all-costs organizational culture where pay and promotions were based on exceptional performance (O'Rourke, 2010). Finally, in 2000, Elizabeth Allen joined the company as vice president of corporate communications. In 2001 the company went through an economic crisis. PC profit margins declined and remained...... middle of paper......, failed to properly diagnose the problem in order to identify all possible interventions needed to implement and sustain the change and the behavior they desired. Therefore, to achieve this change, Dell and Rollins must model the vision similarly to the methods used during the September 11, 2001 attacks. Additionally, they must ensure that management has bought into the vision and can clearly articulate it to their direct reports. Additionally, it is premature to incorporate cultural initiatives into employee performance management goals without a clear understanding of how the change will affect them. Employees must first understand the impact of the change on them and be empowered to provide input on its content and implementation. Finally, cultural changes take time. Therefore, senior leadership must remain committed to change until it is institutionalized.