Scope of change

• A. The Change for Staff

• Referred to as the most precious assets of the organization because without them,
the organization is crippled and cannot function effectively

• Because of the important role of employees, Dell Corporation has the

responsibility to motivate them so as they can function more effectively.
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• Theories of motivation such as Maslow’s theory, Alderfer’s theory, McClelland’s
theory, and Herzberg’s theory (1999) explain why employees and staff should be
motivated and why organizations should take this concept into consideration.
• what really constitutes effective employee motivation? Building a positive
communication with employees
• Communication basically uplifts the morale of an employee as it makes them feel
that they are valued by the organization. This also builds employee loyalty and
satisfaction.
•
• B. The Change for System
• Dell generated its first surplus due to cost-cutting
activities imposed by management.
• After that Dell Corporation realized that the
organization needs to pay attention on it customer
service
• To initiate this change, hired Consultants to gather
data about staff and customer attitudes.
• Result showed gap
• This initiated :change of the system from staff-
oriented to customer oriented
 The Change for Strategy
• organizational structure of Dell Corporation also
changed to a much flatter and slimmer structure
• directly reporting to the CEO
• To enhance staff integration and communication
within Dell Corporation
• performance-related pay was also introduced by
the management based on an appraisal system.
• major investments in ground facilities and IT in
order to adhere to the needs of its customers.
 PROPOSED ACTION

• Strategy 1: Product Development

• Distributors represent Dell Corporation’s
second largest United States channel
• Dell Corporation has more than 100
international distributors located worldwide.
• sell to both traditional and Internet resellers
and retailers.
 Strategy 2: Product Penetration

• The company is able to build awareness of its products and brands through mass
media advertising, public relations efforts and branded Internet properties.

• Initiated an e-commerce strategy to increase online sales and provide new

innovations in business class, which increases customer satisfaction.

• This is accomplished through the use of e-marketing campaigns

• company also makes it a point to receive feedback from its customers through
market research.

• Uses feedbacks to refine its product development efforts and marketing strategies
 Strategy 3: Enhancement of
Operations / Efficiency and
Effectiveness
• Dell Corporation’s incorporated Direct to
customer model
• This solved the problem for additional capital for
marketing and sales.
• selling directly to consumer it eliminated retailers
• Another advantage of this kind of system is the
firm is continuously in contact with its customers
 Strategy 4: Technology
Improvement
• Technology is an important source of
competitive advantage
• Technology is considered a strength of Dell
because the firm enjoys better access to
technology
• Dell introduced the latest relevant technology
much more quickly than companies with slow-
moving indirect distribution channels
 LEADERSHIP

• ‘’Transformational leadership style’’

• CEO Michael Dell applies this particular style
of leadership that involves inspiring
employees to transcend their own self
interests and work for the larger good of DELL.
• Articulates a vision that convinces
subordinates to make important and positive
changes in business process
 COMMUNICATION CHANGE

• Communication is indispensible in Dell Corporation.

• communication is a primary element for understanding how organizations
function and how members of the organization should, even must, behave in
organizations if they are to advance their careers.

• involves openly competitive activity, in which working professionals in Dell

Corporation debate issues, defend positions, and evaluate the arguments of
others.
• The practice of effective communication within Dell Corporation is also linked
with the development of a healthy corporate culture, job satisfaction of
employees, and the happiness and productivity of employees.
• Communication skills are also important to the leaders of Dell Corporation
because it helps them manage the company more effectively.