The purpose of this paper is to answer the following questions posed in module three case study assignment: “Can Michael Dell be successful in turning around Dell Computers? What are some of the main initiatives (related to Organizing) that Dell has implemented in order to turn Dell Computers around?”. To answer these questions we must determine what organizational design is and what Michael Dell has done to his company with regards to Organization Design.
What is Organization Design? It is “is a formal, guided process for integrating the people, information and technology of an organization. It is used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful” (McNamara, 1996).
Turning around Dell Computers
With the return of Michael Dell to the helm of Dell Computers in 2007, the company has been making a record turnaround. It has gone from stagnant sales and losing money in the PC business to such companies as Hewlett Packard, to a new and improved company with new directions. Michael Dell has been “making sweeping changes in everything from personnel and partnerships to acquisitions and distribution” (Edwards, 2009). One of the organizational ways that Mr. Dell is achieving this is by shifting away from simply making good reliable and relatively inexpensive PCs to Research and Development and offering more services. He also “has used acquisitions to offer a broader range of storage, software, security and services, which often carry higher profit margins than PCs.” (Ricadela, 2011). Another way Mr. Dell has utilized organizational design is by completely overhauling his management team; this company restructure is now focused more intently on the customer, as well as branching out to other services such as Smartphones and...