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  • Essay / Dell Computer Corporation - 1277

    Dell Computer CorporationDell Computer Corporation was recognized as the leader in personal computers in the 1990s. However, economic instability and increasing market share by competitors greatly affected the 'business. In 2001, PC sales declined, layoffs were constant, and employees were disengaged. So, to revitalize the company, a new philosophy statement called “The Soul Dell” was unveiled across the organization. However, the central problem for Dell was the methodology used to develop and communicate its core values ​​to employees. As well as the inability of senior leaders to change the paradigms of the existing organizational culture and maintain 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 a multi-billion dollar business of building and upgrade personal computers (O'Rourke, 2010). Dell's business model was to produce high-quality, low-cost, made-to-order PCs called "Dell Direct." The direct-to-customer shipping strategy eliminated the need for middlemen and gave Dell a competitive advantage (O'Rourke, 2010). The company's growth exploded in the 1990s, with more than 38,000 employees and a global platform. Dell and COO Kevin Rollins created a fast-paced, win-at-all-costs, highly competitive organizational culture in which compensation 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 experienced an economic slowdown. PC profit margins declined and remained... middle of paper ..., they failed to properly diagnose the problem in order to identify all possible interventions needed to implement and sustain the change and the behavior they wanted. So, in order to achieve this change, Dell and Rollins must model a vision similar to the methods used during the attacks of September 11, 2001. Additionally, they must ensure that management buys into the vision and can articulate it clearly to their direct reports. Additionally, it is premature to integrate cultural initiatives into employee performance management goals without a clear understanding of how the change affects them. Employees must first understand how the change will impact them and be empowered to provide feedback on its content and implementation. Finally, cultural changes take time. Therefore, senior management must remain committed to the change until it is institutionalized..