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18/08/2018 09:26:14 AM

Analyzing Organizing, Leading and Controlling of Michael Dell- Part 2

Organizing is structuring working relationships so organizational members interact and cooperate to achieve organizational goals. Organizing people into departments according to the kinds of job-specific tasks they perform lays out the lines of authority and responsibility between different individuals and groups. Managers must decide how best to organize resources, particularly human resources. The outcome of organizing is the creation of an organizational structure , a formal system of task and reporting relationships that coordinates and motivates members so they work together to achieve organizational goals. Organizational structure determines how an organization’s resources can be best used to create goods and services. As his company grew, for example, Michael Dell faced the issue of how to structure his organization. Early on he was hiring 100 new employees a week and deciding how to design his managerial hierarchy to best motivate and coordinate managers’ activities. As his organization grew to become one of the largest global PC makers, he and his managers created progressively more complex forms of organizational structure to help it achieve its goals.

An organization’s vision is a short, succinct, and inspiring statement of what the  organization intends to become and the goals it is seeking to achieve—its desired future state. In l e ading , managers articulate a clear organizational vision for the organization’s members to accomplish, and they energize and enable employees so everyone understands the part he or she plays in achieving organizational goals. Leadership involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups so their activities and efforts are in harmony. Leadership revolves around encouraging all employees to perform at a high level to help the organization achieve its vision and goals. Another outcome of leadership is a highly motivated and committed workforce. Employees responded well to Michael Dell’s hands-on leadership style, which has resulted in a hardworking, committed workforce. Managers at Apple appreciate the way Steve Jobs, and now Tim Cook, have adopted a leadership style based on a willingness to delegate authority to project teams and to help managers resolve differences that could easily lead to bitter disputes and power struggles.

In controlling , the task of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performance. For example, managers monitor the performance of individuals, departments, and the organization as a whole to see whether they are meeting desired performance standards. Michael Dell learned early in his career how important this is; if standards are not being met, managers seek ways to improve performance. The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness. To exercise control, managers must decide which goals to measure—perhaps goals pertaining to productivity, quality, or responsiveness to customers—and then they must design control systems that will provide the information necessary to assess performance—that is, determine to what degree the goals have been met. The controlling task also helps managers evaluate how well they themselves are performing the other three tasks of management— planning, organizing, and leading—and take corrective action. Michael Dell had difficulty establishing effective control systems because his company was growing so rapidly and he lacked experienced managers. In the 1990s Dell’s costs suddenly soared because no systems were in place to control inventory, and in 1994 poor quality control resulted in a defective line of new laptop computers—some of which caught fire. To solve these and other control problems, Dell hired hundreds of experienced managers from other companies to put the right control systems in place. As a result, by 2000 Dell was able to make computers for over 10% less than its competitors, which created a major source of competitive advantage. At its peak, Dell drove competitors out of the market because it had achieved a 20% cost advantage over them.

Th.S. Nguyễn Thị My My

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