HR Framework for Dell, Inc
Direct selling to consumers is what sets Dell apart from its competitors as it is only the company which sells through catalogs before without the obstruction of in-store inventories, separating bond between inventory and product selection. Dell also had embrace the online PC retailing making the company a leaders in providing customers requirements through “configurator” software which allows customers to select among an array of choice while also proving online technical support. As Philip and Thomas put it, Dell had developed elaborate and sophisticated decision-support software to help its own technical staff troubleshoot problems.
Dell’s mission statement is “to be the most successful computer company in the world at delivering the best customer experience in markets we serve”. Dell employees, direct salespeople, help-desk operators, engineers, and the like all have to be knowledgeable and customer focused to ensure Dell’s continued competitiveness.
Although the company only entered the electronic industry in mid-1980s it became a global phenomenon, enabling to serve and take advantage of the capabilities of the otherwise complex and multi-level PC industry. The reason behind this is that market potential is the driving force behind Dell’s general location decisions, while costs and capabilities are the driving forces behind the specific location of Dell’s activities. As such, though Dell generally appears to be receptive to its business model, the company was enabled to serve those markets by means of effective production capabilities and cost structuring.
There are three strategic challenges for information strategy and Dell is not an exemption. These are using the new electronic medium at full advantages, upgrading information capability and improving the flow of information in the entirety of the business. Responding to these challenges means to position the business component in the strategy in order to put focus on the application of the information system to business purposes. It would be also necessary to implement the strategy within plans and training to implement changes in information systems and business processes. Dell did just that, and through the committed HRM function.
Dell grows its organisation through a process called cell division. This is driven by technological advances and a need to address stiff competition from other providers. New developments in computer technology have to be made available as soon as possible, and preferably before these features are offered by competitors. When a business section dealing with a particular product or range reaches a specified size threshold, part is spun off to form a new unit. The threshold is not set purely on the number of employees. This process of growth does not suit everyone, so Dell aims to recruit employees with a particular mindset. Since the organisation is flat and distributed, it has no need for grandiose managerial titles and impressive hierarchical charts. Employees are expected to take segmentation as a sign of success. Dell seeks to attract people who enjoy constant and rapid change. It is worth noting that Dell paid its staff generously during this period.
The HRM function at Dell has become a strategic partner in the process of growth. HRM is split into operations and management. Through the service center, the HR operations section coordinates transactional functions. Operational HRM staff report directly to the top of the organisation through an HR chain of command. HR management section provides consultants to business units and attends local staff meetings. HR management takes responsibility for Dell University employee resourcing including recruitment and a team of HR generalists. HR management section is also closely involved in growth policy. It is involved in segmentation through designing organisation charts, identifying appropriate people and dealing with training needs.
Dell makes use of a ‘three-legged stool’ which consists of an administrative service center, a center of excellence and HR business partners. Specifically, the administrative service center, known internally as Dell’s Employee Resource Center, processes payroll, benefits and other transactional activities. The focus of the Employee Resource Center is efficiency and much of the work is delivered through the employee and manager web-based self-service in some organization. Dell’s Center of Competency is the center of excellence which houses managerial expertise in areas important to the businesses. The Competency Center focuses on effectiveness. Experts in this function concentrate on design rather than transactions and their customers are line managers. HR business partners are Dell’s HR Generalists who are generalist who report directly to line managers in business units, and only indirectly to HR department. The focus of HR Generalists is on providing tailored HR services to individual units. They serve as business consultants, aiding managers in the development and utilisation of their human capital.
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