case study Performance assessment at computer giant Dell is not simply about mangers rating their workers. The managers are themselves rated by their employees every six months in the so-called Tell Dell survey. The quality of information, it reveals, is consistently good so good, in fact, that it is fed directly into the companys total-quality-management initiatives. Michael Dell established the business that bears his name in 1984 in Austin, Texas, USA, to design, manufacture and sell technology. It now has 100,000 employees around the world, serving 5.4 million customers. Dell employees are analyzed through employment reviews and 360-degree feedback. Because the evaluation team speaks to everyone who works with the employee, the emphasis is as much on good performance as a team member as an individual. This type of performance appraisal can also reduce the tendency toward organizational politics. Dells performance-driven culture ensures that the greatest rewards go to employees who excel in their job. Dell targets its average pay at the market median and then pays incentives for good work. Profit sharing is therefore an important incentive at the firm. The business strategy is communicated to all the employees to encourage a shared vision. According to Michael Dell, everyone in the organization has a fundamental idea of the companys goals and his or her part in helping to achieve those. The business uses monitors in its work areas to display data so that each team can assess its progress toward its goals. Dell sets objectives that are specific, measurable, achievable, relevant and time-framed (Smart). Managers provide constant coaching and feedback to help employees to achieve these objectives . Recruitment at dell Dell HR is divided into operations and management. The former deals with employee relations, pay and benefits. Staff from the latter attend local staff meetings and provide consultancy to business units. Dell recruits both internally and externally. Internal recruitment is among Dell employees who have been trained to work at a higher level. External recruitment, usually for lower-level jobs, uses campus interviews, temporary-work agencies and career sites on the Internet. Applicants complete an online application form. If the details on this match the skills and other characteristics needed for the job the candidate undergoes online or telephone screening. This five-minute process classifies candidates according to their previous achievements, whether they have the specific competencies needed for the job and whether the job suits the candidates needs. Dell also recruits candidates recommended by current employees. The company has formalized this process through an employee-referral program, which is a form of selection tool. The core competencies measured when candidates are invited for interview are individual responsibility, management skills or leadership potential, personal motivation, analytical skills and people skills. Dell invites candidates to demonstrate how examples from their own lives show that they have the required competencies. Career development Some 70 per cent of career development at Dell is through on-the-job experience. This enables employees to discover opportunities to strengthen their skills, acquire new strengths through stretch assignments and special projects and develop a personal-performance plan. Around 20 per cent of career development is learning through others. This involves finding a mentor through Dells mentor-connect tool or joining a Dell employee-resource group. Only 10 per cent of career development involves formal classes or training. This model is an industry standard that has proved effective for team members across departments and at varying career levels. Individual team members are empowered to use all the resources available to them as they seek to fulfill their aspirations. Team members work with their supervisors to develop an individual development plan and follow through by meeting set goals in a realistic time-frame. Formal and informal learning programs Dell provides several formal and informal learning programs, all designed for individual career development. The courses are aligned with current business needs. Among the programs currently on offer are: The leadership imperative: Each course in this series focuses on a different leadership topic. The goal is to facilitate movement from a management culture to a leadership one. The leader-led working sessions are designed to drive business results through inspirational leadership. Business and financial acumen: Dell created this series to cultivate a shared understanding of key business concepts and a common business language among team members worldwide. Highly interactive, the courses are geared toward executives, leaders and individual contributors. Manager and executive training: Dells Management From the Start program is for all new leaders. It helps to ease the transition into leadership roles and provides a foundation for success. Research and development Dells research and development efforts span the globe. Many innovations begin in-house, led by a global team of engineers, product designers and technical experts. Others start as a team effort with Dells strategic partners. These include technology suppliers, equipment manufacturers, sales outlets and customers. The company holds an Inventor of the Year competition among its employees. Andy Sultenfuss is the firms first two-time winner. During his career with Dell, he has had more than 50 invention disclosures authorized for filing with the USA patent office, 20 of which have been granted US patents. His inventions have included thin mobility design, power management, liquid-crystal display and touch and sensors and gestures. The Dell Think Tank program brings together industry leaders who are particularly vocal in the social media to discuss trending topics affected by technology. The goal is to create an open forum that fosters collaboration and reveals community needs and opportunities for technology to play a larger role. For Dell and its partners, the social think tanks are an opportunity to listen at first hand, discuss business needs and foster relationships with participants and their respective communities. It also gives Dell and co-hosts an opportunity to capture good-quality feedback. Dell has held think tanks on topics including education, healthcare, entrepreneurship and the changing mobile workforce. Events are held in person and extended online for virtual participation on Twitter and via Livestream.

QUESTION IS Which approach Dell uses for measuring performance? (5 Marks) What is the alternative approach that may also be effective in performance management in Dell and why? (5 marks)