Question: Question 1 ( 2 0 marks ) Read the short case below and answer the questions that follow. Propelled by a culture of cost efficiency
Question marks Read the short case below and answer the questions that follow. Propelled by a culture of cost efficiency and competitiveness, Dell, Inc., was the unstoppable leader in the computer industry for more than a decade. Experts praised its lowcost responsive manufacturing and directmarketing sales model. Founder Michael Dell championed short term objectives, while Kevin Rollins until recently Dell CEO was the architect of efficiency oriented processes and measures. Dell culture emphasised winning meaning that it focused on beating the competition and staying on top through low prices. There are some organizations where people think theyre a hero if they invent a new thing, Rollins said a few years ago. Being a hero at Dell means saving money. Although still an efficient manufacturer of lowcost computers, Dells spectacular success has stalled while HP and other competitors are moving ahead. The reason? Dells strong culture blinded leaders and most staff to anything other than building lowcost computers, yet the market was shifting toward a preference for style and innovation. Dells culture is not inspirational or aspirational, suggests one industry expert. Its culture only wants to talk about execution. A few staff warned that Dells culture needed to change, but those who dared to criticize the companys deeply ingrained values and assumptions were quickly silenced. A lot of red flags got wavedbut only once, recalls a former Dell manager. Meanwhile, Dells fortunesincluding public ratings of its culturewere falling. A few years ago, Dell ranked number one on Fortune magazines list of most admired companies in America; two years later, it was off the top list. Similarly, Dell Canada placed fifth on the list of Canadas most admired corporate cultures in A year later, the company was not mentioned at all; its culture was no longer admired. These and other concerns motivated founder Michael Dell to return as CEO, replacing Kevin Rollins. Other senior executives have also left the company. The company was too focused on the short term, Dell admits. He apparently also repeatedly emphasizes to staff that Dells past culture is not a religion. Dell is convinced he can turn the company around, and there is some indication his new vision is working. Still, a few critics believe that changing Dells culture will be a mammoth task. Its not an easy transition, warns a technology analyst. Youve got to change your mindset and your culture.Source: McShane, S L & Von Glinow, M A Organizational behaviour : emerging knowledge and practice for the real world. th ed Pg
a With evidence from the case, what lessons can be learnt about disadvantages of strong cultures like that of Dell? marks
b Define organisational development. marks
c Using the Phases of the organisational development process suggest how Dell could successfully turn the organisational culture around? marks
d In implementing the OD programme, Dell is bound to come across some resistance from both individual employees and from the organisation as a whole. Suggest a few precautionary measures that Dell may put in place in trying to mitigate the envisioned resistance. marks
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