Dell Management Process

Dell

Dell Incorporated is located on Round Rock, Texas, with over 55 million in sales last year. Dell employs over 65,000 people worldwide (Datamonitor, 2007). Dell has been under severe financial pressure due to increased competition and globalization of businesses. As a result, they are having trouble with employee morale as a result of layoff initiatives. This year Dell has lost profits, brought back the founder of Dell, Michael Dell as CEO, and faced more competition with their rivals, HP, the merger of Acer, and Gateway. Global Communications, like Dell Inc., desires globalization to expand their business internationally and due to reduce labor costs resulting in profitability. The increase in competition was decreasing Global Communications market share and in order to stay competitive within the industry, they had to begin cutting expenses and search for solutions to save earnings and increase profit.

In the scenario, executives of Global Communications were unsure on the appropriate measure in communicating the new plan for globalization and restructuring to the employees. On the contrary, Dell communicated with their employees in advance about the impending layoffs and structure the layoff to prevent any confusion and negativity offering employees to reflect on their emotions and attitudes. Dell announced the news in May of laying off ten percent of its total workforce of roughly 88,000 workers (Abate, 2007). Both Dell and Global Communications are wise in recognizing the emotions of employees with the impending layoffs and salary cut since both were willing to offer career counseling for the laid off employees. Dell also offered several executives, excluding Michael Dell; severance packages (Jones, 2007). The difference with Dell and Global Communications' relationship with employees is that Dell communicated in timely manner with employees about all the impending changes while Global Communications brainstormed the possible ways to decrease the pressure of the layoffs by offering career counseling, severance packages, and transferring some employees to another call center but failed to communicate with employees in timely manner leading to emotional dissonance.

Dell has made strides in the India and China Markets. In India, Dell has used the low cost of labor by opening, a customer contact center, and product development center (Datamonitor, 2007). Global Communications planned to open a call center in India and Ireland to provide quality customer service at a lower expense to the company by forty percent. Dell Inc, like Global Communications has made alliances in the market to further gain the market and to continue with globalization. For example, Dell in 2007 began offering their systems to department stores like Wal-Marts and Sam's Clubs, worldwide, and has formed relationships with Carphone of Europe and Japan (Ogg, 2007). Similarly, Global Communications started offering customers service through a satellite company to broaden their customer base and customer satisfaction.

Sears

Sears

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