Dell is also one of the in the market setting the tone for horizontal structure communication. It has adopted Hofstede’s low power distance dimension. In the Retention, Acquisition, and Development account, communication involves much horizontal communication with lean hierarchy.
The organization has been able to run much like an entrepreneur startup even though it has reached gargantuan size. The lean hierarchy is one of Dell’s key success factors because it creates more efficiency in the workplace. Further, Dell takes specific actions to maintain control and monitoring of employees.The first step that Dell uses for micromanagement of employees is through senior advisory groups. These groups of highly educated employees in the field with a long track record of experience give certain employees monthly conference calls to check up on high-level issues that affect Dell worldwide. Second, Dell performs quarterly financial reviews to monitor how employees are spending their time and thus to ensure that these workers are using efficient use of time in order to accomplish the priorities for the company.For example, the sales team needs to maximize time spent with customers, as customer service is Dell’s differentiation.
Lower priority tasks such as checking email are expected to be accomplished during off hours as opposed to prime meeting time. Next, Dell gives client report cards measuring criteria such as clear and concise direction. Through this method, Dell coaches its workforce and provides coaching feedback on how to improve. Finally, Dell enforces training of employees as the last important step to maintain control.All employees are required to attend Dell University in order to understand their product completely. Employees who do not understand their products will cause the corporation to lose credibility. Thus, Dell invests a lot of money in education of employees in order to maintain its competitive edge in the marketplace as a whole and more specifically, to continue gaining market share from its major competitor in China, Lenovo Computers.
The managements not only must maintain control but also help to establish communication between Dell headquarters and their specific departments.In order for local agencies to maintain communication with the home offices, managers delegate much of this role to the employee communications department. This department is responsible for facilitating exchange of communication between headquarters and the separate agencies worldwide. Communication is a crucial issue, which Dell aims to maintain and continually improve with the advent of new technology. The Internet revolution has made control between the home office to the separate branches far more manageable in recent years.All of the specific agencies are required to communicate via one common extranet. Agencies are all involved in the activity of Dell and its vision.
Agencies can voice their opinions on any plan in progress through this extranet. Further, Dell pushes communication through email. Phone calls are less common as they have little time flexibility and raise costs tremendously, especially if across countries. In a market where Dell prides itself on cost leadership, telephone usage is simply not nearly as effective as Email.