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Michael Dell: Intel Code Modernization
Michael Dell: Intel Code Modernization
DELL
Intel Code
Modernization
MICHAELDELL
AlternateName:MichaelSaulDell
Born:February1965
Ages:41
Nationality:U.S
Company:foundedtheDellCompanyCorporationin1984
DevelopmentofLeadershipSkill
ThefollowingsectionswillfirstgiveabriefoverviewofbusinessenvironmentaroundDellsCorporationatthat
time with the contribution of Michaels leadership to the growth of the company. The contextual nature of
Michaelsleadershipstylewillbefurtheranalyzedusingseveraltheoriesofleadership.
Businessenvironment
External
Computerbusinessisahighlydynamicandcompetitiveindustry.DellsCorporationwasbornin1984withlimitedresourcesintermsof
capitalandmanpower.Clearly,akeytoitssurvivalorsuccessreliesonaneffectivewaytodobusiness.AstheCEOofDellsComputer
Corporation,Michaelrecognizedthatdirectsellingisthepreferredwayofdoingbusiness.
Hedecidedtobypassthemiddleman,whoaddslittlevaluetotheproducts,andsellcustombuiltcomputersdirectlytoendusers.Thisdirect
marketing approach and pioneering of the computer industry's first service and support programs, Dell Computer Corporation became
recognizedasthetopvendorofpersonalcomputersworldwide.
Inordertoprovideafastandreliableservicetocustomersinsuchdynamicenvironment,Michaelunderstoodtheimportanceofpartnership
withworkteamtorunthebusiness.Goodleadershipalsoinvolvestransformation.
AnotherofDell'sworldwideinnovationsunderMichaelsleadershipisdoingbusinessonline.Thecompanyalsoredefinedtheroleofthe
Web in delivering faster and more efficient service to customers. Dell is recognized as the largest online commercial seller of computer
systems,withanaverageofover$30millionperdayinonlinesales.
To accommodate its growth, Dell opens new manufacturing facilities in Nashvville, Tennessee and Eldorado do Sul, Brazil. Another
successful development leaded by Michael is the introduction of its PowerEdge servers line in 1996. In less than two years, PowerEdge
vaultsDellfromthetenthpositionmarketsharetothirdlargestservervendorintheworld.
Internal
Indealingwithemployeerelationship,Michaelbelievedthatemployeeateverylevelshouldcanhelptoforwardthecompanystrategyand
achievegoalsbeyondtheirimmediateareaofresponsibility.Hedefinedorcommunicatedacleargoalorstructuredtaskineachleveland
helpthemtofeelmoreimportantandrelevanttoachieveit.
Michael also reinforced the loyalty of his employee by rewarding them with stock grant or stock purchase plan. He also tied every
employeesincentivesandcompensationtothehealthofthecompany.
Inaddition,Michaelgotinvolvedintouchwiththemviaregularmeeting,emailortheInternet.Asaresult,hewaswellrespectedbymostof
hisemployeesinthecompany.Theemployeesweregenerallywillingtofollowtheinstructionsfromthemanagementandachievethegoals.
Leadershiptheory
Traittheory
Toalignwiththisapproach,Michaelhasagoodcombinationoftraitorskillscontributingtohissuccessfulleadership.Forexamples,he
isenergetic,selfconfident,ambitiousandachievementoriented.HedeclaredthatheultimatelywantedtobeatIBMwhenonlycapitalizing
$1000tobuildupDellsCorporaionbyhimself.Hewascleverandcreativebyestablishingdirectsellingapproachasthebestwayofdoing
business,aswellastheintroductionofPowerEdgeserverlines.
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DELL
Contingencyorsituationaltheory
Fiedlerscontingencymodelidentifiedthreesituationsthatcoulddefinetheconditionofaleadershipstyle(relationshiporientedortask
oriented):
1.leadermemberrelation
2.taskstructure
3.positionpower
Bycombiningdifferentsituations(total8situations),theleadercouldidentifywhatleadershipstyleshouldbebesttaken.
When applying this model to Michaels leadership style, he apparently has a combination of good leadermember relation, high task
structureandastrongpositionpower.Accordingtothecontingencytheory,Michaelshouldadopttaskorientedleadershipstyle,consistent
withtheobservationintheprevioussection(i.ebusinessenvironment)thathissubordinateswerewillingtofollowthegoal/taskgivenfrom
themanagementwithoutanyproblem.
Pathgoaltheory
Thetheory,basedonexpectancytheory,describesthewaythatleadersencourageandsupporttheiremployeesinachievingbothworkand
personalgoals.Fourmajorleadershipstylesareidentified:
1.supportive
2.directive
3.participative
4.achievement
Asdiscussedearlier,Michaelhadadoptedoneormoreleadershipstylestomotivatehissubordinates.
For examples, he expected them to achieve goals beyond their immediate area of responsibility (achievement oriented leadership). He
activelygotinvolvedintouchwiththemandlistenedtheirfeedbackpositively(participativeleadership).
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