Thread: Dell: with low-cost strategy, human resources management - MBA Case

Dell: with low-cost strategy, human resources management - MBA Case
Company Background
Dell is a legendary company, and its founder Michael Dell is a legendary figure. 12-year-old Dell stamp in a risky business in making the 2000 U.S. dollars, 16-year-old Dell through direct way of writing and telephone subscribers for the newspaper subscription income of 18,000 U.S. dollars a year, 19-year-old Dell with a 1000 U.S. dollars in his college Dell created the dormitory. In 1992, Dell Dell, with his "Fortune" 500 companies, the youngest CEO.
Dell talked about the secret of his success: "We won mainly because we have a better business model." The Dell business model is well-known model in order to "establish contact directly with customers" and innovative ideas to operate the computer manufacturer to customer requirements, direct shipments to customers, which can best understand customer needs and respond quickly. Cancel intermediaries can effectively reduce costs, compress time, to understand our customers, timely response. Persist in direct marketing, abandon stocks, and customer alliance is Dell's "golden three principles", low-cost + efficiency + good service is Dell's evaluation criteria. Dell developed a business model around the world want to imitate, but to emulate the success of companies are few. It is by virtue of the magic model, Dell founded the company in 1984, more than 20 years of Shi Jianzhong growth as a global leader in the IT products and ISP annual turnover of 50 billion U.S. dollars up to Jin.
Dell in May 1993 to enter the Chinese market, in August 1998 in nine major cities in China to carry out direct selling business, and now, Dell has become widely known international brand. 2001, Dell's share in the Chinese market only to 4% in 2005 reached 9%, China has become Dell's second-largest overseas market after the United Kingdom.
Dell claims to be direct, on-demand, zero inventory and other advanced marketing methods into China, but also taken when the actual operation and other IT manufacturers as the channel distribution method, this is the IT industry's semi-open secret. In fact, Dell has Sichengyishang products through distributors to reach consumers. This is mainly because the Chinese people have their particular purchasing habits, to store the selection, personal trials, but also to enjoy a few people are willing to pay for home services a few hundred dollars. Thus, Dell was actually taken in China, distribution and direct marketing combination.
Corporate Culture
?Dell's corporate culture, summed up by the company, "Dell soul", which describes how Dell is a kind of company, it is the Dell service code of conduct for customers around the world, it also eventually become Dell's "winning culture" basis.
"Dell soul" of the main contents of indulgence:
Customer First: We believe that customer loyalty comes from enjoying the best value to customer experience. We strive to maintain a direct relationship with customers, based on industry standard technologies to provide the best products and services to bring its extraordinary customer experience.
Dell Team: We believe that continued success comes from a team of close collaboration and tireless efforts of each member. We strive to develop the global market to attract and retain the best talent.
Directly related to: all aspects of our business in the implementation of the direct business model. We strive to follow the professional ethics, a timely and reasonable response to customer demand, with customers, partners, suppliers and establish effective exchange of frank and open relationship, resulting in the elimination of low management efficiency and multi-agency bureaucracy.
Global Citizen: We assume a global initiative to social obligations. We strive to understand and respect our local laws concerning the market, values and culture, and strive to achieve profit growth in all markets, and strive in the global promotion of a healthy business environment, whether individuals or companies seek to contribute to society.
Winning spirit: We are doing everything we have to win the conviction and passion. We strive to achieve excellence in operations management, to provide exceptional customer experience, leading in the global market, a well-known and long for the good company and the workplace.
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With low-cost human resources management strategy
The early years of the 21st century, the whole computer industry will be huge, just to maintain access to the world's number one PC manufacturer status with Dell in the first quarter of 2001 the average price per computer decreased about 300 U.S. dollars, the company profits resulting from 21% to 18%. Dell's gross margins are lower than his main rivals IBM and HP, but the net profit was much higher than both, the main reason is that the Dell model to directly face the customer significant cost savings.
Computer industry lost sight of past prosperity, computer prices fell sharply. For consistent success with Dell for the low-cost, in order to maintain the lead, only to further reduce costs as much as possible. To cope with low-cost leadership strategy, all departments should have had to do something, HR is no exception.
With other companies, Dell compressed human cost of the first step is to lay off. First half of 2001, the company decided to lay off 4,000 workers. But the dismissal of employees is a very troublesome thing, it involves many details, which is almost every human resources department are headache thing. Dell has developed a set of specialized human resources department to determine who should be leaving the company's system, and effectively deal with emerging process of the dismissal of the details. Workers laid off two months earlier to get the salary, annual bonus and severance pay, life has been secured. And these were dismissed workers also have been re job search advice and corresponding benefits, help them find new jobs as soon as possible. Through appropriate arrangements, Dell successfully downsizing, saving a large amount of labor costs.
As an IT company, Dell's full use of the Intranet, using advanced means to manage most of the work of human resources. The company Intranet managers have a toolbox, Qizhongbaohan the 30 kinds of automatic network Yingyongchengxu, Zhexie tools to help managers to easily and You Xiao Di Chengdan part of the human resources management, and such work in the past have borne the Human Resources Men and the high cost. Employees can also use the intranet human resources information queries, manage their 401 (K) plan, monitor various descriptions, in the past to the human resources department to do things, are only one click to complete. Effective use of the corporate intranet, electronic technical management of human resources, simplify the large number of complex human resources work, which greatly reduces management costs.
According to the traditional HR work is divided into a few pieces of content, such as recruitment, training, remuneration, appraisal, etc., each have a corresponding staff, not only to deal with specific tasks, but also to make appropriate decisions according to the company strategy. Dell, discard the old organizational structure, human resources management division of Adult Resources, "operating" departments and human resources "management" department. Human resources "operations" department responsible for welfare, remuneration, labor relations and other specific tasks, contacts directly with employees, few other departments responsible for dealing with people. Despite these many trivial, but it is routine work, can make use of routine procedures, systems, methods to complete, Dell is through centralized call center to coordinate this type of human resource management functions. Human resource "management" departments primarily responsible for recruiting, training, etc., in the work of the Commissioner to Shiye vice president and human resources vice president Hui Bao, 并且 要 an advisory capacity Shenjia Division conference for the Division to develop Zhuanmen human resources strategy and human resources from the point of view to help achieve strategic business unit. This classification method allows human resources "operations" departments to effectively handle a large number of routine matters and can make human resources "management" departments for the business department to provide effective professional support. Redistribute the work, not only to improve efficiency and streamline the human resources dedicated staff.
Business model based on known low-cost strategy Dell is trying to compress from the cost of each link. Human resources strategy as an integral corporate strategy, the necessary support to be the leading low cost-oriented, with the company's growth. How a strategic thinking into operational reality of the measures is the key solution, it is also Dell's efforts.
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Consideration:
1, Dell adopted a low-cost human resources strategy, do you think of the human resources strategy of the company's contribution to the overall low cost strategy is significant? Please explain.
2, in line with low-cost strategy, human resources can also be taken effective measures to reduce costs?
3, Dell's direct model with the industry leaders, human resource strategy can learn from this model of reform? What do you think?
4, HR-oriented if to reduce costs, which may cause the problem? Do you have measures to solve these problems?
5, follow the Dell's low-cost strategy, design a five-year human resources planning.
6, culture attaches great importance to Dell customers, it is clear emphasis on attention to employees than customers. Do you think Dell should "focus on the customer better than attention to employee" or "pay attention to employees than focus on the customer?" Please state your point of view. (Can be used in the form of debate, discussion)

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