Dell has a functional organizational structure with some degree of decentralization. This means functional departments share information, contribute ideas to the success of the organization and have some degree of decision-making power.
|Sales and Marketing||Matrix||– Teams organized by product lines or customer segments. – Functional managers for product expertise. – Regional managers for geographical coordination.||– Enhanced coordination between product lines and regions. – Expertise-based functional management. – Adaptability to market variations.||– Potential for power struggles between functional and regional managers. – Complex communication channels. – Decision-making bottlenecks.|
|Research and Development||Matrix||– Teams organized by product categories or technology areas. – Functional managers for domain expertise. – Regional managers for market-specific insights.||– Specialized focus on product development. – Market-specific knowledge at regional level. – Efficient technology exploration and innovation.||– Conflicts over resource allocation. – Complex reporting structures. – Slow decision-making in some cases.|
|Manufacturing and Operations||Matrix||– Teams for various manufacturing aspects (assembly, quality control, logistics). – Functional managers for process oversight. – Regional managers for supply chain coordination.||– Enhanced manufacturing quality control. – Efficient supply chain management. – Flexibility in scaling manufacturing operations.||– Potential for process conflicts between functional and regional managers. – Challenges in balancing production capacity. – Increased overhead.|
|Finance and Administration||Matrix||– Teams organized by financial functions (accounting, budgeting, administration). – Functional managers for financial strategy. – Regional managers for compliance and administration support.||– Expert financial management within functions. – Localized support for administrative tasks. – Effective financial control and reporting.||– Potential for discrepancies in financial practices. – Administrative redundancies between functions. – Communication complexities.|
Dell is an American company that sells PCs, servers, data storage devices, software, peripherals, and consumer electronics from other brands, among other things.
Dell is perhaps best known for its direct-sales business model where consumers purchase made-to-order computers. However, parent company Dell Technologies has made several acquisitions in recent years to support the company’s new focus on analytics, cloud computing, and information security.
How is Dell structured?
Dell has a functional organizational structure with some degree of decentralization. This means functional departments contribute ideas to the wider success of the organization and have some level of autonomy in terms of decision-making.
However, the company is less decentralized than it has been in the past. In the 1990s, Dell’s information technology systems were highly fragmented. With most of the company’s applications developed independently across different departments, management lacked the necessary information to make even the most basic of decisions.
Dell realized that this way of doing business contradicted its organizational structure of centralized, functional groups reporting directly to headquarters in Austin, Texas. As the company entered the 2000s, it developed a system called Information to Run the Business (IRB). This system gives all Dell managers basic indicators such as financial performance, product margins, and product quality.
Today, these are managers of function-based groups such as:
- Product design.
- Corporate systems.
Function-based groups are further defined by three different business markets:
- Relationship – Dell’s largest or enterprise clients.
- Transaction – consumers and small businesses.
- International/public – this includes all non-US markets, SMEs, government, healthcare, and educational institutions.
Each of the markets is supported by applications that are contained within some (or all) of the five functional groups listed above.
Dell operations are also organized around three geographic regions. These include:
- Asia-Pacific and Japan, and
- Europe, Middle East, and Africa (EMEA).
In the United States, which is one of Dell’s premier markets, the Americas was further divided into three sub-regions: West, Central, and East.
The initiative was designed to limit the time Dell sales reps were spending on the road, with some having to drive over 150 miles to visit a single client.
Hierarchical leadership structure
Michael Dell is the founder, chairman, and CEO of Dell.
In 2016, the hierarchical leadership structure was altered after Dell acquired computer-storage corporation EMC for $67 billion. In the process, a new company called Dell Technologies was born, with 14 top executives reporting directly to Dell himself.
Some of the members of this executive group are in charge of Dell Technologies companies that run independently. These include Virtustream, VMware, and Secureworks.
Dell also has two COOs beneath him in addition to Chief Officers for customers, marketing, services, human resources, global sales, operations, and finance.
- Dell has a functional organizational structure with some degree of decentralization. This means functional departments share information, contribute ideas to the success of the organization and have some degree of decision-making power.
- Function-based groups are considered in the context of three business markets, with each market supported by functions from some or all groups. The company is also structured according to three broad geographic regions and three within the Americas to improve sales efficiency.
- Dell’s leadership structure changed somewhat after it acquired Dell Technologies in 2016. Michael Dell returned to the CEO position with a cohort of 14 executives who report directly to him.
- Introduction to Dell: Dell is an American company known for selling PCs, servers, data storage devices, software, peripherals, and consumer electronics. It employs a direct-sales business model, offering made-to-order computers, and has expanded its focus to include analytics, cloud computing, and information security.
- Functional Organizational Structure with Decentralization: Dell employs a functional organizational structure with a level of decentralization. This structure allows functional departments to contribute ideas to the organization’s success and exercise some degree of decision-making autonomy.
- Decentralization History: In the past, Dell had highly fragmented information technology systems that contradicted its centralized functional group structure. To address this, the company developed the Information to Run the Business (IRB) system. This system provides managers with essential indicators for decision-making.
- Functional Groups and Markets: Dell’s function-based groups include product design, manufacturing, sales, service, and corporate systems. These groups are aligned with three business markets: relationship (enterprise clients), transaction (consumers and small businesses), and international/public (non-US markets, government, healthcare, education).
- Geographic Regions: Dell’s operations are organized into three geographic regions: Americas, Asia-Pacific and Japan, and Europe, Middle East, and Africa (EMEA). The Americas is further divided into sub-regions to enhance sales efficiency.
- Hierarchical Leadership Structure: Michael Dell is the founder, chairman, and CEO of Dell. After the acquisition of EMC, Dell Technologies was formed, and 14 top executives report directly to Michael Dell. Some of these executives manage independent Dell Technologies companies, including Virtustream, VMware, and Secureworks.
- COOs and Chief Officers: Dell’s leadership structure also includes two COOs and Chief Officers for various functions such as customers, marketing, services, human resources, global sales, operations, and finance.
Read Next: Organizational Structure.
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