Hp & Dell Organizational Structure

The computer manufacturing industry is a highly competitive one. Both Hewlett-Packard (HP) and Dell are serious competitors and excel at providing personal computers to their customers. Each has strategies and a design in place to focus the organization energy of producing the latest, most desired technology. This paper analyzes both organizations and their key differences in strategy and their organization design.

Strategic intent is the focus of the organization's energies and resources toward a unified, compelling overall goal. The three aspects related to strategic intent are the mission, core competence, and competitive advantage (Daft, 2010). HP's mission is to constantly strive for excellence through collaboration with integrity, resourcefulness and adaptable employees that invent technology that is useful and significant. Compared to its competitors, HP is at an advantage because they have such a large control over the local and global markets due to its sheer size. They do this by supplying the most in demand items that appeal to large demographics. Both printers and computers alike manufactured by HP have identified consumers needs and propelled the organization into a top competitor for sales of both products. HP's own definition of their competitive advantage is their sustainability. Before other organizations became environmentally friendly, HP focused on reducing its carbon footprint while still increasing productivity. They align their technology, environment and business strategies to increase efficiency, and grow as a global organization (Grimsley & Lowitt, 2009). Much of their strategy is driven by their social responsibility to the environment while producing quality electronic equipment, and gives HP a unique advantage over its competitors. In recent years, HP has begun to see more competition in this department however as most organizations are searching for more ways to become environmentally friendly.

HP's structure lends to the successful decisions making across the organization. The organization is lead by CEO, Leo Apotheker, and consists of three major product departments: personal system's group, or the computer sector, the imaging and printing group, and the enterprise business which consists of storage, service, and software. Each of these departments has several vice presidents that oversee divisions and also report to the CEO. Incorporated into the strategy at every level of structure is HP's focus on innovation. Because of the constantly changing technology, HP plans to re-invest in their research and development department to focus on not only innovating, but pushing new products to the market in a timelier manner. Mainly, Apotheker believes that HP's software development needs the most attention, and most critical decisions will be made regarding this development in the future months.

While specific structure was not easily found, speculation lies with a matrix structure. According to Daft (2010) a matrix structure is appropriate when environmental pressure exists for two or more critical outputs, such as for in-depth technical knowledge and frequent new products. From the published information available, HP promotes communication and collaboration through both vertical and horizontal directions of the organization. This creates the environment that HP desires and promotes the maximum amount of innovation amongst employees. Teams of employees cross over to other departments frequently and lend knowledge to each other. The functional groups work with the divisional groups to create the products that are most appealing to consumers. Marketing and research work closely and frequently with the various segments of the organization to push the products most desired and most profitable.

To assist in the decision making process of the organization, HP developed the Dynamic Leadership program to address issues such as internal mobility, workforce profiling, career planning, resource management, training plans, compliance tracking, and organizational design analysis (American Jewish University, 2010). Most business managers attend the program to develop decision making skills that affect the organization. HP hopes that this will streamline processes, and decrease the amount of time it takes to introduce a new product to the market. This decentralized decision making strategy has supported the strategy that Apotheker envisioned for the organization. This type of decision making creates the flexibility and responsiveness to external influences that the organization needs in a rapidly changing market.

HP is determined and focused on promoting their current employees. By developing their employees, they are showing they value their employees and the future contributions they will make. HP's latest strategy is to increase the number of research and develop staff they hire in an effort to increase organizational growth. Since the organization is still focusing on leading global markets, HP is recruiting employees that excel in research, as well as employees with acquisition experience since this is not out of the realm of possibility for HP.

Dell's strategic intent is focused on meeting its customer's every need by remaining competitive in pricing and individualizing the personal computer. Their overall compelling goal is to be a leading computer- producing company. Compared to its competitors, Dell has excelled at customizing computers for its customers as well as establishing its on-line capabilities to provide mass customization. This is also their competitive advantage. Dell appealed to consumers that have specific needs by supplying them with computers that meet their individual requirements. The organization did this by establishing unique relationships with its suppliers, linking customers directly to Dell, and providing them the appropriate customer service assistance (www.hubpages.com/hub/Dells-Competitive-Advantage). Because Dell can develop customer relationships through these linkages, they can deliver personalized computers to their customers in just a few days, adding immeasurable value to its customers. Not only do they deliver a high quality, customized computer, they have developed a design in the organization that allows for maximum productivity.

Michael Dell, the long time CEO, began the company in 1984, and has overseen its development since its conception. The organization structure has what appear to be three levels of hierarchy starting with Michael, a board of directors, and chairmen. A variety of managers operate under the CEO on the second level of the organization's structure. The organization as a whole operates using a functional structure by grouping the same type of work together. The various departments work in their own functional groups with little