Intake Code : UC1F1702
Subject : BM007-3-1-IMT
Project Title : Comparison between Samsung and Dell
Lecturer : DR.NORAINI BINTI AHMAD
Table of Contents
Executive summary. 3
Introduction & Companies Background. 4
Introduction of Samsung Electronics. 4
Introduction of dell 4
Samsung Company Background. 5
Dell Company Background. 6
Span of control 7
Span of control in Samsung. 7
Span of control in Dell 8
Departmentalization in Samsung. 9
Departmentalization in Dell 10
Centralization and decentralization. 11
Centralized and Decentralized Structures in Dell 11
Centralized and Decentralized Structures in Samsung. 12
Work Specialization. 12
Work Specialization in Samsung: 12
Work Specialization in Dell: 13
The effectiveness of the organizational structure for Dell and Samsung. 14
Recommendations of Samsung and Dell companies. 14
Recommendations of Samsung company. 14
Recommendations of Dell company. 15
GROUP TASK REPORT. 18
In these days, most of the global companies from different industries are seeking towards the unique competitive advantage to be in the high level in business and maximize their reputation in the worldwide.
In doing so, companies should analyse their expenditure and try to minimize these costs while utilizing their resources in order to make the most from these expenditures.
In this report, it’s discussing about the four elements of the organizations structure in Dell and Samsung companies where they were chosen because of the many similarities and differences they have.
Moreover, the report will briefly explain the four elements structure such as centralization and decentralization, span of control, departmentalization, chain of command and work specialization.
Furthermore, it will demonstrate the effectiveness of the two-company’s organizational structure.
All in all, recommendations are provided on how to further improve their organizational structure.
Introduction & Companies Background
Introduction of Samsung Electronics
In 1969, as a division of the Korean Samsung Group Samsung Electronics was established. Lee Kun-hee started Samsung Electronics with a $2,000 nest egg and 40 employees. Samsung means ‘three stars’ in Korean Language that stands for “powerful, abundant and big” reflected on the three integration of multinational investment of Samsung Heavy Industries, Samsung Electronics and Samsung Engineering & Constructions. Samsung Electronics manages 4 main divisions where are Semiconductors, Information & Communications, Digital Media and Home Appliances. The company enjoyed moderate growth before the Communist invasion in 1950, it forced Lee to abandon his operations in Seoul. The company sells televisions, laptops, phones, fax machines, video and audio equipment, semiconductors, network-related products, computers and related products (Samsung,2017).
Introduction of dell
Dell company is one of the huge technological companies in the world based in Texas. It was founded by Michael Dell, which was the youngest CEO to lead company to Fortune 500 ranking, in November, 1984. It’s a multinational datum technology firm that props, develops and sells computers and similar products and utilities. It employs more than 103,300 persons all around the world. Dell’s industry consists of computer systems, peripherals, software and IT consulting and services. Dell has many technology portfolio where personal computers is one component of it. Its employees experience multiple units, teams and positions and it’s also the first company to offer free product recycling for costumers all around the world. The company’s major business is selling laptops, desktops and netbooks products and it sells various types of laptops models with different functions, sizes and price to suit their customers need (Sim, 2011).
Samsung Company Background
Samsung Electronics Co., Ltd.
Consumer electronics, Semiconductors, Home appliances
Apple, Dell, Toshiba, Lenovo, Sony and many others
?201.870 trillion (2016)
Dell Company Background
Computer hardware, computer software
Texas, U. S
Apple, Samsung, Toshiba, Lenovo, Sony and many others
$54.9 billion (2016)
Span of control
The number of people managed efficiently by a single officer is known as span of control. Organizational structure is known as hierarchical flat and matrix. A hierarchical structure is representative in big companies where employee in each level reports upwards and each level has a narrow span of control. However, a significantly slower communication and decision making is a disadvantage of this type of this structure. A flat organizational structure having wider span of control and less levels of hierarchy means that, at each level, employees can communicate with managers more easily and quickly.
Span of control in Samsung
Figure 1: Span of control in Samsung
Samsung is a highly successful organization, it maintains a horizontal structure. More specifically, Samsung, has power in business where there are many distributions that are handled separately by business group. The organization spilt into five zones which are digital media, semiconductors, telecommunications, digital appliances and LCDs. There are around 13 global business mangers (GBM) liable to run the company. In Samsung, the main work of BOD or CEO and members are controlled by audit committee which has wide span of control. The factors affecting span of control is complexity of functions as we see in Figure (1) the CEO is the main responsible for Samsung company. In addition, it can be far-reaching or quite limited and is typically enshrined in a formal delegation of authority the CEO can make a decision as director (UKESSAYS, 2015).
Span of control in Dell
Figure 3: span of control in Dell
Figure 2: Span of control in Dell
In Dell organization, they use three levels of ranking as shown in Figure (3). The CED is stationed on the top ranking on a par since he or she is selected to manage utter the attitude of the organization. The top manager in Dell has mast the domination through the organization deal and through other employees. Also, the director has symmetrically as much duty to running the organization, he doesn’t have all the domination through the company he just manages it. The administrator has most domination through the organization with director as well as having a little clout through the company (Justin, 2009). Moreover, a company like Dell having many staff members should have a supervisor because at sometimes a CEO doesn’t have time to scrutinize on necessary work that should be completed. The second level of the DELL company, as given in Figure (2), shows the company in the second ranking level split to more particular company (CFO branching to CFO-small and medium, CFO-customer and CFO-public group) with more attention to respective to main administration being authorities for administer them. Dell seems to be like a wide span of control organization but in fact Dell has a narrow span of control (Justin, 2009).
It’s one part of organizational structure that contains the subdivision of a business into units based on their function or other standards. Most companies, are probable to use two or more sorts of departmentalization altogether. Some of the standard models of departmentalization contains grouping jobs by product types functional activities, geography processes, customer groups, etc (Sandilands, T., 2010).
Departmentalization in Samsung
In Samsung, all the departments are grouped together in order to coordinate the work and to achieve the organizational goals. It has several departments such as laptop, computer, storage, etc. This is due to the fact that it is manufacturing company which produces various products such as; laptops, computers, netbooks etc. The employees work in different groups targeting the requirements, type and nature of the products and the costumers and in Figure (4) it’s shown product departmentalization in Samsung.
Figure 4: Product departmentalization in Samsung
Departmentalization in Dell
Being a global company require a department to handle all the operations and deal with international matters. As shown in figure (1), the departments of Dell are divided into more specialized, for instance, it has marketing, finance, operations, services, human resources and more other departments. In addition, Dell has international departments to manage its business by having offices in three geographic regions: America, Asia Pacific, Europe, Africa and many others as shown in the chart below.
Figure 5: Geographical departmentalization in Dell
Centralization and decentralization
Centralization refers to the hierarchical level within an organization that has authority to make decisions. When the decision making, roles are given to the top-level management then the organization is centralized. Whereas on the other hand, decentralization refers to an organization that has its decision-making role given to lower organizational levels. Each organizational design has its own advantages and disadvantages.
Centralized and Decentralized Structures in Dell
Figure 6: Decentralization in Dell
Dell Corporation’s authoritative structure may be a functional, decentralized structure as shown in figure (6). Dell searches for the most utilitarian parts that would help improve the performance of the company so it has employees at lower level who have decision-making authority where CEO won’t have time to make decision on everything. In contrast, the unified structure needs a greater amount of those choices made nearing starting with those upper levels of the enterprise (UKESSAYS, 2015).
Centralized and Decentralized Structures in Samsung
Samsung electronics has a centralized structure that makes the decision-making procedure swiftly. On this manner, the gamble is extra efficient as implementation of any plans, ideas or policies can be finished rapid with no delay which is important specifically when dealing with quick financial procedures (Choong, Y. L., 2012). However, centralization is not top for business, all the critical decisions are made from the top control as the middle and first line management cannot voice out their critiques. If the decision made via the top management was wrong, it’s able to have an effect on the business enterprise and commercial enterprises thus lowering the organization profits.
Work specialization is how to separate the workers. The company makes a plan for future work for employees. It is not easy to conclude that the specialization of the work affects the employee, since the advantages and disadvantages are directly dependent on the qualifications required to perform the work. Here some advantages of work specialization: 1. Rise in production space. 2. Capacity of product is better. However, work specialization has some disadvantage as: 1. Employees can lose interest due to relapse of jobs. 2. Jobs become boring and absenteeism increases.
Work Specialization in Samsung:
For this company, people’s need is in the forefront and in order to meet these needs that Samsung continuously works on by improving its own technologies, which should benefit our customers and simplify their lives. However, even the most innovative company cannot develop without the main driving force of any business – a cohesive team. Teams inspired to think outside the established framework and create truly remarkable things. It’s the team of Samsung, which is 300 thousand people in 84 countries in the world, that allows us to radically change our ideas about what modern technologies are. Samsung offers each of its employees all the opportunities and resources to uncover their true potential. Employees receive full freedom of action for self-expression. Therefore, anyone who works at Samsung can become not just a high-class professional, but also a true innovator and inventor. Naturally, this requires a lot and serious work, but the results of such work are worth the effort.
Work Specialization in Dell:
Dell pays a lot of time and money on personal computers to be ahead of its competitors. Since the beginning of 2009, Dell has been using its own specific approach that focuses on four groups of users: the consumer, corporations, small and medium businesses, governments and educational institutions. Dell Corporation suffered several setbacks in the area of reorganization, because managers were in search of a suitable organizational structure to overcome new goals. Dell uses a variety of advanced technologies, for example: online learning, through CD-ROM and web-based education systems, this is all done for self-study, which allows workers to learn as they work. Michael Dell, the founder of Dell, wrote in his annual report at the University of Dell: “Our goal is to teach” stealth education “, which fits so much into our work that we do not even realize that we are learning.” Dell has an extensive catalog of courses that’s taught on topics such as operations, finance, management, customer service, technology, sales skills and project management (WordPress, 2014).
The effectiveness of the organizational structure for Dell and Samsung
Dell company supplies with corporate and administration customers. Its interesting capacity will detract a business method position. Throughout vital innovation, organization moves due to its building. These methods are likely rules that don’t improve by their own unless somebody or a percentage association makes a strategic decision. The hierarchical structure includes defence and the various function provided by dell corporation including business development and education worldwide (Professays, 2006).
In Leading, motivating employees, directing action of others, selecting the powerful correspondence channel and conflict resolution are taking place. Office of Secretaries takes the leading part in Samsung as it implements coordination whenever conflicts occur.
Organizing comprise determining what tasks to do, who does them, how they are grouped, who reports to whom and who makes the resolutions. Samsung Electronics has a strong structure for business division that is managed autonomously by business unit managers. Samsung splits into five sections, which are Digital Media, Telecommunications, Digital Appliances, Semiconductors and LCDs. Within these sections, there are 13 Global Business Managers (GBM) where their responsibility is to organize the firm along major product divisions in terms of personnel, sales and production within their respective divisions (UKESSAYS, 2015).
Recommendations of Samsung and Dell companies
Recommendations of Samsung company
Samsung company may sell its products consumer and customer. People can buy its goods direct on interest also. They might also maintain the negative cash conversation cycle from this model. One suggestion for Samsung is to receive the payment before why they have to pay for new raw materials. They should be able to provide their products (electronics goods) in the right time, right places, right cost in right way. We suggest to the company to design and marketing strategic according to diversity and different economic environments. Their business strategic should focus on their enterprises business.
Recommendations of Dell company
Dell needs to remove itself from its current followership strategy and invest more in R and D so they can innovate new products. They should focus expansion efforts in the education sector. Dell needs to start manufacturing its own PC parts. Continue global expansion strategy into china and India.
After all information given about the huge companies, Dell and Samsung, we found that each company has an organizational structure that distinguishes power and authority, roles and responsibilities and shows the flow of information throughout the organization. Those companies cover biggest area of global marketing in the world and has set upon a simple business philosophy; to dedicate their technology and talent for creating the best products and services that contribute a better global society.
All in all, we can say that the way of management is not only one way to success, the secret might be behind a lot of ways such as success in the creativity, the development, the innovation, and the customer’s satisfaction.
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GROUP TASK REPORT
Area of Responsibility
Name and Signature of Member
1) Span of control in Samsung
2) Span of control in Dell
4) Group task
1) Centralization and decentralization in Samsung
2) Centralization and decentralization in Dell
3) Recommendations of Samsung and Dell companies
1) Table of contents
2) Introduction and background of Samsung
3) Introduction and background of Dell
4) Departmentalization in Samsung
5) Departmentalization in Dell
1) Executive summary
2) Departmentalization in Samsung
3) The effectiveness of the organizational structure for Dell and Samsung
1) Work specialization in Samsung
2) Work specialization in Dell