The global market is attractive to many companies around the world. However, it also contributes to situations that would be considered unacceptable on the national markets of developed countries. A good example is Dell, which opened its fourth call center in India in 2006. This paper aims to describe the role of HRM in the organization of Dell’s work processes and discuss the obstacles that Dell faces due to globalization.
The working conditions of Dell employees in India are far from ideal. Employees are led by local managers who do not have the education necessary to manage a team of call center operators. As a result, they created the absurd rules for operators who have to carry out at least 28 conversations per hour while working from 12 to 16 hours a day. The HRM department of the company does not influence the situation to protect employees who are deprived of any privileges. Therefore, the company needs HRM to establish quality communication between employees and senior management. The HRM department should also be able to work directly with local managers to train them in more successful workflow strategies.
Further, one of the main obstacles to creating a healthy working environment and maintaining company values is the pressure of competition in the free market. It means that an increase in income from the desired result becomes the necessity of survival in the market. Therefore, company seniors have to set excessively stringent requirements on the effectiveness of foreign workers. To summarize it, for the success and survival of the company, it would be useful to find a compromise between the market requirements and the employees’ needs. Responsibility for finding such an agreement can be assigned to HRM, as HR resources and strategies would make a difference.
The global market provides an opportunity to gain more buyers. However, like the national market, the global market is segmented, as different countries offer different conditions for doing business, and buyers have different purchasing power. Therefore, Dell offers customers various service options and product lines. This paper aims to discuss the difference between globalization and customization in marketing segmentation on the example of Dell’s marketing approach.
The globalization of the company suggests that it operates in the international market, whereas the customization approach assumes that the company provides various products and services to its customers. Customization in the context of globalization may mean that Dell will adapt some products to local markets, in particular, by producing cheaper products to match consumer purchasing power (Solutions and Services, 2020). Dell will not have problems with advertising on the global marketplace since computer technology is a common good like lipsticks or automobiles.
In all likelihood, Dell offers products for customers from all market segments. For the premium segment of customers who are willing to pay more, there is a line of premium products. For example, these are widescreen monitors with the highest resolution. However, the main category of Dell buyers is the middle-market segment, that is, middle-income buyers who value quality at an affordable price. On the company’s website, we see offers for small and medium-sized businesses, such as high-speed servers and working networks for various industries (Solutions and Services, 2020). The company also offers a wide range of products for home use, such as laptops for gaming. The specifics of the company’s products practically exclude sales for customers at a low-end segment. Still, it can be assumed that they will use the company’s products in online clubs or other public institutions.
Despite the number of opportunities, the free market dictates its requirements, forcing companies to focus primarily on maximizing revenue. It leads to the degradation of competitive relations in terms of innovative product development and implementing better workflow approaches. This paper aims to discuss the key negative effects of the global marketplace while considering the Dell Company as an example.
One of the most significant adverse effects of the global marketplace is the need for senior management to focus on optimizing financial processes, ignoring other opportunities for organizational change. For example, in the Indian office of Dell, call center employees are forced to work 12-16 hours a day, serving at least 28 customers per hour. At the same time, managers do not get the opportunity to develop their skills through training, and operators are deprived of privileges such as paid sick leave and any allowances for time off.
Moreover, the harmful effects of the global marketplace may include a change in attitude towards business at the level of introducing new state laws that protect business processes, jeopardizing the social security of citizens. For example, the withdrawal of funds in favor of businesses negatively affects the quality of public education, health care, and social security services. At the same time, a more responsible approach to innovation and organizational change may help to increase the level of satisfaction of both employees and customers of the company. In particular, Dell could start by changing working conditions for call center employees and provide local managers with the opportunity to learn the necessary skills.
Reference List
Solutions and Services. (2020) Web.