PRESENTATION ON DYSON Critical Review of Dyson’s Present Organization Structure.

Critical Evaluation of Dyson’s Cultural Challenges.

Evaluation of Dyson’s Information And Knowledge Management.

Group Members:o Dhyanesho Furqano Manazao Mikino Shemema

TABLE OF CONTENTSTABLE OF CONTENTSIntroduction:o A Brief introduction about Dysono History of Dyson

Organization Structure of Dysono Critical Review of Dyson’s Business Structureo Advantages & Disadvantageso New Structural Options for Dyson

Cultural Challengeso Critical Review of Cultural Challenges o Possible Action to overcome them

Information And Knowledge managemento Critical Evaluation of Information And Knowledgeo Possible Actions to overcome them

INTRODUCTIONINTRODUCTION

About us: Dyson is an Electric Domestic Appliances

Manufacturing Company. The first factory was

established at Malmesbury Wiltshire in year 1995.

History: G-Force' was the name given to Dyson's first

widely-available vacuum cleaner in the year 1983. But

the fact is it was not sold under the Dyson name.

Size of the Company: Dyson generated profit of £87M

in 2007 and sales of £3Bn in 2007. the company has

approximately 2000 staff.

INTRODUCTION CONTINUE…

Geographic: Dyson shifted its Production unit to Malaysia in year 2002, while the R&D remains in UK..Dyson is operating in 50 countries around the world.

Influence: The Dyson is influence by culture, innovation, information & knowledge.

Option 1

PROPOSED STRUCTURE

Comparison of Present StructureAdvantages Disadvantages

Cost Effective(e.g. Labour, logistical, production, raw material in Malaysia, China)

Communication gap between head office & branch offices (e.g. Some area & branches are decentralized

Decision Making (e.g. Decentralization in Malaysia & China, that’s why easy to make decision in relevant activities)

Success and failure depends upon one person (e.g. R&D centralized)

Accurate decision on innovation & creativity (e.g. R&D decisions are taken by tom management)

Potential Conflict & confusion (e.g. all branch managers dealing with same thing at headquarters except New Zealand and Australia

Reduce the pressure on senior management (e.g. Asia region is decentralize)

Expensive training cost on employee (e.g. because of centralized R&D, production employee need training about new invention)

Proposed Structure (Divisional )B.O.D

C.E.O

ASIA EUROPE AMERICANORTH/SOUTH

AUSTRALIA/ NEW

ZEALANDMALAYSIA CHINA

Legal & Secretariat

Production/Sales

Finance

Procurement

IT

HR

Legal & Secretariat

Sales & Marketing

Finance

Procurement

IT

HR

R & D

Comparison of proposed structure

Advantages DisadvantagesFlexible and responsive to change(e.g. each unit focuses on its environment and there is coordination among different function within the division)

Lack of goal congruence(e.g. R&D is centralized, decision is making slow)

Copes with diversity & demand(e.g. branches can easily cope local culture)

Inter divisional coordination may suffer (e.g. because of decentralization and proper training)

Clear Responsibility for product(e.g. managers are responsible for their own resources)

Limited control over regional operation (e.g. communication gap between head quarter & branches)

Developing Senior Executives(Senior managers gain broad range of experience in running autonomous units))

Employees in different division may feel that they are competing with one another.

Option 2

PROPOSED STRUCTURE: (SAME AS PRESENT STRUCTURE)

REASONS OF HAVING CURRENT STRUCTURE

1. R&D is their biggest strength according to Sir James Dyson.

(e.g. as they are on the top because of high innovation which depends on R&D)

2. They have minimized their manufacturing cost.

(e.g. product plants in Malaysia and China)

3.Unique Marketing and sales strategy.

(e.g. products are being displayed in museums)

4. Relocation of production unit has benefited Dyson.

(e.g. Highly skilled work continued to be performed in UK

Dyson’s Present Culture CORPORATE CULTURE 1. Principal assets of company is Customer Satisfaction 2. Global organization.

TASK CULTURE 1. Spend huge amount on R&D before giving final Product in market. 2. Continuously working for improvement of product.

GEOCENTRIC CULTURE 1. The persons working in UK R&D Department finalize the product.

POLYCENTRIC CULTURE 1. Appoints People from the Host country to run Business.

ETHNOCENTRIC CULTURE: 1. Follows British Culture.

Cultural Challenges Faced By Dyson

INDIVIDUAL DECISION: Diversity in Production department is not encouraged. as James Dyson’s own decision counts the most.

LANGUAGE: Dyson stresses the English is spoken widely, but it is not really the case as competent and semi-skilled workers are accustomed to official language and thus it makes it difficult to orders from English speaking UK heads.

VALUES & BELIEFS: Dyson fails to appreciate cultural values due to lack of cross-cultural competence, it risk its business when dealing with suppliers, business partners and even employee turnover increases.

Ethnocentrism: Adopting an ethnocentric approach by UK managers was opposed to the Malay culture.

Possible Actions to Overcome Cultural Challenges:

Individual Decision Making: Employees ideas and contribution should be considered while making a decision.

Rewards: Appreciation and Higher Education to employees.

Language: Dyson should employ the staff from the host countries to minimize the language barriers.

Belief and values: Dyson should innovate more new products according to the requirements of the peoples in particular country.

EVALUATION OF CURRENT INFORMATION AND KNOWLEDGE MANAGEMENT AT DYSON

Advantages Knowledge Sharing: Dyson ensures that the information is shared between all the departments of the company. This ensures the up to date info and consistency at all level. Customer Feedback: Information of customer demand and feedback is considered effectively to provide better customer satisfaction. Daily news Bulletin: Dyson has a daily news bulletin relating to the latest development and status of company for all employees.

CONTINUE..CONTINUE..

Disadvantages Lack of face to face discussion: Engineers have to travel to Malmesbury to Malaysia or China to Finalize the Product.

Despite of having dedicated individuals and best technology, Dyson has not been able to market its product extensively.

Premium Prices: The price structure is not very competitive as all the products are of premium rates.

How culture impacts in the use of Information and Knowledge Management System (IMS)Information Behaviours and values:

The capability to instil and promote behaviours and values in people for the effective use of information.

Information technology practices:

The capability to effectively manage IT applications and infrastructure to support operations, business processes, innovation and managerial decision making.

Dyson prevents any form of harassment in the workplace which

motivates employee and feel secure.

Dyson creates healthy and safe working environment.

.

SUMMARY AND RECOMENDATION1. As Dyson has centralized R&D in their structure and

creating innovative culture by sharing data using leading technology.

2. Diversity of products on the basis of price which enable Dyson to get the maximum market share.

3. To Make sure that relevant employees have access to information and knowledge.4. Dyson just need little modifications regarding more

decentralise approach that might be costly but needed to keep global All British Image as well standard quality.

5. More integrated information and knowledge management at all sector must be established that need to be free from bias as well as updated.

Mullins, L. 2007. Management and organisational behaviour. UK:

Pearson Education.

Laffan, B. 1996. Information Management. [www]

http://www.anu.edu.au/mail-archives/link/link9606/0050.html (17th

march 2009)

Sveiby, K. 2001. A knowledge-based theory of the firm to guide in

strategy formulation. Journal of Intellectual Capital, 2 (4), pp. 344-

358

http://www.dyson.co.uk

http://www.dyson.co.uk/insideDyson/search.asp

http://www.dyson.co.uk/sitemap.asp

http://www.dyson.co.uk/technology/

References

http://www.dyson.co.uk/technology/handDryerTech.asp

http://www.dyson.co.uk/store/helpmechoose.asp?

feature=AllergySufferers

http://en.wikipedia.org/wiki/List_of_Dyson_products

http://news.bbc.co.uk/1/hi/business/1802155.stm

http://www.press.dyson.com/uk/releases.asp?placement=PRESS

http://www.dyson.co.uk/insideDyson/article.asp?

aID=dysonschool&disType

References cont’d….