The Leadership Style Of Michael Dell Business Essay

The first attribute & most importantly, from the leader is the decision to become leader. At what point of your time and the leaders decide they would like to provide others with vision, and guiding the span of events in the foreseeable future, and inspire others to have success. These people have some characteristics that help people identify the leaders of this trust and ethics, discipline and respect. Leadership requires the average person in the exercise of power and responsibility. If someone choose to become leader, whether in community, workplace or in circumstances of emergency, and discuss these characteristics will help leaders develop the right mixture of qualities, skills and ambition.

One important quality of any good leader is trust. When the leader believes in him, among others follow suit. Leaders cannot expect others to believe them if indeed they doubt themselves or they make decisions. In addition, to be able to lead, one must be a strong set of moral values. And a fixed set of values is always one reference when confronted with a difficult decision-making. People can predict how they might respond to their leader some cases because they know very well what faith in which they live. Leader with the moral values gives those who they lead to ensure that the decisions they make will be desirable ones. Another feature a good leader must have is discipline. Good leaders must be able to discipline themselves first and then those where they live. With a little effort, and should be considered a leader be able to put others on the right course. Finally, all leaders need to respect: respect for themselves and respect for others, and most importantly, respect from others. Leader without respect for any leader in any way. People committed only to those who respect and, therefore, that the leader must earn the respect of others through continued and constant accountability. Any person who may have these qualities (trust, ethics and discipline, and respect) has the keys to leadership. It is their choice to be utilized effectively or not used whatsoever.

This assignment examines the entrepreneurial and leadership skills of Michael Dell, the CEO and Chairman of leading online PC retailer DELL. Michael's interests and business ventures starts during his college days and his entry into the computer business are explored in detail.

Literature Review:

"A leader is a dealer in hope" Napoleon Bonaparte said. Leaders are the key people behind organizations' success. How leaders influence people has a great impact in the amount of organizations' performance and success. Employees do their work by following instruction with their managers. But if they willingness follow instruction rather than forced to do it creates another type of.

Ralph Stogdill (1950) defined leadership as "an influencing process targeted at goal achievement. " Leadership is focused on making people follow leaders' goals. Folks are affected by leaders were the willingness follow them.

There are different leadership styles describes leaders behavior. Leaders are known as autocratic when they are more directives and monopolize decision making. They may also be participative when they put people beside them in taking decisions. Other leaders are democratic were they delegate powers to the people and empower them.

Lots of theories have been raised related to leadership. Earlier theories discussed more the leaders as people born with special characteristics which will make them leaders. One of the earliest theories defines leadership is the fantastic Man theory (also known as Heroes) by Thomas Carlyle which suggest that leaders born not made. It also suggests that leaders come when there's a great need. Trait theory followed the same base suggesting that leaders inherit special traits and the right combo of traits make them leaders.

Behavioral theories worked against earlier theories suggesting that leadership can be learned and made. These theories look into what leaders do. Among the famous theories is Managerial Grid by Blake and Mouton in the 1960s who described leaders predicated on their concern for people against their concern for production.


The contingency leadership theory came with an idea that there surely is no one easiest way to lead people. It suggests that a powerful leadership style in a few situations might not exactly be successful in other situations. Least Preferred Co-worker (LPC) theory by Fred Fiedler is dependant on scoring leader's thoughts and opinions about their co-worker and their preference to work with again based on positive factors (friendly, helpful, etc. ) and negative factors (unfriendly, gloomy, etc. ). High LPC leaders tend to be supportive and also have close and positive relationships. Low LPC leaders are task oriented and could turn to relationship only when they are content with the way the work is going.

Situational Leadership suggests that leadership style changes predicated on the situation. According to Hersey and Blanchard, they categorized leadership styles into four types, Telling, Selling, Participating and Delegating.

Telling: clear directions where leader is sort of autocratic. All decision are created by the first choice. The roles are clearly defined and tasks procedures are given. It is a one way communication. This style can be followed when people lack the specific skills and are unwilling or struggling to do the task.

Selling: still directions are provided by leaders. Leaders provide socioemotional support. It becomes a two way communication. This style works to folks who are willing to do the duty but struggling to take responsibility for this.

Participating: leaders tend to be supportive and collaborative. Folks are involved in decision making and in deciding how the work is performed. Leaders follow more relation behavior and less task behavior. This style works when people are experienced but aren't confidence enough to take responsibility.

Delegating: leaders plays a monitory role. People are more responsible. Such style works when people are experienced and in a position to take responsibilities.

Figure : Situational Leadership

When people follow leaders because they inspire them, these leaders are known as transformational leaders. These leaders with vision and passion and can perform great things. They motivate visitors to follow them by their charisma which moves peoples' enthusiasm and accelerate their energy. Such leaders have a great big picture and influence followers to view it and work toward achieving their goals. The opposite type of leaders is transactional leaders who motivate people by reward and punishment. They are really more work oriented and they put clear work structure for people to follow. This kind falls under the leaders who rely on a system of rewards and taxes. If they are choosing the leader of the group must be set to check out the rules and do what's required from the first choice without discussion, to enter the finish the rewards.

Micheal Dell Biography:

Michael Saul Dell is the founders, the chief executive officer and the chairman of Dell Inc. He was born on 23/02/1965 in Houston, USA. He's married with 4 children residing in Austin, Texas in america. He's ranked 44 of the richest people in the world with a net worth of around USD 14. 6 billion. (http://en. wikipedia. org/wiki/Michael_Dell)

His passion with computers started at age 15 when he disassembled his Apple II, his first computer, and reassembled it to see it working. His bright business idea started in his first year of studies at the University of Texas at Austin in 1984 - when he was just 19 - when he started his own business with only USD 1000 capital. He started building and selling personal computers from his university room with an idea to sell right to customers rather than selling through third parties which will make his product cheaper than the market. This allowed him to develop PCs based on people's requirement. These all allowed him to construct customized PCs predicated on customers need and prevent storage costs.

Mr. Dell did not complete his university as he left University of Texas Austin to concentrate on his new venture - PC's Limited which grew sharply to be listed as Dell Computer Corporation in 1988 which were valued around USD 85 million. In 1992, Dell Computer Corporation was listed as one of the most significant 500 companies on earth on the Fortune 500 which made Mr. Dell the youngest CEO ever.

His company grew rapidly and be one of the leading computer firms around the globe. He managed it directly being the CEO for almost 20 years till early 2004 when he stepped down from being the CEO and be the chairman of the board of directors of Dell. In 2007, Mr. Dell returned to manage the business as CEO at the request of the board to replace Mr. Kevin Rollins as result of a 9% drop of Dell stock performance.

Mr. Dell spends lots in charity activities as he spend huge amounts for philanthropic activities. He along with his wife Susan formed the "Michael and Susan Dell Foundation" which aims to improve the children lives in USA and internationally.

Dell's Achievements

Mr. Dell is a magnate who led his company to be huge to be looked at one of the major companies in the world. It really is ranked 41 from the top American companies according to the Fortune 500 in 201 predicated on twelve-monthly revenue.

Since his beginning with his room with USD 1000 in 1984, with a tiny capacities but a sharp and powerful vision to market cheap computer with custom features, Mr. Dell moved forward sharply. His company PC's Limited introduced its first own design computer "Turbo PC" in 1985 which made USD 73 million as gross profit. 3 years later, PC's Limited was renamed as "Dell Computer Corporation" and be a public company after offering 3. 5 million shares through IPO at a price of USD 8. 5. Dell opened its first international branch in UK in 1988.

Dell began a web based selling strategy in 1996 which was a revolutionary idea which boosted their revenue. Dell Computers Corporation become Dell Inc in 2003 to reflect their expansion beyond computers as services introduced by dell such as televisions, handhelds, digital music players, and printers.

After Michael Dell became the chairman and Kevin Rollins became the CEO in 2004, there is a drop back dell performance of its computers end product force Michael Dell to wear his hate again as Dell's CEO in 2007.

Dell experienced many acquisitions which helped in expanding the business. Their acquisition series started in 1999 by acquiring ConvergeNet Technologies. During Kevin Rollins time heading the company, Dell acquired Alienware in 2006. In 2008, the acquisition of EqualLogic helped to place a foothold in the storage market. Dell also acquired Perot Systems in '09 2009 and Software-as-a-Service in 2010 2010,

Michael Dell's Leadership style:

When Mr. Dell started his own business, he previously limited management experience. As his business started growing sharply, management skills became essential to drive his company toward success. Vision is insufficient at this time. This is why he brought his Lee Walker who was simply a venture capitalist who provided him with the required managerial and financial experience. Mr. Walker was Dell's mentor and helped building his confidence to become a polished executive. Mr. Dell turned into a charismatic leader as his understanding of all elements of the business enterprise grew and he motivated people by gaining their loyalty and respect.

Mr. Dell used to hang out along with his engineers in the early days of his company. He was known as a shy person. People who worked closely with him described him and "likable son who was slow to warm-up to strangers. " (Successful leaders, 1999)

His experience made him a presenter as he's known to speak in a quiet reflective manner. He motivates people who have his charisma and aggressiveness.

His successful leadership is because four main strengths:

His goal was clear and he stayed concentrate on it.

He has a strong innovation sense.

He is a hard worker with a great understanding of his responsibilities. He is known of his good balance between work and life (family).

He has powerful vision for future years with a distinctive business's philosophy.

Dell's manages his company directly as a CEO for twenty years where he was known as a warm guy with good characters for making his staff feel just like part of your team. After he dropped out and Mr. Kevin Rollins end up being the CEO, Mr. Kevin kept and emotional distance from staff. In 2007, the board of directors of Dell Inc. agreed that Mr. Dell is required to glue the team again. He's back as the CEO and changed his way by introducing a fresh leadership board. He delegated power and share decision making.

Mr. Dell brought Mr. Kevin up to speed when the company expanded to acquire multi product in multi geography locations to help him manage the business. They started a fresh leadership approach of having two CEO's in a single company. Despite the fact that there is risk of conflict but fortunately, it worked well with them.

Dell said: "Plenty of places. I'm helping set business strategy and providing clear performance objectives for different parts of the business enterprise". He also said "I'm selling Dell all the time to many individuals: customers, investors, employees. "

Analyzing Dell's management style showed different ways of leadership. He was autocratic in his early life where he makes decisions. He became participative when he started sharing management, first when he started the two in a box style where two CEO in board leading the business, and second when he introduced the leadership board after he returned to CEO position in 2007.

The way Mr. Dell changed his style to fit the conditions of his organization showed that he is following a situational leadership style. However, his style was more affecting people by his characteristics rather than his way of decision making. People working with Dell have a feeling of loyalty to him. He managed the company since its inception and was successful leader where everyone liked him. When he left for three years, employees, performance got influenced and Mr. Dell returned to assemble the team back. Such charisma and effect on people proves that Mr. Dell is a transformational leader who guide people by charisma and inspires them to follow his goals.

Characteristics of Dell make him effective Leaders. Following a transformational leadership style gave him credibility, resulting in the trust and confidence of his people. Keeping the promises and follows through on the commitments was part of Dell's qualities. Dell makes sure that the actions are steady with the wishes of individuals leaded. He has a idea of what others value and what they can do.

Michel Dell creates a trusting and open climate, to help others to be successful also to feel empowered. He also tried to encourage members to do more. Michel Dell showed the followers that they aren't just the figurehead or decision maker. Members respect leaders more when they show the willingness to work alongside them. They avoid phrases that cause resentment, reluctance and resistance. For instance, instead of saying you should do something, effective leaders request or recommend that members take action. Characteristics of a Successful Leadership are the person others choose to check out, provide vision for future years, provide inspiration, make other folks feel important and appreciated and last but not least behave ethically. (Leader Skills, 1982)


The importance of leadership style is evidenced by an extended history of educational and managerial theorists who have promoted a variety of concepts to explain leadership expertise. Proponents of transformational leadership theory have claimed that transformational leadership is the most favorable leadership style in any setting.

However, situations may vary between organizations base on culture, type of business, people's behavior, etc. However, Michael Dell case shows as main issues to be a great leader who creates difference. Among the primary lessons of the assignment is the fact that successful leaders will need to have a specific goals and vision. He will need to have an extended seeing vision.

Leaders also must influence others to motivate them to check out their vision and achieve organizational goals. They need to transform their goals and vision all followers' practice.

Innovative is one of the critical characteristics of a strong leader. Leaders should develop this sense in the organizational culture. They must be willing to adopt risk of doing new things and find an opportunity from it.

Other lesson from Dell's case is leaders must have high moral responsibility. How Mr. Dell had a clear distribution of his time between work and life. Moreover, leaders with good relationship behavior become more attached by followers. Such leaders gain people's respect.

Dell does not have any fear of admitting what he's incapable of. Whenever he misses any skills, he get someone capable to the board to help him managing the business enterprise. This made him successful and allowed him to get experience from those individuals.

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