Factors Affecting Organisational Structure of Microsoft

OTHER
MANAGEMENT

INTRODUCTION
An organisational structure is a process which outlines all the certain activities which are
directed in order to achieve certain goals of an enterprise. Its elements can include roles, rules
and responsibilities. Microsoft corporation is a multinational technology corporation from
American. It produces consumer electronic, personal computers, computer software etc. Its
headquarters are at Microsoft Redmond campus which is located in Redmond, Washington US.
This company's finest goods are the Windows line of operating systems, the net explorer,
Microsoft office-suite and Edge web browsers. In this process, the Microsoft's structure will be
explained with elaborating the factors like Size, technology, process and strategy etc. which
influences the environment of the company with various characteristics and it will also show the
dynamic external environment effecting the company like innovation etc.
TASK
Analyse the factors that effect the organisational structure of Microsoft
Microsoft corporation organisational construction helps the business to grow. Especially when
Microsoft corporate structure has been changes in 2015. The structure of this company is defined
to the arrangement and anatomy of the firms and its components. It’s all throw light on the
importance of business output by stressing the organisational structure (Raziq,David and et,al.,
2020). This company is a leading player in the IBM-PC compatible market system. Microsoft
company;'s success depends on the suitable structure in market situations and industrial forces.
The factor influencing the Microsoft Organisational structure are:
 Size- The known Aston Group researches the various size of Microsoft company and
concludes with the increase size in structure, the need for job standardization and
decentralization and specialization which increases the company's structure.
 Technology- when its about mass production technology mechanistic organisation
structure is more reliable and if comes to small scale production technology the organic
structure is more appropriate.

 Strategy- it determines the action in the Microsoft organisational activities. This process
helps us to make plans to co-ordinate physical resource and human to word for a general
objective. Strategy has structure it goes like this.
 Environmental volatility- Microsoft cannot ignore the effects of environment of the
organisation as it responds to many opportunities and satisfaction to many external
parties like suppliers, customers, layout union etc (Nene and Pillay ,2019). If the firm
wants stable environment, then performance of the employee and there routine and
specialised job do not change frequently for this a close mechanistic organisation
structure is appropriate.
 Process- first identify the skilled variety and talents. Then distribute task according to
their skills the task provided should be significant for all the people inside and outside of
the organisation and in the end decision , from top managers or lower-level managers
about the task given to the employee of the company Microsoft.
Identification and analysing the characteristic of the organisational structure of Microsoft.
Organisational theory is the study of structures and operations of social organisations it
includes companies and institutions which are bureaucratic in nature. This theory includes action
of the employees, evaluation of productivity and performance of the firm and group of
employees in the firm (Głod, 2019). the organisational theory understands the dynamics of a
succeeded business.
The characteristics of the organisational structure of Microsoft are:
 Divisional structures- This structure consists of operating units, parallel divisions. In
this process there is division of products and services on the basis of geographical

location or customers. This structure helps to work independently. Microsoft company's
business sector allows the number of employees, desired control over the units can
analyse whether the divisional organisational structure is the firm is useful or not.
Microsoft corporation has Product kind divisional organisational construction. This involves
computer hardware and software goods. Or the organisational outputs. Structure can be:
1. product type divisional- these are primary characteristic this firm has self-sufficient
division for intelligent cloud products and different divisions for different products.
This can four elements- 1. More personal computing 2. intelligent cloud 3. productivity and
processes and 4. corporate and others.
2. Global corporate groups- This is secondary distinguishing. These groups are based on
important computer technology business (Turi and Sorooshian, 2019). Example. Human
Resource Groups. In Microsoft firm structural can be followed by- 1. Office of CEO 2. Microsoft
Office 3. Finance 4. Human Resource etc.
3. Geographic segments- These parts are used for group operations in the enterprise.
This shows financial reports. This segment is divided in two parts. 1. united stated 2.
International.
 Functional structures- The functional structure is that which organizes companies’
different departments based on areas of expertise. Like Functional Managers or heads of
department run the functions of the Microsoft Firm in a structured way. Functional
structure is the divided into the different groups and divides the major functions example
can be, finance department, (IT) information technology department, marketing
department, production department etc. This has very clear hierarchy as all the team
members has to report to the Manger and there is less interaction between CEO and staff
members.
 Matrix structures- This structure works as the team members report to many leaders. If
the company is using Matrix structure, the team members report to project manager and
then to department head. This structure helps the company to work for new products and
services without rearranging the teams. This structure can be divided in sub categories:
1. Strong Matrix- The project manager has all the control and consultant; manager panels the
project budget and manages staff. The role the functional manager has some limits.