Organisational Structure and Growth of Microsoft

This report analyses the organisational structure and growth of Microsoft, including the factors that influence its structure such as size, life cycle, and strategy. It explores the characteristics of Microsoft's organisational structure and the relationship between culture, leadership, innovation, and growth. The report recommends that Microsoft should follow more leadership theories like situational theory to make their leaders capable of facing difficult situations.

ORGANISATION
THEORY

Contents
INTRODUCTION...........................................................................................................................1
Factors that influence the organisational structure of Microsoft.................................................1
How the factors influenced Microsoft organisational structure...................................................2
Characteristics of the organisational structure of Microsoft........................................................2
Relationship between cultures of organisations and their growth and........................................3
evolution.....................................................................................................................................3
Relationship between the leadership of organisations and their growth and evolution...............4
Relationship between the innovation of organisations and their growth and evolution..............5
Conclusion ......................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Microsoft corporation is an American international company which is known for making
computer software and hardware. The company is best known for making operating system
named as Microsoft Windows and it is also popular for making flagship products known as Xbox
gaming consoles in the market (Hong, and Park, 2020). The organisation holds the position of
number 15 rank in fortune 500 magazine. In this report there will be brief analysation about the
organisational structure, factors that influence the structure and design of organisation. Also,
going to discuss about how Microsoft manages the dynamic process that shape their growth and
evolution in the industry.
MAIN BODY
TASK
Factors that influence the organisational structure of Microsoft
There are certain factors that influence the structure of the organisation -
Organizational size – In reality the organisational structure depends on size of the
company. If the size of the company is small the system will be organic (Kemppainen, and
Holden, 2020). Every employee should follow the decisions and rules within the parameters of
the organisation. However, it is difficult to manage the big organisation (Ibarra, and Rattan,
2018). They follow certain structures like division of work, delegation of structures Giving
responsibility to subordinates. These factors influence the organisational structure depending on
their size and what goals a company want to achieve in future.
Organization Life Cycle – This cycle tells about the company that it has different stages
in order to grow just like the humans. The four different phases are birth, youth, midlife and
maturity. Organisational structure depends on growth cycle in the birth stage the company tries
to grow in the market Kamodi, and Garegae, 2019). In the second stage youth the organisation
only motive is to become more superior. In the third stage midlife the company has achieved its
goals which makes them popular (Saeed, Shaikh, and Naqvi, 2018). In the final stage the
organisation maintains its position in the market by finding right stability plan.
Strategy – In this methodology the company tries to use different plans and strategies
which are beneficial for them in order to grow in the market (Alam, 2020). Organisational
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structure of a company is influenced with the right decision making by the management which
helps them to become successful in the market.
How the factors influenced Microsoft organisational structure.
Microsoft organisational structure is very large. In order to get success the company works on
certain structure. The structure which Microsoft use is
Product type Divisional structure – In this structure the company uses particular
product or services to deal with its customers (Maiorescu-Murphy, 2020). As per organizational
structure of Microsoft, Organisational size factor is applicable on the company because the
division of work and delegation of authority is very structured for different products. For
example, Microsoft has separate market of Xbox consoles in the gaming sector and also deals
with operating system named windows in the market.
Global Structured groups – The organisational structure of Microsoft is divided into
different management groups (Sheppard, 2020). For example different product development
groups are formed in order to launch a product successfully which fulfil the consumer
satisfaction in the market (Tony-Okeme, 2021). The factor which helps Microsoft in this aspect
is strategy. It helps them to innovate new ideas within the changing dynamic trends of the market
that offers the company to adapt with newer technology.
Characteristics of the organisational structure of Microsoft
Divisional – In this structure the company organises business activities into market. For
example market goods, and services. The characteristic of this structure is to create different
teams in the organisation and the main focus of these teams is to produce similar products as per
the customer satisfaction in the market each groups has its own resources to work independently.
The company main focus is on their goods and services depending upon these factors. They have
divided work into certain product development groups for example like Microsoft uses cloud
computing technology which is formerly known as Microsoft Azure. It provides range of
services like storage of data, and networking. This platform helps them to grow in the market by
achieving their organisational goals.
Functional – In this structure the company divide their workforce into same groups. The
employees shares similar skills and knowledge in order to get maximum output for the company.
This structure achieves highest operational efficiencies for the organisation. Microsoft created
corporate groups to perform different functions in their company. For example Marketing Global
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sales and operations Groups handles all the products and services sales in different regions and
another group which is marketing and promotion helps the company to promote different product
and services in the market like new operating system. The company has recently rolled out its
new operating system which is windows 10. This organisational structure helps the company to
carry out necessary functions as a whole.
Matrix – In this structure the employees of the company have the authority to report
multiple leaders in their organisation. There is two chains of command to ensure the flexibility in
the company. The organisation is managed by two leaders one is functional manager and other
one project manager. This two boss matrix helps the organisation to strengthen its cores and
helps them to achieve success and growth in the market. Matrix structure is basically used by the
company which has multiple products in the market. Despite, all these advantages this structure
can create confusions in the organisation. It creates conflicts between the management and
different working groups. Microsoft also uses this structure Because, they deals in multiple
products in different segments of the market. For example They make gaming consoles named as
Xbox and as well as operating system for computers popularly known as windows. This structure
allows the company to become organised in every manner whether in sales or technology
development. They are always one step ahead from their competitors by gaining maximum
output from the employees in terms of innovating new ideas or providing valuable services to
their customers in the market.
Relationship between cultures of organisations and their growth and
evolution
Organizational structure is defined as values, beliefs, and work ethics of employees that
helps the organisation to do overall growth and attain innovative goals in future. Microsoft
always motivates its employees to innovate new ideas. The company is following divisional
structure in order to gain maximum output from their employees. The main focus is on the
quality of products and attain higher customer satisfaction in the market. The company's
organisational structure is described below -
The company describes their culture as a vision to innovate new technologies in the
market. as per the accountability culture, Every individual in the company is accountable for
their decisions and they have to face certain consequences in the organisation. The company uses
different schemes rewards and recognition programs in order to get maximum output from their
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employees. It is also related with the other organisational culture like quality and innovation.
Microsoft as an technological company always have to think forward and innovate new ideas in
the market. The organisation growth depends on several technological factors like integration of
software, developing new cloud computing technology all these new ideas helps them to do a
sustainable growth in the technological sector. The evolution of the company depends on one of
the culture of Microsoft which is called growing mindset. It helps them to become the best in
the market. Their idea and perception towards growth is very logical. This is related to the
culture of diversity and inclusion. Due to the fact that Microsoft has high level of diversity in
hiring and recruitment polices. The organisation identify different potential skills of an employee
and uses that as business growth. The rivalry of the company with different manufactures helps
the organisation in a positive way. They use this culture to motivate their employees. Microsoft
rewards and recognition depends on the inherent skills of an individual employee. The idea is
simple to engage every employee. They uses different methods like meme contests, typing
contents, teams Bingo, online trivia these all methods helps the employees to perform best in
every aspect of business.
Relationship between the leadership of organisations and their growth and evolution.
Leadership is an ability of an individual that tends to inspire every other working
individuals in the organisation. The main aspect of a leader is to guide people and gain maximum
output for them in the business. There are multiple leadership theories -
Great men theory - It is a theory which tells us about the leadership qualities of the
leaders. That how a person is “Born to lead” with the leadership qualities.
Trait Theories – Trait theory is similar to great man theory. This Theory deals in two
categories the successful one and the unsuccessful ones. Every leader has qualities but not every
leader get a chance to be at top level.
Contingency Theories – In contingency theory it suggests that leaders only become true
leader when they perform their leadership in every situations. The leadership also create a
balance between behaviours needs.
Situational Theory – This theory suggest that leaders chose their decision depending on
the situations. The leaders choose best decisions in different circumstances which may be
profitable for the company.
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Behavioural Theory – This theory suggest that leaders are not born they are made by
getting right teaching and observation from their superiors.
Participative Theory – This theory suggests that leadership style is one that take the
maximum output from others members. They involve other members in decision making and in
other activities to feel more relevant and committed to their job in the organisation.
Microsoft is using these theories to develop new leaders in their emerging company. The
leaders uses participative theory in order to grow in the market. They involve their employees in
making different valuable and innovative decisions for their company. The main idea is to focus
on the growth of the employee and generate more revenues for the organisation. The growth of
the company depends on certain cultures like quality and innovation. Microsoft innovative ideas
helps them to capture the market with wide range of customers. As per customer satisfaction, the
company always includes responsiveness as a feature in its organisational culture. For example,
the leaders maintain feedback system and ensures maximum customer satisfaction this helps
Microsoft to beats its competitors in the market in a best possible way.
Relationship between the innovation of organisations and their growth and evolution.
Innovation is an important factor for an organisation in order to grow and develop a
sustainable share in the market with their products. Achieving innovation in the company
requires all the coordinated efforts from the employees. Their individual Skill set plays a vital
role in organisation success and failure.
Microsoft innovates newer technology every year with their products in the market. The
company's main ability is to innovate new ideas and successful utilisation of resources helps
them to hold a huge share in the market. The main culture of Microsoft is innovation which has
shaped its growth. For example the company has invested their time in making artificial
intelligence which can revolutionise the future. They also developed major applications like
Microsoft word, Office, Power Points etc. which plays a major role in the life of an working
professional in the market. Newer ideas in the technological sector is only factor which helps the
company to grow and Microsoft has adapted this factor in such a way in their organisation. That
now they stand a chance to survive in the market. Diversity is also an important culture in helps
the company to diversify its products and services in different regions. Microsoft hiring policy
always ensures to choose best suitable employees in their company to generate more revenues
and become more successful in the market.
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Conclusion
In this above report it has concluded that Microsoft has been following different kind of
cultures and structures in their organisation. The company generally focuses on divisional
structure which helps them to divide their work and delegation of authority. The organisation
also follows different kinds of cultures like growth and evolution, diversity. In order to generate
new innovative ideas for their growth perspective. It is recommended that the organisation needs
to follow more leadership theories like situational theory which helps their leaders to take
multiple decisions in different circumstances. It will be beneficial for the organisation to make
their leaders capable to face any difficult situations.
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REFERENCES
Books and Journals:
Hong, S.H. and Park, M.J., 2020. Dynamics of marketing automation adoption for organisational
marketing process transformation: the case of Microsoft. International Journal of
Electronic Customer Relationship Management, 12(3), pp.205-224.
Ibarra, H. and Rattan, A., 2018. Microsoft: instilling a growth mindset. London Business School
Review, 29(3), pp.50-53.
Kamodi, T. and Garegae, K., 2019. Teachers’ Perceptions on Use of Microsoft Excel in Teaching
and Learning of Selected Concepts in Junior Secondary School Mathematics Syllabus in
Bostwana. Lonaka Journal of Learning and Teaching, 10(1), pp.67-81.
Maiorescu-Murphy, R.D., 2020. Online Diversity Communication at Microsoft. In Corporate
Diversity Communication Strategy (pp. 103-119). Palgrave Macmillan, Cham.
Alam, M., 2020. Organisational processes and COVID-19 pandemic: implications for job
design. Journal of Accounting & Organizational Change.
Tony-Okeme, A.F., 2021. Microsoft Office Application Competencies Possessed by Office
Technology and Management Students for Employability and Self-Reliance(Doctoral
dissertation, Kwara State University (Nigeria)).
Saeed, S., Shaikh, A. and Naqvi, S.M.R., 2018. Assurance due to the Usage of Two ERP
Methods: Microsoft Dynamics AX and SAP. Mehran University Research Journal of
Engineering and Technology, 37(2), pp.337-350.
Sheppard, R., 2020. Social work theory and methods: The essentials. Aotearoa New Zealand
Social Work, 32(1), pp.96-98.
Kemppainen, R.P. and Holden, N.J., 2020. Intertwining the individual and organisational
experience: asymmetries of cross-cultural knowledge sharing, networking and
learning. European journal of international management, 14(1), pp.92-117.
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