Organizational Structure and Dynamics of Microsoft: A Case Study

Organization Theory
Case Study

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of the factors that influence the organizational structure of Microsoft.........................3
Characteristics of the organisational structures of Microsoft .....................................................4
Ways through which Microsoft manages its dynamic processes in order to shape their growth
and success...................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Organisational structure is defined as a system that highlights various activities that are
directed towards achieving the goals and objectives of the company that includes the rules and
responsibilities of the employees and managers of the company. It also helps in determining the
flow and communication of the information at all the levels of the company. The organisational
structure of the company can be in the form of functional, divisional, flat and matrix. The present
case study is based on the Microsoft which is American multinational technology corporation
which deals in computer software, electronics, personal computers and related services.
Analysis of the factors that influence the organizational structure of Microsoft
The various factors that affect or influence the structure of Microsoft organization which
have to be understood by company are as follows:
 Market conditions and Industry forces: This is one of the factor that affect the
organizational structure of company. It is because the company follow all the rules,
regulations in order to maintain the industry standards. Further, the market condition such
as demand of customer as well as their taste is also a factor that influence the
organizational structure of Microsoft. For example, Microsoft organization follow
product type divisional structure where the company uses product or output as one of the
main criteria to group their personnel related resources. However, Microsoft company do
not consider regional market difference for the formation of its organisational structure.
But the company should consider this as this factor highly influence the Microsoft
organizational structure (Tripathi and Jha, 2018).
 Technology: This is another factor that influence the organisational structure of
Microsoft. It is because Microsoft is an informational technology company which is
highly get affected by the change in the technological innovation of business. Basically,
technology has vital role towards the success of Microsoft business so it is the prime duty
of company that they follow all the technological change and update their products based
on this change to achieve long-term success.
 Strategy: It is important for the organization to understand that strategy is one of the
main factor that influence the structure of organization. It means a change in company
strategy can cause organizational structure to change or shift as well (Li and et.al., 2019).