Microsoft's Structure: Analysing Factors, Culture, Leadership Impact

This report provides a comprehensive analysis of Microsoft's organisational structure, highlighting the key factors that influence its environment, including size, technology, strategy, and process. It explores the characteristics of Microsoft's organisational structure, such as divisional, functional, and matrix structures, and illustrates the relationship between organisational culture, leadership, innovation, and the company's growth and evolution. The report examines how Microsoft's culture fosters accountability, quality, and a growth mindset, and how its leadership, exemplified by CEO Satya Nadella, shapes the company's strategic direction. Furthermore, it emphasizes the importance of innovation in maintaining Microsoft's competitive edge in the technology industry, with examples of investments in research and development. The conclusion underscores the critical role of organisational structure in the firm's operations and its impact on profitability and success.

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.

2. Weak Matrix- This is also known as Functional matrix. In this functional manager has
most of the hold and authority and also has charge of resources and people (Aslan, 2021). The
project manager has less part and also transfer it to the work through coordinating and
administrative tasks.
3. Balanced Matrix- The Project managers and Functional managers share all the
specialist and control over the workers and budget.
Illustrating the theory on the relationship between cultures of the organisation and their
growth and evolution. Giving example on the how Microsoft organisational culture is
shaped their growth and evolution
Microsoft corporation's organisational culture make sure that workers has flexibility and has
ability to see the business needs in the wide market for computer software and hardware
products. The organisation corporate culture depends to the behavioural, values and traditions
expectations from employees. The company uses all the information provided to facilitate the
customer satisfaction and innovation (Tamburri,Fahimi and et,al., 2020. Microsoft success is
completely dependent on the culture and the corresponding competence of the organisation's
human resources. Microsoft corporation has advantage from the organisational culture, which
incre4ses the human resource capability. This process is very important for the success of
software and hardware market.
FEATURES OF MICROSOFT ORGANISATIONAL CULTERAL ARE:
 Accountability- The corporate cultural can be defined as accountability culture. In this
every employee understands that every action has its own consequences in the context of
Microsoft. Example. The employees of the Microsoft company, the valuation of
accountability is based on Customer Partner Experience (CPE) criteria and relatable
response.
 Quality and Innovation- Microsoft company want to innovate to maintain its
affordability against the computer hardware and software firms. For example, Microsoft
heavily invested in the R&D efforts to improve product and new product development.
These types of innovation are always interlinked to company's organisational culture

through importance of innovation and quality standards of employees. This characteristic
facilitates Microsoft's strategies for competitive advantage.
 Growth Mindset- Growth is very important for all business. Microsoft use the corporate
values to grow its hardware and software business. For example, the firm trains the
employee to analyse the potential paths for the new organisational growth, like new ideas
and solutions. Employees are rewarded on based on their contributions.
Explain the theory on the relationship between the leadership of organisations and their
growth and evolution. Some examples from the case study to explain how Microsoft
leadership has shaped the growth and their evolution.
Leadership is the process and set of skills which is performed by an individual or set of
individuals which guide the workers of the organisation and his followers to perform in the
organisation. Leaders carry out some theories to perform their skills within the organisation
which influences firms growth.
 Trait Theory- This theory helps the firm to identify traits and potentials for example
empathy, good decision-making skills and honesty these all are helpful when leaders is
leading others. In trait theory states that, leader has same common personality
characteristics or traits.
 Behavioural Theories- this theory is based on how leaders behave. For example, the
leader dictate work and needs what should be done and expect that workers will
cooperate. It theory has three type.
1. Autocratic leader- decision made by only leaders. This style of
leadership is considered when decision needs to be quick.
2. Democratic leaders- the leader takes inputs from the team before making
decisions although this style of leadership can be difficult to manage.
3. Laissez-faire leaders- leaders om this style allow to make many decisions
by the employees. This style only works when team is highly motivated
has capability and experience and doesn’t need any supervision.
 Contingency Theory- This theory depicts that there is no one correct type of leader, in
style argues that on different situation different approach is required (Stverkova and
Pohludka, 2018). Example there will be two different theories for two different task like
quick decisions on task of full team or for one person.

 Transactional Theory- also known as power and influence theories of leadership. This
approach states that employees do any task within the organisation only for rewards and
there is no other reason. So, this style focuses on the designing structure of task and
reward. Although this leadership helps to develop highly motivated working
environment.
Satya Nadella the CEO pf Microsoft who served the company for five years. The leader of
Microsoft company follows “Growth mindset” and “empathy” to reinforce action. This is
positive leadership style. Microsoft is big company with huge workload. Leaders needs to
empathise with them in every situation whenever employees need support and growth is an
essential part of any company to survive in the market with the competitive rivalry.so, leaders
train every employee to identity potential growth of the company.
Illustrate the theory on the relationship between the innovation of the company and their growth
and evolution. Give examples only from the case study to explain how Microsoft
innovation has shaped its growth and evolution.
“INNOVATION” is the process which transforms ideas into new and improved products,
service, processes. In order to compete, advance and differentiate themselves in their
marketplace. According to Alan Altshuler and Robert D. Behn. Innovation is an process which
includes original invention and creative use and understanding of new thoughts, products,
services and processes.
Microsoft needs to maintain innovation as this company is based on technology and its
competition against other computer hardware and software. Innovation and quality are two very
important features united in company’s culture (Berkery, 2019). For example, Microsoft is
highly capitalised in research and development efforts for to improve firms product and new
product with high quality standards and innovations within them. Innovation is very important
characteristic for the company like Microsoft as this company is based on latest technology and
latest innovation which upgrades the company.

CONCLUSION
This project concludes that that how organisational structure of the company plays a crucial role
in working of the firm and it also focuses on the factors which are affecting the working
environment of the enterprise. The company’s factors like size, Technology, process and strategy
are briefly explained how they influences the environment of the company with various
characteristics of organisational structure and also shows the dynamic external environment
affecting the company like latest technology. With the various theories, the relationship between
leadership, culture of the company and innovation is shown which influences the growth and
evolution of the organisations. These theories shapes the growth and as well turns the firm into a
profitable firm.

REFERENCES
Books and Journals
Aslan, M., 2021. Organisational structure revisited. Business & Management Studies: An
International Journal, 9(1), pp.282-294.
Berkery, E., 2019, April. An organisational structure approach to gender differences in career
progression experiences in an academic setting. In Proceedings of the 2nd International
Conference on Gender Research ICGR (pp. 80-85).
Głod, W., 2019. Organisational structure, environment and management innovation. Global
Journal of Business, Economics and Management: Current Issues, 9(3), pp.134-142.
Nene, S.W. and Pillay, A.S., 2019. An investigation of the impact of organisational structure on
organisational performance. Financial Risk and Management Reviews, 5(1), pp.10-24.
Raziq, M.M., Ahmad, M., Iqbal, M.Z., Ikramullah, M. and David, M., 2020. Organisational
structure and project success: the mediating role of knowledge sharing. Journal of Information &
Knowledge Management, 19(02), p.2050007.
Stverkova, H. and Pohludka, M., 2018. Business organisational structures of global companies:
Use of the territorial model to ensure long-term growth. Social Sciences, 7(6), p.98.
Tamburri, D.A., Kazman, R. and Fahimi, H., 2020. Organisational structure patterns in agile
teams: An industrial empirical study. arXiv preprint arXiv:2004.07509.
Turi, J.A. and Sorooshian, S., 2019. The impact of organisational structure on organisational
learning. Middle East Journal of Management, 6(2), pp.204-232.