microsoft organizational structure, Slides of Organization Theory and Design

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MICROSOFT

ORGANIZATIONAL

STRUCTURE CHANGE

Seda Guler

COMPANY OVERVIEW

THE VISION, MISSION AND CORE COMPETENCES oFounded by Bill Gates and Paul Allen in 1975, headquartered in Redmond, US, Microsoft Corporation establishes licenses, and supports software, services, devices, and solutions worldwide and their core competency is to that help people and companies to be more efficient and productive in their work. oMicrosoft’s corporate mission is “ to empower every person and every organization on the planet to achieve more .” (Microsoft, 2019). This statement focuses on the importance of empowerment of people and organizations. Utilizing the Microsoft products help people and organizations to be empowered. This statement shows us that their target market is all people and organziations worldwide that enable them to achieve. oMicrosoft’s corporate vision is “ to help people and businesses throughout the world realize their full potential .” They believe that their products can help people and organizations grow more.

MICROSOFT`S CURRENT

ORGANIZATIONAL

STRUCTURE: DIVISIONAL

o (^) In June 2015, Microsoft changed their organizational structure to divisional structure. They wanted their organizational structure to align with their strategies. This structure is made up of two divisions of engineering groups and business functions. Engineering groups has 3 groups whereas business functions has 9 groups. o (^) Each of these divisions correspond to their products and services that creates a greater flexibility.

AGILE AND DECENTRALIZED

oMicrosoft Corporation’s organizational structure enables the business to grow and focus on customers and product development. oThey made a change in response to market dynamics and competition. This shows company`s responsiveness and makes sure the company has along term success. oThe divisional structure is more agile and can have a better performance on unstable atmospheres. Every manager in each division reports to the top management of a firm. (Legerer, 2019). oDivisional structure falls under a decentralized type of structure where each division acts like its own company while controlling its own resources. Each division has their own departments like marketing, sales, product development and manufacturing focusing on one unique product. oSince Microsoft has a diverse product line, divisional structure is more useful and helps the organization address consumer demand and keep up with the market changes.

IMPROVING COLLABORATION AND

PRODUCTIVITY

Digital transformation of Microsoft defines a major change in the corporation regarding the use of technology and information. Here are some of the trends and technologies that Microsoft has adapted.

1. Social Workflow : Crowdsourcing, mass collaboration, collaborative authoring tools, “no email” campaigns, external peer-to-peer communities, and unstructured processes are now mainstream. 2. Ubiquitous connectivity: Conversations flow across multiple devices, and real-time interaction is the norm. 3. Exponential content growth that often transcends organizational boundaries: Modern

4. Abundant, loosely connected, and sometimes free technology: Business units no longer exclusively source technology through IT, and they often use free third-party solutions outside the organization’s control. Device use expands to include visualization platforms and wearables. Most are no longer controlled through domain based architecture. An employee’s identity is the new boundary. 5. New ways of collecting, processing, and storing data: Artificial intelligence, machine learning, and bots are becoming mainstream. They give their employees an aggregated view of content. Natural language systems, smart advisors, digital dexterity, augmented reality, and human augmentation are on the horizon (Microsoft, 2016).

ORGANIZATIONAL DESIGN

INTERDEPARTMENTAL

COLLABORATION

oAt Microsoft, departments are using such tools like Microsoft Teams for collaboration. It encourages teamwork while providing apps, communication tools, and shared spaces. It is used a hub to meet, message, call and communicate through variety of tools such as video, chat, voice messaging. There are several ways that teams collaborate within the company. Everybody can stay informed on product and feature changes on these platforms. oCollaborating as teams help them generate more ideas and always feel connected which improves collaborative work and productivity. oThey even move away from the formality of e-mailing system, and promote chatting more in order to communicate faster and collaborate efficiently.

MY RECOMMENDATIONS

Microsoft should always focus on innovation, collaboration of teams, empowerment of people and organizations for continuous sustainable growth. Their creativity should continue to come from collaboration which is depended on their organizational structure. It is important that the current organizational structure is well communicated among everyone in the company. The company should always have a growth mindset on innovation and learn from previous challenges and competitors to do better. At last, they need more gender diversification within the company. They are one of the five top technology companies that employs less than 30% of female employees. After obtaining LinkedIn, Microsoft had a small increase of 26.6% by 2018, but this percentage needs to increase more (Stolzoff,2019).