Organizational Behavior of Microsoft - Essay Example

Microsoft Section Microsoft – Table of Contents Overview Mission Vision Values Business Strategies Representation: Building a Pipeline of Future Leaders Innovation: Driving Market Excellence Responsibility Financial Integrity and Transparency Use and Protection of Assets and Information Technology Fiscal Responsibility Use of Software Confidentiality of Information Responsibility Globally Honesty Respect Leadership Training and development Communication Teamwork Recognition Awards and Recognition (2000-2010) Established in 1975 by Bill Gates and Paul Allen, Microsoft Corporation rapidly has made its place as a global information technology (IT) leaders and is an inspiration for many, and not just for people in this field, but also an awe-revering unit for those who wish to study organizational behaviour and structure as sound as this. Many studies have been done in this regard, and since the start, Microsoft has been one of the corporations to maintain a sound organizational structure. This is the purpose of this study, which explores how Microsoft has struggled to continually improve not just its products and IT software, but has also come up as an exemplary organization in terms of structure, leadership, administration and management. Today, Microsoft offers a very wide range of products, which facilitate people all over the world, of all ages and abilities. Some of there are: Windows, Office, Servers, Developer Tools, Games and X-Box, MSN Services, Accessibility Software and Business Solutions (Hildebrand, 2002). MISSION Any organization that aims to reach a sky-high goal comes with a grandeur mission. Microsoft, like all other successful organizations of this world came about with a mission to practically transforming the ambitions into experiences that could altogether turn the software world around. This is the mission that Microsoft set out at – combining the already-spreading power of the Internet with magic that software is able to cast upon around the world (Abrahams, 2007). Microsoft started and still works with the mission of making things possible by fully realizing the potential of human capital and businesses. One of Microsoft’s missions includes availability of facilities for all – children and adults as well as the disabled, to cater to everyone alike regardless of age-group or ability. The commitment to this goal enabled Microsoft to also develop innovative accessibility software, which have made their way, and proved valuable, into educational institutions, homes and offices. The accessibility innovation reassured Microsoft’s potential as a technology leader while it enabled (and in some cases, forced) everyone to step into the technological world by using the products while hearing, seeing and using a PC that they can use with ease and safety (Microsoft, Accessibility at Microsoft, Home, 2010). VISION Microsoft as we see today did not come without a sound vision to realize its goal of shooting the stars, while taking the world along with itself. It came with a clearly formed vision – making things possible for everyone. This has been the vision of Microsoft since its initiation, and it still continues to be so. Microsoft is an amazing blend of “diversity and inclusion” which is the one of the major reason why it still flourishes. It believes in collaborating ideas, cultures and brilliant perspectives from all over the world into an organizational asset in order to ensure more creativity, innovation and accessibility. Hence the vision of Microsoft Corporation is: “To be led by a globally diverse workforce that consistently delivers outstanding business results, understands the various cultural demands of a global marketplace, is passionate about technology and the promise it holds to tap human potential, and thrives in a corporate culture where inclusive behaviors are valued” (Microsoft, A Vision and Strategy for the Future, 2010). Microsoft therefore not only believes in concentrating growth in a certain part of the world or among specific minds, rather its support to diversity in backgrounds, creativity, leveraging the intellectual power and the ability to harness the real talent is behind the accelerated growth that Microsoft has experienced over the years.  VALUES No company can ever work and flourish without having a defined set of values in the organizational structure. It may take one a second to guess whether a company as great as Microsoft Corporation works upon this rule or not. The way values are credited at Microsoft are like none other – both as a company and as individuals. Ethics and ideals such as integrity, personal excellence, mutual respect, openness, honesty and personal excellence are highly esteemed. While there is room for encouragement, excellence and progress, the essential and encouraging values of a constructive self-criticism and a continuous process of self-improvement are not ignored. To fulfill its mission of making technology possible for and accessible to everyone, Microsoft takes big challenges and risks, and takes the pride of coming up to all. Microsoft takes it to itself to fulfill its commitments and providing beyond excellent results. This way, it ensures accountability to its customers, partners, employees and shareholders, providing them with the best results at highest quality. It has therefore maintained itself as a transparent and entirely trustworthy organization, retaining its role as the provider of best quality technological products. Therefore, the values employed by Microsoft are reflected in their behaviours, performance and its relations with customers, employees and the stakeholders. The great values commonly shared by Microsoft employees and personnel are: Integrity and honesty, openness and refpect for each other while maintaining the dedication to work to the best of their ability, a passion for its customers and partners and a genuine dedication to technology, capacity and willingness to take challenges, being self-critical, self-improving and committed to approach excellence and ensuring a transparent organization, able to accomplish all commitments with quality results. Microsoft believes in actually doing things the right way, rather than merely intending to do so. This involves making such business decisions which require ethical and legal considerations. Microsoft takes a lead in appropriating such decisions and actions, and takes up individual and collective responsibilities as a means to fulfill its basic mission. Microsoft’s Standards of Business Conduct is an extension of Microsoft’s Values. The law and regulatory acts include: Regulatory Compliance, Lobbying, Political Activities and Contributions, Anti-Corruption acts, Anti-Boycott Requirements, Trade Controls and Fair Competition. The trust of customers, partners, stakeholders and consumers is built through a responsible leadership, a high product and service quality, accurate, timely and fair communication and fair information practices. Financial transparency is met through financial integrity, protection of assets, realization of fiscal responsibility, better purchasing decisions and practices and much more. Lastly, caring for the environment and community globally, Microsoft ensures to maintain and practice openness, honesty, respect, diversity, equal employment opportunity, safety and health as well as citizenship and community service and respect for the environment (Microsoft, 2010). BUSINESS STRATEGIES Business strategies of an organization as globally successful as Microsoft are an inspiration for many. The various strategies that Microsoft works upon are: Representation: Building a Pipeline of Future Leaders Microsoft believes in diversity of ideas and perceptions and fulfilling its mission of making things possible. These may come from any culture or part of the world, entirely based on merit, regardless of race or colour. Hence it builds upon its team by recruiting the world’s most brilliant minds. Microsoft maintains relationships with graduate/post-graduate schools and other professional organizations and stays aboard for recruiting the most professional and competent people. Technology enthusiastic students till grade 12 are guided through information sessions and workshops to interact with the technological world and pursuing studies and career in this area. Innovation: Driving Market Excellence Microsoft believes in producing the best quality software through a combination of the absolutely competent workforce into its production, which gives an amazing blend of diversity and preciseness, ultimately reflecting the diversity of perceptions and ideas and exactly suiting the needs of customers. Microsoft is intent upon driving excellence through a sound, visionary and competent leadership, highly educated, trained and certified leadership and organizational values which have helped it establish its strong trust over its consumers, customers, partners and stakeholders. “In fiscal year 2009, Microsoft spent more than US $1 billion dollars working with over 1,255 suppliers that are woman-owned, minority-owned, and veteran-ownedbusinesses. This spend has increased by more than 250% in the last few years” (Microsoft, A Vision and Strategy for the Future, 2010). While having partnerships, Microsoft does not let go of its foremost mission of making things possible and the element of diversity. It maintains its relationships purely on ethical and legal terms, while coming up to its customers’, stakeholders’ and consumers’ expectations. With a multitude of products that Microsoft produces, it is more heavily intent upon investing in accessibility and security software to provide its consumers with a far more reliable, safe and easy to use applications, by maintaining this trust. Most successful companies who have had partnerships with Microsoft all agree to that Microsoft gives the benefit of leveraged co-marketing and branding, opens up to newer and more diverse business opportunities, grants, awards and recognition in the industry and a more trusted and comprehensive guidance in technology in the form of technological support, certification and technical training and workshops after the merger (Ted Dinsmore, 2005). After applying considerable economies of scale, Microsoft was able gain a monopoly in Application Programming Interface (API) and various Operating Systems (OS), which were sold through licensing. Former to the introduction of by Microsoft, the application vendors needed to ship their computers with the windows installed. Microsoft thrashed this barrier to entry by introducing the software which could easily be installed through a Compact Disk or portable media anywhere in the world (Fisher, May, 2000). RESPONSIBILITY Microsoft personnel and employees are all deeply responsible and accountable for properly understanding, applying and following the Microsoft Standards of Business Conduct, which include complying with the laws and regulations, ethics and values and the various related Microsoft policies. The employees are trained to: Understand and follow the Standards of Business Conduct by reading them, and going through all the Microsoft policies that relate to their position in the company. Undergo a special recruitment process, followed by educational and training programs that relate to the specific job. While working at Microsoft, the regular updates, workshops and training programs help the employees stay up to date and improve efficiency. Apply the Standards of Business Conduct, the related policies, rules, laws and regulations and also reporting any violations. Obtain proper and appropriate guidance on various business practices and at any point of confusion in uncertain situations. Cooperate in teamwork and any on-going investigation. Hold and maintain a firm, honest commitment to conduct day-to-day affairs of Microsoft business with its customers and stakeholders while remaining in the law bracket that is, following all the related laws and regulations. Financial management is one of the foremost aspects of a company’s administration. The financial dealings of Microsoft are huge, and thus there is a greater responsibility in financial matters. Microsoft administration holds itself highly responsible to ensure an accurate use, protection and management of the assets and trust that its customers and stakeholders have on Microsoft. Following aspects are taken care of: Financial Integrity and Transparency Microsoft, while firmly working to ensure transparency in the company, deems it important to record and report business statistics, updates and information to its stakeholders with complete honesty and accuracy. While doing this, the local state and federal laws are taken care of, and the financial transactions are carried out in an entirely proper manner. Not only the employees, but also the top personnel like CEO, CFO and other finance workforce are thorough professionals and are required to read, understand and follow the Microsoft Finance Code of Professional Conduct. Use and Protection of Assets and Information Technology It is important for a company to use all its big or small and physical or human assets wisely and to the most optimum level possible. The assets of Microsoft are used exclusively for business purposes and in the best possible manner. These assets include physical and intellectual property, equipment, supplies etc. Microsoft uses its workers’ potentials in the most optimal manner and conducts itself while complying with ethical, lawful and professional mannerism. To ensure transparency, authorization controls are applied while giving access to company’s information technology contents. The company holds responsibility to ensure that no such material is created, stored, accessed or solicited which is abusive, offensive or harassing. Care is also taken not to make any false or misleading communication. Similar care is also maintained in making purchase decisions. All these transactions are carried out in compliance with the related law, rules and regulations by the local state or federation. Fiscal Responsibility While caring for the financial responsibilities, Microsoft employs diligent and intelligent people for this task, who exercise a good command over the decisions to use and spend the funds provided to them in a liable mode. Use of Software Special care is taken to use copyrighted software and they are used in accordance with their licenses and terms of use provided by the authorizer. Microsoft is strictly against pirated material of the original copyrighted products, and is adamant to this policy while conducting its day to day affairs and use of such software in daily transactions. Confidentiality of Information As a transparent corporation, Microsoft considers it an important responsibility on itself to protect the non-public information as strictly confidential and use it only in accordance with its business requirements. Such information is not leaked out to unconcerned personnel even within the company and is not used for any personal advantages. This confidentiality is maintained even after the information has been used for business and while the importance of that information no longer holds. Microsoft, while sticking to this policy strictly, has managed to maintain its confidence of its customers and stakeholders in this regard. The insider information while trading of securities, dealing with its customers, partners, stakeholders and vendors, Microsoft often comes across material that cannot be made public. The only people who have access to such information are the insiders and know it only on need basis. Microsoft takes this responsibility of maintaining the confidentiality of such information, and limits it to those insiders only. Microsoft Legal and Corporate Affairs is the code of conduct that is followed intently for this purpose (Microsoft, 2010). Responsibility Globally Microsoft holds itself as an important contributor to the global community and considers it a responsibility in this important arena. By providing a strong citizenship and a sound community service, it works to improve the society and communities where it operates and serves, while working on its mission of making things possible for everyone. It contributes regularly to the various humanitarian, educational and cultural causes in the form of voluntary provision of services in its arena – software, technical assistance as well as cash at some instances. Furthermore, for the protection of natural resources, saving them from depletion and respecting the environment are some of the key concerns while running a major technology-provider company of the world. It complies with all the international laws, regulations and policies relating to environment conservation and puts in sincere efforts to this cause by creating awareness among its personnel, employees, customers, stakeholders and worldwide. HONESTY One of the core ethical values and basis of establishing and successfully running a world leader organization is to maintain honesty in its conduct, day to day transactions, partnerships and stock proceedings. Not only in conduct, but honestly reported information is also central to success and relationship with other companies or individuals. Microsoft has always maintained this vital ethical aspect with full openness and respectful sharing of thoughts, perceptions and ideas. This not only ensures transparency, but also brings about an immense progress, respect and an overwhelming output from all over the world. In any fraudulent cases or mishaps, the inquiries are directed with complete honesty, truthfulness and the results and decisions are entirely merit-based. The ethical and legal code is followed with full support and cooperation from the Microsoft organization. In this, Microsoft Legal and Corporate Affairs department works soundly to ensure proper working (Microsoft, 2010). RESPECT   One of the most important determinants of the competence of an organization is adherence to the ethical and legal values, one of which is respect for humanity, ideas, differing and diverse origins and perceptions and for one another at the workplace. Microsoft has maintained a favourable and appreciable work environment, but inculcating this essential aspect in its workforce – from top to bottom. LEADERSHIP Microsoft Corporation has maintained a responsible leadership to conduct the business affairs in a more responsible manner. This has helped to sustain a confidence, trust and a level of trust among its customers, stakeholders, partners and vendors. Adhering to the values such as honesty, integrity, transparency, merit and respect have added to this phenomenon and helped Microsoft develop as a responsive, transparent and accountable organization. All these factors together have helped it become a world leader in its field, opening up further arenas for development. All this has hailed from a sound and competent leadership, who works with a proper vision and strategy as to what would be the best possible steps, practices and business decisions that would help Microsoft maintain itself as a world leading organization in information technology, following its mission and to continue flourishing at an increasing pace. Right from the start, Microsoft prohibits corruption of governmental bodies, bribery or working at a non-merit basis. For this purpose, it follows United States Foreign Corrupt Practices Act and reports violations if any. Further, it promotes fair competition and application of ethical laws and regulations with all its clients.   TRAINING AND DEVELOPMENT   In order to create a sound organizational system, Microsoft is intent upon competent, effective and a rigorous training of its employees and regularly holds information sessions, workshops and specialized training programs and courses for their further development. This gives the employees an ability to come to the terms and an appropriation to the industrial trend and while they work at Microsoft, to stay aboard all the latest developments going on in the world. The personnel are trained to adhere to the various professional, managerial, financial, ethical and legal Codes of Conduct and policies at Microsoft and any violation is dealt honestly and transparently, and in accordance with the local state or federation or company’s policies. Over the years, these practices have helped Microsoft build a repute in the industry and maintain a confidence of its transparency and sound working. COMMUNICATION Microsoft follows a transparent disclosure of required reports and documents to the Securities and Exchange Commission as well as in public communications. This communication is timely, comprehensive, accurate, just and understandable. Hence through these values, it has established itself among its stakeholders, customers and partners as an honest, open and trustworthy organization. It has also helped Microsoft establish itself as an accountable and transparent company. The products, sales, marketing and transactions of Microsoft all reflect this strict adherence to ethical and legal considerations. Communication is an absolutely essential ingredient in dealing with partners as well as while being in competition. Microsoft fulfills its obligation of keeping a sound development pace by staying up to date through the information about its competitors. However, all this information is acquired through legal and ethical methods without violating any laws or acts. While dealing with information, it is imperative to adhere to fair information practices. Hence, any information that is non-public must remain confidential, the property of its holder and not be communicated publicly. Microsoft has ensured proper administration and protection of such information, adopted privacy safety measures and come up to fulfill this commitment. It is intent upon educating and creating awareness in its employees, customers, partners and stakeholders that respect for privacy is downright important. TEAMWORK   A proper strategy based team work comes down from an effective and sound leadership. After ensuring a proper leadership, the next step is formulation of a team that is able to work cohesively and gearing up the individuals to have a strong synergy. Microsoft boasts both an efficient leadership followed by a superbly intelligent and hard working team, which knows how to work at their best in conjunction with one another. The combination of a vision, mission, values, ethics and a proficient leadership all put forward a diligent team, which is capable of producing the results as the world sees it – in the form a global technology leader! Microsoft is intent upon recruiting the best minds from all over the world and after that, educating and training them with the ideals and values of an organization such as Microsoft. It has therefore managed to maintain an organized team throughout. RECOGNITION Microsoft is recognized as an internationally top ranked brand. It is also among the first five United States’ brands in application outsourcing, while others being IBM, Oracle, Accenture and HP-EDS (IDC, 2009). While partnering with Microsoft, many small, medium and big entrepreneurs get recognition in the industry, for example Sitecore, who won Partner of the Year in 2003 to 2004, and acquired various certifications (Sitecore, 2010). In addition to this, Microsoft has acquired following awards and recognition of its sound organizational structure from 2000 to 2010 (Microsoft, 2010): 2010 Microsoft was places at Number 1 on the “Great Place to Work list” by the Great Place to Work Institute at Microsoft Portugal, Number 2 on the “Great Place to Work list”, Great Place to Work Institute in Microsoft Norway and Number 3 on the Great Place to Work list, Great Place to Work Institute, Microsoft Sweden. It was acknowledged as the top Supporter of HBCU Engineering Schools, US Black Engineer & IT magazine. Greater Los Angeles African American Chamber of Commerce (GLAAACC) awarded it “Corporation of the Year” Award. Microsoft was deemed as the “Best Employer for Females” by Hewitt Associates, Microsoft Austria and considered to be the “Best Workplace” in Russia’s HR Brand, Microsoft Russia. It was signified as “Best Place to Work” at Great Place to Work Institute in Microsoft Ireland (1st place) while Japan took the 4th place and Germany the 3rd. 2009 In a 2009 “Best of the Best” Annual Review Series, Microsoft was included in the review by Olive Tree Publishing, Inc., publishers of Black EOE Journal. It was awarded the “2009 Corporate Citizenship of the Year Award” in North Carolina Technology Association (NCTA), Microsoft North Carolina. In 2009 also, Microsoft was placed at Number 1 on “Great Place to Work Institute Sweden”, Microsoft AB in a third consecutive year. 2008 It was placed at Number 1 on “Best Companies to Work For” in an Indian Survey published at BT-Mercer-TNS. Continuing its tradition of staying at the top, it was ranked at the first place in U.S. Chamber Business Civic Leadership Centers "Report on the State of Corporate Community Investment". Microsoft was deemed as the “Corporation of the Year” at Greater Los Angeles African American Chamber of Commerce. 2007 Microsoft was Number 9 among the top fifty companies, having the best reputation for employing and accommodating the disabled and at Number 1 in the Best Companies to Work For, MojPosao in Microsoft Croatia. Mictosoft was among the hundred Best Corporate Citizens in 2007, as surveyed by The Corporate Responsibility Officer and Business Ethics magazine. 2006 Microsoft acquired Number 1 position in the 10 Best Places to Work for in Sweden, 2006, by Great Places to Work Institute at Sweden. It acquired the "Distinguished" award from Society for Technical Communications (STC) in the region for its effective online training 2005 Large Employer of the Year award by the Governors Committee on Disability Issues and Employment On the DiversityBusiness.com Div50, a list of Top Corporations for Multicultural Business Opportunities as voted by more than 500,000 diversity business owners Number 2 on the NSBE (National Society of Black Engineers) Top 50 Employers list for 2005 2004 Microsoft MSN United Kingdom acquired “Opportunity Now Diversity Award”. Microsoft’s branches were among the hundred best workplaces in the European Union in this year: these included Microsoft Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, and United Kingdom (in arranged order). Its subsidiaries were among the best companies to work for list in Latin America in 2004: Microsoft Argentina, Brazil, Chile, Mexico, Peru, and Uruguay 2003 Business Ethics deemed Microsoft among the 100 Best Corporate Citizens. It was included in the top 50 Corporations for Multicultural Business Opportunities in a survey by DiversityBusiness.com. It was also awarded the “IT Works Ability Award” in the Accommodation Award Winner. 2002 Dallas Mayors Committee on the Employment of People with Disabilities awarded Microsoft the “Jack Evans Leadership Award” and “Best Practices Large Company Award”. It was awarded a “Corporate Leadership Award” from the 100 Black Men Silicon Valley. Microsoft’s leadership was acknowledged by the National Hispanic Leadership Institute and given a “Leadership award”. 2001 Microsoft was awarded the “Corporate Vision” Award from the LA Gay and Lesbian Center. U.S. Department of Commerce awarded Microsoft the “Distinguished Corporate Award for Disability Technology”. 2000 Microsoft was considered as a Disability Rights Advocates (DRA) and given the "Eagle" Award. It also acquired the Ron Mace "Designing for the 21st Century" Award (disability). It was given “Universal Design Award” in its recognition of Twelve years of Accessible Products and Technologies. Bibliography Abrahams, J. (2007). 101 Mission Statements from Top Companies: Plus Guidelines for Writing Your Own Mission Statement. Berkeley, CA: Ten Speed Press. Fisher, F. M. (May, 2000). The IBM and Microsoft Cases: Whats the Difference? The American Economic Review, Vol. 90, No. 2, Papers and Proceedings of the One Hundred Twelfth Annual Meeting of the American Association , 180-183. Hildebrand, C. B. (2002). WindowsMedia - The Role of Microsoft Corporation in the Current Multimedia Industry. Grin: Auflage. IDC. (2009, April). Brand Recognition: U.S. Companies Rank IBM, Microsoft, Oracle, HP-EDS, and Accenture as Top 5 Vendors for Application Outsourcing. Microsoft. (2010). A Vision and Strategy for the Future. Retrieved 09 22, 2010, from Global Diversity and Inclusion: http://www.microsoft.com/about/diversity/en/us/vision.aspx Microsoft. (2010). Accessibility at Microsoft, Home. Retrieved 09 22, 2010, from Microsoft: http://www.microsoft.com/enable/ Microsoft. (2010). Awards and Recognition. Retrieved 9 23, 2010, from Microsoft, Inc.: http://www.microsoft.com/about/diversity/en/us/programs/awards.aspx Microsoft. (2010). Legal and Corporate Affairs. Retrieved 09 22, 2010, from Microsoft, Inc.: http://www.microsoft.com/about/legal/en/us/Default.aspx Microsoft. (2010). Microsoft Standards of Business Conduct. Retrieved 09 23, 2010, from Microsoft, Inc.: http://www.microsoft.com/about/legal/en/us/Compliance/Buscond/Default.aspx Sitecore. (2010). Recognition. Retrieved 23 9, 2010, from Sitecore - Compelling Web Experiences: http://www.sitecore.net/en/Company/Recognition.aspx Ted Dinsmore, E. O. (2005). Partnering with Microsoft: How to Make Money in Trusted Partnership with the Global Software Powerhouse. San Francisco, CA: Oengus Press. Read More