Organizational structure plays an important role in determining the success of a company and the case of Microsoft is not an exception. This paper assesses the appropriateness of the current organizational architecture of Microsoft…
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Under the able leadership of Bill Gates, Microsoft is following a divisional organizational structure in which different divisions of the company are managed by different people (See Appendix for more details). In other words, different divisions of Microsoft such as Sales, Production, Finance, Logistics, R & D etc are functioning as independent divisions. Moreover, Microsoft has different divisions for its operations in different regions. Different divisions in Microsoft are self-managed organizational entities with autonomy to take independent decisions for the betterment of the organization as a whole. It should be noted that software needs of the European people could be different from that of Asian people. Microsoft’s divisional organizational architecture helps the regional heads to implement business strategies suitable for each region. In other words, with the help of divisional organizational structure, Microsoft is able to cater the needs of diverse people all over the world. Gillikin (2011) pointed out that “Divisions work well because they allow a team to focus upon a single product or service, with a leadership structure that supports its major strategic objectives” (Gillikin, 2011). Divisional structure is helpful to reduce the workloads of the employees. Microsoft managers are getting freedom to focus fully on the operations of the divisions they manage. It is not necessary for them to both much about the operations in other departments.
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(Firm Structure: Microsoft Essay Example | Topics and Well Written Essays - 1000 Words)
“Firm Structure: Microsoft Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1457067-hierarchies-incentives-and-firm-structure.
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