Management Structure of Microsoft, Apple and Coca Cola - Term Paper Example

Foundation Business Management Different companies have different types of management model and management structure. Matrix model, organic model, mechanistic model etc are some of the prominent management structure and models available in the world at present. Even the same company may adopt different management models if it functions in different countries. Management structure and model depends on the business climate and culture of the community in which the company operates. For example, it is difficult for Microsoft to manage their operations in America and China in the same manner because of the political, cultural, social and economical differences in America and China. This paper briefly analyses the management model, structure and culture in three different companies; Microsoft, Apple and Coca Cola and the impact of these management styles on the employees. Management model, structure and culture in Microsoft Microsoft does not need an introduction in the world because of its established monopoly in software industries and computer world. Founded in 1981, controlled by Bill Gates and his team, Microsoft has become one of the all time best companies in the world at present. Microsoft is not following any conventional models of management. In fact they don’t have even a president or CEO. Jung (2003) has mentioned that all the Microsoft operations are controlled by eight chief financial officers. The company's seven business units are: Client, which includes its Windows operating system; Information Worker, including Office business software applications; Server Platforms, for server software; Home and Entertainment, including Xbox video-game consoles and the Xbox Live online gaming service; MSN, its Internet service; Business Solutions, including software for small and medium sized businesses; and CE/Mobility, including software for wireless phones and mobile devices (Jung). Microsoft has divided its entire business portfolios into seven different categories and named a head for each category. The above strategy helped them to manage each areas of their business more effectively because of the different heads at the top of different units instead of a single head at the top of the organization. The unit heads need to concentrate only on their units and hence their workloads are comparatively less when we compare other organizations with a single CEO at the top. Employee-employer relations in Microsoft not seem to be in a good shape at present because of the recession problems. Salary reduction, termination of jobs, temporary layoffs etc are common nowadays in Microsoft because of the recession problems and cost cutting strategies. Even then the employees in Microsoft seem to be enjoying good relations with their management when we compare it with other companies. Management model, structure and culture in Apple According to Chronicle Staff Writer, Kim (2010), Apple Inc, was able to surpass even Microsoft and attained second spot in the list of most valuable companies in United States after Exxon Mobil, as far as market capitalization and is concerned. More over it became the most valued technology company in the world at present (Kim). Apple became the number one country in the world at present as far as the market capitalization is concerned. Apple earned this spot because of the hard work they put in the market. Unlike, Microsoft, Apple seems to believe in one man show. All their business strategies are revolving around a single person, their CEO, Steve Jobs (Qumer, p.4). In fact many people have concerns over Apple’s future when Steve decides to step down. It is impossible for an organization to formulate long term business strategies depending heavily on a single person. Apple never tried to promote a top or middle management team once Steve decides to quit. Apple maintained an organizational culture which was sometimes opaque to even its employees (Qumer, p.11). Apple never allowed its employees to disclose their corporate secrets to others. The employees of Apple don’t have the right to write anything about the company or its products either in printed or in electronic media. In other words, Apple’s business management model resembles more to a totalitarian or autocratic approach. Apple provides unique opportunities to their employees to work with experienced and talented people. In other words, Apple follows a work culture in which they were able to blend the fresh and the experienced in a judicious manner so that the company will never face any problems. The above strategy is a big success factor for improving the efficiency of the Apple workers. The fresh and new employees can take advantages of the immense experience and talents the experienced employees and more over they can polish their ideas and skills more in the company of the experienced people. Apple workforce includes diverse employees from different countries which enable them to utilize the expertise from different regions. At the same time, employees of Apple were forced to work in a challenging environment (Qumer, p.9). The company focuses more on giving ample challenging projects to the employees without a rest in between. The employees forced to work for 60-70 hours per week in Apple company. Apple has not much regard to family life and they always encourage a workaholic culture in their organization. Apple employees always have complaints about lack of leisure time for spending with the families and the friends. Management model, structure and culture in Coca Cola Coca Cola is the world’s largest non alcoholic soft drink and it requires no introduction in any of the countries in the world. Invented by Doctor John Pemberton in May, 1886, Coca Cola is currently operating in more than 200 countries with over 50,000 employees and more than 800 production and distribution centres and 300 worldwide bottling partners(The Coca-Cola Company: Growth, Leadership, Sustainability). Muhtar Kent is the CEO of Coca Cola company at present. For convenience the company has divided its operations into different departments; but the entire department heads need to report to a single person, the CEO. One of the major successful strategies of coke is their laissez-faire culture. Coke always tries to revitalize their employees every day. ‘Refresh everyone everyday’ is the slogan adopted in the coke’s management style. Coke always tries to adapt their business with the cultural needs of the community in which it operates. This is the major reason for Coke to establish its presence in more than 200 countries worldwide. Coke has used the merger and acquisition strategies effectively in different countries in order to reduce competition. For example, when they entered the Indian market they have realized that the soft drink called “Thumps Up” was more popular in India. Immediately they have acquired that company and currently it is working under the label of Coca Cola. “Coca-Cola, returned to India in 1993 after a gap of 16 years giving a new thumbs up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network” (Coca-Cola) At the same time there are certain complaints about the employee discrimination based on race at some of the Coke’s units. In April 1999, a class action lawsuit was filed against the Coca Cola Company by four current and former African-American employees for racial discrimination under the US Civil Rights Act.  The plaintiffs, on behalf of themselves and 2200 similarly situated African-American colleagues, alleged they had suffered discrimination in pay, promotions and performance evaluations.  They provided statistics showing that the median salary for African American employees was about one-third less than that of whites within the company (Case profile: Coca-Cola lawsuit) Coke’s disbelief in ensuring procedural justice is evident from the above details. Many cases of racial discrimination complaints were filed with the Equal Employment Opportunity Commission (EEO) against Coke by its black employees. At the same time the white employees had no such complaints. In other words, Coke follows a dual standard while managing their employees. Most of the black employees working in Coke have developed enormous job related stress because of the unfair treatment they received. In short, Coke failed drastically in implementing equality and justice in its workplace. Works Cited 1. Case Profile: Coca-Cola Lawsuit. 2010. 12 November 2010. 2. Coca-Cola, 12 November 2010. 3. Jung, Hellen. 2003. Microsoft Management Structure: Eight CFOs, No President. 12 November 2010. 4. Kim, Ryan. 2010. “Apple Passes Microsoft As Top Tech Company”. 12 November 2010. 5. Qumer SM, (2009), “Apple Inc’s Corporate Culture: The Good, The Bad and the Ugly”. ICMR Center for Management research, www. Icmrindia.org 6. “The Coca Cola Company: Growth, Leadership, Sustainability”. 2009. 12 November 2010. Read More