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Organizational Structure of Microsoft
Transcript of Organizational Structure of Microsoft
Juliana Barber As of 2010 Microsoft has a divisional organization. Each division, or product group focuses on a specific line of goods and services. Microsoft Staff 1978 http://www.theofficialboard.com/org-chart/microsoft Interactive organizational chart for Microsoft Disadvantages of Division Structure Advantages of Division Structure Each group has its own R&D, Sales, and Customer Service Staff. Customer Service Customer Service R&D Sales Customer Service R&D Sales R&D Sales Customer Service R&D Sales Customer Service R&D Sales Entertainment & Devices Microsoft Business Online Services Server Software Windows & Live Windows Steve Ballmer Similar to Product Structure
More customer focus
Reduce functional duplication
Easier cross-product coordination Some redundancy among groups
Can be expensive
Can create coordination difficulties between corporate and division objectives Two factors which help managers decide how to structure an organization:
1. External environment
2. Corporate strategy Original Structure Would you have invested? The original organizational structure of Microsoft was Functional.
The company started with only 11 positions and continued to expand over the years. Flat Structure Tall Structure Businesses usually start flat and gradually
expand to a tall organization. Why businesses move from flat to tall
Implementing and managing flat structures can be challenging
Narrow Span of Control
Greater Coordination Flat organizations function better
So why not stay flat?
Product/service gets complicated
Must have strong managers
Non routine tasks
Business starts to become more stable The name originated as Micro-Soft
3 original employees
First generated revenue was $16,000
Bill Gates wanted to create a "family" work environment
Five Factors to Success History of Microsoft's Structure
1974-1990 If you were Bill Gates what would you do?
1st Technical Writer
1st Employee Programmer
3 Additional Programmers
1991: E 8,226 REV $1,843,432,000 Expanded to Dubi-5 employees
1992: E 11,542 REV $2,758,725,000
1993: E 14,430 REV $3,752,701,000 3/23/93 Microsoft announced the availability of Microsoft Encarta, the first multimedia encyclopedia for a computer
1994: E 15,257 REV $4,648,981,000
1995: E 17,801 REV $5,940,000,000 20th Anniversary
1996: E 20,561 REV $8,671,000,000
1997: E 22,232 REV $11,360,000,000
1998: E 27,055 REV 14.48B
1999: E 31,575 REV $19.75B75B
2000: E 39,170 REV $9.42B
2001: E 48,030 REV $25.30B
2002: E 50,621 REV $28.37B
2003: E 54,468 REV $32.19B
2004: E 57,086 REV $36,84B Microsoft's History
Management Third Edition Michael A. Hitt, J. Stewart Black, Lyman W. Porter
http://www.businessinsider.com/microsoft-1978-photo-2011-1?op=1 Questions? 2008