April 8, 2012
Dr. John Opinski
Organization and planning are an essential asset for organization’s to attain the highest level of efficiency and achieve success. Microsoft is an organization with a structure composed of a chief executive officer (CEO), who is Steve Ballmer, a board of directors, executives, and senior and technical leaders. Microsoft has grown since it was founded in1975 and is currently a worldwide leader in services and software (Microsoft, 2009). Microsoft has an efficient and productive organizational structure. This paper will show a comparison to other organizations to demonstrate the importance of an ...view middle of the document...
“Organization structure is comprised of functions, relationships, responsibilities, authorities, and communications of individuals within each department" (Sexton, 1970, p. 23) and illustrated in an organizational chart. The organizational chart shows the functions and reporting order of the company. Two concepts of organizational structure are differentiation and integration (Bateman & Snell, 2009). Differentiation includes the people who perform different tasks and with integration the differentiated people are organized to attain a specific goal. Part of the differentiation is the Division of labor, who divide jobs into smaller tasks. The completion by an employee of a specific task is known as specialization. Some companies will divide organizational functions into divisional structure. The divisional structure contains the resources needed to function. An example is a software company that has a division for business software and a division for home software that provide support and development.
The largest software company in the world that offers services for business and home is Microsoft. The Microsoft Company also develops entertainment software such as music for Zune and video games for Xbox. Microsoft has many positions within the company from Software Engineering: User Experience to Business Services and Administration and has offices throughout the world (Microsoft, 2009). The main function of Microsoft is to develop software, so the largest department within the company is information technology comprised of specialized departments from support to development. Microsoft is comprised of many divisions within the company that include business software and home software and provide support and development. The human resources department’s function is to organize the employees based on qualifications of knowledge and experience. The function of the finance department is the cash flow from accounts payable, receivable, and payroll. The marketing department’s function is to provide informational websites and advertising. The efforts of the marketing department led Microsoft to be known all over the world. Microsoft is a successful and growing company because of the organizational functions of the departments.
According to Montalbano, “Microsoft reorganizes and makes sense for the largest software company, which was getting too big and unwieldy under its former structure, to continue to be managed efficiently” (Montalbano, para. 1). Most companies use a six-division structure, but Microsoft has changed to a three-division structure. The three divisions are in the service, product, and customer departments. According to Rob Enderle, “The restructuring will enable Microsoft...