Instructor: David Schuff, Section 003

Microsoft

Organizational Structure at Microsoft

Microsoft Organizational Structure

Microsoft’s organizational structure is classified as divisional. It’s broken down into two divisions: engineering and business. One advantage the arises from this is the elimination of bureaucracy in the business processes which grants more flexibility. This organizational restructuring took place in 2016 and resulted in the elimination of 7,400 jobs resulting in cost savings for Microsoft.  Another advantage is that the specific divisions can specialize in the tasks they perform resulting in greater levels of efficiency. By breaking apart the products into different independent and self-sustaining sections allows Microsoft to create great products and innovate using their core competencies. Product innovation is highly encouraged as well as the implementation of features that can help the end consumer. While Microsoft has not been creating groundbreaking innovation, they support systems that great majority of the world use every day. A disadvantage that comes with this new structure is that there is a greater separation between the technical and business employees. Additionally, because each division functions independently, they need a competent manager that understands the product or service offering for the division well.  What other advantages or disadvantages do you see from this structure? Is there anything Microsoft can do to improve?

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