Instructor: David Schuff, Section 003

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?

View the source here.

7 Responses to Organizational Structure at Microsoft

  • Interesting stuff Tym, if you happen to know when the organizational transformation started, I would love to talk about it. Such a structurally deep change in such a large company was probably a very extreme process, as we have seen in many cases. It’s interesting to see how much organizational structure can still impact that operations of a technology, especially of Microsoft’s size.

  • I find this to be a fairly major structural change within Microsoft, especially given its size and influence in the technology industry. From my knowledge of Microsoft, I know the company was undergoing some business challenges in 2015 and early 2016, so I view this as a response to overcome inefficiencies and lack of innovation within the company. Since this change is still relatively new, I’m interested to see what type of impact it will have on Microsoft’s efficiency and upcoming product launches over the next few years.

  • a ella le gusta porque esto ppp , siempre puesto pa darle placer

  • where do the sales teams sit? in BD?

  • Can anyone help me please

    Microsoft including the boards of directors do not answer emails and letters, yet they are in bereach of contract, who can I turn too please

    On 12th December 2018

    I was rang from a microsoft employee in Japan and told my sons account had child sexual abuse on it,

    Surrey police forensically checked it, it had no child sexual abuse, it is completely clean,

    I email microsoft everyday as they need to answer this and make right, also I don’t want his account to stay inactive,

    His GDPR came through so heavily doctored I am in the middle of a complaint with ICO

    Microsoft have now blocked my emails, how do I know, well I sent the same email from my son’s account, and got the standard reply, out office hours are, from my email address nothing. just proves how right I am, or they would answer a email and tell the truth, now emails arent getting through either

    I am so angry with the way they have treated my autistic/dyslexic child, he lost all his college work too and had to redo

    I really need help with this, this letter he wrote them may give you more idea

    Hi Microsoft support
    Before I carry on let me just tell you I’m autistic so I you can try and understand that this has affected me probably more that the standard person.
    I was just wondering my account has been suspended for the past 5 days and me and my mum have been back and forth through different people each saying they either don’t know why I’ve been banned or they’ve said I’ve violated the terms of service, and Ive looked on the terms of service and there is nothing Ive violated, bearing mind I brought fallout 76 on Wednesday and Ive been really distraught because I can’t play with my friends and this whole thing has made me sick like my sleep is more messed up than normal and plus I’ve had so many panic attacks because of it because my work for college is all on your services so I’m worried about not being able to hand it for when it’s due.
    So I use my Xbox as like my safe space to escape the hardships I face in real life.
    Sorry this is so long but I really appreciate it if you would respond to this message
    Thank you for taking the time to read this
    Billy Weston

    They never replied, all emails are inconsistent, I am so angry I wrote a book about this whole experience,
    “Microsoft are treating my autistic son so badly I wrote a book” available on amazon,

    my son has been traumatised, and my own health declining, please help us, and the other people microsoft have done this to , loads of other people,

    very soon I will find a lawyer to help me

    I begging you please open his account, and refund the subscriptions, and then we will talk about compensation which will no doubt increase the longer this goes on

    I wait with anticipation
    Thank you for reading

    Amanda Weston

  • Interesting article. The idea of siloing the Business and Engineering divisions looks outmoded. Any updates or case studies on how it is working for Microsoft?

Leave a Reply to Amanda Weston Cancel reply

Your email address will not be published. Required fields are marked *

Where and when do we meet?
Alter Hall 603
12:30-1:50 Tuesdays and Thursdays
Office Hours
Tuesdays and Thursdays, 2:00-3:00 PM