Analysing The Business Culture of Microsoft Essay

“ Culture impacts most facets of organizational life, such as how determinations are made, who makes them, how wagess are distributed, who is promoted, how people are treated, how the administration responds to its environment, and so on ”

Microsoft Windows and Microsoft Office are at present installed on over 90 per centum of every computing machine globally. In appraisal this is merely under a billion computing machines. Recently Microsoft had to pay an antimonopoly mulct of four hundred and ninety seven million Euro due to holding a “ monopoly ” on the market.

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Microsoft has been merchandising stocks since 1986. Microsoft is presently the 3rd highest stock market capitalisation in the USA with $ 270,000,000,000. This means they are easy valued over their rivals Google, IBM and Apple.

This analysis will research the cultural facets of Microsoft ; the motive on employees, the organisational construction, market that Microsoft is presently in, the managerial behavior and effectivity of Microsoft and the cultural environment of Microsoft.

The industry sector which Microsoft is in is a really competitory, unstable, fast traveling industry that requires changeless regeneration of new and advanced merchandises in order for a company to keep success.

Microsoft profited $ 12.6 billion ( ?7.5 billion ) last twelvemonth on 71,000 employees in 85 states. Of these, merely 32 % are female, this is an earning of $ 177,450 ( ?106,378 ) per employee.

In footings of direction theories, there are a batch of similarities to be seen with each of the four chief classs and the civilization of how Microsoft is operated, for illustration, the classical attack. In this attack there are a figure of cardinal constructs that would be really of import in the twenty-four hours to twenty-four hours runnings of Microsoft.

The classical attack puts accent on:

the formal construction of the concern,

a hierarchical construction in relation to direction

Common rules of organisation.

Classical authors such as Fayol were discerning with bettering the administration with a agencies of turning efficiency. His chief cardinal theories were on planning, forming, bid, co-ordination and control. These theories are still really relevant to Microsoft today because the manner that the company operates is in a controlled, hierarchal construction. Although with such classical authors as Fayol there is an issue that they have non taken into history personality factors and for exemplifying an organisational construction, in which people can exert merely limited control due to a rigorous government, nevertheless this is non the instance with Microsoft, they besides pay attending to societal factors at work.

Peter Drucker was a author that wrote about doing work hardworking and employees attain, pull offing societal impacts and duties and carry throughing the elaborate intent and responsibility of the organisation. Drucker was really focussed on people ; one of his most celebrated quotation marks is “ Company civilizations are like state civilizations. Never try to alter one. Try, alternatively, to work with what you ‘ve got. ” This gives people a really good thought of the sort of individual Drucker was and how he felt about direction of a concern. Drucker ‘s cardinal constructs match that of Microsoft ‘s because both are designed to acquire people involved with each other in order to bring forth the best possible result for the company.

Motivation is a large portion of every concern, particularly such a professional concern as Microsoft, they use certain motivational techniques as groups and squads and extrinsic ( touchable wagess ) and intrinsic ( psychological wagess. ) There are assorted authors that talk about Motivation ; some are FW Taylor, Maslow and Herzberg.

Taylor stated that money was the most of import thing used in actuating people. He studied different workers transporting out undertakings, known now as his “ clip and gesture surveies. ” He concentrated on the production procedure to do it more efficient by utilizing “ specialist equipment and breakage occupations down into really simple undertakings. ”

He came up with a set process for employees which they had to follow, to maximize efficiency. He designed “ piece rate ” ( paid people per point made ) to promote people to bring forth more. Microsoft do non work under certain rules that Taylor studied because although the chief facet of every concern is to do money, Microsoft are more directed at prolonging market leading and besides doing certain that the employees are motivated through other things instead than money. Another motivational author was Maslow ; Maslow created a Hierarchy of demands. He assumed it showed what people wanted from their occupation. He presumed all employees would work upwards from the underside to the top.

Self realization

Esteem needs

Social demands

Safety needs

Physical demands

– Self realization – Fulfillment – larning new accomplishments, challenges etc.

– Esteem – acknowledgment of accomplishments.

– Social – Friendship, contact – communicating.

– Safety – Job security and safety.

– Physical – Ability to pay for nutrient and shelter with wage.

The cardinal job with Maslow ‘s theory is that assorted people have assorted demands and non everyone will suit into the same form. Microsoft dressed ore on the top two elements of Maslow ‘s hierarchy of demands trigons, they are continually seeking to acquire workers to larn new accomplishments through occupation rotary motion and besides they believe that acknowledgment of accomplishments is of import, for illustration at the Microsoft Worldwide Partner Conference 2009, Microsoft Corp honoured an elect group of Microsoft Dynamics spouses for their committedness to clients and success in widening the Microsoft Dynamics platform to drive concern advantages in companies worldwide.

Herzberg research was based on a study to look into what people liked and disliked about their occupations. The consequences were put into classs ; shown below:


Hygiene factors


Company policy

Recognition of accomplishment


Meaningful and interesting work



Interpersonal dealingss


Working conditions

Surveies on a regular basis happens in Microsoft offices harmonizing to cyberspace beginnings, at least one time a twelvemonth the staff fill out a signifier about how they feel about the company, if they have any issues they would wish to raise.

The Final civilization component that will be discussed in this analysis is the cultural environment, since Microsoft has 71,000 employees in 85 states ; this shows that because they are still majorly successful that they have overcome the acceptance of a cross-cultural attack to the organisational behavior of a concern.

In decision, throughout its history, Microsoft has earned a repute for doggedness when come ining markets created, and ab initio dominated, by advanced start-ups. Rivals and perceivers ridiculed when Microsoft put out a first basic merchandise that did n’t come near to fiting the market leaders. Microsoft has a history of pig-headedly remaining the class, polishing its wares, puting in development, until bit by bit the merchandises become strong plenty to force out the competition. With this, it ‘s clear to see that Microsoft has an effectual civilization and working environment when they can continually get the better of the competition.

Text Book Mentions:

Mullins, L. J. ( 2008 ) . Management and organizational behavior 8th edition. ( 1 )

Harrison, R. a. ( 1992 ) . Diagnosing Organizational Culture. ( 2 )

Website Mentions:

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