Analyzing and presenting Microsoft's organizational behavior attributes including leadership, organizational culture, trust, ethics, and motivation.

1. Dallas Arce Ethan Garcia
Guy-Stéphane Bouédy

3. HISTORY OF MICROSOFT

4. HISTORY OF MICROSOFT
o A technology company that takes care of invention of manufactures, services and goof related to
computing.
o 1973: Bill Gates attended Harvard as a pre-law student. Spent most of his time improving his computing
skills in Harvard’s computer center.
o 1975: Allen and Gates proposed their services to write a new version of the BASIC programming
language of the Altair 8800.
o Inspired by the Altair deal, on April 4, 1975, Allen and Gates decided to form their own software
company called Microsoft with Bill Gates as the first CEO.

5.  Microsoft CEO Satya Nadella: “culture is
everything”
 Any successful company has an existing
culture
 Engage in a dialogue with your employees
 Living & Learning culture
 Learn from each other and customers
 Able to address business needs in dynamic
market (computer hardware/software)
 Facilitate innovation and customer satisfaction
 A leading firm in the IBM PC market
 Must maintain cultural characteristics that
promote innovation and high quality output

6. Main characteristics:
Accountability
 Employees understand that actions have
consequences
 Surveys, rewards, and recognitions programs
 Employees are evaluated by customer
experience (motivation to improve)
Quality and innovation
Heavy investments in R&D
for existing and new
products
Responsiveness to customers
Growth mindset
Diversity and inclusion
Vision statement: “To help individuals and businesses
realize their full potential”
Mission statement: “To empower every person and
every organization on the planet to achieve more”

7. • Competitive advantage strategy
& intensive strategies for growth
are aligned
• Competitive strategy assists
against competitors
• Uses broad differentiation as its
generic strategy
• Unique products sold to a wide variety of
customers
• Products are unique in terms of feature
• Focused on capturing a global market
• Market penetration
• Product & Market
development
• Diversification

8. Microsoft Corporate Structure
•Product Type Divisional
• Divisions based on computer hardware/software
products or organizational outputs
• Self-contained division for intelligent cloud product
• Separate divisions for other products
• Product innovations
• Different divisions
• Productivity & Business
• Intelligent cloud
• More personal computing
• Corporate & Other

9. • Global corporate group are secondary
• Based on functions essential in the computer technology
business
• Ex: HR group addresses company’s workforce needs and
related concerns
• Divisions
• CEO Office, Worldwide Commercial Business, Marketing,
Microsoft Global Sales, Corporate Strategy & Operations,
Microsoft Cloud & Enterprise Group, Human Resources,
Finance, Business Development, Applications & Services,
Windows & Devices Group, Technology & Research, Legal
• Geographic segments are third
• Group operations in the company’s financial reports
• United states
• International
• Focuses on product development
• Competitiveness of Microsoft’s products
• Disadvantage

10. Steve Ballmer
• “Trained manager to see the trees, not the forest.”
Satya Nadella
• Transformational Leader
• Inspire followers to commit to a shared vision
• Serve as mentors who help followers develop their own potential
• One 8-hour meeting. Three 4-hour meetings.
• Set clear goals & have high expectations
• Microsoft Office 365
• Are models of integrity & fairness
• "Revenue is a lagging indicator, usage is a leading indicator.”
• Worries about consumer use, not numbers
• “Don’t go to useless meetings that will waste your time.”
• Advised workers to directly report to him
• “Anyone should be able to tell me anything. That's the culture we
strive for.”
• Nadella has influence among his employees
Leadership

11. “Teamwork and collaboration is an art. In fact, observing musicians and
athletes teaches us a lot about this art form.” – Satya Nadella
“And today, we’re adding a new tool and an experience to Office 365:
Microsoft Teams, a chat-based workspace.
Release date: June 28, 2011
Casual conversations; Work on content; Create work plans
Facilitate real-time conversations and collaborations

12. TRUST
• “IT'S NOT REALLY ABOUT ASKING FOR THE RAISE, BUT KNOWING AND HAVING FAITH THAT THE SYSTEM WILL ACTUALLY
GIVE YOU THE RIGHT RAISES AS YOU GO ALONG," NADELLA SAID, ADDING THAT NOT ASKING FOR A RAISE IS "GOOD
KARMA.”
• FIRESTORM ON TWITTER DUE TO A MISUNDERSTANDING OF WHAT HE MEANT.
• RESPONSE/APOLOGY: “WAS INARTICULATE HOW WOMEN SHOULD ASK FOR RAISE. OUR INDUSTRY MUST CLOSE GENDER PAY
GAP SO A RAISE IS NOT NEEDED BECAUSE OF A BIAS.”
• SENT A LETTER TO HIS FEMALE EMPLOYEES
• COULD AFFECT TRUST WITH FEMALE EMPLOYEES
• MICROSOFT RELIES ON THE TRUST OF THE CONSUMER
• REPORTING CONCERNS
• “RAISING CONCERNS IS YOUR RESPONSIBILITY AND YOUR RIGHT. YOU CAN FEEL CONFIDENT THAT YOU WILL NOT
SUFFER ADVERSE CONSEQUENCES FOR RAISING A CONCERN, OR FOR REFUSING TO DO SOMETHING THAT VIOLATES THE
STANDARDS OF BUSINESS CONDUCT ("SBC"), OUR POLICIES, OR THE LAW.”

13. – Kirk Koenigsbauer (Corporate Vice President, Office 365
Client Apps and Services Team)
– “And one that helps build a team culture that is both fun and
inclusive so everyone has a voice.”
– Procedural Justice (Everyone has a voice)
– Nadella speaks about Trump’s immigration ban
– "There is no place for bias or bigotry in any society, in any context.
That’s where we start from.”
– Political Justice

14. • Microsoft sues the Government
• Allegedly, gag orders to search warrants for customer data violates the U.S. Constitution
• Strong view on its privacy promises to users (compromises the principles of privacy).
• Governments: preserve public safety VS. Microsoft: users’ privacy is preserved
• Letter from Nadella to Employees
• “We set high ethical standards at Microsoft and we expect every employee to live up to
those standards. Complying with the law and company policies is the first and most
important job of every Microsoft employee. A momentary lapse in judgment by a
single employee has the potential to erode the value and the trust we bring to
customers. As a Microsoft employee, you are expected to maintain a commitment to
high ethical standards and conduct Microsoft’s business with integrity.”
• Artificial Intelligence (AI) Ethics
• Nadella’s 10 Laws of AI

15. 1) AI must be designed to assist humanity.
• Respect human autonomy.
• Sends AI to do dangerous jobs (i.e.
mining)
2) AI must be transparent.
• Humans and Machines should know
things about each other. (An
understanding of each other).
3) AI must maximize efficiencies without
destroying the dignity of people.
• Preserve cultural commitments, and
empower diversity.
4) AI must be designed for intelligent privacy.
• Secure personal and group information
through sophisticated protections.
5) AI needs algorithmic accountability so
humans can undo unintended harm.
• Design technologies for expected and
unexpected.
6) AI must guard against bias.
• Ensuring proper, and representative research so that the wrong
heuristics cannot be used to discriminate. (Whatever that
means…)
7) It’s critical for humans to have empathy.
• Perceiving others’ thoughts and feelings, collaborating and
building relationships will be critical. Difficult to replicate.
8) It’s critical for humans to have education.
• Implementing AI education in schools.
9) The need for human creativity won’t change.
• Machines will continue to enrich and augment our creativity.
10) A human has to be ultimately accountable for the outcome of a
computer-generated diagnosis or decision.
• We may be willing to accept a computer-generated diagnosis or
legal decision, but we will still expect a human to be ultimately
accountable for the outcomes.
“The most critical next step in our pursuit of AI is to agree on an ethical and empathic framework for its design.”
Nadella’s 10 Laws of AI

20. • Recall what it means to be motivated
• Microsoft: Theory X or Theory Y?
• Corporate Social Responsibility (CSR)
• Everyone can grow and develop
• Potential is nurtured not predetermined
• Anyone can change their mindset
• From the following video (end at 1:45), are
Microsoft employees extrinsically motivated or
intrinsically motivated?
• Key word: Challenge
• https://www.youtube.com/watch?v=zfcafkIkF08
&feature=youtu.be

21. • Extrinsic motivation added to enhance
overall employee motivation
• Benefits and bonuses vary by location
• U.S Microsoft employees receive:

22.  Recall: What it means to have job
satisfaction.
Microsoft Highest ranked values:
Competitive Pay, Bonuses, and Stock Rewards
Work itself
Altruism
Status
Feedback**

23.  Feedback Fail: Stack Ranking – Ended in 2012
 Lowered morale of Microsoft
 2000-2010: Microsoft’s Lost Decade
 Solution: Ditch the System

24. • RECALL PERFORMANCE
• ROUTINE TASK PERFORMANCE
• CITIZENSHIP VS.
COUNTERPRODUCTIVE BEHAVIOR
• BUT THAT’S ALL CHANGED –
AND MICROSOFT IS
CONTINUOUSLY IMPROVING THE
EMPLOYEE MORALE
• COMPANY CULTURE
• GROWTH MINDSET
• CUSTOMER OBSESSED
• DIVERSITY AND INCLUSION
• ONE MICROSOFT
• MAKING A DIFFERENCE

25. • Recall: What it means to be committed
• Before 2010
• Barely committed
• Engaging in counterproductive behaviors
• After 2010
• What happened with company culture
change?
• Would you say that this employee has:
• Affective Commitment
• Continuance Commitment
• Normative Commitment
Commitment

26. WORKS CITED
• http://www.usatoday.com/story/tech/2015/09/15/microsoft-ceo-nadella-culture-
everything/72330296/
• http://panmore.com/microsoft-corporation-organizational-culture-characteristics-
analysis
• http://panmore.com/microsoft-corporation-organizational-culture-characteristics-
analysis
• http://panmore.com/microsoft-corporation-organizational-culture-characteristics-
analysis
• http://panmore.com/microsoft-corporation-organizational-structure-characteristics-
atnalysis
• http://panmore.com/microsoft-corporation-generic-strategy-intensive-growth-strategies
• http://panmore.com/microsoft-corporation-vision-statement-mission-statement-analysis
• http://search.proquest.com.ezproxy2.library.drexel.edu/docview/1641710570?pq-
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culture
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reorga_b_3619736.html
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behavior-monitoring-patent.aspx
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• https://www.microsoft.com/en-us/legal/compliance/program.aspx
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employees
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internal-structure
• https://www.youtube.com/watch?v=aaglPKExHw8
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to-employees-after-they-committed-an-.html
• https://betanews.com/2010/02/09/why-former-employees-say-microsoft-can-t-
innovate/
• https://www.theofficialboard.com/org-chart/microsoft