2. History Of Microsoft
•The company was founded by Bill Gates and
Paul Allen on April 4,1975.
•The name originated as Micro-Soft.
•3 original employees.
•Bill Gates wanted to create a “family” work
environment.
•First generated revenue was $16,000
3. Bill Gates
Microsoft co-founder
1975
Steve Wood
Office Manager
1976
Marc McDonald
1st Employee
Programmer 1976
Gorden Letwin
Programmer
Chef Architect
1978
Bob Greenburg
Programmer
1977
Bob O Rear
Programmer
1978
Bob Wallce
Production Manager
1978
Andrea Lewis
1st Technical Writer
1978
Jim Lane
Project Manager
1978
Maria Wood
Administrative Assistant
1978
Paul Allen
Microsoft co-founder
1975
Originalstructure
4. Disadvantages of Tall Organization Structure
The freedom and responsibility of employees is restricted.
Decision making could be slowed down as approval may be
needed by each of the layers of authority.
Communication has to take place through many layers of
management.
High management costs because managers are generally
paid more than subordinates .
Each layer will tend to pay it’s managers more money than
the layer below it.
5. In 2010 under Steve Ballmer , Microsoft
has adopted the divisional organizational
structure each division focuses on a specific
line of goods and services with their every
own research and development, Sales and
Customer Service Staff.
6. Windows & Live
Windows
Server Software Online Services Microsoft
Business
Entertainment
& Devices
R&D R&D R&D R&D R&D
Sales Sales Sales Sales Sales
Customer
Service
Customer
Service
Customer
Service
Customer
Service
Customer
Service
Steve Ballmer
7. Divisional Structure
Advantages
• Having its own
president or vice
president makes it more
likely the division will
get the resources it
needs from the
company.
• More customer focus.
• Easier to monitor
employees
• Having its product and
services dispersed
among different
department.
Disadvantages
• Will allow office
politics to fester
• One division will
sometime act to
undermine the other
division
• Division can bring
compartmentalization
that can lead to
incompatibilities
8. Current Organization Structure
CEO
(Satya Nadella)
CFO
(Amy Hood)
Chief Economist
(R..M..)
Accounting
(F..B..)
One Drive & Share
Point
(J...T..)
Chairman of Board
(John Thompson)
Director &
Technology
(William Gates)
Marketing
(C...C..)
Strategy & Operation
(K..D..)
Tech. & Research
(H..S..)
Tech. Account
(T...M..)
Windows & Devices
(T...M...)
Hardware
(T...H..)
Program Window
Server
(B..A..)
OS Innovation
(R..R..)