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TABLE OF CONTENTS
I. Introduction: ............................................................................ 2
II. Detail: ...................................................................................... 3
1. Evaluate and compare different organizational structures and culture: ......... 3
2. The relationship between an organization’s structure and culture and the
effects on business performance: ........................................................................... 8
3. The factors which influence individual behavior at work: ............................... 9
4. Organization theory strengthens principles and practice of organizing and
management .......................................................................................................... 12
Classical management theory ............................................................................... 12
5. The different approaches to management and theories of organization used
by Microsoft: ......................................................................................................... 15
6. The different leadership styles and the effectiveness of these leadership
approaches in Microsoft Corp. :........................................................................... 16
Conclusion: ................................................................................. 18
Reference : .................................................................................. 19
1
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I. Introduction:
In the case of Microsoft Corp. Software Company, after 27 exist years, Microsoft network is
broadened in 105 countries and region with 78000 people1. The success of Microsoft is a proof for
management‟s talent of William H. Gates and Steven A. Ballmer although they have a different
management way. Have a question is given: What is the best way for management? There are not
any adequate answers for this question. However, in management the talent of overview, foreseen
and observes are necessary to evaluate flexible most.
1
Microsoft Corporation (2007, July 30) Bill Gates-Chairman, Microsoft Corp. Retrieved March 24, 2008, Web site:
http://www.microsoft.com/presspass/exec.mspx?pf=true
2
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II. Detail:
1. Evaluate and compare different organizational structures and culture:
Getting the structure right is important for any organization, whatever its size, its technology
or its environment. In this point of Child‟s view, it is claimed:
―The allocation of responsibilities, the grouping of functions, decision - making, co –
ordination, control and reward – all these are fundamental requirement for the continued
operation of an organization. The quality of an organization‘s structure will affect how well these
requirements are met.‖2
Depend on environment, technology and tasks or strategy of management, each organization will
be structured to meet its objective or motivate workers. Organization structure can be broken down
into two main types: function and division.
―A function is a set of people who perform the same types of tasks or hold similar
positions in an organization.‖
―A division is a group of functions created to allow an organization to produce and
dispose of its goods and services to customers.‖3
Besides, authority/power is also a factor influencing on “shape of organization”. The span of
control is a tool to evaluate authority and hierarchy structure is “flat” or “tall”. It is mean that an
organization with the narrow span of control and high level will lead to tall structure. In contrast,
wider span of control and low level is result in flat structure. The figure below is about
organizational pyramid what shows you span of control, overall.
2
Child J. (1988). Organization: A guide to Problems and Practice. Paul Chapman.
Veeramuthu (2008) Organizations and Behavior, Hanoi: National Economic University. 2- page handout on the
Organizational Structure and Culture.
3
3
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Figure 1.1. Organizational pyramid4
Relate to hierarchy, authority can be recognized under an aspect of centralize or decentralize. In
the centralized organizations, managers retain most of responsibilities and the power concentration
in one person. In contrast, decentralized organizations disperse responsibilities and decisions for
lower level managers. At all, each organization will decide what combination is most effective.
Making up a right structure is not enough for an organization to run clearly and effectively.
Organizational culture is also remarkable. As the same as other concepts, there are many way to
define organizational culture. One of the definition is described as follow:
―Culture (in the sense of organizational ‗climate‘) is the collective self-image and style
of the organization; its shared values and beliefs, norms and symbols‖5
Each organization has different expectations, values, norms and ways to adapt and identify its
culture. Thus, culture in each organization is unique. For example: if relationship of customers is
4
EDEXCEL HNC & HND BUSINESS, (2004) Mandatory Unit 3: Organizations and Behavior Supporting
foundation degrees. 1st ed., London: BPP Professional Education, Aldine House, Aldine Place, pp. 64.
5
EDEXCEL HNC & HND BUSINESS, (2004) Mandatory Unit 3: Organizations and Behavior Supporting
foundation degrees. 1st ed., London: BPP Professional Education, Aldine House, Aldine Place, pp. 103.
4
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cared of the culture, this distinction will be adopted by individuals. However, following the ideas
of Harrison, Handy classify four main types of organizational culture: power, role, task, and
person culture.6 Within power culture, power is central by judgment of key individual. In role
culture, individuals pay attention to their particular job. Furthermore, task culture based on job
satisfaction and expert power. Finally, person culture takes individual as central focus and talent of
individual is target for structure exists.
As we mentioned about organizational structure and culture before, now we will look
through the case scenario of Microsoft; the article “Ballmer‟s Microsoft” that published in
Business Week on 17th June, 2002; to understand more clearly:
Under management of Gate:
Building a Microsoft basic foundation, Gates paid attention to develop production ―the
Windows operating system and Office suite of applications‖ that he believed more customers‟
attraction and competition moves. To be convenient for product development and management, he
divided company following functional structure. ―Gates gave his pal free rein to restructure the
way Microsoft manages finance, sales, product development, marketing, even strategic planning‖.
Concentrate to production, Microsoft employees worked in smaller groups and all product
activities were done at one site. It is reason why the amount of Microsoft‟s products was always
competitive comparing with other company in the industry. ―We have always had a multi-product
strategy where the product managers and the development teams are the champions, and that is a
process that has allowed us to have many more products than any one else in the industry‖. 7 In
general, with the Microsoft‟s goal at this time, organization structure that Gate created is suitable.
To manage employees pretty well he used flat structure with narrow span control for office.
Hierarchy was centralized that Gate handed most of power. It is true as Jame Collins said: ―To my
mind, Microsoft has never been a company. It's a single remarkable individual, Gates, with
thousands of the smartest, best-paid people anywhere helping that individual. It's basically like a
big wheel, with Gates at the hub.‖8 The authority of Gates covered around company and the last
decision in hand. One of the evidence for his strong power is he had his own “think week” when
he can think a new strategy in technology. This proof seems like simple but it expresses that he is
6
Handy C.B. (1993). Understanding Organizations. Penguin
Lalonde J.E. (1990,Feb. 18). A Billion-Now Microsoft's Chairman Bill Gates Needs A New President For The '90S.
Retrieved April 17, 2008, Web site:
http://management.about.com/gi/dynamic/offsite.htm?site=http://www.seattletimes.com/news/business/html98/micr%
5F20000114.html
7
8
Gates, Bill Leadership the Bill Gate way. Retrieved April 17, 2008, Web site:
http://www.icmrindia.org/casestudies/catalogue/Leadership%20and%20Entrepreneurship/Leadership%20the%20Bill
%20Gates%20Way-Leadership%20and%20Entrepreneurship.htm#Introduction
5
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such an important and seft-decision person ―Gates had his ‗think week‘ where he secluded himself
at his family‘s retreat in Hood Canal in northwest Washington to ruminate on the Next Big Thing
in technology‖.
Turn your sight into culture. Power culture is the way Gate created in first years of
Microsoft. At that time, the control key is Gates, he handed off decisions. It is may be that, others
ideas were gathered and filled up each other but the last is Gates.
Under management of Ballmer:
Gates gave his place to Ballmer in January 2000. Taking a position as CEO of Software
Company with clearly goal ―great, long- lasting company‖, Ballmer has reconstructed Microsoft‟s
corporate from top to bottom. With open-mind, he had a big innovation shaping Microsoft„s
division, tall, unwieldy and decentralized structure. He has broken Microsoft into seven operating
divisions, each units has own leader and they have individual decision making and accountability
“It‟s a balance sheet that divides the company into seven distinct businesses and gives each unit‟s
leader the financial tools to measure its performance”. Looking ahead, the scale of Microsoft rose
larger with a number of employees. It is reason why he has delegated a second tier of executives.
Ballmer gave up old line of hierarchy that in the hands of Gates and Ballmer and made Microsoft
to become decentralized structure ―He has empowered a second tier of executives to run their
businesses with less supervision, breaking from Microsoft‘s heritage of placing every important
decision in the hands of Gates and Ballmer‖ .Moreover, “management sync weeks” every quarter
day-after-day proclaims a changing management from Ballmer, once again. Here, all ideas are
expressed and the final is group-decision. On the other hand, Ballmer has reduced a level of
management to manage more easily and efficiently. Microsoft structure is less flat therefore, the
span of control is narrower and the gap between the sales and product-development are restored.
Now, we are going definitely to Microsoft‟s culture under management of Ballmer. Refer to
division structure, Ballmer sent off a strong role culture. Firstly, we will focus on belief, one of the
firm to appreciate organization culture. By the vision improving the relationship with customers
and competitors, he has pointed out an anchor that influence on not only the method customers
respond
but also employees interact with customers ―Microsoft‘s mission is not just about
technology. It‘s also about improving the way the company handles relationships with customers
and others in the technology industry‖. Further, specific manifestations of culture are people
behaviors, too. It is also regarded as belief that look at aspect of perception and feeling ―People
have to be very open, self-critical, almost relentlessly honest, and, at the same time, respectful‖.
Secondly, value is also important aspect. Giving core values “honesty, integrity, and respect”,
6
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Ballmer guides employees and promote their behavior in Microsoft environment. To be
considerable positive mind, from these core values, Ballmer takes relationship with the rest of
industry that did not happen with aggressive person as Gate. Finally, norm is a number of rule and
order that are forced employees to obey. With an aim making all stick and employees are
independent in their job, Ballmer has ordered array of meetings, reviews and examine “He says the
company‟s core value of honesty, integrity, and respect must shine through with customers,
partners, and the tech industry”. In sum up, under Ballmer‟s hand, Microsoft has made its own
culture that has created specific image in industry.
Competitor of Microsoft‟s software company: Mozilla – Producer of Mozilla FireFox, the
software Web browsers.
It is time to look at one another competitor of Microsoft to evaluate and have a view more
adequate. Consider as a big competitor, Mozilla with software web browsers Mozilla FireFox is
actually competition comparing with the software IE (Internet Explore) of Microsoft. The reason
choosing Mozilla but not another one is the different nature and nature goal. While the goal of
Microsoft is a high fiscal, Mozilla is only a non-profit Corporation. Another reason is an image
about open culture that Mozilla is a priority. Contrastively, Microsoft always tries to give
persuasive data fights against this trend9. Focus on making great products, Mozilla has applied a
functional structure. This type of structure is effective for managing and easy to focus on product
group ―This unique structure enables Mozilla to financially support and cultivate competitive,
viable community innovation. The result is great products build by passionate people‖10. Because
of the main mission is an openness and opportunity on the Internet rather than business, like profits
or price of stock therefore authority are decentralize and opener ―Developers and programmers
are central, but designers, testers, users and advocates are also key elements‖.11
About culture, it can be said that an innovation. Indeed, over 20 percent market share in
Europe, Mozilla FireFox send off free culture. In early, this organization has affirmed its own
value, it is explain why the corporation have a success and bring its culture to around World Wide
Web “providing a Web browser with enough marketshare to drive open standards on the Web.
Carefully managed, this value — and the resulting ability to generate revenue — can be used to
make the Mozilla project self-sustaining and help keep the Internet open and diverse‖.12 Next,
believing in personal traits make organization culture stronger. In this case, stand for nonprofit
9
D.T., (2007,May 29). Who makes Miccrosoft unsleep well?. Retrieved April 17, 2008, from Estern Culure Web site:
http://dongtac.net/spip.php?article599
10
About Mozilla. Retrieved April 17, 2008, from Mozilla Web site: http://www.mozilla.com/en-US/about/
11
About Mozilla. Retrieved April 17, 2008, from Mozilla Web site: http://www.mozilla.com/en-US/about/
12
About Mozilla. Retrieved April 17, 2008, from Mozilla Web site: http://www.mozilla.com/en-US/about/
7
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organization, it is not just belief, it is also independent attitude. Take examples are ability to work
well, entrepreneurial style and spirit, good judgment and consensus building skills…etc.
2. The relationship between an organization’s structure and culture and the effects on
business performance:
As we noted, in one organization, structure and culture have mutual actions. Rely on what
type of structure is shaped, culture will have an effect. For example: with type of functional,
centralized structure, most of managers will show his organization to role culture. It is simple to
understand, role culture has a main trend well personal relations so function structure seems like
the most suitable. Because the characteristic of function is dividing to tasks, employees of
individual task can exchange and work each others. And then, the more exchange the more
relationship.
Advantages:
Microsoft also is not exception. Everything went well for Microsoft; the fiscal went sharply
within 27 years. Aside from a management the way dividing employees to perform similar tasks
and group smaller one to develop and complete independent projects are adequate business. It
helped higher product capacity and work effectively “Gates believed that user-friendly computers
and easily accessible software could attract many new customers. He tried to view the entire
product portfolio of Microsoft in the light of future prospects and likely competitor moves.
Accordingly, he made strategic decisions regarding product development‖.13 Day to day, the scale
of Microsoft expand more and more. The management is quite difficult, there is not another way is
empower to second authority to manage. It not only solves a difficult in management employees
but also gives a condition for sub-units to express potential and take full advantages in source of
grey matter. Further, a volume of time to supervise is release in stead of a manager can spend time
to make a strategy or schedule of work in the future.
Disadvantages:
Microsoft is not always right. Once again, Microsoft wants to bridge a belief in customers
by getting product-development groups. However, the business was not successful because of
these elements:
First of all, a net work of Microsoft is too large. Develop more groups of product is having
to add more people for project. It is a really trouble with such a large company as Microsoft Corp.
13
Lalonde J.E. (1990,Feb. 18). A Billion-Now Microsoft's Chairman Bill Gates Needs A New President For The '90S.
Retrieved April 17, 2008, Web site:
http://management.about.com/gi/dynamic/offsite.htm?site=http://www.seattletimes.com/news/business/html98/micr%
5F20000114.html
8
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The scale of management wide, supervisors will not adequate and easily lead to impact or higher is
conflict.
The second, a range of products are published but not have remarkable. Microsoft has not
concentrated in any product for any people group. If Microsoft is still greedy and cover all
products of industry, the company could lose it own goal and old own market.
3. The factors which influence individual behavior at work:
In any side, any aspect, every people differ from one another. So on, behavior is a complex
element in management. However, without understanding behavior will lead to result in conflict
and frustration. As a starting point, a manager need to recognize how differences influence
subordinates‟ behavior and attempt to understand them if they are to be successful. 14 Individual
behavior is affected by diverse different factors. Such an individual factors are personality,
perception, attitude, learning, conflict, stress and change.
The first factor is about personality. Personalities become more clearly defined and
generally stable when people grow up into adulthood.
―Personality is the relatively stable set of psychological attributes that distinguish one
person from another‖.15
The big five is the classification system of traits to serve a model to appreciate and describe
personality. In other words, these traits in big five influence on behaviors and individual actions.
It includes five dimensions of trait that can be remembered as OCEAN or NEOAC:
1) Openness to experience (Not open to experience)
2) Conscientiousness (Un-directedness)
3) Extraversion (Introversion)
4) Agreeableness (Antagonism)
5) Neuroticism (Emotional stability)
Each Supertrait is measured by 6 facets (or subordinate traits). The figure will describe more
detail:16
14
15
Moorhead G., Organization: A guide to Problems and Practice.
Griffin R.W., Organizational Behavior: Managing People and Organizations. Houghton Mifflin Company.
16
McCrae, R. R. and Costa, P. T. (2003). Personality in adulthood, a five-factor theory perspective (2nd ed.). New
York: Guilford Press.
http://wilderdom.com/personality/traits/PersonalityTraitsBig5.html
9
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O
C
E
A
Fantasy
Competence
Warmth
Aesthetics
Order
Gregariousness
Feelings
Dutifulness
Assertiveness
Altruism
Activity
Compliance
Actions
Achievement
striving
Ideas
Self Discipline
Values
Deliberation
Trust
Excitementseeking
Positive emotion
Straightforwardness
Modesty
Tendermindedness
N
Anxiety
Angry hostility
Depression
Selfconsciousness
Impulsiveness
Vulnerability
Basically, personality starts at birth, goes on adolescent and shapes in adult; but it can still be
changed by circumstance, reflect of environment or situation. Observing and analyzing is a
mission of managers to make his/her subordinates high feeling, spirit, and a little bit of changing
basic personality. In deed, understanding basic personality is important, it is not only affect
people‟s behavior in organization but also their perception and attitude toward the organization.17
The second hidden element is perception. Touch, sight, hearing, taste and smell are five
senses help people awareness, encoding and decoding information about environment. The way
and the process discover environment is not the same target and situation so each people will have
own distinctive view.
―Perception is the relatively stable set of psychological attributes that distinguish one
person from another‖.18
Perception is cognitive process and appears whenever stimulate the senses. There are threes factors
which influence perception: perceiver, target (or object) and situation. Through the process of
observing, selecting and organizing, people perceive data information from outside. However,
because of the imbalance level of knowledge, sometimes lead to misperceive. Indeed, many classic
research studies clearly showed that in workplace, managers and subordinates often have different
17
18
Pervin L. (1984). Current Controversies and Issue In Personality. New York: Wiley.
Griffin R.W., Organizational Behavior. Boston, Toronto: Houghton Mifflin Company.
10
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perception ―The manager and the employee perceive the job design freedom in different ways;
they have different perceptions of the employees‘ amount of freedom‖19
Another aspect of individual behavior in organizations is attitudes. We define attitude as:
―An attitude is positive or negative feeling or mental state of readiness, learned and
organized through experience that exerts specific influence on a person‘s response to people,
objects, and situations‖.20
Individual attitude are formed in various ways and may still be changed. The modification of
attitudes depends on changing either the feelings or the beliefs. There are three dispositional views
of attitudes: intention, affect and cognition. Figure is single attitude about an object:
Intention
Affect
Intended
Behavior
tow ard the
object
Em otional
Feeling
tow ard the
object
Cognition
Perceived
know ledge
about the
object
Figure 1.2. Single attitude about an object21
In work context, behavior will be influence by two types of attitude: attitude to work and attitude
at work. “Attitude to work” mentions to opinion or view of individual on working. Meanwhile
“attitude at work” has a trend to express a viewpoint by actions.
Next, we jump to conflict aspect. Conflict arises because of a disagreement. In general, it is
no surprise that most of people still think conflict as negative and avoid it. Although, some types
19
Gibson J.L., Organizations Behavior Structure Processes. Boston, Massachuserrs: Irwin Mc Graw-Hill.
Gibson J.L., Organizations Behavior Structure Processes. Boston, Massachuserrs: Irwin Mc Graw-Hill.
21
Moorhead, Organization Behavior: Managing People and Organization. Houghton Mifflin Company.
20
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of conflict are helpful and encouraged to improve decision. Three types of conflict are identified:
bargaining, bureaucratic and systems conflict. A sequence of conflict was coded high or low on
three dimensions: attention to own-view, attention to other view and relational disruptiveness. As
we know conflict may occur between two individuals, as in the case of superior vs.
subordinate…etc. When conflict is high and long-term, stress is consequence. Some expression in
stress are exhaustion, loose temper…Keep stress out of your life is the best way to make best
feeling.
The last aspect of individual behavior is learning. Have to consider that the basic unit of
learning is the individual. Organizational learning has emphasized cognitive and interpersonal
factors. There are two main approaches to learning: stimulus-response and cognitive. Stimulus
learning shows people behave and response the same way in the future. In other words, they do not
make sense; just behave following “condition”. The approach of cognitive depend on experiences,
information or nature, it is also mean people behave more flexible and various.
Now turn to the scenario to analyze more clearly. As the entity of Microsoft Corp.,
Ballmer‟s characters are also affecting to individual behavior in work. Ballmer has a gifted talent
in predicting (a long term-view) the changing events and organizing, and directing the business
follow what he expected. Take, for example, the Xbox 360, introduced to the world in 2001. .
Who would have thought that Microsoft would enter the game-console industry? Although the
Xbox still faces heady competition from Sony's Wii and Playstation, it is connected to several
million US household televisions.22 Further more, Ballmer more concerns to his employees and
the work environment and brings energetic and enthusiastic when dealing with people ―In 2007,
the company was ranked one of Fortune's 100 best companies to work for‖. That is all symbols
of extraversion person. Another of Ballmer's philosophies is to be patient. This trait helps him
clearer in the Microsoft‟ target. Then again, Barry Zweibel points out that any company with $44
billion in sales has the luxury of patience.
4. Organization theory strengthens principles and practice of organizing and management
Classical management theory
Classical School:
This school emphasize on the purpose, hierarchy of management, principles of
organization and technical requirement. From these purpose of the approach, it is essential to
22
Tang C. ,Lessons for Leaders, Retrieved May 25, 2008, from Web site: http://www.ggci.com/Articles/Insight2007.htm
12
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understand how the best way for an organization works and how to improve productivity. Classic
school includes two „sub-groupings‟: scientific management and bureaucracy.
First of all, we concentrate to scientific management. F.W. Taylor (1856-1917), a “father”
of scientific management, recognized and defined scientific management in the early 1900s.
Scientific management focuses on the process of working and the best work method is possible to
perform. And then, motivation is needs concept that managers should do. It is useful to get
workers working more efficient, so on increase the volume of productivity “He (Taylor) was our
first professional guru and Taylorism-with its twin goals of productivity and efficiency”23
Concerning with efficient method and procedure for co-ordination and control of work, Taylor
summarized a set of principles: 24
The development of true science for each person‟s work.
The scientific selection, training and development of the workers.
Co-operation with the workers to ensure work is carried out in the prescribed way.
The division of work and responsibility between management and the workers.
Next, we turn to another „sub-grouping‟: Bureaucracy. A Germany sociologist Weber
shows the concern for Bureaucracy. Weber developed the concept of Bureaucracy as a formal
system of organization and administration designed to ensure efficiency and effectiveness25.
Especially, he emphasized on the administration based on rules of experts and rules of officials.
Human Relation School:
The next evolutionary step in during 1920s (Human relation School) paid attention to
social factors at work and behavior of employees within an organization. This theory also studies
the way of how managers should behave to motivate employees to meet organizational target.
According to Follett, he showed some influence of this theory:
Suggested workers help in analyzing their jobs.
If workers have relevant knowledge of the task, then they should control the task.
Another branch of organizational research relating to Human Relation School is theory X and
theory Y of the writer Douglas McGregor. Assumptions of two theories are described as follow26:
23
Stern S., (2001, October) “Guru Guide‖ Management today.
Mullins L.J., Management and Organizational Behavior 7 th ed. Edexcel.
25
Veeramuthu (2008) Organizations and Behavior, Hanoi: National Economic University. 5- page handout on the
Evolution of Management Thought.
26
Theory X and Theory Y, Retrieved May 25, 2008, from Web site:
http://faculty.babson.edu/krollag/org_site/encyclop/theory_xy.html
24
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Theory X: managers assume workers dislike and avoid work if possible, so they
must use coercision, threats, and various control schemes to get workers to make
adequate efforts against objectives. They assume the average worker wants to be
directed and prefers to avoid responsibility, has little ambition, and wants security
above all
Theory Y: assumes that individuals do not inherently dislike work, but see it as
natural as play or rest. Furthermore, external control and threat isn't the only way to
encourage productivity, and the most significant rewards are the "satisfaction of ego"
and "self-actualization needs".
Overall, contrast with Classical School that was concerned about „organizations without people‟;
Human Relation School related about „people without organizations‟.
System approach:
Mullins claims that “system approach focus on the total work of the organization and the
interrelationships of structure and behavior and the range of variables within the organization‖27.
Indeed, attention concentrates to analyze organization as a „system‟ with a number of sub-systems.
Moreover, the approach gives a meaning that any activities of one part also affect to other parts. It
is mean that managers should have open-eyed in a whole.
Contingency approach:
The last theory but more correct than others: Contingency approach. Concerning with
structure as a influence on organizational performance; contingency approach implies that there is
no one best way to organize. Depend on different situation and circumstance of each
organization, it is lead to appropriate designed structure and management system are different.
Actually, it is claimed by Tim Barnett ―The contingency approach to management (also called
the situational approach) assumes that there is no universal answer to such questions because
organizations, people, and situations vary and change over time‖.28 However, this research also
indicated that different forms of structure have equally successful chance. Above all, ―an
27
Mullins L.J., Management and Organizational Behavior 7th ed. Edexcel
28
Barnett T., Contingency Approach to Management, Retrieved May 25, 2008, from Web site:
http://www.referenceforbusiness.com/management/Comp-De/Contingency-Approach-to-Management.html
14
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organizational structures and control systems a manager chooses are contingent on
characteristics of the external environment. Organization needs to be flexible and adaptive‖.29
5. The different approaches to management and theories of organization used by Microsoft:
After a century, classic theory is still remained. Now, this theory has been applied in
Microsoft. Including scientific management and bureaucracy, classic school is actually useful in
Microsoft‟s management. Looking at the scientific point, a proof that Microsoft has been applied
this affirmation is centralization. An authority is always on hand of managers and leaders, who
make plan, organize and control a group. However, all of the guideline and an overall way
contributing to managers and leaders are decided by Board of directors. And Ballmer is the most
important person; he set standard for subordinate: ―People have to be very open, self-critical,
almost relentlessly honest, and, at the same time, respectful‖; ―Ballmer wants people finish
projects on time”30. Not just set a employees standard, Ballmer also make a right plan for
Microsoft running “Ballmer looking for alternatives- a key reason why Microsoft last year jumped
into game-console business with Xbox and into the accounting –software business with the
acquisition of Great Plains Software Inc‖31. About Bureaucracy, Microsoft use as a method to
create an environment for good working. The span of management widen from the Board of
directors to managers. Board of director includes ten persons divided into five committees (the
Audit Committee, the Compensation Committee, the Finance Committee, the Governance and
Nominating Committee and the Antitrust Compliance Committee) that manage distinguish matters
of Microsoft Corp.. Each distinguish have own employees relate to specific work. Based on rules,
norms are applied in workplace; managers will evaluate a performance of employees.
Study on the way of how managers should behave in order to motivate employees to meet
organizational targets, human relation theory is positive affective in Microsoft. In deed, Microsoft
concentrate to motivating the employees plays a crucial role. By creating the most comfortable and
the best condition, Microsoft helps employees feel freedom ―Microsoft gives software developers
a lot of personal freedom over both the work and the work environment‖32. From so on, they will
work more effectively and productively. This method not only encourages employees more active
to meet an organization‟s goals but also makes closely relationship in organization.
29
Veeramuthu (2008) Organizations and Behavior, Hanoi: National Economic University. 12- page handout on the
Evolution of Management Thought.
30
Greene, J. (2002) Ballmer‘s Microsoft, Business Week.
Greene, J. (2002) Ballmer‘s Microsoft, Business Week.
32
Working at Microsoft, Retrieved May 25, 2008, from Web site:
http://www.qbrundage.com/michaelb/pubs/essays/working_at_microsoft.html
31
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Mozilla Firefox is the big competitor of Microsoft. Working as a California not-for-profit
corporation dedicated to the public benefit and a project is a global community of people who
believe that openness, innovation, and opportunity are key to the continued health of the Internet.;
therefore Mozilla FireFox will concentrate to the success and capacity of working. ―Engineers in
the Browser and Toolkit groups were not happy with the way things were going‖33. For that
reason, Mozilla FireFox applies classical theory in management.
6. The different leadership styles and the effectiveness of these leadership approaches in
Microsoft Corp. :
One of the Handbook of Leadership defines leadership as ―an interaction between
members of a group. Leaders are agents of change, persons whose acts affect other people more
than other people‘s acts affect them. Leadership occurs when one group member modifies the
motivation or competencies of others in the group.‖34 The leadership definition implies about an
influence between interpersonal relationships and leadership. Moreover, this definition also
focuses on accomplishing goals. The effective leader has to deal with individual, group and
organizational goals. Thus, a leader influences on the work activities, events, strategies and
objective of organization. Additional, maintain a relationship and motivate workers is also a
leader‟ direct mission. And then, there are numerous ways to categorize style of leadership. One of
classification distinguishes among: Autocratic (Authoritarian), Democratic (Participative) and Free
Reign (Delegative). Basically, a good leader is a person who can apply style flexible and
compatible in the organization‟s circumstance and the leader‟s situation, not exception any style.
Firstly, we will focus on authoritarian style. This style is used when a leader want his
subordinates to do a mission or a task but not tell them his followers. In reality, this style is used in
rare occasion; just when a leader has all information or short on time. However, it well motivates
subordinates. With Ballmer, his style relates a little in authoritarian style: ―Ballmer has always
been a tough boss. He‘s known for eviscerating business plans at annual reviews, sometimes
humiliating execs in the process. One former top exec says he‘d rather put his arm in a food
processor than work for Ballmer again. ‗Steve is a pain in the ass to work for,‘ the exec says.
Ballmer says he‘s trying to improve. ‗A lot of people would like to see me balance a little bit more
33
Working at Microsoft, Retrieved May 25, 2008, from Web site:
http://www.qbrundage.com/michaelb/pubs/essays/working_at_microsoft.html
34
Gibson J.L., Organizations Behavior Structure Processes. Boston, Massachuserrs: Irwin Mc Graw-Hill
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the fun side with the tough side,‘ he says. ‗I think I‘ve hit a better balance than I had in the
past‖.35
Next, participative style means that a leader asks questions for employees to draw
solutions and make a decision. At that time, leader is considered as a member, a part of team/
group where he and other members decide what and how to do, together. However, the last
decision is still belong to a leader. Using this style, there are many advantages as: threaten the
relationship between a leader and his employees, making a better decision…Both of Gates and
Ballmer use this leadership style in management ―Microsoft's leaders are also very generous,
and frequently encourage the rest of employees to make charitable donations (both money and
time) a priority. Giving is a large part of Microsoft's corporate culture.‖36 From the side of
Gates, he plays an important role in developing product and the way in running Microsoft. But
Gates always motivates and allows employees using their creativeness and knowledge to invent
new product. Weekly, he spent average one hour to review solution, discuss about a new or
outstanding project and exchange with vice-presidents. From the side of Ballmer, because of a
large scale of Microsoft, he does not able to cover all information. So he is true when change the
structure and consult his opinion with the managers. ―He is willing to stand up and hear the
feedback. And he closely monitors the needs of his audience - market demands, perceived
competitors, customers and employees - to immediately change his position at any given
moment.‖37
Finally, we refer to delegation style. When a leader totally trusts employees and his
employees have ability to analyze and determine the situation, the leader allows the employees to
make the decision. However, the responsible is still remained in a leader. In case study of
Microsoft, the writer told that ―Ballmer seized on an unusually large bump in R&D spending and
he made it clear it was up to Burgum-the senior vice-president-to decide how much to spend
Ballmer are actually the good leaders‖38. It is an evidence to reflect the delegation style of
Ballmer in Microsoft.
35
Greene, J. (2002) Ballmer‘s Microsoft, Business Week.
Working at Microsoft, Retrieved May 25, 2008, from Web site:
http://www.qbrundage.com/michaelb/pubs/essays/working_at_microsoft.html
37
Tang C. ,Lessons for Leaders, Retrieved May 25, 2008, from Web site: http://www.ggci.com/Articles/Insight2007.htm
38
Greene, J. (2002) Ballmer‘s Microsoft, Business Week.
36
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Conclusion:
In summary, this study provides overview of the core concepts and indicates the strong
influence between organization structure and culture. The purpose of the overview is to provide
the field literature and help readers understand more about the method of management. In addition,
research on the case study of Microsoft, we can learn an experience and get your own management
in reality more flexible and easier.
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