Certificate Course

Principles of Management
Project on the Organisation Structure of

MICROSOFT

SUBMITTED BY
Name: SAGAR S. HANCHATE
Section: C

SUBMITTED TO
Department of General Management,
R V Institute of Management

R. V. INSTITUTE OF MANAGEMENT
CA 17, 36th Cross, 26th Main, 4th T Block, Jayanagar, Bangalore - 560041.
2014-2015

Report on principles of management

Introduction of the company:

19751981: Microsoft boots up

Microsoft co-founders Paul Allen (left) and Bill Gates

Idea was came into the mind of two friends in 1970s. At work when they rely on
typewriters. If they need to copy a document, they likely use a mimeograph or
carbon paper & few have heard of microcomputers, but the two young computer
enthusiasts, Bill Gates and Paul Allen, see that personal computing is a path to the
future.
In 1975, Gates and Allen form a partnership called Microsoft. Like most start-ups,
Microsoft also begins small, but has a huge visiona computer on every desktop
and in every home. During the next years, Microsoft begins to change the ways we
work.

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The dawn of MS-DOS
In June 1980, Gates and Allen hire Gates former Harvard classmate Steve
Ballmer to help run the company. The next month, IBM approaches
Microsoft about a project code-named "Chess." In response, Microsoft
focuses on a new operating systemthe software that manages, or runs, the
computer hardware and also serves to bridge the gap between the computer
hardware and programs, such as a word processor. Its the foundation on
which computer programs can run. They name their new operating system
"MS-DOS."
When the IBM PC running MS-DOS ships in 1981, it introduces a whole
new language to the general public. Typing C: and various cryptic
commands gradually become part of daily work. People discover the
backslash (\) key MS-DOS is effective, but also proves difficult to
understand for many people. There has to be a better way to build an
operating system.

It also entered the game console market dominated by

Sony and Nintendo, launching the first Xbox in 2001, and has begun to take
on Apple in the smartphone market with the launch of Windows Phone in
2011, and the purchase of Nokia in 2013.

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Organational Structure Diagram :

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Organisational structure:
Microsoft Corporation is a American public multinational corporation
headquartered in Redmond, Washington, USA that develops, manufactures,
licenses, and supports a wide range of products and services predominantly
related to computing through its various product divisions. Established on
April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800,
Microsoft rose to dominate the home computer operating system (OS)
market with MS-DOS in the mid-1980s, followed by the Microsoft
Windows line of OSes.
Microsoft would also come to dominate the office suite market with
Microsoft Office. The company has diversified in recent years into the video
game industry with the Xbox and its successor, the Xbox 360 as well as into
the consumer electronics market with Zune and the Windows Phone OS.
The ensuing rise of stock in the company's 1986 initial public offering (IPO)
made an estimated four billionaires and 12,000 millionaires from Microsoft
employees.
Primarily in the 1990s, critics contend Microsoft used monopolistic business
practices and anti-competitive strategies including refusal to deal and tying,
put unreasonable restrictions in the use of its software, and used
misrepresentative marketing tactics; both the U.S. Department of Justice and
European Commission found the company in violation of antitrust laws.
Known for its interviewing process with obscure questions, various studies
and ratings were generally favorable to Microsoft's diversity within the
company as well as its overall environmental impact with the exception of
the electronics portion of the business.

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Hierarchy of authority:
This can be an internal certification authority administrator or an
external company or organization that specializes in verifying identities and
issuing certificates. This authority is called the root authority. The root
authority then certifies other certification authorities, called first-tier
certification authorities, who can then issue certificates and also certify
additional or second-tier certification authorities. This situation is shown in
the following illustration.

The identity of the certification authority issuing a certificate is part

of a certificate. That certification authority is called the certificate's issuer.
When a certificate's issuer is a tier 1 or tier 2 certification authority, the
receiver of that certificate can determine whether the certificate's issuer is
certified as a valid certification authority by a certification authority at a
level above it, and that the higher level certification authority is certified as
a valid certification authority by still a higher level certification authority

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until it is determined that a chain of trust exists between the lowest level
certification authority and the root certification authority.
For example, in the preceding illustration, it can be verified that CA #4 was
certified as a certification authority by CA #1, and that CA #1 was certified
as a certification authority by the root CA. Thus when a certificate from a
lower-level certification authority is passed along with the encrypted
message, information about all of the certificates in its chain of trust up to
the root is passed along with it.
Span of control:
Relatively wide span of control
Relatively narrow span of control. At lower levels, where tasks are similar
and simpler, span of control widens
Span of Control As you can see from Figure 6.3, the distribution of
authority in an organization also affects the number of people who work for
any individual manager. In a flat organizational structure, the number of
people directly managed by one supervisor the managers span of control
is usually wide. In tall organizations, span of control tends to be relatively
narrower. Span of control, however, depends on many factors. Employees
abilities and the supervisors managerial skills help determine whether span
of control is wide or narrow, as do the similarity and simplicity of those
tasks performed under the managers supervision and the extent to which
they are interrelated. If lower-level managers are given more decisionmaking authority, their supervisors will have less work to do because some
of the decisions they previously made will be transferred to their
subordinates. By the same token, these managers may then be able to
oversee and coordinate the work of more subordinates, resulting in an
increased span of control. Similarly, when several employees perform either
the same simple task or a group of interrelated tasks, a wide span of control
is possible and often desirable. For instance, because all the jobs are routine,
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one supervisor may well control an entire assembly line. Moreover, each
task depends on another. If one station stops, everyone stops. Having one
supervisor for all stations ensures that all stations receive equal attention and
function equally well.

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Future development of company:
Microsoft unveiled its next Windows operating system, Windows 10, and
gave a first look at an early technical preview for the PC available Oct. 1.
The announcement highlighted advancements designed for business,
including an updated user experience and enhanced security and
management capabilities. The company also introduced the Windows
Insider Program, kicking off its largest-ever open collaborative development
effort to change the way Windows is built and delivered to best meet the
needs of customers. Program participants will receive the technical preview
of Windows 10 and a steady stream of builds through the development cycle
to use and give feedback on.
Windows 10 represents the first step of a whole new generation of
Windows, unlocking new experiences to give customers new ways to work,
play and connect, said Terry Myerson, executive vice president of the
Operating Systems group at Microsoft. This will be our most
comprehensive operating system and the best release Microsoft has ever
done for our business customers, and we look forward to working together
with our broader Windows community to bring Windows 10 to life in the
months ahead
Effective communication by employees in organisation:
Communicate with employees
It may sound like a very basic point, but employee communication is
overlooked in too many organisations. Staff members need to know that
they are valued, understood and perhaps most importantly, listened to. If an
employee has a concern or some other issue that may prevent them from
working productively, they need to know that communication channels are
open.
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Reward strong performance
If employees perform well, they need to be rewarded. This can be in terms
of extrinsic rewards - such as additional pay, benefits or opportunities for
promotion - or intrinsic - through simple gratitude and recognition for a job
well done. Employers need to gauge which type of reward is appropriate in
each individual situation, based upon overall aims and the expectations of
staff members.
If a key employee has put in a significant amount of extra work on a project,
it may not be sufficient to simply thank them for their efforts - they may
expect some pecuniary reward for the additional effort they have made. But
equally, businesses need to ensure they do not over-stretch their budgets and
create unrealistic expectations where pay and benefits are concerned.
Involve employees in decision making
Major business decisions will always be made in the boardroom by the
executive team, but this does not mean employees should be excluded from
this process. Hundreds of different decisions are made every day within
companies - from the ground level right up to the top of the enterprise. And
giving staff members the autonomy to make them - where appropriate - can
boost morale and help increase job satisfaction.
Offer training and development
Employees want to feel as if they are constantly developing in the
workplace - learning new skills and gaining experience which will stand
them in good stead in the future. Each individual worker will have
ambitions of their own, and as such it is important that employers support
their professional development.

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Define the employees' role
Employees should have the opportunity to move up the ranks and better
themselves within the company they work for - otherwise they are likely to
go and work elsewhere. But at whatever level they are working at a
particular time, they should have a well-defined job description, and
understand the role they are working in. This provides a context for
everything they do, and ensures they feel a sense of purpose while at work.

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CSR Activities Of Microsoft Company:

Microsoft has formally collaborated with Smile Foundation as a funding partner
under its corporate social responsibility initiative. Microsoft is supporting one of
Smiles national level programmes named smile twin learning project which
focuses

on

technology

skills

building

for

employment

generation

of

underprivileged youth.
The grant amounting to Rs. 7.12 Million will be utilized by Smile across 16
Indian states for strengthening the on-going step initiative benefiting thousands
of underprivileged youth. With the significant and timely support from Microsoft,
Smile is planning to expand this programme to cover more youth from the
deprived section of the society.
Under its Unlimited Potential Community Technology Skills Programme,
christened Project Jyoti, Microsoft Corporation India Private Limited has
announced the funding of Rs. 1.9 crore to three NGOs for enabling IT access to
underserved communities in urban slums and rural India.
Besides Smile Foundation, NASSCOM Foundation and Saath Charitable Trust are
the other two organizations to have received grants from Microsoft. Till date,
Microsoft has invested Rs. 37.5 crores under this initiative, impacting 20 states
and Union Territories across India.

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Conclusion:
Learning about American companies and their social responsibilities, I found a lot of
interesting things in how they care about their employees. As all we know, American business
is the best example of successful business. And the reason of it, in my opinion, is that
Americans think through all the details and, what is one of the most important, pay attention
on how their employees do their job. Because a good head understand, that each member of
their company is an important part of the team and only when each of them will be work the
best he or she can and in team, only then the company will reach prosperity and great success.
Microsoft Corporation is engaged in developing, licensing and supporting a range of
software products and services. The Company also designs and sells hardware, and delivers
online advertising to the customers. It operates in five segments: Windows & Windows Live
Division (Windows Division), Server and Tools, Online Services Division (OSD), Microsoft
Business Division (MBD), and Entertainment and Devices Division (EDD). The Company'
products include operating systems for personal computers (PCs), servers, phones, and other
intelligent devices; server applications for distributed computing environments; productivity
applications; business solution applications; desktop and server management tools. In July
2012, the Company purchased Edgewater Fullscope's Process Industries 2 (PI2) software and
intellectual property. In July 2012, Comcast Corp. acquired the Company's 50% stake in
MSNBC.com. In October 2012, it acquired Phone Factor Inc. On July 18, 2012, it acquired
Yammer, Inc. (Yammer).

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