Features of Microsoft’s Corporate Structure

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Microsoft Corporation has a product type divisional organizational structure. This structure involves divisions that are based on certain computer hardware and software products, or organizational outputs. The following characteristics are significant in Microsoft’s organizational structure:

1. Product type divisions (most dominant structural feature)

2. Global corporate groups

3. Geographic segments

Product Type Divisions. In this characteristic, the company uses product or output as the main criterion for grouping personnel and related resources. For example, the organization has a self-contained division for Intelligent Cloud products and separate divisions for other products. This structural feature contributes to the company’s organizational capacity for product innovation. The following are the product type divisions in Microsoft’s corporate structure:

1. Productivity and Business Processes

2. Intelligent Cloud

3. More Personal Computing

4. Corporate and Other

Global Corporate Groups. Global corporate groups are a secondary characteristic that defines Microsoft’s organizational structure. These groups are based on the functions essential in the computer technology business. For example, the Human Resources group addresses the company’s workforce needs and related concerns. This structural characteristic ensures that the organization functions as a whole. The following are the global corporate groups in Microsoft’s organizational structure

Geographic Segments. Microsoft Corporation’s corporate structure also involves geographic segments as the least significant characteristic. These segments are used to group operations in the company’s financial reports.

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