Several organizational structures exist in the business world but which one is more effective and efficient? This question is faced by many business owners. "Structure defines responsibilities, relationships and communication channels in an organization." (Payne, 2007).The best way to determine which structure might work is by doing benchmarking analysis to see what other companies chose for their structure and why. "Strategy needs to match structure if the organization is to achieve a competitive advantage. Structure affects an organizations internal communications and controls. Strategy is influenced heavily by culture" (Payne, 2007). The following companies. Microsoft, TD Ameritrade, Inc and Dell, have very different structures and yet they all function effectively. Conducting analysis of them helps to understand why.
Microsoft is a company that produces a set of software technologies for connecting information, people, systems, and devices. After studying the website of Microsoft I came to the conclusion that this company uses a flat structure.
Reading about Board Committees, I've learned that Microsoft's Board has five committees an Antitrust Compliance Committee, an Audit Committee, a Compensation Committee, a Governance and Nominating Committee, and a Finance Committee, each of which is responsible for its group (division) companies activities, this helps me to conclude that this company uses a flat structure and its decentralized. Decisions are made within the division and reported directly to Board of Directors.
This company is a "virtual" for several reasons. Some of the reasons are Microsoft has offices world wide according to the Microsoft Worldwide Home page. It has offices in more than 90 countries ( I counted) and its customers can place an order over the internet, phone and by fax - in order for the company to be able to provide such services, it must have a network of outside specialists that all are linked and...