External/internal Factors of Management

External/Internal Factors of Management

in the Microsoft Corporation

When the company name, Microsoft, is heard, it is automatic to think of the industry leader in software program technology. That was until the company settled in court on November 12, 2002, with a consent decree forcing them to allow other companies to use their program information to make competitive company programs compatible with Microsoft programs already on most desktops (Settlement Program, July 8, 2006). The Microsoft Corporation must now focus organizational goals towards diversity, new technology, and innovation to stay on top. The following will discuss how Microsoft uses the four functions of management with some of the external and internal factors that affect their company on a day-to-day basis.

Diversity

"At Microsoft, they believe that diversity enriches their performance and products, the communities where we live and work, and the lives of their employees (Diversity at Microsoft, July 7, 2006)." Microsoft has such unlimited potential simply because they combine such powerful minds from many different cultures and backgrounds (Pride in Diversity, July 6, 2006). Diversity also provides a better chance for a company to become global, thus serving hundreds of millions of customers around the entire world. Microsoft employs people from more than 135 different countries and regions (Inside Microsoft, July 6, 2006). To keep this company so diversely successful, it is pertinent that all four functions of management are practiced.

Planning

Planning is the key element of the four management functions for this company. The diversity in this company brings prosperity with fresh ideas and innovative problem-solving techniques. This makes plenty of room for ingenious strategic planning. The creativeness from the diverse minds of employees makes it unproblematic to explore the current circumstances, decide how it comes into play for the future, seek out any complications or conflicts, choose the correct strategies, and configure the right resources needed to achieve the company goal. Thomas Bateman and Scott Snell, authors of Management: The new competitive landscape, state that, "Plans set the stage for action and for major achievements (2004)."

Organizing

In order to keep the entire diverse Microsoft staff mutually effective, organization is an important skill that must be developed throughout the company. Organizing is accumulating and learning how to synchronize information to achieve an ultimate goal. Without organization, it is difficult to delegate the responsibilities of certain duties to the right people. With so much diversity, complications may arise in dividing the employees into the correct working teams. Not being able to delegate and divide may result in the company achieving success that is below their standards. An organization cannot be a forceful competitor if that company has minimal and un-effective outcomes due to poor organizational skills.

Leading

Microsoft is such a huge, well-built company that it is essential to have an immense leadership team. Diversity in the employees means that there are various natures of leaders. It is important for the company to pick good leaders to be able to motivate the employees to perform at their highest potential. Bateman and Snell use the following definition when discussing management functions, "Leading means directing, motivating, and communication with employees, individually and in groups (2004)." This requires everyday contact, guidance, and inspiration for the employees. Good leaders of an organization require employees to contribute his or her ideas and encourage brainstorming to develop new ideas. These new ideas could promote new dreams, which could lead to new goals, which could potentially have a better outcome for the company as a whole.

Controlling

Controlling ensures the ultimate goals that the company planned for will be met. Companies can be very organized, have an excellent plan, and have leaders that are over qualified. However, if these things are not monitored, the organization and plans can be completely forgotten. Diverse minds mean diverse working skills and ethics. Controlling makes it possible for the company to operate together as a whole to achieve their goals in effective ways. With such diversity, control needs to be the genuine importance for the company to successfully function. No control in a company like Microsoft means challenges in the end.

Technology

The use of technology at Microsoft has made the company unchallenged in both the business world and information systems. Looking years ahead is what sets Microsoft apart from its competitors. Management functions are used throughout the company in order to stay competitive, due to the ever-changing demand for new technology.

Planning

Since its emergence in the mid-1970s, Microsoft has continually used research to develop new, more user-friendly computer technology. Most people associate Microsoft with the 1990 release of Windows 3.0, but Windows in reality made its first appearance seven years earlier, in 1983 (Windows History, July 9, 2006). Windows 1.0 allowed users to use many applications at once, rendering MS-DOS obsolete. Home-based computers were not very popular in 1985, but by the time Windows 3.0 was released in 1990, computers were impacting daily life more often. Microsoft's user-friendly programs had innovated computer programs forever but did not sit idly by. In 1991, Microsoft created its own computer-science research organization, a first in the software world (Windows History, July 9, 2006).

Organizing

Looking 10-15 years ahead, Microsoft research was able to focus on the future, rather than be bound by current product cycles (Windows History, July 9, 2006). Currently, Microsoft's research projects range from inventing more intuitive, productive ways of interacting with computers to improving programming languages, enhancing software development tools, and applying sophisticated mathematical theories to as-yet-unsolved computational challenges (Microsoft Research, July 9, 2006).

Leading

Using technology to make computers easier for the public to use has made Microsoft billions of dollars. By 1995, Microsoft Windows 95 was released, and took the world by storm. Microsoft's new program had consolidated computer programs overnight. The computer software market would never be the same.