There are advantages to the shift to a more functional organization in terms of agility and efficiency. Microsoft may seek to increase coordination and collaboration between various product lines and divisions, decrease duplication of effort, and streamline operations by pursuing a more functional organizational structure. This could improve organizational integration and efficiency. Functional structures frequently provide more adaptability and agility in reacting to changes in the market and in technology. Microsoft may try to encourage creativity and adaptation by dismantling organizational silos and encouraging cross-functional teams. Sometimes, by removing redundant information and optimizing resource allocation, functional structures can result in cost savings. Microsoft can expect to save money by consolidating some tasks or simplifying procedures under the new framework.
Coordinating and integrating cultures is another issue that arises when a divisional structure gives way to a functional structure. Workers used to the divisional organization can object to the shift, which could cause problems with morale and cultural concerns. Workers could find it difficult to adjust to the new organizational structure and feel cut off from their former divisional identities. Although functional structure encourage cooperation within functions, they may also make it more difficult for functions to coordinate with one another. It can be challenging to maintain efficient coordination and communication between many functional departments, especially in a huge company like Microsoft. Over centralization, or the concentration of decision-making power at the top of the hierarchy, is a problem associated with functional hierarchies. This might make it more difficult to be innovative, make decisions more slowly, and react quickly to changes in the market.
In the end, the restructuring's success will depend on how well Microsoft handles these difficulties and takes advantage of the new organizational structure's potential benefits.
Read Also :-
Labels :
#Activity ,#Certifications ,
Getting Info...