Table of content:

I. II. Introduction 2 Body 1.1 Compare and contrast different organisational structures and culture..3 1.2 How the relationship between an organisations structure and culture can impact on the performance of the business...6 1.3 Discuss the factors which influence individual behaviour at work 8

2.1 Compare the effectiveness of different leadership styles in different organisations.10

2.2 Explain how organisational theory underpins the practice of management....................13

2.3 Evaluate the different approaches to management used by different organisations.15 III. IV. Conclusion17 Reference.18

I.

Introduction

Microsoft and FedEx are two big companies in the world. Each company works on different aspect of industry. While Microsoft is a IT company then FedEx is a shipping company. Those two companies is one of the domination companies at the aspect they do. The aim of this paper is to show the relationship between organizational structure and culture between two companies and their different approaches to management and leadership. The outline of this paper will be followed by different tasks. The first task is to compare and contrast different organisational structures and culture. Next is to explain how the relationship between an organisations structure and culture can impact on the performance of the business. Then discuss the factors which influence individual behaviour at work. After that is compare the effectiveness of different leadership styles in different organisations. Followed by explain how organisational theory underpins the practice of management, and the final task is to evaluate the different approaches to management used by different organisations.

II. Body
1.1 Compare and contrast different organisational structures and culture

Fed Ex was the 73rd largest company ranked in the fortune 500 annual revenue lists in America (Fotune500, 2011). FedEx Corporation was established in 1971 by .Frederick W. Smith, known as Federal Express Corporation as a public limited company. With over 260,000 employees worldwide, FedEx provides its customer a portfolio of transportation, e-commerce and business services. The Company operates in four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services.

Microsoft was founded in 1981. The company is now under Steve Ballmer domination as CEO. It focuses on developing, licensing and supporting a range of software products and services. It also designs and sells hardware, and delivers online advertising to the customers. Microsoft has about over 94,000 employees and operates in 5 segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division (OSD), Microsoft Business Division (MBD), and Entertainment and Devices Division (EDD. Microsoft ranked at the 38th of top 500 biggest American companies (Fotune500, 2011) .

Microsoft Structure

FedEx

+Informal Company: "Companies + Formal Company that get the informal working with their strategic and performance imperatives, like Southwest Airlines or Apple or Microsoft, are tough to duplicate, and it's largely because they have an informal organization that works so well." (Katzenbach, 2010) + Flat Organization With its 30,000 employees and five hierarchical levels, Microsoft has a relatively flat structure (Hill, et al., 2009) + Flat Organization: Customer want to see FedEx as a flat organization- for example, they dont want to be transferred when they call (Struminger, 2005)

+ FedEx is a huge organization., Microsoft discussed all issues so easier for FedEx to control the openly and empowering their employee because of having a flat employees to keep a flat structure structure. in their organization. Span of control + Microsoft is a flat organization + FedEx has varies span of with a wide span of control. control. Some departments use

Having this kind of lair of narrow span of control but some management, Microsoft can others use a wide span of control:

reduce unnecessary cost and focus In the customer service agent, on improving others company FedEx has a lair of management elements. per fifteen to twenty employees. While FedEx group of performing have a smaller span of control with five or six employees per manager.

Culture

+ Microsoft

applies

the role +

FedEx

is

task

culture

culture to the business, which organization. Fed Ex care about Microsoft is a slow to change getting the job done. company. + Microsoft also has the culture of + FedEx aims for the safety and caring about the employee. secure of customers package by

Every year, every employee of creating many programs with the Microsoft is asked to fill out a mission of delivering the package detailed 360-degree review of safety on time. FedEx has created themselves, their team, their a firmly trust foundation of their

managers (all the way up) and the customer. company. (Malik, 2011). This helps Microsoft to control +FedEx has the culture of

their worker performance better innovation. Trying to achieve, through the rate and the judgment satisfy all the customer needs and of the employee. wants. It committed a creative,

+ Fear culture also exists in develop, and improve of products, Microsoft; create the feeling of ideas, and services to the

fear to employees when it comes customers. to work and competitive.

Table1: Microsoft and FedEx structure culture, and span of control

1.2 How the relationship between an organisations structure and culture can impact on the performance of the business 1.2.1 Microsoft: - Structure: Microsoft is the flat organization, all the business decisions are made by the C.E.O of the company which makes the decision having less risk and more secure the financial of the business.

- Culture: Steve Ballmer runs the company with the fear culture. His way of making decision and running the company makes the employee scare of giving idea and presenting them, which turns the company become an uncreative business Prior to joining Google, I set up a meeting on or about November 11, 2004 with Microsofts CEO Steve Ballmer to discuss my planned departure.At some point in the conversation Mr. Ballmer said: Just tell me its not Google. I told him it was Google. At that point, Mr. Ballmer picked up a chair and threw it across the room hitting a table in his office (Paczkowski, 2008)

1.2.2 FedEx: - FedEx is the task culture company. FedEx beliefs that if the employees are taken care of, they will reciprocate with the impeccable service the customer demand. This lead to the increasing in FedEx financial performance: + Create high brand awareness with the imagines of high quality service, reliability and speed.

+ Turning to relationship marketing, work closely with its customers and emphasizes maintaining long-term customer. FedEx will use its portfolio of services to tailor a solution for Amazon as we did in 2000 when we delivered 250,000 Harry Potter books to home on a Saturday, the same day books were first available in stores (Glenn, 2003)

- FedEx is also an innovation culture company: FedEx Corporate Services announced that it is working with Motorola, Inc., to develop FedEx PowerPad, a Microsoft Windows-powered pocket PC that will provide FedEx Express couriers with wireless access to FedEx's network. (Memphis, 2002). With the developing of the packaging and delivering process, also the customer approach system, FedEx continuing develops. Our earnings per share increased 40 percent, and annual revenues exceeded $42 billion, a 9 percent increase (W.Smith, 2012).

1.2.3 FedEx culture and Microsoft culture: Overall, FedEx culture is more efficient than Microsoft culture. Even though Microsoft and FedEx are both have the structure of a flat organization. FedEx culture has adapted to the global economy quite successful but Microsoft culture is not likely. Smith has led FedEx from the loss company to be successful businesses in the market while Microsoft is standstill; it does earn profits but slow in develop. FedEx The different in the company culture has led to different in business performance.

1.3. Discuss the factors which influence individual behaviour at work Human behavior is complex and every singer person has different life style, hobbies, characteristics, etc. Its hard to predict the behavior of a person, the challenge and the task of an organization is to figure then use each person in each situation appropriately so employees

become more efficient and effective. By learning it, business can find out what are the factors that influence individual behavior at work such as age, gender, ability, personality, attitude, etc.

Age: Though age doesnt reflect the productivity of employees, whether its professional or non-professional. Younger worker though lack of experience but have the health advantage.

Gender: The different in gender doesnt affect the work performance. The ability of solving the problem, analyzing skill, competitive attitude between two genders isnt too different.

Personality: The individuals personality is also one of the determining factors that affect the individual behavior, which affects the organization as a whole. Some of the personality factors that may influence the organizational citizenship behavior include optimism/pessimism, positivity/negativity, work/social, and other orientations that may affect the way in which the organization functions. (Penner, Midili, & Kegelmeyer, 1997)

Attitude: The attitude of the individual may influence organizational behavior, particularly in individuals that hold responsibility for creating the corporate culture, such as the top management (Judge& Robbins, 2006). The attitude affect the business performance, when a manger or an employee let their emotion, their attitude affect the work. The results could either be good or bad.

Cultural: Cultural differences are likely to have a large effect on organizational behavior. It influences the expectations of the employees on things like required benefits, day offs and the potential that a given employee will be laid off or fired. If the cultural differences

within an organization regarding these issues are not solved, it may affect the behavior of the organization.

Values and ethics: One of the biggest determining factors of organizational that affect the individual behavior is the values and ethics of a person involved in the organization. The values and ethics of the individual are in many ways similar in regard to their effect on the organization. When a person value and realize what they are doing and how important it is, they will have self-respect for not only themselves but also for the job.

There are various factors that can affect individual behavior at the organization. Those factors are important in deciding the success, the ability of a person as well as the business. It affect directly on the performance. Microsoft values the personality and attitude of individual towards their jobs. According to Microsoft, employees are the most value things of their company. While FedEx is values most is how employees value their jobs. FedEx believe its important for employee to realize what Ive been doing.

2.1. Compare the effectiveness of different leadership styles in different organisations Leadership is the inspiration and mobilization of others to undertake collective action in pursuit of the common good. (Crosby & Bryson, 2005). The leadership will help the leader develop the

skill of the ability to motivate the employee towards a common goal. The leadership and management style is different from each other:

Diagram 1: Characteristic of being a leader and manager.

Each type of company uses each different management and leadership styles:

Microsoft

FedEx

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Management styles

+ Microsoft empowers the followers + FedEx is an organization that to make the decisions. According to a Senior Director at Seattle, WA, Microsoft employee :empowers to make decisions, excited about the future (Anon., 2012) Microsoft also built up the Employee Financial Education Program to their employee to provide objective information to help them make informed decisions and create a suitable financial portfolio. appears to have an effective employee relations communication system that values, motivations, and empowers employees. Founder and CEO Frederick Smith determined to make employees an integral part of the decision-making process, due to his belief that when people are placed first they will provide the highest possible service, and profits will follow (FedEx, 2012) + FedEx under Fred Smith is Democratic leadership style. He clearly proved his four attributes: honesty, forward-looking, competent, and inspiring. The top four attributes are demonstrated by Smith. Honesty: Smith is truthful, ethical, and principled in all his dealings. Forwardlooking: he had the ability to envision the future from his early college days. Competent: Smith demonstrates competent leadership in his track record of successes and the ability to get things done. Inspiring: enthusiastic, energetic, and positive about the future are accurate descriptions of how Mr. Smith lives his life (Shetty, 2011) +With the leadership, Smith effectively led FedEx to the success. Smith has created to the employee an environment where they feel its safe,

Leadership styles

+ Microsoft is having a good leadership style of affinitive- value people, under Steve Ballmer management. After a thorough examination of Microsofts transition during the last 11 years under Ballmers leadership, it is clear from a long-term investment perspective that Microsoft has dramatically improved as a business and especially as a potential investment. (Mintzmye, 2011). Ballmer values his employees and their works, believe that the success of the company belongs to their credit.

+ The Companys core values and decision-making processes were created and all about employess, expects every employee to work and

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give 100% everyday, allows, supports secure and possible to take risk and employees to lead to success. become innovative.

Table2: Microsoft and FedEx leadership and management style

Both organization leadership and management style have common and different. Theyre both empowerment their employee to make decision which create their employee the feeling of much likely to develop their idea to create successful products, bring profit to the business. However, the leadership between two companies is different. Ballmer mostly focuses about people, about his employee. At Microsoft, part of the way they inspire their workers is by investing the tools and technologies that really tell them theyre the business number one assets which might make them feeling more confident and work more effective, however, it could cost them selfsatisfaction and arrogant in work too. Fred Smith, on one hand, empowered his employee to make decisions but still got control of the business. On the other hand, created discipline to both his employee and himself, being truthful and gained respect from worker by show them his ability. This make FedEx become an innovative company with a creative, positive working environment.

2.2 Explain how organisational theory underpins the practice of management

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Organization theory is the analysis of organizational designs and the relationship of organizations to their external environment and also demonstrates the employees behavior. Organization theory can provide the business the solution to deal with changes. FedEx as many other company, has applied many organizational theory to the management of the company in order to achieve great successes. FedEx has applied Taylors Scientific Management to the organization activities. The company installed the Portfolio Server, training their employees, improve their job performance. Lately, FedEx Achieves Worldwide Employee Training Material Consistency with Portfolio Server to commend the company for its achievement in personal training. Fayols Classic Administration is also being applied by FedEx; FedEx organization has division of work in the organisation process, the company has 5 different departments to do different task in different field of the business.

One thing about Bureaucracy which FedEx is using is clear role in business. Work is to be done by specialists, and people are organized into units based on the type of work they do or skills they have. What FedEx do is they set up clear role, clear task for each and every employee so they wont be confuse at what they are doing and what they supposes to do.

FedEx also applied the Mayos human relations approach. FedEx let their employees make the decisions. FedEx encourages its employees to be innovative and to make decisions that advance quality goals and also provides employees with the information and technology they need to continuously improve their performance. (Berman, 2010)

oAnother approach that FedEx use is Herzbergs neo-human relations approach. It suggests that workers are motivated to satisfy basic needs. Organization needs to satisfy the employees about their jobs to motivate them in work and hold back their loyalty. In the recent reviews of FedEx make by their employees, FedEx was a satisfied company to work with according to their employees judgments.

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Diagram2: Employee reviews about FedEx

FedEx is the market-driven company. FedEx responses quickly to the market force. FedEx built up the Healthcare and Life Sciences Industries to provide the requirement of better service in the market. FedEx organization is always has the positive feedback about learning new things and improve the company. FedEx old system caused trouble and conflict between employees. Realizing that, FedEx renew their system sacrifice the employees, motivate them, and create the bonding between employees.

With the flexibility of turning theories into action of FedEx has helped the business to conquer the customers as well as their employees, partners, etc. Those are what support FedEx to standstill and develop greater and greater.

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2.3: Evaluate the different approaches to management used by different organisations Different company has different style of approaching the management, include FedEx and Microsoft. The different of the way to company approach is through the organizational structure, culture and leadership approach. FedEx Structure approach Microsoft is the Microsoft functional FedEx uses the divisional

structure company, which create structure. The company divided a better, clearer road for the organization to departments

employees to achieve the final according to its output which goal. However, it also creates allows FedEx to focus more conflict between departments about their result. FedEx is

inside Microsoft resulted to the flexible and quick in changes narrow perspective of manager. among the market. The efforts Managers are also are belong to employees. So,

acknowledging since they focus FedEx management is more on only one side, one about the people than products:

department. The business is also employees, customers, partner, inflexible in making decisions. etc. Most of FedEx decisions and To make up, Microsoft programs are relevant in the

management tends to focus more same purposes: to satisfy them. about the product of the

business.

Culture approach

Microsoft applies role culture to Task culture was applied to its management make style. This FedEx function. This culture culture the managing could make FedEx management

decisions of Microsoft towards faced many difficulties, or it of not taking risks, which helps could gain FedEx many greatest

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Microsoft to avoid many lost success. Because of the unstable through wrong decisions but in the decision making of make the company slows to management, FedEx is more change due to the action of flexibility business. making the same decision all the time. Leadership Approach In order to manage Microsoft their FedEx, in general, manage the uses company by consults leadership and considers them employees,

leadership of empowers. The style. FedEx values the employee company lets their employees ideas management brings to make the decisions. This style of carefully. The management are the less tight, but there still bound employees Management and can employees the confidence, and between developing was wrong and contrast.

doesnt fear if their idea of managers, it becomes closer in unsuitable which could cost lots choose whether the idea is of money when it was. The suitable to use or not but still management becomes looser and confirm the employees the idea less bounding between managers of they are being respected. and workers.

Table3: Different approaches to management There are differences in the way Microsoft and FedEx way of approaching. Those have led to the differences in the management of two companies and their business performance. Even though, in both company there is just a bit of adjustment but it can create a whole new results.

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III. Conclusion

In conclusion, FedEx and Microsoft are both developing company, however, there are differences between the two companies way of developing and granting success. As the result, it creates the different between the performances of two organizations. FedEx as overall is a highly developing organization under Frederick W. Smith domination. With his great talent of controlling and managing the company, FedEx has been making great profits for the last several years. Meanwhile, Under Steve Ballmer domination, Microsoft performance is slowly increasing. Its the different between the styles of running the company has created the different in two business achievement.

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