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Table of content:


Introduction 2
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
II.1 Compare the effectiveness of different leadership styles in different organisations.10
II.2 Explain how organisational theory underpins the practice of management ....................13
II.3 Evaluate the different approaches to management used by different organisations.15





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) .


+Informal Company: "Companies + Formal Company
that get the informal working with
their strategic and performance



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
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



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

per fifteen to twenty employees.

While FedEx group of performing
have a smaller span of control
with five or six employees per


+ Microsoft applies the role + FedEx




culture to the business, which organization. Fed Ex care about

Microsoft is a slow to change getting the job done.
+ 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



their a firmly trust foundation of their

managers (all the way up) and the customer.

company. (Malik, 2011).
This helps Microsoft to control +FedEx





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,





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


- 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

- 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)



- 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
+ 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).

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

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

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,

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 empowers the followers
to make the decisions. According to a
Senior Director at Seattle, WA,
Microsoft employee :empowers to
make decisions, excited about the
future (Anon., 2012)

+ FedEx is an organization that
appears to have an effective employee
relations communication system that
values, motivations, and empowers
Founder and CEO Frederick Smith


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.

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)

+ Microsoft is having a good

leadership style of affinitive- value
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,

+ 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 leadership in his track
record of successes and the ability to
Inspiring: enthusiastic, energetic, and
positive about the future are
accurate descriptions of how Mr.
Smith lives his life (Shetty, 2011)
effectively led FedEx to the success.
Smith has created to the employee an
environment where they feel its safe,
secure and possible to take risk and
become innovative.

Ballmer values his employees and

their works, believe that the success of
the company belongs to their credit.

+ The Companys core values and

created and all about employess,
expects every employee to work and
give 100% everyday, allows, supports
employees to lead to success.


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

2.2 Explain how organisational theory underpins the practice of management

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.


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.

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.

Structure approach



functional FedEx uses




structure company, which create structure. The company divided





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


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


also are belong to employees. So,

acknowledging since they focus FedEx management is






one about the people than products:

department. The business is also employees, customers, partner,

inflexible in making decisions. etc. Most of FedEx decisions and



Microsoft programs are relevant in the

management tends to focus more same purposes: to satisfy them.







Culture approach

Microsoft applies role culture to Task culture was applied to







This FedEx function. This culture

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
Microsoft to avoid many lost success. Because of the unstable
through wrong decisions but in





make the company slows to management, FedEx is more

change due to the action of flexibility business.

making the same decision all the

Leadership Approach

In order



their FedEx, in general, manage the


uses company by consults leadership

leadership of empowers. The style. FedEx values the employee

company lets their employees ideas




make the decisions. This style of carefully. The management are




the less tight, but there still bound

employees the confidence, and between



doesnt fear if their idea of managers, it becomes closer in




and contrast.



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.

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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