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While the managers at Microsoft certainly have the authority to provide immediate rewards for excellent performance, there is seldom a transaction-based leadership mindset used for control of groups. Instead, as managers and many senior technical staff members have stock options and vested stock grants the transformational leadership approach of seeing how their specific project can help to keep the company has proven to be far more effective.
The managing of knowledge and technology isn't completely optimized in Microsoft yet it has significant gains over competitors. First, the smaller teams and groups the high level of accountability serves as an effective means of control of knowledge transfer and technology use. Smaller teams also make for a higher tolerance for change and help organizations overcome resistance to change (Aguirre, Calderone, Jones, 2004). As a result, Microsoft has been able to stay agile and focused on market requirements as a result. The control function of management within Microsoft continues to focus on transformational leadership approaches to ensure each employee understands how their contribution matters to the entire company....
This, combined with the transparency of working in a small group, has made the control function actually become a source of innovation throughout the company. The findings of researchers on how the control function of management, when combined with smaller management teams can lead to innovation is significant for high tech companies (Miles, 2007). Lastly to overcome significant change and also ensure higher levels of control over knowledge and technologies, the ability to generate autonomy, mastery and purpose in a workforce is absolutely critical and essential (Aguirre, Calderone, Jones, 2004). By concentrating on smaller teams the control function of management in Microsoft is highly effective in making sure strategic tasks are accomplished.
References
Aguirre, Calderone, Jones (2004) -10 Principles of Change Management. Resilience Report, Booz, Allen Hamilton. New York, NY.
Alan Melkman. (2000). The 12 Simple Secrets of Microsoft Management: How to Think and Act Like a Microsoft Manager and Take Your Company to the Top. Long-Range Planning, 33(2), 275-276.
Raymond E. Miles (2007). Innovation and Leadership Values. California Management Review, 50(1), 192-201.
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