Microsoft is one of the richest and most successful companies in the world. Even more important from a perspective of human resources, is the fact that Microsoft is an employee-organization. While other grassroots organizations to improve their success manufacturing techniques, or better technology, Microsoft’s success is based on the effectiveness of their employees. Basically, Microsoft and their personal view of the importance of their staff. This focus on employees may in future extend to all organizations. Microsoft then worth studying as an example of best practice in human resource management.
This study will focus on the Microsoft employee management methods as well as their way of recruiting and retaining staff. Looking at how Microsoft operate, there is no opportunity for other organizations to examine how they manage their employees and to consider whether their employees are valued.
First, the study will provide information on human resources practices at Microsoft. Secondly, the study will examine these practices in order to show why they are effective.
HUMAN RESOURCES MANAGEMENT IN MICROSOFT
Recruitment and Selection – In the Beginning
Bill Gates is the engine of Microsoft since the start of the company that he felt very smart in hiring staff for intelligence about the experience, “a preference for hiring highly intelligent, not necessarily with experience, new college graduates start date for Microsoft to days when he and Paul Allen co-founder of recruitment of people who knew brightest of the school – their “smart friends” (Bartlett 1).
At the outset it was realized that Gates and his employees were their greatest assets, as demonstrated by his appointment among them is the efficiency of our developers that determines our success and take our 20 best people away, and I’ll tell you of that Microsoft would become an unimportant company “(Bartlett 2).
Recruitment strategies of Microsoft to reflect his philosophy. We requested the smartest and most driven people and did so aggressively, as Steve Ballmer said that “every time you perform a kick-ass man, get him” (Bartlett 2).
Recruitment into the sourcing strategies including top people from the elite educational facilities, such as Harvard, Yale, MIT, Carnegie Melon and Stanford. Microsoft recruiters who visit these universities “in search of the most brilliant, driven students” (Bartlett 2). The experience was not necessary and was in fact preferred that new employees had no experience.
Once selected, these students had to undergo a thorough selection process. The first stage was an interview, “at least 3 and sometimes up to 10, Microsoft employees” (Bartlett 2).
These interviews were not designed to test knowledge, but to test the “thinking processes, problem-solving abilities, and work habits” (Bartlett 2). Interview technique is described as mainly focused on solving problems with difficult situations posed by interviewers. To test the composure of the candidates and their creative problem solving, unexpected questions were also included. Two examples of these questions is “the number of times the person uses the word” the “one day” and “describe the perfect TV remote control” (Bartlett 2).
After the interview, the interviewers that email its decision on the interviewee with the words “rent” or “not free” and comments on the issue, the future of the interviewers and then use the feedback to further investigate issues had met with any of the (Bartlett 3). This interview process was essentially a “make or break” in which respondents were pushed to their limits, if they survived and prospered this also mean that prosper and survive in the Microsoft work environment.
After this series of interviews, if the majority of respondents favored the interviewee finally reunited with her director and manager of the latter would be a rental and not a decision to rent. The last step is an interview with someone outside the recruiting group, this person is so independent and impartial in their views. This person is understood as a final check that the person that Microsoft is a good person and also to prevent the hiring managers the wrong people because they have a need to fill a certain position (Bartlett 3).
The importance of recruiting the right people is also shown in the Microsoft ‘n minus 1 strategy which means that fewer people are employed, which are mandatory. This recruitment policy that reinforces the right of people is more important than just hiring to fill a position.
Recruitment and Selection – later stages
Microsoft kept the same basic principles, as they expanded, but had to change their methods when the number of new employees must be original and not just in academia.
The hiring practices continued to be active rather than passive, with Microsoft “head hunting” the best staff. This is personal, control and engagement of others for the recruitment of over 300 experts, “once someone has been identified as” hard core “- a euphemism for the kind of Microsoft of talent and those seeking driven – the search was unrelenting, if subtle. Calling in discrete intervals, discussion in the industry conventions, invitations to formal dinners – recruiting the team members used every means possible to maintain open lines of communication “( Bartlett 9).
Microsoft has also seized opportunities to break, as company layoffs, an example is the size of AOL, “when we heard AOL was the reduction of operations of Netscape in the valley, which brought together a team to identify the best talent and go knocking on the doors “(Bartlett 10).
Loyalty and employee satisfaction
Microsoft has tried to address the needs of its employees from the beginning. Recognizing that most employees were at the university, the company operates as a Microsoft school. Former human resources director described this saying, “How are young children who had never been away from home – or only with respect to the university – comfortable? We wanted to maintain the atmosphere at work a little known, and also ensure that gave them a sense of social belonging “(Bartlett 4). This environment also includes all employees who have their own office that they are free to decorate as they want and the provision of subsidized food and drink (Bartlett 4).
Employee satisfaction is also offered the opportunity for growth, “also saw the development through the promotion of horizontal transfers, and employees were encouraged to develop themselves changing jobs” (Bartlett 6).
It should be noted that some employees leave the organization by dismissal, with the majority leaving voluntarily (Bartlett 10). Concern about high rates of attrition in the 1990s led to studies to find the cause of the problem and to apply the changes. One major change was the requirement for top management to lower levels trainer to assist in their development by doing so. This is known as “the delivery of the keys” (Bartlett 11). This is important because it allows people an opportunity to develop further. Also central to the changes is a new approach to the empowerment of individuals and the definition of clear objectives. These changes were designed to increase employee satisfaction and commitment to the organization, keeping the spirit of small business started.
Employee Rewards
Gates in the early days was a firm believer that employee ownership is essential in increasing the motivation and retention of employees, rather than high-wage jobs that offer employees equity (Bartlett 7). Once listed, the continuation with the company that offers stock options to employees based on performance.
This is fundamental to the relationship between individual performance and reward, with semi-annual performance reviews linked to salary increases, bonuses and stock options (Bartlett 7). Performance goals are measured against the employees were more specific and measurable performance targets these reduced SMART: specific, measurable, achievable, results-based and time-bound (Bartlett 2). The formal review system also includes the most common assessments by managers to ensure no unexpected deviations. The system also includes the process of evaluating employees themselves, these self-evaluations after being sent to the director who makes his own assessment. The employee and manager meet to discuss the review (Bartlett 8).
The stock option awards are based on the employee is considered a long-term assets of the company and the award of this base. This is an important symbol of the commitment of Microsoft to keep good employees.
ANALYSIS OF THE HUMAN RESOURCES MANAGEMENT IN MICROSOFT
Recruitment and Selection
It is reported that companies should be aware of where to go in the future and how the current human resources refers to this (Noe et al. Ch.5).
As we have seen Microsoft use different contracting practices that many organizations based on their need for the best people. Microsoft actively recruit suitable employees and focus on the type of person that kind of skill level. In “Human Resource Management: An experimental approach” (Russell and Bernadine) of human resources is described as an important source of competitive advantage. Microsoft uses the human resources for competitive advantage, basing its success on having the best people in the industry and inspire to be the best. This is what leads to Microsoft’s recruitment practices only. Based on the importance to take the best people in the industry, its aggressive ‘head hunting’ techniques are justified.
What is most important here is that the hiring practices of Microsoft to meet their manpower needs. It is an important signal of the approach of Microsoft, with their actions towards their ultimate goals.
Some important factors to consider in recruitment, including the recruiter should be of the same functional area and that candidates should not be deceived about the negative elements of a job (Noe et al. Ch.5). The interviewing process at Microsoft reflects this with the employee being interviewed by the director. The recruitment process also goes beyond informing the employee about the negative aspects, rather than the recruitment process in fact evidence that the employee on the negative aspects, putting them under the same kind of pressure that would be low work. This method is effective, as can be ascertained that if the employee is successful in the selection process, which will be a success within the organization.
Motivation of employees
McNamara said that “the key to supporting the motivation of your employees is understanding what motivates each of them.” The important thing about Microsoft is that they employ people who are specifically motivated by the environment they provide. Not employ qualified staff and expect them to be motivated to employ intelligent and driven people and the environment and give them the opportunity to develop beyond its current level. The match between employee and organization is important for motivation and this is what Microsoft says.
A recent study published in the Journal of Applied Psychology, reports that employees who work on projects are more effective when their goals are related to the objectives of the team rather than individual goals (Kristof-Brown). Microsoft says that the goals of the organization is through its strong culture and clear by employees are aware of what is required of them.
Motivation can be described as a work environment that meets individual needs through efforts that organizational goals (Schermerhorn 395). Microsoft achieves its objectives by incorporating into their programs of human resource management. The people and systems within the hiring organization serves to motivate people the kind of values that Microsoft.
Motivation of employees can also be related to the Maslow hierarchy of needs theory. This theory has the highest level of needs theory and self-actualization needs, which is a need for people to be self-enforcing. It describes how to achieve this is to “provide people with opportunities to grow, be creative, to acquire the training and the challenges and progress” (Daft 530). This is exactly what Microsoft provides for its staff and also exactly what we expected, to be the best they can. An employee of Microsoft describes this by saying “the only way to accomplish here is to push the envelope of what can be done. Every day we try to do better. Working smarter. Work harder. Innovar more. The people are 100% focused on carrying out its work as successfully as possible (Bartlett 5). The link can also be seen here between the kind of people who are employed and what is expected. Microsoft hires the best people for these people to achieve auto-update that needed to be pushed harder than most and gives a better chance of getting a majority.
Employee loyalty and satisfaction
We have seen that the empowerment of employees is one of the new approaches that are used by Microsoft. It should be noted that the empowerment of workers requires a culture that reflects this (Billsberry 292). For Microsoft, we see that a change of culture is indeed the reasoning behind the introduction of empowerment, suggesting that the change and will be considered a success.
Employee loyalty and satisfaction is also the assistance of Microsoft’s consideration of its employees. We have seen that in the early days the company consisted largely of young graduates and a company culture built around the needs of this group of young graduates. This process has continued, with Microsoft trying to always meet the needs of their employees.
The latest attempt is to provide more opportunities for younger employees, because they have older workers coach them.
Three aspects of the tasks that affect job satisfaction are job complexity, the degree of physical effort and the perceived value of the job (Noe et al. Ch.10). Microsoft handles this by providing highly complex and require high performance, ensuring the perceived value of the task is high. This high value is communicated through the culture of high performance of the company maintains.
This problem also can be analyzed in terms of an employee of the function. Three factors associated with the roles: the role ambiguity, role conflict and role overload (Noe et al. Ch.10). Role ambiguity is kept low by Microsoft because of the consistency in culture and what is required, the role conflict is also kept low. Role overload remains high, with employees pushed to their limits. In most organizations, this would be a concern, but Microsoft is aware of this means that employees who deal specifically reacts well with role overload.
Employee Rewards
In “Ideas that will shape the future of Management Practice” (Böhler, Luthans, Hodgetts and Slocum) of human resources is described as the way forward that will be argued that a more mature articulation of the importance of people as only one company a sustainable competitive advantage. The change is described as giving high rewards for high performance with a focus on partnership.
As we have seen, Gates acknowledged the importance of their people from the outset and this is reflected in the reward systems that not only rewards for current achievements, but the rewards to people that are considered valuable future assets of the company. This can be seen as an excellent example of partnership in care, which are seen as valuable to the company are rewarded with shares increasing in value, even as one who helps the company in moving forward.
Important to the reward system is also the fact that there are two paths available rewards, one for technicians, following the route and one for those following the route of administration. The skills of employees can be divided into three areas: conceptual skills, human skills and techniques. Normally, increasingly conceptual skills and technical expertise that are required at least one moves up the corporate ladder (Daft 15). Microsoft is a company valuation of expertise, due to the nature of your product. In most organizations, employees with conceptual skills would be rewarded by moving up the corporate ladder, while those with technical skills, not before. Microsoft, however, offers two advancement path, allowing people with skills to move forward as technical experts, and with the conceptual skills as managers in advance.
Reward systems are an important part of organizational culture, communicating to employees what is valued by the organization (Robbins, Bergman and Stagg 84). By having these two reward systems, Microsoft is communicated effectively to both sets of skills are valued. This is also an important sign of the consistency of Microsoft. Recruit people to the technical capacity and not as rewarding for those who would be dissatisfying to employees.