business management emer

8/23/2019 Business Management Emer

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Title page

Assignment Title

Student Name

Tutor Name

Submission Date

Table of Content


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Aim


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My aim is to investigate and analyse the Human Resource

Department of Microsoft. I will investigate how Microsoft recruit and select

their staff, what are the methods to train develop and how Microsoft is

monitoring staff performance.

Methodology

In gathering the information I mainly relied on the Internet

to formulate this report. The various search engines to collect the

information I needed for the report were:

Microsoft w eb si te w as t he m os t i mp or ta nt s ou rc e o f

in fo rmat ion. The website also had an archive of compa ny news

w hi ch g av e m e a c le ar p ic tu re o f t he M ic ro so ft H um an

Resource Pol icy.

Internet search engines (Google, and MSN) to gather information

related to Microsoft Company.

Another method I used was a direct contact via e-mail with Microsoft HR

Department.

Company Overview of Microsoft Incorporated

Microsoft Corporation is an American multinational software

corporation that develops, manufactures, licenses, and supports a wide

range of products and services related to computing. The company was

founded by Bill Gates and Paul Allen on April 4, 1975.

Microsoft is the world's largest software maker measured by

revenues. It is also one of the world's most valuable companies.

Microsofts success comes from an effective workforce. The Company
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Computinghttp://en.wikipedia.org/wiki/Bill_Gateshttp://en.wikipedia.org/wiki/Paul_Allenhttp://en.wikipedia.org/wiki/List_of_the_largest_software_companieshttp://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalizationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Computinghttp://en.wikipedia.org/wiki/Bill_Gateshttp://en.wikipedia.org/wiki/Paul_Allenhttp://en.wikipedia.org/wiki/List_of_the_largest_software_companieshttp://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization


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recognises its staff as its primary intellectual source. One argument in

saying this is that Microsoft provides various benefits and plans in a bid to

retain them. For many people, Microsoft is considered the best place to

work. In 2011 Microsoft was awarded with the number one position in theBest Multinational Workplaces in Europe ranked by great places to work

for.

Microsoft USA has a workforce of about 90,000 employees

worldwide, and a total revenue exceeding $16.43 billion. Employees find

their work personally challenging and work with cutting edge technology.

Facilities are state of the art and up to date this is becausethe company

believes in providing its employees with whatever tools and environment

they need to achieve the best result possible.

A picture of the Commons at the Microsoft headquarters in Redmond, WA

What Human Resources Management is?


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Human Resource Management (HRM or simply HR) is the

management of an organization's workforce, or human resources.

Human Resource Management is responsible for the:

attraction

selection

training

assessment

and rewarding of employees

In addition the Human Resource Management has the role to ensure

compliance with employment and labour laws.

Human Resource Management is based on ideas and techniques

developed to raise to a higher degree workforce motivation, productivity

and performance.

The HRM model highlight:

the need to search for new ways of working

the central role of managers in promoting change

the treatment of workers as individuals rather than part of a

collective workforce

the encouragement of workers to consider management as

'partners' rather than as opponents - 'us and us', rather than 'us and

them
http://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Employer_brandinghttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Training_and_developmenthttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Remunerationhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Employer_brandinghttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Training_and_developmenthttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Remunerationhttp://en.wikipedia.org/wiki/Labour_law


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Introduction to Human Resource Department of the Microsoft

Microsoft USA operates an anti-bureaucratic organizational structure

which gives employees the freedom to take risks and grow.

The performance culture model is what is successfully practiced at

Microsoft USA. A performance culture is one that up holds accountability

and measurement promotes collaboration and improves performance.

Progresses towards achieving goals are tangible, goals and objectives are

aligned with the organisations strategy and individuals know which resultsthey liable for.

In a performance culture human resource management

concentrates on increasing employee productivity by focusing more on

business problems and using knowledge in people management as a toll

towards solving these problems. This results in exceptional people

practices developing into a continued competitive advantage.

Organisational Chart of the key people working in Human Resources

Department Microsoft Incorporated USA


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The Human Resource Department of Microsoft has 9 people. The Director

of Human Resources coordinates the activity of HR Department. The

Deputy Director of HR Manager has responsibility for all of the functions

that deal with the needs and activities of the organization's people

including these areas of responsibility.

Recruiting & Selection

Training & Development

Organization Development

Communication

Performance Management

Coaching

Performance Appraisal

Salary and Benefits

Team Building

Employee Relations

Leadership
http://humanresources.about.com/od/recruiting/Recruiting_Employee_Recruitment_Recruiting_Talented_Employees.htmhttp://humanresources.about.com/od/training/Training_Development_and_Education_for_Employees.htmhttp://humanresources.about.com/od/development/Change_Management_Organization_Development_Culture.htmhttp://humanresources.about.com/od/interpersonalcommunication/Communication_Email_Newsletters_Meetings_Presentations.htmhttp://humanresources.about.com/od/performancemanagement/Performance_Management_Evaluation_Review_Improvement.htmhttp://humanresources.about.com/od/coachingmentoring/Coaching_Mentoring_Consulting_Learning_Organizations.htmhttp://humanresources.about.com/od/salaryandbenefits/Salary_Benefits_Variable_Pay_Bonuses_Profit_Sharing.htmhttp://humanresources.about.com/od/involvementteams/Team_Building_Employee_Empowerment_Employee_Involvement.htmhttp://humanresources.about.com/od/legalissues/Policy_Samples_Job_Descriptions_Employment_Law_Employee_Relations.htmhttp://humanresources.about.com/od/managementandleadership/Management_Leadership_Business_Strategy_Small_Business.htmhttp://humanresources.about.com/od/recruiting/Recruiting_Employee_Recruitment_Recruiting_Talented_Employees.htmhttp://humanresources.about.com/od/training/Training_Development_and_Education_for_Employees.htmhttp://humanresources.about.com/od/development/Change_Management_Organization_Development_Culture.htmhttp://humanresources.about.com/od/interpersonalcommunication/Communication_Email_Newsletters_Meetings_Presentations.htmhttp://humanresources.about.com/od/performancemanagement/Performance_Management_Evaluation_Review_Improvement.htmhttp://humanresources.about.com/od/coachingmentoring/Coaching_Mentoring_Consulting_Learning_Organizations.htmhttp://humanresources.about.com/od/salaryandbenefits/Salary_Benefits_Variable_Pay_Bonuses_Profit_Sharing.htmhttp://humanresources.about.com/od/involvementteams/Team_Building_Employee_Empowerment_Employee_Involvement.htmhttp://humanresources.about.com/od/legalissues/Policy_Samples_Job_Descriptions_Employment_Law_Employee_Relations.htmhttp://humanresources.about.com/od/managementandleadership/Management_Leadership_Business_Strategy_Small_Business.htm


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Recruiting & Selection

Recruitment is attracting candidates and using various avenues to

source for applicants while selection is sifting through applications and

matching applicants to the position that is to be filled.

The recruitment strategy at Microsoft USA is usually aggressive and

favours their philosophy. Initially the belief was to recruit the most

intelligent students from elite schools. This meant that most recruits had

no experience and this was preferred. Microsoft USA uses avenues such

as career fairs, over 300 recruiting consultants, internal recruitment,

online applications and taking advantage of layoffs in the industry to find

new talent.

A successful applicant is usually sent an email informing them that they

have been shortlisted and invited for an interview. This initial email will

contain 15 questions which range from easy to difficult depending on the

position being applied for. Once the applicant successfully replies with

answers and confirmation of the date, Microsoft USA will reply with a

scheduled time for a phone interview.

The phone interview is usually informal and lasts between 30- 45 minutes.

If the applicant is successful at this stage he will be contacted later with a

schedule for a round of face to face, on site interview day. Depending on

the position being applied for the interview day can consist of 4 6 rounds

of interview. The selected recruits are usually grouped at the beginning

then eliminations occur at every stage of the interview.

This selection process focuses on problem solving skills, thought

processes and composure. It tests the recruits ability to handle pressure.

It explores the recruits creativity and analytical skills and little on

technical abilities.

At the end of a successful interview day the last recruits will be told if they

have been successfully selected and how to proceed further, this is

usually done by someone that was not part of the interviewers, usually

the team manager and his decision is based on feedback from the


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interviewers. This makes his decision impartial. A few days later the

selected recruit will receive an employment contract which will state when

he will begin employment and other important information.

The recruitment policy at Microsoft USA is always to employ fewer peoplethan required. This is to reiterate the belief that it is more important to

employ the right people than just filing the right position. Microsoft USA

also takes advantage of industry layoffs to capture talent such as the AOL

layoff in 2007; Microsoft USA created a recruitment team to identify the

best talents and recruit them.

From this process it is clear that Microsoft USA recruits and selects with

the focus on the suitable type of person rather than skill level. The

company uses its human capital as a competitive advantage, employing

the best talent and inspiring them to be the best drives their success. It is

important to note that their hiring process meets their staffing needs

towards reaching their goals and objectives.

Training & Development

Training & Development is the method of developing people by

incorporating learning and development processes, operations and

relationships. This results in improved organisational effectiveness in the

organisation and improved personal proficiency and employability.

Microsoft USA regards its employees training and development as a

priority. All employees take part in business operations at the initial

stages of employment. Microsoft USA uses the Learn as you go method

which depends on employees learning as they do their job rather than

learning and then doing the job. At the initial stages of employment

employees are grouped in teams and given projects to undertake under

close supervision.

Microsoft USA believes in developing their employees through on the job

learning, through their colleagues and formal technical training. They

adopt a 70/20/10 learning and development model created by Michael M.


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Lombardo and Robert W. Eichinger. This model states that development

usually starts by realizing a need and having the impetus to do something

about it; this is what leads to potent learning. 70% of learning is on the

job, 20% is from feedback and 10% from formal education.

Fig1. 70/20/10 learning and development model George Washington University (2008)

At Microsoft USA it is 70% learning on the job, 20% from peers or

mentoring which allows employees learn from experienced professionals

in and outside their respective fields and 10% in formal or technical

training (Microsoft USA 2012). Employees are also required to take

refresher courses and learn more in order to sustain their performance.

The feedback gotten from these training exercises are very valuable.

Employees are also allowed to enrol in external learning and development

outside of the organisation with the option of tuition assistance or re-

imbursement by Microsoft USA.


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Fig.2 Statistics for learning and development taken by employees in Microsoft (Microsoft

2011)

In addition to this Microsoft developed a tool called the Career Compass.

This tool allows employees plan their career paths in form of a catalogue.

The Career Compass contains employees work experience and career

goals. They are able to evaluate themselves against sophisticated

professional aptitude for their career level. Employees then recognise


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gaps and build up an inclusive career growth plan to gain the knowledge

and skill to close these gaps.

This provides the management with a reference tool to identify patterns of

movement within the organisation, opportunities available within theorganisation to aid employees understand what they require to more or

what skills and competencies they need to do that. The Career Compass

also shows the trend of employees leaving the organisation.

Again Microsoft organises mid year career discussions. This discussion is

usually between an employee and his manager. It is made up of two parts,

the first is to revise obligations made at the beginning of the year and the

second part is discussing career goals. The manager is there to measure

performance and provide direction on how to attain subsequent goals

along the employee`s career path.

These provisions in training and development show that Microsoft USA

deem that employees are assets; and it is important that they help them

to grow to make knowledgeable decisions about their careers.

Salary and Benefits

Salary and Benefits play an important role when someone is

choosing an employer. Microsoft HR Department is working hard to make

sure that their benefits reflect the changing needs and wants of their

people, and its why Microsoft provide many industry-leading benefits to

the staff who rely on them. Microsoft goal is to empower the employee

with the resources, incentives, and flexibility he/she need to enjoy success

on the job and to live a healthy, balanced life.

Microsoft is world-wide recognized as a leading company for offering one

of the strongest and most comprehensive compensation and benefits

packages in the USA. Microsoft starts with competitive pay, bonuses, and

stock awards to eligible employees based on individual performance.

Other benefits offered are:
http://humanresources.about.com/od/salaryandbenefits/Salary_Benefits_Variable_Pay_Bonuses_Profit_Sharing.htmhttp://humanresources.about.com/od/salaryandbenefits/Salary_Benefits_Variable_Pay_Bonuses_Profit_Sharing.htm


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Comprehensive healthcare coverage for employee and his/her

eligible dependents

Including adoption fee assistance, maternity leave, paid time off for

new moms and dads, and discounts on child-care services

Purchasing shares of Microsoft stock at a discounted price

Performance Appraisal

Performance appraisal, also known as employee appraisal, is a

method by which the job performance of an employee is evaluated

(generally in terms of quality, quantity, cost and time). Performance appraisal is

a part of career development.

Performance appraisals are regular reviews of employee performance within

organizations.

Douglas McGregor's Theory X and Theory Y

Douglas McGregor an American social psychologist is famous for its

X-Y theory in his1960 book 'The Human Side of Enterprise'. Theory x and

theory y are often referred to commonly in the area of management and

motivation.

Theory y ('participative management' style)

Work is effortless and is as natural as playing. People will apply self-control and self-direction in the achieving organisational objectives,

without external control or the threat of punishment. Commitment to

goals is a function of rewards associated with their achievement. People

usually accept and often seek responsibility.

In my opinion this theory is applying very well to Microsoft because of the

implication and self motivation of the staff in achieving goals. One of the

main reasons for Microsoft success is promoting and expanding at all HR

levels self creativity and innovation.


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Maslow`s Theory

Abraham Maslow developed this theory from working with monkeys and it

state that basically all human needs are arranged in a hierarchy order oftheir importance.

In business the theory can be translated as follow:

To motivate staff managers must recognise their level of motivation

A genuine interest in the welfare of employees must be important

for the business

Safety needs: security freedom from money worries work place

insurance etc. Love and Belonging (social needs): Social occasion for employees,

nights out family parties, sporting events.

Esteem needs: Encourage staff, appreciation for work well done and

their contribution to the business.

Microsoft is an example on how Maslow`s Theory can be applied to a

company in order to achieve maximum performance with regard to their

staff. The 5 points of theory are implemented at all levels of companydepartments in a manner that success is guaranteed.

Conclusion

An efficient HR department is not only a business partner in the

organization, but also helps in defining the business strategy. The way the

business and HR strategy have been united at Microsoft is an example ofhow the business that is run with common goals and vision make money

for their investors and employees. Current changes that have happened

at Microsoft, often attributed to the economic downturn change the way

Microsoft is looked at. The fact that Microsoft is one of the most valuable

companies in the world demonstrates once again the high level of HR

policies, strategies and practices.

Recommendations


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Studying the above topics in compiling this assignment I have a few

recommendations that might have a positive outcome for HR departmentof Microsoft.

In my opinion skills of an employee can be divided in three categories:

1. Conceptual skills

2. Technical skills

3. Human skills

Conceptual skills become more required and technical skills less required

as someone moves up the corporate ladder. Due to the nature of its

product Microsoft is valuing the technical skills of its employees. In most

companies employees with conceptual skills will move up the company

ladder, while the employees with technical skills would not advance or will

advance at a very slow peace.

However, my recommendation for Microsoft HR Department is to

implement two advancement paths, allowing employees with technical

skills to advance as technical experts in the same way as the employees

with conceptual skills advance as managers.

Bibliography:

http://careers.microsoft.com/careers/en

http://www.referenceforbusiness.com/encyclopedia/Thir-Val/Training-and-

Development.html

www.google.ie
http://www.referenceforbusiness.com/encyclopedia/Thir-Val/Training-and-Development.htmlhttp://www.referenceforbusiness.com/encyclopedia/Thir-Val/Training-and-Development.htmlhttp://www.google.ie/http://www.referenceforbusiness.com/encyclopedia/Thir-Val/Training-and-Development.htmlhttp://www.referenceforbusiness.com/encyclopedia/Thir-Val/Training-and-Development.htmlhttp://www.google.ie/


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www.wikipedia.com
http://www.wikipedia.com/http://www.wikipedia.com/

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