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Abstract Corporate strategic plan is lighted upon by the effective and efficient human resource planning. The manner in which a corporations most important resource, the personnel, are managed and organized has a substantial tangible influence on the productivity of employees and which in due course leads to the successful attainment of corporate objectives. The employees are the ultimate determinant of organizational performance through a sustainable competitive advantage created form proper, global, effective and efficient human capital management (Youndt, Snell, Dean, Jr, & Lepak, 2006).The human resource management is defined by Gray Dessler as the policies and practices engaged in human resources aspects or carrying out the people including job analysis, personnel planning, attracting, recruitment, selecting, orienting and training, fixing and managing remuneration and salaries, providing benefits and incentives, appraising performance, solving disputes, communicating with all employees of all levels. The aim of this study is to study the Human Resource Practices followed by Microsoft Corporation. Ten top level managers from human resource department of Microsoft were conducted for interview. The interview was conducted via telephone and E-mail. The researcher through taking interview of the ten top level managers found that Microsoft generally emphasis on four stages of Human resources practices. These are shown and discussed in the chapter four and five. This study found some problems in the HR practices of Microsoft. These problems are also explained in chapter four and five. In conclusion, Microsofts success is based on its people it states how flexible they are and forward-thinking than its competitors to view a new innovative change. Microsoft for betterment of its employee has taken many initiatives by giving them lots of benefits, making new changes in its workplace in infrastructure as well as by giving them good allowances. Microsoft should always encourage its employees to start independent initiatives and they should have the time and resources to pursue new ideas. Microsoft as it is the largest organization, it faces many people problem, but it always try to overcome the problem as soon as possible as its main strength is its employees.
Table of Contents Contents Chapter-1 Introduction 1.1 Background of the Study 1.2 Human resource Management in brief 1.3 Significance of the study 1.4 Aim and Objectives of the Study 1.5 Problem Statement 1.6 Scope of the Study 1.7 Structure of the Dissertation Chapter 2 Literature Review Page No. 01 01 02 02 03 03 04 05
2.1 Introduction 2.2 Background and Theories of Human Resource Management 2.3 HR Practices in Organizations 2.4 Summary Chapter-3 Research Methodology 3.1 Introduction 3.2 Study Structure 3.2.1 Research Philosophy 3.2.2 Research approach 3.2.3 Research method 3.2.4 Research strategy 3.2.5 Data collection method 3.2.5.1 Secondary Data 3.2.5.2 Primary Data 3.2.5.3 Semi Structured Interview 3.3 Sampling Technique 3.4 Data Analysis & Presentation Method 3.5 Reliability and validity of data 3.6 Ethical Considerations 3.7 Summery Chapter 4 Findings & Analysis 4.1 Introduction 4.2 Findings Regarding the Human Resource Practices in Microsoft 4.2.1 Recruitment Strategies 4.2.2 Training & Development 4.2.3 Performance Management 4.2.4 Compensation 4.3 Microsoft Culture 4.4 Findings Regarding Problems in HR Practices of Microsoft 4.4.1 Discrimination at Workplace 4.4.2 Poor Treatment of Temporary Employee 4.5 Conclusion Chapter 5 Discussion of the Findings 5.1Introduction 5.2 Human Resource Practices in Microsoft 5.3 Problems in the HR practices of Microsoft 5.4 Conclusion Chapter 6 Conclusion & Recommendation 6.1 Introduction 6.2 Conclusion 6.3 Recommendation for HR Problems 6.4 Suggestions for future research Reference Appendix
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Chapter-1
Introduction
The Microsoft Corporation is in international organisation from the United States of America (USA). It was developed in the year 1975 with the joint effort of Bill Gates and Paul Allen. Now it is considered as the worlds largest software maker. This company is also considered as the worlds top valuable company. This company has employed 94000 employees till 2012. The huge number of the employees is managed by the Microsoft Corporation with the efficient and effective human resource policy.
attractive benefit package to the organization. In accordance with the Melamed (1996), the reality of the current human resource planning is to ensure the minimum benefit to work in the organization (Freiberg, 2005).
The Microsoft Corporation thinks that the individual employees have separate mental maps which contribute to the organizational strategic actions and plans. The employees has different views, understandings, perceptions, set ups, goals, and own personalities regarding any strategic actions. This action helps organizational development to make greater profit in the efficient ways. Microsoft Corporations thinks that the human has the strategic actions from their individual fields and collective contribution to the organizational development. The objective of the organization is attained through the best practice of the human resource management (Guest, 2007). So this research is significant which will prove the sustainability of the organization is depending on the human resource management practice. Now the problem statement is whether the HRM practices in Microsoft are effective enough to motivate and to retain its employees.
1.6 Scope of the Study
Human Resource Management practice is developed by the organization from the nineteenth century to adapt the best practice and strategy in order to gain organizational goals and objectives. The organizational goals and objectives are earned by the active human resource
practice in the organisation (Iverson, 2006). The development of the organisation is basically comes from the human effectiveness within the organisation. The Microsoft Corporations has enforced its strategy considering the human factors within the organisations. The organisation has supported huge theories and practices within its Human Resource Management. The human resource management has tremendous influence on the factors of development and success. Today the Human Resource management practice is established as the effective success tool to achieve the objective of the organisation. On the other hand the international organisation faces huge competitions and threat regarding the human resource management factors, which determine the degree of development (Sparrow and Budhwar, 2007). The international organisation like Microsoft Corporation is facing huge constraints and opportunities in managing the human resource management practice (Heskett, Sasser and Schlesinger, 2007). So definitely we have wide range of scope to study our research paper through the Human Resource practice in the context of the global organisation, which will bring the easiest way to collect data and subject area. Again this research paper will provide huge range of information in the literature review part of the research paper. The liberal economic policies of the different countries have increased the competition of the global organisation. The global organisations are facing huge competition in terms of its strategy which involved with the active practice of Human Resource Management (Baruch, 2008). Most scholars think that the efficient and active human resource management provides the competitive advantage in the highly competitive market. The Human Resource Management practice in all over the world is growing and most of the organisations try to enforce the specialise technique in the human resource management practice (Meyer, 1997). The crucial development of the organisations has provided the best practices in the human resource management practice of the organisation. The researcher has selected Microsoft Corporation to analyse the factors of human resource management which hold the influence on the organisations productivity and its performance. We have the definite reasons for preparing the Human Resource Management practice of Microsoft which is listed as follows. Evaluation of the employee commitments Lifelong employees commitment in the Microsoft Assessing the Human Resource role to the Microsoft Finding the transformation techniques of human resource management Identifying the conditions that are used in the Microsofts Human Resource Management Assessing the psychological empowerment of the organisational development The fulfilment of the commitment in the organisational development Microsofts role to the Human resource role Education and age factor in the organisational development The ability of attracting the organisational development The availability of human resource practice in the organisational development The government policies of Human Resource Management practice has direct and indirect impact on the Microsofts Human Resource management practice The international labour low influences the Microsofts Human Resource Practice The human resource management builds the active platform to increase the organisational commitment and development. This research paper will focus the basic criteria of the human resource management. Microsoft always looks for the efficiency of the business through the practice of the efficient management practice of the organisational development and performance.
Chapter One- Introduction: This chapter will basically focus on the overview of the research paper which will demonstrate the background of the research, scope of the research, significance of the research, the aims and objective of the research, reasons for the HRM of Microsoft, the service profit chain of the Microsoft.
Chapter Two- Literature Review: In this part we will have huge discussions on various literatures regarding this dissertation task. The works of various scholars and researchers will have the priority to have the research paper evident. Chapter Three- Research Methodology: The Research methods will be focused in this chapter. The various research methods will have the general discussion and also explain this dissertation technique. Chapter Four- Findings, Analysis and Discussion: The collected information will be analysed in this chapter. In this section data that is gathered from various sources are shown and necessary analyses are done to have the findings. Chapter Five- Conclusion and Recommendations: This chapter discusses about the conclusions and necessary recommendations that is derived from the analysis of the research. Conclusion and recommendation will be given regarding organizational performance and productivity on the basis of HRM practice in the context of global firm. 1.8 Conclusion In this the researcher described the background of this study along with the aim, objective, significance and problem statement of the study. In the next chapter, literatures related with this study are explained. Chapter 2 Literature Review
2.1 Introduction
This chapter focuses on the previous literatures related to this study. The term literature review considered as the previous empirical studies of this research topic (Frazee, 2004). Here the researcher has explained the various theories of Human Resource Management and also described the previous studies on the Human Resource Practices.
Figure 1: Map of the HRM territory (Beer et al., 2009). The another concept that is established in name of Michigan concept that was initiated in University of Michigan in 1980 to provide the overall concept of the management and it is also like as Harvard concept that includes some measurements directed towards some aspects of employees management and the total procedures are to be attainable and the periphery of the behaviors of the organization. Like every concept it is also in the abstract level to have the parties in the midst of the other phenomenon. The concepts are strategic and implementable in the organization to lead it towards the desired goal. According to Syrn (2008), the figure in the following shows the degrees of performance in the organization:
Recruitment is the basic activity of HRM that includes the selection process of an organization
within a minimum cost and the factors are to get the required employees for the organization to have a better body of the organization. It has three stages that make the body is: Defining- it includes the employees responsibility and specification or job description and guessing the employment situation. Attracting Candidates- Evaluating the different sources of the applicants and reviewing the companies alternatives of the recruitment. Selecting the Employees- to get the proper employees it requires the assessing the almost criteria of the applicants and the then selection and offering the job title to them.
Training system (employee development) Every company need to have training for them and then need to adapt them with the existing system of the company, it has to get some specific criteria and as well as need to relate their employment responsibilities with the employees. Organizations must have the training department to train the employees. Though the recruit some persons they need to have a common structure, like as:
Training retaining them in job Training in a classroom Instructing through the Power point presentation and other Video programs Meeting industry experts Lectures by professional bodies
According to Juran, et al (2008), organizations can include more activities for its internal evaluation of HRM activities: Dividing job responsibilities among the other members Focusing the internal and external activities Providing quality training Making a plan for the organization
According to the Management scientist Joseph (2008) the training and evaluation of the jobs need to have some answers to the questions that are described as follows:
Are the targeted goals are related to the main objectives of the business and did it maintained the major business goals? What did it include in the training plan and did it make the right choice in making the contents?
What was the major training outcome and what were its benefits?
Employee motivation
When employees are recruited they need to get them motivation through different incentive and other programs and if they find the proper treatment from the interest groups and can believe in the companys commitment then it get the aspects with fullest spirit within. Motivation is an aspect that include the major activity to get the employees motivated towards getting goals and that also help to come out a major outcome for the company. Here is Hertzbergs theory of motivation and also the model of incentives as following diagram:
The above mentioned in the above showed the major incentives that are sought by the employees and it requires the major functions of the organization to find out what is happening over the motivational bodies of the organization. When an employees gets the needed incentives it gets the model trusted it also had them satisfied. Here in following a list of incentives the organizations are required to take responsibilities:
Need to encourage personnels to make responsibility Make the person powerful to get power Make entrepreneur Make them a person of relationship Make them driver of the organization Make shared leadership Make them accountable
There are some other factors which can make the people motivated and the prospects are not confined in the above, it worth mentioning that the major aspects of the motivation is the money. A person can get the proper achievement if he is given money. Moreover, there are some other aspects of motivation: Providing greater autonomy can make motivation on the part of the company, it can make trust on the company. More responsibility also makes sure that the company is honoring and giving the employees the more rights and responsibilities. The organization can provide more incentives to the people if it can make good visible power to its employees. Sometimes it is stands that the authority needs to make or hold more goodwill which can be transmitted to the other persons. Employee Satisfaction Employee satisfaction is the important factor of the human resource management practice. Employees find satisfaction from their job place which is come from the emotion needs, wants, and demands (Boshoff and Mels, 2005). The needs, want, and demands of the employees from their workplace is met by the active efforts by the active role of the human resource management. The issue of employee satisfaction highly influences the customer retention and profitability of the Microsoft (Ascigil, 2003).
Leadership and Management Attitude The human resource management has the employee satisfaction towards the effectiveness of the organizational development and its attitude toward the employees leadership actions. The leadership actions of the employees help the organizational development through the effectiveness of the HRM practice (Special 2006). The successful managers try to manage the human resource activities in the definite pathway (Sirota et al., 2005). Working Environment The single important factor to the development of the Human Resource Management has the same influence which have recognized by the internal quality of the organization. The quality of the work environment has huge improvisation to the active human resource management of the organization (Wellins, et al., 2006). The respects and the appreciation derive the employee to the better productivity. The internal work environment helps to increase the human capitalization of the employees (Ross, 2009). The term work environment encompasses many different aspects such as: physical work environment, managements attitude toward employees, relationship with colleagues, and working conditions. Recent Research showed the influence on the general outcomes of the effective work environment of the organization (Gewirtz, 2005). Communicating with Employees The communication with employees provides huge responsiveness towards its human resource management practice of the organization. The workplace communication and co-operation helps the employees to think about the organization (MacGregor, 2006). The five functions of management like the planning, organizing, staffing, leading, and controlling are all dependant on the effective communication systems of the organization. The efficiency is highly depends on the communication infrastructure of the organization (Slagle, 2006). Teamwork The motivation and the recognition only can perform the slight part of the human resource management practice with the help of the definite organizational development of the organization (Harshman and Harshman, 2009). Teamwork is designed workforce who influences the development of the strategic actions in the human resource management practice of the organization. The teamwork is considered as the behavioral motivation tool which implements the huge strategic actions to the workplace of the organization to adapt better output of the organization (Brown, 2003). The teamwork is considered as the best practice of the job performance of the organization.
Employee loyalty
Employee loyalty cannot be mobilized if company does not treat them accordingly and if the company don not provide proper incentives it may fail at any situation. The desired goals of the organization mostly depend on the how the employees are working and how they are interacting with the organizational bodies. The aspects of the employee loyalty is the matter that cannot be gained overnight, it requires continuous activities to get the job done only for the employees.
There are some fundamental aspects that make an enterprise strong and can have the morality to get its desired goals and if anything happened that neglects employees rights the loyalty aspects fail to mandate.
Wages and benefits are the systems that commonly incentivized the employees of an organization and it is the common factor which should be maintained by every organization. When any corporate strategy is done it should decide on wage and benefits system.
Enterprise human resource management system Human resource management system is the main resource that an entity can make the company more beneficial and can incentivizes the organizational bodies and this HRM structure can make the body profitable in case of employee retention and success.
Employees are needed to get training opportunity to get more space in the promotional and it can help the employees to get more skills from their activities and can promote them with the other organizational bodies.
Leadership charisma
Leadership isnt getting borne and this thing can be fostered through the formal and informal system of an organization. An organization can have the people without that trait but can make them entrepreneurial with more training and skills developments activities.
Retention of the employees are the another major activities of the organizations HRM policy. How an organization can retain its employees are no longer undiscovered and this things are now are the matter of the dissemination and it can be shared through different medium. According to Cook (2008), the major parts of the employee retention are described as follows:
An employee can make some more jobs in: Getting more productive activities Getting more passion on the job and can lead to the more strategy implementation Can produce more spirit within the team Can make reputation of the company Becoming innovative and more plausible environment Building team sense within the organization
2.4 Summary
Human Resource Management is policies that a company has, and activities that it takes which include Job analysis and design, staff recruitment and selection, training and development, performance management, employees safety and health management, compensation management, staff motivation, labour relations management, and labour relations management; the researcher concluded those activities as the modern management methods of enterprise to obtain human resources (selection), development (education), keep and use (employment) etc, which carried out by planning, organizing, directing, coordinating, and controlling to achieve the goal of a enterprises development.
3.1 Introduction
This chapter is designed to find out the good way to find the appropriate result of the research topic. Research method is considered as the combination of the research that is provided by the researchers systematically (Adekola, Abel & Sergi, Bruno, 2007). The research methodology section will specify the sampling techniques, sampling framework, the size and type of any appropriate survey. The researcher has developed the methodology on the basis of our research topic naming Human Resource Management Study in the Microsoft Corporation.
Figure: Research Process Onion of Saunders (1998) Here we have five steps in the research structure. In this chapter we have general synthesize on the five factors that is listed in the following that will specify the research effective and structured. The following factors will be discussed in the later part of this chapter (Albrecht and Maryann, 2001). 1. 2. 3. 4. 5. Research Philosophy Research Approaches Research Strategies Time frame for the research Data collection Methods
objective. Inductive research approaches determine the interpretive research philosophy which shows the research in unstructured way (Budhwar, Pawan, Debra, & Yaw, 2004). On the other hand the deductive research method is a structured way to show the research result from the viewpoint of the positivism research philosophy. Our research topic is to test the human research practice of the Microsoft Corporation, which is influenced by the employee satisfaction and their choice in the corporation. So the research approach for this study must be deductive. Deductive research approach is considered as the scientific approach for this research.
al. (2009) told that case study can be very precious way to find out recent theory and it provides necessary hypothetical source. That is why case study strategy is applied in this research paper. This study relies on single case company as Yin (2003) justifies single case adoption in situations when case company access for academic research is very limited.
It helps in estimating the findings correctly. It allow the use of statistic figure to test the diverse sampling from the group of subsets The sample of this study selected from the HR department of Microsoft Corporation. Using stratified random sampling total 10 top level employees are selected as the sample for this study. 3.4 Data Analysis & Presentation Method Primary data already collected through interview and other means like analyzing the behavioral pattern of the respondent is under further analysis to interpret accordingly. Data analysis is very important task in the research process and it includes excluding data, displaying data and lastly concluding with remark and verifying the findings (Miles, 1994). There are different activities in the process of data analysis (Creswell, 2007) and these are Organizing the collected data through a proper grouping and chronological setting A deep reading should be made for understanding the data There should have a descriptive figure of the data findings Classifications of the findings is taken in this stage and a pattern should establish in the paper Though various meaning there should have a close interpretation of the findings Finally the setting or the representing data through chart, table, graph or other figures The researcher has followed all these processes in the data analysis.
3.5 Reliability and validity of data
The verification of the research authenticity has the primary screening part which ensured the research options with high interviews. The research interview and techniques will come into the validity through the questionnaire of the research options. The research options are highly encourage maintaining the reliability and validity of the research.
Ethical approval is a very important consideration to make a research successful. So, researchers must maintain all the ethical rules, regulations and conducts related with this research. Saunders et al., (2009) told that ethics can be described as the suitability of a researchers performance on the topic of the participants rights of being pretentious by the research activities. Researchers have considered The Ethical Code Conduct for Research to conduct this research activities. Researchers must maintain the privacy and security of the respondents from ethical point of view. 3.7 Summery This chapter is focused on the methodology of this study. The possible methodologies for the research are highlighted from the different viewpoint and philosophies. The research will have the proper documentation in the research project to have the greater techniques for the research paper. The reliability and validity of this research will have proper documentation of the research.
Chapter 4 Findings & Analysis 4.1 Introduction Ten top level managers from human resource department of Microsoft were conducted for interview. The interview was conducted via telephone and E-mail. The empirical study was based on the eight research questions. In the following part, findings of each question are discussed and analyzed. 4.2 Findings Regarding the Human Resource Practices in Microsoft The researcher through taking interview of the ten top level managers found that Microsoft generally emphasis on 4 stages of Human resources practices. These are presented here. 4.2.1 Recruitment Strategies One of the HR managers said that, recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Recruitment is the activity that links the employers and the job seeker. He argued that, Microsoft success was attributed to its effective recruitment strategies. Microsoft always attracts the best talent present in the industry and educational sector. Another HR manager said that, the company conducts on-campus recruitment and off-campus recruitment for finding best talents. Microsoft mainly focuses on campus recruitment from elite educational institutions like MIT, Yale, and Harvard etc. As Microsoft recruits many employees from campus so it tries to maintain its office environment like campus only. While doing campus recruitment Microsoft follows two types of campus selection:On - Campus. Off - Campus. Majority of the managers said that, for On-Campus selection, the company conducts job fairs in Various Universities & Colleges. In this job fairs, company performs first round of interview of the students. Those are selected were then invited for the second round of interviews which are generally conducted in the offices of the Microsoft. They also added that, in off campus Recruitment Company processes the sent applications and will contact the applicants within 3-5 working days to let them know if they are going to be progressed. The recruitment team will arrange a phone call or interview to take the decision about the selection. If the candidate gets selected from the earlier interview he will face a series of interview step by step before final recruitment in Microsoft. The main criteria in sleeting the candidate is focusing on the basic about computer science, skill in understanding the updated technology and a very talented thinking power for better software application. In reply to the question about the factors in making the choice from the employees, the manager replied that they will never focus on the religious, social, gender, ethnicity and these types of backgrounds. What it will care most is all about the creative, skilled and knowledgeable manpower for the company. After joining in the Microsoft office the employees will have to assume lots of trainings and indoor program to enrich their skill and get motivated for the better practice and show high dedication for the company. It will enhance their creativity which will in the long run help the company in getting skilled manpower and creative ideas to flourish further. Microsoft never believes in the organizational development it equally emphasizes on the staffs and related personals. Microsoft believes that the employees need not to be highly skilled and academically sound but they should have an interest to learn and to know and it will jointly lead the success in Microsoft. According to the HR manager of Microsoft, the most important quality for the employee is the ethical standard and minimum sense of accountability. It will never care of the gender but candidate should have the basic requirement in that particular position. Microsoft believes that a qualified staff but without ethical consideration can never sustain and bring
4.2.2 Training & Development Training for the employees is basically incorporating some expert in the particular field and bringing their ideas which will help the company. This training will enhance the quality and skills of the recruited employees and there will be multidimensional activities during the training period. The aim of this training is to increase the capacity of the employees to perform better and also making him or her capable with any kinds of responsibility given by the authority in future. According to the respondents from the interview the reason of training by the company isIn the assessment report of the employees and it suggest the training for further development For further improvement of the level of standard As the usual policy of the company to improve the skill of its employees If the company wants to reshuffle the responsibilities among the employees and it is very important in this regard For testing the new development process by the authority and make a demo practice One of the respondents said that .Microsoft was in the 10th position of the magazine in the year 2009 among top 125 companies all over the world. It feels that for a proper networking and to disseminate the culture and the values of the organization to the employees there is no alternative than the training program There are online classes for the employees in Microsoft. It has an especial concentration over the new employees and for this reason the newcomers face regular training program in the company. It has been found that Microsoft offers 45 hours paid training program for the employees. In an official year there is average 2000 training takes place by the Microsoft authority focusing on the IT knowledge development, technical advancement, operational and managerial capacity building and also the program for making attachment among the employees. Most of the managers stated that, Microsoft organized various types of programs to help in building various kinds of qualities in employees like entrepreneurship quality, learn more about the company innovation and specially to interact with other employees to develop more friendly relationship. To conduct the programs, the company invited eminent instructors from leading educational institutions. The company introduced new programs like Microsoft Greenhouse, Tetchiest, Microsoft Ideas, Visiting Speaker Series, Breakfast Series, Channel 8, Microsoft Mentor Program etc. 4.2.3 Performance Management About the performance management in Microsoft the HR manager as the respondent replied that it is all about a procedure for giving the employees an environment to work appropriately and make their best effort for the company. Performance management start with the joining of an employee in the company and it ends with leaving the job by him or her. So its a continuous process during the service in the company as Microsoft believes in. Other respondents argued that, Microsoft conducts periodic appraisal of performance, based on which decision are taken regarding salary hike, Bonuses and stock Options. Microsoft uses 5point rating system to evaluate the performance of the employee. In May 2006, the company announced a different plan for the management practice and it was tagged as My Microsoft. In this plan all the employees, Higher authority, HRM Team was involved and this program was highly appreciated by the people and successive too as it attracted a huge audience. 4.2.4 Compensation Regarding compensation HR manger said that, .it can be simply defined as - Generally,
something received in return for something else. Wages and other financial benefits earned from labor.. Majority of the managers said that, The Microsoft's compensation and benefits are very competitive. Employees at Microsoft go through performance reviews every year. They also added that, company decides the compensation, pay hikes and incentives that would be then given to the employees. Microsoft also offers various benefits to all its employees. The common benefit included full Health Insurance coverage, increased Vacations etc. Microsoft employees are also eligible to participate in the company's 401(k) plan. In this plan Microsoft matches the savings done by its employees with free awards of stock option, cash deposit in saving account etc. One HR director said that The most popular part of Microsoft's compensation and benefit program was the full healthcare coverage it offered to its employees and eligible dependents. It included among many things, Insurance on dental and vision related illnesses, on-site health screenings and discounts in memberships to prominent health clubs; organized programs to manage chronic health issues like smoking, provided access to a 24-hour health-line, etc. According to the respondent, Microsoft provide different types of facilities to its workers like discount in the Microsoft product and other facilities regarding the service for home accessories, restaurant, travelling and also even in the baby care services. It also discounts the employees regarding the training and other manuals. Microsoft feels that the worker is in the core position of the company and they are like the fuels for the development and progress of the company. It always respects diversity in the workforce, creative ideas and suggestions. It aims to keep its employees happy, energetic and proactive in every moment for the sake of the company. In response to the question about how to keep the employees motivated, the respondent replied that it gives it employees as the position of master which empowers them mentally. When the employees feel motivated they will more concentrate on their given task and try for the further development of the company as they will fell that its a responsibility of their own. This idea helps in protecting the Microsoft culture and its distinct identity. In reply to the question about the process of making the employees satisfied, maximum respondents said that a pleasant environment for work is essential for the company to keep the staffs motivated and feel them a homely environment. Microsoft provides a better wage, proper working environment, a proper course for making his presence valuable for the company and himself. In reply to the question about keeping the loyalty of the employees for the company, maximum respondents replied that this issue of loyalty is inherited in the interview and selection process. Before recruitment company should focus on the moral and personal factor of the employees along with the skill and academic qualification. In hiring the employees it should emphasize on the morality of the persons and his previous record in the previous job. A strong moral attitude is essential and top priority for the recruitment in the company like Microsoft. Before final clearance it tells the employees about further thinking and takes the guarantee of loyalty and dedication for the company and its aims and objectives. It clearly tells the employees not to be blind about the job rather get practical and do accordingly which will help both employees and the company to reach the destination. Besides, in the earlier training process Microsoft teach about the issue of loyalty and also it focuses on the psychological study of the selected new comers. Microsoft believes that profession skill and advancement is related to the dedication and moral attitude of the employees towards the company it serves. According to the respondent, its important for the company to decorate the official task so that the employees feel like family and get concerned about the given responsibility and the sense of taking care of the other employees needs and supports. A joint sense or the team force is always expected by Microsoft. In the question of retaining process in Microsoft about its employees, the respondent replied that a great employee can grow equally with the growth of Microsoft. There is an independent provision between the workers and the company goals to grow and develop the personal
position. Microsoft gives all opportunities for its employees to have that position. According to one Manager, if the authority gets a better staff he will try to utilize his excellence and make him an ideal for other employees so that they get inspiration and feel motivated. The idea of role model is always expected in Microsoft. 4.3 Findings Regarding Problems in HR Practices of Microsoft 4.3.1 Discrimination at Workplace One of the respondents said that there are glass ceilings and glass walls in place for African Americans at Microsoft. We are stunned and disappointed in their treatment of Black employees. In this case another respondent added that ..racial and sexual discrimination may be describe as physical or verbal act which is intended to cause individuals or groups to feel intimated, demeaned or abused because of their rational, ethnic, national background and gender. Microsoft has been charged on various occasions for discrimination at work place and they are accused of discrimination against its employees through Performance Evaluations, Pay Packages, Promotions, Wrongful Termination and Retaliation. Discrimination through Performance Appraisal Most of the respondents said that Microsoft conducted periodic appraisals on performance based on which decision used to take place of salaries, bonuses and stock option were taken. The performance appraisal used to be conducted by Microsoft's managers. In this case on respondent added that Microsoft used to follow rating technique for evaluating performance of its employee. The employee argued that the technique allowed the managers to use this power in evaluating their subordinates. As, a result the performance was generally biased. Another respondent said that it is also written in Microsoft policy that all mangers are trained efficiently to use rating technique for betterment of its employee performance, but it failed on giving the desired results Discrimination through Compensation One of the respondent shared an important information regarding the compensation discrimination that .in a case filed against Microsoft, the plaintiffs alleged that the Black peoples were paid less as compared to white people for the same amount of work done. The plaintiffs argued that the employee pay package were over lapping and broad, thus allowing vast and huge pay difference among employee. The condition became worse when discrimination in evaluation led to discrimination in compensation. Discrimination through Promotion Majority of the respondents said that .Microsofts written or unwritten policies enabled the managers and supervisors to select the candidate for different position through word of mouth or other informal channels. They claimed that due to such technique it disallowed or prevented those eligible and deserving Black African-American employees to enter the higher position in any division or department of Microsoft
4.3.2 Poor Treatment of Temporary Employee The company faced another major problem with regard to its temporary employees. Some respondents said that .these temporary workers were on the payroll of the employment agency through which their job was routed, and not on Microsoft's payroll. Hence, they were not treated on par with the regular employees. They were also not eligible for any of the benefits the regular employees had, like sick leave, paid vacation or holidays, not to speak of stock options. They were not encouraged to take any initiative in their work and were considered inferior by the permanent staff. This was in spite of some of them being employed by the company for long
permanent staff. This was in spite of some of them being employed by the company for long periods of time, sometimes stretching two years
4.4 Conclusion This chapter shows the empirical findings of this study that the researcher found from the respondents. In the first section the researcher showed the HR practices of Microsoft. The researcher through taking interview of the ten top level managers found that Microsoft generally emphasis on four stages of Human resources practices. These are shown in this chapter. This study found some problems in the HR practices of Microsoft. These problems are also explained in this chapter. Chapter 5 Discussion of the Findings
5.1Introduction
In this chapter the researcher has discussed the findings which have presented in the previous chapter. The findings are discussed as follows:
5.2 Human Resource Practices in Microsoft 5.2.1 Recruitment and selection
The major target of the recruitment and selection in the company is to have the employees who will fulfill the needs and demands of Human Resource of the company accordingly. There are basically three stages for the recruitment and these are; prepare the job description and taking the decision about the condition for the position, review and evaluate the alternatives of the candidate and giving advertise for the job position with the requirements and finally receiving applications from the candidates, interview, test and assessment with final recruitment letter. As most of the managers said, Microsoft recruits and selects employees through on-campus and offcampus. One of the managers said, The Company conducts on-campus recruitment and offcampus recruitment for finding best talents. Microsoft mainly focuses on campus recruitment from elite educational institutions like MIT, Yale, and Harvard etc. It is always required that an employee will fill up all the criteria for the job position. In the process of selection company should focus on the quality, academic background, skills and creative ideas of the candidate. Previous working experience and history and also the ethical issues should properly address in the selection process. Microsoft always put emphasize in ethical issues and previous working history wherever he was in service. It feels that these issues are highly important for selecting employees in company like Microsoft. There are always high expectations in the companies like Microsoft because of its gesture and prominence in the corporate field. For Microsoft, morality is the prime concern in selecting new employees. It always gives chance for the employees to rethink their entrance in the company as they want to assure the loyalty and dedication for the company. It believes not blindly enter into the company without understanding the goals and objectives of Microsoft as well its expectations from its employees.
5.2.2 Training
Generally companies provide training focusing on technological sector, creativity building, and enhancing the abilities for the job and also teach the rules and regulations in many cases. Microsoft always focuses on training the HRM department of the company as it feels this is the most important section to push the refresh button. Microsoft doesnt believe in classroom training as mentioned by the respondent who is serving as the manager in the company. The training
always conducts between the employees and most cases senior and junior employees with a very friendly environment. The training planning comprisesi. Whether the goal of training is related to the goal of the company in terms of its commercial development ii. Whether the training will provide and deliver the necessary teachings and understandings to the employees to face the challenge iii. Whether the training outcome like learning, understanding and efficiency building of the employees is in right track or not. Microsoft employees increase their skills and knowledge through the interactions between the old and new staffs and it emphasize on the self development by the employees. As an international company and there are different levels of service in the globalization era, Microsoft put emphasizes in learning English and get smart in dealing with the multinational body without any language problem. It believes that employee himself should address their limitations and try to solve accordingly.
5.2.3 Motivated program
Motivation is the driving force that inspires us to do accordingly and appropriately as the company expect. It is true that one cannot motivate others but can influence him or her. So motivation consist a tough process. In terms of intervention it is most useful and strong to enter in the motivational need and expectations and help them to go accordingly. If the employee himself get motivational features he find himself as responsible enough and it bring in the courage of the employees to drive against the challenge. According to Microsoft, better motivation is to help the employees in their work by supporting their basic needs. When a staff identify his own limitations and opportunities it can better serve himself as well his company. Microsoft takes a different dimension in inspiring its employees. In the earlier stage of the training, it goes through making aware to the employees about the establishment and growth of Microsoft and the sacrifice of the people to reach in such position. Microsoft employees get an idea that the success of the company is the success of its employees and the credit of this success always shared with its skilled employees. It inspires the employees in creating and brining new ideas and plannings for further progress for the company. It never discourages the skills and trying of the workers whatever it brings for the company. It believes in immediate rewarding system. This reward not always refers to money rather it may be the promotional features or other related incentives. For reward an employee should meet the goal as decided by the authority. It believes in a regular networking of the employees with the authority so that they feel attached with the company success and failure.
5.2.4 Loyal program (From employee satisfaction to employee loyalty)
Loyalty is an important feature expected from the employees by the company. Loyalty of the employee can be dividing as passive and active loyalty. Active loyalty is all about the personal intention to work for the company, try to make better and build a strong foundation for the company. Its more like dedication rather than personal interest showing. On the other hand, passive loyalty is all about working according to the rules and regulations. Here the individual never feel comfort and attached with the company objectives but because of the memorandum of understanding they just obey the responsibility given by the authority. In the long run this type of loyalty is harmful for the company and for the employee too. Satisfaction of the employees is all about his desire and his particular choice with the service. Satisfaction never brings loyalty it is something that comes from the deeper understanding of the employees but there is an equal responsibility of the company to make its employees feel loyal and one of the family. It comes from the relation between the company and the workers, empowering the employees through taking care of their suggestions in the decision making process. To cultivate the loyalty sense, its an equal responsibility for both company and the employee to proper understand each others needs and expectations and also do respect the feeling of each other. Microsoft always sees
differently between the satisfaction and loyalty. It believes that working environment has a key role in making the loyalty as well the satisfaction of the employees. The monetary issue is also related but for Microsoft there is no question about money from the top to Bottom. Income is not only the motivational aspect for the employees but also it makes the people crazy to meet the demand and expectation of the company. There are 5 factors that influence Loyalty and these are- Wage and benefit, Proper HRM system, Training opportunity and promotional aspect, Charismatic leadership finally endeavor potential. Microsoft has a long history in building loyalty of its employees through its unique policies.
5.2.5 Retain great employee
The common features of qualified employees are the sense of loyalty to the company, to the responsibility given by the authority and respecting the values, culture and the common goals of the company. Initiatives, guidance, and working hard, trying for the company improvement and success is also essential qualities that need to acquire by the employees to be the excellent worker. Independent ideas, professional skills and creativity with immediate reply in challenging task are quite important features for proper selection. Maintenance of the staff satisfaction is an important task for the company as well it signifies the success and failure of the company. There should have a better understanding between the employees and the authority to keep up the retention level. The working areas is like a community and there are competition exist which is natural. But an employee should respect this completion and also the company should appreciate the attitude of its employees in facing challenges. Building self confidence is an important feature here.
5.3 Problems in the HR practices of Microsoft 5.3.1 Discrimination at Workplace
It has been found that there are glass ceilings and glass walls in place for African Americans at Microsoft. They are stunned and disappointed in their treatment of Black employees. Racial and sexual discrimination may be describe as physical or verbal act which is intended to cause individuals or groups to feel intimated, demeaned or abused because of their rational, ethnic, national background and gender. Microsoft has been charged on various occasions for discrimination at work place and they are accused of discrimination against its employees through Performance Evaluations, Pay Packages, Promotions, Wrongful Termination and Retaliation.
5.3.2 Discrimination through Performance Appraisal
Microsoft conducted periodic appraisals on performance based on which decision used to take place of salaries, bonuses and stock option were taken. The performance appraisal used to be conducted by Microsoft's managers. The employee's appraisals were alleged that the performance appraisal system allowed for discrimination on the basis of race, color and gender.
5.3.3 Discrimination through Compensation
It is found that the Black peoples were paid less as compared to white people for the same amount of work done. The employee pay package were over lapping and broad, thus allowing vast and huge pay difference among employee. The condition became worse when discrimination in evaluation led to discrimination in compensation. Discrimination through Promotion It has been found that Microsoft has written or unwritten policies that enabled the managers and supervisors to select the candidate for different position through word of mouth or other informal channels. Due to such technique it disallowed or prevented those eligible and deserving Black African-American employees to enter the higher position in any division or department of Microsoft.
The company faced another major problem with regard to its temporary employees. These temporary workers were on the payroll of the employment agency through which their job was routed, and not on Microsoft's payroll. Hence, they were not treated on par with the regular employees. They were also not eligible for any of the benefits the regular employees had, like sick leave, paid vacation or holidays, not to speak of stock options. They were not encouraged to take any initiative in their work and were considered inferior by the permanent staff. This was in spite of some of them being employed by the company for long periods of time, sometimes stretching two years.
5.4 Conclusion
In this chapter the researcher has discussed the findings shown in the chapter 4. In the next chapter the researcher has drawn conclusion with respect of the objectives of this study. Chapter 6 Conclusion & Recommendation
6.1 Introduction
This study is related to the Human resource management practices in Microsoft. Ten top level managers from human resource department of Microsoft were conducted. The interview was conducted via telephone and E-mail. In this chapter the findings regarding the objectives of this study are described.
6.2 Conclusion
The first objective of this study was to study and evaluate Microsoft's Human Resource practices. Microsoft had been considerate to be the 'great place to work for' right from the beginning. It has been found that Microsoft generally emphasis on 4 stages of Human resources practices. These are concluded here. Recruitment Strategies The major target of the recruitment and selection in the company is to have the employees who will fulfill the needs and demands of Human Resource of the company accordingly (Michael 2006). There are basically three stages for the recruitment and these are; prepare the job description and taking the decision about the condition for the position, review and evaluate the alternatives of the candidate and giving advertise for the job position with the requirements and finally receiving applications from the candidates, interview, test and assessment with final recruitment letter. As most of the managers said, Microsoft recruits and selects employees through on-campus and off-campus. One of the managers said, The Company conducts oncampus recruitment and off-campus recruitment for finding best talents. Microsoft mainly focuses on campus recruitment from elite educational institutions like MIT, Yale, and Harvard etc. In the process of selection company should focus on the quality, academic background, skills and creative ideas of the candidate. Previous working experience and history and also the ethical issues should properly address in the selection process. Microsoft always put emphasize in ethical issues and previous working history wherever he was in service. It feels that these issues are highly important for selecting employees in company like Microsoft. There are always high expectations in the companies like Microsoft because of its gesture and prominence in the corporate field (Cook 2008). For Microsoft, morality is the prime concern in selecting new
employees. It always gives chance for the employees to rethink their entrance in the company as they want to assure the loyalty and dedication for the company. It believes not blindly enter into the company without understanding the goals and objectives of Microsoft as well its expectations from its employees. Training & Development Training for the employees is basically incorporating some expert in the particular field and bringing their ideas which will help the company. This training will enhance the quality and skills of the recruited employees and there will be multidimensional activities during the training period. Microsoft always focuses on training the HRM department of the company as it feels this is the most important section to push the refresh button. Microsoft doesnt believe in classroom training as mentioned by the respondent who is serving as the manager in the company. Microsoft employees increase their skills and knowledge through the interactions between the old and new staffs and it emphasize on the self development by the employees. As an international company and there are different levels of service in the globalization era, Microsoft put emphasizes in learning English and get smart in dealing with the multinational body without any language problem. It believes that employee himself should address their limitations and try to solve accordingly. Performance Management About the performance management in Microsoft it is found that it is all about a procedure for giving the employees an environment to work appropriately and make their best effort for the company. Performance management start with the joining of an employee in the company and it ends with leaving the job by him or her. So its a continuous process during the service in the company as Microsoft believes in. Microsoft conducts periodic appraisal of performance, based on which decision are taken regarding salary hike, Bonuses and stock Options. Microsoft uses 5-point rating system to evaluate the performance of the employee. In May 2006, the company announced a different plan for the management practice and it was tagged as My Microsoft. In this plan all the employees, Higher authority, HRM Team was involved and this program was highly appreciated by the people and successive too as it attracted a huge audience. Compensation It is found that the Microsoft's compensation and benefits are very competitive. Employees at Microsoft go through performance reviews every year. Microsoft also offers various benefits to all its employees. The common benefit included full Health Insurance coverage, increased Vacations etc. Microsoft employees are also eligible to participate in the company's 401(k) plan. In this plan Microsoft matches the savings done by its employees with free awards of stock option, cash deposit in saving account etc. The most popular part of Microsoft's compensation and benefit program was the full healthcare coverage it offered to its employees and eligible dependents. It included among many things, Insurance on dental and vision related illnesses, on-site health screenings and discounts in memberships to prominent health clubs; organized programs to manage chronic health issues like smoking, provided access to a 24-hour health-line, etc. Microsoft provide different types of facilities to its workers like discount in the Microsoft product and other facilities regarding the service for home accessories, restaurant, travelling and also even in the baby care services. It also discounts the employees regarding the training and other manuals. Microsoft feels that the worker is in the core position of the company and they are like the fuels for the development and progress of the company. It always respects diversity in the workforce, creative ideas and suggestions. It aims to keep its employees happy, energetic and proactive in every moment for the sake of the company. Motivation is the driving force that inspires us to do accordingly and appropriately as the company expect. It is true that one cannot motivate others but can influence him or her. So
motivation consist a tough process. When the employees feel motivated they will more concentrate on their given task and try for the further development of the company as they will fell that its a responsibility of their own. This idea helps in protecting the Microsoft culture and its distinct identity. Microsoft takes a different dimension in inspiring its employees. In the earlier stage of the training, it goes through making aware to the employees about the establishment and growth of Microsoft and the sacrifice of the people to reach in such position. Microsoft employees get an idea that the success of the company is the success of its employees and the credit of this success always shared with its skilled employees. It inspires the employees in creating and brining new ideas and plannings for further progress for the company. It never discourages the skills and trying of the workers whatever it brings for the company. It believes in immediate rewarding system. This reward not always refers to money rather it may be the promotional features or other related incentives. For reward an employee should meet the goal as decided by the authority. It believes in a regular networking of the employees with the authority so that they feel attached with the company success and failure. According to the interview there was 6 core ideals identified regarding the corporate culture in Microsoft. These are; integration and honesty, frankness and admiration, interest to take the challenge, passions for customer, partnership feeling s and passions for technological advancement, responsibility in terms of commitment and finally individual brilliance and development. Corporate culture in Microsoft is always portrays with its ethical ground and causality in the working behavior. There is no strict dress code for the employees; there is flexibility in working time and interestingly senior officials in Microsoft always keep their door open so that the junior officers can easily enter in to his or her room and get necessary suggestions. Microsoft encourages sending email to the senior officials for any problem by its general staff and also expecting to reply as soon as possible. Microsoft always likes to take the challenge and face difficulties in their job. It believes that this challenge make the company more strong and also bring the employees close to each other.
The second objective was to analyze the problems that plagued Microsoft in their work culture and its consequences on the organization. Through this the researcher has found some problem in the HRM of Microsoft. These are described here: Discrimination at Workplace It has been found that there are glass ceilings and glass walls in place for African Americans at Microsoft. African Americans are stunned and disappointed in their treatment of Black employees. Racial and sexual discrimination may be describe as physical or verbal act which is intended to cause individuals or groups to feel intimated, demeaned or abused because of their rational, ethnic, national background and gender. Microsoft has been charged on various occasions for discrimination at work place and they are accused of discrimination against its employees through Performance Evaluations, Pay Packages, Promotions, Wrongful Termination and Retaliation. Discrimination through Performance Appraisal Microsoft conducts periodic appraisals on performance based on which decision used to take place of salaries, bonuses and stock option were taken. The performance appraisal used to be conducted by Microsoft's managers. The employee's appraisals were alleged that the performance appraisal system allowed for discrimination on the basis of race, color and gender. Discrimination through Compensation It is found that the Black peoples were paid less as compared to white people for the same amount of work done. The employee pay package were over lapping and broad, thus allowing
vast and huge pay difference among employee. The condition became worse when discrimination in evaluation led to discrimination in compensation. Discrimination through Promotion It has been found that Microsoft has written or unwritten policies that enabled the managers and supervisors to select the candidate for different position through word of mouth or other informal channels. Due to such technique it disallowed or prevented those eligible and deserving Black African-American employees to enter the higher position in any division or department of Microsoft. Poor Treatment of Temporary Employee The company faced another major problem with regard to its temporary employees. These temporary workers were on the payroll of the employment agency through which their job was routed, and not on Microsoft's payroll. Hence, they were not treated on par with the regular employees. They were also not eligible for any of the benefits the regular employees had, like sick leave, paid vacation or holidays, not to speak of stock options. They were not encouraged to take any initiative in their work and were considered inferior by the permanent staff. This was in spite of some of them being employed by the company for long periods of time, sometimes stretching two years. The third objective was to suggest ways and measures by which problems regarding Human Resource can be mitigated and avoided. In the recommendation section some suggestions are given.
Here are few general guidelines to prevent discrimination in Microsoft: Ensure that employment practices and employment decisions are based on actual business necessity and not on factors like race, caste, gender, colour and nationality. Review management behaviour and ensure that managers offer equal treatment of employees irrespective of race, caste gender and colour nationality etc. Establish grievance procedures for reporting, processing and resolving complaints. Train supervisors, managers, workers to recognize, confront, avert discrimination and avoid sexual harassment. Formulate a strong policy, which specifies, in writing, outlawed behaviours and the penalties they carry. The policy should specify: The behaviour that constitutes to discrimination and sexual harassment: the company should clearly state its intolerance towards such behaviours. This means employees should follow to report such discrimination to their superiors or designated company representatives. The strategies the company would follow to examine and resolve complaints. The punishments that violation of the policy will result. The assurance that reprisal will not be allowed.
In conclusion, Microsofts success is based on its people it states how flexible they are and forward-thinking than its competitors to view a new innovative change. Microsoft for betterment of its employee has taken many initiatives by giving them lots of benefits, making new changes in its workplace in infrastructure as well as by giving them good allowances. Microsoft should
always encourage its employees to start independent initiatives and they should have the time and resources to pursue new ideas. Microsoft as it is the largest organization, it faces many people problem, but it always try to overcome the problem as soon as possible as its main strength is its employees.
There are some limitations as the researcher mentioned before. So it is necessary to improve the findings and go for deep understanding in future for better output which may fruitful for the market.
A research should reach to more people as the more sample a researcher receives the more variation he or she will get and it will enhance the research findings. So it requires more interviews, more data collection and all above is the diversity in study. In further study the researcher should take some middle level and lower level employees as sample. In the future studies researchers should take more than one case company to know better about the HRM practices.
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Appendix Interview Questionnaire Q1.For how long have you been working as Human Resource Manager? Q2.For how long have you been working at the company? Q3.How many employees are working in the company? Q4. In which way do you get the employees resource? Q5. Which factors do think is important for the employees? (Knowledge, Major, Gender, Character, Age) Q6. How do you train the new employees? (Teaching methods, audio-visual technology, discussing, case studies, role playing method, self-learning method, interactive group method) Q7. Which factors are important to keep staff motivated at work? Give examples Q8. Which factors can make the employees feel satisfied with work? Q9. How is it possible to keep employees loyal to the company? Give examples Q10. If you get the right employee, how do you keep him \ her to stay at work? Q11. How to explore the potential of employees?