Title page Assignment Title Student Name Tutor Name Submission Date

Table of Content

Aim

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 which website me a was clear the most of important the source of i n f o r m a t i o n . The website also had an archive o f c o m p a n y n e w s gave picture Microsoft Human Resource Policy. 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

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 the Best 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 because the 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?

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 them of workers to consider management as 'partners' rather than as opponents - 'us and us', rather than 'us and

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 results they 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

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

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

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 people than 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.

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 reimbursement by Microsoft USA.

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

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 the organisation 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:

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 selfcontrol 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.

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 of their 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 company departments 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 of how 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

Studying the above topics in compiling this assignment I have a few recommendations that might have a positive outcome for HR department of 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-andDevelopment.html www.google.ie

www.wikipedia.com