Professional Documents
Culture Documents
CSR of Microsoft. Kinzzz
CSR of Microsoft. Kinzzz
CSR of Microsoft. Kinzzz
Washington, that develops, manufactures, licenses, supports and sells computer software,
consumer electronics and personal
computers and services. Its best known
software products are the Microsoft
Windows line of operating systems,
Microsoft Office suite, and Internet
Explorer web browser. Its flagship
hardware products are Xbox game console
and the Microsoft Surface series of tablets.
It is the world's largest software maker
measured by revenues. It is also one of the
world's most valuable companies.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975 to develop and sell
BASIC interpreters for Altair 8800. It rose to dominate the personal computer operating
system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows. The
company's 1986 initial public offering, and subsequent rise in its share price, created an
estimated three billionaires and 12,000 millionaires from Microsoft employees. It is
considered the third most successful startup company of all time by market capitalization,
revenue, growth and cultural impact. Since the 1990s, it has increasingly diversified from the
operating system market and has made a number of corporate acquisitions. In May 2011,
Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
As of 2013, Microsoft is market dominant in both the IBM PC-compatible operating system
and office software suite markets (the latter with Microsoft Office). The company also
produces a wide range of other software for desktops and servers, and is active in areas
including internet search (with Bing), the video game industry (with the Xbox, Xbox 360 and
Xbox One consoles), the digital services market (through MSN), and mobile phones (via the
Windows Phone OS). In June 2012, Microsoft entered the personal computer production
market for the first time, with the launch of the Microsoft Surface, a line of tablet computers.
The low-slung buildings nestled into the 29-acre wooded campus were
designed in the shape of an X to maximize the number of windows. Unlike in the open-plan
buildings popular elsewhere, each employee still had a fully enclosed 9 x 12 office with a
door, to ensure privacy necessary to sit and think. Numerous cafeterias, with food at prices
subsidized by the company, facilitated social interaction. Microsoft spent more than $8,000
per employee each year on non-mandated benefits, with more than $715 a year per employee
on beverages and food subsidies alone. As one employee noted, Anything with caffeine is
free. In many ways, it had the feeling of a college campus and provided a comfortable postcollege sense of familiarity and belonging.
Although employees average age moved above thirty in the mid-1990s, the culture remained
remarkably unchanged: employees dressed informally, there were no status symbols, and the
early ethos of thrift remained. There were no set work hours, but the culture attracted those
comfortable with fourteen-hour days and working weekends. Yet motivation and morale
routinely measured in internal surveysremained high
Microsoft is considered by many to be an ideal place to work. The company has won several
awards forinnovation, for their commitment to diversity, and for their flexible work
arrangements. It has always been aleader in the market with regard to its compensation. With
a total strength of about 80,000 employees acrossthe globe, and a total revenue exceeding $15
billion, it is one of the biggest and bestknown6 technologycompanies in the
world.Employees have access to the most current resources, from an intranet with source
code libraries to periodicallibraries to stateoftheart research labs. Their work is personally
challenging and on the cutting edge oftechnology. The organization believes in providing the
employees whatever tools and technologies they need toachieve the best results possible; and
the employees are expected to create software and entertainmentproducts that could sell
millions of copies worldwide. The office campuses at most locations are considered
thebenchmark of technology hubs, with fir trees, forested trails, snowcapped mountain
vistas, basketball courts,and even shuttle buses for employees to make use of.Employees at
Microsoft are recognized as the intellectual fuel and are provided with various benefit plans
andresources, which are designed to retain them. Lisa Brummel, who joined as the Chief of
Human Resources atMicrosoft, in 2005, started reshaping the company's HR strategies to
make them more innovative andcustomized to individual employee needs. The focus was to
project Microsoft, from an HR perspective, as anemployeedriven organization. As an
organization, Microsoft offers a lot of flexibility to employees the flexiblework
arrangements and flexible benefit plans offered at Microsoft are often considered Best
Practices by many employers.
HR STRATEGY AT MICROSOFT
Microsoft Corporation has
adopted the Performance
Culture Model`` as the best
approach
to
success.All
people
drive
the
its
critical
metrics
are
categorized andmeasured as
per the Growth Pyramid
shown
in
Figure.The
external
internalsurveys
and
is
very
substantial and projects Microsoft as a leader in this regard across the industry.Some of the
categories across which the surveys are done,analyzed, and the results published are
mentioned below.
1. Organization: Organization size, open positions, line HR ratios
2. Organization Health: Workgroup Health Index,Microsoft Pulse Index, Microsoft Culture
Index 3. Staffing: Hiring stats types of hires, channel wise hiring stats, positions closed
internally, hiring spends,lead time, % of hiring plan, net adds, offer acceptance rates, reasons
for offer decline
4. Talent Management: Good attrition, bad attrition, YOY and QtronQtr tracking, reasons
forbad attrition, % retention of high positions, % of promotions, succession planning
indicator, and successionplanning usage
5. Diversity: % of women (target vs. actual), % of women hired, % of women talent losses,
reasons for badattrition, % of women in leadership succession slate, % of Managers and
employees completing MSDiversity training programs, % of other diversity hiring
6. Manager Capability: Span of Control, Organization Depth, % of Managers
7. Learning & Development: Field Readiness Index, number of employees trained on
employeedevelopment programmes, number of managers trained through management
excellence framework (that provides for management development through career events,
continuous learning and buildingconnections)
8. Leadership Development: % of leadership hires, % of leadership attrition, succession
planningindex (%of successors in stages of readiness for a Leadership role)
9. Rewards: % of budget used on rewards
Besides this, they periodically run market surveys to ensure their competitive positioning on
compensation.
While tracking the above metrics has shown more robust action planning to improve scores
on each of them, there are two that that have made their People Review process much more
meaningful ensuring bothorganizational readiness and talent management. These are the SPI
and the SPU:
The Succession Planning Indicator (SPI) that is designed to help measure how well the
organization is positionedwith weightings assigned to Ready Now and One Move Away
successors for leadership positions.
The Succession Plan Usage (SPU) is an index designed to assess both the quality of the
previous years successionplans and whether an organization is effectively leveraging its
succession plans when filling open leadershippositions. It indicates the percent of leadership
team positions that were filled during the past year by someonewho was on last years
succession slate.
In present times of recession and organizational restructuring, what businesses seek of HR is
to: a)understand the talent needs of the business b) help develop strategic plans regarding
employees c) identifytalent issues before they impact the business and d) very importantly,
help identify new business strategies.
At Microsoft, the HR department is made accountable for maximizing the value of their
people asset to drive business success. Core HR functions, processes and practices are
divided among vertical tower structures foreasier and more transparent flow of information.
The relatively independent functions also enable the businessneeds to be more closely aligned
and measured from a function unit perspective.
1. Talent Acquisition & Development
2. Management Development
3. Leadership Development
4. Management of the evolution of the Microsoft Culture
At Microsoft, the organizational culture is often termed as facilitative by the management
there are significantinvestments made in the development of employees, and most current
support is provided for optimum career growth. The aim is to receive the best talent which is
passionate, capable, and growthoriented.
strategies
at
Microsoft
included
sourcing
people
from
the
elite
change their methods when thenumber of new employees required could no longer be
sourced only from universities.The recruiting practices continue to be active rather than
passive, with Microsoft head hunting the best staff.These staff are found, monitored and
recruited from other companies by over 300 recruiting experts.These staffs actively recruit
suitable employees and focus on the right type of person rather than the right typeof skill
level.Microsoft uses human resources forcompetitive advantage, basing its success on having
the very best25 people in the industry and inspiring them tobe the best. It is this that leads to
Microsofts unique recruitment practices.What is most crucial here is that Microsofts
recruitment practices meet its human resource needs. It is animportant sign of the focused
approach of Microsoft, with its actions always leading towards its ultimate goals.Some
important factors to be considered in recruiting staff include that the recruiter should be from
the samefunctional area and that candidates should not be deceived about the negative
elements of a job. The interviewprocess at Microsoft reflects this with the new employee
being interviewed by the manager. The recruitmentprocess also goes further than just
informing the employee about the negative aspects, instead the recruitmentprocess actually
tests the employee on the negative aspects, putting them under the same type of pressurethey
would be put under on the job.
being free to decorate their office as they please; and the provision ofsubsidized food and
drink.Employee satisfaction was also afforded by the opportunity for growth, development
also occurred byencouraging horizontal transfers, and employees were encouraged to develop
themselves by switching jobs. Topmanagement is required to coach lower levels and assisting
in their development. These practices are designedto increase employee satisfaction and
commitment to the organization, while maintaining the same spirit thesmall company began
with.For many organizations, empowering employees is seen as a relatively new approach to
handling and motivatingemployees one which requires gradual changes to the corporate
government and the work culture. However,in case of Microsoft, it can be seen as an inverted
view wherein the idea of employee empowerment was aninherently intrinsic part of the
work culture since its inception.Three aspects of tasks that affect job satisfaction are job
complexity, degree of physical strain and perceivedvalue of the task. Microsoft manages this
by providing the high complexity high achievers require and byensuring the perceived value
of the task is high. This high value is communicated via the highachieving culturethe
company maintains.
EMPLOYEE REWARDS: The Options drivenEngine
As an organization, Microsoft still follows the firm belief of its followers in linking employee
ownership withemployee motivation and retention. Critical to this is the link between
individual performance and reward, withsemiannual performance reviews linked to pay
increases, bonus awards and stock options. The formal reviewsystem also includes more
common evaluations by managers to ensure no unexpected deviations. The systemalso
includes the process of employees evaluating themselves, these selfevaluations then being
sent to themanager who does their own evaluation. The employee and manager then meet to
discuss the review.Stock options awards are based on whether the employee is considered a
longterm asset of the company andawarded on this basis. This is an important symbol of
Microsofts commitment to retaining good employees. InIdeas That Will Shape the Future of
Management Practice (Bohl, Luthans, Hodgetts& Slocum) human resourcesis described as
being the way of the future with it being argued that they will see a more mature articulation
ofthe importance of people as a firms only sustainable competitive advantage. The change is
described as givinghigh reward for high performance with the focus on a partnership.
Microsoft recognizes the importance of itspeople and this is reflected in the reward systems,
in the sense that not only current achievements arerewarded but also rewarded are stocks to
those employees that are seen as valuable future assets of thecompany. This can be seen as a
prime example of the focus on a partnership that Microsoft aims to foster withits
employees.Important to the reward system is also the fact that there are two reward paths
available, one for thosefollowing the technical path and one for those following the
management path. The skills of employees can bedivided into three areas: conceptual skills,
human skills and technical skills. Typically, conceptual skills becomemore required and
technical skills less required as one moves up the corporate ladder. Microsoft is a
companyvaluing technical skills, due to the nature of its product. In most organizations,
employees with conceptual skillswould be rewarded by moving up the corporate ladder,
while those with technical skills would not advance.Microsoft, however, offers two
advancement paths allowing those with technical skills to advance as technicalexperts, just
as those with conceptual skills advance as managers.By having these two reward systems,
Microsoft effectivelycommunicates that both sets of skills are valued. This is also an
important sign of Microsofts consistency. Theyrecruit people for technical ability and so not
rewarding for it would be dissatisfying to employees.
GLOBAL BENEFITS:
Everyone works differently and is motivated by different things. Thats why they offer
competitive pay and a wide assortment of benefits to help employee make the most of
their life at work and away from it. In exchange for a job well done, they reward employee
well, invest in their health and financial future, and because employee are more than their
job make sure employee have time to pursue their interests and passions away from the
office. Even their products and technologies help employee balance work with their life away
from work by making it easier to work remotely and manage their schedule. They understand
that employee will enjoy work more and do a better job if employee also have a full,
rewarding life.
Compensation
Insurance
Employee Recognition
Stock Award
Spot Award
GM Award
Service Award
Holiday allowance for Mid-Autumn Moon Festival, Dragon Boat Festival & Chinese
New Year
Allowance for special occasions, such as marriage, maternity, and bereavement
Paid Leave
Twelve days of annual leave, and fifteen days each year after service of five years,
plus one additional day for each additional year of service after the sixth service year;
up to 30 days a year.
Paid sick leave up to fifteen days a year
Maternity leave up to ten weeks for female employees
Paternity leave
Volunteer leave up to three days each year
Year-end party
Personal travel allowance
Family days
Movie days
Discounts on massage service, shops and restaurants
Sports club activities
Career Development
Whether employee choose a management role, dive deep into a technology, or explore
multiple professions, employee will find everything employee need to drive their career at
Microsoft. It goes beyond trainingalthough with over 2,000 courses available globally in
classrooms or online, employee will have plenty of opportunities for that. They make sure
employee and their manager dedicate time each year to discussing their career development,
and employee can access their online career resources anytime. Plus, to give each other a
hand in getting ahead, they are all encouraged to chooseor to bea mentor.
More Than a Job: While a career at Microsoft will always be about working with smart
people, taking on big challenges and defining the future of technology, it's also about
enjoying their life. Their people really value the idea having a good life, both at work and
away. Their culture, their benefits and their work style truly reflects this.
Vibrant and Passionate Culture: The passion of their employees is at the very essence of who
they are. The energy is totally infectious and the people around employee bring out the best in
employee every day. The camaraderie at Microsoft is unique for a large company.
Their Philosophy: An individual adventure
Defined roles. Each of their jobs has clear requirements for success but lots of room to push
boundaries and grow. Managers provide ongoing support, but ultimately employee are
empowered to shape their personal experience and chart their own career path. Employee can
go deep in an area of expertise, or move across functions or businesses to experience a
breadth of opportunity.
Career path options.Employee dont have to be a manager to move up. Both individual
contributor and management careers progress all the way through senior levelsthey highly
value both.
Movement across professions.They define desired results and consistently apply them for all
professions available in their business groups. This makes it easy for employee to learn about
each profession and identify and develop the skills employee will need if employee want to
make a change.
Their Career Guide: a clear way to manage their career
Their Career Guide is a tool that describes careers across the company and provides visibility
to those opportunities to help employee manage their career. The Career Guide helps
employee understand the skills and capabilities that contribute to success in todays
environment, and provides a variety of ways to develop both in role and for their future
career. As part of their development, employee will have the option to engage in some 2,000
training programs taught by instructors from leading educational institutions and offered
online, virtually, or in classrooms around the globe. Employee cant beat the level of
investment they place on career development.
Mentoring & Networking: Connections to help us grow
At Microsoft they share knowledge, experiences, and resources to help each other achieve
their career goals and grow both professionally and personally.
Mentoring allows employee to learn from the experiences of professionals within and outside
of their own area of expertise, and to build a network to help find opportunities that can
promote their development. Mentoring is a great way to make a big company feel smaller
and its opportunities more accessibleto each of us.
Employee Resource Groups, Employee Networks and Employee social groups allow people
with common interests or backgrounds to connect with each other. Do employee love pets,
vegetarian cooking, or the environment? Do employee share a cultural background or special
need with other employees? Chances are employee will find a network of people with similar
interests and/or needs at Microsoft, and employee can connect with them as employee
develop their career and lifestyle. Being a part of the Microsoft community is a rich, fulfilling
experience.
Beneath each performance objective summarize and rate results for this Review
period
Discuss specific reasons for the level of performance achieved on each objective, for
example:
Personal factors that helped or hindered performance
Situational factors (e.g., resources, people, events) that helped or hindered
performance
List 5-7 specific, measurable performance objectives in priority order for the next
Review period
If employee are a manager, objectives should cover their contribution to their group or
organization, as well as their individual contribution
If employee are a senior manager, include steps employee are taking to understand
and value diversity in their organization
This section is for discussion only. Written comments are not required.
In the Review meeting, it is important to have a brief discussion of the
employees longer-term interests, goals, and concerns. This discussion could
cover a variety of issues such as: things that are motivating or de-motivating to
the employee about his/her job and working at Microsoft; perceived
opportunities for learning, growth, and contribution; jobs or assignments of
interest to the employee; support or assistance the manager can provide
Feel free to comment on work assignment, the Review process, or the company as a
whole.
B. Reviewer Comments:
Both the reviewer and the employee were required to complete the review form which
became the basis of at least two one-on-one feedback sessions. The on-line form was also
linked to other resources and help such as Microsoft Success Factors/Competencies, Giving
and Receiving Effective Feedback and Managing Employee Performance.
Definition
Exceptional performance rarely achieved. Marked by precedent-setting results
beyond the scope of the position.
Rating
4.5
Definition
responsibility.
Consistently exceeds
all
position
requirements
and
expectations.
Accomplishments are highly valued and may be well beyond the scope of the
position. Demonstrates higher standards of performance excellence relative to
individuals with comparable levels of responsibility.
Consistently exceeds most position requirements
4.0
and
expectations.
3.5
Successfully
3.0
objectives.
2.5
MICROSOFT AT INDIA
Microsoft Indias HR Approach
Career Management
Microsoft India provides both vertical and lateral growth. Lateral growth through job
rotation.
Six business units have different business divisions where employees can make
career.
Research,
Development,
Testing,
Consulting,
Sales & Marketing,
Technical support,
Senior Employees behave as Mentors.
Benefits
The company offers Savings Plus 401(k) plan, Employee Stock Purchase Plan (ESPP), paid
maternity and paternity leave, tuition reimbursement, annual bonuses, etc. The companys
culture is also an important HR factor as it refers to employee motivation, development and
quality of work.Employee benefits were standardized.Flexible Benefits in India.
At
Microsoft India they understand that each employee has unique benefit needs and to meet that
they offer flexible benefits. Flexible benefits puts the control in their hands to choose the mix
of benefits that best suit employee and their family. They make the benefits fit employee
instead of just offering a standard set of benefits. Heres a birds-eye view.
Health and Wellness
They provide comprehensive and flexible healthcare coverage for employee and their eligible
dependents. Plus they offer dental and vision coverage, on-site health screenings,
Diversity
Manager capability
Learning & development
Leadership development
Rewards
Their 30th employee giving campaign, in which the company matches employee
financial and volunteer contributions. In Fiscal Year 2013, Microsoft and its
employees gave more than $100 million to over 18,000 nonprofits worldwide, and
surpassed $1 billion of total contributions since their first campaign in 1983.
The launch of Microsoft YouthSpark, a global initiative to connect hundreds of
millions of youth with opportunities for education, employment and entrepreneurship.
In its first year, YouthSpark empowered more than 100 million youth in over 100
countries.
Through Technology for Good,they donated $795 million in software to more than
70,000 nonprofits. They also developed a program to donate Office 365 to nonprofits
in 41 countries and help them better serve their communities.
To address climate change,they met their goal of carbon neutrality by establishing an
internal carbon fee to guide responsible choices and practices that help us minimize
their environmental footprint.
They enhanced their transparency practices by releasing their first report of law
enforcement requests for Microsoft account user data. This report detailed the number
of data requests they received from official legal entities, the number of requests they
granted, and the rigor of their review process for each request.
BIBLOGRAPHY
www.google.com
www.wikipedia.com
www.microsoft.com