Slides 1 - Introduction

Assalamualaikum Madam Zarina, hope you have a pleasant day today. I’m Nurul Hafizah bt
zainuddin from class NBI4A. my group members includes Siti Balqis Bt Adzhar my partner for
this presentation, not to forget Ahmad Alif b Mohd Adnan, Muhamad Taufik b Shaibon and Siti
Suhaila Bt Roslan who has prepared this slides.

Slides 2 – Microsoft
For this presentation, the topic and company that we have chosen is managing compensation
for Microsoft Corporation.
Before I start, I’d like to share a quick story about Microsoft, Microsoft is a multinational
computer technology corporation which produces computer software, consumer electronics,
personal computers, and related services. Microsoft was originally based in Albuquerque, New
Mexico. Microsoft relocated to Washington State in 1979 and eventually grew into a major
multinational technology corporation. In 1987, the year after Microsoft went public, 31-year-old
Gates became the world's youngest billionaire as a founders with Paul Allen.
Both I and Balqis will explain further about this topic implies under this Microsoft Corporation.

Slides 3 - Definition
Next, I will present my findings on Compensation. Compensation can be defined as all types of
financial returns, benefits and tangible services an individual receives as part of an employment
agreement or relationship (Milkovich, Newman and Gerhart, 2010).
Non-financial and monetary compensation consist of the main factors of compensation which
ultimately lead to retention. Leonard (2008) observe that compensation programs by
organizations are measured in regard to the general pay effectiveness, employees’ contribution
to organizational objectives, applied as recruitment tools as well as used as retention and
motivational tool for employees.

Slides 7 - Microsoft pay structure

In addition to that I I’d like to discuss on Microsoft pay structure
Due to Microsoft being a high-tech company that requires employees that are most qualified for
the job, the beneficial ration of internally consistent and market consistent for Microsoft would be
the internally consistent compensation system. The organization requires employees that have
the right qualifications for a certain task with the knowledge, skills as well as the ability to
perform a given task.
1. One of the most lucrative pay structures.
The organization has an attractive salary with the average salary for Microsoft employees being
at $117,000 and the average hourly rate at $31, which is favorable compared to the
organization competitors (PayScale, 2018).
2. Stock-based compensation strategy.
Their pay structure also have a stock-based compensation strategy which aim at ensuring that it
provides ownership stake of the company’s success to its employees, where more than 85% of
the employees are eligible to restricted stock units every year in the annual stock awards. The
Incentive Plan design includes 20% of the target award payable in cash and 80% payable in
stock that vests in four equal installments.

Slides 8 - Continued
3. Cash bonus
The organization also has a cash bonus, which is attached to the employee’s performance
especially in regard to meeting the set objectives or improving the organization’s performance.
Review by rating ranges from "1" (highest) to "5" (lowest). A "3" rating equals target
compensation that is market competitive locally.
Allows employees to see how their compensation would shift based on different performance
ratings.

Slides 11 - Review
The next thing I’ll share with you is Review for Microsoft Corporation under this topic. With all
these strategies and benefits offer by Microsoft, however the internal poll shows that employees
are less satisfied with the scheme.
Only 61% employees said the total compensation is competitive compared to similar jobs at
other companies (for example Facebook, google and amazon).
Just 62% employees agreed that they are rewarded according to their job performance.
However 93% of respondents said they ‘felt proud to work for Microsoft’ and 94% said that
employees was treat wit ‘respect and dignity’.

Last Slides
Thank you for staying until the end of this presentation. We really appreciate that you took the
time to listen to our presentation. I am also would like to thank my groupmate that help to make
this presentation slides even more successful.