Abstract

The case examines the growth of Microsoft Corp. from a small partnership startup to a global software firm. It discusses the changes that occurred in the culture of Microsoft as a result of its growth, and how these changes affected the employees of the company. The late 1990s saw a rise in the voluntary attrition rate at Microsoft. The case discusses the reasons for this increase and its effects on the company. It also talks about some other human resources problems experienced by Microsoft, such as the problem of recruiting new employees and the allegations of discrimination. Further, the case describes the efforts undertaken by the company to retain employees, notably, the restructuring of the company into seven new customer-focused divisions and changes made in the compensation policy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Impact of a rapid growth on the culture of a company.

Keywords

Microsoft Corp., small partnership, startup, software firm, culture, Microsoft, employees, 1990, voluntary attrition, human resources, problems, recruiting new employees, allegations, discrimination, efforts, undertaken, retain employees, seven, customer-focused divisions, compensation policy