Microsoft People Problems
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Case Details:
Case Code : HROB035
Case Length : 15 Pages
Period : 1994-2006
Pub Date : 2003
Teaching Note : Available
Organization : Microsoft Corp.
Industry : Information Technology and Related Services Countries : USA
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Excerpts Contd...
Elements of Culture
At Microsoft, employees were asked to justify everything they did. No one was
spared from criticism, and people were severely reprimanded when they left
loopholes in their projects. Senior managers had regular meetings with the
demanding Bill Gates. So dreaded were the meetings with Gates that employees
were known to have mock sessions with their colleagues to prepare themselves for
the actual one.
Ramesh Parmeshwaran left Microsoft after seven years to start a company called
Askme.com, an internet advice portal. He said that Microsoft lacked the "human
element"...
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Recruiting Difficulties
Microsoft experienced trouble in recruiting people as well. A number of
graduates were choosing smaller companies with smaller packages over
Microsoft during campus placements, mainly for the challenges they offered.
Patrick Nichols, got job offers from Microsoft and Trilogy Software Inc. (a
maker of e-commerce programs) after he graduated from Cornell University. In
spite of efforts by Microsoft recruiters, he chose Trilogy because Microsoft
could not match Trilogy's fun-loving culture...
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Issues of Discrimination
The company faced another major problem with regard to its temporary
employees. Microsoft often employed temporary workers, sourced from
employment agencies, to meet the need for workers at short notice.
At any point of time, temporary workers constituted approximately
one-third of the total workforce of the company. Temporary workers
were employed as customer service representatives, software testers
or even programmers... |
Checking the Exodus
On realizing the magnitude of the attrition problem, the top management at
Microsoft began taking steps to curb the departure of important people. Gates
himself was closely associated with identifying the key people the company did
not want to lose, and trying to retain them by making their jobs more
exciting...
Exhibits
Exhibit I: Antitrust Laws in the US
Exhibit II: Financials
Exhibit III: Organizational Structure at Microsoft after Restructuring
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