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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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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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"...

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

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...

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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