Microsoft Case Study Harvard Business School
Bill Gates Believed Microsoft’s core source of competitive advantage was the ability to attract, motivate and retain superior people. In attracting employees Microsoft mainly targeted the stars. Stars are the core employees that can add value to the organization through their knowledge, skills and abilities (Boselie, 2010). At Microsoft there has been a hands on mentality made for ambitious people.
Lepak and Snell (2007) built a theory about different employees and its HR strategies. Microsoft has an internalized and relational focus with its employees. Strategic value of employees is high because employees are given high autonomy. In general all employees are highly unique. This is why Microsoft has always wanted to hire young and smart people. Young people are still more creative than older people, and can be shaped by the company. The lack of experience was seen as beneficial and trainings were given internally. This makes Microsoft’s staff knowledge based, and therefore human resource management has to be commitment based.
Motivation at Microsoft was stimulated by a good performance evaluation procedure inside the company. Highly elaborated feedback gave its employees a good overview of their performance. Furthermore, Microsoft was among the most highly desired companies to work for. People at Microsoft always had the feeling their contribution could change the world
In retaining its employees, salaries were increased over the last decades to stimulate people to work for Microsoft. Furthermore, more exciting stock options were granted to good performing employees. The gap between salaries at Microsoft and other multinational companies was reduced.
The employment relationship Microsoft offers could be placed in the mutual investment category of the employment model by Tsui and Wu (2005). The mutual investment category is a balanced long-term investment based on an economic as well as a socio-emotional exchange (e.g. training and growth opportunities).
Lepak and Snell (2007) built a theory about different employees and its HR strategies. Microsoft has an internalized and relational focus with its employees. Strategic value of employees is high because employees are given high autonomy. In general all employees are highly unique. This is why Microsoft has always wanted to hire young and smart people. Young people are still more creative than older people, and can be shaped by the company. The lack of experience was seen as beneficial and trainings were given internally. This makes Microsoft’s staff knowledge based, and therefore human resource management has to be commitment based.
Motivation at Microsoft was stimulated by a good performance evaluation procedure inside the company. Highly elaborated feedback gave its employees a good overview of their performance. Furthermore, Microsoft was among the most highly desired companies to work for. People at Microsoft always had the feeling their contribution could change the world
In retaining its employees, salaries were increased over the last decades to stimulate people to work for Microsoft. Furthermore, more exciting stock options were granted to good performing employees. The gap between salaries at Microsoft and other multinational companies was reduced.
The employment relationship Microsoft offers could be placed in the mutual investment category of the employment model by Tsui and Wu (2005). The mutual investment category is a balanced long-term investment based on an economic as well as a socio-emotional exchange (e.g. training and growth opportunities).
References: Kim S Cameron & Robert E Quinn. Diagnosing and Changing Organization Culture, 1999. Chapter 3: The competing values Framework, p. 33-41