Assessing Human Resource Issues - A Microsoft Account

Editor's Notes

• #2: Microsoft has made strides in the business world to be one of the leaders in technology and our research will show how they have maintained that title and how they will continue to be successful in an ever changing world. We have used research regarding human resource development and how that has affected Microsoft. Our research stems from articles, journals, books, and Microsoft’s website. We will also include recommendations to Microsoft executives based on the outcome of our findings.
• #3: Microsoft Corporation was founded in 1975 by William H. Gates III. Their mission is “enable people and businesses throughout the world to realize their full potential” (Microsoft Corporation - 2011 Annual Report, 2015). Microsoft Corporation is in a very competitive field – information technology and software. They are located in Redmond, Washington, are a public company and offer a plethora of employee benefits including health insurance, work-life balance, diversity, training, and health. Microsoft Corporation ranked 72nd on Fortune 100 list and was listed as 86th on Fortune’s Best Companies to Work For 2014 (2014 Best Companies to work for, 2015).
• #4: There are two models of strategic human resource management. The first is the industrial organization (I/O) model which states that a company’s strategy if driven by external considerations. The second strategy, the resource-based view (RBV) deems that success is driven by internal considerations. The two models also differ in that the I/O model leads the debate in arguing that a company’s strategy will drive resource consumption while the RBV argues that resources determine the strategy (Mello, 2015). The process of strategic management consists of five processes. The first starts with the mission statement. Secondly, an environmental analysis takes place regarding the competition, regulations, technology, market and economic trends. The third process is an organizational self-assessment of resources and management systems. Fourth, goals and objectives are agreed upon which lead to the fifth process – strategy (Mello, 2015).
• #5: Employee engagement and retention is a critical aspect of strategic human resources management and is becoming increasingly more important for sustained business success. From an organizational point of view, employee engagement can be defined as “someone who feels involved, committed, passionate, and empowered and demonstrates those feelings in work behavior” (Bhuvanaiah, 2014, p. 62). Human capital is considered one of the 5 types of organizational assets evaluated to help increase business performance. However, due to the difficulty in measuring the value of human capital, it is often overlooked as a possible solution to organizational change (Mello, 2015). Implementing engagement practices create employees who are more energized to produce quality work resulting in a higher level of company loyalty (Lockwood, 2007). Organizations that have established a strategic human resources approach such as Microsoft, have experienced not only impressive retention rates but also business success. Research shows there is a distinct connection between engagement and employee retention. Retaining top talent is a significant goal for most organizations due to the high cost of turnover and not to mention the loss of an investment. Businesses suffer greatly when they invest in the development of their staff to then lose them to a competitor. Research suggests that “direct replacement costs can reach as high as 50%-60% of an employee’s annual salary, with total costs associated with turnover ranging from 90% to 200% of annual salary (Alen, 2006, p.3).
• #6: Although Microsoft has been recognized as a great employer to work for, its employee focus was not always leading their business directives. In the 90’s, even though Microsoft maintained a low turnover rate, they were losing some of their top talent. These employees, who received excellent training and financial stability from Microsoft, were not leaving for a competitor, but they were venturing off to start their own businesses due to Microsoft’s incredibly fast growth while starting to lack distinctiveness. Nathan Myhrvold, former Microsoft employee stated “there seemed to be a pervasive feeling that Microsoft's size is hurting it in important ways. Microsoft has grown to the point where process has become as important as outcome” (Nocera, 2000, para 21). ). In its earlier years, Microsoft engaged its employees by allowing and inspiring an entrepreneurial spirit and a sense of empowerment but as it grew, individual responsibility was lost.
• #7: Microsoft today has integrated an HR approach into their overall strategic business plan and has remained “one of only thirteen companies to be included on Fortune Magazine's annual list of the “100 Best Companies to Work For” every year since the list began in 1998” (Corporate Citizenship, 2015). In 2015, Microsoft states their “current success is based on the drive of their 100,000 employees and to continue their success they believe they “have a responsibility to create a respectful and rewarding work environment for them” (Corporate Citizenship, 2015).
• #8: This responsibility is the essence of employee engagement and it focuses on the valuation of human capital. Microsoft’s energized focus on people has helped regain and build their employee engagement practice whereas now they boast “85% of employees would recommend Microsoft as a great place to work, 93% percent feel they are treated with respect and dignity by their managers, and 94% percent feel Microsoft is a good corporate citizen in their communities and around the world” (Corporate Citizenship, 2015).
• #9: Kathleen Hogan leads Human Resources for Microsoft Corporation making her responsible for 122,935 employees worldwide. She may lead the HR department but Microsoft Corporation is still a male dominated workplace with almost 71% of their employees being male. Baby Boomers and Generation X account for over 50% of the average age of the employee population. In the United States, 60% of employees are Caucasian, 29% are Asian, and other minorities make up the last 10% of the ethnicity pool of the company. Microsoft Corporation’s engineering department is 49% of its operational functions; sales and marketing support group lead second with 45%; finance, HR and legal only account for 4%. These daily functions are housed in over 800 facilities throughout the world, with a 133 of those buildings owned by Microsoft Corporation (Facts about Microsoft, 2015).
• #10: Learning and development programs have always had a vital role to play in helping any businesses survive and thrive for success. Learning and development programs help organizations build and maintain internal capabilities so they can successfully execute their work plans.  These programs also reduce external hiring costs by evolving and developing internal employees and preparing them to take on greater leadership roles. Learning and development programs increase employee preservation by visibly demonstrating to the employees an investment has been made in their career for development and growth (Fee, 2011).
• #11: Through forty years of success Microsoft has incorporated their learning and development program giving employees the necessary skills and knowledge to be part of an ever changing company. Microsoft also displays its competitive edge by showcasing the top students in the course through a point system. As of today over two million students have registered for training (Microsoft,2015).
• #12: Microsoft not only offers training for employees but they offer training and development for customers as well. Professional Development for Educators offers training to teachers and other educators on how their services work and how to incorporate them into the classroom. They offer a certificate of completion once training has been completed to show that the educator has completed all assessments and understands the material. Through the many pages of this site teachers can choose to join a virtual learning classroom or sign up for an onsite professional to join their school for learning and development training (Microsoft, 2015).
• #13: Workplace religion and spirituality is a growing concern for an increasing number of organizations, employees, and job seekers. If corporations are going to keep up with a rapidly diversifying global landscape they will need to make accommodations for this new trend.
• #14: With globalization on the rise companies are seeing and increase in the diversity of their companies in the area of religion and spirituality, Title VII of the Civil Rights Act of l964 prohibits employers from discriminating against individuals because of their religion in hiring, firing, and other terms and conditions of employment (Pluralism, 2014). Title VII also requires employers to reasonably accommodate the religious practices of an employee or prospective employee, unless doing so would create an undue hardship upon the employer (Pluralism, 2014). Coupled with the fact that multinational corporations are increasing the incidence of collaboration it has been found that making accommodations along with proper diversity training is key for attracting and retaining a skilled workforce.
• #15: Microsoft is providing it’s leaders with cultural competency training and strategies for managing global diversity and inclusion best practices. They also offer a robust portfolio of diversity and inclusion training courses for all levels of employees and leaders around the world (Microsoft, 2015). Key courses include Managing Inclusion™, Building an Inclusive Culture: Understanding Conscious and Unconscious Bias, Cultural Dexterity™ and Consulting for Diversity Hiring developed specifically for its international HR and staffing teams focused on gender diversity (Microsoft, 2015). These training programs help to produce the benefits listed in the present slide.
• #16: Spirituality rejects this dualism and speaks of us and them. Religion is often about loyalty to institutions, clergy, and rules. Spirituality is about loyalty to justice and compassion, religion talks about God, spirituality helps to make us godly (Spirituality & Health, 2015). There is a consensus that the majority of individuals interviewed feel that religion should not be discussed at the workplace while even greater numbers feel that spirituality is appropriate.