Microsoft Hr

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Date Submitted: 02/27/2011 10:25 PM

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Microsoft - Competing on Talent

|Situation analysis |

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|Microsoft started as a small startup with 1000 employees and grew to more than 30000 employees in 1999, with an emphasis on having |

|the brightest and the best talent since they believed only the best minds can deliver the most efficient software in the world. The |

|recruitment process was also rigorous with almost more than ten interviews before hiring the candidate. The general principle was "n|

|minus 1" which meant they would not have many people in the company and would depend on the number they had, to stretch, execute and|

|deliver on their tasks. This brought about what we know as Microsoft culture, working almost 14 hours a day. Successful technical |

|employees were promoted as managers sometimes managing a team of 10 or 200 overnight depending on the scale of project. |

|Decision moment |

| |

|Steve Balmer was appointed as the COO and brought in an improvement in the performance review and the entire change in traditional |

|Microsoft HR practice. He increased the base pay from the 50th percentile to 65th percentile and at the same time the nonexecutive |

|ladder levels were increased from 12 to 22 which helped in promoting people who are doing well every 18 months to 2 years rather |

|than 3 to 4 years earlier. |