Microsoft Corporation Case Analysis

Microsoft Corporation Case Analysis

Microsoft is the leading and the largest Software Company in the world. Found by William Gates and Paul Allen in 1975 Microsoft has grown and become a multibillion company in only ten years. It all started with a great vision – “a computer on every desk and every home” - that seemed almost impossible at the time. Now Microsoft has over 44,000 employees in 60 countries, net income of $3.45 billion and revenue of 11.36 billion. Company dramatic growth and success was driven by development and marketing of operational systems and personal productivity applications software.

In Microsoft training and developing employees is very important aspect of the company’s day-to-day operations. At Microsoft all employees are “thrown” into normal business operations right away. Since 1975 the company has used the method “learn as you go”. It depends heavily on learning by doing rather than learn and then do it. The company recruits young and talented specialists from colleges and universities. The company is well known to look for four important qualities in all-new hires: ambition, IQ, technical expertise, and business judgment. Experienced employees conduct interviews and it is very important to note that the team managers are the people that actually hire, not the recruiters. That gives the managers the flexibility of selecting and hiring the best of the best. It is an interesting fact that only two to three percent of all recruits expressing an interest in Microsoft are hired. Once hired the new employees are assigned to teams where they start doing projects by close supervision. The new employees are expected to know the specifics of their job responsibilities and how to perform different tasks. That is why in May 1997 Microsoft launched the new Microsoft Skills 2000 initiative. The purpose of Skills 2000 is to reduce the growing gap between company needs and available skills by reaching out to employees in the computing work force as well as those interested in developing an IS career. Microsoft pays relatively low salaries and often does not pay for overtime, but employees are compensated by excellent benefits. The company offers Savings Plus 401(k) plan, Employee Stock Purchase Plan (ESPP), paid maternity and paternity leave, tuition reimbursement, annual bonuses, etc. The company’s culture is also an important HR factor as it refers to employee motivation, development and quality of work. Microsoft has anti-bureaucratic atmosphere that gives the employees the freedom to take risks.