Microsoft Case Study
HUMAN RESOURCE MANAGEMENT
MICROSOFT: COMPETING ON TALENT
CASE STUDY 5/09/07
Microsoft: Competing on Talent
CASE STUDY
OVERVIEW
Microsoft has had a long standing practice of aggressively pursuing and hiring the brightest engineers in the software field. Yet by 1999 Microsoft had matured and many of its talent employees were leaving the company as documented in a Wall Street Journal article “As Microsoft Matures, Some Top Talent Chooses to Go Off Line”. The article reported that many employees were tired of grueling deadlines, frustrated by the bureaucracy, and lured away by high-tech start-ups. Newly appointed president and COO recognized that Microsoft had to change or adapt some of the human resource practices it had used in the past. This paper will analyze the case study and discuss Microsoft’s human resource policies past and present.
WORKING AT MICROSOFT Microsoft Corporation is considered the New York Yankees of computer software. They have built a reputation on only hiring the most talented and intelligent developers in the industry. Not only do they focus on hiring the brightest, but they also make a point to retain their employees through competitive pay, generous stock options, and engaging work environment. Engineers see working at Microsoft as a status symbol, similar to being accepted at an Ivy League college. Developing software is much like being an artist, you take an idea or concept and turn that into something concrete, similar to a painting. If people like what you have created they will buy it and that is ultimately how the product is judged. Microsoft is the leader of the personal computer and workstation industry, so developers feel that working at Microsoft is an opportunity to showcase their talents and products to the widest audience. Knowing the breadth of customers utilizing Microsoft’s products motivates the employees to work hard and create something special. In addition, the large
MICROSOFT: COMPETING ON TALENT
CASE STUDY 5/09/07
Microsoft: Competing on Talent
CASE STUDY
OVERVIEW
Microsoft has had a long standing practice of aggressively pursuing and hiring the brightest engineers in the software field. Yet by 1999 Microsoft had matured and many of its talent employees were leaving the company as documented in a Wall Street Journal article “As Microsoft Matures, Some Top Talent Chooses to Go Off Line”. The article reported that many employees were tired of grueling deadlines, frustrated by the bureaucracy, and lured away by high-tech start-ups. Newly appointed president and COO recognized that Microsoft had to change or adapt some of the human resource practices it had used in the past. This paper will analyze the case study and discuss Microsoft’s human resource policies past and present.
WORKING AT MICROSOFT Microsoft Corporation is considered the New York Yankees of computer software. They have built a reputation on only hiring the most talented and intelligent developers in the industry. Not only do they focus on hiring the brightest, but they also make a point to retain their employees through competitive pay, generous stock options, and engaging work environment. Engineers see working at Microsoft as a status symbol, similar to being accepted at an Ivy League college. Developing software is much like being an artist, you take an idea or concept and turn that into something concrete, similar to a painting. If people like what you have created they will buy it and that is ultimately how the product is judged. Microsoft is the leader of the personal computer and workstation industry, so developers feel that working at Microsoft is an opportunity to showcase their talents and products to the widest audience. Knowing the breadth of customers utilizing Microsoft’s products motivates the employees to work hard and create something special. In addition, the large