HRM Practiced In Microsoft - Case Study Example

HR Management: PEOPLE & PERFORMANCE (Analysis of Microsoft Inc) In order to sustain the business operations in a competitive environment, a company requires to have sound strategies for marketing, technical, communication, research and development, marketing & sales, social responsibility and all this can be effectively managed if the company is able to manage its workforce and HR policies. In fact effective HR policies are being a used as a tool to take on today's competitive environment by many international organisations. The workforce is one of the key stakeholders in the business, requiring fullest attention. Managing other operations and activities becomes far more convenient if a company is able to have a pool of talented and motivated workforce. Terry & Franklin (1994) define management as 'a distinct process consisting of activities of planning, organising, actuating and controlling performed to determine and accomplish stated objectives with the use of human beings and other resources'. In this study, we'll analyse the manner in which Microsoft, leader in providing software solutions, has been taking care of the needs of the different sets of employees. For the purpose of this study, we've selected Marketing and Technical, the two very crucial departments in today's context. During the study an effort would be made to figure out different types of needs of the employees in these two departments and how the management tries to fulfil those needs. Microsoft is a kind of brand which is known and available in almost all parts of the world serving millions of customers around the globe. The company says that1, "We're able to do great things in part because our incredible team is a diverse one". Well, the globalization regime knows no geographical boundaries and what matters is economic exchange and business ventures. That is exactly what Microsoft appears to have tapped in the global market while trying to take advantage of the 'strengths of diversity'. The stated diversity values at Microsoft are: Thinking and acting globally. Microsoft employs a multicultural workforce that generates innovative decision-making for diverse customers and partners. Innovating. Innovation helps lower the costs of technology. Showing leadership. Microsoft shows leadership by supporting the communities amongst which the company works. In order to serve different market segments, the company broadly divided its workforce in eight regions namely; United States; Asia Pacific; Canada; Europe, Middle East & Africa; Greater China Region; India; Japan and Latin America. This helps the company in planning the job profiles on the basis of prevailing market conditions. The fact that company has carved out separate regions for China and India is an indication towards the potential these regions hold. Microsoft being an international brand and having operations almost all corners of the world, with the help of its own offices in more than 100 countries around the world, besides having strategic arrangements with others. The company is therefore almost perpetually in need of new people with newer ideas to move ahead towards achieving the competitive targets for the company. In order to assess the needs of new workforce, the company prepares and keeps on regularly updating; i. The marketing strategies and sales targets planned for the year/ region. Microsoft prefers to have ambitious targets and with the levels of competition increasing and margins shrinking, efficiency and effectiveness are the key consideration in planning the requirement of personnel. ii. The employees' turnover ratio also plays a crucial role in such requirement. In fact the employee's turnover ratio depends upon the effectiveness of the HR management strategies and motivators being worked out. Microsoft considers its workforce a source of strength for the company and provides opportunities to the workforce for improving their skills, knowledge and capabilities by way of imparting sufficient training and development opportunities2. Company believes that the career and professional development is a way developing a partnership amongst the employee, the manager and the company. Therefore, if nobody leaves the job this year from the company, then the company will of course be looking to have fewer recruitments, while focusing on granting promotions and bonuses to the loyal workforce. iii. The budgetary provisions under the HR department, of course are a key consideration as it will help in deciding about the salary and perquisites structure for the workforce. iv. Regional considerations like the size of the market, topography of the area etc. For example, if the market/country is a big size, it requires a separate focus and a dedicated team. For example India, being a huge market with many more opportunities for the company, it certainly helps to have a dedicated team from top to bottom. But if the market size is small, it can be clubbed with some other countries/ regions. For example, the European nations, though a potential market for the company have been clubbed together for one set of employees and management to look after. The sales force and lower level employees can of course be from the respective markets. Similarly, the topography and availability of facilities like transport, communication etc. also determines the kind of the workforce the company might be recruiting. v. Strategies of competing companies also play a crucial role in the selection and recruitment policies. Sometimes, head-hunting from amongst the rival companies makes the situation quite interesting. Companies require adopting aggressive marketing communication and sales promotion strategies if the rival company is seen to adopt an aggressive stance. vi. The level of involvement in marketing and promotion activities also provides the need for recruiting the workforce. Microsoft has been proudly proclaiming that it is proud to be associated with the anointment of Mr. Barak Obama, as the 44th President of USA. The company says3, "Microsoft is proud to be part of this event by helping to bring the inauguration activities online". Such events obviously help in further strengthening the brand image of the company. This helps in propagating the intended message and creating adequate marketing space. Marketing Department Microsoft, being an international organization, requires marketing people within different market segments. These market segments are having different sets of requirements, paying capacities, customer profile and competitive environment. Therefore, the marketing segment itself happens to be diverse one. Those entrusted with marketing responsibilities are the ones who an interface between the company and the customer. How these employees approach the market segment and how they present the company and its products will in the long run help in shaping the brand image of the company. Today's globalized world requires that producers and manufacturers chase the customer by making all out efforts to convince him or her about the suitability of their products. When the marketing department or the people representing Microsoft approach the customer with a new software solution, the company tries to make sure that the prospective customer is already aware about the product or service through the buzz created in the media. If we take a look at the world around us, we can easily figure out the distinctive emphasis on marketing communication, public relations or advertising techniques in reaching out to the customer. Traditionally 4Ps were considered as cornerstone of any marketing activity. Product, price, place and promotion formed the marketing mix. While each component had its role in forming the marketing strategy, promotion essentially meant reaching out to the customer through advertising and media campaigns. The marketing campaign is in fact considered successful, if the company is able to create a genuine buzz around its product/s and able to raise the curiosity levels of the prospective customers. In general the needs of employees entrusted with the marketing jobs are; 1. A supporting brand image or brand equity 2. Thorough knowledge about the diversity in the market and idea about the geographical composition 3. Good interpersonal communication skills. This is very important for the marketing team as it has to deal with different types of people. 4. Knowledge about research methods and techniques, so that while trying to approach a market, the marketing team could carry out some preliminary research about the approach to be adopted for that particular market. In addition, if something is found to be not going as per the plans, the marketing team must be able to take a corrective course. 5. Knowledge about the product features and customer's needs, so that the marketing person can correlate the product features with customer's requirements. 6. Thorough knowledge about the pricing of the product and payment plans of the company 7. Knowledge about the existence of competitive companies and products. It is worthwhile here to mention that the marketing team must try to solicit information, which is not yet available in the public domain. 8. Knowledge about products and services being offered by competitors in the market and how the product from Microsoft is a better alternative Therefore, accordingly the job is designed, training needs are assessed and employees are trained by Microsoft not only to make the marketing team more effective, but to motivate the workforce as well. The marketing division at Microsoft is broadly divided into five departments, namely4: Business Development: This department is entrusted with developing strategies for establishing strategic alliances and partnerships with companies, groups, countries, sporting bodies etc. The employees in this department are supposed to be futuristic in their approach, with an eye on prospective benefits that can accrue to the company after associating with such companies. Therefore, Marketing Communications: Communication forms a crucial part of managerial activities. Marketing communication in turn helps a company in building a brand, creating brand loyalties, increase in sales, cutting costs, etc. Microsoft being a truly global company, requires to bring out appropriate strategies depending upon the geographical locations, local needs, diversities, local values and beliefs etc. Therefore, this particular department oversees the development of global communications strategies for the company. Channel Marketing: Having adequate number of channels so that the customer can have easier access to the products and services is very crucial for a company. Quite often having a reliable and reputed channel partner helps a company in providing a readymade market and easy reach for customers. In addition, in order to gain the loyalty of the customer, the after-sales services prove to be of crucial importance as the marketing division remains in touch with the customer, and just in case of any future requirement can help out him. Customer Research: Research is in general carried out to look for newer opportunities and to remain in business. In the era of globalisation, which effectively means all round competition in almost every walk of life, IT is one such field, which requires research not only to ward off competition but to be relevant with the times. Therefore the customer research department at Microsoft helps the company in developing research strategies and engaging business leaders to evaluate insights helping out in drive critical business decision making. Product Management: This department of the Marketing wing is another crucial component for effectively realising the goals of the company and creating a roadmap for the company which helps in planning out a launch event and monitoring the response. This department in fact keeps an eye on the product development since its conception and inception, besides planning out the appropriate time to approach the market and monitor the reaction from the market throughout the product life cycle. Therefore, the workforce in this department will have to knowledgeable about the marketing techniques, but they are required to be technically qualified and updated as well. Read More