Microsoft Corporation - Organisational Behaviour - Case Study Example

 Microsoft Corporation Organisational Behaviour Table of Contents Introduction 3 1. Task One 4 1.1 Organisational Structures and Culture 4 1.2 Effects of Structures and Culture on Performance 7 1.3 Factors Responsible for Individual Behaviour at Work 9 2. Task Two 11 2.1 Organisational Theory and Motivation 11 2.2 Microsoft & Google – Comparative Analysis of Management Principles 12 3. Task Three 15 3.1 Leadership Styles 15 3.2 Leadership and Motivation 17 3.3 Handling Absenteeism 17 4. Task Four 18 4.1 Theories of Organisational Behaviour 19 4.2 Organisational Diversity 19 4.3 Managing Individuals 22 5. List of References 23 Introduction The study of organisational behaviour occupies an important place at the heart of workforce management in modern corporate ethics. As a management discipline, organisational behaviour probes into a number of closely related theories on individual and group psychology, social psychology, pluralistic cultures, industry-induced culture and more.1 The primacy of research on this topic can be best understood if one considers how demanding the requirements are in modern day organisations. Regardless of institutional hierarchies, an employee is expected to perform continuously in the best interest of the company. In an era when the world has virtually transformed into a global village pacing dissemination of knowledge and information both within intra- and intercultural setups, it is even more pertinent to analyse different theoretic determinants, structural coefficients and practices that influence organisational outcomes and promote solidarity among employees. This paper is going to explore the organisational structure and culture of Microsoft Corporation and provide a well-knit documentation of how the company has been able to retain its operational integrity through years. In the course of the discussion, the paper shall contain four distinct tasks. Task one involves a comparative analysis of different organisational structures and culture and how these factors affect organisational performance as well as individual behaviour at large. Task two involves critical evaluation of the relationship between motivational theories. Two organisations will be cross-examined for theoretical relevance of organisational literature in the context of ethics and practices of organising and of management. Discussion on motivational theories and different leadership approaches will be made in task three. Finally, task four addresses various behaviouristic aspects of the organisation in contention. This part also analyses the key determinants of organisational success as well as failure, along with the impact of technology on teamwork. Analysis of Microsoft’s organisational behaviour will be interspersed throughout the first three tasks followed by detailed discussion in the concluding one. 1. Task One 1.1 Organisational Structures and Culture The United States of America is one of the most culturally diverse nations in the world. At the same time, the booming aura of corporatism has spread its manifold dimensions across all the multinational companies headquartered here. Structuring of an organisation plays a pivotal role in its business growth and overall promotion of a healthy and highly competitive work environment. In simpler terms, organisational structure is the skeleton of an integrated system which functions in accordance with all the elements inherent in it. It is required to attain organisational objectives.2 While formalised structures aid in systematic governance of organisations, informal structures are conducive to germinating creative ideas; encouraging divergent modes of thinking among individuals and groups and sustaining corporate lifestyles.3 Google Inc. introduced its own version of corporate work ethics through the inception of Googleplex, a sprawling campus for all its employees working in Mountain View, California. Not only has it made Google products endearing ones to the consumers, it has also formed a unique brand image of the largest search engine in the world. Ranging from sustainable business solutions to state-of-the-art technological innovations, Googleplex is bundled with everything that a modern workplace should have.4 The company’s vision is well reflected in the way it integrates hardcore market-oriented principles with measured leniency. In case of larger organisations such as Microsoft, Google Inc., Dell, and Ford Motor Company, organisational structures are generally hierarchical to multiple levels where power positions and lines of authority form the administrative as well as operational core. The idea of groups within organisations is based on socio-economic strata and degree of economic independence. Linux and IBM are two of the main rivals of Microsoft when it comes to hassle-free and easy product accessibility. As a result of this lingeringly competitive climate and also due to the fact that many of the top brass of the company lost motivational drives in the 1990s, Microsoft CEO Bill Ballmer had to resort to radical measures to reassess the firm’s operational principles. The subsequent decentralisation of authority helped a great deal in reinforcing the lost glory and revitalising the drooping revenues. The entire idea of decentralisation was made in view of introducing partial autonomy to subgroups and subdivisions that earlier used to work under the supreme command of Bill Gates, the CEO. The new look facilitated intra-divisional correspondence and encouraged innovative independency among staffs.5 Such decentralisations of authority has also helped companies like Google Inc. and IBM which have made it an administrative policy to find specialised people for key positions. The changing context of modern consumer society also plays a crucial role in defining the extent of economic liberalisation for a particular clan or class in society. When the representatives of some class attend an organisation, cultural disparities are bound to occur. The onus lies on the managers and other top level officials to dissolve the difference of opinions and ideologies among the employees and to maintain a seamless flow of cultural acquisition through various means. Literature on global management has given firm importance on the echelons of teamwork for scaling greater heights of success. Here in this context, it is imperative to look into how organisational cultural shapes the frontal business of a company. First of all though, what do we mean by organisational culture? Schein argues, . . . a pattern of basic assumptions – invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.6 While Schein’s observations assume a teleological dimension, Thomas and Hersen retain a more open-ended perspective regarding the same. In connection with organisational behaviour, culture may be seen as a value addition to existing behavioural norms of an organisation. It is a system embedded at the very heart of internal processes and functions, only to be transmuted into contextual patterns. Information sharing and knowledge dissemination are some of the key social activities performed within the institutional frameworks of a company. In a way, culture acts as a uniform democratiser common to all employees, but at a subliminal level of awareness.7 Such postulates immediately call for further studies on how the process of acculturation is done in the context of American society. As for organisational groups, the process of acculturation is to be acquired through certain behaviouristic and attitudinal adjustments that are perceived as socially acceptable and morally permissible.8 9 Microsoft being an American corporate house first and global supplier of software products next prioritises the campaigning of Americanised beliefs and values through its labelled importation across the Atlantic.10 But Rosen refutes this viewpoint and maintains that companies such as Microsoft Corporation and Ford have espoused global culture since long.11 1.2 Effects of Structures and Culture on Performance The paper shall now strive to draw relevant correlations between a firm’s structural and cultural inputs and how they impact its business accomplishments. It is quite clear from the previous section that a company functions best within a demarcated line of structural and cultural parameters. However, academic research about the impact of organisational structure and culture on performance has been typically plotted in the context of a large number of variables. These variables implicitly control the productive outcomes of macroscopic business ventures. The revival of Microsoft after its structural alterations in the 1990s testifies to the impact of structure and culture on organisational performances. Following the autonomy of a number of core departments, the operational procedures became lot more stable as well as less time consuming. Additional emphasis was given on product development and gaming-entertainment wings of the company. Besides, areas like software development, business services and server systems were also examined critically. Each division was brought under a pilot strategy which oversaw critical phases of project life. It was mandated that the transformation from the ‘incubator phase’ to the ‘owner phase’ be monitored carefully lest any lapses may skip the watchful eyes of the project members and experts. Keeping track of monetary flows was another aspect which was taken seriously, especially after the economic downturn of MSN gaming zones and a few other verticals. These structural changes also harbingered a paradigmatic shift of responsibilities for individual employees who were quite clear about their respective roles in the organisation.12 Stakeholders of Microsoft are highly valued in the modus operandi of the company. Consistent involvement of the affiliated partners and stakeholders serves two basic purposes. First, it keeps everyone updated about the latest stature of the company; its revenue generation and dissemination; and how it is evolving and embracing newer technologies. Second, a general consensus is developed rather spontaneously among all the people who are concerned with the corporate health of Microsoft. To elaborate on this point furthermore, let us look into the schematic pattern of Microsoft’s core business principles. Historically, the company has never attempted any outrageous downsizing or upsizing. What it has done to achieve what it wants is to make minuscule changes in the existing system, so that the company can keep pace with the current market trends. An important part of the company’s culture is its ready but judicial reaction to market scenarios. Allocation of roles and responsibilities, therefore, has been made with utmost discretion to facilitate smooth and uninterrupted productivity and positive service orientation. Such practices have been assimilated into the cultural identity of Microsoft. Hence, professionals working there know when and how to foresee potentials of change and progressive values which correspond to the company’s long-term objectives.13 1.3 Factors Responsible for Individual Behaviour at Work In organisational contexts, individual behaviour refers to systematic adaptation of predefined values and customs by an employee. The workforce of any macroscopic firm like Microsoft consists of diverse populace coming from different social, economic and religious sections. The company lays down certain rules and codes of conduct that are expected to be complied with. But the heterogeneity of a firm presents a far more complex topic for the corresponding review of literature. Murray et al. share the opinion that organisational norms elicit particular responses from both groups as well as individuals. Since an individual worker is nothing but a unit of a group, how an individual behaves also determines group characteristics. There is a motivational aspect which can be passed on from one individual to another through collaborative sessions and partnership bonding.14 The motivational element stated by Murray et al. is further elaborated by Tosi et al. in light of human personality. Accurately defining human personality traits has proven to be a mammoth task from research perspectives. Untangling the psychology of human behaviour in specific contexts is still a matter under intensive academic research. But there are some significant points raised in contemporary psychoanalysis that can be held pertinent in the trajectory of this paper. The first personality trait which shapes individual behaviour is extroversion. Having this trait means the individual is well liked and industrious. The second trait, however, is one of the most important factors having direct bearing upon individual behaviour. It involves the ability to remain unperturbed in the face of adverse and intimidating situations. It can be stated without much doubt that individuals blessed with this personality element are assets to an organisation. The third key attribute is agreeableness, which underpins its preceding trait. It is a societal virtue that augurs well under any given situation and lays the cornerstone of success in the long run. The fourth trait, which is conscientiousness, is a prerequisite to excel in top level management and related areas of expertise that demand persistent involvement and single-minded dedication to job. Individuals who are open to experience tend to have rich vein of imagination along with curiosity and well cultivated values. These people are self-sustaining and they do not often have to rely on others to carve their ways in life.15 In relation to the starting point of discussion, it is worth noting that individual behaviour stems from “a combination of biological and psychological processes”.16 Personality is what we acquire through our constant interaction with surroundings and people. Therefore, environment, which often implies immediate environment, sometimes plays a major role in a person’s generic attitude and approach toward life.17 An analogous point is made by Greene stating that human behaviour essentially follows set patterns that are circumstantial and arbitrary. The best possible methodology to arrive at any definitive behaviouristic theory will be scientific observations and deductions drawn from thereon.18 2. Task Two 2.1 Organisational Theory and Motivation The idea of motivation as a driving force behind successful completion of work had long been left unattended by researchers. In the nineteenth and early twentieth centuries, work was basically seen as a necessity rather than an energetic involvement. Later with the emergence of various theoretic models, management studies have focused beyond the issue of work-on-payment-basis and delved deep into the aspect of motivation that inspires workers to fulfill their personal goals while meeting the demands of the organisation. Studies made at the Hawthorne Plant of the Western Electric Company in Chicago cast a searching insight into “the relation between conditions of work and the incidence of fatigue and boredom among employees”.19 While managerial control over market economy and productivity provides a rationale for undermining these factors, too much stress on workforce integration under the premise of enhanced productivity and cost-effective strategies can lead to motivational crisis for the employees. Miner argues that motivation is an intangible entity which should be practiced from the top tiers of organisational hierarchy for better results. He makes four conjectures based on different systems of management such as hierarchic systems, professional systems, task systems and group systems.20 However, since this paper deals exclusively with a hierarchical unit like Microsoft Corporation, the remaining three systems do not have any relevance in the purview of discussion here. The notion of managerial authority over employee motivation for meeting organisational objectives has its root in expectancy theory. This theory posits that humans have an intrinsic affinity toward putting their best efforts given that those efforts bring on expected outcomes at personal levels. Now if each member of a unit can be led to believe that their collective endeavors will lead to complete realisation and implementation of organisational goals, it can be claimed that the expectancy theory of motivation succeeds. But as Argyris argues, this theory lacks empirical evidence.21 In case of Microsoft, the company has a structure that fully compensates for motivated individuals. Noe enlists both the positive as well as negative results of motivational approaches. Positive outcomes involve job satisfaction and sense of fulfillment among the employees whereas negative outcomes hint at diminished utilisation of services and products.22 2.2 Microsoft and Google – A Comparative Analysis of Management Principles The dotcom boom in the 1990s grappled the attention of the entrepreneurial markets worldwide and made provisions for newer and more innovative management approaches. All the conventional management principles such as centralised corporate ownerships, relational studies of employee-employer, safe decision making for risk mitigation, capital inflow across limited chain of stakeholders, priority on moral judgment over critical one and so on rapidly gave way to more open-ended solutions to management issues. The uncharted horizon of the World Wide Web was explored anew by the impeccability of Google’s search engine. With the arrival of Netizens, the very concept of customer base expanded beyond conceivable limits. Production became an intangible entity to be gorged by faceless virtual consumers. Moreover, worldwide campaigns for sustainable living also impacted management principles a great deal. The awareness of sustainability paved the path for eco-friendly models of business that integrated diverse strategic forays with intuitional approaches. Microsoft Corporation with the turn of the new millennium set up corporate ties with globally acclaimed car manufacturers like BMW and General Motors, in view of providing high-powered technology to aid green business which was in the futuristic operational agendum of the car producers.23 The diagrammatic models were not restricted to promoting just green business. Microsoft built a solid foundation upon which its managerial offsets can identify the areas of relevant expertise and escalate those recommendations to the company’s developers and front-end executives. It did not let go its infamous tag of being a monopoliser in the global software market; it capitalised on the fact that merchandising for the firm was relatively easier and uninterrupted with such an ethically notorious distinction on its back. One of the key management strategies the company took way back in the 1990s was the launching of the Windows operating system. Rather than introducing new lines products unfamiliar to the existing base of users, the firm decided to add on new features to what was already gaining popularity across the globe. It was undoubtedly a masterstroke by Bill Gates, who visualised the market graph well ahead of its time. Sensing the pulse of target consumers and their likes and dislikes is virtually a guaranteed methodology of successful entrepreneurship and Microsoft did it quite impressively. Speaking of Bill Gates and his inborn knack to foresee the future with a positivist mindset, it may be noted that the introduction of Windows XP and Xbox heralded the beginning of a new era in management principles. Hunt observes that Gates’ decision to realign his researchers and project managers in small teams helped eliminating the evil loop of brilliant ideas going nowhere and expedited the actual process of implementation.24 Microsoft has long been plagued by organisational conflicts and employee grievances. Mcshane reports that Microsoft encountered a genuinely threatening situation when two of their main revenue generators fell out with each other on account of delay in respective product developments. MSN and office groups, both being highly successful in their own rights, pointed fingers at each other for hampering each other’s business objectives.25 To resolve this crisis, the company chose the wisest possible way, which was productivity over popularity. The subsequent handover of MSN to Multiply resolved the issue26 and left a prescriptive model of corporate planning and strategy making at crucial junctures of organisational life cycle. Google, on the other hand, is in effect more of an online organisation which makes information available to searchers worldwide. Its revenues are generated from ads that are posted on various websites and also from other Google products and services such as Google Doc, Spreadsheet, Google Map, Google Earth and so on. The financial planning of Google, as opined by Gallagher and Andrew in the context of Google Spreadsheet launch in 2006, is all-inclusive of probable business considerations. For instance, Google Spreadsheet with its high-end innovation and utility challenged Microsoft’s indisputable monopoly. Google made it quite conspicuous that it vested its interests in sectors that are not limited to mere demonstration effects as found in literature reviews of Economics, but progressive enough to espouse the best possible outcomes of technology.27 Stair and Reynolds cite a survey result that accommodates Microsoft and Google in the same league. Empirical data reveal that about 52% of global adult population relies on these two organisations to look for health advice on Internet. Microsoft has introduced an integrated healthcare tool named HealthVault the Google counterpart of which is Google Health. Now as far as organisational approaches are concerned, both the organisations have similar web-based technological expertise to successfully maintain their EHR systems that are conveniently and cost-effectively available to medical practitioners as well as patients.28 3. Task Three 3.1 Leadership Styles The paper has discussed earlier how individuals are imbued into groups. Although tiny groups tend to function autonomously with each member contributing more or less equal chunks of qualitative and quantitative inputs, mentoring is sometimes needed to give directional commands. This is all the more relevant in the context of organisational behaviour because human psychology seeks elevation of thoughts and ideas. This elevation of attitude and mentality is generally sought from within the organisation, from talented individuals who are familiar with the firm’s objectives and operational procedures and who can lead from the front. Quite typically, a leader is certainly not the most agreeable fellow around, but he/she somehow manages to get the work done from others. This statement may lead one to believe that a team leader is a benevolent edition of a manager or anybody at the helm of corporate affairs. But this is a grossly mistaken idea simply because management tasks are administrative ones while leadership is in direct accord with operational wings of a firm. In other words, a team leader or a group leader is always held accountable for diminished productivity or service quality. So the leader has to work in tandem with his/her fellow colleagues to meet the organisational targets. At the same time, modern corporate culture makes it a sine qua non that innovative solutions are almost always sought from the people who do not necessarily have to share the same podium of CEOs and other top brass of a company. This apparent dichotomy presents an ethical question pertaining to leadership theories. Are leaders expected to deliver on their own or are they supposed to ascribe value-creating roles? Ward et al. summarises the apparently confusing role of a leader: . . . leadership styles have varying levels of sustainability and each can be more appropriate to specific types of company, the particular corporate strategy that is being implemented, and the competitive environment in which the company is operating.29 A related analogy may be drawn from the above block reiterating that “the links between leadership style and corporate culture often provides key insights on why organizations work they way they do”.30 The literature studies on modern corporate leadership do highlight an ongoing issue involving gender bias. From neutral perspectives, women leaders are no less competent than their male counterparts. But the moot point arises when different styles of leadership come into contention. Northouse argue that task-specific styles differ fundamentally from autocratic styles of leadership. Female conscience usually avoids unsolicited interpersonal intimacies and stresses more on ‘getting the job done’. This will be examined in-depth in the case study of Microsoft’s former HR chief Lisa Brummel, which appears in Task Four. 3.2 Leadership and Motivation Motivation is one of the basic constituting elements of a competent leader. In an organisation which engages in a consortium of activities ranging from product development to invention of groundbreaking technologies, a leader needs to be self-motivated to avoid falling in the loophole of cognitive dissociations from immediate as well as long term objectives. The key aspects of leadership qualities are partially or completely reliant on a series of cognitive abilities, including perception, reasoning aptitudes, information and knowledge processing skills, oscillating intelligence, problem-solving and social judgment competencies and more.31 3.3 Handling Absenteeism The collective outcome of all these abilities motivates the leader to face the regular challenges an organisation presents. The stern part of motivation, however, is a leader’s dominant disposition. Problems such as absenteeism and employee turnover may go out of proportion if leaders don’t make timely and authoritative interventions. Smith and Hitt argue that malpractices such as absenteeism stems from fake or weakened commitment to work. They also ponder over the fact that since it is almost next to impossible to verify the validity of reason(s) given by an employee for absenteeism, it won’t be judicious to draw any kind of implied analogy between motivation and absenteeism. A person may be honestly motivated to attend office, but circumstances can prevent him/her from doing so.32 Hence, there is a basic empirical problem to clearly distinguish between moderate absenteeism and epidemic absenteeism. The latter will inevitably have a negative impact on the entire organisational staff levels. Problems such as low morale among employees are difficult to get rid of unless turnover and absenteeism are addressed persistently. 4. Task Four The paper shall now look into various theories on organisational behaviour. These theories generally have a common grounding rationale that oversees varied viewpoints purported by management gurus and experts. In the purview of this study on Microsoft Corporation, it is imperative that we should understand the difference between organisational behaviour at micro level and the same at macro level. As suggested by Thompson, studies on micro organisational behaviour are concerned with analysing behaviouristic patterns of individuals/groups between small scale organisations or within tiny segments of an organisation. On the other hand, studies on macro organisational behaviour approach theories and their practical implementations from a broader perspective, addressing behaviouristic analogies that are relevant to “larger systems, such as the firm, departmental unit, and larger networks connecting these units”.33 Now while it is evident that there is not much spatial gap between organisations that are examined for studying micro organisational behaviour, a significant amount of spatial separation may be observed in a firm like Microsoft. Being a multinational company, Microsoft Corporation has a seamlessly networked outreach that goes beyond the Silicon Valley. Hence, there are social and cultural diversities among the workforce at all offshoots. 4.1 Theories of Organisational Behaviour Considering the multi-faceted aspects of an organisation such as HRM policies, strategic designs, stakeholder and share market analyses, leadership and authority distribution and many others, it is quite difficult to accept any particular theoretical conjecture as all-inclusive. Paradigmatic shifts in management studies are very common in today’s dynamic world of corporate competitiveness. Loosemore et al. argue that prevailing management theories are particularly helpful in forming an overall perception of organisational behaviour, particularly the HRM operations.34 Hunt presents a cluster of topics that are theoretically relevant to understanding various approaches of organisational behaviour. He divides the theoretical framework into 5 segments – 1) Environment, 2) Managing individuals, 3) Managing groups, 4) Managing organizations, and 5) Managing processes.35 It might be noted in this context that Hunt’s methodology is aligned primarily with micro-organisational setups. But it can also be applied to a big firm like Microsoft, as the ensuing case study will testify to. 4.2 Organisational Diversity A typical multicultural organisation has the vantage point of business dissemination across various offshoots such as cross-country capital flow, resource allocation, and products and services market. What this aspect achieves in an age of globalisation is quite important for the cultural growth of workplace environment. Culture is an integrated concept which comes to the fore of our discussion for two reasons. First, a macro-organisation operates in different countries, with employees having different sets of values and ethics. Second, the business principles of such an organisation need to be extremely flexible and accommodating to share the difference of values and opinions stemming from pluralistic cultural backdrops of its employees. It is worth noting that cultural disparities are just as important a criterion inside the organisation as they are outside. In other words, what an employee of Somalian origin does after a routine day at the office can provide a crucial lead to that individual’s off-the-work mentality and attitude, which, in turn, would reflect in his/her sincerity at work and determine the level of competence that is needed for organisational productivity. It is most likely that the way a Somalian employee would relax in the evening will not be the same for an Indian or a Chinese. Different cultures entail different codes of behaviour and it is the sole responsibility of the managers to integrate them in the best interest of the organisational environment. Such little nuances are very important to consider because in corporate management, gaining competitive advantage over rivals determines the outcomes and future possibilities of business to a considerable extent. While the onus of integrating diverse cultural metrics lies on the core management of any multicultural organisation, there are several aspects to what we mean by a multicultural environment. Let us now look into the signatory attributes of institutional diversity. Diversity is a key factor which contributes to organisational outputs by processes that are intrinsically unrelated to technology or information systems. As far as organisational behaviour is concerned, diversity of workforce is one of the most, if not the most, premium considerations upon which management planning revolves a great deal. In multinational organisations, employees are hired from various cultural, racial and preferential domains and groups are formed in ways that blend individual goals together with organisational objectives. It functions as a collaborative tool for optimising production as well as for building solidarity and cohesiveness among both the central as well as the peripheral workforce. Hunt asserts that evaluating diversity “refers to managing and working with others in full respect for their individual differences” where “Interpersonal and cultural sensitivity is indispensable”.36 Diversified work cultures can be structured by encouraging the employees to actively contribute to the organisational development. The blueprint for diversity management development may incorporate career planning, job design, and coaching or training.37 According to the contingency theory, an organisation needs to understand the hegemony of external environment as applicable to internal processes and functional derivatives in order to trace and evaluate the homogenous elements existing in the environment.38 Now in relation with Microsoft Corporation, the contingency theory has a significant amount of relevance. The market diversity of the company has branched out its products to a global base of customers. Moreover, Microsoft has keyed out basic diversity components such as the minority issue and gender to let managers examine organisational objectives, fix priorities and assess accomplishments for deciding on proper execution of planning and effective diversity management practices. The organisation, courtesy of its SMG Index acronym, has figured out the measurement unit for the percentage of recruitments, promotions and retentions and has worked on rectifying areas of inter-group inequalities.39 Such inequalities are generally not considered to be healthy for the welfare of any organisation, not to mention one with the stature of Microsoft that has a range of demographic variants. 4.3 Managing Individuals Managing individuals effectively and to the best interest of the organisation necessitates a certain degree of professional lenience, but not without losing sight of the core institutional values. The HRM of a company should therefore consist of a judicial mix of the right people having adequate expertise in psychology, technical aspects, mass communication and public relations, finance and so on. The case study of Lisa Brummel, who had held the prestigious position of the HR head at Microsoft, may give an academic insight into how a big firm can treat its employees individually; listen proactively to their demands and grievances; and continue improving the structural and functional mechanisms to smoothen internal activities and processes. Brummel’s focus on interaction at individual levels underscores the groundbreaking changes in management perspectives that evolved since her tenure. The qualitative surpluses of a firm, if attended properly, make a big time difference to its eventual outcome. The same may be said about performance appraisal system that prevailed at Microsoft for a long time until Brummel stepped in as the head HR manager. She modified the existing system of performance reviews and inducted a methodology which is based on individual attainments. An employee is judged and acknowledged on the basis of his/her individual competence and is compensated accordingly. 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