Microsoft's success: Corporate strategy and human resources strategy

Introduction

Organizations can be simply defined as several people working co-operatively to achieve a goal or group of goals. With this description we can outlined four essential elements that need to be been around to become an organization, those are people, location, activity and co-operation. Based on that above facts we can redefined this is of organization as social systems of co-operation that contain been made to develop individual work aimed at goal success (Fox. W, 2006). This design of an organization is a means to accomplishing the organization's overall goal and the composition is not an result in itself. In systems theory terms, the design ensures that the correct inputs go through the necessary processes to produce the mandatory outputs to create the intended results. During the process human engagement is vital in terms of controlling the resources available in the business. HR function engaged management of all the people in the business towards attaining organizational goals. Therefore we can determine human resource management within management that specialises in the management of individuals in work organisations (Bratton & Yellow metal 1999). As described by Torrington, Hall & Taylor human being resouce managemnt worried about meeting four unique packages of organizational aims: staffing, performance, change management and supervision.

Introduction of the circumstance company

Microsoft Firm is the large in the program development industry on the planet, develops, manufactures, licenses, and facilitates a wide range of products and services mainly related to processing. Headquarters are positioned in USA. Invoice gates and Paul Allen will be the center founders of Microsoft Organization. The company has five business unites to serve their customer based in all over the world. At Microsoft, the mission and prices are to help people and businesses across the world realize their full probable. The primary reason of selecting the Microsoft as the situation company for this report is because functions, skills, knowledge etc of individuals resource of the business decides how effectively company achieve its targets. Therefore from the business's view point strong individual resource function is vital for the business's success.

This record has been dealt with the human reference methods of Microsoft Corporation. There are no universal collection practices which every group practices in their individuals source of information management function. Instead every single organization has customized their finest fit model for HRM function in the organization.

Necessity for alignment between organizational commercial strategy and objectives with HR strategy

Current business environmental makes such as competition, advancement, globalization, technological improvement etc has created major effect on organizational patterns. These changes come in different varieties. Sometimes it necessary to reorganize the structure of the organization and due to this organization may need to introduce new jobs and new people. Sometimes it may require to change the culture of the business. In all these situations HRM function plays a significant role. Further recent development of new concepts such as knowledge staff has increased the complexness of HRM function. Nowadays HR is becoming strategic possessions for organizations. From Microsoft's view point intellectual property that is knowledge of the software coders is crucial for his or her business than the physical asset of the company. This importance has heightened due to the change of old economic conditions to knowledge founded market where it considers the intellectual property as one of key success factors of the business. The impact of globalization and the technical advancements were the main contributing factors towards the above change.

As a result of the above transformation in the business environment strategic need for the human resource function has increased in the current business environment. Therefore HRM function can be interpreted as proper human source management as well which is recognized as general approach to the tactical management of recruiting in accordance with the intentions of the organization on the near future way where it wishes to take. Quite simply recruiting strategies have to be aligned to the organization strategy of this group. Strategic HRM has advanced based on individuals resource management guidelines incorporating the idea of strategy. So if HRM is a coherent approach to the management of individuals, then the proper HRM now offer an idea which is performed on a planned way that integrates organizational targets with plans and action sequences. Commercial strategy of the organization is established based on the objective of the organization and later it's been cascade down directly into lower level strategies such as business strategies and practical strategies. Therefore effectiveness of achieving the best commercial strategy is depends upon how successful in achieving the business and efficient strategies of the business. Therefore one of the travelling factors behind these achievement is the quality of the individual capital within the organization. Therefore aim of recruiting strategy should be predicated on company's targets and it capable enough to accomplish them.

Microsoft's success in aligning corporate strategy and human resources strategy

Resource founded view of strategy talks about when expanding competitive strategy organization primarily in the use of the package of valuable resources at the firm. Quite simply it can be an inside - out method of develop a successful strategy to attain the competitive advantage. According to the VRIO model of resource structured view clarifies valuable, uncommon, less imitable and firm embedded resource help to develop a successful strategy for the company. In nearly all organizations people factor are actually the biggest asset and when it involves Microsoft they may have differentiated themselves from the other players through pursuing effective HRM strategies in the company. As a result of this reason Microsoft always tend to recruit the best people in the market to bring in the best product to the program market. Microsoft's mission is to help people and business throughout on earth to realize their full probable. Their corporate and business strategy is to build up software to bring these goals realistic. Therefore people factor of the business plays the largest input for that strategy. The data, skills and capabilities have helped them to differentiate themselves from the competitors to make value. Therefore HRM function does indeed a significant contribution in strategy development. As a result we can say that alignment between corporate strategy and human resource strategy is crucial in attaining organizational aims.

The company is convinced that its five business divisions of home windows and windows live division, server and tools, online service section, Microsoft business division and entertainment and device section offer the biggest potential to meet their customers. Therefore the company's commercial strategy is set predicated on the objective and values of the company and their business strategies have been cascaded down through the five business unites mentioned previously. Therefore when deciding real human learning resource strategies such as recruiting and selection, determination, retention, training and development etc. they are simply always think about what the company's prospects in providing the service to the customer. As an example they invest gigantic sum of money on training and development because they expect their workers are constantly revise with the business enterprise environment which is in the end help the company to update and enhance their product with the changes in the systems. Further detailed research of the individual learning resource functions will be resolved in this article later section. Therefore, we can say that the company maintains a solid link between commercial strategy and the individuals resource strategies in their procedure.

Changes that the company would need to make to its HRM if confront by mergers, acquisitions, proper alliances or joint projects.

Microsoft's biggest value comes from its software developer's function and all the functions are associated with add further value to these. As per the porters value string analysis that serves as their one of major key activity in the operation. As a second activity human source of information function adds a significant contribution to its successful. The company's that function happens to be handled in centrally. However, via a merger, acquisitions, strategic alliances with another software development company will get an chance to access to further labour resources. Especially new markets well known for IT sector marketplaces India, Singapore, China etc are the few opportunities available for them. Because of this company can extend their recruitment opportunities and will be able to choose best from the world. However, HRM function should be able relook their other function such as training and development, performance analysis, communication etc from the combination cultural perspective. For example company may need to focus on increasing other skills such as communication and public skills even though those people possess high complex knowledge. Further, induction process is vital in this kind of business growth to bring new people under Microsoft culture and quest. In case there is a joint venture, all the functions need to agree on common grounds for HR supply. Depends upon the JV location the business have the access to HR and it could be cheaper in getting them alternatively than utilizing from the mom company. However company needs to ensure JV agreement will not have any negative impact on the current business in the foreseeable future. Because knowledge exchanges between JV functions could adversely impact one another.

Recruitment and selection strategies

Recruitment means creating pool of individuals who are suitable for the company's requirements and selection process is where choose the best suitable applicant for the business's role. Selection process is normally known as a two way process where it's critical for the candidate as well as the company, because the incorrect selection decision may adversely impact on the both functions. Therefore Microsoft retains strong screening process process when choosing a applicant to the business to make sure they'll take the right decision at the first time. Microsoft advertises on websites and in the paperwork. Applications are made online and are screened for the best candidates. Interviews, tests, CV evaluation etc. are the main techniques employed by the business in the selection process. For example when they selecting software design engineer, first they evaluate the applicant through their CV to match with the job requirement. In the next stage prospect will be assessed through a cell phone conversation to identify his specialized knowledge, rational thinking, record knowledge etc. Following this he is being called for face to face interview and various people from the company such as Individual resource department, complex people will be talked with the applicant and go through different styles of psychometric screening to gauge their aptitude and personality. That is to evaluate their technical competency and suitability to Microsoft culture.

Further Microsoft's employee referral program takes on a significant role in recruitment process which has been conducted using their "Spreadthelove" website. This web site provide chance to Microsoft employees to "write up" their own specific story about their job with Microsoft and talk about the web website link and "spread the love" with targeted friends, family and potential referrals. Further to keep the effectiveness of this program by getting in touch with the every referral is approached first by a jobs specialist, which in turn introduces them to a recruiter. (Online, www. articlesbase. com)

These are few examples of recruitment strategies that are company maintain. Besides that partnership with the Universities and educational institutes to recruit appropriate candidates also famous strategies that are company handled. Microsoft recruit graduate university student every year to get ensure that knowledge will be flown into the company continuously. This sort of highly screened and long-term focused recruitment and selection process ensure that company HR supply is good requirements of the business and ensure that will not have negative impact on the procedure.

Employee retention strategies

From a company's point of view recruitment and selection process requires a considerable amount of cost as well as it is a time consuming process in the HRM function. Therefore company must ensure selected applicant will be remained with the business for long-term to convert cost incurred through the recruitment process for an investment for the company. In 2007, Microsoft has been named as the best destination to work in. According to the company documents it maintain just 5% of labour turnover. (Online, www. articlesbase. com) This is often shows the business's long term concentration of staff retention. This indicate that Microsoft maintain proper working conditions that their workers are motivated to remain with the business.

From your day that employee became a member of with Microsoft attempt to cater to the needs of its employees. They wanted to keep carefully the atmosphere at the job and also make sure that Microsoft environment provides the sense of sociable belonging. For an example every employee allowed to have their own office they were free to enhance as they please and the provision of subsidized drink and food within the office premises. Further staff retention purposes Microsoft follow many strategies such as show option scheme for employees, twelve-monthly employee reputation etc. Company thinks giving an collateral participation and sense possession of the company will help to increase employees' commitment and commitment in the long run. According to the Maslow's of hierarchy of needs people will climb their periods of the needs after they satisfy with the basic needs. This has been clearly determined by the Microsoft and strategically they tend to satisfy the esteem level needs of their employees to encourage and sustain them in the future.

Training and development strategies

Training and development provides rooms for growth of the employees. The nature of the business enterprise the company involved with, knowledge and skills of their employees play a major role. Therefore Microsoft is not hesitant to invest tremendous sum of money on employee training and development. Because of this reason a worker job at Microsoft more than simply a job and it has turned into a path to increase skills, knowledge, features etc. Further company provides opportunity to employees to apply for between companies where it assist those to learn about new societies, economies, civilizations and increase their experience within global company. Training programs at Microsoft is conducted as a three way partnership between employees, professionals and the company. As per their strategy worker must drive their career development plan, manager assist and coaches them so that as an organization always ensure that sufficient resources are available to operate the plan. Few of examples for profession training programs are specialized education seminars, management and professional development classes, the IT learning site, and Microsoft Training and Official certification programs. Further the business reimburses employees because of their tuition, membership, content material e book fees for work related examinations.

Purpose and great things about performance appraisal and incentive management, including financial and non financial rewards

In this mechanism performance evaluation of each and every employee will be very important to both people. From company's viewpoint it gives them the opportunity to identify knowledge degree of the company and based on they can identify the particular ways are of fulfill when there is a shortfall between supply and demand. For employee, this will indirectly become a motivation to allow them to increase their knowledge and skills based on the opinions. Therefore for employees' drive clear communication between appraiser and employees and critical if this is usually to be successful and need to talk appraisal methods and guidelines at the beginning of the procedure. Further building a fair, neutral and transparent reward system is essential to increase motivational degree of the employees. Rewards could be in the form of financial or non financial. Financial benefits can be considered as salary increment, financial allowances, performance related bonus offer etc. Sometimes only financial benefits might not exactly be motivated the worker but non life could cause them to de-motivate. Quite simply these type factors could become cleanliness factors in drive theory. Non financial factors would be involvement to talk about option schemes, promotions, training & development etc. depends on the communal and economic environment of the employees reside in will create the value whether financial or non financial rewards will be more important. Proper planed performance analysis process and compensation system will improve the employees' commitment, ensure long term retention, motivational level etc that are ultimately mirrored through the company's performance.

Conclusion

At Microsoft HR functions including recruitment & selection, training & development, performance evaluation, praise management etc are considered very significantly because they want the best visitors to benefit them and their long-term retention within the business is crucial for his or her success. Because of this reason they work with people not only for their current skills but also for their future probable as well. Microsoft attempts to ensure it always has got the best people. It works with schools and colleges so that it hears about the expertise out there and it ensure that their labor demand is satisfied. As per the current business framework where knowledge personnel dominate in the business success, managing the knowledge within the business and effective knowledge exchanges are so very important to the business to keep up their competitive position. Further current romantic relationship between employees and the business is stick to a psychological contract. This is more very important to companies like Microsoft where employees' functions, skills and knowledge make a decision the company's course in the market. Therefore HR function strategies' plays a major contribution in achieving its objectives.

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