Motivation and Retention Strategies at Microsoft Corporation

Brummel implemented several initiatives at Microsoft to improve employee motivation and retention during a period of low morale in the late 1990s and early 2000s. These included improving communication, revising performance reviews to be more transparent and merit-based, enhancing employee benefits, and renovating workplace environments. By addressing issues like perceived bias, lack of feedback and growth opportunities, and cuts to compensation, Brummel aimed to boost engagement and satisfaction. These initiatives, which focused on factors known to dissatisfy employees like relationships, work conditions, and security, would likely have helped improve morale during later economic downturns when job cuts occurred.

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Motivation and Retention Strategies at Microsoft Corporation

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Jay Dixit

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Motivation and retention strategies at Microsoft corporation

Management

BY: JAVERIA JAWAID

Pakistan Institute of Fashion and Design (Lahore)

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Q1) Discuss the Human Resources problems faced by Microsoft during the late
1990s’ and early 2000. According to you what were the main reasons for
demotivated employees at Microsoft during that time? Explain:
1. Racial discrimination lawsuits.
2. Anti-trust proceedings.
3. Cost-cutting measures.
4. Bureaucratic system.
5. Corporate culture.
6. Product centric.
7. Cuts in employees’ benefits.
8. Increase in employees turnover by 2.7%
The root of the problem largely stems from an insufficient management
approach, employees felt that they are not empowered by their organization to
think differently, despite those willing for the opportunity to be more
productive and creative.
Performance assessments are, of course, an important aspect of a healthy
company. In order to maintain fighting weight, an organization must honestly
assay its employees' contributions and cull the dead wood.
Also quick realization by employees that it was more important to focus on
cooperate culture than actual individual performances.
Moreover, cuts in employees benefits; lowering the discount rate by 5% etc.
The major demotivation arose those cutting non-monetary awards which also
proves Taylors management theory, “Money is the main motivator,” wrong.
Q2) Critically analyze and comment on the “myMicrosoft program” according
to the case, Microsoft’s performance review system was disliked by many
employees.
Do you think with the modified performance and appraisal system, Brummel
would be able to address these problems?
My Microsoft system was presented by Brummel in May 2006. The project
included parts like profession advancement, administration preparing, on
facilities administrations for the staff and so forth. Brummel suspected that the
organization ought to update as per the necessities of the representatives of the
organization.

Pakistan Institute of Fashion and Design (Lahore)

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However the response towards the system was blended. Some admired the
system while others were uncertain about it. The experts of the organization
accepted that the presence of the system would lead the organization in the right
heading as Microsoft's development was stagnant and it required to help up
their workers to accomplish their obliged high targets.
To further raise the inspiration among the representative's execution audit
framework was created. It was known as the "constrained bend framework".
The framework dissected the yearly execution and the rankings that reflected
the long haul capability of the workers. The framework was however detested
among the staff as the quantity of representatives who could get the top
rankings was settled. The rankings could be given to just a particular number of
individuals. The circumstances was handled inside the association when
Brummel altered the framework that included evaluations and the likelihood of
the star execution.
Brummel had the capacity handle the issue and persuade the workers; they felt
that the framework was more transparent and valid under the altered
framework. 37% representatives got surpassed, 58% got attained while just 5%
got underperformance. The representatives accepted that there was a more
prominent and a superior connection to remunerate. Normally, Appraisals have
the ability to inspire representatives.
At the point when directors like Brummel take the time and exertion to
deliberately audit, examine, archive, and talk about execution with workers, the
underlying message to the representatives is that they're critical and significant,
and this alone is truly remunerating, whether the input is certain or not for
instance Brummel looking profoundly into the matters of the representatives of
Microsoft. Besides, Appraisals and execution frameworks are a profoundly
important wellspring of data, experiences, and apparatuses fundamental for
such advancement.
Execution evaluations are also motivational for workers whose needs are
fixated on accomplishment, objective achievement, and sensing individual
adequacy, appreciation, and trust. At the point when execution evaluations help
in such zones as picking up recognition sensing accomplishment and skill,
encountering development, and gathering goals, they're additionally helping the

Pakistan Institute of Fashion and Design (Lahore)

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workers' occupation fulfillment, and this is a standout amongst the most

essential components at work.
Along these lines I accept that Brummel would have possessed the capacity to
address the issue inside Microsoft.
Q3) Analyze the benefits of Brummel’s initiatives to attract and retain employees.
During global financial crisis of 2008-9, Microsoft announced job cuts in its
operation across the world. Do you think the initiatives implemented by Brummel
would boost employee morale in tough time? Discuss:
Brummel identified four focus areas:
1. Communication with employees.
2. Performance appraisal.
3. Compensation system.
4. Employees’ benefits programs.
5. Work place design.
Brummel realized the fact that the employees did not communicate much with
the HR department, less communication gap bring several advantages:
1. Stronger internal communication.
2. Quick action: One of the biggest effects of communication barriers in
businesses is that it causes employees to fail to deliver on requested
directives.
3. Clear interpretation: Misinterpreted messages are also an effect of
communication barriers in many large businesses like Microsoft.
4. Better Work Relationships: Several common communication barriers can
lead to disengaged and even conflicting relationships among colleagues, or
between supervisors and subordinates. However, a barrier commonly tied to
this negative affect is emotions.
5. Diverse ideas, perception and viewpoint.
6. Feedback.
7. When people at upper hierarchy communicates with people under them it
gives them self-satisfaction.

Performance appraisal methods are systematic evaluation of an individual

with respect to performance on the job and individual’s potential for
development but in the forced ranking was only satisfying specific number

Pakistan Institute of Fashion and Design (Lahore)

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of people due to biasness, with than became ineffective and inefficient way
to analyze employees performance. With the help of “commitment rating”
employees would have:
1. Morale boost.
2. Sense of considering their work would be increased.
Employee benefits in terms of non-monetary would have brought a lot of
advantages to Microsoft:
1. It helps attract and retain quality employees.
2. Microsoft would not have to increase salaries year by year or month by
month with such facilities offered.
3. Offering health insurance, Mobil medicine and doctor sent at home;
offers like these would show decrease in absenteeism rate and improve
employee health.
4. Minimize your turnover rate, as it was growing.
5. Better job performance.
Brummel also took a very brave and most effective step; renovating the
office. The enviourment we make in effects our moods.
1. It effects the work positively.
2. Boosts the morale.
3. Sense of ownership.
According to Herzberg, Motivation-Hygiene Theory factors that dis satisfy
the employees includes:
Company policies, supervision, relationship with supervisor and peers, work
conditions, salary, status, security.
I assume Brummel studied this theory closely because she covered all the
points and motivated employees and made Microsoft the desired company to
work in. All the initiatives would not just only motivate employees in tough
time but employees would also consider all these factors before switching to
other organization.
Moreover, in an enviourment like this, people would think more about new
innovation and work harder to reach the higher level of hierarchy of
Maslow’s theory.
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