Dio Ardana Pramandika

29118136 – YP59B
PIO Individual Assignment

EVP in Microsoft based on OHI

OHI IN MICROSOFT
Organizational Health Index (OHI) initially introduced by McKinsey as one of the tools to
help the organization to identify the organization elements that drive financial performance. OHI
at some degree has statistically positive correlation with financial performance
(OHI accounted for 54 % of the variation in the performance of group of companies). OHI itself
consists of 9 elements:
1. Direction
Bill Gates consistently directing Microsoft with his strong value about the company. He
constantly reminding company managers that the company success cannot be separated from
its success in hiring and retaining the best brains.
2. Accountability
With their brightest talent in the industry within the company, Microsoft is creating
understanding of what is expected from each talent since the recruitment process begin.
3. Coordination and Control
In Microsoft, Bill Gates as the CEO was too micromanaging in the company. Many
employee feels that Bill is too put his hands on too deep in his employee’s task.
4. External Orientation
The company leaders are including its important customers in its recruitment process. It also
considering customer’s feedback in its organization management process.
5. Leadership
The leadership style in this company mainly directed by the strong values of Microsoft, the
work-hard value.
6. Innovation and Learning
Microsoft keep hiring young talents that are considered to be more innovative and full of
ambition. Microsoft are maintaining the innovation hot-house in order to keep them ahead in
the market.
7. Capabilities
Microsoft creating the competency model (29 individual competencies with each one
described behaviorally at four different levels of performance) and tool kit for managers to
ensuring its implementation. With that, Microsoft could ensure that the people inside the
company is well-placed. Meanwhile from external people (new recruits), the company using
its rigorous recruitment method to select the brightest talent.
8. Motivation
Microsoft leaders are having a special method called “n minus 1” to motivate people to work
harder in the office. With that method, the employee forced too work very effective. But the
workload becomes very high.
9. Culture and Climate
Microsoft creating its campus “pressure-cooker” atmosphere and starting to re-balancing
work-life situation for its people, Microsoft could ensure that the people inside the company
could work effectively.

EVP IN MICRoSOFT
Minchington (2010) defines an employee value proposition (EVP) (or employer value
proposition) as a set of associations and offerings provided by an organization in return for the
skills, capabilities and experiences an employee brings to the organization. The EVP is an
employee-centered approach that is aligned to existing, integrated workforce planning strategies
because it has been informed by existing employees and the external target audience. Based on
above OHI about Microsoft, we can conclude that EVP at Microsoft are:

1. Compensation
The employee receives modest salary and bonus up to 15% of its salary, which is accounted
based on rewarded achievements in the past period. The salary increase is awarded based on
the present skills of employee. Also, the employee also has stock options.
2. Culture of Work
Microsoft start to change some aspects of the company’s legendary “hard core” culture to
find the balance between work and life. Despite the fast pace and heavy workload,
motivation and morale were high.
3. Recognition
Employee recognition and awards were not effectively applied, at least at the higher levels.
At yearly division level meetings, a few people who did an outstanding job might be given
awards—usually additional grants of stock.
4. Career Path
Executive and Management Group began to develop a more formal approach “key people
review” which is a combination career-planning, early identification, and job-slotting
program.
5. Work / Life Balance
The work life balance in Microsoft is not quite good. Many employees feel that the
workload in Microsoft is really high. But, the campus's pressure-cooker atmosphere was
vital both to the company's survival and to the development of staff.