Microsoft : Competing on

Talent (A)
Syndicate – 5
1. Fadila Pratika HS Alimuddin - 29318345
2. Andi Firmansyah – 29118333
3. Herman Hutagalung – 29318375
4. Rikordias D – 29318391
5. Lidia Monika -- 29318315
6. Aunurrahman Priyo Aji - 29318402
Please identify and describe what is the HR strategy at
Microsoft in 1980’s
Recruiting the best, the brightest and most well driven technical people from
01 Elite Educational Institutions

02 Establish ladder system and 12 levels on the non-executive ladder.

03 N minus 1 philosophy ensured that people were thrown into stretching

assignments very early, often before they were ready

Encouraging horizontal transfer by encouraged employees to switching jobs

04 as part of development

05 Most direction setting, coordination and control was managed by Gates

personally

06 Employee achievement awarded by given Microsoft’s stocks

Is the HR Strategy support the Business Strategy? Explain.

Yes
Based on our analysis from Microsoft Financial Data 1986 – 1999, contribution per-
employee to business revenue increasing significantly.
1986 1990 1995 1999
Net Revenue 197 1,183 5,937 19,747 (Million $)
Number of employee 1,442 5,635 17,801 31,575
ratio net income to number
of employee 136,616 209,938 333,521 625,400
Why Steve Balmer, When Rejoined the Microsoft in 1998 do some Changes?
What are those Changes ? (1 from 2 slides)

Why Steve Balmer, When Rejoined the Microsoft in 1998 do some Changes?
– turn over rate are 7% - 7.6%, still below market which is 15,3%. However, The attrition rate for employee with service years
more than 7 and in seniors position are close to market data.
– Lack of sufficient Capable Managers & Leaders

What are those Changes ?

1. In Managing Culture
Embark on a series of one on one Interview with cross section of 100 employee and find out needed two things: A greater sens
e of clarity and excitement f company direction & More freedom to act without bureaucracy or red tape. So Ballmer sets Priority
Action:
– Change in long-time vision from, “a computer on every desk and in every home running on Microsoft software” to “To
empower people to do anything they want, any place they want and on any device”.
– Develop leaders capable of clearing obstacles, making decision quickly and defining clear goals >> Change in mana
gement style from traditional hands-n control to coaching
– Giving teeth to OHI measured by feeding back to each VP his detailed score.
Why Steve Balmer, When Rejoined the Microsoft in 1998 do some Changes?
What are those Changes ? (2 from 2 slides)
2. In People Development
Ballmer segmented The potential people into 3 waves too identify potential leaders and ensure the right people in the right
place making the right decision in the company:
–Wave 1 (100 employee worldwide): super selective and comprised those with near-term VP Potential >> review
by Gates and his 16 person Bus. Leadership Team (BLT)
–Wave 2 (200 in number): employee who had exhibit strong leadership potential and near term candidates for key
general management or functional leadership jobs >> review in individual bus. review
–Wave 3 (300 – 400 employees: included younger, more junior employee who had been identified as early career,
high potential for bigger jobs than they currently held.>> review in individual Bus. Review
–Plus, special category for individual contributors >> included key technical or functional leadership role but not
responsible to manage large groups.
3. In review & Rewards Policy
• Change in pay mix: policy line from 50th percentile to 65th percentile
• Non executive ladder from 12 to 22, so those who are doing well are likely to get promoted every 18 months
 Choose and Develop a competency based on
Key Success Factors
Key Success Factors : Leading Change

Influence : Impact & Influence >> Microsoft has a lot of single contributor
Managerial : Developing Others >> Personal Mentoring
Problem Solver : Expertise >> Attracting Smart
Achievement : Achievement Orientation >> recruitment req: most driven people
Helping/ Service : Interpersonal Understanding >>
Personal Effectiveness : Self Confidence & Flexibility >>
Employee Value Proposition
1. Employee Value Proposition (EVP): Compensation
- Offering sweetened salaries.
- Evaluation system which is developed based on six factors
2. Employee Value Proposition (EVP): Benefits
- Stock options: offers share ownership to employees outside of salary.
- Increase target level base pay from 50th percentile to 65th percentile
- Work-life balance encouragement, where employees are allowed to spend more time outside work
- Training and development for fresh graduates from the expert
3. Employee Value Proposition (EVP): Career
- Leadership development program, which enlist high potential people
- Offering more frequent promotions. Doubling the number of non-exec ladder from 12 to 22 in order to reward highest
performers
- Frequently review & reward to retain and awarding the expert.
4. Employee Value Proposition (EVP): Work environment
- Concern and hired experts to map employee satisfaction and company climate.
- More job transfer to international assignment
5. Employee Value Proposition (EVP): Company culture
- Offering softened pressures of “Hard-core” Microsoft Culture.
 Problem Solving
Problem
1. High attrition at the top level management
2. Employee leave the company because burned out or run out
of the challenge
3. Adapting HR Policies into the new business realities
• Business reality always change, and HR Team should prepare
the leaders (HR Leaders) who can read future trends and be a
ble to adapt to various situations. The next gen leader, should
be able to dare to take calculated risks and encourage the impl
ementation of strategies firmly and quickly in terms of HR Polici
es
• Building an inclusive workforce with various skills in talent. The
03
y can create new workforce experiences to strengthen team w
ork and productivity.
Solution
1. Work-Life Balance for new hired and “Softening” the
Microsoft’s Hard-Core Macho culture
a. Push the employee to prioritize their work & time to do the
work, by knowing their workload peak time.
b. Try to give a leave reward, or “may come late” policies for
those who worked overtime.
c. Hired experts to map employee satisfaction and company
climate.
2. Develop a program where employees can experience other
division work/atmosphere (tour of duty)
Thank you