HUMAN RESOURCES at L¶Oreal 64 600 employees in 66 countries Human Resource at L¶Oreal depicts a commitment to developing the competencies and

expertise of all employees to support the group¶s continued growth: There are around 5 development centers of L¶Oreal around the globe - in Shanghai, Rio de Janeiro, Dubai, New York and Paris As well as an online, next-generation learning offer They also provide a wide range of in-house tailored training programmes to enhance the skills of their employees Internship opportunities are also provided at L¶Oreal where 80% of young graduates got hired in 2009 as L¶Oreal interns. Strong commitment to diversity: - 110 nationalities - 57% of managers and 38% of management committee members are women - over 7 500 managers in 32 countries have attended L'Oréal's diversity training programme L'Oréal is ranked among the world's most attractive employers (n°3 worldwide among FMCG companies for business students) (2009 Universum survey).

Firstly. HUMAN RESOURCE MANAGEMENT AT MICROSOFT . By looking at how Microsoft operate. the study will present information on the human resource practices at Microsoft. Microsoft then. the study will analyse these practices with a view to showing why they are effective. Essentially. This study will focus on Microsoft¶s employee management methods including how they recruit and how they retain their staff. This focus on employees may.Microsoft is one of the wealthiest and most successful companies in the world. expand to all organizations. or better technology. Secondly. Even more important. is the fact that Microsoft is an employee-driven organization. Microsoft¶s success is based on the effectiveness of their employees. is worth studying as an example of best practice in human resource management. from a human resource perspective. Microsoft value their staff and realize the importance of their staff. in the future. While other organizations base their success on better manufacturing techniques. there is opportunity for other organizations to consider how they manage their employees and to consider whether their staff are also valued.

unexpected questions were also included. After the interview. as Steve Ballmer says ³whenever you meet a kickass guy. Microsoft employees´ (Bartlett 2). ³his preference for hiring extremely intelligent. They sought the smartest and the most driven people and did so aggressively. driven students´ (Bartlett 2). new college graduates dated from Microsoft¶s start-up days. Carnegie-Melon and Stanford. not necessarily experienced.In the Beginning Bill Gates is the driving force for Microsoft and from the beginning of the company he believed in recruiting extremely intelligent staff. shown by his quotes including ³it¶s the effectiveness of our developers that determines our success´ and ³take our 20 best people away. MIT. and work habits´ (Bartlett 2). The first stage was an interview ³by at least 3. favoring intelligence over experience.Recruitment and Selection . Once selected. get him´ (Bartlett 2). Microsoft recruiters would visit these universities ³in search of the most brilliant. interviewers would e-mail their decision on the interviewee with the words µHire¶ or µNo Hire¶ and comments on the problem area. problemsolving abilities.their µsmart friends¶´ (Bartlett 1). From the beginning Gates realized that his employees were his greatest assets. preferred that new employees had no experience. Technical interviews are described as being focused mainly on problem-solving. These interviews were designed not to test knowledge. and sometimes up to 10. when he and cofounder Paul Allen recruited the brightest people they knew from school . and I will tell you that Microsoft will become an unimportant company´ (Bartlett 2). these students had to undergo a thorough selection process. Yale. with interviewers posing problem scenarios. Two examples of these questions given are ³how many times does the person use the word µthe¶ in a day´ and ³describe the perfect TV remote control´ (Bartlett 2). Experience was not required and it was in fact. Microsoft¶s recruitment strategies reflect their philosophy. The recruitment strategies in the beginning included sourcing people from the elite educational facilities such as Harvard. but to test ³thought processes. the future interviewers would then use these comments to further investigate whatever issues there were with the interviewee (Bartlett . To test the composure of the candidate and also their creative problem-solving skills.

Microsoft¶s euphemism for the kind of highly talented and driven people they sought . one example is with the AOL down size. with Microsoft µhead hunting¶ the best staff.Later Stages Microsoft retained the same basic principles as they expanded but had to change their methods when the number of new employees required could no longer be sourced only from universities. After this series of interviews. This interviewing process was essentially a µmake or break¶ one. if the majority of interviewers were favorable the interviewee would finally meet with their manager and this manager would make a final hire/no hire decision. if subtle. Regular telephone calls at discreet intervals. if they thrived and survived this meant they would also thrive and survive in the Microsoft working environment. Employee Satisfaction and Loyalty . This policy reinforces that hiring the right people is more important than hiring just to fill a position. monitored and recruited from other companies by over 300 recruiting experts. we assembled a team to identify the best talent and go knocking on doors´ (Bartlett 10). The very last step is an interview by someone outside the hiring group. Microsoft also took advantage of breaking opportunities such as company layoffs. The importance of hiring the right people is also shown in Microsoft¶s µn minus 1¶ strategy which means less people are employed than are required. conversations at industry conventions.the pursuit was relentless. The recruiting practices continued to be active rather than passive. These staff were found. invitations to formal dinners . Recruitment and Selection . where interviewees were pushed to their limits. this person is independent and so unbiased in their opinion. This person is meant as a final check that the person is a good Microsoft person and also to prevent managers from hiring the wrong people because they have a need to fill a certain position (Bartlett 3). ³when we heard AOL was downsizing Netscape¶s operations in the valley.3).recruiting team members employed every means possible to keep the lines of communication open´ (Bartlett 9). ³once someone had been identified as µhard core¶ .

Recognizing that the majority of employees were just out of college. Critical to this is the link between individual performance and reward. It is noted that few employees leave the organization by dismissal. Measurable. This environment also included every employee having their own office they were free to decorate as they please and the provision of subsidized food and drink (Bartlett 4). in lieu of high salaries he offered employees equity (Bartlett 7). with the company offering stock options to employees based on performance. This is important because it allows people an opportunity to develop further. Also critical to the changes was a new focus on empowering people and of defining clear goals. the Microsoft company operated like a campus. Once listed on the stock exchange. One of the major changes was the requirement for top management to coach lower levels. with the majority leaving voluntarily (Bartlett 10). and employees were encouraged to develop themselves by switching jobs´ (Bartlett 6). these performance objectives shortened to SMART: Specific. and also make sure it gave them a sense of social belonging´ (Bartlett 4).Microsoft attempted to cater to the needs of its employees from the beginning. assisting in their development by doing so. with semi-annual performance reviews linked to pay increases. This became known as µturning over the keys¶ (Bartlett 11). Employee satisfaction was also afforded by the opportunity for growth. Attainable. ³development also occurred by encouraging horizontal transfers. while maintaining the same spirit the small company began with. Employee Rewards In the early days Gates was a firm believer that employee ownership was critical in raising motivation and employee retention. . Results-based. These changes were all designed to increase employee satisfaction and commitment to the organization. bonus awards and stock options (Bartlett 7).comfortable? We wanted to keep the atmosphere at work one they were somewhat familiar with. Performance goals employees were measured against were specific measurable ones. this continued. Concern over high attrition rates in the 1990s led to surveys to find the cause of the problem and for changes to be implemented. ³how do you make young kids who had never been away from home .or only as far as college . The former director of human resources describes this saying.

Microsoft actively recruit suitable employs and focus on the right type of person rather than the right type of skill level. Ch. these self-evaluations then being sent to the manager who does their own evaluation. This is an important symbol of Microsoft¶s commitment to retaining good employees. Microsoft employ different recruitment practices than many organizations based on their need for the very best people. their aggressive µhead hunting¶ techniques are justified. ANALYSIS OF HUMAN RESOURCE MANAGEMENT AT MICROSOFT Recruitment and Selection It is reported that companies must be aware of where they are going in the future and how the current configuration of human resources relates to this (Noe et al. What is most crucial here is that Microsoft¶s recruitment practices meet their human resource needs. The interview process at Microsoft reflects this with the new employee being interviewed by the manager. Based on the importance placed on having the best people in the industry. with their actions always leading towards their ultimate goals. As we have seen. It is an important sign of the focused approach of Microsoft.. Ch.5).. The system also included the process of employees evaluating themselves. basing their success on having the very best people in the industry and inspiring them to be the best.and Time-bound (Bartlett 2). Some important factors to be considered in recruiting staff include that the recruiter should be from the same functional area and that candidates should not be deceived about the negative elements of a job (Noe et al. This formal review system also included more common evaluations by managers to ensure no unexpected deviations. In µHuman Resource Management: An Experiential Approach¶ (Bernadin & Russell) human resources are described as an important source of competitive advantage. The employee and manager then meet to discuss the review (Bartlett 8). Microsoft use human resources for competitive advantage.5). It is this that leads to Microsoft¶s unique recruitment practices. The recruitment process also goes further than just . Stock options awards are based on whether the employee is considered a long-term asset of the company and awarded on this basis.

be creative. putting them under the same type of pressure they would be put under on the job. This is exactly what Microsoft provides for its staff and also exactly what it expects.informing the employee about the negative aspects. and acquire training for challenging assignments and advancement´ (Daft 530). they will be successful within the organization. A recent study reported in the Journal of Applied Psychology reports that employees working on projects are more efficient when their goals relate to the overall team goals rather than individual goals (Kristof-Brown). Innovate more. Employee Motivation McNamara says that ³the key to supporting the motivation of your employee is understanding what motivates each of them. Microsoft ensures that the goals of the organization are understood via its strong culture and by employees being clearly aware of what is required of them.´ The important thing about Microsoft is that they employ people who specifically will be motivated by the environment they provide. as it can be ascertained. they employ intelligent and driven individuals and give them the environment and the opportunity to develop beyond their current level. Employee motivation can also be related to Maslow¶s hierarchy of needs theory. Every day try to do better. that if the employee is successful in the selection process. One employee of Microsoft describes this saying ³the only way to achieve here is to push the envelope of what you can do. The people recruited and the systems within the organization all serve to motivate the type of people that Microsoft values. This is an effective method. The fit between employee and organization is important to motivation and this is what Microsoft ensures. instead the recruitment process actually tests the employee on the negative aspects. for them to be the very best they can be. This theory has the top level of the needs theory as self-actualization needs. Work harder. Microsoft achieves this by incorporating their goals into their human resource management programs. People are focused 100% on performing their job as successfully as possible (Bartlett 5). which is a persons need to be selffulfilled. Motivation can be described as providing a work environment in which individual needs become satisfied through efforts that also serve organizational objectives (Schermerhorn 395). They do not employ skilled people and expect them to be motivated. The link can also be seen here between the type of people . Work smarter. It is described that the way to achieve this is to ³provide people with opportunities to grow.

Ch. but Microsoft¶s awareness of this means that they specifically seek employees who will react well with role overload. The latest attempt is by providing greater opportunity for younger employees. This issue can also be looked at in terms of an employee¶s role. by having older employees coach them. with employees pushed to their limits. Role ambiguity is kept low by Microsoft because of the consistency in the culture and in what is required. suggesting that the change is considered and will be successful. Ch. Microsoft hires the very best people. the company largely consisted of young graduates and the company built a culture around the needs of this group of young graduates... Employee loyalty and satisfaction is also assisted by Microsoft¶s consideration of its employees. for these people to achieve self-actualization they need to be pushed harder than most and given greater opportunity to achieve than most. Three aspects of tasks that affect job satisfaction are job complexity. degree of physical strain and perceived value of the task (Noe et al. Employee Rewards In µIdeas That Will Shape the Future of Management Practice¶ (Bohl.that are employed and what is expected. role conflict is also kept low. Role overload is kept high. Employee Loyalty and Satisfaction We have seen that empowering employees is one of the new approaches being utilized by Microsoft. Luthans.10). role conflict and role overload (Noe et al. Hodgetts & Slocum) human resources is described as being the way of the future with it being argued that we . This high value is communicated via the high-achieving culture the company maintains. This process has continued. It is noted that empowering employees requires a culture that reflects this (Billsberry 292). There are three factors associated with roles: role ambiguity. In the Microsoft case we see that a change of culture is actually the reasoning behind the introduction of empowerment. Microsoft manages this by providing the high complexity high achievers require and by ensuring the perceived value of the task is high. In most organizations this would be a concern. with Microsoft always attempting to cater for the needs of its employees. We saw that in the early days.10).

Typically. By having these two reward systems. are rewarded with shares that will increase in value even as that person assists in moving the company management-at-microsoft-228974. conceptual skills become more required and technical skills less required as one moves up the corporate ladder (Daft 15). Important to the reward system is also the fact that there are two reward paths available.html#ixzz1EwdTwWif Under Creative Commons License: Attribution . allowing those with technical skills to advance as technical experts. Microsoft effectively communicates that both sets of skills are valued. they communicate to employees what is valued by the organization (Robbins. human skills and technical skills. while those with technical skills would not advance. that not only rewards for current achievement but rewards stocks to those that are seen as valuable future assets of the company. Reward systems are an important part of organizational culture. As we have seen. In most organizations. Read more: http://www. They recruit people for technical ability and so not rewarding for it would be dissatisfying to employees. due to the nature of its product. however. This can be seen as a prime example of the focus on a partnership. Microsoft. The skills of employees can be divided into three areas: conceptual skills. one for those following the technical path and one for those following the management path. Gates recognized the importance of his people from the beginning and this is reflected in the reward systems. just as those with conceptual skills advance as managers.will see a more mature articulation of the importance of people as a firm¶s only sustainable competitive advantage. those that are seen as being valuable to the company. The change is described as giving high reward for high performance with the focus on a partnership. offers two advancement path. Microsoft is a company valuing technical skills. employees with conceptual skills would be rewarded by moving up the corporate ladder. This is also an important sign of Microsoft¶s consistency. Bergman & Stagg 84).

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