Contents

Microsoft Corporation...........................................................................................................................2
Introduction...........................................................................................................................................2
Human resource Management at Microsoft Corporation.......................................................................3
Recruitment and Selection.................................................................................................................3
Training and Development................................................................................................................3
Performance Management- Culture Model........................................................................................3
Compensation and Benefits...............................................................................................................3
Employee Motivation, Loyalty and Satisfaction................................................................................3
Performance Appraisal and Feedback................................................................................................4
Labor Relations.................................................................................................................................4
Safety, Health, and Wellness.............................................................................................................4
Critical review of the behavioral and the contingency theory of leadership, and discussing the
Behavioral leadership theory in Microsoft Corporation.........................................................................5
References.............................................................................................................................................7
Microsoft Corporation
Introduction

Microsoft, headquartered in Redmond, Washington, is a globally operating technology

corporation that was established by Bill Gates and Paul Allen in 1975. This company stands
at the forefront of personal computer software system and application development. Its
extensive range of products encompasses operating systems, versatile productivity
applications, software development tools, video games, and training and certification
programs for computer system integrators and developers. As of 2015, Microsoft has
maintained a dominant presence in the market for IBM PC-compatible operating systems.
Operating in 170 nations, Microsoft leverages its workforce of 144,000 dedicated employees
to fulfil its corporate mission of enabling individuals and organizations worldwide to attain
greater levels of productivity. Microsoft is fundamentally a technology enterprise dedicated
to empowering people and organizations across the globe. Their commitment extends to
fostering local opportunities, growth, and positive impacts in every country they engage with.
(Cusmano & Selby, 1998)
Microsoft stands as one of the world's most prosperous and accomplished corporations.
What's even more noteworthy, particularly from a human resources standpoint, is Microsoft's
dedication to being driven by its employees. Unlike other companies that attribute their
achievements to superior manufacturing methods or advanced technology, Microsoft's
triumph is fundamentally rooted in the effectiveness of its workforce. In essence, Microsoft
places a high premium on its staff and recognizes their significance. This emphasis on
employees might potentially become a widespread trend in organizations down the line. (Ivy
Panda, 2023)
From the outset, Gates recognized the paramount importance of his staff, as evident in his
statements such as "our success hinges on the proficiency of our developers" and "remove our
top 20 individuals, and Microsoft's significance would diminish". Microsoft's recruitment
approaches mirror this ideology. They actively pursued the most intelligent and motivated
individuals, exemplified by Steve Ballmer's directive to "recruit exceptional individuals
whenever you encounter them"
Microsoft, in particular, has set itself apart from its competitors by implementing effective
human resource management strategies within the company. As a result, Microsoft
consistently seeks to attract top talent in the market to deliver the finest products to the
software industry. Microsoft's primary mission is to empower individuals and businesses
worldwide to reach their full potential, and their corporate strategy revolves around creating
software that makes this mission a reality. Consequently, the human resources aspect of the
organization is the pivotal component driving this strategy. The competencies, skills, and
talents of their workforce have enabled them to distinguish themselves from their competitors
and generate value. Therefore, the HRM function significantly contributes to the
development of their strategic initiatives. (Flores & Cruz, 2020)

Human resource Management at Microsoft Corporation

Human Resource Management holds a vital role at Microsoft, a prominent global technology
company. Microsoft places significant importance on its HR function, using it to fuel
innovation, cultivate diversity and inclusivity in the workplace, and align its workforce with
strategic goals. Several pivotal elements of HRM at Microsoft include:
Recruitment and Selection – Bill Gates held a strong belief in recruiting highly intelligent
personnel, prioritizing intelligence over experience. His inclination towards hiring
exceptionally intelligent individuals, even if they lacked extensive experience, can be traced
back to Microsoft's early days when he and co-founder Paul Allen recruited the brightest
individuals from their school networks. Microsoft's commitment to hiring the right people is
further exemplified through its 'n minus 1' strategy, which means they hire fewer individuals
than the actual requirement, underscoring the idea that hiring the right fit is more critical than
merely filling positions.
Training and Development- Microsoft's growth-oriented mindset commences by
prioritizing the value of learning over mere knowledge acquisition. They actively seek out
novel concepts, welcome challenges, derive insights from failures, and are committed to
continuous improvement. At Microsoft, the emphasis is on esteeming learning above
achieving recognition. Their core values revolve around the pursuit of knowledge, resilience
in the face of challenges, the assimilation of lessons from failures, and the ongoing
enhancement of skills. To foster such a culture, Microsoft provides a diverse array of learning
and development opportunities. Their approach emphasizes that education is less significant
than training, focusing on learning the right things at the right time and in the right manner.
Microsoft's opportunities encompass a range of options, including new employee orientation,
customized managerial training, classroom-based learning, career development coaching,
dedicated development and training programs, participation in social clubs and networks,
education reimbursement, access to an on-site library, involvement in employee resource
groups, and numerous other resources. (Flores & Cruz, 2020)
Performance Management- Culture Model- Bill Gates consistently held the belief that
employee ownership played a pivotal role in enhancing motivation and fostering long-term
employee retention. Consequently, the company extended enticing incentives to its
workforce, including competitive wages and opportunities to acquire company shares through
performance-based stock options once the company went public on the stock exchange. The
primary objective behind this approach, both then and now, is to motivate employees to
achieve higher performance levels, driven by the promise of augmented bonuses and the
prospect of stock ownership. (Texas HR Law, 2022)
Compensation and Benefits- Microsoft Corporation follows a pay-for-performance
approach in its performance management strategy. This involves a distinct total rewards
program that combines two systems to provide employees with a clear, straightforward, and
unique rewards structure. In addition to competitive salaries, Microsoft goes beyond industry
norms by offering its employees enhanced compensation and benefits. These include access
to medical facilities, comprehensive health insurance, an exclusive retirement plan,
transportation services, and a variety of other valuable perks.
Employee Motivation, Loyalty and Satisfaction- Bill Gates strongly believed that
employee ownership played a crucial role in elevating motivation, productivity, and
employee retention. Consequently, one of the ways employees were frequently incentivized
was through the allocation of company shares. Additionally, individual performance was
recognized and rewarded based on semi-annual performance reviews. (HR Management
Training GURU, 2013). Microsoft aims to hire individuals with these attributes and provides
them with opportunities to surpass their current capabilities, thereby fueling motivation and
productivity.
Microsoft maintains an open channel for feedback, actively seeking input from employees to
identify potential improvements at both the organizational and individual job levels. This on-
going feedback process is integral to the company's commitment to continuous improvement.

Performance Appraisal and Feedback- Assessing employee performance through a process

known as performance appraisal involves gauging their job-related accomplishments and
their overall impact on the organization. Microsoft employs the subsequent evaluation
techniques to assess the performance of its employees: Perspectives, Rating Scale, Critical
Occurrence Method, Field Review Method, 360 Degree Feedback, Balanced Scorecard…
(Flores & Cruz, 2020)
Labor Relations- Microsoft is renowned for upholding strong connections with its staff,
while also demonstrating dedication and reverence for various human rights principles and
proclamations, such as International Covenant on Civil and Political Rights, International
Covenant on Economic, Social, and Cultural Rights, International Labor Organization
Declaration on Fundamental Principles and Rights at work, Anti-Harassment and
Discrimination Policy and many more …
Safety, Health, and Wellness- Microsoft is committed to ensuring the safety, health, and
overall well-being of their employees, both during their work hours and in their personal
lives. In addition to their comprehensive benefits package, Microsoft offers programs focused
on occupational health and safety to its workforce. These initiatives are designed to guarantee
the safety of employees in the workplace. (Texas HR Law, 2022)
Critical review of the behavioral and the contingency theory of leadership, and discussing the
Behavioral leadership theory in Microsoft Corporation

Theories of leadership encompass a diverse range of perspectives and models that seek to
understand and explain the dynamic and multifaceted nature of leadership in various contexts
and settings. Two of those theories are the Behavioral and the contingency.
The first theoretical approach is the behavioral theory of leadership, which is a prominent
approach that emerged in the mid-20th century, aiming to understand and define leadership
based on observable behaviors rather than inherent traits. This theory focuses on what
effective leaders do and how their actions impact their followers and organizational
outcomes. The behavioral theory of leadership can be broadly categorized into two major
leadership styles: Task-Oriented Leadership that focuses on achieving goals and objectives
and focus on the effectiveness overall; and people-oriented leadership that focuses on
promoting collaboration and positivity. One of the foundational models in behavioral
leadership theory is the Ohio State Studies, which identified two key dimensions of
leadership behavior: consideration and initiating structure. Consideration refers to a leader's
ability to build positive relationships, show empathy, and provide support. Initiating
structure, on the other hand, relates to a leader's capacity to set clear objectives, establish
roles, and maintain a well-organized work environment.
Another significant model is the University of Michigan Studies, which distinguished
between employee-oriented and production-oriented leadership behaviors. Employee-
oriented leaders emphasize the well-being and job satisfaction of their team, while
production-oriented leaders prioritize efficiency and productivity. (Harrison, 2018)

The second theoretical approach is the contingency theory of leadership Developed in the
1960s and 1970s by scholars such as Fred Fiedler and Paul Hersey, posits that there is no
one-size-fits-all approach to leadership. Instead, effective leadership styles depend on the
specific context or situation.
At its core, contingency theory suggests that the most suitable leadership style varies
according to a multitude of factors, including the leader's personality, the followers'
attributes, and the circumstances in which leadership is exercised.
This theory encourages leaders to adapt their leadership styles to match the specific demands
of a given situation. By doing so, they can enhance their effectiveness and positively
influence their teams or followers. (Kerr, et al., 1974)
The major contingency model of leadership includes:
 Fiedler's contingency theory emphasizes that the favorability of a leadership situation
is contingent upon the leader's compatibility with the specific circumstances and the
quality of the leader-follower relationship.
 Vroom and Yetton's decision-making model, and Vroom and Jago, underscores that
the quality and acceptance of a leader's decision are influenced by the level of
participation and input from subordinates, with leaders choosing their decision-
making style based on the situation.
 Path-Goal Theory by House posits that effective leadership involves a leader's
adaptation of their leadership style to the specific needs and circumstances of their
followers in order to facilitate goal achievement, while House and Dessler's
Contingency Theory extends this concept by emphasizing that the most appropriate
leadership style is contingent on the situation and the characteristics of the followers.
  Hersey and Blanchard's Contingency Theory centers on the concept of follower
maturity, highlighting that a leader's most effective leadership style is contingent on
the maturity level of their followers.

Furthermore, and based on the above the we can clearly distinguish the Behavioral
leadership theory in Microsoft Corporation. Microsoft's history is a case study in how
different leadership approaches can contribute to the success and transformation of a tech
giant.
The company's co-founder, Bill Gates, demonstrated transformational leadership by inspiring
a shared vision of personal computing and fostering innovation. His ability to set high
standards and motivate employees was instrumental in Microsoft's early growth. (Shah &
Mulla, 2013). Gates was known for his relentless pursuit of innovation and his willingness to
take risks. In the 1980s, when personal computing was still in its infancy, Bill Gates had a
vision of making computers accessible to the masses. He saw the potential for a graphical
user interface (GUI) that would allow users to interact with computers in a more intuitive
way, rather than solely relying on text-based commands. This vision led to the development
of Microsoft Windows, which he championed.
Steve Ballmer, as CEO, provided directive leadership, offering clear guidance and motivation
through his enthusiasm and energy. Under his leadership, Microsoft adapted to changing
market dynamics and challenges. For instance, when Microsoft was facing challenges from
competitors, Ballmer made the decision to launch Windows 8 and didn't hesitate to push for
this strategic move, even in the face of initial criticism.
Satya Nadella, the current CEO, embodies servant leadership by emphasizing empathy,
humility, and a commitment to serving employees and customers. This approach has led to
cultural shifts within the company, fostering collaboration, and driving Microsoft's success in
areas like cloud computing. (Fox, 2019)
These leaders have created an environment where employees are encouraged to think
creatively and take calculated risks to develop new products and solutions.
The leaders have shown adaptability in response to changing market conditions. This
adaptability demonstrates a willingness to adjust leadership behaviors and strategies in
response to external factors.

References
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