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 On May 18, 2006, Microsoft Corporation (Microsoft),
the US-based multinational computer technology
corporation, announced a plan to significantly revamp
some of its Human Resource (HR) management
practices.

 The plan named 'myMicrosoft,' was aimed at

addressing employees' concerns and at boosting their
morale. According to the plan, the company intended
to change its performance-review system, increase
allotment of stock options, introduce new employee
benefits, etc.
 „isaBrummel Senior Vice-president, Human
Resource, Microsoft, said, "[myMicrosoft] will
help us continue to attract, develop, and retain
great people, drive success, and stay
competitive."
However, as the company grew rapidly in size, it
lost the popular elements of its work culture,
according to HR experts.

 Several racial discrimination lawsuits and

antitrust proceedings had affected the
company's image severely and reportedly
demotivated employees
Ô The case examines the employee motivation and
retention strategies of the US based Microsoft
Corporation (Microsoft). Since its inception, Microsoft
was appreciated for its employee-friendly HR
practices.
Ô However, during the late 1990s, as the company was
growing rapidly in size, it lost the popular elements of
its work culture. Moreover, several racial
discrimination lawsuits and antitrust proceedings
affected the company's corporate image and financial
performance adversely.
Ô In the early 2000s, in order to improve its profit
margins, Microsoft started cutting several employee
benefits, which demotivated its employees. To boost
the employee morale, in 2006, Steve Ballmer, the
then CEO of Microsoft, appointed „isa Brummel as
the Senior Vice-president of HR
 After taking charge, Brummel announced a
plan to significantly revamp some of the
existing HR management practices at the
company.

 The case analyzes in detail the HR initiatives

taken by Brummel. It ends with a discussion
on the benefits realized from the initiatives
implemented by her.
 „ack of challenging work environment,
 „ack of culture of risk taking
 Innovation were no longer encouraged
within the company...
 Several racial discrimination lawsuits and
antitrust proceedings
Study the corporate culture and HR practices
at Microsoft.

Evaluate the measures taken to motivate

employees.
Discuss the benefits of the strategies
implemented.

Appreciate the importance of recruiting the

right people for a particular job.
 Right people at right job.
 Introduce employee benefit scheme.
 Encourage innovative spirits.
 Encourage competitive edge.
 Comprehensive work culture.
 Enhance communication between employees.
 Design new work place to attract and retain
employees.