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ICMR Center for Management Research Microsoft India’s HR Practices HROB/123 This case was written by Besta Shankar, under the direction of Ramalingam Meenakshisundaram, ICMR Center for Management Research (ICMR). It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2009, ICMR. All rights reserved. To order copies, call +91-40-2343-0462/63 or write to ICMR, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email i n f o @ i c mr i n d i a.o r g. w w w . i cm r ind i a.o r g
Transcript
Page 1: Microsoft

ICMR Center for Management Research

Microsoft India’s HR Practices

HROB/123

This case was written by Besta Shankar, under the direction of Ramalingam Meenakshisundaram, ICMR Center for Management Research (ICMR). It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.

2009, ICMR. All rights reserved.

To order copies, call +91-40-2343-0462/63 or write to ICMR, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email i n f o @ i c mr i n d i a.o r g.

w w w . i cm r ind i a.o r g

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Microsoft India‟s HR Practices

HROB/123

“We have a talent agenda and we need to, because in any intellectual property-driven business, our assets walk in and walk out every day. If we are to remain competitive, we have to give them a proper environment to shine through, so that they stay with us.” 1

- Ravi Venkatesan, Chairman, Microsoft India2

“Once a year, we take a deep dive to look at key people, key positions, the existing succession plan and developmental needs. We aim to identify or develop at least two 'ready now' and 'one move away' candidates for each key position. The idea is to facilitate planned career moves, especially for our leadership bench.”3

- Joji Gill, Director-HR, Microsoft India

“My experience in Microsoft has been exhilarating and rewarding so far. The three things that I like the most about Microsoft India Global Technical Support Center(IGTSC) are - Employee first approach, transparency and numerous opportunities for growth - both in personal and professional space.”4

- Rohit Gulati, an employee, Microsoft India

INTRODUCTION

In 2008, Microsoft India Corporation Pvt. Ltd (Microsoft India), the Indian subsidiary of Microsoft Corporation (Microsoft), was ranked as number one in the list of „Best Companies to Work for in India‟5 surveyed jointly by Business Today6, Mercer LLC7, and Taylor Nelson Sofres (TNS) Global8. Microsoft India was also believed to be one of the most sought after companies for information technology (IT) professionals and graduates in India.9

1 Kushan Mitra, “Microsoft India: A Vista Unlike Any Other,” http ://bu sine ssto d a y.i nto d a y. in,

October 26,2007.

2 Microsoft India is a subsidiary of Microsoft Corporation, world‟s leading software products and

solutionsprovider headquartered at Washington, USA.

3 Neha Sharma, “CEOs in the Pipeline,” www. fina nciale xpr es s.co m, October 14, 2006.4 ww w . m ic ro s o f t. c o m .5 “Best Companies to Work for in India,” ht tp ://bus ine ssto d a y. into d a y.i n, January 8, 2009.6 Business Today, New Delhi, a division of India Today Group, is a fortnightly business

magazine published in English started in the year 1992.Source: h tt p : // b us i n e s s t od a y . i n t od a y .i n(Accessed on May21,2009)

7 Mercer is a subsidiary of Marsh & McLennan Companies, Inc., US and its portfolio of services included financial consulting, HR consulting, Investment management and consulting and outsourcing. It was started in the year 1937 and as of May 2009, it employed over 18,000 people to serve its clients in 40 countries. Source: ww w . m e r c e r .c o m (Accessed on May 21,2009)

8 Taylor Nelson Sofres (TNS) Global is a London based market research firm covering industries such as Finance, FMCG, Technology, Media, Healthcare and Media. As of May 2009,it offered market research services in 70 countries across the globe. Source: ww w . t n s g l ob al . c o m (Accessed on May 21,2009)

9 Press Release, www.c yb er me d ia. co .in, September 19, 2008.

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Microsoft India’s HR Practices

In early 2009, Microsoft announced the layoff of five percent of its workforce worldwide, as it reported its first drop in revenues in its history of business spanning over three decades10. The company-wide cost cutting measures were applicable to some extent to its Indian operations, where the company laid off one percent (55 employees) of its total workforce.11 If the economic situation deteriorated further beyond a point, the company was prepared to prune its headcount further, globally as well as in India. Did the economic situation also warrant a change in Microsoft India‟s human resource (HR) practices? Or, were its strategic HR practices in alignment with thecompany‟s mission, values, and strategy?

BACKGROUND

Right from its humble beginning in 1975, Microsoft had been an innovator in computer software and related services. Its product portfolio included the Windows series of operating system software for clients and servers, the office productivity suite - MS Office, business applications software, games, and software for mobile phones and handheld devices. Apart from its software products, Microsoft provided online services for publishing and advertising, an e-mail facility for communication, and a search engine for information retrieval and decision support. Thecompany‟s mission was: “To enable people and businesses throughout the world to realize their full potential”12 (Refer to Exhibit I for Microsoft‟s value system and its relevance to the company‟s mission).

For the financial year ending June 2008, Microsoft earned an annual revenue of US$ 60.42 billion13 and employed nearly 91,000 people for its operations in 105 countries worldwide.14 Not only was it well known for its product innovations but it also won accolades for its employment and workplace management in terms of equal opportunity for all genders and for minority groups, long-term employment, fair recruitment processes, careers opportunities for the differently abled, providing work-life balance for working mothers, and representation of diverse cultures in itsworkforce. It was ranked 38th in Fortune Magazine15‟s List of „100 Best Companies to Work For‟published in the year 2009.16

Continuing its expansion of services worldwide, Microsoft started its Indian operations in the year199017 setting up Microsoft India Corporation (Pvt) Ltd in New Delhi. Later, Microsoft expanded its footprint in India by bringing all its six main units of business into the country. Microsoft‟s business in India (Microsoft India) was organized into the following six groups: Microsoft Corporation India (Pvt.) Ltd. (Marketing Unit), Microsoft India Development Center, MicrosoftGlobal Technical Support Center, Microsoft Global Development Center India, Microsoft Global Services India, and Microsoft Research India (Refer to Exhibit II for more information on various business units of Microsoft India). Microsoft India‟s mission was closely aligned with

10 Joseph Tartakoff, “Earnings: Microsoft Posts First Ever Drop in Revenue; Online Ad Revenue

Falls 16Percent,” www.p aid co nte nt.or g, April 23, 2009.

11 Ina Fried, “Microsoft Sends Second Wave of Layoff Notices to 3, 000,” http ://ne ws .c net. co m, May 5,

2009.12 ww w . m ic ro s o f t. c o m 13 ww w . m ic ro s o f t. c o m 14 ww w . s e c . g o v 15 Fortune magazine is a biweekly business publication in English language from Time Inc, a

group company of Time Warner. It was started in the year 1930 in US and as of May2009, its worldwide subscriptions stood at nearly 850,000. Its online version of news publications is hosted by CNNMoney.com.Source: h tt p : // m o n e y . c n n .c o m (Accessed on May 21, 2009)

16 h tt p :/ / m o n e y . c n n .c o m .17 www. fr anc hi seb us ine ss.i n

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Microsoft India’s HR Practices

that of the parent organization (Refer to Exhibit III for the mission of Microsoft India and how it intended to realize its mission).

Microsoft India had offices in ten cities in India namely Bangalore, Hyderabad, Chennai, Kolkata, New Delhi, Pune, Ahmadabad, Gurgoan, Indore, and Nagpur and its activities included research, product development, sales & marketing, and support services with an employee base of around5,500 people. In terms of headcount, Microsoft India was second only to Microsoft in the US as ofMay 2009.18

The headcount at Microsoft India Development Center (MSIDC) at Hyderabad grew from 20 in1998 to more than 1,500 by the end of 2008, making it the company‟s second biggest development center in the world (the biggest was the Redmond Development Center in the United States)19.MSIDC was spread across 54 acres and enjoyed state-of-the-art facilities for employees. It carried out distributed product development20 work in collaboration with the center at its US headquarters21.and also carried out end-to-end product development from India. The facility at Hyderabad had won The Acer, Intel & Economic Times Smart Workplace award22 2008 for providing a lively environment by combining technological infrastructure with recreational amenities to create healthy work-life balance. It was noted that the center closely resembled the company‟s facility at Redmond23.

MICROSOFT INDIA‟S HR APPROACH

Managing human resources in the IT sector has been a challenge for most companies that have set up operations in India. These companies aimed to take advantage of the relatively low cost of technically competent labor in India as compared to the US and developed countries in Europe. There was a huge demand for skilled personnel in this sector, but companies confronted by a lack of sufficient numbers of skilled personnel to meet the demand. In this scenario, many companies had to develop a strategic HR approach to retain and manage the talent. Microsoft India, for its part, had implemented employee-friendly HR practices across all its locations in India.

Microsoft India‟s HR strategy was focused on building the organizational capability to leverage the limited human resources to achieve the company‟s mission. Its HR approach aimed to increase employee involvement in the company, and used HR metrics to build accountability of the HRfunction toward business success. Microsoft India opted for a flat organizational structure. Senior executives acted as mentors rather than as bosses.

The company had a separate division that offered solutions and services to business units in the areas of:

o Organizational capability and change

o Talent management

o Leadership

o Technical training for developers and software architects

18 ww w . n as d a q .c o m 19 ww w . m ic ro s o f t. c o m 20 Distributed product development refers to working on same software products from various

locations across the country or countries.21 ww w . m ic ro s o f t. c o m 22 The Smart Workplace Award was instituted by The Economic Times, a leading Indian

business newspaper, in association with IT companies The Acer and Intel to honor the companies in India that use technology to provide friendly working environment for their employees and follow smart work place policies. Source: ww w .e a n d w g ro u p .c o m .

23 “The Acer, Intel & Economic Times Smart Workplace Awards Conclude,”

www. ind ia p r wire. co m, July22, 2008.

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Microsoft India’s HR Practices

According to Microsoft India‟s HR growth model, HR was ultimately expected to be a change leader and business driver. To achieve this goal, it required a sound HR infrastructure and error- free implementation (Refer to Figure I for Microsoft India‟s HR growth model). Excellence in execution of the practices was the main pillar on which the foundation and growth of HR reliedupon.

Figure I: Microsoft India‟s HR Growth Model

Sound infrastructure

Technology, process, policies, programs, marketing excellence

Errorless implementation

Leading change

Business driver

Reactive HR Strategic HR

Adapted from “HR Connect,” www .su r f g o l d.com, July 2008

HUMAN RESOURCE MANAGEMENT PRACTICES

Recruitment and Selection

Microsoft India recruited both fresh graduates from academic campuses and experienced professionals in the IT industry. For campus recruitments, the selection process included written tests and several rounds of personal interviews. It conducted campus selection in prestigious engineering colleges in India like the Indian Institutes of Technology (IIT) and it was one of the most sought after brands for the brightest and the best. For selection of experienced professionals,it scrutinized the candidates‟ CVs and conducted four to five rounds of interviews, including technical and HR interviews. The company sought candidates who had “sound computer science basics, ability to understand the technology, and its sharp application in creating superior quality software”.24

Microsoft India assigned a buddy (friend) to each new recruit to help in adapted to the company‟s environment. It also provided a real estate consultant to assist new recruits in finding convenient accommodation.25

Training and Development

For trainees, Microsoft India conducted a training program named Leap Engineer Acceleration Program (LEAP) which imparted technical and personal skills required to carry out the job26. It implemented a mentoring system that helped employees in getting guidance from their mentors through open discussion and an interactive learning process.

In order to provide growth opportunities to its employees, the company conducted various technical and management training programs. It also provided opportunities for job rotation so that its employees could gain more knowledge from different jobs and technology domains. The

24 Newsroom, w w w . m ic ro s o f t. c o m 25 Kushan Mitra, “Microsoft India: A Vista Unlike Any Other,” http ://busi nes sto d a y.i nto d ay.in, October

26,2007.

26 Newsroom, www. micro so ft.c o m

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Microsoft India’s HR Practices

company identified young professionals with leadership potential at an early stage of their careers and prepared them for leadership roles ahead at a later stage of their career. Microsoft India‟s employee development measures served to retain existing employees by providing them with opportunities for growth.

Career Management

Microsoft India provided both vertical and lateral growth prospects for its employees in all the six business units present in India. India was one of few countries where all the different business divisions – Research, Development, Testing, Consulting, Sales & Marketing, and Support – had a significant presence. Employees could move between the six business units according to their areas of interest. Moreover, employees were provided with exposure to different business units by way of mentoring from senior employees of Microsoft worldwide.27

Flexible Work Timings

Microsoft India followed a flexible work timings policy for its employees. A flexi-time policy enabled the employees to work according to their convenience liberating them from rigid work timings. Through flexible routines, the company strove to infuse a sense of responsibility and discipline in its employees, while also building up a rapport with them and among them. It also served as a retention scheme for employees

Employee Retention at Microsoft Global Technical Support Center (MSGTSC)

For employee retention, Microsoft India initiated various programs particularly in MSGSTC, Bangalore, where work was carried out around the clock (24 X 7) in order to provide technical support services to its customers in different nations and time zones. While similar companies in24/7 working environments faced attrition levels of 17% to 20%, MSGTSC managed to bring the level down to single digit levels by communicating to its employees their high career growth path,providing rewards and recognition for their performance, and creating an enjoyable workplace,apart from offering satisfying compensation packages.

MSGTSC conducted a questionnaire survey to find out why employees stayed with the organization, their reasons for leaving, and reasons for returning to the organization after having left. The details collected were analyzed and interpreted to frame an „Employee Value Proposition‟that articulated what the company offered to its employees. According to this „Employee ValueProposition‟, working at the company met the following eight needs of Microsoft employees:

Working with technology everyday

Caring for every employee

Working in an energizing environment

People-friendly benefits

Building careers for life

Recognizing great work

Enjoying each day

Making a difference globally

27 Sangeetha Chengappa, “Living the Experience Together, the Microsoft Way,” Deccan Herald,

December20, 2006.

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Microsoft India’s HR Practices

In order to satisfy the assessed needs of the employees, MSGTSC launched a program called „You and Microsoft, Living the Experience together!‟28. Actions initiated under this program included allowing the employees to work on cutting-edge technologies much before they entered the marketand creating an environment to work with development teams in Redmond, USA in producing new products. It also provided a fun workplace with facilities such as a recreation room with Microsoft X-box video gaming and other relaxation facilities.29

Compensation and Benefits

Microsoft India provided offered compensation packages on par or higher than the industry standards based on the technical skills and experience of the candidates. Employee benefits were standardized across employees. The benefit schemes were re-evaluated twice a year. The benefit programs included:

Medical benefits that were aimed keeping the employees healthy and motivated, so as to

reach expected productivity levels.

Tuition assistance programs which included financial assistance to meet tuition expenses

for all employees. This gave them the opportunity to continue their formal education while working.

A range of professional counseling and support services for employees and eligible family members

Facilitation for employees to relocate if transferred to help them settle easily in the new location

Assistance programs in case of emergency for employees and their eligible dependents travelling on company work to locations worldwide.

Company stock offers to the employees to enable them to share the benefits of the

company‟s performance30

Crèche reimbursements for women employees, and mother‟s room facility on the campus..

Performance Management

Microsoft India followed a candid process while evaluating the performance of employees and regarding their compensation packages. The process was transparent so as to enable employees to identify their performance levels and have a clear idea of what was required in terms of performance in order to reach to the next level.

Microsoft India identified high performers and offered them monetary as well as non-monetary rewards. These rewards were usually presented during team meetings. At MSGTSC, the ACE Awards (Architects of Excellence) were given to employees who contributed to customer satisfaction by enabling the optimal utilization of Microsoft products. Apart from this, every quarter, a group of high performers was invited to share their experiences with a large audience.31

28 Sangeetha Chengappa, “Living the Experience Together, the Microsoft Way,” Deccan Herald,

December20, 2006.

29 Sangeetha Chengappa, “Living the Experience Together, the Microsoft Way,” Deccan Herald,

December20, 2006.

30 w w w . m ic ro s of t. c o m 31 Sangeetha Chengappa, “Living the Experience Together, the Microsoft Way,” Deccan Herald,

December20, 2006.

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Women‟s

Empowerment

Microsoft India conducted special recruitment drives exclusively for women in line with the overall IT industry‟s aim of raising the female-male ratio in the workforce.32 The Microsoft One- India Women‟s Conference was held annually for all the women employees of Microsoft India to provide them a platform to share their experiences in overcoming the hurdles in their career growth path and in establishing a suitable work-life balance.33 Men were also encouraged toparticipate in this conference to increase awareness of these issues. The parent company (Microsoft Corporation) had been in the list of „100 Best Companies for Working Women‟ by Working Mother Magazine34 for six times in a row by the end of the year 2008.35

Work-Life Balance

In 2007, Microsoft India launched a program called „Bring Your Child To Work‟ in a move to improve work-life balance among its employees. This program was initiated as a family-friendly HR policy and it helped the families of employees to see for themselves a typical working day of aMicrosoft employee. More than 500 children of the Microsoft employees across various locations in the country participated in the program. Commenting on this initiative, Joji Gill said, “The other part of the motivation stems from the fact that children, as the harbingers and users of tomorrow‟s technology, have always been important to Microsoft. This introduction is an opportunity to introduce them to the excitement of technology and the innovative work that Microsoft is doing.”36

HR METRICS FOLLOWED BY MICROSOFT INDIA

In Microsoft India, metrics were developed to track and define the effectiveness of the HR function. Microsoft India HR policies aimed to maximize the value of human capital in achieving business growth by focusing on talent acquisition and development, management development, leadership development, and management of evolution of the Microsoft culture.

Microsoft India attempted to ensure positive returns on investments in HR by facilitating the development of the employees and their career growth in addition to providing a congenial organization culture. To assess the return on investment (ROI) from various HR initiatives, Microsoft India tracked the performance of its HR practices and compared them against the investments made.

Microsoft India evolved two important metrics that reflected its organizational readiness and talent management. One was the Succession Planning Indicator (SPI) and the other was Succession Planning Usage (SPU). SPI indicated the people who were ready to take lead roles and those who were one step away from taking the lead roles. This indicator clearly reflected the organizational preparedness to run the business without interruptions. SPU was used to assess the worth of theprevious year‟s succession plans at the same time to find out the organization‟s efficacy in utilizing such plans while filling up the vacant lead roles. SPU indicated the percentage ofleadership positions filled with those on the list of succession plans.

32 Sreekala, “IT's Advantage Women as Hiring Tide Turns,” http ://eco no micti mes.i nd iati mes.co m,

August6, 2008.

33 ww w . m ic ro s o f t. c o m 34 Working Mother‟s Magazine publishes information for mothers pursuing careers to maintain

work-life balance. It also publishes annually a list of companies that provide best amenities for the working mothers. It is published from New York. Source: ww w . w o r k i ng m o t h e r .c o m (Accessed on May 21,2009)

35 w w w . m ic ro s o f t. c o m 36 “Children‟s Day Out at Microsoft India,” h ttp ://ep ap er .ti mes o find ia. co m, May 19, 2007

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Table I: HR Metrics Used at Microsoft India

Area HR Metrics

Organization Size of organization, vacant positions, ratio of headcount in HR function toheadcount in line functions

Organizationhealth

Workgroup Health Index, Microsoft Pulse Index, Microsoft Culture index

Staffing Hiring statistics – nature of hiring, channel-wise hiring statistics, vacanciesfilled through internal employees, hiring expenditure, lead time, percentageof hiring plan, ratio of offers accepted, reasons for declining the offers

Talent management

Quarterly and yearly tracking of attrition rates, percentage of high positionsretained, percentage of promotions, succession planning indicator, succession planning usage

Diversity Ratio of women, number of women hired, percentage of women talentlosses, percentage of women in leadership succession slate, percentage of managers and employees completing diversity training programs, percentageof other diversity hiring (differently abled)

Manager capability

Span of control, organization depth, percentage of managers to non-managers

Learning and development

Field Readiness Index, number of employees trained on employeedevelopment programs, number of managers trained through management excellence framework (that provides for management development throughcareer events, continuous learning and building connections)

Leadershipdevelopment

Percentage of leadership hires, percentage of leadership attrition, SuccessionPlanning Indicator, Succession Planning Usage

Rewards Cash consumed in budget for rewarding the employees

Adapted from “HR Connect,” www .su r f g o l d.com, July 2008.

Community Work by Employees

Towards fulfilling its responsibilities as a corporate citizen, Microsoft India earmarked one of the months in a year for employees to work for a social cause of their choice, and the company covered a part of the expenses of such activities. The company claimed that these activities not only served the broader social cause but also made the workplace more enjoyable.

In 2000, MSIDC started a culture of contribution in which employees donated money to social service organizations and carried out awareness creation programs. The funds collected by way of employee contributions was supplemented by the company and then distributed to eligible nonprofit organizations. By May 2009, MSIDC and employees had contributed more than Rs 20 million toward the funding needs of nonprofit organizations37.

CONCLUSION

Though Microsoft India‟s HR practices received accolades from many quarters, the „Best Employer Survey 2008‟ released by Dataquest said that overall employee satisfaction at Microsoft India was below the industry average in India. Except for its compensation packages where it wasabove the industry average, in most of the parameters regarding employee satisfaction, it scored

37 www. micro so ft.c o m

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Microsoft India’s HR Practices

less than the industry average (Refer to Exhibit IV for employee satisfaction ratings at Microsoft India on various parameters). Keeping in mind the difficult economic environment due to the global economic slowdown and the scope for improvement on various parameters of employee satisfaction, was there a need for Microsoft India to re-align its strategic HR practices?

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Microsoft India’s HR Practices

Exhibit I

Microsoft‟s Mission and Value System

To achieve the company‟s mission of “To enable people and businesses throughout the world to realize their full potential,” Microsoft sought „great people who are bright, creative, and energetic‟ and expected them to abide by the following value system.

Integrity and honesty

Passion for customers, partners, and technology

Open and respectful with others and dedicated to making them better

Willingness to take on big challenges and see them through

Self critical, questioning and committed to personal excellence and self improvement

Accountable for commitments, results, and quality to customers, shareholders, partners and employees.

Source: www.mi cros oft .com

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Exhibit IIMicrosoft India‟s Business

Units

Microsoft India’s HR Practices

Business Unit OperatingArea

Description Head of the Unit(as of June 2009)

Microsoft IndiaDevelopment (MSIDC) Center, Hyderabad

ProductsDevelopment

One of the main divisionscontributing to Microsoft global product development and in producing future innovative products.

Srini Koppolu

VP & MD

Microsoft GlobalServices India(MGSI), Hyderabad

Enterprisesolutions

Offered solutions for theenterprises worldwide based on Microsoft technologies and products

Amit Sircar

General Manager

Microsoft Corporation India Pvt. Ltd.

Sales andMarketing

Performed sales andmarketing services forMicrosoft products from offices in various locations inIndia

Rajan Anandan

Managing Director

Microsoft IndiaGlobal TechnicalSupport Center(MSGTSC),

Bangalore

TechnicalSupport

Dealt with solving technicalproblems associated with Microsoft‟s

worldwide customers and its partner‟s products.

Sashi Kumar

General Manager

Entertainment andDevices Division

HardwareProducts

Carried out marketing ofMicrosoft hardware products such as mouse, keyboards,web cameras, and gamingproducts

Jaspreet Bindra

Regional Director

Microsoft ResearchIndia Pvt. Ltd. Bangalore

Research Involved in innovating thetechnologies for Microsoft products by conducting research inthe areas of computing, IT, and its related areas.

Dr P Anandan

Managing Director

Consumer andOnline MicrosoftIndia PrivateLimited

Online services Managed Indian version of the global MSN38 services

Hemant Sachdev

Joint ManagingDirector

Compiled from www.mi cr osoft .com /i ndi a

38 MSN is an online services portal from Microsoft Corporation which provided users with e-mail facilities, desired access to the news covering various topics and links to popular websites of different categories. Source: h tt p : / /i n . m s n .c o m (Accessed on May 26,2009)

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Microsoft India’s HR Practices

Exhibit III

Microsoft India‟s Mission and Strategic Initiatives

“As India moves towards a leadership position in the global knowledge economy, Microsoft continues to work in close partnership with all stakeholders, including the government at the state and national level, the Indian IT industry and academia, to ensure that technology is leveraged as a catalyst for enabling more and more individuals and communities to realize theirfull potential.

The following three strategic initiatives define Microsoft‟s mission of „Realizing

India‟sPotential‟ today:

Creating a Digitally Inclusive Society

Creating a digitally inclusive society implies a thrust on long-term investments for taking the benefits of IT to the grass root and reaching out to communities in rural and semi-urban India which are marginalized and are on the wrong side of the 'Digital Divide'. Accelerating IT literacy, creating locally relevant content in Indian languages and ensuring affordable access to technology are the key levers for achieving this mission.

The Local Software Economy

Microsoft works with its partners and developers in creating a vibrant local software economy. Significant investments in skills transfer and joint go-to-market initiatives are planned with partners to enable them to tap domestic and global opportunities while delivering increased business value to customers. The Indian ISV community is encouraged to realize the opportunities in the software products space, and Microsoft empowers over 650,000 developers in India with tools, technologies and training required to develop high-end skills and compete in a global marketplace.

Innovating from, for and with India

Innovation at Microsoft focuses on innovating from India, innovating for India and innovating with India. These three aspects involve setting up facilities for Indian IT professionals to create an impact at a global level without leaving home; developing innovative products to overcome the language barrier and to increase the accessibility and appeal of the PC and creating a robustIT economy that's geared to enable India retain its leadership in the knowledge economy.”

Source: www.mi cros oft .com/i ndi a

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Microsoft India’s HR Practices

Exhibit IV

Microsoft India‟s Employees Satisfaction (as of

September 2008)against Industry Average

8.8

8.68.6

8.58.5 8.5

Employee Satisfaction at Microsoft India8.7

8.5

8.4

8.2

8

7.8

7.6

7.4

8.4

8

8.28.2 8.28.1

87.9

8.1

8.4

Industry average

Microsoft India

Adapted from “Microsoft: Building Leaders,” h ttp : //dq ind ia.cio l.co m, September 19, 2008.

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References and Additional Readings:

Microsoft India’s HR Practices

1. “Microsoft Lays off 1% of India Staff,”

htt p:// www.wor kexp.com/t ag/ mi cr osof t/ , May11, 2009.

2. Ina Fried, “Microsoft Sends Second Wave of Layoff

Notices To 3,000,”www .pa i dco n t e n t . o r g , May 5, 2009.

3. “Microsoft Reports First Quarterly Loss in

Its 23-Year History,”https:// www .d a il y he r a l d . c o m / s t o r y / p r i n t / ?id=288730, April 23, 2009.

4. Rahul Sachitanand, “Microsoft India: Staying on Top,” h t t p : // b us i ne s s t o d a y . i n t oda y . in , January 8, 2009.

5. “Microsoft India: Top Management Churn,”htt p: // dqi ndi a.ci ol .com/ content/ dqtop20_08/ 2008/ 108122524.asp, December 25, 2008.

6. Priya Kekre, “Leaner Salaries Lower Hikes,” h t t p : / / dq i n d i a. c i o l .co m, October 1, 2008.

7. “Microsoft: Building Leaders,” h tt p : / / d q i n d i a . c i o l .co m / co n t en t / dq t op20_ 0 8 / B e s t E m p l oy e r s / 200 8 / 10 8 09192 4 .a s p, September 19, 2008.

8. “What Employees Expect,” h tt p : / / d q i n d i a. c i o l .co m / co n t en t / dq t op20_ 0 8 / B e s t E m p l oy e r s / 200 8 / 10 8 09193 0 .a s p, September 19, 2008.

9. Sudesh Prasad, “A Year of New Entrants,” h tt p : / / d q i n d i a . c i o l .co m, September 19, 2008.

10. “TCS: Still an HR Torchbearer,” h tt p : / / d q i n d i a. c i o l .co m / co n t en t / dq t op20_ 0 8 / B e s t E m p l oy e r s / 200 8 / 10 8 09192 7 .a s p, September 19, 2008.

11. “HR Best Practices: Managing Employee Information From “Hire To

Retire,”ftp://ftp.software.ibm.com/software/data/ECM/industry/employee-lifecycle-datasheet.pdf -, August 2008.

12. “The Acer, Intel &Economic Times Smart Workplace Award conclude,” h tt p : / / www . i n d i a p r wi r e.c o m / p r e s s r e l e a s e / i n f o r m a ti o n - t echno l o gy / 2008072211 35 5.h t m , July 22, 2008.

13. Renuka Vembu, “The Microsoft IDC family,” www.expr ess comput er onli ne.com,

April21, 2008.

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29. “Microsoft India: Software Dynamics,”htt p: // dqi ndi a.ci ol .com/ content/ DQT op20_2006/r anki ng06/ 2006/ 106081717.asp, August17, 2006.

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