Microsoft People Problems|Human Resource|Organization Behavior|Case Study|Case Studies

Microsoft People Problems

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : HROB035 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Case Length : 15 Pages
Period : 1994-2006
Pub Date : 2003
Teaching Note : Available
Organization : Microsoft Corp.
Industry : Software
Countries : USA


The case examines the growth of Microsoft Corp. from a small partnership startup to a global software firm. It discusses the changes that occurred in the culture of Microsoft as a result of its growth, and how these changes affected the employees of the company. The late 1990s saw a rise in the voluntary attrition rate at Microsoft. The case discusses the reasons for this increase and its effects on the company. It also talks about some other human resources problems experienced by Microsoft, such as the problem of recruiting new employees and the allegations of discrimination. Further, the case describes the efforts undertaken by the company to retain employees, notably, the restructuring of the company into seven new customer-focused divisions and changes made in the compensation policy.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies


To study the basic elements of motivation that spur individuals to excel in a small organization and how they tend to be lost in a rapidly growing organization when it becomes too big


  Page No.
Introduction 1
Background Note 2
The Antitrust Controversy 4
Increasing Attrition 5
No Challenges 6
Disadvantages of Size 7
Elements of Culture 8
Recruiting Difficulties 9
Issues of Discrimination 9
Checking the Exodus 10
Exhibits 12

Key Words:

Microsoft Corp., small partnership, startup, software firm, culture, Microsoft, employees, 1990, voluntary attrition, human resources, problems, recruiting new employees, allegations, discrimination, efforts, undertaken, retain employees, seven, customer-focused divisions, compensation policy.

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