Achieving Excellence Through Effective Hrm Commerce Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Each business when initiated is meant to develop goodwill, strong brand image and maximize its profits. To achieve all these, different strategies, resources and skills are utilized. Organizations seeking excellence must recognize the importance of human resource and they may have to invest millions of dollars to hire, develop, retain key employees, curtail the turnover and generate human capital for long term goals.

Investment spent on hiring an employee must be one time cost as cost of retaining an employee is nominal as compared to the cost of re-hiring & training. Active HRM enables an organization to retain employees. It also helps the human resource by providing skills & knowledge to them. It basically works on win-win philosophy. Managers must create ways to empower the employees with the freedom of innovation, sense of responsibility, and interactive team work.


The HR Department is more than an operational entity that not just looks in day to day activities but also allows an organization to run effectively. The HR department has become more strategic in nature and has to be aligned with the long term goals of the organizations. Companies have to hunt for the talent and retain it. Employees are required to be engaged in the success of the organization and valued for their potentials beyond a paycheck. Right employees must be placed at the right job and make sure that the employees are utilized up to their full potentials. This will allow the organizations to respond to any change or opportunity in an effective manner.

Organizations exist to make profit which can only be achieved by some competitive advantage (either by cost cutting or a differentiation strategy). HR policies play an important role in creating a competitive advantage by incorporating any or all of these i.e. induction policies, compensation and benefits techniques etc.

It can be concluded that the HR department has to be an inevitable and key player in the achievement of strategic organizational goals leading it to its ultimate success. (Strategic Use of human Resources¿½ by ERIC D. BROWN, July 5, 2006)

Human Resource department at any organization is very vital as it affect the results of any organization. Microsoft is a leading pay master and a dream organization to work with. It is well known for its innovation, diversity in culture and flexible work arrangements. It has adopted ¿½Performance Culture Model¿½ approach to achieve success; hires the most intelligent people who will be motivated by the environment they are provided, takes advantage of opportunities (i.e. hire key employees who are laid off by other companies), motivational tools such as campus environment as most employees are college graduates, chances of career development. (¿½Microsoft¿½s HR Strategy ¿½An Analysis¿½ by JYOTI PRIYADARSHINI)


Microsofti is a US based multinational computer technology organization established in 1975 by Bill Gates and Paul Allen. It deals in software products for computing devices and being the world leading computer technology organization, it has played and is still committed to continue its efforts to replace the customary techniques with the more sophisticated and efficient technology.

1. Brand Ranking

Microsoft brand is ranked at number twoii in overall categories but a world number one software company.

2. Financial Condition

It has revenues of 58.43iii Billion and brand value of more than $56,000 Million. Its sales growthiv was minus 3.3% in 2009.

3. Human Resource

Its head count was 93,000v as per year 2009 statistics.


The vimission and values of Microsoft are as under:


¿½To help people and businesses throughout the world realize their full potential.¿½


¿½As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.¿½

Microsoft¿½s target customers are both home and professional users; it has designed its products in a way that suits both types of customers. Two of its leading and widely used products are Microsoft Windows and Microsoft Office. Microsoft¿½s original missionvii was ¿½a computer on every desk and in every home, running Microsoft software¿½. It uses cutting edge technologies to help its employees for R&D and in innovating state of the art products.

In order to achieve its goals Microsoft has developed a culture that is open and diverse. It gives its employees: Diversity of race, national origin, gender, age, sexual orientation etc. It provides Microsoft the opportunity to avail many advantages as access to worldwide talent, innovation and chances to serve a big customer base more effectively.

Aspects of Microsoft HR Policy

1. Diversity Mission Statementviii

¿½Microsoft strives to understand, value, and incorporate the differences each employee brings to the company so that we can build the greatest multicultural workplace in the technology industry and reflect the growing diversity and inclusion of our communities and the global marketplace.¿½

2. Diversity Vision Statementix

¿½To establish Microsoft as a global leader in diversity and inclusion by driving global executive leadership, engagement, and accountability and by increasing workforce diversity at all levels, building value and commitment for work-life balance, and building capabilities for people and organizations.¿½

3. Diversity Valuesx

The diversity values at Microsoft are:

* Thinking and acting globally. Microsoft employs a multicultural workforce that generates innovative decision-making for diverse customers and partners.

* Innovating. Innovation helps lower the costs of technology.

* Showing leadership. Microsoft shows leadership by supporting the communities in which we work and live.

4. WorkLife Balance

Microsoft realizes the importance of workforce and treats them as their most value asset. It provides them freedom to opt for the necessary recreational activities and work in flexi hours. This allows them to perform up to optimum level using fresh minds. Microsoft is considered to be a market leader and trend setter for its innovative & user friendly offerings both for external and internal customers. Such products are results of innovative minds who live satisfied lives by maintaining work-life balance as per their own preferences. This philosophy works because performance is rated by MBO (Management by Objective) and not by timings only.

In addition to providing these programs, Microsoft is committed to creating a healthy, flexible, and productive work environment that allows employees to engage in a challenging career and balance their Work-Life needs.


Microsoft has three divisionsxi

* Microsoft Platform Products

* Services Division; Microsoft Business Division

* Microsoft Entertainment and Devices Division

It has a decentralized organizational structure with a wide span of management. It is run by a Board of Directorsxii consisting of ten people. Current members of the board of directors are as under:

* Steve Ballmer

* James Cash Jr.

* Dina Dublon

* Bill Gates

* Raymond Gilmartin

* Reed Hastings

* David Marquardt

* Charles Noski

* Helmut Panke

* Jon Shirley

These board members are elected every year in the annual shareholders¿½ meeting.


A secondary research was carried out through different publications, journals and company sites available on internet.


The main findings of the research are as under:

* HR Department is an integral part of any organization and can play a decisive role in company¿½s failure or success.

* Organizational strategic goals cannot be achieved without devising comprehensive and effective human resource strategies.

* Diverse workforce if managed successfully can satisfy the needs of a broader and complex customer base.

* The paradigm of world¿½s focus has shifted from the financial capital to the human capital.


* Empower employees with appropriate autonomy as it can result into innovation, sense of ownership, fulfillment and job satisfaction.

* Companies must induct diverse workforce as it helps them address the customer needs in better manner and also reduces the discrimination factor.

* Build supportive environment that helps the employees in achieving the assigned goals. Recognize their contributions and get rid of free riders. This act will energize and boost them to perform up to the optimum level.

* Employees must be given freedom of feedback which should be acknowledged. This will certainly enhance efficiency of processes and employees dedication towards their work.


UAE labor market is a hub of multicultural natives that gives opportunity to employers to hire employees with diverse skills and knowledge backgrounds. Also this market is not rated on high scales as far as human resource management is concerned. The above mentioned factors provide an opportunity for the organizations especially for Microsoft as it prefers the workforce with multiple/diverse backgrounds. It empowers its employees with opportunities of career growth, excellent compensation packages, recreational activities, fringe benefits and most important with independence to work in the way they like. These practices allow Microsoft to attract and retain the best labor pool available in the market.


Success story of Microsoft started with the effective use of human resource that ultimately resulted in a world class organization. From the above discussion, we can conclude that any organization going for excellence and success in its respective industry has to ensure the effectiveness of its HR department in order to keep the organization heading towards its goals successively. Subsequently, right use of human capital will result in the right use of financial capital.