Assignment 2: LASA 2 Assignment—Workforce 2020 Executive Report

Workforce 2020 Executive Report

Microsoft Corporation is a multinational computer technology based company that manufactures, supports, licenses and sells a variety of software products used by computing devices. It is one of the leading brands in computer technology in the world and one of the largest and most valuable companies. Its headquarters is in Redmond, Washington in the United States of America. Its most reputable products which generate most of its profits are the Microsoft Office Suite, Microsoft Windows Operating System and Internet Explorer web browser. The company was founded in April 1975 by Bill Gates and Paul Allen (Allan, 2001).

Numerous productivity studies show that the motivation is one of the most significant contributors to increased productivity in a company or organization. Microsoft, which employs over 100,000 employees worldwide, is currently ranked as the second best company to work for in the world. This success is contributed to the company's exemplary employee motivation and encouragement methods. One method Microsoft uses to motivate employees is in coordination with Mayo Elton's theory. The theory emphasizes on managers and employees communicating effectively and openly. This can be achieved through working in groups and managers being more involved in the employees working lives. In Microsoft, the employees are divided into groups and each has a moral budget which they can use anyhow they wish. Some groups go to movie theatres together, skiing, bowling, among others. The employees are free to address forward any issues or developments they want to improve their working environment. Every floor in the building has a stock room where employees can acess help unlimitedly to anything. If an employee requires equipment not available in the stock room or needs something to be fixed or added in the office, he/she just has to post a note on the communication wall and within 24 hours the matter will be addressed.

Another motivation theory Microsoft uses is Herzberg's theory that stipulates that the more and better the benefits the company offers, the more the employees will be motivated. Microsoft has gone out of its way to offer a variety of benefits. Healthcare benefits include comprehensive employee and dependents' health coverage, health club membership and it's discounts, 24-hour health line and recently autism therapy. There are also paid maternity leaves and time offs, childcare services discounts and adoption fee assistance. The employees have an advantage at buying the company’s shares at discounts and a financial education program for the same. Microsoft also assists in learning and development of its employees through offering undergraduate and graduate tuition assistance and several internal training programs as well (Pardee, 1990).

The current workforce of Microsoft Corporation has more men than women, women accounting for only 29%. It is at 60% Caucasian, 29% Asian, 5% Latino, 3.5% African American, 1.2% multiracial, 0.5% American Indian and 0.3% Native Hawaiian (Microsoft, 2014). From the above records, it is clear the company is not where it should be in diversity. Consequently, the company has made considerable effort to employ more workers from the minority groups. The number of total women employees grew from 24% to 29% and women in senior executive positions from 24% to 27%. In the board of directors, the number of women and minorities has increased from 33% to 40%. Microsoft has begun programs like DigiGirlz, Blacks at Microsoft and YouthSpark. These programs reach talented students and professionals from the minority students and offering them opportunities to join the company.

Despite its good workforce reputation of attracting and retaining employees, the company needs to address changes in the workforce today, or they risk loss of employees to other companies. Today, workers do not seek only extrinsic benefits like healthcare and insurance, but also intrinsic benefits such as freedom. An ideal organization that Microsoft can borrow this motivation technique is Google. Google is currently ranked the best company to work for. Employees in Google have the liberty to come to work dressed as they wish even in pajamas, get 20% of time off to pursue their personal passions, employees divide themselves into brainstorming groups having project coordinators, employees report to no one but to each other and many more other freedom benefits. Even though some of these benefits can’t be plausibly implemented in Microsoft, the company would do well to follow in its footsteps. For instance, the 20% time off is a useful technique to reduce the risk of employees quitting so that they can start their own projects.

There are several industry trends which affect Microsoft both negatively and positively. For example, there is an increase in the prices for Office packages. However, unlike previous packages this one is only bought once. If Microsoft were to utilize this, it would stand to gain increase in revenue and profit sources. Introduction of Intel’s Broadwell Y in the market is very desirable especially for consumers who want to stay within the Windows Ecosystem. Therefore, there would be an increased demand for devices such as fan less laptops and other Microsoft products causing a major upgrade bump for Microsoft. Preference for iOS and Android tablets and smartphones over Windows phones and tablets is a negative trend. This has led to cutting off Nokia workforce reducing employees' morale even lower. Thus, the smartphone and tablet market is almost lost for Microsoft. Introduction of Chromebooks is another negative trend as they show the possibility of having laptops that don't require Microsoft or its compatible products. As Microsoft popularity and adoption increase, the sales for Microsoft decrease. However, the positives are more near term than the negatives. The negatives should take longer to cause drastic effects, and Microsoft should start being worried early.

References

Allan, Roy (2001). A History of the Personal Computer. Allan Publishing, ISBN.

Pardee, R.L. (1990). Motivation Theories of Maslow, Herzberg & McGregor. Literature Review.

Microsoft (2014). Microsoft Corporation Annual Reports. Microsoft Corporation.