International Human Resource Management in Microsoft: A Case Study

This report examines the international human resource management practices of Microsoft Corporation, a multinational technology giant. It explores the company's recruitment and selection strategies, cultural dimensions, and the challenges of managing a global workforce. The report analyzes the impact of Hofstede's cultural dimensions on Microsoft's IHRM practices, particularly in China, and discusses the importance of cross-cultural teams and expatriate management. It also highlights the role of strategic human resource management (SIHRM) in achieving Microsoft's global business objectives.

INTERNATIONAL HUMAN RESOURCE
MANAGEMENT IN MICROSOFT
ID Number:
Module Code:
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Contents
OVERVIEW.......................................................................................................................................3
INTRODUCTION................................................................................................................................4
TASK 1..............................................................................................................................................5
TASK 2..............................................................................................................................................8
CONCLUSION.................................................................................................................................11
REFERENCES...................................................................................................................................12
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OVERVIEW
Microsoft Corporation is an American Multinational company based on Technology. They
develop, manufactures, supports, licenses and sell computer software, personal computers and
other electronic goods and services. The founder of the organization Paul Allen and Bill Gates
together has developed their first product BASIC interpreters for Altair 8800. The origin of the
organization has risen subsequent rise in their employees since 1975. It has made a number of
corporate acquisitions and has connected billions of users. It has increased diversely in the
operating system market. The numbers of employees working current are around 1, 24,000
million.
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INTRODUCTION
The report covers the International human resource practices of Microsoft Corporation. The
International Human resource management can be defined as the set of activities that aim to
manage the organizational human resources at international level. The elective measure to opt
Microsoft as the case company to understand International human resources management for
this assessment is due to the capabilities, knowledge and skills of human resources of the
organization. They effectively help in achieving its objectives (Sekiguchi, et al. 2016). Therefore,
Microsoft considers human resource as a strong point for enriching the company’s success.
The IHRM provides an effective measure of human resource practices like- recruitment and
selection, training and development, dismissal and performance appraisal. Thus, such activities
add on to the global skills management and expatriate management and so on.
Globalization in Microsoft has provoked some interesting speculation as for the part of
enthusiasts ‘globalised economy'. The impact of HRM policies and practices has identified
several stages of gaining knowledge about the indigenous firm. Right from the 1980s, Microsoft
was still a no-name, however, the launch of MS-DOS has allowed and encouraged participants
to tailor their product and improve quality over time (Yang, 2015). The working measures of
Microsoft have significantly reduced the overhead costs which have developed a more
conventional business network. It has continued to expand and remain competitive as well for
other companies.
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TASK 1
As the HR of the Microsoft organization, it is essential to develop certain policies and
management functions for running competitively in the global market. It is highly believed that
employees are a pillar of any organization. Therefore, appointing the right candidate is
foremost principle measure of any HR. Microsoft also referring to the recruitment and selection
of the candidates from all over the world (Horwitz, 2016). It is believed that recruitment of
extremely intelligent staff with high experiences is considered as the attractive and permanent
candidate for the job. It has been encountered that Microsoft is the first and foremost
organization to offer jobs to elite graduates at their campus fair and enhancing their career
across the world.
The elective measures of appointing any candidate are based on the knowledge and skills of the
candidate whether he/she is able to tackle the problem and add the solution to it. The thought
process and composure testing exercises rather than technical interview has been selected by
the Microsoft. Even, the interviewing measures of Microsoft are to push the candidate to the
extreme level of creativity and analytical abilities and familiarity with a computer program.
There are different aspects to improve the business with exciting new opportunities and
generating growth and profit. Significant risks and challenges are associated with supervision of
global operations. Therefore in order to expand internationally a range of trusted employees
are necessary. Other than this, there are different ways through which companies enter the
global market. Steps are involved while entering the international market. The current business
environment of the Microsoft aligns on to develop competitive advantage through intensive
growth. For this, the company depends on the generic strategy. It supports the attractiveness of
computer hardware and software products. The selling of the products through the website is
considered as the simplest way to enter the global market and Microsoft sells their products
and services fluently. It has also enriched products selling chances along with key export
markets (Minbaeva, 2015). Further, the Microsoft offers visit services to many territories
through which their direct selling features is enhanced. It is considered a cost-effective way to
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enter the global market. The distributorship is another way to outreach to the target market. It
reduces the cost of the sales and logistics requirements. These ways also severe issues while
associated internationally. They are-
 Legal complexities can affect the international business if proper legal advice is not
subjected. Henceforth, it will lead to fines and penalties.
 Understanding of the language of other countries is important otherwise it will lead to
language barriers and struggle in offering the customer services to another country
 The traditional outlook of different region follows different values and cultures this stark
on the differences and can prove to be a problematic issue. Safety or security is the
most basic criteria to learn the cultural intricacies of the business region
 The opposing from the people towards the products and political problems can oppose
the globalization and outsourcing of the customer base
The possible strategies opted by Microsoft to enhance their international business
development in employee recruitment and selection (Dickmann, et al. 2016). Microsoft
depends on the strategic human resource management (SIHRM) approach in order to manage
and support long-term business goals and outcomes with a strategic framework. Microsoft’s
biggest value is derived through providing software developer’s and other functions through
primary operations. The value chain analysis acts the major contribution to develop strategic
alliances with other companies and developing business opportunities for them.
The strategies supporting the intensive growth of the organization are the Generic strategy,
Intensive growth strategies and others. For generic strategy, Microsoft Corporation uses broad
differentiation measures which involve selling of unique products and services such as software
products specifically designed for business organization. Through this strategy, the company
builds its competitive attractiveness and associate a large number of customers globally. The
entrance to China and India has provided a platform to the Microsoft Corporation under their
long-term investment and development strategy (Rowlands and Iles, 2017). The realization of
the innovation and both localize and land technologies have supported the economy of the
country. The recruitment and selection strategy suitable provide the candidate with technical
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knowledge to handle the company’s business on the international level. The Microsoft
employee’s referral program helps in providing an opportunity to the business of Microsoft
with maintaining the effectiveness of the program.
It has been claimed that the impact of the success of HRM practices requires the knowledge,
skills, abilities, and other advantageous competencies that support establishment in achieving
its goals. The selection process includes promotions, accessions, demotions, training
assessment, and temporary assignments (Santos, 2016). On one hand, it can be time-saving but
it controls less number of final candidates which are interviewed from outside resources. While
there may be plenty of talent but appropriately certain types of experience levels people are
hired. This involves the HR functioning and guidance as it can effect on the proposal proposed
as per the organization functioning.
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TASK 2
Effective use of the cross-cultural teams is an innovative way of enhancing the competitive
positioning of the organization. A significant effect of the element at every stage of
employment of an expatriate employee can be conducted. There are certain IHRM distinctive
trajectories which help in providing the HR’s Strategic role to improve the organizational
performance (Dickmann, et al. 2016). The issues that are identified aforementioned can impact
on the HRM practices of the organization as well as an effect on the HR department. Thus,
IHRM aspects can be summarized with the help of the Hofstede cultural dimensions. The
cultural dimensions and resulting HRM practices can be portrayed with respect to the Chinese
economic conditions.
Cultural Dimension Association with IHRM practices and Microsoft
organizational behaviour
High Power Distance Recruiting of the candidate with required skills at
higher positions, decisions delegated upwards
High Individualism Appraising of an individual through pay
A competitive approach to setting goals
Lower Individualism Teamwork is recognized and encouraged
Group achievement through Reward based system
Collectivism Recruitment of loyal people and preference to
group performance than individually
Uncertainty Avoidance Lack of flexibility with Chinese language and clearly
defined roles are preferred
Masculinity Hard Measurement systems provide financial
rewards based on the performance of employees
Short-term Orientation Respect towards tradition and introducing change
Social obligations to provide rules and regulations
protecting from the truth and giving unpleasant
information.
Table 1: Hofstede’s Dimensions
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Source: Hofstede, 2017
One of the advantages of the development of the cultural differences by the overseas such as
the Chinese is that adaptation by expatriates are found be easier than other countries.
Consequently, it has been suggested that Microsoft must use preparation location and testing
ground to assess adaptation and suitability of expatriation.
Cultural shock is the result of the poor performance level of the expatriates at the workplace.
This can relate to the change in the workplace environment. The employees may take time to
drive to settle in new environment slowly (Hofstede, 2017). Thus, it results in the generation of
issues associated with their families. Therefore, for this reason, Hofstede has provided an
illustration of the High Power Distance prospects in the model. It illustrates the amount of
respect that is supposedly needed to show to their elders and maintaining the hierarchies are
however reflected. The degree of practice is associated are from both sides. For example- it
motivates the team members of Microsoft in order to handle the significant barriers to
communication in the multicultural project. Thus, the impact of the diverse value approaches
on motivation and training aspects of the management at international level. It has an impact
on the attitudes towards the use of the technology, reinforcement, amount of practice and
level of interaction with others. The cultural barriers may occur due to the some of the factors
like time differences, socio-economic, language barriers, political and religious diversity towards
normative pattern permissible pattern.
The main reason for sending the employees overseas is to supervise and control the working
subsidiaries. Microsoft involves the local environment people to benefit the firm. It also impacts
on the firm's reputation and relations with locals. Microsoft has expanded its business across
the country (Rallapalli and Montgomery, 2015). The robust partner ecosystem with innovative
technologies and solutions has supported them to promote their products and generating an
open computing environment.
Microsoft is committed to their customers belonging to China in terms of social responsibilities
like- supporting customers at the enterprise, provincial, city and national levels. The expatriate
adjustment is a matter of fact that depends on three dimensions. They are- general psychology,
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adjustment to the work situations and interacting with host nationals. Thus, it can help in
providing the ways that affect organizational performance due to the difficulties arising in living
and working in different cultures (Morschett, et al. 2015).
International human resource management has become one of the most complex issues in the
competitive world. Henceforth, it is necessary to appraise the employees time-to-time. This can
be attained through providing incentives to the base pay. For example- Employees can be
offered salary on the basis of a number of hours they worked beyond their consistent payment.
The rewards and compensation that can be offered to the individual expatriates are- incentive
plans, group incentives, Service awards and recognition awards (Rowlands and Iles, 2017).
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CONCLUSION
At Microsoft, the HR functions to include different strategies in order to provide a long-term
success to the organization. They are also responsible for managing employee retention and
future possibilities of the work. The current practices of managing the business overseas are
identified by the gaining the knowledge of the market. The HR functions to achieve the
objectives of the organization. Microsoft also follows on different theories, strategies and
rewards and compensation systems in order to maintain their competitiveness in the global
market. Among them, the hygiene factor theory helps in motivating the staff. Event the non-
financial factors and financial factors creases the rewarding challenges to enhance the
performance of the individual which ultimately reflects the performance and cultural practices
of the organization. The SIHRM theory provides an interface to the international functioning of
the organization through offering services and goods to customers. The impact of Hofsteade
Model has been evaluated in order to identify the issues and consequences of cultural
differences in the international markets.
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REFERENCES
Dickmann, M., Brewster, C. and Sparrow, P. eds., 2016. International Human Resource
Management: Contemporary HR Issues in Europe. Routledge.
Hofstede, G., 2017. Cultural Dimensions: Country comparison.
Horwitz, F.M., 2016. Book Review: Mohan Thite, Adrian Wilkinson and Pawan Budhwar (Eds),
Emerging Indian Multinationals: Strategic Players in a Multipolar World.
Minbaeva, D., 2015. IHRM's Role in Knowledge Management in Multinational Corporations. In
Routledge Companion To International Human Resource Management (pp. 457-468).
Routledge.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. International Human Resource
Management. In Strategic International Management (pp. 505-528). Springer Gabler,
Wiesbaden.
Rallapalli, K.C. and Montgomery, C.D., 2015. Marketing strategies for Asian-Americans:
guidelines based on Hofstede's Cultural Dimensions. In Minority marketing: Research
perspectives for the 1990s (pp. 73-77). Springer, Cham.
Rowlands, K.E. and Iles, P., 2017. MANAGING IN A GLOBAL CONTEXT. Strategic Human Resource
Management: An International Perspective, p.466.
Santos, R.P.D., 2016. New trends on expatriation and challenges for IHRM: a state of the art
(Doctoral dissertation, Instituto Superior de Economia e Gestão).
Sekiguchi, T., Froese, F.J. and Iguchi, C., 2016. International human resource management of
Japanese multinational corporations: Challenges and future directions. Asian Business &
Management, 15(2), pp.83-109.
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Yang, I., 2015. Cross-cultural perceptions of clan control in Korean multinational companies: a
conceptual investigation of employees' fairness monitoring based on cultural values. The
International Journal of Human Resource Management, 26(8), pp.1076-1097.
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