Preview

Microsoft's Employee Motivation Philosophies Of Microsoft

Powerful Essays
Open Document
Open Document
1690 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Microsoft's Employee Motivation Philosophies Of Microsoft
1. Introduction
There are many things that are key to the success of a business. Having motivated employees is one of them. Therefore it’s very important for a company to have a good understanding of what truly motivates an employee. A business also needs to know how to correctly act on this understanding to make sure that they can motivate their employees to deliver better work, to stay with the company for a long time and many other purposes.
The aim of this report is to examine the options a company has to motivate it’s employees. The author will take the model used by Microsoft in the 1980’s as a vantage point to further delve into the many facets of employee motivation. What was the philosophy behind Microsoft’s motivation strategy and is it a model that can be considered effective? Furthermore the author will try to find different philosophies on employee motivation in the hope of gaining a better understanding of the subject in general.

2. Microsoft’s 1980’s Employee Motivation Philosophies
In the 1980’s Microsoft utilised its own brand of employee motivation. This approach was considered very effective by some: ‘In its local area, Microsoft is known as "The Velvet Sweatshop,’’ which suggests that, if anything, Microsoft might be doing too good a job of motivating its employees’
…show more content…
When Bill Gates wanted to make Microsoft go public in 1986, this also factored into his decision. He had been selling stock options to attract top developers and managers but also used it as a ways of retaining important employees. He even deliberated with some important employees about going public before making his final decision (Uttal, 1986). This shows that this method was used both for attracting new employees as well as keeping current

You May Also Find These Documents Helpful

  • Better Essays

    In business world, motivation for employees in an organization is one of the facts of how effectively and efficiently tasks are accomplished. Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a goal (Robbins and Judge, 2006). Every individual is different with different personality and background and it is very important for the management to understand what can motivate and satisfy each individual in the organization that can help their performance boost into a cohesive and effective workforce. Different kind and level of motivation can influence work performance and result in job satisfaction in their organization; it is commonly believed that the most satisfaction is directly tied to the money that the employees are receiving. Promotion is another big motivation for the employees which are also related to money. Other than money reward or promotion, Quast (2012) recommends five tips to management for motivating employees.…

    • 1446 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Motivation is the interior and exterior elements that arouse aspiration and drive in an individual to remain constantly involved as well as dedicated to a job, role or subject, or to create a determination to achieve an objective (Business Dictionary, 2013). The focal key concern of a business ought to be its people. They remain the individuals who support the operation and the idea of the business along with keeping the organization running. This research paper will offer a proposal of a business motivation plan, pinpoint dual approaches that motivate workers and recommend three means to motivate the lowest salary employee. In addition, this report will scrutinize the significance of ones work effort and lastly offer a scheme for ones work to a team diagram.…

    • 1204 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Hcs 325

    • 1342 Words
    • 6 Pages

    According to The San Diego Business Journal motivating employees is the key issue for most managers; job discussions and training focus their managers on how to motivate their employees. With the proper motivation of their employees a much higher level of performance and productivity will occur, however, not every employee responds to the same motivation every individual responds differently to certain motivational techniques. In this assignment will be looking at different motivational techniques and approaches, the main question that a company whether it be large or small has is on how they motivate their employees, how does a particular technique work, and when to apply a certain technique and most certainly who they should apply this to? Motivation will increase innovation and productivity in a workplace. Motivation has a huge influence on productivity, every leader, manager, or supervisor must understand what particular motivational techniques to use on each employee in order to capitalize on the best performance of each and every employee. Each individual has his or her own set of values that life has given them; it is these values that a person has that will make them act differently in a particular motivational technique.…

    • 1342 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Texas Roadhouse

    • 1140 Words
    • 5 Pages

    Employee motivation is very important in the workplace. It is the driving force for organizations to build a foundation between the employer and employee. Many companies understand the importance of employee motivation. Motivation is critical to the outcome of employee performance. It is a tool that is used to help employers and employees have a great work environment. Texas Roadhouse is an organization that has implemented the importance of employee motivation Noe et al’s (2011). By implementing different employee motivation methods they have come to realize that happy employees produce great job performance Noe et al’s (2011).…

    • 1140 Words
    • 5 Pages
    Better Essays
  • Good Essays

    A business thrives when it is able to retain workers, maximize productivity and increase revenue. Accomplishing these tasks are never easy but with motivated workers the probability of a business succeeding is enhanced. The question is, “How does a company get the most out of its employees?” People are governed by extrinsic and intrinsic motivations (Unit 5).…

    • 819 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Numerous theories on the subject of employee motivation have been developed and published for the better part of this century. While early employers thought of their workers as just another input into the production of goods and services (Lindner, 1998), employees were becoming increasingly dissatisfied with working conditions and malevolent management. As post-war, labor tensions mounted in the 1920s, employers needed to change their approach to employee relations if they were to avoid costly, and sometimes violent, labor strikes. Early motivational theories set the foundation for the development of 20th century concepts, including the move to get “Googled” and motivational techniques based on business strengths found in the corporate toolbox.…

    • 1764 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    According to Bill Gates Microsoft’s competitive advantage is the ability to attract, motivate and retain superior people. In the early days of Microsoft this was true because their employees consisted of top students who were highly motivated and had a clear vision. Their goal was “to put a computer on every desk and every computer running on Microsoft software”[2]. As stated in the case; one of the ex-employees felt he was literally changing the world. This emphasises on the fact that Microsoft has the ability to attract highly motivated…

    • 2902 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    Motivation at Microsoft was stimulated by a good performance evaluation procedure inside the company. Highly elaborated feedback gave its employees a good overview of their performance. Furthermore, Microsoft was among the most highly desired companies to work for. People at Microsoft always had the feeling their contribution could change the world…

    • 2993 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Team Work and Motivation

    • 1227 Words
    • 5 Pages

    Motivational Processes of attracting and retaining employees are major factors in today’s businesses. Motivation is an important part of this. There are four basic elements of motivation – One, meeting basic human needs, Two, Designing jobs that motivate individuals, a third is enhancing the belief that desired rewards can be achieved and fourth, treating individuals equitably. Motivation is the force within a person or acted upon a person that cause that person to behave in a specific, goal-directed manner. Motivation is not the same as performance and is different for everyone. To improve motivation, organizations need to attract and encourage employees to remain with them, allow individuals to perform their tasks, and stimulate individuals to go beyond routine. Motivation affects performance. Individuals need to be motivated to complete a task or do a job. They must also have the ability to do that job. Ability can be their natural talents or learned skills. Both ability and motivation affect performance.…

    • 1227 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    The organization is experiencing a tough time, confronting with both the outside pressure of economic downturn and the inside problem of low motivation level. To fight this hard time, it is important to explore applicable and effective methods to motivate employees within the organization. This essay aims to take the view of the leader of this organization to discuss the reasons that cause this demotivation and how to motivate the organization’s staff applying motivational theories. (This essay assumes that the organization is unable to provide its workers with monetary motivators, hence only non-financial motivation approaches are examined.)…

    • 2326 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Motivating the people who are working under management can be a difficult task at times. Everyone is unique, none of us are the exact same and each person needs something different to become motivated and that is where the challenge comes in for the managers, finding the right motivator for the right employee. Knowing and caring about the employees needs, will help managers know what type of rewards to offer as a way to motivate their employees.…

    • 1070 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Microsoft has been a highly influential and instrumental organization of change during our lifetime. At times we praise these innovations, and at times we’ve cursed it. The Government has tried to control it. Organizations have tried to imitate it. By no means has this company had an easy time. Organizational growth goes through stages, each culminating in a crisis stage which must be overcome in order to continue growth. Let’s evaluate how Microsoft met these challenges.…

    • 743 Words
    • 3 Pages
    Good Essays
  • Better Essays

    McConnell, S. (1996, September/October). Microsoft: A Highly Motivated Environment. Retrieved April 27, 2008, from http://stevemcconnell.com…

    • 2466 Words
    • 10 Pages
    Better Essays
  • Good Essays

    As a company composed of 'paper millionaires,' Microsoft is in a unique position - while many Microsoft employees may be labeled 'professional' employees, the company's financial position will play a special interest to many of its employees. As Microsoft stock-holders, the average Microsoft millionaire (the so called paper millionaire') has a vested interest in helping the company succeed and advance its financial position. This is true because the stockholder will directly correlate the amount of money they earn with the perceived worth to the organization. Driven by the idea that their financial success or failures are directly related to the performance (as well as public image) of the company, these employees will work with great vigor to maintain the success of their company. Until their financial position no longer depends on the company's stock performance - that is, until theses employees sell their stock and secure their fortunes - the Microsoft millionaires will likely view themselves as masters of their own destiny. Hard work, they are likely to reason, will translate into better…

    • 653 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    School Days Project

    • 2495 Words
    • 10 Pages

    Employee Motivation: A Powerful New Model: by Nitin Nohria, Boris Groysberg, and Linda-Eling Lee July 2008 Havard Business Review…

    • 2495 Words
    • 10 Pages
    Powerful Essays