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A b s t r a c t :

The case examines the employee motivation and retention strategies of the US based Microsoft Corporation (Microsoft). Since its inception, Microsoft was appreciated for its employee-friendly HR practices. However, during the late 1990s, as the company was growing rapidly in size, it lost the popular elements of its work culture. Moreover, several racial discrimination lawsuits and antitrust proceedings affected the company's corporate image and financial performance adversely. In the early 2000s, in order to improve its profit margins, Microsoft started cutting several employee benefits, which demotivated its employees. To boost the employee morale, in 2006, Steve Ballmer, the then CEO of Microsoft, appointed Lisa Brummel as the Senior Vice-president of HR.

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taking charge, Brummel announced a plan to significantly revamp some of the existing HR management practices at

After

the company. She announced a plan named 'myMicrosoft,' which included developing appropriate systems to enhance communication between the employees and the HR department, making changes in the company's performance review system, introducing several new employee benefits, and designing new workplaces in an effort to attract and retain employees. The case analyzes in detail the HR initiatives taken by Brummel. It ends with a discussion on the benefits realized from the initiatives implemented by her. Change management processResearch-based, holistic model for managing the people side of change www.changemanagement.com

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