Microsoft Compensation Program
Microsoft Corporation is an American mulitnational computer technology corporation with 76,000 employees in 102 countries and global annual revenue of US $51.12 billion as of 2007 Microsoft develops, manufactures, licenses and supports a wide range of software products for computing devices.
With more than 4,000 of its 27,000 employees already millionaires, Microsoft faces the challenge of figuring out how to motivating its employees though means other than pay raises. While this problem is not unique to Microsoft, the circumstances under which this problem evolved however are. As a company that must caters to the needs of the 'professional' worker, Microsoft's motivational strategy should center on recognition of individual employee achievements, the work itself, responsibility, growth, and other characteristics that people find intrinsically rewarding. By simple virtue of its position as a high-tech company - where highly trained, highly skilled 'professional' workers account for the vast majority of its employees - under normal circumstances money factors would play only limited role in actually motivating employees.
Although money plays an important role in motivating job performance, but money has its limitations as a motivator, especially in the world of the 'professional' worker. In the work of management theorist Frederick Herzberg, a fair salary is considered a "hygiene" factor - something people need as an incentive to do the jobs they are hired to do. Hygiene factors include adequate workspace, light and heat, and the necessary tools such as a computer or telephone. Without any of these items, employees will be demotivated and unable to do their jobs. Having all of these items, however, will enable employees to do their jobs but will do nothing to help them do the best job possible. Getting people to do their best work is more a function of what Herzberg call "motivators." These include praise and recognition, challenging work, and...
View Full Essay