Reference no: EM131502270

Subject: Organisation Behaviour

Topic Motivational theories and Motivation in the workplace

Microsoft: A whole hand on the brand

Microsoft MD Pfungwa Nandi uses an African saying to explain the importance of motivating staff. "The thumb is useless without the fingers to make it strong." Pfungwa explains: "The business is not driven by me or the brand. It's the employees, the people behind the brand."

He has been in the job only a few weeks, since former MD Gordon Frazer was sent to the UK to run Microsoft's business there. The company has also been without a human resources director for some months, since Astrid Warren went overseas too. Her successor is due to take over in a few days.

Despite these changes, Microsoft has retained its record of never finishing out of the top three in Best Company To Work For. Since entering for the first time in 2003, it has been third, first, second, and in 2008 second again. As with so many SA industries, there is a skills shortage in IT, and competition among companies for the available talent is fierce. So Microsoft is looking to the future. "There may not be skills now but there is plenty of talent and potential," says Pfungwa. "We can't afford, as some do, to wait for disaster to be upon us before we tackle it. Our approach is to build a pipeline for the future." That means identifying talent and offering skills development programmes - some by Microsoft alone and some in conjunction with the industry.

But while it waits for that pipeline to fill, Microsoft must make itself an employer of choice now. As a global leader in its field, it must attract the best people. So the company offers what it calls The Deal. That means a pleasant environment in which to work, wellness programmes, mentorship, counselling, development opportunities, the possibility of overseas travel, and fleXible hours. Oh yes, and a salary and incentives too. "Money isn't everything," says Pfungwa. "It's important but only part of why people want to work somewhere. We don't employ people for a job but for an experience. We give them an opportunity to grow." In return, Microsoft expects its people to be innovative and different, and to work as a team. They must thrive on challenges. Microsoft may be a global giant but it is under constant attack from competitors in an environment where technology changes at a breath-taking rate.

How does Microsoft achieve such a high level of motivation? It's simple. Microsoft explicitly focuses on morale. Each group at Microsoft has a morale budget that can be used for anything the group wants to use it for. Some groups buy movie-theatre style popcorn poppers. Some groups go skiing or go bowling or have a cookout. Some groups make T-shirts. Some groups rent a whole movie theatre for a private screening of their favourite movie. As 'professional' workers Microsoft's employees have, for the most part, meet their hygienic needs. Microsoft employees are largely skilled workers who derive satisfaction from their work itself. Such workers possess a strong sense of commitment to not only their field of expertise but also to their employer as well. As such, Microsoft's employees will want to identify with the success of their profession and their organization. Since professionals often enjoy the challenge of problem solving, some of the rewards of their job will likely come from the work itself. This implies that managers provide professionals with new assignments and challenging projects.

Managers also give the professional autonomy to employees to follow their interests and allow them to structure their work in ways they find productive. Professionals are rewarded with recognition and educational opportunities that allow them to keep current in their fields. Recognition boosts employees' esteem and performance. Recognition, on the other hand, is what you do above and beyond what people are paid to get the best effort from employees. Compensation is a right, but recognition; however, it is a gift which validates the importance of their work reiterates Pfungwa.

Pfungwa wants staff to be aware of what is going on around them. "A lot of people in IT, when they developed something, would say this is cool, but not understand its place in the broader scheme of things. You can be good at what you do but if you look at it in isolation you won't make a difference." He returns often to the idea that though it is his job to steer Microsoft in SA, it is the employees Who drive it. "An employer should never think that it is his company. Don't even think of strategies and action plans without participation from the workforce."

QUESTION 1: Using motivational theories critically discuss the steps taken by Microsoft to motivate employees and its expectations from employees in return? Any suggestions for improvement?

QUESTION 2: Consider the application of McClelland's Learned Needs Theory and the Expectancy Theory to motivate IT staff. Also, indicate the expected outcomes and the overall implications to management?

QUESTION 3: "Money isn't everything," says Serima. "It's important but only part of why people want to work somewhere. We don't employ people for a job but for an experience. We give them an opportunity to grow."

Critically discuss the relationship between pay and motivation. Utilise different motivation theories to substantiate your discussion?

QUESTION 4: "Microsoft may be a global giant but it is under constant attack from competitors in an environment where technology changes at a breath taking rate. Serima wants staff to be aware of what is going on around them."

Referring to the above statement, discuss the influence different management environments may have on Microsoft?