When Bill Gate started the Microsoft organization 3 decades ago, he did not envision the significant growth and prosperity that would take place in the organization. As a result, Gates founded his organization on basic principles of organizational development and human resource management that he saw as critical for the overall success of his corporation. While Gates' efforts to create an innovative and creative organization have indeed had an impact on the overall development of Microsoft, the reality is that the organization has reached a growth rate that simply cannot be sustained through the human resource and human capital practices that were used in the early days of the organization. At the present time, the Microsoft organization is reaching an apex in its development. As such, the organization needs to consider the development and implementation of new human resource practices that can support the increased number of employees in the organization and protect the innovative culture that Gates has long sought to retain.
[...] Many of the specific human resource measures that have been put in place in recent years appear to be nothing more than stop-gap measures intended to address one problem at a time. Even though the organization appears to have been somewhat successful with this process, the problems with culture and human capital in the organization will only continue to exacerbate as the organization grows and develops. If is for these reasons that the organization needs to consider the development of a unifying human resources plan that will enable managers and leaders in the organization to garner more control over the development of employees in the organization. [...]
[...] Recommendations When the basic context of the current problems facing human resource management at Microsoft are analyzed and synthesized, it seems evident that the problems that have developed in recent years stem from a lack of a cohesive human resource management program in the organization. In the early years of Microsoft's development, Gates began without a formal human resource structure or plan in place. Although some dimensions of human resource management have since been applied, the end result for the organization has been the development of a fragmented system of human resource management that is not effectively aligned to the business goals of the organization. [...]
[...] This appears to be what has occurred in the context of the Microsoft organization. Although Bill Gates has been quite successful at building the organization from the ground up, now that the organization has reached a critical stage in its lifecycle, the human resource structures and culture that have been developed in the organization are not viable for sustaining the organization overall. As such, changes are clearly needed to ensure the success of the organization over its lifecycle of development. [...]
[...] Critical Issues for Organizational Development Examining some of the most notable problems that have developed with respect to Microsoft's ability to effectively manage its work force, it becomes evident that the sheer size of the organization has made it much more difficult for Bill Gates to remove levels of bureaucracy in the organization and maintain a firm hand on the activities that take place overall. At the present time, the Microsoft organization employs more than 20,000 individuals. In the beginning the organization employed 4 engineers; each of which worked directly with Bill Gates. [...]
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