This case study examines the employee motivation and retention strategies of the US-based company, Microsoft Corporation. Since its inception, Microsoft was appreciated for its employee-friendly Human Resource (HR) practices. However, during the late 1990s, as the company started to grow 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. She announced a plan named `myMicrosoft', which included developing appropriate systems to enhance communication between the employees and the HR department. She also made changes in the company's performance review system, introduced several new employee benefits, and designed new workplaces in an effort to attract and retain employees.

On May 18, 2006, Microsoft Corporation (Microsoft), the US-based multinational computer technology corporation, announced a plan to significantly revamp some of its Human Resource (HR) management practices. The plan named `myMicrosoft,' was aimed at addressing employees' concerns and at boosting their morale. According to the plan, the company intended to change its performance review system, increase allotment of stock options, introduce new employee benefits, etc. Commenting on the plan, Lisa Brummel (Brummel), Senior Vice-President, Human Resource, Microsoft, said, "[myMicrosoft] will help us continue to attract, develop, and retain great people, drive success, and stay competitive."

Since its inception, Microsoft had been considered to be a `great place to work for.' Because of its work culture, generous compensation, and benefit programs, the company was able to attract and retain the best talent. However, as the company grew rapidly in size, it lost the popular elements of its work culture, according to HR experts. In addition, several racial discrimination lawsuits and antitrust proceedings had affected the company's image severely and reportedly demotivated employees. In the early 2000s, in an effort to improve its profit margins, Microsoft had to cut several employee benefits. These cost-cutting measures further demotivated the employees. Considering the low morale of the employees during that period, Microsoft's senior management felt the need to change some of its HR management practices at the company.

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