The organization’s strategy of responding quickly to the changing environment plus a constant growth strategy of acquiring and taking over has caused a lack of coordination amongst the departments of the organization. This has led to projects going redundant and the organization eventually faced a loss. The compensation at Microsoft has been really good and stock options have been amazing due to the high price of the stock but recently the stock market dropped so the organization announced compensation increments for the first time.
The major problem at Microsoft is being overworked and under stress plus a research carried out during 2003 shows 44% employees inUSAhave preferred to quit their jobs due to a lot of work and stress. This is what has happened to Microsoft because compensation and the recruitment process are not the reasons although a few employees did suggest the company should have a stress test in the recruitment process to make sure the employee is ready for the stress that is considered normal in the organization. Therefore, recruitment still has a major part to play in reducing turnover because the right fit for the job will not leave the organization but of course the impact differs in situations and industries.
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