Critically Assess The Hr Similarities Commerce Essay

Organization reflects the values and norms of society provision merchandises and services that meets the demands of the civilization in which they function.

( Kim & A ; Schneider, 2009 ) For effectual distribution of resources organisations display a grade of Specialization, Centralization and Hierarchy.

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Specialization – the division of work between individuals/ section.

Centralization – the topographic point where the determinations are taken for processs such as choice, development and public presentation measuring.

Hierarchy – the construction by which single duty and authorization is classified.

Harmonizing to Price ( 2007, p. 212 ) civilization is a combination/mixture of beliefs and values of different persons in a group/ community.

In an organisation, employees are deployed in an effectual manner so that the work gets done. Culture for these employees can be classified largely into three classs:

Culture of beginning

Culture within which are presently working

Corporate civilization of the organisation.

In 2004 Microsoft launched a community site for developers and users, titledA Channel 9 ; it provides aA wikiA and an Internet forum. It is a community site that provides dailyA videocasts and other services ( Microsoft channel 9, 2004 ) .

In Microsoft, a major accent is put on organisational construction, civilization and HR direction patterns.

Compensation and benefits were among the best in the industry.

Recruitment and choice procedure offered professional preparation every bit good as accomplishment oriented plans to promote work-life balance.

Due to work civilization, generous compensation and benefit plans, Microsoft was able to pull and retain the best endowment and besides promoted corporate diverseness.

Some of the employee benefits included purchasing Microsoft ‘s stocks for a discounted monetary value, free health care services for single and eligible dependents, corporate preparation classs and skill development plans to heighten the accomplishments. The employees besides went through a public presentation reappraisal each twelvemonth, and depending upon the reappraisal they were given inducements, wage hikings, stock options and publicities.

Microsoft besides provided price reductions on merchandises and services including computing machine and electronics, place and garden accoutrements, eating house, travel and kid attention services. It besides provided legal aid as portion of its “ Group Legal Plan ” which offered reding services to employees for instances refering to existent estate, acceptance, bankruptcy, divorce, etc

Microsoft ‘s corporate civilization was characterized by its strong work ethic, insouciant work civilization, disputing work environment, civilization of hazard pickings and encouraging of invention.

Employees dressed casually in the workplace, cabin doors were opened ever for the new employee or in-between degree executives. Besides, encouragement was given to employees to straight direct functionary mails to their senior executives.

Microsoft ‘s corporate civilizations are based on six nucleus values:

Integrity and Honesty

Openness and regard

Willingness to take on large challenges

Passion for clients, spouses and engineering

Accountability for committednesss

Personal excellence and ego betterment

( Richard Daft, 2011 ) As of 2010, A MicrosoftA has a divisional organisation, each division, or merchandise group, focuses on a specific line of goods and services. Each group has its ain research and development, gross revenues and client service staff. Daft says although this type of organisation is more expensive, it allows the groups to better function their clients. Each merchandise group has one executive in charge who reports straight to the company ‘s president.

In ICRC ( International Committee of the Red Cross ) , callings evolved informally through interpersonal webs and were driven by chances. Most of the recruits stayed in the organisation for 2-3 old ages, so non much attempt was put into development of direction.

In 2007 – 2010, the new strategic program made clear the challenges of HR direction set uping three chief precedences:

Multidisciplinary action

Greater answerability

Increased efficiency through consequence based direction

It besides made clear the function of central offices ( HQ ) which should be centralized or decentralized, policies and processs which needed to be standardized to accomplish efficiency and coherency across operations while guaranting the flexibleness needed to react competently in a competent and capable mode.

The ICRC civilization was critical to continuing its mission of impersonal independent human-centered action – NIHA. This civilization overrode any concerns associating to turning diverseness. ICRC starts in the field to place local demands and so begins with a bottom-to-up attack in the hierarchy.

Harmonizing to Forsythe ( 2005 ) “ Performance is non about net income but about endurance and unity of persons and group of people. ”

The organisational construction of the ICRC is non good understood because of its organisational secretiveness. The construction itself is adequate changeable and has been prone to alterations. The Assembly and Presidency are two stable establishments, but the Assembly Council and Directorate were created merely in the latter portion of the 20th century. Decisions are frequently made in a corporate manner, so authorization and power relationships are non set permanent.

The Directorate is the executive organic structure of the Committee attends the day-to-day direction of the ICRC. The Directorate consists of a Director-General and five managers in the countries of “ Operations ” , “ Human Resources ” , “ Fiscal Resources and Logistics “ , “ Communication and Information Management ” , and “ International Law and Cooperation within the Movement ” . The members of the Directorate are appointed by the Assembly to function for four old ages. The Director-General has assumed more personal duty in recent old ages, much like a Chief executive officer, where he was once more of a first among peers at the Directorate.

The Red Cross reflects the Swiss values such as liberty, classless and consensus seeking. The ICRC achieves its mission through three chief field activities Protection, Assistance and Prevention.

Q2. Critically evaluate the dependability and cogency of HR practices/ methods being used

Assessment methods including personality questionnaires, ability appraisals, interviews, or any other appraisal method are valid to the extent that the appraisal method measures what it was designed to measure.A

Dependability is defined as the extent to which a questionnaire, trial, observation or any measurement process produces the same consequences on perennial tests. In short, it is the stableness or consistence of tonss over clip. Keeping in head that dependability pertains to tonss non people. Therefore, in research we would ne’er state that person was dependable. As an illustration, see Judgess in a platform plunging competition. The extent to which they agree on the tonss for each contestant is an indicant of dependability. Similarly, the grade to which an person ‘s responses ( i.e. , their tonss ) on a study would remain the same over clip is besides a mark of dependability.

Cogency is the fluctuation between what a trial measures by and large and what it is fundamentally supposed to mensurate.

This fluctuation occurs when:

TheA design is deficient for the intended intent, andA

The trial isA usedA in a context or manner which was non intended in the design.

For illustration, a trial that is used to screen appliers for a occupation is valid if its tonss are straight related to future occupation public presentation. There are many different types of cogency, including: content cogency, face cogency, criterion-related cogency ( or prognostic cogency ) , concept cogency, factorial cogency, coincident cogency, convergent cogency and divergent cogency ( Allen, 1979 ) .

Contented Validity pertains to the grade to which the instrument to the full assesses or measures the concept of involvement. For illustration, say we are interested in measuring employees ‘ attitudes toward a preparation plan within an organisation. We would desire to guarantee that our inquiries to the full represent the sphere of attitudes toward the preparation plan.

Face Validity is a constituent of content cogency and is established when an single reexamining the instrument concludes that it measures the feature or trait of involvement. For case, if a quiz in this category comprised points that asked inquiries refering to research methods you would most likely conclude that it was face valid. In short, it looks as if it is so mensurating what it is designed to mensurate.

Criterion-related Validity is assessed when one is interested in finding the relationship of tonss on a trial to a specific standard. An illustration is that tonss on an admittances trial for graduate school should be related to relevant standards such as grade point norm or completion of the plan. Conversely, an instrument that measured your chapeau size would most assuredly demonstrate really hapless criterion-related cogency with regard to success in graduate school

Construct Validity is the grade to which an instrument measures the trait or theoretical concept that it is intended to mensurate. For illustration, if one were to develop an instrument to mensurate intelligence that does so step IQ, so this trial is constructed valid. Construct cogency is really much an on-going procedure as one refines a theory, if necessary, in order to do anticipations about trial tonss in assorted scenes and state of affairss.

Dependability is necessary but non sufficient for cogency. That is, for something to be valid it must be dependable but it must besides mensurate what it is intended to mensurate ( Nunnally & A ; Bernstein, 1994 ) .

Harmonizing to Alfred ( 1929, p. 259 ) psychological trials fall into 2 chief classs:

Accomplishment and aptitude trials and

Intelligence trial or Intelligence quotient trials

Accomplishment and aptitude trials are normally seen in educational or employment sectors. These trials attempt to mensurate how much a individual knows about a peculiar subject ( e.g. accomplishing cognition in mathematics or grammar ) or how much ability it takes to get the hang a stuff in a certain country ( e.g. about mechanical relationships ) .

Intelligence or IQ trials attempt to mensurate the basic apprehension of the universe around, absorbing it ‘s functioning, and using this cognition to heighten the quality of an person ‘s life.

It enables the person to gain by mistake without being slaughtered by it. Intelligence, hence, is a step of a possible, non a step of what you have learned and so it is supposed to be independent of civilization.

Q3. Advise both companies as to how they may profit by following competence and diverseness based employee resourcing policies and patterns.

Competence Based Employee Resourcing:

Competences: “ The behavior and proficient abilities that persons must hold, or must get, to efficaciously execute work ” ( CIPD 2012 )

Competence based Resourcing ( CBR ) : Resourcing/recruiting on the footing of each person ‘s competences. The chief function of an administration ‘s CBR is to pull off employees all the manner from “ hire to fire/ retire ”

However, this type of resourcing is common to many companies worldwide but what has been bit by bit become the important point is how these companies apply these CBR attack across assorted HR activities ( See Exhibit 1 )

Microsoft Corporation: One of the cardinal advantages of Microsoft has been the quality of employees. The house adopts extraordinary steps to enroll it`s staff that possess strong accomplishments, cognition and minds. It ever strives to happen smart persons who know the engineering and the company ( Davenport. T, 1997 ) They need highly top degree competences due to fast turning engineering and rivals. Several other IT companies have ever been strong rivals for Microsoft since get downing. The strategic planning and organizing aided Microsoft to stay as the “ Highly successful planetary package house ” ( Davenport. T, 1997 ) It has believed in efficient staff right from the start to guarantee its stableness. Now, the company uses a undertaking called Skills Planning “ und ” Development ( termed as “ SPuD ” ) led by Susan Convey, Program Manager at Microsoft. SPuD is focussed on competences required and acquired to remain on a taking border of workplace. The SPuD ‘s enterprise is supported by another group called “ Learning and communicating resources ” ( LCR ) which manages the preparation and development of IT staff

Concepts to the SPuD undertaking:

– Building the construction of competence types and degrees

– Determining competences required for peculiar occupations

– Rating public presentation of staff in their undertakings depending on competences

– Implementing cognition competences in an on-line portal

– Linking of theoretical account towards larning offerings ( Davenport. T, 1997 )

The ultimate aim of this theoretical account is non merely to prove it but to reassign and construct cognition of the staff. Therefore, when employees are cognizant of what competences are expected from them, so their involvement in educational offerings within Microsoft and exterior is boosted. ( Davenport. T, 1997 )

The International Committee of the Red Cross ( ICRC ) : A impersonal, independent administration back uping human-centered protection and aid for victims of war and internal force based in 80 states and active since 1863. ( Geneva Business News 2009 )

Bing a human-centered administration, ICRC concentrates more on personal qualities and/or “ soft accomplishments ” while enrolling staff. It focuses on qualities like motive, attitude, stress direction and leading abilities. Skills like squad work, version, negociating and analyzing etc. As competences here are more of personal qualities instead than proficient, their ways of rating, choice, developing & A ; development varies.

During early phases, ICRC recruited Gallic speech production Swiss grade holders in their early 20`s whose grade was fundamentally in political science/law/economics. The new recruits are in late 20`s talking more linguistic communications and possess a specialized grade. ( Kim & A ; Schneider, 2009 )

Harmonizing to me, Not much CBR found during ICRC`s initial phases but this bit by bit changed along with planetary enlargement and international spouses. Now ICRC follows an effectual CBR due to increasing demands and is benefitted in assorted standards like guaranting appropriate staff at appropriate clip and location, obtaining international support, making new chances and promoting new people to fall in.

Diversity Based Employee Resourcing:

Diverseness: Similarities and differences among employees in footings of many diverseness dimensions like age, cultural background, ethnicity, race, faith, income, matrimonial and parental position, physical abilities, experience and making, sex, and sexual orientation ( Foot hill-De Anza Community College District, 2004 )

Equality: It is that the people must be treated every bit irrespective of the above dimensions.

Diverseness additions importance when it is utilized as a beginning of success.

Microsoft Corporation: Microsoft has ever been advancing and incorporating planetary diverseness across all degrees within the administration.

“ Microsoft strives to understand value and integrate differences each employee brings to the company so that it can construct the greatest multicultural workplace in engineering and reflect the turning diverseness and inclusion of its communities and the planetary market place. “ ( Microsoft Diversity Mission Statement )

“ Microsoft ‘s executives are committed in guaranting that diverseness and inclusion is a portion of their concern, from geting and retaining endowment to functioning clients and developing merchandises. They see diverseness and inclusion as a long-run scheme that will assist in success of the company. ( Microsoft, 2012 )

To guarantee the Global Diversity and Inclusion scheme works, the company has Employee Resource Groups ( ERG ) and Employee Networks ( EN ) . They work jointly guaranting diverse characteristics are included in concern selling, operations and merchandise development countries. Harmonizing to the company`s informations, they comprise of several ERG groups e.g. Asians ERG, Blacks ERG, Disabled ERG, Gay, sapphic, transgender ERG etc.

EN`s are more specific to state such as Africans at Microsoft, Nipponese at Microsoft, Chinese at Microsoft, Singaporeans at Microsoft etc. These groups provided mentoring, networking and community outreach. Microsoft in 2009 was named as one of the 100 Best Companies for working Mothers by Working Mother ( working mother magazine 2009 )

After they get diverse work groups it is really of import to retain them. The differences in workplace have to be dissolved and valued to guarantee everyone ‘s demands are met. Greater the value given to diverse groups, greater could be the end product as the emphasis and favoritism are minimised. Microsoft hosts several events and other plans such as calling interruptions, flexible work agreements, legal aid, medical attention, diverseness instruction etc. to supply its staff a better environment.

Finally harmonizing to me, Microsoft has ever been a great topographic point to work for many people across the universe. The company has strived to promote the new endowment, no affair where they belong from. When the administration adopts an effectual diverseness direction scheme as Microsoft does so there is decidedly a opportunity of taking the planetary market.

The International Committee of the Red Cross ( ICRC ) :

Diverseness has been an issue for ICRC. As a planetary administration, there is ever a great demand of diverseness. In the early 1990 ‘s the exiles were chiefly Swiss. The Headquarters at Geneva even today is composed of really few Non-Swiss staff. However, development of international dealingss has reduced the demand for entirely Swiss exiles. Then ICRC developed a policy of unfastened enlisting. In 2003, 49 % of freshly hired delegates were non Swiss. Among expatriate staff, 52 % are Swiss and 48 % came from 94 other states. ( ICRC, 2004 )

“ Diversity is an plus ; we need to do the most of it as the exigency state of affairss vary in nature and magnitude that pose varied human-centered demands. Therefore, the diverseness of staff improves the flexibleness and the rightness of response. There is no “ one size fits all ” ( Gnaedinger. A 2006 )

Gender: Deputations and top direction forces are male dominated. Though there is major addition in the figure of adult females recruits, higher the hierarchy degree, fewer the adult females. ( Exhibit 4 )

Since late 1980 ‘s, attempts have been go oning to advance gender equality. Depending on the state of affairss, they send females to the field as there are many state of affairss where males are needed during war and other exigencies. However ICRC is now looking into get the better ofing this gender diverseness and look frontward for its aims.

Q4. Compare and contrast the Human Resource challenges confronting these companies covering with planetary and local markets

Human Resource ( HR ) is affected by broad scope of issues due to the fluctuations in the local and planetary market. In the instance survey of Microsoft and International Committee of the Red Cross ( ICRC ) several challenges for HR direction were revealed. However, the research has shown that the HR directors have to run into a series of challenges.

Microsoft Corporation:

At Microsoft, the HR section is made accountable for maximizing the value of their people plus to drive concern success. Employees at Microsoft are recognised as the rational fuel and are provided with an mixture of benefit programs and resources that are designed to retain them. Recent alterations that have happened at Microsoft, sometimes attributed to recession, indicate a move that could alter the manner Microsoft is looked at.

Some of the important challenges faced by Microsoft are given below.

Retrenchment Scheme

Microsoft blamed the “ impairment of planetary economic conditions ” for cuts, which left portions in Microsoft down by 6.4 % in early trading in Ney York. ( The Telegraph, 2009 ) “ Economic activity and IT spend slowed beyond our outlooks in the one-fourth, and we acted rapidly to cut down our cost construction and extenuate its impact, ” said main fiscal officer Chris Liddell, adding that the company expects the hard trading environment to prevail until at least the terminal of June.

In add-on to the staff costs, Microsoft has besides planned to cut down its disbursement elsewhere in the concern. Chief executive Steve Ballmer had besides informed its 91,000 employees in twelvemonth 2009 through letters that the company will cut its travel cost by 20 % , and will cut down disbursals on sellers and what he called “ contingent staff. ” Microsoft adopted this retrenchment scheme during the twelvemonth 2009 and had scaled backed the enlargement of its Puget Sound site in Washington province, and had besides reduced its selling disbursement.

These retrenchment schemes have emerged as a challenge for HR. Cost cutting adopted by the company was non genuinely a redress to the jobs but alternatively it created a low employee morale and motive.

Invest in leading development

Microsoft ‘s success is based on the effectivity of their employees. ( Forbes, 2012 ) “ Whether you believe leaders are born or made, companies still needs to put in their best employees to develop and prolong leading qualities. Real leading preparation involves exposing your best employees to an immersive leading environment. ” It all involves a immense investing and a long-run planning by the HR section to construct a best squad and to put in them to do them better. Investing in leading is a uninterrupted challenge for HR as they have to follow advanced techniques so that their work force is suitably skilled.

Fiscal Loss

For the first clip of all time in its history as a public company, Microsoft has reported a loss per portion. ( Kulbir Bora, 2012 ) “ Microsoft posted a net loss of $ 492 million announced during its fiscal consequences one-fourth stoping June 30, 2012, despite posting record gross of $ 18.06 billion. The Redmond Company confronted the loss due to the write-down it took because of its failed aQuantive acquisition, an advertisement concern Microsoft acquired in an attempt to catch up with Google ‘s ad concern. ”

Fiscal state of affairss like this can direct a bad message out in public and can make a fright and insecurity in the heads of stakeholders. This can make farther challenges for the direction. During these difficult economic times, Microsoft may hold to put off more employees. Situations like this can make more challenge for HR section as they may lose a immense pool of most gifted persons.

The International Committee of the Red Cross ( ICRC )

There are tremendous challenges that HR direction is confronting in ICRC. Most of these challenges differ that from Microsoft. HR policies used by ICRC are no more sustainable in current clime. HR direction in ICRC is non every bit effectual as of Microsoft. HR professionals in ICRC can non disregard these challenges. Senior direction must take some concrete stairss to get the better of these challenges. By making so they will convey values to the organisation and their part will decidedly do difference in the public presentation of HR activities.

HR challenges of ICRC:

clear uping functions and duties

seting in topographic point a result-based direction system

increasing the figure of staff available for rapid deployment

reenforcing the geographical and hierarchal mobility for staff membersA

to supply direction development and calling planning to aline single involvements and competences ( with organisational demands and precedences )

turning diverseness, peculiarly with respect to advancing adult females to exceed direction places

Following are the tough challenges for HR in ICRC.

Developing and Retaining Employees

The ICRC operations success largely depends upon the appropriate usage of HR. The accomplishments required by the ICRC employees are rather different from that of Microsoft employees. There is ever a deficit of qualified workers both in local and planetary market who are ready to work for ICRC. The HR scarceness therefore consequences holds in enrolling suited campaigners. The inclination is to make full some places on the footing of who is available, instead than who is appropriate for the undertaking.

The challenge for ICRC HR direction does non halt merely with enrolling the right people but besides with how they are traveling to mensurate the public presentation of their employees. To make a public presentation civilization is besides a challenge for the HR directors.


Support is a line of life for ICRC. Support has been going a major issue for ICRC as several chief givers States have been hit by the universe economic crisis. ( Annual Report, 2011 ) Fallen support has forced ICRC to cut down its initial field budget for 2011 by 80 million Swiss francs, a decrease of 7.6 per cent from the originally budgeted sum of 1.046 billion francs. These budgetary challenges lead to staff decreases and left HR section under enormous force per unit area, seting its bing manner of working under terrible strain.


The findings clearly highlight the HR challenges faced by both companies in their operations. In Conclusion, it is indispensable that organisations develop their people-based schemes in order to accomplish long-run economic public presentation. Microsoft and Red Cross will confront several challenges of HR in the coming millenary. How good they manage in an progressively planetary and local market will impact how good their organisation does in the market place.


Exhibit 1

Recruitment and choice

Training and development

Career growing

Performance direction

HR planning and organizing

Administrations future ends and aims

( Beginning: CIPD 2012 )

Exhibit 2

Types of competences used in SPuD`s theoretical account:

( Beginning: Davenport. T, 1997 )

Exhibit 3

ICRC forces in 2009:

12,184 staff members in over 80 states

Exiles: 1,453 people

Work force: 56 % ; Women: 44 % A

Over 100 different nationalities

Deputation employees: 9,908 people

823 staff at central offices in Geneva

( Beginning: ICRC, 2010 )

Exhibit 4:

Gender balance at ICRC

Geneva and field: All expatriate staff





45 %

45 %

45 %

Work force

55 %

55 %

55 %

Field: Heads of office, caputs of sub deputation, caputs of deputation





20 %

20 %

32 %

Work force

80 %

80 %

68 %

Headquarters: managers, general delegates, caputs of operation, caputs of division





16 %

26 %

29 %

Work force

84 %

74 %

71 %

( Beginning: Kim & A ; Schneider, 2009 )


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