The entire list of 'competencies' is here: http://www.microsoft.com/education/competencies/allcompetenc...
It probably started as your typical big-company CYA in case someone tries to sue them for HR-related stuff and grew into this monster as some middle manager began empire-building.
There's even a wheel, in case you felt like making a poster: (pdf) http://download.microsoft.com/download/3/4/7/3477e49d-315d-4...
I was about to post the same discovery, but you beat me to it. Bah! And +1!
So... it's edgy humor in the form of a terrifying practical joke? Maybe Andy Kaufman didn't die after all.
All other things being equal, wouldn’t you rather have a manager or co-worker with a good sense of humor than one without? Therefore, don’t employees with good senses of humor deserve to be paid more than the humorless ones? If Microsoft doesn’t recognize and reward how employee-led humor adds value to their stakeholders, then all the employees with good senses of humor will bolt the company, attracted by the free clown suits that Google offers.