Professional Documents
Culture Documents
SUBMITTED BY:
JATIN GAMBHIR (10)
LALIT KAIN (14)
NIMA LAMA (21)
PARUL PATAWARI (26)
CONTENTS
CHAPTER 1: INTRODUCTION
1.1 Human Resource Management....................................................3
1.2 Need of Human Resource...........................................................3
1.3 Examples of Good Practices........................................................4
1.4 Key Functions of HRM............................................................... .5
CHAPTER 2: MANAGEMENT OF HUMAN RESOURCES AT INFOSYS
2.1 Introduction.............................................................................6
2.2 Overview.................................................................................7
2.3 History....................................................................................7
2.4 Leadership and Culture..............................................................9
2.5 Management of the HR Assets....................................................11
2.6 Selection.................................................................................13
2.7 Training and Development.........................................................13
2.8 Careers...................................................................................15
2.9 Performance Appraisal...............................................................17
2.10 Compensation........................................................................18
2.11 Infosys Overseas HRM.............................................................19
2.12 Future Plans...........................................................................21
CHAPTER 3: MANAGEMENT OF HUMAN RESOURCE AT TCS
3.1 Introduction.............................................................................23
3.2 Background..............................................................................24
3.3 Overview of HR in TCS...............................................................25
3.3.1. Diversity in Workplace...........................................................25
3.3.2. Learning and Development.....................................................26
3.3.3. Initial Learning Program (ILP).................................................27
3.3.4. Continuous Learning Program (CLP).........................................27
3.3.5. Leadership Development Program (LDP)..................................28
3.3.6. Foreign Language Initiative (FLI)............................................28
3.3.7. Workplace Learnings.............................................................28
3.3.8. EVA & Compensation Management..........................................28
3.4 The EVA Model.........................................................................29
3.4.1. Strategic Benefits of EVA.......................................................30
3.4.2. Incentive Scheme.................................................................30
3.4.3. Separation...........................................................................31
3.5 Journey Ahead.........................................................................32
3.6 Exhibits...................................................................................35
3.7 Bibliography...........................................................................39
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CHAPTER 1: INTRODUCTION
1.1 HUMAN RESOURCE MANAGEMENT
Human
Resource
Management
(HRM)
is
the
function
within
an
organization
development,
safety,
wellness,
benefits,
competitive
advantage
and
continuous
improvement
particularly
When it enables the following outcomes:
tools
and
techniques
are
becoming
increasingly
more
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well
designed
integrated
organisational
structure,
and
A Succession Plan
documented
HR
strategy
which
specifies
that
workforce
annual
review
of
workforce
development
objectives
and
achievements
Processes
and
practices
that
enable
clear
and
genuine
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HUMAN
RESOURCE
PLANNING
RECRUITMEN
T AND
SELECTION
TRAINING
AND
DEVELOPMEN
T
FUNCTIONS
PERFORMANC
E APPRAISALS
COMPENSATI
ON AND
BENEFIT
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CHAPTER 2
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2.2 OVERVIEW
Infosys, one of the Indias leading information technology (IT) services
companies, uses an extensive non-US based (offshore) infrastructure to
provide managed software solutions to clients worldwide. Headquartered
in
Bangalore,
India,
Infosys
has
seventeen
state-of-art
software
2.3 HISTORY
Seven software professionals founded Infosys in 1981 with the goals of
leveraging sweat equity and creating wealth leagally and ethically in
India. This was a daunting task in a country like where the government
was allegedly more concerned with redistributing wealth han creating it.
Most of Indias commerce was owned and controlled by an oligarchy of
families to which Infosys had no ties.
Infosyss competitive advantage has historically been derived from low
wage costs in India relative to service providers in the United States and
Europe. Their initial foray into the U.D market was through a company
called DATA BASICS CORP. as a body-shop or on-site developer of
software for U.S. customers. Later, in 1987, Infosys formed a joint
venture with Kurt Salmon Associates to handle marketing in the U.S.
These initial entries in to the U.S. market were a stepping stone for
Infosyss growth in later years.
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Most of the current human resource practices at Infosys result from the
vision of the leaders and the culture that they have created. Narayana
Murthy, known for his leadership and vision, is the public image of
Infosys. His leadership style is humble and straight-forward, quite
uncommon in the world of Indian business. Narayana Murthy believes in
sharing wealth with his employees and in leading by example. In a
knowledge-based business like Infosys, he sees the importance of
consistency in rhetoric and action in empowering employees. Narayana
Murthy is credited with creating a culture of closeness and empowerment
at Infosys. His management style, rare among Indian business leaders, is
based on Western management.
The other founding members of Infosys contribute their own specialities.
Though less known, they each play a critical part in shaping the culture
and running the operations at Infosys. These unique personalities, with
their particular strengths, create the basis for an uncommon culture at
Infosys. Infosys was voted Indias most admired company by a
January 2005 survey in The Economic Times. According to Narayana
Murthy, what Infosys has on its side is youth, speed and imagination
and they are constantly innovating in every area of their
operation. The founders efforts have been paying-off. According to a
California-based management consultant working in India, Infosys has
been critical in changing the mind-set of India. Transparency is one
of the important values held by Infosys. A practice illustrative of this value
is its very early decision to adopt the U.S. GAAP standards, the most
stringent standards, for reporting its financial results.
Hema Ravichandar, the Senior VP of Human Resources, sums up the
characteristics of the culture that distinguish Infosys from its competitors:
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self-sufficient
work
environment
for
their
employees.
Infosys
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2.6 SELECTION
The first step in the strategic management of
a companys human
resources is selection of assets with skills and potential consistent with its
business requirements. Infosyss business requirements are flexibility and
innovation. Accordingly, it has developed clear selection criteria consistent
with this business need. Selection is based on an individuals ability to
learn, academies achievement and conceptual knowledge, as well as
temperament
for
Infosyss
culture.
Further,
because
of
Infosyss
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with
excellent
academic
background
from
engineering
expectations,
flexibility,
presentation
skills
and
communication skills.
Rejected candidates may reapply after nine months. People do come back
and, if they have picked up the necessary skills, they are hires.
Submitted to : - Prof. Gauri Shankar
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engineers
simultaneously.
It
comprises
fully
equipped
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2.8 CAREERS
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developing
management
skills
by
attending
management
development programs 2-3 years ago was one of the nice things to do,
it has now become a business necessity. The nature of management skills
required is further complicated by the fact that at Infosys, managers are
also required to manage from remote. Team members are apread
Submitted to : - Prof. Gauri Shankar
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geographically and may not meet each other or the team leader for a
year or perhaps never. As hiring overseas gathers momentum, the
demands may be further exacerbated by the fact that team members
may belong to different backgrounds and may not completely understand
the organization and the country culture.
The second challenge facing career management is compression in
career, an effect of the speed at which employees must move from one
stage in their career to another. The new hires are very young (22 years
old) and they are put under managers who are 24 years old. At 30 these
employees are managers of managers. At 35 an individual can potentially
become a vice-president. Management skills become necessary at a very
earlt stage in life and career of an individual at Infosys. Rapid change is a
constant challenge.
It is a challenge to teach a 24-year old to become a manager. The young
individual believes, I have not yet grown, but you are saying, you have
to do it. Just when you become used to something you are pulled out of
it and it is time to move on to something else. Those who can cope with
this change emerge as leaders (perhaps at the age of 32); others fall
back and become comfortable where they are. The whole career
development progress in Infosys is therefore comparatively shorter than
in other companies.
To address the pressing need for management development, Infosys has
put in place some training programs. These include:
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teaching
managerial
skills
(such
as
delegation,
team
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COMPENSATION
We compensate out human assets in three ways. We add learning value
through training and development and appraisal practices. We add
emotional
value
through
initiatives
directed
towards
supporting
employees with their work and personal needs, and we add financial
value through monetary compensation.
- Hema Ravichandar, Senior VP, HRM
Although Infosys faces strong domestic and international competition for
its
human
assets,
through
enticing
offers
from
competitors,
the
compensation level at Infosys equals the average industry level for each
country. It is neither above market nor below the market level. The belief
is that financial value, when combined with learning and emotional values,
yields a total compensation greater than that offered elsewhere in the
industry.
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Infosys is one of the first Indian companies to offer stock option plans to
their employees. Currently Infosys offers three option plans that cover all
Infosys employees.
In addition to such statutory benefits as pension, medical and leave,
Infosys also offers a loan program that employees find very attractive.
Loans may be taken for pursuing a degree program such as an MBA, or to
meet such personal needs as purchasing a car or a house. The interest
rate varies (4% for a car purchase and 0-4% for a house purchase). To
date, almost all loans have been repaid.
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The recruitment strategies being used at the campuses in the U.S are
similar to those used by all other companies. These include lobbying with
campus career centers, giving talks to student groups, sending email
campaigns, participating in career fairs, and so on. However, certain
aspects of the recruitment unique to Infosys offer are a recruiting
advantage.
They offer extensive training, which few other companies will offer. The
training includes classroom training and mock projects. After a year our
employees are as good as the best Bachelor of Computer Science in the
world. Subsequently, employees have the opportunity to sign up any
course as a part of their continuous learning process. With an increasing
hiring rate, Infosys plans to set up training facilities in U.S itself. The
other aspect of recruitment that provides an advantage to Infosys is our
willingness to hire anyone with any reasonable math or science
background
(for
example,
economics,
math,
statistics,
physics
or
The
other
characteristics
considered
important
are
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CHAPTER 3
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HR practices that make it the best and biggest? Can it keep its head
above water, in its efforts to grow even bigger?
3.2 BACKGROUND
Sticking on to the tested and tried procedures does not qualify the
existence of a company in the present environment, which is never the
same on two consecutive days. It takes timely alterations in its HR
practices to keep it abreast with the others in the race. When it comes to
TCS, not just being in par is key, but leaping forward at a staggering pace
ahead of its competitors holds the key.
The company should effectively harness its human capital by making the
necessary modifications in its HR practices from time to time. The HR
practices should be in alignment with the overall strategy and processes
for the company to keep going in the rat and mouse game.
TCS has been thriving for this many years in a big way, and it becomes
evident that HRM is in line with the strategy. In fact, TCS was the 'live
case study' that capped off a six-day 'strategic leadership-training
program'
organized
by
the
All-India
Management
Association
and
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3.4.3 Separation
Following steps as part of my separation/ exit process :
Fill formal forms to get NOC from HR( for not owing any money to
tcs, and for not being leggaly bound in anyway for any contract
penalty).
Also the approval of the client is important for the backup personal.
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TCS seemed to have done everything right till now. Their HR practices are
so unique and they do rely on the buzz word of the era "knowledge
capital". They ascribe such importance to training and learning to tap the
potentials embedded in their workforce. EVA seems to be a concept that
is well-implemented that extracts optimum performance. Synergy is
brought to the fore by the interplay of workforce across the globe. They
are providing different kinds of benefits to its employees to keep them
intact. Above all, they were able to rightly mould their procedures in a
way it matched with the changing requirements of the environment. Does
all this provide room for complacency?
The answer would be no. It would be casuistry to assume that it will be
able to fit in the environment in the turbulent years to follow. The
company is sitting pretty comfortably as their attrition rate is way below
the industry average. They seem to underplay the fact that these figures
are on the rise and have climbed to two figures from 6.1% in 2003-04.
The gap between TCS and others are threateningly closing up. TCS cannot
afford
to
relax
and
dwell
on
the
previous
statistics.
Innovative
interventions, as they have done in the past, are the real need of the
hour. The big H-How is left to the strategists of the company. The
message is transparent - curb the attrition rates.
Too many cooks spoil the broth is an old saying that has its complete
essence in the context of TCS. The company is widely practicing the
concept of diversity and believes to generate the best out of it. So far so
good, but how long it can be sustained? An unprecedented rise in the
number of foreign nationals to increase the diversity in all probability will
froth the cross-cultural issues and will start to be dysfunctional. Incidents
related to diversity problems are being reported. A diverse organization is
shaped or influenced by the basic corporate culture, geographical culture
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3.6 EXHIBITS
Exhibit 1
Page 34
Exhibit 2
Exhibit 3
Page 35
Exhibit 3
Page 36
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3.7 BIBLIOGRAPHY
Submitted to : - Prof. Gauri Shankar
Page 38
www.infosys.com
www.tcs.com
www.coolavenues.com
www.managementhelp.org
www.humanresources.about.com
www.icmrindia.org/casestudies
www.ecch.com/caseresearch.results
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