Human Resource

Infosys (A): Strategic Human
Resource Management

Group – 7

The company envisions to create wealth in a legal and ethical manner by building a company that is professionally owned as well as professionally managed. There were different induction programs for freshers and professionals with prior experience. But problems emerged when it did not have enough projects to keep all the employees engaged. it moved up in the value chain by focussing on IT strategy and IT design and realized that the need of the hour is to improve its brand equity. the company lost its positions as the Best employer in the year 2003. like the one where US government imposed regulations that restricted on the number of B1 visas to be issued each year. They developed a Global delivery model that converted the US government’s visa policy into an opportunity. Although other founders also had similar plans. Problem Identification Infosys which grew from a small company to large company was ranked highly in 2001 and 2002 on Best employer list. leadership by example. unit performance and individual performance. Providing stock options to its employees was one of the ways they did that. It has faced many turbulent times. Infosys also started evolving as a multinational firm and in the process of this. As far as employees are concerned. In 2000-2004. Infosys entered the Indian capital market through its IPO. in a shock to Infosys it fell off from Best Employer’s list. . Measures like Health Assessment and lifetime enrichment and employee social service group made sure employees get convinced the company cares about their health and encouraged them to pursue their area of interest. Around the same time. Narayan Murthy. emotional and financial value to their employees. they introduced the concept of variable pay based on the company performance. They believed in providing learning. This resulted in the exit of one of the cofounders who left the company to pursue opportunities on his own in the U. With the advent of liberalization. a 23-year old company formed by seven colleagues one of which was Mr. Its core value involved customer delight. Owing to such incidences. However.A.Situational Analysis The case is about strategic HR management for Infosys. It also transformed itself as a role based organization resulting in rapidly changing HR policies that bred a lot of confusion among employees.S. a person who is a socialist by heart but capital in mind. Narayan Murthy convinced everyone to change their view and stay on. integrity and transparency. the founders ensured that they were the best employers for all their workers. fairness and pursuit of excellence. in 2003.

if everybody understands the benefits of this kind of system.  Avoid rapidly changing HR policies like Broad banding or introduce them as stages.  Recruitment of employees who matches the values of Infosys irrespective of resource crunch. This may lead to resistance to some extent. But.  Managing cultural differences when expanded globally. Communicate clearly on Variable Pay mechanism to avoid uninvited doubts: Though the variable pay is helping reinforce the company’s high performance work ethic. thus incentivising people to work better. it is seen that there are few hardworking employees who would want to adapt to this change and rest don’t want to adapt to such system. So. It allowed better working employee earn more.  Better planning on the resources to avoid excess slacks (bench) which costs the company and lead to frustration among employees. .  Set up a fool-proof appraisal system (promotion) to reward performing employees.Why did Infosys fall from Best employer’s list and showed dissatisfaction among the employees (in spite of having many employee engagement initiatives)? Alternatives Available  Communicate clearly on Variable Pay mechanism to avoid uninvited doubts. Criteria for the Evaluation The following are the criteria on basis of which the different alternatives will be evaluated:  Does it reinforce the core values of the company?  Does the plan meet the needs of all the employees?  Does it reduce the turnover cost for the company?  Does the company face huge resistance to it?  Does it ensure adequate financial rewards for the employees?  Does it satisfy non-financial needs of the employees to boost their motivation? Evaluation of Alternatives 1. But it is not easy a concept to understand for employees of all levels. This will also help in reducing employee turnover costs because the employees now will be more motivated to work thus reducing the attrition rate. they would adapt to the variable pay model with ease.

thus aligning with the ideologies of the company. 2. So. managing cultural differences is a major issue of concern when expanded globally. the foolproof appraisal system also builds trust of the employees on the company and the senior management staff because. 4. 5. This will also provide motivating work environment to the employee for his/her satisfaction. 6. Recommendation On evaluating all the options available. Recruitment of employees who matches the values of Infosys irrespective of resource crunch: This has reduced the conflicts that may arise due to different values each individual may have. Hence going slow in stages is better to do when the organization needs a big change in the system. Thus having employees with different mind-set is required. That will even lead to resistance from the staff and increase in attrition rate. planning of the resources will avoid such hassle and help in the smooth allocation of resources to everybody. This helps in avoiding intra-organizational conflicts. 3. on merging all the options. This will not face resistance from employees and this will even motivate the employees. But. So. Most of the options provided have become important these days in every . now the system seems more transparent. Avoid rapidly changing HR policies like Broad banding or introduce them as stages: Sudden change will cause huge discomfort in the employees. And also this will homogenise the kind of people in the organization which will reduce the number of perspectives in which a situation can be handled. the company can reap maximum benefits. Better planning of the resources to avoid excess slacks (bench) which costs the company and lead to frustration among employees: Every division of any organisation have their essential resource without which they can’t operate effectively. Set up a foolproof appraisal system (promotion) to reward performing employees: Like the above mentioned model of variable pay. This also ensures proper communication and smooth working of the organization. But such recruitment has to be done rigorously and costs a lot. it seems to be that none of the options can fulfil all or most of the requirements independently. Managing cultural differences when expanded globally: For an employee who enters in the organization with different cultural background it will become difficult to work in a completely different cultural setting.

So. Issues to overcome while implementing the solution The issues while going ahead with the recommendation as mentioned above may be to concurrently implement the options. managing cultural conflicts. like mentioned in option-3. Infosys should implement all the options that are which wants to have good HR practices. For example. the employee expectations are also increasing along with their strength. If not all. is a necessity. . but gradually. the employee strategic focus is to be restored towards the firms strategy. Infosys should implement the changes. at a time. this has to be taken care over the period of time . the employees are not finding themselves aligned with the company it has to restore employee motivation which has gone down in the last year.The Cultural compensation disparities will be challenging as the global base of the firm is increasing.