Summary

In the year 1981, Infosys was founded by Narayana Murthy along with his six colleagues with a
vision of creating wealth legally as well as ethically. Initially, the companies faced a lot of issues
due to government and international policy regulations. US policies on B1 Visas did not allow
them to send their employees abroad to work for US clients. They even had to face a potential
shutdown in the year 1989. However, with strong will power and sheet hard work, Narayan
Murthy was able to lift back the company. Economic liberalization in 1991, further supported the
company’s growth. Infosys entered the Indian Capital Markets for its IPO and they introduced
Offshoring. Then they introduced a project management system called Global Delivery Method
(GDM). In GDM there was cross-functional division of tasks to achieve high efficiency and
productivity. The company always felt the need of keeping its employees happy to grow as a
company. They were awarded best employer in the years 2001 and 2002. To keep up with
changing times, Infosys introduced certain policy changes, but the changes were not effective as
the employee satisfaction level dropped immensely. The company even lost its spot from the best
employers list. The founders identified the problem and it was time for them to re-think about
their policy changes and resolve the issues in-order achieve high employee satisfaction levels.
Issues
 To ensure that Infosys was listed in top ten for Best performing company as well
as best employers.
 Employees believed that organisation was becoming impersonal and perks
initially being offered were being repealed.
 Clients expected faster turnaround and greater efficiency of projects. Also,
employees were frustrated and increased cost for company due to increase in “bench”.
Q1. How would you resolve the tension between achieving high performance metrics and
employee satisfaction metrics?

A1- Company considers individual performance and unit performance while deciding the pay.
The tension between achieving high-performance metrics and employee satisfaction metrics can
be resolved by using some of the following policies:
1. Communication- Policies should be communicated to employees on a regular basis,
communication will help them to bridge the gap and increase the trust within the organization.
Also, the information to be transferred should be clear and crisp.
2. Intrinsic Rewards - Rewarding the employees on the basis of performance will keep them
motivated and also it will effectively reduce ambiguity among employees.
3. C-LIFE- Infosys followed core values it believed in and wanted every employee to adhere to
acronym C-LIFE. But its execution became a challenge as they had to hire employees based on
company’s culture and values. In order to overcome this issue they should hire employees as per
the job and then train them in accordance with their core values and culture.
4. Transparency- Promotion depends on the individual performance and the group performance.
So, employees should be made clear about the appraisal they receive.
5. Fun activities- Getting involved socially in a group will help the employee to generate an
emotional bond and help to get involved in a friendly manner. Infosys also tried to create some
fun events for new employees like DJ night, quizzes and debates for them so that they get
socially involved and also tried some CSR activities to gain satisfaction too.
6. Benefits distribution- Employees should believe that the policy is there to benefit the
employees and not reduce their compensation.
7. Emotional bond- Employees should believe that the company and the employees they are
working with is like a family. Also, organization should make sure that they will provide benefits
like healthcare insurances, emergency leave and should also encourage a work-life balance.