INFOSYS (A): STRATEGIC HUMAN RESOURCE MANAGEMENT

CASE ANALYSIS

SUMMARY

Infosys was established in 1981 by Mr. Narayan Murthy and Six other entrepreneurs. Amid the first 10
years, the functioning of the administration was making it difficult to understand its vision of being in the
top 10 software companies. After facing problems with one of its investors, Narayana Murthy guaranteed
that the organization supported the downturns and kept on existing. The opening of the economy in 1991
paved the way to many chances that profited the business. Infosys changed its methodology and moved
its concentration from Body shopping to Offshoring. Infosys took various measures to enhance its image
value abroad. In that line, it turned into the main Indian organization to list on the NASDAQ. While
advancement helped in the general business development,
it likewise prompted challenges that emerged because of the entry of MNCs like Accenture, IBM etc.
These organizations pulled in all kinds of resources from Indian firms due to their worldwide image and
better remuneration policies. Infosys executed a few strategy changes so as to sustain during this time. It
differentiated its portfolio to give start to finish arrangements, acquainted variable pay framework with all
the employees, began moving towards job-based structure and promoted employees based on their
performance and not on seniority. These fast changes prompted enormous confusion among the
employees since they were not clear on what exactly their company wanted. This led to huge
disappointment and turnover among the employees. Infosys, which was positioned most noteworthy in
2001 and 2002, tumbled off that situation in 2003. From March 1993 to March 2003, Infosys also had a
compound yearly development rate of 65% and its incomes hopped from US$5 Mn to US$754 Mn.
Looking at the organization, the employees have a good bonding among them. They work hard in their
area of interest and likewise have fun and network compassion at working environment alongside the
attention on qualities. Though there are an immense power and communication gap between the
management, senior administrators and the employees.
Infosys as of now has a framework for appraisal in terms of - Variable pay and promotion policy. Yet in
spite of all of this, the employees are leaving the organization is in the prime time. With new project
opportunities coming up, they need the employees the most.

PROBLEM STATEMENT

How does Infosys continue its expansion alongside satisfying all its employees?

RECOMMENDATIONS

1. SURVEYS AND FEEDBACKS

Employee’s feedback data can significantly help in assessing the reasons for exits.
Using the method of prompting questions and reflective approach results in decrease of pressure
and creates confidence in employees. A questionnaire can be given to the employees asking for
the response of their basic needs in work, interested work, incentives, promotions and working
shifts. This will give an idea of why are the employees are unsatisfied and aid in retaining them in
the organization by meeting their unmet needs. Future planning may be done on the basis of the
responses. If all these feedback are unbiased and done accurately, this will reveal all the pros and
cons and increase mutual co-ordination between management and organization.

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 2. EFFECTIVE COMMUNICATION

When a company is doubling in size each year and constantly evolving, it is challenging to
manage communication with employees. Effective communication needs to be ensured at all
levels, employee to employee, management to employee. Involving the senior managers in
meetings with HR and communicating the rationale behind the policies will reduce the confusion.
This will also reduce the scrutiny and rumors, thereby increasing trust. The employees will then
see that their views are being taken into consideration and a sense of belonging will instill,
increasing employee satisfaction and productivity, in turn the company performance. This step
has negligible cost and maximum returns too along with taking minimum time to implement. This
recommendation will change the employees’ view of Infosys becoming impersonal.

3. MONETARY BENEFITS

Set a clear appraisal system: performance pay, ensure employees see how they fit into the
company by developing a clear and fair pay system.
Increments: Can be given periodically so as to tackle competition from other companies
and retain the employees by matching their pay with the incremental work they do.
Compensation: Needs to be given as extra benefits to instill the feeling that the company
takes care of its employees through any difficulty.
Overtime: Should be paid to give the employees worth every extra minute they spend in
the company, working, so that going forward, they are willing to help without hesitation.

4. NON MONETARY BENEFITS

Set an employee recognition system: This will help in making the employees feel appreciated for
the commendable work they do and motivate them to work harder.
The promotion should be merit based: not only sole basis but also team basis: This ensures that an
employee does not suffer any kind of unjustness and unpredictable situations are handled well.
Housing and conveyance facilities: Extra perks aid in retaining the employee.
Fringe benefits: The employee will know that the company is indeed not impersonal when these
benefits are given. Also, it may make life more comfortable. These may include healthcare,
conveyance, etc.

5. MOTIVATED ENVIRONMENT & WORK

Motivation is a significant factor in improving productivity. Building an environment of

motivation, support and encouraging employees towards commitment will create a sense of
loyalty in the employee; as a result it will create a sense of responsibility. This combined with an
informal environment can help the employees feel valued, know they are providing to the
company as a whole through the work they do, and how decisions that are made by the
management ultimately impact them. The issue of not getting meaningful work can be sorted by
re-assigning them work and making them do the monotonous work in shifts. Learning and self
development is an important factor and interests of individual must align with those of the
company, in turn maximum potential can be tapped by the employees.

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