Indian Institute of Management, Raipur

Human Resource Management (HRM)

Jan 23, 2023

Submitted to: Prof. Ritu Gupta

Submitted By: (Group 7)

Asheena Tanvi: 22PGP164
Chirag Bhatia: 22PGP142
Himanshu Meena: 22PGP297
Sanchit Nema: 22PGP158
Sushmita: 22PGP175
Vanika Keswani: 22PGP128
Ans – 1 ) Initially as Infosys was getting off the ground, it turned out to be a difficult undertaking in the
intensely bureaucratic and regulated environment of 1980s as it took months and years to get permission
to import a computer and telephone lines. All these constraints meant longer lead times in executing the
business. Things even became worse when the US government placed new restrictions on the number of
B1 visas it issued every year affecting Infosys’s ability to send its employees to customer locations in the
US. Also, on site experiences were one of the main motivational tools used by senior managers to reward
high performers, but it became more difficult to use them under new visa restrictions.
In 1991 when liberalization of the economy took place it also came up with a potentially fatal threat in the
form of competition from multinationals which had started setting up bases in India. S along with this. So,
Infosys management had to address the problem of compensation by ensuring that its employees’ salary
were in top 10 to 15% of salaries offered by companies in its peer group. Along with this Infosys also had
to mandatorily provide employee related benefits to give a competitive edge.
Disparity of expectations across the employee hierarchy was seen with the Company's rapid growth and
its number of employees skyrocketing. Until 1990s Infoscions received employee stock options at a
purchase price of 5% of the fair market value. The next generations had similar expectations, but they
were disappointed as the SEBI required Infosys to issue future ESOP at 85% of Fair market price.
Additionally, as Infosys was becoming more process oriented the employees were disappointed as they
were being deprived of the creative and technical ingenuity that had been inherent in their work during
the initial years plus some of the perks of initial years were being repealed.
Infosys articulated the core values it believed in and wanted every employee to adhere to through the
acronym C-LIFE: Customer delight, Leadership by example, Integrity and transparency, Fairness and
pursuit of excellence. But the execution of C-LIFE was a challenge for the organization. Infosys tried to
recruit and hire employees based on their potential fit with its culture and values but this became a
challenge for it as Infosys did not want to be constrained by lack of resources in its pursuit of growth.
Increase in the disparity of the employee hierarchy had become very much challenging. Middle managers
and senior managers were not in touch with the rapidly changing realities of employees at lower levels.
Managers were not able to understand the frustration of employees who were doing less interesting work
then the managers. Plus, the employees were not rewarded for their achievements. Additionally, managers
also found it hard to practice a very hands-on management approach and struggled to delegate effectively
as their responsibilities were expanding. All this led to Infosys facing increased employee turnover in the
same era in which it was expanding its operations. Employees were attracted to the multinational
technology firms like Wipro as it provided better compensation packages. This resulted in Infosys
increasing its employee cost because of the need to build up recruiting efforts.
Variable pay was a good initiative but had a mixed reaction from the employees. Some employee were
skeptical of the company’s intention as they thought it was way for the company to reduce compensation
cost.
Another reason for employee dissatisfaction and discontent at Infosys was broad-banding. Rapidly
changing HR policy confused employees and manager. This resulted in lack of trust between some
employees.
Execution of promotional policy was also a big question to the organization as it affected the expectations
of senior employees.
Ans – 2 ) As Ravichandar, I would discontinue an initiative if it is not showing any significant progress or
results even after a reasonable amount of time and resources have been invested in it. I would also
discontinue an initiative if it is not aligned with the company's overall strategic goals and objectives.
On the other hand, I would give an initiative more time to give results if it is showing some progress and
potential for success, but just needs more time to fully realize its potential. I would also give an initiative
more time if it is aligned with the company's strategic goals and objectives, and if the resources invested
in it are not excessive.
Ultimately, the decision to discontinue or continue an initiative would be based on a thorough analysis of
the initiative's progress, potential for success, alignment with company goals, and resources invested.

Ans – 3 ) The advices I would like to give Ravichandar is to improve their evaluation metrics. She should
keep a regular check on how the organization is functioning and whether or not the employees are fitting
in, in the organization well.
The turnover rate of the organization is really high as well, the growth of organization was leading
employees to reflect and realize that the work was not as fulfilling as they hoped and hence they were
leaving the organization. Other multinational companies were attracting the employees because of their
global brand and better compensation packages. So, Infosys should improve their compensation packages
in order to retain their employees.
Also, she should recruit and hire employees based on their potential fit with Infosys’s culture and values
and should give them incentives on the basis of their work performance. Ravichandar should also look
after the HR policies that were frequently changed in the organization, she should try to develop a
consistent policy framework to avoid confusion among the employees.
At Infosys, collaboration with lower level personnel is a responsibility shared by middle managers and
senior managers. So that the employees may be managed more easily, they can arrange themselves into
smaller units. Additionally, the senior manager needs to hold weekly or monthly review meetings to get a
better understanding of the situation and to present suggestions for enhancing worker productivity.
Ans – 4 ) There are several metrics that can be used to measure the effectiveness of Infosys' strategic
human resource management. Some examples include:

Employee retention rate: This measures the percentage of employees who stay with the company over a
certain period of time. High retention rates indicate that employees are satisfied with their jobs and the
company's management practices.

Employee engagement: This measures the degree to which employees are committed to their work and
the company. High engagement levels indicate that employees are motivated and invested in the
company's success.

Talent acquisition: This measures the effectiveness of the company's recruiting and hiring processes. High
talent acquisition rates indicate that the company is able to attract and hire the best candidates for open
positions.

Diversity and Inclusion: This measures the company's efforts to create a diverse and inclusive workforce.
This includes metrics on representation of underrepresented groups, employee satisfaction with D&I
initiatives, and progress toward D&I goals.

A story that can be used to convince the use of these metrics:

Infosys is a rapidly growing technology company that prides itself on its highly skilled and dedicated
workforce. However, in order to continue its success, it is essential to measure the effectiveness of its
human resource management strategies. By tracking metrics such as employee retention rate, employee
engagement, talent acquisition and diversity and inclusion, Infosys can ensure that it is able to attract and
retain the best talent, while fostering a culture of engagement, inclusivity and diversity. This will lead to a
more productive and efficient workforce, which will ultimately drive the company's growth and success.