Case Study Group 34 – HRM C

Infosys (A): Strategic Archit Bhat (H23131)

Kritika (H23145)

Human Resource Piyush Sourav (H23158)

Shreya Das (H23171)

Management Vidushi Shukla (H23184)

Fundamentals of Human Resource Management

PGDM (HRM), XLRI – Xavier School of Management
 Infosys grew at a rapid pace, its revenue going from US$5 million to US$754 million
in a decade. During the same period, it grew from having 250 employees to over
15,000. A company traditionally known for its work culture started finding it difficult
to balance between the need to control costs of financial performance and the
expectation of spending resources to maintain employee satisfaction.
The tremendous organisational growth of the company has resulted in the loss of
organisational cohesion. Despite numerous attempts at formulating HR policies that
strike a balance between the growing company needs and employee satisfaction,
various political, economic and social factors in addition to lack of proper
communication has so far resulted in confusion and employee frustration.
Case
Summary
 There were several issues which plagued Infosys. On a macroscopic level, most of the issues were a
result of increasing employee dissatisfaction. Employees were discontented because of the
following major reasons:

1. Introduction of Variable Pay: The employees were apprehensive about the scheme as they
saw it as a cost cutting measure. They were unable to look at the bigger picture - their earning
potential could increase manifolds if they were amongst the top performers.
Problem 2. Lack of Decision-Making Autonomy: As Infosys pivoted towards process over individual
Statement autonomy, the employees started feeling deprived of creativity that was a highlight of their
work when they had joined Infosys.
3. New Promotion Policy: The new policy introduced a new parameter for promoting people,
viz., the need of that particular role at Infosys. This irked the employees who were used to
receiving promotion based on their seniority, amongst other factors.
4. Change in Organisational Structure: The policy change of having a role-based structure,
along with several other HR policy changes over a time short period led to employees’ mistrust.
Further, it also led to misinformation being passed around due to the lack of clear
communication from the HR teams.
 Criteria and Evaluation

Effective
communication & New HR policy Maintain status quo
Modified HR policy

Financially viable ✔️ ❌ ❌

Vision statement ✔️ ✔️ ❌

Employee ✔️ ❌ ❌
satisfaction
Organisational ✔️ ✔️ ❌
performance
 Communication function
 Policy changes & rationale behind them should be explained through
extensive L&D sessions.
 Managers must focus on explaining the variable pay structure and its
advantages to the employees.
 Feedback mechanisms should be strengthened to ensure that grievances
and frustration are resolved.
 A user-friendly database should be created that easily disseminates the
Recommendations company’s employee policies.

Compensation and incentive function

 Variable pay structure should be clearly defined such that employees can
set personal performance goals.
 Employee recognition policy should be introduced for high performers
 One-time incentives beyond variable pay are recommended.