 Incorporated on 2nd July, 1981.  Mainly overseas clientele;  1st client: Reebok.  Developed proprietary banking software,

Finacle. (1987)

 Revenues Rs. 10.3 mn (1985) to Rs. 19.1 mn

to Rs. 25.4 mn (1989)

 Started with on-site services.  1991: Liberalization of Indian Economy.  IPO in 1993.

 1st Indian company to implement ESOP (1994)  Issued 24,000,000 warrants to employees at

Rs.0.50 each, entitled the holder to apply for one equity share.

 Another ESOP in 1999, issued 26,400,000 equity

shares to the employees.

 1st Indian company to value its human resource

at Rs. 2785.5 million.

 Discontinued with ESOP in 2003 due to

accounting problem

 Maintained the small company culture.  Provided employees with world class facilities for

training and working, such as; -- Multi-cuisine courts -- Swimming pools, a gymnasium -- A golf course etc.
 Initially recruited employees from engineering colleges  Policy of recruiting people with analytical skills and

provided them with specific training employees.

 To succeed it was necessary to recruit, train and retain

INFOSYS’s HR PRACTICES (Contd) on individual growth along with  Emphasized
organizational growth.
 Identified the structural requirements of

people at different levels and created a demand for the roles.
 Adopted a role-based structure, ensuring

employee career growth.
 Role of the employees was defined.  Performance-appraisal and career

progression were carried out according to

 Fresher training courses  Training on new processes as well  High level managers were trained for

management development / leadership development program.

 High cost incurred (6.7 bn in 2005- 06)  Training covered:
   

Software development Managerial skills Soft skills Leadership Skills

 In house education & research department

New Recruits Training 14.5 week technical training

Training Employees Competency considered individual performance, feedback from clients Trained in technical training, managerial & skills training, domain training & quality processes training. Project specific training courses conducted by E&R department

Expenditure of Rs. 2 lakhs /year/new entrant

Trained at Global Education Centre

Training covered: culture & value For software engineers system, technical and managerialincluded :configuration skills, soft skills,etc. management and defect prevention. Training in technology courses Regular quality process training like C++, UNIX, HTML,etc. Feedback mechanism to ensure continuous improvement in training program. Other training programs: soft skills, communication, personal effectiveness Employees had autonomy to choose area of training

Set up in 2001

Infosys Leadership Institute

Objectives :  Grooming Executives  Ensuring smooth transition into next generation  To study and develop different leadership styles How ILI was established ?? Infosys did a study of 8 corporate training models(including that of G.E, Philips,etc.) before establishing ILI

Infosys Leadership Institute
Process followed at ILI
 Identified 400 potential leader (Performance basis)  Put through a 3 year training program  Training given on topics such as organizational


change, transformational leadership, etc.

Something more…..
 100 faculty members (70% doctorate)  Company leaders shared experience with the


Infosys Leadership Institute (Contd…) four dimensions: Work, People,
Technology, Business development
 Identified leadership competencies on

 Followed a 9 pillar model for leadership

 These were 360 degree feedback,

developmental assignments, Infosys culture workshop, etc.

Performance Appraisal
 Evaluation of personal skills like: their

learning and analytical ability, etc.

 Different criteria for evaluation for evaluation

like: timeliness, customer satisfaction, business potential, etc. to 5.

 These criteria were measured on a scale of 1  The appraisal data was used to determine

the training needs and other developmental interventions of the employees.

Performance Appraisal
 2003: A New Model Introduced: Incentives

were paid on the basis of three tiers of performance:


 overall corporate performance,  unit performance and,  performance of the concerned employee.

 Mid- 2006: Deferred Compensation Scheme:

To create a compensation pool and reward the employees out of that based on their performance.

The Culture
 Infosys tried to preserve the attributes of the small company

culture: worked in small groups, managers played the role of mentors to guide their team members.
 An environment of mutual learning was strongly encouraged.  Better performers were given higher responsibilities and quick

promotions to provide them rapid career progression opportunities.
 ‘Milestone’: A program to help employees progress faster.

Employees at each level were coached by their superiors about the demands and expectations from their positions.

 Middle level managers were encouraged to

spend sufficient time on meetings, administration, etc. to help them become better leaders.

 High level managers were taught the importance

of nurturing the teams.

 Constant communication between the

employees and the top management. Eg:
 e-mail sent by M.D to all employees on the

previous month’s events in the company.  Employee queries were addressed by the top management of the company regularly(quarterly).

 Informal group meetings called ‘Brown Bag

Lunches’ were carried out from time to time.

 Open Door Policy was encouraged wherein

employees could discuss any company related issues with their senior management.

 Managers’ cubicles were placed close to those of

employees to facilitate ‘Free Exchange of Information’.

 2005: Work-Life Balance program called ‘Ontime’

introduced: included workshops and sessions on stress and anger management.

 Internal employee survey called ‘Litmus’ was

conducted to know the expectations of employees from the company.

 Focus on recruiting candidates who display:
 High degree of learnability  Professional competence and academic excellence  Other qualities- analytical ability, teamwork.

 Sources of recruitment were external sources:
 Campus interviews  Advertisements in newspapers  Application received

Selection Process
STEPS Initial Screening shortlisted Written Test off marks CRITERIA Academic and Experience Arithmetic reasoning, analytical above cut- thinking, English language skills Communication and presentation skills, flexibility and aspiration levels

Interview (Panel Interview)


If not Selected (re-apply after 9


 Securing a position is competitive: Last year,

1.3 million applicants applied for full-time position but only 1% were hired.
 Used RMS developed by Blue Shift.  Recruited Experienced personnel for special

 Looking at increasing local hiring at various

geographies, where they have presence.

Points worth discussion…
 Maintenance of small company culture and


 Diverse cultures arising due to multiple


 Lack of personal touch and challenges  Work-life imbalance due to heavy workload  Employee retention without increasing the wage


Thank You
 Hubrit D.S.  Mikky Madhogaria  Nitin Arora  Rajinder Budhiraja  Sheena Mathur  Vivek Luthra

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