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Group 13, Section B

Ankit Parihar
Arpit Garg
Rajagopal S
Santosh Kumar Singh
Shah Kunal Anil
Shiksha R Singh
HRM Case Analysis:
Infosys(A)
Situation Analysis
Infosys as a Unique Organization

 Envisioned as a company “of the professional, by the Professional, and for the
professional”

 A proposition different from the family owned enterprises and MNCs, that dominated the
Corporate landscape

 Founders came from conservative middle class backgrounds – Had faced adverse
business environment

 Organization driven by aspirations that made it big in the post liberalization era

 Believed in sharing fruits of growth -“Fair deal to all stakeholders” ; First to give out ESOPs

 Driven by innovation – Offshore development centers, Global delivery Model , Vision to
compete with global majors such as IBM and Accenture by moving up the value chain

 Striving to build Brand equity for the Indian software industry in general Infosys in
particular
Situation Analysis – Unique Offering By Infosys
Learning Value-Add
 Training
 Opportunity to work onsite
 Freedom To pursue areas of interest

Financial Value-Add
 ESOP
 Compensation in the top 10-15% of peer group

Emotional Value-Add
 Organization that encouraged innovation and individuality,
 Open Door Policy – Informal Grievance Redressal
 Support during emergencies , HALE platform
 College like work environment- DJ nights, debates, quizzes,
Employee social service group
 Extensive induction – Making employees adhere to C-LIFE,
opportunity to work with senior managers

Situation Analysis – External and Internal Factors
Market
Changes
Liberalization Of
Indian Economy
India Offers Cheap
Labor which
attracted companies
Reduction by the US
in the number of
business visas
Economic Downturn
of 2001-2002 led to
increase in the
bench
Demographic
Changes
Infosys evolved in a
multinational firm
Operations across
the globe and along
various portfolios
Subsidiaries had
disparities in
compensation and
culture
Social
Changes
Earlier Infosys was a
small company will
collegial
environment
With growth it
became more
process oriented
Less scope of
innovation, freedom
and autonomy
Situation Analysis – Managing Growth
65% CAGR between 1993 and 2003; Revenues jump from $5 million to $ 754
million; Employee base swells from 400 to 15000

Cultural flux (Degrading Emotional Value-add)
 Culture becomes more impersonal
 Stifle Innovation and technical ingenuity as tasks become repetitive and process
oriented
 Balancing need for man power v/s assuring culture fit and adherence to C-LIFE
 Diversity and disparity of employee hierarchy becomes evident, loss of
communication of mid level and senior management with changing realities at the
grass root
Degrading Learning Value-add
 Work less fulfilling , better options with entry of MNCs
 Frustration on account of increased batch strength.
 Harder to send employees onsite on account of visa restrictions for business
purposes
Degrading Financial Value-add
 ESOPs given at 85% of fair market price v/s 5% earlier
 Competition with MNCs that offered better pay packages and a global brand

Situation Analysis – Changes Initiated
Reforms Initiated Original Intent of
Management
Perception of the
employees/Effects
Managing Portfolio Diversity
 Moving up the value chain ( High end
Consulting)
 Set up of BPO subsidiary
 Geographical diversification (China)
Consolidate operations to
support future growth
Cultural and
compensation disparities
across divisions- Leading
to discontent
Variable Pay
 Variable pay for all employees
 Three components for evaluation : Company
performance, Individual performance, Unit
performance
Align interests of the
company and the employees
Mixed response
Seen as a way for the
company to reduce
compensation costs
Broad banding
 Assigning a numerical worth to each role
based on its contribution to business

To facilitate career planning
and bring objectivity to the
process
Misinformation and
rumors, fostered lack of
trust
Promotion Policy
 Based on : Individual performance, Ability to
fulfill the next role, Need for that role in the
organization
Ensure performance and not
seniority remain a factor
No “fat” in organization
layers
Lack of trust in the
process
Problem Statement
“To bring out HR strategies that
complement business strategy of Infosys
and help it retain its unique “fair to all”
culture and leverage the same for future
growth”
What Infosys Can Do – Different Alternatives
Improve communication by Human Resource Department


Provide/Generate challenging work


Offer quality benefits ( Training, remuneration, social security, fun events)



Provide flexibility in work Decentralization


Outsource portion of HR administrative duties


Horizontal Organizational Structure - Open Door Policy
Improve Communication
 Misinformation and rumour in the company will be avoided – Road
Shows

 Sense of belief and trust will be created – Rapidly changing HR policies
bred confusion

 Employees will relate more to the strategic changes in the company

Provide Challenging Work
Moving up in the IT Value chain and job rotation will create
challenging opportunities

Constant feedback from employees and assigning the work
accordingly will help in improving the motivation level

Attrition rate will also decrease as people will be more engaged
Offer Quality Benefits – Remuneration and Benefits
 Increase compensation to meet industry standards – Clearly state the
benefits of variable pay and deliverables

 People at bench can be engaged in workshops and training to boost their
moral, develop their skill set and thereby reduce their frustration
Provide Flexibility At Workplace
 Employees should be allowed to switch the vertical and geographies,if
they wish to do so, so that they can find enough opportunities of growth

 Company can look for opportunities in countries other than the United
States – Europe , Canada

 Portfolio diversity can be used as another opportunity to impart
flexibility to employees
Outsource Portion Of HR administrative duties
 Outsource few of the HR administrative activities like – Resume screening ,
Accounts Management

 PEOs (Professional Employer Organizations) can help in meeting ever increasing
demand of skilled employees required by Infosys for future growth

 Increasing cost benefits with increased efficiency due to external expertise –
Saved time and resources can be devoted to other strategic issues
Decentralization
 Unit HR managers know better the skills and competencies that are required in
their business units

 Decision making will become easier and communication will improve

 It brings back the informal work environment that was earlier cherished at
Infosys

Criteria For Evaluation Of Different Options

Employee satisfaction



Increase in motivation



Decrease in attrition rate


Reduction of Gap between employees and Management




Evaluation Of Different Options
Options Employee
Satisfaction
Increase In
Motivation
Decrease In
Attrition Rate
Reduction Of
Gap Between
Employees and
Management
Improve
communication
Provide
Challenging Work
Offer Quality
Benefits
Outsource
Portion Of HR
admin duties
Provide Flexibility
In Work


Decentralization
Horizontal
Structure
Recommendations

 Evaluation of the options give us the priority list.
 One should devise an action plan based on the options in the following
Chronological order based on the urgency of the issues to be dealt and its
immediate impact on the problems

Short Run Measures
 Improve communication by Human Resource Department
 Offer quality benefits – ( Training, remuneration, social security, fun events)

Mid Run Measures
 Provide challenging work
 Provide flexibility in work

Long Run Measures
 Employee engagement programs
 Decentralization and horizontal structure in place of broad banding
 Outsource portion of HR administrative duties


Thank You