HUMAN RESOUCE
MANAGEMENT
Infosys (A)- Strategic Human Resource Management
SUBMITTED BY
GROUP 4 - SECTION C
Name Enrollment number
Vishrut Anand 20A2HP439
Nishant Bindal 20A2HP440
Bhavani Prakash Ayeenedi 20A2HP441
G Harshitha 20A2HP444
Priyankan Goswami 20A2HP443
Amit Kumar Verma 20A2HP464
Sushmitha Mohan 20A2HP465
SUBMITTED TO
PROF. (DR.) B. PAVAN KUMAR
ASSISTANT PROFESSOR
IMT HYDERABAD.
INTRODUCTION
Infosys had set up an ambitious target of regaining its pole position in Business Insider Best
Employer Survey in 2007 which it had lost in 2003. Before 2003, Infosys pioneered The Global
Delivery Model (GDM) system of project management. GDM divided the project into sections
to be completed as separate units consecutively at client sites and remote development centres.
GDM also gave Wipro the ability to compete with the large IT firms like Accenture and IBM
up the value chain through the more extensive geographical reach of its IT solutions
implementation business. When liberalization happened, and Infosys was capitalizing on
abolishing license and permit raj, it competed with multinationals by building brand equity and
a creative business model of offshoring project managements for clients instead of clients.
Infosys came to become one of the highest paying employers on the human resources front and
offering employee stock options warrants, with five years of life, contrary to the standard
industry practices. Despite measures to boost employee welfare and having a positive attitude
towards achieving the highest industry standards in human resource management, Infosys was
still given rave reviews by disgruntled employees in its Employee Satisfaction Survey and fell
from Best Employers Survey. Infosys had attempted to use Grievance Redressal mechanism,
support during emergencies, cultural and sports clubs, and the robust Health Assessment and
Lifestyle Enrichment measures to show its commitment towards the employee welfare. Other
examples of actions that included their employer-level support to the employees were their
induction programs, both for employees placed from institutions and employees that were
professionals with prior experience from past companies. These induction programs were
designed to acclimatize new Infoscions with the organizational values and workplace culture
at Infosys. Infosys had to refine further its already ingenious human resource management
procedures against prevailing employee discontent and disharmony to achieve its targets in
2007 to become Best Employer again.
Q1. What is your assessment of the initiative taken at Infosys?
Through 1993 to 2003, Infosys was evolving at a rapid rate of 65%. With the increasing
operations in 1999, the company found it challenging to meet employee expectations and
reduce the employee turnover rate simultaneously. Infosys took steps to retain its employees
in three ways knowledge value-adding through training, emotional branding, and financial
incentives. In 1999, the company decided to bring in a series of changes – Building a diverse
portfolio, Variable Pay, Broad Banding, Promotion policy to bring down the attrition rate.
Despite various measures taken, the company faced a drastic fall from grace "The Best
Employer."
Portfolio Diversity:
With increasing scope for development, Infosys expanded its operational base to Greater China
and set up a BPO subsidiary called Progeon. Though these initiatives were commendable and
increased Infosys' market reach, the management failed to consider the cultural disparities and
difference in these employees' expectations, leading to employees' growing dissatisfaction.
Variable Pay
The variable pay policy was intended for all employees rather than only the senior
management. This policy included pay according to an individual's performance assessed on
three levels- company, unit, and individual. This policy aimed to take the employees in tangent
with the company. But this policy led to misconception and scepticism amongst the employees
that the management is taking this initiative to reduce employee cost.
1
Broad Banding:
In this initiative, the 15 layers in the organization structure were compressed into seven bands
based on skillset and make them aware of the skill set required to reach the next level. It also
enables easy comparison of jobs across departments. This initiative led to a reduction in the
number and frequency of promotions, further increasing employee dissatisfaction.
Promotion Policy:
The promotion policy criteria were changed from seniority to promotion based on performance.
This policy created distrust amongst senior employees and challenged the existing balance by
introducing new policies.
Due to increasing processes, the employees feel that the company has deviated from its core
values and becoming increasingly process-oriented from people-oriented. The initiatives
mentioned above are more system-oriented and are not for the long term.
Q2. What advice would you like to give it to Mr Ravichandar?
Strategic human resources management is about balancing human resources so that the
company meets the needs of its employees and the employees meet the company's needs.
Infosys is known for excellent HR practices and employee satisfaction. He had many positive
and negative points about his employees' attitudes towards the work environment. As the
company's size doubles and changes every year, it becomes difficult to manage communication
with the staff, one of the main reasons for dissatisfaction at Infosys. Communication is fluid,
making a company's employees feel valued and worthy. They can understand where they stand
in the company and what their role means for the entire company. One of the biggest complaints
in Infosys history was that employees felt they were no longer able to do meaningful work and
did not understand how to fit in with the change in company policies and practices. Another
possible solution is to restore the old sense of a small collective atmosphere in the company,
as this is one of the biggest complaints from employees over time. This is usually not harmful,
but it does not always cost much to improve employee satisfaction. Infosys needs to change
the work environment so that employees feel valued and get a lot of work done.
The following are some of the highly recommended solutions:
1. The recommended solution to improve Infosys employee satisfaction is to focus on
improving communication within the company. As communication improves and
managers work more closely with their employees, they will better understand the
importance of their role in the company, the value they bring to the entire company
through their work, and their decisions. Which management ultimately affects them.
2. will better understand the problems and frustrations that lower-level employees may
face, which will help them solve the issues. It can happen. Companies that work hard
to meet their employees' needs can create a work environment conducive to
productivity.
3. Strategic human resources management is the best way to achieve this. The ability to
meet the employees' future needs can help increase the percentage of qualified
employees who choose to stay with the company. Retention rates and can reduce the
money a company spends on finding and training new employees.
4. At Infosys, an employee's greatest need is to feel like they are doing meaningful work
and understanding what they fit into and how the changes being made affect them. It is
not that money. or help achieve material benefits.
