Infosys (a) Strategic HRM_Group1_Section B

8/13/2019 Infosys (a) Strategic HRM_Group1_Section B

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Indian Institute of Management, Indore

PGP-1, 2013-2015

Analysis of Case: Infosys (A): Strategic Human Resource Management

(As a part of course Human Resource Management, PGP 2013-2015)

Submitted on January 13, 2014

Prepared by:

Group 1, Section B

Alka Borogaon2013PGP028

Anirudh Srikant2013PGP042Devang Jain2013PGP123

Lavanya D. Karanth2013PGP198

Tushar Rathi N2013PGP427

Wazeem M A2013PGP456

Under the Guidance of

Prof. Amitabh Deo Kodwani

Indian Institute of Management, Indore


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NASDAQ on March 11, 1999 and continuously differentiating themselves from their

competitors.

Infosys believed in the People Philosophy and recognized that its employees were the most

significant for the success of the company and took special efforts to keep the employees

satisfied and engaged. It ranked No.1 in the Business Today Best Employer Survey in 2001

and 2002. Infosys also created HALE (Health Assessment and Lifestyle Enrichment) for

employees that offered them with health checkups, yoga classes etc. The HR group was involved

in creating Infosys a fun and community empathy workplace. However, after 2003, despite these

efforts the case highlights the increasing discontent among the employees. Fast and continuous

growth made the diversity and disparity of the employee hierarchy more apparent with the

management not in touch with the rapidly changing realities of the employees at lower levels.

Infosys started experiencing a high turnover rate even though the company was expanding and

growing which meant high employee costs because of the need to build up recruiting efforts.By 2007, the founders wanted HR to ensure that Infosys was on the top 10 lists of both the Best

Performing companies and Best Employers

PROBLEMS FACED:

Increasing employee discontent despite the efforts of Employee Relations department. The implementation of C-LIFE across the organization was still a challenge. As a result of the continuous growth Infosys faced the challenge of managing the big

scale of employees as diversity and disparity of employee hierarchy increased.

Challenges of executing the work efficiently and meeting the customer expectations asthe company evolved.

Increase in the number of on bench resources and immigration issues due to new visarestrictions.

Cultural and compensation disparities in the BPO subsidiaries of Infosys. Introduction of variable pay across the organization based on three components: company

performance, unit performance, and individual performance was thought of by some

skeptical as a way for the company to reduce compensation costs.

Broad Banding by dissolution of 15 layers in Infosys into 7 bands acted as a tippingpoint of employee dissatisfaction and discontent.

Rapid changes in the HR policies caused confusion among employees and managers aswell.

The Promotions Policy now linked the promotions to the needs of the organization:individual performance, individuals abilities to fulfil the next role, and the existence or

need of that particular opening as opposed to the earlier parameters of individual

performance and seniority.


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ANALYZING CASE

As a company, Infosys had come up with various innovative HR policies to increase employee

motivation and retention. We start with a SWOT analysis to assess the HR department -

STRENGTHS-Known for path-breaking HR practicesRanked highly in the best employer listsFirm vision - to create a company of theprofessionals, by the professionals and forthe professionals

WEAKNESSES-Insufficient integration between HR andMiddle & upper level managersIncreasing communication gap betweenlower and upper levels of workforceSome of the HR policy changes backfired

OPPORTUNITIESWith the growing size, there was huge scopefor efficient management of human resources

By coming up with innovative HR policies,the company could set benchmark for othercompanies and create brand equity

THREATSPeople are averse to policy changesImplementation may backfire and be

expensiveIncreasing number of rival companies postliberalization

Based on the above analysis we come up with the following suggestions regarding the change in

HR policies to facilitate the problem in hand.

SUGGESTIONS

1. Since the employees thought that they were being deprived of creativity and technicalingenuity, giving them more autonomy in terms of carrying out the project will increase

their motivation. Also decentralize the decision making process which empowers the

employees.

2. The employees perceived the variable pay component as a cost cutting measure. Afinancial statement showing the increase in incentive pays can be circulated to the

employees. This can enforce more trust.

3. Appreciating those employees who earn the highest incentives and showcase this to theentire team, so that others aspire to achieve this and hence motivate them.

4. To help adjust to rapid growth Infosys can recruit Human Resources as a partner in theirplan for expansion, thereby allowing that department to organize the employee

development process to include those activities that would build the teams necessary to

work on the various projects.

5. Similar to expansion in China, look at clients outside the US to increase the numberonsite experiences, which are a crucial part of employee motivation.

6. Utilizing strategic human resources to attract the right employees that will expand theorganizations competitive advantage in the marketplace. And working towards retaining

them by providing them autonomy and attractive pay packages.


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CONCLUSION

Along with the traditional roles of HR department, the strategic roles also play a significant role

in the growth of a company. Strategic management involves the HR department becoming a

strategic business partner in the company. SHR can fulfill an important role in change

management by helping upper management understand the situation of employee and the reasonsfor their negative reactions to changes in policies. This writer feels that strategic human

resources management provides the greatest support for a company in achieving its mission and

goals because it works with all levels of an organization. Strategic Human Resources is more

involved in helping the company to bring their employees on board by motivating employees,

encouraging effective communication, training and cross-training employees in the functions

they are expected to perform, and help company achieve its goals.

Infosys (a) Strategic HRM_Group1_Section B

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