Infosys : Strategic Human

Resource Management

Presented by-
Rahul Sharma [H21099]
Tanya Gupta [H21119]
Shatrughna Ojha [H21109]
Siddharth Mawandia [H21114]
Sakshi Singh [H21104]
 In 1981, Narayan Murthy along with his 6 colleagues established Infosys with $250. They created the
company “of the professional, by the professional and for the professional” with a vision of creating
wealth legally and ethically.

SCENARIO Transition phase – soon it became the company which has a global reach rather than just a company
based in a city. The purpose was set to improve the brand equity. It became the first company to list
on the NASDAQ on March 11, 1999.

The idea of firm to be the Best Employer or Employer Choice prevailed even after the successive
growth of Infosys. It was ranked highly on the Best Employers list for two consecutive years, 2001
and 2002.

In the given time, Infosys became more process oriented and, similar and repetitive projects
increased causing dissatisfaction among the employees. Major changes in policy were done, and the
communication gap arose within the organization.

Result of internal employee satisfaction survey displayed discontentment. And it fell off the Best
Employers list in 2003.
 Current Situation
Infosys is no longer in the “Best
Employer List”
due to high employee dissatisfaction
Assumption

GAP The basic assumption that we are

working with is that the HR
policies of Infosys regarding
variable pay, promotion policy,
End Goal broad banding, and so on are
To ensure that Infosys is on top ten list of: appropriate given the firm’s
 Best Performing Companies current position
 Best Employer List
The Problem - 1  Employees at the lower  There are not as many
levels complain that their opportunities for
One of the major reasons for
growing employee dissatisfaction work has become professional growth as
and turnover is unrewarding, increasingly uninteresting employees are not given
uninteresting work, especially at as Infosys has become the autonomy for
the lower levels of the organization more and more process- innovation
oriented.
 This problem is  There is also an excessive
accentuated by a disparity bench capacity -
in expectations across employees who are not
hierarchies - managers, currently working on any
whose work has become projects and are sitting
dynamic and interesting, idle, waiting to be
are out of touch with the deployed.
reality of their employees.
 The Problem - 2
The organization is becoming increasingly impersonal day by day, leading to a lack of emotional bonding
between employees and organization.

There has been a significant Infosys’ expanding portfolio While Infosys has a strong
cultural change in Infosys of subsidiaries has led to the value-orientation, there is
since 2001 due to its rapid feeling that there are difficulty in actually
expansion. Work has disparities across implementing this. Further,
become process-oriented subsidiaries. Employees no the value-orientation of
and HR policies inflexible longer feel part of a close- Infosys conflicts with the
and generalized as opposed knit group and don’t feel imperative to increase hiring
to flexible and supported or listened to. for organizational growth.
personalizable.
 The Problem - 3
Misinterpretations and miscommunications

Miscommunication on intentions of Lack of hands-on management. There is

introducing variable pay components. a lack of two-way information flow
Company Intention: higher between managers and employees
compensations for better performing because of managers dealing with
employees. Employee interpretation: expanding responsibilities and increased
company cutting compensation costs. workload.

Miscommunication on Broad-Banding A feeling that perks of initial years

and promotion policies. Created are being revoked. This includes
confusion among employees and change of ESOPs purchase price from
managers. Led to rumors, discontent 5% to 85% of fair market price as per
and lack of trust. SEBI guidelines.
The Solution
Three criteria must be kept in mind while
designing a solution to Infosys' problem
Step 1 Communication

1. It must increase employee satisfaction

2. It must not compromise the financial
performance of the company Step 2 Hands-on management
3. It must be in line with Infosys'
organizational values.

We identify the following steps that

Step 3 Learning and Development

Infosys should take.

Step 4 Emotional Bonding

 Communication
Several problems in the organization may be resolved if there is
clear communication with employees.

Major policy changes should be announced by senior leadership like Mr.

Narayana Murthy, someone that the employees draw inspiration from. The
focus should be on what these policies mean for employees.

Re-emphasize employee-organization bond in initiatives like variable pay.

Communicate to employees that the organization and the employees will grow
together.

Conduct boot camps for clear communication and explanation of new HR policies
where employees can discuss concerns. Merge information sessions with bonding
exercises and social work to take a first step towards rebuilding the Infoscion.
 Hands-on management
In the long term, communication problems may be conclusively resolved through a more hands-on
approach to management. This would enable a constant flow of information from lower-level employees to
mid- and upper-level managers and enable better communication.

Human Resource Planning. Reinstate an open-door Make retention metrics

Increase hiring at the management policy. part of the performance
managerial level to meet Encourage employees to appraisal of managers.
organizational needs. While air and discuss their This would incentivize
this would involve some grievances and make managers to listen to
investment, the costs of management accessible to employees and take
high attrition may prove to employees again. steps to address
cripple Infosys growth in the problems with work etc.
long run.
Learning and  Infosys should create a program where
Development both working and benched employees
can work on mini-projects and seek
Adding value to the employees to add feedback from mentors.
value to the company. This achieves  Use these projects as metrics for
two objectives: promotion purposes and involvement in
sought-after projects.
Infosys develops its human
capital to achieve its
 Provide additional incentives for
organizational objectives
innovative solutions to the company's
problems.
 Rotate employees between projects,
The employees can develop giving top performers the chance to
their skills and add value to choose a project of their liking.
themselves as professionals
 Rebranding the work
Infosys should attempt to guide employee empowerment by rebranding the work that they perform.
There are two aspects to this:

Impact and purpose Communication

Encourage managers to show Communicate the job
employees how their work requirements and expectations
enables Infosys to deliver upfront to engage in
world-class solutions to clients. expectation management and
Each employee must be shown give employees the autonomy
the impact they create for the to choose where and how they
organization, and how their role want to work.
fits into the bigger picture.
 Emotional Bonding
The management should focus with renewed vigor on rebuilding the emotional
connect between employees and Infosys.

Build on Infosys’ strong base of trust- Build employee-organization trust through

building activities. Make these more initiatives like financial literacy workshops
accessible to employees and encourage and centers which offer investment and
employees and their managers to tax-saving advice to employees.
participate together.

Conduct bonding exercises across Conduct value-based induction programs

subsidiaries and functional units. for experienced employees as well as
Empower employees across Infosys to freshers. This enables Infosys to relax
see themselves as ‘Infoscions’. culture-fit criteria to some extent while
ensuring that employees are in
congruence with its values.
 Outcomes
The most important outcome here is the establishment of good communication
between management and employees. This is the first step towards reestablishing
trust and information flow in the organization.

By retaining Infosys’ HR changes and focusing on trust-building, this plan of action

remains practical in the new context of organizational expansion. This keeps the
plan financially viable. In the mid to longer term, these initiatives will higher
productivity and lower attrition rates, contributing to Infosys’ growth.

This would further enable Infosys to stay true to its objective of adding value to its
employees – professionally, personally, emotionally.
Thank You