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Infosys-A Case Study Decision Sheet

The HR team at Infosys led by Hema Ravichandar was feeling excited and apprehensive after a meeting about improving employee performance and awards. Infosys had experienced rapid growth from 250 employees in 1992 to over 15,000 in 2002. However, this growth led to issues like employees feeling less creative and personalized work was being eliminated. The HR team tried to address this by making work more enjoyable and purposeful through initiatives like health programs and hobby clubs. However, some changes like reducing stock options value and making compensation more variable led to doubts about motives and employee unhappiness. Strategies to address problems included surveys to understand employee satisfaction levels and engagement activities to improve commitment.

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0% found this document useful (0 votes)
410 views3 pages

Infosys-A Case Study Decision Sheet

The HR team at Infosys led by Hema Ravichandar was feeling excited and apprehensive after a meeting about improving employee performance and awards. Infosys had experienced rapid growth from 250 employees in 1992 to over 15,000 in 2002. However, this growth led to issues like employees feeling less creative and personalized work was being eliminated. The HR team tried to address this by making work more enjoyable and purposeful through initiatives like health programs and hobby clubs. However, some changes like reducing stock options value and making compensation more variable led to doubts about motives and employee unhappiness. Strategies to address problems included surveys to understand employee satisfaction levels and engagement activities to improve commitment.

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RAW STAR
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Decision sheet Infosys A

Case summary

Protagonist-Hema Ravichandar Head HR Infosys

Problem statement- Infosys getting Good employee and best employee performance award Position
Top 10.

Case facts.

The HR leadership team led by Hema Ravichandar, head of human resources for Infosys Group, left
the conference room on November 13, 2003, feeling a mixture of excitement and apprehension.
They later determined that this feeling was familiar after meeting with Narayana Murthy, chairman
and chief mentor of the Infosys Group, and Nandan Nilekani, CEO.

The painful and humiliating experience in 2003 that had made Infosys painfully aware of the
problems ahead as it moved from a small to a large corporation came to mind as the team left the
conference.

Since Ravichandar joined Infosys in 1992, the Indian software sector and Infosys have experienced
growth.

Infosys had a compound annual growth rate of 65% from March 1993 to March 2003, and company
revenues increased from US$ 5 million to US$ 754 million (Exhibit1).

From 250 employees in 1992 to more than 15,000 in 2002, it had added personnel at a similarly
impressive rate as it had grown.

Infosys has long understood that its employees, or "Infoscions," are the driving force behind its
exceptional performance.

Between November 2022 and April 2023. Infosys (A): Economic Liberalization and Strategic Human
Resource Management Although the founders chose to remain as a unit, they also understood the
need for a significant change in strategy.

The unexpected external boost of the Indian economy's liberalization came after this newfound
internal push, which helped pave the way for spectacular success.

After the elimination of government-dictated pricing for new equity shares, Infosys turned to the
Indian capital markets for its IPO in 1993.

The Transition to Offshoring from Body-Shopping Inspired by its near-death experience to revaluate
its approach, Infosys became one of the leaders among Indian enterprises to focus its work from
onsite "body shopping" to offshore development centres. The founders' original ambition for the
company had been "offshoring" (ODCs). Offshoring suggested that the software firm would manage
the project instead of the client, a risk that clients had previously been loath to accept.

Third, we have created a very effective health platform.

So, we developed a platform called HALE (Health Assessment and Lifestyle Enrichment) and provided
expert counselling, stress audits, yoga sessions, and health checks for our staff on corporate
grounds.
Fourth, we established hobby, cultural, and sports clubs that host weekly events like learning to
dance or a Beatles fan gathering to enable employees to follow their interests.

The discrepancy in expectations across the employee hierarchy had grown extremely complex as a
result of the company's rapid growth and the skyrocketing number of employees.

Up to the early 1990s, Information Services got employee stock options for 5% of fair market value.

The subsequent generations of Infoscions had similar hopes but were disappointed when Infosys
was forced to grant future ESOPs at 85% of fair market value by the SEBI (the Indian equivalent of
the SEC).

Case problems

There were two other troubling factors with the company's growing size:

(1) Employees felt they were losing the creativity and technical innovation inherent in their work
during the earlier years as Infosys grew more process-oriented and began leveraging its experience
to deliver repetitive projects.

(2) Employees believed that some of the benefits from the early years were being eliminated and
that the organization was becoming more impersonal.

Strategic Human Resource Management at Infosys, Making Workplaces Fun and Community-
Oriented The HR team at Infosys tried to address employee dissatisfaction by making work more
enjoyable and purposeful.

Because variable compensation produced an earning potential that was significantly larger for a
better employee than for the average one, it also helped to encourage the company's high-
performance work culture.

Given how variable pay was described, some people were dubious of the company's motives and
believed it was a means for them to cut compensation expenditures.

We assign a numerical value to each role based on its contribution to the business and added value.

Now, the decision had been made scientifically through a process of job evaluation, not by the
department head.

The apex of employee unhappiness and contentment at Infosys was attained at the time of broad-
banding.

Analysts of the problems

1. Attrition
2. Employ dissatisfaction.
3. Lack of communication
4. Changes in HR policy.
5. Monotonous work.
6. Lack of creativity.
7. Workforce diversity.
8. Proper job allocation.
9. Body shopping.
10. Company values.
11. Getting proper job orientation understanding. Understanding of company planning reward
system, strategic HR.
12. Trust between the employee and the employers.

Solutions for these problems

1. ESS. Employee satisfaction survey. In this different kind of service can be passed on to
employees to understand their. Level of commitment towards that. Organization and all.
And also, we can understand how well we are doing our work and engaging the employee
and satisfying their needs.
2. ESI. Employees satisfaction index. And this we can understand and compare how well. How
well our employees are getting.In numerical by comparing with other companies.
3. Employ engagement activities. In which we can see the discriminately behavior, which can
only lead to employ engagement, where the employee is committed to the company and its
core values, where he can perform without feeling a pressure. And understand what
companies ethics, morals are.
4. Employ Empowerment. And this we can give power to the employees of decision making.
And taking over certain task and giving them freedom to work. To work according to their
needs. Of the organization. Core values and vision.
5. Training and development. This can strengthen the channel of communication between the
employee and the manager. And HR. An increase the productivity efficiency. And the work
culture.

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