MOTIVATION

CASE STUDY





SUBMITTED BY:

GROUP NO: 03


NAMES: ROLL NO:


1. ANKIT SHUKLA 31
2. BAIJAYANTA DEB 08
3. BOSKI TOLANI 37
4. SUNNY SOPAL 34
5. SANJAY THAKUR 36






05-Oct-13
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CASE STUDY: MOTIVATION
CRISIS IN SATYAM COMPUTER SERVICES

Satyam Computer Services had been the fourth largest provider of information technology
services in India, based on the amount of export revenues generated. In 2008, Satyam claimed
top line growth of 40% to $794 million at 36% gross margin.
In 2009, as the infamous Satyam scandal broke in the media, Chairman Ramalinga Raju
confessed that he had manipulated the accounts by US $1.47 Billion. He resigned on 7 January
2009. Indian media reported that financial reporters had dispatched investigators to Hyderabad to
launch a formal investigation into the case. Price water house Coopers was the statutory auditor
of Satyam Computer Services when the report of scandal in the account books of Satyam
Computer Services broke. The Indian arm of PWC was fined $6 million by the SEC (US
Securities and Exchange Commission) for not following the code of conduct and auditing
standards in the performance of its duties related to the auditing of the accounts of Satyam
Computer Services. This scandal shocked the global corporate community. Leading members of
Indian Industry also expressed their shock and disappointment that such an audacious act of
deception could take place.
Satyam's shares plummeted on the news by 75% dragging down Indias stock market by 7%.
Shares fell to 11.50 rupees on 10 January 2009, their lowest level since March 1998, compared
to a high of 544 rupees in 2008. Indians main stock exchange had announced they were
removing Satyam Computers from their indices as of January 12 because of the stunning
revelations.
On 13 April 2009, via a formal public auction process, a 46% stake in Satyam was purchased by
Mahindra & Mahindra owned company Tech Mahindra, as part of its diversification strategy.
Effective July 2009, Satyam rebranded its services under the new Mahindra management as
"Mahindra Satyam". After a delay due to tax issues Tech Mahindra announced its merger with
Mahindra Satyam on 21 March 2012, after the board of two companies gave the approval.

The
companies are merged legally on 25 June 2013.
Anuj Sachdeva who was working as a software engineer in Satyam, started feeling very insecure
due to the blatant fear of losing his job. The company was about to reach insolvency and
employees were being laid off.
Rahul Paranjpe is the Senior Project Manager of the Finance and Insurance Unit at Mahindra
Satyam Ltd. Anuj Sachdeva now directly reports to Rahul after the takeover of Satyam. After
observing Anuj for several days, Mr. Paranjpe comprehended that there was a vivid lack of
motivation and noticed some amount of vulnerability in Anuj. He approached Anuj and
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discussed what was keeping him from delivering his best work. After much deliberation and
resistance, Anuj insinuated the sudden change in management; unfamiliar policies and an alien
work culture had put him in a very ambivalent state and lost the zest for work because of his
insecurities. These insecurities stemmed from the very beginning even when Satyam became
Mahindra Satyam bearing testimony to the fact that Anuj was extremely skeptical about the
future of Mahindra Satyam because even after the acquisition, share prices had not recovered as
was expected to. The Global Recession which had set in 2009 had already set the ball rolling in
instilling fear in the minds of the employees worldwide and was a massive de-motivation
catalyst.
Discussion Questions :
1. Bearing in mind the gravity of Anujs situation, what are the responsibilities of the
manager in this regard so that Anujs insecurities and apprehension about his job can be
addressed?

Facilitators guide :

This case is a classic example of how employee motivation follows a downward spiral as
companies face recession, are on the brink of bankruptcy or are acquired by a new company.
Here we have discussed doomed company Satyam Computer Services ltd. which had followed a
similar pattern following fraudulent activities by its founder. In this scenario, the tough task
which lies ahead is to regain investor confidence, win back the trust of existing clients and scout
for new clients. The faith of employees also has to be restored to ensure sustained productivity
and it is at the discretion of the respective managers how to tread this path and foster a positive
atmosphere in the workplace.

Bearing in mind the gravity of Anujs situation, what are the responsibilities of the manager in
this regard so that Anujs insecurities and apprehension about his job can be addressed?
1. The manager in order to alleviate the messy situation and salvage Anujs confidence
should convince him of the bright future that lies ahead and talk of new projects that are
in the pipeline. He could also lay out the prospective clients which are ready to associate
with the company.
2. The merger and acquisition policies should also be explained in detail so that Anuj is not
oblivious to the new policies which have currently placed him in a classic catch-22.
3. Thirdly, it is also imperative to clarify that Mahindra is already a huge player in the
market and with this acquisition, the company will go to greater heights and future is well
secured for employees, thus relieving Anuj of any inner turmoil or anxiety about his own
personal growth in the company.
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4. Finally, talking about the global recession, the manager should logically point out that
this economic catastrophe has hit each and every company on the map and thus
Mahindra-Satyam is no audience to this epidemic. As the global economic condition
improves, Mahindra-Satyam would also see a marked metamorphosis only for the better.