Group 1 D Infosys

HUMAN
RESOURCE MANAGEMENT
Submitted by: (Group-1, Section-D)

Sravya Reddy (20A3HP601)
P.Shiva Raghava (20A3HP615)
Manasi Mishra (20A3HP624)
Shreya Dalal (20A3HP626)
Akanksha Gupta (20A3HP632)
Sumanth Reddy (20A3HP655)
Submitted to:
Prof.B.Pavan Kumar
Students, PGDM (Marketing) at IMT Hyderabad
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© Sravya/Shiva/ Manasi/Sumanth/Akanksha /Shreya | February 2021
Summary
Infosys was founded on 2nd July 1981, in Pune by Narayan Murthy with seven others
named Nandan Nilekani, N.S Raghavan, Kris Gopal Krishnan, S.D Shibulal, K Dinesh,
Ashok Arora. They started this company by investing a small amount of Rs.10000. Now
Infosys is one of the largest IT Companies in the world currently valued at 546,614 crores.
Infosys is the firm believer that Good leadership is one of the key aspects of an
organization's growth and success. In the given case it is discussed that Infosys was ranked
No.1 in the Business Today Best Employers survey for the year 2001 and 2002 But in the
very next year, it toppled from the list. This was really shocking for the management and
caused a great commotion in the industry.
After this heavy blow, although Infosys growth was continued but HR leadership was in
questions and they had to plan a strategy that could prevent the crisis like these from
recurring in the future. Hema Ravichandar Head of HR for Infosys oversaw handling this
matter with a new and aggressive milestone of re-achieving their position in the top
employers' list. Founders of Infosys believed in instilling core values and beliefs for the
company and wanted employees to accept to it as well through the acronym “C-LIFE”:
Customer delight, Leadership by Example, Integrity and Transparency, Fairness, and
pursuit of Excellence.
They have conducted an internal survey and found that employees' dissatisfaction has been
increased. There were issues in managing the expectations of the employees and
communicating within the organization. Employees' creativity was affected because of
their repeatable projects. Employees' perception of the company has changed, and they felt
like Infosys has become impersonal. In the 2001-02 downturn, there were more employees
than the projects and it caused more frustration among the employees as well as increased
the cost for the organization too. Infosys had always promoted based on individual
performance and seniority which was somewhat partial. Seniors and middle-level
managers were not aware of the changing scenarios of employees at lower levels which
was affecting the reward system at the lower level of the organization. After analysing and
understanding the situation the HR manager has concluded that in 3 ways, we can add
value to the employees which are:
o Learning value add through training.
o Emotional value adds through the working environment.
o Financial value adds through compensation and benefits.
Q1.What is the assessment of the initiative taken at Infosys?
To combat the brewing tension between achieving high-performance metrics and employee
satisfaction metrics, the company came up with specific policies:
A lot of employees were pledged towards the firm as the company was also loyal to them.
Infosys created Many systems, programs, and podiums to give opportunities to the
employees to increase employee satisfaction levels.
The initiatives taken by Infosys are
1.Emotional bonding:
● There were two channels of grievance resolution mechanism, form and informal
● Infosys provides a lot of support to its employees during emergencies
● HALE (Health Assessment & Lifestyle Enrichment) under which employee health
check-ups, yoga classes, stress audits, and professional counselling was given to the
employees.
● Employees had the opportunities to pursue areas of interests at clubs and events
● It was also the first Indian company to come up with an Employee Stock Option
Plan (ESOP) to:
1. Share Option Warrants issued to employees which vested over five years
2. Highly Profitable Reward System
3. Method of Generating Wealth for the company
4. Provides emotional and financial ownership to employees
5. Management Tool for attracting & retaining talent
6. Win loyalty, commitment, and accountability of employees
2.Creating fun and community empathy at the workplace:
Infosys recognized that most of its employees were freshers to create a holistic workplace
environment and transition from academic life to professional life. It also came up with
events like DJ Nights, Dances, Quizzes, and Debates. The satisfaction of the employees
reflects in their performance. Therefore, the implementation of the policies mentioned
above effectively would help immensely.
3.Managing scale and attrition risk: It introduced an extensive & detailed Induction
Process different for both freshers and laterals.
4.Variable pay: variable pay was applicable across the organization with three
components company performance, unit performance, and unit performance, which helped
emphasize the company's performance work ethic. variable pay created an earning
potential that was much higher for a better employee than for an average employee
5.Broad Banding: Infosys made changes like the introduction of a variable pay structure
across the entire organization, flattening the organization by removing eight of its fifteen
layers, and a promotion policy that depended on the needs of the organization rather than
solely on the individual's performance and seniority, Infosys remained high on the Best
Employer lists in 2001 and 2002.
6.Promotion policy: the promotion policy emphasized the company's needs rather than
employee seniority, depending on factors- individual performance, ability to fulfil the next
role, and a particular position in the company, which helped them have only employees
that were required
The HR team at Infosys made several attempts to make the workplace fun oriented. It
continued to focus energy and resources on keeping its employees happy but shifting to
more process-oriented workflow-driven employees feel deprived of creative thinking.
Mangers were unable to understand the frustration of lower-level employees with less
challenging work. Also, they struggled with effective representation as to their
responsibilities expanded, which ultimately led to a high turnover rate with high employee
costs because of building up and recruiting efforts.
The high-rate turnover then meant that the company was unable to execute work
effectively because everyone needed to be trained on various techniques, quality issues,
and customer interaction skills before being able to work on client projects to ensure a
standardized output, and clients began to demand faster turnaround on projects
Q2.What advice would you like to give it to Mrs. Ravichandar?

Change in any organization need to be planned properly and executed wisely. In the case of
Infosys, we could see that in the present year of ’03 it added nearly 50% of new talent to
their nest. This newly inducted employees represent nearly 36% of the total human
resources of the company. It provides an unique opportunity to the HR team to carry out
the induction process quite effectively by exposing them to the core values of the company
through the value champion program, but it seems that company is trying to hire more
organizational fit members and losing out the talent who are not cultural and value fit to
the organization. This could be overcome by training the new joiners and giving them
enough time to get accustomed to the company’s culture by helping them to socialize with
the co-workers.
Whenever a change is being introduced, personal factors like economic and routine affects
the individuals in which employee worries about the income especially when their salary is
tied with the performance and to reduce the uncertainties in their life, they create a routine,
this resists the change. This is exactly happening in the company when they introduced the
variable pay to encourage the high performers and to increase the employee retention,
some of the employees are unable to comprehend the correct motto of this change. There is
also another resistance to change in-terms of the certain senior expertise groups, since the
promotion policy has changed and taken the seniority away from the policy and introduced
other conditions to give promotions in order to reduce the fat in the organization. This has
also created dissatisfaction among the employees. To address the issue, they shifted the
focus to system and strategic focus to reach the goal of becoming top 10 employer in both
performance and employer. To do this HR team need to properly communicate the changes
introduced, this helps them in making employees understood why these changes were
taken at the first sight and reduce the ambiguity in employee, need to increase the
participation of employees in the decision making, since employees are involved in
decision making it reduces their resistance to change thereby increasing the job
satisfaction. When they started to implement the change, care should be taken that it is
being implemented transparently and gradually in-order to increase to the compliance from
the employees. Proper training should be given to the employees who are underperforming
so that they could perform well and realize the value of variable pay policy. In terms of
promotion necessary training and additional responsibilities to be given to senior
employees about their future roles, so that they could appreciate the changed policy in
promotions and will be well prepared for their future roles.
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HUMAN

Submitted by: (Group-1, Section-D)

Students, PGDM (Marketing) at IMT Hyderabad

The initiatives taken by Infosys are

Q2.What advice would you like to give it to Mrs. Ravichandar?

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