INTRODUCTION

Infosys, was founded by Narayana Murthy

Along with six others in 1981
Shared a vision of creating wealth in legal and ethical manner
Wanted to create a company of the professional, by the professional and for the
professional
Faced all sort of difficulties for its starting- an obstacle to become a global
company
By 1986, only one client
But Narayana Murthy was confident about Infosys
Faith in the strength of the team, shared values and ability make Infosys as
successful

CASE SUMMARY
In 2001 and 2002, Infosys was ranked highly in the Best
Employers list.
In 2003, the company fell off from the list of the Best Employers.
Internal employee satisfaction survey showed employees are
dissatisfied.
Traditionally, Infosys had been a provider of offshore IT services
including IT management and implementation. Over time, Infosys
started delivering high-end value-added IT services like IT
strategy and design.
Growth in company size from 410 employees in 1993 to 15356
employees in 2003.
In 1990s the employees in Infosys called Infoscions received

STRATEGIES TO IMPROVE EMPLOYEE MORALE

Ensured salaries were in top 10-15% among other companies in the

peer group.
High performance- promotions, variable pay, Managing portfolio
diversity
Grievance Resolution Mechanism was always open informally.
Any medical emergencies happen to employees, Infosys supported
his/her family.
Health Assessment and Life style Enrichment offered employees
health check ups, yoga training, stress audit, professional counseling.
Events were organized to pursue employees interests and hobbies,
like cultural club, sports club.

 Health Assessment and Life style Enrichment offered

employees health check ups, yoga training, stress audit,
professional counseling.
Events were organized to pursue employees interests and
hobbies, like cultural club, sports club.
Infosys provided opportunity on after-work time projects like
outreach programmes to street children or volunteering in
old-age homes.
Events like DJ nights, quizzes, intellectual debates, dance
were organized to make work more fun.

CAUSES OF DISSATISFACTION

Infosys as becoming process-oriented and started leveraging experience to

perform repeatable projects, employees felt they were being deprived of creative
and technical ingenuity that had been inherent in their work during the initial
years.
Employees felt the organization was becoming more impersonal and that some of
the perks of the initial years were being repealed.
Middle-managers and senior managers had disconnect with Infoscions. Managers
could not understand the frustration of the employees, who were doing less
interesting work and were not rewarded properly like the managers.
During the economic downturn in 2001-2002, Infosys made job offers across
campuses although it did not have enough projects. They were not staffed.
Variable pay system based on company, unit, individual performance, introduced
in 2001 received mixed reactions from employees.
Broad banding - communicating the changing HR policies by middle and senior
managers lead to spreading of rumors and fostered misinformation because
managers were confused with the policies.

OBJECTIVES
To analyse the strategies implemented by Narayana
Murthy which made Infosys one of the biggest IT
companies in India.
Discuss HR policies of Infosys, mainly to keep up
employee morale.
To find out
employees.

the

cause

of

dissatisfaction

among

SOLUTIONS
1. To what extent are the Human capital strategies
adding to or detracting from overall goal of Infosys?

2. How do you resolve the tension between high

performance metrics and employee satisfaction
metrics?

3. In the place of Ravichandar how do you decide

whether to discontinue an initiative or to give it time to
produce results?

4. What advice do you have for Ravichandar?

Improve
communication
among
managers
Infoscions.

and

Employee recognition programme- monetary and nonmonetary should be implemented effectively.

Performance appraising should be clear.
Creative projects should be given to employees.
Confusion in the HR policies should be cleared. It should
be clear to the managers as well as employees in the
same manner. Broad-banding should be effective.