Case analysis - infosys
We have approached the case by first analyzing the identified issues, and then associate root causes to those issues. Further to it we have used two frameworks, “Web of Change” and “Hewitt Best Employer Characteristics”, to theoretically assess the weaknesses in Infosys Human Resource and Change Management policies. These frameworks can be used by organizations to better plan their change management and human resource management initiatives.
We have used “Hewitt’s Best Employer Survey”, to identify the key initiatives which Infosys should undertake to enable it to reach its target of “Best Employer” by 2011.
Further to it we believe that “Best Employer” and “Best Performer” are complementary goals, and it’s difficult to achieve one without the other, and hence we have identified the key initiatives which can help Infosys to achieve “Best Performer” target without compromising on its “Best Employer” objective.
Infosys is the second largest Indian IT software services company. Infosys has reached pinnacles of success in short span of 20 years, through innovative business strategies and human resource practices. Currently it is facing challenges around balancing between business growth and employee satisfaction. About its business Model
Infosys delivers IT services to its clients globally in a model called GDM (Global Delivery Model). The main characteristic of this model is that it decouples client location and project execution. Project is executed in locations which provide best combination of cost and talent. Project teams are spread across client site and offshore development centers in countries like India, China, and Mexico etc which provide rich availability of talent at competitive cost. Usually teams at client site document requirements and manage client relationship and offshore team manages delivery. This is a human resource intensive industry and the challenge is exacerbated by the fact that most of the resources are highly skilled professionals (engineers, MBAs, computer scientists etc). Being an industry where human resource is your only asset and your only competitive advantage, managing,
issues and Root Cause analysis
In this section we’ll analyze the issues identified in the case and will attempt to identify root causes which led to employee dissatisfaction. After our analysis we believe that issues mentioned in the case is symptomatic of gaps in general principles of leadership, change management and HRM. Policies are not written in blood and stone, and they change over the lifetime of organizations. What should not change are basic organizations principles around human resource management. Our assessment is that policy changes in Infosys were reflective of external environment and business imperatives. However, diverging from the basic principles of Change management, leadership, communication and employee development in implementing new policies is what led to its fall in Best Employer ratings.
“Stock Options started lacking luster to the new employees and created equity imbalance among employees”
Inequity of income/wealth effect in the company which created tension between employees. New employees who had seen Infosys from outside as an organization committed to fairness, equity, and employee wealth creation got disenchanted.
Failure to Manage Expectations
This issue primarily arose because of incorrect expectation setting of new employees. Infosys kept on using stock options and the millionaires’ stories as branding activity, even when stock options were no more an incentive to new recruits. Company should have made it very clear about its new compensation philosophy when it discontinued ESOPS.
1.Managing scale and attrition risk
Infosys was growing at a speed where it...