Strategic Hrm In Infosys Essay

5368 words - 22 pages

9-406-010
REV: OCTOBER 16, 2006

THOMAS J. DELONG

Infosys (A): Strategic Human Resource Management
How do you feel when you look around and realize that 80% of your colleagues have been in the company
for less than 24 months?
— an Infoscion
On November 13, 2003, the HR leadership team led by Hema Ravichandar, head of human
resources for Infosys Group, left the conference room with a mixture of excitement and apprehension;
a feeling that, they decided dryly, was familiar after a strategy meeting with the chairman and chief
mentor of the Infosys Group, Narayana Murthy, and the CEO, Nandan Nilekani.
The cofounders had set a new and aggressive milestone for the HR group, the latest ...view middle of the document...

It had been one of the first Indian companies to grant stock options to its
employees—making, the legend goes, millionaires out of peons during the dot-com stock market
boom. It had been ranked No. 1 in the Business Today Best Employer Survey both in 2001 and 2002.

________________________________________________________________________________________________________________
Professor Thomas J. DeLong, Jaya Tandon (MBA 2005) and Ganesh Rengaswamy (MBA 2006) prepared this case. HBS cases are developed solely
as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or
ineffective management.
Copyright © 2005 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical,
photocopying, recording, or otherwise—without the permission of Harvard Business School.

Purchased by Ana San Roman (anyasr@gmail.com) on July 26, 2012

406-010

Infosys (A): Strategic Human Resource Management

So it came as a rude shock when in 2003, Infosys toppled from the Best Employer List in the same
Business Today Survey. The results caused great commotion in the industry, and reams of newsprint
were devoted to analyzing the “downfall” of the poster child of the Indian software industry.
As Infosys continued its heady growth, the HR leadership needed answers to prevent crises like
this one from recurring. But there was no beaten path to tread and no role model to follow.

The Birth of Infosys: 1981
Narayana Murthy was born on August 20, 1946. He was the son of a schoolteacher and was one of
eight siblings. He grew up in a typical Indian middle-class environment, which placed great
emphasis on education and values.
The 1950s and 1960s were the heyday of socialism in India, and Murthy was attracted by the
socialist idea of equality. The government had control of the “commanding heights” of the economy
and had put protectionist policies in place. The reigning idea was to manage the economy so as to
redistribute wealth and remove inequality.
After graduation, Murthy took a job in Paris and found himself in middle of the student
revolution. He was surprised to find that the French regarded wealth creation as a superior way to
remove inequality as compared with wealth redistribution. When his work in Paris was completed,
he hitchhiked back to India over the next year, living on the $450 he had saved. His travels through
Eastern Europe showed him the realities of communism, where instead of happy comrades and an
efficient state, he found repression and an often-frightened populace. He was even briefly imprisoned
in Bulgaria over...

Other Papers Like Strategic Hrm In Infosys

Interclean Essay

2542 words - 11 pages organizational change in the company, the HRM department should communicate with the employees. They should be explained about the need for the change, which will motivate the employees to get committed for the change and support the change process. The CEO has made the decision in implementing the new model and merging successfully with the Environtech within 90-180 days. By contacting the Human Resources Management (HRM), they would provide a strategic

Organisational Behaviour And Hrm Essay

591 words - 3 pages traditional practice of personnel management and industrial relations. Assess key areas of HR practice, such as strategic planning, resourcing, development, motivation and reward. Analyse and evaluate HR practice in contemporary work situations, coming to critically argued conclusions and recommendations. Indicative Content Nature of Organisational Behaviour Theories of organisations, alternative approaches to management including

Hrm Training

1266 words - 6 pages organization. HRM plays a large role in career development, as HRM can help create the goals and determine the strategic plan for the organization. Helping to ensure to mold and train an employee and help to develop their career will help to retain and attract employees. HRM is an integral function of an organization and an employee’s career development. Personal Career Development As the workplace grows and the

Functional Areas Of Business

930 words - 4 pages filled by the human resources management team (HRM). This management role is tremendously challenging and forged with various members within the organization, mostly with managers. This is due in part because the HRM team staffs the manager with prospective employees. The HRM staff have a crucial role within the organization to hire “employees who share the company values, proving their expertise in business and an appropriate moral profile

Saving Starbucks Soul

444 words - 2 pages Case Study – Saving Starbuck’s Soul 1. What are some of the HRM issues inherent in Howard Schultz’s concerns? There are some Human Resource Management issues inherent in Howard Schultz’s concerns. The first issue is to develop a performance management system that makes clear to employees what is expected of them. This system will also assure line managers and strategic planners the employee behavior will be in with the Starbucks goals

Human Resources Policies And Practices

2857 words - 12 pages P1.1Explain Guest’s model of HRM: David Guest's (1989, 1997) model of HRM has 6 dimensions of analysis: HRM strategy HRM practices HRM outcomes Behavior outcomes Performance outcomes Financial outcomes The model is prescriptive in the sense that it is based on the assumption that HRM is distinctively different from traditional personnel management (rooted in strategic management, etc.). It is idealistic, implicitly embodying the belief

An Essay

1286 words - 6 pages Why Do Companies Need a Human Resources Department? Introduction: In order to understand the vitality of the Human Resource department in an organization one must first understand what the Human Resource department is about. Human resource management (HRM), or human resource development, entails planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an

Paficic Brands

332 words - 2 pages more important to have strategies, policies and processes in place that enable a MNE such as Pacific Brands to operate more efficiently. A significant aspect in the management of a MNE relates to the area of strategic international human resource management (SIHRM) which is defined as HRM issues, functions, and policies and practices that result from the strategic activities of a MNE and that impact the international concerns and goals of those

Hrm 300 Final Exam

2243 words - 9 pages hiring and employment practices. b. Jobs have become more technical and require employees with more knowledge and skills c. Teamwork has become more prevalent. d. The number of employees working from home has increased. e. Job boundaries are becoming more blurred. 11. To assist the organization in its strategic direction, which of the following HRM must not do? a. Attract and retain the most

Mr Tony Gao

1273 words - 6 pages | | | |assess the implications for line managers and employees of | | | |developing a strategic approach to HRM | | |Understand the ways of developing flexibility within the |2.1 Explain how a model of flexibility might be applied in practice

Hrm Locog

1045 words - 5 pages Realistically looking at every organization today, the use of Human Resource Management is unavoidable, regardless whether it is to a profit or non-profit organization. Human Resource Management (HRM) has been defined as “a strategic approach of managing employees relation which emphasize that supporting people’s capabilities is critical to achieving competitive advantage, this being achieved through an distinctive set of integrated employment

Related Essays

Difference Between Personnel Management And Human Resource Management

1019 words - 5 pages management of people at work’ and can be regarded as a ‘departure from (the) orthodoxy’ of traditional PM. In his theory Storey outlines the differences between PM and HRM under four factors which are beliefs and assumptions, strategic aspects, line management and key levers. Under these 4 factors he discusses that aspects of PM and HRM including level of trust between employee and employer, employee commitment, the unitarist versus the pluralist

Hmr 300 Essay

748 words - 3 pages the contribution of the employees to benefit both the company and the employee. This goal is complicated and always changing as the needs of the workforce and the organization change. According to (DeCenzo & Robbins, 2007), HRM has two primary responsibilities: assisting the organization in its strategic direction and representing and advocating for the organization’s employees success. Human resource management has many additional functions such

Human Resources Essay

4695 words - 19 pages acquiring and deploying human resources effectively and efficiently is difficult and takes longer time. (Wright et al., 1994). Strategic Human Resource Management: Human resource management (HRM) involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization. HRM is strategy-focused, i.e., by itself it is strategic in nature. HRM at strategic level is SHRM

Shrm Essay

5300 words - 22 pages firm in improving performance. Therefore, empirical support is obtained for the efforts at aligning HRM practices with firm strategy and firm performance. (recruitment, development, etc.) share the same basic character and play a similar kind of role in relation to strategic management (Luoma, 2000: 771). Effective HRM strategy systematically organizes all individual HRM measures to directly influence employee attitude and behavior in a way