Infosys Case Analysis Essay Example for Free

Infosys Case Analysis Essay? Case analysis infosys account structure We drop approached the case by first analyzing the identified come forwards, and then associate root causes to those issues. bargonly to it we choose used two examples, Web of Change and Hewitt trounce Employer Characteristics, to theoretically assess the weaknesses in Infosys human beingskind Resource and Change Management policies. These frameworks can be used by cheeks to better plan their shift focus and human resource management initiatives.We have used Hewitts Best Employer Survey, to recognise 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 argon complementary remainders, and its difficult to achieve iodine 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 Empl oyer objective. most infosys Infosys is the second largest Indian IT software services company.Infosys has reached pinnacles of success in short gallus of 20 years, by innovative commerce strategies and human resource practices. Currently it is facing challenges around rapprochement between line of reasoning growth and employee satis accompanimention. About its business Model Infosys delivers IT services to its invitees 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 execute in locations which provide best combination of cost and talent.Project teams are spread across client site and onshore 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 i ntensive industry and the challenge is exacerbated by the fact that more or less of the resources are utmostly skilled professionals (engineers, MBAs, computer scientists etc). Being an industry where human resource is your only plus and your only competitive advantage, managing, ssues and first Cause analysis In this section well 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 menti hotshotd in the case is symptomatic of gaps in general principles of leadership, reassign 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. as yet, diverging from the basic principles of Change management, leadersh ip, communication and employee development in implementing new policies is what led to its fall in Best Employer ratings. communication channel Options started lacking luster to the new employees and created faithfulness imbalance among employees Stakeholders involved New Employees discontent Impact unfairness of income/wealth effect in the company which created tension between employees.New employees who had seen Infosys from removed as an organization committed to fairness, equity, and employee wealth creation got disenchanted. Root Cause Failure to Manage Expectations This issue primarily arose because of im comely expectation setting of new employees. Infosys kept on using stock options and the millionaires stories as branding activity, scour when stock options were no more an incentive to new recruits. Company should have made it very constitute about its new compensation philosophy when it discontinued ESOPS. 1. Managing scale and attrition risk Stakeholders involved Em ployees ManagersDiscontentment Impact Infosys was growing at a speed where it was doubling its organizational strength every(prenominal) 1-2 years. However organization was plagued by advanced attrition rate. Employees tangle lack of motivation, due to repetitive process tasks, which the business model demanded. Due to risque growth, a lot of employees moved up the managerial ladder, but lacked proper training and orientation and hence couldnt connect to employees Root Cause Lack of Employee fulfillment ( from the origin ) Detached Lleaderships To stress on the need for the above two, well give two examples from Indian public sector. Indian RailwaysIndian railways has recently transformed itself into a highly profitable organization, and according to the officer on special(a) with Railways, single most critical factor which contributed to this success is contact and commitment of employees of railways despite having a unequal compensation structure. Employees of Indian railw ays take great pride in their work, since they believe they are contributing to the campaign of the countrys biggest infrastructure and are responsible for transporting of 2 crore customers every days. This association with organizational goal and pride in your organization is what makes an organization for perpetuity.Due to changing business needs, Iinfosys couldnt connect to its employees in motivating them. Indian Army A unit commander in the army is able to renovate its soldiers to give up their life, compensation etc notwithstanding. The only precedents soldiers are so committed, is their immediate leader. It depends on the unit commanders ability to connect to his soldiers, motivate them and show a genuine concern for their wellbeing, is what motivates the soldiers to do the unbelievable for their leader. According to research in human resources field, the great unwashed leave managers and not companies.The leadership skills of managers are the sterling(prenominal) sourc e of employee fulfillment at work. Lack of engagement and commitment of managers towards their subordinates, was probably the single biggest reason for high attrition rate at Infosys. 2. Strong formalization and process orientation, which came as part of growth, took away bandwidth to inaugurate from employees. Stakeholders involved Employees Discontentment Impact Employees who were used to getting the thrill and satisfaction from using their skill on technical challenges were feeling cocooned because of new process driven and re-use methodology.Similar impact was observed in people policy issues. All personal policies were getting more and more formalized. Root Cause Lack of employee indigence Resistance to change One of the basic principles of organization design is that you dont use unanimous formalization from highly skilled agents (employees). Formalization is for low skilled repeatable tasks. Infosys should have come up with business models aimed at high end, value added ser vices much earlier. This would have kept its inherent talent not only motivated but better utilized for higher margins.In 1990s move away from body shopping to GDM provide this opportunity, but in early to middle 2000s, Iinfosys couldnt create itself. Formalization in organizational policies when it grows out from entrepreneurial stage is inevitable. Its actually needed to match consistent implementation of policies and create a sense of equity and fairness among employee. Dissatisfaction on this front could be attributed to resistance to change, and hence effective change management principles should be employed for disruptive changes. 3. Introduction of multivariate turn out Stakeholders involved EmployeesSenior Management HR Department Discontentment Impact Variable pay was received with a lot of skepticism by the employees, fearing that it was introduced to reduce their compensation Root Cause/s Change Management Failure Lack of Leadership engagement Communication Failure T his was probably one of the most disruptive changes introduced by Infosys. The amount of skepticism and distrust displayed by employees was a first in Infosys. Immediate reaction of employees was that this policy has been introduced to cut employee costs to satisfy shareholders demand for higher and higher profitability.The fact that a vast majority of senior management were shareholders in the company added to employee distrust. There was no pellucidness among employees how this policy will pan out. A lot of employees were not comfortable in linking their performance to factors outside their control (market conditions, decision taken by management etc). Also since the amount of variable component was high (more than 50% for project managers and above), employees could not understand how much their monthly take home were.This is a spotless case of failure in change management and involvement of leadership at every level. Infosys information on variable payout shows that most of t he time company has delivered 100% payout and even higher percentage to high performers. So employee skepticism bore from lack of clarity and communication on this policy. Lack of clarity, communication and involvement of employees was to such an extent that even middle management was taken by surprise by this policy. numerous managers, who couldnt jimmy the policy implementation, were reluctant in communicating the changes to the employees.For an employee first point of contact for miniature is his/her immediate line manager, hence its important to fully equip leadership at every level with information. To understand the role what leadership plays in motivating, retaining employees, we should look at armed forces. Unit commanders are able to motivate their employees to give their life, despite the fact that compensation package of soldiers is one of the lowest. This commitment in subordinates comes because of total commitment of their leader in engaging with them and motivating w ith them.Immediate line managers are the biggest reason employees leave an organization and are also the main reason employees go beyond their capabilities to outperform. 4. Retaining Organizational close with fast track growth Stakeholders involved HR Department Employees Discontentment Impact Due to business growth imperatives, and its business model, Infosys was doubling its employee strength every 1-2 years. To accommodate this type of growth, it had to lower its hiring standards and quality and finis was a victim of this. Root Cause/sLack of Employee on boarding ( orientation) planning This issue had an impact on multiple facets. It led to a feeling disenchantment in existing employees, as they felt their brand equity in the market was getting diluted. New employees, who were not able to deem infosys inherent culture, didnt felt comfortable and had a feeling that the organization is biased toward old employees. Root cause of this issue was that although organization had chan ged its selection criteria, it didnt change its employee orientation strategy, or training methodology.Infosys should have changed its orientation program to be more customized offering for similar group of employees and using existing employees as mentor to help develop organizational culture and values in new employees. Similarly if you are hiring for quantity and not quality, it should have modified its training plan to be more exhaustive. 5. Broad isthmus and promotions Stakeholders involved Employees Discontentment Impact Lack of faith in the organization Chaos and confusion in employees minds Root Cause/s Change Management Communication LeadershipThis policy again created a lot of employee discomfort since they didnt knew the details of change. Its again a classic change management failure. Although the policy was designed to bring more clarity in role structure and bring equity amongst similar roles, across the organization, poor communications created fear and scientism in minds of people. We can observe from the reinvention of Indian Railways, one of the reasons organization could progress on the growth trajectory, was employee commitment to the cause of Indian Railways, despite of low compensation.Employees felt proud to be part of the worlds biggest railways and were motivated to excel. Some of the senior managers lacked clarity about policies, hence they were apprehensive of clarifying the policy. This shows a major organizational failure in terms of change management and engagement of leadership with people. Similarly as discussed above, since employee appraisal parameters were not clearly defined, an employee could not appreciate how his/her appraisal going to impact promotions? Web Of Change Change Management FrameworkTo do strengthen our above understanding of issues at Iinfosys, we used Web of Change, a change management framework to understand the change management issues at Infosys. Web of change is the framework proposed by Stephen Thoma s. This model defines 8 change particles as shown below and the web of change helps us to see how the values of each element changed during the Organization Change process in Infosys. The baseline score is the value of the Change elements in Infosys during the laurels years of 1990s and the re-assessment scores the value of the same change elements in the 2000s when Infosys was going through the Growth pangs.