Download - Final Infosys
NARAYANA MURTHY AND INFOSYS
Case Study.
PRESENTATION PLAN
• Objective of the Case.• Introduction to Mr. Narayana Murthy and INFOSYS.• Key Qualities of INFOSYS. • Human Resource Practices at INFOSYS.• Conclusion.• Bibliography.
OBJECTIVES OF THE CASE…
• To analyse the strategies implemented by Narayana Murthy which made Infosys one of the biggest IT companies in India.
• Brief Discussion Of HR Policies At Infosys.
NARAYAN MURTHY AND INFOSYS
Educational Milestone of Murthy• B. E. (Electrical) from the University of Mysore (1967) • M. Tech. (Electrical) from the IIT, Kanpur (1969).
Career.• Started his career as head of computer system at IIM,Ahmedabad.• Life at Paris.• Headed Patni computer systems Pvt.Ltd., Mumbai.
He believed that the only way to pull India out of Poverty is was to create more jobs.
Infosys.• Started in the year 1981 by seven professional entrepreneurs
Infosys was the first company to,• Push for offshore software development against Body shopping.• To follow the US GAAP disclosure norms before going to NASDAQ listing in 1999.
THE ROAD TO SUCCESS
• In the early 1980s, Narayan Murthy focused on the world’s most challenging market- the US.
• 1987-Kurt Salmon Associates and Infosys.
• 1988-89- Reebok and Digital Equipment.
• Early 1990s-.Competition with Indian as well as overseas companies
• 1994- Joint venture with KSA dissolved.
• 1995- Yantra Corp. Satyam Computers and DCM.
• 1998- Listing of shares on NASDAQ
• This was the globalization of the Indian software industry.
NARAYANA MURTHY’S GLOBAL STRATEGY
• GDM – Global Delivery Model
• Moving up the Value Chain
• PSPD Predictability of revenues Sustainability of the predictions Profitability of revenues De-risking
PEOPLE MANAGEMENT
• All about Managing People i.e. H.R of company.
• Low employee turn over at Infosys.
• Rigorous selection process and Proactive HRD practice.
INFOSYS’S HRM STRATEGY Get the big picture Develop a Mission Statement or Statement of Intent Conduct a SWOT analysis of the organization Conduct a detailed human resources analysis Determine critical people issues Develop consequences and solutions Implementation and evaluation of the action plans
HR Policy
Recruitment Training
Performance ManagementReward and Recognition
IMPORTANCE OF COMMUNICATION
Media• Electronic Bulletin Boards• Chairman’s list
FACILITIES FOR EMPLOYEES
• Employee training• Recreation facilities.• Events.• Insurance and security facilities.• Withinsy• Transport facilities.• Maternal leaves.• Creche facilities.• ESOP.• Reward system.
Strategic Reward Systems
MBAO 6030 Human Resource Management
Culture
Performance Management
Employment
Training
Labor Relations
Rewards
Overtime pay rules incontract
Sign-on BonusMerit Pay
Merit pay reinforces performance culture
Skill-based pay
TYPES OF BENEFITS
• MONETARY
Increments
Compensation
Overtime
Performance - pay
• NON – MONETARY
Promotions
Housing Facilities
Conveyance Facilities
Fringe Benefits
EMPLOYEE STOCK OPTION PLAN (ESOP)
•Highly profitable reward system.
•Method of generating wealth.
•Offers emotional and financial ownership to the employees.
•Performance management tool for attracting and retaining talent.
•Win loyalty, accountability of employees as their own interest is vested into it.
CORPORATE GOVERNANCE
What is corporate governance?
• includes relationships among the stakeholders and the goals for which the corporation is governed
• working ethically
• finding a balance between economic and social goals
CORPORATE GOVERNANCE RATINGS
• Allocation of power among Board of Directors, management and shareholders.
• CRISIL GVC Level 1 & ICRA’s CGR 1 rating
• Transparent shareholding patterns, sound Board practices, interactive decision-making powers, high level of transparency and disclosures.
Director Addressing Share Holders.
GAAP• Combination/set of authoritative standards
• Commonly accepted ways of recording
• Reporting accounting information
• Imposed on companies to report their financial data via financial statements
• Investors can analyze with minimum consistency
LEADERSHIP TRAINING
• Institute setup in 2001• Head of the institute- Girish
Vaidya• Objective- to create world class
leaders at the forefront of the business
• Leaders split into 3 tiers• Each tier mentored by a tier of
senior colleagues• Focuses strongly on quality
processes and methodologies and enhancing managerial capabilities.
• Sessions with senior leaders.
REASONS BEHIND THE SUCCESS OF INFOSYS…
• Employee care• Decision making• Efficiency and effectiveness• Commitment to values and ethics• Innovative ideas• Leadership
BIBLIOGRAPHY
• Essentials of Management- Koontz• www.infy.com• www.indiainfoline.com
Presented By:- Group 1 MBA(HR) 1st year