Evaluation of Human Resource Management Processes at InfoSys

Human resource management is the strategic and coherent approach to the

management of an organization’s most valued assets – the people working there who
individually and collectively contribute to the achievement of the objectives of the
business. The terms “human resource management” and “human resources” have
largely replaced the term “personnel management” as a description of the processes
involved in managing people in organizations. In simple words, HRM means employing
people, developing their capacities, utilizing, maintaining and compensating their
services in tune with the job and organizational requirement.

“Our assets walk out of the door each evening. We have to make sure that they come
back the next morning.”

Mr. Narayana Murthy ( CEO INFOSYS)

In an era where organizations are debating the strategic importance of their human
resources, Infosys, a consulting and software services organization, includes their
human resources on its Balance Sheet to affirm their asset value. This assessment is to
analyze the various approach Infosys focuses on

1. HUMAN RESOURCE – Selection and Recruitment Process

2. HUMAN RESOURCE- Training and Development

3. HUMAN RESOURCE Performance Appraisal

4. HUMAN RESOURCE- Compensation

And critically analyze them and to understand if the organization has aligned to their
human resource strategy objectives.

2- COMPANY PROFILE
Infosys Technologies Limited (BSE: 500209, NASDAQ: INFY) is an information
technology service company headquartered in Bangalore, India. Infosys is one of the
largest IT companies in India with 113,796 employees as of 2010. It has offices in 22
countries and development centers in India, China, Australia, UK,US, Canada and
Japan., it was voted as the best employer in the country in many HR surveys The
Company is well acclaimed for its employee friendly HR practices. Infosys has grown to
US $ 2 billion Company by the year 2006, it has still retained the culture of a small
company. Infosys evolves from the best talent from across the country and recruits
candidates by conducting vigorous selection process. The company follows variable
compensation structure where the employee’s compensation depended on the
performance of the individual, for the team and the company. 3 Anglia Ruskin University-
0970885/1

Infosys derives its operation from the development, maintenance, and implementation of
software. They cater their services to the following industries

· Manufacturing

· Banking and financial services

· Insurance

· Telecom

· Retail

· Energy

· Transportation

The organizations major competitors are WIPRO, TATA consultancy services, IBM

3- ORGANIZATIONAL STRATEGY
HR practices of Infosys are envisioned by its founders and the culture that has been
predominant over the year. The organization advocates simplicity by maintaining the
culture of the company. The employees are encouraged to share the learning
experience. Infosys was the first company to provide the employees with world class
facilities for training and working. The company treats their employees as fixed asset
appreciates their durability by constant innovative training. In knowledge-based business
significance of consistency is rhetoric and actions are required to empower employees.
The company believes in “youth, imagination and speed” they are constantly innovating
in every area to bring generation next employees.

.
4- SELECTION AND RECRUITMENT
According to Edwin Flippo, Recruitment: “It is a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an organization”

Selection: “It is the process of collecting and evaluating information about an individual in
order to extend offer of an employment”

Recruitment planning is one of the most important components in new people

management organization. Infosys has to deal with human assets as it a knowledge
based organization hence it becomes important to have the right person for the right job.
Infosys believe have to take the recruitment planning in very serious manner to ensure
that we can get best talent in the organization. 4 Anglia Ruskin University- 0970885/1
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OBJECTIVE of Infosys recruitment and selection system are

· Talent acquisition and retention.

· To infuse new blood and improve knowledge base

· To accommodate development of human resources in the country

· Increase pool of candidate and maximize the resources

· Increase the number of quality people in the organization to attain organization goal
and objective

RECRUITMENT, SELECTION POLICY AND

PROCEDURE AT INFOSYS
1) STATEMENT OF INTENT
· Promote a planned, objective approach to undertake recruitment

· Help recruiters to examine the knowledge and skills required for the job

· Help recruiters to assess if candidates represent these requirements

· To implement the organization’s policy on the provision of Equal Opportunities in

employment

2) RECRUITMENT OPPORTUNITY
· The need for the post must be specified by the line manager and credited by the
relevant Director.

· A job description and job specification must be prepared by the line manager prior to
the post being formulated

· The post must be formally evaluated.

· The cost for the post, including the variable costs of the post must be identified by the
line manager. In so doing the need to maintain management costs within prescribed
limits must be recognized

3) OPPORTUNITY ADVERTISING
Draft the advertisement and tailor made for the target audience ensuring it is non-
discriminatory and avoids any gender or culturally specific language. The factors will
include the following:

· job title

· salary and other incentives

· brief summary of post

· brief person specification

· contact person for enquiries from applicants/informal visits

· closing date

· interview date

5 Anglia Ruskin University- 0970885/1

· location

· hours/shift work

· a statement that disabled applicants who meet the minimum selection criteria for the
position will be guaranteed an interview

· arrangements for visits to the job location

4) SELECTION PROCESS
The selection panel will examine how each skill within the candidate specification will be
most appropriately assessed. The method used will be determined by the nature of the
post, but may include a combination of the following

· Panel Interview

· Presentations

· Testing

· In-tray exercises

· Group exercises/discussions

5) DECISION GUIDELINES
· Tests used as part of the selection process should be available to the interview panel
prior to the decision making process.
· Each candidate’s abilities should be assessed against the person specification.
Consideration may be given for the provision of professional and personal development.

· Summary and records of decisions at interview should be made by all panel

interviewers on each candidate and retained by the Human Resources Department.

6) POST SELECTION PROCESS

· Communicate with the successful candidate.

· If the candidate declines the offer and other candidates were deemed by the panel to
be suitable using the same selection criteria offer the next most suitable candidate the
post.

· Communicate with all the unsuccessful candidates at the earliest opportunity and offer
feedback within two days.

7) EMPLOYMENT OFFER
· Acknowledge offer of post to successful candidate and at the same time, request
documentary evidence of their eligibility to work in the specified country

· Keep process managers informed of progress

· Issue written statements on the terms and nature of offer of employment in advance of
the commencement date,

RECRUITMENT AND SELECTION ANALYSIS

The recruitment and selection policies help the management to practice a fair and
clinical procedure of recruitment and selection process. It caters to develop the morale of
every 6 Anglia Ruskin University- 0970885/1

individual who attend their recruitment and selection process. The management believes
that every single candidate who aspires to join their organization is a potential candidate
to dwell within organization.

Infosys follows necessary steps to recruit people on the basis of various factors and to
choose the right candidate. The following are the main factors that are considered while
recruiting new employees.

LEARNING: Infosys give more emphasis on the ability to learn. The ability to derive
generic knowledge from particular experiences and apply the experience during
circumstances

COMPETENCY: Infosys give more value to professional competencies and highlights

academic excellence.

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OTHER QUALITIES: Other qualities include analytical ability, adaptability to teamwork,
leadership potential, communication and innovation skills, along with a practical and a
ability to have a structured approach to problem solving

RECOMMENDATIONS
· Identify the demographics: The level of young and older generation is on a one way
hike, Infosys believes new blood infusion by compromising the existing employees,
therefore the company must have strike a balance between the experience and un
experienced people.

· Internal forms of recruitment or placement is highly negligible at Infosys, the company

can save time and cost on the recruitment and selection process by following the
method.

· Infosys uses agencies for their recruitment process, but prefer to use their own
recruitment procedures. Since the company invests considerably on recruitment and
selection, Infosys should minimize intermediaries.

· The selection and recruitment process at Infosys are time consuming due to the large
volume of candidates; the company must optimize a quicker decision making system or
criterion.

5- TRAINING AND DEVELOPMENT

“Imparting of specific skills and abilities and knowledge to an employee”

It is an attempt to improve current or future employee performance by increasing an

employee’s ability to perform through learning, which is determined by performance
deficiency”

OBJECTIVES of Infosys undertaking training and development are

· Develop the employees’ competency and improve their work performances

· Help grow people within the organization in order that future need of the organization
can be met within the organization

7 Anglia Ruskin University- 0970885/1

TRANING NEED ANALYSIS

TRAINING OBJECTIVES

TRAINING METHOD
IMPLEMENT TRAINING PROGRAM

MEASURE TRAINING RESULT

Technical Training by Education and Research Department

Quality Process Training

The Infosys Leadership System

Personal Effectiveness and Managerial Programs

· Reduce the learning time of employees starting in a new job or appointment or

transfers and becoming competent quickly

· Facilitate learning and continuous improvement

· Meet changing needs of technology, process and culture

TRAINING MODEL AT INFOSYS

APPENDIX 1

(www. Authorstrea,.com)

TRAINING AND DEVELOPMENT PROGRAMMES AT

INFOSYS 8 Anglia Ruskin University- 0970885/1
APPENDIX 2

www.Infosys-careers.com

Management skills have become increasingly relevant for Infosys because of its ever
increasing volume of business as well as its shift towards consulting business. As the
number of projects to be handed has increased, the demand for project management
skills in goal setting, communication, coaching, delegation and team management has
also increased. Invariably the technical personnel are chosen to move to a management
track. This choice is ironic in some ways because the better an individual is in technical
skills (such as writing code) the more likely he/she is to be moved away from using the
technical expertise into a management track requiring management expertise. Technical
expertise provides an individual legitimacy and respect from co-workers making them a
natural choice as a team leader. Within a short time span the team leaders are required
to manage projects, clients and the people working on these projects. It, therefore,
becomes necessary for the individual to abandon their technical expertise – something
that has been very salient to their identity in the course of education and early career,
when they aspire to be smart “techies”, and start collecting a repertoire of managerial
capabilities.
ANALYSIS OF TRAINING AND DEVELOPMENT AT
INFOSYS
At Infosys, training and development is the pinnacle step in building its human assets
where the objective is to match the available skills and abilities to its business
requirements. The training program incepted at Infosys aligns with its objectives by

· Synchronizing learning ability among the people and an organizational commitment to

continuous personal and professional development

· Infosys believes each and every employee will propel a team and make decisions
hence apart from their technical skill; leadership and managerial skill are implemented in
their training

· New and fresher recruits are provided training and development during their probation
period making them accustomed to the organizational or industrial culture

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· Apart from compulsory training employees are given career development path where
other skill sets of the candidates are used.

.
RECOMMENDATION
· The company’s training and development program are highly theoretical or
monotonous; the company should employ practical decision making circumstances,
where direct face off to circumstances can be evaluated.

· It is noted that most of the employees at Infosys are engineers or single graduate
holders, opportunities to hold higher degrees should be enabled.

9 Anglia Ruskin University- 0970885/1

· Most of the training held at Infosys are technical based training, addressing to service
training issue can help the employees gain client management or customer
management knowledge.

6- PERFORMANCE APPRAISAL
A performance appraisal is a part of managing career development.

“It is the process of obtaining, analyzing, and recording information about the relative
worth of an employee to the organization”
Performance appraisal is an act of appreciation of an employee’s successes or failures;
it is a judge of an employee’s personal strengths and weaknesses, and susceptibility for
promotion or further training.

OBJECTIVES performance appraisal at Infosys

· To analyze the performances of the employees over a period of time.

· To comment between the gap of the actual and the desired performance.

· To help the management stabilize organizational control.

· To tighten the relationship and communication between superior – subordinates and

management – employees- the whole management process.

· To identify the strengths and weaknesses of the individuals and groups so as to identify
the training and development needs.

· To provide feedback to the employees according to their past performance.

· Offer information to aid personal decisions within the organization.

· Provide transparency of the potential and tasks to be performed by the employees.

· To arbitrator the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

· To condense the grievances of the employees

PERFORMANCE APPRAISAL AT INFOSYS

Performance appraisal is carried out half yearly at Infosys. A 360-degree appraisal is
carried out for all employees. Appraisals are required from peers, direct supervisors,
subordinates and customers. A minimum of six to seven appraisal reports are collected
for each employee, all of which completed are on-line and the data is maintained in a
central database.

What is 360 degree performance appraisal?

360-degree performance appraisal is a circle system of obtaining data from peers,
subordinates, and internal and external customers, about an employee’s performance.
360-degree assessment is based on the assessment of an individual’s management
capabilities, competencies and behavior by colleagues or team members horizontally
and vertically. 10 Anglia Ruskin University- 0970885/1

APPENDIX 3

http://appraisals.naukrihub.com/360-degree-performance-appraisal.jpeg
360* PERFORMANCE APPRAISAL
Performance Appraisal
· Identifying of performance

· Feedback on individual performance

· Basis for self-evaluation.

Analyzing Employee Development:

Diagnosing training and career development requirements

· Maintains a basis for promotion, dismissal, job enrichment, job enlargement, job
transfer, probation

· Monetary and appreciation rewards.

Organizational Study:
· Organizational environment development needs

· Changes in the Managerial approaches.

11 Anglia Ruskin University- 0970885/1

Customer Satisfaction Study
· Employee’s perceptional changes

· Customer satisfaction improvements

PERFORMANCE APPRAISAL ANALYSIS

Infosys is an organization which dwells on their success of their employees, so they
believe that their appraisals have to be justified. IT personal performances are intangible
so their appraisals are considered to be more difficult to be judged than in any other
industry. Hence Infosys undergo their performance appraisal more often than many
other companies in the sector. The appraisal techniques are evaluated on

1) INDUVIDUAL SKIL: Where an individual has learnt or achieved new personal skill that
can add value to the organization.

2) PERFORMANCE LINKED APPRAISAL: Where an individual has achieved significant

performance in his task and performed beyond expectation in his project or team
3) THREE TIER PERFORMANCE: Appraisal is based on the three tiers of performance.
The three tiers are overall corporate performance, unit performance, and the
performance of the concerned employee.

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RECOMMANDATION
· The company majorly focuses on one type of performance appraisal method-360
degree appraisal method, the method has its own disadvantages hence other
approaches should be incorporated.

· Transparency in the appraisal system helps to prevent conflicts and disagreement.

People believe that only by experience people gain appraisals and the actual level of
performance considered is negligible.

· Performance appraisal are accounted for a person’s technical skill but leadership,
competency are ignored at the lower levels. By monitoring the these skills the company
can identify the future managerial candidate

12 Anglia Ruskin University- 0970885/1

7- COMPENSATION FOR INFOSYS
“Compensation is payment in the form of hourly wages or annual salary combined with
benefits such as insurance, vacation, stock options, etc. that can positively or negatively
affect an employee’s work performance”

Robbins ” Compensation management is a method of determining the cost of effect pay

structure designed to attract and preserve, provide an incentive to work hard and
structures to ensure that pay levels are perceived as fair”

WHY COMPENSATION MANAGEMENT

· A good compensation package is significant to motivate the employees to increase the
organizational productivity.

· Unless compensation is provided no one will come and work for the organization
therefore compensation helps in running an organization effectively and accomplishing
its goals.

· Salary is just a part of the management system, the employees have other
psychological and self-actualization needs to fulfill, and compensation serves the
purpose.
· The most competitive compensation will help the organization to draw and sustain the
best talent.

13 Anglia Ruskin University- 0970885/1

COMPENSATION MANAGEMENT AT INFOSYS
· Infosys compensates its human assets in three different ways

· Adds learning through training and development and appraisal practices

.
· Adds significant emotional value through initiatives directed towards sustaining
employees with their work and personal needs

· Adds financial value by monetary compensation

DIRECT COMPENSATION FOLLOWED AT INFOSYS

Basic Pay: Wages or Salaries paid to the employee. These are a standard practice; the
competitive advantage can only be earned by paying a higher amount.

Incentive Pay: Bonus paid when particular performance or objectives are completed, It
motivates employees to set and increase performance level and is an drive to
accomplish farm goals.

Stock Options: A right to own and manage the organization which is given to an
employee to reward extraordinary services.

Bonuses: A part of the profit the organization earned by the employees due to the
success of their overall achievements,

INDIRECT COMPENSATION FOLLOWED AT

INFOSYS
Over time policy: Employees are provided with the sufficient allowances during their
overtime, if they happened to do so, such as transport facilities, overtime pay

Hospitalization: They are provided with allowances to get their regular check-ups, at an
regular interval. The company has a tie with leading hospital in the country where
emergency and non emergency medical care is provided

Insurance: Accidental insurance and life insurance for employees are provided to
employees. The company are in contract with METLIFE insurance who also derive
service from INFOSYS
Retirement benefits: The organization provide for pension plans, the provident fund
scheme which is a government issued retirement scheme is one of the examples for
retirement benefits followed at Infosys 14 Anglia Ruskin University- 0970885/1

Process Migration: The employees are provided opportunities to be deployed for

projects outside the host countries.

COMPENSATION ANALYSIS FOR INFOSYS

· With increasing demand for technology professionals and innovative compensation
packages employee retention is the most feared challenge for Infosys.

· The employees of the new era feel since they spend time and effort for the company,
collective bargaining for managerial decision should be implemented.

· Skills, competencies, and commitment surpass loyalty, hard work and length of service

· Increasing demands of technology coupled with a short supply of professionals

· Informational Technological companies have moved from conventional pay-for-time

methods to a combination of pay-for-knowledge

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8- CONCLUSION
The real challenge is to how the company is able to integrate all the subsystems in HR.
eventually this would help the organization for achieving exceptional performance.
People have to be groomed to get in with the performance culture. The company has to
create an environment that stimulates the creation of knowledge; its sustenance will be
the challenge for Infosys in the future. HR department can not function with traditional
systems. Now the role will shift to HR facilitator, to facilitate change process. HR
facilitator will have to involve the whole organization in this process and act as a guide,
coach, counselor and facilitator. Infosys as a company is a leader in its own stride.
Infosys has excellent recruitment policies, huge data bank, placement agencies. Infosys
also conducts rigorous tests to ensure that they can get high profile talent that will fit in
their culture. At Infosys the best performance system is in place that evaluates the
organization as whole. Infosys has been able to tackle the quantum of performance with
fairly efficient manner. The prime tasks for Infosys is to build corporate culture.

With the advent of a work situation where more and more companies are having to
concede that their valued employees are leaving them, a new concept of career and
human resource management is bound to emerge. The focus of this new paradigm
should not only be to attract, motivate and retain key ‘knowledge workers’, but also on
how to reinvent careers when the loyalty of the employees is to their ‘brain ware’ rather
than to the organization. 15 Anglia Ruskin University- 0970885/1
HR practitioners must also play a proactive role in software industry. As business
partners, they need to be aware of business strategies, and the opportunities and threats
facing the organization. As strategists, HR professionals require to achieve integration
and fit to an organization’s business strategy. As interventionists, they need to adopt an
all-embracing approach to understanding organizational issues, and their effect on
people. Finally, as innovators, they should introduce new processes and procedures,
which they believe will increase organizational effectiveness.

9- EVALUATION
Theoretically and in practicality Infosys have some of the best HRM policies. The
company has won accolades for innovative and diverse HR systems. These laurels were
acclaimed during the best time of the financial era. The following are the repercussions
Infosys laid during the recession.

· The company lay off 2100 employee during 2009

· The company benched many of their employees

· Graduate employees were asked to improve skill set

· Management restructure performance appraisal from half yearly to quarterly

· The organization preferred experienced staff to new blood

· Salaries were reduced and incentives were held

It is evaluated that even though Infosys followed some of the most innovative HR
practices the repercussion of recession had impacted the organization employees. The
layoff caused dissatisfaction among employees and the once committed employees
worked in fear for their job. It is therefore understood that, the best HR practices may not
always be the most satisfying way. It also understood that even though the company
incepts some of the best Human resource techniques the psychological factors of the
human beings are still variable to acceptance and rejection thus causing high HR
functions to be subjective to change. 16 Anglia Ruskin University- 0970885/1

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This is a Simplified Chinese version. Infosys Technologies, a leading software company based in
India, was voted the best employer in the country in many human resources (HR) surveys in recent
years. The company was well known for its employee friendly HR practices. Though Infosys grew to
become a US$2 billion company by the year 2006, it still retained the culture of a small company.
Infosys attracted the best talent from across the world, and recruited candidates by conducting one of
the toughest selection processes. All the selected candidates were required to go through an
intensive 14-week training programme. All the employees were required to undergo training every
year, and some of the chosen employees were trained at the Infosys Leadership Institute to take on
higher responsibilities in the company. Infosys was one of the first companies to offer employee stock
options plans to its employees. The company followed a variable compensation structure where the
employees' compensation depended on the performance of the individual, the team and the company.
The case highlights many such best practices of Infosys in human resource management. It also
discusses the challenges faced by the company to retain its talented workforce.

https://www.thecasecentre.org/main/products/view?id=102504

Infosys, INTRODUCTION
Infosys technologies is a leading outsourcing IT services multinational company having
headquarter in Bengaluru, India and is having its branches and development centres in China,
UK, Japan, Australia with a large workforce of 1,27,000 employees all over the world. They
have a flat organizational structure HR structure directed by Nandita Gurjar with a few levels
of management between software developers and managers, and thus the employees have
more involvement in decision making. That is why, they have been rated best employer by
business world/Hewitt.

They offer software development, business consulting, product engineering, maintenance,

integration systems and validation services to the companies like Microsoft, SAP, Google,
Yahoo, Oracle etc. They are 2nd largest software multinational company in India after TCS
with an approximately revenue of US$ 5.7 billion in 2010 and employees a chunk of skilled
employees. Infosys created a great global picture of software outsourcing of India all over the
world because of which they attracted a large number of talented engineers across the world.
There has been a burgeoning growth in the workforce in recent years,

Due to the interlinked and fantastic international HRM structure they were rated “Best
companies to work for” by HAY group. Females contribute to more than 30% of their
employees making them awarded by NASSCOM for gender empowerment. Their HRM have
given importance to each employee and given a fantastic place in their company. Due to all
this for last two decades they are attracting very talented engineers and software developers
resulting in burgeoning growth of their organization. In recent time, they are getting big
projects from big companies, for which they need skilful and talented employees. But in last
four years they are dramatically facing the problem of attrition. A recent survey showed that
in October-December quarter of 2010 there was 17.5% attrition, which is an alarming
situation for them, that will affect their started projects massively. According to financial
express, attrition has become a major trouble for them, and they need to solve it as soon as
possible. The most striking point is the continuous increase in attrition rate in last 2 years,
making it a big challenge to their HRM department. Interventions of solving this can be done
by increasing compensation, training and feedback.

BRIEF HISTORY AND PROBLEM IN DETAIL

Infosys was founded in 1981 by N.R. Narayana murthy and six entrepreneurs with a very
small capital of US$ 250, which was signed up with client Data Basics corporation in New
York. And in same way in 1983,  it relocated its corporate headquarters from Pune to
Bengaluru. After that they, opened their branch in USA.Subsequently, in early 1990s they
introduced modern human resource management program and got a certification of ISO-
9001, which was a great achievement for them. Also in the same year there shares were
shared with public sector. Also, they opened a development centre in Fremont, Las Vegas ,
USA which was a significant milestone for the company. They were accessed at CMM level
4 in 1997 that was their global success. They started enterprise solutions also called packaged
application practice. In same year its one big division “Infosys business consulting services
was launched. Next year they opened offices in France, Hongkong and other development
centres in USA, UK and Canada. A big achievement in their HRM was achieved when they
were rated best employer for 3 consecutive years. In 200-2002. They were accredited with
many other organizations like “MAKE” because of their innovative HRM structure.

Its HR department made a massive increase in employees in next years. But after then it has
been facing problem of attrition massively. The attrition rate is peaking  to a hight rate in the
early 2010, in this period the attrition was 13.4%. According to NASSCOM website, there is
huge demand of IT professionals in the past few years, hence the demand is too high, so there
is a big reason to worry about attrition recently.

With new and new projects coming up, the services need to be build up its skilful employee
sale to meet the requirements. As the market is having more opportunities so either
employees are leaving companies. During this quarter 7833 people left the organization that
was like a backlash in the productivity. Usually in this quarter employees are started their
MBA or MTECH degrees. About 90 left for higher education and 2215 left to join other
companies. Company invest a huge amount on their training and in return they want certain
required work, but surprisingly, they get the resignation letters from employees, which is a
big loss for the company. Even their competitors like TCS and Wipro are also

facing attrition of 21.7% and 14.4% respectively in last quarter of 2010. Though the IT bell
added 14,624 new employees in 2010 during the quarter but there was alarming exit of skilful
6,618 employees taking the total to 122,468 till September 30 2010 . Infosys wanted  to
g=hire about 10,000 more engineers in 2010 which has been highest record till now because
of booming projects.Their HR head can put some strict and affective policies to reduce
attrition.

INTERVENTION 1: INCREASING EMPLOYEE’S COMPENSATION

A very effective way to reduce the attrition is to increase their basic salary because most of
the times, employee leave because of limited compensation and go to better paying
companies. A perfect example is of HCL technologies which is a competitor of Infosys
technologies also faced attrition of 30% in 2004.(Frauenheim A. , 2008). HCL’s leadership
thus decided to focus on employees and followed A policy “goal of employee reforms by
increasing transparency” made them understand that employee needed compensation and
increments. So HCL decided to pay higher fixed salaries significantly to get valuable input
from the employees. This policy was built to make trust in employees. Resulting in decline of
attrition to 15% and their revenue jumped to 146% and production to US $ 1.9 billion in no
time. Infosys today is as global as HCL, so they must follow the same way and increase
compensation of employees. Their one more rival Satyam computer services pvt ltd was
facing the problem of attrition in July 2006. (Market watch, 2007). So they increased the
employee’s wages by 18% hence reduced attrition rate and they managed to meet their
productivity. One more example is of Microsoft who also faced attrition of 9% in fiscal year
2004 that made the HR worried when they were losing mangers, engineers and marketers.
Their director of platform evangelism left for internet phone Skype technologies, for a better
salary and a long list of employees were moving to Google. The reason was compensation
and profits. So there were Microsoft compensation moves that made a hike in their salaries.
And they rated their employers by top performers and the pay scale was decided by high
performer to average performer.” It creates competition in the ranks, when people really want
community” said Microsoft vice president, and thus they were able to retain their talented
employees. (Green, J. 2005)  Similarly, Infosys can also divide the top performers and

average performers and hike their compensation accordingly which will create a competition
to reach optimum targets to get better pay scale, resulting in self motivation. So by increasing
compensation of employees will be a great way of reducing attrition.

Intervention 2: TRAINING OF EMPLOYEES

Training will make the employees comfortable with work and reduce their problems. Many
times, employees are not able to adjust with their work and start losing the interest, in such
cases they need a motivating and technical training. An article by Bob Harris says training an
employee by building new ideas with learning experience to software developers will
enhance confidence and loyalty in words (Harris, B. 2005). And thus training will impart a
moral boost and build long term relationship with company and simultaneously competitive
work.

With training, proper positioning of employees in their work will develop a harmonious
relationship in organization resulting in reduction in attrition and retaining skilful employees.
(Goldenkoff, R. 2007) As a trainer we can avoid unnecessarily frustrating the techies by
giving them that task which they are not capable of. And because of new technology coming
up there is need to train them with new methods of developing software with less time
consuming and with less errors. A better approach during training should be adopted to put
no communication gap between trainers and the trainees, they should be exhibited with all the
skills they need in their work. (Peter, A. 1977).Training to be offered timely and feedback on
it is necessary especially on new policy and techniques, their conflicts with supervisors
should also be considered and then resolved by mutual understanding in proactive training.
Training should have a dual affect of new skills and personal relationship with supervisors
and managers. Motivation and encouraging toward the commitment toward work will create
a sense of loyalty in the employee; as a result it will create a sense of responsibility and their
own importance in their company.

INTERVENTION 3: SURVEYS AND FEEDBACKS

Significantly, employee’s feedback data can support exit data. Such as annual federal
employee viewpoint survey that includes asking employees whether they are leaving the
organization in next period and why (to know the reason). The responses of those who say
they are considering to leave next year are-(1) they do not like the work, (2) they are not
satisfied by reorganization they receive (3) they are not happy with the compensation.
(Sitzmann, T 2010) Hence this will give a clear idea to the HR department about the exit
reasons of their employees.

A research has shown that positive effects of prompting, self-regulation, minimizes the
doubts of both management and employees. Using the method of prompting questions and
reflective approach to the queries resulted in decrease of attrition and created confidence in
employees. (Korrapati, R. 2010) The intervention of questioning and answers from
employees moderated attrition. A questionnaire can be given to the employees asking for the
response of their basic needs in work, interested work, incentives, promotions and working
shifts. The basic design for the surveys can be alteration in person interviews with telephones
and mail out surveys periodically. (Lavigna, B. 2011).This will give a brief idea of their
unmet need which can be fulfilled and van be helpful in retaining them in organization
. Sometimes the employees are not happy with the manager, so the manager can be changed
and instead of loosing employee. In some cases it is found that employees are not happy with
workload and pressure, so the HR team can put more people on that work in order to equally
distribute the work and put such kind of work that he can do. An article by national
longitudinal survey says that by survey methodologies impact of attrition can be reduced. . If
its I consistent with its objective, continuous rounds are there that totally consider each, the
targeted incentive reasons data can be achieved, and finally longitudinal survey that convince
and offer attention, making them confident that they are providing their study in a right way,
and thus with all these attrition knowledge will be achieved helping in reducing attrition.
(Randall, J.  2005) The HR will be retaining them for long term by meeting their needs.  With
the help of survey and feedback from them, It will eliminate all the unwanted shifts, and will
lead to mutual co-ordination between management and organization, hence leading to
satisfaction an reduction in attrition. If all these feedback are unbiased and done accurately,
this will reveal all the pros and cons, bringing a clear picture of the organization

CONCLUSION
Overall, it is concluded that attrition is causing trouble for Infosys that is caused by unmet
needs like overtime, stress; low fixed salary or low motivation in employees which can be
solved by hike in compensation, feedback, surveys and training. We have to implement these
way according to circumstance. Out of this feedback from employees is very essential that
reveals the general idea to HRM, about the root of this problem which can be solved with
discussion and meeting of these needs, such kind of responses will lead to future planning
also and it will further reduce the future attrition. But, will it really solve the problem?
Sometimes, the best surveys even do not work accordingly and employee still leaves the firm,
so a proper planning has to be made during the feedback to get correct data and implement
the solution carefully. Also, any confidential way of surveys and questionnaire should be
implemented. Similarly the intervention of more compensation should be implemented in
company. The better the work, the better he should be paid, because of the competitive world
and new competitors, the HR have to visualize the correct pay scale for the employee when
compared with similar talents and should not be biased.

 Is it there any competition in employees regarding pay scale? How employees can be
motivated to get more incentives?  .These questions should be in consideration of HRM and
will result in positive effects. While training, the real motive of retaining the employee for
long term has to be considered. What questions have employees in their mind? Will the
training will be affected and will he be in company for more time after training? An effective
and practical policy should be adopted which will work on this special project considering
these, the HRM should go for training because if training does not solve the problem, what
will be use of it? All these ways have to be followed by HR head Nandita Gurjar and monitor
, the managers while doing so, if the ways are working they should continue in same way and
if not they should be rebuild and closely monitored. Subsequntly, The HRM can make future
planning also so that this problem will not occur and is the policies are periodically followed.
Then only the HRM will be able to retain talented engineers in company for long term.
Hence, through all these ways we can solve the serious problem of attrition in Infosys
technologies which should be adopted by Hr department of Infosys technologies.
REFERENCES:
(1) Textbook: Global Human Resource Management. Managing people in developing and
transitional countries authors: Willy McCourt. Derek Eldridge

(2) Infosys: http://www.infosys.com/about/what-we-do/pages/index.aspx

(3) Lavigna, B. 2011 Do you know who is leaving your company and why? vol 34 issue 1 p9-
21. Accessed in Business source complete

(4) Sitzmann T., Ely, K. and Brown K. ,2010 Sometimes you need a reminder Academy of
management learning & education, vol9 issue 2, p169-191, Accessed in  Business source
complete

(5) Randall J, 2005 The problem of respondent attrition: survey methodology is key. monthly
labor, Vol , 128 issue 2 p63-70, 8p Accessed in Business source complete

(6) Goldenkoff R. 2007 Home land security: DHS’s actions to recruit and retain staff and
comply venations reform act.   GAO reports 2007 p1 76p Accessed in Business source
complete

(7) Korrapati R. and Edara V. 2010 A study of the relationship between software project
success and employee job satisfaction.  vol 14 issue 1 p 22-25 Accessed in Business source
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(8)  Frauenheim, A. 2008 HCL technologies: Workforce management Volume 87 Issue 17,

p25-25, 1p. Accessed in Business source complete

(9) Market watch, 2007 Satyam: profit lag as attrition problem continues. Full Market watch
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(10) Greene, J.et al. 2005 Troubling exists at Microsoft issue 392,p98-108, 9p Accessed in
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(11) Harris, B, 2005 Bust attrition by fostering loyalty. SDM: security disturbance, Vol 35
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Related

https://writepass.com/journal/2012/12/infosys-technologies-pvt-ltd/

The HR Practices

Most of the HR practices of Infosys were a result of the vision of its founders and the culture that they had
created over the years. The founders advocated simplicity and maintained the culture of a small company. The
employees were encouraged to share their learning experiences...

Recruitment

While recruiting new employees, Infosys took adequate

care to identify the right candidates. On the qualities that
Infosys looked for in a candidate, Nilekani said, "We focus
on recruiting candidates who display a high degree of
'learnability.' By learnability we mean the ability to derive
generic knowledge from specific experiences and apply the
same in new situations.

We also place significant importance on professional

competence and academic excellence. Other qualities we
look for are analytical ability, teamwork and leadership
potential, communication and innovation skills, along with
a practical and structured approach to problem solving."

Training

Training at Infosys was an ongoing process. When new recruits from colleges joined Infosys, they were trained
through fresher training courses. They were trained then on new processes and technologies. As they reached
the higher levels, they were trained on project management and later were sent for management development
programs, followed by leadership development programs...

Training New Recruits

Infosys conducted a 14.5 week technical training program

for all new entrants. The company spent around Rs
200,000 per year on training each new entrant. The new
recruits were trained at the Global Education Center (GEC)
in Mysore, which had world class training facilities and the
capacity to train more than 4500 employees at a time.
GEC, which was inaugurated in February 2005 was spread
over 270 acres and was the largest corporate training
center in the world with 58 training rooms and 183 faculty
rooms...

Training Programs for Employees

Infosys also conducted training programs for experienced employees. The company had a competency system in
place which took into account individual performance, organizational priorities, and feedback from the clients...

Infosys Leadership Institute

The Infosys Leadership Institute (ILI) was set up in 2001 to nurture future leaders in the company and to
effectively manage the exceptional growth that the company was experiencing. At the Institute, the executives
were groomed to handle the changes in the external and internal environment...

Performance Appraisal

The first step toward carrying out performance appraisal

at Infosys was the evaluation of personal skills for the
tasks assigned to an employee during the period of
appraisal. To evaluate the performance, different criteria
like timeliness, quality of work carried out by the
employee, customer satisfaction, peer satisfaction, and
business potential, were considered. The personal skills of
the employees were also evaluated based on their learning
and analytical ability, communication skills, decision
making, change management, and planning and
organizing skills. Each of these criteria was measured on a
scale of 1 to 5 (with 1 signifying above the expected
performance level and 5 below the expected performance
level).
The Culture

Infosys tried to preserve the attributes of a small company and worked in small groups, with decision-making
remaining with those who were knowledgeable about particular processes. The managers played the role of
mentors and used their experience to guide their team members...

The Challenges

With the IT industry growing at a rapid pace, Infosys

planned to recruit around 25,000 people in the financial
year 2006-07, in order to maintain its growth. Though it
had started hiring its workforce globally, it mainly recruited
engineering graduates from India. If the industry
continued to grow at a similar pace, analysts opined that
companies like Infosys would not be able to find enough
people, especially with several multinationals entering
India and recruiting aggressively. To address this issue,
Infosys started recruiting science graduates with a
mathematics background to create an alternate talent
pool...

Exhibits

Exhibit I: Best Companies to Work for in India (2001-05)

Exhibit II: Infosys - Awards and Recognition
Exhibit III: Infosys - Number of Employees (1995-2006)
Exhibit IV: Infosys - Other Recruitment Programs
Exhibit V: Infosys - Five Year Financial Highlights (US GAAP)
Exhibit VI: Infosys Fresh Recruits Training - Best Practices
Exhibit VII: Project Management: Behavioral and Technical Competencies
Exhibit VIII: Infosys - The Nine Pillars
Exhibit IX: Retention Levels (2006)

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