INFOSYS Ltd.
Presented by:Hitaishi Gupta(043026)Sonali Verma(043054)
PCM-TERM PAPER
ABOUT INFOSYS
• Infosys Limited (NASDAQ: INFY) – started on 1981 by seven people with US$ 250.
• Today, it is a global leader in the "next generation" of IT and consulting
• Revenues of US$ 6.604 billion (LTM Q2-FY12).
ABOUT INFOSYS
• Vision : "We will be a globally respected corporation."• Mission : "To achieve our objectives in an environment of fairness, honesty,
and courtesy towards our clients, employees, vendors and society at large.“
• Values– Infosys believes that the softest pillow is a clear conscience. The values that drive it
underscore its commitment to:– Client Value: To surpass client expectations consistently – Leadership by Example: To set standards in our business and transactions and be
an exemplar for the industry and ourselves – Integrity and Transparency: To be ethical, sincere and open in all our transactions – Fairness: To be objective and transaction-oriented, and thereby earn trust and
respect – Excellence: To strive relentlessly, constantly improve ourselves, our teams, our
services and products to become the best.
PERFORMANCE MANAGEMENT POLICY
Steps for Performance Appraisal:
• Evaluation of personal skills for the tasks assigned to an employee during the period of appraisal.
• Evaluation of the performance, different criteria's were considered.
• The personal skills of the employees were also evaluated based on their learning and analytical ability etc.
• Each of these criteria was measured on a scale of 1 to 5.
PERFORMANCE MANAGEMENT POLICY
• 360 Degree Feedback
• Recognition for Adding Value
• Employee-Management Interface
• Focus on Learning
• Innovation
• Business Continuity Plan
PERFORMANCE ASSESSMENT
• A bi-annual process.
• Various tools used are used.
• The system is called Online- PerforMagic.
• Consolidated relative rating is calculated.
• Assessment of an individual’s performance relative to the
peer group is carried.
• Rating ranges from 1+ to 4.
KEY RESULTANT AREA
• KRAs are mutually set through a discussion between the manager and the employee.
– Self Assessment (by appraise) – Review by Team Leader in a one to one meeting between the project manager and
the software engineer.– Final review by the project Manager (Reviewer) – Finally the points are given. – The report is sent three levels higher. – Then it is sent back to the engineer to find if he/she is satisfied. – If it is agreeable then it is finalized. – There is a salary hike or a band change accordingly.
• This entire system is online. Hence everyone involved in the process gets to gets track of it. This ensures transparency.
RATINGS
• Combined Ratings impact three key areas:– Performance Incentives– Salary Reviews– Promotions
• Star performers awarded with STAR INFOSIAN Certificate.
COMPENSATION POLICY
• There are three basic strategies for an organization's salary policy:
– In the jobs that we studied, SAP BI Consultant and Software Engineer, Infosys follows a LEAD STRATEGY.
SALARY REVIEW OF EMPLOYEES
SALARY REVIEW OF EMPLOYEES
SALARY REVIEW OF EMPLOYEES
SALARY REVIEW OF EMPLOYEES
Sizing of the Job
• Cluster approach
• 8 Levels • Cluster approach is
followed to size the job, based upon the Job evaluation.
• Sizing of the job of SAP BI Consultant is done at LEVEL 4 and Software Engineer is done at LEVEL 2.
Prizing of the Job
Comparison of the Salary of SAP BI Consultant at Infosys with other IT Companies in India
• The Average Salary offered by the Industry is INR 401232 but Infosys is following a Lead strategy and paying at the 92th percentile of the Industry (Source: Payscale.com)
Salary Slip of SAP BI Consultant- Infosys
Name Department
Pers Level
Designation Emp code
Account No.
xyz Finance 4 SAP BI Consultant
14000 30058630352
Total Basic HRA Medical
Travel Allowance
Fixed Dearness Allowance
Leave Travel Allowance
Monthly CPI
IPI Differential CPI
Bonus
6351817600
11225 7016 2806 1100 7016 6840
5155 1207.0
3553
Deductions PF Contributions
Professional Tax
Income Tax
Infosy Welfare Trust
GYM facilities
5060 2244 200 2391 200 25
Net Pay
58458
Comparison of the Salary of Software Engineer at Infosys with other IT
Companies in India
For the job of a software engineer, Infosys is at 68th percentile with a salary of INR 3.25 lakhs where the average is 2.77 lakhs.
COMPARISON
COMPARISON
Infosys Board Compensation
• The compensation committee determines and recommends to the Board the compensation payable to the directors.
• All Board-level compensation is approved by the shareholders and separately disclosed in the financial statements.
• Remuneration of the executive directors consists of a fixed component and a performance incentive.
• The compensation committee makes a quarterly appraisal of the performance of the executive directors based on a detailed performance-related matrix.
• The compensation payable to the independent directors is limited to a fixed amount per year as determined and approved by the Board, the sum of which is within the limit of 1% of net profits for the year, calculated as per the provisions of the Companies Act, 1956.
Infosys Board Compensation
Non-executive / independent directors' remuneration
• Section 309 of the Companies Act, 1956, states that a director who is neither in the whole-time employment of the Company nor a managing director may be paid remuneration by way of commission, if the Company, by special resolution, authorizes such payment.
• Members of the Company at the Annual General Meeting held on June 22, 2007, approved payment of remuneration by way of commission to non-executive directors, at a sum not exceeding 1% per annum of net profits.
Thank You
