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