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Unit 2 Case Analysis: Infosys: strategic human resource management

GB520 Strategic Human Resource Management

Kimberly Moreland

Background Infosys was the brain child of Narayana Murthy who believed that “every human being needs incentives to move forward, whether in the form of money, recognition, or fame” (DeLong, 2006). He and his partners believed that if they treated their employees, customers, and suppliers fairly and ethically, they were sure to be a successful business. To that end, the company recruited employees from competing firms with offers of perks that were not available at their current employers. They also tapped recent college graduates to join the company again promising them benefits that exceeded what they could find elsewhere. The founding partners of Infosys were so focused on making the business successful that they failed to develop a clear strategic plan that specifically addressed the issues and problems they would face in the early days of starting the company . Therefore, as the company grew, there was no framework to adjust and modify to meet the needs of the company and the employees. Human Resource Management was a specific area in which the management of Infosys was short sighted. The great rewards they promised to new recruits were not always financially or practically available for those employees to enjoy in the early years of the company. As a result of the poor strategically planning at the inception of the business, Infosys soon found that they could not honor the promises they made to their employees and shareholders. They were forced to reevaluate their management strategy midstream which nearly resulted in the demise of the company.

Issues and Problems Infosys was founded on the principals set forth by Narayana Murthy to “create wealth in a legal and ethical manner” (DeLong

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