...Case Study: Infosys (A) Strategic Human Resources Management Strategic Human Resources Management defines the organization’s intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive advantage; second, that it is people who implement the strategic plan; and, third, that a systematic approach should be adopted to defining where the organization wants to go and how it should get there. Strategic Human Resources Management is a process that involves the use of overarching approaches to the development of Human Resources strategies, which are integrated vertically with the business strategy and horizontally with one another. These strategies define intentions and plans related to overall organizational considerations, such as organizational effectiveness, and to more specific aspects of people management, such as resourcing, learning and development, reward and employee relations. Strategic Human Resources Management addresses broad organizational issues relating to changes in structure and culture, organizational effectiveness and performance, matching resources to future requirements, the development of distinctive capabilities, knowledge management, and the management of change. Infosys which was founded on July 2, 1981 in Pune by N R Narayana Murthy and seven others: Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok...
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...Strategic Human Resources Management defines the organization’s intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive advantage; second, that it is people who implement the strategic plan; and, third, that a systematic approach should be adopted to defining where the organization wants to go and how it should get there. Strategic Human Resources Management is a process that involves the use of overarching approaches to the development of Human Resources strategies, which are integrated vertically with the business strategy and horizontally with one another. These strategies define intentions and plans related to overall organizational considerations, such as organizational effectiveness, and to more specific aspects of people management, such as resourcing, learning and development, reward and employee relations. Strategic Human Resources Management addresses broad organizational issues relating to changes in structure and culture, organizational effectiveness and performance, matching resources to future requirements, the development of distinctive capabilities, knowledge management, and the management of change. Infosys which was founded on July 2, 1981 in Pune by N R Narayana Murthy and seven others: Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora. With a small investment of Rs. 10,000 and nurtured the organization...
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...Infosys: Summary In 1981 Narayana Murthy and six colleagues established Infosys with $250; it is an organization created for professionals by professionals that promised to be fair to its “infoscions” (employees), customers, and shareholders (Delong, 2006, p. 1). The company’s overall vision was to become a “global company” that developed wealth in an honorable manner by redistributing funds to the poor and provide fairness to all (Delong, 2006, p. 3). Infosys worked in the information technology (IT) market via several strategies, body-shopping and offshoring; however; it turned out creating problems than the company planned for which caused a chain reaction of more problems before management finally realized they “fell from grace” (Delong, 2006, p. 10). Therefore, the following paragraphs summarize and analyze Infosys (A): Strategic Human Resource Management written by Delong, Tandon, and Rengaswamy as it relates to Strategic Human Resource Management (SHRM). Case Analysis When Infosys first opened its doors, their strategy known as bodyshop was increasing their labor costs due to the U.S. government limiting distribution on B1 Visas per year. Body shopping is a form of outsourcing in which Infosys recruits IT students straight out of college, place them with clients on project-based assignments until completion (Delong, 2006). Once completed workers are either placed on another project or benched to wait for a new assignment (Darwish, et al., 2010). This is similar...
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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...
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...THE CASE STUDY OF NARAYANA MURTHY AND INFOSYS TECHNOLOGIES LIMINTED QUESTION ONE (1) Identify and explain from the case study, those variables attributable to the company’s success in line with the ‘Concept of Effectiveness’ that constitute unique capabilities 1) Low Employee Turnover Employee turnover refers to the rate at which people resign or live their employment. With his proactive human resource practices, Marayana Murthy and Infosys was able to lower the employee turnover to a rate around 11% as opposed to an average of 25% for the industry. 2) Good Facilities for Employees Infosys Technologies Ltd provided many facilities such as ticketing, credit cards, crèche facilities for kids, transport facilities, recreational facilities etc. to its employees to take care of both the professional and personal needs. 3) Promotion Promotion is advancement to a higher-level job with increased authority, responsibility and pay within the organization. Infosys Technologies Ltd promoted about 80% of the middle and senior level executives from within the organization to motivate them. 4) Best Reward System Analysts felt that Infosys Technologies Ltd had one of the best reward systems in the industry. Most employees in Infosys Ltd were paid high salaries as compare to other employees in the industry. Also there are some monetary and non monetary benefits like compensation, overtime etc. that Infosys gives to its employees to motivate them. 5) Open (Effective)...
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...touted as the IT bellwether, Infosys today, finds itself in a very precarious situation. Its revenue guidance for FY 12-13 is lower than the industry average. Peers like TCS and Cognizant on the other hand are growing strong. For more than eight quarters Infosys has been underperforming. Anyone and everyone related to the IT industry has tried to analyse its problems and all have come up with different reasons. Even the Infosys management is finding it hard to pin down its poor performance to a particular problem. Will Infosys be able to correct its course in time? Or will it be overtaken by the likes of Wipro and Cognizant. In the group of TCS, Wipro, Cognizant, HCL Tech and Infosys, Infosys has seen its share of revenue addition growth slip from 22% to 14.5%. Other than Wipro, all other have seen a modest to robust growth in their revenue addition. In the last five quarters the company has missed the midpoint of its guidance twice and in the last quarter it even missed out on the lower end of its guidance. This resulted in the stock prices tanking by almost 13%! Ask any critique and the first reason they will point out is the management problem at Infosys. The founders who are still at the helm of the company are being perceived as a major hurdle in the company’s growth. Post the 2008 recession there have been significant changes in the IT outsourcing industry. Critiques say that Infosys management has been slow to adapt to these changes. Infosys still is a very centrally controlled...
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...of the management case by academicians and practitioners Infosys Technologies Ltd.: Growing Share of a Customer’s Business James A Narus and D V R Seshadri Case Analysis I Janaki Anant Principal Solution Architect i-flex solutions Ltd e-mail: janaki.anant@iflexsolutions.com his case has multiple dimensions of analysis to it. While there is certainly an immediate short-term issue of winning the Ariba® e-procurement project of the existing client, Prairie Four Square (PFS), and gaining an increased share of the customer’s business that the Infosys team is trying to address, there is also an overall long-term strategic issue that needs to be addressed as well – that of the pricing mechanism based on value that needs to be deployed for long-term sustainability and growth of the relationship. This case offers an insight into the various dimensions of moving up the value chain and increasing the economic value of a customer relationship, identifying the differentiation strategy, communicating the positioning effectively, and the impact of local competition in the global scenario. The case also effectively illustrates the general growth path followed by most Indian software services companies, the issues they face in this progression, the changing scenarios in the global competitive arena, and the relentless pressure to lower costs in a diminishing labour cost arbitrage advantage scenario. T The April-June, 32(2), 2007 issue of Vikalpa had published a Management Case titled...
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... Internal Analysis Ravi Rajan Vinod Mahajan Arun S Madhava Gopal Praveen Waychal. Firms considered 1. Infosys Technologies Ltd. TABLE OF CONTENTS INFOSYS TECHNOLOGIES LTD 4 Brief History 4 Firm Profile 6 Financial Summary 6 Financial growth over the years 6 Peer Comparision over the years 7 Revenue Growth from Different Geographical segments 8 Revenue growth from industry segements over the years 8 Services Offered by Infosys 9 Revenue Breakup by service offerings 10 Organization Size 11 SWOT Analysis 12 PSPD model 12 Strengths : 13 Weaknesses: 13 Threats: 13 Opportunities : 13 Value Chain Analysis 14 Core Competencies 16 Infosys Global Delivery Model 16 Infosys brand equity and talent search 17 Process and quality compliance standards. 18 INFOSYS TECHNOLOGIES LTD Brief History • Founded in 1981 by Narayana Murthy and six others. • Second Largest IT company • Offices in 22 countries • Development Centers in India, China, Australia, UK etc. • Went Public in 1993 • Total No: of employees – 149882 • Revenue...
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... What are the compulsions that have been driving the top management of Infosys to seek migration of the company up the value chain? Infosys is a highly respected, India-based information technology (IT) software service provider, established in July 1981. The ramp-up of the company has been particularly spectacular during the last several years, starting from 1995. The initial business model related to labor arbitrage and was based upon differential wage rates for IT professionals in India and the developed countries. The boom of the late 1990s, catalyzed by the Y2K-related problems, resulted in opportunities that the company capitalized upon. Today the company serves clients drawn from global 2000 companies. Based upon its strong ethical and principled approach, execution excellence, relentless quest for quality and customer satisfaction, the company had astounding financial success and became a darling of the stock markets both in India and the United States. Notwithstanding its successful track record, Infosys has over the last several years, proactively been applying itself to a fundamental question of identifying the drivers of success for the next 10 years. Infosys has been deeply concerned about leveraging its current strong position, to evolve into a much stronger company, so as to ensure continued growth and success in the long-term. Main drivers that have contributed to drive the top management of Infosys to move up the value chain are below: * International...
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...Strategic Human Resource Management is the practice of aligning business strategy with that of HR practices to achieve the strategic goals of the organization. The aim of SHRM (Strategic Human Resource Management) is to ensure that HR strategy is not a means but an end in itself as far as business objectives are concerned. The idea behind SHRM is that companies must “fit” their HR strategy within the framework of overall Business objectives and hence ensure that there is alignment between the HR practices and the strategic objectives of the organization. Evolution of SHRM With the advent of new economy industries like IT and the mushrooming of the service sector, organizations all over the world realized that human resources must be viewed as a source of competitive advantage as opposed to treating it much the same way in access to technology or capital is concerned. What this means is that the practice of HRM is being viewed as something that promotes the business objectives of the firms and not merely another factor in the way the firm is managed. How does SHRM fit in with Strategy? With the advent of today’s economy where services account for a major share of the GDP and the fact that the service sector is essentially people centric, it is imperative that the people first approach be embraced by the organizations for sustainable business strategy. The practice of SHRM demands a proactive and hands on approach by the management as well as the HR department with regards...
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...LOVELY PROFESSIONAL UNIVERSITY INSTRUCTION PLAN (for Lectures) Term: 3rd Course No. COM604 Course Title: STRATEGIC MANAGEMENT L: 4 T: 1 P: 0 Textbook: 1. Hunger J. D. and Wheelen T. L. , Strategic Management & Business Policy, Pearson Education, New Delhi, 8th Ed., 2006 Other Specific Books: 2. Kazmi, A. Business Policy and Strategic Management, Tata McGraw Hill, New Delhi, 2nd Ed. 2007 3. Jauch, R. Lawrence, R. Gupta and W.F.Glueck, Business Policy and Strategic Management, Frank Bros.&Co., 7th Ed.,2007 Other readings: |S. No |Journal articles as compulsory reading | |. |Camillus, J. C. Strategy as a wicked problem, Harvard Business Review, May 2008 | | |Hirotaka, The contradictions that Drive Toyota’s success, Harvard Business Review, June, 2008 | | |C.K. Prahalad’s Plan: India @75, Business Today, August 24, 2008 | | |McAfee, A. and Brynjolfsson, E., Investing in IT that makes a competitive Difference, Harvard Business Review, July-August, 2008, PP.98-107 | | |Collis, D.J. and Montgomery, C.A., Competing on Resource, Harvard Business Review, July-August, 1995 ...
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...ASIAN JOURNAL OF MANAGEMENT RESEARCH Online Open Access publishing platform for Management Research © Copyright 2010 All rights reserved Integrate d Publis hing associat ion Research Article ISSN 2229 – 3795 Employer branding: A new strategic dimension of Indian corporations Suman Kumar Dawn, Suparna Biswas Asst. Professor, West Bengal Universit y of Technology, Ko lkota skd_hooghly@yahoo.co.in ABSTRACT Emplo yer branding is defined as a targeted longterm strategy to manage awareness and perceptions o f emplo yees, potential emplo yees and related stakeho lders wit h regards to a particular firm (Sullivian, 2004). This includes direct and indirect experiences of dealing wit h the firm. Like actual product branding, organizat ions have started to invest emplo yer branding as emplo yees are the internal customers of the firm. The emplo yer brand builds an image confirming the organizat ion as a good place to work. Today, an effect ive emplo yer brand is essent ial for compet it ive advantage. Wit h the liberalizat ion of the Indian econo my in 1991 and subsequent economic reforms, Indian co mpanies are becoming internat ionally strategic to utilize the emplo yer brand to attract and retain talent which leads to expand and growth of the business. This paper gives some concept on emplo yer branding and also to examine how India...
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...Business Service Management Student Projects Business Service Management (BSM) Motivation/Background: In an environment where the number of services is substantial and the differences between business and IT services blur, Business Service Management becomes crucial: the explicit management of these services as important business assets that are the focal points for the cost-effective creation of customer value and innovation in organizations (see for more information: http://eprints.qut.edu.au/26620/). Aims/Outcomes: There are a range of topics within Business Service Management that can be the focus of a research project, for example, service management, service strategies, service-oriented business models, service prioritization, service portfolio management, service quality, service analysis & design, service co-creation, service architectures and service re-use. A project can be of a more academic or practical nature. Depending on your specific interests, we will advise you to contact one of the BSM researchers as supervisor. Some specific projects within this area are listed here and described in more detail below: Decision-Support for Service Bundling Prioritisation of Service Processes Service-oriented business models Apple’s iModel: The business model of iPod, iPhone and iPad Required Knowledge: Projects in the area of BSM require a sound understanding of both business and IT and a basic understanding and interest in research methodologies...
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...4 sessions Topics – Module 2 (4 sessions) Decision making Types of planning The planning process/ framework Strategic planning in an organisation Outcomes of planning process Hierarchy of strategy MBO – Peter Drucker Decision Making ‘the process of identifying & selecting a course of action to solve a problem / take advantage of an opportunity’ Problem – the discrepancy between ideal & actual situation ‘Problem – something that that endangers the organisations ability to reach its objective Opportunity – some thing that offers a chance to exceed objectives’ Peter F Drucker Problem finding process Deviation from the past experience Deviation from set plan Other people Performance of competitors intuition Problem finding - errors False association of events False expectation False self perception & social image Other factors Threshold of problem recognition Setting priorities Selecting the right ones – leave the easy ones Allow self solutions Types of DM STRUCTURED Made under established situation i.e. definable, predictable & analysable Called programmed DM Routine problems Application of rules/ procedures/ habits Lower management Recurring Less human touch Low risk & uncertainty High control UNSTRUCTURED Made under emergent situation Called non-programmed DM Non-routine problems Application of skill/ experience/ common sense Top management Rare High degree of human touch High risk & uncertainty Low control Types of DM Programmed Decisions (structured) ...
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...Are we on the brink of a Leadership Crisis? Daily news has been flooded with high profile CEO exits from large companies. While some of these exits were planned, most of the CEO turnover is abrupt, attributed to unsatisfactory company performance. Hyper competition and shareholders increasing focus on short term gains have made the CEO job tougher than ever before, CEO turnover is on a rise globally. A leader influences company culture and impacts the organizations strategic constituencies that lead to better or worse business performance. Hence, it is strategically important to choose the most competent leader. Companies must have a leadership pipeline in place that is ready and competent to take over the reins when incumbent leaders step down, voluntarily or involuntarily. Insider vs. Outsider? Both insiders and outsiders have strengths and weaknesses. While more firms look outside for hiring CEO’s, research suggests a strong positive correlation between business success and inside leaders. Insiders have strong business knowledge and industry expertise while outsiders bring in fresh perspectives. Leadership skills require an ability to leverage core competencies and develop internal capabilities. To do that, extensive inside knowledge is a prerequisite along with a greater awareness to the operating environment. The goal for businesses then is to develop inside-outsiders. Inside leaders groomed to look at organizations from an outside viewpoint. Inside-outsiders...
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