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Infosys Strategic Human Resource Management Case Study Analysis

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Strategic Human Resource Management

...STRATEGIC HUMAN RESOURCE MANAGEMENT MANAGEMENT 5340 Fall 2011 EXECUTIVE MASTER OF BUSINESS ADMINISTRATION (EMBA) Shanghai Modern human resource management may be viewed as a process of acquisition, development, utilization, and maintenance of a human resource mix (people and positions) to achieve strategic organizational goals and objectives. The purpose of this course is to provide the student with an understanding of human resource management from theoretical, practical, and empirical viewpoints. Material will be presented and discussed from the perspective of the operating or line manager as well as the human resource specialist. Attention will be devoted to the various contexts of human resource management, basic techniques and methods, and the changing nature of managing human resources. More specifically, our concerns will include human resource and employment planning, employee recruitment and selection, training and development, performance planning and evaluation, compensation administration, organizational career management, structure of the human resource function, and the strategic role of human resource management. Objectives of the Course: During the course, the student will hopefully progress toward attainment of the following objectives: 1. Become familiar with the human resource management process (or HR value chain) and its key elements: a. Organization and human resource goals and strategies b. Human......

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Strategic Human Resource Management

...two Strategic human resource management John Bratton Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. ‘If a global company is to function successfully, strategies at different levels need to inter-relate.’ 1 ‘An organization’s [human resource management] policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces.’ 2 ‘The [human resources–business strategy] alignment cannot necessarily be characterized in the logical and sequential way suggested by some writers; rather, the design of an HR system is a complex and iterative process.’ 3 Chapter outline Introduction p.38 Strategic management p.38 Strategic human resource management p.45 Human resource strategy models p.49 Evaluating strategic human resource management and models of human resources strategy p.56 Dimensions of strategic human resource management p.59 International and comparative strategic human resource management p.61 Chapter objectives After studying this chapter, you should be able to: 1. Explain the meaning of strategic management and give an overview of its conceptual framework 2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management (HRM) 3. Explain three models of human resources (HR) strategy: control, resource and......

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Strategic Human Resources Management

...T The Strategic Human Resource Management Model A human resource department helps organizations and their employees attain their goals. But it faces many challenges along the way. This chapter explores some of these challenges and outlines a strategic human resource management model upon which the rest of this book builds. The Strategic Human Resource Management Model Environmental Analysis Organizational Mission and Goals Analysis Analysis of Organizational Strengths and Culture Analysis of Organizational Strategies Choice and Implementation of Human Resource Strategies Planning Human Resources Attracting Human Resources Human Resource Tactical Plans Placing, Developing, and Evaluating Human Resources Maintaining High Performance Motivating and Rewarding Human Resources Human Resource Systems and Procedures Review and Evaluation of Human Resource Strategies CHAPTER ONE Strategic Importance of Human Resource Management The successful 21st-century organization will not take the loyalty of talented people for granted. It will constantly try to recruit and keep them. … The mutual commitment of an employer and an employee will be one of the most important factors for a 21st-century organization. Subhir Chowdhury1 One CHAPTER OBJECTIVES After studying this chapter, you should be able to: • List challenges facing Canadian organizations in the context of managing their workforce. • Discuss the objectives of human resource......

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Strategic Human Resource Management

...foundation should be laid, that foundation in this case is a comprehensive definition of SHRM. According to Walker 1992 SHRM is the means of aligning the management of human resources with the strategic content of the business. Many critics of the discipline propose that the subject matter offers little in empirical data to add the term strategic to the HR function, however according to Watson and Watson 1999 HR management is essentially Strategic .Firstly HR management must consider the whole organization, whereas line or functional managers focuses on departmental performance. HR management looks at long term functional on immediate or short term performance. Therefore Fombrun et al (1984) postulated that if any organization is to function effectively there are three core elements to be considered, they are the organisation’s mission and strategy, organizational structure, finally human resource management. Conceptually, a central part of SHRM is the integration of the HR function with strategic decision making. Walker 1992 speaks of strategic fit, to further extrapolate, this means developing HR strategies that are integrated with the business strategy. H R practitioners supporting this view would therefore implement practices such as employee development, reward and employee relations and horizontal as well as vertical integration. If one is to read Beers et al 1984 one of his key feature is a model of HR called strategic integration, he noted that particular......

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Human Resource Management Case Study

... DigitalCommons@ILR CAHRS Working Paper Series Center for Advanced Human Resource Studies (CAHRS) 1-1-2003 Strategic Compensation: Does Business Strategy Influence Compensation in High-Technology Firms? Yoshio Yanadori Cornell University Janet H. Marler University at Albany - S.U.N.Y, marler@albany.edu Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/cahrswp Part of the Human Resources Management Commons This Article is brought to you for free and open access by the Center for Advanced Human Resource Studies (CAHRS) at DigitalCommons@ILR. It has been accepted for inclusion in CAHRS Working Paper Series by an authorized administrator of DigitalCommons@ILR. For more information, please contact hlmdigital@cornell.edu. Strategic Compensation: Does Business Strategy Influence Compensation in High-Technology Firms? Abstract This study examined whether a firm's business strategy influences the firm's compensation systems in hightechnology firms. For the firm strategy variable, we used innovation strategy, which is one of the most critical business strategies in the high-technology industry. Our analysis showed that a firm's emphasis on innovation is positively related to the firm's employee pay level, both short-term pay and long-term pay. Moreover, a firm's emphasis on innovation has significant influence on several other aspects of employee compensation management. Innovation is positively associated with the difference in pay......

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Infosys Human Resource Management

...from $5 million in revenue to $754 million as well as being ranked No. 1 in the Business Today Best Employer survey, Infosys Group felt a rude shock in 2003 when it fell off of the Best Employer List completely. Because of this disaster, the leadership of the company held a meeting in November of 2003 to set a new and aggressive milestone for the company: to ensure that Infosys Group was on the Top Ten lists of both Best Performing Companies as well as Best Employers by 2007. While leadership set this seemingly attainable goal, the HR team knew it would be no easy task as no large organization had ever been able to achieve this distinction because of the need to control costs for financial performance and the spending required for employee satisfaction. The fact that Infosys fell completely from the Best Employers list caused a huge media uproar and commotion in the industry, and the situation was referred to as the “downfall” of the poster child of the Indian software industry.  As Infosys continued its growth, the HR team knew it needed to prevent crises like this from happening in the future, but they did not have a model or path to follow. Background-                          In 1981, after working in the public sector and at a start-up software firm in India, Narayana Murthy, along with six others, left their jobs at the software firm and founded Infosys with only $250 borrowed from their spouses. From the start, Murthy and his six colleagues shared a vision of......

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Human Resources Management Case Study

...1) Based on the information in this case, provide examples, for Siemens, of at least four strategically required organizational outcomes, and four required workforce competencies and behaviors. a) High technology products and services -Siemens Company established more than hundred years. The high technology nature of Siemens’ business allow employee to learn on a continuing basis. The most important thing is Siemens provide employees extensive continuing education and management development. They are also training employees for jobs that are new to them. This will not only can motivate employee to learn more but also can enhance the image of the Company itself directly. b) Team work management -team work management is essential for a corporation to be successful. This is because employee productivity is likely to be enhanced through existence of unity in the marketplace. If everyone works as a team and noticed the vision and mission of the company are going to achieve, the managers and employees will have a easier time arriving at a consensus when important decision are made. c) Expand products to global -Siemens wants to expand their business to become globalization and wants have the competitive advantage as compared to other company so the wealth of nationalities, cultures, languages, and outlooks represented by its employees is one of its most valuable asset. Siemens Human Resource understands their responsibilities which is placing right person in the right job.......

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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 Arora. With a small investment of Rs. 10,000 and nurtured the......

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Case Study Human Resource Management

...fulltext of this document has been downloaded 10667 times since 2008* Users who downloaded this article also downloaded: Jean Woodall, William Scott#Jackson, Timothy Newham, Melanie Gurney, (2009),"Making the decision to outsource human resources", Personnel Review, Vol. 38 Iss 3 pp. 236-252 John Hindle, (2005),"HR outsourcing in operation: critical success factors", Human Resource Management International Digest, Vol. 13 Iss 3 pp. 39-42 Peter Brown, (2010),"The power of HR outsourcing", Strategic HR Review, Vol. 9 Iss 6 pp. 27-32 Access to this document was granted through an Emerald subscription provided by 131740 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive......

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Strategic Human Resource Management

...Welcome to Strategic Human Resource Management Course Number: MBA 786 School of Business & Technology University of Wisconsin - Parkside 6:00 - 9:15 p.m. Wednesdays, Molinaro 167 October 29 – December 17 Fall Semester 2008 “…if we are to have citizens who can live constructively in this kaleidoscopically changing world, we can only have them if we are willing for them to become self-starting, self-initiating learners.” Carl Rogers Contacting the Instructor Professor: Dr. Karen Crooker Phone/Voice Mail: 595-2348 (worst way to contact) Office: Molinaro 349 Fax: 595-2680 (label to my attention) E-mail: crooker@uwp.edu (best way to contact) Address: UWP, Department of Business, PO Box 2000, Kenosha, WI 53141-2000 Web page: http://uwp.edu/~crooker/ Office hours: 3:15 – 4:30 p.m., Mondays & Wednesday. Other times by appointment. Course Description Using human resource management systems to create and sustain competitive advantage. Emphasis on an integrative framework that requires linkage between, as well as consistency among, functional HR activities and their alignment with and reinforcement of the organization’s competitive strategy. Course Objectives The goal of this course is to help students develop their knowledge, skills, and abilities in the following areas. At the conclusion of this course, students should be able to ✓ Name competitive...

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Case Study: Infosys (a) Strategic Human Resources Management

...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......

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Strategic Human Resource Management

...Strategic Human Resource Management-MGT 509 Individual Assignment Instructions This is an individual assignment. The word count should be less than 1500. In writing your answers, you should do extra research based on the given case study. You should submit your answers in printed form on or before 19th March 2016. This assignment carries a total of 15 marks whereas 10 marks allocated for the submitted answer and 05 marks allocated for the presentation. The date of presentation will be announced on 19th March 2016. Integrating McDonald’s Business, Human Resource, and Staffing Strategies McDonalds is a restaurant chain that operates in most of the countries including Sri Lanka. It has recognized its human resources as the most important asset. The company’s success depends on the satisfaction of its customers, which begins with workers who have the attitudes and abilities required to work efficiently and provide good customer service. To execute its growth strategy, McDonald’s has identified people as one of its three global corporate strategies. McDonald’s claim that’s that as an employer, it wants “to be the best employer in each community around the world”. It also makes a “people promise” to its employees that “we value you, your growth, and your contributions”. Its five “people principles” reflected by its human resource strategy are: respect and recognition; values and leadership behaviors; competitive pay and benefits; learning; development; and personal growth;...

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Strategic Human Resource Management

...Chapter 1 An Introduction to Strategic Human Resource Management Pawan Budhwar and Samuel Aryee The objectives of this chapter are to: • Summarise the developments in the field of human resource management (HRM) • Examine what strategy is • Highlight the growth and nature of strategic human resource management (SHRM) • Examine the linkages between organisational strategy and HRM strategy • Match HRM to organisational strategy • Discuss the main perspectives on SHRM and organisational performance. What is HRM? Developments in the field of HRM are now well documented in the management literature (see e.g. Boxall, 1992; Legge, 1995; Schuler and Jackson, 2007; Sisson and Storey, 2000; Torrington et al., 2005). The roots of HRM go back as far as the 1950s, when writers like Drucker and McGregor stressed the need for visionary goal-directed leadership and management of business integration (Armstrong, 1987). This was succeeded by the ‘behavioural science movement’ in the 1960s, headed by Maslow, Argyris and Herzberg. These scholars emphasised the ‘value’ aspect of human resources (HR) in organisations and argued for a better quality of working life for workers. This formed the basis of the ‘organisational development movement’ initiated by Bennis in the 1970s. The ‘human resource accounting’ (HRA) theory developed by Flamholtz (1974) was an outcome of these sequential developments in the field of HRM and is considered to be the origin of......

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Strategic Human Resource Management

...Abstract Human resources refers to the sum of the ability to work within a certain range of the overall population; or means the sum of intellectual and physical labor ability which can contribute to the entire economic and social development. The focus of human resource management (HRM) is on managing people within the employer-employee relationship. Specifically, it involves the productive use of people in achieving the organization’s strategic business objectives and the satisfaction of individual employee needs. (Stone, 2010) The Strategic Human Resource Management focuses in the linking of all human resource activities with the organisation’s strategic objectives. (Stone, 2010) It was first developed in the late 1980s and then it has an impressively development in the following 20 years. This idea has been discussed and researched intensively, European, American and Japanese business management practices proved that it has competitive advantage to approach a long-term strategic for sustainable development. Compared to traditional Human Resource Management, Strategic Human Resource Management (SHRM) is positioned to support corporate strategic role and functions of human resource management. This assessment is to discuss the idea of Strategic Human Resource Management and the roles that a Human Resource manager will need to undertake. It is aimed to develop a comprehensive understanding of the study of Human Resource Management. Thompson and Strickland define......

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Siemens Case-Strategic Human Resource Management

...Strategic Human Resource Management Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days. Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline. In this assignment strategic human resource management of the company Siemens is taken for study, since it has a strong Strategic HRM. Siemens is a leading technology business and one of the largest electrical and electronics engineering companies in the world. In the UK, it employs over 20,000 people and is in the top three electrical and electronics companies in the world. It has been a pioneer in innovation since 1843 when Siemens installed the first street light in Godalming, Surrey. In 2006, Siemens UK invested over £74.4 million on research and development. The company designs and manufactures products and services for both......

Words: 2219 - Pages: 9

This Assignment Is Published With Permission From The Author For Online Review Only
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1.        Introduction

 

From the case of Infosys it is easy to see that Narayana Murthy, the founder of the company has transform the 1981 year founded little software company into the first Indian company to be listed on the NASDAQ and become a world leader in IT consulting and software service provider, these achievement to a certain extent have close relationship with Murthy’s management practices in which his management philosophy and approaches, in the management’s perspective it would interesting and worthy to go into the case to study Murthy’s managerial skills and his philosophy. And below the essay will examine this great former CEO’s management practices in four aspects: business ethics, leadership, human resource management and strategic management in order to solve the following key issues and problems:

 

1.1    Human resource management

 

1.1.1  Employee as an asset

 

Figure 2.0 Human resource valuations

Source: 2009 Annual report of Infosys (Unknown 2009)

 

According to the last two years’ data which is shown above in Figure 2.0, the Indian IT giant may be influenced by the effect of the economic crisis and there was a caused surplus of human resource in Infosys which is proved by the later layoff of 600 contract works of the Infosys BPO (Unknown 2009), with the excess human resource it is easy to understand the decrease of the value of human resources per employee from 2008 to 2009 and the increase of the employee cost since the total employee number had grown by more than 1200 by the end these two years. Another fact need to be noted is that the growth of the employees in the support position is just 43 compared to the growth of 329 in position of software professionals, this difference will contribute to the increased high percentage of professional workers which is fundamental and advantageous to an IT service provider.

 

1.1.2            Campus connect

The campus connect program which was set up in the middle of 2004 is a training program currently involves more than 300 engineering colleges throughout India and there are two important parts of the program. (Unknown 2007) The first part is the so called Faculty Enablement Program (FEP) which is designed to provide educational experience to the college faculty members to enhance their soft skills which was found insufficient among them. The second part of the program is correlated to the first part, in the second part or second stage, the trained faculty members will teach the Infosys Foundation Program back in their respective colleges. According to the annual report (Unknown 2007), there are more than 20,000 students who were undergoing or finished the training program. Throughout such kind of program between the company and the campus, there are at least two benefits for the company. Firstly, this training program has potential software talents will get better trained because of the sharing of experience from the Infosys, and the better prepared and educated talents will in return benefit the software industry in India. Secondly, Infosys as the sponsor of the program will certainly get more famous and known to within the engineering colleges in Indian, and the graduate of these colleges may probably consider Infosys as their ideal employer. So in the end Infosys earns good honor for doing the good for the society and better potential and backup software talents and this is a win-win program.

 

1.1.3            Continuous learning

 

Candidates for positions in Infosys are short listed not only because of their certificates earned in their universities, but also attributed by their continuous learning ability to better prepare themselves in the future challenges and changes. Such learning ability of the employees are sustained, ensured and to some extent, forced by the company with the function of Education and Research. The Education and Research function provides 178 courses and a half of which are e-learning program designed for those who are not convenience to attend the instructor-led courses according to the data from the 2008 annual report of the company (Unknown 2008). Such courses cover various areas and subjects ranging from project management to special technological domains. Such kind of certifications differentiated from other certificates has three major benefits. Firstly, on the shoes of the company, such certification provides customized examination of the special skills of the employees and thus provides useful information about the human resource for the company. With this information, the managers could train and select the suitable talents from those who had the finished the relative courses which indicates that they should have the relative skills. Secondly, with offer of the continuous study programs, there will be active competition created between the employees as those who do not take the course or fail the exam will lose made in disadvantage and show the sign of laziness to their direct managers. Thirdly, on the shoes of the employees, they could learn such courses to earn the chance for a better carrier development. On one side, those who work hard and study hard may have more chance to get promoted by their managers. On the other hand, even they are not preparing to stay in Infosys any more; they also get better opportunities for a better because they are of high calibers.

 

 

1.1.4            Employee stock option

 

As mentioned above, Infosys is the first Indian company to provide stock option to the employees and within the company it is called as ESOP (Employee Stock Option Plan), the stock option plan provide the qualified employees with the stock option which is a noncash benefit to the employees to bind the interest of the employees who are granted the stock option with the company in a long run to maintain and increase the involved employees’ commitment to the company. Compared to the salary, the stock option as a way incentive to the employees has two advantages. The first advantage is the long term commitment of employees. Especially in the preliminary fast growing period, the offer of stock option would help maintain the experienced employees for the good of the company. The second advantage compare to cash inventive, the stock option offer makes the employees feel that they are the owners of the company despite the fact that that the stock price during the recent years the stock price had undergone a lot of fluctuations as stated in Figure3.0 below. Because by holding the stock of the company, these employees are also shareholders of the company at the same time, and this will drive the employees to try their best to benefit the company at large because the performance of the company influenced by the employees will return influence the stock price in the long run.

 

Figure 3.0 Historical stock prices (Exchange: BSE)

Resource: Official website of Infosys

 

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