Hrm Introducing The Company Infosys Business Essay Example
Hrm Introducing The Company Infosys Business Essay Example

Hrm Introducing The Company Infosys Business Essay Example

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  • Pages: 5 (1363 words)
  • Published: September 15, 2017
  • Type: Case Study
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Change is an essential element for businesses and can happen voluntarily through the organization's efforts or involuntarily due to changes in the business environment or responses to economic fluctuations.

When organizations announce a voluntary change in their system, effective communication is crucial. This is to prevent potential errors that may lead to strong opposition from employees, which can result in widespread employee attrition and significant financial consequences for the company. To exemplify this point, I will discuss an error made by a well-known global software services company during the implementation of a major systematic change. It should be emphasized that any organizational change usually triggers resistance among employees, which has the potential to escalate into protests and mass walkouts.

During these times, employees perceive that the company's efforts to implement changes will only favor the company and not su

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pport the employees. It appears that the employees are going through unproductive transitions. This error was committed by Infosys HR, who neglected to properly inform their employees about the benefits and drawbacks of the changes, resulting in a significant loss of their human resources.

The new HR policy, called IRACE (Infosys Role and Career Enhancement), was introduced in October 2009 during the recession. The policy consisted of multiple stages of changes, including assessing employees' abilities and positions, hiring and promotions/demotions based on roles, defining new career paths, and evaluating performance based on capabilities and strengths.

Typically, all employees in an organization strive to advance their position or salary, making it unusual to find someone who prefers demotion or working at a lower role. The information related to Psychological Myopia emphasizes a failure to consider how employees would react in the futur

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when they undergo an assessment of their skills and decisions are made based on this analysis. This oversight ultimately resulted in numerous employee demotions.

Infosys implemented a policy to guarantee a capable workforce in suitable roles, which included mandatory overtime of 9.15 hours per day. This initiative led to Infosys being acknowledged as the 'Best employer,' but numerous employees raised concerns about the award's criteria. The policy encountered substantial opposition from workers who suspected that the company's aim was to downsize and save money. Even proficient employees felt that these changes would solely favor the company, rather than benefiting them personally.

The company aimed to optimize the hierarchy and ensure employees were in suitable positions by reallocating them. According to Ms Nandita Gurjar, employees had the chance to select from a range of courses, departments, and domains to gain knowledge about the necessary skills, certifications, and technologies required for their desired role before making a switch.

Consequences of Resistance

In anticipation of demotion or termination, numerous employees chose to resign in order to safeguard their records from being affected by the changes. Consequently, hiring interviews were postponed as around 4000 employees (3% of the workforce) resigned, resulting in a significant impact.

Numerous dissatisfied employees vented their anger on the company's internal networking website, sparsh. They utilized the platform to abuse the media and post negative remarks and web logs criticizing the company and its leadership. Many employees also expressed their discontent on Facebook, creating communities fueled by animosity, while others took to Twitter to voice their concerns. In an attempt to engage with the employees, Ms. Gurjar utilized the company's intranet website to accept and request feedback from them. Unfortunately,

this resulted in an overwhelming negative response, with disgruntled employees using the website as an outlet for their anger. Ms. Gurjar regularly posted web logs and changed topics every Friday, allowing employees to participate freely. This initiative gained significant attention, with the web log receiving approximately 30,000 hits.

"Now we have made things unfastened and crystalline with official web logs. Here the difference is they put an electronic mail Idaho, even when they write debris," she adds, "I will any twenty-four hours esteem person who comes out with his electronic mail Idaho and say I hate this ( any policy determination ) . And they write to me straight, I do n't even necessitate a web log,''"

"I quit Infy bcoz of IRACE. The policies are merely hopeless."

Besides the enfranchisements drain all your energy. You become mere robots working tirelessly all day just to achieve an average performance in the assessment. I am a long-serving employee with 8 years in Infy. I, like everyone else, have been affected by the IRACE function, resulting in my aspirations being reduced by 2-3 years. Thanks to the recent increase in attrition rate in Infy, the management has entered crisis mode and downgraded employees who were previously at a higher level. The work environment is terrible and the HR department keeps implementing unpleasant policies one after another.

Currently, obtaining something as simple as a pen and notebook requires a lengthy process. One must submit a formal request, go to another building between 10 and 12, answer numerous questions from the facilities staff, and only if they are satisfied, can one acquire these items. I am aware of individuals who have been denied

more than one pen and notebook within a month! Additionally, there are restrictions on photocopying, faxing, and printing, limiting individuals to no more than 40 print-outs per day. The grievances go on and on. It is disheartening to see how the company I joined 8 years ago has changed. I am now seeking a more favorable work environment that prioritizes these basic requirements from an employee's perspective. Infy, in my opinion, is the worst company I have ever worked for. The company policies are nothing but a waste and are worse than those of a government organization. It shows minimal concern for its employees and is solely focused on getting work done at a lower cost.

The company faced challenges in trying to convert employees to demonstrate patience, resulting in a negative impact on its reputation. Despite opposition, the company continued to enforce the policy. Although the opposition has decreased, the company suffered a significant loss of human capital.

Meanwhile, Infosys implemented stricter measures for its campus selection process. They visited fewer technology colleges (300 instead of the usual 1000) and increased the trial and percentage cutoffs. This allowed them to choose top students from various colleges, according to Ms. Gurjar.

The company's intervention

Despite facing strong opposition, the company did not end the policy but made some concessions in 2010. They promoted 8500 employees and addressed the concerns by freezing all issue interviews. This slowed down the pace of the opposition and gave employees more time to consider their decision.

Ms. Gurjar conducted sentiment polls and promoted comments on her web logs regarding the policy. The Company instructed its employees to avoid internal criticism of the media and instead

encouraged them to openly express their opinions without directly criticizing external media.
Recommended Actions
The company should have provided education to employees about the change, ensuring they are well-informed about the advantages and disadvantages. When employees have early knowledge of these factors, they are less likely to resist as they become familiar with the change and experience less uncertainty. Employees should be actively engaged in the change process, allowing them to feel a sense of responsibility by participating in planning activities.

By engaging employees from the beginning, their motivation to participate in every stage of change will increase. Providing training is essential to empower them with the skills necessary to handle the new challenges that arise from the change. Emphasize viewing the change as an opportunity for personal growth, resulting in positive outcomes that facilitate employee development rather than hinder it. Encourage collaboration among different employee groups and prioritize seeking solutions to address any resistance instead of disregarding it.

Decision - Any organizational change aimed at company growth requires careful consideration. Many changes that could benefit employees and the company as a whole are being resisted due to ineffective management of the change process. Simply planning how the change will be implemented can greatly reduce employee resistance. Even global IT giants like Infosys can struggle with this due to Corporate Myopia, which causes them to think they know everything when they actually know nothing. It is therefore recommended to thoroughly analyze organizational and employee behavior before directly engaging with employees regarding the change.

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