PROBLEM STATEMENT

“Infosys, recognized for its HR practices and considered a model employer, is

unexpectedly facing major employee dissatisfaction and trust deficit in recent
years due to the latest reforms and policies introduced by its HR department.
Infosys needs to recapture the hearts of the Infoscions to get back on the Best
Employer’s List.”
 SITUATIONAL ANALYSIS
Infosys evolved multi-fold post liberalisation, catering to a global diversity model
and employing 15000 people by the end of 2002. Known for its values, ethical
practises and an employee centric work opportunity, Infosys provided all
Infoscions learning value addition through training, emotional value addition
through work environment and financial value addition through compensation and
benefits.
However due to recent HR reforms, the company faced unintended negative
repercussions against the management. The following factors piled up to create
employee dissatisfaction, leading to high turnover.
1) SEBI Intervention’s resulting in declined returns through investments in stocks.
2) Low quality of assignments due to their monotonous nature.
3) Greater number of employees on bench due to lack of projects.
4) Difficulty is going onsite due to Visa restrictions imposed.
5) Introduction of Variable pay for employee compensation.
6) Merging of hierarchy bands for employee evaluation and deployment.
7) Changing criteria for employee promotion and appraisal.
8) Miscommunication between employee and management, further aggravated by
rumours.
 ALTERNATIVES

1) Terminate dissenting employees for not aligning with the organization’s

decisions and spreading a culture of ambiguity and mistrust.
2) Recall all reforms that created such an upheaval among the workforce.
3) Introduce short-term monetary benefits for countering the growing
discomfort.
4) Institute a dedicated body representing all the stakeholders for
executing a detailed investigation and implementing solutions.
 CRITERIA FOR EVALUATION

Legal Financial Ethical Social

Alternative 1 YES NO NO NO

Alternative 2 YES NO NO NO

Alternative 3 YES NO YES NO

Alternative 4 YES YES YES YES

 ACTION PLAN
 Carry out a detailed investigation in order to gain a broader
perspective regarding the employee concerns.
 Study the firm’s structural, financial, organisational and cultural
constraints to evaluate the feasibility of our options, and trigger efforts
in the direction that would bridge the existing gap.
 Study competitors in the market to understand their policies for
employee welfare and retention.
 Contact all stakeholders for inputs and implement effective solutions
for redressal.
 Control, monitor and counter grapevine in order to avoid further
miscommunication.
 Ensure that all the reforms that will be initiated henceforth are done
gradually, for greater acceptance and adjustment among the work
force.
 RECOMMENDATION

Post analysing the case, we recommend alternative 4 i.e. to

institute a dedicated body representing all the stakeholders
for executing a detailed investigation and subsequent
grievance redressal. This will not only address the current
growing dissent among the employees but also showcase
that employee concerns don’t go unnoticed and effective
steps are taken towards the same.