What is resource management 4">strategic human Resources Management and how does it link the people with the strategic needs of the business? This paper attempts to analyze a case study regarding Infosys’ human resource (HR) operations at intermittent times between 1987 and 2003 when significant changes in the environment signaled management to pay attention and overcome adversities that ultimately arose from the economy and global changes being made. Company Background:
Infosys is a software company based out of India. The published information identifies the company’s intermittent strategic HR decisions during its operations between 1987 and 2003. Infosys’ Financial Successful yearly growth from 1993 to 2003 is represented easily by the following fact: Compound annual growth rate of 65%. (DeLong, Tandon & Rengaswamy, 2006) Strategic Human Resource Management:
Mello (2011) details four different roles that strategic human resource management are in contrast with traditional human resource management. Mello writes “Ideally, Human Resources should deliver results that enrich the organization’s value to its customers, its investors, and its employees.” Let’s take a look at these four different roles and analyze the Infosys case study. * HR becoming a partner with senior and line managers in strategy execution
The Essay on Evaluating Strategic Management
The strategic management process result in decision that can have significant, long lasting consequences. In many organizations, strategy evaluation is simply an appraisal of how well an organization has performed. Strategy evaluation includes three basic activities: 1. Examining the underlying bases of firm strategy 2. Comparing expected result with actual result 3. Taking corrective action to ...
* The primary strategy was to not quit and sell the company in 1989 when things got tough. When the U.S. government placed new restrictions on the number of B1 visas issued yearly; it affected Infosys’s ability to send employees to remote customers in the U.S. (DeLong, Tandon & Rengaswamy, 2006).
The company’s primary co-founder/owner, Narayana Murthy, convinced the other owners to stay on and continue, feeling that he company was going to succeed. He had faith in their team, values and abilities.
* HR becoming an expert in the way that work is organized and executed: * Murthy’s expertise became evident when insisting to improve brand equity, knowing this would be very difficult. One of the ways this was ensured by recognition was when, in 1999, Infosys became the first Indian company to list on the NASDAQ. Evidence of Murthy’s advanced thinking in strategy may be summed up by his insightful interpretation about ultimate success. He stated “Ideally, we need to change the playing field or if we can’t, then we need to change the rules of the game. Own the rules of the game so that everybody else is playing by your rules.” (DeLong, Tandon & Rengaswamy, 2006)
* HR becoming a champion for employees, working to increase employee contribution and commitment to the organization: * The primary co-founder, Murthy believed that “…every human being needs incentives to move forward, whether in the form of money, recognition, or fame.” (DeLong, Tandon & Rengaswamy, 2006).
Infosys provided different incentives to the different people working there, such as issuing stock options, relocating to an 80 acre campus with dining, residential, and recreational benefits. Things went well for a while, being named the best employer to work for in 2001 and 2002, but by 2003, the company had grown so much that it seemed desensitized to the needs of the employees and the dissatisfaction at work showed.
* HR becoming an agent of continuous transformation that shapes processes and culture to improve an organization’s capacity for change: * Infosys showed how it can change by trying to incorporate higher-end, value added services such as design and strategy and not only focusing on maintaining strategies already created. It also showed its capacity for change when they almost went out of business and needed a drastic change of strategy (Delong, Tandon & Rengaswamy, 2006).
The Review on Employee Resistance to Change
Contemporary business dynamics are pressuring organisations to change and adapt effective strategies to operate and remain competitive within this competitive environment. As a result, organisations are responding by embracing change as part of the transformation and strategising process (Pieterse, Caniels & Homan, 2012, p. 799). However, when changes in the organisations occur, employees are ...
Strategic human resource management is the proactive management of people; thinking ahead and planning ways to better meet the needs of the employees, while at the same time, promoting the companies goals. Unfortunately, as Infosys grew, their employees began to feel that the company had become insensitive to their needs. My recommendation would be for Infosys to look at ways of increasing their relationship with their employees and getting the higher and middle management back in touch with the employees.
Conclusion: Though Infosys saw its share of ups and downs and went through a variety of changes throughout the case, they knew that the employees, the “human resources” were its most valuable resource. They ensured that the salaries were in the top 10-15% of competitors compensations, offering stock options, and they offered many benefits on the campus that they moved to and by doing this, at least early on, were able to reduce the cost of hiring and recruiting new employees, and also helped to improve the production of each of these employees which benefited the company’s goals. Infosys had recognized that employees are only as committed to the company as the company is committed to the employees (Delong, Tandon & Rengaswamy, 2006).
