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Narayana Murthy and Infosys: Case Study

Narayana Murthy co-founded Infosys in 1981 and implemented strategies that made it one of India's largest IT companies. Infosys was the first company to push for offshore software development and comply with US accounting standards. Murthy focused on the challenging US market and led Infosys' global expansion through strategic acquisitions and a listing on NASDAQ. Infosys emphasized rigorous hiring, training programs, and performance-based rewards to develop a skilled workforce and low employee turnover. Murthy's leadership and Infosys' emphasis on ethics, transparency, and corporate governance contributed to its long-term success.

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Asim Mahato
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90 views

Narayana Murthy and Infosys: Case Study

Narayana Murthy co-founded Infosys in 1981 and implemented strategies that made it one of India's largest IT companies. Infosys was the first company to push for offshore software development and comply with US accounting standards. Murthy focused on the challenging US market and led Infosys' global expansion through strategic acquisitions and a listing on NASDAQ. Infosys emphasized rigorous hiring, training programs, and performance-based rewards to develop a skilled workforce and low employee turnover. Murthy's leadership and Infosys' emphasis on ethics, transparency, and corporate governance contributed to its long-term success.

Uploaded by

Asim Mahato
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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NARAYANA MURTHY AND INFOSYS

Case Study.

PRESENTATION PLAN
Objective of the Case. Introduction to Mr. Narayana Murthy and INFOSYS.

Key Qualities of INFOSYS.


Human Resource Practices at INFOSYS. Conclusion. Bibliography.

OBJECTIVES OF THE CASE


To analyse the strategies implemented by Narayana Murthy which made Infosys one of the biggest IT companies in India. Brief Discussion Of HR Policies At Infosys.

NARAYAN MURTHY AND INFOSYS


Educational Milestone of Murthy B. E. (Electrical) from the University of Mysore (1967) M. Tech. (Electrical) from the IIT, Kanpur (1969).

Career.
Started his career as head of computer system at IIM,Ahmedabad. Life at Paris. Headed Patni computer systems Pvt.Ltd., Mumbai. He believed that the only way to pull India out of Poverty is was to create more jobs. Infosys. Started in the year 1981 by seven professional entrepreneurs Infosys was the first company to,

Push for offshore software development against Body shopping. To follow the US GAAP disclosure norms before going to NASDAQ listing in 1999.

THE ROAD TO SUCCESS


In the early 1980s, Narayan Murthy focused on the worlds most challenging market- the US. 1987-Kurt Salmon Associates and Infosys. 1988-89- Reebok and Digital Equipment. Early 1990s-.Competition with Indian as well as overseas companies 1994- Joint venture with KSA dissolved. 1995- Yantra Corp. Satyam Computers and DCM. 1998- Listing of shares on NASDAQ This was the globalization of the Indian software industry.

NARAYANA MURTHYS GLOBAL STRATEGY

GDM Global Delivery Model


Moving up the Value Chain PSPD Predictability of revenues Sustainability of the predictions Profitability of revenues De-risking

PEOPLE MANAGEMENT
All about Managing People i.e. H.R of company. Low employee turn over at Infosys. Rigorous selection process and Proactive HRD practice.

INFOSYSS HRM STRATEGY


Get the big picture Develop a Mission Statement or Statement of Intent Conduct a SWOT analysis of the organization Conduct a detailed human resources analysis Determine critical people issues Develop consequences and solutions Implementation and evaluation of the action plans

Recruitment

Training

HR Policy
Reward and Recognition Performance Management

IMPORTANCE OF COMMUNICATION
Media Electronic Bulletin Boards Chairmans list

FACILITIES FOR EMPLOYEES


Employee training Recreation facilities. Events. Insurance and security facilities. Withinsy Transport facilities. Maternal leaves. Creche facilities. ESOP. Reward system.

Strategic Reward Systems


Skill-based pay

Training Overtime pay rules in contract Rewards Labor Relations

Culture

Merit pay reinforces performance culture

Performance Management

Sign-on Bonus

Employment Merit Pay


MBAO 6030 Human Resource Management

TYPES OF BENEFITS

MONETARY

NON MONETARY

Increments

Promotions

Compensation
Overtime Performance - pay

Housing Facilities
Conveyance Facilities Fringe Benefits

EMPLOYEE STOCK OPTION PLAN (ESOP)

Highly profitable reward system. Method of generating wealth. Offers emotional and financial ownership to the employees. Performance management tool for attracting and retaining talent. Win loyalty, accountability of employees as their own interest is vested into it.

CORPORATE GOVERNANCE
What is corporate governance?

includes relationships among the stakeholders and the goals for which the corporation is governed
working ethically

finding a balance between economic and social goals

CORPORATE GOVERNANCE RATINGS

Allocation of power among Board of Directors, management and shareholders. CRISIL GVC Level 1 & ICRAs CGR 1 rating Transparent shareholding patterns, sound Board practices, interactive decision-making powers, high level of transparency and disclosures. Director Addressing Share Holders.

GAAP
Combination/set of authoritative standards

Commonly accepted ways of recording


Reporting accounting information

Imposed on companies to report their financial data via financial statements


Investors can analyze with minimum consistency

LEADERSHIP TRAINING
Institute setup in 2001 Head of the institute- Girish Vaidya Objective- to create world class leaders at the forefront of the business Leaders split into 3 tiers Each tier mentored by a tier of senior colleagues Focuses strongly on quality processes and methodologies and enhancing managerial capabilities. Sessions with senior leaders.

REASONS BEHIND THE SUCCESS OF INFOSYS


Employee care Decision making

Efficiency and effectiveness


Commitment to values and ethics Innovative ideas Leadership

BIBLIOGRAPHY
Essentials of Management- Koontz www.infy.com

www.indiainfoline.com

Presented By:- Group 1 MBA(HR) 1st year

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