Management of Human Resources at INFOSYS
“Our assets walk out of the door each evening. We have to make sure that they come back the next morning” (as stated by Narayana Murthy former, CEO of INFOSYS.) At a time when organisations are debating the strategic importance of their human resources, Infosys, a consulting and software services organisation, includes its human resources on its balance sheet to affirm their asset value. The rationale for this is as follows: “The long term success of a company is usually examined on certain financial and non-financial parameters. Human resources are among these new non financial parameters that challenge the usefulness of evaluating corporate success solely on traditional measures. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organisation.” As a knowledge intensive company, Infosys recognises the value of its human assets in maintaining its competitive position. It realises that these assets can easily walk away, as competitors in India and abroad covet its IT talent. Consequently, the challenge facing Infosys is how to attract, retain and develop its human assets in a highly competitive and dynamic environment? Most of the current human resource practices at Infosys result from the vision of the leaders and the culture that they have created. Narayana Murthy, known for his leadership and vision is the public image of Infosys. His leadership style is humble and straight-forward, quite uncommon in the world of Indian business. He believes in sharing wealth with his employees and in leading by example. In a knowledge-based business like Infosys, he sees the importance of consistency in rhetoric and action in empowering employees. He is credited with creating a culture of closeness and empowerment at Infosys. His management style, rare among Indian business leaders, is based on western management.
What according to Narayana Murthy will help in retaining his employees in a highly competitive and dynamic environment?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Sharing wealth with his employees
Option (1) Motivating employees to do overtime — Incorrect. Longer hours are a demand made on employees, not a reason for them to stay. The passage says nothing of the kind.
Option (2) Allowing employees to take frequent breaks — Incorrect. This is not mentioned in the passage. A break is a working condition, not a reason to stay with a firm.
Option (3) Attracting employees of its competitors to join his organization — Incorrect. This turns the question round. The passage says that competitors want Infosys people. Keeping one’s own employees is a different problem from hiring somebody else’s.
Option (4) Sharing wealth with his employees — Correct. The passage records this as Murthy’s own belief. This is a financial incentive. Profit sharing and co-partnership schemes give employees a share of the profit or a share in the ownership. The employee then gains directly when the company does well, and he loses something real if he leaves. In a business where other firms are always trying to hire its people, that is what makes them stay.
Note: The passage is the NCERT case study ‘Management of Human Resources at INFOSYS’, which has been reproduced by NTA in the exam. NCERT (2026-27 Edition): “Management of Human Resources at INFOSYS … Most of the current human resource practices at Infosys result from the vision of the leaders and the culture that they have created. Narayana Murthy, known for his leadership and vision is the public image of Infosys. His leadership style is humble and straight-forward, quite uncommon in the world of Indian business. He believes in sharing wealth with his employees and in leading by example. …” |