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.
The above case study is mainly explaining which particular Function of Management?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Staffing
Option (1) Staffing — Correct. The passage states the company’s problem as attracting, retaining and developing its human assets. Those three words are the staffing function itself. Recruitment and selection bring people in. Pay and career management keep them. Training and development build them up. Everything in the case, from valuing employees as assets to the practices that hold on to IT talent, belongs to staffing.
Option (2) Planning — Incorrect. Planning means deciding in advance what to do and how to do it. The passage sets out no objectives, targets or courses of action to choose between.
Option (3) Organizing — Incorrect. Organising groups activities into departments and fixes who reports to whom. The passage never discusses the structure of the firm.
Option (4) Directing — Incorrect. Murthy’s leadership style is mentioned, but only as one reason why the firm keeps its people. The passage as a whole is about managing the human resource, not about instructing and supervising employees at work.
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 … 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?” |