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072 Arjun a Menon BRM Proposal

Jan 12, 2016

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BRM research paper

  • High Attrition Rate

    Among Employees in

    Infosys Limited

    B y ,

    A r j u n A M e n o n

    P G P / 1 6 / 0 7 2

    S E C T I O N B

    B U S I N E S S R E S E A R C H

    P R O P O S A L

  • 2

    Contents

    PROPOSED TITLE ........................................................................................................................ 3

    ABSTRACT .................................................................................................................................... 3

    INTRODUCTION .......................................................................................................................... 4

    PROBLEM STRUCTURING ......................................................................................................... 5

    LITERATURE REVIEW ............................................................................................................... 7

    RESEARCH OBJECTIVE ........................................................................................................... 10

    RESEARCH QUESTION ............................................................................................................. 10

    PROPOSED METHODOLOGY .................................................................................................. 10

    CAUSAL LOOP MODEL ............................................................................................................ 12

    LIMITATIONS ............................................................................................................................. 14

    FUTURE SCOPE.......................................................................................................................... 14

    REFERENCE ................................................................................................................................ 15

  • 3

    1. PROPOSED TITLE

    High attrition rate among Employees in Infosys Limited

    2. ABSTRACT

    This paper examines the high attrition rate among the employees in Infosys. The problem

    structuring involves stakeholder analysis using the systems approach which consists of stake

    holder map, stake holder chart and then considers the specific stakes of a few stake holders. The

    methodology proposed through this model involves a system of survey and personal interviews

    in order to obtain data from the respondents and using that to analyze the problem. Different

    variables which have an impact on attrition rate are considered in the model. The analysis of the

    problem is based on the qualitative data thus obtained.. A causal loop model has been prepared to

    depict the relationship among the various variables examined. The paper concludes by

    suggesting a few recommendations based upon the results and observations of the analysis in

    order to reduce the attrition rate of the employees.

    Keywords:

    Stakeholder analysis, Systems Approach, Causal Loop Model, Variables

  • 4

    3. INTRODUCTION

    Infosys was founded in 1981 and has grown to become the third largest India based IT services

    company by 2012 revenues in the past 32 years. Aided by the liberal government policies, an

    educated English Speaking Population and a growing demand for outsourced IT services has

    helped Infosys in registering a spectacular growth within a relatively short span of time. Infosys

    has a global footprint with 67 offices and 69 development centers in US, India, China, Australia,

    Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many

    other countries. Infosys and its subsidiaries have 155,629 employees as on Dec 31, 2012.

    However, over the past 2-3 years, the firm is witnessing a shocking increase in the attrition rates.

    Even though the attrition rates are high for the software industry in general, Infosys figure of

    14.9% in the first quarter of 2012 is the highest compared to its peers.

    A major share of the Infosys recruitment process is through campus hiring. The attrition

    rates have disturbed the attractiveness of the company among the students in the engineering

    colleges as well. The loss of talent pool is affecting the productivity of the firm. The companies

    expected revenue growth of 8-10% is lower than the Nasscom forecast for the industry of 11-

    14%.

  • 5

    4. PROBLEM STRUCTURING

    Stake holder Analysis:

    Stake holder map

    Specific Stakeholder Chart

    HIGH ATTRITION RATE AMONG EMPLOYEES IN INFOSYS

    EMPLOYER COMMUNITY

    CLIENTS

    EMPLOYEES SUPPLIERS

    COMPETITORS

    SHAREHOLDERS

    COMMUNITY

    Beneficiaries of Infosys

    Foundation

    Families of the employees

    CLIENTS

    Honeywell

    ICICI Bank

    Spirit Aerosystems

    Etc.

    Management

    Human Resources

    Administration

    Accounts

  • 6

    Stakes of Stakeholders

    The stakes of one of the divisions under each of the stakeholders have been considered

    COMPETITORS

    TCS

    Cognizant

    Accenture

    Shareholders

    Employers

    Financial Institutions

    Common People

    Suppliers

    Hardware Vendors

    Infrastructure Providers

    Recruitment Agencies

    Employees

    Reporting Managers

    Peer Group

    Subordinates

    Employer

    Training and

    Recruitment

    Community

    Transfer of

    Resources and

    Culture

    Competitors

    Award of New

    Contracts

    Clients

    Talented workers

    being employed

    for their project

    Shareholders

    Higher confidence

    from better and

    bigger intake

    Suppliers

    Frequent change

    In the

    requirements

  • 7

    5. LITERATURE REVIEW

    THE INDIAN SOFTWARE SERVICES INDUSTRY by Ashish Arora, V.S.Arunachalam,Jai

    Asundi and Ronald Fernandes is a thorough study on the growth of software service sector in

    India ,the factors that contributed to it and its impact on the Indian economy. It gives a

    foundation on how crucial conducting a study on the problem of attrition which is plaguing a

    prominent firm like Infosys is.

    MANAGING GROWTH: HUMAN RESOURCE MANAGEMENT CHALLENGES FACING

    THE INDIAN SOFTWARE INDUSTRY by Narendra.M.Agarwal, Naresh Khatri and

    R.Srinivasan deals with the challenges with respect to Human Resource Management faced by

    the Indian Software Industry. The paper identifies high turnover as the most crucial problem and

    maps the reasons for it. Thus, it throws light on the fact that the problem faced by Infosys may

    not be organization specific.

    ANTECEDENTS TO IT PERSONNELS INTENTION TO LEAVE: A SYSTEMATIC

    LITERATURE REVIEW by Amir Hussein Ghapanchi and Aybuke Aurum studies the various

    IT turnover drivers and classify them into various categories and suggest which of them are

    relevant for an IT manager to check the problem of attrition.

    THE CAUSAL ORDER OF JOB SATISFACTION AND ORGANISATIONAL COMMITMENT

    IN MODELS OF EMPLOYEE TURNOVER by Douglas B Currivan tries to establish a causal

    order among the two key determinants of turnover, Job Satisfaction and Organizational

    Commitment. It analyses four different models by changing the order. Through the use of sample

  • 8

    survey and panel interviews the data is collected. The study concludes that there is no significant

    relation between satisfaction and commitment but they have a causal relationship with turnover.

    NON-LINEAR GROWTH: THE ROAD AHEAD FOR INDIAN IT OUTSOURCING

    COMPANIES:THE INFOSYS EXPERIENCE by YLR Murthi discusses about the need of

    disruptive innovations in the Indian IT outsourcing industry. Author conducts an interview with

    Former Infosys CEO S Gopalakrishnan. It throws light on the importance of manpower in the

    midst of trying to create non-linear revenues through technologies like cloud computing.

    MANPOWER PLANNING AND EMPLOYEE ATTRITION ANALYTICS (A Markov Analysis

    Attempt for Attrition-Rate Prediction and Stabilization) by Suvro Raychaudhuri the author has

    focussed on the trend of considering employees as internal customers and manpower attrition has

    been considered similar to customer switching problems. The paper looks into the usage of

    Markovian analysis to predict attrition which forms a base for manpower planning.

    ATTRITION RATE: CHALLENGE BEFORE THE ORGANISATION by Randhir Kumar

    Singh focuses upon the seriousness about the concern considering employees as human capital.

    focuses upon the tangible costs incurred because of replacement of employees and this includes ,

    recruitment and selection costs ,cost due to training new employees, possible product quality

    problems, adjustment time etc. The literature concludes by stating that although its feasible to

    cover the tangible losses at a certain expense, its not feasible to cover the intangible expenses.

    ROLES OF PERCEIVED EXCHANGE QUALITY AND ORGANISATIONAL

    IDENTIFICATION IN PREDICTING TURNOVER INTENTION by Manish Kumar and

    Shailendra Singh focuses on how the environment in which the employee-manager exchange as

  • 9

    well as the general communication takes place and how this affects turnover.. It also examines

    the importance of organizational identification in regulating attrition.

    CULTURE,EMPLOYEE WORK OUTCOMES

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