HRM PROJECT REPORT

STUDY OF PERFORMANCE MANAGEMENT AND

COMPENSATION POLICY
AT INFOSYS LIMITED

Bachelor of Technology in Electronics and Communication Engineering

Submitted By
KULDEEP VERMA
MD. SHAFI MIR
GAURAV KUMAR VERMA
MRIDUL AAKASH PANDEY

Submitted To
Ms. ANSHUL CHAUDHARY
Assistant professor
Department of Electronics and Communication Engineering
School of Engineering and Technology, Sharda University
Greater Noida, U.P. - 201306
(2014-15)

ACKNOWLEDGEMENT
We would like to express our greatest thank to those people who have helped and supported us
throughout our project.
We are grateful to our teacher Ms. ANSHUL CHAUDHARY MAM for her continuous
support for the project, from initial advice and ongoing advice and encouragement for this
project.
A special thank of our goes to my colleague who helped us in completing the project and
exchange interesting ideas and made this project easy and accurate. Finally GOD who made all
the things possible.
THANKING YOU

KULDEEP VERMA
MD.SHAFI MIR
GAURAV KUMAR VERMA
MRIDUL AAKASH PANDEY
ECE-B

Table of Contents
1.0 INFOSYS-THE COMPANY PROFILE ................................................................................................. 4
1.1 Vision - We will be a globally respected corporation. ............................................................................ 4
1.2 Mission................................................................................................................................................ 4
1.3 Values ................................................................................................................................................. 4
1.3.1 Client Value ................................................................................................................................. 4
1.3.2 Leadership by Example................................................................................................................ 5
1.3.3 Integrity and Transparency .......................................................................................................... 5
1.3.4 Fairness ........................................................................................................................................ 5
1.3.5 Excellence .................................................................................................................................... 5
2.0 PERFORMANCE MANAGEMENT POLICY ...................................................................................... 6
2.1 PERFORMANCE ASSESSMENT..................................................................................................... 6
2.2 KEY RESULTANT AREA ................................................................................................................ 6
2.3 RATINGS ........................................................................................................................................... 8
3.0 COMPENSATION POLICY .................................................................................................................. 8
3.1 SALARY REVIEW OF EMPLOYEES ............................................................................................. 9
3.2 Sizing of the Job................................................................................................................................ 10
3.2.1 Cluster approach ........................................................................................................................ 10
3.3 Prizing of the Job .............................................................................................................................. 10
3.4 COMPARISON ................................................................................................................................ 11
3.5 Infosys Board Compensation ............................................................................................................ 11
4.0 CONCLUSION ..................................................................................................................................... 12

1.0 INFOSYS-THE COMPANY PROFILE

Infosys is a global leader in consulting, technology, and outsourcing solutions. As a proven

partner focused on building tomorrow's enterprise, Infosys enables clients in more than 30
countries to outperform the competition and stay ahead of the innovation curve. With US$8.25bn
in FY14 revenues and 160,000+ employees, we provide enterprises with strategic insights on
what lies ahead. We help enterprises transform and thrive in a changing world through strategic
consulting, operational leadership, and the co-creation of breakthrough solutions, including those
in mobility, sustainability, big data, and cloud computing.

Infosys Limited (NASDAQ: INFY) started on 1981 by seven people with US$ 250.
Today, it is a global leader in the "next generation" of IT and consulting
Revenues of US$ 6.604 billion (LTM Q2-FY12).

1.1 Vision - We will be a globally respected corporation.

1.2 Mission - To achieve our objectives in an environment

of fairness, honesty, and

courtesy towards our clients, employees, vendors and society at large.

1.3 Values-

Infosys believes that the softest pillow is a clear conscience. The values that
drive it underscore its commitment to:

1.3.1 Client Value - To surpass client expectations consistently

1.3.2 Leadership by Example - To set standards in our business and transactions and
be an exemplar for the industry and ourselves

1.3.3 Integrity and Transparency -

To be ethical, sincere and open in all our

transactions

1.3.4 Fairness -

To be objective and transaction-oriented, and thereby earn trust and

respect

1.3.5 Excellence -

To strive relentlessly, constantly improve ourselves, our teams, our

services and products to become the best.

2.0 PERFORMANCE MANAGEMENT POLICY

Steps for Performance Appraisal:

Evaluation of personal skills for the tasks assigned to an employee during the period of
appraisal.

Evaluation of the performance, different criteria's were considered.

The personal skills of the employees were also evaluated based on their learning and
analytical ability etc.

Each of these criteria was measured on a scale of 1 to 5.

360 Degree Feedback

Recognition for Adding Value

Employee-Management Interface

Focus on Learning

Innovation

Business Continuity Plan

2.1 PERFORMANCE ASSESSMENT

A bi-annual process.

Various tools used are used.

The system is called Online- PerforMagic.

Consolidated relative rating is calculated.

Assessment of an individuals performance relative to the peer group is carried.

Rating ranges from 1+ to 4.

2.2 KEY RESULTANT AREA

KRAs are mutually set through a discussion between the manager and the employee.
Self Assessment (by appraise)

Review by Team Leader in a one to one meeting between the project manager
and the software engineer.

 Final review by the project Manager (Reviewer)

Finally the points are given.
The report is sent three levels higher.
Then it is sent back to the engineer to find if he/she is satisfied.
If it is agreeable then it is finalized.
There is a salary hike or a band change accordingly.

This entire system is online. Hence everyone involved in the process gets to gets track of
it. This ensures transparency.

2.3 RATINGS

Combined Ratings impact three key areas:

Performance Incentives
Salary Reviews
Promotions

Star performers awarded with STAR INFOSIAN Certificate.

3.0 COMPENSATION POLICY

There are three basic strategies for an organization's salary policy:

In the jobs that we studied, SAP BI Consultant and Software Engineer, Infosys follows a LEAD
STRATEGY.

3.1 SALARY REVIEW OF EMPLOYEES

3.2 Sizing of the Job

3.2.1 Cluster approach

8 Levels

Cluster approach is followed to size the job, based upon the Job evaluation.

Sizing of the job of SAP BI Consultant is done at LEVEL 4 and Software Engineer is
done at LEVEL 2.

3.3 Prizing of the Job

3.4 COMPARISON

3.5 Infosys Board Compensation

The compensation committee determines and recommends to the Board the compensation
payable to the directors.

All Board-level compensation is approved by the shareholders and separately disclosed in

the financial statements.

Remuneration of the executive directors consists of a fixed component and a performance

incentive.

The compensation committee makes a quarterly appraisal of the performance of the

executive directors based on a detailed performance-related matrix.

The compensation payable to the independent directors is limited to a fixed amount per
year as determined and approved by the Board, the sum of which is within the limit of
1% of net profits for the year, calculated as per the provisions of the Companies Act,
1956.

4.0 CONCLUSION
Strategic Human Resources Management is all about balancing human resources so that the
company is meeting the needs of its employees and the employees are meeting the needs of the
company. If this is not balanced, either the employees or the company will suffer, or sometimes
both. The solution that we recommend for the improvement of employee satisfaction at Infosys
is a focus on improving communication within the organization. We believe that if
communication is improved and managers work more closely with their employees, the
employees will gain a better understanding of their roles within the company, the value they are
providing to the company as a whole through the work they do, and how decisions that are made
by the management ultimately impact them. We also think that if the managers work more
closely with the lower-level employees, they will gain a better understanding of the issues and
frustrations that the lower-level employees might be facing which will help them take steps to
improve any problems that might be occurring. Companies who work hard to meet the needs of
their employees can cultivate a work atmosphere conducive to productivity. Strategic Human
Resource Management is the best way to achieve this because by being able to plan for the needs
of employees by thinking ahead can help to improve the rate of skilled employees who chose to
remain working for a company, which then improves the employee retention rate and can reduce
the money companies spend on finding and training new employees. In the case of Infosys, the
greatest employee need is to feel as though they are doing meaningful work and to understand
where they fit into the ever-growing organization and how the changes that are made impact
them, and that is not something that money or material benefits can help achieve.