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Strategies for Business Excellence
Competency-based HR Practices
Hema Ravichandar
Senior Vice President - HRD
1
Safe Harbour
Certain statements in this release concerning our future growth prospects are
forward-looking statements which involve a number of risks and uncertainties
that could cause actual results to differ materially from those in such forwardlooking statements. The risks and uncertainties relating to these statements
include, but are not limited to, risks and uncertainties regarding fluctuations in
earnings, our ability to manage growth, intense competition in IT services
including those factors which may affect our cost advantage, wage increases in
India, our ability to attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our international operations,
reduced demand for technology in our key focus areas, disruptions in
telecommunication networks, our ability to successfully complete and integrate
potential acquisitions, liability for damages on our service contracts, the success
of the companies in which Infosys has made strategic investments, withdrawal
of governmental fiscal incentives, political instability, legal restrictions on raising
capital or acquiring companies outside India, and unauthorized use of our
intellectual property and general economic conditions affecting our industry.
Additional risks that could affect our future operating results are more fully
described in our United States Securities and Exchange Commission filings
including our Annual Report on Form 20-F for the fiscal year ended March 31,
2001. This filing is available at www.sec.gov. Infosys may, from time to time,
make additional written and oral forward looking statements, including
statements contained in the company's filings with the Securities and Exchange
Commission and our reports to shareholders. The company does not undertake
to update any forward-looking statement that may be made from time to time by
or on behalf of the company
2
Strategic HR

‘Having the right HR structures and practices in place
helps people to make the right choices to support
your strategy’
Michel Porter

‘An integrated HR approach is essential, linking
company strategy, pay systems and employee
behaviour’
Ed Lawler

‘ Put all the business strategies on one wall and HR
programmes on the other wall and hope to hell they
line up’
Senior VP HR, Amoco Oil
3
The HR Imperative
• Alignment of All HR Practices
• Integrated HR Management to Meet
Organizational Objectives
• Achieved by Having Competency Based
Practices
4
Integrated Approach to Competency
based People Practices in Infosys
Selection
Training
&
Development
Competencie
s
Performance
management
5
Reward
Role Family Hierarchy:
Project Management
Strategic
Practice Head
Resource Allocation
Delivery Manager/Account Manager
Project Management Project Manager, Group Project Manager
Specialists
6
Developer
Resident Project
Coordinator
Embracing the Role-based
Structure
Role- based

Competencies

Recruitment

Performance & Potential
Appraisal

Training

Broad banding &
Organizational Progression*
Structure
* Effective July 1, 2002
7
The Job Evaluation Evolution
OLD
GRADE
The JE Evolution
TENURE
NOW
PROMOTION
• Job/grade Mismatch
• Unreal Expectations
• Based on Tenure and
not Performance
• Growth Based on
Ability
• Connected With
Org. Growth
8
JOB
Performance
in Current Job
Org.
Requirement for
Job from
Promotion Model
Competency
for Next Role
NEXT
JOB
Integrating Competency Building
to Create a Culture of HPOE
Performagic
Set Objectives
based on unit
objectives
ILITE Trn g
Records
Review the objectives as
an ongoing process
ILITE
Signed off Training Plan
A : 10% Way above expectations
No
No
Banding
Do an appraisal and fix the
ratings (based on
suggested %)
Yes
Band 1 (High)
-10%,
Band 2 (Medium) - 80%,
Band 3 (Low)
- 10%.
Top 10%
Reward
High Potentials
Talent Council
9
B+ & B: 80%Meets or exceeds expectations
B- & C : 10%Below expectations, needs Improvement
Potential Evaluation for all
(for PA and above)
considered for role change/
promotion
Banding in
Performagic at the
PU/Department Level
Bottom 10%
Others
Communication thru the system
Could move to Performance Improvement
Plan
Compensation
Benefit System
1. Individual
Compensation
Structuring
2. Promotion Decision
Integrated
Performance
Management
Relationship between
Compensation and Competence
Review the
cost/benefit
Develop
Potential
Fix Pay
Competence of Staff
10
Specific Initiatives to Strengthen
People Practices under PCMM
Base-lining of Competencies to Drive Improvement
Programs
 Tracking of Career Aspirations
 Goal Flow Down & Objective Setting of All
Employees
 Formal Mentoring Program
 Metrics Driven HR Operation
 People Practices Innovation a Way of Life

Infosys Technologies Has Been Assessed at Level 5 on the
PCMM Model by KPMG, Becoming the First Company in the
World to Be Assessed at the Optimizing Level on the Updated
Version 2.0 of the Model.
11
Finally…Integrating HR Strategy
with Business Strategy
VISION
MISSION
GOALS
VALUES
OBJECTIVES
ATTITUDES
ACTIONS
BEHAVIOURS
PERFORMANCE
12
Awards & Accolades
Recent Awards Won



Data Quest-idc INDIA SURVEY: Indian It's Best
Employers, September 2002: Second Year Running
Business Today- Hewitt Best Employers in India,
Jan 2002: Second Year Running
People Capability Maturity Model,
Level 5 Aug 2002


13
Infosys Assessed at Level 5 on the PCMM Model by
KPMG, Becoming the First Company in the World to
Be Assessed at the Optimising Level on the
Updated Version 2.0 of the Model
Thank You
www.Infosys.com
14