Whether its about employees, shareholders, customers, suppliers, or India at large, Infosys realises that it has a huge reputation to protect. So far, it has been able to shoulder the responsibility well. Infosys talks to B&E... by Virat Bahri
Their situation was extremely difficult last year, when Infosys announced increase in variable pay and freezing of salary hikes and promotions in April 2009; citing the devastating impact of the recession. And that makes the company’s decision to implement 13-17% salary hikes across the board very special for Infosys employees.
When you are one of India’s most respected IT companies, you obviously have a reputation to live up to. Moreover, you can ill afford to take any decision without the big picture in mind. Infosys demonstrated that even last year with respect to its HR policy. Salary hikes were frozen, but the company did meet its hiring commitments that it had made across campuses and build the bench, as Kris tells us. It was an investment in retaining its reputation, for that’s what matters in the long run for them.
Chairman & Chief Mentor N. R. Narayana Murthy expresses his view about the purpose of an organisation thus, “The primary purpose of corporate leadership is to create wealth legally and ethically. This translates to bringing a high level of satisfaction to five constituencies – customers, employees, investors, vendors and the society-at-large.” Even as far as shareholders are concerned, Infosys is more concerned about long term shareholder expectations as opposed to short term. The company follows a defined set of standards on its dividend policy which mandate that the company cannot pay out more than 30% of its post tax profits as dividend, a policy which the board reviews periodically. Also, the dividend is declared twice a year, once in October post announcement of Q2 results and once during the AGM post the announcement of annual results. The interim dividend paid for FY 2009-10 was Rs.10 per share and the final dividend proposed is Rs.10 per share; which is expected to be approved at the AGM.
Their situation was extremely difficult last year, when Infosys announced increase in variable pay and freezing of salary hikes and promotions in April 2009; citing the devastating impact of the recession. And that makes the company’s decision to implement 13-17% salary hikes across the board very special for Infosys employees.
When you are one of India’s most respected IT companies, you obviously have a reputation to live up to. Moreover, you can ill afford to take any decision without the big picture in mind. Infosys demonstrated that even last year with respect to its HR policy. Salary hikes were frozen, but the company did meet its hiring commitments that it had made across campuses and build the bench, as Kris tells us. It was an investment in retaining its reputation, for that’s what matters in the long run for them.
Chairman & Chief Mentor N. R. Narayana Murthy expresses his view about the purpose of an organisation thus, “The primary purpose of corporate leadership is to create wealth legally and ethically. This translates to bringing a high level of satisfaction to five constituencies – customers, employees, investors, vendors and the society-at-large.” Even as far as shareholders are concerned, Infosys is more concerned about long term shareholder expectations as opposed to short term. The company follows a defined set of standards on its dividend policy which mandate that the company cannot pay out more than 30% of its post tax profits as dividend, a policy which the board reviews periodically. Also, the dividend is declared twice a year, once in October post announcement of Q2 results and once during the AGM post the announcement of annual results. The interim dividend paid for FY 2009-10 was Rs.10 per share and the final dividend proposed is Rs.10 per share; which is expected to be approved at the AGM.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
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IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
