Inspire technologies failed to inspire

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  • 1. INSPIRE TECHNOLOGIES - FAILED TO INSPIRE?A Case Study touching on organizational and HRM issues of a growing startup based in India.Pawan AlamchandaniMBA Human Resources Batch of 2010-2012 Symbiosis Institute of International BusinessMobile No. - +91-9860843603 Email Alamchandani.pawan.86@gmail.comDisclaimer: The name of the organization and the case is fictitious and thesole purpose is to uncover and understand HR issues arising due to failureof strategy implementation.

2. Lets Know Inspire 3. Inspire Technologies Estd. 1994 Founders Five first generation Entrepreneurswith a vision to create technological difference. Sector IT Products & Services Revenues USD 900 Million (March11) Employee Strength 11000 4. Inspire (Org. Chart) Managing Director Director Director ITDirector HR Solutions &Director - Marketing & CRand OperationsFinance Administration GM GM GM DGMSr. Manager Manager 5. Inspire Technologies Sector-wise business contribution (March11)Serial No. Sector Business Contribution (%)1.Manufacturing43 and Automobiles2. Healthcare273.BFSI 124.Retail8 6. Inspire Over the YearsYear1994 2000 2011 ParameterRevenue (US $ Mn) 1 (Seed Capital) 100900Employee Strength 10 2500 11000 7. Inspire Technologies Core Beliefs Autonomy Innovation Collaboration Customer Engagement 8. HR Systems & Processes Dedicated HRM & Administration Function put in placein 1998 Major focus on recruitment to meet growth BARS used for Performance Appraisal Occasional Trainings (No Training & DevelopmentCenter) Internship Program 9. Reality Check HR Practices Recruitment becomes the face of HR. No correlation between Performance and outcome. No focus on Training and Development No Succession Planning Senior positions filledthrough lateral hiring Erroneous Compensation Designs Internal ParityIssues 10. Impact of HR Practices 1. Employee Resentment due to external hiring for senior positions. 2. Favoritism valued over Performance 3. Strained Mentor-Mentee RelationsDisengagedEmployees Lower CSI(CustomerEmployee AttritionSatisfaction Index) BUSINESS IMPACT 11. Isnt it then that HRM is an intrinsic part of Business Strategy? 12. How should HR Practices in an organizationMATURE?