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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 2010-2012Symbiosis Institute of International Business
Mobile No. - +91-9860843603Email – [email protected]
Disclaimer: The name of the organization and the case is fictitious and the sole purpose is to uncover and understand HR issues arising due to failure of strategy implementation.
Let’s Know Inspire
Inspire Technologies
• Estd. – 1994
• Founders – Five first generation Entrepreneurs with a vision to create technological difference.
• Sector – IT Products & Services
• Revenues – USD 900 Million (March’11)
• Employee Strength – 11000
Inspire (Org. Chart)
Managing Director
Director – Marketing & CR
GM
DGM
Sr. Manager
Manager
GM
Director – IT Solutions & Operations
GM
Director - Finance Director – HR and Administration
Inspire Technologies – Sector-wise business contribution (March’11)
Serial No. Sector Business Contribution (%)
1. Manufacturing and Automobiles
43
2. Healthcare 27
3. BFSI 12
4. Retail 8
Inspire – Over the Years
1994 2000 2011
Revenue (US $ Mn) 1 (Seed Capital) 100 900
Employee Strength 10 2500 11000
Year
Parameter
Inspire Technologies – Core Beliefs
• Autonomy
• Innovation
• Collaboration
• Customer Engagement
HR Systems & Processes
• Dedicated HRM & Administration Function put in place in 1998
• Major focus on recruitment to meet growth
• BARS used for Performance Appraisal
• Occasional Trainings (No Training & Development Center)
• Internship Program
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 filled through lateral hiring
• Erroneous Compensation Designs – Internal Parity Issues
Impact of HR Practices1. Employee Resentment
due to external hiring
for senior positions.
2. Favoritism valued over
Performance3. Strained
Mentor-Mentee
Relations
Lower CSI (Customer Satisfaction
Index)
Employee Attrition
BUSINESS IMPACT
Disengaged Employees
Isn’t it then that HRM is an intrinsic part of Business Strategy?
How should HR Practices in an organization MATURE?