PERFORMANCE MANAGEMENT OF

INFOSYS LTD.

PERFORMANCE AND COMPENSATION MANAGEMENT SYSTEM

ABOUT INFOSYS

• 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).

ABOUT INFOSYS

• Vision : "We will be a globally respected corporation."

• Mission : "To achieve our objectives in an environment offairness, honesty, and courtesy towards our clients, employees,vendors and society at large.“

• Values

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

– Client Value: To surpass client expectations consistently

– Leadership by Example: To set standards in our business andtransactions and be an exemplar for the industry and ourselves

– Integrity and Transparency: To be ethical, sincere and open in all ourtransactions

– Fairness: To be objective and transaction-oriented, and thereby earntrust and respect

– Excellence: To strive relentlessly, constantly improve ourselves, ourteams, our services and products to become the best.

Performance Management

System

• It is an organization - wide management program that

provides a structured approach to:

Communicate business strategy

Establish a shared understanding of what is to be

achieved and how it is to be achieved

Facilitate management of self and others

Measure and motivate performance

(organizational and individual)

PMS Consists of…

• A process for communicating employee performanceexpectations, maintaining ongoing performance dialogue,and conducting annual performance appraisals;

• A procedure for addressing employee performance thatfalls below expectations;

• A procedure for encouraging and facilitating employeedevelopment;

• Training in managing performance and administering thesystem; and

• A procedure for resolving performance pay disputes.

KEY RESULTANT AREA

• KRAs are mutually set through a discussion between themanager and the employee.

– Self Assessment (by appraise)

– Review by Team Leader in a one to one meeting between theproject 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 theprocess gets to gets track of it. This ensures transparency.

PERFORMANCE

MANAGEMENT IN INFOSYS

PERFORMANCE ASSESSMENT

PERFORMANCE MEASUREMENT METHOD

RATING

FEEDBACK

PERFORMANCE

ASSESSMENT

• A bi-annual process.

• The system is called Online- PerforMagic.

• Consolidated relative rating is calculated.

Assessment of an individual’s performance relative to the peer group

is carried.

• Rating ranges from 1+ to 4.

• 1+ star performance

• 4 is under performance

PERFORMAGIC

CRR

RATINGS

• Combined Ratings impact three key areas:

– Performance Incentives

– Salary Reviews

– Promotions

• Star performers awarded with STAR INFOSIAN Certificate.

PERFORMANCE FEEDBACK

IMPORTANCE OF FEEDBACK

Thank You