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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 Alamchandani
                        MBA – Human Resources
                           Batch of 2010-2012
               Symbiosis Institute of International Business
                      Mobile No. - +91-9860843603
               Email – Alamchandani.pawan.86@gmail.com


  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 –          Director – IT                        Director – HR
                               Solutions &            Director -
         Marketing & CR                                                  and
                               Operations              Finance
                                                                   Administration




   GM                     GM             GM




   DGM




Sr. Manager




 Manager
Inspire Technologies – Sector-wise
 business contribution (March’11)

  Serial No.       Sector           Business
                                 Contribution (%)

      1.        Manufacturing          43
               and Automobiles

      2.         Healthcare            27

      3.            BFSI               12

      4.            Retail              8
Inspire – Over the Years

        Year        1994               2000   2011
 Parameter
Revenue (US $ Mn)   1 (Seed Capital)   100    900


Employee Strength   10                 2500   11000
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 Practices
                     1. Employee Resentment
                     due to external hiring for
                         senior positions.
                     2. Favoritism valued over
                           Performance
                       3. Strained Mentor-
                        Mentee Relations

                          Disengaged
                          Employees
                                                       Lower CSI
                                                      (Customer
Employee Attrition                                Satisfaction Index)




                     BUSINESS IMPACT
Isn’t it then that HRM is an intrinsic part of
             Business Strategy?
How should HR Practices in an organization
              MATURE?

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Inspire technologies failed to inspire

  • 1. INSPIRE TECHNOLOGIES - FAILED TO INSPIRE? A Case Study touching on organizational and HRM issues of a growing startup based in India. Pawan Alamchandani MBA – Human Resources Batch of 2010-2012 Symbiosis Institute of International Business Mobile No. - +91-9860843603 Email – Alamchandani.pawan.86@gmail.com 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.
  • 3. 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
  • 4. Inspire (Org. Chart) Managing Director Director – Director – IT Director – HR Solutions & Director - Marketing & CR and Operations Finance Administration GM GM GM DGM Sr. Manager Manager
  • 5. Inspire Technologies – Sector-wise business contribution (March’11) Serial No. Sector Business Contribution (%) 1. Manufacturing 43 and Automobiles 2. Healthcare 27 3. BFSI 12 4. Retail 8
  • 6. Inspire – Over the Years Year 1994 2000 2011 Parameter Revenue (US $ Mn) 1 (Seed Capital) 100 900 Employee Strength 10 2500 11000
  • 7. Inspire Technologies – Core Beliefs • Autonomy • Innovation • Collaboration • Customer Engagement
  • 8. 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
  • 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 filled through lateral hiring • Erroneous Compensation Designs – Internal Parity Issues
  • 10. Impact of HR Practices 1. Employee Resentment due to external hiring for senior positions. 2. Favoritism valued over Performance 3. Strained Mentor- Mentee Relations Disengaged Employees Lower CSI (Customer Employee Attrition Satisfaction Index) BUSINESS IMPACT
  • 11. Isn’t it then that HRM is an intrinsic part of Business Strategy?
  • 12. How should HR Practices in an organization MATURE?