2. How Leaders Shape Culture
• Attention – what do they pay attention to
• Reactions to crisis – how do they react in a crisis
• Role modeling
• Allocations of rewards
• Criteria for selection and dismissal
4. Commercial Airlines Crews
• Foushee and Helmreich (1988)- study the performance of
airlines crews, focusing on the captain’s personality.
• Captains who were warm, friendly, self confident and able
to deal with pressure had crews with the best
performance.
• Captains who were arrogant, hostile,boastful, egotistical,
and passive aggressive had the worst performing crews.
5. INFOSYS
• Started in1981, be seven professional entrepreneurs led by Narayan
Murthy, Chairman and CEO of Infosys.
• Started his career as head of the computer center at IIM-A
• Narayan Murthy focused on the world’s most challenging market –
The U.S
• There was no market for software in India at that time
• In 1987, Infosys entered into a joint venture with Kurt Salmon
Associates (KSA)
• KSA-INFOSYS was the first Indo-American joint venture in the U.S
• In 1988-89, Infosys set up its first office in the U.S Reebok of France
and developed a software system to handle its distribution
management.
• In 1998 , Narayan Murthy listed the shares of Infosys on Nasdaq
6. PEOPLE MANAGEMENTAT INFOSYS
Low Employee Turnover: during 1990’s employee
turnover rate at Infosys was 11% as compared to 25% in
other software companies.
Reasons: Rigorous employee selection
Proactive HRD practices
• Facilities Provided to Employees: ticketing, credit cards,
house loan, crèche facilities, gymnasium etc.
• Infosys was one of the first companies to adopt an
Employee Stock Option plan (ESOP), in 1997 500
employees were awarded stock under the ESOP.
• Infosys was one of the best rewarding organization in the
industry.
7. Narayan Murthy as Leader
• “ My employees seek challenging opportunities, respect,
dignity and the opportunities to learn new things. I keep
telling them that my assets are not this building, the
business or foreign contact. My assets all 8000 of them-
walk out of the gate every evening and I wait for them to
come back to me the next morning.”
• Our Transactions are Zero based so there is no history
sheet
• Employees were encouraged to communicate with each
other and with the higher management about interesting
ideas and ways of solving problems through the electronic
bulletin boards.
