Infosys is a global IT consulting firm founded in 1981 with revenues of $6.6 billion. It has a vision to be a globally respected corporation and a mission of fairness, honesty, and courtesy. Infosys values include client value, leadership by example, integrity, fairness, and excellence. Infosys conducts bi-annual performance reviews using tools like PerforMagic and provides compensation based on a lead salary strategy compared to industry. Key areas impacted by performance ratings are incentives, salary reviews, and promotions.

1. PCM-TERM PAPER
INFOSYS Ltd.
Presented by:
Hitaishi Gupta(043026)
Sonali Verma(043054)

2. 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).

5. ABOUT INFOSYS
• Vision : "We will be a globally respected corporation."
• Mission : "To achieve our objectives in an environment of fairness,
honesty, and courtesy towards our clients, employees, vendors and society
at large.“
• Values
– Infosys believes that the softest pillow is a clear conscience. The values that
drive it underscore its commitment to:
– Client Value: To surpass client expectations consistently
– Leadership by Example: To set standards in our business and transactions and
be an exemplar for the industry and ourselves
– Integrity and Transparency: To be ethical, sincere and open in all our
transactions
– Fairness: To be objective and transaction-oriented, and thereby earn trust and
respect
– Excellence: To strive relentlessly, constantly improve ourselves, our teams, our
services and products to become the best.

6. PERFORMANCE MANAGEMENT POLICY
Steps for Performance Appraisal:
• Evaluation of personal skills for the tasks assigned to an
employee during the period of appraisal.
• Evaluation of the performance, different criteria's were
considered.
• The personal skills of the employees were also evaluated
based on their learning and analytical ability etc.
• Each of these criteria was measured on a scale of 1 to 5.

7. PERFORMANCE MANAGEMENT POLICY
• 360 Degree Feedback
• Recognition for Adding Value
• Employee-Management Interface
• Focus on Learning
• Innovation
• Business Continuity Plan

8. PERFORMANCE ASSESSMENT
• A bi-annual process.
• Various tools used are used.
• 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.

9. KEY RESULTANT AREA
• KRAs are mutually set through a discussion between the manager and the
employee.
– Self Assessment (by appraise)
– Review by Team Leader in a one to one meeting between the project
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 the process gets
to gets track of it. This ensures transparency.

11. RATINGS
• Combined Ratings impact three key areas:
– Performance Incentives
– Salary Reviews
– Promotions
• Star performers awarded with STAR INFOSIAN
Certificate.

12. COMPENSATION POLICY
• There are three basic strategies for an
organization's salary policy:
– In the jobs that we studied, SAP BI Consultant
and Software Engineer, Infosys follows a LEAD
STRATEGY.

13. SALARY REVIEW OF EMPLOYEES

14. SALARY REVIEW OF EMPLOYEES

15. SALARY REVIEW OF EMPLOYEES

16. SALARY REVIEW OF EMPLOYEES

17. Sizing of the Job
• Cluster approach

18. • 8 Levels
• Cluster approach is
followed to size the job,
based upon the Job
evaluation.
• Sizing of the job of SAP BI
Consultant is done at
LEVEL 4 and Software
Engineer is done at LEVEL
2.

19. Prizing of the Job

20. Comparison of the Salary of SAP BI Consultant
at Infosys with other IT Companies in India
• The Average Salary offered by the Industry is INR 401232 but
Infosys is following a Lead strategy and paying at the 92th
percentile of the Industry (Source: Payscale.com)

21. Salary Slip of SAP BI Consultant- Infosys
Name Departme Pers Designation Emp Account
nt Level code No.
xyz Finance 4 SAP BI 14000 300586303
Consultant 52
Total Basic HRA Medical Travel Fixed Leave Monthly IPI Differential Bonus
Allowanc Dearness Travel CPI CPI
e Allowanc Allowanc
e e
1760 1122 515
63518 0 5 7016 2806 1100 7016 6840 5 1207.0 3553
Deductions PF Contributions Professional Income Infosy GYM
Tax Tax Welfare facilities
Trust
5060 2244 200 2391 200 25
Net Pay
58458

22. Comparison of the Salary of Software Engineer
at Infosys with other IT Companies in India
For the job of a software engineer, Infosys is at 68th percentile with a salary of INR
3.25 lakhs where the average is 2.77 lakhs.

23. COMPARISON

24. COMPARISON

25. Infosys Board Compensation
• The compensation committee determines and recommends to
the Board the compensation payable to the directors.
• All Board-level compensation is approved by the shareholders
and separately disclosed in the financial statements.
• Remuneration of the executive directors consists of a fixed
component and a performance incentive.
• The compensation committee makes a quarterly appraisal of
the performance of the executive directors based on a
detailed performance-related matrix.
• The compensation payable to the independent directors is
limited to a fixed amount per year as determined and
approved by the Board, the sum of which is within the limit of
1% of net profits for the year, calculated as per the provisions
of the Companies Act, 1956.

26. Infosys Board Compensation

27. Non-executive / independent directors' remuneration
• Section 309 of the Companies Act, 1956, states that a
director who is neither in the whole-time employment
of the Company nor a managing director may be paid
remuneration by way of commission, if the Company,
by special resolution, authorizes such payment.
• Members of the Company at the Annual General
Meeting held on June 22, 2007, approved payment of
remuneration by way of commission to non-executive
directors, at a sum not exceeding 1% per annum of
net profits.

29. Thank You