inspire technologies failed to inspire

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 – 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 – 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?