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Effect of
Employees First
Customer Second
(EFCS) on HCL
Technologies

Group 10

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Introduction (EFCS)
Why?

Low engagement levels

Slow growth compared to the industry trend

Disillusionment at work place

Shift in IT Service Industry

Change in Workforce demography

High attrition rates

How?

Turned conventional management pyramid upside down

Employee empowerment and autonomy

Transfer of Responsibility

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Background
HCLT

was growing at CAGR 30%


compared to that of competitors (50%)

New

age employees prompted for


engaging and productive workplace

Working
CEO

towards shared goals and values

(Vineet Nayar, 2005) introduced


radical business philosophy of Employee
First and Customer Second (EFCS)

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Initiatives under EFCS

MeMe (Socializing)

ArKMedes (Knowledge Management)

EPIC (Employee Passion Indicative Count)

MADJAM (Innovation and Creativity)

Power of One (CSR)

360Degree (Feedback)

SSD (Query resolving tool)

i4Excel (Appraisal)

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Implications Claimed

Significant increase in growth rate (leader)

Increased individual productivity (average revenue per


employee)

Reduced employee attrition rate

Improved customer satisfaction

Increased motivation level among employees

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Research Objectives

To analyze the job satisfaction of employees post EFCS


using the following variables:

Activity Utilization

Recognition

Creativity

Compensation

Working Conditions

To find out the motivation level using Hackman and


Oldhams Job Characteristics Model by calculating
Motivation Potential Score (MPS)

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Findings of the Survey
Sample Size : 46 HCL Employees from Bengaluru, Gurgaon and Chennai
Age 22 to 28 years
Average Work Experience at HCLT 3 years

Variables

Satisfaction %

Ability Utilization

36

Working Conditions

41

Recognition

31

Creativity

27

Compensation

19

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Motivating Potential Score
(MPS)

Hackman and Oldhams Job Characteristics Model

High MPS ->

Positive effects on motivation, performance and job satisfaction

Reduction in absenteeism and turnover

Average MPS of125 or more is considered as good for any


organization

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MPS Calculation
Variables

Score (on the scale of 7)

Skill Variety

4.26

Task Identity

3.90

Task Significance

4.41

Autonomy

4.18

Feedback

4.14

Calculated MPS for HCLT = 72

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Financial Performance

Emphasized on larger deals

Typically deals which can generate millions in dollars


rather than a number of small projects

As they require extra expenses to customize the teams


for different projects.

Deals worth $100m-$300m have become a norm after


the implementation of EFCS

Its revenue growth for the past five quarters had been
7.4%, 8.3%, 10.3%, 10.2% and 9.5%

Stock price

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Stock performance of HCL
Technologies

Full scale
implementation
of EFCS policy

Time

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Conclusion

In total, performance of HCLT due to the


implementation of EFCS policy appears mixed

It led to an increase in the revenues which is evident by


the surge in the stock price after the year 2008

The value of Motivating potential score is 72 which


shows lower motivation levels (Average MPS value is
125)

The reasons may be attributed to the change in the


management of the organization or lapse of time

Thank You