Executive Summary

Acquisitions are an of import vehicle for corporate strategic redirections and reclamation. An acquisition by and large follows a series of six stairss such as placing growing schemes, placing possible mark, due diligence, cultural integrating, create one concern and develop & amp ; sustain. This undertaking will seek to research the procedure of acquisition in an HRD position by analysing the instance of Satyam Computer Services ( now called MahindraSatyam ) which was acquired by Tech Mahindra. The procedure of acquisition involves two major integratings viz. , operational and cultural integrating ( the undertaking ‘s range will be limited to the cultural integrating portion ) . This is in bend influenced by two major factors such as the direction manners and reward systems of the geting company which in bend influence the civilization of this confederation. The properties of these two factors can be translated into assorted HRD subsystems that are to be tackled in order to accomplish the strategic aim. In discoursing the above, the undertaking will besides throw some visible radiation on the cardinal HRD intercessions taken during the heat of the acquisition procedure when the employee morale was reportedly low, surfaced with a sense of treachery after the former Chairman Mr.Ramalinga Raju conceded the accounting malpractice. By analysing the aims of these HRD intercessions the undertaking will seek to appreciate the convergence of all of those enterprises towards achieving the ultimate strategic aim of ‘creating a company for tomorrow ‘ and therefore appreciating HRD as a strategic lever in an acquisition

Mahindra Satyam was established in 1987 by B Ramalinga Raju. The company specializes in confer withing and information engineering ( IT ) services crossing assorted sectors. It is listed on BSE, NSE & A ; NYSE In June 2009.The company became named Mahindra Satyam. After this acquisition the Satyam Stock monetary value is in an increasing manner. Now, the inquiry is what might be the ground behind this acquisition. Why Tech Mahindra take a belly-up company for the acquisition? How the both civilizations marry each other and a synergism is obtained.

Reasons for Acquisition:

We would wish to lucubrate the grounds with regard to HRD positions. We would besides advert what are the benefits and challenges are involved in geting a company. The grounds are mentioned below

Diversification of the portfolio of the services

More client focal point, fulfilling their assorted demands

Satyam holds strong place in BPO, Financial sector, confer withing, substructure direction

Satyam though belly-up, had an first-class portfolio of services

There were complementary skill sets between the two companies

The mark could with a geographic enlargement

The acquisition was believed to convey in decreased costs or improved net income

The mark gives you needed accomplishments or experience in direction or staff

Addition in breadth and deepness of merchandise line

Improvement of IPO or other equity support possibilities

Access to new client bases

Restricting chances for a cardinal rival.

The procedure of acquisition:

Acquisitions are an of import vehicle for corporate strategic redirections and reclamation. The below frame work would assist to hold a strategic position of an acquisition. First, the geting organisation has to explicate its growing scheme. Second, it identifies its possible marks. Third, the acquirer does a elaborate due diligence of the mark based on its organisational tantrum, cultural tantrum, fiscal chances and strategic tantrum. Fourth, the cultural integrating takes topographic point. After the integrating operational integrating happens whereby they create a individual concern theoretical account by absorbing the kid organisation ‘s theoretical account. Sixth, this will be further developed and sustained.

THE ACQUISITION CYCLE

Giving an HRD position for the acquisition:

Phase

Integration

1

Mission

Strategic way, Goals & A ; Objectives & A ; Vision

2

Consistency

Core Valuess, Coordination & A ; Integration

3

Engagement

Authorization, Team Orientation, Capability Development

4

Adaptability

Making alteration, Customer Focus, Organizational Learning

THE PROCESS OF INTEGRATION

Acquisition – Organizational tantrum:

The procedure of acquisition can be divided into two wide classs which are Cultural integrating and Operational Integration. The range of our undertaking is limited to cultural integrating. The cultural integrating is influenced by two major factors they are direction manners and reward systems.

Management manner can be described as an component of the managerial or the subjective civilization of an organisation. It comprises a figure of factors, including the direction group ‘s attitude towards hazard, their decision-making attack, and preferred control and communicating forms. It is, hence non unusual to happen that policies and processs which seem to be foolhardy and highly ‘risky ‘ to one direction group appear to another group to be justifiable attacks. Similarly, one direction ‘s tolerance for alteration may be much greater than another. Top direction of different group ‘s might besides differ in their attack to decision-making. Differences can besides be in direction group ‘s beliefs on the coveted degree of ‘flexibility ‘ . In drumhead, while compatibility in direction manners facilitates post-acquisition assimilation, major difference in direction manners and doctrines can turn out to be serious hindrances to the accomplishment of acquisition procedure.

The wages and rating system is widely regarded as one of the most of import constituents of organisational signifier. Differences in wages and rating systems exist along a figure of factors. These include factors related to the rating standards, such as the clip period over which the procedure is focused, indices used to mensurate public presentation, and the type of public presentation index used in the rating procedure. In add-on to rating standards, the signifier and disposal of compensation can be of import. The system of fillips and inducements may differ significantly across houses. Therefore, directors accustomed to high public presentation fillip might happen it hard to set to a more bureaucratic manner if required after an acquisition and vice-versa. In the instance of Mahindra Satyam the organisation has to get the better of the cultural challenges influenced by the factors explained above. The organisation ‘s strategic aim is to do MahindraSatyam the ‘Company for tomorrow ‘ .

The HRD model

From the above frame work, the most critical constituents of HRD subsystems that is important in this peculiar context. The paper will discourse on how MahindraSatyam did its HRD intercessions in order to convey Satyam and its employees out of station dirt job and develop its human resources in order to accomplish the aim of ‘a company for tomorrow ‘ .

HRD – Crisis Interventions:

Gross saless Reboot Campaign

The senior direction conducted a 3 twenty-four hours programme for its gross revenues force and gave them some much needed motive to prosecute new clients.

Particular Induction Programmes

As we all know, the Satyam dirt tarnished the image of the company. Employees quit the company in big Numberss, and it was about impossible to enroll new employees to make full up the vacant places. So Satyam advertised for these vacant places within the organisation. The members who were willing to fall in were given an intensive 2-week initiation programme in Gross saless and other maps so that they could be rapidly be made productive and posted in parts abroad.

Recognition and Reward Schemes

As the company initiated a variable wage cut for all employees, the senior direction had to invent new schemes to actuate and retain their employees. They decided to place Star Performers and ‘Excel-later ‘ within each division and give them particular acknowledgment for their attempts.

Communication Channel

Since there was a batch of anxiousness and uncertainness in the heads of the employees, the HR section created a communicating channel between them and the top direction of both Satyam and Tech Mahindra. This was done via many forums such as Blogs, “ Direct from the Board ” Webcasts and several Open House Sessionss in an informal environment.

STEPS TAKEN IN TALENT MANAGEMENT

INTEGRATED DEVELOPMENT STRATEGY

The following moving ridge in Mahindra Satyam

Organizational Structure

The organisation construction has been given in the below box. It is to be noticed that many of top notch Satyam directors had left the company so Tech Mahindra has considered Satyam as their extended household and many of top foremans from Tech Mahindra has to take major places in the freshly formed Satyam Mahindra.

New Satyam Hierarchy.jpg

Some of import points to be noticed mentioned below.A. S. Murty, the CEO of Satyam Computer Services, reassigned as the Chief Technology Officer. He is now incharge for developing technological competency and invention every bit good as creative activity of technological assets and Intellectual Property Right. He is besides incharge of particular services such as consulting, IMS and technology.

In a line of enterprises of organisational alterations directed towards prolonging and positioning the company in the long term growing, Mahindra Satyam introduced Mr Soni as COO. He would travel from Tech Mahindra into Mahindra Satyam to head the bringing of fabrication, BFSI, emerging vehicles and strategic histories along with concern integrating, corporate planning.

Another important assignment was made to Keshab Panda, who would take the concern development and operations sections for strategic histories, BFSI, emerging verticals and concern development.

Atul Kanwar, moved from Tech Mahindra into Mahindra Satyam, would take the operations and concern development of different geographic concern groups such as Europe, Australasia, Middle East, Africa and India.

T.R. Anand would be responsible for operation and concern development for engineering substructure, telecom media and amusement every bit good as semiconducting material verticals. Hari T is assigned to undertake both of the place as Chief People Officer and Chief Marketing Officer.

Organization Culture

Employees in any company organize the nucleus of any organisation and in a service industry they are the greatest plus. So Tech Mahindra and consecutive Mahindra Satyam take great enterprises to make the best topographic point for employees to join forces and maximize productiveness every bit good as have a balanced life. Mahindra Satyam encourages people to link, communicate and observe the true kernel of life through work itself… .. ! ! ! ! ! ! ! The thought is to make “ a place off from place. ”

With about 68 1000 skilled professionals ( Satyam-45 1000 and Tech Mahindra-23 1000 ) Mahindra Satyam vows to offer an exciting calling way for all of its employees working in each degree. The kernel of the civilization is capturing client focal point, robust work moralss, operational transparence and priceless squad work.

In Mahindra Satyam feedback orientated civilization has been institutionalized to advance continual betterment. Regular studies are carried out to earn feedback from all the stakeholders involved to accomplish betterment. Such enterprises lead to client delectation and besides accomplishment of internal employees improves dramatically.

Learning and Talent Development

Mahindra Satyam adopted the scheme of endowment development through acquisition and giving a portfolio of chances. To ease endowment development they have initiated Mahindra Satyam Learning World ( MSLW ) . MSLW caters to the demand of associates through a individual platform. A important part of Mahindra Satyam ‘s cognition airing is done through practical agencies.

Main focal point of MSLW is to fix the entry degree endowment and make a pool of gifted specializers and focal point was besides in the mid and senior degree direction.

Mode of Delivery

Instructor-led Training

Virtual Learning Courses — E-learning

Webinars ( Vshare )

Webcast ( Planet Mahindra Satyam )

MSLW focuses on the undermentioned facets of acquisition and development:

Technical related Education

Domain related larning

Process related preparation

Management and Behavioural betterment

Cultural trait breeding for foreign operation

The preparation development system is farther divided into two chief classs.

Satyam Learning Centre ( SLC )

Satyam Learning Centre is a Strategic Support Centre of Mahindra Satyam. This section is responsible for leaving high quality proficient cognition to the new proficient associates.

The Procedure of Building Technology Focus Groups

In a joint meeting of different stakeholders of the engineering, two types of groups are formed, maintaining in head the undermentioned focal point:

Work related maps

Invention based groups

The SLC has figured out six most of import technological paths such as Microsoft, SUN, IBM, and CRM/ERP. Any single holding an orientation in line with the given verticals an return relevant preparation and travel for research or work on the related field.

Each group met and identified a group coordinator and the leader. The cardinal functions and duties identified within the Technology focal point groups are: A

Coordinator-A Their occupation is to supply necessary enthusiasm and relish to the participants through personalized communicating.

Members-They are supposed to interact with other, portion information, penetration and information. Their chief end is to take part actively, portion and learn in the procedure.

Leader-They are the 1 who really leads the treatment or the event. At that point it is worthwhile to advert that leaders emerge non acquire appointed.

Sponsor-A TheA SponsorA informs the company ‘s support for a sponsored community.

Satyam School of Leadership

This subdivision is chiefly concerned with developing new globally competitory directors. Many leading plans have been taken to implement to accomplish this end.

Global Leadership:[ 1 ]Think Global Act local… . ! ! ! ! ! ! !

hypertext transfer protocol: //www.mahindra.com/newsletters/m & A ; m % 20newsletter % 20issue % 203 % 202006/m % 20and % 20m % 20july-sep % 202006/html/peopleInitiave/PI — -Developing-Global-Lead.jpg

The aims of the programme are as follows:

Insight into “ Globalization ”

Global direction Competencies, etiquettes and challenges in working in planetary environment

Importance of transverse cultural sensitiveness

Scheme for International selling and Branding.

Some of the characteristics of the programme are as follows:

Synergistic workshop

Intellectual Competency modeling

Real clip concern simulation

Presentation

High Value Leadership Lifecycle Program

The Mahindra Satyam group has developed one of its most effectual client centric leading plans at cardinal passage place of directors. “ Bodhi-vriksha ” is such a high public presentation output Centre.

The chief aim of the plan is as follows:

Focus on client penchant, perceptual experience and behavior

Framework for New Product Development

Brand Equity

Unique Value creative activity to targeted clients

Virtual Pool Programme

Virtual Pool Programme is designed to compensate size the immense figure of excess employee in Mahindra Satyam. It was the one of the most advanced manner of retaining skilled employees and if required call them back instantly.

The Virtual Programme proves to be an fantastic thought of retaining skilled pool of endowment in clip of terrible planetary, economic and unprecedented dirt hit environment. This is besides a good manner of farther developing them through extended preparation while guaranting fiscal viability of the company.

This plan allows associates to subscribe off from work on a comparatively low wage construction up to 6 months without holding to swerve all ties with the company. The company will go on to pay the ‘Basic Salary ‘ and besides the Provident Fund every bit good as Medical Insurance. The employee is still an employee of the freshly formed company and on concern demand they may be called back. They can besides continuously upgrade their accomplishments through Satyam ‘s acquisition plans.

HRD as a strategic lever:

Annexure

Amalgamate Interview Experience of HRs, CIO, current & A ; ex-employees of Mahindra Satyam

How teams work in your organisation? What is the effectivity?

The squad strength can be 5 or it can be 30 depending on the undertaking type and demand. One individual is the group lead in the squad. He is informally appointed as the leader. He reports to the director, who gives evaluations. The director of the squad lead do non interact with the squad members much but with the squad lead. The squad leader has by and large a batch of experience ( say 2 old ages more than the other members )

How Performance assessment is done?

Evaluations are given by Manager as “ A, B or C ” . “ A ” shows the best public presentation.

What rewards/ inducements are at that place for top performing artists?

An employee can acquire a salary increase from 5 % to 15 % , depending upon the evaluation. Besides the wagess, wages vary depending upon the market conditions, company net incomes. Other than these wagess some informal ways are followed to actuate the employees. For illustration, the name of the individual who is decided as the top performing artist of the month, comes in the screen rescuer of every employee computing machine. As it is a company computing machine, you can non alter it. Besides in a package industry the bargaining power of the people is really high. If you do n’t pay them or increase their salary harmonizing to public presentation, they will exchange to another company.

Besides the group name who is executing good

What is the compensation format?

Performance based

Time period Based

What is the manner of communicating between the employees?

Internal courier linking both domestic and international units ( Free for employees )

How coaching and mentoring done?

One employee is assigned as wise man when new recruits undergo preparation in the company. The procedure is coordinated by Satyam Learning Centre.

Give us some penetrations about the company ‘s preparation and development programmes?

Satyam Learning Centre takes attention of preparation. The period is normally 2-3 months. Training can be imparted to an employee at any period of clip. We call it “ MINI MBA ” . This is done harmonizing to the demands. Some other preparation faculties are

Language Courses

Cultural classs

2-3 hrs Cultural consciousness Sessionss

( Useful in accommodating yourself to the US/Korea civilization ex. Punctuality, nutrient )

How to compose official Email

How employees are motivated?

Wagess

Monthly best squad

Presenting the names in notice board

Customer feed back

Star Performer of the month

How Satyam Mahindra ‘s civilization differ from other IT companies?

CESC, Accenture: These companies have no late dark work civilization. They pay more money than Satyam Mahindra

Late Night civilization, Saturday/ Sunday work civilization is at that place in the company

Some Incites: Even though on pen and paper, there is a cultural Marriage between Satyam and Mahindra, the civilization of Satyam and Mahindra is dominated by Satyam merely. Because civilization is non a separate thing, that can be imposed on people. It is decided by people merely

Does Interdepartmental Transfer go on in Satyam Mahindra?

Inter section transportation harmonizing to the sphere: Difficult ( Financial, Healthcare )

Inter section transportation harmonizing to the engineering: Easy ( Java, C++ )

Geographic motion: Yes it happens and it is easy

What kind of utmost steps employees take?

Resign as a Team: A really bad feedback for a squad director and leader. Team director may be dispelled from the company in such instances. As this shows that the squad director is non making justness to the squad.

Another manner of feedback about the director is Circle head/ HR head/ PPL contact/ rare instance

How is Executive Compensation in your company?

Merely 1-2 % of the employees have salary more than 23 hundred thousand.

Does Satyam Mahindra take hazardous undertakings?

Yes! For FIFA 2010, we provided the full IT substructure. The undertaking was immense and Risky.

What sort of construction is at that place in Mahindra Satyam?

Decentralised, all the units is different geographical locations are different

Does hierarchal construction exist in Mahindra Satyam?

On documents: No

Unofficially: Yes

There are a batch of protagonists of antique CEO Raju in the company.

Compensation Structure

2 twelvemonth contract

2 lakh Rupees Bond money

Sometimes we recruit Bsc alumnuss, develop them to accommodate work profile. They are available cheaply. After developing period, they can replace technology alumnuss who cost us a batch.

How loyal are the employees? Does Satyam Mahindra ‘s good will consequence work on them?

Peoples in Andhra Pradesh Praise this company really much for its parts. When person joins Microsoft, people competently say ” Did non you get a occupation in Satyam? ”

Huge CSR activities by Satyam Mahindra

We take attention of ambulance service in certain countries: 108 service EMRI in Andhra Pradesh