Management Principles: A Case Study of HCL Technologies' Success

This case study analyzes HCL Technologies' transformation under Vineet Nayar, focusing on how changes in management principles and employee motivation led to increased success. The study highlights Nayar's initiatives, such as the improved intranet, 360-degree feedback, and 'trust pay,' which fostered a more engaged and motivated workforce. The investment in employee development proved crucial in transforming the company's culture and operations, enhancing its competitiveness against rivals like IBM, HP, and Accenture. The case concludes that these changes were instrumental in securing significant deals and improving the overall performance of HCL Technologies, marking a significant turnaround in the company's history. Desklib provides access to similar solved assignments and past papers for students.

Running head: MANAGEMENT PRINCIPLES 1
Management Principles
Student Name
Institution Name

Running head: MANAGEMENT PRINCIPLES 2
Introduction
The HCL technologies was founded by a small group of engineers in 1976. The aim was to lead
in the computer industry which they did until in the 1990s where competitors emerged. In 2005,
they turned to Vineet Nayar who helped in bringing back the position of the industry where it
was before.
Question 3
Nayar motivated the employees by improving the intranet which was used before hence
connecting the employees (Technologies, 2016). For example, he used the Smart Service Desk
tool where the employees could post their issues which the manager was supposed to address.
Nayar also came up with an initiative where managers were supposed to participate in 360-
degree feedback where managers would seek reinforcement and criticism from their peers and
superiors about their performance. This transformed how the employees thought and how they
conducted themselves at the industry and Nayar encouraged the managers to give their results in
a public platform.
He also introduced an initiative of ‘trust pay’ in which the employees would get 14000 rupees
and a bonus of 6000 rupees. This was able to increase trust because the employees could trust the
managers in giving good results (Singh, 2012). Managers expressed their faith in their employees
that they would always deliver results.
Question 4
Employee development investment was important because it transformed the culture and
operations in HCL technologies which transformed its competitiveness in the market (Patro,
2012).
The employee development was also important because it was able to build an engaged and
motivated workforce hence enhancing employee motivation.

Running head: MANAGEMENT PRINCIPLES 3
Employee development investment was important because it ensured transparency and it was
able to change the culture and operations in the HCL technologies and this helped the industry
gain a competitive advantage against their rivals.
This was also an important motivator because it led to creation of a more engaged and motivated
workforce.
Question 5
After the changes were done, HCL technologies emerged to be successful and their rivals
including IBM, HP and Accenture could not beat HCL (Muthukumar, N., & Subburaj, A., 2012).
The company was able to win a contract with Autodesk which was worth 50 million dollars.
Afterwards in 2006 the company also won a very big deal worth 330 million dollars. This was a
project for FSG International and this deal made the Indian history (Tk & Maran, 2010).
Conclusion
This task has described the HCL technologies company, the founders and how the company was
able to change its culture. Also why the culture had to be changed and how the employees were
motivated. Lastly, the task has described how the changes improved the performance of the
company.

Running head: MANAGEMENT PRINCIPLES 4
References
Ramdas, K., & Gajulapalli, R. S. (2017). HCL Technologies: employee first, customer
second. Darden Business Publishing Cases, 1-25.
Technologies, H. C. L. (2016). The world’s largest “ideapreneurshipTM” Putting employees first
so the customer never feels second. Human Resource Management International
Digest, 24(2), 4-6.
Patro, S. (2012). Book Review: Employees First, Customers Second: Turning Conventional
Management Upside Down.
Muthukumar, N., & Subburaj, A. (2012). A STUDY ON QUALITY OF WORK LIFE AT HCL
TECHNOLOGIES LIMITED, CHENNAI. International Journal of Management
Research and Reviews, 2(9), 1520.
Singh, A. K. (2012). Employee satisfaction at hcl technologies. Delhi Business Review, 13(2),
123.
TK, M. M. V., & Maran, K. (2010). A study on Mapping Core Competencies and development
of Employees for Excellence with reference to HCL Technologies.