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Quick Edit | Diseconomies of scale

Quick Edit | Diseconomies of scale
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First Published: Thu, Apr 15 2010. 11 57 PM IST
Updated: Thu, Apr 15 2010. 11 57 PM IST
It is clear from blog posts, news reports and the company’s own executives that Infosys Technologies Ltd is facing significant people- problems. It’s interesting this should happen to Infosys which has, over the years, been adjudged the best company to work for in India, according to several surveys.
A possible source of the employee angst at the firm could be size. It’s difficult to keep everyone happy and motivated in a 200-person company, so should we even be surprised by the problems faced by Infosys, which employs around 110,000?
So, how is Infosys—and, sooner than later, its peers will have to answer this question as well—to deal with this problem?
Infosys’ attempts to address this issue will indicate whether there is such a concept as diseconomies of scale in terms of workforce—whether some companies are simply too big to succeed. Still, there’s one thing going for the company. Any solution it finds will be universally applicable: After all, unhappy employees are all alike.
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First Published: Thu, Apr 15 2010. 11 57 PM IST