iGATE Corporation: Toxic Talent and Organizational Resilience
(6 pages of text)
Case (Pub Mat)
In May 2013, iGATE Corporation suffered a major blow after terminating its president and chief executive officer, Phaneesh Murthy, as a result of allegations of sexual harassment. Murthy had previously been forced to step down from Infosys Limited for similar reasons. After Murthy’s unceremonious exit, iGATE struggled to fill its top leadership position. Finally, in September 2013, a new chief executive took over and outlined a plan of action that differed completely from his predecessor’s strategy. However, the company, which had been poised to achieve big ambitions, had lost momentum and appeared directionless. Had iGATE made a mistake by hiring Murthy as its top executive just 18 months after he had been fired from Infosys? Why did iGATE not conduct due diligence on its talent acquisition and management, especially for the critical position of chief executive officer? How could other organizations turn around a position of vulnerability to become resilient?
This case is suitable for use in postgraduate courses such as organizational behaviour, human resource management, and business ethics, and in electives such as talent management and leadership development. The case is also suitable for use in management development programs and executive modules. After completing the case, students should be able to
- evaluate the importance of due diligence in talent acquisition, especially for critical positions;
- understand the impact of toxic talent on organizations; and
- appreciate the importance of building resilient organizations for sustainable growth.
Information, Media & Telecommunications
India, Large, 2013
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