Phil Fersht over at Horses For Sources wrote an interesting piece last week on the scandal at Indian tech company Satyam, and the woes they are facing as a result of the fraud committed by their Chairman, Ramalinga Raju. who recently resigned as company Chairman. (Phil is quoted in this link as well)
In his post, Phil quotes Raju, who had been viewed as an enlightened CEO with a strong reputation for developing his human capital and investing in the training and development of the associates in the employ of Satyam.
That reputation is squandered now, gone in a multi-year bookkeeping scandal that is being equated with the Enron scandal here in the United States.
Mr. Raju explained his actions as intended to prevent becoming an acquisition target. He was arrested earlier this week by Andrha Pradesh authorities.
Employees of Satyam are left with great uncertainty hanging over their head. According to SiliconIndia, employees are panicked and jamming job portals and blogs seeking information on their status, and they may be facing being blacklisted by other Indian companies due to the behavior of their Chairman.
Already stranded by the sudden revelation of India's biggest corporate scandal, the employees of Satyam will face more trouble as Infosys has made it clear that they will not hire anybody from Satyam. "We will not touch such a tainted company," said Infosys Founder and non-executive Chairman N R Narayana Murthy,while commenting on speculations over the firm's plan to takeover Satyam.
Infosys as also instructed their recruiting staff to avoid employing any Satyam employees. "We have asked our recruitment staff not to poach anybody from Satyam as the company is in the middle of a crisis and people will jump ship," said TV Mohandas Pai, HR head at Infosys. The company has even advised its staff against entertaining calls from Satyam employees. The decision comes as a major roadblock to all employees who have begun hunting for other jobs. 10,900 Satyam employees have posted their resumes on the top job portals since last month.
It looks like it will be the employees of a company managed by a wrong headed indivdual who will be riding the tiger as a result of Mr. Raju's misdeeds, not knowing how to get off and hoping that they don't get eaten.
Is this fair? Leave your comments and tell us what you think.