Of each of the great leaders, it is said by his followers, long after he is gone, he made us do it. If leadership is the art of persuading your people to follow your bidding, without their realising your involvement, the archetype of its practice is N. R. Narayana Murthy, the chairman and managing director of the Rs. 143.81 crore Infosys Technologies (Infosys). For, the 52-year-old CEO of the globalised software corporation — which he founded with six friends, and a combined capital of Rs. 10,000 in 1981 and which now occupies the front ranks of the country’s most admired corporations, leads with the subtlest of weapons: personal example.
Infosys ranks only 578th among the country’s listed companies, and sixth in the software sector, in terms of its turnover. But it is setting new standards for India Inc. through its practices of inter alia awarding stock options to its employees, putting the value of its intellectual assets and its brands on its balance sheet, and conforming to the disclosure standards of the Securities and Exchange Commission (SEC) of the US. Behind all this is the stubborn personal subscription of its CEO to the underlying causes of wealth-creation—people-power and transparency. “What were choices earlier are compulsions now,” asserts Murthy.
In fact, the mirror images of Murthy, the Man, can be found all over Infosys, his company. His egalitarianism — which finds expression in such habits as using the same table and chair as anyone else in the organisation — is practised firmly when it comes to charting a course for the company’s future: everyone has a voice. “We have no hierarchy just for the sake of control.”
Brimming with the conviction that customer satisfaction is the key to success, Murthy has built a fleet-footed human resource management system that treats employees as customers, using the resources of the organisation to meet their professional and personal needs. His instruments are not just top-of-the-market salaries, but also operational empowerment as well as every facility that an employee needs to focus on the job.
Just what methods does Murthy use to ensure that his DNA is replicated in his company? Not for him are the classical leadership genre — transactional or transformational, situational or visionary. His chosen style, instead, is to lead by example, ensuring that the CEO’s actions set the template for all Infoscions.
Murthy believes that the betterment of man can be brought about through the ‘creation of wealth, legally and ethically’. The personal example that he has set enabled his company to mirror those beliefs, tying his own rewards, and measuring his value to the company, to his ability to create wealth, and erecting systems for the company’s wealth to be shared by its people. Sums up Nandan Nilekani, 41, deputy managing director, Infosys: “This is the future model of the corporation. Run an excellent company, and let the market increase its value to create wealth.”
Although Murthy is one of the prime beneficiaries of the philosophy — his 10 per cent stake in Infosys is worth Rs. 130 crore today — in his book, the leader leads not by grabbing the booty but by teaching others to take what they deserve. That’s why, on the Infosys’ balance sheet, the value of Murthy’s intellectual capital is nowhere near the top, on the rationale that the CEO, at 52, is worth far less to his company than, say, a bright young programmer of 26. To spread the company’s wealth, Murthy has instituted stock options — the first to do so in the country — for employees, creating 300 millionaires already. By 2000, he wants the number to climb to 1000.
To act as a beacon for his version of the learning organisation, Murthy not only spends an hour a day surfing the Internet to learn about new technological developments in his field, he also makes as many luncheon appointments as he can with technical people and academicians — dons from the Indian Institutes of Technology for instance — systematically plumbing their depths for an understanding of new developments in infotech. Murthy’s objective is not just to stay abreast of the state-of-the-art, but also to find a way to use that knowledge for the company.
Following Murthy’s example, Infosys has set up a technology advancement unit, whose mandate is to track, evaluate, and assimilate new techniques and methodologies. In fact, Murthy views learning not just as amassing data, but as a process that enables him to use the lessons from failure to achieve success. This self-corrective loop is what he demonstrates through his leadership during a crisis.
In 1995, for example, Infosys lost a Rs. 15 crore account — then 20 per cent of its revenues —whenthe $69 billion GE yanked its business from it. Instead of recriminations, Murthy activated Infosys’ machinery to understand why the business was taken away and to leverage the learning for getting new clients instead. Feeling determined instead of guilty, his employees went on to sign up high profile customers like the $20 billion Xerox, the $7 billion Levi Strauss, and the $14 billion Nynex.
“You must have a multi-dimensional view of paradigms,” says the multi-tasking leader. The objective is obvious: ensure that Infosys’ perspective on its business and the world comes from as many vantage points as possible so that corporate strategy can be synthesised not from a narrow vision, but from a wide angle lens. In fact, Murthy still regrets that, in its initial years, Infosys didn’t distil a multi-pronged understanding of the environment into its strategies, which forced it onto an incremental path that led revenues to snake up from Rs. 0.02 crore to just Rs. 5 crore in the first 10 years.
It was after looking around itself instead of focusing on its initial business of banking software, that Infosys managed to accelerate. Today the company operates with stretch targets setting distant goals and working backwards to get to them. The crucial pillar on which Murthy bases his ethical leadership is openness. Transparency, he reckons, is the clearest signal that one has nothing to hide. The personal manifestations of that are inter alia the practice of always giving complete information whenever any employee, customer, or investor asks for it: the loudly proclaimed insistence that every Infoscion pay taxes and file returns: and a perpetually open office into which anyone can walk.
But even as he tries to lead Infosys into cloning his own approach to enterprise, is Murthy choosing the best future for it? If Infosys grows with the same lack of ambition, the same softness of style, and the same absence of aggression, is it not cutting off avenues of growth that others may seize? As Infosys approaches the 21st century it is obvious that Murthy’s leadership will have to set ever-improving role models for his ever-learning company. After all, men grow old; companies shouldn’t
One of the ways in which Infosys spreads the company’s wealth among its employees is
Show Hint
- by awarding stock Option.
- by giving an extravagant bonus at the end of each year.
- Both (a) and (b)
- None of these
The Correct Option is A
Solution and Explanation
According to the passage, at Infosys
Show Hint
- control is exerted through a system of hierarchy.
- control is not exerted through a system of hierarchy.
- hierarchy does not have pride of place.
- popular opinion is the most respected voice.
The Correct Option is B
Solution and Explanation
Murthy believes in
Show Hint
- betterment of man through learning.
- betterment of man through ethical creation of wealth.
- betterment of man through experimentation.
- All of these
The Correct Option is D
Solution and Explanation
The example of the Rs. 15 crore account highlights
Show Hint
- Murthy’s ability to see his company through a crisis.
- Murthy’s ability to turn failure into success.
- Murthy’s potential to handle a crisis.
- All of these
The Correct Option is D
Solution and Explanation
According to Murthy, learning is
Show Hint
- the essence of a employee.
- the art of amassing data.
- a process that helps him to learn from failure.
- All of these
The Correct Option is C
Solution and Explanation
According to the passage,
Show Hint
- Infosys could not have succeeded without working backward.
- Infosys succeeded because it worked backwards.
- working backwards contributed to Infosys' success.
- working backwards is a hallmark of Infosys' functioning today.
The Correct Option is C
Solution and Explanation
Openness at Infosys includes
Show Hint
- the payment of taxes.
- giving complete information.
- sharing secrets.
- Both (a) and (b)
The Correct Option is D
Solution and Explanation
It is evident from the passage that
Show Hint
- Infosys will have to devise new strategies to meet the challenges of the 21st century.
- Infosys will stagnate if it does not become aggressive.
- Infosys may have to become more aggressive in order to retain its market.
- None of these
The Correct Option is C
Solution and Explanation
The cornerstone of Murthy’s human resource management system is
Show Hint
- the employee as God.
- optimum utilization of human potential.
- customer satisfaction.
- satisfaction of personal needs.
The Correct Option is C
Solution and Explanation
According to the passage,
Show Hint
- Infosys is a reflection of its CEO.
- Infosys brings the best out in Murthy.
- Infosys and Murthy are synonymous.
- Murthy, the man, and Murthy the CEO are incompatible.
The Correct Option is A
Solution and Explanation
Top Questions on Reading Comprehension
- Shown below are letters ‘e’ taken from four popular logos, arranged in a sequence. Which of the options is the correct sequence?
- UCEED - 2026
- English Language Comprehension
- Reading Comprehension
- Shown below are four options, each showing consecutive frames representing the movement of a pendulum of an old-style wall clock for an animation movie. Which is the correct option?
- UCEED - 2026
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- Acrucial moderating factor in how people experience comparisons is self-esteem. Individuals with high self-esteem are more likely to interpret upward comparison as informative rather than threatening. They are more resilient in the face of others’ success and more likely to believe they can reach their own goals. In contrast, people with low self-esteem are more prone to interpret comparison as judgment, reinforcing negative self-views and triggering feelings of inadequacy.
This dynamic creates a self-reinforcing loop. People with high self-esteem are less vulnerable to upward comparison, which intensifies those doubts. Those with a secure sense of self are more likely to use comparison as a learning tool. The same external stimulus—a colleague’s achievements, a friend’s popularity—can have radically different effects depending on internal stability.
Self-esteem also influences how people choose their comparison targets. Research has found that individuals often engage in “selective comparison,” seeking out those who confirm their existing beliefs about themselves. This can become a subtle form of self-sabotage. Someone who feels unworthy may subconsciously seek out targets that reinforce that sense, perpetuating a narrative of inferiority. One of the most promising antidotes to social comparison is temporal comparison—evaluating oneself not against others, but against one’s own past. This method has been shown to increase motivation and satisfaction, especially when individuals can see concrete progress. Temporal comparison activates the same reward circuits as social comparison but avoids the threat systems associated with social ranking. It also reinforces agency: individuals focus on what they can control and improve rather than what others control. In therapeutic and coaching settings, temporal comparison is used to help clients build self-efficacy and track growth over time.
Moreover, people who focus on self-improvement rather than social dominance are less likely to fall into cycles of envy or self-pity. They can still use others as inspiration, but they do so without attaching their self-worth to the outcome. This is not to say they never compare—but that they focus on learning, rather than judgment. The most skilful approach to comparison may lie in eliminating it, but in reframing it as feedback. When we interpret comparison as information rather than a verdict, we can ask, “What can I learn from this?” This shift turns comparison into a growth tool. Teachers mentor their students, not as rivals. Psychologists emphasize that the key variable here is mindset.
A fixed mindset sees comparison as a threat. If someone else is better, it means we are worse. A growth mindset sees comparison as a map. If someone else has reached a certain level, it means the path exists. This reframing is not just a cognitive trick. It changes the emotional tone of comparison, making it more likely to inspire than to wound. Reframing also requires emotional regulation—the ability to notice an initial pang of envy or shame without reacting impulsively. With practice, individuals can learn to pause, reflect, and reinterpret their emotional responses. Over time, this builds resilience and self-trust, allowing comparison to become a learning tool rather than a cage.- XAT - 2026
- Verbal and Logical Ability
- Reading Comprehension
When people who are talking don’t share the same culture, knowledge, values, and assumptions, mutual understanding can be especially difficult. Such understanding is possible through the negotiation of meaning. To negotiate meaning with someone, you have to become aware of and respect both the differences in your backgrounds and when these differences are important. You need enough diversity of cultural and personal experience to be aware that divergent world views exist and what they might be like. You also need the flexibility in world view, and a generous tolerance for mistakes, as well as a talent for finding the right metaphor to communicate the relevant parts of unshared experiences or to highlight the shared experiences while demphasizing the others. Metaphorical imagination is a crucial skill in creating rapport and in communicating the nature of unshared experience. This skill consists, in large measure, of the ability to bend your world view and adjust the way you categorize your experiences. Problems of mutual understanding are not exotic; they arise in all extended conversations where understanding is important.
When it really counts, meaning is almost never communicated according to the CONDUIT metaphor, that is, where one person transmits a fixed, clear proposition to another by means of expressions in a common language, where both parties have all the relevant common knowledge, assumptions, values, etc. When the chips are down, meaning is negotiated: you slowly figure out what you have in common, what it is safe to talk about, how you can communicate unshared experience or create a shared vision. With enough flexibility in bending your world view and with luck and charity, you may achieve some mutual understanding.
Communication theories based on the CONDUIT metaphor turn from the pathetic to the evil when they are applied indiscriminately on a large scale, say, in government surveillance or computerized files. There, what is most crucial for real understanding is almost never included, and it is assumed that the words in the file have meaning in themselves—disembodied, objective, understandable meaning. When a society lives by the CONDUITmetaphor on a large scale, misunderstanding, persecution, and much worse are the likely products.- XAT - 2026
- Verbal and Logical Ability
- Reading Comprehension
Later, I realized that reviewing the history of nuclear physics served another purpose as well: It gave the lie to the naive belief that the physicists could have come together when nuclear fission was discovered (in Nazi Germany!) and agreed to keep the discovery a secret, thereby sparing humanity such a burden. No. Given the development of nuclear physics up to 1938, development that physicists throughout the world pursued in all innocence of any intention of finding the engine of a new weapon of mass destruction—only one of them, the remarkable Hungarian physicist Leo Szilard, took that possibility seriously—the discovery of nuclear fission was inevitable. To stop it, you would have had to stop physics. If German scientists hadn’t made the discovery when they did, French, American, Russian, Italian, or Danish scientists would have done so, almost certainly within days or weeks. They were all working at the same cutting edge, trying to understand the strange results of a simple experiment bombarding uranium with neutrons. Here was no Faustian bargain, as movie directors and other naifs still find it intellectually challenging to imagine. Here was no evil machinery that the noble scientists might hide from the problems and the generals. To the contrary, there was a high insight into how the world works, an energetic reaction, older than the earth, that science had finally devised the instruments and arrangements to coart forth. “Make it seem inevitable,” Louis Pasteur used to advise his students when they prepared to write up their discoveries. But it was. To wish that it might have been ignored or suppressed is barbarous. “Knowledge,” Niels Bohr once noted, “is itself the basis for civilization.” You cannot have the one without the other; the one depends upon the other. Nor can you have only benevolent knowledge; the scientific method doesn’t filter for benevolence. Knowledge has consequences, not always intended, not always comfortable, but always welcome. The earth revolves around the sun, not the sun around the earth. “It is a profound and necessary truth,” Robert Oppenheimer would say, “that the deep things in science are not found because they are useful; they are found because it was possible to find them.”
...Bohr proposed once that the goal of science is not universal truth. Rather, he argued, the modest but relentless goal of science is “the gradual removal of prejudices.” The discovery that the earth revolves around the sun has gradually removed the prejudice that the earth is the center of the universe. The discovery of microbes is gradually removing the prejudice that disease is a punishment from God. The discovery of evolution is gradually removing the prejudice that Homo sapiens is a separate and special creation.- XAT - 2026
- Verbal and Logical Ability
- Reading Comprehension
Questions Asked in CAT exam
- The passage given below is followed by four summaries. Choose the option that best captures the essence of the passage.
In the dynamic realm of creativity, artists often find themselves at the crossroads between drawing inspiration from diverse cultures and inadvertently crossing into the territory of cultural appropriation. Inspiration is the lifeblood of creativity, driving artists to create works that resonate across borders. In a globalized era of the modern world, artists draw from a vast array of cultural influences. When approached respectfully, inspiration becomes a bridge, fostering understanding and appreciation of cultural diversity. However, the line between inspiration and cultural appropriation can be thin and easily blurred.
Cultural appropriation occurs when elements from a particular culture are borrowed without proper understanding, respect, or acknowledgment. This leads to the commodification of sacred symbols, the reinforcement of stereotypes, and the erasure of the cultural context from which these elements originated. It is essential to recognize that the impact of cultural appropriation extends beyond the realm of artistic expression, influencing societal perceptions and perpetuating power imbalances.- CAT - 2025
- Para Summary
- The number of distinct integers $n$ for which $\log_{\left(\frac14\right)}(n^2 - 7n + 11)>0$ is:
- CAT - 2025
- Linear Inequalities
- In the set of consecutive odd numbers $\{1, 3, 5, \ldots, 57\}$, there is a number $k$ such that the sum of all the elements less than $k$ is equal to the sum of all the elements greater than $k$. Then, $k$ equals?
- CAT - 2025
- Number Systems
- The number of distinct pairs of integers $(x, y)$ satisfying the inequalities $x>y \ge 3$ and $x + y<14$ is:
- CAT - 2025
- Number Systems
For any natural number $k$, let $a_k = 3^k$. The smallest natural number $m$ for which \[ (a_1)^1 \times (a_2)^2 \times \dots \times (a_{20})^{20} \;<\; a_{21} \times a_{22} \times \dots \times a_{20+m} \] is:
- CAT - 2025
- Linear Inequalities