A PROJECTONA STUDY ON HR STRATEGY ADOPTED BY TCS

COMPULSORY SUBJECT: STRATEGIC MANAGEMENT

SUBMITTED TOUNIVERSITY OF MUMBAI

FOR SEMESTER I OFMASTER OF COMMERCE(BANKING & FINANCE)BY(KHUNDONGBAM SURESH SINGH)

UNDER THE GUIDANCE OFDR. SANGEETA PAWARASSOCIATE PROFESSORYEAR: 2014 - 2015

DECLARATION BY THE STUDENT

I KHUNDONGBAM SURESH SINGH student of m.com part I roll number _________ hereby declare that the project for the paper STRATEGIC MANAGEMENT submitted by me for semester- i during the academic year 2012- 2013, is based on actual work carried out by me under the guidance and supervision of Dr. SANGEETA POWER.I further state that this work is original and not submitted anywhere else for any examination

Signature of StudentKH SURESH

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on A STUDY ON HR STRATEGY ADOPTED BY TCS submitted by KHUNDONGBAM SURESH SINGH Student of M.Com Part-I.This project is original to the best of our knowledge and has been accepted for Internal Assessment

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ACKNOWLEGEMENTI hereby express my heartiest thanks to all sources who have contributed to the making of this project. I oblige thanks to all those who have supported, provided their valuable guidance and helped for the accomplishment of this project. I also extent my hearty thanks to my friends, our professor and all the well wishers.

I also would like to thanks my project guide Dr. Sangeeta Pawar for his guidance and timely suggestion and the information provided by him on this particular topic.

It is matter of outmost pleasure to express my indebt and deep sense of gratitude to various person who extended their maximum help to supply the necessary information for the present thesis, which became available on account of the most selfless cooperation.Above all I sincere thanks to the UNIVERSITY OF MUMBAI for which this project is given consideration and was done with outmost seriousness.

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CONTENTSSL.NO.PARTICULARPAGE NO.

CHAPTER 1- INTRODUCTION

CHAPTER 2

EXECUTIVE SUMMARYA number of studies suggest that strategic HRM can contribute to firm performance (Guest 1997; Wood 1999; Paauwe 2004). Many organisations are undergoing changes as a consequence of globalisation, new technology application and fundamental changes of work and employment relations. There is increasing demand to transform HRM practices from focusing on a functional role to a strategic role.IT companies operating in the Mumbai, India are currently experiencing a number of HRM issues as a direct result of the changing world demands for information on IT field, subsequent rapid growth in the IT industry and fierce competition for a limited and capable workforce. This context pushes TCS companies to take a strategic position to effectively deploy their human resources and address the significant issue of skill and labour shortages in regional areas.The aim of this research project is to examine the link between strategic human resource management (HRM) and business performance of the TCS. To examine this relationship, we conducted face-to-face interviews and asked participants to complete a survey. The data were provided by 3 HR managers employed at different branch of TCS in Mumbai

INTODUCTIONThe overall purpose of this research is to examine the effects of strategic human resource management (HRM) practices on business performance of the TATA CONSULTANCY SRVICES LIMITED (TCS) in India. There are many definitions of strategic HRM in the literature. For the purpose of this study, it is defined as a planned set of human resource management policies and practices that are designed and implemented to enable an organisation to achieve its business objectives (as defined by De Cieri et al)The focus of strategic HRM is on achieving organisational business performance, so it is crucial to integrate HRM into organisational business strategies (Wright and McMahan 1992; Gratton et al. 1999; Becker et al. 2001; Boxall and Purcell 2004; Nankervis et al. 20010). Therefore, in this report, the extent of HRM strategies adopted by the coal mining companies will be evaluated. In addition, the link between HRM and business strategies and how such a linkage enables organisations to achieve business results in the context of dynamic changing environment will be examinedThe key issue facing the TATA CONSULTANCY SRVICE is the challenge of managing people as a result of fundamental changes in new work form and employment relation in the country. The shortage of skilled labour is one issue, creating a bottlenecks effect on further expansion and development of services in the long run . Effective management of contract workforce is another issue, as the level of contract ( bond) labour used by the TCS companies has been steadily increasing for the past few years. However, managing this group of peripheral workforce is beyond the traditional framework of managing employment relations (Zheng & Richardson 2006; Zheng et al. 2007). This report will outline these and other HRM challenges in the coal industry

OVERVIEW ON TATA CONSULTANCY SERVICES

TATA CONSULTANCY SRVICES LIMITED is a multinational information technology (IT) service, consulting and business solutions Company headquartered in, Mumbai, India.TCS operates in 46 countries. It is the largest provider of information technology and business process outsourcing services. It is part of one of Indias largest and oldest conglomerates, the TATA. It is a subsidiary of the Tata Group and is listed on the Bombay stock exchange and the national stock exchange of India. TCS is the largest India company by market capitalization and is the largest India-based IT services company by 2013 revenues. TCS is now placed among the Big 4 most valuable IT services brands worldwide.In 2013, TCS is ranked 40th overall in theForbesWorld's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the top Indian company. It is the world's 10th largest IT services provider, measured by revenues.

Tata consultancy services ltd (TCS) was founded in 1968 by a division of Tata Sons Limited. Its early contracts include providing punched card services to t a sister company TISCO (now Tata steel). It later bagged the countrys first software project, the Inter- Branch Reconciliation System (IBRS) for the Central Bank of India. It also provide bureau service to unit trust of India

HISTORY

In the early 1970s, Tata Consultancy Services started exporting its services. TCS's first international order came from Burroughs, one of the first business computer manufacturers In 1981, TCS established India's first dedicated software research and development centre, the Tata Research Development and Design Centre (TRDDC) in Pune On 25 August 2004, TCS became a publicity listed company. In 2005, TCS become the first Indian based IT services company to inter the bioinformatics market By 2008, TCSs e-business activities were generating over US$500 million in annual revenues. TCS entered the small and medium enterprises market for the first time in 2011, with cloud based offerings. On the last trading day of 2011, TCS overlooked RIL to achieve the highest market capitalisation of any Indian based company. In 013, TCS was awarded a six year contract worth over $110 crores to provide services to the India Department of Posts. In 2013 TCS moved from the 13th position to 10th position in the 10 global IT service companies. In July 2014, TCS became the first Indian company to cross the Rs 5 lakh crore mark in market capitalization In September 2014, TCS become the top employer of women in India.

OBJECTICES OF STUDY What Is Strategy In Brief? What Is HR Strategy And Its Evolution? How Hr Strategy Is Followed In Tata Consultancy Services? To Understand The Pyramid Of Hr Strategy In Tata Consultancy Services To Understand The Important Of Trade To Study The Recent Trend In Hr Strategy Advantage Of Hr Strategy Hr Challenges In Tata Consultancy Services

WHAT IS STRATEGY MANAGEMENT?The word strategy is derive from the Greek word strategia, art of troop leader; official of general, which include several subsets of skill including tactics, logistics ect, the term came into use in the 6th century C.E. in east roman terminology.Strategy is action plan. In simple word strategic is putting a plan into action to accomplish the target goal.Strategy is A plan or course of action or a set of decision/rules making a pattern or creating a common thread. A pattern or common thread related to the organizations activities which are derived from the policies, objectives and goals. Concerned with pursuing those activities which move an organisation - from its current position to a planned future position Concerned with the resources necessary for implementing a plan or a predetermined course of action.

WHAT IS HR STRATEGYHuman resource strategy is designed to develop the skills, attitudes and behaviours among staff that will help the organization meet its goals. Human resource strategy consists of principles for managing the workforce through HR policies and practices. It covers the various areas of human resources functions such as recruitment, compensation, performance management, reward and recognition, employee relations and training.The primary task of the manager of human resources is to improve the match between individuals and jobs. A good HRM department should know how to use attitude surveys and other feedback devices to assess employees' satisfaction with their jobs and with the corporation as a whole. HRM managers should also use job analysis to obtain job description information about what each job needs to accomplish in terms of quality and quantity. Up-to-date job descriptions are essential not only for proper employee selection, appraisal, training, and development for wage and salary administration, and for labour negotiations, but also for summarizing the corporate wide human resources in terms of employee-skill categories. Just as a company must know the number, type, and quality of its manufacturing facilities, it must also know the kinds of people it employs and the skills they possess. The best strategies are meaningless if employees do not have the skills to carry them out or if jobs cannot be designed to accommodate the available workers. Hewlett-Packard, for example, uses employee profiles to ensure that it has the right mix of talents to implement its planned strategies.

Characteristic of HR strategyHR strategy must be aligned with the organizations vision, mission and goals. In developing an HR strategy, the company must analyze the characteristics of its industry, determine its competitive advantage, and identify key processes and key people. Creating different strategies for all groups of people in the organization may be necessary, depending on their skills, knowledge and responsibilities. The strategy must look at the organization's culture, structure, people and systems.

Following are the characteristics of HR strategy:-1. Objective OrientedHR strategy focuses on organizational objectives as well as human resource management function of the organization. It is prepared to realize certain well-defined objectives of the organization.

2. Future OrientedHR strategy is formulated to supply sufficient number and kind of employees in future to achieve the organizational goals and objectives. Hence, it is future-oriented mechanism.

3. Competitive AdvantageHR strategy focuses on the competitive advantage in the market in the sense that it makes people more and more strategic to achieve their goals. Hence, it accepts people as strategic resources in the organization.

4. Environmental AdaptationHR strategy helps in adapting any sort of change that has occurred in the environment. Its plans and procedures are designed and implemented as per the environmental change.

5. Efficiency DevelopmentHR strategy develops the skill, knowledge and ability of employees and makes them competitive. As a result, of which the efficient employees can be mobilized in the organization for a longer period of time.

IMPORTANCE OF HR STRATEGYHuman Resource strategy focuses on the performance of the organization. By taking a holistic view of the whole, human resource strategy gives sight to systemic issues impeding the accomplishment of organizational goals. Through the successful implementation of key methods that improve the company's financial position will an HR activity attain the designation of strategic? Following are the Important of HR strategy:-PurposeCompetitive advantage becomes an output of consistently focusing on human resource strategy. This is possible only when companies work alongside human resources and implement systems and practices together. By having the right people in an organization, the company has an advantage over others with a less productive workforce. High performing individuals help the organization's strategic performance.Types of HR StrategyThe high performance work system (HPWS) is a type of human resource strategy, which focuses on effectiveness of workforce staffing principles and training. This type of strategy helps to increase performance across the organization and works well for different types of companies. The commitment strategy utilizes techniques such as employing very skilled employees, clearly defined responsibilities and higher pay and benefits. The control strategy focuses on low requirements for employment, micromanaging and low pay and benefits.

PerformanceHuman resource strategy affects the performance of the workforce, which affects the organization. The strategy determines which programs and systems the company will utilize. These systems can either help or hinder the productiveness and engagement level of the workforce. By decreasing productivity and engagement, a human resource strategy can significantly reduce the performance and profitability of the company.

MeasurementCompanies sometimes have difficulties measuring the effectiveness of human resource strategy. To rectify this, an organization can use a balanced scorecard measurement approach to determine the achievement of strategic human resources goals. The balanced scorecard allows the company to select the categories for measurement and then associate goals to those categories. This approach provides a more balanced assessment of the efficacy of the human resources department and the entire organization. Managers also play a role in measuring human resource strategy through providing necessary feedback on systems and program implementations.

HOW TO CREATE AN HR STRATEGYIn 2001, Robert S. Kaplan and David P. Norton, business strategy experts and creators of the balanced scorecard performance-measurement system, introduced strategy maps in a book entitled The Strategy-Focused Organization. Each strategy map a business creates is a one-page diagram used to describe and communicate a strategy for achieving a single long-term goal. In a human resources department, a strategy map describes and shows how an HR strategy links and adds value to a strategic business goal. Followed are processes:-Layout and DivisionsA blank strategy map is a simple box divided into four horizontal sections, with Financial, Customer, Internal, and Learning and Growth section labels running down the left side of the box. The first two sections establish outputs -- financial and customer-focused expectations -- that align with company goals. The second two sections describe internal and learning and growth inputs, or how HR plans to meet input expectations. The map uses text boxes and connecting lines to create and identify relationships between input and output sections and goals.

Set Financial Expectations and GoalsUsing the chart, state the financial outputs required to achieve a long-term objective identified in the companys strategic plan. For an objective such as maximizing organizational value, company-stated output requirements might include increasing gross revenues, increasing productivity and decreasing expenses. Decide what part and how much of each outcome HR can affect. Enter these expectations and dollar amounts underneath the appropriate output requirement. For example, HR might commit to reducing turnover rates by 10 percent, which according to current cost estimates will reduce recruiting and hiring expenses by $25,000 per year.Define and Set Customer-Focused ExpectationsFor each financial expectation, define who the HR customer is and describe what the customer will do to make sure HR achieves its financial commitments. As author and co-founder of JungleRedCommunication.com Jeremy Hunter notes, the HR customer most often isnt a person, but instead is a thing that relates to employees, such as employee engagement, wellness or diversity. For example, you might say that increased employee engagement will reduce turnover rates or that a healthier workforce will improve productivity.

Internal InputsDescribe the steps HR will take to achieve customer-focused outputs. According to Hunter, internal inputs are high-level steps, not the technology or training required to implement a system. For example, HR might decide that leadership development, an employee-recognition program and improved performance appraisals are appropriate steps for increasing employee engagement, which in turn reduces turnover rates. In the same way, a wellness program, an annual health and safety fair, and employee-staffed safety teams create a healthier workforce.

Establish Learning and Growth InitiativesComplete the strategy map by identifying what HR must do to transform internal inputs from a goal to reality. Keep in mind that learning and growth initiatives are the specific knowledge, skills and abilities required to meet these goals, not a how-to list. The how-to list comes later as you use the strategy map as an implementation tool. For example, a leadership development goal might require mentoring, an online management-training program and competency-based performance appraisals to develop management expertise, communications and people skills, and the business-process knowledge that leadership roles require.

Role of HR as envisaged by managementThe Human Resource (HR) function is closely linked to the business strategy and plan by being aligned to the TCS structure through HR support (including resource management through the Resource Deployment Manager (RDM) to each Industry Practice and Service Practice and Geography and innovative workforce practices.

HR functions in TCS

1. Manpower planningTCS has standard practices and processes for resource mobilization. Manpower Allocation Task Committee (MATC) is a corporate function with branch and geography level representation. Its main responsibility is allocating people in various projects. The TCS intranet systems maintain up-to-date resumes and skill sets of all associates. The right resources are identified based on the requirements and candidates availability.The following figure illustrates the identification of resources from different streams:

2. Recruitment processTCS hiring policy includes an optimal mix of campus (fresh) and lateral (experienced) recruits. Fresh recruits are normally selected from academic institutes. TCS has key partnerships with various academic institutions and considers them as a critical community for recruitment. TCS has a number of sources for recruitment but its main source is its strong relationship with universities. Through liaison with university placement officers and recruitment fairs, TCS attracts large numbers of applications. Experienced professionals are recruited laterally by the sourcing cell with the active involvement of the unit heads through sourcing agencies and direct interviews. The recruitment of experienced professionals is centrally coordinated based on the needs of practice/delivery centers. Referrals, advertisements, job portals/web search, placement fairs, placement agencies, TCS databank, and so on are used singly or in combination for sourcing the CVs.TCS also recruits locally from geographies that it operates in.

The following background checks are conducted for all associates:Academic Background Check - All TCs applicants, on joining TCS, are required to submit copies of all the academic certificates along with their mark sheets to the HR. An HR officer checks the veracity of the copies received from the applicant, with the originals submitted on joining.Previous Employment Checks - In case of lateral hires, TCS conducts employment checks of its associates, based on the contact information that they provide of their previous employer. The associates on joining TCS need to submit a release letter from the previous employer and experience certificates from all their previous employers.Pre-employment Medical Checks - Pre-employment medical checks are conducted for all associates and fitness certificates obtained prior to joining TCS. TCS also conducts a separate set of overseas medical checkups for associates who are required to travel abroad on business requirements.

TCS changed recruiting strategyTCS has decided to adopt the policy of just-in-time hiring or real-time management. This new strategy is quite different than the previous one where TCS used to hire from campuses in hordes. These new recruits were kept on bench for many months till they were allocated projects. This not only helps the company to optimise and increase its utilisation, but also aligns its hiring strategy closer to the demand and supply of business. The company is working on ways to reduce the two-month training period by half. TCS, with over 130,000 employees, has already freeze lateral hiring and plans to hire only on need basis. The decision is also been based on their constant interaction with the academia, which have been telling that students are not pursuing higher studies as they get jobs and also during the academic year they tend to get lax.

3. Learning and developmentLearning and development Mission:-To enhance the competency capital of TCS, through co-creation of learning experience continuously and consistently, so as to facilitate delivery of world-class human capability to the customer, enabling the company to achieve its vision." TCS invests about 4 per cent of its annual revenues in Learning and Development, to build competency capital within the company in cutting edge technologies, domain and functional areas. Special emphasis is placed on providing necessary learning interventions to associates with potential of being leaders in the company. Thus, it is evident that focus is divided equally between the regular employees and managerial employees alike. All the learning programs are mapped to competencies and address learning needs at different proficiency levels. Learning and Development managers closely work with business to develop and deliver programs that will make our associates deliver value-for-money to our customers. Assessment centers are also being used by TCS. Several levels of learning are provided in TCS. Each of the levels is unique, aimed with varying objectives.

Initial Learning Program (ILP)TCS Initial Learning Program is designed to provide a smooth transition from Campus to Corporate environment. The program is designed to transform graduate engineers into IT Consultants with global mindset. The participants are put through a rigorous 47- day program that has good mix of technical skills and soft skills.

Continuous Learning Program (CLP)Continuous Learning Program (CLP) is a manifestation of the company's commitment to the continuous growth of associates, in line with the core value of Learning & Sharing. Programs under the CLP umbrella arise out of business strategies, project needs, technology and business directions and individual aspirations, and span across Technologies, Domains, Processes and Soft-skills.This lay emphasis on long-term, short-term and medium-term needs of the organization alike.

Leadership Development Program (LDP)The program is to churn out the future leaders for the company. Associates are carefully assessed for leadership potential and then put through rigorous branded programs. TCS also encourages associates to attend various programs at premier B-schools across the globe.

Foreign Language Initiative (FLI)Foreign Language Initiative is to help the associates to communicate effectively with the customers. Under this initiative, associates are encouraged to learn one or more foreign languages. This initiative also helps associates to use English effectively for business communication. This is highly beneficial in a company with a diverse workforce. The cross-cultural issues are curtailed with the proper use of communication.

Workplace LearningApart from all these initiatives TCS encourages "workplace learning". Associates are encouraged to learn while at work. To facilitate this, TCS has subscribed a huge library of e-Learning courses and online books. The classroom session and e-learning materials complement each other.

Some other ways of training TCS has a dedicated training centre in Trivandrum (South India) where new recruits undergo intensive training for three months Continuing Education Programs are conducted every month to address training requirements and to create awareness of new and emerging technologies TCS along with the technology alliance partners, conduct training sessions to keep associates on par with the technological trends in the industry Computer Based Training (CBT) programs, such as Skill Port (web-based), are available to all associates. Skill Port is a very vast database containing study material on different topics ranging from technology, domain, and soft-skills to project management. Every lesson concludes with a self-assessment which helps associates measure their understanding. Training in foreign languages, exposure and familiarity with various cultures and soft-skills (telephone etiquette, personal grooming, way of dressing for different countries, and so on) are also given immense importance. Associates travelling overseas undergo the basic culture training to help them adjust to the new culture. TCS also addresses training requirements specific to processes followed by clients. This is done in the following ways: Knowledge acquisition plans are prepared for every new recruit joining the project team A core team is created that is given the responsibility of providing relationship-level induction to new joiners. Relationship-level induction training includes domain-specific training, training on the client processes, security and cross-cultural training sessions Further training (hands-on or classroom) is provided by the respective project teams.

4. Customer FeedbackAt the end of the project or once in every six months, whichever is earlier, the PL will request the customer to fill the Customer Feedback/Customer Satisfaction Survey (CSS) form. Additionally, feedback may be collected at the end of every phase as appropriate. The CSS comprises questions on quality of deliverables, project management, documentation, communication, TCS infrastructure, security and confidentiality. A copy of the CSS is sent to the Delivery Centre Head (DCH) and the QC. For attributes, where TCS performance rating is less than 3 or where the overall CSI is less than 3, detailed corrective and preventive action is planned and tracked to closure by the PL/GL. The feedback provided by the customer through the Customer Feedback Form/CSS form is used for process improvement and forms an important input for TCS iQMS. This feedback is discussed in Project Management Review (PMR) meetings.

Customer Complaint ManagementAny complaint raised by customer through e-mail, telephone calls, letters, CSSs, during the lifecycle of the project will be sent to the PL. The PL along with other stakeholders will analyse and report the customer complaint to the Quality Reviewer. PL/GL along with the QC/QR will take appropriate corrective actions to resolve the complaint. The appropriateness of the corrective action will be verified by the GL/DCH through interaction and follow-up with the customer. QAG will consolidate the complaints at the organisation level and carry out a causal analysis to identify opportunities for improvement.

Managing Key Personnel and Staff ContinuityTCS proposes to have a core team and a flexible team for ramp-up/down. The core team will be identified based on the: Learning curve Skills requirements CriticalityIn addition to the policy of "Reward and Recognition" at the organisational level, TCS may also arrange for specific HR initiatives at the client level. Initiatives such as the "Fun @ " news bulletin for , internal associates satisfaction survey for TCS associates within the relationship, Star of the month and so on. While TCS would like to retain the core team as long as possible in the best interest of knowledge retention, a balance between project requirements and career growth/personal constraints will be a consideration. TCS will ensure an average retention period of 12 months and will strive to extend this period on mutual interests.

Assistance in Helping Onboard AssociatesTCS helps in the on boarding of its associates on the personal as well as professional fronts.TCS provides induction for overseas travel to all its associates to familiarise them with the new environment, culture and language. For every geography, a manual is available that provides a quick overview to the individual about the place and the dos and donts. Further, the local HR team also assists the individual with accommodation and travel assistance to ensure the individual settles down immediately. Regarding the professional front, TCS ensures that the individual has all the right soft skills to interact with the clients teams and become part of the same.

Guaranteeing the Quality of the AssociatesTCS recruits associates from the top universities. Each associate undergoes six to eight weeks of induction training on joining TCS. Performance is evaluated at regular intervals and if the performance is found below par then the associate is put onto a performance improvement program. Based on the skills, associates are identified for different projects by MATC. Associates undergo formal/informal screening before being inducted into the project. Subsequently, the associates undergo one week of relationship level induction and two weeks of project level induction. Project level induction comprises of classroom sessions, case studies, quizzes, and playback sessions. Associates are assigned to projects on successful completion of the project level induction.

Guaranteeing that Proposed Associates are a Match for the Skills RequirementFor every position required, TCS will ensure the candidate has the necessary business or technical skills. As a part of its training program, TCS also covers training in soft skills (leadership, conflict resolution, and team building, and so on) and also cultural training (training in the culture and environment of the customers geography, foreign language training, and so on.) Target Time to Fill any New Resource Requirement.The time to meet the requirements depends on the following factors: Skill requirement Location of the requirement (onsite/offshore) Duration of the assignment Number of resources required Availability of the skill internally or with other TCS subsidiaries Whether sourced from Indian market or international market Time taken by client to interview the candidate, if the client chooses to interview the candidate Dependencies on visa procedures by concerned consulate in India Visa type (< Three weeks assignments require one week of visa processing time) based on the above dependencies; the lead time can vary from two to six weeks. TCS encourages the client to plan ahead for any resource requirements so that TCS can identify the right candidates for the requirement. With short notice requirements it is generally difficult to meet all the requirements (start date, skills, experience, and duration)

Guaranteeing Satisfaction Individuals Places with a ClientTCS will place its employees as contractors to and will guarantee satisfaction on these individuals in the following ways: TCS team will screen the resumes and interview the associates Share the resume of the short listed consultants with client. For key positions, TCS is open to having the candidate interviewed prior to coming on-board Lastly, in rare cases of poor performance, TCS will replace the candidate at no cost to .Typical Type Lead-time for the Replacement of an Individual TCS will take all steps to ensure that the candidates proposed possess the right set of skills (technical or domain) and good communication skills as well. The following table lists the unforeseen or undesirable TCS is also equipped to handle unforeseen or undesirable circumstances such as:

Event | Mitigation |Poor performance by an individual | will revert within 30 days of the individuals coming on board about performance issues, if any. In this case TCS will replace the individual at no cost to . The lead time to onboard a person would be 3-4 weeks |Untimely processing of papers for travel for resources from the global resource pool | TCS will ensure the individual can start contributing from offshore. The lead time to onboard the staff would be a time period of three to four weeks. |Resignations and Unexpected leave | TCS has defined robust processes that are people independent. Cross-trainings, up-to-date documentation and ensuring back-ups for key personnel are some of the ways in which TCS handles unforeseen turnovers in the team. TCS will ensure that the replacement is onboard before the departure of the outgoing person. | Lead time for replacing the individual would be approximately three weeks.

Knowledge Transfer Prior to the End of the Assignment:At the end of an assignment, TCS will ensure adequate knowledge is transferred back to the business and IT users of in the following ways: Completed system and user documentation Formal classroom and hands-on training (train the trainer concept will be used) Conduct playback sessions to validate user understanding In many cases, TCS has even developed CBTs for users who are spread across geographical boundaries. This enables them to conduct their skills development at their own pace. The CBTs can also be used to induct new recruits

5. Performance Management-TCSs organisational goals are defined at the beginning of the year. These goals are in line with the annual business plan for the organisation. These organisation goals are translated into each Service and Industry Practices goals within TCS to ensure that the organisational goals are met. All higher-level goals are ultimately translated into individual performance measures. Performance is tracked against achievement of these preset individual goals. Appraisers review individual performances on a quarterly basis against the set goals. These goals are revisited and modified, if necessary. Performance is ultimately pegged to a point in a scale, which ranges from 1 to 5. The aim is to highlight excellent performers and to work out an improvement plan for people falling short of the required performance level. There are two crucial aspects to the individual's appraisals process, which are: Goal Setting Performance Appraisal

Goal SettingGoal setting is a process that takes place at the time of an associates allocation to a project. The aim of the process is to define Specific, Measurable, Agreed and Action-oriented, Realistic, Time and resource constrained (SMART) goals for the individual, which are aligned with the project and practice goals. Each of these goals has to be tracked by the Project Leader (PL) during the allocation of the associate to the project, at pre-defined intervals. At the time of the appraisal, the associate's performance is assessed against these goals, as well as against certain other soft factors such as flexibility and conduct. Training needs can be identified based on the skills and competencies that the individual needs to develop to achieve the goals.If the associate is released from the project the goals set in that project are evaluated and the evaluation will reflect on the project end appraisal rating.Global SPEED - Cascade of goalsASSOCIATE GOALSGL, PL, RM, BRM BSCGEOGRAPHY, DC, LAM, CORPORATE BSCCEO BSCGlobal SPEED (System for performance evaluation & employee development): Global SPEED facilitates Role based approach to Performance Management. Earlier Global used for international purpose and speed for India. Used all over the world in TCS. It is an online tool in Ultimatix. Global speed is used for Goal setting and we use BSC.

ICLAM Online tool which is used for learning and development. ICLAM is used for competency mapping for individual (both behavioural and technical). Individual roles are defined using this tool. Balance score card used for employees to get to know about Corporate Goals and objectives. Role tagged for an employee in ICLAM forms the basis of Goal Setting. Roles details of the employee will be populated in Global SPEED from ICLAM. Attribute section of appraisal will be connected with the role tagged to an employee. These will be picked up from ICLAM at the time of Goal setting. Stages in SPEED Data validation Goal setting Self evaluation

Discuss your performance with your appraiser before self evaluation Evaluation

Time sheet management Update work done by employees on day to day basis. Also part of billing process.

Performance Appraisal Superior defines targets for individual, and then he talks to them in person and set target together. Appraisal is done in form of self evaluation; Immediate Superior will appraise and finally reviewed by reviewer

In TCS, appraisals are conducted at the following instances: Appraisal for trainees and experienced professionalsFor trainees and experienced professionals, appraisals are carried out every two months till confirmation. The appraiser rates the associate qualitatively, based on the performance during those two months and identifies individual training needs. Performance against the individual's goals is also tracked.

Annual appraisalsFor confirmed associates, year-end annual appraisals are carried out against some pre-defined parameters. Performance against the individual's goals is also tracked. If project-end appraisals have been done during the annual appraisal period, the current appraiser will also consider the ratings on these appraisals while arriving at the overall rating. Besides an overall rating, the appraiser may also recommend the individual for a promotion. The overall rating determines the increment in basic salary for the individual (different for different grades and different ratings). The new variable pay of the employee is determined by three factors: Company EVA EVA of the business unit (practice) Individual Performance Factor

Project end appraisalsThese appraisals are done when the employee is released from the project prior to its completion, or upon the completion of the project. The parameters for this appraisal are the same as for annual appraisal. The employee is also given an overall rating, which will be considered at the time of the annual appraisal.The future plans of the HR department include moving towards a system without annual appraisal.

6. Compensation structure

In todays scenario organizations are not much interested in acquiring physical resources but what occupies their concern is whether those resources have been utilized to the ultimate by their existing human potential. TCS has been given the title of the best employer. And the title givers are none other than the employees. TCS has a compensation structure which has only 5 % of its remuneration based on performance. TCS is such an organization, which makes their employees, work in teams and it is the total team, which they evaluate while deciding the remuneration, not the individual. This has a lot of benefits. First of all it does not encourage peer rivalry. Work teams are characterized by the presence of faith amongst the team members, co-ordination, interdependence, team spirit, trust, etc. These qualities cannot foster if each individuals greed to stand out in the crowd overcomes his concern for the success of the team as a whole. That is the reason TCS has resorted to such a compensation structures. In an attempt to find out what is the reason for the company generating such a degree of work satisfaction amongst its employees it was revealed that TCS is popular not because of its compensation but its principal of proper harnessing the existing human potential within an organization.To decide which type of compensation is best to adopt the organization to make an in-depth of the job profile, its own area of business. Just like a manger should be paid as per his competencies like team building, leadership qualities on the other hand a software developer should be awarded as per the hours of work he puts in, the skills he posses etc. The idea behind designing all pay packages should be paying as per ones performance, skills, and competencies as well as motivating them to improve in the near future.TCS uses EVA model for their compensation process. Economic value added (EVA) is a basis for measuring performance and bonus, and is measured at the enterprise and department levels. The EVA system calculates profits after considering all costs, including that of capital. If the revenues are in excess of the costs, including operating expenses, costs of developing and investing in the people, products and business, then value has been created.

7. RENTATIONAmong the domestic IT companies, TCS has the lowest employee turnover rate. The attrition level at TCS as on September 30, 2004 was 7. 9 per cent compared to the industry average of 15 per cent. Employees stay with the company not for the size of the pay packet alone. There are several other factors including job security.The company has a performance improvement plan that takes into account any personal problem the employee may be facing. Companys HR practices have the ability to absorb people, to manage them from sourcing to deployment, and what it means in terms of scalability and scalability is something that the group evolves with respect to its practices.TCS tries to retain its associates through: Career Development Rewards and Recognition Associate friendly HR policies Performance Based Incentives

Career DevelopmentTCS believes that career and personal development of all associates are vital for organisational success and initiates activities to encourage associates to participate wholeheartedly in the same. Personal Development Planning forms a central part of their annual appraisal and objective setting process. Personal Development is also encouraged through on-line e-learning initiatives that help develop a wide variety of skills, including languages, cultures, sciences, business, technical and the arts subjects.Associates aspiring for higher roles undergo assessment of current capabilities in order to identify the competency gap to reach the aspired role. The gap in competency is addressed with structured training and orientation.Reward and RecognitionTCS encourages individual teams to have customised recognition mechanisms and then consolidate the same as a best practice. Towards this effect, some units have instituted the SMILE and Dolphin recognition mechanisms. Associate Friendly HR PoliciesTCS consistently rolls out policies and practices to enable a better work-life balance for associates. Transport facilities Super Seva A facility whereby associates are provided with services at their workplace. For example payment of utility bills, transport arrangements for personal reasons etc. Cafeteria and gymnasium facilitiesPerformance Based IncentiveIn TCS, compensation is split into two components, Fixed (linked to inflation and other factors) and Variable (linked to individual performance). All the employees are aware of the organizational goals and objectives. The methods used for evaluating employees performance are fair enough and easy to understand. Recognising TCS associates for their hard work, providing for their health and the well being of their family members, opening revenues of growth and career development and easing the balance between work and personal life are all part of TCSs associate centred environment.

8. Leave policy 3 national holidays applicable for all 7 holidays region wise 16 days earned leave 7 days casual leave 10 sick leavesDisciplinary action against habitual absenteeism They council the employee and ask about his reason of absenteeism Advisory letter is given Warning letter is given Asks for resignation and if employee is not willing, then he is terminated

FINDINGS1. HRM Challenges in the TATA CONSULTANCY SERVICES For any organization the HR has main challenge and that is to satisfy the employees and motivate them to continuously learn and make them reliable for the employer and make them consistent. HR ofTCS has faced biggest challenge to make possibly feel to employee that there is an instrumentality between organization and the employees growth rate.These challenges include workforce planning and skill training, managing accommodation and shift work, managing safety, managing contractors and achieving work-life balance. The outline of these challenges below reflects what were said by the interviewees and those perceptions indicated by the respondents in the survey Workforce planning & skill trainingIndubitably, all participants in the survey mentioned the skill shortage in the TCS company followed by the difficulty to recruit and retain staff as the main HR challenge for firms. Most firms struggled to properly plan their skill requirements for increasing production and further expansion in the region. The skills required for the company include not only trade skills, but professional skills for engineers, accountants, business and community development skills. It requires a proper workforce planning and skill development strategy to meet the industrys short and long term demands. The survey results indicate that none of the company were able to sufficiently project their workforce and skill needs, as also commented by a HR manager:if we were able to plan properly, we would have put together HR planning strategies. In India, and pretty well in many parts of the industry, there is no tool that can take the factors such as retirement, people leaving the industry, attrition per se into consideration. So when you want to expand, how many people are required? How many skills are required? How do we project? That is a big, big issue, a big challenge for usSome mining companies have commenced working with universities and other skills training centres to prepare their workforce. However, skill development and more importantly gaining grounded work experience is time-dependent and results in a lag to accommodate the industry growth. One manager said:Really it is our fault because we have not been training people. We have started apprentice programs again for the past few years, but it is a bit too late. When the industry was in doldrums, we were not training enough people at all. In fact, we were limiting our training to existing employees, that is why we have to train them now, because it takes 4 years for them to come throughAt this stage, available technical skills and capabilities are not sufficient to meet requirements in the IT industry. That is the key reason for severe skill shortage in the Mumbai region, which also impacts on the other areas of business operation. Being able to attract and retain skilled labour was agreed by most respondents as an important attribute to enhance their firm performance, as indicated in Figure 1.Figure 1: has your ability to recruit & retain skilled labour contributed to your company performance?

QUESTIONERIESQ1. Could you please rate statements about your organisations general performance (measured by profit and productivity) this year (2006) using the following respond option?StatementsStronglyAgreeAgreeMildly agreeMildly DisagreeDisagree

1. Overall, my organisations performance is above the industry average

2. Our profits are largely generated from outsourcing

3. Our profits are largely generated from cutting-down some unnecessary labor

4. Our profits are largely generated from the use of new technology

5. Our profits are largely generated from the quality of our employees

6. Profits are largely generated from the strong commitment of our employees to high performance

7. Flexible staffing, via use of part-timer and casual employees helped enhance our overall productivity

8. Productivity has been increased by more capital inputs

9. Government support, ie. training programs, tax incentive, has helped enhance our overall productivity, profits and performance

10. Administrative staff efficiency has contributed to better performance

11. Ability to recruit skilled employees has contributed to better performance

Q2. Please indicate the approximate percentage of staffing in each category among the total workforce (employees and contractors) in your organisation.Employee category (%)50%

Full time employee

Part time employee

Casual employee

Does your organisation use contractors? yes noQ3. Relative to your competitors, where does your organisation stand in term of?In term ofWell below averageBelow averageAverageAbove averageWell above average

Technology

Competitiveness

Quality

Meeting customer needs

Safety

Overall employee turnover rate

Administrative efficiency

Overall innovative capabilities

Overall operational capabilities

Flexibility

Recruitment process

Q4. Do you have an HR department in charge of all personnel-related matters? Yes No To some extentQ5. Does the HR department or any HR manager/officer get involve in strategic planning? Yes No To some extantQ6. What kind of strategy has been adopted by your organisation? Please tick one or more than are applicable to your organisation and rate the level of intensity you have focused on the selected strategy (ies) (1being least intensive, 5 being most intensive): Innovation strategy(eg. Emphasis on research & development)12345

Quality improvement strategy12345

Cost reduction strategy1 2345

Other, please specify __________________________________________________

Q8. On the scale of 1-5, 1 being less practised and 5 being mostly practised, could you please indicate the appropriate scale for your organisation in responding to the following statements in regard to the human resourse (HR) strategies and process?Statement scale12345

1. Frequently review HR policies and procedures

2. Change HR policies according to business needs

3. Use contractors, shiftwork, part-time and casual staff in support4. of achieving given organisational business strategy

5. Design and develop HR strategies to attract and retain quality and competent employees

6. Use personality tests/types indicators to recruit and select suitable employees

7. Offer above-market pay rates to attract quality and skilled labour

8. Offer bonus/share etc. besides salary package, to attract and retain quality employees

9. Offer on-going leadership and management training to retain managerial teams

10. Offer career development programs to employees who are willing to stay

11. Offer career development programs to employees who are willing to stay

12. Use external sources to conduct performance evaluation

13. Use external sources to recruit and select suitable employees

14. Use external sources to run education and development

15. Adopt a long-term, group-based performance appraisal

16. Encourage and provide support (ie. either in $ or time) for 17. employees taking self-education and developmental programs

18. Offer better than average reward scheme for contracted & shift Employees

19. Offer better than average reward scheme for contracted & shift Employees

20. Contractors receive more pay but less development opportunity

21. Use flexible work design to attract & retain staff

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