Tata Consultancy Services

Abhinav P (06/49) Amit D (32/49)

Amol K (37/49)
Ankita Z (54/49)

TCS: An organizational Outlook

Abhishek J (08/49)

Abhishek M (10/49)
Ajit S. V (35/49)

12/11/12

Group10

Section A

PGP 2014

INTRODUCTION:
Over the time TCS (Tata Consultancy Services) since its inception in 1968 has proven its credential as a SMART organization in comparison to the other industries in the Indian and World Economic arena. The intention of this article is to study how TCS has created a culture of change built into it structure which has facilitated the process to support its way of operation and put it always ahead of time. A strong leadership in place and vision wellarticulated and propagated to the grass root level has enabled this great organization to show its flexibility in adopting the best practices and made the structure more dynamic than being static. Dynamism means turbulence and turbulence means more energy and as per natures philosophy Every matter tries to be at its lowest energy state but for TCS this is an exception. Controlled turbulence and Un-controlled turbulence are diametrically opposite; one stimulates all positive stuffs and the other enables the destruction process; the best example could be Water turbulence; when controlled creates electrical energy and uncontrolled creates flood situations. Adaptability of Smart organization theory has made TCS to achieve controlled turbulent organization structure which has enabled all the positive facets of organizational growth in TCS.

In his book -The TCS story - Mr. Ramadorai takes readers through the whole journey of how TCS built itself during 1968-1996 periods and changed its guard post 1996. Mr. Ramadorai retired from TCS as chief executive in 2009. CEO Kohli who worked till 1996 was Autocratic in nature while CEO Ramadorai focused on team inclusion policy.

1968-96 Building TCS Background

India was technologically backward in 1960s. J.R.D. tata decided to come up with an Inhouse data processing unit and TCS was formed. TCS depended on various organizations under TATA group for work, but except Tata electric, all tata companies preferred not to outsource this work to TCS. This situation encouraged TCS to look for other customers. With IBM machines, experts MITians like Ashok Malhotra and Nitin Patel and with a office in Nirmal Building at Nariman Point of Mumbai, TCS started attracting private customers gradually.

Unique Model
As it was difficult to find private customers, General Manager Kohli shifted its business model from being a data processing company to a management consulting company. Once the client engaged more in business, it automatically got encouraged to take up data processing services of TCS. This model was exactly opposite to the one followed by western management consulting companies which were diversifying into IT services. To help business grow, consistent supply of intellectuals is very important. TCS recruited almost the whole first batch of Masters in Computer Science students from IIT Kanpur in late 1960s.

Kohlis Leadership
Mr. Kohli was made TCS director in 1974 and TCS customer policy changed accordingly. It adopted the culture of under-promising and over-delivering to the clients. TCS had no reference points to follow as it was doing most of the things first time in India. Under Kohlis autocratic leadership, TCS was operated more like a startup. In 1978, to keep the minds

engaged at workplace, TCS, under Mr. Ramadorai, came up with a quiz series based on the format of popular BBC quiz show University Challenge. It became very popular and helped in boosting employee engagement.

License Raj
With Foreign Exchange Regulation Act (FERA) imposed in 1973 by Indira Gandhi government, many western companies lose interest in operating in India. IBM left its india operations in 1978 due to concerns about stringent regulations and protection of intellectual property. Even for TCS, it was difficult to flourish in India. TCS established a distribution agreement with Burroughs, one of the big three main computer makers then. TCS had to give an export commitment of twice the import cost over the next five years. It required TCS to send people overseas to implement changes at client locations. The strategy of doing part of the work in India and then working at client locations on implementation formed the beginning of Indian Outsourcing model.

Developing Nation Attitude

With time TCS team started growing. In 1970s, 90 % of the total cost quoted to the client was hardware costs while software and people costs were 5 % each. Today, hardware costs represent only 5 % of total costs while People and Software costs are 45-50 % each. Tatas developing nation attitude helped TCS to put efforts in reducing hardware costs through finding cheaper domestic alternatives.

Just another Startup

Tata sons and Burroughs formed a joint venture to sell and maintain Burroughs equipments in India. Unfortunately, the joint venture broke up leaving the partners compete with each other in the same market. TCS was very weak compared to Burroughs and the breakup of JV put TCS back to just another startup stage. TCS had to strive hard to establish itself strongly in the challenging scenario. TCS became the first Indian IT company to set up office abroad in New York. As a first resident manager in USA, Mr. Ramadorai made consistent efforts in establishing TCS as brand in USA. The initial big breakthroughs were Institutional Group Information Corporation (IGIC) contract and American express contract.

TCS and Financial Services

The financial services sector was seen as an early adapter of technology. TCS decided to secure some early contract wins in this space in order to gain experience and domain knowledge. It developed an innovative retail banking system for Western Trust and Savings Limited (WTSL), a subsidiary of the Royal Bank of Canada.

Swiss National Bank

Switzerland was the most advanced financial markets in the world at that time. In 1983, TCS undertook an offshore project for Swiss National Bank (SNB). The experience of working with a demanding customer helped the company to shape its corporate culture and establish benchmarks. This project helped TCS to understand the significance of customer focus, emphasis on quality and planning and sticking to deadlines.

Sega Inter Settle (SEGA)

In 1989, TCS created a real time securities settlement system, a second generation system involving a mixture of migration work and new software development. The core of the proposal was the repository or storage system for the project, which helped the company to grab the game changing opportunity. The project helped TCS establish as a world-class systems integrator in the financial services industry.

National Stock Exchange (NSE)

The Harshad Mehta Scam in 1990s revealed the lacunae in the trading system and highlighted the need to introduce international standards into the Indian stock market trading system. The project with NSE was the first system integration project using a third party solution for stock trading. It was a benchmark in the performance engineering domain and learning about mission critical issues and complex fault tolerant systems.

National Securities and Depositories Limited (NSDL)

TCS helped the settlement of trades by facilitating the dematerialization of securities from a paper-based system to digital form. It offered a solution based on the SEGA mainframe migrated to an open system. The project was the fastest settlement of a depository in the world. TCS also implemented a project for the Pensions Regulatory Authority, known as the Pensions Project. This helped in building the TCS brand and the creation of vital infrastructure for the country in addition to the value and profitability of the project.

Standard Chartered Bank

TCS developed an off-the-shelf custody system for Standard Chartered Bank in Singapore. This was a breakthrough project to foray into the banking arena. In 1995, TCS extended its product portfolio, leveraging the knowledge base of the project initiative to create a regional securities processing platform. The NCS programme was realised with Standard Chartered as the partner bank and first taker of the solution. The Indian financial market had provided TCS with ample challenges and opportunities to learn and build in-depth expertise through greenfield projects in technology and applications perspectives, and also build up the requisite domain knowledge and expertise through training.

1996-2002
By the mid 1990s, TCS had entered a new phase in its d evelopment and was beginning to expand its reach. The period was marked by a change in the organizational change, with a new senior management team. Each person in the top management was given multiple roles and moved from role to new role and challenge to new challenges on a regular basis. The grounding practiced by the managers helped to infuse confidence to take up new challenges and responsibilities beyond their own sandboxed role in the organization. The top management mentored people in their own unique style which was more critical than complimentary rather than a dialogue and not the collaborative process that is prevalent

today. This facilitated a strong performance management system in the organisation, encouraging self-appraisals or spider web assessments. The organisations culture was characterised by professionalism and mentoring the employees to stick to their priorities, which infused a sense of commitment in the people. The top management team was spread across geographical domains, and carried the ultimate responsibility for all decisions. However, there was an emphasis on recognising individual talents and capabilities of people, and talking decisions by collectively analysing the pros and cons. The anecdotal approach fostered strong management skills, active inclusion and helped the management to buy into a process. People were encouraged to express their opinions and provide alternate point of views, and gain a wide exposure to different people and variety of situations. Transparent internal policies were formulated without any exceptions, in order to transform the organizational culture. By the beginning of the 20 th century, succession planning became the need of the hour as the top management built the organization strength, fulfil its strategic intent and become role models for organizational values.

Transforming the future

The TCS business model, since its inception was based on the premise that India was not short of talent and that if harnessed and steered in the right direction, this talent could be leveraged effectively. A lot of emphasis was given on developing a people-centric ecosystem by forging relationships with academia- especially the IITs and premier engineering colleges, which provided most of the early recruits. AN academic interface programme was created, bringing together the heads of the premier institutions. Over time, TCS adopted a structured organization with a recruitment process based on aptitude tests and analytical and logical ability tests. There was a lot of emphasis on performance management and comprehensive self-appraisal system. However, there was a clear separation between financial rewards and performance assessments.

Maitree
Maitree was an initiative taken by TCS to engage its rapidly growing workforce by bringing them together by way of interest groups, cultural and sports festivals. It became a lively and colourful repository of vital information and a vehicle for informal exchanges between associates.

Ignite
This was an initiative taken to promote the talent in the organisation by creating awareness about the IT industry and growth in this sector. It used a high-tech, high-touch approach which was reflected in a specially designed facility that offered flexibility for individual and group activity, face-to-face interactions and distance learning

The Innovation Journey Setting up TRDDC

J.R.D. Tata set up indias first software research centre (TRDDC) in Pune. TRDDC focused not only on research and development but also on design. The model was called RDD. Under

Mr. Subbarao as a director, TRDDC focused on carrying on applied research that would directly impact industry. The importance of TRDDC in the growth of TCS could be measured through the number of projects TRDDC added value in TCS. Earlier people from TSC were reluctant to accept involvement of TRDDC in their projects but gradually It was accepted and became an important part. TCS developed research partnerships with Stanford, Georgia tech and several UK universities to nurture applied research. People were encouraged to take higher degrees.

Strategy and Innovation

Mr. Ramadorai introduced collegiate team atmosphere in TSC during his tenure as CEO. He introduced new roles like chief Technology officer. Strategy huddle group was formed with the mantra Learn Act Deploy. TSC focused on achieving innovation as the second stage of Research, Design and Development (RDD). TCS formally launched the Coinnovation Network (COIN) in 2007. It included academia, venture capitalists etc. Culture of Innovation is part of the organizational culture of TCS.

The Globalization of TCS

Generally, companies begin their businesses in home countries and gradually expand to other nations; however, the scenario was different for TCS. Absence of domestic market made TSC expand its business globally since the beginning. Recruiting high caliber professionals helped TCS gain customers confidence and more and more business. TCSs partnership with GE to establish Offshore Development Centre at Seepz, Mumbai helped TCS to establish its credentials and confidence in going global process. TCS could expand its business not only in USA but also in Europe.

Creation of One TCS

TCS was not very organized when Ramadorai became CEO. It was vague and bit of mess in its structure. It was ironical as when TCS helping its client in integrating, it itself was disintegrated. TCS came up with Ultimatix project a project worth $40 million. It digitized all the processes and created a system that was slick, real time and scalable. Ultimatix an acronym for Ultimate System was a state-of-the-art of system then and it brought together on one platform, all the employees, stakeholders, projects, clients etc.

Inorganic

Growth

through

Acquisitions

TCS established its inorganic growth through acquisitions mainly in the last decade. The prominent one was 51 % stake in CMC, which had strong research based organization culture. It was followed by Chile based company Comicrom, Australian company Financial Network Services, Teknosoft in Switzerland and tata infotech from Tata sons. All these acquisitions had long term goals and implications. To improve employee morale and to change the position of option to aspiration in customers minds, TSC came up with an aggressive branding strategy apart from acquisitions in Ramadorais era. ORGANIZATIONAL STRUCTURE 1. Philosophy

TCS has always believed in the philosophy of introducing structured changes periodically and not just when the need arose. In their own words, they dont believe in waiting till something has broken down to fix it. Rather, the focus has always been on keeping yourself up to date with the future goals and the vision in mind. The result of this thinking has been the periodic re-casting they have done with time, firstly implemented in 1996, and followed subsequently by 1999, 2003, 2008 and finally in 2012. The endeavour is to create an organization for the future and the key themes that have been addressed are future relevance, simplicity in design and understanding, agility of response, proactive nature in comprehending market and customer requirements, offering opportunities for exceptional growth, excellence of delivery mechanisms, and end-to-end ownership in terms of leadership building and the creation and retaining of talent. The idea is to craft a totally independent industry solution unit, whether in banking or insurance or financial services, that are clearly customer focused. These units are responsible for their customers, they own the intellectual property they generate and its delivery, they own the balance sheet with regard to profitability, and they have their own HR and finance people. These units are seen as autonomous, accountable to themselves first and foremost, handling about 5,000 people each. In that way, the things become much more manageable in every respect. 2. Mechanism and Implementation There has been a conscious effort in creation of units which are devoted to emerging markets, whether in Russia, the Middle East or Latin America, to the development of future-oriented initiatives and models in the domain of small and medium businesses, to pursuing new businesses in mature markets such as the United States and Britain, and lastly to developing intellectual assets in the financial services sphere that can later be licensed. There has also been an effort to provide more freedom and autonomy to these different units and the people who are heading them. These leaders have been identified, more clearly than ever before, as the brand builders- the true ambassadors of what TCS stands for. A shared services division has also been started that can be accessed and used by the entire organization- which would be working in areas such as quality, payroll and support functions. At the corporate level, overseeing the organization and managing its progress will become easier thanks to the introduction of digitization. In this way, this new structure provides a lot more empowerment, a lot more accountability and ownership, a lot more leadership opportunities to the company as well its employees in facing future challenges and also continuing on its growth, guided and aided by the companys vision and values. The appointment of the new CEO, Mr. N Chandrasekaran, has also seen the implementation of several important organizational changes, such as creation of a small group of leaders to oversee the company's various verticals. These leaders will report directly to him and will take charge of businesses with sizes ranging from few hundred millions of dollars to over a billion. The new layer is aimed at freeing up the CEO's time for strategy issues and customer calls, people with knowledge of the development said. The new structure will also provide more management bandwidth and allow leaders to engage with customers closely. More importantly, the leadership layer also offers a new career path into roles with more responsibility and a larger P&L for TCS' existing pool of

leaders, which did not exist prior to the reorganisation, said a person aware of the changes. Bringing 2-3 verticals under one person will help make people talk across verticals, rather than function in silos- another important advantage. ORGANIZATIONAL DIVERSITY 1. Nationality Obviously, which all such grand plans and policies to be implemented and followed, the nature and diversity of the organization needs to be carefully analysed and taken into account. With an organization bosting of 250,000 employees of 113 different nationalities in 42 countries, the task becomes even more challenging. According to Dr. Ritu Anand, who, besides looking after global talent management also handles the diversity and inclusion portfolio at TCS, if anything is challenging, then this is it. Approximately 8 percent of TCSers are non-Indian nationals Americans, British, Europeans, Latin Americans, Chinese citizens and others. With the company expanding its global footprint, TCS has started hiring experts locally in most of the countries it operates. While the bulk of employees continue to be Indians, TCS expects the percentage of nonIndians to increase steadily over the years. A step in that direction is hiring from campuses globally. Though it is acknowledged as challenging to embrace the cultural diversity in non English speaking countries due to issues of language, laws and regulations and understanding the local culture, TCS has ensured that there are strategy systems in place to ensure a good mix of nationalities at all levels and keeping them on the same plane as far as organizational effectiveness goes. One of such initiatives was Culture meter. To ensure greater integration among its culturally-diverse employee pool, TCS launched Culture Meter in 2008 on its intranet. We profile different countries in a lively way, says Dr Anand, describing the initiative. Culture Meter talks about the country, its culture, dos and donts, and TCSs business information about that country. We have home page corners on our intranet where senior leaders write about their experiences in different countries. Apart from this, another scheme that has been in place is Maitree, that was launched about 10 years ago. Maitree (friendship), is a global platform for employees and their family members to join the caring and sharing culture of TCS. Maitree brings TCsers and their families together in shared interests through various activities such as dance, music, photography, books, hobby clubs, nature-walks, and trekking. There are calendar events across geographies in TCS. For example, in a particular month, Family Day is celebrated across all locations. Being a global organisation, it is also important that employees relate to international celebrations. So TCS has celebrations that are specific to the culture of the geography such as Thanksgiving, Chinese New Year, and others. TCS also has a Foreign Language Initiatives (FLI) group which focuses on cultural integration and language training. Some examples are cultural workshops, English-language teaching program for its non-English-speaking employees, and program for expatriates to learn the local languages. 2. Gender

There is another side to diversity which has always been a sensitive topic, namely gender diversity. With regards to this, TCS has made it clear in its vision that it not only encourages diversity only in terms of nationality but also on gender. It has established a platform called Diversity and Womens Network (DAWN), which sensitizes emplo yees and makes them culturally aware. Its intent is to sharpen focus and heighten sensitivity on the diversity mandate across the various geographies and business units and it brings all activities under one banner. Guided by an advisory council, with representatives from various operating units, it serves as a collaborative platform for debate, dialogue and direction. Research indicates that gender diversity has a direct impact on performance of organizations. Women are also significant customers, investors and employees in the community today. Therefore, there are many ways in which this group can impact and influence business. Over the last five years, TCS has seen the number of women employees increase from 25 percent to 31 percent. Nearly 38 percent of the employees at the junior level are women. However, with many of them leaving, due to personal reasons, by the time they reach midlevel management positions, women only constitute 11 percent of the strength at senior management levels. This figure stills remains a benchmark for the industry in India according to Dr Anand. The company also has a successful reorientation program for women who return to their jobs after a break. We appoint a mentor or an advisor for every woman to quickly acclimatize her to the new environment after a long break, says Dr Anand, adding that TCS also has a leadership development program called 'TCS Forward' primarily for women associates. There have been some recent developments as far as modification of DAWN has been concerned, with some important additions having taken place. To empower talented women and help them realize their potential, an executive education program was launched this year. The aim is to help them become more self-aware, develop a personal brand and get a better insight into the larger organizational context. This initiative attempts to help TCS build a more sustainable leadership pipeline and retain and engage with extraordinary women talent. ORGAINIZATIONAL EFFECTIVENESS 1. International Practices There have been several initiatives taken to improve upon the organizational effectiveness in the recent years, and a lot of them have paid off rich dividends as far as the company growth and meeting its goals have been concerned. For example, just very recently, Tata Consultancy Services (TCS) was rated the Netherlands top information and communications technology employer of the year. The award underlined the high quality of TCS human resource practices, focusing on personal growth and development of its employees worldwide. Strong employee involvement in social initiatives such as the TCS Amsterdam Marathon, which raised funds to fight cancer, reinforces the sense of belonging to a socially responsible organisation. TCS remains committed to investing in a work culture built on social values, continuous learning, trust, empowerment and team work to bring out the best in their people, allowing them the opportunity to realize their potential, according to D.P. Nambiar, the Director and Head, Human Resources of TCS Europe. 2. PROPEL

In other related recent initiative, the company introduced an HR initiative titled PROPEL - a global associate engagement program initiated by Tao Consultants. These are individual employee meetings across functions and grades. PROPEL was introduced as a revolutionary intervention with the dual objectives of facilitating the exchange of ideas and helping in immediate problem solving, while also encouraging bonding and self-development among and within teams. As the organization and its relationships grew, it brought its own challenges, whereas change remained a constant. PROPEL was introduced as a platform and a tool to help bring about this change, in consonance with the TCS belief of Let us make it a joy for all our stakeholders. In this program, associates get to talk directly one-on-one with the senior management. In essence, the aim of PEEP is to provide employees a platform to voice their problems. As for reporting heads, its a platform to get to know their team members as well. The employees can talk one-on-one with the senior management at TCS. Associates can have their own sessions with the management and get to know the managements perspective on things. PROPEL was introduced as a revolutionary intervention with the dual objectives of facilitating the exchange of ideas and helping in immediate problem solving, while also encouraging bonding and self-development among and within teams. As the organization and its relationships grew, it brought its own challenges, whereas change remained a constant. PROPEL was introduced as a platform and a tool to help bring about this change, in consonance with the TCS belief of Let us make it a joy for all our stakeholders. PROPEL has helped the organization build a culture of collaboration, creativity and also networks of relationships through its two modes: Confluences: Listening to the voice of the employee in a team scenario, by creating a platform for open sharing of thoughts on a relevant theme. This is achieved through a balance of fun, introspection and interaction, while evoking commitment to selfdevelopment.

Camps: Platform for problem solving, focus on the Quality, Cost and Delivery measures of throughput resulting in transfer and adoption of best practices within and amongst relationships in the organization. 3. Value Cards Value card for the relationship was a fallout of the analysis of tensions existing in the four dimensions as represented by Voice of Customer, Strategy, Employee and Technology. A tool called Value Card was used to analyze the problems faced by the relationship in relation to these tensions and to arrive at workable solutions to the identified problems, within designated timeframes. The Value Card helped to effectively capture and track this through the following steps: The situation summary was charted out Improvement goals, action plans and owners of each plan were identified Success measures were identified against the dimensions of Valuing, Strategizing, Improving, for each actionable, along with timeframe for closure

Impact was analyzed in terms of short term and long-term actions. Value Card deployment has substantially helped the relationship to retain its Account of Choice status. 4. Darpan With aggressive expansion and dispersion of ever-growing associate strength in the relationship, communication or the lack of it, had emerged as one of the biggest bottlenecks in employee motivation and managerial decision-making. In this context, an associate satisfaction survey at relationship level christened Darpan, was initiated, with the objective to Reflect and Improve at the relationship level through a better understanding of the explicit and implicit expectations of associates. A Questionnaire was used to collect the preliminary data, as a structured mechanism to capture associate feedback across 5 categories: Career & Job, Communication, Culture & Pride, Leadership and Supervisor. The Survey comprised 20 questions related to leadership, communication, culture and pride, career, supervisor, work environment, competency building, work-life balance etc. Interestingly, the maximum number of questions revolved around the single most important entity - the Supervisor. This was in consonance with several studies which reveal this as the pivotal factor to associate satisfaction and aspiration. 5. Other Initiatives There have been some other initiatives taken as well to improve upon the organizational effectiveness, which has been mentioned below:

Initiatives deployed Account Excellence Plan

Summary Initiative on the lines of TBEM. Scoring is done under each of the 7 categories and the score shared across the relationship, to identify gaps and action on these. This is a Reward and Recognition initiative within the relationship. Nakshatra is awarded to encourage star performers for each month within each Business Unit of the relationship. The unique feature of this initiative is that even team members can nominate their peers. Is an interaction / mentorship initiative with the lead of the relationship, wherein a certain timeframe is decided upon, during which any employee can walk in to meet the lead and discuss out any problems/ suggestions for improvement in the relationship. This was initiated to bring in a spirit of team camaraderie and to act as a stress buster. There are champions within each unit who drive these fun activities in the relationship.

Nakshaktra Award

In Touch

Fun@ Relationship level

Toast Talk

Master

Club/Lets The main objective is to enhance personality/communication ability of associates in the relationship and to help them gain confidence through sessions by certified facilitators.

Open House/ Town halls

The objective was to encourage strategic communication, and to discuss the larger vision and achievements at relationship level with all employees across the Business Units. This also serves as a platform for recognizing good performers and celebrating milestone achievements.

Associate Satisfaction To gain an insight into the strengths and weaknesses in the Survey (Darpan) relationship and identify areas for improvement and next steps through PROPEL camps Walk the talk A senior associate within the relationship takes any new joinee to the relationship, on a tour of the facility. The aim of this initiative is to make the new entrant feel valued. This is followed by a simple quiz to check the effectiveness of this initiative.

SMART ORGANIZATION THEORY:

Smart organization theory explains how to build, staff, and operate smart organizations. There are 19 theories in this area which explains the governance and decision making process. They are broadly classified into People theories Organizational-process theories Culture formation theories

People Theories:
Theories which postulate greater organizational intelligence as a function of people in the organization and how they relate to each other and include: (1) Creative individual theory - the theory there are a small number of innovative individuals who can make and stimulate major policy or product breakthroughs and that the problem is to find and hire them (Chandler, 1962, Chap. 6); (2) Interpersonal chemistry theory the hypothesis that organizational efficiency and/or effectiveness come because specific people just mesh and work well together as a team (McGregor, 1966); (3) New blood theory the idea that resources are needed to continually hire skilled new people who bring fresh ideas or first-hand knowledge of what other people are doing. (4) Role constellation theories the argument that a mix of skills and age, that is, good administrators, good mid-career researchers, good support staff, and bold young researchers,

are all needed for unsolved and heretofore unsolvable problems, along with gray heads (experience) to provide a sense of memory, perspective, and advice. (5) Peer competition theories - contrary to the strict interpretation of Taylorism, designing redundant work units with peer competition may increase motivation and reduce error (Landau, 1969/1978). (6) Impact opportunity theory - the hypothesis that the best new people gravitate to important problems where the action is, so being concerned with such problems should lead organization to attracting people who will help. (7) Leadership theory - the belief that when top leadership is no longer satisfied with the status quo and promotes search for innovation, it is more likely to occur (March & Simon, 1958, Zaltman, Duncan, & Holbek, 1973 pp. 153-186).

Organizational-Process Theories:
Theories which relate intra-organizational functioning to the policy or product innovation process and include: (8) Critical mass theory - organizations need enough people working together on a problem to be intellectually self stimulating and self sustaining (the number is unclear) (H. Levinson, 1972). (9) Heterodoxy theory - believes that a diversity of viewpoints, backgrounds, and skills in research increases creativity and enhances the probability of organizational success. (10) Environmental Competition theory - the hypothesis that learning occurs more rapidly in highly competitive fields by changing processes internal to organizations (e.g., Niskanen, 1979). (11) Communication flow theories - a diverse body of literature that proposes innovation rates are increased by particular patterns of communication and by networks of institutions and intra-institutional structures that create and support them. (12) Specialized group process technology theories - the alleged advantage to those groups which use brainstorming, Delphi, synectics, etc. (e.g., Stein, 1974, Vol. 2). (13) Administrative structure theories - the alleged advantage of standard organizational units to handle R & D responsibilities. (14) Rational technology and analytic decision theories - organizations which commit heavily to advanced rational analyses (systems modeling, operations research, PPB, evaluation studies, etc.) are said to learn more rapidly; (15) Money theory - the more money and other resources the better.

Culture Formation Theories:

These theories can be seen as extending what Barnard (1938) originally discussed as the integration of formal and informal organizational behaviors (and relevant environmental characteristics) in the molding of a particular set of bureaucratic routines, values, understandings, identities, and worldviews (Kaufman, 1960; Packenham, 1973) to create and

sustain organizational cultures and subcultures (Fine & Kleinman, 1979). The study of organizational culture and norms is not well developed, but it is perhaps crucial to understanding bureaucratic learning if the findings of Argyris (1967), Argyris and Schon (1978), and the report of Coleman, Campbell, Hobson, McPortland, Mood, Weinfeld, & York (1966) generalize across federal agencies. Culture theories include (16) Optimum norm theory - the belief that certain organizations create cultures and climates especially conducive to research; these are typically thought (in America) to be open, egalitarian, problem-oriented rather than status or career centered, and achievement cultures rather than ascriptive cultures. (17) Newcomer theory - the hypothesis that major innovations come from new, fresh, typically small firms. (18) Technology theory - the view that technology creates culture, for example, that new technologies drive R & D processes and change organizations in their wake (see below , pp. 123-124) and create professionalism which increases innovation. (19) Synergistic harmony theories - the extent to which organizational design practices align individual risks and incentives with those of the organization (Argyris & Schon, 197 8; Cherns, 1977; Mohr, 1973; Wildavsky, 1978).

TCS LEADERSHIP TEAMS THOUGHT PROCESS:

The modular structure will simplify our interface with customers and drive agility in all areas of operations. The structure will also allow us to adapt to specific customer and market requirements while ensuring a uniform global service delivery, In the new operating model, all necessary delivery, domain and technology expertise and resources will be embedded in these units to promote greater collaboration with the customer. All operating units will be supported by a common group of organizational infrastructure units, such as the Technology Excellence, Process Excellence, Resource Management, and Shared Services groups. The new structure will also support greater focus for strategic initiatives that will help drive nonlinear revenue growth. In addition to TCS Financial Solutions, and the Small & Medium Business Solutions, the company has constituted a new unit for Platform BPO Solutions. These three Strategic Growth Businesses will operate as independent units that will leverage TCS sales, delivery and customer relationships as required. Tata Consultancy Services (TCS) will be undergoing a real structural transformation by changing its business mix that will not happen in a day but take a few years. For this TCS has identified five main growth areas products, BPO, infrastructure, engineering services and consulting. We want to scale up each one of these - N. Chandrasekaran, Executive vice president and global head of sales and operations

- N. Chandrasekaran, COO and Executive Director

Tata Consultancy Services, the leading IT services, business solutions and outsourcing organization has announced plans to organize its global operations into integrated, customer-centric units to enhance customer focus drive operational agility and address new growth opportunities in the market. The new global operating model will provide customers with a single view of TCS encompassing project delivery and relationship management and enable a sharper focus on the customer. This structure will also provide more opportunities for leadership growth at all levels in the organization and encourage the next generation of leaders by empowering group heads to run their unit with growth and profit responsibilities. As we scale up over 100,000 employees, TCS needs a structure that allows us to build a nimble organization to capture new growth opportunities, said This will create a framework that is scalable for growth across markets and provide focus on strategic initiatives like asset leveraged solutions, platform-based BPO as well other new initiatives. S. Ramadorai, CEO and MD. (Thought process in 2007-08)

Many years ago, there was an industrial revolution. We (India) missed it due to (factors over) which we had no control. Today, there is a new revolution - a revolution in information technology, which requires neither mechanical bias nor mechanical temperament. Primarily, it requires the capability to think clearly. This we have in abundance. We have an opportunity even to assume leadership. If we miss this opportunity, those who will follow us will not forgive us for our tardiness and negligence." FC Kohli, Ex Deputy Chairman of TCS (Prior to Y2K)

EVOLUTION OF ORGANIZATION STRUCTURE IN TCS:

PRE-2000:
Prior to Year 2000; TCS organization was broadly divided into two major spectrums Computer Consultancy Management Consultancy Out of a total strength of 3500 people in 1995 all the engineering brains were part of Computer Consultancy and their focus was to concentrate on IT delivery. The delivery model was primarily off-shore driven. All the people with management degree as a background constituted Management Consultancy and their primary role was focused sales and marketing, HR and administration. The ratio of these two broad categories was 90:10. Then came the Year-2000 era where the requirement at overseas was on top. TCS as an organization was experimenting with off-shore, onsite model and it was a click. The organization was increasing its person power at a large scale. To address the GLOBAL Y2K issue the factory model was adopted into the software delivery; round the clock working culture was introduced but still the broad division remained the same.

POST-2000:
After the Year-2000 glitches were fixed and issue addressed globally; suddenly there was a sharp decrease in the demand for IT professionals and organizations like TCS who had a strong person power base was finding it difficult to keep their associates occupied with sufficient work. Immediately after 911 attacks on USA; the onsite requirement took a nose dive and TCS faced a major challenge to cope with it. With the thought leadership in place TCS quickly adapted to a different business model; the matrix structure came into existence. The entire human capitals with more than six years of experience were fitted to a particular cell of the following matrix.
BFSI ADM L&D R&D ISIT Support Services RETAIL MANUFACTURING TELECOM MEDIA & ENTERTAINMENT UTILITIES OTHERS

Where, ADM: Application Development and Maintenance L&D: Learning and Development R&D: Research and Development ISIT: Information Technology Infrastructure Services Support Services: Include HR, Administration, Finance, Legal etc. This model of operation allowed TCS to build up functional domain specific knowledge piling up with the expectation to provide edge over the competitors. This era was primarily used by TCS to build up knowledge and create experience and maximum provisioning done for Research and Development TRDDC center at Pune was established; Learning and Development center at Trivendram was given focus to train the incoming engineering students who were inducted into TCS through campus recruitment.

2003-2007:
The world IT business started gaining momentum again on early months of 2003; where overseas customers started outsourcing their IT activities. TCS gained maximum benefit out of this openings because of the strategic move they took post Y2K. The requirement this time was huge and across verticals and TCS was having the bandwidth to support. The human capital of TCS has reached 1, 00, 000 plus. To bring in the customer confidence Global operations started with offices established at different parts of the world and global man power was recruited enabling the social buy-in and better execution of deals. The concept of Near-shoring was introduced; where by development centers were established at locations nearer to the customers and this created a good feeling among the customers. In all the major relationships the mode of operation changed a gear from Customer ~ Vendor to Customer ~ Partner. Towards the later part of year-2007, the changing global economic pressure was felt and thought leadership team at TCS started concentrating on performance driven execution of work and the ground work was being done to go for another major organizational structural

change. During this era the major highlight was merger and acquisition of organizations with TCS there by bringing in more complexities into the TCS organization structure.

POST-2007:
Operationally, TCS is a modular organization comprising solution units focused on various industry verticals to enhance the customer focus. The figure below represents the new TCS organization structure post 2007.

TCS is structured into customer-centric Industry Solutions Units (ISUs) that focus on various industry verticals. ISUs are equipped with the necessary domain and technology expertise to service customers efficiently and seamlessly. These ISUs provide end-to-end services to customers and also cater to the niche/unique business needs of each of the segments while leveraging synergies that appear across them. TCS leverages pertinent subject matter expertise from different industry verticals such as BFSI, Retail, Media and Information Services, and so on, where there is a reasonable intersection. Major Markets are business units responsible for the sales process within North America, UK and Europe. TCS supports the unique business needs of India, APAC, and Emerging Markets such as Africa, Middle East Asia, Latin America and Eastern Europe through its New Growth Market units. These units handle both sales and operations functions for these regions. Strategic Growth Businesses include o Small and Medium Business Solutions that provides IT as a Service solutions for small and medium businesses. o TCS platform-based BPO solution provides platform-based BPO services for its customers.

o TCS Financial Solutions offers a set of product-based solutions. Engineering and Industrial Services (EIS), Information Technology Infrastructure Services (ISIT), and Business Process Outsourcing Services (BPO), and Global Consulting Practice services are delivered by horizontal delivery groups. Organizational Infrastructure includes corporate groups such as: o Process Excellence Group (PEG): Responsible for consolidating processes and best practices and disseminating them to various operating units towards providing a unique and consistent customer experience. This includes Knowledge Management, Integrated Quality Management System, Business Excellence and Security. o Technology Excellence Group (TEG): Responsible for lending organizational focus to the technology, solutions, and tools. TCS direction in this area is to maintain our leadership position by continuously improving solution delivery capability through architectural excellence, design rigor, delivery discipline, and by championing technology applicability. The group is responsible for the technology tracking, internalization, competency building, and asset creation. o Shared Service Group: Responsible for planning and provisioning technology and operational infrastructure for TCS. o Resource Management Group: Responsible for the availability, readiness, and optimal deployment of resources for all operating units. These operating units are supplemented by Corporate Finance, Corporate Marketing, Global Human Resources, Corporate Affairs, Research and Development and Corporate Technology Office, Partner Alliances, and Legal departments.

SMART THEORY STRUCTURE:

SMART THEORY
Creative individual theory

AND

EVOLVING

TCS

ORGANIZATION

TCS ADAPTABILITY TCS was always since the day of inception carrying a good number of individuals who were great leaders who guided the organization to formulate appropriate policies for the benefit of the organization TCS started as a project based organization and slowly matured and in the process everybody worked in TEAMS. Team spirit has always contributed to the organizational efficiency The organization has grown from 3500 in 1995 to 140000 in 2009. The growth is phenomenal and it

Interpersonal chemistry theory

New blood theory

was only made possible by inducting fresh engineers/ management students into the main stream and the process is continuous.
Role constellation theories

In TCS the average age could be low but the mixture is well formulated; with senior people taking the leadership role and mid-career persons supporting the delivery and fresh blood executing the defined task. Pressure from peer competition is always there in the TCS work structure. Attaching performance parameter to it though creates pressure but definitely enable motivation to make everybody So far TCS is always an organization where your work is appreciated and that is the motivating factor of younger generation to join this organization and grow. The leadership team is TCS is always dynamic and looks for opportunities of research and development. Presence of excellence centers and logical forums in TCS provide the bandwidth to allow a group of people to work on specific issues to arrive at solution Different viewpoints are always encouraged to be expressed and the team structure is global; there are situations where people from different continents form the TEAM and deliver a product which might be used at a completely different continent.

Peer competition theories

Impact opportunity theory

Leadership theory

Critical mass theory

Heterodoxy theory

Environmental theory

Competition Presence of strong and closed internal processes

to enable the rapid learning process. One single portal www.ultimatix.net manages 140000 associates from recruitment to exit TCS believes in open communication and there are formal and informal channels of communication established within the organization. A special corporate communication TEAM drives the communication of TCS with external world.

Communication flow theories

Specialized

group

process Availability of technology to enable the thought

technology theories Administrative structure theories

process in decision making. Dedicated Research and Development Team and a center dedicated for Research at Pune (TRDDC), India.

Rational technology and analytic TCS has become a learning organization and decision theories probably because of this it has changed its

organization structure from time to time; better adaptability with environmental changes.
Money theory

Financially a strong company and become public in 2004-2005. None of the project execution stopped on the account of there being no money to spend. Highly research oriented with delivery flavor attached to it. So this is a unique place where research comes with deadline. Not Applicable Technology is a part of TCS environment and every TCSer contribute to make the technology more stronger everyday.. Any system designed for TCS has the synergistic approach build into it. It matches the incentives with the individual risks in the process.

Optimum norm theory

Newcomer theory Technology theory

Synergistic harmony theories

TCS ORGANIZATION STRUCTURE DEPICTING POSITIONS:

Tata Consultancy Services has organized its global operations into integrated, customercentric units to enhance customer focus, drive operational agility and address new growth opportunities in the market. This global operating model provides customers with a single view of TCS encompassing project delivery and relationship management and enables a sharp focus on the customer. The modular structure simplifies the TCS interface with customers and drives agility in all areas of operations. It also allows TCS to adapt to specific customer and market requirements while ensuring a uniform global service delivery. All necessary delivery, domain and technology expertise and resources are embedded in Independent Operating Units to promote greater collaboration with the customer. The structure also provides opportunities for leadership growth at all levels in the organization, and encourages the next generation of leaders by empowering Group Heads to run their respective units with growth and profit responsibilities. All operating units are supported by a common group of organizational infrastructure units Technology Excellence, Process Excellence, Resource Management, and Shared Services.

The TCS Corporate Organization Chart is depicted below:

CONCLUSION:
Considering the organizational growth process as a dependent function of time; TCS as an organization seems to have adapted the SMART theories of organization and systematically following it since its inception. The thought leadership has been successful in penetrating the Organizations vision and mission statement into the mass. The organization has been through non-linear growth process since last couple of years; and the organization structure has been changed dynamically to meet this non-linear growth process.

REFERENCES:
1. Software Companies (6 November 2008). "Office locations of TCS in India". AbhiSays.com. Retrieved 13 November 2011. 2. "India: Tata Consultancy Services Worldwide". Tcs.com. Retrieved 13 November 2011. 3. "TCS plans Morocco foray with 500-strong unit". Express Online. 12 October 2006. 4. "China Joint Venture with Tata Consultancy Services". China Economic Review. 18 December 2007. 5. "TCS Worldwide: Philippines". Tcs.com. Retrieved 13 November 2011. 6. "TCS Worldwide: United Arab Emirates (UAE)". Tcs.com. Retrieved 13 November 2011. 7. "TCS bets on growing economy of Peru". Times of India. 25 July 2010. 8. "TCS Mastercraft Suite of Products". Tata Consultancy Services. 1 October 2012.

9. "When Outsourcing Loses Human Element". International Herald Tribune. 27 May 2005. 10. "Improving Our World IEEE Annual Report(page 4)". IEEE. 2005. 11. "Tata launches Swach water filters". Deccanherald.com. Retrieved 12 August 2010. 12. "TCS launches its Co-Innovation Network". Financialexpress.com. 18 January 2007. Retrieved 16 July 2010. 13. "Innovation Labs". TCS. Retrieved 16 July 2010. 14. "Jensor released as Open Source". Jensor.sourceforge.net. Retrieved 30 August 2010. 15. "Wanem released as Open Source". Wanem.sourceforge.net. Retrieved 30 August 2010. 16. Totty, Michael (29 September 2008). "The 2008 Technology Innovation Awards - WSJ.com". Online.wsj.com. Retrieved 16 July 2010. 17. "Innovation Labs". TCS. Retrieved 16 July 2010. 18. "Co-Innovation Network". TCS. Retrieved 26 July 2010. 19. "India's top 20 BPO companies Rediff.com Business". Rediff.com. 23 August 2011. Retrieved 13 November 2011. 20. Tripathy, Devidutta (24 August 2011). "India TCS outsourcing chief sees no impact of global crisis". Reuters.