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YEAR: 2014 - 2015



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

Signature of Student



This is to certify that the undersigned have assessed and evaluated the project
This project is original to the best of our knowledge and has been accepted for
Internal Assessment

Internal Examiner External Examiner Head Of The


I 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.


Internal Assessment: Project 40 Marks
Name of student Class Division Roll
First name :
Father name:
Surname :


Topic for the Project:

Marks Awarded Signature
Internal Examiner
(Out Of 10 Marks)

External Examiner
(Out Of 10 Marks)

Viva And Interaction
(Out Of 10 Marks)

TOTAL MARKS (Out of 40)




A 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


The 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 examined
The 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



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 the Forbes World'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



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
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
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 13
position to 10
position in the 10 global IT service
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.


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


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 6
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.


Human 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

Characteristic of HR strategy
HR 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 Oriented
HR 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

2. Future Oriented
HR 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 Advantage
HR 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 Adaptation
HR 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 Development
HR 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.


Human 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:-
Competitive 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 Strategy
The 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.

Human 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.


Companies 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

In 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 Divisions
A 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


Set Financial Expectations and Goals
Using 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 Expectations
For 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

Internal Inputs
Describe 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 Initiatives
Complete 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


Role of HR as envisaged by management
The 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 planning
TCS 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 process
TCS 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
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

TCS changed recruiting strategy
TCS 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 development
Learning 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 Learning
Apart 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
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
Further training (hands-on or classroom) is provided by the respective project teams.


4. Customer Feedback
At 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 Management
Any 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 Continuity
TCS 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
In 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 @
<<client name>>" news bulletin for <<client name>>, internal associates satisfaction survey
for TCS associates within the <<client name>> relationship, <<client name>> 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 Associates
TCS 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 Associates
TCS 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 Requirement
For 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
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

Guaranteeing Satisfaction Individuals Places with a Client
TCS will place its employees as contractors to <<client name>>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
Lastly, in rare cases of poor performance, TCS will replace the candidate at no cost to
<<client name>>.
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 | <<Client name>> 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 <<client name>>. 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 <<client name>>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 Setting
Goal 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 goals
Global 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.


Online tool which is used for learning and development.
ICLAM is used for competency mapping for individual (both behavioural and
Individual roles are defined using this tool.
Balance score card used for employees to get to know about Corporate Goals and
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

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 professionals
For 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 appraisals
For 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 appraisals
These 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

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.

Among 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 Development
TCS 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 Recognition
TCS 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 Policies
TCS consistently rolls out policies and practices to enable a better work-life balance for
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 facilities
Performance Based Incentive
In 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 leaves
Disciplinary 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


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 of TCS 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 training
Indubitably, 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 us
Some 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 through

At 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

agree disagree
Chart Title
ability to recruit skilled labour ability to recruitretain labour

Q1. Could you please rate statements about your organisations general performance
(measured by profit and productivity) this year (2006) using the following respond
Agree Mildly

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

2. Our profits are largely generated from

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

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

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 (%) <5% 6-15% 16-30% 31-50% >50%
Full time employee
Part time employee
Casual employee

Does your organisation use contractors?
Q3. Relative to your competitors, where does your organisation stand in term of?
In term of Well below
Average Above
Well above
Meeting customer needs
Overall employee turnover

Administrative efficiency
Overall innovative capabilities
Overall operational

Recruitment process


Q4. Do you have an HR department in charge of all personnel-related matters?
To some extent
Q5. Does the HR department or any HR manager/officer get involve in strategic
To some extant
Q6. 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)
1 2 3 4 5

Quality improvement strategy
1 2 3 4 5

Cost reduction strategy
1 2 3 4 5

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 scale 1 2 3 4 5
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
4. 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

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

21. Use flexible work design to attract & retain staff