Human Resources Planning at Tata

Consultancy Services Limited

About the Company: Tata Consultancy Services Limited (TCS). Tata Consultancy Services
Limited (TCS): is a software services consulting company, one of the largest provider of
information technology and business process outsourcing services in Asia.
Tata Consultancy Services Limited (TCS) is a flagship subsidiary of one of India's largest and
oldest conglomerate company, the Tata Group, which has interests in areas such as energy,
telecommunications, financial services, manufacturing, chemicals, engineering, materials,
government and healthcare.
2.1 Analysis of business factors in Tata Consultancy Services Limited (TCS)
The major factors that are taken into account while planning the human resource planning are:
-Schedule of available resources
-Skills of available resources
Some of the minor factors:
-Personality conflicts among the employees
-Attendance History of the employees
-Team player
-willingness to work on given project
Additional major factors:
-Production forecasting
-economic conditions which may cause the company to lay-off or cut-back, or increase their
workforce.

Issues in Tata Consultancy Services Limited (TCS)

The compensation management practices of Tata Consultancy Services Limited (TCS) have
taken as the major issues here. Their compensation management system was based on the
Economic Value Added (EVA) model. By implementing this model in to the business, the salary
of employees comprised of two parts of fixed and variable. The fixed salary will reach employees
without any delay, but the variable part of the salary was arrived only after considering business
unit EVA, Corporate EVA and also individual performance EVA. Based on this calculation, the
employees can earn their salary. In the last quarter of the financial year 2007-2008, Tata
Consultancy Services Limited (TCS) has announced that it is in the critical situation, so as it has
planned to slash 1.5% of the variable component of employees' salaries since its EVA targets

were not met by the third quarter of the financial year. This announcement is not only for Tata
Consultancy Services Limited (TCS) employees but also to the entire Indian IT industry.
2.2 Assessment of Human Resource Requirements in Tata Consultancy Services Limited (TCS)
The Company viewed their employees as their assets, so they have more concentrated on the
efficient utilization of those assets. Tata Consultancy Services Limited (TCS) had drawn criticism
for its compensation structure. In view of the employees, the salaries were not on a par with
industry standards. It has started to loss its employees as not in the situation to follow the
Employee Stock Options (ESOP), which is being followed by its competitors. ESOP is one of the
emerging tools to retain the employees with the Tata Consultancy Services Limited for a long
time.
In this situation, the management was collapsed with the current policies, and it tends to modify
the strategies as per their norms in order to meet employees' requirements as well as the targets
setted by the company.
To overcome the problem occurred, it is suggested by the Tata Consultancy Services Limited
(TCS) senior management to constantly keep the employees' track of the vast intellectual assets,
their skill sets, the status of projects on which they were working. Then, they have started to
assess the required number of people available to be placed in the other new projects.
2.3 Developing human resource plan in Tata Consultancy Services Limited (TCS)
The human resource plan can include the assigned skill sets of the resources for a project and
the degree in which they will be used. The plan should incorporate with the resources, the time
and degree of usage, task or areas of applied resources.
The following model relies on gap analysis and which links the human resource planning to
overall business planning.

Workforce Analysis in Tata Consultancy

Services Limited (TCS)
It is the process of analyzing and understanding the workforce and planning for projected
shortages and surpluses in specific occupations and skill sets.
In Tata Consultancy Services Limited (TCS), workforce analysis should be made based on their
projects. So that only they can realize the needs to assess the further requirements or
improvements what is to be made to the current plan.

Internal Scan in Tata Consultancy Services

Limited (TCS)
What are the factors which affecting the Tata Consultancy Services Limited internally, that is to
be identified. Then the required steps can be taken to create a solution and to enhance the HR
capacity in order to meeting the Tata Consultancy Services Limitedal goals.
The internal factors may be as: work environment, quality of work life, relationship with their
peers/subordinates, etc., In Tata Consultancy Services Limited (TCS), internal factor which
affecting HR capacity might be their compensation structure. Definitely, it will lead to create a
problem while attaining the goals. So that, the grievances must be monitored by the
management and also they should take preventive measures.

External Scan in Tata Consultancy Services

Limited (TCS)
External scan means all environmental factors in which affecting the workforce capacity, HR
priorities and emerging issues.

Gap Analysis in Tata Consultancy Services

Limited (TCS)
After scanning the external factors, gap analysis can be made. It may consider the current and
future HR needs.

Priority Setting and Work Plan in Tata

Consultancy Services Limited (TCS)
Based on Tata Consultancy Services Limited (TCS)'s priorities, environmental scan, and HR
performance related data: major human resource priorities, strategies to achieve the desired
outcome.

Monitoring, Evaluating and Reporting in Tata

Consultancy Services Limited (TCS)
The human resource plan ends up with monitoring and evaluating the workforce capacity and
then reporting the results of the performance to measure performance, set targets, and finally the
results can be integrated together to make decisions and to determine the future priorities.

2.3 Evaluation of Human Resource Plan in

Tata Consultancy Services Limited (TCS)
The above developed human resource plan can be implemented by Tata Consultancy Services
Limited (TCS) to overcome the above said problem. There are few things that apply to most
human resources planning functions, and are important in making the process effective, or even
to make it part of creating a competitive advantage in the marketplace.
Human resource planning needs to be linked with the larger business planning or strategic
planning process. It is not an end up process.
The function is mean to support and enable the company to attain its business goals, so as such
it needs to be linked to and driven by those business or strategic goals.
HR planning is lead by the HR department and it should remember the whole process is to serve
stakeholders and "customers" of the HR department.
It can't be effective without an understanding of the company or Tata Consultancy Services
Limited, its managers and employees, its mission and issues, etc and the environment in which it
works.

3.1 Purpose of HRM policies in Tata

Consultancy Services Limited (TCS)
Human Resource Management policies are the tool for communicating a company's basic
management philosophies, commitment to fair employment practices and equal opportunity, and
the expectations of employees.
HR Manuals are primarily used to provide HR personnel with a systematic approach for handling
human resources related activities to ensure company policies are enforced. It is designed to
define policies and procedures that support basic management philosophies, outline company
rules and requirements, clarify the company's expectations of its employees, and describe lines
of authority and levels of responsibility.

The HR manual provides a means for formalized, systematic documentation and communication
of those policies and practices established by the company.
HR policies ensure that everyone in the Company/Tata Consultancy Services Limited is treated
fairly and consistently and that their contributions to the success of the Company are
appropriately recognized and rewarded. All employees shall be fully aware of what the Company
expects of them and what they, in return, should expect from the Company. HR Policies
summarize the Company's responsibility to individuals and their responsibility to the Company.

3.2 Impact of Regulatory Requirements on

HR Policies
Every country has its own regulations, laws and regulatory bodies or agencies governing the
manufacturing, sales, marketing and distribution of products within the country. Also, every
employee of the Company shall, in his business conduct, comply with all applicable laws and
regulations, both in letter and in spirit, in all the territories in which he operates.
The impact of regulations on policies of firms especially those who are technology-based limits
the venture capital funding for these firms and affect what they can or intend to do and eventually
limiting their capabilities to employ new hands thereby affecting the socio-economic fibre of the
society.