Professional Documents
Culture Documents
A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF
SIKKIM-MANIPAL UNIVERSITY OF HEALTH, MEDICAL AND TECHNOLOGICAL SCIENCES DISTANCE EDUCATION WING SYNDICATE HOUSE, MANIPAL-576 104
Certificate
The real life project on HR Policies of IT Companies submitted by LALITA JOSHI, MBA (10-12), is a record of work carried out by her under my guidance and supervision.
Contents
1. Declaration .. 4 2. Acknowledgement 5 3. Objective 6 4. Executive Summary ...7 5. Tata Consultancy Services & its HR Policies8-27 6. Wipro InfoTech & its HR Policies...28-35 7. CyberThink InfoTech Pvt. Ltd. & its HR Policies...36-46 8. Map Info & its HR Policies..47-56 9. Research Methodology 57-59 10.Analysis and Conclusion .60-69 11.References 70
DECLARATION
I hereby declare that dissertation report on HR Policy of IT Companies is factual report of my project work undertaken practical fulfillment of the degree MBA from SIKKIM MANIPAL UNIVERSITY, of health,medical& technological sciences.
The facts and figures presented here is correct and best of my knowledge and effort.
SUBMITED TO:
SUBMITED BY:
Acknowledgement
want to express my sincere thanks and gratitude to my real life project guide my fuclty MIS CHANDANI. who has been of immense support and guidance in enabling me to do this project. His deep understanding and valuable insights have been of great help in the successful completion of my dissertation
I
I would also like to thank all those people, without whose help and support I would not have been able to do justice to the project.
Objective
To study & understand the Human Resource Practices of four IT Companies and to compare and understand the overall HR practices implemented by different IT companies in India.
EXECUTIVE SUMMARY
The objective of my dissertation is to study & understand the Human Resource Practices of four IT Companies and to compare and understand the overall HR practices implemented by different IT companies in India. It is developed for understanding the different HR policies
adopted by different IT companies and to do the comparative study to better understand the similarities and the differences.
In order to find out this, I went through HR policies of these IT companies available as secondary source over the internet. The collected data was further analyzed and conclusions were generated with the help of descriptive data analysis with the help of Ms Excel and represented through table. The analysis would help us understand how these companies policies differs or same in terms of application and how is it different or same in reference to the context that we study in the MBA course.
COMPANY PROFILE
Tata Consultancy Services (TCS) is a part of TATA group, Indias largest conglomerate with diverse business interests. It is a global IT services, consulting and outsourcing company. It started its operations in 1968, as a provider of data processing services to the other companies in the Tata Group. In the early 1970s, TCS began providing IT application development and maintenance services to customers in developed markets, such as the US and the UK. TCS currently offers IT services, consulting, business process outsourcing (BPO), engineering services and IT infrastructure services. In addition, it also provides asset-based solutions in banking, financial services and insurance (BFSI), telecom, manufacturing, life sciences and healthcare, transportation, retail, etc. First and largest: o Software R&D center in India o Software exporter in India o Indian software company to earn US $ 2 b in a fiscal Represents high levels of excellence, integrity and ethical values.
Global Workforce
Global presence operations in 47 countries, 160 offices world wide Employs about 85,600 people (by the end of December 2006) TCS has a huge percentage of overseas employees almost 10 per cent About 8,000 employees of our global workforce are from 65 different nationalities including Chile, Brazil, China, Romania, Australia, Mexico, and Hungary TCS continues to have the lowest attrition rate in the industry 10.8 per cent as against the industry attrition average of about 15 per cent
10
The HR Policies
TCS gave utmost importance to its human resource function. The company believed in the premise that "Good ideas can come from any level of the organization and teams can do better than the individuals." The mission statement of HR division at TCS states, "The role of HR is to provide the context for energizing and developing people to play effective roles in ensuring that TCS becomes one of the top global consulting firms. Towards achieving this we will identify, develop, facilitate, and measure the human and technological processes in the pursuit of excellence. We will foster the values of the TATA group."
11
12
HR PLANNING PROCESS:
Geography wise
13
Job Analysis
IT software and services major TCS has attempted to create a segments solution to fit the needs of different layers of job opportunities within its environs. It is based on
o Activity to be performed o Skills required for that job
To begin with, the company has mapped the educational streams to the hierarchy of job opportunities within its domain.
o Typically, the company has found that non graduates need to be trained in basic IT and deployed for the spectrum of jobs provided in the basic level of ITES. o Graduates in Arts and Science can fit into the programming profiles. o A sub-set from the engineering and management teams can get placed in software engineering activities. o The high performers in graduate level engineering and a subset from the masters level can be used in high end services. o The high performers at the masters level and PhDs can get routed to research.
By undertaking this mapping for its internal purposes, TCS is ensuring that there is a constant supply of the right human resources to the right career opportunities and that there is no mismatch between the roles and the available skill sets.
14
Regional Head
Group Head
Project Lead
Team Lead
Team Members
15
16
Selection Procedure
Campus Placement procedure:
Tata Consultancy Services (TCS) usually conducts its campus placements through a standard procedure. The Selection Procedure consists of a written test. Those who clear written test will face technical and HR Interview. The HR Interview is very general to test your temperament. General questions based on current affairs, general awareness, trends in IT etc. may be asked. The technical interview is based on subjects you have already studied in your curriculum.
Online Test
Technical Interview
HR Interview
Technical Interview
HR Interview
17
18
available in the companys ladder and individual aspirations of employees. Under the umbrella of its HR policies, TCS has earmarked the following career paths for employees: o technical architecture o project management o business relationship/geography management o corporate functions such as Finance, HR, quality and R&D Despite the vast size of TCS, the company is providing learning opportunities to its professionals so that they can move up the value chain in terms of skill sets and across streams. The company has developed a robust framework for career progression and professional development and created and implemented a three tiered training program to create a better alignment between its expectations from employees and their knowledge and practical skills.
19
20
Performance Appraisal
The major objectives of performance appraisal at TCS are: o Identifying employees for salary increases, promotion, transfer and lay off or termination of services. o Determining training needs for further improvement in performance. o Motivating employees by indicating their performance levels. Appraisal at TCS is done for both the Services & Managerial Employees It happens on o Quarterly Basis: Before confirmation by Speed 3 online tool o Half yearly Basis :After confirmation by Speed 4 online tool Every new employee is confirmed only after 1 year
21
Associate
Supervisor
Reviewer
Associate
Accept
Reject
HR Department
22
Retention Strategies
TCS has been able to retain talent by offering software professionals a clear defined career growth path. This includes ability to work in diverse geographies across TCS' network of 169 offices and development centres in 35 countries, as well as on new technology platforms and domains like banking, telecom, life sciences and retail. This is facilitated by a promotion policy, which is performancebased.
Job Rotation
TCS offers its employees a flexibility of choices on career streams across domains, technologies and services. It encourages job rotation and allows movement of associates across different job roles and functions. For instance, employees can move from a technical role to HR, finance or learning and development to facilitate their professional requirements and individual aspirations. But before that an employee must have worked in his or her present role for at least 2 years.
23
Succession Planning
In an era of stiff competition for seasoned professionals, it has become necessary to identify and develop leaders from within the organisation and empower them with additional responsibility to assume increasing levels of leadership Succession Planning strategy is also a critical part of TCSs business planning process It is done mainly for Key Roles to retain the Talent Pool It is planned in each practice which happen to be the business units of the company In each practice they have a systematic process for succession planning High-fliers are identified at the time of appraisals and their progress is monitored When somebody gets identified as an exceptional performer by more than one manager, he/she comes up for positioning in the succession planning system. The process however just does not stop at identifying the successors. The need is also to provide challenges and motivation to those who have been identified as successors. Therefore there has to be an excellent career planning process and talent mindset. For Example: At Project Level Module Lead whose role is to provide back-up to Project Lead is considered as a successor of Project Lead
24
Employee Benefits
Flexible Working Hours It has an Adoption Leave Policy benefits which is extended to male associates also o This means that associates of both genders are eligible to three months paid leave after they adopt a child TCS also has other add-ons such as sabbaticals, joining spouse overseas, part-time or work from home facility, holiday homes across the country and welfare trust facilitation for higher education Also, as employees of the Tata group, associates get discounts on products and services of other Tata Group companies The other employee benefits which are offered here include House building loans, automobile loans, mentoring, career counseling, stress development programs and many more Medical Insurance to all employee & their immediate family o Basic Cover of 7x24 hrs of hospital facilities Rs. 45,000& day-to-day expenses Rs. 5000 o Additional cover of 5 lakhs is provided for dependents on 3500Rs. Premium o Further cover increases depending on the post Many of TCS branches also offer recreation facilities
25
Grievance Handling
They have an Open door policy i.e. any employee can approach his supervisor anytime for his or her problems. They also have a special Organization Effectiveness Department for this purpose. Also an employee can approach the HR person online anytime. Every weak HR hour is there i.e. HR Person is available on the floor to discuss the issues. Group meetings are also held on regular basis. Also every associate must be covered at least by the HR personally in every quarter.
26
Organizational Exit
At TCS exit Interviews are conducted & purpose of them is mainly to know two things: o Why people are leaving the organization o Why are they joining the other organization They are conducted by PL & HR Person of the respective team. Also whole information is kept secret
27
28
Company Profile
Global provider of business and technology services. Wipro Infotech was the first global software company to achieve Level 5 SEI-CMM, the world's first IT company to achieve Six Sigma, as well as the world's first company to attain Level 5 PCMM Services cover sales & marketing analytics, supply chain and aftermarket services, financial services, core operations & collections, finance & accounting, information technology services, and enterprise application services & program management. Currently, its presence extends to 9 regional offices in India besides offices in the KSA, UAE, Taiwan, Malaysia, Singapore, Australia and other regions in Asia-Pacific and the Middle East.
29
Spirit of Wipro
Intensity to Win
o Make customers successful o Team, Innovate, Excel
Unyielding Integrity
o Delivering on commitments o Honesty and fairness in action
The Spirit of Wipro is the core of Wipro, the Spirit is rooted in current reality, but it also represents what Wipro aspires to be, thus making it future active.
30
Sales and marketing people can work from home Job sharing for working mothers
31
32
Induction
33
Additional Training is also provided on: 1. Ethics and values 2. Session on handling media 3. Standard response
Performance Appraisal
Wipro offers an integrated end-to-end Performance Management Solution.
o Measure and Assess employee performance periodically and provide feedback and support to achieve quantitative, qualitative and process targets o Evaluate and track Hi-Performance and achievers based on Competency driven practices. o Enable online Reward and Recognition
Appraisal at Wipro Infotech happens on Half yearly Basis for both the Services & Managerial Employees.
The half yearly appraisal is more from the point of view of
identifying Training & Development needs whereas the year end Appraisal is for measuring the performance vis--vis the targets.
35
36
Company Profile
CIPL is an ISO certified offshore development company, based at Ahmedabad, Gujarat, India. It has created a wealth of immensely satisfied clientele across the world in 18 different countries, including USA, Canada, Australia, Greece, The Netherlands, United Kingdom, Dubai, South Africa, Japan and New Zealand to name just a few. Quality is the trademark of their services as they follow ISO 9001:2000 standards. They offer Web designing, Ecommerce Solutions, Shopping cart solutions, Mobile applications and synchronization, Social Networkingmultimedia, search engine optimization, corporate identity and client-server applications of the highest quality.
37
Hierarchical Structure
Director
HR-Manager, FinanceManager
Administration Technical Staff (Testing, Designing)
38
Job Analysis
Rank key jobs by factors: o Mental Requirements o Skill o Physical Requirements o Responsibilities o Working Conditions Example: Job title: SAP Consultant
o CANDIDATE PROFILE: Candidate should have an experience of implementing full life cycle. Candidate need to be involved as a functional or technical consultant within the core SAP team (part of Implementation Team). Any functional SAP consultant with one of the combination listed below can apply.SD, MM, PP, FI/CO.SD/MM MM/PP FI/CO MM/QM PP (Process planning)/PI (Process integration) HR with Payroll, Employee Self Service (ESS) SAP CRM or mySAP SAP Techno consultant: Candidate should have ABAP certification. He/She should have experience on IDOCS, Gap Analysis, BEx Analyzer, BEx Browser, LSMP, EDI, SAP Scripts also. Experience in SEM, BPS (Business Process System), APO, BW modules is preferable Oracle experience is plus. o ROLES: ERP SAP o EXPERIENCE: 3 10 years o KEY SKILLS: SAP o PREFERENCE: Overseas Experience & SAP Certified is preferable
39
o Personality Extensive interviewing & reference checking Multiple sourcing resources National and international recruiting
Recruiting Metrics:
Only top 5% of applicants are accepted 100% reference checking Hire people based on ACTI (Attitude, Communication, Technical and Industry knowledge) rating. Most of consultants have post graduate degrees.
40
Sources of Recruitment:
Employee Referrals
o High referral rate (Employee Satisfaction)
Advertisements CyberThink Website Job Postings Job Fairs Open Houses Cold Calling Out of State Recruiting Trips International Recruiting Trips
41
Selection process
Applicant job interest
Selection Test
HR interview/ Technical interview (Varies as per the job profiles/rank) Conditional offer Job placement
42
Induction Program
General intro session No Special program is conducted
CIPL is committed to train and retain the human resources that are engaged through a process of extensive research and scrutiny. Main purpose of training at CIPL is to bridge the gap between what the employee has and what the job demands. People regularly undergo training in technology and management practices which helps them to understand the business environment and industry needs. Ongoing training is provided to obtain maximum performance. Address deficiencies (if any) quickly & efficiently.
43
Performance Appraisal
Performance is appraised annually. Permanent record of consultants Annual performance review is kept CyberThink will pay overtime only if it is pre-approved. Normally over 40 hours a week is considered overtime. Awards bonuses based on overall company and employee performance.
Job Rotation
44
Grievance Handling
Grievances are handled in the organization but it varies from Situation to situation. All things are documented irrespective of the fact steps are taken against it or not.
No Trade Unions
45
Employee Benefits
CyberThink offers a comprehensive range of employee benefits, including: Paid Time Off (Includes - Vacation, Sick, Personal, Holidays, etc.): Full time employees are eligible for 20 paid days a year including holidays. Guest House Facilities: The company has guest houses, which are used to house new employees relocating to the USA. These facilities are available for the employees for two weeks into the first project. Relocation for Project: The company provides two weeks of accommodation and car rental if needed, when an employee is moved from one project to another out-of-state project. All approved luggage moving costs will be reimbursed when original receipts are provided. The company also reimburses the cost associated with changing car registration, driver's license and transportation costs incurred for interviews when original receipts are provided. Health Care Coverage: Each employee is entitled to the medical treatment and prescription medicines as per the policy laid down by the insurance company. Other Benefits offered by CyberThink include: o Short Term Disability (company pays premium) o Long Term Disability (company pays premium) o Life Insurance (company pays premium) o Accidental and Death Disbursement (company pays premium)
46
47
Company Profile
Its the leading provider of location intelligence solutions, integrating software, data and services to provide greater value from location-based information and drive more insightful decisions for businesses and government organizations around the world. Pitney Bowes MapInfo solutions are available in 20 languages through a network of strategic partners and distribution channels in 60 countries. It employs nearly 1000 talented, motivated and creative associates. A fast growing global company and the flagship technology company in New York State's Tech Valley Region, Pitney Bowes MapInfo is a high energy, highly spirited workplace.
48
Hierarchical Structure
Vice President
Project Manager
49
HR Planning
Approval by MD
After this, Jobs are posted on the Companys Website and circulated to Employees & Consultants
50
Selection Procedure
Technical Interview
Managerial Round
HR round
offer
51
Induction
Employee induction program of 3 days in the respective branch Main Objectives of induction of this consulting firm is to: o Make new employees feel welcome and at ease. o Help them understand the organization in a broad sense. o Make clear to them what is expected in terms of work and behavior. Conducted first by HR Manager, then by Finance manager & Administration team
52
Performance Appraisal
Happens on annual basis. Procedure of performance Appraisal:
Goal are set up by every employee in the beginning of every quarter At the end of the quarter, scoring is done by employee & managers separatly At the end of the year, managers & employees together compile all these ratings
Employee Benefits
Employee Assistance Program: The Employee Assistance Program provides free and confidential assessment, short-term counseling, and information/referral services to all regular fulltime and regular part-time associates. The 529 College Saving Program: This programs helps make saving for a child's higher education easier. It's an investment plan operated by a state designed to help families save for future college. Your investment grows tax-free for as long as your money stays in the plan. And when the plan makes a distribution to pay for the beneficiary's college costs, the distribution is federal taxfree. Referral Program: This program encourages MapInfo associates to spread the news of company job openings to qualified friends, relatives, neighbors, business associates, and alumni. Also reward
54
them with a $500 referral bonus if their referral is hired and works at MapInfo for 90 days. Medical & Vision Insurance: To assist its employees in covering the cost of medical, prescription, and vision care expenses; MapInfo offers them and their eligible dependents coverage through a nation-wide Exclusive Provider Organization ("EPO"). Other Employee Benefits offered here are: o Flexible Working Hours o Work from home facility for senior management o Sponsorship for higher education o Encourage employees to file Patent for their programs o Fun Committee to celebrate every festival in the office
55
Grievance Handling
Open door policy Special committee of senior managers is formed to look all these matters
No Trade Unions
Exit Interviews
Conducted by Assistant HR Manager Final report is sent to the concerned department head.
56
57
RESEARCH METHODOLOGY: Research in common parlance refers to a search for knowledge. One can also define research as scientific and systematic search for pertinent information on a specific topic. Well, all possess the vital instinct of inquisitiveness for, when the unknown confronts, we wonder and our inquisitiveness makes us probe and attain full data and fuller understanding of the unknown, can be termed as research. Research comprises defining and redefining problem, suggesting solutions, collecting, organizing and evaluating data, making deductions and reaching conclusion and at least carefully testing the conclusion. Research methodology is a way to systematically solve the problem. RESEARCH DESIGN: A research design is the arrangement of conditions for the collection and analysis of data in a manner that aims to combine the relevance to research purpose with economy in procedure. In fact the research design is the conceptual structure within research is conducted, if it constitutes the blueprints for the collection measurement and the analysis of the data. DATA COLLECTION: Secondary data is been used to gather information about the HR policies of different IT Companies.
58
RESEARCH DESIGNS
Secondary Data
Experience Survey
Pilot Study
Case Study
Descriptive Design
Experimental Design
In this Research, the Researcher has used Descriptive Research Design as a base of the research, as Descriptive research is undertaken to provide answers to questions of who, what, where, when, and how but not why. In order to gain an insight of the problem and to know the nature of the research problem Exploratory Design is also used in the form of Secondary data. To get more information about the research problem the researcher collected many secondary data and went through many websites and researches that have been done by other researchers.
59
60
These are the major HR functions on the ground of which these four companies can be compared and it can be found out how far they resembles or differ with each other when it comes to the application of these terms into actual practice in these companies.
61
TCS
Both internal and external recruitment based on cost, effectiveness and past data. Sources: campus placements, advertisements, TCS job portals, consultants, Employee referrals Both internal & external recruitment based on the needs. Sources: campus placements, consulting firms, Internet, advertisements, Associates referrals Highly qualification based recruitment based on ACTI (Attitude, Communication, Technical and Industry knowledge) rating. Sources: Employee referrals, Internal candidate database, Internet, CIPL job portals, Cold calling, recruitment trips, advertisements, job fairs.
WIPRO
CIPL
62
SELECTION PROCESS:
TCS:
Online Test Technical Interview HR Interview
FOR FRESHERS
Technical Interview
HR Interview
WIPRO:
Application screening Aptitude Test Technical Interview Final: HR Interview
63
CIPL:
Selection Test
Technical/HR Interview
Conditional Offer
Job Placement
MAPINFO:
Technical/HR Interview
Managerial Round
HR Round
Job Offer
64
WIPRO
CIPL
MAPINFO
65
PERFORMANCE APPRAISAL:
COMPANIES TCS PERFORMANCE APPRAISAL
-Conducted quarterly and half yearly to identify the employee position, training needs and to motivate them. --It is an on-line process -If associate rejects the review then it is taken care by HR Department. -Integrated end-to-end performance appraisal - Half yearly for T & D and year-end appraisal for measuring performance vis--vis the target. - Enabling online rewards & recognition -PA conducted annually -Award based on overall company and employee performance. -Completely target based -PA conducted annually -Target based appraisal - Based on rating system
WIPRO
CIPL
MAPINFO
66
EMPLOYEE BENEFITS:
COMPANIES EMPLOYEE BENEFIT SCHEMES TCS
-flexible working hours -Sabbaticals -Working from home -facility for higher education -Medical Insurance -Recreation facilities -Adoption Leave Policy Benefits -Work from home facility for sales and marketing employees -Medical Insurance -Job sharing for working mothers -option to take full-time or part-time job offer -Paid time off -Guest house facility -Relocation for project -Health Care coverage -Other benefits -Employee Assistance Program -The 529 College Saving Program -Medical & Vision insurance -Other employee benefits
WIPRO
CIPL
MAPINFO
67
COMPENSATION MANAGEMENT:
COMPANIES COMPENSATION MANAGEMENT SYSTEM TCS
-Based on EVA model -Pay package comprises, basic and incentive components -Fixed/variable ratio is 70:30 -Super augmented after every five years -Pay pack for both basic and incentives -Pay package determined on the basis of the level and experience -Pay package decided on the basis of chosen option -fixed/variable ratio is 70:30 N/A -Pay package for both basic and incentives -Ratio of fixed and variable is 60:40
WIPRO
CIPL MAPINFO
68
Conclusions
From the above information of the HR practices implemented by different IT companies in India, I conclude that the HR practices in different IT companies are more or less similar in nature. Some policies of Human Resource are different technically, but the overall HR practices, for example- Job analysis, Human Resource Planning, Recruitment, Selection, Training and Development, Retention strategies, Compensation Management and Performance Appraisal, are almost same in all the IT companies in India. Further adding to the conclusion part, I can say that some of the HR practices are same as we learned in our PGDM programme, but in real life situation of Human Resource Management every thing does not resemble with the bookish theory and concepts. Some of the concepts are theory based and some are more practical in nature which can be learned through practical experience only.
69
References
http://www.ibef.org/ http://www.tcs.com http://www.ciol.com http://www.citehr.com/ http://www.wipro.com/bpo/hr http://web.ebscohost.com
70