Term Paper of Human Resource Management

Submitted to

Mr. Vikrant Parashar

Tata Consultancy Services

Submitted By:

Udit Dhawan
Roll No. RQ 3810 A 07
B.Com (Hons.) (2008-2011)

Lovely Professional University

Phagwara (Punjab)
Tata Consultancy Services Limited (TCS) is the world-leading information technology
consulting, services, and business process outsourcing organization that envisioned and
pioneered the adoption of the flexible global business practices that today enable
companies to operate more efficiently and produce more value.

They commenced operations in 1968, when the IT services industry didn’t exist as it does
today. Now, with a presence in 34 countries across 6 continents, & a comprehensive
range of services across diverse industries, they are one of the world's leading
Information Technology companies. Seven of the Fortune Top 10 companies are among
our valued customers.

They are part of one of Asia's largest conglomerates - the TATA Group - which, with its
interests in Energy, Telecommunications, Financial Services, Chemicals, Engineering &
Materials, provides us with a grounded understanding of specific business challenges
facing global companies.

As we move into an era of e-business where IT professionals will interview employers so

stringently that 40 percent employers will miss recruitment goals (source: Gartner
Group), the role of HR assumes unthinkable proportions and is subject to mammoth
challenges. With this sensitive breed of IT professionals, how has TCS grown to and
sustained at the number one position is a question which market watchers have asked
themselves a thousand times. There is but one answer - passion for excellence in the
workforce practices. TCS has developed an unbreakable bond with sound HR practices in
an environment that defies traditional roles and responsibilities.

Performance Appraisal Criteria at TCS

OBJECTIVES
Data relating to performance assessment of employees arc recorded, stored. and used for
seven purposes. The main purposes of employee assessment are:
1. To effect promotions based on competence and performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales
have not been fixed.
5. To let the employees know where they stand insofar as their performance is concerned
and to assist them with constructive criticism and guidance for the purpose of their
development.
6. To improve communication. Performance appraisal provides a format for dialogue
between the superior and the subordinate, and improves understanding of personal goals
and concerns. This can also have the effect of increasing the trust between the rater and
the ratee.
7. Finally, performance appraisal can be used to determine whether HR programmes such
a selection, training, and transfers have been effective or not.

Broadly, performance appraisal serves four objectives-

(i) developmental uses,

(ii) administrative uses/decisions,
(iii) organizational maintenance/objectives, and
(iv) documentation purposes

Table below outlines these and specific uses more clearly:-

Multiple Purposes of Performance Assessment

General Applications Specific Purpose

Identification of individual needs

Performance feedback
Developmental Uses Determining transfers and job assignments
Identification of individual strengths ad
development needs

Salary
Promotion
Retention or termination
Administrative Uses/Decisions Recognition of individual performance
Lay-offs
Identification of poor performers
 HR planning
Determining organization training needs
Evaluation of organizational goal
Organizational Maintenance/ Objectives achievement
Information for goal identification
Evaluation of HR systems
Reinforcement of organizational
development needs

Criteria for validation research

Documentation for HR decisions
Documentation Helping to meet legal requirements

PERFORMANCE APPRAISAL AND COMPETITIVE

ADVANTAGE IN TCS

The objectives of performance appraisal, point out the purpose which such an exercise
seeks to meet. What needs emphasis is that performance evaluation contributes to TCS’s
competitive strength. Besides encouraging high levels of performance, the evaluation
system helps identify employees with potential, reward performance equitably and
determine employee's need for training. Specifically, performance appraisal has helped
the TCS gain competitive edge in the following ways :
 Improving
Strategy and Performance Making correct
Behavior decisions

Competitive
Advantage

Values and Ensuring Legal

Behavior Minimizing Compliance
dissatisfaction and
turnover

TCS conducts two appraisals:

1. At the end of the year

2. At the end of a project.

Appraisals are based on Balanced Scorecard, which tracks the achievement of employees
on the basis of targets at four levels —

 financial
 customer
 internal
 learning and growth

The financial perspective quantifies the employee’s contribution in terms of revenue

growth, cost reduction, improved asset utilization and so on;
The customer perspective looks at the differentiating value proposition offered by the
employee;
the internal perspective refers to the employee’s contribution in creating and sustaining
value;
the learning and growth are self-explanatory.
The weightage given to each attribute is based on the function the employee performs.

Based on their individual achievements, employees are rated on a scale of one to five
(five = “superstar”). If employees get a low rating (less than two) in two consecutive
appraisals, the warning flags go up. “If the poor performer continues getting low scores
then the exit option may be considered”

Over the years TCS has found the pattern that leads to the maximum decline in
performance — boredom. If employees work for more than two years on the same
project, typically either their performance dips or they leave the organization.

To avoid that, TCS shuffles its employees between projects every 18 months or so.
“Performance drops if motivation drops”

At the heart of an employee's satisfaction lies the fact that his performance is being
appreciated and recognized. TCS's performance management system has metamorphosed
into one that emphasizes objectivity and a system that mandates performance evaluation
against pre-determined criteria.

What deserve special mention is the active participation of the senior management in the
determination of guidelines for the performance appraisal process. The process ensure
buy in of the employees since the guidelines for the rating system and its conversion into
money terms is not unilaterally decided by HR but is a consensus of a cross functional
team with representation from all levels.

TCS's performance appraisal system is supported by an online system called the Human
Resource Management System- an Oracle Developer 2000 based tool. The system
individual right from his biographical details to his projects performance. An employee's
performance history at the click of a button and this accurately maintained for 14000
employees! Right from his entry, an employee in TCS get formal performance feedback
once very two months till such time that he is confirmed after which the performance
feedback is provided twice every year on a formal basis. TCS however widely
encourages informal feedback discussions between Project Leaders and Team Members
and this concept has found an overwhelming appeal among the people.

Recognition at TCS
Guaranteed high motivation levels at TCS through competitive compensation packages,
stimulating job content, outstanding development opportunities, and, not the least, an
innovative recognition mechanism

The various ways in which TCS recognizes its people are listed below.

 Project milestone parties — to encourage efficient execution of projects.

 Recognition of star performers / high fliers — to recognize outstanding talent.
 Nomination to covet training programmes — to encourage self-development.
 Best project award — to promote a spirit of internal competition across work
groups and to foster teamwork.
 Best PIP award — to encourage innovation and continuous improvement.
  Best auditor award — to acknowledge participation in critical support roles
 Spot awards — to ensure real-time recognition of employees.
 Recommendations for new technology assignments / key positions — to ensure
career progression and development of employees' full potential.
 Performance-based annual increments — to recognize high performers
 Early confirmations for new employees — to reward high-performing new
employees
 Long-service awards — to build organisational loyalty
 EVA-based increments — to ensure performance-based salaries.
 On-the-spot recognition — to guarantee immediate recognition of good
performance.

P-CMM ( PEOPLE CAPABILITY MATURITY MODEL )

The concept that is very close to the heart of the HR group and one that has seen mass
appeal is the PEOPLE CAPABILITY MATURITY MODEL or the P-CMM.

TCS has been the first company in India to be visited by the author of P-CMM - Dr.
Bill Curtis. The HR group along with the Software Engineering Process Group has
dedicatedly worked towards achieving a high maturity level for the people processes.
And it is no mean feat that the two groups have generated such synergy that for a long
time every one will be speaking one language - the-P-CMM.

For the first time, all of the HR processes will be subjected to an audit and that in itself is
an achievement to be proud of because we hear so few a company having its HR
processes audited. TCS plans to have an organization wide assessment this year. So HR
now in the books of "QUALITY".

For the first time, all of the HR processes will be subjected to an audit and that in itself is
an achievement to be proud of because we hear so few a company having its HR
processes audited. TCS plans to have an organization wide assessment this year. So HR
now in the books of "QUALITY".

Developing the HR capabilities has been an imperative. Equipped with the training
programmes at TMTC (The TATA Management Training Centre), the extensive Labs at
ISABS and ISISD the constant exposure at conferences, the HR team is a formidable one
and at the cutting edge of HR technology.

The HR team in TCS is transcending from its traditional "maintenance" role to a new
developmental role. Designing training modules for Senior Project Leaders on
performances management, facilitating the implementation of P-CMM ( being done for
the first time in Asia) or designing a Balanced Score Card for the team, the HR group is
at the forefront, rubbing shoulders with the technology experts.
The People Capability Maturity Model consists of five maturity levels that establish
successive foundations for continuously improving individual competencies, developing
effective teams, motivating improved performance, and shaping the workforce the
organization needs to accomplish its future business plans. Each maturity level is a well-
defined evolutionary plateau that institutionalizes new capabilities for developing the
organization's workforce. By following the maturity framework, an organization can
avoid introducing workforce practices that its employees are unprepared to implement
effectively.

The five stages of the People CMM framework are:

P-CMM - Initial Level (Typical characteristics: Inconsistency in performing practices,

Displacement of responsibility, Ritualistic practices, and Emotionally detached
workforce).

P-CMM - Managed Level (Typical characteristics: Work overload, Environmental

distractions, unclear performance objectives or feedback, Lack of relevant knowledge, or
skill, Poor communication, Low morale)

P-CMM - Defined Level (Although there are performing basic workforce practices,
there is inconsistency in how these practices are performed across units and little synergy
across the organization. The organization misses opportunities to standardize workforce
practices because the common knowledge and skills needed for conducting its business
activities have not been identified)

P-CMM - Predictable Level (The organization manages and exploits the capability
created by its framework of workforce competencies. The organization is now able to
manage its capability and performance quantitatively. The organization is able to predict
its capability for performing work because it can quantify the capability of its workforce
and of the competency-based processes they use in performing their assignments)

P-CMM - Optimizing Level (The entire organization is focused on continual

improvement. These improvements are made to the capability of individuals and
workgroups, to the performance of competency-based processes, and to workforce
practices and activities. The organization uses the results of the quantitative management
activities established at Maturity Level 4 to guide improvements at Maturity Level 5.
Maturity Level 5 organizations treat change management as an ordinary business process
to be performed in an orderly way on a regular basis)

Recruitment And Selection Process of Tata Consultancy Services

Recruitment – It is the process of finding and attracting , capable applicants for

employment.

Selection – It is the process of differentiating between applicants in order to identify and

hire those with greater likelihood of success in job.
The main sources of recruitment are:

1. Internal promotion and internal introductions (at times desirable for morale purposes)
2. Careers officers (and careers masters at schools)
3. University (Campus) appointment boards
4. Agencies for the unemployed
5. Advertising (often via agents for specialist posts) or the use of other local media (e.g.
commercial radio)

1. Work force level

Work force level is the initial level of any company, here the selected person do the job
which is assigned by their head. In the TCS the initial job is mainly concern with
software development, it could be hardware or networking related also so candidate
should have knowledge of computer languages, hardware or networking for which post
he/she is applying.

Recruitment process for work force level

1. Application: it can be either online or respond to one of company’s Ads—They
screen candidate’s resume and call them for an interview
Selection process is through
1. Written (Aptitude test)
2. Interview (Technical & non-technical)
3. Group Problem Solving

1. Frontline Level
Frontline level is the upper level of work force level. A person could be the head of one
team of workforce level. Here it concern with strong technical as well as communication
skill. It is two way communication process where he/she communicate with work force
people as well as their technical department.
This is internal and external process here employee is getting select from inside the
company or from outside the company. The inside selection process is bit different from
outside selection process.

Selection process for frontline level from outside the company

2. Written
3. Interview (technical & non-technical)
4. Case study analysis, aptitude test
5. Group Discussion

For inside selection they consider

1. According to their performance
2. Interview
3. Leadership quality

6. Middle Management level (Executive selection scheme)

The Executive Selection Scheme is a fast track program for accelerated growth of high
potential professionals. It takes care of all project taken by the company. This is also two
way communication process. Here the manager communicate with his high level person,
lower level employees and more with clients.

Selection process of middle Management level

This is also based on internally and externally.
Internal process
1. Interview
2. Presentation
3. Case Study Analysis
4. Leadership Quality &
5. According to their performance

External Process
1. Written Aptitude test
2. Interview (technical & non-technical)
3. Case study analysis
4. Presentation
5. Leadership quality
6. Negotiation

7. Top Management Level

It is the top most and prestigious post for the Tata Consultancy Service like CEO, MD.
Here top most person is mainly concern for managing the whole company, they also
make strategies related to decision making for to phosphorus in near future .

There is no recruitment process from externally.

Selection process for Top Management Level is through
1. Interview
2. Candidate Presentation
3. Offers and negotiation

Training and Development program in TCS

The most effective learning and development programs have following features
incorporated:

• Strategy driven: All training and development programs should align with
overall organization strategic goals and yield business results.
In TCS, the function of the training group is to interact with the functional group
heads and business leaders and understand the skill sets needed for the
organization to compete in the market and develop them. The training needs of
the organization is captured in this way for both long and short term. By
identifying the training needs, the training group head designs a training plan for
the employees which will be deployed after approval from the CEO.
• ROI: The training program should be measured as every other business activity,
It must show a return on investment either on short term or long term.
In TCS training feedbacks collected at regular periods from both the trainees and
the functional heads help in measuring the impact of training. Some of the
measures that indicate short term returns from training are - productivity
increase, reduction in defect density.
Some of the measures that can be used to measure for returns on the long term
are - customer retention, employee retention, reduction in recruitment cost etc.
Benchmarking should be made with the competitors of similar businesses to
compare the long term returns.

• Methodologies: Learning & Development methodology used in TCS are

eLearning, CBTs, Class room training, knowledge sharing sessions & continuous
educational program in reputed institutions.

1. e-Learning – It is one of the most preferred choices of the corporates since the
employees are becoming tech-savvy now a days. Many employees are able to attend the
training delivered by the instructors in far away locations through teleconference or
videoconference.
The sectors of e-learning are [3]:
Portals
Edu-commerce companies
Network platforms

2. Computer based training (CBTs)- – As the cost for instructor and the text books
go up computer based training is the best alternative. Many learning materials are
available in CD-ROMs and one can learn these courses at ones convenience on a PC.
The materials can be stored easily and this encourages self learning. Custom made
PowerPoint presentations and word documents can also be used as training material and
employees can make use of these whenever in need without waiting for an opportunity to
be taught in a classroom.

3. Classroom training (CRTs) – It is the oldest method for imparting training, now
a days many corporate conduct class room training with the aid of computer, internet
and other multimedia products. This helps the trainees to participate effectively with
the instructor and there by enhances the speed of learning process. This is not cost
effective compared to the above two methods but it is one of the very effective
methods.

4. Mobile learning – Mobile phones and palm tops are in vogue today and have
become excellent tools for learning. Imagine an executive preparing to meet his client;
while he waits for the meeting to start, he uses his personal digital assistant for
communications and e-learning. With the information accessible to him, not only does
he stay up-to-date on the market issues essential to his position, but he also receives
regular notifications from message boards, news portals and his employer.

5. Continuous education programs in reputed institutions – Organization can

educate their employees through universities and reputed education institutions based
on the type of business they are engaged. Many institutions are willing to prepare a
curriculum for the employees as required by the business units. This enables the
employees to earn knowledge and degree and ensures commitment to the organization.