INTRODUCTION

CASE STUDY: TATA CONSULTANCY SERVICES (TCS)

Tata Consultancy Services Limited (TCS) is an Indian multinational information
technology (IT) service, consulting and business solutions
company headquartered in Mumbai, Maharashtra. TCS operates in 46 countries. 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 one of the largest Indian companies by market
capitalization ($80 billion) 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 2015, TCS is ranked 64th overall in the Forbes World's Most Innovative
Companies ranking, making it both the highest-ranked IT services company and the first
Indian company. It is the world's 10th largest IT services provider, measured by the revenues.
Tata Consultancy Services Limited (TCS) is a global IT services, business solutions and
outsourcing company which was founded in 1968 by F.C. Kohli, who was its first General
Manager. It is headquartered in Mumbai. One of TCS first assignments was to provide punch
card services to a sister concern, Tata Steel (TISCO). It later bagged the country’s first
software project, the Inter-Branch Reconciliation System (IBRS) for the Central Bank of
India. It is the largest technology service company in Asia based on its record of outstanding
service, collaborative partnerships, innovation, and corporate responsibility. Their mission
reflects the Tata Groups longstanding commitment to provide excellence as well as to help
customers achieve their business objectives by providing innovative, best-in-class consulting,
IT solutions and services, and to actively engage all stakeholders in a productive,
collaborative, and mutually beneficial relationship.TCS ability to deliver high-quality
services and solutions is unmatched. They are the world’s first organization to achieve an
enterprise-wide Maturity Level 5 on both CMMI and P-CMM. They use the most rigorous
assessment methodology - SCAMPISM and 6Sigma. It is largest IT employer in India,
having 142 offices across 47 countries with total manpower strength of 2, 38,583 employees
as of March 2012. It generates around 30 percent of India’s IT exports and provides services
to wide range of segments like banking& financial services, energy, resources & utilities,
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government, telecom, media & information services, etc. TCS has over 143,000 of the
world’s best trained IT consultants in 42 countries. Revenues for the fiscal year ending 31
March, 2011 were to the order of $6 billion.
F.C KOHLI was the first general manager under whose leadership TCS pioneered its Indian
effort to create a globally recognizable brand for the Indian software industry in 1968. J.R.D
Tata was the first chairman, followed by Pankaj Roy. During its initial years it tried building
strong links with academia underlined the intellectual underpinnings of the consulting
business. Professionalism was promoted through participation in the activities of professional
societies, peer recognition and in-house training.
Over the past decade, TCS has grown dramatically, doubling its revenues every two years,
and is on the verge of becoming a billion-dollar company.
Basic Facts
• Founded in 1968 by TATA group
• Head Quarter - TCS House, Raveline Street, Fort, Mumbai - 400 001, India
• Chairman- Ratan Tata
• CEO - Natarajan Chandrasekaran
• An MNC having 142 offices in 42 countries across globe
Market Cap As of May 2015- $80.3 Billion
Industry- Computer Services
Website- http://www.tcs.com
Employees- 300,464
Sales- $15.07 B
About the Company
• Tata Consultancy Services Limited (TCS) (BSE: 532540, NSE: TCS) is a software services
and consulting company.
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• It is Asia's largest provider of Information Technology and business process outsourcing
services. The company is listed on the National Stock Exchange and Bombay Stock
Exchange of India, London Stock Exchange, New York Stock Exchange
• TCS is part of one of India's largest and oldest conglomerates, the Tata Group, which has
interests in areas such as energy, telecommunications, financial services, manufacturing,
chemicals, engineering, materials, government and healthcare.
Evolution of TCS
• Tata Consultancy Services was established in the year 1968. F C Kohli was its first General
Manager.
• One of TCS' first assignments was to provide punch card services to a sister concern, Tata
Steel (then TISCO). It later bagged the country's first software project, the Inter-Branch
Reconciliation System (IBRS) for the Central bank of India
• 1970s, TCS started exporting its services. TCS's first international order came from
Burroughs, one of the first business computer manufacturers.
• In 1981, TCS set up India's first software research and development centre
• In 2004, TCS became a publicly listed company.
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AREA OF STUDY OF ORGANIZATIONAL BEHAVIOUR:
ORGANIZATIONAL CHANGE AND MOTIVATION
What is Organizational Change?
Organizational change occurs when business strategies or major sections of an
organization
are altered. It is defined as a change that has significant effects on the way work is performed
in an organization.
Organizational change may be apparent when there is a gap between how the work area is
operating and how it should be operating to ensure successful future growth. Organizational
change may be a result of the work area identifying goals that they want to achieve.
In this era of globalization, Organizations need to cope up with the dynamic and inevitable
changes, which take place very often. Because of these changes the competition among firms
is becoming intense and every organization should be flexible enough to implement the
changes whenever required for its survival.
Management of Change is defined as, “A conscious and concerted initiative by those who are
in-charge of the destiny of the business undertaking or firm to keep a constant and intelligent
watch over the behaviour of uncontrollable forces, to assess their impact and influence of
the
controllable forces, and to evolve appropriate strategies and action programmes to maintain
a
dynamic equilibrium between the controllable and uncontrollable forces.”
CONCEPT OF ORGANIZATIONAL CHANGE
• ‘Organizational change’ implies the creation of imbalances in the existing pattern of
situation
• Operations & Functions for a long time establishes structural set-up
• Members evolve a tentative set of relations with the environment, adjustment with
job, working conditions, friends and colleagues etc.
• Change requires individuals to make new adjustments. Hence the fear of adjustment
gives rise to the problem of change and resistance to change.
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What is Motivation?
Motivation is a psychological feature that arouses an organism to act towards a desired goal
and elicits, controls, and sustains certain goal-directed behaviors. It can be considered a
driving force; a psychological one that compels or reinforces an action toward a desired goal.
For example, hunger is a motivation that elicits a desire to eat. Motivation is the purpose
or psychological cause of an action.
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish
the goals. In the work goal context the psychological factors stimulating the people’s
behaviour can be -
desire for money
success
recognition
job-satisfaction
team work, etc
One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore the role of a leader is to arouse
interest in performance of employees in their jobs. The process of motivation consists of
three stages:-
1. A felt need or drive
2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of goals.
Therefore, we can say that motivation is a psychological phenomenon which means needs
and wants of the individuals have to be tackled by framing an incentive plan.
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INDEPTH ANALYSIS
TATA CONSULTANCY SERVICES: DETAILED
ANALYSIS
Within a span of three and a half decades, TCS emerged as one of the largest software
companies in Asia, employing 28,000 IT professionals from 30 nationalities working in 32
countries. TCS has also been the largest software exporter from India for past 30 years. TCS
played a major role in developing the IT industry in India. The company was a pioneer,
starting its business way back in 1968. During the first couple of decades, TCS faced many
problems in doing business, owing to unfavourable government regulations and the licensing
system, which made it difficult to even import computers.
Despite all these hurdles, TCS was determined to succeed. The company grew by consistently
upgrading its skill sets, technology and its infrastructure, and in the process, developed
several new innovative software products. A unique aspect of the firm's style of functioning
was that despite being an IT company, it was run along the lines of a manufacturing concern,
with a factory approach. The company managed its new recruits similar to how a
manufacturing concern managed the inflow of raw material. TCS looked after its work force
like a manufacturing company dealt with its inventories. The company allocated its work
force to its branches spread across the world, similar to a retailing company managing its
stores.
TCS Achievements
1. TCS is “the second-largest employer” after Coal India Limited.
2. It bagged the “country's first software project”, the Inter-Branch Reconciliation System
(IBRS) for the Central Bank of India.
3. It is the “largest provider of information technology in Asia and second largest provider of
BPO (business process outsourcing)” services in India
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4. In 1981, TCS set up “India's first software research and development centre”, the Tata
Research Development and Design Centre (TRDDC) in Pune.
5. TCS is the “76th Most Trusted Brand” according to The Brand Trust Report, 2015
6. TCS has one of the “lowest attrition rates” in the Indian IT industry
7. In 2008, the TCS developed a product called mKrishi; it won the Wall Street Journal
Technology Innovation Award in the Wireless category. (mKrishi is a service that would
enable India's farmers to receive useful data on an inexpensive mobile device)
SWOT Analysis
Strength: Ability to win and execute large, billion-dollar outsourcing contracts, increasingly
viewed by customers in the same league as IBM and HP.
Weakness: Made progress in commoditised services, but still lags some peers and
multinational rivals in high-end consulting offerings.
Opportunity: Best positioned among all Indian vendors to disrupt the global league of
IBMHP-
Accenture.
Threat: People-led linear growth means Cognizant can beat it, and there are no visible
leaders beyond N Chandrasekaran. That could pose a big challenge.
HR at TCS
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TCS has developed an unbreakable bond with sound HR practices in an environment that
defies traditional roles and responsibilities. The TCS-HR group operates with technical
experts to create a synergy which is enviable. Figure 1 illustrates the role of HR, which
evidently is that of a facilitator. So whether it is recruitment or even career development, HR
is the catalyst which initiates and institutionalizes processes. To manage all the functions for
over 140000 employees is a Herculean task but the smoothness of operations is intriguing.
The HR structure, which allows flexibility and empowerment, is the solution.
The major resource for any company is Human. And to management that company should
perform basic function as given below:
• Recruitment Policy and Process
• Training and Development
• Compensation and Salary Structure
• Performance Management
• Talent Retention
Work Culture at TCS
At TCS, one can see an energetic and open workplace environment, and a collaborative
culture that's based on teamwork. Pulling together is a central tenet of its work ethic.
Energetic and full of enthusiasm, TCSers enjoy their day (and night) at work. Life at
TCS is a stimulating and exciting experience. Not only have its offices had the best
infrastructure and technology, its associates have a knack of working hard — and partying
harder. TCS employees take pride in adhering to the Tata 'code of conduct', which is in place
across the entire Tata Group. The code is a means of upholding and strengthening the trust
reposed on us by its various stakeholders, be it customers or the wider society.
Diversity at work: TCS is an equal-opportunity employer and TCSers come from many
nationalities and speak many languages. And, since it believes in celebrating everything
under the sun, TCSers are found singing carols at Christmas and doing the dandiya dance at
Navrathri with equal enthusiasm.
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Open door Policy: The senior colleagues at TCS follow an open-door policy in which any
associate can approach the CEO and senior management with work-related problems.
Communication is a big word at TCS and employees regularly takes part in webcasts and chat
session through which important corporate issues or decisions on real-time basis are shared
with associates worldwide.
TCS has institutionalized open-house sessions and engagement programs in which associates
at all levels meet and discuss various work issues. In addition, TCSers can also take part in
one-on-one sessions where they can interact privately with senior management. These
sessions are helpful in providing mentorship, as well as understanding real-life issues that
colleagues face at work. The queries and discussions are formally recorded and followed up.
Fun at Workplace: TCSers are habituated to do the regular outing, be it with their project
teams, with Maitree or with just a bunch of other like-minded TCSers. They often go on
treks, nature camps, picnics or just bus rides whenever they get chance.
Many a times such events are facilitated by the company itself.
SURVEY AND INTERPRETATION
A sample survey of 10 employees was conducted as a part of research for this paper. A
sample of the questionnaire has been attached at the end of the paper. The statistics are as
follows:
1. If you do a good job, are you rewarded?
Yes No
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We can see here that almost 70% of the employees agree that they are rewarded when they
perform their job with accuracy and excellence. This indicates that the company awards
monetary benefits to its employees to keep them motivated.
2.
Yes No
Are the
conditions you work in, good?
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Almost 60% of the employees feel that the working conditions are good. This indicates that
TCS makes work station a favourable place for its employees and indicating that the
company takes efforts to keep its employees motivated.
3.
Yes
No
Are you
engaged in different team building activities?
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Almost 80% of the employees feel that the company makes efforts to engage them in team
activities. This keeps the employees close and team work produces better results.
4. Does the company try to create an exciting work environment?
Yes No
TCS provides a less exciting work environment for its employees. This indicates a drawback
on the company’s part as this demotivates the employees. An exciting environment will help
the employees strive harder to accomplish their goals and make it a fun experience.
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5.
Yes No
You are
motivated to see the company succeed. Do you agree?
90% of the employees are motivated when the company succeeds and generates profits.
Hence, success of the entire company plays an important role in motivating employees of the
company.
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6.
Yes
No
D
oes the company take initiatives to keep its employees motivated? If you agree, then
how regular are those initiatives?
80% of the employees feel that the company takes enough initiatives to keep them motivated
and to keep the attrition rate low.
Also it was mentioned by the employees that group activities or events that could motivate
employees were conducted frequently and that these activities created a lot of awareness
among the employees.
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DETAILED ANALYSIS OF THE PRINCIPLES OF
ORGANIZATIONAL BEHAVIOUR
Organizational Change
The business landscape of the 21st century is characterized by rapid change brought about
due to technological, economic, political and social changes. It is no longer the case that the
managers and employees of firms in this decade can look forward to more of the same every
year. In fact, the pace of change is so rapid and the degree of obsolescence if organizations
resist change is so brutal that the only way out for many firms is to change or perish. In this
context, it becomes critical that organizations develop the capabilities to adapt and steer
change in their advantage.
The role of senior managers becomes crucial in driving through change and ensuring that
firms are well placed with respect to their competitors. However, it is the case that in many
organizations, senior managers actively resist change and in fact thwart change initiatives due
to a variety of reasons which would be explored in subsequent sections. This essay examines
the barriers to change by senior managers and discusses approaches to mitigate such
resistance. The essay begins with a discussion n the role of senior managers as barriers to
change and then outlines some approaches on how to get the senior managers on board for
change.
It goes without saying that “he who rejects change is the architect of decay
and the only
human institution that rejects progress is the cemetery.” With this axiom
in mind, it is
critical to understand that unless change is actively embraced, organizations in the 21st
century risk obsolescence.
To resist change is as basic as human nature and hence the change managers must adopt an
inclusive approach that considers the personality clashes and the ego tussles. It is often the
case that in large organizations, there tend to be power centres and fiefdoms and hence the
issue of organizational change must address the group dynamics as well as the individual
behavioural characteristics.
Only by an understanding of the means by which managers can be brought on board can there
be a foundation for suitable approaches. The approaches include a combination of pressure
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tactics and coordination instead of competition and cooption as well as cooperation. Change
agents must realize that wherever possible, they must deal with consensual decision making
and if that is not possible, they must walk the talk and be firm in their approach. Managers at
all levels have a tendency to resist change and in the high stakes game of change
management, it is the ones that can articulate and communicate the change in a clear and
coherent manner who succeed.
In conclusion, change is the only constant in business and the landscape of the 21st century is
littered with companies that have not adapted to the changing times. Hence, organizations
must and should embrace change and the approaches discussed in this paper are part of the
solution.
Kinds of Change
There are different kinds of change that an organization might undertake or be forced to
undertake because of internal and external factors.
The internal factors for change include reorganization and restructuring to meet the
challenges of the future and also to act proactively to initiate change as a means of staying
ahead of the competition.
The external factors include change that is forced upon the organization because of falling
revenues, changing market conditions and the need to adapt to the ever changing business
landscape.
Change can be organic which means that it evolves slowly and is
like meandering up the
gentle slope of a mountain. In this case, the organization and the management have
enough
time to prepare for change and reorient themselves accordingly. This is the kind of change
that is adaptive meaning that firms have the opportunity to adapt themselves to the change.
Change can be radical which is rapid, sudden and uncertain. This is the
kind of change
that is disruptive and often forces organizations to reorient themselves without adequate
notice and warning. It is better for organizations to anticipate change rather than be forced
into accepting change that is rapid and sudden.
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Barriers to Change
We have seen how managers at different levels resist change and how this resistance
manifests itself. Apart from the ideological and personality issues, there is the very real
possibility of change being resisted because the “visibility” of what comes next is not clear.
For instance, many managers tend to resist change because the change initiators have not
clearly spelt out the outcomes of the changes and the possible impacts that such changes have
on the organization. This is the realm of the “known unknowns” and the “unknown
unknowns” which arise because of ambiguity, complexity and uncertainty. Hence, the
resistance to change can come about due to the lack of coherence in the vision and mission
and because the change is not clearly communicated as well.
Finally, the rapidity with which change is introduced can upset the organization structures
that are usually rigid and bureaucratic with bean counters at all levels resisting and actively
thwarting change. Hence, it needs to be remembered that change initiators take into account
all these factors when introducing changes.
THE STAGE THEORY (ORGANISATIONAL CHANGE)
· The Stage Theory is based on the idea that organizations pass through a series of
steps or stages as they change.
· After stages are recognized, strategies to promote change can be matched to various
points in the process of change.
· According to Stage theory, adoption of an innovation usually follows several stages.
· Each stage requires a specific set of strategies that are contingent on the
organization's stage of adopting, implementing, and sustaining new approaches as
well as socio environmental factors.
HISTORY, KEY CONCEPTS AND APPLICATION OF STAGE THEORY
While Kurt Lewin is credited for creating one of the earliest stage models, modern stage
theory is based on both Lewin's work and Rogers' Diffusion of Innovations theory.
The four stages of the Stage Theory are:
1) Awareness of a problem and possible solutions.
2) Decision to adopt the innovation.
3) Implementation that includes redefining the innovation and modifying
organizational structures to accommodate it.
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4) Institutionalization or making the innovation part of the organization's ongoing
activities.
There has been less research on the factors that influence how an organization moves from
one stage to the next and more research on the activities that occur during each stage.
Different leaders or "change agents" within the organization assume leading roles during
different stages. Strategies that organizations use depends on their stage of change and
whether the nature of the social environment surrounding the innovation is supportive or
otherwise.
Motivation
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish
the goals. In the work goal context the psychological factors stimulating the people’s
behaviour can be - desire for money, success, recognition, job-satisfaction, team work, etc
One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore the role of a leader is to arouse
interest in performance of employees in their jobs. The process of motivation consists of
three stages:-
1. A felt need or drive
2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of goals.
Therefore, we can say that motivation is a psychological phenomenon which means needs
and wants of the individuals have to be tackled by framing an incentive plan.
Motivation is a very important for an organization because of the following benefits it
provides:
1. Puts human resources into action
2. Improves level of efficiency of employees
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3. Leads to achievement of organizational goals
4. Builds friendly relationship
Classical Theories of Motivation
The motivation concepts were mainly developed around 1950’s. Three main theories were
made during this period. These three classical theories area)
Maslow’s hierarchy of needs theory- Human behavior is goal-directed. Motivation
cause goal-directed behaviour. It is through motivation that needs can be handled and
tackled purposely. This can be understood by understanding the hierarchy of needs by
manager. The needs of individual serves as a driving force in human behaviour.
Therefore, a manager must understand the “hierarchy of needs”. Maslow has
proposed “The Need Hierarchy Model”.
The needs have been classified into the following in order:
1. Physiological needs
2. Safety needs
3. Social needs
4. Esteem needs
5. Self-actualization needs.
b) Herzberg’s Two factor theory- In 1959, Frederick Herzberg, a behavioural
scientist
proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg,
there are some job factors that result in satisfaction while there are other job factors
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that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is
“No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.
c) Theory X and Theory Y- In 1960, Douglas McGregor formulated Theory X and
Theory Y suggesting two aspects of human behaviour at work, or in other words, two
different views of individuals (employees): one of which is negative, called as Theory
X and the other is positive, so called as Theory Y. According to McGregor, the
perception of managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever
possible.
Since the employee does not want to work, he must be persuaded, compelled, or
warned with punishment so as to achieve organizational goals. A close supervision is
required on part of managers. The managers adopt a more dictatorial style.
Many employees rank job security on top, and they have little or no aspiration/
ambition.
Employees generally dislike responsibilities.
Employees resist change.
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An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
Employees may not require only threat, external control and coercion to work, but
they can use self-direction and self-control if they are dedicated and sincere to achieve
the organizational objectives.
If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
An average employee can learn to admit and recognize the responsibility. In fact, he
can even learn to obtain responsibility.
The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of
the employees can be utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’ nature and
behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and
behaviour at work. If correlate it with Maslow’s theory, we can say that Theory X is based on
the assumption that the employees emphasize on the physiological needs and the safety
needs; while Theory X is based on the assumption that the social needs, esteem needs and the
self-actualization needs dominate the employees.
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MAPPING OF THE
CASE AND THE
PRINCIPLES OF
ORGANIZATIONAL
BEHAVIOUR
ORGANISATIONAL CHANGE
At TCS, OC has contributed immensely towards redefining the organization’s relationship to
its markets, key stake holders and environment. To add to this OC brought about a drastic
change on the cultural perspective.
In the years, despite the fact that TCS had emerged as the largest Indian software company it
still suffered on its operational side.
 The expertise was diffused and in order to meet the needs the employees were rotated
across domains and skills. A lot of emphasis was paid to the Voice of the Customer, in
comparison to the Voice of employee
 Managers mainly focused on short-term projects instead of concentrating on long
term ones. They followed a reactive approach and hence lacked a proactive approach.
 Lack of focus on innovation and experimentation.
 Absence of a formal system where in the knowledge could be shared for ease
of
replication across projects.
 Absence of team based rewards as focus was on individual performance .
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 Absence of endeavors towards Image building which lead to greater difficulty in
attracting quality talent.
By 2002, the need to align with the market, customer and business requirements was felt at an
organizational level and hence a OD intervention was sought.
REALIGNMENT AND RESTRUCTURING AT TCS
As the market decides the strategy to be adopted, structure decides the form, technology
decides capacity and synergy in output comes from the culture, an organizational design is
needed to carry all these together in a holistic manner.
Alignment and Attunement:
The four voices: voices of the employee, customer, technology and wealth need to be attuned.
Hence factors like resource allocation, team-work, learning opportunities for individuals and
teams, factors that would increase productivity were paid emphasis on.
Goal Alignment & Balanced Scorecard
- Importance to goal alignment was now understood & various means to institutionalize
goal-oriented performance management (from the institution to individual levels)
were considered.
- The concept of the Personal Score Card was introduced wherein the goals, tasks of
each individual was assigned. The Balanced Scorecard approach was proposed which
talked about: Shareholder (Financial Goals), Technology (Quality, Cost), Customer
(Customer Satisfaction), and Employee (Learning & Development).
- Regular online workflow reviews were carried out to track individual performance
against stated goals. On the basis of these the rewards and incentives were designed.
- Focused Career Planning and the Mentoring process were also put in place for the real
talent in the organization.
Account Excellence Programme (AEP)
This dealt with 7 key categories e.g. leadership, Strategic Planning, Customer and market
focus,
Measurement, Analysis and Knowledge Management, HR Focus, Process Management and
Business Results.
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The AEP has mainly talked about quality, service, cost and cycle time by benchmarking:
 Meeting all customer requirements
 Minimizing variances in processes
 Elimination of waste
 Efficient Product Service
 Continuous Process Improvements
Darpan
The presence or lack of communication or the lack of it became one of the biggest hurdles in
employee motivation and managerial decision-making during the aggressive expansion
strategy. In response to this Darpan, was initiated (objective to Reflect and Improve). A
Questionnaire was prepared to collect the preliminary data which included capturing
associate feedback across 5 categories: Career &Job, Communication, Culture & Pride,
Leadership and Supervisor.
Outcomes from Darpan
Increase in the Associate Satisfaction Index (ASI)
Increase in Customer Satisfaction Index (CSI).
Teams were now able to associate themselves with the bigger picture of an
organization i.e. their contributions that added value to the customers and the
organization.
Lower attrition
A transparent culture was encouraged.
High focus on Corporate Social Responsibility (CSR)
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MOTIVATION AT TCS
Employees’ satisfaction level is high with the motivating approach of TCS. Top management
in TCS on greater scale is interested in motivating employees. Most commonly promotion
and appreciation letter as incentives are most motivating for employees in TCS. Performance
appraisal system is motivating for employees in TCS. Performance appraisal of employees
always takes place in TCS. Most commonly employees always get feedback from
performance appraisal in TCS. Definitely in most cases employees in TCS always get
increment after performance appraisal. Most commonly promotion of employees and
motivation should be the focus of performance appraisal in TCS. Generally merit as method
of performance appraisal is chiefly implemented in TCS. Employees in TCS on greater level
would prefer to receive any increment in their salary after performance appraisal. In most
cases performance appraisal helps employees in TCS set and achieve meaningful goals.
Performance appraisal gives employees in TCS constructive criticism in a friendly and
positive manner. Performance of employees in TCS improves after process of performance
appraisal. Performance appraisal improves motivation and job satisfaction of employees in
TCS. 360 degree performance appraisal is motivating for employees in TCS. 360 degree
performance appraisal of TCS requires to be most focused on roles and leadership.
COMPENSATION MANAGEMENT IN TCS
TCS follows a model which is far ahead of other traditional system, which is Economic Value
Added (EVA). It is not just any reward structure, but an integrated management process
aimed at achieving long term goals, instead short term. It makes sure that the unit performs in
a sustainable and increasing manner. So in the same way every individual employee would be
able to improve his/her performance considerably.
TCS' compensation management system was based on the EVA model. With the
implementation of Economic Value Added (EVA)-based compensation, the salary of
employees comprised of two parts – fixed and variable. The variable part of the salary was
arrived after considering business unit EVA, corporate EVA, and also individual performance
EVA. EVA is calculated as net operating profit after taxes minus a charge of the opportunity
cost of the capital invested. The variable component in the salary structure of an individual
also depends on the rating that he receives on a scale of 1-5 (D-A).
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Welfare benefits for full-time employees include subsidized Housing and other loans,
medical facilities, retirement benefits, transportation, canteen facilities, overseas allowances,
family events (picnic, treks, cultural events), on premise bank extension counters/ATMs,
Helpdesk facilities, flexible working hours, assistance in school admissions, holiday homes,
magazine subscriptions, overseas travel reimbursement for paper presentations and maternity
leave for adoption.
TCS recognises that investing in its people is a key to the sustainability of its delivery model
by generating employee satisfaction and minimising the attrition rate. One aspect of this is
the culture of learning throughout an employee’s development lifecycle and TCS invests
around 6% of its profits in L&D. The L&D centre, at Trivandrum, India, was established in
1998 to deliver its training requirements. It has18 classrooms, a library, an auditorium, a
conference hall, discussion rooms, and about 300 personal computers connected to servers.
All full-time employees of TCS, including all support groups, receive half-yearly career
development reviews. All new employees, in the first year of their employment, receive
quarterly reviews. At the end of every assignment, employees may also receive formal project
and reviews.
Employee Engagement
Employee inputs are solicited through the annual survey called PULSE, conducted through
the Company’s digital portal, Ultimatix. Opinion polls, Proactive Employee
Engagement Programme (PEEP), open-house sessions, Process Improvement Proposals
(PIPs), grievance mechanisms, and exit interviews are some other mechanisms to solicit
feedback from employees. Cross-Functional Teams (CFTs) of local Admin, HR and
employees are deployed for seeking the feedback. To ensure appropriate client site work
environment, our work contract provides a baseline, and HR regularly liaisons with client
support groups. Some channels of
Employee Engagement in TCS is:
 Speak Up: Speak Up is a platform for employees to discuss pertinent matters with the
Company’s seniors and to bring themselves closer to the Company and its
management; thus developing the channels of communication between employees and
the Company’s top executives.
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 Grievance Redressal System: Employee grievances are logged through a
centralised
grievance redressal system. Branch Grievance Coordinators and the Corporate
Grievance Process Lead perform weekly and monthly reviews to ensure quality
grievance resolution by the Human Resources Team within the specified timeframe.
Ethics Counsellors at regional and corporate levels also play a key role in handling the
sensitive grievances.
 PIPs: Employees can log PIPs through a link in Ultimatix. To encourage employee
participation in the endeavour, the ‘Best PIP’ award is given annually.
 PEEP – Mentoring: PEEP is a mentoring initiative in which employees connect oneon
one with TCS’s senior management.
 Propel: Propel provides a forum to discuss issues and ideas, to promote the ideas and
to resolve issues at inception level itself. Propel covers all employees across TCS.
Camps and confluences are conducted for problem solving, discovery of new ideas,
dialogue, reflection and fun. Through these sessions, the employees are provided a
platform for learning, interacting and problem solving.
 PULSE: PULSE is the company's annual Associate Satisfaction Survey, undertaken
every year to measure and understand the TCS Associate's attitude, opinions,
motivation, aspirations and satisfaction. Through PULSE, TCS attempts to find out
opportunities for improvement, invite suggestions, ascertain shortcomings, design
appropriate plans, which finally conclude in action. The steady rise in the Associate
Satisfaction Index (through PULSE) is an indication of TCS culture and care for its
associates.
 Stress Management: The IT industry is known for its high-pressure work atmosphere
and long working hours, which create high levels of stress. TCS encourages its
employees to de-stress by participating in Fun@Work which is a term used across
TCS to refer to any activity or programs that is conducted during work. Fun@Work
Committees are formed across accounts which organise, picnics, parties and gettogethers
with fun and games.
Annual picnics take place in each region that gives TCSers spread across a region to come
together and celebrate with their families and colleagues.
Performance Appraisal
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TCS conducts appraisals twice a year.
 At the end of the year
 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
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 weight 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”. Employee utilization rate in TCS is about 76% that is highest in the industry.
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
predetermined criteria.
What deserves special mention is the active participation of the senior management in the
determination of guidelines for the performance appraisal process.
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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.
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SUGGESTIONS AND
LEARNINGS
In the last 8 years, TCS has twice seen a rising in its top brass. S. Ramadorai had been
leading TCS since 2004. Due to his sharp acumen, he put TCS on the growth path. During
this period it had evolved from a $2 billion to a $6 billion dollar company.
Change in guard during October 2009 when N.Chandrasekharan was replaced as CEO of the
company. The current CEO was elevated to the post of executive vice-chairman. This change
of guard resulted in TCS entering the Fortune 500 list in 2013-2014 with revenue of around
$11 billion. This phase of TCS under a new leadership will script a new chapter in the success
story of Indian IT industry.
We now explore the role of training in change - by moving a step ahead from the traditional
approach - from knowledge transfer to competency development and to organizational
change and how it is something that other companies can learn from TCS.
TCS provides the opportunities for organizational change through training as four different
windows and this something that other IT firms can learn from. Each of these provides a
view, which illustrates a key component of organizational change that can be addressed
through training.
i. Association: This focuses on how to include the users during preparation for training
and provide them with the opportunity to be vocal about their expectations and needs.
If this window is shut, users fail to see the association with training and remain
passive receivers.
ii. Expectation: This refers to managing the expectations of users on the process and
system changes. Several components of the solution remain a makeshift arrangement
during the solution design phase that surface during training. These points must be
identified and communicated clearly to the users to prevent mismatch in expectation
and the resultant disappointment.
iii. Holistic: This enables users to view the end-to-end picture of the solution, the
linkages, dependencies and future processes. If this view is missed out in training,
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participants’ understanding of the overall business objective and benefits remains
incomplete.
iv. Enthusiasm: This focuses on those elements of training that can generate excitement
in the learning process. A “wow” experience in the beginning may go a long way to
create a positive impact for change.
At TCS, work has to be challenging and the employers have to keep the employees
motivated. TCS allows rotation and faster ones are in the pipeline. This method that TCS
undertakes is a very useful method for the retention and motivation of its employees.
Rotating the projects on which the employees work, in almost every two years, helps the
employees to explore new options and also saves them from boredom, thereby providing the
company with motivated employees on every project.
By curtailing the duration an employee works on a project to around a year, TCS can find a
place among "the most flexible companies to work" in the Indian IT sector.
Rotating the personnel among projects swiftly, those working onshore and offshore, can help
lower attrition rate in big IT companies like TCS as it is difficult for them to modify benefits
or salary composition frequently.
"It could help lower attrition since being unable to get off a project does cause people to
leave," said an analyst with a Mumbai-based brokerage firm.
"But if they bring down minimum time spent on a project too much, it could upset clients,
who typically prefer the people on their projects to stay for a while," the analyst added.
The Mumbai-based TCS said that it would offer training to more than 1 lakh employees this
year in the fast growing digital technologies. It aims to increase its revenue from digital
segment to $5 billion over the next five years.
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SUGGESTED CHANGES IN THE ORGANIZATION DESIGN AT TCS
STRATEGY:
IT business in India is saturated with players which follow a cost leader strategy. The
increasing margin and time pressure from clients warrants that TCS shifts its strategy
from that of a cost leader to differentiator. This would help TCS to target projects
which are high on value chain.
Lack of a structured approach to evaluate, imbibe and disseminate the best practices.
Although it has an understanding of its competitive position, but the measurement,
assessment and impact of the threat is not well defined.
Though the short-term horizons have been addressed the organizational strategic
objectives in the long term have not been much taken care of.
STRUCTURE :
TCS needs to have organically driven structure which would foster collaboration and
team work. Cross functional teams are necessary to deliver products which are above
the value chain. The environment is highly uncertain, unstable or subject to vary rapid
changes in market conditions. There is a need that personnel are empowered to make
decisions and resolve problems themselves.
REWARDS:
The reward system must be congruent with the structure and processes to influence
the strategic direction. Reward systems are effective only when they form a consistent
package in combination with the other design choices. The reward system at TCS has
to change from individual to team based. Incentive for the employees to perform as a
team needs to be there for delivering superior products.
Lack of alignment in the results of the performance analysis with business results and
objectives.
The performance projections for measures and indicators have not been fully evolved,
the absence of these measures. This hampering the goal setting process .
PROCESSES :
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TCS needs to have horizontal processes, also known as lateral processes. It is
designed around the workflow, such as new product development or fulfillment of a
customer order.TCS should build a culture of encouraging thinking &creating forums
for dialogue, while encouraging leadership at all levels as the attributes of Customer
Satisfaction measurement show some degree of variance to that of the stated
customer’s key expectations.
. Risk taking, expressing differences and constantly generating new knowledge should
be encouraged among the employees.
The lack of integration of process improvement initiatives such as PROPEL, PEEP
etc., which influence the associate, work environment.
The absence of a well-defined approach to evaluate the cost effectiveness of
digitization process.
Monitoring and tracking of customer satisfaction metrics is done only at individual
customer levels. Monitoring at corporate level will help in improving its overall
building processes analysis thereby giving it a competitive advantage .
PEOPLE:
Human resource policies also build the organizational capabilities to execute the
strategic directions. The employee needs to be given autonomy and control over their
work which would help in encouraging creativity. Valuing of employees should be
institutionalized through establishing processes that enable and enhance individual
performance.
The productivity levels of people is lower than that of its competitors majors so
improving an employee’s realization would enable it to achieve its stated vision
Enterprise solutions and process improvements programs often “fail” because corporate
strategic objectives are misunderstood, or because processes and systems are not aligned with
your business imperatives. TCS’ Business Process and Change Management solutions
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address these gaps by first clarifying your strategic objectives and business requirements
before developing a target operating model that will realize your goals.
The TCS Advantage
TCS’ Business Process and Change Management Consulting Services provide you with
unparalleled expertise in business model and technological innovations. Our holistic
approach will enhance your business efficiency and help you to achieve a true competitive
advantage.
TCS focus: To make change happen successfully.
Our clients specifically value our consultants’ extensive and diverse experience in IT,
strategy, and business process reengineering and change management.
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BIBLIOGRAPHY
Interview of employees from ‘TATA CONSULTANCY SERVICES, KOLKATA’
http://www.yuvajobs.com/company/tcs/index.asp
http://kolkatablogs.blogspot.com/2006/12/tcs-culture-and-training.html
http://economictimes.indiatimes.com/Infotech/ITeS/UK-legal-firm-LG-staffs-railagainst-
TCS/articleshow/4223180.cms
http://infotech.indiatimes.com/articleshow/msid-153973,prtpage-1.cms
http://www.coolavenues.com/know/hr/eldos-tcs-2.php
http://www.expressindia.com/news/messages.php?newsid=62949&from=0
http://www.payscale.com/research/UK/Employer=Tata_Consultancy_Services,_Ltd./S
alary/sho
w_all.http://www.payscale.com/research/US/Employer=Tata_Consultancy_Services,_
Ltd./Salary
www.tcs.com
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