dec 28 , 2011

Management consultancy division was made part of TCS Adopted EVA (Economic Value Added) compensation system in 1999 TCS adopted TBEM(Tata Business Excellence Model) based on Balanced scorecard approach. TCS became 1st Indian Company to implement PCMM(People Capability Maturity Model) level 4 which was improved to PCMM level 5 in 2005.

Ranked Very High in Employee Satisfaction compared to its competitors by Data Quest in 2004. TCS had lowest attrition rate, employee turnover rate was only 7.9% in 2004, against the Industry rate of 15%. Forced employee retention through Bonus Bank 1000 employees were laid off on the basis of poor performance over 2 years in 2005-06.

Leadership

Strategic Planning

Business result

TBEM

Customer & market focus

Process Managem ent

Human Resource Focus

Knowledge managem ent

Adopted Waterfall Selection Process and Centralized Training System Mixed Control system
EXTERNAL Reward System. Training For performers Poor INTERNAL Empowerment Of Employees Emphasis on Team Work

Compensation Structure of EVA.

Employee Value Addition 40% 50% 60% 60% 50% 40% Bottom Level Esteem Needs Reputation concerns Top level Department Value Addition Enterprise

Technical skills

Conceptual skills

Top level

Bottom Level

Basic Needs

EVA was based on Cost, Revenue and Capital Involved in Units. Employees got compensation on the Basis of Unit performance, if unit did well employee will also get high benefit.

Start EVA compensation on project basis. Competitiveness among Employees to perform better so to grab better projects.

Adopted lay off policy, which resulted in:

 Negative perception about company {across
industry only 3.6% employees considered TCS as their Dream company.  Fear to loose potential performer, who was

working with underperforming team.

Conducting Exit interview, to retain the potential performer Outplacement of employee, if possible. It would help them in keeping its reputation up.