" " Dissertation: A Comparative Study On Employee Engagement Initiatives in HCL and TCS
" " Dissertation: A Comparative Study On Employee Engagement Initiatives in HCL and TCS
" " Dissertation: A Comparative Study On Employee Engagement Initiatives in HCL and TCS
Dissertation
SUBMITTED FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF
DECLARATION
I Amisha Agrawal a student of Amity Business School, Amity University Rajasthan have completed the project on A comparative study on employee engagement initiatives in HCL and TCS for the academic year 2010-2012. The information given in this project is true to the best of my knowledge.
AMISHA AGRAWAL
This to certify that Amisha Agrawal (Bearing Enrollment No. A20001910060) a student of Master Of Business Administration (MBA-General) , class of 2012, Amity Business School, Amity University Rajasthan has done the Dissertation Project under my guidance for the project A comparative study on employee engagement initiatives in HCL and TCS . This project report is prepared in partial fulfillment of Master of Business Administration (MBA) to be awarded by Amity Business School, Amity University Rajasthan.
Date Place
ACKNOWLEDGEMENT
I wish to express my deep sense of appreciation and gratefulness to all those persons whose help and guidance contributed a lot in accomplishing this project. I am grateful to Dr. R. S. Rathee, faculty and my guide for his able guidance. I would like to thank him for the constant encouragement given to me in understanding and successfully completing this project. I am also highly indebted and honored to Mr. Anant Singhal, Project Head TCS and Mrs. Tanu Singhal, Project Head HCL for their timely support at various stages of the project. I would like to express my special thanks to my parents and friends for providing me help and cooperation whenever needed.
EXECUTIVE SUMMARY
The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The IT-ITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the IT-ITES sector, contributing substantially to increase in GDP, employment, and exports. The greatest challenge for the Indian IT companies today is to make optimum use of human resource is no doubt a critical feature in the success of the companies. Work related pressures and demand on the part of employees have been consuming too much time and getting into stressful situation. The present study focuses on the employee engagement initiatives taken up by the companies HCL and TCS where employees feel more committed to the organizational task and more emotionally involved with the work. The study further reveals what are those factors built in the job which lead to better engagement of the employees.
CONTENTS
1. 2. 3. 4. 5. 6. 7. 8.
Introduction Literature Review Research Methodology Company Profile Data Collection, Analysis and Interpretation Learning, Conclusion and Limitations Bibliography Annexure
LIST OF TABLES
Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Table Name
Analysis of work responsibility Value of participative views Leaders role Analysis of communication with boss Motivation received from superiors Analysis of professionalism Positivity towards the contributions of employees Importance of the job Opportunity to learn and grow Clarity of work expectations Analysis of facilities provided Receiving praise and recognition Analysis of care at work Encouragement for development Analysis of working relationship Performance management
Page No. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
LIST OF GRAPHS
Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Graph Name
Analysis of work responsibility Value of participative views Leaders as role model Analysis of communication with boss Motivation received from superiors Analysis of professionalism Positivity towards the contributions of employees Importance of the job Opportunity to learn and grow Clarity of work expectations Analysis of facilities provided Receiving praise and recognition Analysis of care at work Encouragement for development Analysis of working relationship Performance management
Page No. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
CHAPTER 1 INTRODUCTION
Employee engagement is derived from studies of morale or a group's willingness to accomplish organizational objectives which began in the 1920s. The value of morale to organizations was matured by US Army researchers during WWII to predict unity of effort and attitudinal battlereadiness before combat. In the postwar mass production society that required unity of effort in execution, (group) morale scores were used as predictors of speed, quality and militancy. With the advent of the knowledge worker and emphasis on individual talent management (stars), a term was needed to describe an individual's emotional attachment to the organization, fellow associates and the job. Thus the birth of the term "employee engagement" which is an individual emotional phenomenon whereas morale is a group emotional phenomenon of similar characteristics. In other words, employee engagement is the raw material of morale composed of intrinsic and extrinsic attitudinal drivers. Employee engagement was described in the academic literature by Schmidt et al. (1993). A
modernized version of job satisfaction, Schmidt et al.'s influential definition of engagement was
"an employee's involvement with, commitment to, and satisfaction with work. Employee engagement is a part of employee retention. This integrates the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer & Allen, 1991). Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. Thus Employee engagement is a barometer that determines the association of a person with the organization
Engagement is most closely associated with the existing construction of job involvement (Brown 1996) and flow (Csikszentmihalyi, 1990). Job involvement is defined as the degree to which the job situation is central to the person and his or her identity (Lawler & Hall, 1970). Kanungo (1982) maintained that job involvement is a Cognitive or belief state of Psychological identification. Job involvement is thought to depend on both need saliency and the potential of a job to satisfy these needs. Thus job involvement results form a cognitive judgment about the needs satisfying abilities of the job. Jobs in this view are tied to ones self image. Engagement differs from job involvement as it is concerned more with how the individual employees view his/her self during the performance of his / her job. Furthermore engagement entails the active use of emotions. Finally engagement may be thought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs.
When Kahn talked about employee engagement he has given important to all three aspects physically, cognitively and emotionally. Whereas in job satisfaction importance has been more given to cognitive side.
HR practitioners believe that the engagement challenge has a lot to do with how employee feels about the about work experience and how he or she is treated in the organization. It has a lot to do with emotions which are fundamentally related to drive bottom line success in a company. There will always be people who never give their best efforts no matter how hard HR and line managers try to engage them. But for the most part employees want to commit to companies because doing so satisfies a powerful and a basic need in connect with and contribute to something significant.
Research Objectives
To learn about the initiatives taken by IT companies towards employee engagement. To get an insight into the degree of engagement and its importance. To have comparative view on employee engagement in HCL and TCS.
Employee Engagement Employee engagement, also called worker engagement, is a business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about their work, and thus will act in a way that furthers their organization's interests. According to Scarlett Surveys, "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn and perform at work". Thus engagement is distinctively different from employee satisfaction, motivation and organizational culture.
Categories of Employee Engagement Engaged "Engaged employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. They're naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward. Not Engaged Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their potential is not being tapped. They often feel this way because they don't have productive relationships with their managers or with their coworkers.
Actively Disengaged The "actively disengaged" employees are the "cave dwellers." They're "Consistently against Virtually Everything." They're not just not happy at work; theyre busy acting out their unhappiness. They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning. Importance of Engagement Engagement is important for managers to cultivate given that disengagement or alienation is central to the problem of workers' lack of commitment and motivation (Aktouf). Meaningless work is often associated with apathy and detachment from ones works (Thomas and Velthouse). In such conditions, individuals are thought to be estranged from their selves. Others have linked it to such variables as employee turnover, customer satisfaction - loyalty, safety and to a lesser degree, productivity and profitability criteria An organization's capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results. Some of the advantages of Engaged employees are
Engaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success. They will normally perform better and are more motivated. There is a significant link between employee engagement and profitability. They form an emotional connection with the company. This impacts their attitude towards the company's clients, and thereby improves customer satisfaction and service levels. It builds passion, commitment and alignment with the organization's strategies and goals. Increases employees' trust in the organization.
Creates a sense of loyalty in a competitive environment. Provides a high-energy working environment. Boosts business growth. Makes the employees effective brand ambassadors for the company. A highly engaged employee will consistently deliver beyond expectations.
A highly engaged employee will consistently deliver beyond expectations. In the workplace research on employee engagement (Harter, Schmidt & Hayes, 2002) have repeatedly asked employees whether they have the opportunity to do what they do best everyday'. While one in five employees strongly agree with this statement. Those work units scoring higher on this perception have substantially higher performance. Thus employee engagement is critical to any organization that seeks to retain valued employees. The Watson Wyatt consulting companies has been proved that there is an intrinsic link between employee engagement, customer loyalty, and profitability. As organizations globalize and become more dependent on technology in a virtual working environment, there is a greater need to connect and engage with employees to provide them with an organizational identity.
Drivers of Engagement Studies have shown that there are some critical factors which lead to Employee engagement. Some of them identified are
Empowerment
Image
Career Development- Opportunities for Personal Development Organizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them.
Career Development - Effective Management of Talent Career development influences engagement for employees and retaining the most talented employees and providing opportunities for personal development. Leadership- Clarity of Company Values Employees need to feel that the core values for which their companies stand are unambiguous and clear. Leadership - Respectful Treatment of Employees Successful organizations show respect for each employee's qualities and contribution regardless of their job level. Leadership - Companys Standards of Ethical Behavior A company's ethical standards also lead to engagement of an individual Empowerment Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward. Image How much employees are prepared to endorse the products and services which their company provides its customers depends largely on their perceptions of the quality of those goods and services. High levels of employee engagement are inextricably linked with high levels of customer engagement.
Other factors Equal Opportunities and Fair Treatment The employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and advancement to all the employees
Performance appraisal Fair evaluation of an employee's performance is an important criterion for determining the level of employee engagement. The company which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of employee engagement. Pay and Benefits The company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations.
Health and Safety Research indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate methods and systems for the health and safety of their employees.
Job Satisfaction Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job.
Communication The company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organization. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high.
Family Friendliness A person's family life influences his wok life. When an employee realizes that the organization is considering his family's benefits also, he will have an emotional attachment with the organization which leads to engagement
Co-operation If the entire organization works together by helping each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged. Employee perceptions of job importance According to a 2006 study by Gerard Seijts and Dan Crim, "...an employees attitude toward the job's importance and the company had the greatest impact on loyalty and customer service then all other employee factors combined." Employee clarity of job expectations If expectations are not clear and basic materials and equipment are not provided, negative emotions such as boredom or resentment may result, and the employee may then become focused on surviving more than thinking about how he can help the organization succeed. Quality of working relationships with peers, superiors, and subordinates If employees relationship with their managers is fractured, then no amount of perks will persuade the employees to perform at top levels. Employee engagement is a direct reflection of how employees feel about their relationship with the boss.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher to know not only the research method or technique but also can be the methodology. Researcher always needs to understand the assumptions underline various techniques and they need to know the criteria by which they can decide technique and procedure will be applicable to certain problem and other will not.
Research
According to P. V. Young Research may be defined as a method of studying, analyzing and conceptualizing social life in order to extend, modify, correct or verify knowledge whether that knowledge aids to construction of theory or in practice of an art. Descriptive research: Descriptive research includes serve and facts finding enquires of different kinds. It is a description of state of affairs as it exists; it is also called as ex- post-facto-research. Here researcher has no control over the variables what he does. He reports only what has happened or what is happening. The approach followed in this research was descriptive research.
Data Sources
There are two type data sources: 1. Primary data The data which are collected from the field under the control and supervision of an investigator is known as primary data. 2. Secondary data It refers to the data that is collected from some other sources, probably for similar purpose and already exists somewhere.
Research Approach
The research assignment under focus was aimed at gathering some vital information about the employee engagement initiatives taken in companies HCL and TCS. Among all the available ways, survey was the most feasible option to carry in the course of carrying out the research as it was more economical and keeping the limited time in hand it thus proved to be the best option. Survey was the best option as: It provides larger and faster coverage. Low cost is involved. Direct interface with people. The analysis can be done on the basis of structured questionnaire.
Research Instruments
The questionnaire is by far most common instrument used to collect primary data. A questionnaire consists of set of questions presented to the respondents for their answers. In research, carefully chosen questions and their forms, working and sequence is important. By considering all the facts the questionnaire was designed. This is type of structured questionnaire. This research consists of two paged structured questionnaire. It included general questions to gather information about the employee engagement initiatives taken up by HCL and TCS.
Sampling Plan
Sampling is a process of selecting a subset of randomized number of members of the population of a study and collecting data about their attributes. Method of sampling Random sampling The type of sampling is known as Trans sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the sample In this research random sampling has been done in order to choose the respondents. Sampling Units It gives the target population that will be sampled. This research was carried out in NCR. For this research target respondents were the employees of HCL and TCS. Sampling Size Large sample gives reliable results than small sample. But, it is not feasible to target entire population or even a substantial portion to achieve reliable results. This project maintained sample size of 50 respondents, who are the employees of IT Company. The questionnaire was administered for 25 respondents each for HCL and TCS.
HCL Enterprise
HCL was established in 1976 by Shiv Nadar, founder and chairman, headquartered in Noida, India. HCL is a $6.2 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing and a transformational enterprise, HCLs diverse range of hardware and software offerings span a wide array of focused industry verticals. The HCL team consists of 90,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India.
HCL Technologies
HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on 'transformational outsourcing', underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of 'Employees First, Customers Second' which empowers our 83,076 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, has reported consolidated revenues of US$ 3.9 billion (Rs. 18,334 crores), as on 31stDecember 2011
Vision
"To be the technology partner of choice for forward looking customers by collaboratively transforming technology into business advantage."
Mission
"We will be the employer of choice and the partner of choice by focusing on our stated values of Employees First, Trust, Transparency, Flexibility and Value Centricity."
Smart Service Desk (SSD) was introduced to make the enabling functions accountable to employees and resolve any issues that they may have within a stipulated time.
Directions, an annual interactive event, where the senior management along with the CEO meet employees to discuss company strategy, new processes and policies and what they think is the right agenda for HCL to adopt in the coming year.
U&I, an online discussion forum where every HCLite gets an opportunity to raise issues, share thoughts and ideas, as well as debate directly with the CEO.
Spot 360 Feedback was launched to make the management accountable to employees and to increase organizational accountability. A system where anyone could rate managers on various aspects.
Employee Passion Indicative Count (EPIC) assist employees in identifying their passion drivers - factors that drive an employee to excel at work.
HCL grew at a CAGR of 24 per cent Market cap increased by 186 per cent Number of $10 Mn, $20 Mn & $50 Mn customers doubled, and the number of $100 Mn customers tripled
Revenue per Employee is amongst the highest in the Indian IT segment today.
HCL has been featured as one of the most innovative and disruptive companies globally and was included in the First Ever Executive Dream Team published by Fortune; has emerged as the top ranking IT Services company in APAC, in Forbes Asia's 'Fab 50 List', and ranked in the Top 6 Global Service Providers by TCV across ALL 3 Geos (Americas, EMEA, APAC) according to TPI.
To help customers achieve their business objectives by providing innovative, best-inclass consulting, IT solutions and services. To make it a joy for all stakeholders to work with us.
Values
Leading change, Integrity, Respect for the individual, Excellence, Learning and sharing.
Percentage (HCL) 52 48 0 0
Percentage (TCS) 32 52 16 0
Interpretation: Some employees at TCS feel that their work responsibilities are not reasonable while at HCL the work responsibilities are reasonable. This shows that at HCL the employees feel more satisfied with their work and are more content resulting in higher retention at HCL.
Percentage (HCL) 20 64 8 8
Percentage (TCS) 24 44 16 16
Interpretation: Employees views and suggestions are valued in HCL more than in TCS. This proves the point that HCL has a more open culture, which shows emphasis on employee engagement activities and the employees feel free to bring up new ideas .
Percentage (HCL) 8 44 32 16
Percentage (TCS) 0 28 16 56
50
40
30
HCL TCS
20
10
Interpretation: Leaders in TCS are not the role models for the employees while in HCL to some extent some people see their leader as their role model. Emphasis in HCL is more on leadership oriented type of management.
Percentage (HCL) 64 36 0 0
Percentage (TCS) 20 64 0 16
Interpretation: HCL and TCS both have short power distance and open culture, thus showing that OCTAPACE culture exists in these organizations to some extent.
Percentage (HCL) 20 60 20 0
Percentage (TCS) 12 24 40 24
Interpretation: Superiors at TCS do not motivate their juniors much where as at HCL superiors motivate their juniors more. This motivation is an important advocate on employee engagement at the HCL.
Percentage (HCL) 8 80 12 0
Percentage (TCS) 28 48 24 0
Interpretation: People at HCL are more professional than at TCS. Higher level of professionalism implies better role clarity, open and more collaborative work culture.
Percentage (HCL) 20 72 0 8
Percentage (TCS) 32 28 8 32
Interpretation: At HCL employees contributions are received more positively than at TCS again proving the fact that at HCL the work environment is more open and people believe in experimentation.
Q8. Does the mission/vision of the organization makes you feel that your job is important?
Table 8 # Importance of the job
Percentage (HCL) 16 76 8 0
Percentage (TCS) 32 36 32 0
Interpretation: HCL mission/vision is clearer to the people and they know the importance of their work. Better understanding of the importance of work leads to better accomplishment of duties and responsibilities.
Q9. Does your organizations environment give you opportunity to learn and grow?
Table 9 # Opportunity to learn and grow
Percentage (HCL) 32 32 28 8
Percentage (TCS) 8 52 24 16
Interpretation: TCS provides more opportunities to learn and grow whereas HCL lacks at proper developmental schemes. Thus TCS has a learning culture which is an important attribute of the OCTAPACE culture.
Percentage (HCL) 68 24 8
Percentage (TCS) 0 92 8
Strongly Disagree
Interpretation: HCL employees have a better clarity about their work expectations while TCS employees need better understanding of their work expectations. Clarity leads to better accomplishment of duties and is a sign of highly productive work environment.
Q11. Do company provide you with enough material and equipment that is needed to do your work right?
Table 11 # Analysis of facilities provided
Percentage (HCL) 12 52 36 0
Percentage (TCS) 0 68 32 0
Interpretation: HCL and TCS both provide facilities to their employees to do their work right.
Q12. Do you receive praise and recognition for the good work?
Table 12 # Receiving praise and recognition
Percentage (HCL) 8 72 12 8
Percentage (TCS) 24 20 24 32
Interpretation: Recognition is given for good work at HCL whereas at TCS it not so much prevalent. Thus employees feel more motivated to perform better at HCL.
Percentage (HCL) 8 88 12 0
Percentage (TCS) 24 49 28 8
Interpretation: At HCL people care for each other while at TCS people are not so caring. The care shows the harmony at work which is a result of the higher clarity, trust and openness prevalent at HCL.
Percentage (HCL) 24 56 0 20
Percentage (TCS) 24 44 16 16
Interpretation: More encouragement is given to HCL employees than TCS to grow. Thus again proving the point that HCLs work environment is a learning environment, emphasizing on employees growth and development.
Percentage (HCL) 28 72 0 0
Percentage (TCS) 16 60 16 8
Interpretation: HCL has better working environment in terms of people and their relationships than TCS. Thus relationship orientation scales higher in HCL than in TCS.
Q16. Has someone in last six months talked about your progress?
Table 16 # Performance management
Percentage (HCL) 12 68 12 8
Percentage (TCS) 0 60 32 8
Interpretation: More importance is given to performance in HCL than in TCS. This shows that emphasis on performance management is high in HCL giving them a feel of being looked after by their employers.
LEARNINGS
The work responsibilities are more reasonable at HCL which make people feel more comfortable.
HR functions are well in place at HCL like performance management, reward and recognition which leads to higher motivation of employees.
At HCL, short power distance exist which reflect the open culture of the organization.
At TCS more opportunities are give to employees to learn and grow than HCL.
CONCLUSION
From the study it can be concluded that though TCS being a larger company by revenue than HCL, there is higher level of employee engagement at HCL. The following points validate the above statement: Employee turnover is more at TCS than HCL.
People of HCL are happier and more satisfied with the organization.
From the study it can also inferred that the culture at HCL is more similar to the OCTAPACE culture, which is a culture that emphasizes at the employee well being and employee engagement to a great extent.
LIMITATIONS
There are many drivers of employee engagement, so it was difficult to verify and evaluate each factor in this short span of time.
As it was not possible to cover every employee, only few employees were covered under the survey.
Through respondents are supposed to give correct information but as it depends entirely on respondents as at times they may be biased.
CHAPTER 7 BIBILIOGRAPHY
Books referred
CHAPTER 8 ANNEXURE
Choose the answer that describes how you agree with the following statements using the following key: 1 strongly agree, 2 agree, 3 disagree, 4 strongly disagree
Q9. The environment of the company provides me opportunity to learn and grow..
Q11. The company provides the material and equipment that I need to do my work right..
Q13. You feel that your supervisor or someone at work seems to take care about you
Q16. Someone at work during last six months talked about your progress.