Hr Practices In Tcs Management Essay

Vamsee Krishna Kamisetti (4640314)

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Introduction
The Tata Consultancy Services Ltd(TCS) is basically an information technology service,
consultant and business oriented company. It is operated in North and South Americas,
Middle East, Europe and Africa. Its headquarters is located in Mumbai, India. It possesses
a significant position in the market across the globe providing competitive advantage to
its competitors.

TCS have a standard set of practices for maintenance of its HR practices. It is closely
linked with the business strategy by planning it according to the structure of the
company through the support given by innovative HR practices. Throughout the
European countries, it is considered as the best employer with the lowest attrition rate
of 9.9%. The company is known for the overall development imparted to its employees
which also offers multi-lingual training concepts.(tcs.com)

The seven HR practices explained by Pfeffer in application to The Tata Consultancy

Services is described below in detail.

HR Practices in TCS

Employment/Job Security:
TCS is a good base to work at, specially for freshers because they find it easy to work as
they are given good opportunities under comfortable and cosy environment. Working in
TCS, it feels like working in a government organization. Employees get high job security
and fear less for losing the job as this company has low rate of job removal even during
recession. The company provides further opportunity to employees who perform low in
order to improve by offering learning and enhancing programs.

Compared to other IT companies, TCS accounts for lowest employee turnover rate. This
is because most of the employees stay employed with the company for a long period of
time as they find their job not only comfortable but also secured. The environment is
very friendly and the company has a plan to improve performance of employees who
face problems regarding understanding of processes. TCS aims in both personality and
career development which is very advantageous for the improvement of employees
skills and knowledge. The HR practices followed by this company is determined in
understanding people's ability for managing them right from sourcing to deployment
which means in regards to scalability.

The employees working in this organization feel very secure because they are given long
periods to work where they have fixed contracts and have flexibility to work in shifts.
Ambitious employees are given chance to study overseas where they are provided with
visas and long-term leaves. All employees sign a contract while starting to work with a
company which will last for a period of two years and after that they are considered as
permanent workers.

Recommendations:
It is recommended for the company to work on satisfaction of senior employees as it is
seen that freshers are given vital importance in this industry while the seniors are given
much attention. This is resulting in losing senior staff which is not good for the
company's growth as the most experienced employees who work with enough
knowledge and skills are moving out of the company. It is advised that the company
should focus on attracting the experienced employees by introducing some policies
related to their growth and satisfaction.

It is also observed that in case of new joiners, when there are lack of projects to be
assigned to the employees, they keep them on bench for a long period which is a waste
of time for the employees as their experience is not taken into account while on bench
until and unless they are forwarded to work over project.

Selective Hiring:
Human resource plan is required by the firm which is prepared according to the firm's
processes. Hiring of candidates is the most important task to be done in a procedural
manner for selecting the best candidates among many applicants as Pfeffer described
clearly that recruitment of right people is to be done firstly for obtaining profits. In
today's management, this is known as identification of talent and acquisition.
Companies have moved from traditional recruitment and practices of selection towards
online practices like interviews over telephone. In face-to-face recruitment, the selection
department conducts personal interviews where salary packages are discussed along
with many other important things.
TCS recruitment process is based on hiring policy which includes the mix of fresh and
experienced candidates.

Fresh Candidates - They are recruited and selected from academic institutions where
TCS has links with these institutions which is considered as a critical relationship.
Through communication with placement officers and fairs conducted, a large number of
candidates get attracted to apply.

Experienced Candidates - They are recruited by unit heads through various

consultancies and agencies sourcing candidates and through direct interviews. This
recruitment is carried out based on the requirements needed for a company which is
centrally coordinated to hire experienced professionals. (indoreservice.com)

Candidates are attracted to apply for positions through sources like advertisements
through websites and job portals, placement fairs, agencies, TCS data bank that is done
through combining the sourcing of resumes. Recruitment is also done locally from
geographical areas that the company operates.

Background analysis is done to every applicant who is checked on following basis:

Academics - All candidates applying to TCS are required to submit copies of their
academics right from their schooling to graduation or higher along with mark sheets
obtained in each level of their study. The official screening these applications would
then decide on forwarding the applications to further processing evaluating the
requirements of the position.

Former Employment - The experienced candidates are checked on the contact

information of their previous employers and based on the certificates stating their
experience and performance. They are also checked on submission of release letters and
pay slips obtained from previous employers.

Medical Examination - Every employee is subjected to a set of fitness checks which are
essential prior to the joining in the company. Check-ups like overseas services are also
conducted to candidates required to travel overseas on business purposes.
(asmedu.com)

Recommendations:
While recruiting candidates, it is recommended for the recruiting officers to test on their
group skills because employees are required to work in groups sharing and gaining
knowledge in and from the group. Therefore, group discussions must be included as
one of the phase during recruitment process.

TCS should not select a large number of candidates because in the recent years many
selected employees are on bench or either not given the joining date.

Self- Managed Teams or Team Working:

TCS assigns employees to work as a team or group in order to carry out processes in a
particular project. Each such team is given information regarding the requirements
needed to fulfil their work so that they can put efforts and use tools to manage their
work in a sequential manner. Each team is set a team leader who takes care of the entire
team and manages them to get the outcome. Some teams are interlinked with each
other where the team leads of each team interacts with one another and shares
information for helping each other. Finally all the team leads passes on their work to the
project leader. This improves work continuity and flow is carried out efficiently
throughout the work flow.

During the training period, the freshers are assigned into group of two members who
work together and share information in order to accomplish work assigned to them. This
environment is created because the employees should be pre-moulded to work and
share in a group when they actually come to the work place.

There is diversity of work place with respect to culture, nationality, language is seen
widely in TCS. It is regarded as a common place to work for all such diversities without
any differences or attitudes. Cultural potpourri is promoted where people from different
backgrounds, cultures and geographies meet together to work on common issue. TCS
follows an open door policy where culture is open for everyone and anyone can involve
working in a team to play an important role. Global family identity to support and
encourage every employee and bring employees together like a family.

Recommendations:
IT is advisable to the company to be more strict in usage of language. People coming
from different cultures tend to communicate using their own language which would be
a barrier to others who do not understand those languages. People of same region tend
to form their own groups and communicate with their regional language which would
hurt feelings of other employees who do not understand. So, it must be made very clear
that everyone speaks only in English within the company premises.
There is very less exposure of company's information to the team members which would
lead in less trust and confidence towards the system as they are not aware of
performance of others in their team and remain confused if all employees of same
position are being paid the same.

High Pay Contingent on Company Performance:

Most of the companies do not focus much on acquiring resources but their main
concern is to utilize these resources in a profitable manner by achieving this through
employee's potential. Today, TCS is the best employer who has a structure for
compensation having only 5% of its pay with respect to performance. TCS is a company
that makes its employees work in a team to evaluate to decide on their pay as a team
but not individually. This does a lot of benefit as it does not possesses any rivalry among
the team members. Each such team is formed on the basis of trust, co-ordination, co-
operation, dependence among employees, spirit in the team etc. These qualities cannot
be maintained if an individual is greedy to discuss and share in a team. Rather he/she
should be concerned for the ultimate success of the team. This is the main reason for
TCS to follow such structures over compensation. So, the reason for the success of
employees satisfaction lies for the high compensation structure. It follows the principle
of good harnessing the potential of employees in the company.

In order to decide the best type of compensation to follow in an organization, there

should be knowledge of job profile and it's area of application in business. As a
manager is paid for his leadership qualities and competencies such as managing power
and team building, a person working as a software developer should also be awarded
for his/her work on the basis of hours of working and skills. So, every employee must be
paid according to the performance, skills they possess on their respective work.

TCS uses the EVA model(Economic Value Added) to measure performance and bonus
focussed on the goal to align people to the mission of the corporate creating a specific
culture for empowering the force of work in order to build ownership.

Recommendations:
The EVA model practised by TCS suffered from criticism during the starting years of its
implementation because it is mainly concentrated over return on investments that
would result in the restricted growth of TCS. It is also noted that there is a decrease of
10% of salary for TCS employees in the year 2003. This reduction would result in
employee dissatisfaction as they would take less pay home. It is advised that the
company should change the model in a more effective way keeping employees in mind.
Extensive Training:
Training in TCS starts immediately on the first day of join in the organization which
continues for a period of three months. Training is given throughout the entire period of
work in the company, that is, from the training period till the end date of work in TCS.
Training is also imparted to the employees whenever new techniques or platforms are
introduced at any point of time while working in a project or at the start of the project.

Following are the different learning programs imparted to the employees throughout
the training session and while working.(coolavenues.com)

Initial Learning Program(ILP) - This program is designed to provide a friendly

environment by smoothening the shift from "campus to corporate". This allows the
transition of engineers of graduate level to consultants of information technology with a
world-wide mindset.

Continuous Learning Program(CLP) - This is designed for the growth of associates where
learning and sharing is the main value. These programs come from needs of the project,
strategical business, technology and direction of individual aspirations and access
through domains, processes and soft skills.

Leadership Development Program(LDP) - This program aims in turning its employees

into future leaders by carefully understanding their potential through branded
programs.

Foreign Language Initiative(FLI) - This helps its employees to communicate properly with
its clients where employees are encouraged to develop on foreign languages and also
emphasises in improvement of English for effectiveness of communication while making
business deals.

Workplace Learning - This encourages TCSers by providing all necessary initiatives

required to learn while working. To promote this, TCS has an extensive library where E-
learning courses and online books are available.(indoreservice.com)

Recommendations:
As Pfeffer emphasised that training should be given extensively for gaining overall profit
of an organization, TCS should work more on training its employees prior working. The
starters need more extensive training because some of the concepts required during
project are completely new and the freshers do not have enough knowledge on those
concepts to work on. Specially, people are being selected without software background
which is difficult for them to survive as they are not aware of software tools and
programming languages.

Reduction of Status Differentials:

TCS visions to equip all its employees with proper resources so that they all work as a
family irrespective of position, salary, region, sex and status. Every individual is given an
equal opportunity to develop themselves and share views and ideas. They are allowed to
make innovative designs and work on research right from the first day of work. Everyone
is supposed to follow a discipline throughout the work floor whether it be a starter or a
manager. It is required for every employee to be formal and swipe a unique identity
card everyday to indicate their presence.

All the employees are required to learn behavioural manners like dinning, greeting
manners and can have the freedom of enquiry from their respective supervisors. The
junior employees have a privilege to communicate directly with the mangers in case of
any position discrimination practice shown by their seniors.

While working in a team TCS ensures that the team leader of every team should manage
the team in such a way that there should not be persistence of attitudes between the
team workers. Every team member is treated the same way and appreciated for
outstanding performances. The team leader encourages and motivates team members
to support among themselves so that they can achieve their target through co-
operation.

Recommendations:
The main problem encountered in TCS is that on-site work opportunities are mainly
given to employees belonging to a particular region ignoring the others who put equal
efforts. This kind of regional liking and promotion should be demolished and such
mangers who are responsible for such causes should be checked periodically and
penalized.

The management is strict towards junior employees in terms of following dress code.
Juniors are regularly checked if they are maintaining the prescribed dress code and if
not they are penalised whereas the senior employees are not checked and they behave
liberal even if they do not follow rules. This should be taken care of as measure of
equality.
Sharing of Information:
This is promoted to motivate people for enhancing performance of the entire
organization in some dimensions and know the use of interpreting information as
explained by Pfeffer. TCS emphasises on working in a group instead of individually
performing as this attempt would take a lot of time and the case would be worse in case
of mistake either in a part of work or completely.

TCS supports a portal where people can communicate each other to share information.
This is done through a chat application called "same time" where people across the
company chat and share information with each other instantly. Information sharing
could be done only through emails to communicate with each other which is TCS
domain enabled. Moreover, access is limited only within ODC(Offshore Development
Centre) where people work for the same project in distinctive teams. The associates are
not given access to this outside the work floor.

There are some interactive applications available in a portal supported by TCS known as
"Ultimatix". For instance, there is an application called "Justask" where TCScers can login
using their identity can pose a question regarding any enquiry that they want to be
answered. These questions can be answered by any TCS employee.

Recommendations:
Although there is a huge emphasis on sharing information by promoting portals, the
employees should be even more told about the outcome and benefits of sharing and
exchanging information. This can be done through conducting regular meeting and
seminars on information sharing in order to create awareness among employees in
regards to privacy and transparency issues. There should also be programs encouraging
people to meet and know each other to create a friendly environment in order to trust
each other and share and gain knowledge.

Conclusion
Considering TCS with respect to human resource management, the company is doing
good in practicing Pfeffer's seven practices and the company is making huge efforts in
delivering various methods and processes in increasing growth of the organization.

TCS is working great on providing satisfaction of job to its employees but it should be
keen in understanding the fact that senior officers are not very happy for continuing to
work. It should be taken care that only selective candidates capable of the position to be
filled should be offered the job.TCS must make the rules strict for the use of language as
regional language use is still being practiced. Pay must be higher to encourage
employees to work without worries and training importance must be delivered
effectively. Treatment of every TCSer should be the same and employees should be told
the importance of information sharing.

TCS reworks its HR strategy to deliver right

here, right now
TCS is adopting enterprise-wide Agile, a new delivery model that is focussed on
delivering outsourcing projects in increments within short durations.
By 
Megha Mandavia
, ET Bureau|
Last Updated: Jan 24, 2018, 03.18 PM IST
6Comments
Save
Agencies

TCS is also changing the way it budgets for workforce

planning by involving business heads and being continuously flexible about hiring budgets.

MUMBAI: Tata Consultancy Services (TCS NSE 0.67 % ) is overhauling its human resource

strategy as India’s largest software services exporter delivers outsourcing projects
through a new shorter and quicker delivery model demanded by clients today.

TCS is adopting enterprise-wide Agile, a new delivery model that is focussed on

delivering outsourcing projects in increments within a well-defined short duration. Agile
teams are typically sets of smaller teams who work on a finite set of clearly defined
items. The teams’ goals and composition change as the project evolves.

"Agile projects get funded for smaller periods of time,” CEO Rajesh Gopinathan told ET.
“Agile impacts core processes. Budgeting is one, human resources is another. How are
you going to measure people as they are doing small-small projects. How will
accountability get fixed? How do you define scope?"

Agile is changing the way TCS measures the performance of its employees,
manages talent development and budgets for recruitment. Previously workforce
planning and budgeting, and goal setting were easier to do as IT projects were longer
and more predictable in nature.

"It is more continuous feedback through product manager on changes and

deliverables," said Ajoy Mukherjee, EVP-human resources at TCS. "The entire
workforce is being trained in Agile methodology. Younger workforce is more aware of
the way it works. The challenge is mid to senior level people to also appreciate this
process because they are accustomed to doing things in a specific way."

TCS is also changing the way it budgets for workforce planning by involving business
heads and being continuously flexible about hiring budgets. Total employee count at
TCS at the end of December stood at 390,880 on a consolidated basis, making it the
biggest IT firm by employee strength.

"How do you plan the entire workforce. That is why you are seeing we are controlled...
given the requirement, how do we do more Just In Time (recruitment) and get right kind
of skills," said Mukherjee. "We are getting the business fully involved in the whole
workforce planning side, so we do not end up hiring the kind of competencies we may
not need for a long time."

Learning and development is another major area that is going through the change at
TCS. The company is moving certain people from business functions to talent
development so they can bring in the right expertise.

"There is cross functional movement, so people from business have moved to talent
development space to a certain extent, so they can bring in that expertise. The
technology and products with which we have to work today are far more than what they
used to be. So, we need to have continuous upgradation of competencies," said
Mukherjee.

Tom Reuner, senior vice president-intelligent automation and IT services at HfS

Research, said Agile is changing the way work is done but it could be a double edged
sword for employees.

"Employers globally are looking at drawing employees on ad hoc basis as everyone

wants to reduce the fixed cost of personnel. Employees need to reinvent themselves
continuously with relearning and new skillsets," he said.