TCS - HRM Assignment

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A Project on the HR Department of

Submitted By:

Group 7
Alistair Colaco - 1502
Avril Ferreira - 1507
Janet Palliparambil - 1521
Rhyecs Gaike - 1538
Rohit Biradar - 1540
Sarah Pasanna – 1545

(XIMR MMS 2020-22)

2nd Semester
Subject- Human Resource Management

Under The Guidance of –

Prof. Dr. Ravindra Dey

Xavier’s Institute of Management and Research


TABLE OF CONTENTS

1. HR DEPARTMENT STRUCTURE OF TC ................................................................................. 1

2. HISTORY OF TCS ........................................................................................................................ 2

3. BUSINESS OF TCS ...................................................................................................................... 4

4. HR PROCESSES AT TCS ............................................................................................................. 4

5. THE HR POLICIES AND PROCEDURES OF THE ORGANISATION ................................ 7

6. CHALLENGES TCS FACES WHILE IMPROVING HR POLICIES AND PROCEDURES 11

7. CHALLENGES THAT THE TCS HR FUNCTION FACES IN THE WAKE OF COVID ..... 14

8. CONCLUSION............................................................................................................................. 17
1. HR DEPARTMENT STRUCTURE OF TCS

• HR Vice-President: A VP of HR ensures the success of a company and its HR


department by developing and promoting effective HR strategies as well as directly
reporting them to the company CEO.

• HR Director: Handles the strategic vision of the HR department and approves all high-
level decisions.

• Recruiting Director: Works with hiring managers to create job listings, parse through
resumes, conduct interviews and extend offers while managing the applicant tracking
system.

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• Compensation Benefits Manager: Develops competitive pay and compensation
structures within predetermined budgets, manages core HR software systems and
ensures error-free payroll.

• Training Director: Works with department managers to develop effective training


courses that enhance skills, creates materials and assessments and manages any learning
management platforms.

2. HISTORY OF TCS

Tata Consultancy Services Limited (TCS) is a software service and consulting company
headquartered in Mumbai, India. It is the largest provider of information technology and
business process outsourcing services. It is part of one of India’s largest and oldest
conglomerates, the Tata group.

Tata Consultancy Services was founded in 1968 by a division of Tata Sons Ltd. Later they
established TCS as a division to service their electronic data processing (EDP) requirements
and provide management consulting services. One of TCS’s first assignments was to provide
punch card service 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.

In the early 1970's, 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, the Tata Research Development and Design
Centre (TRDDC).

In 1999, TCS saw an outsourcing opportunity in E-Commerce and related solutions and set up
its E-Business division with ten people. In 2008, the company went through an internal
restructuring exercise that executives claim would be about agility to the organisation. In 2010,
TCS became the second-largest company in the UK life and pensions third party administration
market after signing mega-deals with companies like Phoenix Group, National Employment
Savings Trust, and Friends Life. In 2018, TCS was recognised as one of the top three most
valuable brands in the global IT services industry, as well as the fastest growing IT services
brand. They were also awarded the Top Employer globally by the Top Employer Institute, and
Best Employers by Forbes. In 2020, TCS became the second Indian company to cross Rs 9
trillion market capitalization.

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TIMELINE OF ALL MAJOR MILESTONES OF TCS

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3. BUSINESS OF TCS

TCS is proud of its heritage as a part of the Tata Group, founded by Jamsetji Tata in 1868 and
one of India’s most respected institutions today. Their mission reflects Tata Group’s
longstanding commitment to providing excellence: 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.
Tata Consultancy Services full services portfolio combines traditional IT and Remote
Infrastructure services with knowledge-based services such as Consulting and Business
Process Outsourcing. The organisational structure of TCS is domain led and empowered to
help provide its customers with a single-window to industry-specific solutions. Agile industry
units have embedded capabilities to enable rapid responses that provide a competitive edge to
our customers.
TCS also provides products and industrial engineering services, as well as strategic
consultation and project management. The company is controlled by textiles and
manufacturing conglomerate Tata Group. TCS’ vision is to be among the 5 most admired
Information Technology Solution Providers globally with a leadership focus in the delivery of
products, solutions and services which are globally competitive.

4. HR PROCESSES AT TCS

TCS has developed an unbreakable bond with sound HR practices in an environment that
defines traditional roles and responsibilities. The TCS-HR group operates with technical
experts to create a synergy that is enviable. So whether it is recruitment or even career
development, HR is the catalyst that initiates and institutionalizes processes. To manage all
the functions for over 509,058 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 Humans and the management of the company should perform the
basic functions as given below:

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1. Recruitment Policy and Process
TCS hiring policy includes an optimal mix of campus (fresh) and lateral (experienced)
recruits. Fresh recruits are normally selected from academic institutes. TCS has key
partnerships with various academic institutions and considers them as critical
communities for recruitment. TCS has a number of sources for recruitment but its main
source is its strong relationship with universities. Through liaison with university
placement offices and recruitment fairs, TCS attracts a large number of applicants.
Experienced professionals are recruited laterally by the sourcing cell with the active
involvement of the unit heads through sourcing agencies and direct interviews. The
recruitment of experienced professionals is centrally coordinated based on the needs of
practice/delivery centres. Referrals, advertisements, job portals/web searches,
placement fairs, placement agencies, TCS databank, and so on are used singly or in
combination for sourcing the CVs. TCS also recruits locally from the geographies that
they operate in.

2. Training and Development


TCS invests about 4 percent of its annual revenues in Training and Development, to
build competency capital within the company in cutting edge technologies, domain and
functional areas. Special emphasis is placed on providing necessary learning
interventions to associates with the potential of being leaders in the company.

Thus, it is evident that focus is divided equally between the regular employees and
managerial employees alike. All the training programs are mapped to competencies and
address learning needs at different proficiency levels. Training and Development
managers closely work with businesses to develop and deliver programs that will make
our associates deliver value-for-money to our customers. Assessment centres are also
being used by TCS. Several levels of training are provided in TCS. Each of the levels
is unique, aimed with varying objectives.

3. Compensation Structure
In today’s scenario organizations are not much interested in acquiring physical
resources but what occupies their concern is whether those resources have been utilized
to the ultimate by their existing human potential. TCS has been given the title of the
best employer. And the title givers are none other than the employees. TCS has a

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compensation structure that has only 5 % of its remuneration based on performance.
TCS is such an organization, which makes their employees work in teams and it is the
total team, which they evaluate while deciding the remuneration, not the individual.
This has a lot of benefits. First of all, it does not encourage peer rivalry. Work teams
are characterized by the presence of faith amongst the team members, coordination,
interdependence, team spirit, trust, etc. These qualities cannot foster if each individual’s
greed to stand out in the crowd overcomes his concern for the success of the team as a
whole. That is the reason TCS has resorted to such a compensation structure. In an
attempt to find out what is the reason for the company generating such a degree of work
satisfaction amongst its employees it was revealed that TCS is popular not because of
its compensation but its principle of properly harnessing the existing human potential
within an organization.

4. Performance Management
TCS’s organisational goals are defined at the beginning of the year. These goals are in
line with the annual business plan for the organisation. These organisation goals are
translated into each Service and Industry Practices goal within TCS to ensure that the
organisational goals are met. All higher-level goals are ultimately translated into
individual performance measures. Performance is tracked against the achievement of
these preset individual goals. Appraisers review individual performances on a quarterly
basis against the set goals. These goals are revisited and modified, if necessary.
Performance is ultimately pegged to a point in a scale, which ranges from 1 to 5. The
aim is to highlight excellent performers and to work out an improvement plan for people
falling short of the required performance level

5. Talent Retention
Among the domestic IT companies, TCS has the lowest employee turnover rate. The
attrition level at TCS is 8.6% compared to the industry average of 15%. Employees stay
with the company, not for the size of the pay packet alone. There are several other
factors including job security. The company has a performance improvement plan that
takes into account any personal problem the employee may be facing. The company’s
HR practices have the ability to absorb people, to manage them from sourcing to

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deployment, and what it means in terms of scalability and scalability is something that
the group evolves with respect to its practices.

5. THE HR POLICIES AND PROCEDURES OF THE ORGANISATION

Human Resource Management is the process of recruitment, selection of employee, providing


proper orientation and induction, providing proper training and the developing skills,
assessment of employee (performance of appraisal), providing proper compensation and
benefits, motivating, maintaining proper relations with labour and with trade unions,
maintaining employees safety, welfare and health by complying with labour laws of concern
state or country.
Human Resource Policies are established by an organization, to support administrative
functions, performance management, employee relations and resource planning. It is also the
formal rules and guidelines that companies put in place to hire, train, assess, and reward the
members of their workforce.

➢ RECRUITMENT

• Internal search
Recruitment via this method is considered as the most optimum method as it provides the
organization with minimum cost and time for the process of recruitment and creates a sense of
motivation among the employees.

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For TCS, Natrajan Chandrasekaran, the CEO of TCS got promoted, prior to which he was the
COO and Executive Director of the organization, the only disadvantage to this would be
missing out on fresh new talent that could be found out in the market.

• Employee referral
Recruitment method in which the current employees are encouraged and rewarded for
introducing suitable recruits from among the people they know.TCS has a scheme called
BRING YOUR BUDDY with effect from 1st December 2011.The purpose of the Bring your
Buddy(BYB) scheme is to reward employees for referring qualified candidates who
subsequently are hired.TCS provides the referring employee a cash bonus for each successful
referral made, in accordance with the provisions stated in this policy.
There are advantages and disadvantages to the scheme. Advantage being, The credibility of the
employee is at stake when he or she recommends a candidate hence the employee would
recommend a good candidate. But sometimes employees refer relatives or friends who may not
be suitable for the job, which might lead to the formation of cliques in the organisation. With
the members of the same group or clan getting together.

➢ SELECTION

• The employee development policy


It is for encouraging employees to acquire new or advanced skills, knowledge, and viewpoints,
by providing learning and training facilities, and avenues where such new ideas can be applied.
TCS follows a program called Initial Learning Program (ILP), led by the Learning &
Training(L&T) Department for the new members of the organization.

• Performance appraisal policy


Performance appraisal can be defined as the process of evaluating the performance of an
employee and communicating the results of the evaluation to him for the purpose of rewarding
or developing the employee.
As TCS is a performance oriented organization and seeks to inculcate a culture of performance
excellence in each employee, the employee's performance is closely monitored and assessed
during the first year of joining through periodic performance appraisals. At the end of the first
year, based on performance appraisals the employee is given an Anniversary review rating,

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based on which a decision is taken on whether or not the individual is suitable for long term
employment in TCS or not.

➢ PROMOTION POLICY

Promotion can be termed as an advancement in an employee’s career rank or position in an


hierarchical structure.A Promotion in TCS means that there is a clear rise in the role and
responsibilities of the employee. Promotion is dependent on the business head/supervisor’s
decision and assessment of the employee’s potential and/or performance in a higher role.
There are two types of promotions in TCS, first is the role based promotion which means that
there is an extension to the role and span of activities with a perceptible change in the job
content and the second one is Maturity based promotion in order to respect the loyalty of the
employee towards the firm he or she is rewarded with a promotion with respect to the current
performance.

➢ EMPLOYEE WELFARE POLICIES

Welfare includes anything that is done for the comfort and improvement of employees and is
provided over and above the wages. It helps in keeping the morale and motivation of the
employees high so as to retain the employees for longer duration. Also the welfare measures
need not be in monetary terms only but can be in any kind/forms as well.

• Company transport:
TCS provides its employees with convenience to travel by providing pick up and drop facilities.

• Health insurance scheme:


TCS provides medical insurance for the employee and his/her family members and monthly
check ups.

• Food coupons:
Food coupons are provided to the employees in order to provide them with quality food and
increase the interactions among the employees.

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• Holiday homes:
In order to provide the employees with a quality relaxation time with their families TCS,
provides the employees with Holiday homes located at various locations across INDIA.

• House rent allowance:


HRA is the financial benefit paid by TCS to the employee in order to meet accommodation
costs for rent payments.

• Car allowances:
TCS provides car allowance as a perquisite to employee’s for certain grades. The employee
may use this amount towards monthly payment or for a leased car OR to purchase a car of their
choice.

• Recreation:
Activities like FRIDAY FUNDAY, QUIZ COMPETITIONS, PICNICS, etc are a few
recreation initiatives by TCS.

➢ GRIEVANCE HANDLING POLICY:

Employee grievance refers to the dissatisfaction of an employee with what he expects from the
company and its management. When there is a gap between what the employee expects and
what he receives, it leads to grievances. Employee grievances may or may not be justified.
However, they need to be tackled adequately because they not only lower the motivation and
performance of the employee but also affects the work environment.
For TCS the Grievance handling starts with the employee registering the complaint in the
complaint form, then the grievance is considered by the supervisor, management, union or
arbitrary third party if needed.

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6. CHALLENGES TCS FACES WHILE IMPROVING HR POLICIES AND
PROCEDURES

1. Human Resource Management System Challenges

Inaccurate organizational structure, ineffective workload distribution, and non-availability of


important information often create problems for enterprises in managing human capital.
Besides, the non-standardized policies, lack of automation resulting in wastage of efforts, and
shortage of funds due to budget cuts also become quite a hassle. Hence, enterprises worldwide
are on the lookout for a comprehensive human resource management system that mitigates
these challenges and ensures a smooth workflow.

Common challenges that TCS is facing with the HRMS is

➢ Data security

Data accuracy and migration are important, and so is the security of that data once it’s safely
transferred to the new HRMS. Mobile access – a constant off-premises flow of data between
users’ devices and your HRMS (whether in the cloud or not) represents an opportunity for a
cyber-attack. The security risk inherent in mobile access is increased when employees user
their own devices to access the HRMS.

➢ Adequate user training

People prefer to use systems with which they are comfortable and familiar. Creating that
comfort and familiarity prior to your system go-live date depends on appropriate training and
different users will have different needs.

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- HR staff: how to operate new interfaces, new inputs and reporting capabilities.
- Managers: how to use the new HR dashboard.
- C-suite and senior executives: how to access and use strategic data.
- Employees: how to access employee self-service functionality.

With different user needs in mind, consideration has to be given to different training channels.
Different people respond best to different methods of obtaining the necessary information. A
variety of learning methods, including face-to-face training courses, online elearning, ‘just-in-
time’ tutorials on intranet, or expert ‘super users’ who can coach their colleagues on an ad hoc,
as-needed basis. HRMS implementation user training should at least give users what they need
to know.

➢ Scalability

The issue of scalability is all about the future. Your new HRMS may be fit for purpose today
but what about tomorrow? Not all user requests make it onto the list of requirements you send
out to HRMS vendors. Some of those requests for additional functions or upgrades may be of
secondary priority, to be implemented at some future date. In that case, the system has to be
able to accommodate the scaling up to a broader functionality.

2. Talent Management Challenges

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Talent management focuses on hiring, training, managing, and retaining employees to build a
talented workforce. With a shift in mindset from talent hunting to harnessing, connecting
employees has become the need of the hour for talent development in an organization. Also,
the need for engaging workplaces and agile teams is on the rise. HR practitioners are actively
looking for an agile HR function, which brings a different set of opportunities for the leaders
along with the stakeholder expectations. Capitalisation on this paradigm by orchestrating a
highly cohesive HR function to drive greater levels of employee engagement while leveraging
potential across the enterprise which is highly required.
Some of the leading talent management issues and challenges TCS faces can be-

➢ High Employee turnover


• Without successfully implementing talent management, a business could experience
high employee turnover rates. High employee turnover rates happen when an employee
feels like their job is stagnant and their pay won’t increase.
• An employee doesn’t want to do the same tasks day after day. Instead, they want to
grow in their abilities, get promoted, and take on new responsibilities. If employees
leave, the business needs to start over in the talent management process.
• It’s especially challenging if managers or high-level employees leave the company.
Then, the business needs to find replacements quickly. Without managers, the talent
management process could fall apart.

➢ Ineffective leadership
• Strong leadership throughout the company is the basis of talent management. Managers
and other top employees take on an important role in developing and retaining
employees.
• If there is ineffective leadership within the company, employees won’t have guidance
in developing their talent. The company as a whole needs to come together to train and
keep employees. Without strong leaders, there won’t be anyone to carry out talent
management.

3. Talent Acquisition
As cut-throat competition becomes a norm in an era of rapid technological advancements,
organizations across the globe increasingly face the challenge of hiring and retaining world-
class talent. A high attrition rate can lead to increased hiring and training costs and disrupt

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business processes in any company. As such, organizations need to adopt a culture of constant
learning and up-skilling and imbibe the same in employees. This calls for phasing out legacy
and manual processes and applications on priority and adopting principles to reduce HR
expenses and cost, improve employee productivity, and ramp up payroll accuracy.

4. Data Analytics
Today’s businesses and large organizations are inundated with customer, product and
transactional data from internal and external sources, including streaming, IoT and real-time
data from sensors, devices, mobile apps and enterprise systems. As the volume, variety and
velocity of data increase, businesses are stuck with massive amounts of data, and are struggling
to mine valuable insights that could support their business strategy.

5. HR Transformation Services
Dearth of future-ready skills is the foremost challenge before the HR function, followed by
lack of reliable data for informed decision-making. These lead to talent shortage, lower
employee engagement, overpayments and higher onboarding time, while negatively affecting
business. Further, a digital disruption caused by the movement to cloud and a persistent demand
for consumer-grade employee experience are pressurizing CHROs to transform. A solution that
helps HR departments enable workforce agility, leverage collaborative ecosystems and offer
personalized employee services is, therefore, imperative.

7. CHALLENGES THAT THE TCS HR FUNCTION FACES IN THE


WAKE OF COVID

The HR function today is faced with myriad challenges that include managing layoffs,
organization restructuring, making urgent financial decisions, ensuring employee wellness,
adhering to government regulations, and adapting to a newer, remote way of working. It has
become essential that HR managers learn from global best practices to tide over these uncertain
times and prepare their organization for long-term growth and transformation.

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1. Virtual Onboarding and Learning
Digitization of the induction process along with training is a key element in HR strategy to
ensure high productivity levels for new employees. An increase in investment in virtual
learning through industry-leading learning platforms to enable cross-skilling and upskilling,
and to cultivate a culture of continual learning and growth that results in workplace
transformation.

2. Performance Management
While restructuring takes place, KPIs will also need to be redefined in order that employees
are aware of expectations and can align to larger organizational objectives. Global
organizations are investing in training their workforce to become multi-skilled to build nimble,
lean and efficient organizations.HR thus needs to focus on innovation in this space and adopt
contemporary practices that will enable remote employee assessment and management in a
post-pandemic workplace scenario.

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3. New Understanding of Work-life Balance
Work-life balance is crucial for emotional well-being, and this concept needs a redefinition in
a post-pandemic business scenario. This new beginning, so to speak, where employees are
spending an increasing amount of time with family members even as they work remotely, has
led to challenging the long-held beliefs of work-life balance. With the increase in work from
home, the essential boundary that demarcates the personal from the professional becomes
blurry, and HR therefore needs to tailor responses and put in place a set of procedures that help
an employee maintain this balance. HR should ensure social collaboration among employees
is established virtually and affiliation groups are created to make virtual teams more cohesive.

4. Real-time Data & Analytics, and Information Management


Access to real-time data to respond adequately is a key HR requirement, especially to address
employee safety needs and ensure continued productivity even as a remote working model is
adopted. Data must be provided to employees on staying out of Covid-19 hotspots, first-aid
and first responder access in case of an emergency. Similarly, to ensure business continuity,
timely reporting must be provided to management as well. Real-time information on usage of
official devices in remote locations will enable organizations to monitor and control assets in
addition to providing timely help in case of a service request. Organizations also need to keep
a close watch on fake news and incorrect information circulated on public domains and within
internal organizations forums.

5. Business continuity
Key role succession planning In an emergency like the pandemic, organizations need to ensure
succession planning for all key roles to manage temporary unavailability. This list should
ideally include high-potential and niche skilled employees whose absence can cause day-to-
day disruption. This list should also include senior managers who interface with key internal
and external stakeholders.

6. Crisis Management
Teams Now more than ever do organizations find the need to set up and maintain a Crisis
Management Committee comprising Governance, Regulation and Compliance, Human
Resources, Administration and Business representatives to address urgent regulatory,
employee, or business concerns.

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7. Standard Operating Procedures (SOPs) for In-office, Remote working, and
Collaboration
SOPs include organization approved tools, usage terms, social distancing norms, health
advisory, precautions, details on data being captured and its use for monitoring and enablement.
Escalation procedures should be explained in detail to stakeholders and contact information
shared for ease in clarifications. Clearly documented SOPs help organizations with human
capital planning in a consistent manner.

8. Physical and Emotional Wellness


HR must strive to gauge the emotional well-being of employees. Unlike physical well-being,
emotional well-being can be ascertained only through regular feedback from supervisors,
connecting with family members or by tracking social media handles of employees. In these
extraordinary circumstances, innovative measures well within the ambit of law will have to be
undertaken by the HR team to ensure the wellness of employees, and in turn, the interest of the
organization. Special care will have to be taken of employees who struggle with working in
isolation. Employees should be made aware of the steps that need to be taken if they happen to
get infected by the Novel Coronavirus.

8. CONCLUSION

The long-term sustainability of the organization will depend on how HR is able to redefine
itself on several dimensions. The only certainty in uncertain times is that change is inevitable.
What will therefore help in terms of human resource management and workplace
transformation is a focus on continual learning and adaptability, building the ability to deal
with ambiguity and unpredictability, and focusing on digital adoption to streamline business
processes and enhance human productivity.

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