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Submitted to Mr. Vikrant Parashar
Tata Consultancy Services
Submitted By: Udit Dhawan Roll No. RQ 3810 A 07 B.Com (Hons.) (2008-2011) Lovely Professional University Phagwara (Punjab)
which. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. Performance Appraisal Criteria at TCS OBJECTIVES Data relating to performance assessment of employees arc recorded. and business process outsourcing organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value.Tata Consultancy Services Limited (TCS) is the world-leading information technology consulting. stored. how has TCS grown to and sustained at the number one position is a question which market watchers have asked themselves a thousand times. & a comprehensive range of services across diverse industries. They are part of one of Asia's largest conglomerates . There is but one answer . with a presence in 34 countries across 6 continents. With this sensitive breed of IT professionals. TCS has developed an unbreakable bond with sound HR practices in an environment that defies traditional roles and responsibilities. when the IT services industry didn’t exist as it does today. To assess the training and development needs of employees. 2. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. Seven of the Fortune Top 10 companies are among our valued customers. Financial Services. with its interests in Energy. services. they are one of the world's leading Information Technology companies. 4. As we move into an era of e-business where IT professionals will interview employers so stringently that 40 percent employers will miss recruitment goals (source: Gartner Group). Engineering & Materials. To effect promotions based on competence and performance. Now. . Telecommunications. Chemicals.passion for excellence in the workforce practices. the role of HR assumes unthinkable proportions and is subject to mammoth challenges. and used for seven purposes.the TATA Group . provides us with a grounded understanding of specific business challenges facing global companies. The main purposes of employee assessment are: 1. They commenced operations in 1968.
6. and transfers have been effective or not. and documentation purposes Table below outlines these and specific uses more clearly:- Multiple Purposes of Performance Assessment General Applications Specific Purpose Identification of individual needs Performance feedback Determining transfers and job assignments Identification of individual strengths ad development needs Salary Promotion Retention or termination Recognition of individual performance Lay-offs Identification of poor performers Developmental Uses Administrative Uses/Decisions . To improve communication. Broadly. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. This can also have the effect of increasing the trust between the rater and the ratee. organizational maintenance/objectives. Performance appraisal provides a format for dialogue between the superior and the subordinate. and improves understanding of personal goals and concerns. performance appraisal serves four objectives(i) (ii) (iii) (iv) developmental uses. performance appraisal can be used to determine whether HR programmes such a selection. Finally. administrative uses/decisions.5. training. 7.
reward performance equitably and determine employee's need for training. the evaluation system helps identify employees with potential.Organizational Maintenance/ Objectives HR planning Determining organization training needs Evaluation of organizational goal achievement Information for goal identification Evaluation of HR systems Reinforcement of organizational development needs Criteria for validation research Documentation for HR decisions Helping to meet legal requirements Documentation PERFORMANCE APPRAISAL ADVANTAGE IN TCS AND COMPETITIVE The objectives of performance appraisal. What needs emphasis is that performance evaluation contributes to TCS’s competitive strength. Specifically. point out the purpose which such an exercise seeks to meet. performance appraisal has helped the TCS gain competitive edge in the following ways : . Besides encouraging high levels of performance.
The weightage given to each attribute is based on the function the employee performs. cost reduction. If employees get a low rating (less than two) in two consecutive . Based on their individual achievements. At the end of a project. employees are rated on a scale of one to five (five = “superstar”). Appraisals are based on Balanced Scorecard. which tracks the achievement of employees on the basis of targets at four levels — financial customer internal learning and growth The financial perspective quantifies the employee’s contribution in terms of revenue growth. The customer perspective looks at the differentiating value proposition offered by the employee. At the end of the year 2. improved asset utilization and so on.Strategy and Behavior Improving Performance Making correct decisions Competitive Advantage Values and Behavior Minimizing dissatisfaction and turnover Ensuring Legal Compliance TCS conducts two appraisals: 1. the learning and growth are self-explanatory. the internal perspective refers to the employee’s contribution in creating and sustaining value.
an Oracle Developer 2000 based tool. an employee in TCS get formal performance feedback once very two months till such time that he is confirmed after which the performance feedback is provided twice every year on a formal basis. Nomination to covet training programmes — to encourage self-development. Project milestone parties — to encourage efficient execution of projects. Recognition at TCS Guaranteed high motivation levels at TCS through competitive compensation packages. If employees work for more than two years on the same project. “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. and.appraisals. To avoid that. 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. What deserve special mention is the active participation of the senior management in the determination of guidelines for the performance appraisal process. an innovative recognition mechanism The various ways in which TCS recognizes its people are listed below. outstanding development opportunities. “Performance drops if motivation drops” At the heart of an employee's satisfaction lies the fact that his performance is being appreciated and recognized. An employee's performance history at the click of a button and this accurately maintained for 14000 employees! Right from his entry. TCS's performance management system has metamorphosed into one that emphasizes objectivity and a system that mandates performance evaluation against pre-determined criteria. TCS however widely encourages informal feedback discussions between Project Leaders and Team Members and this concept has found an overwhelming appeal among the people. not the least. The system individual right from his biographical details to his projects performance. Best PIP award — to encourage innovation and continuous improvement. . TCS shuffles its employees between projects every 18 months or so. TCS's performance appraisal system is supported by an online system called the Human Resource Management System. Recognition of star performers / high fliers — to recognize outstanding talent. Best project award — to promote a spirit of internal competition across work groups and to foster teamwork. stimulating job content. typically either their performance dips or they leave the organization. the warning flags go up.
facilitating the implementation of P-CMM ( being done for the first time in Asia) or designing a Balanced Score Card for the team. . TCS has been the first company in India to be visited by the author of P-CMM . Recommendations for new technology assignments / key positions — to ensure career progression and development of employees' full potential. The HR group along with the Software Engineering Process Group has dedicatedly worked towards achieving a high maturity level for the people processes. The HR team in TCS is transcending from its traditional "maintenance" role to a new developmental role. Developing the HR capabilities has been an imperative. For the first time. So HR now in the books of "QUALITY". So HR now in the books of "QUALITY". And it is no mean feat that the two groups have generated such synergy that for a long time every one will be speaking one language . P-CMM ( PEOPLE CAPABILITY MATURITY MODEL ) The concept that is very close to the heart of the HR group and one that has seen mass appeal is the PEOPLE CAPABILITY MATURITY MODEL or the P-CMM. On-the-spot recognition — to guarantee immediate recognition of good performance. TCS plans to have an organization wide assessment this year. Equipped with the training programmes at TMTC (The TATA Management Training Centre). For the first time. the HR team is a formidable one and at the cutting edge of HR technology. Bill Curtis. rubbing shoulders with the technology experts.the-P-CMM. TCS plans to have an organization wide assessment this year. Designing training modules for Senior Project Leaders on performances management.Dr. the HR group is at the forefront. Best auditor award — to acknowledge participation in critical support roles Spot awards — to ensure real-time recognition of employees. all of the HR processes will be subjected to an audit and that in itself is an achievement to be proud of because we hear so few a company having its HR processes audited. the extensive Labs at ISABS and ISISD the constant exposure at conferences. Performance-based annual increments — to recognize high performers Early confirmations for new employees — to reward high-performing new employees Long-service awards — to build organisational loyalty EVA-based increments — to ensure performance-based salaries. all of the HR processes will be subjected to an audit and that in itself is an achievement to be proud of because we hear so few a company having its HR processes audited.
Low morale) P-CMM . The organization is now able to manage its capability and performance quantitatively. Lack of relevant knowledge. Ritualistic practices. capable applicants for employment.Managed Level (Typical characteristics: Work overload. motivating improved performance. The organization misses opportunities to standardize workforce practices because the common knowledge and skills needed for conducting its business activities have not been identified) P-CMM . . By following the maturity framework.Initial Level (Typical characteristics: Inconsistency in performing practices.Defined Level (Although there are performing basic workforce practices. Selection – It is the process of differentiating between applicants in order to identify and hire those with greater likelihood of success in job. unclear performance objectives or feedback. there is inconsistency in how these practices are performed across units and little synergy across the organization. Maturity Level 5 organizations treat change management as an ordinary business process to be performed in an orderly way on a regular basis) Recruitment And Selection Process of Tata Consultancy Services Recruitment – It is the process of finding and attracting .The People Capability Maturity Model consists of five maturity levels that establish successive foundations for continuously improving individual competencies. Environmental distractions. The organization is able to predict its capability for performing work because it can quantify the capability of its workforce and of the competency-based processes they use in performing their assignments) P-CMM . These improvements are made to the capability of individuals and workgroups. Displacement of responsibility.Predictable Level (The organization manages and exploits the capability created by its framework of workforce competencies. and Emotionally detached workforce). and to workforce practices and activities. developing effective teams. P-CMM .Optimizing Level (The entire organization is focused on continual improvement. Poor communication. an organization can avoid introducing workforce practices that its employees are unprepared to implement effectively. The five stages of the People CMM framework are: P-CMM . and shaping the workforce the organization needs to accomplish its future business plans. to the performance of competency-based processes. or skill. The organization uses the results of the quantitative management activities established at Maturity Level 4 to guide improvements at Maturity Level 5. Each maturity level is a welldefined evolutionary plateau that institutionalizes new capabilities for developing the organization's workforce.
Written (Aptitude test) 2. Agencies for the unemployed 5. Application: it can be either online or respond to one of company’s Ads—They screen candidate’s resume and call them for an interview Selection process is through 1. Middle Management level (Executive selection scheme) . This is internal and external process here employee is getting select from inside the company or from outside the company. Group Discussion For inside selection they consider 1. here the selected person do the job which is assigned by their head. In the TCS the initial job is mainly concern with software development. According to their performance 2. Advertising (often via agents for specialist posts) or the use of other local media (e. Interview 3. Interview (Technical & non-technical) 3. University (Campus) appointment boards 4. Work force level Work force level is the initial level of any company. aptitude test 5. Interview (technical & non-technical) 4.g. A person could be the head of one team of workforce level. hardware or networking for which post he/she is applying. Case study analysis. The inside selection process is bit different from outside selection process. Written 3. Frontline Level Frontline level is the upper level of work force level. Group Problem Solving 1. it could be hardware or networking related also so candidate should have knowledge of computer languages. Here it concern with strong technical as well as communication skill. Internal promotion and internal introductions (at times desirable for morale purposes) 2. Selection process for frontline level from outside the company 2.The main sources of recruitment are: 1. commercial radio) 1. It is two way communication process where he/she communicate with work force people as well as their technical department. Recruitment process for work force level 1. Leadership quality 6. Careers officers (and careers masters at schools) 3.
There is no recruitment process from externally. Interview 2. Selection process for Top Management Level is through 1. Case Study Analysis 4. MD. Here top most person is mainly concern for managing the whole company. Presentation 3. Top Management Level It is the top most and prestigious post for the Tata Consultancy Service like CEO. Negotiation 7. Leadership quality 6. Presentation 5. By identifying the training needs. Here the manager communicate with his high level person. the training group head designs a training plan for the employees which will be deployed after approval from the CEO. Selection process of middle Management level This is also based on internally and externally. Interview 2. The training needs of the organization is captured in this way for both long and short term. Written Aptitude test 2. This is also two way communication process. lower level employees and more with clients. Leadership Quality & 5. Case study analysis 4. Candidate Presentation 3. . Offers and negotiation Training and Development program in TCS The most effective learning and development programs have following features incorporated: • Strategy driven: All training and development programs should align with overall organization strategic goals and yield business results. In TCS. they also make strategies related to decision making for to phosphorus in near future .The Executive Selection Scheme is a fast track program for accelerated growth of high potential professionals. It takes care of all project taken by the company. According to their performance External Process 1. Interview (technical & non-technical) 3. Internal process 1. the function of the training group is to interact with the functional group heads and business leaders and understand the skill sets needed for the organization to compete in the market and develop them.
but he also receives . Imagine an executive preparing to meet his client. In TCS training feedbacks collected at regular periods from both the trainees and the functional heads help in measuring the impact of training. reduction in defect density.customer retention. employee retention. With the information accessible to him. 0 3. Benchmarking should be made with the competitors of similar businesses to compare the long term returns. The sectors of e-learning are : Portals Edu-commerce companies Network platforms 2. internet and other multimedia products. reduction in recruitment cost etc. Computer based training (CBTs). Classroom training (CRTs) – It is the oldest method for imparting training.• ROI: The training program should be measured as every other business activity. • Methodologies: Learning & Development methodology used in TCS are eLearning. This is not cost effective compared to the above two methods but it is one of the very effective methods. not only does he stay up-to-date on the market issues essential to his position. Custom made PowerPoint presentations and word documents can also be used as training material and employees can make use of these whenever in need without waiting for an opportunity to be taught in a classroom. Some of the measures that indicate short term returns from training are . Many employees are able to attend the training delivered by the instructors in far away locations through teleconference or videoconference. CBTs. Class room training. he uses his personal digital assistant for communications and e-learning. The materials can be stored easily and this encourages self learning. 4.– As the cost for instructor and the text books go up computer based training is the best alternative. Many learning materials are available in CD-ROMs and one can learn these courses at ones convenience on a PC. This helps the trainees to participate effectively with the instructor and there by enhances the speed of learning process. now a days many corporate conduct class room training with the aid of computer. knowledge sharing sessions & continuous educational program in reputed institutions. Some of the measures that can be used to measure for returns on the long term are . while he waits for the meeting to start. e-Learning – It is one of the most preferred choices of the corporates since the employees are becoming tech-savvy now a days. Mobile learning – Mobile phones and palm tops are in vogue today and have become excellent tools for learning.productivity increase. 1. It must show a return on investment either on short term or long term.
Many institutions are willing to prepare a curriculum for the employees as required by the business units. This enables the employees to earn knowledge and degree and ensures commitment to the organization. news portals and his employer. 5. .regular notifications from message boards. Continuous education programs in reputed institutions – Organization can educate their employees through universities and reputed education institutions based on the type of business they are engaged.
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