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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. They commenced operations in 1968, when the IT services industry didn’t exist as it does today. Now, with a presence in 34 countries across 6 continents, & a comprehensive range of services across diverse industries, they are one of the world's leading Information Technology companies. Seven of the Fortune Top 10 companies are among our valued customers. They are part of one of Asia's largest conglomerates - the TATA Group - which, with its interests in Energy, Telecommunications, Financial Services, Chemicals, Engineering & Materials, provides us with a grounded understanding of specific business challenges facing global companies. 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), the role of HR assumes unthinkable proportions and is subject to mammoth challenges. With this sensitive breed of IT professionals, how has TCS grown to and sustained at the number one position is a question which market watchers have asked themselves a thousand times. There is but one answer - passion for excellence in the workforce practices. TCS has developed an unbreakable bond with sound HR practices in an environment that defies traditional roles and responsibilities. The TCS-HR group operates with technical experts to create a synergy which is enviable. Figure 1 illustrates the role of HR, which evidently is that of a facilitator. So whether it is recruitment or even career development, HR is the catalyst which initiates and institutionalizes processes. To manage all the functions for over 14000 employees is a Herculean task but the smoothness of operations is intriguing. The HR structure, which allows flexibility and empowerment, is the solution.
Given that no two projects — or. no two bosses — are alike. executive vice president. Close to 90 per cent of the company’s income flows in from outside India. global human resources. And the bulk of its employees work across TCS offices in 34 countries and on-site in more than 50 countries. matter. performance management and performance appraisal must be a nightmare. Tata Consultancy Services (TCS).749-crore InfoTech major has 45. For most of them. Or is it? . for that. the supervisor changes every time a project changes.000 employees on its rolls.” says S Padmanabhan.“A poor performer is not always a poor performer for life. The Rs 9.
To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. and improves understanding of personal goals and concerns. administrative uses/decisions. training. This can also have the effect of increasing the trust between the rater and the ratee.Performance Appraisal Criteria at TCS OBJECTIVES Data relating to performance assessment of employees arc recorded. To effect promotions based on competence and performance. To improve communication. 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. The main purposes of employee assessment are: 1. and documentation purposes 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 assess the training and development needs of employees. 6. organizational maintenance/objectives. Performance appraisal provides a format for dialogue between the superior and the subordinate. stored. performance appraisal can be used to determine whether HR programmes such a selection. 2. Finally. Broadly. 3. 4. and used for seven purposes. 5. 7. performance appraisal serves four objectives(i) (ii) (iii) (iv) developmental uses. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. and transfers have been effective or not.
reward performance equitably and determine employee's need for training. Specifically. performance appraisal has helped the TCS gain competitive edge in the following ways : Strategy and Behavior Improving Performance Making correct decisions Competitive Advantage Values and Behavior Minimizing dissatisfaction and turnover Ensuring Legal Compliance .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. point out the purpose which such an exercise seeks to meet. Besides encouraging high levels of performance. the evaluation system helps identify employees with potential.
What deserve special mention is the active participation of the senior management in the determination of guidelines for the performance appraisal process. The customer perspective looks at the differentiating value proposition offered by the employee. At the end of the year 2. If employees work for more than two years on the same project. If employees get a low rating (less than two) in two consecutive appraisals. To avoid that. “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. “Performance drops if motivation drops” At the heart of an employee's satisfaction lies the fact that his performance is being appreciated and recognized. Appraisals are based on Balanced Scorecard. the learning and growth are self-explanatory. typically either their performance dips or they leave the organization. TCS's performance management system has metamorphosed into one that emphasizes objectivity and a system that mandates performance evaluation against pre-determined criteria. 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 weightage given to each attribute is based on the function the employee performs. At the end of a project.TCS conducts two appraisals: 1. . Based on their individual achievements. cost reduction. employees are rated on a scale of one to five (five = “superstar”). improved asset utilization and so on. the warning flags go up. the internal perspective refers to the employee’s contribution in creating and sustaining value. TCS shuffles its employees between projects every 18 months or so. 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.
An employee's performance history at the click of a button and this accurately maintained for 14000 employees! Right from his entry. Best project award — to promote a spirit of internal competition across work groups and to foster teamwork. Recommendations for new technology assignments / key positions — to ensure career progression and development of employees' full potential. On-the-spot recognition — to guarantee immediate recognition of good performance.an Oracle Developer 2000 based tool. Best auditor award — to acknowledge participation in critical support roles Spot awards — to ensure real-time recognition of employees. . Nomination to covet training programmes — to encourage self-development. Recognition of star performers / high fliers — to recognize outstanding talent. and. outstanding development opportunities. an innovative recognition mechanism The various ways in which TCS recognizes its people are listed below. not the least. Project milestone parties — to encourage efficient execution of projects. Best PIP award — to encourage innovation and continuous improvement. The system individual right from his biographical details to his projects performance.TCS's performance appraisal system is supported by an online system called the Human Resource Management System. Recognition at TCS Guaranteed high motivation levels at TCS through competitive compensation packages. 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. 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. stimulating job content. TCS however widely encourages informal feedback discussions between Project Leaders and Team Members and this concept has found an overwhelming appeal among the people.
So HR now in the books of "QUALITY". TCS has been the first company in India to be visited by the author of P-CMM . Developing the HR capabilities has been an imperative. Designing training modules for Senior Project Leaders on performances management. 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 . TCS plans to have an organization wide assessment this year. . 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 HR team in TCS is transcending from its traditional "maintenance" role to a new developmental role. rubbing shoulders with the technology experts. So HR now in the books of "QUALITY". the HR group is at the forefront. The HR group along with the Software Engineering Process Group has dedicatedly worked towards achieving a high maturity level for the people processes. For the first time.the-P-CMM. TCS plans to have an organization wide assessment this year. For the first time. Equipped with the training programmes at TMTC (The TATA Management Training Centre). facilitating the implementation of P-CMM ( being done for the first time in Asia) or designing a Balanced Score Card for the team. the extensive Labs at ISABS and ISISD the constant exposure at conferences. 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.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. Bill Curtis. the HR team is a formidable one and at the cutting edge of HR technology.Dr.
Each maturity level is a welldefined evolutionary plateau that institutionalizes new capabilities for developing the organization's workforce. The five stages of the People CMM framework are: . an organization can avoid introducing workforce practices that its employees are unprepared to implement effectively. and shaping the workforce the organization needs to accomplish its future business plans. developing effective teams. motivating improved performance. By following the maturity framework.The People Capability Maturity Model consists of five maturity levels that establish successive foundations for continuously improving individual competencies.
The organization is now able to manage its capability and performance quantitatively. Low morale) P-CMM . and Emotionally detached workforce). unclear performance objectives or feedback. P-CMM . 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 . Lack of relevant knowledge. The organization uses the results of the quantitative management activities established at Maturity Level 4 to guide improvements at Maturity Level 5. to the performance of competency-based processes. Ritualistic practices.Managed Level (Typical characteristics: Work overload. Environmental distractions. Maturity Level 5 organizations treat change management as an ordinary business process to be performed in an orderly way on a regular basis) . or skill. there is inconsistency in how these practices are performed across units and little synergy across the organization. Displacement of responsibility. and to workforce practices and activities. Poor communication.Initial Level (Typical characteristics: Inconsistency in performing practices.P-CMM . These improvements are made to the capability of individuals and workgroups.Optimizing Level (The entire organization is focused on continual improvement.Defined Level (Although there are performing basic workforce practices.Predictable Level (The organization manages and exploits the capability created by its framework of workforce competencies. 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 .