The challenges that TCS is likely to face while implementing its new strategy are:

 Rewards not understood by people- The employees in TCS are not aware of the new agile system.

In order to overcome this, HR should communicate effectively to the employees. As appraisal systems
are redesigned from scratch; a 1 hr session can be arranged by HR delivering them the info.

 Inconsistent engagement levels of different managers.

In order to implement a new performance management and reward strategy it would be difficult to get
all managers on board. Managers need to be fully trained on the process and HR needs to monitor
managers to ensure that the program is being used consistently and objectively. When the system is
applied inconsistently, some employees benefit and others flounder, leading to employee mistrust and
disengagement.

In order to overcome this, HR must conduct a training program for all Managers to ensure they are fully
capable and trained in order to implement a new strategy and asses the employees based on that.

 Using limited budgets Inefficiently. 

Since Agile methodology would also change the way it budgets for workforce planning which would lead
to difficulty in effectively using the limited budgets. The budget will have an impact because TCS can will
be rewarding pay based rewards on the basis of their performance.

To overcome this, distinctions should be made based on the level of performance. Performance will be
rated on a scale of 1-10. And the reward will be given on the basis of that.

Reward Strategy

If TCS comes up with a reward strategy it will have a positive experience for both the company and the
employee. Reward system will enhance the motivation, keeping employees’ goal oriented and high
morale making them want to exceed in the workplace.
1. A statement of intentions

To enable a more effective market positioning that would help with attracting and retaining
employees, gaining functional expertise and meeting the goals of the organization.

2. Rationale
- Employee rewards programs on regular basis can be set to motivate employees in order to
change the work habits and key behaviors to benefit TCS. The proposed initiatives for this
reward strategy is to:
- Improve the effectiveness of the organization, in order to support the attainment of TCS’s
mission, strategies, and to help achieve the competitive advantage.
- Change the organizational culture as TCS is now implementing agile system, and it changes the
way TCS measures the performance of its employees manages talent development, and budgets
for recruitment. In order to redesign its appraisal system TCS would also have to change its
culture as mid- to senior-level employees are accustomed to doing things in a specific way and
are not receptive to a new system.
- Applying a new reward system would also help to achieve continuous improvements in levels of
quality which will upgrade competence and encourage personal development.

3. Plan

Various categories of rewards can be given such as verbal appreciation, monetary and non-
monetary rewards like award trophies, certificates and gift cards etc.

- Bonuses: Bonuses will be paid to employees who meet their targets and objectives on weekly
basis which would help to assess the performance of the employees and help to improve their
performance and motivate them.
- Additional hours pay: additional pay will be paid to employees who work over time at non-
working hours; this would increase the productivity and efficiency of employees.
- Training: since TCS focusses on promoting learning, various training can be provided from job to
personal development training.
- Recognition of Star performer: this is an important type of recognition; TCS can hold an award
night where it will introduce award system such as best performance of the month etc, this will
lead to employees performing even better.
- Attendance awards: employee with full attendance will be recognized in a form of certificate or
cash bonus or a gift card to a restaurant. This would increase the productivity of the company.
- Project parties: Since employees in TCS are working on projects varying from 2 months to 1
year; due to which the involvement and motivation decreases with time. To avoid that, parties
will be organized on successful completion of projects; so employees will stay motivated and
others will follow their example.
- Best Project Award: this award will be given on yearly basis in order to promote the healthy
internal competition among work groups.