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Anshul Mittal 2010SMF6823 Under the guidance of
Professor Vinayshil Gautam
DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY - DELHI NEW DELHI
Human Capability Management in IT industry with respect to Tata Consultancy Services .
7 4.9 B.10 C..15 7. Linkages to HR functions……….Learning………………………………………………………………………..………14 6.5 2.Policies and Structure for capability management in TCS………8 RCM (Role and competency Management) under TCS……9 A..…………………………………………………4 Human Capability management…………………………………….………………………………………….7 Primary Research……………………………………………………7 Secondary research…………………………………………………..8 I..Contents 1.4 Human Capability management – Its significance…………………5 Tata Consultancy Services.UNIT SURVEYED………………………………………………………………………7 3...Introduction………………………………………………………………………………4 Capability………………………. Competency Assessment Guidelines…. Roles and Responsibilities……………..References……………………………………………………………………………...……..Methodology Adopted………………………………………………………………...Conclusion…………………………………………………………………………….11 D..11 II. Views of the Employees……………………………………………12 5. Observations and findings…………………………………………………………….16 ..…. Key operational processes……………..
We do this by studying the capability management in TCS. tangible or intangible processes that are firm-specific and are developed over time through complex interactions among firm‟s resources. In simple words what this paper sets out to say and explore is that human capability management is all about “managing human capability and managing capability to manage human resource”.Introduction Capability According to the paper “CAPABILITY BUILDINGTHROUGH REPLICATION STRATEGY: THE CASE OF CPT LTD” Capabilities refer to a firm‟s capability to deploy resources. Therefore in a nutshell we can say that the human capability management not only refers to the management of capability to utilize human resource but also the management and betterment of human resource itself. Following is a brief introduction of TCS. So in this paper we try to figure out how exactly is the capability to manage human resource is being managed in industry and also how the capability of human resource itself is being improved. using organizational processes. In this paper we limit our discussion to capability management policy and framework prevalent in TCS. to effect a desired end. as well as strategic flexibility and protection for its final product or service. . Human Capability management Capability by definition is to use develop and utilize resources so in this respect Human capability management would mean managing the capability to utilize human resource. Human capability management can also be defined as managing the human resource in such a way such that it leads not only to the organisational good but also contributes significantly to the growth of individual. This capability management can be unique to each organisation. It has been recognised now that the growth of an organisation should also include the growth of its individuals. They are informationbased. usually in combination. They can abstractly be thought of as „intermediate goods‟ generated by the firm to provide enhanced productivity of its resources.
Therefore even solely from the perspective of organisational perspective the development of human resource is very important . Pragmatically speaking workers involved in doing tasks that challenge them and require them to develop new skills would find their job more worthwhile and more enjoyable which would in turn improve their productivity for the organisation (Christopher P. Tata Consultancy Services. Solomon has suggested that people in business should think of the companies for which they work first and foremost as communities that are defined not only by the output of particular products. An environment where employees have been given a task way beneath their potential may bore them and may lead to lethargy and a task that is beyond their capabilities may frustrate them or lead to burn out (Csikszentmihalyi. 1999. Their services are mainly consulting . business has as its end something more substantial than the pursuit of profit alone. pp. set of shared values. 63–70). and common purpose (Solomon.Human Capability Management-Its significance Significantly the question arises that why should organisation invest on the development of a structure which would help in development of its individuals. Thus capability management is significant not only in improving the productivity of organisation by providing them tasks according to their capabilities but is also important in creating a work environment where human beings can fully express themselves and work to their full potential. While this is undoubtedly one of the purposes of business and indeed probably its most fundamental purpose. Robert Solomon and others have argued persuasively that the purpose of business exceeds that of providing a substantial profit for shareholders.The chief objective of the managers should therefore be to make conditions conducive for the workers where they are able to express their capabilities to the fullest.It is therefore the task of managers to assign them just adequate work for the good of organisation as a whole. the key player in the IT services and business solutions area has attained for themselves a quality that none can match. In recent years. 48–50). Vogt 2005). 2003. pp. India. TCS is the largest provider of information technology and business process outsourcing services in Asia. Tata Consultancy Services was established in the year 1968.TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company. the Tata Group. but also possessing a particular culture. Tata Consultancy Services Tata Consultancy Services is Software services consulting company headquartered in Mumbai.
They have a unique Global Network Delivery Model – which is supposed to be the yardstick of superiority in software development. But TCS has been able to direct their goals in a manner that their business targets are achieved. best-in– class consulting. To make it a joy for all stakeholders to work with us Values: Leading change . They had registered consolidated revenue of USD 5.7 billion for the FY 2007-08. They are spread across 42 countries with more than 130. IT solutions and services. transport and hospitality Manufacturing High-tech and professional services Vision: Global Top 10 by 2010 Mission: To help customers achieve their business objectives.000 IT consultants. Some industries that TCS serves are: Banking and financial services Insurance Telecom Media and information services Government Healthcare and life sciences Energy and utilities Retail and FMCG Travel. with an integrated IT and ITes portfolio. With its excellence in service. Services and solutions TCS has always helped the clients optimize the business processes to get maximum efficiency. TCS offers the following solutions: IT services IT infrastructure services Enterprise solutions Consulting Business process outsourcing Business intelligence and performance management Engineering and industrial services IT and business solutions for SMEs Industry Verticals The competition in the Indian IT industry is fierce. TCS has been listed on the National Stock Exchange and Bombay Stock Exchange in India. by providing innovative.based.
The websites of TCS and other having information about TCS were browsed. This gave a good idea about what the policies were on paper and how people actually felt about these policies.This was mainly sent to employees at junior level(Software developer level) to gain an insight what they feel about the capability management policies of TCS. Methodology Adopted The purpose of the survey was to find out about the capability management policies adopted in the company. The following two methodologies were primarily adopted. The underlying reason to send it to junior level was that these are the people who are the one who feel most bothered as they have entered the industry for the first time from a very different outside world. a good insight was obtained as to how much the policies on paper and what the employees actually feel are in sync. 2. Unit surveyed The Mumbai Unit of the TCS was surveyed for the present paper. Primary Research 1. Also as a side product of the research. Competency related policies were discussed with the HR. TCS was selected for this purpose because it is a CMM level 5 company and has all the policies well documented. Questionnaire was prepared and was sent to TCS to be filled by the employees . Secondary Research 1. 3. . With the data collected I have tried to find the practices that are followed in industry with respect to capability management. Integrity respect for the individual Excellence Learning and sharing 2.
The policy of TCS with respect to Capability Management revolves mostly around the concept of Roles and tagged Competencies. Observations and findings I. Role allocation : Every employee should be assigned role and should be expected to perform duties based on that role. The employees are appraised based on the achievement of these goals. Role and Competency management can be explained as follows: At organizational level a. The RCM team is responsible for management of the entire master list of these roles. Further it involves setting goals around the roles and measure achievement of roles related tasks and responsibilities. The Role and Competency Management(RCM) Process encompasses assigning a role to an employee and tagging competencies based on the role required to fulfill the role effectively. This is the process to identify the best role fit for an employee based on the employee‟s ability to handle the role. At employee level a. Role Management: It includes identifying all the jobs in the organization. Therefore TCS maintains a role and competency management Pack which includes and defines the various policies with respect to human capability management in the company. Role Based Goal Management: This refers to assigning goals to each role based on the activities associated with it.4. . Each role has an assigned responsibility and action. The strength of an organization lies in mapping requisite roles and competencies. Again the master list is prepared and maintained by RCM Team. Policies and Structure for capability management in TCS Being a CMM level 5 organization and being committed to business excellence TCS maintains a set of documents to give all its employees and all the stakeholders a clear definition of responsibilities and activities that they are expected to fulfill. Competency Management: It involves making and maintaining a list of all the competencies that are required for performing all the roles in the organization. c. b.
Role based goal management The RCM team has a repository of a role based goals . For improving the function or business delivery within a unit c. Role Management TCS has a master list of all the roles with the RCM Team. . validation etc . At any given time it may receive request for creation. e. To make the role more robust. defining. review. Once it receives the request it first finds the role in its repository and then modifies or creates a new role according to requirements. Key operational processes TCS has outlined a detailed process for role and competency management with elaborate processes for creation. Two or more units merging b. Once a role has been identified then either its mapped to exiting goal or a new mapping is created along with a new goal. validation and de-activation of roles and competencies including Role based Goal Templates (RBGT).This may be because of various reasons such as a.This is mapping of goals to the various roles. The detailed process of actual management is beyond the scope of this paper. Also one of the important step is to gather information about the new role that has to be created and for that various methodologies such as interviewing people performing similar roles are adopted. A role has evolved and new expectations are there for the role d. Capability Management Again this is managed by RCM Team and it gets a request for modification of an existing capability or creating a new capability and it then similarly undergoes the process of gathering information and collaborating with the team heads and finally makes the necessary changes. updation. A brief description is as follows. Based on the periodic review a need is felt to edit a particular role.RCM (Role and competency Management) under TCS: A.
Thus the salary is indirectly linked to RCM. The various entitlements of an employee are decided by the role employee is performing (along with the more conventional grade based system). TCS has many Talent development programs and processes when he or she undertakes that role.B. . At an organizational level TCS continuously monitors the set of existing and desired competencies and organise development programs to bridge the gap. At an employee level. This depends on the competencies he or she needs to possess to perform that role. performance management and talent development. Linkages to HR functions Roles and competencies have linkages with the HR policies and also impact the HR policies such as talent acquisition. Talent development After the talent has been identified for the role it needs to be developed. The project owner then sends this refined role profile to the RMG to finally close the position. This further helps in refinement of role profile. The roles and competencies can be treated as base components and have their interdependencies with various HR processes and programs. Performance Management Once a talent has been identified to fulfil a particular role/position then the goals are set for that particular employee based on the role based goal template to evaluate the performance of the employee. coached and prepared for the role so that the required competencies to perform the role are acquired and maintained on the job. Role Based Compensation and benefits Performance pay component of an employee is the result of employee‟s performance in a particular role (achievement of Role based goals). Talent Gap Fulfillment In order to close an open position the project owner first creates a role profile for the open position taking into activities and responsibilities expected out of that role. It is then passed on to the RMG Team to find the Role in the master list which most closely matched the role profile. The RMG team then fulfills this requirement either internally if resource is available or externally if not.
Talent Reallocation Once the project which was assigned to the particular employee gets over he needs to take a new role in a new project. This role movement depends on the career aspiration of the employee and also depends upon his competencies matching with the new role. This includes identifying the talents that can perform that role and also identifying the potential that can be trained to perform the role.This competence based assessment is helpful in assigning roles to the employees in various projects and also in profiling them. Competency Assessment Guidelines This provides guidelines to the assessors (Subject matter experts and supervisors) to complete the competency based assessment. - . Succession Management An important aspect of succession management is the identification of key roles and ensuring a steady pool of successors to fulfill these roles across all levels of organization. It can also be used for performance management . If an employee has performed exceptionally well in the current role he also becomes eligible for high potential program and similar talent development programs. D. C. Roles and Responsibilities Following is the brief description of the responsibilities of various roles which are instrumental in execution of Roles and Competency Management function in the organization.competency development and promotion etc. Talent manager : Responsible for effective tracking and reporting of compliance measures and creating process and system awareness. The competency assessment is not the same as performance assessment as it deals more with the level of competence of the employee rather than his performance . Employee : Responsible for effective utilization of Role and Competency system for career development and managing learning and development and completing necessary assessments for acquiring the requisite competency proficiency levels. The policies of HR are thus affected by the way roles and competencies have been defined in the organization. Supervisor : Responsible for systemic compliance of role and competency management processes and timely assignment of roles and competencies and competency assessment in the system.
- Subject Matter Expert : Responsible for timely closure of competency assessments . . Competency Owner : Responsible for management of competency life cycle within the group. RMG(Resource management group) : responsible for facilitating role-competency based allocation to ensure best fitment. These programs should be other than the technical skills development programs. The findings are collated as below. cab facility etc)? Q2. Views of the Employees In order to get the views of employees a small questionnaire was prepared and was sent to TCS office in Mumbai. The prominent questions are as follows: Q1. II.How satisfied are you with the HR policy in your company with respect to their looking after your well being (for example cafeteria. Competency Expert : responsible for creation of competencies in conjunction with other stakeholders.What kind of development program do you want the company should start that would help you in your performing in your role? Q5. How far is the compensation policy of the company instrumental or detrimental in your motivation level? Do you feel satisfied with the compensation policy? Q6.Give some suggestions for programs or activities that company should start that would help you or encourage you as a person.Are there any programs to increase your capability and skills to perform better in your role? And if there are how helpful do you find them in your development? Q3.How encouraged or motivated do you feel to work for the company? Q4.
” Also the statement that the employees should be given just the right amount of work to keep them motivated and not let them fall into a state of lethargy or frustration was vindicated by the views of many employees . so that if possible employees can stay with their families which according to them increased their productivity.” Some other suggestions also came up in the process of interviewing such as employees were in the favour of compensation being based on metro or non-metro city as the cost of living was substantially different for the two. Also they felt the need for some kind of stress management training particularly when on overseas assignments and moral support when dealing with extreme pressure situations. Some employees were also of the opinion that though the training programs were good . The company should not ignore the skills and capability of an associate. The exact answer of one of the employees was “If organization is growing day by day. .Views of many of the employees were exactly in line with what was stated in the beginning of this paper that the organization development should also include the development of individuals. With respect to training programs almost all the employees were unanimous about its importance and wanted more such programs should be taking place particularly in technology training and domain training. Some of them wanted the duration of the programs to be more than what it was presently. Besides they also wanted the inflation allowance to be reviewed on 6 monthly or annual basis.there was no tracking system for those and learnings were not used in identifying capable people. They also suggested that location preference be taken from the employees. There were some issues with promotion policy in the company as employees wanted improvement in it. They also wanted the compensation should be made at par with industry standards as some felt that it was not upto it. No organization can make progress by ignoring their associates.To quote one “Also there should be equal work division at project level and an associate should not be over utilize or under utilize. making profits and getting new businesses then it must think about associates as well.
3. One side learning of the exercise was that it highlighted some of the differences that exist in organizations with respect to actual policy framework and how it is implemented and what people feel about it. Also they suggested that the people should be assessed for these trainings and capable people be identified based on such assessments. Stress management programs . They also suggested a half yearly or yearly review of inflation allowances. Therefore what we learned was not only how the people are being helped to develop their capabilities but also understood a framework which helped human resource department develop the human capability in TCS. 2. The whole practice also gave us an idea that what TCS is doing to manage its capability to manage human resource although the main focus on how the human resource is actually being helped in capability improvement and management. it was understood that the competencies can be very efficiently managed by tagging them to some roles which are then assigned to the individuals.it is also about how to manage the competencies of the people and to utilize them to the best possible use. Learning The whole exercise of studying the capability management model in TCS was very fruitful as it gave a good idea of how the capability management is carried out in industry . For example there were differences in the perception about the following things: 1. Compensation Although the policies were clearly defined for compensation people were generally not very happy with the policy and also said that they could do with more transparency. it also helps the employees to keep track of their own performance. With efficient competency management not only the company benefits with always monitoring the available competencies and thereby making it easy to manage the people with those competencies. Training and development programs People were satisfied with the number of training programs but had issues with their duration. They found them too short for any meaningful use.These days capability management has become an area of strategic importance with rising attrition rates and so the companies have started focusing on the capabilities management of their human resource . With respect to TCS.The learning from this study was that capability management is not only about looking after the welfare of the people .5.
People were of the opinion that there should be more focus on stress management programs so that people can deal with extreme pressure situations. More and more frameworks are being adopted in helping management in dealing with the issue of managing human capabilities. From the point of view of TCS. We discussed the policies in TCS and how they are helping in providing a framework for capability development. 6. it in a nutshell is doing more right than wrong and has an effective competency management policy which is why inspite of being people not very happy with the compensation aspect . is likely to keep them longer. „„From the viewpoint of the firm such a workplace is ideal because it attracts the most able individuals.the attrition rate is one of the least in IT industry. Conclusion We started with the premise that human capability management is about managing the capability to manage human resource and also managing the capabilities of human resource in itself. and obtains spontaneous effort from their work‟‟ (Csikszentmihalyi . Also as a conclusion drawn from the interaction with the employees it was found out the need is to take due consideration of aspirations of human resources while formulating the policies as the need is to develop the working environment and structure in the organization that would contribute not only to the organizational objective of generating maximum profit for its owners but also to help in the development of human beings as a whole . The conclusion we could draw was that Human capability management in today‟s scenario has become a area of strategic concern and is being increasingly given its due importance in industry. p. 4. Promotion policy This was another grey area of concern as people felt that their aspirations were not being taken care of. 2003. As Csikszentmihalyi has observed. 86). . We also found out about the perceptions of the people and how much variance was there in the policies on paper and their actual implementation. They felt that not much was being done in this regard from Company.
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