Executive Mba Assignment

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Human Capital Management Navin Kumar 6010091005085

COMPENSATION MANAGEMENT AT TATA CONSULTANCY SERVICE LTD.

1(a) Tata consultancy service (TCS) gave importance to its employee because the company thinks the company they are assets. TCS took care of every aspects of human resource management from recruitment to training and career development because the company thinks recruitment is an ongoing processes. The company picked up candidates direct from leading educational institutions to feel entry level vacancies. TCS was well known in the industry for employee training for this purpose the company also opened training centre in thiruvanathapuram, Kerala. TCS spent all most 5 to 6% of its total annum sales on training because company believed to groom its employees into constants and managers. Another important H.R practices at TCS its employee attrition rate was very low, around 12.6% only during the financial year 2007-08.

Although the company were top rated employee in India but it faced criticism for its compensation structure according to the employees the salaries were not on a par with the industry standards. The company also followed the employee stock options to retain its employees. Later came with performance- linked salary structure called economic value added (EVA).EVA determined the compensation based to the value delivered to the employer it was measured at individual, department and inter price level. According to the EVA model, the total corporate value depended on the performance of business units and the performance of the people in those units. The main drivers of EVA were revenue, cost, and capital charge and the revenue drivers were product licensing fees, fees build on for on site or off site work, sales, be level hours,...
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