organisational beauvoir of tcs
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INTRODUCTION
Every organization made up of more than one person will need some form of organisational
structure. An organisational chart shows the way in which the chain of command works withinthe organisation.
The way in which a company is organised can be illustrated for a packaging company. Thecompany will be owned by shareholders that choose directors to look after their interests. Thedirectors then appoint managers to run the business on a day-to-day basis. In the companystructure outlined below:
The Managing Director has the major responsibility for running of the company,
including setting company targets and keeping an eye on all departments.
The Distribution Manager is responsible for controlling the movement of goods in andout of the warehouse, supervising drivers and overseeing the transport of goods to andfrom the firm.
The Production Manager is responsible for keeping a continuous supply of work flowingto all production staff and also for organising manpower to meet the customers' orders.
The Sales Manager is responsible for making contact with customers and obtainingorders from those contacts.
The Company Accountant controls all the financial dealings of the company and isresponsible for producing management accounts and financial reports.
Organizational behavior studies organizations from multiple viewpoints, including behaviorwithin the organization and in relation to other organizations. Micro organizational
behavior refers to individual and group dynamics in an organizational setting. Macroorganizational theory studies whole organizations and industries, including how they adapt, andthe strategies, structures, and contingencies that guide them. Concepts such as leadership, decision making, team building, motivation, and job satisfaction are all facets of organizational
behavior and responsibilities of management. Organizational behavior also deals heavilyin culture. Company or corporate culture is difficult to define but is extremely relevant to howorganizations behave.
https://www.boundless.com/definition/behavior/https://www.boundless.com/definition/organization/https://www.boundless.com/definition/organizational-behavior/https://www.boundless.com/definition/organizational-behavior/https://www.boundless.com/definition/group/https://www.boundless.com/definition/theory/https://www.boundless.com/definition/strategy/https://www.boundless.com/definition/contingency/https://www.boundless.com/definition/leadership/https://www.boundless.com/definition/motivation/https://www.boundless.com/definition/job-satisfaction/https://www.boundless.com/definition/responsibility/https://www.boundless.com/definition/management/https://www.boundless.com/definition/culture/https://www.boundless.com/definition/culture/https://www.boundless.com/definition/management/https://www.boundless.com/definition/responsibility/https://www.boundless.com/definition/job-satisfaction/https://www.boundless.com/definition/motivation/https://www.boundless.com/definition/leadership/https://www.boundless.com/definition/contingency/https://www.boundless.com/definition/strategy/https://www.boundless.com/definition/theory/https://www.boundless.com/definition/group/https://www.boundless.com/definition/organizational-behavior/https://www.boundless.com/definition/organizational-behavior/https://www.boundless.com/definition/organization/https://www.boundless.com/definition/behavior/ -
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HISTORY
Tata Consultancy Services Limited (TCS) is a global IT services, business solutions and
outsourcing company headquartered in Mumbai, India. It is the largest provider of informationtechnology in Asia and second largest business process outsourcing services provider in India.
TCS has offices in over 47 countries with more than 142 branches across the globe, with over 65
offices outside India. TCS employs more than 18,000 consultants and serves hundreds of clients,
providing information technology and business consulting services to organizations in
government, business and industry around the world . TCS accounts for Indias 20 per cent IT
exports. It is a subsidiary of textiles and manufacturing conglomerate Tata Group.
F.C KOHLI was the first general manager under whose leadership TCS pioneered its Indian
effort to create a globally recognizable brand for the Indian software industry in 1968. J.R.D
TaTa was the first chairman, followed by Pankaj Roy. During its initial years it tried building
strong links with academia underlined the intellectual underpinnings of the consulting business.
Professionalism was promoted through participation in the activities of professional societies,
peer recognition and in-house training.
One of TCS' first assignments was to provide punched cards services to a sister concern, Tata
Steel (then TISCO). It later got the country's first software project, the Inter-Branch
Reconciliation System (IBRS) for the Central Bank Of India. It also provided bureau services to
Unit Trust Of India thus becoming one of the first companies to offer BPO services.
Over the past decade, TCS has grown dramatically, doubling its revenues every two years, and is
on the verge of becoming a billion-dollar company.
1974. TCS's first international order came from Burroughs, one of the first business computer
manufacturers
In 1979, TCS delivered an electronic depository and trading system called SECOM for SIS
SegaInterSettle, Switzerland. TCS followed this up with System X for the Canadian Depository
System and also automated the Johannesburg Stock (JSE).
http://en.wikipedia.org/wiki/Burroughs_Corporationhttp://en.wikipedia.org/w/index.php?title=Johannesburg_Stock&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Johannesburg_Stock&action=edit&redlink=1http://en.wikipedia.org/wiki/Burroughs_Corporation -
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In 1981, TCS set up India's first software research and development centre, the Tata Research
Development and Design Center (TRDDC) in Pune. The first client-dedicated offshore
development center was set up for Compaq (then Tandem) in 1985.
In the early 1990s, the Indian IT outsourcing industry grew tremendously due to the Y2K bug
and the launch of a unified European currency, Euro. TCS pioneered the factory model for Y2K
conversion and developed software tools which automated the conversion process and enabled
third-party developers and clients to make use of it. In 1999, TCS saw outsourcing opportunity in
E-Commerce and related solutions and set up its E-Business division with ten people. By 2004,
E-Business was contributing half a billion dollars (US) to TCS.
On 9 August 2004, TCS became a publicly listed company, much later than its rivals, Infosys,
Wipro and Mahindra Satyam.
During 2005, TCS ventured into a new area for an Indian IT services company - Bioinformatics.
In 2008, the company went through an internal restructuring exercise that executives claim
would bring about agility to the organization.
In 2011, the company entered the Small and medium enterprises (SME) market with cloud-
based offerings.
http://en.wikipedia.org/wiki/Compaqhttp://en.wikipedia.org/wiki/Tandem_Computershttp://en.wikipedia.org/wiki/Y2Khttp://en.wikipedia.org/wiki/Software_toolshttp://en.wikipedia.org/wiki/E-Commercehttp://en.wikipedia.org/wiki/E-Businesshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Wiprohttp://en.wikipedia.org/wiki/Mahindra_Satyamhttp://en.wikipedia.org/wiki/Bioinformaticshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Cloud_computinghttp://en.wikipedia.org/wiki/Cloud_computinghttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Bioinformaticshttp://en.wikipedia.org/wiki/Mahindra_Satyamhttp://en.wikipedia.org/wiki/Wiprohttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/E-Businesshttp://en.wikipedia.org/wiki/E-Commercehttp://en.wikipedia.org/wiki/Software_toolshttp://en.wikipedia.org/wiki/Y2Khttp://en.wikipedia.org/wiki/Tandem_Computershttp://en.wikipedia.org/wiki/Compaq -
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ORGANISATIONAL DEVELOPMENT
At TCS, OD has contributed immensely towards redefining the organizations relationship to its
markets, key stake holders and environment. To add to this OD brought about a drastic changeon the cultural perspective.
In the years 1998-99, despite the fact that TCS had emerged as the largest Indian software
company it still suffered on its operational side.
The expertise was diffused and in order to meet the needs the employees were rotated
across domains and skills. A lot of emphasis was paid to the Voice of the Customer, incomparison to the Voice of employee
Managers mainly focused on short-term projects instead of concentrating on long term
ones. They followed a reactive approach and hence lacked a proactive approach.
Lack of focus on innovation and experimentation.
Absence of a formal system where in the knowledge could be sharedfor ease ofreplication across projects.
Absence of team based rewards as focus was on individual performance.
Absence of endeavors towardsImage building which lead to greater difficulty inattracting quality talent.
By 2002, the need to align with the market, customer and business requirements was felt at an
organizational level and hence a OD intervention was sought.
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REALIGNMENT AND RESTRUCTURING AT TCS
As the market decides the strategy to be adopted, structure decides the form, technology decides
capacity and synergy in output comes from the culture, an organizational design is needed to
carry all these together in a holistic manner.
Alignment and Attunement:The four voices: voices of the employee, customer, technology and wealth need to be attuned.
Hence factors like resource allocation, team-work, learning opportunities for individuals and
teams, factors that would increase productivity need to be paid emphasis.
Goal Al ignment & Balanced Scorecard
- Importance to goal alignment was now understood & various means to institutionalize
goal-oriented performance management (from the institution to individual levels ) were
considered.
- The concept of the Personal Score Card was introduced wherein the goals ,tasks of each
individual was assigned. The Balanced Scorecard approach was proposed which talked
about : Shareholder (Financial Goals ), Technology ( Quality, Cost), Customer ( Customer
Satisfaction), Employee ( Learning & Development).
- Regular online workflow reviews were carried out to track individual performance
against stated goals. On the basis of these the rewards and incentives were designed.
- Focused Career Planning and the Mentoring process was also put in place for the real
talent in the organization.
Account E xcell ence Programme (AE P)
This dealt with 7 key categories eg leadership, Strategic Planning, Customer and market focus,
Measurement, Analysis and Knowledge Management, HR Focus, Process Management and
Business Results.
The AEP has mainly talked about quality, service, cost and cycle time by benchmarking:
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Meeting all customer requirements Minimizing variances in processes Elimination of waste Efficient Product Service continuous Process Improvements
Darpan
The presence or lack of communication or the lack of it became one of the biggest hurdles in
employee motivation and managerial decision-making during the aggressive expansion strategy.
In response to this Darpan, was initiated (objective to Reflect and Improve). A Questionnaire
was prepared to collect the preliminary data which included capturing associate feedback across
5 categories: Career &Job, Communication, Culture & Pride, Leadership: and Supervisor.
Outcomes from Darpan Increase in the Associate Satisfaction Index (ASI) Increase in Customer Satisfaction Index (CSI). Teams were now able to associate themselves with the bigger picture of an organization
ie their contributions that added value to the customers and the organization.
Lower attrition A transparent culture was encouraged. High focus on Corporate Social Responsibility (CSR)
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SERVICES
BUSINESS INTELLIGENCE & PERFORMANCE MANAGEMENT
The business environment today is more dynamic than ever, with mergers and acquisitions,
consolidation and regulatory changes. To succeed, an enterprise needs to develop an ability to
sense these changes, and thus respond to them quickly and smartly. TCS' Business Intelligence
and Performance Management solution helps enterprises in fulfilling the aspirations of being
agile, adaptable and efficient.
TCS SOLAR Framework is a Service-Oriented Architecture (SOA) framework of integration
and information management services. The framework helps coalesce business intelligence,
business process management, enterprise data management, integration and knowledge
management/enterprise content management initiatives, thus driving down the cost of IT and
providing the agility to address changing business and regulatory requirements.
TCS SOLAR Framework helps you optimize and monitor business processes on a granular level.
This could lead to at least 10% increase in operational efficiencies and up to 90% reduction in
cost for adapting to new regulatory compliance requirements.
With TCS SOLAR Framework, the enterprise can achieve the following:
Converge business intelligence and knowledge management through real-time integration Quickly re-orient your business processes at a granular level in response to business
environment changes
Predict and improve the quality of service Have the ability to easily adapt to current and new regulatory needs
BUSINESS PROCESS OUTSOURCING
As most organizations today value the merit of staying lean and fit, they are increasingly
looking at outsourcing non-core operations. Adopting this approach allows them to focus on their
core competencies and respond with agility to the ever-changing market and business needs. At
TCS BPO, a strong understanding of industry-specific BPO services and cross-industry solutions
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is provided with new business processes and innovative models that seamlessly align with the
business requirements.
WHAT TCS PROVIDES
It studies the business processes and identifies how they can provide innovative solutions
that will best fit the business needs and address the challenges the client organization may
face.
Boosting your bottom line through automation, productivity arbitrage and wage cost
arbitrage
Leveraging its existing talent pool and industry experience to become part of the clients
think tank.
Building agility across your organization through strategic initiatives that adapt to
accelerating market trends
Helping you reach out to clients through innovative go-to-market strategies Reducing time-to-market by creating new go-to-market strategies.
OUR SERVICE OFFERINGS
The robust and mature processes coupled with technical and functional expertise in several
industry verticals have placed us at the forefront of providing best-in-class services for the
following industries:
Banking & Financial Services Insurance Life Sciences & Healthcare Travel & Transportation Telecom
Retail & Consumer Packaged Goods Energy, Resources & Utilities
Our cross-industry or horizontal functions spectrum includes the following:
Finance & Accounting Human Capital Management
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Supply Chain Management High Tech BPO
CONNECTED MARKETING SOLUTIONS
TCS Connected Marketing Solutions aim to bridge marketing and IT, providing reality-based
innovations delivered in partnership with our customers marketing organization, leveraging
global best practices and deep domain expertise, thus enabling you to engage, measure and
optimize interactions with target audiences across all the touch points. The solutions allow for
enhanced marketing velocity, an overall increase in Return on Marketing Investment (RoMI) and
enable you to tap the evolving digital channels such as mobile and social media marketing. Our
solutions include consulting services, business solution frameworks and cloud-based platforms,
all of which are backed by strong domain and delivery expertise in areas including enterprise
marketing management, interactive marketing and marketing analytics.
platform basedservices
transformationaloutsourcing
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CONSULTING
TCS Global Consulting delivers integrated, end-to-end IT solutions and services to help client
transform business in the right way. they leverage their unparalleled technology expertise anddeep industry knowledge to develop best-in-class, custom solutions that make your business
more efficient, agile and responsive to customer needs and market demands.
IT SERVICES
TCS delivers excellence and certainty across all of your enterprises IT needs. Lea rn more about
the following areas:
Custom Application Development Application Management Migration & Re-engineering System Integration Testing Performance Engineering
ENGINEERING AND INDUSTRIAL SOLUTIONS New Product Development (NPD) Solutions: Product Design, Product Engineering and
Product Manufacturing with a focus on Mechanical Design, Embedded Systems and
Engineering Automation
Plant Solutions and Services: Process Plant Engineering, Digital Manufacturing
Solutions, Manufacturing Execution & Intelligence (MEI), Control Systems Solutions,
Sourcing Solutions and Integrated Asset Management
Product Lifecycle Management (PLM) Solutions: PLM Business Consulting, PLM
Product Implementation and PLM Support
Geospatial Technology Solutions: In-depth geo-spatial information system capabilities to
implement and integrate geo-spatial technology with other business systems
MOBILITY SERVICES AND SOLUTIONS Bring computing and data to your point of need in your en terprise business processes
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Transform customer service into anytime, anywhere contextual interactions
MISSION OF TCS-
The annual report 2010-11 states the mission of the company as follows-
TCS has built a global reputation for its ability to help custo mers achieve their business
objectives by providing innovative, best-in-class consulting, IT and IT-enabled solutions and
services. TCS core set of values underpin all activities in the Company and these include
leadership with trust, integrity, excellence, respect for the individual and learning/sharing.The
Company plans to further strengthen and consolidate its position in the global IT industry as an
integrated full services player with a global footprint interms of innovation, operations andservice delivery.
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ORGANIZATION AMBIENCE AND DCOR
The organization and the office decor in TCS is modern at Noida sector 3 office. Starting from
the reception to the work stations has a modern look. The paintings and the displays with missionand vision of the company enhances the employee relatedness with the company. The work
stations have a modern look with cubicles in which provide better utilization of space and also
add to the look and feel of the place. There are many conference rooms with stare of art facilities.
Canteen area has a big sitting area which can accommodate 100 people as there are no different
timings for lunch hours and employees of all designations can go in at same hours. Also TCS has
invited proposals from renowned caterers like Sodexho, RKHS etc.
VALUE CREATION MODEL FOR TCS
learning
satisfaction
flexibility
teamwork
processes,business
excellence,innovation,global
deliverynetwork,innovati
on
roi,profitability,growth,expansion,s
trategicmarketing,retaine
d earnings.cash
value forinvestors
andemployees
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There are certain features that are unique only to TCS that help the organization in creating
value. TCS serves large and fast-growing organizations who share a common set of objectives:
Increase profitability and efficiency by doing more with less Rapidly and effectively respond to the changing market demands, thereby improving
organizational agility
Leverage IT as a strategic driver for competitive advantage, not just as a business utility
GLOBAL NETWORK DELIVERY MODEL
Global Network Delivery Model is the engine that allows TCS to provide reliable, scalable and
cost-effective delivery of services and solutions. This time-tested model has helped it to achieve
a client satisfaction rating of 89% for meeting quality expectations and an average project budget
variation of just 3%, both figures ranging far higher than industry standards.
With TCS' Global Network Delivery Model, clients can choose a sourcing strategy best suited
to your most important business considerations, e.g., cost optimization, cultural alignment, and
proximity of location, language capabilities or risk mitigation.
Be assured of the highest quality of service regardless of the mix of services, technologies and
locations.
Lower the Total Cost of Ownership (TCO) of Information Technology by managing different
service streams such as consulting, IT services, IT infrastructure services, etc. with the help of a
unified delivery framework.
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GOAL ALIGNMENT & BALANCED SCORECARD:
In the interest of better alignment, a need was felt to re-look at a few organizational processes
and systems, as for instance, the performance management and appraisal system at TCS. A
Teach-Train-Transfer workshop on Goal alignment was conducted, with help from expert OD
consultants to build the context, to think through goal setting at TCS with a systems perspective
to goal alignment & to explore means of institutionalizing goal-oriented performance
management within the organization.
The workshop further introduced the concept of the Personal Score Card, and clearly outlined
what would define goals, outputs, performance management, Economic Value adds & the ways
and means for facilitating goal alignment.The Balanced Scorecard approach was proposed, introducing corporate
goals, which touched upon the following:
Voice of the Shareholder - Financial Goals e.g. Wealth creation Vector of Technology Technology Goals e.g. Quality, Cost, Delivery dimensions Voice of the Customer Customer/ Market Goals e.g. Customer Satisfaction Voice of the Employee Learning & Development e.g. Employee Satisfaction
Identification of talent for higher responsibility was also seen as a key focus area, highlighting
the need to have a focused Career Planning and Mentoring process. The process of role
alignment was further thought through, as well as the need for assessment and coaching for role
transitions. Towards employee satisfaction and towards ensuring sustained availability of
sufficient managerial and leadership talent, the need to create succession plans at all levels and to
track and reward high fliers was brought out.
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VALUE CARDS
Value card for the relationship was fallout of the analysis of tensions existing in the four
dimensions as represented by Voice of Customer, Strategy, Employee and Technology. A tool
called Value Card was used to analyze the problems faced by the relationship in relation to
these tensions and to arrive at workable solutions to the identified problems,within designated
timeframes.
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PROCESSES
HUMAN RESOURCE PROCESSES
Technologyadoption,adaption
and innovation
Conservation ofenergy
Research anddevelopment
Global networkdelivery model
Customer centric
Talent Acquisition andmanagement
Talent diversity
Learning anddevelopment
Leadership development
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due, which leads to absence of expertise in domain knowledge. This has also lead to
discontent among employees.
6. SECURITY THREATS to sensitive customer and business data. The challenge for TCSis to ensure that the sensitive data is secure.
7. ENVIRONMENT: The problem with outsourcing in countries like United States ofAmerica is posing a threat. In the recent times a bill has been passed in the state of New
Jersey that allows only the citizens or legal non-Americans to be given contracts. This
legislation has also affected some other states like Missouri, Connecticut, Wisconsin and
Maryland.
8. MAINTAINING ITS EXCELLENT PERFORMANCE STANDARDS:One of themajor challenges for the Indian information technology industry was to keep up with the
competition in the industry.9. ECONOMIC CONDITIONS: An increasingly uncertain environment in US and
European economies is a matter of concern for TCS.
The organization design is a source to the challenges TCS faces today. The mechanistic structure
at TCS has restricted employees to exhibit their creativity. Lack of autonomy and control
amongst employees has caused lead to lower levels of intrinsic motivation on the job. This had
lead to lower satisfaction levels of employees at TCS which in turn has been leading to higher
attrition levels.
The functional structure and the hierarchal structure dont support team work. Lack of cross
functional teams at TCS also discourages generation of new ideas. TCS hasnt been able to focus
on R&D due to the mechanistic structure, as a result TCS is still struck with the same kind of
work it has been doing. A key concern for TCS is competition from existing players as it has
generated competition for existing business and created significant pricing pressures.
Mechanistic structure has made the organization rigid and is discouraging TCS to foray into
taking up high value projects. The structure has been preventing TCS to adapt to the changingenvironmental needs. Globally, firms such as EDS have positioned themselves as capable of
undertaking large, product development projects in order to differentiate themselves from
competitors such as Cognizant and Accenture that focus on higher value-added work such as
consulting.
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STAR MODEL OF ORGANIZATION DESIGN FRAMEWORK
DESIGN ELEMENTS
STRATEGY: The Companys strategy specifies the goals and objectives to be achieved as wellas the values and missions to be pursued. It sets out the basic direction of the company. TCS
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follows a cost leader strategy. The focus for TCS is to attain competitive advantage is to reduce
the per employee cost and attain economies of scale. This is the reason TCS doesnt lay much
importance to R&D.
STRUCTURE: The structure of the organization determines the placement of power andauthority in the organization. TCS has a mechanistic structure wherein the there is a formal
structure and control is imposed on employees. Rules, procedures and a hierarchy of authority
help in getting work done in time and with minimum cost. TCS has a matrix structure where is
departments exists based on specialization. Decision making is centralized.
PROCESSES: TCS has vertical processes. The needs of different departments are centrally
collected, and priorities are decided for the budgeting and allocation of the resources to capital,research and development, training, and so on. Communication tends to follow formal channels
and employees are given specific job descriptions delineating their roles and responsibilities.
Coordination is maintained through the chain of command.
Vertical processes
PEOPLE: People in star model depict the human resource policies of recruiting, selection,rotation, training, and development. Human resource policies when in the appropriate
combination produce the talent required by the strategy and structure of the organization,
generating the skills and mind-sets necessary to implement the chosen strategy. The employees
in a service organization are the biggest source of competitive advantage. There is continuous
investment in learning, and an active sharing of knowledge with the aim to convert learning into
action.
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REWARDS: The purpose of the reward system is to align the goals of the employee with thegoals of the organization. It provides motivation and incentive for the completion of the strategic
direction. The organizat ions reward system defines policies regulating salaries, promotions,
bonuses, profit sharing, stock options, and so forth. Reward structure at TCS is primarily focused
on individual performances. Team rewards is not a part of the compensation.
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STRUCTUREThe organization structure adapted by TCS is mechanistic in nature. A mechanistic organization
is characterized by the following structural factors:
Degree of work specialization is high Departmentalization is rigid Managerial hierarchy has many layers Span of control is narrow Decision making is centralized Chain of command is long Organizational structure is very tall
The figure above depicts the organization structure of TCS. Which clearly demonstrates it
has many layers of hierarchy and decision making is centralized. While in an organic
structure its a flat organization.
COO ANDEXECUTIVE
OFFICER
HEAD-GLOBALPRESALESSUPPORT
HEAD-PMO CHEIF TECHNICALARCHITECT/HEAD
HEAD BUSINESSFINANCE
HEAD PROCESS
HEAD HR
RESOURCEMANAGEMNT
LEAD
HEADGOVERNMENT
ISU
EXECUTIVEASSISTANT
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CENTRALIZATION VS DECENTRALIZATION:
TCS as an organization is decentralized as there are many functional groups and the main
head/corporate office does not have the entire ownership of various processes. When it comes to
different functional the process is centralized within this functional. For example Recruitment,L&D and MATC are centralized. For process standardization, TCS used industry standards to
define the fundamental governance processes for centralized services to be implemented across
locations.
As the organization was going through a transformation, clients want a step-by-step solution to
minimize the impact of change. To deliver quick results, the ERP function was chosen to pilot
the implementation of the governance model to deliver centralized services.
Different sectors and companies use the centralized approach. The centralized approaches have
several limitations like an enormous amount of knowledge would be required to be able to deal
effectively with user information requests that cover variety of tasks. A centralized system
constitutes:
A processing bottleneck A single point of failure
DEPARTMENTS IN TCS:
Departments in TCS can be broadly classified into:
Functional departments: Technical, Sales, Marketing, Development and Operations.
Support department: Administration, IDM and HR
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DIVISIONS:
The divisions in TCS are referred to as ISUs or Industry Solution Units. Different ISUs are
mentioned below:
Manufacturing Hi-Tech BFS NGM-India Retail Travel, Transportation and Hospitality
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TCS BUSINESSES
Services:
IT Services IT Infrastructure Services Enterprise Solutions Consulting Business Process Outsourcing Platform BPO Solutions Business Intelligence & Performance Management Engineering & Industrial Services iON Small and Medium Business Connected Marketing Solutions Mobility Solutions and Services
Software:
TCS BaNCS TCS Technology Products
Integration Mechanism:
To improve the collaboration between the Industry Solutions Units (ISUs) and Horizontal
Service Delivery Units (HSDUs) and to enhance the efficiency of sales and delivery functions,
the Contract Management System (CMS) and the Project Accounting (PA) modules have been
updated. The changes enable involvement of the HSDUs right from the beginning that is from
the contract and the WON-creation stages of an engagement, to bring in early visibility and
ownership. The HSDUs included are Infrastructure Technology Infrastructure Services (IT IS),
Business Process Outsourcing (BPO), Engineering and Industrial Services (EIS), Assurance
Services, and Global Consulting Practice (GCP).
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BEHAVIOR AND FORMALIZATION
The behavior in the organization is standard but not very standard and there is some room for
flexibility and adjustment plays an important role in coordinating people and activities.
People:The standard working hours for the organization is 9 hours from 9 A.M. to 6 P.M. and a proper time swipe- in and swipe- out is maintained through swipe cards. Also officially there is
no provision of flexi hours within the organization. However, in exceptional cases some amount
of flexibility is allowed by the line managers and HR so as to accommodate the employees.
Activities:The activities carried out are very standard and has very low level of flexibility. Someof the examples are compensation, recruitment and appraisal systems.
The degree of formalization is not very high in day to day activities and oral communication and
written communication when these communications are internal. However, when the interactions
are with client all communications are formal to a very large extent. The rules and regulations
are to be followed with certain degree of flexibility in working hours and application of leaves.
ADVANTAGES AND DISADVANTAGES OF THE STRUCTURE AT TCS
The Factors that influence organization structure are:
1)Strategy
2)Technology3)Size4)Environment
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The main advantage of a mechanistic structure is its ability to achieve efficiency. Therefore, in
organizations that are trying to maximize efficiency and minimize costs, mechanistic structures
provide advantages. The source of competitive advantage for TCS lies on achieving operational
efficiency. TCS follows a cost leader strategy. TCS is a cost leader in the IT business which
helps it to bag projects and thwart competition from players like Accenture, HP, Cognizant etc.
The projects undertaken by TCS dont feature product development. The projects are lower
down the value chain and involve building IT systems for the clients. Clients outsource low risk-
low cost projects to Indian IT companies where as the foreign IT firms tend to get projects which
are high value-high cost ones. The focus for TCS to attain competitive advantage is to reduce the
per employee cost and attain economies of scale. These are the reasons that TCS follows a
mechanistic structure. The fact that TCS continues to do the same kinds of work that it currently
does justifies the mechanistic structure.
Advantages of mechanistic structure:
1. The formal structure and control imposed on employees allows TCS to conform to
clients' requirements and various compliances.
2. There is immense time and margin pressure from clients. Rules, procedures and a
hierarchy of authority help in getting work done in time.
3. Communication tends to follow formal channels and employees are given specific jobdescriptions delineating their roles and responsibilities. This helps in establishing
accountability for every employee.
4. The mechanistic structure helps in avoiding role ambiguity, and uncertainty among
employees.
5. Due to the mechanistic structure, coordination is maintained through the chain of
command.
6.
The quality of product is ensured , as work is assigned to individuals according to theirspecialization.
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Disadvantages of mechanistic structure:
1. Mechanistic organizations are often rigid and resist change, making them unsuitable for
innovativeness and taking quick action.
2. Mechanistic structure inhibits entrepreneurial action and discouraging the use ofindividual initiative on the part of employees.
3. The structure limits individual autonomy and self-determination, which will likely lead to
lower levels of intrinsic motivation on the job. This had lead to lower satisfaction levels
of employees at TCS which in turn has been leading to higher attrition levels.
4. Highly mechanized organizations operating in rapidly changing environments run the risk
of becoming obsolete as competitors sacrifice maximum efficiency in exchange for
flexibility to tackle new environmental conditions. IT business is saturated with players
who work on same kind of business model as TCS has.
CONTEXTUAL DIMENSIONS OF ORGANIZATIONAL DESIGN
contextualdimensions
size
organisationaltechnology
environmentgoals andstrategy
culture
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WORK CULTURE-
KEY VALUES-
Visionary Leadership Customer-driven Excellence Organizational and Personal Learning Valuing Employees and Partners Agility Focus on the Future Managing for Innovation
Management by Fact Social Responsibility Focus on Results and Creating Value Systems Perspective
encouraging, supporting andacting upon the findings of
learning activities;
aligning the organisationsstructure to support delivery
of its policy and strategy;
personally communicatingthe organisations mission,vision, values, policy and
strategy, plans, objectivesand targets to people;
ensuring a process for themeasurement, review and
improvement of key resultsis
developed and implemented
ensuring a process, orprocesses, for stimulating,identifying, planning and
implementing improvementsto enabling approaches,
understanding the internaland external drivers of
change for the organisation;
communicating changes andthe reasons for them to the
organisations people and
other stakeholders;
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PORTERS FIVE FORCE MODEL -
SUGGESTED CHANGES IN ORGANIZATION DESIGN
STRATEGY:
IT business in India is saturated with players which follow a cost leader strategy. The
increasing margin and time pressure from clients warrants that TCS shifts its strategy
from that of a cost leader to differentiator. This would help TCS to target projects which
are high on value chain.
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Lack of a structured approach to evaluate, imbibe and disseminate the best practices.
Although it has an understanding of its competitive position, but the measurement,
assessment and impact of the threat is not well defined.
Though the short-term horizons have been addressed the organizational strategic
objectives in the long term have not been much taken care of.
STRUCTURE:
TCS needs to have organically driven structure which would foster collaboration and
team work. Cross functional teams are necessary to deliver products which are above the
value chain. The environment is highly uncertain, unstable or subject to vary rapid
changes in market conditions. There is a need that personnel are empowered to make
decisions and resolve problems themselves.
REWARDS:
The reward system must be congruent with the structure and processes to influence the
strategic direction. Reward systems are effective only when they form a consistent
package in combination with the other design choices. The reward system at TCS has tochange from individual to team based. Incentive for the employees to perform as a team
needs to be there for delivering superior products.
Lack of alignment in the results of the performance analysis with business results and
objectives.
The performance projections for measures and indicators have not been fully evolved, the
absence of these measures. This hampering the goal setting process .
PROCESSES: TCS needs to have horizontal processes, also known as lateral processes. It is designed
around the workflow, such as new product development or fulfillment of a customer
order.TCS should build a culture of encouraging thinking &creating forums for dialogue,
while encouraging leadership at all levels as the attributes of Customer Satisfaction
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measurement show some degree of variance to that of the stated customers key
expectations.
. Risk taking, expressing differences and constantly generating new knowledge should be
encouraged among the employees.
The lack of integration of process improvement initiatives such as PROPEL, PEEP etc.,
which influence the associate, work environment.
The absence of a well-defined approach to evaluate the cost effectiveness of digitization
process.
Monitoring and tracking of customer satisfaction metrics is done only at individual
customer levels. Monitoring at corporate level will help in improving its overall building
processes analysis thereby giving it a competitive advantage .
Lateral Processes
PEOPLE:
Human resource policies also build the organizational capabilities to execute the strategic
directions. The employee needs to be given autonomy and control over their work which
would help in encouraging creativity. Valuing of employees should be institutionalized
through establishing processes that enable and enhance individual performance.
The productivity levels of people is lower than that of its competitors majors so
improving an employees realization would enable it to achieve its stated vision
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. REFERENCES
1. www.TCS.com
2. http://www.wikipedia.org/
3. TCS Ultimatix
4. Organiization Theory Change and Design- Richard L. Daft
http://www.tcs.com/http://www.tcs.com/http://www.wikipedia.org/http://www.wikipedia.org/http://www.wikipedia.org/http://www.tcs.com/
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