ContentsHISTORY.......................................................................................................................................................2

ORGANISATIONAL DEVELOPMENT..............................................................................................................4

REALIGNMENT AND RESTRUCTURING AT TCS.............................................................................................5

SERVICES......................................................................................................................................................7

ORGANIZATION AMBIENCE AND DÉCOR...................................................................................................12

VALUE CREATION MODEL FOR TCS............................................................................................................14

THE SYSTEM CALLED ”TCS”........................................................................................................................19

CHALLENGES FACED BY TCS.......................................................................................................................23

STAR MODEL OF ORGANIZATION DESIGN FRAMEWORK..........................................................................25

STRUCTURE................................................................................................................................................27

TCS BUSINESSES.........................................................................................................................................31

Behavior and Formalization.......................................................................................................................32

COMPETENCIES.........................................................................................................................................33

Advantages and disadvantages of the structure at TCS.............................................................................37

CONTEXTUAL DIMENSIONS OF ORGANIZATIONAL DESIGN.......................................................................39

SUGGESTED CHANGES IN ORGANIZATION DESIGN...................................................................................43

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 information

technology 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 India’s 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).

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.

ORGANISATIONAL DEVELOPMENT

At TCS, OD has contributed immensely towards redefining the organization’s relationship to its

markets, key stake holders and environment. To add to this OD brought about a drastic change

on 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, in

comparison 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 shared for ease of

replication across projects.

Absence of team based rewards as focus was on individual performance .

Absence of endeavors towards Image building which lead to greater difficulty in

attracting 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.

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 Alignment & 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 Excellence Programme (AEP)

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:

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)

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

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 client’s

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

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.

CONSULTING

platform based services

transformational outsourcing

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 and

deep 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 enterprise’s IT needs. Learn 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 enterprise business processes

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 customers 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 and

service delivery.”

ORGANIZATION AMBIENCE AND DÉCOR

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 mission

and 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

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

learningsatisfaction

flexibilityteamwork

processes ,business excellence,innovation,globa

l delivery network,innovation

roi,profitability,growth,expansion,strategic

marketing,retained earnings.cash

value for investors and

employees

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,

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.

global workforce

integrated processes

multi-tiered infrastructure

INNOVATION

A pioneer in software R&D, TCS has an innovative environment that offers you research-based

solutions in leading-edge technologies that will help you meet your IT expectations and support

business objectives.

Innovation Strategy: Research Segmentation, Customers Expectations and Alignment

(Research Themes).

Innovation Ecosystem: TCS Innovation Labs, TCS Co-Innovation Network (COIN)™,

Incubation Group

Innovation Events: “Innovation Days” help key customers and TCS researchers to collaborate

on research toward specific solutions. “Innovations Forums” held annually in the UK and USA

serve as confluences of thought leaders and researchers from academia, start-ups and customers,

bringing value through shared experiences and offering a preview of technologies and solutions

of the coming decade.

Innovation Culture: Awards for young innovators, coding competitions, research workshops

and conferences where scientists of international repute participate and create a fertile

environment for TCSers, enabling them to think creatively around customer solutions.

Intellectual Property: TCS has created a strong IPR base and has stepped up investments in

building assets such as patents, copyrights and trademarks.

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.

PROPEL-

PROPEL was introduced as a revolutionary intervention with the dual objectives of facilitating

the exchange of ideas and helping in immediate problem solving, while also encouraging

bonding and self-development among and within teams.

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.

THE SYSTEM CALLED ”TCS”

Output(tangibles):

Increased revenue

pat(profit after tax)

profitability

Services-

Application development and maintenance

Business intelligence

Enterprise solutions

Assurance engineering

IT infrastructure services

BPO

Consultancy

Asset leveraged solutions

Eco sustainability services

Software products-which contribute almost 36% of the total revenue.

Med Mantra - TCS Hospital Management and Information Solution

Tata Accounts Receivable and Billing System (TARABS)

TCS Clin-e2e

TCS Silicone Ambulatory ECG Device and Solution

TCS Enterprise Integration and Control Environment Solution/ Energy and Utilities

TCS Bio-informatics Solution

VERICUT - Machine Simulation Software

Process clouds-TCS is offering solutions with relation to the cloud paradigm in the human

resource management, procurement, analytics as well as finance and accounting.

iON-which is an integrated solution for small and medium integrated markets.

Output(intangibles)-

Extremely satisfied workforce

Operational excellence

PROCESSES

HUMAN RESOURCE PROCESSES

Technology adoption,adaption

and innovation

Conservation of energy

Research and development

Global network delivery model

Customer centric

Talent Acquisition and management

Talent diversity

Learning and development

Leadership development

INPUTS

People resources-

TCS has a workforce of around 400,30% of which is comprised by women. The average age of a

TCS employee is 28yrs and the minimum experience is close to around two and a half years. The

attrition rate as calculated by the company is less than 12% for the year 2010.People from

diverse backgrounds work in the company.

CHALLENGES FACED BY TCS

The major challenges faced by TCS are:

1. ATTRITION: Attrition rate at TCS is at all time high of 16%. Talent retention is the

major challenge faced by TCS. The competitive advantage for a service organization is

from its employees. Losing its efficient employees to its competitors is major downfall

for TCS.

2. COMPETITION: Increased and aggressive competition is a major concern for TCS. A

key concern for TCS is competition from existing players as it has generated competition

for existing business and created significant pricing pressures.

3. REVENUE PRESSURE: To be the top IT Company in India, TCS has to beat the

growth of the other IT companies. This has lead TCS to focus on short term goals, rather

than pursuing long term strategy. TCS is focusing on getting the short term project, to

sustain its revenue and a lesser investment was done to satisfy the long term objective.

4. BARGAINING POWER OF CUSTOMERS : Increased bargaining power of the

consumers and shrinking margins is other challenge faced by TCS. There was pressure

from customers even for schedules for faster delivery.

5. LACK OF DOMAIN KNOWLEDGE : General lack of domain expertise outside the

financial services sector is a challenge. Employees are moved across domains and skills

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 TCS

is to ensure that the sensitive data is secure.

7. ENVIRONMENT : The problem with outsourcing in countries like United States of

America 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 the

major 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 don’t support team work. Lack of cross

functional teams at TCS also discourages generation of new ideas. TCS hasn’t 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 changing

environmental 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.

STAR MODEL OF ORGANIZATION DESIGN FRAMEWORK

DESIGN ELEMENTS

STRATEGY : The Company’s strategy specifies the goals and objectives to be achieved as well

as the values and missions to be pursued. It sets out the basic direction of the company. TCS

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 doesn’t lay much

importance to R&D.

STRUCTURE : The structure of the organization determines the placement of power and

authority 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.

REWARDS : The purpose of the reward system is to align the goals of the employee with the

goals of the organization. It provides motivation and incentive for the completion of the strategic

direction. The organization’s 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.

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 it’s a flat organization.

COO AND EXECUTIVE

OFFICER

HEAD-GLOBAL PRESALES SUPPORT

HEAD-PMO CHEIF TECHNICAL ARCHITECT/HEAD

HEAD BUSINESS FINANCE

HEAD PROCESS

HEAD HR

RESOURCE MANAGEMNT

LEAD

HEAD GOVERNMENT

ISU

EXECUTIVE ASSISTANT

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

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

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).

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. Some

of 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.

COMPETENCIES

Core competencies are particular strengths relative to other organizations in the industry which

provide the fundamental basis for the provision of added value. It is communication, an

involvement and a deep commitment to working across organizational boundaries.

A core competency can take various forms, including technical/subject matter know-how, a

reliable process and/or close relationships with customers and suppliers. It may also include

product development or culture, such as employee dedication, best Human Resource

Management (HRM), good market coverage etc.

The most important competency of tcs which help it in gaining competetive advantage is through

the use of their TCS innovation labs and co-innovation network,their collaborative r&d and

innovation engine that works to successfully exploit and commercialize new ideas,technologies

and best practices. TCS Innovation Labs provide environments in which new domain solutions

can be developed, incubated, and piloted using the latest technologies in a cost-effective

environment before enterprise-wide deployment. They give TCS customers ‘on-demand’ access

to innovation and creativity with a team comprising of domain experts, business process

analysts, technology specialists, and an R&D team.

Various innovation labs of tcs are as follows

TCS Innovation Lab Convergence -The lab works on Content Management Systems,

content delivery systems, convergence engines, networks such as 3G, WiMax, WiMesh,

IP Testing for Quality of Service, IMS, OSS/BSS systems, and others.

TCS Innovation Lab, Delhi -focus of this lab is emerging technologies such as Software

Architectures, Software as a Service, Natural Language Processing, Text, Data and

Process Analytics, Multimedia Applications and Graphics. The lab has developed the

TCS Instant Apps Technology, which enables development of situational applications

entirely within a browser and by business analysts instead of by developers, and TCS

Natural Language Interface Technology, which enables conversational interaction with

business applications over email, chat, and SMS

TCS Innovation Lab - Embedded Systems -focuses on multi modal sensing, wireless

communication, security, and intelligence. Technologies of focus include medical

electronics, WiMAX, and WLan. This lab has developed the Silicon Locket, an ECG-

monitoring system for remote cardiac diagnostics and tele-consultation that makes

healthcare patient-centric. The Embedded Systems lab has also developed the WiMAX

(IEEE 802.16), the next wave of wireless technology to provide an elegant solution for

“last-mile” connectivity.

TCS Innovation Lab, Hyderabad : Focuses on computational methods in life sciences,

meta-genomics, systems biology, e-security, smart card-based applications, digital media

protection, nano-biotechnology, quantitative finance

TCS Innovation Lab - Media and Entertainment -digital media distribution, digital

asset management, theatrical distribution systems, contracts and rights management

systems, ERP, data warehousing, application maintenance outsourcing etc.

TCS Innovation Lab, Mumbai : Focuses on speech and natural language, wireless

systems and wireless applications (BREW Centre of Excellence).

TCS Innovation Lab - Peterborough, England : Focuses on New Wave

Communications for Enterprise (SIP based IMS platform technology, browser based Web

2.0 portal technology), Enterprise Search (Caché database technology), Enterprise 2.0

(Browser based Web 2.0 technologies), Utility Computing (solution based on Cassatt

technology), RFID (chips, tags, labels, readers and middleware) etc. This lab has

developed SIP-based communication solution (in collaboration with InnovaLab, Chennai,

India), Web 2.0 and SOA based solutions (in collaboration with iLabs, New Delhi, India),

enterprise search solutions, utility computing solutions, and RFID based hosted solutions

(in collaboration with RFID Lab, Kolkata, India).

TCS Innovation Lab – TRDDC - focuses on minerals and materials, optimization and

mathematical modeling, process modeling and computational fluid dynamics, thermal

processing, and virtual manufacturing.

Another important competency of tcs is its Global Network Delivery Model™ which has

helped it to gain client satisfaction rating of 89%. It is the engine that allows them to

provide reliable, scalable and cost-effective delivery of services and solutions.

The Global Network Delivery Model™ consists of three integrated components:

Global Workforce

Highly effective and scalable talent management: recruiting, staffing, training and

retention

Integrated Processes

CMMI Level 5 quality processes

World-class security procedures

Project Management processes and tools (iQMS, etc.)

Multi-Tiered Infrastructure

Multi-continental and interconnected global development center network (local,

regional, global model) to allow for better risk management and follow-the-sun

coverage

State of the art telecommunications network

Global collaboration tools

Another chief competency of tcs is its solution accelerators. Some examples of how TCS'

Solution Accelerators help clients realize tangible benefits:

TCS BaNCS is a comprehensive portfolio of solutions for the financial services industry

that provides enterprises with greater operational control, reliable technology support,

continuous process improvements and enhanced speed to market.

TCS SOLAR Framework is a service-oriented framework that helps us strategize and

deliver Business Intelligence and Performance Management solutions.

TCS Code Generator Framework (TCS MasterCraft) provides an integrated environment

along with a product or application development life cycle. With a significant reuse of

codes, it speeds up new application development, legacy system integration, and/or the

enhancement process.

Human resource is foundation to any successful business. Intellectual power is very important

competency of tcs which has contributed marginally in its success. TCS has a team of over

70,000 professionals, representing one of the strongest human resource pools in the world. The

company has skills and expertise across the entire spectrum of technologies and industries. Its

locally-recruited employees provide an understanding of the business environment .The

company’s continuous and rigorous training programs enable it to deliver best-in-class services

to the customers. This is reflected by the fact that 95 per cent of its business comes from satisfied

customers who reward it with repeat business.

TCS is known for its human resource practices in India as well as globally. In the EU, it

continues to be the employer of choice and has the lowes tattrition rate of 9.9 per cent.The

company laysemphasis on the overall development of its employees and also offers multi-lingual

capability training modules.TCS enables its employees to meet their career objectives through

rotation across projects, functions and locations globally.It also helps employees in building new

skills and competencies, and promotes knowledge sharingand team building.

ADVANTAGES AND DISADVANTAGES OF THE STRUCTURE AT TCS

The Factors that influence organization structure are:

1)Strategy

2)Technology

3)Size

4)Environment

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 don’t 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 job

descriptions 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 their

specialization.

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 of

individual 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

SIZE-

The total strength of the organization is around 214,770 while the size of the development center

at noida that we visited has a strength of around 1000, out of which 30% are females. TCS is one

of the largest private sector employers in India with a core strength 214,770 individuals.TCS has

turned into the second-largest employer among listed companies after Coal India Limited. But

the biggest employer in the country is Indian Railways with 16 lakhs employees. TCS's BPO arm

had revenues of $925 million in the year that ended in March 2011, and has 34,000

employees.TCS has one of the lowest attrition rates in the Indian IT industry.

contextual dimensions

size

organisational technology

environmentgoals and strategy

culture

CULTURE-the culture at TCS can be explained with the following diagram:-

WORK CULTURE-

TCS culture

focus on developing leaders

identifying your competencies as well of

your team mates

managing customer relationshiips

fully satisfyand generate increasing value for customers and

other stakeholders

encouraging, supporting and acting upon the findings of

learning activities;

aligning the organisation’s structure to support delivery

of its policy and strategy;

personally communicating the organisation’s mission, vision, values, policy and

strategy, plans, objectives and targets to people;

ensuring a process for the measurement, review and

improvement of key results is

developed and implemented

ensuring a process, or processes, for stimulating, identifying, planning and

implementing improvements to enabling approaches,

understanding the internal and external drivers of

change for the organisation;

communicating changes and the reasons for them to the

organisations people andother stakeholders;

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

POLICY-

CODE OF CONDUCT

Promote, uphold, practise and champion the tata brand name.

Drug free working place

Prohibition of harassment, including sexual harassment

Maintaining confidentiality of information(emails/voice chats)

40 hours of working time per week

Punctuality, time and attendance reporting

ENVIRONMENT

SUPPLIERS-

Academic Institutes are Key partners who help the organization with human capital and

technology updates.

Partnering is ensured through MOU, curricula design and creation of centers of

excellence. Communication is managed through Academic Liaison Manger, Academic

Portal, Senior management meetings with heads of institutes and other ongoing meetings

Suppliers include hardware/software suppliers, business associates, travel agents, airlines

and VSNL.

Suppliers relationships are managed through MOU or service contract and major the

requirements are timeliness of service and cost.

INDUSTRY-

Key local competitors are – Infosys Technologies, Wipro Technologies and Satyam

Computer Services – TCS revenue is highest of all.

PORTER’S 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.

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 to

change 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

measurement show some degree of variance to that of the stated customer’s 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 employee’s realization would enable it to achieve its stated vision

.

REFERENCES

1. www.TCS.com 2. http://www.wikipedia.org/ 3. TCS Ultimatix4. Organiization Theory Change and Design- Richard L. Daft