Performance appraisals at TCS - Ref. No.: HRM0063...

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Tata Consultancy Services (TCS) has emerged as one of the largest technological giants in the Indian Information Technology (IT) arena. Overcoming hurdles like government interventions and rigid licensing systems, the company managed to create a financial successful story. Fostering a continuous learning culture and motivating employees to deliver high quality results have presented TCS as a desirable place to work. Further, the company’s focus on encouraging workforce diversity combined with its healthy work environment made it one of the best employers in the Indian IT industry. The company’s growing popularity may be also attributed to its endeavours towards evaluating employees’ performance. Owing to this rigorous appraisal process, the company keeps a constant check on its employees’ progress, while providing timely feedback and helping them to take corrective measures to improve their performance. While the top performers are rewarded, those with poor ratings are motivated to work harder. With its business expanding, will TCS be able to accommodate the average and poor performers? With the size of the company growing, will TCS be able to avoid personal bias and favouritism from corrupting its appraisal system? The Indian IT Giant’s Rise to Success TCS, a pioneer in the Indian IT industry, was established in 1968. Initially known as the ‘Tata Computer Centre’ (a division of the Indian conglomerate giant, the Tata Group), the company began its journey by offering business consultation services to traditional businesses ranging from travel and hospitality to banking and finance firms. Being a member of the Tata family, the company was guided by the principles of protecting the shareholders’ interests and providing high-quality services to its clients. Owing to the rigid government licensing system (which made it difficult to even import computers), TCS had to face many hurdles in the initial decades of its operations. Despite these obstacles, TCS was determined to survive and succeed. The company consistently upgraded its technology, its skill sets as well as its infrastructure. One of its initial assignments included providing punch card services to Tata Steel (a sister concern). Over the years, the company succeeded in bagging many big This case study was written by Dr. Ravikiran Dwivedula, IBS. It was revised by Deepti Srikanth, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. © 2009, IBSCDC. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Ref. No.: HRM0063
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Performance appraisals at TCS - Ref. No.: HRM0063...

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