1) Company Profile: Tata Consultancy Services
Tata consultancy Services (TCS) is world’s second most valuable IT service Firm after IBM. It is established in 1968 as a division of Tata Sons Limited and got incorporated as TCS ltd on January 19, 1995. It has over 319,000 IT consultants in 46 countries. Its current Financial Revenue is $15.07 billion and net profit is $3.52B. It is currently amongst the fastest-growing IT services companies worldwide.
TCS offers a consulting led integrated portfolio of IT and IT enabled services through their unique Global Network Delivery Model (GNDM), customer –centric Engagement model, Innovation labs and co-innovation Network (COIN).
a) TCS - Areas of Business Services:
b) TCS Business Strategy:
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The model emphasize on the vertical integration between the business strategy and HRM function. It promotes “Unitarism approach” i.e. managers and employees cannot have conflicting views as they are working to achieve the same goal and effective management of people will vary from organisation to organisation depending on organisation culture.
The focus on integration of HRM with strategy provides a wider range of solutions to difficult organisational problems and results in achieving a competitive advantage (Lengnick-Hall and Lengnick-Hall, 1998).
Three main “Best-fit” models are: Lifecycle, Competitive strategy and Configuration Model
1. Lifecycle model
Life-cycle model is based on the organization’s 4 stages of development: Start-up, Growth, Maturity and Decline. The effectiveness of HRM practices depends on its strategic fit with the different stages of organisational development and its adaptability to embrace change as per business prospects and growth.
HR functions at different stages of organisation development: a) Start-up - HR function is informal and open at the preliminary stage
b) Growth - HR focus is on attracting skilful people, performance management, learning and development, improving reward system and
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“tight-fit” relationship between HRM policies and business strategy, less flexibility
2. Low operation and labour cost (eg: hire part-time workers, fresh graduates) 2. Ignores the needs and interests of the employees, focus on short term investment
3. Training and development as per business needs 3. Less pay, higher chances of losing skilled and talented employees
4.Implement desired competitive strategy with supportive HR practices to enjoy profits 5. Focus on maximising fit which can be conflicting in a complex business environment, lack of sophistication in strategy
b) Best Practice Model/High commitment and High-involvement
Best practice or high commitment model focus on identifying a universal set of HR practices that will enhance the performance of the organisations. The elements of best practices identified by Pfeffer (1998) are widely recognised as they proposed HR practices such as employment security, teamwork, communication, training, high wages linked to organisational performance, training to generate superior performance for any organisation.
The two main “Best practice” models are: Harvard model and Guest
(Armstrong, 2010). According to online published data (Cipd, 2013), SHRM playing an important role in organizations as it provide a framework which support long-term business objectives and outcomes. Overall, HRM is essential for any organization as it is not just about strategic planning but also concerned with implementation of strategies which is required to meet business objectives. (Understanding and concepts of HRM and SHRM explianed in
The ‘‘best fit’’ approach promotes the concept that strategic HR should be inextricably linked to the formulation and implementation of strategic corporate and business objectives (Wilton, 2011). This means that the HR strategy is concerned with matching the employee’s role behaviour with the company‘s mission, values and goals. Wilton (2011) explains this by giving an example whereby if a company‘s business strategy is based on delivering a high quality service, then the HR strategies and policies need to focus on the quality of its employees. This would be achieved by rewarding attitudes and behaviour that match this approach. Boxall and Purcell (2008) support this idea by highlighting that companies may fail if they do not adapt to their environment. The best fit approach therefore aims to improve organisational performance by integrating all activities in such a
The Tata group’s core purpose is to improve the quality of life of the communities it serves globally, through long-term stakeholder value creation.Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise headquartered in India, and comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata companies have operations in more than 100 countries across six continents, and export products and services to over 150 countries. The revenue of Tata companies, taken together, was $96.79 billion (around Rs527, 047 Crore) in 2012-13, with 62.7 percent of this coming from businesses outside India. Tata companies employ over 540,000 people worldwide.Good corporate
Human Resource Management (HR) is a function in an organisation aimed at maximizing employee performance in relation to the employer 's set standards and strategic objectives. The primary focus of HR is concentrated upon the management of employees, and on the policies and systems within and outside the organisation. (Boxall & Purcell, 2011). “Strategic Human Resource Management (SHRM) aims to align the functions and processes of HR with the strategic aims and objectives and competitive advantage of an organisation.” (Hartel, Fujimoto, Strybosch & Fitzpatrick, 2006). After all, the key characteristic of HR is ‘integration.’ The role of HR and HR Professionals can be linked to four main SHRM theories, namely: Jackson & Schuler (1995), Kochan & Barocci (1985), Klatt, Murdich & Schuster (1978) and Lundy & Cowling (1996).
Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’
(Jain, 2014). Jain (2014) provides key insights on strategic HRM, its process, key features, advantages, as well as limitations. This journal analyses how strategic HRM should be used, since it improves performance and develops a culture within the company that provides innovation, flexibility, and competitive advantage (Jain, 2014). Jain’s (2014) theory explains that HR
In my opinion, the HR policies and practices are aligned with the goals and objectives. To achieving company goals and objectives, the management incorporated the organizational values and goals to the HR practices and policies. Company enhance quality training to benchmark with other company and ensure the quality output and commitment to goals. The company’s values, commitments, and objectives are quality, flexibility communicated. Company use performance management to benchmark and enhance quality output.
Furthermore, business strategy can be defined as the implementation of courses of action and the allocation of resources necessary for achieving these long-term aims (Johnson et al 2011). Therefore, HRM plays an important role in allocating human resources, which can assist in achieving
Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.
CRITICALLY COMPARE AND CONTRAST THE 'BEST FIT', 'BEST PRACTICE' AND 'RESOURCE-BASED VIEW', MODELS OF HRM STRATEGY AND EXPLAIN HOW EACH APPROACH IS ARGUED TO CONTRIBUTE TO IMPROVED ORGANISATIONAL PERFORMANCE.
The "best-fit" approach questions the universality assumption of the best-practice perspective. It emphasizes contingency fit between HR activities and the organization's stage of development, an organization's internal structures and its external environment like clients, suppliers, competition and labour markets (Redman and Wilkinson 2009). HR policy should be minted by the appropriate context of individual employees and therefore support the overall competitive strategy. Aligning HRM practices to strategies can enable companies to create potential competitive advantages (Schuler and Jackson 1987 in Redman and Wilkinson 2009).
More firms’ business strategy can be better realized using the integrative model of HRM. Both employees and firms’ aspirations can be met if the right strategy is used. . HR professionals must be well trained to implement this strategy.
The case focuses on strategies incorporated by Infosys Technologies, a leader in IT solutions provider in India, and their challenges faced to mark their presence in the Consulting domain. Driven by the aspiration of COO Kris Gopalakrishnan to “compete with the best” and to be ranked alongside IBM and Accenture in the business and information consulting industry, Infosys Consulting (ICI) was established in April 2004 as a wholly owned U.S. subsidiary of Infosys Technologies. ICI was headed by five managing partners namely-
HR practices are the main instrument from which a company can draw on to alter the workforce as well as attempt to modify and reorganise cultural behaviours which can lead to organisational success. The behaviour, attitude and skills of employees must fit the strategic requirements of a company for it to develop a competitive advantage. However, maintaining a focus specifically on the strategic goals of an organisation has been criticised through some studies which suggest this may be detrimental to employees (Van Buren, Greenwood & Sheehan 2011) In recent years there has been growth in the research of literature around SHRM and according to Youndt & Snell (2004), this can be broadly divided into two main theories – Best practice, Contingency/Best Fit.