Case Study: Tata Consultancy Services

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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:…show more content…
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…show more content…
“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
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