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EVA And Compensation Management System At Tata Consultancy Services,[object Object],BY:,[object Object],Tanmay Jauhary,[object Object],Sep 8th , 2009,[object Object]
Facts About TCS,[object Object],Management consultancy division was made part of TCS,[object Object],Adopted EVA compensation system in 1999,[object Object],TCS adopted TBEM based on Balanced scorecard approach.,[object Object],TCS became 1st Indian Company to implement PCMMlevel 4(People Capability maturity model) which was improved to PCMM level 5 in 2005.,[object Object]
Facts…,[object Object],Ranked Very High in Employee Satisfaction compared to its competitors by Data Quest in 2004.,[object Object],TCS had lowest attrition rate, employee turnover rate was only 7.9% in 2004, against the Industry rate of 15%.,[object Object],Forced employee retention through Bonus Bank,[object Object],1000 employees were laid off on the basis of poor performance over 2 years in 2005-06.,[object Object]
Tata Business Excellence Model,[object Object],Leadership,[object Object],Strategic Planning,[object Object],Customer & market focus,[object Object],TBEM,[object Object],Business result,[object Object],Knowledge management,[object Object],Process Management,[object Object],Human Resource Focus,[object Object]
Good Control At TCS,[object Object],Adopted Waterfall Selection Process and Centralized Training System,[object Object],Mixed Control system,[object Object],EXTERNAL,[object Object],[object Object]
Training For Poor performersINTERNAL,[object Object],[object Object]
Emphasis on Team Work,[object Object]
Bad Control - 1,[object Object],EVA was based on Cost, Revenue and Capital Involved in Units.,[object Object],Employees got compensation on the Basis of Unit performance, if unit did well employee will also get high benefit.,[object Object],Why should I pay for the Project 2 investment ?,[object Object],EVA,[object Object],EVA,[object Object]
Solution - 1,[object Object],Start EVA compensation on project basis.,[object Object],Competitiveness among Employees to perform better so to grab better projects.,[object Object],EVA,[object Object],EVA,[object Object],EVA,[object Object]
Bad control - 2,[object Object],Adopted lay off policy, which resulted in:,[object Object],[object Object]
Fear to loose potential performer, who was working with underperforming team.,[object Object]

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