Labour Turnover in TCS Project Report

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 INDEX  Sr.No. 1 2 3 4 5 6 7 8

Particulars I ndex In Introduction Aim of TCS Objectives of Study Type of Study Sources of Data Analysis & Interpretation Conclusion

Page No. 2 3-4 5 6 7 8 9


Profile Tata Consultancy Services is India’s leading Information Technology (IT) and Management Consultancy 2ptimize2ion. Established in 1968, TCS has completed 25 years of services to buinsness, industry and government worldwide. It’s operations span over 40 countries. It has successfully executed projects in areas such as banking and financial services, manufacturing industries, energy, healthcare, transport, communications and tourism. Employing more than 5500 (1996) professionals, TCS provides a wide spectrum of consultancy services in the area of IT. These services cover all aspects of systems and software engineering including information needs analysis computer hardware sizing and selection, systems analysis and design, system conversion, 2ptimize2i software development and implementation, bureau services and computer-assisted instruction.

Research and development play a critical role at TCS. The Systems Engineering and Cybernetics Centre at Hyderabad (India) studies and analyses problems with a holistic perspective. It has developed methodologies for understanding the increasingly complex organizational and societal problems. The Centre functions as a nucleus for the dissemination of systems engineering and cybernetics techniques in India. The Tata Research Development and Design Centre, a division of TCS, is based in Pune(India). The Centre specialices in applied research in information technology. Some of the areas of  2ptimize2ion2n are object oriented o riented techniques, software engineering, artificial intelligence, expert systems, CAD/CAM, image processing and microprocessor based instrumentation. Consultants at TCS have access to a wide range of hardware – mainframes, mini-computers, personal computers (PCs) and dedicated workstations. Some of the systems in TCS are the IBM ES/9000, IBM 3090, IBM AS/400, RS/6000, VAX6000, DEC5000,Elxsi6400, SUN SEQUENT, TANDEM TXP, CLX and VLX. In addition, there are mainframes and minis from Texas Instruments, Hewlett Packard and others. Extensive use of software tools ensures quality and productivity 2ptimize2i 2ptimize2ion. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India.

Areas of business Services Tthe following TCS services help customers 2ptimize business processes and create resilient IT infrastructure, ensuring faster business results:



 Consulting TCS consulting services help enterprises transform the way of doing business by helping them to optimize business processes, align IT with business requirements, support IT operations, and design effective risk management strategies.

 IT services TCS provides system integration and testing solutions, and application development and management services that help companies make the most of their IT investments.

 Business process outsourcing TCS works with enterprises worldwide, helping them focus on their core business while accelerating outsourced operations and ensuring round-the-clock service delivery.

 Infrastructure outsourcing The company partners with enterprises to make their IT infrastructure flexible, scalable, and secure, while maximizing performance.

 Engineering and industrial services Using the best technologies, processes, and competencies, TCS helps businesses to put into practice their strategies in product development, and management of assets and production.

Industries TCS helps clients from various industries solve complex problems, mitigate risks, and become operationally excellent. Some of the industries it serves are:

 Banking and financial services  Energy and utilities  Government  Healthcare and life sciences  Hi technology  Insurance  Manufacturing  Retail  Telecom  Travel and hospitality



Aim of TCS   Tata Consultancy Services’ Learning and Development centre prepares new recruits to take on the formidable challenges that lie ahead. A look at the fascinating programme, and how it helps shape young graduates into professionals

Tata Group’s leadership development programmes and processes aim to groom the managers of  today into leaders of tomorrow. In order to maximize the potential of its pool of managers, the Group provides high-value, superior-quality training programmes that encourage cross-functional exposure and allow for cross-company mobility, making it an important aspect of all leadership development efforts. A selection of articles highlighting the Group’s leadership enhancing efforts and conversations with senior executives on leadership issues are given below.

Grooming Globle Managers The making of the global manager  Gopalakrishnan, the executive director of Tata Sons, sorts out the leadership and managerial qualities R Gopalakrishnan, demanded by today’s worldwide order of business

The heart of excellence Sunil Sinha, the chief executive officer of Tata Quality Management Systems, on the leadership imperatives for companies facing today’s multiple challenges

The winning blend Tata Tea’s Sangeeta Talwar underscores Talwar underscores the need for family support and determination to scale the heights of success

Knowledge plus Grooming the managers of today into the leaders of tomorrow, that’s the broad objective of the Tata Group’s leadership development programmes and processes

The Tata Management Training Centre The Tata Management Training Centre (TMTC) aims to provide training to high performers within the Group and to act as a cradle of change for Tata executives TAS TAS, formerly known as the Tata Administrative Service, was conceived by JRD Tata to select and groom some of the best young Indians, provide them opportunities for professional growth, and use that pool of  talent as a group resource



Objectives  To study the manpower & HRM & HRD Aspect of TCS.  To find out the reason behind employee turnover.  To find out the whether there is any strategy or policy of TCS to retain

there employees.  To find out whether there is performance appraisal.

Labour Statue (Madras)



Type of Study a) Diagnostic Diagnostic as it is done done with objective objectivess of enhancing enhancing organization organizational al effectivenes effectiveness. s.  b) It will will be also also desc descrip riptiv tivee in nature nature..

Source of Data There will be two sources as under:1)Primary Data – This is generated by the following: i)Interviews of Execuatives ii)Questionairres 2) Secondary Data   i) Articles on the Tata Group ii) Adm Instructions & orders issued from time to time. iii) Media Reports  Website iv) Website    v) Human Resource Planning Planning Second Edition –Dipak Kumar Bhattacharyya Bhattacharyya of  Excel Books Publications.



Analysis And Interpretation Within the framework of the scope, the following tools will be employed for  analysis and interpretation:a) A critical critical analysis of the charter charter of duties of various appointme appointments nts and section b) A Critical Critical examination examination of assignme assignment nt of duties duties to individuals individuals so so as to assess the work load. c) Application Application activity activity sampling sampling for for ascertaining ascertaining mean work work loads loads as per  month/per day for all jobs done. d) Use of interviews questionnaires, observations and analysis of data obtained. e) Scientific Scientific evaluation evaluation of activities activities that can be profitably profitably automated. automated. Application of the Study This study will attempt to being about systemic,structural and functional changes through its recommendations for optimal employment employment of manpower resources in the TCS group.



Methodology And Approach 1) Concept:- Organization exist for people. The are made of people and for  the people and their effectiveness depends on the behavior and performance of  the people constituting them. There was a time when people were considered liability. Today workers are considered a resource and an asset. Successful CEO’s have made them into business partners with a stake in the successful running of corporate enterprises. as organizations became large and complex govt. interventions as a regulatory body increased. Thes all manpower planning is tempered by not only economic, demographic, and socio-cultural aspects but also political-legal aspects. 2) The objectives of the organizations help in determining the number of people and their employment. Hence in effect, a clear vision of Organization Objectives and its work culture is the start-Point for al aspects of manpower. 3) Effective utilization of manpower relates to establishing job-requirement and determining the number of people required in relation to Organizational objectives. Job requirement has now equally important ingredients the qualitative and the quantitative facets of the job. Job analysis which remarks qualitative demands of the jov is used to determine personnel specifications for  accomplishing the job effectively. Time study, Role Analysis, Historical Averages and certain other modern managerial techniques are employed for determining quantitative requirements. A realistic and effective manpower planning is not merely restricted to the quantitative and qualitative assessment of manpower  needs. 4) Methodology for Manpower Calculations. The manpower calculation is a deep study of the role of the each person and each type of activity being performed by every individual. The activities are required to be bonafied and authorized and should fulfill the objectives of the particular department of section. The activities are required to be converted in to total departmental/section/branch departmental/section/ branch and quantified in terms of time units so as to compare with the available man-hours.i.e.on basis of time the level of each section can be designed. 5) As per qualification physical strength, mental capabilities, special skills the work is divided. i.e. clerk Accountants, Manager, supervisor , peons etc.It is not easy to quantify nor the results a true representation or a holistic picture of their  roles and importance in administration. Even similar job is not not come in existence same it is variable in nature. Within the frame work of the Study the following approaches have been adopted:-



a)Critical analysis of the charter of duties of each section. b) Critical examination of assignment of duties to each individual so as to assess the work-load. c) Application of activity-sampling for ascertaining mean workload per month/per  day for all jobs that are recorded and for which historical data is available. d)Use of management techniques of interviews(Telephonic & mailed)Questionnaire establish mean workload per month per day for which no past-record as available. e)Scientific evaluation of activities that can be profitable automated. f)Analysis of applicability of standard norms to the working environment in different sections. 6)The available monthly man hours for comparing the work-load have been estimated and given below as per Govt.rule.for the purpose of calculations, leaves such as special casual leaves, maternity and paternity leaves, absence due to frequent bandhs.hartal (stricks) rail & road Calculation of Number of Working Days per Month in Respect of Central Govt. Employees.Sr.No, Particulars No.Of Days a) Total Days in a year 365 b) Leaves E/Leave 30 Casual Leave 12 Sundays 52 Saturdays 52 c) Holidays Gazetted 17 Restricted 02 Total 165 d) Available Working days per year=365-165=200 e) Available Working days per month =200/12= 16.7 or 17 Days

The Above Calculation is Same for all Employees of Central ,State Government & Private Sectors .



ANNUAL SURVEY OF INDUSTRIES, 2002-03 Vol. II REPORT ON ABSENTEEISM, LABOUR TURNOVER, EMPLOYMENT & LABOUR COST IN SAMPLE SECTOR LABOUR TURNOVER Labour Turnover Turnover is an important important parameter parameter which which indicates indicates the over all health of an industry or an establishment in terms of wages, industrial relations, working conditions conditions and other other welfare facilities facilities provided provided to the workers. Labour  turnover, which refers to the movement of employees in and out of a business, measures the extent of change in the work force due to accession (total number  of workers added to employment) and separation (severance of employment at the instance of workers or employers) during a particular period of time. High Labour Turnover causes problems for a business. It is costly, lowers productivity and morale and tends to get worse if not dealt with. Labour Turnover  does not just create costs, but some level of Labour Turnover is important to bring new ideas, skills and enthusiasm to the labour force. A natural level of Labour  Turnover can be a way in which a business can slowly reduce its workforce without having to resort to redundancies. A high level of Labour Turnover could be caused by many factors: a)

Inadequate wage levels leading to employees moving to competitors,


Poor morale and low level of motivation within the workforce,


Recruiting and seeking the wrong employees in the first place, meaning they seek more suitable employment, and


A buoyan buoyantt loc local al la labour bour mar market ket offeri offering ng more more attrac attractiv tive e opport opportuni uniti ties es to employees.

Statistics relating to Labour Turnover, showing the rates of accession and separation in respect of the directly employed regular workers, average number of  employment of workers and the percentage of factories reporting labour turnover  during the year 2002, have been presented in Tables 3.1.1, 3.1.2, 3.2.1 and 3.2.2. State-wise, Industry-wise and Sector-wise analysis of Labour Turnover is given below: 3.1

Labour Turnover in States

The highest rate of Labour Turnover tends to be among those workers who have recently joined in an establishment. Longer-serving employees are more likely to stay, mainly because they become used to the work and the business and have an established relationship with those around them.



State-wise State-w ise Labour Labour Turnov Turnover er among among directly directly employe employed d regular regular workers workers during the year 2002 is presented in Table 3.1.1. At all India level, 60.08 percent of the factories reported Labour Turnover in their establishments. At all India level, the rate of accession during the year 2002 was recorded as 19.20 percent as against 19.27 percent during the previous year. Whereas, the overall separation rate rat e was was re repo porte rted d as 18.24 18.24 perce percent nt as agai against nst 19.18 19.18 perc percent ent in 20 2001. 01. This This indicates a net accession or increase of around 0.96 percent in the employment of  directly employed employed regular workers workers in Sample sector sector during the year 2002. 2002. It is, however, observed that the increase in employment of directly employed regular  workers was mainly due to increase in such employment in Private Sector (1.07 perce per cent) nt).. Both Both Publi Public c Secto Sectorr and and Joint Joint Secto Sectors rs wi witne tnesse ssed d a net net decr decreas ease e in employment of such workers by 1.95 percent and 2.79 percent, respectively. Among States the highest rate of accession was observed in Punjab (54.08 percent) followed by Haryana (35.22 percent) and Uttar Pradesh (27.32 percent), respectively. On the other hand, the highest rate of separation was also observed in Punjab (49.03 percent) followed by Haryana (32.09 percent) and Jammu & Kashmir (27.06 percent). The lowest rate of accession accession was recorded in West Bengal (4.61 percent) followed by Kerala (6.10 percent) and Assam (6.13 percent), whereas the lowest rate of separation was observed in Assam (5.28 percent) followed by West Bengal (5.33 percent) and Kerala (8.35 percent). There were 11 States where accession rate was observed to be more than 20 percent and 9 States where separation rate was recorded to be more than 20 percent. 3.2 3. 2

Labo Labour ur Turn Turnov over er in In Indu dust stri ries es

Industry-wise rates of accession and separation during the year 2002 have been presented presented in Table 3.1.2. During 2002, the highest highest rate of accession accession was recorded at 115.14 percent in industry group '142-Mining and quarrying, n.e.c.'. The lowest rate of accession was reported in industry group ‘182-Dressing and dyeing fur, manufacturing of articles fur‘reported at the rate percent. The highest andoflowest separation rates were of also in of the3.33 industry groups '142-Mining and quarrying, n.e.c.' (120.12 percent) and ‘182-Dressing and dyeing of fur, manufacturing of articles of fur‘ (1.67 percent), respectively. Out of 63 industry groups, separation rate was higher than accession rate in 30 industry groups, groups, meaning thereby, a net decrease in employment employment of directly employed regular workers during 2002 in these industry groups. 3.3

Labour Turnover in Sectors by States

State-wise and Sector-wise Labour Turnover amongst directly employed regular regu lar workers workers during during the year 2002 is presente presented d in Table Table 3.2.1. At all India level, amon level, among g secto sectors, rs, the the rate rate of ac acces cessi sion on was was highe highest st at 19.4 19.43 3 perce percent nt in Private Sector, followed by 14.56 percent in Joint Sector and merely 7.62 percent 11


in Public Sector. Like-wise, at All India level among sectors, the highest rate of  separat sepa ration ion was reported reported in Private Private Sector Sector (18.36 (18.36 percent) percent),, followe followed d by Joint Joint Sector (17.35 percent) percent) and Public Sector Sector (9.57 percent). percent). It is observed that at all India Ind ia level level both both Public Public Sect Sector or and and Joint Joint Sector Sector witn witness essed ed a decrea decrease se in employm emp loyment ent of directly directly employed employed workers workers by 1.95 percent percent and 2.79 percent, percent, respectively, during the year, whereas, in Private Sector a marginal increase in employment of such workers of 1.07 percent was recorded. In Publi Public c Secto Sector, r, the high highest est rate rate of access accession ion at 56.40 56.40 perce percent nt was was observed in Rajasthan, whereas, the lowest accession rate of 0.82 percent was observed in Kerala. In Joint sector, the highest rate of accession at 59.66 percent was observed in Himachal Pradesh, whereas, the lowest accession rate of 0.99 percent was recorded recorded in Orissa. Orissa. In Private Private Sector, the highest highest and lowest lowest rates rates of accession were reported in Punjab (54.78 percent) and West Bengal (4.26 percent), respectively. The highest and lowest lowest separation separation rates, in Public Sector, Sector, were observed in Daman & Diu (44.44 percent) percent) and Chattisgarh Chattisgarh (0.93 percent), percent), respectively. respectively. In Joint Sector, the highest rate of separation was also recorded in Punjab (53.32 percent), whereas, the lowest rate was reported in Goa (0.66 percent). In Private Sector, the highest highest and lowest separation separation rates were reported reported in Punjab (49.37 percent) and Assam (5.07 percent), respectively. 3.4

Labour Turnover in Sectors by Industry

Industry-wise and Sector-wise Labour Turnover amongst directly employed regular workers in 2002 is presented in Table 3.2.2. In Public Sector, the highest rate of accession at 104.65 percent was observed in industry group ‘014Agricultural and animal husbandry service activities, except veterinary activities', whereas, the lowest rate of 0.20 percent was recorded in industry group ’222Printing and service activities related to printing’. In Joint Sector, the highest rate of accession at 47.73 percent was recorded in industry group ’151-Production, processing and preservation of meat, fishwas , fruit, vegetables oils and fats',‘222whereas, the lowest rate of 0.41 percent recorded in industry group Printing and service activities related to printing‘. In Private Sector, the highest accession rate at 115.14 percent was observed in industry group '142-Mining and quarrying, n.e.c.', whereas, the lowest rate of 3.33 percent was observed in industry group '182-Dressing and dying of fur, manufacture of articles of fur’. On the other hand, in Public Sector, the highest rate of separation (127.91 percent) was reported again in industry group '014-Agricultural and animal husbandry services activities, except veterinary activities', whereas, the lowest rate of separation (0.85 percent) was reported in industry group '291Manufacture of general purpose machinery’. In Joint Sector, the highest rate of  separation (120.22 percent) was observed in industry group '210-Manufacture of  paper and paper product’, whereas, the lowest rate (0.41 percent) was reported in industry group '222-Printing and service activities related to printing’. In Private 12


Sector, separation rate was the highest (120.12 percent) in industry group '142Mining and quarry n.e.c.', whereas, the lowest rate of separation (1.67 percent) was reported in industry group '182-Dressing and dying of fur, manufacture of  articles of fur’. 

Reasons of Labour Turn over in TCS A)Performance Appraisal- Performance Apprasal means analysis,review or  evaluation of performance or behaviour analysis of an employee.It may be either  formal or informal, oral or documented, open or confidential.In general we fine the foramal appraisal system in a documented form.It is alaso an important management activity.I is also called as “Annual Confidential Report”. Annual Confidential Report Rating Out of 10 Normal rating are as underRat atin ing g Expl Explan anat atio ion n 09 Outstanding 08 07 05-06 03-04

Above Average High average Average Below

In TCS TCS there is a 05 Points rating system The Spoke person Pradipta Bagchi told to media that Performance Appraisal is every year Cycle.If in one Appraisal cycle anyone is rated below 2 they put them on PIP(Performance improvement plan) Under this they are givan extra training.Even after this if their rating is below 2 Then they are asked to look for another Jobs. Primary Functions of performance appraisal are: are : 1) To identify and define the specific job criteria Many organization at the beginning of the year set key performance area(KPS) or Key result areas (KRAs) for employees based on mutual discussions. 2) To measure and compare the performace in term of the defined job criteria, ARAs & KPAs are also designed so that they can help in measuring job performance in quantitative or qualitative terms. 3)to develop and justfy a reward system, relating rewords to employee performance. 4) To identify the strength and weakness of employees and to decide on proper  placement and promotion. 5) To develop suitable training and development proframmes for enriching performance of the employees. 6) To plan for long-term manpower requirements for overall improvement of the organization.



7) To identify motivational reinforcers, to develop communication systems and also to strengthen superior-subordinate relationships. B) Frequent Absenteeism C) Heavy work-load D) Old age & Technological Obsolescence E) Location of work (transfer at such place not so easy to reach daily)

Solution 1)To refresh employees mind, for Change & to reduce their work load Company must arrange tours, get-together, picnics Programme. 2) To motivate the employee they must gave Compensation, reward incentives to the employees. 3) Try to reduce the gap between top management & employees. 4) Try to maintain interpersonal relationship with between top management & employees. 5) Try to find out the reason behind their low performance & Maintain the good relationship with employees. 6) Company should arrange workshop & other programmes such as soft skill stress management programmes for employees.

Conclusion   For healthy & wealthy organization growth the top management must consider  their employees as Fixed Asset. The goodwill of a company depend upon good & prompt product/service which is wholly depend upon the company’s employees. So to reduce the employee turnover the TCS must have take too much care while doing the performance appraisal & try to maintain good relationship. Now days employees are interested in their own development & career  planning. Unless & until employee does not get any benefit they never gave their  100 % attention towards their work/task/job. Company must take extra advantage of employee’s this tendency to achieve their goals.

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