Case study presentation

1. EVA And Compensation Management System At Tata Consultancy Services BY: Tanmay Jauhary Sep 8th , 2009

2. Facts About TCS Management consultancy division was made part of TCS Adopted EVA compensation system in 1999 TCS adopted TBEM based on Balanced scorecard approach. TCS became 1st Indian Company to implement PCMMlevel 4(People Capability maturity model) which was improved to PCMM level 5 in 2005.

3. Facts… Ranked Very High in Employee Satisfaction compared to its competitors by Data Quest in 2004. TCS had lowest attrition rate, employee turnover rate was only 7.9% in 2004, against the Industry rate of 15%. Forced employee retention through Bonus Bank 1000 employees were laid off on the basis of poor performance over 2 years in 2005-06.

4. Tata Business Excellence Model Leadership Strategic Planning Customer & market focus TBEM Business result Knowledge management Process Management Human Resource Focus

8. Bad Control - 1 EVA was based on Cost, Revenue and Capital Involved in Units. Employees got compensation on the Basis of Unit performance, if unit did well employee will also get high benefit. Why should I pay for the Project 2 investment ? EVA EVA

9. Solution - 1 Start EVA compensation on project basis. Competitiveness among Employees to perform better so to grab better projects. EVA EVA EVA

12. Thank You !