Challenges faced by human

resource management during

the recession in TCS

Submitted to Submitted by

Dr. S.R.Dash Abhay Singh BM-09005

Gaurav Agrawal BM-09074

Gaurav Saxena BM-09077

Raghvendra BM-09160

Shalini Srivastava BM-09192

Shikha Srivastava BM-09196

Shraddha Suman BM-09202

 Introduction

Tata Consultancy Services Limited (TCS)
is a software services and consulting
company headquartered in Mumbai, India.

TCS is the largest provider of Information
Technology and business process
outsourcing services in India.

The company is listed on the National
Stock Exchange and Bombay Stock
Exchange of India.
 INTRODUCTION Contd….

Tata Consultancy Services (TCS) is a truly

global company. It has:
Mission-To help customers achieve their
business objectives by providing
innovative ,best in the class consulting, IT
solutions and services.
Vision- To be among the global top 10 by
end of 2010.
Values- Integrity, Leading change,
Excellence, Respect for the individual,
Learning and sharing.
 RECESSION
A recession is a decline in a
country's gross domestic product
(GDP) growth for two or more
consecutive quarters of a year
 REASON FOR THE CURRENT
RECESSION& IMPACT ON IT
INDUSTRY
• The defaults on sub-prime mortgages (home loan
defaults) have led to a major crisis in the US. Sub-
prime is a high risk debt offered to people with poor
credit worthiness or unstable incomes.
• Indian IT sector is highly dependent on US Clients
hence the slowdown in US economic activities also
effected the Indian IT industry.
• The US clients took a cautious approach and
postponed all projects as a result of Financial
Crunch.
• Due to the slowdown in US economy many Indian IT
professionals suffered layoffs and salary cut .
 EMPLOYEES ARE THE REAL
ASSETS OF AN IT
ORGANIZATION
IT sector is completely a service
sector and performance of an IT
organization is based on the
performance of its employees.
 Major Challenges In Modern
Human Resource Management

Globalization

Changed employee expectation

Outsourcing HR activities

Managing HR activities ethical

Managing diversity

Balancing work life
Challenges faced by HRM in TCS
during recession
The major challenges faced by HRM
during recession in TCS are-
Contingency Plan
Brainstorming
Flow of communication
Calm Atmosphere
Evaluate Employee Performance
Advice Managers
 Major challenges faced by HR
Manager

Attrition

Recruitment and Training

Communication

Performance Management

Competency Development

Participatory Culture
 How to intact your employees
during recession

The biggest problem of HRM is how to keep TCS employees
with the organization and away from the competitors during
tough economic times.

Differentiate between good and average employee.

Redirect employees to other departments Job Rotation)

Listen to employees

Keep them motivated and busy

Show them the long term vision.

The above steps are taken by HRM to hold its team together
during a recession, and will even make bond between all of
you stronger. Employees should be motivated enough to
stick to the employer during tough times and put in the extra
effort required for the organization growth.
 
 Role of HR during recession

Some of the steps taken by HR’s during the recession period
are as follows-

1.Downgrading/canceling holidays party

2.Increasing benefits communication

3. Eliminating/reducing seasonal workers

4. Organizing wide restructuring

5. Raising employee contribution to health care premium

6. Increasing pay communication

7. Implementing a salary freeze

8. Have a mandatory holiday cut down

9. Reducing\eliminating other employee programs
 HR Role in Strategic People
Management

HR is still more focused on transactional
activities and HR operating efficiencies than on
high levelstrategic people issues.

However, the executives concern about people is
not translated into increasing importance for HR,
in fact, the HR function, which executives believe
is concerned with activities such as reward and
benefits, performance evalutions and HR
operating efficiencies are often seen as being
unconnected with how a business will deal with
key strategic HRM challenges such as talent
management, workforce productivity and
leadership development
 HR Innovation in TCS during
recession

The HRM innovation in tcs during the
recession focus on the following topics

Reduce the number of employees in the
organization.

Strategic initiatives to increase the
productivity and efficienciy of the whole
organization.

Redesign of the compensation scheme.

Cancellation of several benefit schemes.
 HR Innovation Continued….

On the other hand the HRM function has to find
innovative solutions for the following topics.

Identifying the real key employees and to keep them
in the organization.

Identifying the real top potentials and to strengthen
their development program.

The second two topics have to be done at the
minimum costs and it is a really hard task to
accomplish the HRM function has to have priorities in
mind and the strategic impact of the HRM function is
not to cut the costs for the time being, but to make
the organization stronger and ready for the future
growth.
 Conclusion
 In any organization the main task is people handling.
Because the main task is to manage people , who are
the main assets of any organization and they are the
person who fulfill the ultimate goal of the company,
that is to attain maximum profitability and sustain
growth.
 Somebody say a very nice saying that,” when you are
an employee success definition for you to grow
yourself but at the time when you become an leader
the definition of success is to grow others
 Conclusion contd….

. For any organization the HR has main challenge
and that is to satisfy the employees and motivate
them to continuously learn and make them reliable
for the employer and make them consistent. HR of
TCS have faced biggest challenge to make possibly
feel to employee that there is an instrumentality
between organization and the employees growth
rate.

HR department is the main power of any
organization because these are the persons who
manage people because ultimately man are the
only one who are responsible for any result in any
organization. 
THANK YOU