Tata Consultancy Services

An Organizational Behaviour Presentation by:

Group 2
 Introduction
 Indian based IT service and consulting company.
 Founded in 1968 by division of Tata son’s limited.
 TCS operates in 149 locations in 46 countries.
 Head quarters located in Mumbai, Maharashtra India.
 Second largest Indian company by market capitalisation.
 70% of Tata son’s dividend is generated from TCS.
 MD & CEO: Rajesh Gopinathan
 Chairman: N.Chandrashekharan
Mission & Vision

Mission:
The mission of TCS is to help customers achieve their business objectives by providing innovative,
best-in-class consulting, IT solutions, and services. To make it a joy for all stakeholders to work with
them.

Vision:
The vision of TCS is to decouple business growth and ecology footprint from its operations to address
the environmental bottom-line. The green approach is embedded in their internal process and services
offerings. From green buildings to green IT to a green supply chain, their mantra is to grow sustainably
and help their customer to achieve sustainable growth through their green solutions and service
offerings.
Products, Services and Values
● Products: CHROMA, Ignio, Jile, TAP, TCS iON, TCS OmniStore, TCS BaNCS, TCS MasterCraft, TCS Optumera

● Services: Consulting, TCS Interactive, Analytics and Insights, Internet of Things, Blockchain, Cloud Infrastructure,
Cybersecurity, Cloud Apps, Microservices and API, Automation & AI, Conversational Experiences.

● Values of TCS: The 5 values of TCS are known as L.I.R.E.L values

1. Leading change
2. Integrity
3. Respect for Individual
4. Excellence
5. Learning and sharing
Value Creation Model

Inputs Process
Input
• Financial Capital • Infrastructure
• Human Resource • Learning Platforms(Internal platforms like
• Social & Relationship Capital Ievolve & External platforms like Udemy,
• Natural Capital LinkedIn learning )
• Manufacturing Capital • Human skills & abilities(Training, Initial
Learning programme)

Environment Output
• Satisfied Customers • Industry Defining mega deals
• Government Regulations • Thinner Competitive Set
• Major Competitors like IBM, Accenture, • Higher Quality Revenue
Infosys • More fulfilling work ; better retention
Challenges:

● Allocation of technological resources to employees(Work from Home).

● Heavy dependence on two geographical markets (UK & America).
● Poor Resource Allocation.
● Rigid Hierarchy.
Efficiency, Control & Innovation

Efficiency Innovation
Control
• Regular communication  TCS Pace Ports
• Increased Mergers &
with customers  360+innovation
Acquisition.
• Skill development for • Volatility in Europe and Centres
employees US economies.  Innovation Forum
• Products are preferred  TCS Incubation Centre
• Crisis Management by government
Capability agencies
• Borderless workplace
infrastructure
CORE COMPETENCIES

● Human Capital
● Material Management Function
● Research and development
● Customizing products
DESIGN CHALLENGES
● Decentralized as there are many functional groups and the main head/corporate office does
not have the entire ownership of various processes.
● TCS uses a high differentiation strategy by offering its low- & high-end services.
● Both Standardised and Mutual Adjustment
1. Standardised – TCS Code of Conduct
2. Mutual Adjustment
● Formalization varies from project to project.
● Socialisation – TCS uses of a customized social media platform has ensured employees have
fun whilst at work.(TCS KNOME)
● The organization structure adopted by TCS is mechanistic in nature
● Major issue with operations is Hierarchy
TCS Hierarchical Levels
Whether organization does a good or a poor job in managing it's hierarchy or authority
TCS is doing a good job in maintaining the authority as:

● The company’s hierarchy is centralized at higher management level and localized at domain or vertical level.
● The hierarchy is put across well and is also easily accessible.
● Performance based model.

CEO and its span of control

● Mr. Rajesh Gopinathan

● Narrow span of control
● Because of the narrow span of control the decision making is quick
● He has a channel of communication which is enough for getting all the relevant information

Centralization, Standardization, and Horizontal differentiation that affect the shape of the organization

● Centralised functional divisions like the process of recruitment.

● For Standardization, TCS uses industry standards as a parameter to define the fundamental governance for
centralized services
● For Horizontal structure, tasks are distributed among the employees like marketing, finance operations and
R&D.
TCS Organisational structure

● Multidivisional
Structure
Multidivisional Structure
Advantages
● Ability to hold senior managers accountable for
the results of local operations that are within
their control.
● Each division is alert to shifts in its market,
which gives the division the ability to respond to
these shifts quickly and remain competitive by
refocusing their operating efforts to changing
consumer preferences.
● To enhance the division's responsiveness,
decision-making lies at the division level.
● In addition, with a focus on the local market,
each division can develop and produce goods
and services that appeal to its market and that
the division produces and transports using local
resources.
Disadvantages
● It includes duplication of functions, or even
rivalry between divisions which precludes the
achievement of corporate-level economies of
scale and increases operating costs.
● Duplication of functions can also lead to a lack
of standardization and inefficiencies.
● Management tends to focus on local strategic
issues rather than overall company issues.
● The CEO or company owner may not be
informed of issues at the local level before they
get out of hand.
Functional, Business, Corporate and International Strategy
Functional Level Strategy
The core competencies that the organization employs to gain a competitive advantage are:
● Human Capital-They have the lowest attrition rate in the IT industry. Started a Separate
hiring process called TCS Digital to hire employees who will get to work on the latest
technology.
● Research and development: TCS heavily invest in R&D .TCS has 360 innovation centers. Also,
launched TCS pace ports to focus on innovation and research in the upcoming technologies.
● TCS uses the above two core competencies to excel in the different functional domains .
● It uses the Human capital and R&D to gain new projects and convert these core
competencies to get financial advantage.
Functional, Business, Corporate and International Strategy
Business Level Strategy
● TCS uses Variable Pricing Policy.
● They choose the differential model based on different clients.
● Pricing strategy plays an important role for the company as TCS works with both Govt and
private clients.
● The only problem is that most of the companies are operating in similar verticals and mostly
similar geographical location.
● So, one option can be to target new geographical markets which they have started targeting
as they recently partnered up with Bank in Israel.
● Also, another option can be to target the SMB segment in India which is a largely untapped
market however this strategy would force TCS to change its strategy from differentiation to
low cost business strategy.
Functional, Business, Corporate and International Strategy
Corporate Level Strategy
● TCS operates with Related Diversification and Unrelated Diversification as well.
● It used Related Diversification to diversify into different IT verticals.
● It operates in two different domains IT and BPS(Business Process Service) and here it
employs unrelated diversification.
● Uses the technology and rich employee base to enter into different verticals.
● It makes it easier for the organization to switch people into different verticals which in turn
helps the organization in increasing financial capital.
International Strategy
● TCS uses with Transnational Strategy.
● By implementing the strategy it tries to gain both local responsiveness and cost reduction.
● They have a centre corporate facility but they do provide autonomy to the global
counterparts to run their operations.
Socialization & Training programmes
Training Programs Aimed at new TCS Recruits
●TCS Initial Learning Program The Initial Learning Programme (ILP), the strongest and the best-
assured grooming platform for all new recruits of TCS. The ILP aims to transform fresh engineering
graduates from diverse disciplines into software professionals.
Open ignite
● Candidates are selected through an open learning platform, called Open Ignite. This online
platform attracts over a 100,000 users from the science community from across 6000 colleges
across 700 towns all over the country.
● Selected candidates are made part of a six month, state-of-the-art learning program, where
they are taught through various technology enabled learning tools, that makes learning fun.
Students are exposed to various real world projects, which ensure that they are job ready by the
end of the program
Socialization & Training programmes

Training Programs Aimed at Experienced Professionals

●This spans issues like business strategies, project needs, technology and business directions. Aside
from meeting individual aspirations, it also addresses the long term, short term and medium term
needs of the organization
Ambassador Corp
●TCS Ambassador Corp is a leadership development program, that prepares experienced
employees for global sales roles.
Categorization of Organizational Culture
1. Adaptability Culture: With the ever changing technology ,the organization has to constantly adapt
and proactively look for disruptions in the world of IT to sustain the leader position in the market
2. Mission Culture: Clear goals and values have been laid out by the organization, however in terms
of appraisal the company has set structure to appraise an employee and employees are not
rewarded or punished at every level of the process.
3. Clan Culture: TCS believes its human capital is its core strength and it does take care of its
employee be it by conducting initiatives like TCS Maitree or by providing Health Insurance Scheme
which not only covers the employee but also their immediate family.
4. Bureaucratic Culture :As the organization has tall hierarchical structure which leads to
communication gap between lower level and upper level employees, it certainly has some
bureaucratic culture vibes.

● From the above categorization ,it can be said that TCS operates with customer centric approach
while keeping its employee base at the core of its culture.
Corporate Social Responsibility
● CSR guiding principle: 'Impact through Empowerment’
● Empowerment results in enabling people to lead a better life.
● The Company's focus areas are Education and Skill Development, Health and Wellness and Environmental
Sustainability
● TCS commitment to CSR stems from “In a free enterprise, the community is not just another stakeholder in our
business, but it is in fact, the very purpose of its existence.”

Information from the press:

● TCS fails to follow CSR limit for all five years despite its chairman being on govt’s CSR panel
– 18 December 2019 Economic Times
● Tata Consultancy Services, India’s most valuable firm, has finally been able to comply with the corporate social
responsibility regulation in the financial year 2019-20, spending its full quota of the stipulated money in the CSR
activities.
-22 June 2020 Economic Times
● Tata Consultancy Services has been selected as this year's winner of the Organization for lnternational lnvestment’s
(OFII) Corporate Social Responsibility Award
– 2 December 2019 Business standard
Evolutionary Changes in TCS

● Continuously evolved in the 50 years of its existence.

● Always invests in empowering individuals to acquire relevant industry skills.
● TCS revamped its services portfolio with its Business 4.0 vision.

Restructuring in TCS

● As TCS wanted its senior executives to focus on long term strategies. TCS has restructured its
Industry Solution Units[ISU].
● Gave control of these ISU’s to 200 mid level employees.
● As TCS wanted its senior executives to focus on long term strategies.
● TCS is also looking for second round restructuring to free up its Executive VP’s to focus on the
long term visions .
The forces for change & Obstacles to change.
Forces for changes:
1. Competitive Forces:
2. Demographic & Social Forces:
3. Economic & Political:

Obstacles to changes:
4. Organization level resistance
5. Group level resistance
6. Functional level resistance
Change in response to these forces will affect people, functions, and divisions inside the organization
1. Increased work efficiency
2. Innovation
3. Influence divisional based decisions
4. Increase conflicts 
The forces for change & Obstacles to change.
Change :
● Autonomy can be increased
● Communication between the top management and junior level associates can be increased.
● Programs for cross culture compatibility

Plans
● Change in decision making power of divisions or group
● TCS has actually started TCS Townhalls to bridge the gap of communication.
● Transfer of group members to different groups so that it will increase their compatibility with other groups
THANK YOU