EVA and Compensation Management System at Tata Consultancy Services
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(Case Code: HROB075) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
Case Code |
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HROB075 |
For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
Themes--- |
Case Length |
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14 Pages |
Period |
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1998-2005 |
Pub. Date |
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2005 |
Teaching Note |
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Not Available |
Organization |
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Tata Consultancy Services |
Industry |
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Information Technology |
Countries |
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Abstract:
The case examines the compensation management system at TCS based on the
EVA model. With the implementation of EVA based compensation, the salary
of employees comprised of two parts - fixed and variable.
The variable
part of the salary was arrived after considering Corporate EVA, Business
unit EVA and also individual performance EVA. The new system was
implemented successfully and it helped the company identify the
non-performers.
The company also benefited a great deal in retaining
talent. However, it also received criticism from several quarters for
'putting golden handcuffs on excellent performers.'
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Issues:
» Study the compensation management system at TCS
» Analyze EVA as a performance measurement tool
Contents:
Keywords:
Tata Consultancy Services, Compensation Management, EVA, HR Policies,
Fixed Pay, Variable Pay, Recruitment, Incentives, Employee Satisfaction,
Employee Stock Options, Best IT Employer in India, Attrition in IT
Industry, Performance Improvement Plan, Balanced Scorecard
EVA and Compensation Management System at Tata Consultancy Services
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