Recruitment methods at Tata Consultancy

Business in India is going through a phase of change as never observed before. Given the size of national economy, the role of Public venture and the rising diversity and dynamism in the private sector, it is not easy to describe its exact scope. Healthy growth leads to a healthy economy to the nation. A strong growth in industry and business in turn, largely depends on the quality and potential of its Human Resources. Human capability is thus the vital factor for survival and development especially in the changing environment. Core competencies of modern organizations are determined by customer focus, quality awareness, cost effective, and multi skilled human resources.

HRM as a function of management has come a long way. The traditional version of HRM, Personnel management (PM) is a concept that can be suitably related to the old model of organization, is bureaucratic in nature, with less flexibility, and higher degree of centralization and formalization, that is observance to rules and regulation. (Shahnawaz and Rakesh, 2006)

In any organization, there has to be a department, which looks after welfare and performance of resources in their operations. When an individual or a group of individuals are assigned on this task of managing programs and setting up policies that impact everyone in the organization, and is engaged in the process of Personnel Management.

ARMSTRONG, M. (2006) Personnel management is concerned with obtaining, developing and motivating Human Resources needed by the organization to achieve its objectives. The aim of personnel management is to make an effective contribution to the objectives of the organization and to the fulfilment of its social responsibilities.

As ARMSTRONG, M. (2006) stated the term ‘Human Resource management’ is replaced the term ‘Personnel Management’ as a description of process involved in managing people in Organizations. And Human Resource Managements defined as a strategic and coherent approach to the management of organizations most valued assets. Also he explained the Human Resource System as HRM operates through HR system that brings together in a coherent way.

1. HR philosophies; which describe the value and guiding principles adopted in managing people.

2. HR Strategies defining the direction in which HRM intends to go

3. HR Policies ;these are the guidelines defining how these values, principles and strategies should be applied and implemented in specific areas of HRM.

4. HR Processes; consisting of procedures and methods used to put HR strategic plans and policies into effect.

5. HR Practices; comprising of informal approaches used to manage people.

6. HR Programs; which enable HR strategies, policies and practices to be implemented according to plans.

Fombrun et al, (1984) held that HR systems and organizational structure should be managed in a way that is congruent with organizational strategy. Further there is an explanation made, that there should be a HR cycle, which consists of four generic processes, that are common in all the organizations. They are Recruitment and Selection, Appraisal, Rewards and Development.

Rewards

Organizational Performance

Recruitment & Selection

Performance management

Development

ARMSTRONG, M. (2006)

Recruitment is almost central to any management process and failure in recruitment can create difficulties for any company including an adverse effect on its profitability and inappropriate levels of staffing or skills. Inadequate recruitment can lead to labour shortages, or problems in management decision making and the recruitment process could itself be improved by following management theories. The recruitment process could be improved in sophistication with psychological tests, personal interviews and so on.

Recruitment is however not just a simple selection process and requires management decision making and wide planning to employ the most suitable manpower. Competition among business organisations for recruiting the best possible has increased focus on innovation, managerial decision making and the selectors intend to recruit only the best candidates who suits the business culture, ethics and climate specific to the organisation (Terpstra, 1994).

This means that the management would particularly look for prospective candidates capable of teamwork. Human resource Management approaches within any business organisation are focused on meeting corporate objectives and realization of strategic plans through training of personnel to finally improve company performance and profits (Korsten, 2003).

The recruitment process does not end with application and selection of the right people but involves maintaining and retaining the employees selected. Although a well-drawn recruitment plan, selection, and participation of management team, recruitment processes followed by companies can face significant obstacles in implementation. Theories of HRM may give insights on the best approaches to recruitment.

Theories of Human Resource Management focus on methods of recruitment and selection and emphasize the advantages of interviews, general assessment and psychometric testing. The recruitment process may be internal or external or may also be online and involves recruitment policies, job description, advertising, application process, interviews, assessment, decision-making, legislation, selection and finally training (Korsten 2003, Jones et al, 2006). Successful recruitment methods include a detailed job analysis and labour market conditions and interviews as well as psychometric tests to determine the potentialities of applicants.

Small and medium sized enterprises (SMEs) also focus on interviews and assessment with emphasis on job analysis, emotional intelligence in new or inexperienced applicants and corporate social responsibility (CSR). Other techniques of selection include various types of interviews, in tray exercise, role-play, group activity, etc.

Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings. It is actually a linking function, joining those with jobs to fill and those seeking jobs. (Rao V.S.P. 2008.)

Recruitment is the first part of the process of filling a vacancy. It includes examining the vacancy and considerations of sources of suitable candidates, making contacts with those candidates and attracting application forms from them. Selection is the next stage. Assessing the candidates by various means, and making a choice followed by an offer of employment. (Graham, Bennet 1995)

II.1. Background to the organisation

Tata Consultancy Services (TCS)

Tata Consultancy Services limited (TCS) is a software services and consulting company headquartered in Mumbai, India. It is the India’s largest provider of information technology and business process outsourcing services. The company is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) of India. TCS is part of one of India’s largest and oldest conglomerates, the TATA Group.

About Tata group

The Tata Group is the India’s largest and most esteemed business group. Tata Group’s name is synonymous with India’s industrialisation (www.tata.com). Today, Tata Group consists of 96 operating companies in seven business sectors such as Information Technology and communications engineering, materials, services, energy, consumer products, and chemicals. The Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations.

Jamsetji Nusserwanji Tata, the founder of Tata Group. First, he started a private trading firm in 1868 and 1874; he set up the Central India Spinning Weaving and Manufacturing Company Limited and thus marked the Group’s entry into textiles.

In 1887, he formed a joint venture firm, Tata & Sons, with his elder son Sir Dorabji Tata and his cousin Ratanji Dadabhoy Tata. His younger son Sir Ratan Tata joined the firm in 1896. In 1902, the Indian Hotels Company was incorporated to set up the Taj Mahal Palace and Tower, India’s first luxury hotel, which opened in 1903. The Tata Iron and Steel Company (now known as Tata Steel) were established to set up India’s first iron and steel plant in Jamshedpur. In 1910, Tata Hydro-Electric Power Supply Company, (now Tata Power) was set up. In 1917, Tata Oil Mills Company was established to make soaps, detergents and cooking oils. In 1932, Tatas entered aviation sector with the establishment of Tata Airlines. In 1939, Tata Chemicals, presently, the largest producer of soda ash in India, was established. In 1945, Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) was established to manufacture locomotive and engineering products. In 1954, India’s major marketing, engineering and manufacturing organisation, Voltas, was established. In 1962, Tata Finlay (now Tata Tea), one of the largest tea producers, was established. In 1968, Tata Consultancy Services (TCS), India’s first software services company, was established as a division of Tata Sons.

In 2000, Tata Tea acquired the Tetley Group, UK. This was the first major acquisition of an international brand by an Indian business group. In 2001, Tata entered into insurance business in joint venture with Tata AIG. In 2007, Tata Steel acquired Corus the fifth largest steel company in the world. In 2008, Tata Motors acquires the Jaguar and Land Rover brands from the Ford Motor Company.

Since its inception in 1968, TCS has invested in new technologies, processes and people in order to help its customers succeed. With inputs from its innovation labs and university alliances, TCS keeps clients up-to-date with new technology. This has helped the company meet various benchmarks of excellence in software development. (www.tcs.com)

Tata Consultancy Services (TCS) delivers real results to global businesses by ensuring a level of certainty that no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model, recognised as the benchmark of excellence in software development.

As part of the Tata group, TCS has over 130,000 of the world’s best-trained IT consultants in 42 countries; its clients include seven of the top ten corporations in the Fortune 500. The company generated consolidated revenues of USD5.7 billion for the fiscal year ended 31 March 2008.

Industry verticals that TCS serves are;

Banking and financial services, Insurance, Telecom, Media and information services, Government, Healthcare and life sciences, Energy and utilities, Retail and FMCG, Travel, transport and hospitality, Manufacturing, High-tech and professional services .

Awards

TCS has bagged recruiting and staffing best class awards (RASBIC) for the year 2008-2009 in two of its categories- ‘Best use of Technology in Recruiting’ and ‘Most Innovative Program/Initiative in Recruiting’. The RASBIC awards aim to recognise and honour organisations for their exemplary practices in recruiting and staffing. TCS wins this honour in the former category for the second year in a row. The award was presented on 5th of February 2009 in Mumbai, India. And the company was chosen from among more than 50 participants across industry sectors. The jury for the award included leading experts and practitioners in human resources across India with expertise in workforce management and talent acquisition.

Talent Acquisition has traditionally taken centre stage in TCS with recruitment teams across the globe chasing an ambitious target of over 30,000 people to support the growing business needs of the organisation. This year-on-year industry-wide recognition is a testimony to its healthy recruitment policies, processes and methodology as well as its demonstrated ability to deliver certainty to all the key stakeholders. (Annual report www.tcs.com)

During the last few years TCS is striving to grow in a competitive, globalizes scenario. The Corporation continues its mission for good quality products and customer delight to meet the challenge. In such a situation, human resources and their competency play an important role as the real strength of organization depends on strengths and abilities of its human capital. Recruiting and selecting is the first line of defence, in bringing the right people to the organization.

Determining who the right people are, should not limit to experience and education, but with personality, attitude, communication abilities, and other behavioural characteristics that fit the organisation. The overall aim of the recruitment & selection practices should be obtained at minimum cost the number and quality of employees required to satisfy the human resource needs of the company. To select the “Right person for the right job” is one of the most important and most difficult responsibilities of the executives. Using interviews, reference checks sometimes-even personality tests, they try to infuse logic and predictability into hiring still, success remains elusive.

In view of above, it becomes imperative to study the effectiveness of the existing recruitment and selection policy.