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COMPENSATION STRATEGY         OF                           Presented By-                           Juhi Priya             ...
ABOUT TCS•   Industry          IT services , IT consulting•   Founded          1968•   Founder(s)       J R D Tata•   Head...
• TCS is one of the largest private sector employers in  India, and the second-largest employer among listed  Indian compa...
Compensation Management“Compensation management is a strategic activitythat helps an organization improve theeffectiveness...
Types of CompensationDirect Compensation• Wages• Salaries• Commissions, Bonuses, Gainsharing, Profit SharingIndirect Compe...
EVA compensation model for TCSTCS adopted EVA aimed at creating economic value by concentrating on long term continuous i...
TCS Employee Satisfaction(2003-04)Parameter               Industry          TCS                        averageCompany Imag...
Pay and Performance Relationship            Feedback to employee                Employee                             Emplo...
Incentives Take Home        Doesn’t always need to be “show me da money!”• Most simple and best option is have doable goal...
EVA MODEL BY TCS   COMPENSTION MANAGEMENTFIXED                     VARIABLE            Piyoosh Bajoria
Incentive Plans1. Individual-In this plan output of each worker can be accurately measured.2. Group- In this plan output i...
Incentive Schemes In Indian Industry1.In 1946 incentives plans were introduced in our country.2.Incentive scheme differ fr...
Benefits and Services Treats                  Knick-Knacks                  Awards                       Office •Free     ...
Cafeteria Benefit PlanEmployees are given the choice to select the benefit schemesCustomize benefit programme after assess...
TATA CONSULTANCY SERVICES      SALARY INFORMATION    Annual Base Salary                           Rs. 164959 per anum     ...
Other Benefits1. Provident Fund @ 12% on the basic (employer contribution) 79182. ESI @ 4.75% (employer contribution) 7123...
THANK                     YOU        Piyoosh Bajoria
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  1. 1. COMPENSATION STRATEGY OF Presented By- Juhi Priya Monica Piyoosh Bajoria Aakriti
  2. 2. ABOUT TCS• Industry IT services , IT consulting• Founded 1968• Founder(s) J R D Tata• Headquarters Mumbai, Maharashtra, India• Key people Ratan Tata (Chairman) N. Chandrasekaran (CEO & MD)• Revenue US$ 10.17 billion (2011/12)• Profit US$ 2.2 billion (2011/12)• Employees 254,076 (Sep 2012)[2] Piyoosh Bajoria
  3. 3. • TCS is one of the largest private sector employers in India, and the second-largest employer among listed Indian companies (after Coal India Limited).• In the 2011/12 fiscal year TCS recruited a total of 70,400 new staff, of whom 61,055 were based in India and 9,345 were based in the rest of the world.In the same period a total of 30,431 staff left employment with TCS, leaving a net increase of 39,969, of whom 36,232 were based in India and 3,737 in the rest of the world.• TCS has announced plans to recruit 60,000 graduates in the 2012/13 fiscal year. Piyoosh Bajoria
  4. 4. Compensation Management“Compensation management is a strategic activitythat helps an organization improve theeffectiveness of its employee reward processes. “Major components of compensation systems•Basic Wage and salary plans.•Incentives•Employee benefits.•Performance-based pay Piyoosh Bajoria
  5. 5. Types of CompensationDirect Compensation• Wages• Salaries• Commissions, Bonuses, Gainsharing, Profit SharingIndirect Compensation• Pay for Time Not Worked (vacation, sick leave, holidays, etc.)• Insurance Coverage (medical, dental, life, etc.)• Income Security (pensions and disability)• Services(education assistance, child care, recreation, discounts, etc.) Piyoosh Bajoria
  6. 6. EVA compensation model for TCSTCS adopted EVA aimed at creating economic value by concentrating on long term continuous improvement.This model measured operating and financial performance of the organization.Basis for giving compensation to employees.To assess employees’ contribution, at the company. Component of fixed and variable pay were determined Fixed Pay- wages, pension. Variable Pay- bonus, profit sharing and stock options. Piyoosh Bajoria
  7. 7. TCS Employee Satisfaction(2003-04)Parameter Industry TCS averageCompany Image 9.3 9.6Job Content Growth 9.1 9.9Training 8.7 10.0Salary & Compensation 8.2 8.8Appraisal System 8.8 9.7People In company 9.1 9.5Overall Satisfaction 9.2 9.8 Piyoosh Bajoria
  8. 8. Pay and Performance Relationship Feedback to employee Employee Employee Employee Performance considers equity expects is performs of performance, Pay evaluated job pay Employee sets new expectations based on previous experiences Piyoosh Bajoria
  9. 9. Incentives Take Home Doesn’t always need to be “show me da money!”• Most simple and best option is have doable goals and agreement with them.• Recognizing an employee’s contribution is a simple tool.• On a day-to-day basis, you can use: Having fun part of work Job rotation Expression of appreciation in front of others Bigger desk Note of thanks Challenging work assignments Piyoosh Bajoria
  10. 10. EVA MODEL BY TCS COMPENSTION MANAGEMENTFIXED VARIABLE Piyoosh Bajoria
  11. 11. Incentive Plans1. Individual-In this plan output of each worker can be accurately measured.2. Group- In this plan output is calculated in group. Ex-electrical industry.Advantages of group Incentives are-1.Better co-operation among workers.2.Less supervision.3.Reduced incidence of absenteeism.4.Reduced clerical work.5.Shorter training time.Disadvantages are1.An efficient worker may be penalised for the inefficiency of theother members in the group.2.Rivalry among the members of the group defeats the very purposeof team work and co-operation. Piyoosh Bajoria
  12. 12. Incentive Schemes In Indian Industry1.In 1946 incentives plans were introduced in our country.2.Incentive scheme differ from industry to industry andplant to plant within an industry.3.The schemes in public sector plants have an extremelyvaried coverage.4.Inflation has reduced the motivational effect ofincentives.5.In many industry incentives have achieved theirobjectives ,i.e. increased productivity and enhancedearnings. Piyoosh Bajoria
  13. 13. Benefits and Services Treats Knick-Knacks Awards Office •Free •Desk •Trophies Environmen lunches Accessories •Plaques t •Festive •Company •Citations •Redecoratio bashes watches •Certificates n •Coffee •Tie Pins •Letters of •Office with a breaks •Broaches appreciation window •Picnics •Diaries/Planner •Piped music •Dinner Social Tokens On the job •Flexible s with boss Acknowled •Calendars •Movie ticket •More hours •Dinner gement •Vacation responsibility •Wallets for the •Informal Trips •Job rotation •T-shirts family Recognition •Coupons •Special •Birthday •Recognitio redeemable assignments treats n at office at stores •Training •Early time- •Representing offs the company at •Anniversary, public fora dating and birthday allowances/pr esents Piyoosh Bajoria
  14. 14. Cafeteria Benefit PlanEmployees are given the choice to select the benefit schemesCustomize benefit programme after assessing employeeneeds and preferencesPotential choices : cash, retirement plan contributions,vacation days, and insurance.Example one employee may wish to take health careinsurance, while another employee may wish to take lifeinsurance. Piyoosh Bajoria
  15. 15. TATA CONSULTANCY SERVICES SALARY INFORMATION Annual Base Salary Rs. 164959 per anum 1. Basic 65984 2. HRA 329923. Medical Reimbursement (On 15000 submission of bills) 4. Transport Allowance 9600 5. Shift Allowance 19800 6. Special Allowance 21584 Piyoosh Bajoria
  16. 16. Other Benefits1. Provident Fund @ 12% on the basic (employer contribution) 79182. ESI @ 4.75% (employer contribution) 7123Annual Gross Salary 180000Performance IncentivesIncentive Potential upto 20% of Annual Base Salary on successful completion of ExpectedBusiness Results,payable quarterly.Additional Benefits AnnualGratuity as per Payment of Gratuity act, 31741972Mediclaim Insurance premium for Self plus 5 9000dependentsPersonal Accident Insurance coverage premium 500 Piyoosh Bajoria
  17. 17. THANK YOU Piyoosh Bajoria
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