How HR Organization Works-"An Analysis of Tech Mahindra"
FINAL PROJECT REPORT A study on human resource practices followed in Tech MahindraSubmitted in Partial Requirements for the Course in Human Resource Management, MBA 2ndSemester, Vinod Gupta School Of Management, IIT Kharagpur Submitted By K.Navneeth Rao
About the CompanyOverviewTech Mahindra is part of the US $11.1 billion Mahindra Group, in partnership with BritishTelecommunications plc (BT), one of the world’s leading communications service providers.Focused primarily on the telecommunications industry, Tech Mahindra is a leading globalsystems integrator and business transformation consulting organization. Tech Mahindra hasrecently expanded its IT portfolio by acquiring the leading global business and informationtechnology services company, Mahindra Satyam (earlier known as Satyam Computer Services).Tech Mahindra’s capabilities spread across a broad spectrum, including Business SupportSystems (BSS), Operations Support Systems (OSS), Network Design & Engineering, NextGeneration Networks, Mobility Solutions, Security consulting and Testing. The solutionsportfolio includes Consulting, Application Development & Management, Network Services,Solution Integration, Product Engineering, Infrastructure Managed Services, RemoteInfrastructure Management and BPO. With an array of service offerings for TSPs, TEMs andISVs, Tech Mahindra is a chosen transformation partner for several leading wire line, wirelessand broadband operators in Europe, Asia-Pacific and North America.Tech Mahindra has successfully implemented more than 15 Greenfield Operations globally andhas over 126 active customer engagements mostly in the Telecom sector. The company hasbeen involved in about 8 transformation programs of incumbent telecom operators.In the Telecom sector, Tech Mahindra has niche and proven domain expertise, distinctive ITskills, research and development, innovative delivery models and approach to off-shoring.Company’s solutions enable clients to maximize returns on IT investment by achieving fastertime to market, reduced total cost of ownership resulting into high levels of customersatisfaction. Tech Mahindra’s achievements have been recognized by various industryanalysts, forums and clients – winning several prestigious awards and accolades.Tech Mahindra has a global footprint through operations in more than 25 countries with 17sales offices and 13 delivery canters. Assessed at SEI CMMi Level 5, Tech Mahindras trackrecord for value delivery is supported by over 34, 200 professionals who provide a uniqueblend of culture, domain expertise and in depth technology skill sets. Its development centersare ISO 9001:2008 & BS7799 certified.History:Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and BritishTelecom plc in 1986 under the name of ‘Mahindra British Telecom’. Later, the name waschanged to ‘Tech Mahindra’, to reflect the diversification and growth of the client base andthe increased breadth of our service offerings.Milestones
Tech Mahindra’s quality service is recognized by customers, media and various associationsglobally. The prestigious awards and recognitions that reflect expertise and innovation of TechMahindra include: •Winner of 2010 and 2011 AT&T Supplier Award for outstanding performance & service toAT&T and its affiliates •Ranked 5th in NASSCOMs Top 20 IT services Exporters, 2009-2010 •9 th Largest IT-BPO Employer in India (NASSCOM HR Summit, 2010) •Best System Integrator by CMAI and INFOCOMs National Telecom Awards 2010 •1st Runner-up for the Best Service Enablement Implementation at the BOSS Conference &Expo 2010 •Leapvault Change Leadership Award 2010 for Game Changing M&A - Domestic Category •In the Leaders Category in the 2010 Global Outsourcing 100 (IAOPs Annual List of the BestOutsourcing Service Providers) •Software Solution of the Year Middle East by TMT Finance & Investment Middle East Awards •Amongst the Top 50 NASSCOM Innovators for the Year 2009 •Ranked #1 in Telecom Software category by Voice & Data, 2009 (V&D100 Ranking) •
Values Tech Mahindra is focused on creating sustainable value growth through innovative solutions and unique partnerships. Our values are at the heart of our business reputation and are essential to our continued success. We foster an environment to instill these values in every facet of our organization. Customer first Good corporate citizenship Professionalism Commitment to quality Dignity of the individualReward System of Tech Mahindra Aim of the Reward Policy is to establish the framework to use various mechanisms to reward and recognize employees at Function level and at the Organization level. Objective of Rewards: Recognize employees who are committed to the Company’s growth Recognize employees who live the values of the organization. Reward employees for participation and contribution in activities of strategic importance. Reward employees for contributing significantly to organization development. Recognize employees for their continuous and long-term association with the organization.Tech Mahindra has unique way of rewarding which includes but not limited to stock options,compensation, and recognition by giving awards.The Rewards Program has been categorized under two categories: Organization Awards: Aims to reward employees at the organization level Function awards: Aims to reward employees at the function levelAwards at Functional level:PAT ON THE BACK: It is a spot award given to individuals for excellence demonstrated in a particularsituation, event or assignment.VALUABLE TEAM PLAYER: This award is given to an individual for excellence at the workplace,leading to team excellence, significant impact on business or customer satisfaction.
STAR PERFORMER: Star Performer awards are instituted to recognize exemplary contribution by anindividual resulting into direct internal or external business advantage RISING STAR: This award will be instituted upon those who have shown outstanding performance ina very short span of time.BEST MANAGER: The award endeavors to recognize the skill and acknowledge the consistent hardwork put in by the individual in order to consistently achieve outstanding deliveriesAwards at Organizational levelBEST TEAM AWARD: It is given to an outstanding team that has exhibited excellent performanceover an assignment or project leading to exceptional customer feedback, business processimprovement or significant value-add to the organization as a whole.BEST SUPPORT GROUP OF THE YEAR: The Best support group award has been established torecognize the value of support Functions in the organizationEMPLOYEE SATISFACTION AWARD: The Function with the highest employee satisfaction index willbe awarded with the Employee Satisfaction Award.DRONACHARYA AWARD: Dronacharya award appreciates the work done by the outstanding leadersfor the organization. It highlights individuals who have consistently lived the values of our organizationand set an example for everyoneIn order to retain employees and recognize employees having long term relationship, following awardsare conferred FIVE YEAR ASSOCIATION AWARD TEN YEAR FELLOWSHIP AWARDEscalation Matrix:Any issues relating to non compliance to the R&R policy can be addressed using the followingescalation matrix .A sample of matrix will look like the followingRecruitment processTech Mahindra laid more emphasis on Non- Technical staff as these are the people which are neededto do most of the administrative work. Recruitment of Technical staff is mostly through campusplacements and the number depends on the requirement. Recruitment of Non Technical Staff: Non-Technical recruitment deals with recruitment of candidates for permanent and on direct contract roles for departments like:
Marketing & Sales Finance Legal FMG- Facility Management Group Human Resources Resource Management Group- RMG Learning & Development Role PMO/ Secretaries for DeliveriesBased on the requirement employees are categorized into Permanent Employees Contract Employees Permanent Employees: These employees enjoy all perks and allowances like HRA, LTA and insurances like health insurance, accident insurance, life insurances etc. Contract Employees: They are employed for a contract period which depends on the requirement and they do not enjoy any perks and are not given allowances given to permanent employees. Campus Recruitment Management Trainees - This includes recruitment of Fresh Management graduates and postgraduates from reputed institutes across the country to meet specific business requirement. These trainees are hired on the permanent rolls of the organization as Management Trainees which is equivalent to Sr. Executive in support domain. These trainees undergo the similar kind of selection process as lateral recruits. Global Leadership Cadre - The objective of the GLC Program is to select management graduates who have the potential to occupy managerial positions and to groom them to take up senior leadership roles in the organization. These candidates are hired from A grade national & international colleges and are allocated strategic roles in the company. Summer Trainees - Candidates recruited in this category are Management graduates or postgraduates who are pursuing their MBAs or other management studies and are given special project or assignment, as part of their academic curriculum. Such trainees are hired on
contract for a short term assignment with Tech Mahindra and are compensated by way of a monthly stipend. Lateral Recruitment To cater to the growing demands of business growth in the organization, Tech Mahindra recruits professionally qualified management graduates or post graduates from reputed institutes with relevant years experience in their respective areas. Depending on the years of experience and the evaluation during the interview, the candidate is recruited at a particular grade in the organisation. Lateral Recruitment at Tech Mahindra can be subdivided as per following: India Hiring Overseas Hiring India hiring: Recruitment in India for all support level hiring’s. Overseas hiring: overseas hiring in Tech Mahindra refers to hiring of local candidates or those eligible to work in a country other than India.SELECTION PROCEDURE:CVs received from different sources undergo the preliminary screeningThis is followed by Functional and HR interview.Reference check is done for selected candidates and basis of the positive response an offer ofemployment is made to the candidateFactors considered during recruitment- 1. Job knowledge 2. Hands-on experience 3. Related work knowledge 4. Personality / Presentability 5. Confidence level 6. Mental alertness 7. Communication skills 8. Staff management skills 9. Enthusiasm 10. Ability to work under pressure and demanding situations 11. Eagerness for association with Tech Mahindra
12. Mouldability 13. Potential for growth 14. Local contacts, etc. 15. Likelihood of success 1. Job knowledge 2. Hands-on experience 3. Related work knowledge 4. Personality / Presentability 5. Confidence level 6. Mental alertness 7. Communication skills 8. Staff management skills 9. Enthusiasm 10. Ability to work under pressure and demanding situations 11. Eagerness for association with Tech Mahindra 12. Mouldability 13. Potential for growth 14. Local contacts, etc. 15. Likelihood of successSourcing of candidatesIn response to an identified and approved requirement for specified numbers of professionals inspecific skills, the respective recruiter assigned by Non-Technical Recruitment Manager sourcescandidatures from different sources, namely: Support buddy Scheme (email@example.com) HR website (http://hr.techmahindra.com) Advertisements Direct/Network/Relationship Job Portals Placement AgenciesSupport Buddy SchemeThe Buddy Scheme, which is an associate referral scheme, is one of the most contributing andencouraged source of lateral recruitment. The scheme has been introduced to attract professionalsfrom diverse work cultures and functional areas that can help the organization achieve its growthplans by taking on mission critical roles. The scheme encourages Tech Mahindra associates to postresumes of friends and relatives at firstname.lastname@example.org.Compensation Management:Compensation is broadly categorized into Direct Compensation and Indirect Compensation.Compensation depends on the grade level of the employee and whether the employee falls underthe category of permanent employee or contract employee.
Direct compensation: It includes Salary HRA LTA Bonus Special allowance Medical reimbursement Conveyance Indirect compensation: It includes Overtime policy Leave policy Insurance Leave travel Retirement benefits Holiday home Flexible timingsVariable Pay ProgramPay to Performance (P2P) is a Variable Pay program. The objective of P2P framework is to bring incross functional accountability across groups in the organization at both individual and team levelthere by fostering a culture of team work and excellenceP2P framework encompasses the parameters that are most critical out of various parameters thathave implication on organization’s overall performance. P2P framework typically comprise ofparameters that are linked to individual, group and organization levels. Each of these parameters isapplicable as relevant to each category of employees. Weight ages are assigned within each Categorydepending on employee’s grade. The variable pay linked to each of these parameters will be paidbased on achievement against the given parameter Parameter Organization LevelRevenues EBITDA Group LevelESAT(Emp EmployeeSatisfaction) Retention ICSATGroup Group CapabilityQuality CSAT Building Individual Level Quality IndividualBillability Individual** Performance
Employee Care- • Events, workshops and awareness sessions on health & wellness ensure we have a healthy & fit workforce. • In-house visiting doctor and nutritionist and in-house psychologists • Banking, insurance and tax planning helpdesks at our campuses, • Indoor games and music facilities act as refreshers at the end of a long day Education and Learning- • Employees can participate in higher learning programs that lead to university certificates and degrees from various institutes of excellence like IIT Mumbai, BITS Pilani, University College, London and Illinois Institute of Technology, Chicago. • Work integrated learning programs of BITS PERFORMANCE MANAGEMENT PROCEDURE Performance appraisal is based on a review of performance against set Goals, and assessment of Professional Competencies (PC), Behavioral Competencies (BC) & Technical Competencies that are applicable to the Role. The ide@s application is used as a centralized system for the execution, tracking and maintenance of the performance management process. Performance is evaluated twice a year, through one Annual performance Review (conducted in the month of April) and one Mid-term review (Conducted in the month of October). The appraising manager should have a formal Performance Review Discussion with the employee before the Mid Term Review and the Annual Appraisal. 1.1.1 Goals Setting Procedure • The reporting Officer (Appraiser) of each eligible employee (Appraisee) will finalize the Individual Performance Goal(s), Organization development goals and Self development goals, for the employee at the beginning of the Performance Appraisal Period (typically during the month of June), in discussion with the Appraisee. • New goals can be added during the year as and when the appraisee changes his project and his role within his project. • Goal setting for the employees, who join in the middle of the year, is done within two months of their joining.
• All the goals are to be mutually agreed and would be captured in ide@s system and can be viewed by the Manager – PMS, Appraiser and the Appraisee• The goals for individuals will be derived from the following sources (refer goal setting model below): • Functional Goals • Key Result Areas (Generic performance Indicators associated with the Role within a function) • Learning and Development Plans for the individual (Career Aspirations)As a structured process, Organizational goals are cascaded to identify critical functional goals, which in turn cascade appropriately to individual level goals. This is done to ensure objectives at the Organization level, Functional level and the Individual levels are in alignment.Goals thus derived could relate to specific targets, objectives, milestones or operational processes. This enables the individuals to plan for their committed work using appropriate planning techniques, including the use of operational process norms, where appropriate.• All goal setting is done using the SMART technique and could involve quantitatively / qualitatively measurable goals or milestone linked goals as appropriate. The measures for the various goals are selected on the basis of their suitability for assessing whether the desired performance is happening.• During the subsequent performance reviews, the employee (Appraisee) would be evaluated on his performance against the Goals set for him for the Appraisal period. The review process would aim at qualitatively and quantitatively assessing achievement against agreed goals.1.1.2 Midterm Appraisal Procedure
• A Mid-term performance review is conducted every year to review the performance mid way through, provide performance feedback to employees, revisit the Goals set for them and make any revisions if required• The Manager - Performance Appraisal initiates the mid-term review process by announcing the schedule• The Manager - Performance Appraisal will prepare and make available• guidelines, for conducting the Mid-term Performance Review• Required training inputs for appraisers and appraisees to conduct the mid term review• The Appraisee fills in the details of activities performed against set goals during the review period in Ide@s system and also rates himself against each goal.• The appraisee can also add one activity containing details of all the tasks that were performed by him/her but were not directly linked to any of the set goals.• Appraisee then enters career aspiration for himself and submits the appraisal.• The Appraisee and the Appraiser discuss the performance and agree on areas for improvement, revision of performance goals, in a PRD session• The Appraiser (person who has finalized the goal) evaluates the individual on his/her performance against the set goals by rating the appraisee on each goal. He can also take inputs from other managers and include the same in the referral manager’s remarks.• The sub-owner will do the leveling/banding of the final ratings within his group.• After the sub-owner/owner level leveling is completed the final ratings are sent to the compensation team for further processing.• In case of a disagreement, the panel member appointed by the IDU Head discusses the grievance with the appraisee and the appraiser and makes a recommendation in the Ide@s system with approval from IDU head.1.1.3 Annual Appraisal Procedure• The ‘Annual Performance Review’ would take into account the performance of the Employee during the period of 1st October of the previous year to 31st March of the current year. In case of employees not covered during the previous performance review the review period will start from their date of joining.
• The Manager - Performance Appraisal initiates the appraisal process by announcing the schedule.• The appraisee accesses the ide@s system and enters the details of the performed activities against each goal for him/her for the appraisal period along with a self rating.• The appraisee can also add one activity containing details of all the tasks that were performed by him/her but were not directly linked to any of the set goals.• The appraisee then rates himself on competencies (BC, PC, TC) applicable. The Self- Appraisal rating by the Appraisee will not influence the final rating but will be a reference point during the ‘Performance Review Discussion’ (PRD).• The appraisee can recommend a training (behavioral / technical) for himself in the appraisal form• The Appraiser evaluates the individual on the performance against each goal and on applicable Behavioral, Technical and Professional Competencies.• While arriving at the final rating, weightage is given by the appraisers to the following two aspects: • the extent to which the appraisee has used, and/or contributed to, the Competency based assets, • assessee’s contribution to any task force activities.• The appraiser also provides his overall comments on the performance, and any feedback from customer. He can also take inputs from other managers and include the same in the remarks.• Finally the appraiser identifies the training needs (behavioral and technical) for the appraisee.• The Appraiser completes all the above entries in Ide@s system along with comments and invites the Appraisee for the (PRD).The Performance Review Discussion is a dialogue mechanism between the appraiser and the appraisee, which helps appraiser to discuss- Performance gaps vis-à-vis set standards or agreed expectations- Inputs for Competency Development.- Career Development plan.
- Goal setting for the next performance period. • The sub-owner / owner will do the levelling of the final ratings within his group and will finalize the promotion recommendations. • After the sub-owner/owner level levelling is completed the final ratings and promotion recommendations are sent to the compensation team for further processing. • At this time the appraisal form with ratings and comments by appraiser and the final band is made visible to the appraisee in Ideas system to provide his feedback and disagreement if any. • In case of a disagreement, the panel member appointed by the IDU Head discusses the grievance with the appraisee and the appraiser and makes a recommendation in the Ideas system with approval from IDU head.Recommendations:While studying the reports and analysing the company we found that the following • Two pronged recruitment policy • Standard Appraisal policy • Good Reward system • Good focus on learning (ex- first organization to join the Distance Education Program of IIT ) • High attrition rates (30% in Oct 2010)Even with these positives the company is confronted with high attrition so finally these are thesuggestions we would have given, • Need to differentiate it from the other IT companies • Need to restructure pay package • Need to check implementation of policies at ground level.