Business Case Studies, TCS, Performance Management System

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HRM / OB Case Study

Case Title:

Performance Management System@TCS

Publication Year : 2009

Authors: Dr. Ravikiran Dwivedula, Deepti Srikanth

Industry: Services


Case Code: HRM0063

Teaching Note: Available

Structured Assignment: Not Available

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Established in 1968 as ‘Tata Computer Centre’, Tata Consultancy Services (TCS) was a pioneer in the Indian Information Technology (IT) arena. Despite numerous obstacles, including the government interventions and rigid licensing system,the company emerged as a successful player in the country. Headquartered in Mumbai, TCS has nearly 120,000 IT professionals working in offices spread across 42 nations. Its focus on building a diverse workforce along with its healthywork environment contributed to its growing popularity. In 2007, it topped the Global Services magazine’s list of ‘100 Best Performing IT Services’ while in2008, DataQuest ranked it as No.1 among IT service providers. The company also boasts of low attrition rates as compared to the other players in the industry.Moreover, to recognise, manage and motivate talent within the organisation, TCS has adopted a rigorous appraisal and evaluation mechanism. The company alsostrives to conduct a fair and objective appraisal process to ensure that employees who perform well are rewarded while the non-performers are given timely feedback. However, with the growth of the company, will it be possible to keepits appraisal process away from the clutches of bureaucracy?

Pedagogical Objectives:

  • To understand the role and importance of the performance appraisal processin an organisation
  • To analyse the advantages and drawbacks of the different appraisal methods
  • To discuss the pros and cons of the appraisal process at TCS
  • To debate on the challenges of designing an objective and transparent appraisalmethod.

Keywords : Tata Consulting Services, Performance Appraisal, Performance Management, TCS, Information Technology, Rewards, Balanced Score Card, Tata Steel, Outsourcing, BPO, Performance Evaluation, goal Setting, Workforce diversity, Central Bank of India


  • The Indian IT Giant's Rise to Success
  • The Performance Appraisal Process
  • Application of BSC to the Company’s Appraisal Process
  • Relationship between Weightages and Levels of Difficulty
  • Calculation of Goal IPF
  • Calculation of Final IPF

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