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System in Tata Indicom Company. The main objective of this project will go through the
history and structure of the Tata Indicom company. The report will also examine the
different types of theoretical approaches which is suitable for the company. It will also
show the study of Performance management and Performance Appraisal in depth. The
literature review research will help in findings by developing the framework on which
the research is done. The framework will be used to critically evaluate the effectiveness
of the Tata Indicom performance management. The final part conclusion and
recommendation is formulated from the deep research of critically evaluating and
findings.
INDUSTRY PROFILE
Introduction
The Indian Telecommunications network is the fifth largest in the world with 110.01
million connections and in emerging economies of Asia it comes among second largest
in the world. Presently, it is growing fastest in the world market and presents again the
unequaled opportunities for companies in United States in the stagnant worldwide
scenario. The total subscriber base, which has grown by 40% in 2005, is expected to
reach 250 million in 2007. By 2007 Government of India aims nine million broadband
connections and eighteen million internet connections as per Broadband Policy 2004. In
2004 the wireless subscriber has jumped from 33.69 million to 62.57 million in financial
year 2004-2005. Previous three years, every three new telephone subscribers were
wireless subscribers out of two. Consequently, wireless now accounts for 54.6% of the
total telephone subscriber base, as compared to only 40% in 2003. By 2007 the wireless
subscriber growth is expected to bypass 2.5million new subscribers per month. Global
Mobile Communications (GSM) and Code Division Multiple Access (CDMA) are in
currently use of wireless technologies. In Nineteen telecom circles and 4 metro cities,
2000 towns across the country has primarily 9 GSM and 5 CDMA operators providing
mobile services.
A large population, low telephony penetration levels, and a rise in consumer's income
and spending owing to strong economic growth have helped make India the fastest-
growing telecom market in the world. The first and largest operator is the state-owned
incumbent BSNL, which is also the 7th largest telecom company in the world in terms of
its number of subscribers. BSNL was created by corporatization of the erstwhile DTS
(Department of Telecommunication Services), a government unit responsible for
provision of telephony services. Subsequently, after the telecommunication policies
were revised to allow private operators, companies such as Bharti Telecom, TATA
Indicom, Vodafone, MTNL, Idea,Vodafone and BPL have entered the space. Major
operators in India. However, rural India still lacks strong infrastructure.
In 2007, an article by Business week magazine reported that India's mobile phone
market is the fastest growing in the world, with companies adding some 6 million new
customers a month.
The total number of telephones in the country crossed the 300 million mark on June 18
2008The overall tele-density has increased to 36.98% in March 2009 In the wireless
segment, 15.87 million subscribers have been added in March 2009. The total wireless
subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wireline
segment subscriber base stood at 38.22 million with a decline of 0.13 million in October
2008.
COMPANY PROFILE
TATA GROUP
TATA is a rapidly growing business group based in India with significant international
operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251543 crore)
of which 61 per cent is from business outside India. The Group employs around 350,000
people worldwide. The TATA name has been respected in India for 140 years for its
adherence to strong values and business ethics. The business operations of the TATA
Group currently encompass seven business sectors: communications and information
technology, engineering, materials, services, energy, consumer products and chemicals.
The Group's 27 publicly listed enterprises have a combined market capitalisation of
some $60 billion, among the highest among Indian business houses, and a shareholder
base of 3.2 million. The major companies in the Group include TATA Steel, TATA Motors,
TATA Consultancy Services (TCS), TATA Power, TATA Chemicals, TATA Tea, Indian Hotels
and TATA Communications.
The Group's major companies are beginning to be counted globally. TATA Steel became
the sixth largest steel maker in the world after it acquired Corus. TATA Motors is among
the top five commercial vehicle manufacturers in the world and has recently acquired
Jaguar and Land Rover. TCS is a leading global software company, with delivery centres
in the US, UK, Hungary, Brazil, Uruguay and China, besides India. TATA Tea is the second
largest branded tea company in the world, through its UK-based subsidiary Tetley. TATA
Chemicals is the world's second largest manufacturer of soda ash. TATA
Communications is one of the world's largest wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group is also
gaining international recognition. Brand Finance, a UK-based consultancy firm, recently
valued the TATA brand at $11.4 billion and ranked it 57th amongst the Top 100 brands
in 11 the world.
Business week ranked the Group sixth amongst the world's most Innovative Companies
and the Reputation Institute, USA, recently rated it as the World's Sixth most Reputed
Firm founded by Jamsetji TATA in 1868, the TATA Group's early years were inspired by
the spirit of nationalism. The Group pioneered several industries of national importance
in India: steel, power, hospitality and airlines. In more recent times, the TATA Group.s
pioneering spirit has been showcased by companies like TATA Consultancy Services,
India's first software company, which pioneered the international delivery model, and
TATA Motors, which made India's first indigenously developed car, the Indica, in 1998
and recently unveiled the world's lowest-cost car, the TATA Nano, for commercial launch
by end of 2008.
The TATA Group has always believed in returning wealth to the society it serves. Two
thirds of the equity of TATA Sons, the TATA Group's promoter company, is held by
philanthropic trusts which have created national institutions in science and technology,
medical research, social studies and the performing arts. The trusts also provide aid and
assistance to NGOs in the areas of education, healthcare and livelihoods. TATA
companies also extend social welfare activities to communities around their industrial
units. The combined development-related expenditure of the trusts and the companies
amounts to around 4 per cent of the Group's net profits.
Going forward, the Group is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another TATA company), which in 2008 is ranked the
world's fourth fastest. The Group aims to build a series of world class, world scale
businesses in select sectors. Anchored in India and wedded to its traditional values and
strong ethics, the Group is building a multinational business which will achieve growth
through excellence and innovation, while balancing the interests of its shareholders, its
employees and wider society.
Purpose
At the TATA Group "our purpose is to improve the quality of life of the communities we
serve. We do this through leadership in sectors of national economic significance, to
which the Group brings a unique set of capabilities. This requires us to grow
aggressively in focused areas of business. Our heritage of returning to society what we
earn evokes trust among consumers, employees, shareholders and the community. This
heritage is being continuously enriched by the formalization of the high standards of
behaviour expected from employees and companies". The TATA name is a unique asset
representing leadership with trust. Leveraging this asset to enhance Group synergy and
becoming globally competitive is the route to sustained growth and long-term success.
The TATA Group has always sought to be a value-driven organization. These values
continue to direct the Group's growth and businesses. The five core TATA values
underpinning the way we do business are:
Integrity:
We must conduct our business fairly, with honesty and transparency. Everything we do
must stand the test of public scrutiny.
Understanding:
We must be caring, show respect, compassion and humanity for our colleagues and
customers around the world, and always work for the benefit of the communities we
serve.
Excellence:
We must constantly strive to achieve the highest possible standards in our day-to-day
work and in the quality of the goods and services we provide.
Unity:
We must work cohesively with our colleagues across the Group and with our customers
and partners around the world, building strong relationships based on tolerance,
understanding and mutual cooperation.
Responsibility:
We must continue to be responsible, sensitive to the countries, communities and
environments in which we work, always ensuring that what comes from the people goes
back to the people many times over.
INDICOM - PROFILE
TATA Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) TATA Group,
that has over 80 companies, over 3,30,000 employees and more than 3.2 million
shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in
Telecom (FY 2006), the Group has a formidable presence across the telecom value chain.
TATA Teleservices spearheads the Group's presence in the telecom sector. Incorporated
in 1996, TATA Teleservices was the first to launch CDMA mobile services in India with
the Andhra Pradesh circle.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed
TATA Teleservices (Maharashtra) Limited] in December 2002 the company swung into an
expansion mode. With the total Investment of Rs 19,924 Crore, TATA Teleservices has
created a Pan India presence spread across 19 circles that includes Andhra Pradesh,
Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan,
Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata,
Madhya Pradesh and RoWB. Having pioneered the CDMA 1X technology platform in
India, TATA Teleservices has established a robust and reliable 3G ready telecom
infrastructure that ensures quality in its services. It has partnered with Motorola,
Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically
advanced network. The company, which heralded convergence technologies in the
Indian telecom sector, is today the market leader in the fixed wireless telephony market
with a total customer base of over 3.8 million.
TATA Teleservices bouquet of telephony services includes Mobile services, Wireless
Desktop Phones, Public Booth Telephony and Wireline services. Other services include
value added services like voice portal, roaming, post-paid Internet services, 3-way
conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services
and enterprise services.
Some of the other products launched by the company include prepaid wireless desktop
phones, public phone booths, new mobile handsets and new voice & data services such
as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive
applications like news, cricket, astrology, etc.
TATA Indicom redefined the existing prepaid mobile market in India, by unveiling their
offering TATA Indicom Non Stop Mobile which allows customers to receive free
incoming calls. TATA Teleservices today has India's largest branded telecom retail chain
and is the first service provider in the country to offer an online channel
Http://www.ichoose.in to offer postpaid mobile connections in the country.
TATA Teleservices has a strong workforce of 6000. In addition, TTSL has created more
than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its
manpower needs. Today, TATA Teleservices Limited along with TATA Teleservices
(Maharashtra) Limited serves over 27 million customers in more than 6000 towns. With
an ambitious rollout plan both within existing circles and across new circles, TATA
Teleservices offers world class technology and user-friendly services in 19 circles.
Products / Services
Landline Service
Mobile services
Internet
Dial up internet Prepaid mobile Wireless phones Mobile internet Post paid mobile
Landline phones Wireless internet Mobile mobile
Literature Review
Performance Management
Performance management is a process which business uses to achieve its targets and
objectives effectively. It includes such processes as planning and targeting, strategy
development, performance appraisals, etc.
Managers exercise their control by planning with objectives and targets, establishing the
performance standards, monitoring the actual business performance, comparing
performance with targets and correcting mistakes and taking action.
Determine your performance criteria and integrate these criteria with your
compensation systems.
Assist with the roll-out and communication of the program to your total employee
group.
To begin the process, manager and the employee will collaborate on the development
of performance standards. The manager will develop a performance plan that directs the
employee's efforts toward achieving specific results, to support organizational growth as
well as the employee's professional growth. Discuss goals and objectives throughout the
year, providing a framework to ensure employees achieve results through coaching and
mutual feedback. At the end of the rating period, manager will appraise the employee's
performance against existing standards, and establish new goals together for the next
rating period.
Quantity: Specifies how much work must be completed within a certain period of time,
e.g., enters 30 enrollments per day.
Quality: Describes how well the work must be accomplished. Specifies accuracy,
precision, appearance, or effectiveness, e.g., 95% of documents submitted are accepted
without revision.
Timeliness: Answers the questions, By when? , How soon? , or Within what period? e.g.,
all work orders completed within five working days of receipt.
Provides an avenue for staff to express their views about any aspect of work
Expectations are clear well communicated and related to the goals and objectives of the
department or unit staff receives frequent m constructive feedback.
Staff has the necessary knowledge, skills and abilities to accomplish goals.
The requirements of the performance planning and evaluation system are met and
evaluations are completed by established deadlines with proper documentation
Safety issues are reviewed and communicated to assure a safety and healthy workplace.
Objectives
The evolution of the concept of performance management as a new Human Resource
Management model reflects a change of emphasis in organizations away from
command and control toward a facilitation model of leadership. This change has been
accompanied by a recognition of the importance to the employee and the institution of
relating work performance to the strategic or long-term and overarching mission of the
organization as a whole. Employees' goals and objectives are derived from their
department's, which in turn support the mission and goals of the University.
For performance managers, this changing environment offers many new challenges and
opportunities. Performance managers and their employees are increasingly being asked
to become generalists who step outside of traditional narrowly-defined job descriptions
in support of team objectives and goals. These changes are resulting in the
development of new approaches to human resource management.
For performance managers and employees alike, responding to these changes requires
the ability to learn, adapt to change, solve problems creatively, and communicate
effectively in diverse groups. In addition, employees must take personal and proactive
responsibility for their careers to ensure future employability and advancement.
Direct observation
Specific work results (tangible evidence that can be reviewed without the employee
being present)
Reports and records, such as attendance, safety, inventory, financial records, etc.
Once performance objectives and standards are established, the head should observe
employees' performance and provide feedback. Manager have a responsibility to
recognize and reinforce strong performance by an employee, and identify and
encourage improvement where it is needed. They provide informal feedback almost
every day. By observing and providing detailed feedback, they play a critical role in the
employee's continued success and motivation to meet performance expectations.
Provide support
Reviewing progress
Regular feedback
Amending objectives
Annual appraisal
Self- assessment
Evaluating performance
Corporate strategic goals provide the starting point for business and departmental
goals, followed by agreement on performance and development, leading to the drawing
up of plans between individuals and managers, with continuous monitoring and
feedback supported by formal reviews.
Coaching
Measurement
Pay
Teams
Performance Appraisal
Â
PERFORMANCE APPRAISAL PROCESS:
Source: www.rose.edu/faculty/bperryman/f6.pdf
  Management by Objectives:
The method of management by objectives requires the manager to set up specific goals
or objectives with each employee in the organisation and discuss with them periodically
regarding the progress towards the goals.
The processes of MBO are more likely to be successful if they meet the SMART criteria:
M - Measurable- This is the process of tracking, monitoring and assessing the behaviour
or action upon which the objective is focused.
A - Achievable- The objectives that are set with people need to be capable of being
reached but most importantly they need to be agreed by both parties involved.
R - Realistic - This means two things: (1) The goal or target being set with the individuals
where they can impact upon change. (2) Objectives are realistic and important to the
business.
T - Time Based - This means there has to be a date and time for when the task staffed
and when it is to be completed.
The 360 degree feedback appraisal is mostly used as a method of performance appraisal
to gather traditional sources of information. It is more often used for the developmental
purposes where managers get aware of their strengths and weaknesses. 360 degree
appraisal is termed as the combination of information from self appraisal, sub ordinate
appraisal, peer appraisal and feedback from other internal customers, with the
possibility of including external suppliers and customers.
This method is one of the early attempts to move away from trait rating approaches and
was advocated by Flanagan. The supervisor sets some incidents to each employee which
is related to work behaviour. In this method rater is required to observe the positive and
negative behaviours of the employees in the given review period. It is the method which
is based on the description of the events which does not depend on the rating and
ranking systems. Critical incidents can be exceedingly useful in helping employees
improve since the information in them is more detailed and specific than in methods
that involve rating employees.