| Case Title |
EVA and Compensation Management System at Tata Consultancy Services |
| Case Author(s) |
Indu P. Vivek Gupta
|
| University |
ICFAI Center for Management Research, India |
| Abstract |
The case examines the compensation management system at TCS based on the EVA model. With the implementation of EVA based compensation, the salary of employees comprised of two parts - fixed and variable. The variable part of the salary was arrived after considering Corporate EVA, Business unit EVA and also individual performance EVA. The new system was implemented successfully and it helped the company identify the non-performers. The company also benefited a great deal in retaining talent. However, it also received criticism from several quarters for 'putting golden handcuffs on excellent performers.' |
| Available In |
ECCH Case Collection |
| Publisher |
ICFAI Center for Management Research (ICMR) |
| Publisher Case No. |
406-021-1 |
| Distributor(s) |
European Case Clearing House
|
| Pub/Rev Date |
2005 |
| ISBN |
|
| Case Length |
14 pgs |
| Teaching Note |
Yes |
| Pub TN Ref No. |
406-021-8 |
| Pages (TN) |
4 pgs |
| Issues |
Study the compensation management system at TCS; and analyze EVA as a performance measurement tool. |
| Organisation(s) |
Tata Consultancy Services
|
| Countries |
India |
| Industry |
Computer Software & Services |
| Period Covered |
1998 - 2005 |
| Level |
Postgraduate |
| Links of Interest |
TCS' Website
|
| Back |