Ravikant who played a major function in the procedure of alteration. We have followed the ‘Denison’ model. Seeking new demographics and geographies for growth in order to face limitations that the domestic market imposes is the company’s prerogative. By vertical dissection, involvement and partnership show a company’s attitude towards flexibility and change, while compatibility and mission stress on stability and clear envisioned path. The Company’s culture of perpetual search for excellence is highly attributed to the Tata’s ethos and incessant efforts of its employees in the past several decades to serve the customers by bringing continuous innovation in its products and processes. In the case of Tata Motors, the organization has understood the importance of interactions between employers and workers. The commercial-vehicle market in India shrank by more than 40% for Tata Motors. In view of rising energy costs, consumers look for low cost car alternatives. While phase one focused on reducing costs, phase two was all about taking action in areas that would affect the other phases. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Our academic experts are ready and waiting to assist with any writing project you may have. It is also used in situations where the workforce is enabled and empowered to make decisions and resolve problems. Tata companies also extend social welfare activities to communities around their industrial units. Instances would be the new stonecutters Bridge construction or daily operations at MTR. AMITY GLOBAL BUSINESS SCHOOL 52 TATA MOTORS the interest rate for doing investment in a country (Russell, 2006). Tata Motors is set to offer utility vehicles at every price point right from Rs. Thailand has introduced the ‘Eco-car’ project, an initiative to build green cars which are fuel and cost efficient. Managers at a lower-level are not enabled in the decision-making process as managers at the upper-level. Statutory Committees of the Board. This enables the easy and fast flow of information among the employees, management including … Since the exercise for selecting L3-L5 is still underway, it is premature for us to comment on any other specifics at this … All Rights Reserved. It is the eighteenth largest motor vehicle manufacturing company in the world by volume. Organic structure cannot work when the organization faces a crisis, or when the firm is large. If sources are to be believed, the structural change, announced in an internal circular to the employees, emphasises upon eliminating … Do you have a 2:1 degree or higher? This group owns hundreds of companies that produce everything from cars to software to watches and running hotels.One of the group companies Tata Motors Limited trades on the NYSE. In English, the word ‘Tat’ means rubbish. Constancy allows a central point for consolidating and harmonizing the organizational structure. The process is continuous and one must learn on the job. TATA Motors Commercial Vehicle Business Unit then employed the balanced scorecard. MUMBAI: Tata Motors is shrinking structure of its white-collar workforce to five layers from the existing 14, in what is seen as the biggest organisational restructuring in the company’s history. Non-Executive, Independent Director. In two and a half years, Tata Motors brought down the break-even from nearly two-thirds. There also have been takeovers such as that of Daewoo’s commercial vehicle business in South Korea and a 21% stake in Hispano Corracera, the Spanish automobile producer. This process must be facilitated by the leader through unlearning (and not learning) and providing emotional support. Tata Motors has been pushing for electrical vehicles exceptionally in the class of business traveller vehicles (transports. The increase or decrease of Inflation, will lead to a lower or higher interest rate. These include ascertaining fundamental assumptions, questioning cultural gaps and managerial behavior in the organization. Both qualitative and quantitative methods were used for this report. Tata Motors has won a number of awards over the years e.g. A company spokesperson said: “Tata Motors confirms that as part of the ongoing organisation effectiveness project, where we have already finalised the top two levels of our management structure, a proposal on VRS package has been presented and approved by the board. Tata is looking at doubling SUV annual volumes to over 70,000 units in the next 12-18 months, including exports. What Tata Motors really wanted was to optimize products globally. Mission brings together the goals of the company, the social role and external objectives of the organization. The second aspect is the ability to react to internal events without looking at level, department, function and output. A structure of organization which is rigid and controlled tightly. These are distinct models for looking at organizational culture. Mission: Mission defines a long term direction for the organization. *You can also browse our support articles here >. In phase 3, the company also focused on inorganic. Mr. Guenter Butschek. Tata Group entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany. Phase 2 also involved setting up a new sales planning process, tightening credit regulations, improving the liquidity and profitability of dealers, rethinking customer satisfaction levels, and expanding the range of distribution network. Tata Nano has installed commensurate features that meet the required minimum safety standards. By horizontal analysis, cooperation and compatibility focus on internal dynamics of the organization, while adaptability and mission in the external environment. The passenger car business of Tata Motors has also received the Certificate of Approval for its quality management system for compliance with ISO/TS 16949:2002. Decisions are relatively minor and often managers at a lower-level do not want to have a say in the decision-making process. Also, when effective implementation of company strategies is dependent on the capacity of mangers to have a say in the decision-making process. Mr. Ravindra Kumar G.P. The third factor is the ability to organize and rearrange process and behavioral structures to help the firm to adapt to new situations. Tata Motors has a relatively flat structure, thus it facilitates easy interaction between the different levels in the organization. Training program to orient the employee before the change. Tata Motors has adopted a new, flat organisational structure, claim industry sources. These called for major cut down in variable costs, diced costs and interest cost. A support structure to ensure that employees take change easily and get adequate support from the management. This stage implies the acceptance of the new processes. This is extremely critical in building a culture that is positive and productive. Adaptability: Adaptability refers to the organization’s capacity to make the demands of the market practical. Tata Motors follows a code of conduct that helps in deciding on and assigning responsibilities to promote group working. Constancy refers to the values and systems which contribute to a strong culture. The technological factors in the PESTLE Analysis of Tata Motors are mentioned below: To receive new advances Tata Motors possesses TATA innovations ltd which aides overhauling of structure and innovation of Tata engines. This was going to be a huge challenge as the company had been till then operating in seller’s market and used a cost-plus approach to pricing. The new flat organisation, which eliminates layers of middle management and is internally called OE or Organisation … Tata Motors Limited (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM) is an Indian multinational automotive corporation headquartered in Mumbai, India. Phase one looked to stop the damage. Change becomes necessary when there is a gap between present outcomes and desired results. Tata Motors 7ps. Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing industry which happened in 2001. The workforce attached to their work and that translates into better performance. Formulation of a clear strategic vision: An organization must have a clear vision of the new strategy, values and attitude to direct and ensure an effective cultural change. Activities and strategies are identified in accordance with the desired position that an organization aspires to. Some job losses were envisaged as part of changes, but … The question that comes up is: Has the company’s brand imaging as a producer of commercial and low-cost passenger cars isolated it from the lucrative luxury segment in the emerging Indian economy. Also, this structure is not advisable when a major portion of the workforce is highly skilled professionals. Published: 1st Jan 1970 in That the turnaround process has been successful is evident in the fact that Tata Motors ranks as the fifth largest manufacturer of medium and heavy trucks in the world. All the departments ents of TATA Motors are interconnected with intra networking system, as well as all the divisions are connected with internetworking system. The Denison model divides the organizational culture into four parts based on two axes: the degree of focus and degree of stability. Most countries because of the impact of the financial crisis, leading to a sharp slowdown in consumer’s vehicle demand. One of the disadvantages has been that the company’s passenger car products are dependent on 3rd and 4th generation platforms. to give you a better experience. The environment becomes static and complex. Mechanistic organizational structures are advantageous in highly complex environments where the tasks are interrelated and complex. CEO and Managing Director. The organization also went in for e-sourcing, and this has reaped positive results. The product features have excluded radio, air conditioning, power steering. In phase two, the focus clearly was on boosting product quality and upgrading product features. 2.2.2 Human resource management We're here to answer any questions you have about our services. These include taking note of customer behavior and competitor actions. In presenting the world’s cheapest car, Tata Motors has overcome conventions and challenges within the industry. Information and profiles of the Chairman Emeritus, Executive Chairman, Board of Directors and Senior Leadership at Tata Sons. The next question that crops up for the owner of a Tata Nano is that does owning the car yield significant savings and benefits in the long run. In the case of Tata Motors, the organization has understood the importance of interactions between employers and workers. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Every employee specializes in a specific task and consequently makes only a small contribution to the company’s final output. The process of making products more competitive also entailed working on developing new products for the future market. Tata has brought down the overall cost by coming up with innovative and practical ways. Tata Motors concentrates on most customers’ needs, that means, Tata Motors is going to produce more products to satisfy low and middle classes’ needs, such as providing low price products. This success story of Tata Motors can be entirely attributed to the timely change adopted by the Tatas and the then M.D Ravi Kant who led the change. Ratan N Tata, Chairman Emeritus, was the Executive Chairman of Tata Sons, one of the two promoter holding companies of the Tata group, from 1991 till his retirement on December 28, 2012. The relationship between the Board, the Committees and the senior management functions is illustrated below: Being a global player, Tata Motors has ensured that its corporate governance practices are compatible with the international standards. The 2008 financial crisis began in the American subprime mortgage crisis, eventually evolved into a global financial crisis. The key was to recognize a comprehensive plan to improve Tata Motors’s position in the market. Free resources to assist you with your university studies! Tata Motors new launches like Aria and the new 2011 Safari to regain its lost market share. It also has in place a program of intensive management development to ensure a good leadership for the future. The company also has significant stakes in former Soviet Republics, the Middle East South Africa, South Asia and Turkey. Natarajan Chandrasekaran is Chairman of the Board at Tata Sons, the holding company and promoter of all Tata Group companies. The average Indian dream of owning and driving a car will become a realistic one with Tata Nano. Effective infrastructure management can allow Tata Motors Ltd to optimise the value of the whole value chain. Nano is indeed an affordable middle class family car. Modify the organization to support organizational change: Select and socialize newcomers and terminate deviants: A way to incorporate culture is to connect it to membership and adaptability. These surging energy costs will also have to be factored in by the owners of Nano along with the cost of replacement parts and service maintenance for the car. President - Infrastructure, Defence & Aerospace, Company Secretary, Tata Sons & Group Corporate Secretary, Chief Economist & Head of Policy Advocacy. Tata Motors has formulated a strategy for the next phase of expansion. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility vehicle based on the Tata Mobile platform. The emphasis is on improving technical processes and it is the senior level managers who decide how the tasks are to be accomplished. In addition, there is also uncertainty over the vehicle’s reliability, durability and longevity of the component parts. They add that the new Managing Director, Guenter Butscheck, has initiated this change to foster faster and effective decision-making, and to have a prime customer focus. Audit Committee. As Tata motors is having relatively flat structure, it helps them in easy interaction between various level in structure which improves knowledge & ideas sharing within organization. Tata Motors boss Guenter Butschek. Encouraging communication and interaction between management and employees at all levels. By using our website you agree to our policies. MUMBAI: Tata Motors NSE 6.20 % has rolled out a new organisational structure for its standalone entity, as new Managing Director Guenter Butscheck seeks to engineer a turnaround at the automaker through faster and effective decision-making and sharper customer focus. The first aspect is called the ability of realization and reacting to the external environment. Tata Motors has bought out Jaguar and Land Rover brands. Thereafter, as part of the transformational strategy, international diversification was the next logical step. This is a crucial indicator of the chances of the company’s successful transition. Tata Motors aims to target this aspiration beyond Indian market. Organizational structure of Tata Motors: The structure of an organization has to do with the organizational climate along with knowledge management. Cost reduction was on the cards. Petrol prices have crossed the US$100 mark with no signs of coming down in the near future. Tata Nanos, the latest offering by Tata Motors has been called the ‘people’s car’. Career opportunities and incentives to motivate the workforce. Tata has very strong employee Drastic action was required. Participation: Participation facilitates problem solving, goal setting and innovation. The Nano is a wonder of a product with economical and mechanical simplification. Constancy in the firm in developed by a coordination between the employers and the employees. The second phase looked at consolidating the company’s position in India, and the third phase would look at global markets and international expansion. Best Learning Organization of Asia (2011-12), Business Today’s Best Companies to Work for Award (2017), and T3 Awards for Make in India (2015) to name but a few. Feedback: This involves the awareness at the individual level, group level and organizational work dynamics. A structure which is highly flexible and ready to adapt to changes. What this has done is that Tata and Fiat has enhanced the terms of production and exchange of knowledge. Confrontation: A confrontation brings to the surface differences in beliefs, values, and norms and thus facilitates a negotiation. An example would be professional consulting forms. Gathering and sharing knowledge is another way. Involvement includes commitment among the employees. This way Tata Motors can continue to exchange talent and expertise. The new flat organisation, which eliminates layers of middle management and is internally called OE or … What follows is an analysis of this newest offering by Tata Motors which promises economic and social mobility for the masses. In the Indian market, Tata Motors ranks second in the passenger vehicles segment. The company is Tata Motors and it was the M.D. ORGANIZATIONAL STRUCTURE Tata Motors has a Matrix Organizational Structure with both heads of functions (Human Resources head, Marketing head, Chief Financial Officer) as well as heads of vehicle divisions (Passenger Vehicles Head, Commercial Vehicles Head, Advanced Engineering Head) forming part of the top management of the company. All work is written to order. VAT Registration No: 842417633. Tata Motors was founded in 1945, as a locomotive manufacturer. © 2019-2022 Tata Sons Private Limited. What has been learned is now been practiced. Strategy analysis to ensure that the employee understands their role in the organization. The structure of an organization has to do with the organizational climate along with knowledge management. That the turnaround procedure has been successful is apparent in the fact that Tata Motors ranks as the 5th largest maker of medium and heavy trucks in the universe. The structure becomes informal and voluntary instead of being formal and forced. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. There features are essentially functional in nature. Process 3. We are in the process of setting up a plant in each of Singur in West Bengal and Dharwad in Karnataka. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Yet, the company has not been able to get a steady hold in the luxury car segment in the domestic Indian market. Organizational Structure. These weight reduction measures have brought the weight of Tata Nano to about 592 Kg. One potential market has been Thailand which is a major automobile manufacturing hub in the ASEAN region. Nano has achieved a breakthrough in frugal engineering where innovation is accompanied by cost savings and sheer ingenuity. Tata Motor Case 2 Tata Motors Describe the economic characteristics of the global motor vehicle industry. De Caluwe & Vermaak (2004. The company is Tata Motors and it was the M.D. A recovery strategy was planned upon and the path towards a better future was chalked out in three phases-each of which would last two years. The first phase aimed to stem the bleeding and Tata Motors wanted to fully utilize information technology to drive business goals and reduce cost. FONTS Organisational culture of Tata Motors TATA MOTORS Tata has a very strong culture giving much importance to ethics and moral values. Change Management in Tata Motors. Management. The instrument panel consists of only a speedometer, odometer, and fuel gauge similar to that of a two-wheeler. The purpose of this project is to understand the working capital management of Tata Motors Limited. Registered Data Controller No: Z1821391. This process of practice involves the contrasting emotions of confusion and hope, overload and discovery, despair and excitement. Title Slide of Study on organizational structure and leadership style of tata motors Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Awareness of changing socio-cultural environment: One must be aware of the processes that influence and shape one’s behavior. phase 3 then concentrated on looking towards international markets. It turned out that the manual nature of the review procedures of such a huge structure was getting extremely difficult to implement and consuming valuable amount of time. The organizational chart of Tata Motors displays its 153 main executives including Guenter Butschek, Pathamadai Balaji and Ravindra Kumar × We use cookies to provide a better service. Tata Motors Ltd can control the infrastructure activities (or commonly called overhead costs) to strengthen the competitive positioning in the market. The next phase, i.e. Involvement is realized when employees feel responsible for the organization. President & Chief Purchasing Officer. Phase 1 aimed at building up a system of market pricing and to decrease the break even point. Mechanistic organizational structure tends to be very rigid and static which slows it down and resists adaptation to change in environmental situations. Another innovation has been the placement of the engine at the back of the car and a front space for luggage. Education: Educational activities aim at upgrading knowledge and concepts, beliefs, attitudes and skills. By continuing your navigation, you consent to their use. The rear tail glass is fixed to the car’s body and tubeless tires ensure safety too. An awareness of the situation so that the employees can adapt successfully toe organizational changes and whole heartedly accept change. FORE SCHOOL OF MANAGEMENT CORPORATE FINANCE Capital Structure in TATA Motors Course: PGDM Capital Structure in TATA Motors Corporate Finance ACKNOWLEDGEMENT The preparation of this project report was a multi-staged process and each stage involved contributions from various individuals and resources. Mechanistic structure is also not suitable for turbulent or highly competitive markets such as that of the telecommunication market segment. Organic management structures are applicable when the work environment is highly uncertain not stable or subject to very rapid changes in market conditions. This offer is a viable one for Nano. Company Registration No: 4964706. The 5 billion rupee loss in 2001 triggered off a rethinking within the organization. Increased interaction and communication: Encouraging interaction leads to changes in attitude and behavior. In the case of Tata Motors, the organization has understood the importance of interactions between employers and workers. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Model Culture change at the highest level: It is important to ensure and show that the management force is in favor of the change. Organizational structure of Tata Motors: The structure of an organization has to do with the organizational climate along with knowledge management. 2001 witnessed one of the most marked turnarounds for an Indian automobile company in the history of Indian automobile manufacturing on market. Looking deep to the economical macro environment may help Tata Motors in price setting, demand, cost, and decisional making in the company. This can be done through the behavior of the management team to symbolize the kind of values and attitudes it desires. No plagiarism, guaranteed! Display Top-management commitment: In order to effectively facilitate a cultural change, the top level of the management must show commitment to change. For instance, the Fiat Polio Style was launched by Tata Motors in 2007, and the two firms have plans to develop a vehicle for the central and South American market segment. One of the article talks about product customization & organization. The cyclical nature of domestic sales had to be taken into account first. The transformational strategy which looked at international markets has been to keep local managers at new acquisitions and to transfer a few senior managers from the Indian market to the newer markets. One of the dynastic family-owned conglomerates in the world is the Tata group of India. Nano uses a 623 cc two cylinder petrol engine which is comparatively smaller and lighter than other car engines. Study for free with our range of university lectures! It has a sheet-metal body with strong passenger compartment equipped with safety features such as crumple 3 ones, instruction resistant doors, seat belts, strong seats and anchorages. Looking for a flexible role? From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. The organization is focusing on new products and acquisition. With the process in progress, the genuine problem revealed itself. Tata Motors has been able to envision the basic tenets of efficiency, while building up Nano, The Company has achieved this by including only the necessary items and excluding not so relevant ones. 6.5 lakh to … However, Fiat, Jaguar and Land Rover do not carry such inhibitions. Corporate and Financing structure Tata Motors Ltd (India) 100 % TML Holdings PTE Ltd (Singapore) Jaguar Land Rover Automotive plc 100 % Jaguar Land Rover Limited Land Rover 100 % National sales companies Jaguar Land Rover North America LLC and Jaguar Land Rover Exports Ltd Jaguar Land Rover China (NSC) 100 % 100 % 100 % Chery Jaguar Land Kurt learns has recommended three phases in bringing in change: Older ideals and systems must be either upgraded or eliminated to make way for newer ones. Matched to your needs the Nano is a wonder of a student essay.Click... And hope, overload and discovery, despair and excitement mechanical simplification process of setting up a in. Tata companies also extend social welfare activities to communities around their industrial units structures to help firm... A central point for consolidating and harmonizing the organizational climate along with knowledge.! Refers to the external environment management level employees organizational structures are advantageous in highly complex environments where the are. Organizational change in culture, Tata Motors accessibility of top management to surface! Project, an initiative to build green cars which are fuel and cost efficient is Chairman of the ’... Talent and expertise every price point right from Rs a speedometer, odometer, and this has is. Like the running cost of the whole value chain is not a recent phenomenon, …! And competitor actions for cost-reduction such as bench marking rivals on boosting product quality and product. Group companies construction or daily operations at MTR are fuel and cost efficient Motors Limited and instead. 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