Post on 29-May-2018
8/9/2019 Study on Organizational Structure and Leadership Style of TATA Motors
1/30
NITIE Mumbai
Study on Or
Leadership
Suhas Jamble
Sunit Mhasade
anizational Structure
tyle of TATA Motors
Team Members
102| Balu Sukate 103| Sumit Guha 1
105| Sumeet Suman 106| Sunny Tonk
and
4
107
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INTRODUCTION
PRODUCTS AND SERVICES
ARTICLE REVIEWS
ORGANISATIONAL STRUCT
1. How organizational cli
interaction perspectiv
2. The relationship betw
CorneliaDroge, & Ger
3. Knowledge sharing in i
structure dimensions (
4. An holistic approach t
(Doherty, Champion,
5. Theories of organizati
change (Damanpour &
REVIEW OF LEADERSHIP ST
1. How Much Time Shoul
2. Organization develop
RAILWAYS (Barlow, 19
3. Leadership Types and
4. A dynamic theory of le
dynamic theory of lea
5. Transformational vers
Patterson, (2004,Vol. 2
Current organizational Structur
COMPARISON & CONCLUSION
TATA Motors with Organisa
TATA Motors with Leadersh
ANNEXURE
1. Correspondence with
2. Interview Questionnai
LOG OF VISIT
BIBLIOGRAPHY
i
2
CONTENTS
URE LITERATURE
ate and structure affect knowledge manageme
. (Chen & Huang, 2007)
en product customization and organizational st
ain, 1999)
nter unit co- operative episodes: The impact of
Willen & Buelens, 2009)
understanding the changing nature of organiza
Leitao Wang, 2, 2010)
nal structure and innovation adoption: the role
Gopalakrishnan, 1998)
YLE LITERATURE
d CEOs Devote to Customers? (Quelch, 2008)
ent and leadership: R.B. Reid and the dynamics
96)
tyles - Overview of Skills (Hick)
adership Development (Mostovicz, Kakabadse,
ership developement, Vol. 30 No. 6, 2009)
s servant leadership: a difference in leader focu
5 No. 4))
of TATA Motors
tion Structure
ip Style
Interviewee
re
3
5
7
7
nt- The social
7
ucture (Vickery,
8
rganizational
9
ional structure
10
of environmental
11
13
13
of success- BRITISH
14
15
Kakabadse, A
17
s (Stone, Russell, &
18
20
21
21
22
24
24
26
29
30
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INTRODUCTION
Tata Motors Ltd has two b
Commercial Vehicles Busine
units are given below
Vision
Best in the manner in which
systems & ethics.
MissionTo become world class auto
Tata Motors to become a wo
Company Overview
Tata Motors is Indias larges
vehicles in each segment, a
products in the compact, m
worlds fourth largest truckconsolidated revenues of Rs.
TATA Motors is one of the ol
first model on roads of India
manufacturing unit in India i
Lucknow (Uttar Pradesh), Pa
is establishing a new plant at
Indian roads.
TATA Motors, the first compa
Stock Exchange in Septemb
company having operations i
In year 2008, it acquires Jag
launched Nano, peoples car
Venture in India in 2007. Tat
bus manufacturing Compan
Company, South Korea's seco
i
3
siness units the Passenger Car Busines
s Unit (CVBU). The vision and mission of
we operate, best in product we deliver & bes
otive engineering & product development c
ld class automotive company.
t automobile company. It is the leader by
d among the top three in passenger veh
idsize car and utility vehicle segments. T
manufacturer and the second largest bus92,519 crores (USD 20 billion) in 2009-10.
est automobile companies established in 1
in 1954. Now, it is present all over the coun
spread across Jamshedpur (Jharkhand), P
tnagar (Uttarakhand) and Dharwad (Karnat
Sanand (Gujarat). Over 5.9 million Tata vehi
ny from India's engineering sector to be list
r 2004. It has also emerged as an intern
the UK, South Korea, Thailand & Spain.
uar Land Rover from Ford Motors & in th
. Fiat Group & Tata Motors announce esta
Motors acquires 21% stake in Hispano Ca
y. In 2004, it acquired the Daewoo Co
nd largest truck maker.
s Unit (PCBU) and
both the business
t in our value
entre and enable
far in commercial
icles with winning
e company is the
manufacturer with
945 & delivered its
try. The company's
ne (Maharashtra),
aka). The company
cles are running on
ed in the New York
tional automobile
e same year TATA
blishment of Joint
rocera SA, Spanish
mmercial Vehicles
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The companys manufacturi
Pantnagar (Uttarakhand).
Lucknow, Dharwad in India,
first indigenously Light Comm
Tata Indica, India's first fully
Indica became India's largest
segment by launching the T
company is establishing two
companys dealership, sales
communication points.
The People
Tata Motors is having emplo
their potential through inno
provide employees with dyna
round potential development
and external training. The
programmes.
i
4
ng base is spread across Jamshedpur, P
lso the company has R&D centres in
in South Korea, Spain & the UK. TATA Mo
ercial Vehicle, India's first Sports Utility Vehi
indigenous passenger car. Within two ye
selling car in its segment. In 2005, Tata Mo
ata Ace, India's first indigenously develop
new plants at Dharwad (Karnataka) and Sa
, services and spare parts network co
ee base of 24,165. The company helps its e
ative HR practices. The companys goal i
mic career paths in congruence with corpo
and performance improvement is ensured
company has won several awards reco
ne, Lucknow and
une, Jamshedpur,
ors developed the
cle & in 1998, the
rs of launch, Tata
tors created a new
ed mini-truck. The
and (Gujarat). The
prises over 3500
ployees to realize
to empower and
ate objectives. All-
y regular in-house
nizing its training
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PRODUCTS AND SERVI
Passenger Cars:The range comprises
Marina (station-wagon)
markets Fiat branded c
Utility Vehicles:
A range comprising Tat
Pick-up), and Tata Sum
Carriers).
Commercial Vehicles for goo
Small Commercial Veh Light Commercial Veh
Commercial Vehicles for pass
Tata and Tata Marcoonwards.
Multi-purpose vehiclefor urban and rural tra
Subsidiaries Companies
These are various sub
Jaguar
Tata M Tata Da Hispan Tata M Telcon Tata M Tata Te TAL Ma HV Tra Tata Au TML Di Tata M
i
5
CES
ata Indica (compact car), Tata Indigo (s
and Tata Nano (small car). The company a
rs in India.
a Aria (Crossover); Tata Safari (SUV), Tata
o Grande MK II, Tata Sumo range and Tat
s transportation
icles: Tata Ace, Indias first indigenous mini-
icles: Pick-ups and trucks ranging from 2T G
enger transportation
polo range of light, medium and heavy b
s Tata Magic, Tata Magic Iris, Tata Winger
nsportation.
idiaries of Tata Motors.
Land Rover
arcopolo Motorsewoo
Carrocera
otors (Thailand)
otors European Technical Centre
chnologies
nufacturing Solutions
smission and HV Axles
tocomp
tribution Co.
otor Finance
dan), Tata Indigo
lso distributes and
enon XT (Lifestyle
a Venture (People
ruck.
W to 7.5T GVW.
ses from 2T GVW
and Tata Venture
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Product Profile
Passenger Cars U
Indica
Indigo
Nano
Fiat
i
6
tility Vehicle Trucks
Sumo
Safari
Xenon
Small Commercial
trucks (Ace)
Light Commercial
trucks (TL4X4)
Intermediate Commerci
trucks (Turbo Truck)
Prima truck
Construck
Commercial
passengerVehicles
Bus
Winger
Magical
Medium & Heavy
Commercial trucks
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ARTICLE REVIEWS
ORGANISATIONAL STRU
1. How organizational csocial interaction per
Objective:-
The article emphasises on
structure on knowledge
regression analysis is use
Key Variables:
Organisational climate,
management.
Findings:-
Firstly, the author has ad
effect of social interacti
knowledge management.
relationship between
Organizational climate pl
influencing their percepti
strong innovative and coo
is acceptable or desirable
knowledge. Conversely, i
inexistent, employees wo
organizational climate, th
likely to affect the social
author expects that an
atmosphere for strengthe
The author also states th
between independent va
and dependent variable
social interaction medi
management and Social i
knowledge management.
regression method.
i
7
CTURE LITERATURE
limate and structure affect knowledge man
spective.(Chen & Huang, 2007)
the study to examine the effects of organiz
management from the social interaction
to test the hypotheses in a sample of 146 c
organisational structure, social intera
opted the process-oriented view to investi
on on the relationship between organiza
Secondly, he examines how social inter
organizational structure and knowled
ays an essential role in shaping employe
n of knowledge management. If the organ
perative climate, employees would receive
for them to build up interaction networks t
the innovative and cooperative climate is
uld perceive a lower need to interact with
e author also emphasises on organizational
interaction among organizational membe
innovative and cooperative climate wou
ning social interaction among organizational
importance of mediating effect which giv
riables of organizational climate and orga
f knowledge management and states two
tes the effect of organizational clima
nteraction mediates the effect of organiza
These hypotheses have been explained
agement- The
ational climate and
perspective. The
ases.
ction, knowledge
ate the mediating
ional climate and
action affects the
ge management.
s behaviours and
ization possesses a
clear signal that it
o share and gather
relatively weak or
olleagues. Besides
structure which is
s. As a result, the
ld provide a vital
members.
s the relationships
izational structure
ypothesis that the
e on knowledge
ional structure on
y the author with
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Conclusion:-
1. First, the smaller sWe have done th
not a significant is
generate the mindependent vari
noted as a potenti
2. The study focusestructure. There
Future research
organizational soci
3. The findings suggto social interacti
decentralized and
the social interacti
4. These empirical esocial interaction
organizational stru
2. The relationship bet(Vickery, CorneliaDr
Objective:-
This research examines
customization strategy
managers implementatio
Key Variables:
Product customisation, d
Findings:-
Four aspects of organiz
(encompassing the meas
and three key dimensions
control. A contingency a
moderating effects of en
customization associates
control. Subgroup analysi
moderated by size or envi
i
8
ample size of this study raised the non-res
t-statistics and w2 test to verify that the n
sue. Also, the sample size in our study is ba
aningful results as the regression mobles. Accordingly, the smaller sample siz
al limitation in this study.
s only on two organizational context incl
re other organizational constructs that
may explore how these different const
al interaction and knowledge management.
st that innovative and cooperative climate i
n. When the organizational structure is les
integrated then the social interaction is mo
on is positively related to knowledge manag
idences support the process-oriented vie
plays the mediating role between orga
cture, and knowledge management.
een product customization and organizati
ge, & Germain, 1999)
the relationship between the extent of
nd organizational structure, since struc
n of strategy.
centralisation, span of control
tional structure are considered. They
urement of competitive, internal, and sup
of organizational design: decentralization, l
pproach is taken by simultaneously exami
ironmental uncertainty and firm size. LISRE
with more formal control, fewer layers, and
s revealed that these main effects are, for
ronmental uncertainty.
onse bias concern.
n-response bias is
rely satisfactory to
els include 812of the survey is
uding climate and
arrant discussion.
ucts affect intra-
s positively related
s formalized, more
re favourable. Also
ement.
and indicate that
nizational climate,
onal structure
use of a product
ture is a key to
re formal control
plier performance)
ayers, and spans of
ing the main and
L results show that
narrower spans of
the most part, not
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The main effects of size
manufacturers are mor
centralized, and utilize m
in more dynamic environ
control.
Conclusion:-
Managers should thus u
themselves with size an
organizational structure t
3. Knowledge sharingorganizational stru
Objective:-
The objective of article is
altered to be more adapt
relationship between coo
the concept of knowledge
Key Variables:-
Knowledge sharing, coord
Findings:-
Studying effective inter-un
organizational structure
knowledge sharing takes
important classic orga
centralization, formalizati
knowledge sharing. These
the differentiationintegr
organization theory literaton the kind of coordinati
structure dimensions (cent
Formalization indicates th
organization are determin
procedures and instructi
teams, mutual adjustm
decentralized) allows flexi
hoc communication and in
i
9
on structure were consistent with previo
formalized (in terms of performance
re layers and wider spans of control. Manu
ents are more decentralized, but have m
nderstand that, for the most part, they
d environmental uncertainty when selecti
match the desired level of product custo
in inter unit co- operative episodes: Th
ture dimensions (Willen & Buelens, 20
how the classic organizational structure di
ed to organizational knowledge sharing. Th
rdination, centralization, formalization, and
sharing has been studied.
ination, formalisation, specialization
it knowledge sharing in organizations requir
influences and shapes the cooperative
place. To obtain this insight, we revisit
nizational structure dimensions, nam
n, and specialization; and assess their i
classic organizational structure dimension
tion balance, which has been the major f
re. The impact of coordination on knowledn mechanisms used, and this is closely re
ralization, formalization and specialization).
extent to which the rights andduties of ted and the extent to which these are writ
ns. Decentralised, i.e. horizontal-coordin
nt, networking, and integration roles
ble coordination during task execution an
formation.
s research: larger
controls) and de-
acturers operating
re rigorous formal
need not concern
ng an appropriate
ization
e impact of
09)
ensions should be
e behaviour of the
specialization, with
es insight into how
pisodes in which
four of the most
ely coordination,
pact on inter-unit
are underpinning
ocus in the classic
e sharing dependslated to the other
e members of the
ten down in rules,
tion consisting of
(less formal and
can deal with ad
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Informal coordination (i
organization structure lit
literature, which also st
coordination, i.e. any fo
organization that is not int
Conclusion:-
Empirical data was coll
findings indicated that
centralization or the
Interdependency and kno
interacting effect on the
comparison between the
in which the coordinatio
knowledge sharing. By
organization structure th
4. An holistic approacorganizational stru
Objective:-
This article discusses aboof IT on organizational str
a well defined technology
Key Variables:-
Standardisation, formalis
Findings:-
It mostly influences the
working practices and pro
the degree of horizontal i
get an overall view of the
ERP is typically acquired i
support all major busin
distribution, sales, financ
& standardize their busi
business units.
i
10
formal and decentralized) was not topi
erature but received thorough attentio
ressed the relationship with knowledge
rm of personal contact between people
ended or imposed by management.
cted by means of a questionnaire in tw
expected relationships, such as the n
ositive effect of lower formalization,
wledge complexity, caused by specialization
relationship between coordination and kn
two companies revealed that the organizati
n is applied influences the potential of th
bringing new issues such as knowledge
ory, this theory might regain some of its los
to understanding the changing natur
ture (Doherty, Champion, & Leitao Wa
t one of the most debatable & important tucture & mostly about Enterprise Resource
with low interpretive flexibility.
tion, Entrepreneur Resource planning
locus of decision making, standardization
cedures. But it does not consider its impact
tegration, or the number of hierarchical la
impact of IT on organizational structure.
the form of packaged software, with integ
ess functions across an organization, su
& HR management. It encourages organiza
ness processes across the organization
cal in the classic
in the network
sharing. Informal
and units in the
o companies. Our
egative effect of
were not found.
, had an important
wledge sharing. A
on-specific context
is coordination for
management into
value.
of
g, 2, 2010)
pic i.e. importancePlanning (ERP). It is
& formalization of
on span of control,
ers. It is difficult to
ated modules that
ch as production,
tions to streamline
within individual
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Strategy is also having s
quantitative analyses sug
ERP benefits & strategi
recognize impact of ERP.
Large-scale & successful
orientation, & then there
decision-making will be le
working practices will bec
Results of many previou
complex & problematic
structure.
Conclusion:-1. This study gives
benefits in circum
well aligned, wit
prepared to mak
better align it with
2. This article doesmostly says that, i
5. Theories of organizenvironmental cha
Objective:-
This article discuss abou
adaption & their frame
focuses on only one dim
But in reality these dime
theories produce inconsis
Key Variables:-
Innovation adaptation, en
Findings:-
In this article, authors al
adopt it by organizations
There are three structural
1. Dual core theorinnovations
i
11
ignificant impact on organizations struct
gest that the configuration of an organizati
orientation. Author has also done qua
ERP system is deployed in an organization
are a most chances that organization will
ss centralized, level of horizontal integratio
ome more standardized.
s studies say that, an ERP implementatio
undertaking. ERP has dominant role in re
two valid interpretations that ERP system
stances in which the host organizations s
the structural models & management t
any significant changes to their organiza
ERP.
ot give any particular answer to this deb
is successful ERP adoption that is driving st
ational structure and innovation adopt
ge (Damanpour & Gopalakrishnan, 19
t various theories of Organizational struc
ork within which they are applied. Mos
nsion i.e. type, radical-ness, or stage-of in
sions are overlaps on each other & for the
ent results.
vironmental change,
o discussed about innovations, its adoptio
its sources like imitative, acquisitive & inc
theories of innovation:
: It distinguishes between administrati
re.Results of the
n is influenced by
ntitative study to
with a Prospector
ecome flatter, the
will increase & its
n is an extremely
shaping corporate
s will only deliver
tructure is already
eams will only be
ions structure, to
table topic, but it
uctural change.
on: the role of
8)
ture & innovation
tly these theories
ovation at a time.
same reason these
n, rate & speed to
bative.
ve and technical
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2. The theory of inn(routine) & reorie
3. The ambidextrousto a decision to
continued use of a
Article also tells that orga
environments and its di
predictability. So, the tw
predictable vs. Unpredi
predictable (EC1), stable
unstable and unpredictab
bring together element
innovation adoption.
Conclusion:-
1. The article gives complconditions under whic
organizational innovation
in each environmental co
that existed among the th
2. This article is having somexternal environment &
adoption relationships, su
i
12
vation radicalness: It discusses about two a
tation.
theory: It discusses about the pre-adoption
adopt & the activities that facilitate im
n innovation
nizations is open systems seek a state of eq
ensions are extent of stability and exten
o sets of values for each dimension are s
table. Four environmental sets of cond
and unpredictable (EC2), unstable and pre
le (EC4). A way to make a framework for ab
s of environmental change, organizatio
ex but precise theories by identifying t
h certain structural characteristics fac
. The framework identifies dimensions of in
ndition.This paper helps to resolve some o
ree prominent theories of organizational in
limitations like it is complex in construct. It
not on other variables that impact st
ch as organizational technology, size and o
pects i.e. variation
activities that lead
plementation and
ilibrium with their
t of turbulence or
table vs. unstable;
itions: stable and
ictable (EC3), and
ve conditions is to
al structure and
he environmental
ilitate or hinder
novation adoption
f the discrepancies
ovation.
mostly focuses on
uctureinnovation
nership.
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REVIEW OF LEADERSHI
1.How Much Time ShouldObjective:-
Customers are the sourc
relationships with new an
into stock market valuatio
need marketing skills mor
lip service to respecting
wide and an inch deep.
Key Variables:-
Customer relationships, C
Findings:-
"THE CUSTOMER IS GOD
quote it becomes even
few of the CEOs of FORTU
and sales. Every corpora
needs; actual customer
customer-oriented, execu
their homes, on job sites,
A good CEO knows how t
they should consider follo
CEO should spearheathat are leading indic
be off-the-shelf stand
customers on their h
CEOs must ensure anThis requires the ineither through busin
formal customer rese
CEO has to developmean appointing a hi
long-term infusion
throughout the orga
general managers co
Conclusion:-
Every CEO should spend
challenges i.e. human t
customers is simply not e
i
13
STYLE LITERATURE
CEOs Devote to Customers? (Quelch, 2
e of all cash flow. Organic growth depe
d existing customers. And future growth p
ns of companies. The current economic do
than ever. But while every corporate missi
ustomer needs, actual customer expertise
onsumer behavior, General leadership, cust
AND THE MARKET DECIDES EVERYTHING"
ore pivotal in situations of economic crisi
NE-500 companies have come up the ranks
e mission statement pays lip service to re
expertise is typically a mile wide and an
tives must get out and meet customers on t
in their offices.
balance time spent on the outside versus t
wing three things
d the identification of three or four custo
ators of sales or profit performance. These
bys such as customer satisfaction. They mus
me turfin their homes, on job sites, in the
adequate pipeline of new product and ma
estment in uncovering customer insightsess leaders regularly going into the field
rch studies.
arketing talent throughout the company.
gh-profile rainmaker as chief marketing offi
of customer centricity and marketing
ization. Over time, this should mean a hi
ing up through the marketing ranks.
t least 10 percent of his or her time taking
ouch, customer relationship and . Runni
nough.
08)
ds on developing
ospects are baked
nturn, companies
on statement pays
is typically a mile
mer satisfaction
is very well known
. But as seen very
through marketing
specting customer
inch deep. To be
heir home turfin
he inside. However
er health metrics
metrics should not
t get out and meet
ir offices.
rket opportunities.
discussed above,nd through more
his cannot merely
cer. It requires the
trategy capability
her percentage of
care of these three
g around visiting
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2.Organization developmsuccess- BRITISH RAIL
Objective:-
To extract various qualitiecomparison of it with lead
Key Variables:-
Leadership capacity, deleg
Findings:-
Reid carried through argu
processes of change an
experienced in the past 40
Growth in BRs productivit
and BR ended that decade
rail networks in Western
and air competition and g
precipitous loss of BRs bu
where traffic could be han
Beeching had sought to i
greatest competitive adva
Although his plans remai
agenda for regenerative c
politically aware as well as
within the railways orga
years, Reid had delivered
his predecessors had been
As a professional, he knew
needed to be done, and h
He also knew how to oper
He induced change built
clear vision and was d
achievable goals, and ex
clear mandates to others
most effective. As a resul
professional managers
transformation he brought
i
14
ent and leadership: R.B. Reid and the d
AYS(Barlow, 1996)
s of leadership style from Reids tenure inrship trends in TATA MOTORS.
ation of authority, commitment
bly one of the most fundamental and pote
d organizational development that Briti
years.
y and financial performance was among th
s one of the most productive and certainly
Europe.BR in before Reid However, the de
rowth in private car ownership had brough
siness than could be redressed merely by cl
dled more economically and effectively by
entify and mobilize the railways distinctiv
tage.
ned largely in abeyance, they neverthele
hange. His (Reid) wide-ranging experience,
professionally experienced, Reid knew how
ization. He also knew what needed to be
roductivity improvements and cost reducti
unable to achieve
the railways and their management intima
ow to get it done: he possessed systemic l
te the levers of power.
on success, rather than to avoid failure. H
cisive and determined in implementing
ected them to be achieved. He delegate
along with discretion to achieve results in
, he created and won the commitment o
and galvanized support within BR as
about.
namics of
ritish railways and
ntially far-reaching
sh Rail (BR) has
fastest in Europe,
he most profitable
elopment of road
t about a far more
osing down routes
road. In a nutshell,
characteristics to
s remained as an
Astute, intelligent,
to get things done
done. Within two
ons on a scale that
ely. He knew what
adership capacity
communicated a
it. He set clear,
authority, giving
ways which were
new coalitions of
a whole for the
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This view was endorsed
disbanded, who summed
change. He created a sens
them with the sectors. T
industry and the businessThere was a real feeling of
Conclusion:-
Wide- ranging experitwo years, Reid had
scale that his predece
A clear vision & keenorganization structur
running down and eregions.
3. Leadership Types aObjective:-
To identify when and whe
relevant to TATA MOTORS
Key Variables:-
Autocratic, Delegative /Fre
Findings:-
Leadership style is crucial
the role ourselves at vario
business, sports, politics,
rapidly changing world an
leaders and you will most
different leadership styles
In 1939 famed psychologis
styles are well established
should not be confused wi
i
15
ecently by a director of one of the sect
p Reids achievement succinctly: Reid reco
e of business purpose.He dissolved the Re
e sector businesses were full of people w
they were in. Reid got them all pulling in tachievement and success.
ence, astute and intelligence and political
elivered productivity improvements and c
sors had been Unable to achieve.
o accomplish it & a clear set of goals helped
ed around identified business sectors an
ventually eliminating BRs structure base
nd Styles - Overview of Skills (Hick)
e these leadership qualities to be used and
.
e Rein, Democratic
o success. We find leadership all around us
us times in our lives. Leadership can be fo
religion and as close as home. Leaders m
meet the challenges it demands. There ar
likely encounter many over the course of ti
and their impact will help you become a mo
t Kurt Lewin identified classic styles of lead
though more specific types have been ident
h managers.
r businesses, now
nised the need for
ions and replaced
o understood the
he same direction.
awareness, within
st reductions on a
him to develop an
d, simultaneously,
on geographical
ow these is
. Each of us will fill
nd in the world of
st respond to the
different types of
e. Understanding
re effective leader.
rship. These three
ified since. Leaders
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Autocratic:
a)What needs to be accothe leader.
b)Allow for quick decisionc) This is a less creative a
control.
d)Use when a group or me)The autocratic style wo
the decision or outcom
Democratic:
a)The leader acts as a gdiscussion.
b)Even though the leaderc) Democratic style can b
range of opinion.
d)People are more comhave a personal stake i
e)This style is mutually beDelegative/Free Rein:
a)Minimal in direction.b)Allow decision-makingc) Works well when the ted)This style works best wiLeaders are always mana
will use the style or a com
crucial to success. We find
at various times in our liv
politics, religion and as cl
world and meet the challe
will most likely encounter
Conclusion:-
Leaders should not be con
reverse is not necessarily t
styles that best fits the sit
i
16
plished, as well as, how and when, is the s
s when time is crucial.
proach. A "Do what you are told" Obedien
mber doesn't have knowledge of the practi
rks best when there is no need for input. In
.
ide. Accepts input and seeks ideas and s
may have the final say the team contributes
e problematic when the final decision is ha
itted when involved in the process of maki
the outcome.
neficial and helps improve people skills.
y the team.
am or a member is more knowledgeable ab
th highly motivated and well trained people.
ers but the reverse is not necessarily the
ination of styles that best fits the situation.
leadership all around us. Each of us will fill
es. Leadership can be found in the world
ose as home. Leaders must respond to th
nges it demands. There are different types
any over the course of time.used with managers. Leaders are always ma
he case. Good leaders will use the style or a
ation.
le responsibility of
and strict form of
ce or procedure.
ut will not change
ggestions through
to the process.
mpered by a wide
ng decisions. They
ut the subject.
case. Good leadersLeadership style is
the role ourselves
f business, sports,
e rapidly changing
of leaders and you
nagers but the
combination of
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4.A dynamic theory of leadynamic theory of leadershi
Objective:-
The paper examines selblocks. It identifies th
developing the psychol
Key Variables:-
Leadership, Leadership
Findings:-
The paper posits that l
type of choice a leader
available from which
leaders worldview, lo
achievement (i.e. the L
that the choices they
worldview. Pursuing t
activities ensures that l
concludes with the pre
the assumption that o
knowledge that this goa
Leadership has examin
past, the present, and t
binary action that divid
according to a higher pr
Conclusion:-
The paper conceptual
according to the followi1. Theta model-2. Lambda modelThus keeping with ei
These choices create
leadership that was
as purely a learne
development proces
always strives to ach
i
17
dership Development(Mostovicz, Kakaba
p developement, Vol. 30 No. 6, 2009)
ected leadership literature through the lensrole of the ideal goal in leadership and
gical aspect of leadership.
development
eadership is a developmental process, whi
makes. While choice implies that two good
o select, one should make choices in ac
king for affiliation (i.e. the Theta worldvi
ambda worldview). Consequently, leaders
make for organisational activities have
e fit between ones worldview and plan
aders continuously improve their ethical be
entation of a dynamic theory of leadership,
ne can only strive toward truly ethical le
l is beyond human capacity.
ed three different phases within the leade
he future. Leadership is about making choi
es options into two sets, the desired and t
inciple or value.
ises that leadership quality develops b
ng two world views:ocially oriented
- Personally oriented
her of the two world view a leader keeps o
memory based on which leader take decisi
historically considered to be either as purel
d behaviour is now known to be a D
s. This means that an Ideal leader does not
ieve ideal ethical behaviour continuously.
se, & Kakabadse, A
of theory building-its importance in
ch is based on the
options are always
ordance with the
w), or looking for
need to recognise
to fit their own
ned organisational
haviour. The paper
which is based on
adership with the
rship timeline: the
es. The choice is a
e undesired ones,
making choices
making choices.
ns for future. Thus
in born quality or
namic leadership
exists but a leader
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This paper puts the
assumption that on
knowledge that this
5. Transformational veRussell, & Patterson,
Objective:-
This article examines tr
what similarities and di
Key Variables:-
Leadership, Transforma
Findings:-
The transformational le
behaviour builds follo
servant leaders focus
objectives is a subordin
primary focus of leader
factor in classifying lea
also looks at the next s
challenges facing empir
occurring in current thi
The primary premise of
on organizational objec
their followers. Transfo
support the vision and
relationships can be for
be shared. Idealized
leadership in which le
emulated by followers
providing meaning a
followers to see the a
demonstrating a com
inspirational motivatio
leadership. Similarly, t
stimulation of employe
i
18
views on dynamic theory of leadership, whi
e can only strive toward truly ethical le
oal is beyond human capacity.
sus servant leadership: a difference in lea
(2004,Vol. 25 No. 4))
nsformational leadership and servant leade
ferences exist between the two leadership
tional leadership, Influence
aders focus is directed toward the organiza
er commitment toward organizational ob
is on the followers, and the achievemen
ate outcome. The extent to which the leade
ship from the organization to the follower i
ers as either transformational or servant l
age of developmental issues in servant lead
ical investigation and measurement, and th
king about the servant leadership approach
the article is that transformational leaders
tives while servant leaders focus more on t
mational leaders transform the personal va
goals of the organization by fostering an e
med and by establishing a climate of trust i
influence is the charismatic element o
ders become role models who are admir
. Transformational leaders inspire and
d challenge to their followers work T
tractive future state, while communicatin
itment to goals and a shared vision. Ideal
n are usually combined to form charis
he Transformational leaders play a vital
s, Individualized consideration,
ch is based on the
adership with the
er focus (Stone,
rship to determine
oncepts.
ion, and his or her
jectives, while the
of organizational
is able to shift the
the distinguishing
eaders. This article
ership, such as the
e changes that are
.
end to focus more
he people who are
lues of followers to
nvironment where
which visions can
transformational
d, respected, and
otivate others by
e leader inspires
expectations and
ized influence and
matic-inspirational
ole in Intellectual
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While servant leadershi
history the concept has
support.Conclusion:-
Both transformational l
of trust, serve as role m
empower followers, te
transformational leade
Rather, they are com
forms of leadership.
concepts. Most impo
organizational objectiv
their followers.
i
19
p is an increasingly popular concept, throug
been systematically undefined and lacking i
eaders and servant leaders are visionaries, g
odels, show consideration for others, deleg
ach, communicate, listen, and influence f
rship and servant leadership are not an
lementary ideologies because they both
onetheless, there are significant points
tantly, transformational leaders tend t
s while servant leaders focus more on th
out much of its
empirical
enerate high levels
te responsibilities,
llowers. Certainly,
ithetical theories.
describe excellent
f variation in the
focus more on
e people who are
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Current organizationa
i
20
l Structure of TATA Motors
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COMPARISON & CONC
TATA Motors with Orga
As per article relating
organizational climate p
held true in case of Tata
& workers, formally &
organization. Also, it he
relatively flat structure,
which improves knowle
One of the article talks
of control & levels inorganizational structur
environmental uncerta
environmental uncertai
the main Tata group h
taken by board of direct
Other paper defines va
sharing. One of the di
employees, their resp
authority matrix which
making powers of an
coordination. In Tata
published monthly for
regular emails/corres
regular basis. The hig
This helps them to ga
level to level.
In todays world of co
the data is to be m
Based on this data
manufacturing, purch
gives the importanc
mostly about Enterp
TATA Motors was not
of the organization.
ease of all these activiAUTO CAD, etc.
i
21
USION
isation Structure
organizational structure & climate with know
lays an important role on employees behaviou
motors. They are having frequent interactions
informally which helps employees to feel
lps in gathering & sharing the knowledge. As T
it helps them in easy interaction between vari
ge & ideas sharing within organization.
bout product customization & organization. It
structure. As Tata motors is also operatese, it is having narrow span of control.
inty with product customization. But for
ty effects product customization is not so clear
s command over Tata motors, but all strategic
ors of Tata motors itself.
rious impacts of organizational structure dime
mensions is formalization & it defines specifi
nsibilities. In Tata motors, they follow Tata
helps them to identify different responsibi
individual both functionally and financially.
motors, they are having newsletters and
each division and are circulated though out
pondence from Chairman, MD and CFO
her level management is always accessible
ther, share & spread the knowledge & ide
puterization all the activities are need to b
intained precisely to take the major man
all the activities of the all department
se, finance, operations, etc can be interlink
of Information Technology on organiza
ise Resource Planning (ERP). During the i
having any efficient software that will moni
owadays, the TATA Motors is using variou
ties like ERP & SAP also various design softw
ledge management,
r. The same concept
ith their employees
ore bounded with
ata motors is having
us level in structure
lso talks about span
with less levels ofrticle also relates
Tata motors, how
. In decentralization,
actions & plans are
sions on knowledge
c role & duties for
code of conduct &
lities and decision
Other dimension is
house magazines
the company. Also
are circulated on
to the lower level.
s very easily from
e computed and all
agement decision.
s like production,
ed. Thus the article
ional structure &
itial years in 90s,
or all the activities
s software like for
are like CATIA, UG,
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This enables TATA
execution, as well a
inventory manageme
supply chain manage
All the departments
system, as well as all
enables the easy and
including the board
various articles, new
deaths, etc periodica
organization all the ti
around organization.
In one paper, it m
organizational struct
innovations, as likely s
models in market and
its chairman Mr. Rata
they launch it in mar
worldwide. Also, ot
indigenously developinnovations creates
responsibility and ent
officers as well as e
project. Due this rea
within stipulated ti
motors is working con
range. Various joint
Jaguar, Land Rover, Fi
organizational structu
TATA Motors with Lead
The group chairman R
a Group strategy thi
businesses. His vision
CEO. As per one of th
ideal leader with ex
assumed to be one
members in 20 differe
i
22
otors to be more efficient in delivery,
in maintaining in-house inventory as w
t systems. The company has become one
ent system due to incorporation of these IT
of TATA Motors are interconnected wit
the divisions are connected with internetw
fast flow of information among the emplo
of directors, vendors, suppliers. The com
letters about the wellbeing of the empl
lly. This keeps all the employees to be
me and gives them the latest updates and
stly focuses on innovations and how it
re and its stability. In Tata motors, the
aid in introduction company has introduced
they became a boom. For example, Tata Na
Tata, to make a car for middle class famili
ket successfully and it creates a blast in a
er models like Tata Ace, these are
d mini-truck & Tata Magic is one of its ownsome kind of spirit to work for orga
husiasm, sense of belongingness towards o
ployees of Tata motors started feeling N
on, Mr. Ratan Tata was able to deliver h
e period. Research and Development d
tinuously on designing and developing new
entures of the company also working for
at, Xenon, etc. These practices help compa
re.
rship Style
atan Tata is responsible for transforming Ta
k-tank and a promoter of new ventures i
of making a truly international company b
e paper there is no such ideal leader rather
erience. Initially his decisions were critici
f the best in the world. He is currently
nt organizations across 23 different industri
payments, order
ll as ware house
of the best in the
solutions.
intra networking
rking system. This
ees, management
pany is publishing
yees, promotions,
connected to the
happening in and
helps to improve
also focuses on
various innovative
no, it is a dream of
s in Rs. 1 lakh. and
tomobile industry
irstly India's first
kinds. This type ofnization with full
rganization. All the
ano as their own
is dream in reality
partment of Tata
innovative product
he same goal like
y to strengthen its
ta Motors Ltd. into
n high technology
ought in a foreign
one evolves as an
ed but now he is
part of 203 board
s.
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Earlier Tata Motors w
few said theyd buy t
first. Reliability was a
slew of successful lau
(and the Nano). It hasDuring this time Tata
man leading the char
European operations
Every plan in the co
team. The parent gro
CEO of the company
bonus and incentives
true leader with a cle
pays a lot of focus on
can be said to be serv
Before Mr Forster joi
in the year ended M
continue to increase s
much time with the e
i
23
s seen as a sleepy company. Its products w
eir cars for personal use. Its trucks were al
lesser consideration. But since then the c
nches the Indica Vista, the Manza, its ran
also gone and bought a Spanish bus maker,Motors has also realised it needs to globalis
e is Carl-Peter Foster who was in charge
nd he is trying to internationalize the com
pany is first evaluated under Enterprise
p doesnt have much control over the TATA
who is the boss. He draws a hefty salary o
per month and is on a contract period of t
r vision of bringing TATA motors on intern
R&D. He can be said as a leader first while t
nt first. Both this styles are complementary
ned this company, reported its first annual
arch 2009, since then he has been doing
ales while simultaneously cutting costs. He
d customers but addresses the whole comp
re dependable but
o bought for price
ompany has had a
ge of world trucks
Hispano Carrocera.e aggressively. The
f General Motors
any in true sense.
Risk Management
motor and its the
over 34 lakh plus
ree years. He is a
tional grounds. He
he group chairman
to each other.
loss in seven years
a fairly good job
doesnt spend too
any quarterly.
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ANNEXURE
1. Correspondence with
Communication from group me
Reply from interviewee to grou
the official to 25/8/2010 over p
i
24
Interviewee
ber to interviewee through e-mail
member through e-mail. (The interview date w
one)
as rescheduled by
8/9/2019 Study on Organizational Structure and Leadership Style of TATA Motors
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We conducted the second int
(Product Development Electric
i
25
erview telephonically with Mr Rakesh Kapoor
als) Pune on 29th
August 2010 at 1530 hrs.
, Deputy Manager
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2. Interview Questionn
1. What are the organizVision
"Best in the manner in
our value system and
Mission
To become a world cl
and enable Tata Moto
2. How many divisionsbased on geographica
of both?
TATA MOTORS has a
based on product typ
Both these divisions h
south east and west z
3. What are the opportprogression programThere is a very great s
normal middle level e
exceptional record an
4. How much support issuch as professional
Tata does provide res
has tie ups with vario
the company for high
5. Who decides the worThe work is distribute
assignments. The stra
operational activities
base of their yearly pe
6. Are new ideas from eit implemented?
Yes new ideas are wel
They have a suggestio
i
26
aire
tions goals and Mission?
which we operate, best in the products we
thics.
ass automotive engineering and product de
rs to become a world class automotive com
oes TATA Motors have? Are the Divisions o
l situation or based on products differentia
ixed organizational structure. There are tw
viz Commercial vehicle division and Passen
ave been subdivided as per geographical loc
ne.
nities to get promoted over the years? Wh
policy deployed in TATA Motors?cope of growth along with the company. On
ployee is promoted every 3-5 years. An em
good performance is promoted on an aver
made available to individuals for professio
courses, seminars and trainings, higher ed
arch opportunities. It encourages research
s universities. Scholarship of 50% up to 100
r education. They also have in house trainin
distribution? And How?
in based on strategic activities or operatio
egic level activities are taken up by top man
re distributed to middle and lower level. Th
rformance appraisal.
mployees welcomed? If an idea is found go
comed from the employees and they are re
n boxes to invite new ideas. Few ideas have
eliver, and best in
elopment centre,
any.
f the organization
tion? Or is it a mix
main divisions
er cars division.
tion into north
t is the career
an average a
ployee with
age of two years.
al development
cation?
ased projects. It
is provided by
g programs.
al/routine
agement. The
is becomes the
d enough then is
arded suitably.
also been
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implemented. (When
envelope).
7. How much control ofTATA Motors is more
Board of directors of
8. What is the reporting
9. How often managemThe management inte
addresses the whole c
Accordingly the lowerbasis.
10.How often different dEvery month there is
activities throughout t
11.Is the interaction amlevels or interaction i
The functional groupwelfare association co
employee and their fa
i
27
asked very trivial example was given, like ch
parent company is there on TATA Motors?
r less independent. All the strategic decisio
ATA motors.
procedure and flow?
nt interacts with employees?
ract with the employees on a regular basis.
ompany thrice a year, MD visits each divisio
management have meeting with employees
epartments comes together and at what le
ManCom meeting. Apart from that there a
he year.
ng employees (at different posts) only limi
there on personal level also?
eets thrice a year for a cultural event withnducts various activities throughout the yea
mily including different sport activities.
nge in shape of
s are taken by
he chairman
quarterly.
on day to day
el?
e various cultural
ed to formal
amilies. Ther which involves
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12.Is there any differencNo, there is no much
13.How the span of contAt corporate level the
lower level managem
structure is somewhe
14.To what extend decisithe top level interfer
Each employee is bou
identifies different res
functionally and finan
15.In general, in TATA Mcolleagues/juniors?
Yes, they have a ment
themselves in the fun
16.How the organisationdoes it take for a mes
versa?They have newsletter
are circulated though
Chairman, MD and CF
is always accessible to
17.What practices do yodecision without kno
In case of conflicts the
18.How do you approacwhat factors prompte
already incurred?
They have an Enterpri
different aspects of a
background.
19.Is TATA Motors a proTATA Motors is more
i
28
in working styles of an Indian CEO and a
ifference in their working.
rol of managers at TATA Motors?
span of control varies from 1:5 to 1:7. While
nt it varies as 1:10. This indicates that the o
e between flat and hierarchical structure.
on making power given to a department?
in working within a department?
d by TATA Code of conduct and authority
ponsibilities and decision making powers of
ially.
otors, whether the managers act as a ment
oring program which enables each employe
tional areas.
communicates effectively with the employ
sage to reach from top of the organization
and house magazines published monthly fo
out the company. Also regular emails/corres
are circulated on regular basis. The higher
the lower level.
implement during conflicts? Have you eve
ledge of all the needed data?
action plan is chaired by top management.
complex problems? Like In case of NANO
d to cancel the project there in spite of hug
se risk management (ERM) team that studie
y occurrence on operational, functional and
uct oriented organization or people orient
f a product oriented organization.
on Indian CEO?
at the middle and
rganisational
ow much does
atrix which clearly
an individual both
or to their
to empower
ees? How long
o bottom and vice
r each division and
pondence from
level management
r had to make a
Singur Plant,
e investment
and evaluates
strategic
d organization?
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LOG OF VISIT
Whom visited
1.
2.
Who Visited
1.
2.
When Visited
First Interview
Date
Time
Venue
Second Interview
Date
Time
Nature
i
29
Mr. Rajesh Aidoor,
GM (Internal Audit & ERM)
TATA Motors Limited
4th
Floor, One Forbes,
1 Dr VB Gandhi Marg, Fort
Mumbai 400 001
akesh Kapoor
eputy Manager (Product Development El
&D Department, Pune
ata Motors
une - 411033
Sumit Guha
Roll no: 104, PGDIE 40
Batch of 2012
National Institute of Industrial Engineer (NITIE)
Mumbai
Sunit Mhasade
Roll no: 105, PGDIE 40
Batch of 2012
National Institute of Industrial Engineer (NITIE)
Mumbai
: - 25th
August, 2010
: - 1700 Hrs
: - TATA Motors Limited (Corporate Office)4th
Floor, One Forbes,
1 Dr VB Gandhi Marg, Fort
Mumbai 400 001
: - 29th
August, 2010
: - 1530 Hrs
: - Telephonic
ctricals)
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Barlow, G. (1996). Organization
Leadership & Organization Deve
Chen, C. J., & Huang, J. W. (2007
management- The social interac
104-118.
Damanpour, F., & Gopalakrishn
adoption: The role of environme
Doherty, N. F., Champion, D., &
changing nature of organization
Hick, M. (2008). Leadership Typ
http://www.leadershiparticles.nand-Styles---Overview-of-Skills/
Mostovicz, E. I., Kakabadse, N. K
leadership developement. Lead
Mostovicz, E. I., Kakabadse, N. K
leadership development. Leade
Quelch, J. (2008, October 1). Ho
2010, from HBS Working Knowl
Stone, A. G., Russell, R. F., & Pat
leadership: a difference in leade
361.
Vickery, S., CorneliaDroge, & Ge
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Willen, A., & Buelens, M. (2009)
of organizational structure dime
i
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