36578750 Study on Organizational Structure and Leadership Style of TATA Motors

NITIE Mumbai

Study on Organizational Structure and

Leadership Style of TATA Motors

Suhas Jamble 102| Balu Sukate 103| Sumit Guha 104

Sunit Mhasade 105| Sumeet Suman 106| Sunny Tonk 107


Leadership Style of TATA Motors

Team Members






PGDIE 40, NITIE Mumbai

INTRODUCTION

PRODUCTS AND SERVICES

ARTICLE REVIEWS

ORGANISATIONAL STRUCTURE LITERATURE

1. How organizational climate and structure affect knowledge management

interaction perspective.

2. The relationship between product customization and organizational structure

CorneliaDroge, & Germain, 1999)

3. Knowledge sharing in inter unit co

structure dimensions (Willen & Buelens, 2009)

4. An holistic approach to understanding the changing nature of organizational structure

(Doherty, Champion, & Leitao Wang, 2, 2010)

5. Theories of organizational structure and innovation adoption: the role of environmental

change (Damanpour & Gopalakrishnan, 1998)

REVIEW OF LEADERSHIP STYLE LITERATURE

1. How Much Time Should CEOs Devote to Customers?

2. Organization development and leadership: R.B. Reid

RAILWAYS (Barlow, 1996)

3. Leadership Types and Styles

4. A dynamic theory of leadership Development

dynamic theory of leadership developement, Vol. 30 No.

5. Transformational versus servant leadership: a difference in leader focus (Stone, Russell, &

Patterson, (2004,Vol. 25 No. 4))

Current organizational Structure of TATA Motors

COMPARISON & CONCLUSION

TATA Motors with Organisation Structure

TATA Motors with Leadership Style

ANNEXURE

1. Correspondence with Interviewee

2. Interview Questionnaire

LOG OF VISIT

BIBLIOGRAPHY


2

CONTENTS


How organizational climate and structure affect knowledge management

interaction perspective. (Chen & Huang, 2007)

The relationship between product customization and organizational structure

CorneliaDroge, & Germain, 1999)

Knowledge sharing in inter unit cooperative episodes: The impact of organizational

(Willen & Buelens, 2009)

An holistic approach to understanding the changing nature of organizational structure


Theories of organizational structure and innovation adoption: the role of environmental

(Damanpour & Gopalakrishnan, 1998)


How Much Time Should CEOs Devote to Customers? (Quelch, 2008)

Organization development and leadership: R.B. Reid and the dynamics of success

RAILWAYS (Barlow, 1996)

Leadership Types and Styles - Overview of Skills (Hick)

A dynamic theory of leadership Development (Mostovicz, Kakabadse, & Kakabadse, A

dynamic theory of leadership developement, Vol. 30 No. 6, 2009)

Transformational versus servant leadership: a difference in leader focus (Stone, Russell, &

25 No. 4))




Correspondence with Interviewee

Interview Questionnaire

3

5

7

7

How organizational climate and structure affect knowledge management- The social

7

The relationship between product customization and organizational structure (Vickery,

8

operative episodes: The impact of organizational

9

An holistic approach to understanding the changing nature of organizational structure

10

Theories of organizational structure and innovation adoption: the role of environmental

11

13

13

and the dynamics of success- BRITISH

14

15

(Mostovicz, Kakabadse, & Kakabadse, A

17

Transformational versus servant leadership: a difference in leader focus (Stone, Russell, &

18

20

21

21

22

24

24

26

29

30


INTRODUCTION

Tata Motors Ltd has two business units

Commercial Vehicles Business Unit (CVBU). The vision and mission of both the

units are given below

Vision

“Best in the manner in which we operate, best in product we deliver & best in our value

systems & ethics.”

Mission

“To become world class automotive engineering & product development centre and enable

Tata Motors to become a world class automotive company.

Company Overview

Tata Motors is India’s largest automobile company. It is the leader by far in commercial

vehicles in each segment, and among the top three in passenger vehicles with winning

products in the compact, midsize car and utility vehicle segments. The company is the

world’s fourth largest truck manufacturer and the second largest bus manufacturer

consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009

TATA Motors is one of the oldest

first model on roads of India in 1954. Now, it is present all over the country. The company's

manufacturing unit in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),

Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The company

is establishing a new plant at Sanand (Gujarat). Over 5.9 million Tata vehicles are running on

Indian roads.

TATA Motors, the first company from India's engineering sector to be listed

Stock Exchange in September 2004. It has also emerged as an international automobile

company having operations in the UK, South Korea, Thailand & Spain.

In year 2008, it acquires Jaguar Land Rover from Ford Motors & in the same year TATA

launched Nano, people’s car. Fiat Group & Tata Motors announce establishment of Joint

Venture in India in 2007. Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish

bus manufacturing Company.

Company, South Korea's second largest truck maker.


3

has two business units – the Passenger Car Business Unit (PCBU) and

Commercial Vehicles Business Unit (CVBU). The vision and mission of both the

Best in the manner in which we operate, best in product we deliver & best in our value

To become world class automotive engineering & product development centre and enable

become a world class automotive company.”



ct, midsize car and utility vehicle segments. The company is the

world’s fourth largest truck manufacturer and the second largest bus manufacturer

consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10.

TATA Motors is one of the oldest automobile companies established in 1945 & delivered its



Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The company


TATA Motors, the first company from India's engineering sector to be listed


company having operations in the UK, South Korea, Thailand & Spain.


aunched Nano, people’s car. Fiat Group & Tata Motors announce establishment of Joint

Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish

bus manufacturing Company. In 2004, it acquired the Daewoo Commercial Vehicles

Company, South Korea's second largest truck maker.

the Passenger Car Business Unit (PCBU) and

Commercial Vehicles Business Unit (CVBU). The vision and mission of both the business

Best in the manner in which we operate, best in product we deliver & best in our value

To become world class automotive engineering & product development centre and enable



ct, midsize car and utility vehicle segments. The company is the

world’s fourth largest truck manufacturer and the second largest bus manufacturer with

automobile companies established in 1945 & delivered its



Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The company


TATA Motors, the first company from India's engineering sector to be listed in the New York



aunched Nano, people’s car. Fiat Group & Tata Motors announce establishment of Joint

Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish

In 2004, it acquired the Daewoo Commercial Vehicles


The company’s manufacturing base is spread across Jamshedpur, Pune, Lucknow and

Pantnagar (Uttarakhand). Also the company has

Lucknow, Dharwad in India, & in South K

first indigenously Light Commercial Vehicle, India's first Sports Utility Vehicle & in 1998, the

Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata

Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new

segment by launching the Tata Ace, India's first indigenously developed mini

company is establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat). The

company’s dealership, sales, services and spare parts network comprises over 3500

communication points.

The People

Tata Motors is having employee base of 24,165. The company helps its employees to realize

their potential through innovative HR practices. The c

provide employees with dynamic career paths in congruence with corporate objectives. All

round potential development and performance improvement is ensured by regular in

and external training. The company has won sever

programmes.


4

manufacturing base is spread across Jamshedpur, Pune, Lucknow and

Also the company has R&D centres in Pune, Jamshedpur,

Lucknow, Dharwad in India, & in South Korea, Spain & the UK. TATA Motors developed the



ia's largest selling car in its segment. In 2005, Tata Motors created a new

segment by launching the Tata Ace, India's first indigenously developed mini


any’s dealership, sales, services and spare parts network comprises over 3500


their potential through innovative HR practices. The company’s goal is to empower and

provide employees with dynamic career paths in congruence with corporate objectives. All

round potential development and performance improvement is ensured by regular in

and external training. The company has won several awards recognizing its training

manufacturing base is spread across Jamshedpur, Pune, Lucknow and

R&D centres in Pune, Jamshedpur,

orea, Spain & the UK. TATA Motors developed the



ia's largest selling car in its segment. In 2005, Tata Motors created a new

segment by launching the Tata Ace, India's first indigenously developed mini-truck. The


any’s dealership, sales, services and spare parts network comprises over 3500


ompany’s goal is to empower and

provide employees with dynamic career paths in congruence with corporate objectives. All-

round potential development and performance improvement is ensured by regular in-house

al awards recognizing its training



Passenger Cars:

The range comprises Tata Indica (compact car), Tata Indigo (sedan), Tata Indigo

Marina (station-wagon) and Tata Nano (small car). The company also distributes and

markets Fiat branded cars in India.

Utility Vehicles:

A range comprising Tata Aria (Crossover); Tata Safari (SUV), Tata Xenon XT (Lifestyle

Pick-up), and Tata Sumo Grande MK II, Tata Sumo range and Tata Venture (People

Carriers).

Commercial Vehicles for goods transportation

• Small Commercial Vehicles

• Light Commercial Vehicles

Commercial Vehicles for passenger transportation

• Tata and Tata Marcopolo ran

onwards.

• Multi-purpose vehicles

for urban and rural transportation.

Subsidiaries Companies

These are various subsidiaries of Tata Motors.

• Jaguar Land Rover

• Tata Marcopolo Motors

• Tata Daewoo

• Hispano Carrocera

• Tata Motors (Thailand)

• Telcon

• Tata Motors European Technical Centre

• Tata Technologies

• TAL Manufacturing Solutions

• HV Transmission and HV Axles

• Tata Autocomp

• TML Distribution Co

• Tata Motor


5



wagon) and Tata Nano (small car). The company also distributes and

markets Fiat branded cars in India.


up), and Tata Sumo Grande MK II, Tata Sumo range and Tata Venture (People

for goods transportation

Small Commercial Vehicles: Tata Ace, India’s first indigenous mini-truck.

Light Commercial Vehicles: Pick-ups and trucks ranging from 2T GVW to 7.5T GVW.

Commercial Vehicles for passenger transportation

Tata and Tata Marcopolo range of light, medium and heavy buses from 2T GVW

purpose vehicles – Tata Magic, Tata Magic Iris, Tata Winger and Tata Venture

for urban and rural transportation.

These are various subsidiaries of Tata Motors.

Land Rover

Tata Marcopolo Motors

Tata Daewoo

Hispano Carrocera

Tata Motors (Thailand)

Tata Motors European Technical Centre

Tata Technologies

TAL Manufacturing Solutions

HV Transmission and HV Axles

Tata Autocomp

TML Distribution Co.

Tata Motor Finance


wagon) and Tata Nano (small car). The company also distributes and


up), and Tata Sumo Grande MK II, Tata Sumo range and Tata Venture (People

truck.

ups and trucks ranging from 2T GVW to 7.5T GVW.

ge of light, medium and heavy buses from 2T GVW

Tata Magic, Tata Magic Iris, Tata Winger and Tata Venture –


Product Profile

Passenger Cars Utility Vehicle

Indica

Indigo

Nano

Fiat


6

Utility Vehicle Trucks

Sumo

Safari

Xenon

Small Commercial

trucks (Ace)

Light Commercial

trucks (TL4X4)

Intermediate Commercial

trucks (Turbo Truck)

Prima truck

Construck

Commercial

passenger

Vehicles

Bus

Winger

Magic Intermediate Commercial

Medium & Heavy

Commercial trucks


ARTICLE REVIEWS


1. How organizational climate and structure affect knowledge management

social interaction perspective.

Objective:-

The article emphasises on the study to examine the effects of organizational climate and

structure on knowledge management from the social interaction perspective. The

regression analysis is used to test the hypotheses in a sample of 146 cases.

Key Variables:

Organisational climate, organisational structure

management.

Findings:-

Firstly, the author has adopted the process

effect of social interaction on the relationship between orga

knowledge management. Secondly, he examines how social interaction affects the

relationship between organizational structure and knowledge management.

Organizational climate plays an essential role in shaping employees’ behaviours an

influencing their perception of knowledge management. If the organization possesses a

strong innovative and cooperative climate, employees would receive a clear signal that it

is acceptable or desirable for them to build up interaction networks to share

knowledge. Conversely, if the innovative and cooperative climate is relatively weak or

inexistent, employees would perceive a lower need to interact with colleagues. Besides

organizational climate, the author also emphasises on organizational st

likely to affect the social interaction among organizational members. As a result, the

author expects that an innovative and cooperative climate would provide a vital

atmosphere for strengthening social interaction among organizational mem

The author also states the importance of mediating effect which gives the relationships

between independent variables of organizational climate and organizational structure

and dependent variable of knowledge management and states two hypothesis that

social interaction mediates the effect of organizational climate on knowledge

management and Social interaction mediates the effect of organizational structure on

knowledge management. These hypotheses have been explained by the author with

regression method.


7


How organizational climate and structure affect knowledge management

interaction perspective. (Chen & Huang, 2007)




Organisational climate, organisational structure, social interaction, knowledge

Firstly, the author has adopted the process-oriented view to investigate the mediating

effect of social interaction on the relationship between organizational climate and



Organizational climate plays an essential role in shaping employees’ behaviours an



is acceptable or desirable for them to build up interaction networks to share



organizational climate, the author also emphasises on organizational st



atmosphere for strengthening social interaction among organizational mem



and dependent variable of knowledge management and states two hypothesis that




How organizational climate and structure affect knowledge management- The




, social interaction, knowledge

oriented view to investigate the mediating

nizational climate and



Organizational climate plays an essential role in shaping employees’ behaviours and



is acceptable or desirable for them to build up interaction networks to share and gather



organizational climate, the author also emphasises on organizational structure which is



atmosphere for strengthening social interaction among organizational members.



and dependent variable of knowledge management and states two hypothesis that the





Conclusion:-

1. First, the smaller sample size of this study raised the non

We have done the t

not a significant issue. Also, the sample size in our study is ba

generate the meaningful results as the regression models include 8

independent variables. Accordingly, the smaller sample size of the survey is

noted as a potential limitation in this study.

2. The study focuses only on two organizatio

structure. There are other organizational constructs that warrant discussion.

Future research may explore how these different constructs affect intra

organizational social interaction and knowledge management.

3. The findings suggest that innovative and cooperative climate is positively related

to social interaction. When the organizational structure is less formalized, more

decentralized and integrated then the social interaction is more favourable. Also

the social interactio

4. These empirical evidences support the process

social interaction plays the mediating role between organizational climate,

organizational structure, and knowledge management.

2. The relationship between product customization and organizational structure

(Vickery, CorneliaDroge, & Germain, 1999)

Objective:-

This research examines the relationship between the extent of use of a product

customization strategy and organizational structure, since structure is a key to

managers’ implementation of strategy.

Key Variables:

Product customisation, decentralisation, span of control

Findings:-

Four aspects of organizational ‘structure’ are considered. They are

(encompassing the measurement of competitive, internal, and supplier performance)

and three key dimensions of organizational design: decentralization, layers, and spans of

control. A contingency approach is taken by simultaneously examining

moderating effects of environmental uncertainty and firm size. LISREL results show that

customization associates with more formal control, fewer layers, and narrower spans of

control. Subgroup analysis revealed that these main effects are, for

moderated by size or environmental uncertainty.


8

First, the smaller sample size of this study raised the non-response bias concern.

We have done the t-statistics and w2 test to verify that the non

not a significant issue. Also, the sample size in our study is ba

generate the meaningful results as the regression models include 8


noted as a potential limitation in this study.

The study focuses only on two organizational context including climate and


Future research may explore how these different constructs affect intra

organizational social interaction and knowledge management.

suggest that innovative and cooperative climate is positively related



the social interaction is positively related to knowledge management.

These empirical evidences support the process-oriented view and indicate that


organizational structure, and knowledge management.


(Vickery, CorneliaDroge, & Germain, 1999)


ategy and organizational structure, since structure is a key to

managers’ implementation of strategy.

decentralisation, span of control

Four aspects of organizational ‘structure’ are considered. They are



control. A contingency approach is taken by simultaneously examining



control. Subgroup analysis revealed that these main effects are, for

moderated by size or environmental uncertainty.

response bias concern.

statistics and w2 test to verify that the non-response bias is

not a significant issue. Also, the sample size in our study is barely satisfactory to

generate the meaningful results as the regression models include 8–12


nal context including climate and


Future research may explore how these different constructs affect intra-

suggest that innovative and cooperative climate is positively related



n is positively related to knowledge management.

oriented view and indicate that




ategy and organizational structure, since structure is a key to

Four aspects of organizational ‘structure’ are considered. They are formal control



control. A contingency approach is taken by simultaneously examining the main and



the most part, not


The main effects of size on structure were consistent with previous research: larger

manufacturers are more formalized (in terms of performance controls

centralized, and utilize more layers and wider spans of control. M

in more dynamic environments are more decentralized, but have more rigorous formal

control.

Conclusion:-

Managers should thus understand that, for the most part, they need not concern

themselves with size and environmental uncertainty when selecting an appropriate

organizational structure to ‘match’ the desired level of product customizatio

3. Knowledge sharing in inter unit co

organizational structure dimen

Objective:-

The objective of article is how

altered to be more adapted to organizational knowledge sharing.

relationship between coordination, centralization, formalization, and specialization,

the concept of knowledge sharing

Key Variables:-

Knowledge sharing, coordination, formalisation, specialization

Findings:-

Studying effective inter-unit

organizational structure influences and shapes the cooperative episodes in which

knowledge sharing takes place. To obtain this insight, we revisit four of the most

important classic organizationa

centralization, formalization, and specialization; and

knowledge sharing. These classic

the differentiation–integration bala

organization theory literature

on the kind of coordination mechanisms used, and this is closely related to the other

structure dimensions (centraliz

Formalization indicates the extent to which the rights and

organization are determined and the extent to which these are written down in rules,

procedures and instructions. Decentrali

teams, mutual adjustment, networking, and integration roles (less formal and

decentralized) allows flexible coordination during task execution and can deal with ad

hoc communication and information.


9


manufacturers are more formalized (in terms of performance controls

e more layers and wider spans of control. Manufacturers operating



elves with size and environmental uncertainty when selecting an appropriate

organizational structure to ‘match’ the desired level of product customizatio

Knowledge sharing in inter unit cooperative episodes: The impact of

organizational structure dimensions (Willen & Buelens, 2009)

The objective of article is how the classic organizational structure dimensions should be

altered to be more adapted to organizational knowledge sharing. The behaviour of the

coordination, centralization, formalization, and specialization,

concept of knowledge sharing has been studied.

Knowledge sharing, coordination, formalisation, specialization

unit knowledge sharing in organizations requires insight into how


takes place. To obtain this insight, we revisit four of the most

important classic organizational structure dimensions, namely

centralization, formalization, and specialization; and assess their impact on inter

knowledge sharing. These classic organizational structure dimensions are underpinning

integration balance, which has been the major focus in the classic

organization theory literature. The impact of coordination on knowledge sharing depends


structure dimensions (centralization, formalization and specialization).

Formalization indicates the extent to which the rights and duties of the members of the


procedures and instructions. Decentralised, i.e. horizontal-coordination consisting of



hoc communication and information.


manufacturers are more formalized (in terms of performance controls) and de-

anufacturers operating



elves with size and environmental uncertainty when selecting an appropriate

organizational structure to ‘match’ the desired level of product customization

operative episodes: The impact of

(Willen & Buelens, 2009)

classic organizational structure dimensions should be

The behaviour of the

coordination, centralization, formalization, and specialization, with

knowledge sharing in organizations requires insight into how


takes place. To obtain this insight, we revisit four of the most

l structure dimensions, namely coordination,

assess their impact on inter-unit

organizational structure dimensions are underpinning

focus in the classic

The impact of coordination on knowledge sharing depends


duties of the members of the


coordination consisting of




Informal coordination (informal and decentralized)

organization structure literature but received thorough attention in the network

literature, which also stressed the relationship with knowledge sharing. Informal

coordination, i.e. any form of personal contact between people and units in the

organization that is not intended or imposed by management

Conclusion:-

Empirical data was collected by means of a questionnaire in two companies. Our

findings indicated that expected r

centralization or the positive effect of lower formalization, were not found.

Interdependency and knowledge complexity, caused by specialization, had an important

interacting effect on the relationship between c

comparison between the two companies revealed that the organization

in which the coordination is applied influences the potential of this coordination for

knowledge sharing. By bringing new issues such

organization structure theory, this theory might regain some of its lost value.

4. An holistic approach to understanding the changing nature of

organizational structure

Objective:-

This article discusses about one of the most debatable & important topic i.e. importance

of IT on organizational structure & mostly about Enterprise Resource Planning (ERP). It is

a well defined technology with low interpretive fl

Key Variables:-

Standardisation, formalisation, Entrepreneur Resource planning

Findings:-

It mostly influences the locus of decision making, standardization & formalization of

working practices and procedures. But it does not consider its impa

the degree of horizontal integration, or the number of hierarchical layers. It is difficult to

get an overall view of the impact of IT on organizational structure.

ERP is typically acquired in the form of packaged software, with inte

support all major business functions across an organization, such as production,

distribution, sales, finance & HR management. It encourages organizations to streamline

& standardize their business processes across the organization & wi

business units.


10

Informal coordination (informal and decentralized) was not topical in the classic



n, i.e. any form of personal contact between people and units in the

organization that is not intended or imposed by management.


findings indicated that expected relationships, such as the negative effect of



interacting effect on the relationship between coordination and knowledge sharing. A

comparison between the two companies revealed that the organization


By bringing new issues such as knowledge management into


An holistic approach to understanding the changing nature of

organizational structure (Doherty, Champion, & Leitao Wang,



a well defined technology with low interpretive flexibility.

Standardisation, formalisation, Entrepreneur Resource planning

the locus of decision making, standardization & formalization of

working practices and procedures. But it does not consider its impact on span of control,


get an overall view of the impact of IT on organizational structure.

ERP is typically acquired in the form of packaged software, with integrated modules that



& standardize their business processes across the organization & wi

was not topical in the classic



n, i.e. any form of personal contact between people and units in the


elationships, such as the negative effect of



oordination and knowledge sharing. A

comparison between the two companies revealed that the organization-specific context


as knowledge management into


An holistic approach to understanding the changing nature of




the locus of decision making, standardization & formalization of

ct on span of control,


grated modules that



& standardize their business processes across the organization & within individual


Strategy is also having significant impact on organization’s structure.

quantitative analyses suggest that the configuration of an organization is influenced by

ERP benefits & strategic orientation. Author

recognize impact of ERP.

Large-scale & successful ERP system is deployed in an organization with a Prospector

orientation, & then there are a most chances that organization will become flatter, the

decision-making will be less centralized, level of horizontal integration will increase &

working practices will become more standardized.

Results of many previous studies say th

complex & problematic undertaking. ERP has dominant role in reshaping corporate

structure.

Conclusion:-

1. This study gives two valid interpretations that ERP systems will only deliver

benefits in circumstances in

well aligned, with the structural models & management teams will only be

prepared to make any significant changes to their organizations’ structure, to

better align it with ERP.

2. This article does not give

mostly says that, it is successful ERP adoption that is driving structural change.

5. Theories of organizational structure and innovation adoption: the role of

environmental change

Objective:-

This article discuss about various theories of Organizational structure & innovation

adaption & their framework within which they are applied. Mostly these theories

focuses on only one dimension

But in reality these dimensions are overlaps on each other & for the same reason these

theories produce inconsistent results.

Key Variables:-

Innovation adaptation, environmental change,

Findings:-

In this article, authors also discussed about innovations, its adoption, rate & speed to

adopt it by organizations & its sources like imitative, acquisitive & incubative.

There are three structural theories of innovation:

1. Dual core theory: It

innovations


11

Strategy is also having significant impact on organization’s structure.


ERP benefits & strategic orientation. Author has also done quantitative study to

scale & successful ERP system is deployed in an organization with a Prospector

then there are a most chances that organization will become flatter, the

making will be less centralized, level of horizontal integration will increase &

working practices will become more standardized.

Results of many previous studies say that, an ERP implementation is an extremely


This study gives two valid interpretations that ERP systems will only deliver

benefits in circumstances in which the host organization’s structure is already



better align it with ERP.

This article does not give any particular answer to this debatable topic, but it


Theories of organizational structure and innovation adoption: the role of

environmental change (Damanpour & Gopalakrishnan, 1998)



focuses on only one dimension i.e. type, radical-ness, or stage-of innovation at a time.


theories produce inconsistent results.

Innovation adaptation, environmental change,

this article, authors also discussed about innovations, its adoption, rate & speed to


There are three structural theories of innovation:

Dual core theory: It distinguishes between administrative and technical

Strategy is also having significant impact on organization’s structure. Results of the


has also done quantitative study to

scale & successful ERP system is deployed in an organization with a Prospector

then there are a most chances that organization will become flatter, the

making will be less centralized, level of horizontal integration will increase & its

at, an ERP implementation is an extremely


This study gives two valid interpretations that ERP systems will only deliver

which the host organization’s structure is already



any particular answer to this debatable topic, but it


Theories of organizational structure and innovation adoption: the role of

(Damanpour & Gopalakrishnan, 1998)



of innovation at a time.


this article, authors also discussed about innovations, its adoption, rate & speed to


tween administrative and technical


2. The theory of innovation radicalness: It discusses about two aspects i.e. variation

(routine) & reorientation.

3. The ambidextrous theory: It discusses about

to a decision to adopt & the activities that facilitate implementation and

continued use of an innovation

Article also tells that organizations is open systems seek a state of equilibrium with their

environments and its dimensions are extent of stability and extent of

predictability. So, the two sets of values for each dimension are stable vs. unstable;

predictable vs. Unpredictable

predictable (EC1), stable and unpredictable (EC2), unstable and predictab

unstable and unpredictable (EC4)

bring together elements of environmental change, organizational structure and

innovation adoption.

Conclusion:-

1. The article gives complex but precise

conditions under which certain structural characteristics facilitate or hinder

organizational innovation. The framework identifies dimensions of innovation adoption

in each environmental condition.

that existed among the three prominent theories of organizational innovation.

2. This article is having some limitations like it is complex in construct. It mostly focuses on

external environment & not on other variables

adoption relationships, such as organizational technology, size and ownership.


12

The theory of innovation radicalness: It discusses about two aspects i.e. variation

(routine) & reorientation.

The ambidextrous theory: It discusses about the pre-adoption activities that lead

to adopt & the activities that facilitate implementation and

continued use of an innovation

organizations is open systems seek a state of equilibrium with their

environments and its dimensions are extent of stability and extent of


npredictable. Four environmental sets of conditions: stable and

predictable (EC1), stable and unpredictable (EC2), unstable and predictab

unstable and unpredictable (EC4). A way to make a framework for above conditions is to

elements of environmental change, organizational structure and

The article gives complex but precise theories by identifying the environmental



in each environmental condition. This paper helps to resolve some of the discrepancies


This article is having some limitations like it is complex in construct. It mostly focuses on

external environment & not on other variables that impact structure


The theory of innovation radicalness: It discusses about two aspects i.e. variation

adoption activities that lead

to adopt & the activities that facilitate implementation and

organizations is open systems seek a state of equilibrium with their

environments and its dimensions are extent of stability and extent of turbulence or


Four environmental sets of conditions: stable and

predictable (EC1), stable and unpredictable (EC2), unstable and predictable (EC3), and

A way to make a framework for above conditions is to

elements of environmental change, organizational structure and

theories by identifying the environmental



to resolve some of the discrepancies


This article is having some limitations like it is complex in construct. It mostly focuses on

that impact structure–innovation




1. How Much Time Should CEOs Devote to Customers?

Objective:-

Customers are the source of all cash flow. Organic growth depends on developing

relationships with new and existing customers. And future growth prospects are baked

into stock market valuations of companies

need marketing skills more than ever. But while every corporate mission statement pays

lip service to respecting customer needs, actual customer expertise is typically a mile

wide and an inch deep.

Key Variables:-

Customer relationships, Consumer

Findings:-

"THE CUSTOMER IS GOD AND THE MARKET DECIDES EVERYTHING" is very well known

quote it becomes even more pivotal in situations of economic crisis. But as seen very

few of the CEOs of FORTUNE

and sales. Every corporate

needs; actual customer expertise is typically a mile wide and an inch

customer-oriented, executives must get out and meet customers on their home turf

their homes, on job sites, in t

A good CEO knows how to balance time spent on the outside versus the inside. However

they should consider following three things

• CEO should spearhead the identification of three or four customer health metrics

that are leading indicators

be off-the-shelf standbys such as customer satisfaction

customers on their home turf

• CEOs must ensure an adequate pipeline

This requires the investment in uncovering customer insights discussed above,

either through business leaders regularly going into the field and through more

formal customer research studies

• CEO has to develop mark

mean appointing a high

long-term infusion of customer centricity and marketing strategy capability

throughout the organization. Over time,

general managers coming up through the marketing ranks.

Conclusion:-

Every CEO should spend at least 10 percent of his or her time taking care of these three

challenges i.e. human touch, customer relationship and

customers is simply not enough.


13


How Much Time Should CEOs Devote to Customers? (Quelch, 2008)



into stock market valuations of companies. The current economic downturn, companies

rketing skills more than ever. But while every corporate mission statement pays


Consumer behavior, General leadership, customer satisfaction

IS GOD AND THE MARKET DECIDES EVERYTHING" is very well known


few of the CEOs of FORTUNE-500 companies have come up the ranks

and sales. Every corporate mission statement pays lip service to respecting customer

customer expertise is typically a mile wide and an inch

oriented, executives must get out and meet customers on their home turf

their homes, on job sites, in their offices.


they should consider following three things

CEO should spearhead the identification of three or four customer health metrics

that are leading indicators of sales or profit performance. These metrics should not

shelf standbys such as customer satisfaction. They must get out and meet

customers on their home turf—in their homes, on job sites, in their offices.

CEOs must ensure an adequate pipeline of new product and market opportunities.



formal customer research studies.

CEO has to develop marketing talent throughout the company. This cannot merely

mean appointing a high-profile rainmaker as chief marketing officer. It requires the

term infusion of customer centricity and marketing strategy capability

throughout the organization. Over time, this should mean a higher percentage of

general managers coming up through the marketing ranks.


human touch, customer relationship and . Running around visiting

customers is simply not enough.

(Quelch, 2008)



he current economic downturn, companies

rketing skills more than ever. But while every corporate mission statement pays


, customer satisfaction

IS GOD AND THE MARKET DECIDES EVERYTHING" is very well known


500 companies have come up the ranks through marketing

mission statement pays lip service to respecting customer

customer expertise is typically a mile wide and an inch deep. To be

oriented, executives must get out and meet customers on their home turf—in


CEO should spearhead the identification of three or four customer health metrics

of sales or profit performance. These metrics should not

must get out and meet

in their homes, on job sites, in their offices.

of new product and market opportunities.



eting talent throughout the company. This cannot merely

profile rainmaker as chief marketing officer. It requires the

term infusion of customer centricity and marketing strategy capability

this should mean a higher percentage of


Running around visiting


2. Organization development and leadership: R.B. Reid and the dynamics of

success- BRITISH RAILWAYS

Objective:-

To extract various qualities of leadership

comparison of it with leadership trends in TATA MOTORS.

Key Variables:-

Leadership capacity, delegation of authority, commitment

Findings:-

Reid carried through arguably one of the most fundamental and

processes of change and organizational development that British Rail (BR) has

experienced in the past 40 years.

Growth in BR’s productivity and financial performance was among the fastest in Europe,

and BR ended that decades one of

rail networks in Western Europe.BR in before Reid However, the development of road

and air competition and growth in private car ownership had brought about a far more

precipitous loss of BR’s business

where traffic could be handled more economically and effectively by road. In a nutshell,

Beeching had sought to identify and mobilize the railways’ distinctive characteristics to

greatest competitive advantage.

Although his plans remained largely in abeyance, they nevertheless remained as an

agenda for regenerative change. His (

politically aware as well as professionally experienced, Reid knew how to

within the railways’ organization. He also knew what needed to be done. Within two

years, Reid had delivered productivity improvements and cost reductions on a scale that

his predecessors had been unable to achieve

As a professional, he knew the railways and their management intimately. He knew what

needed to be done, and how to get it done: he

He also knew how to operate the levers of power.

He induced change built on success

clear vision and was decisive and determined in implementing it

achievable goals, and expected them to be achieved

clear mandates to others

most effective. As a result, he

professional managers and galvanized support within BR as a whole for the

transformation he brought about.


14

Organization development and leadership: R.B. Reid and the dynamics of

BRITISH RAILWAYS (Barlow, 1996)

To extract various qualities of leadership style from Reid’s tenure in British railways and

comparison of it with leadership trends in TATA MOTORS.

Leadership capacity, delegation of authority, commitment

Reid carried through arguably one of the most fundamental and potentially far


experienced in the past 40 years.


and BR ended that decades one of the most productive and certainly the most profitable



precipitous loss of BR’s business than could be redressed merely by closing down routes



dvantage.


agenda for regenerative change. His (Reid) wide-ranging experience, Astute, intelligent,

politically aware as well as professionally experienced, Reid knew how to



his predecessors had been unable to achieve

w the railways and their management intimately. He knew what

needed to be done, and how to get it done: he possessed systemic leadership capacity

He also knew how to operate the levers of power.

induced change built on success, rather than to avoid failure. He

clear vision and was decisive and determined in implementing it

achievable goals, and expected them to be achieved. He delegated authority, giving

clear mandates to others along with discretion to achieve results in w

most effective. As a result, he created and won the commitment of new coalitions of

and galvanized support within BR as a whole for the

transformation he brought about.

Organization development and leadership: R.B. Reid and the dynamics of

style from Reid’s tenure in British railways and

potentially far-reaching



the most productive and certainly the most profitable



than could be redressed merely by closing down routes




ranging experience, Astute, intelligent,

politically aware as well as professionally experienced, Reid knew how to get things done



w the railways and their management intimately. He knew what

possessed systemic leadership capacity

He communicated a

clear vision and was decisive and determined in implementing it. He set clear,

He delegated authority, giving

along with discretion to achieve results in ways which were

created and won the commitment of new coalitions of

and galvanized support within BR as a whole for the


This view was endorsed recently by a director

disbanded, who summed up Reid’s achievement succinctly: Reid recognised the need for

change. He created a sense of business purpose.

them with the sectors. The sector businesses wer

industry and the business they were in. Reid

There was a real feeling of achievement and success.

Conclusion:-

• Wide- ranging experience, astute and intelligence and political a

two years, Reid had delivered productivity improvements and cost reductions on a

scale that his predecessors had been Unable to achieve.

• A clear vision & keen to accomplish it & a clear set of goals helped him to

organization structured around identified business sectors and, simultaneously,

running down and eventually eliminating BR’s structure based on geographical

regions.

3. Leadership Types and Styles

Objective:-

To identify when and where these leadership qualities to be used and how these is

relevant to TATA MOTORS.

Key Variables:-

Autocratic, Delegative /Free Rein, Democratic

Findings:-

Leadership style is crucial to success. We find leadership all

the role ourselves at various times in our lives. Leadership can be found in the world of

business, sports, politics, religion and as close as home. Leaders must respond to the

rapidly changing world and meet the challenges

leaders and you will most likely encounter many over the course of time. Understanding

different leadership styles and their impact will help you become a more effective leader.

In 1939 famed psychologist Kurt Lewin

styles are well established though more specific types have been identified since. Leaders

should not be confused with managers.


15

This view was endorsed recently by a director of one of the sector businesses, now


created a sense of business purpose. He dissolved the Regions and replaced

. The sector businesses were full of people who understood the

industry and the business they were in. Reid got them all pulling in the same direction

There was a real feeling of achievement and success.

ranging experience, astute and intelligence and political a


scale that his predecessors had been Unable to achieve.

A clear vision & keen to accomplish it & a clear set of goals helped him to

structured around identified business sectors and, simultaneously,


Leadership Types and Styles - Overview of Skills (Hick)


relevant to TATA MOTORS.

/Free Rein, Democratic

Leadership style is crucial to success. We find leadership all around us. Each of us will fill



rapidly changing world and meet the challenges it demands. There are different types of



In 1939 famed psychologist Kurt Lewin identified classic styles of leadership. These three


should not be confused with managers.

of one of the sector businesses, now


He dissolved the Regions and replaced

e full of people who understood the

got them all pulling in the same direction.

ranging experience, astute and intelligence and political awareness, within


A clear vision & keen to accomplish it & a clear set of goals helped him to develop an

structured around identified business sectors and, simultaneously,



around us. Each of us will fill



it demands. There are different types of



identified classic styles of leadership. These three



Autocratic:

a) What needs to be accomplished, as well as, how and when

the leader.

b) Allow for quick decisions when time is crucial.

c) This is a less creative approach. A "Do what you are told" Obedient and strict form of

control.

d) Use when a group or member doesn't have knowledge of the practice

e) The autocratic style works best when there is no need for input. Input will not change

the decision or outcome.

Democratic:

a) The leader acts as a guide. Accepts input and seeks ideas and suggestions through

discussion.

b) Even though the leader

c) Democratic style can be problematic when the final decision is hampered by a wide

range of opinion.

d) People are more committed when involved in the process of making decisions. They

have a personal stake in the outcome.

e) This style is mutually beneficial and helps improve people skills.

Delegative/Free Rein:

a) Minimal in direction.

b) Allow decision-making by the team.

c) Works well when the team or a member is more knowledgeable about the subject.

d) This style works best with highly motivated and well trained people.

Leaders are always managers but the reverse is not necessarily the case

will use the style or a combination of styles that best fits the situation. Leadership style is

crucial to success. We find leadership all around us. Each of us will fill the role ourselves

at various times in our lives. Leadership can be found in the world of business, sports,

politics, religion and as close as home. Leaders must respond to the rapidly changin

world and meet the challenges it demands. There are different types of leaders and you

will most likely encounter many over the course of time.

Conclusion:-

Leaders should not be confused with managers. Leaders are always managers but the

reverse is not necessarily the case. Good leaders will use the style or a combination of

styles that best fits the situation


16

What needs to be accomplished, as well as, how and when, is the sole responsibility of

Allow for quick decisions when time is crucial.

This is a less creative approach. A "Do what you are told" Obedient and strict form of

Use when a group or member doesn't have knowledge of the practice

The autocratic style works best when there is no need for input. Input will not change

the decision or outcome.

The leader acts as a guide. Accepts input and seeks ideas and suggestions through

Even though the leader may have the final say the team contributes to the process.

Democratic style can be problematic when the final decision is hampered by a wide

People are more committed when involved in the process of making decisions. They

stake in the outcome.

This style is mutually beneficial and helps improve people skills.

making by the team.

Works well when the team or a member is more knowledgeable about the subject.

le works best with highly motivated and well trained people.

Leaders are always managers but the reverse is not necessarily the case

will use the style or a combination of styles that best fits the situation. Leadership style is

success. We find leadership all around us. Each of us will fill the role ourselves


politics, religion and as close as home. Leaders must respond to the rapidly changin


will most likely encounter many over the course of time.


necessarily the case. Good leaders will use the style or a combination of

styles that best fits the situation.

the sole responsibility of

This is a less creative approach. A "Do what you are told" Obedient and strict form of

Use when a group or member doesn't have knowledge of the practice or procedure.

The autocratic style works best when there is no need for input. Input will not change

The leader acts as a guide. Accepts input and seeks ideas and suggestions through

may have the final say the team contributes to the process.

Democratic style can be problematic when the final decision is hampered by a wide

People are more committed when involved in the process of making decisions. They

Works well when the team or a member is more knowledgeable about the subject.

le works best with highly motivated and well trained people.

Leaders are always managers but the reverse is not necessarily the case. Good leaders will use the style or a combination of styles that best fits the situation. Leadership style is

success. We find leadership all around us. Each of us will fill the role ourselves


politics, religion and as close as home. Leaders must respond to the rapidly changing



necessarily the case. Good leaders will use the style or a combination of


4. A dynamic theory of leadership

dynamic theory of leadership develope

Objective:-

The paper examines selected leadership literature through the lens of theory building

blocks. It identifies the role of

developing the psychological aspect of leadership.

Key Variables:-

Leadership, Leadership development

Findings:-

The paper posits that leadership is a developmental process, which is based on the

type of choice a leader makes. While choice implies that two good options are always

available from which to select, one should make choices in accordance with the

leader’s worldview, looking for affiliation (i.e. the Theta worldview), or looking for

achievement (i.e. the L

that the choices they make for organisational activities have to fit their own

worldview. Pursuing the fit between one’s worldview and planned organisational

activities ensures that leaders continu

concludes with the presentation of a dynamic theory of leadership, which is based on

the assumption that one can only strive toward truly ethical leadership with the

knowledge that this goal is beyond human

Leadership has examined three different phases within the leadership timeline: the

past, the present, and the future. Lea

binary action that divides options into two sets, the desired and the undes

according to a higher principle or value.

Conclusion:-

The paper conceptualises that leadership quality develops by making choices

according to the following two world views:

1. Theta model- Socially oriented

2. Lambda model

Thus keeping with either of the two world view a leader keeps on making choices.

These choices create memory based on which leader take decisions for future. Thus

leadership that was historically considered to be either as purely in born quality or

as purely a learned behaviour is now known to be a Dynamic leadership

development process.

always strives to achieve ideal ethical behaviour continuously.


17

A dynamic theory of leadership Development (Mostovicz, Kakabadse, & Kakabadse, A

dynamic theory of leadership developement, Vol. 30 No. 6, 2009)

The paper examines selected leadership literature through the lens of theory building

blocks. It identifies the role of the ideal goal in leadership and its importance in

developing the psychological aspect of leadership.

Leadership, Leadership development


eader makes. While choice implies that two good options are always



achievement (i.e. the Lambda worldview). Consequently, leaders need to recognise



activities ensures that leaders continuously improve their ethical behaviour. The paper



knowledge that this goal is beyond human capacity.

has examined three different phases within the leadership timeline: the

past, the present, and the future. Leadership is about making choices. The c

binary action that divides options into two sets, the desired and the undes

to a higher principle or value.


according to the following two world views:

Socially oriented

Lambda model- Personally oriented




learned behaviour is now known to be a Dynamic leadership

development process. This means that an Ideal leader does not exists but a leader

always strives to achieve ideal ethical behaviour continuously.

(Mostovicz, Kakabadse, & Kakabadse, A

The paper examines selected leadership literature through the lens of theory building-

goal in leadership and its importance in


eader makes. While choice implies that two good options are always



ambda worldview). Consequently, leaders need to recognise



ously improve their ethical behaviour. The paper



has examined three different phases within the leadership timeline: the

dership is about making choices. The choice is a

binary action that divides options into two sets, the desired and the undesired ones,





learned behaviour is now known to be a Dynamic leadership

This means that an Ideal leader does not exists but a leader


This paper puts the views on

assumption that one can only strive toward truly ethical leadership with the

knowledge that this goal is beyond human capacity

5. Transformational versus servant leadership: a difference in leader focus

Russell, & Patterson, (2004,Vol. 25 No. 4))

Objective:-

This article examines transformational leadership and servant leadership to

what similarities and differences exist between the two leadership concepts.

Key Variables:-

Leadership, Transformational leadership, Influence

Findings:-

The transformational leader’s focus is directed toward the organization, and his or her

behaviour builds follower commitment toward organizational objectives, while the

servant leader’s focus is on the followers, and the achievement of organizational

objectives is a subordinate outcome. The extent to which the leader is able to shift the

primary focus of leadership from the organization to the follower is the distinguishing

factor in classifying leaders as either transformational or servant leaders. This article

also looks at the next stage of developmental issues in servant leadership, such as the

challenges facing empirical investigation and measurement, and the changes that are

occurring in current thinking about the servant leadership approach.

The primary premise of the article is that transformational leaders tend to focus more

on organizational objectives while servant leaders focus more on the people who are

their followers. Transformational leaders transform the personal values of followers to

support the vision and goals of the organization by fostering an environment where

relationships can be formed and by establishing a climate of trust in which visions can

be shared. Idealized influence is the charismatic element of transformational

leadership in which leaders become role models who are admired, respected, and

emulated by followers. Transformational leaders inspire and motivate others by

“providing meaning and

followers to see the attractive future state, while communicating expectations and

demonstrating a commitment to goals and a shared vision. Idealized influence and

inspirational motivation are usually

leadership. Similarly, the

stimulation of employees, Individualized consideration,


18

This paper puts the views on dynamic theory of leadership, which is based on the


knowledge that this goal is beyond human capacity.

Transformational versus servant leadership: a difference in leader focus

Russell, & Patterson, (2004,Vol. 25 No. 4))

This article examines transformational leadership and servant leadership to


Leadership, Transformational leadership, Influence



leader’s focus is on the followers, and the achievement of organizational



r in classifying leaders as either transformational or servant leaders. This article






followers. Transformational leaders transform the personal values of followers to



shared. Idealized influence is the charismatic element of transformational



“providing meaning and challenge to their followers’ work” The leader inspires



inspirational motivation are usually combined to form charismatic

. Similarly, the Transformational leaders play a vital role in Intellectual

stimulation of employees, Individualized consideration,

, which is based on the


Transformational versus servant leadership: a difference in leader focus (Stone,

This article examines transformational leadership and servant leadership to determine




leader’s focus is on the followers, and the achievement of organizational



r in classifying leaders as either transformational or servant leaders. This article






followers. Transformational leaders transform the personal values of followers to



shared. Idealized influence is the charismatic element of transformational



challenge to their followers’ work” The leader inspires



combined to form charismatic-inspirational

Transformational leaders play a vital role in Intellectual


While servant leadership is an increasingly popular concept,

history the concept has been systematically undefined and lacking in empirical

support.

Conclusion:-

Both transformational leaders and servant leaders are visionaries, generate high levels

of trust, serve as role models, show conside

empower followers, teach, communicate, listen, and influence followers. Certainly,

transformational leadership and servant leadership are not antithetical theories.

Rather, they are complementary ideologies bec

forms of leadership. Nonetheless, there are significant points of variation in the

concepts. Most importantly, transformational leaders tend to focus more on

organizational objectives while servant leaders focus more on th

their followers.


19

While servant leadership is an increasingly popular concept, throughout much of its



of trust, serve as role models, show consideration for others, delegate responsibilities,



Rather, they are complementary ideologies because they both describe excellent



organizational objectives while servant leaders focus more on th

throughout much of its



ration for others, delegate responsibilities,



ause they both describe excellent



organizational objectives while servant leaders focus more on the people who are




20

rganizational Structure of TATA Motors


COMPARISON & CONCLUSION


As per article relating organizational structure &

organizational climate plays an important role on employees’

held true in case of Tata motors. They are having frequent interactions with their employees

& workers, formally & informally which

organization. Also, it helps in gathering & sharing the knowledge. As Tata motors is having

relatively flat structure, it helps them in easy interaction between various level in structure

which improves knowledge

One of the article talks about product customization & organization. It also talks about span

of control & levels in structure. As Tata motors is also operates with less levels of

organizational structure, it is

environmental uncertainty with product customization. But for Tata motors, how

environmental uncertainty effects product customization is not so clear. In decentralization,

the main Tata group has command

taken by board of directors of Tata motors itself.

Other paper defines various impacts of organizational structure dimensions on knowledge

sharing. One of the dimensions is formalization & it define

employees, their responsibilities. In Tata motors, they follow Tata code of conduct &

authority matrix which helps them to identify

making powers of an individual both functionally and fi

coordination. In Tata motors, they are having newsletters and house magazines

published monthly for each division and are circulated though out the company. Also

regular emails/correspondence from Chairman, MD and CFO are circ

regular basis. The higher level management is always accessible to the lower level.

This helps them to gather, share & spread the knowledge & ideas very easily from

level to level.

In today’s world of computerization all the activities are need

the data is to be maintained precisely to take the major management decision.

Based on this data all the activities of the all departments like production,

manufacturing, purchase, finance, operations, etc can be interlinked. Thus th

gives the importance of Information Technology on organizational structure &

mostly about Enterprise Resource Planning (ERP). During the initial years in 90s,

TATA Motors was not having any efficient software that will monitor all the activities

of the organization. Nowadays, the TATA Motors is using various software like for

ease of all these activities like ERP & SAP also various design software like CATIA, UG,

AUTO CAD, etc.


21

CONCLUSION

ith Organisation Structure

As per article relating organizational structure & climate with knowledge management,

organizational climate plays an important role on employees’ behaviour


& workers, formally & informally which helps employees to feel more bounded with



which improves knowledge & ideas sharing within organization.



organizational structure, it is having narrow span of control. Article also relates



the main Tata group has command over Tata motors, but all strategic actions & plans are

taken by board of directors of Tata motors itself.


sharing. One of the dimensions is formalization & it defines specific role & duties for


authority matrix which helps them to identify different responsibilities and decision

making powers of an individual both functionally and financially. Other dimension is



regular emails/correspondence from Chairman, MD and CFO are circ



In today’s world of computerization all the activities are need to be computed and all



manufacturing, purchase, finance, operations, etc can be interlinked. Thus th






climate with knowledge management,

behaviour. The same concept


helps employees to feel more bounded with





having narrow span of control. Article also relates



over Tata motors, but all strategic actions & plans are


s specific role & duties for


different responsibilities and decision

nancially. Other dimension is



regular emails/correspondence from Chairman, MD and CFO are circulated on



to be computed and all



manufacturing, purchase, finance, operations, etc can be interlinked. Thus the article







This enables TATA Motors to be more efficient in delivery, payme

execution, as well as in maintaining in

inventory management systems. The company has become one of the best in the

supply chain management system due to incorporation of these IT solutions.

All the departments of TATA Motors are interconnected with intra networking

system, as well as all the divisions are connected with internetworking system. This

enables the easy and fast flow of information among the employees, management

including the board of directors

various articles, newsletters about the wellbeing of the employees, promotions,

deaths, etc periodically. This keeps all the employees to be connected to the

organization all the time and gives them the lates

around organization.

In one paper, it mostly focuses on innovations and how it helps to improve

organizational structure and its stability. In Tata motors, they also focuses on

innovations, as likely said in introduction com

models in market and they became a boom. For example, Tata Nano, it is a dream of

its chairman Mr. Ratan Tata, to make a car for middle class families in Rs. 1

they launch it in market successfully and it cr

worldwide. Also, other models like Tata Ace, these are firstly India's first

indigenously developed mini

innovations creates some kind of spirit to work for organ

responsibility and enthusiasm, sense of belongingness towards organization. All the

officers as well as employees of Tata motors started feeling ‘Nano’ as their own

project. Due this reason, Mr. Ratan Tata was able to deliver his dream in

within stipulated time period. Research and Development department of Tata

motors is working continuously on designing and developing new innovative product

range. Various joint ventures of the company also working for the same goal like

Jaguar, Land Rover, Fiat, Xenon, etc. These practices help company to strengthen its

organizational structure.


The group chairman Ratan Tata is responsible for transforming Tata Motors Ltd. into

a Group strategy think

businesses. His vision of making a truly international company brought in a foreign

CEO. As per one of the paper there is no such ideal leader rather one evolves as an

ideal leader with experience. Initially his

assumed to be one of the best in the world. He is currently part of 203 board

members in 20 different organizations across 23 different industries.


22

This enables TATA Motors to be more efficient in delivery, payme

execution, as well as in maintaining in-house inventory as well as ware house



ents of TATA Motors are interconnected with intra networking



including the board of directors, vendors, suppliers. The company is publishing



organization all the time and gives them the latest updates and happening in and



innovations, as likely said in introduction company has introduced various innovative


its chairman Mr. Ratan Tata, to make a car for middle class families in Rs. 1

they launch it in market successfully and it creates a blast in automobile industry


indigenously developed mini-truck & Tata Magic is one of its own kinds. This type of

innovations creates some kind of spirit to work for organ



project. Due this reason, Mr. Ratan Tata was able to deliver his dream in




and Rover, Fiat, Xenon, etc. These practices help company to strengthen its

organizational structure.

ith Leadership Style


a Group strategy think-tank and a promoter of new ventures in high technology



ideal leader with experience. Initially his decisions were criticized but now he is



This enables TATA Motors to be more efficient in delivery, payments, order

house inventory as well as ware house



ents of TATA Motors are interconnected with intra networking



, vendors, suppliers. The company is publishing



t updates and happening in and



pany has introduced various innovative


its chairman Mr. Ratan Tata, to make a car for middle class families in Rs. 1 lakh. and

eates a blast in automobile industry


truck & Tata Magic is one of its own kinds. This type of

innovations creates some kind of spirit to work for organization with full



project. Due this reason, Mr. Ratan Tata was able to deliver his dream in reality




and Rover, Fiat, Xenon, etc. These practices help company to strengthen its


promoter of new ventures in high technology



decisions were criticized but now he is




Earlier Tata Motors was seen as a sleepy company. Its products w

few said they’d buy their cars for personal use. Its trucks were also bought for price

first. Reliability was a lesser consideration. But since then the company has had a

slew of successful launches

(and the Nano). It has also gone and bought a Spanish bus maker, Hispano Carrocera.

During this time Tata Motors has also realised it needs to globalise aggressively. The

man leading the charge is Carl

European operations and he is trying to internationalize the company in true sense.

Every plan in the company is first evaluated under Enterprise Risk Management

team. The parent group doesn’t have much control over the TATA motor and it

CEO of the company who is the boss. He draws a hefty salary of over 34 lakh plus

bonus and incentives per month and is on a contract period of three years. He is a

true leader with a clear vision of bringing TATA motors on international grounds. He

pays a lot of focus on R&D. He can be said as a leader first while the group chairman

can be said to be servant first. Both this styles are complementary to each other.

Before Mr Forster joined this company, reported its first annual loss in seven years

in the year ended March 2009, since then he has been doing a fairly good job

continue to increase sales while simultaneously cutting costs. He doesn’t spend too

much time with the end customers but addresses the whole company quarterly.


23

Earlier Tata Motors was seen as a sleepy company. Its products were dependable but



slew of successful launches – the Indica Vista, the Manza, its range of world trucks



man leading the charge is Carl-Peter Foster who was in charge of General Motors’



team. The parent group doesn’t have much control over the TATA motor and it










ere dependable but



range of world trucks



of General Motors’



team. The parent group doesn’t have much control over the TATA motor and it’s the











ANNEXURE

1. Correspondence with I

Communication from group member to interviewee through e

Reply from interviewee to group member through e

the official to 25/8/2010 over phone)


24

with Interviewee

Communication from group member to interviewee through e-mail

Reply from interviewee to group member through e-mail. (The interview date was rescheduled by

the official to 25/8/2010 over phone)

mail. (The interview date was rescheduled by


We conducted the second interview telephonically with

(Product Development – Electricals) Pune on 29


25

ond interview telephonically with Mr Rakesh Kapoor , Deputy Manager

Electricals) Pune on 29th

August 2010 at 1530 hrs.

Mr Rakesh Kapoor , Deputy Manager


2. Interview Questionnaire

1. What are the organization’s goals and Mission?

Vision

"Best in the manner in which

our value system and ethics.“

Mission

“To become a world class automotive engineering and product

and enable Tata Motors to become a world class automotive company.”

2. How many divisions does TATA Motors have? Are the Divisions of the organization

based on geographical situation or based on products differentiation? Or is it a mix

of both?

TATA MOTORS has a mixed organizational structure. There are two main divisions

based on product type viz Commercial vehicle division and Passenger cars division.

Both these divisions have been subdivided as per geographical location into north

south east and west zone.

3. What are the opportunities to get promoted over the years? What

progression program/policy deployed in TATA Motors?

There is a very great scope of growth along with the company. On an average a

normal middle level employee is promoted every 3

exceptional record and good performan

4. How much support is made available to individuals for

such as – professional courses, seminars and trainings, higher education?

Tata does provide research opportunities. It encourages research based projects. It

has tie ups with various universities. Scholarship of 50% up to 100% is provided by

the company for higher edu

5. Who decides the work distribution? And How?

The work is distributed in based on strategic activities or operational/routine

assignments. The strategic level activities are taken up by top management. The

operational activities are distributed to middle and lower level. This becomes the

base of their yearly performance appraisal.

6. Are new ideas from employees welcomed? If an idea is found good enough then is

it implemented?

Yes new ideas are welcomed from

They have a suggestion boxes to invite new ideas. Few ideas have also been


26

Questionnaire

What are the organization’s goals and Mission?

"Best in the manner in which we operate, best in the products we deliver, and best in

our value system and ethics.“

“To become a world class automotive engineering and product development centre


How many divisions does TATA Motors have? Are the Divisions of the organization



sed on product type viz Commercial vehicle division and Passenger cars division.


south east and west zone.

What are the opportunities to get promoted over the years? What

progression program/policy deployed in TATA Motors?


normal middle level employee is promoted every 3-5 years. An employee with

exceptional record and good performance is promoted on an average of two years.

How much support is made available to individuals for professional development

ofessional courses, seminars and trainings, higher education?



the company for higher education. They also have in house training programs.

Who decides the work distribution? And How?




base of their yearly performance appraisal.

Are new ideas from employees welcomed? If an idea is found good enough then is

Yes new ideas are welcomed from the employees and they are rewarded suitably.


we operate, best in the products we deliver, and best in

development centre,


How many divisions does TATA Motors have? Are the Divisions of the organization



sed on product type viz Commercial vehicle division and Passenger cars division.


What are the opportunities to get promoted over the years? What is the career


5 years. An employee with

ce is promoted on an average of two years.

professional development

ofessional courses, seminars and trainings, higher education?



cation. They also have in house training programs.




Are new ideas from employees welcomed? If an idea is found good enough then is

the employees and they are rewarded suitably.



implemented. (When asked very trivial example was given, like change in shape of

envelope).

7. How much control of parent company is

TATA Motors is more or less independent. All the strategic decisions are taken by

Board of directors of TATA motors.

8. What is the reporting procedure and flow

9. How often management interacts with employees?

The management interact

addresses the whole company thrice a year, MD visits each division quarterly.

Accordingly the lower management have meeting with employees on day to day

basis.

10. How often different departments comes toget

Every month there is a ManCom meeting. Apart from that there are various cultural

activities throughout the year.

11. Is the interaction among employees (at different posts) only limited to formal

levels or interaction is there on

The functional group meets thrice a year for a cultural event with families. The

welfare association conducts various activities throughout the year which involves

employee and their family including different sport activities.


27


How much control of parent company is there on TATA Motors?


Board of directors of TATA motors.

What is the reporting procedure and flow?

How often management interacts with employees?

The management interact with the employees on a regular basis. The chairman



How often different departments comes together and at what level?


activities throughout the year.

Is the interaction among employees (at different posts) only limited to formal

levels or interaction is there on personal level also?



employee and their family including different sport activities.



with the employees on a regular basis. The chairman



her and at what level?


Is the interaction among employees (at different posts) only limited to formal




12. Is there any difference in working styles of an Indian CEO and a Non Indian CEO?

No, there is no much difference in their working.

13. How the span of control of managers at TATA Motors?

At corporate level the span of control varies from 1:5 to 1:7. While at t

lower level management it varies as 1:10. This indicates that the organisational

structure is somewhere between flat and hierarchical structure.

14. To what extend decision making power given to a department? How much does

the top level interfere in working within a department?

Each employee is bound by TATA Code of conduct and authority matrix which clearly

identifies different responsibilities and decision making powers of an individual both

functionally and financially.

15. In general, in TATA Mo

colleagues/juniors?

Yes, they have a mentoring program which enables each employee to empower

themselves in the functional areas.

16. How the organisation communicates effectively with the employees? How lo

does it take for a message to reach from top of the organization to bottom and vice

versa?

They have newsletters and house magazines published monthly for each division and

are circulated though out the company. Also regular emails/correspondence from

Chairman, MD and CFO are circulated on regular basis. The higher level management

is always accessible to the lower level.

17. What practices do you implement during conflicts? Have you ever had to make a

decision without knowledge of all the needed data?

In case of conflicts the action plan is chaired by top management.

18. How do you approach complex problems? Like In case of NANO’s Singur Plant,

what factors prompted to cancel the project there in spite of huge investment

already incurred?

They have an Enterprise risk management (ERM) team that studies and evaluates

different aspects of any occurrence on operational, functional and strategic

background.

19. Is TATA Motors a product oriented organization or people oriented organization?

TATA Motors is more of a


28

there any difference in working styles of an Indian CEO and a Non Indian CEO?

No, there is no much difference in their working.

How the span of control of managers at TATA Motors?

At corporate level the span of control varies from 1:5 to 1:7. While at t


structure is somewhere between flat and hierarchical structure.

To what extend decision making power given to a department? How much does

e in working within a department?



functionally and financially.

In general, in TATA Motors, whether the managers act as a mentor to their


themselves in the functional areas.

How the organisation communicates effectively with the employees? How lo





is always accessible to the lower level.

What practices do you implement during conflicts? Have you ever had to make a

decision without knowledge of all the needed data?

case of conflicts the action plan is chaired by top management.

How do you approach complex problems? Like In case of NANO’s Singur Plant,


ise risk management (ERM) team that studies and evaluates


Is TATA Motors a product oriented organization or people oriented organization?

TATA Motors is more of a product oriented organization.

there any difference in working styles of an Indian CEO and a Non Indian CEO?

At corporate level the span of control varies from 1:5 to 1:7. While at the middle and


To what extend decision making power given to a department? How much does



tors, whether the managers act as a mentor to their


How the organisation communicates effectively with the employees? How long





What practices do you implement during conflicts? Have you ever had to make a

How do you approach complex problems? Like In case of NANO’s Singur Plant,


ise risk management (ERM) team that studies and evaluates


Is TATA Motors a product oriented organization or people oriented organization?


LOG OF VISIT

Whom visited

1.

2. Rakesh Kapoor

Deputy Manager (Product Development

R&D Department, Pune

Tata Motors

Pune

Who Visited

1.

2.

When Visited

First Interview

Date

Time

Venue

Second Interview

Date

Time

Nature


29

Mr. Rajesh Aidoor,

GM (Internal Audit & ERM)

TATA Motors Limited

4th

Floor, One Forbes,

1 Dr VB Gandhi Marg, Fort

Mumbai – 400 001

Rakesh Kapoor

Deputy Manager (Product Development – Electricals)

R&D Department, Pune

Tata Motors

Pune - 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

Electricals)


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