ORGANIZATIONAL STRUCTURE OF TATA MOTORS

Presented by Group II – Section “C”

1994

• TATA sumo launched

• JV with Mercedes

2004

• Acquired Daewoo CV

• Acquired 21% in Hispano

2008-09

• Acquired JLR

• New Nano plant

• JV with Fiat

• Acquired 100% in Hispano

Journey of Tata Motors

Survival Strategies

  Specialist Strategy Generalist Strategy

r-Strategy

TELCO                                           1948-Steam Road Rollers              1954- Heavy Trucks (Collaboration with Daimler-Benz)                                                                                                        1995- Tata TL 4X4, India's first Sports Utility Truck (SUT)            2005-Tata Ace, India's first mini truck launched                        

K-Strategy

1994- Tata Sumo (MUV)                                                 1998- Tata Safari (1st Indian SUV)                                           2009- Tata Nano 

1991-Tata Sierra         1992- Tata Estate               2000- Tata Indica                 2007- Tata Winger

Greiner’s Model

Growth through Creativity

1954-Technical and Financial Collaboration with Daimler Benz                                                                                                              1959- R&D setup in Jamshedpur                                                       1966- Setting up of the Engineering Research Centre at Pune to provide impetus to automobile Research and Development.

Crisis of Leadership 1969- End of collaboration with Daimler Benz

Growth through Direction 1972- Sumant Moolgaonkar led the company, building the brand image and reputation

Crisis of Autonomy 1987- TELCO dipped in profits due to its ambitious expansion plans which increased organization size

Growth through Delegation 2001- 2007- Recovery  of lost grounds led by Managing Director Ravi Kant  

Crisis of Control

Growth through Coordination 2005- Nano Project by coordination among Business Units

Crisis of Red-Tape

Growth through Collaboration 2007 Onwards Formation of New Product Development teams of Tata Manza, Tata Aria, Indica Vista Electronic  

Organizational Design

Functional DivisionsCommercial Divisions

Organizational Chart

ERC: Engineering Research Center PCBU: Passenger Car Business Unit CVBU: Commercial Vehicle Business Unit

Surviving the Crisis of 2001

Lost sales compounded by heavy investment for its entry into the passenger car business, the cost of complying with new emissions standards, and an increasing threat from overseas competitors—caused Tata Motors to shock the markets with a 5 billion rupee ($110 million)loss for the fiscal year ending March 2001.

3 phase Recovery strategy was started in 2001 Phase 1: -Stem the bleeding by reducing the

cost of operation Phase2: Consolidation of Market position Phase3: Going outside India and expanding

operations internationally

Cost Reduction Team

Steering Committee(Top Level

Management)

Steering Committee(Top Level

Management)

Central Coordination TeamsProjects Team Functional

LeadAGM Divisions Rep(s)ManagerManager

Central Coordination TeamsProjects Team Functional

LeadAGM Divisions Rep(s)ManagerManager

Staffing•Cost Engineers•Plant Rep.•MPC Members•Expert Members

Staffing•Cost Engineers•Plant Rep.•MPC Members•Expert Members

Functional Sponsors (Div. Heads)

•Engg. Research Center•Strategic Sourcing•Manufacturing•Finance•Vendor Dev.•Product. Engg.•Pricing Comm.

Functional Sponsors (Div. Heads)

•Engg. Research Center•Strategic Sourcing•Manufacturing•Finance•Vendor Dev.•Product. Engg.•Pricing Comm.

Engines Transm. Welding Trims Veh. Assy. ElectronicsEngg Research

Center Manager Manager Manager Manager Manager Manager

Vendor Development Manager Manager Manager Manager Manager Manager

Mat. Pricing Committee Manager Manager Manager Manager Manager Manager

Quality Assurance Manager Manager Manager Manager Manager Manager

Startegic Sourcing Manager Manager Manager Manager Manager Manager

Different teams formed

for differen

t aggrega

tes

Different teams formed

for differen

t aggrega

tes

Key Features of TML Org. Culture Corporate Governence by following Tata

Business Excellence Model Long term strategic objectives followed through

Balance Score Card Methodology Maintaining highest standard of ethics by

following Tata Code of Conduct and maintaining a well defined Whistle Blower Policy

Focus on generating innovative ideas across the organization for growth and development: Idea Generation Sessions

Maintaining a strong Management-Union relationship (Wages increased every third year)

Key Features of TML Org. Culture Focus on employee development (FTSS,

TAS, Talent Pool etc.) and Community Development (Tata Motors Grihini Udyog, Industry Cooperatives, Tata Motors' Mobile Medical Unit )

Long term strategic partnership with vendors (Early Vendor Identification Program)

Focus on Teamwork and cross functional approach- Various SDT’s, CFT’s formed across the organization

Well defined CRM and SRM policy

Financials(2006-10)

Turnover=37,447 Rs Crores YoY growth in sales=14.84% Slight shift in priority--from production of

passenger vehicles to commercial vehicles

YoY increase in PAT=10.01% Increase in D/E ratio from .54 to 1.04 Increase in turnover per employee from

Rs 68 lacs to Rs 81 lacs

Effect of Acquisitions

TMG’s turnover=95,567 Rs Crores Acquired Daewoo for 465 Rs Crores in 2004 TATA Daewoo’s net revenue=2679 Rs Crores Acquired Ford Jaguar and Land Rover in 2008

for $2.65 bn Doubled the number of wholesale volumes of

JLR, since Apr 2009, to 59200 and revenue to 16060 Rs Crores

Acquired 79% remaining share in Hispano Carrocera in 2009

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