Tata MotorsANALYSIS SECTION-C GROUP-4

ABHISHEK RAJ (PGP/19/124)CHANAKYA KHANDELWAL (PGP/19/134)HIMANSHU DHINGRA (PGP/19/144)PIYUSH JAIN (PGP/19/155)SAKSHI BANSAL (PGP/19/166)UTKARSH (PGP/19/177)

TATA Motors

Light Commercial Vehicles•Goods Carrier•Passenger Carrier

Heavy Commercial Vehicles•SK 1613/36•LPK 2516/38•LPK 1618

•LPK 1618/36

Passenger Vehicles• Tata Indigo•Tata Manza•Tata Winger•Tata Nano

Military Vehicles•Tata LSV (Light Specialist Vehicle)

•Tata Mine Protected Vehicle (4×4)

•Tata 2 Stretcher Ambulance

DOM

AINS

, PRO

DUCT

S &

ENVI

RONM

ENT

Variable Degree of Uncertainty

Environmental Variable

Complexity

Highly Complex• Large number of suppliers• Wide product range• Large dependence on technology• Market is highly dependent on external

factors

Dynamism

Highly Dynamic• Technology changes rapidly• Global expansion of Tata Motors

Richness

Low Richness• Various established automobile

manufacturers in market• Battle to attract customers

Structural Variable

Complex Structure

High Differentiation

High Integration

Decentralized decision making

Mutual adjustments

TATA Motors: Current Strategic Focus and Structure

Functional StrategyEfficient and Low cost Vehicles

Skill in mergers and acquisitionsLocation in a developing country-India

Advanced R&D FocusFrugal Engineering and Innovation

Business StrategyCheap Cars to Expensive Model of

CarsEconomies of Scale through INR 28.8

billion investmentINR 60 billion for expansion in

Manufacturing plants

Corporate StrategyRelated Diversification in a new

customer base.JVs and Acquisitions to explore new

domains

Global Expansion StrategyEntering countries with similar

demands-South Africa, Thailand, Argentina though JVs or acquisitions

Mass Customisation optionRetaining Brand Value

Product Reliability, Service Network, Channel Reach

Matrix form involving functional and divisional

forms

Functional Division are divided in: Finance, Strategy

, Engg, Comm, HR, Legal

Functional Division construct strategic framework on

which business sectors are based: Commercial Unit BU,

Passenger Unit BU and International BU.

Lesser levels in organisation structure provide a better

platform for innovation and customisation of products

Consensual type of management style with

transformational leadership

How do structure and culture complement each other? Decentralisaton

Closer links with people

Democratisation and participation

Accountability

More transparency

More efficiency

Better services

Product excellence

Structure• Decentralisation• Formalisation(Tata Code of Conduct)• Coordination• Communication

• Innovation

How culture helps in Differentiation?

TATA BUSINESS EXCELLENCE

MODEL

Measurement, analysis and knowledge management

To better performance at all levels

Leadership

Senior leaders focus on

vision and missionEthical

behaviorConducive environme

ntFuture leader

Strategic Planning

Plan, implement, measureResolve issues at root level

Process ManagementIdentification of core and distinctive

competenciesContinuous

improvement of business Workforce focus

Employee engagement & developmentConducive environment

Human Resource Planning

Customer and market focusDevelop and maintain relationsListening, participatory learning,

performance excellenceCustomer understanding

Business ResultsFinancial, market, HR

performance measurement and improvement

Tata Nano- Customer focus (Middle class

Indian population) and innovation

Whole organization-personal achievement

Jaguar XF1- Innovation and Excellence- Best

Executive car in 2008

Technology used and how it translates to specific organization structure

Individual Level •Recruitment generally from NITs, IITs or reputed RECs•6 months training program

Functional Level •Assembly line for car manufacturing•Self-directive teams (SDTs) to solve issues and participate in competitions

Organizati-onal Level

•Highly standardized mass production system•New Product Introduction (NPI) and Cross-functional teams (CFT) consisting of high performing individuals.

Structural Characteristics

Mass Production Technology

Level in the hierarchy

4

Span of Control of CEO/MD

7

Span of control of first-line supervisor

30

Ratio of managers to non managers

1-5

Approximate shape of organization

Relatively tall, with wide span of control

Type of structure Mechanistic

Cost of operation Medium

Technology used and how it translates to specific organization structure

High formalization• 12 levels in the hierarchy from AM to MD

High centralization• Most of the important decisions taken at above VP level

Little training or experience• 1 month of classroom training and then hands-on

Wide span• Span keeps increasing as we go lower in the hierarchy

Vertical, written communications• Generally through mails (unless urgent)

Routine Manufacturing

Mechanistic Structure Technolo

gy •Long linked

Task Interdependen

ce•Sequential

Coordination Type

•Planning and scheduling

Strategy for reducing

uncertainty•Slack resources

Coordination Cost •Medium

Domain: Highly uncertain environment: Complexities in political, macro-economic factors (general) as well as changing technology (dynamism)

Core Competency: Strong reputation/ legacy and inspirational leadership team

Strategy: Low cost business level strategy and follow related diversification in newer markets to hedge against general environment complexity

Technology: High Technical complexity with mass production system. Slowly moving towards advanced manufacturing systems with CAD/ CAM technologies.

Present scenario: Mechanistic Structure

Need to move towards more organic structure - Adapt to technology breakdowns in advanced manufacturing process.

Technology Imperative

Move towards more Global Product structure to implement international strategy.

Culture: “Learning organization” through TBEM Model to ensure knowledge flow.

Summary: Impact on Organizational Design and Recommendations

Thank You.