HUMAN RESOURCES MANAGEMENT

TATA MOTORS& It’s

HR POLICIES

By:Supraneet Arya

PGDM I-YEAR (Trimester-2)PGDM/09/031

Ajay Kumar Garg Institute of Management, Ghaziabad.

Presentation Scheme• Profile of Tata Motors• Global Reach• Product Range• Technological Resources• Value Chain & Value System• Achievements• Diversification• Human Resources • HR Philosophy and Policies

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TATA MOTORS

TATA MOTORS We Drive By Your World Everyday

Tata Motors established in 1945, and entered into collaboration with Daimler Benz of Germany in 1954 to manufacture commercial vehicles.

The collaboration ended in 1969. Tata Motors has since grown strength to strength. It is the largest company in the Tata Group now, with a total income of US$ 3.4 billion in the year 2007-08.

More than 3 million Tata Vehicles ply on the Indian roads making Tata a dominant force in the Indian automobile industry.

Tata Motors is India’s only fully integrated automobile manufacturer with a portfolio that covers trucks, buses, utility vehicles and passenger cars.

The company has spread its manufacturing facilities across India by setting up plants at Jamshedpur, Pune, and Lucknow. This is coupled with nation-wide sales, service and spare parts network.

Tata Motors’ Engineering Research Center has over 900 scientists and engineers dedicated to product and process development, technology upgradation and new product introduction.

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Malaysia*Thailand

Bangladesh *Nepal, Sri Lanka

Kenya*

Russia*Ukraine* U.K.

Italy

Senegal

Afghanistan Uzbekistan

Brazil

South Africa*

Egypt

Saudi Arabia Iraq, Iran

China South Korea*

LATAM

West Africa

North Africa

West Europe

Central Asia East Asia

South Asia

South East Asia West Asia

East Africa South Africa

* Assembly Operations also

OTHER COLLABORATIONS/M&A & JVs• Tata Daewoo Commercial Vehicle• Hispano in Spain & Marcopolo In Brazil• JV with Jardine Matheson for

ConcordeMotors• Technology Tie Ups at Spain,Italy

Global Footprint

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TATA Motors: Commercial VehiclesTATA Motors: Commercial Vehicles

Product Range

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Technological Resources R & D establishments at Jamshedpur, Pune & Lucknow – over

1400 engineers.

India’s only certified crash test facility for cars and hemi

anechoic chamber for testing of noise and vibration.

Tata Motors European Technical Centre (TMETC) set up in 2005

– primarily involved in design engineering and development of

products, supporting Tata Motors skill sets.

Tata Daewoo Commercial Vehicle Co. has its R&D facility in

Gunsan, South Korea.

Hispano Carrocera has its R&D facility at Zaragoza in Spain.

Value Chain & Value System

Inbound

Logistics

Operations Marketing ServiceOutbound

Logistics

Suppliers , Contractors

SAP , VCM

SAP , CRM - DMS

Strategic Alliances

Transporters, Convoy Drivers Association

Dealer Network, Marketing Research Firms, Vehicle

Financing

Regional Warehouses, Dealer Workshops, Distributors, TASS

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Inbound Logistics Long term contract with service provider’s – transporters and

agents.

Personnel at regional offices for over seeing the smooth transit of

goods.

Transparency and monitoring through deployment of IT – all

transactions through SAP.

Efficient storage facilities – easy storage and retrieval.

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Operations Capital Equipment Manufacturing division – tooling development

capabilities of global standard.

Apprentice Trainee Course – ensuring stable source of skilled

manpower.

Automated manufacturing processes.

Distributed manufacturing – Assembly units at South Africa,

Thailand, Bangladesh, Brazil etc.

Maintenance – technical competence.

Capacity Utilization – Mercedes Benz cars make use of Tata

Motors paint shop facilities.

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Outbound Logistics Stockyards, all across the country.

Long term contracts with transporter’s – higher volume of

business to transporters ensures competitive price.

Regional Sales Office and Vehicle Dispatch Section linked

through SAP.

Efficient security system for prevention of any kind of pilferage.

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Marketing & Sales Structured approach to understanding the requirements of individual

customers . Clear identification of product requirements, leading to

development of innovative products – Tata 207 DI, Tata Ace. Independent teams for addressing the requirements of institutional

customers – Defense, State Transport Units. Helping to augment the scarce resources – Fiat selling vehicles

through Tata dealerships, in return Tata has access to Fiat’s

technology and unutilized capacity. Quick assessment of the changing market dynamics and consumer

preferences – Tata 407 LCV

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Service Easy availability of spare parts.

Efficient collection of data from field and communication to the

respective plants.

Pan India presence, as well as global presence.

Large network of workshops – Dealer workshops and TASS.

Training facilities – for dealer end and TASS personnel.

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Technology Development Approximately 2% of the annual profits of the company invested

in research and development.

Knowledge portal – helps employees keep abreast with the latest

technologies.

Extensive prototype building and testing facilities.

Strategic partnerships – MDI (France), Fiat etc.

Formal benchmarking process.

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Car Plant Pune bags Gold Category Award in National Productivity Contest.

The sole winner of the JRD QV Award 2005 was the commercial vehicle business unit, or CVBU, of Tata Motors.

PCBU's business excellence initiative has come into its own.• Serious Adoption Award in 2004 • Active Promotion Award in 2005

Tata Motors have crossed the level of 60% to win the JRD-QV award in 2001, 2004 & 2005 respectively.

Achievements

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Achievements (cont..)

The company has the only world-class crash facility in Asia outside Korea and Japan.

Developed an A-ECU (Electronic Control Unit) and low-cost accessories that would effectively manage critical engine and vehicle systems without calling for a full-fledged and expensive conventional ECU .

Striding towards new emission standards.

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Diversification

1977 – First CV from Pune plant. 1983 – First HCV rolled out. 1989 – First LCV (Tata 407) launched followed by

Tata 608. 1991– First passenger car Tata Sierra launched. 1992 – Tata Estate launched. 1994 – Tata Sumo launched. 1997 – Tata Sierra Turbo launched. 1998 – India’s first SUV Tata Safari launched.

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Diversification (cont..)

1999 – India’s first indigenous Passenger Car Indica launched.

2001 – Second Generation Indica V2 launched. 2002 – Tata launched Indigo. 2006 – Launch of Indigo Marina. 2008 – Tata acquired the Jaguar Land Rover

businesses from Ford Motor Company for net consideration of US $600 million

2008 – Launch of Suma Grande. 2008 – Launch of Nano at ninth Auto Expo. 2009 – Tata Winger Launched. 2009 – Next Generation Indigo Manza Launched.

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Human Resources

Vast pool of technically competent engineers and managers.

Focus on development of technical capabilities – Technical

Training Centers, Alliance with technical Institutes.

Focus on development of managerial capabilities – MTC’s,

executive training programs at premier business schools.

Career advancement schemes – ESS, FTSS

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HR Philosophy

Proper utilization of assetsMotivating people to work hardSelective hiringJob fittingTraining programBetter working environment

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HR Policies Caring, show respect, compassion and humanity for

colleagues. Work cohesively with colleagues across the group Encourages self-sufficiency. Employees' relatives at Pune have been encouraged to

form various industrial co-operatives. The Tata Motors Grihini Social Welfare Society

caters to employees' women dependents‘ so as to enable a housewife earn a modest amount without neglecting their traditional duties towards the family.

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HR Policies (cont..)

Executive Selection Scheme (ESS) - fast track programme for accelerated growth.

In-house vocational training and apprenticeship programme trains the technicians.

Rotational assignments and cross-functional mobility allow employees to grow.

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Executive Selection Scheme (ESS)

a. ESS is a fast track programme for accelerated growth of high potential professionals. This facilitates their early advancement to challenging and visible assignments through a very systematic procedure.

b. Candidates selected gain a huge lead in terms of promotion and learning. They are promoted to Manager’s level thereby saving almost 10 to 13 years of work time.

c. The successful candidates are relieved from their current jobs and put on various project based training programmes under the guidance of senior managers in the company.

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Executive Selection Scheme (ESS) (cont..)

d. If the candidates do not possess management education, they undergo a 4 months MEP at IIM, Ahmedabad. After successful completion of training the candidates are mandatorily rotated across departments to acquire general management skills.

e. The ESS is a jewel in Tata Motors overall profile as it provides a platform for every employee of the company to perform and achieve maximum potential so as to exploit it further for the growth of the company.

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Thank You!

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