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TATA MOTORS INTRODUCTION
Tata Motors is one of the companies under TATA GROUP. It is a multinational company and its headquarters are in Mumbai, India. Also named as TELCO (TATA Engineering and Locomotive Company). TATA MOTORS stand fourth position as truck manufacturer, second as bus manufacturer, India's number one in automobile and commercial vehicle sector, it was ranked by OICA as 19th largest automaker (year 2007) and stands second in commercial vehicles in world.
BACKROUND TO CHANGE IN MOTORS INDUSTRIES
Automobile industry is one of very competitive area in the world.
1: According to environmental sympathizers driving a car simply mean people to carry on travelling alone selfishly, where on other hand they can go for public transport, which they prefer as more ecologically sound. As the answer to this companies introduced 'hybrid cars' that produce lesser pollution even then a public transport.
2: government is getting more conscious about the environmental pollution due to fuel emissions by various automobiles.
Obama: U.S. auto industry must lead on 'clean cars'. (Obama: U.S. auto industry must lead on 'clean cars'. Martin LaMonica. 30 March 2009.[Internet] .Available on: http://news.cnet.com/8301-11128_3-10207074-54.html)
3: to stay in the competition is always need to get one step ahead then other. And to do better then other are doing. So to merely stay in reputation and exist in industry companies are producing green (hybrid) vehicles.
DRIVERS TO CHANGE IN TATA MOTORS
We can take globalization as an external factor to change
As more and more companies are becoming ecofriendly and many processes are going on to reduce the pollution caused industries. Tata group is also steeping up toward efforts for reducing its carbon footprint across its whole value chain process.
India's oldest industrial house is stepping up efforts to reduce the quantity of carbon footprint from all across its value chain - from manufacturing processes to distribution networks to eco-friendly consumer products.
Toyota introduced its 'hybrid car range'. And more and more car companies are introducing hybrid and eco friendly vehicles into market that are becoming very friendly and attract more and more customers. So, customers prefer to buy such a vehicles rather to travel in a public transport. so get those customers targeted tata motors is transforming itself fully as eco friendly company not only producing eco friendly vehicles but its factories surround natural habitats ,showrooms are build with environmentally sustainable material
They are good when their is stable environment. And you have to do same tasks and technologies in daily routine. It has well defined structure always centralized. This always result in rigid and clearly defined jobs, people are to work as machines. TATA group is among of the largest companies in India, it was one considered as slow and bureaucratic until rattan TATA was selected as chairman in the year 1991. He bought some changes in the group in all its sub divisions including TATA motors hand also laid foundation as TATA business excellence model (TBEM)
STRENTHS AS BEING BURAUCRATIC ORGANIZATIONS
1. RULES AND BEHAVIOUR IS STRICT
There are standards in rules and everyone has to follow the same rules and procedures. That creates discipline in the organisation and there is mainly centralized control so there is always easy to control staff. TATA MOTORS is among the world's top automobile companies. Until control of TATA GROUP was taken by Ratan Tata it was purely a bureaucratic organisation. And till 1991 however there were many controversies related to TATA it was India's largest organisation. As its way of working was same as it was during the period of its establishment
2. CONTROL AND MONITORING IN THE HANDS OF TOP MANAGEMENT
In this type of organisation depend upon the decisions taken by top management. If they are educated, and wise then the results are favourable to them.TATA GROUP always had centralized control all the major decisions are taken by its leader i.e. Ratan tata and his associates at upper level.
"I had a strong conviction that our engineers, who could put a rocket into space, could produce our own car."(Ratan Tata, [INTERNET], Available on: http://www.tatamotors.com/50years/people_rnt.php). The company have strong belief in its workers that they can do their best in achieving the company's target. And this is one of the main reason that we can say that company have such a strong position in market worldwide.
4. STAFF DIVISION AND DIVISION OF POWER
Every person who is working has defined power and responsibility of according to his status and position within the organisation. So there are no major conflicts between the employees regarding power or rights. As in the case of TATA MOTORS it is totally controlled by its chairman and employees and engineers was selected according to their work experience and their expertise.
WEAKNESSES THAT COMES WITHIN ORGANISATION
1: LACK OF INNOVATION
Tasks are always so fixed .as there is no innovation inside the organisations. Because involvement of employees is less this makes them feel demotivated and discouraged. They are not fully utilized.
2: MAKING DECISION IS NOT A EASY TASK IT IS VERY SLOW
Is centralized and all the decisions are monitored and carried out by upper level. There is centralized and everyone has to follow the same rules and procedure.
In simple words organisational development can be change or development in the organisation. it is a planned process by adopting recognized theories and research as told by Warner Burke in this definition:-"A planned process of change in an organization's culture through the utilization of behavioral science technology, research and theory." (Warner Burke).further more it is clarified through a definition by Richard Beckyard:-"An effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization's 'processes', using behavioral science knowledge." (Richard Beckhard)
Comparison of alternative forms of organizational development
Transformational development is done by changing structure of organisation and culture .for example changing hierarchical structure to self directing teams. It can be time consuming process .moreover it is much pressurized procedure because one has to make right decision at a right time. TATA MOTORS could have this type of change in its various subs dries regarding its green campaign.
However incremental change can be another good option for TATA MOTORS. It can keep on changing its technology used in vehicles different parts.
Planned organisational development is always taken by keeping in mind the long term vision of organisation at a centre point and focus could be on improving performance and efficiency. TATA GROUP'S strategy to going green is planned change and TATA MOTORS i
is now setting up eco friendly showrooms that are wisely planned.
Stakeholder analysis is a term used in conflict resolution, project management, and business administration to describe a process where all the individuals or groups that are likely to be affected by a proposed action are identified and then sorted according to both their impact on the action and the impact the action will have on them.(Stakeholder analysis .[Internet].Available on: http://en.wikipedia.org/wiki/Stakeholder_analysis ).
So it is clear from the definition that before starting any project, taking steps for resolving conflicts it is necessary to clearly analyze the stakeholders and their impact on the company. Stakeholders should be agreed and support the change company is going to do. TATA MOTORS is an international organization and dreams to expand itself globally and another change it wants to do is making itself eco friendly. Change in organization can't be possible alone by organization it needs active involvement of its stakeholders.
"TATA MOTORS will never claim to give outstanding value or great returns to the stakeholders-we'll give decent returns"(Tejeesh N. S. Behl. 6 march 2008.[Internet].Available on: http://businesstoday.intoday.in/index.php?option=com_content&task=view&id=4188).
So to give them good results TATA MOTORS require their proper involvement and always need to know their interests.TATA MOTORS provides all required information to its stakeholders
To categorize stakeholders company uses Stakeholder analysis to methodology to know the interest and power of each stakeholder. Another intention behind stakeholder analysis is to obtain buy - in and commitment, to minimize opposition.
TATA MOTORS categorizes its stakeholders according to their impact ,effect and influence .
SYSTEMS AND SUBSYSTEMS:
INPUT -----------------------ƒ PROCESS-----------------------ƒ OUTPUT
This indeed is classified into four parts:-
1->system includes various entities working in the organisation. They are connected to each other and organisation is always effected directly or indirectly by them.
Stakeholders (key stakeholders without them any change or project is not possible and non key stakeholders their involvement is needed in certain areas).TATA MOTORS is always depend on its suppliers for raw material so they are key stakeholders. On other hand customers interests are need to be known for the improvement of vehicles and facilities provided along with them.
Employees (working in organisation and its subsystems).
2-working of one person or one department in a organisation have direct or indirect effect on other department as well so certain changes should be managed closely or more precisely.
3->major decisions are taken as whole assembled organisation so they should have some focus toward goal and objectives of an organisation.
TATA MOTORS desires and want to be on top in all aspects including maintenance of its system.
The company's 24,000 employees are guided by the vision to be best in the manner in which we operate best in the products we deliver and best in our value system and ethics.( Profile. [Internet]. Available on: http://www.tatacarsworldwide.com/company/index.asp ).
ITO (Input transformational output) Modelling:
As TATA MOTORS thinking of being ecofriendly ITO model are appropriate model for it. Because first it have to make changes in resources, production and output (that includes producing eco friendly vehicles, establishing eco friendly showrooms).
TATA MOTORS have introduced INDICA EV (electric) that will use polymer lithium batteries instead of petrol or diesel. For this it require such sources that can supply them what they need. But first of all, TATA MOTORS employed qualified engineers. Moreover, TATA MOTORS is not only making its vehicles eco friendly but also looking for eco friendly showrooms that require natural building material
Transformation process and output:
TATA MOTORS is collecting environmental and energy data across its dealer and supply chain to compute their carbon footprint and identity opportunities for cutting down on carbon dioxide emission. (Going green Tata's new mantra. [Internet].4 Jan 2010. Available on: http://www.tata.com/media/reports/inside.aspx?artid=faRQIiPJUVM=). So it is clear that TATA MOTORS thought the process give more consideration to reducing carbon footprint and look for more ways to cut down carbon dioxide emission not only by vehicles but also the factories.
TATA MOTORS has converted its arid and rocky plant site land into sylvan surroundings where birds and trees abound and the butterflies come to play. (The lake district of Maharashtra,Focus on: Environment, [Internet]. AVAILABLE ON: http://www.tata.com/ourcommitment/articles/inside.aspx?artid=P14bJiPZUaU=)
Cause and effect analysis:
This analysis tool organizes a large amount of information by showing links between events and their potential or actual causes and provides a means of generating ideas about why the problem is occurring and possible effects of that cause.(Methods & Tools Q A Resources.[Internet] .Available on: http://www.qaproject.org/methods/resc&e.html)
1. Awareness of people need luxory car and
About sustainability to nature pollution
Forced tata to change its strategy and include term green in it2. More and more companies
Getting Eco friendly
Customer's feed backs required output should be
New technologies require eco friendly vehicles,
To employee advanced engineers turning factories environment
That effect nature very less
Tata managing change through Consulting
1. Acquisition of jaquar and land rover was buzz news in 2008. These companies however were top American brands. And acquiring these to big companies was a hard task for TATA MOTORS.tata explains its approach as: - there will be no change in the management of the two companies and that there will also be no interference in the independent operation of these two brands and companies. The ownership of the two brands has changed hands, but the brands themselves will remain untarnished. And TATA MOTORS itself has just become more global. (Tata Motors Acquisition of Jaquar and Land Rover, 30 march 2008,[Internet]. Available on: http://www.stockmarketindia.net/tata-motors-acquisition-of-jaquar-and-land-rover/ ). It was quit planned approach chosen wisely that shows infect profit will be all TATA'S and in another hand the acquired companies have their independent operation inside the company.
2. TATA MOTORS has converted its arid and rocky plant site land into sylvan surroundings where birds and trees abound and the butterflies come to play (The lake district of Maharashtra, Focus on: Environment. June 2010. [Internet]. Available on: http://www.tata.com/ourcommitment/articles/inside.aspx?artid=P14bJiPZUaU=).
In Maharashtra, TATA MOTORS have converted rough and rocky plant site into lush green automobile factory plant.
While it is true that TATA MOTORS had very ambitious plans for growth of the automobile industry it was equally aware that effluents and solid waste would come as part and parcel of these ambitions. (The lake district of Maharashtra, Focus on: Environment, June 2010. [Internet]. Available on: http://www.tata.com/ourcommitment/articles/inside.aspx?artid=P14bJiPZUaU=)
TATA uses TQMS in-house organisation for consulting. TATA Quality Management Services (TQMS), an in-house organisation mandated to help different TATA companies achieve their business objectives through specific processes. (Business excellence.[Ineternet]. Available on: http://www.tata.com/aboutus/articles/inside.aspx?artid=OMSlPyjJp68=)
TCE provides pre-project services, design and engineering support, procurement assistance, project management, inspection and expediting, construction supervision, and commissioning support. It has extensive experience in the fields of water supply and wastewater management, infrastructure, power, chemicals and environment. (Tata products and services for businesses, Focus on: Business. [Internet]. Available on: http://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Consultancy)
Time SCALE: project should be on time so company should be aware that how much time it will take. Moreover what will be right time for starting a change process company have to take care of .
RESOURCES: resources are too adequate and tata motors predict before every resouce needes before taking a step.
OBJECTIVES: objective of TATA MOTORS is clear that it want to change itself purely as eco friendly company. It wants to involve in green process and earth saving projects.
PERCEPTION: EVERY big change needs proper attention, intrest and involement of stakeholders and above all provery consultancy. It is seen In TATA 'S business excellence that TATA have its on consultancy services and they help the organisation to get towards its objectives.
INTEREST: it is required that stakeholders are ready to support the organisation.
CONTROL: control and proper management is needed and that what TATA MOTORS take care of.
The Tata Strategic Management Group is ranked among the top three management-consulting firms in South Asia; it has completed over 500 engagements with more than 100 clients across countries and industry sectors.( Tata products and services for businesses.[Internet] Available on: http://www.tata.com/products/index.aspx?sectid=U2YC1EMmQuk=#Consultancy)
SOURCES: suppliers are to be carefully chosen they should be able to provide the product on time
TATA MOTORS is an international company. For TATA motors BUSINESS PROCESS TRANSFORMATION is a suitable model
Business process transformation:
That organisation is considered successful that is flexible enough to be transformed when ever needed according to external environment. But there should be less redundancies and a quick process is required. TATA MOTORS however is not flexible enough to transform itself easily .but it know where its benefit and profit is lying. So, business process transformation is not a big deal for TATA MOTORS.TATA MOTORS want be in toppers list and to stay their it have to transform itself from an old fashioned automobile company to a eco friendly company.
By insuring each product is eco-friendly; TATA MOTORS is making it a mission to reduce hazardous materials in vehicle components, using ozone-friendly refrigerants, and by extending fluid and lubricants life. (Introduction. [Introduction].Available on: http://electriccar.tv/community/tata-motors)
TATA is always ready for future and if that is mission to provide eco friendly vehicles it will do it and this by transforming itself and by staying focused.
Business process re-engineering: Business process reengineering is one approach for redesigning the way work is done to better support the organization's mission and reduce costs.(Business Process Re-engineering.[Internet].Available on: http://en.wikipedia.org/wiki/Business_process_reengineering#Overview)
This is approach is helpful when the company wants to redesign the way it work.
MISSION STATEMENT TATA MOTORS: To become a world class automotive engineering and product development centre, and enable TATA MOTORS to become a world class automotive company.( Tata Motors European Technical Centre Innovation.http://www.tata.com/innovation/articles/inside.aspx?artid=NXJRb+NnnZ0=).
No doubt TATA MOTORS aims to become a one of the top company around the world.
Process of re- engineering
Top Down approach best for a company to improve the procedures of company
Mission statement of the company shows the purpose of the organisation and this makes company to differentiate from other companies.
Then is to design the vision statements which describe where company is now where it is going, and also defines the desired future position of the company.
Then is to make the clear business strategy that will drive the projects objectives.
After designing the business strategy organisation have to define the behaviours that will make organisation to achieve its goals.
Make a key performance measurement tools to check the whole process
Improving the culture of organisation.
Identify the quality initiatives the are to improve the company's performance in future
Quality initiative and managing change
Organistion have to be clear in its objectives .for quality programs clear objectives are needed. Good communication between the active staff (who is involved in the process) is necessary for better results. Company have to keep its focus towards the three main aspects that are:-
Quality as the number of competitors is high company has to make a differentiation about the quality from the other competitors
Characteristics of the performance this factor is necessary to keep the customers stick to your products.
Improving quality of brand today competition is high and technology changes with a new day so improving the brand (profitable) is helpful for company the simply waiting for the right time
PUSH AND PULL STRATEGIES
These strategies are promotional strategies that are used even after the implementation process. These kinds of strategies are merely used to be aware about the threats and customer need.
PUSH STRATEGY Meaning of the push strategy in marketing can be found in the communication between seller and buyer. (Push-pull strategy. [Internet].Available on: http://en.wikipedia.org/wiki/Push%E2%80%93pull_strategy#Push_strategy)
Communication is used as medium for the purpose this can interactive or non interactive.
Organisation can use the pull strategy to know why the demand of product is high. And what can company can do to make it better. Through customer feedbacks, seminars etc.
This helpful in forecasting the production and distribution decisions for future. (Long Term).
PULL SRATEGY: - In a "pull" system the consumer requests the product and "pulls" it through the delivery channel.(Push-pull strategy, [Internet].Available on: http://en.wikipedia.org/wiki/Push%E2%80%93pull_strategy#Push_strategy).
TATA MOTORS have many successful stories from last decade. One of the cause for this can be company's owner RATAN TATA who had reconstructed the company from the old fashioned bureaucracy to a flexible and feasible strategy based company. Good leadership and communication is required for managing changes in better way. Company now nearly achieved goal of being an international company.