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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
Study on Organizational Structure and
Leadership Style of TATA Motors
Team Members
Suhas Jamble 102| Balu Sukate 103| Sumit Guha 104
Sunit Mhasade 105| Sumeet Suman 106| Sunny Tonk 107
Study on Organizational Structure and
Suhas Jamble 102| Balu Sukate 103| Sumit Guha 104
Sunit Mhasade 105| Sumeet Suman 106| Sunny Tonk 107
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
PGDIE 40, NITIE Mumbai
2
CONTENTS
ORGANISATIONAL STRUCTURE LITERATURE
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 co- operative episodes: The impact of organizational
(Willen & Buelens, 2009)
An holistic approach to understanding the changing nature of organizational structure
(Doherty, Champion, & Leitao Wang, 2, 2010)
Theories of organizational structure and innovation adoption: the role of environmental
(Damanpour & Gopalakrishnan, 1998)
REVIEW OF LEADERSHIP STYLE LITERATURE
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))
Current organizational Structure of TATA Motors
TATA Motors with Organisation Structure
TATA Motors with Leadership Style
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
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
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.”
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
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
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),
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
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
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
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
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
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),
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
TATA Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange in September 2004. It has also emerged as an international automobile
In year 2008, it acquires Jaguar Land Rover from Ford Motors & in the same year TATA
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
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
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
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
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
company is establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat). The
any’s dealership, sales, services and spare parts network comprises over 3500
Tata Motors is having employee base of 24,165. The company helps its employees to realize
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
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
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
company is establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat). The
any’s dealership, sales, services and spare parts network comprises over 3500
Tata Motors is having employee base of 24,165. The company helps its employees to realize
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
PGDIE 40, NITIE Mumbai
PRODUCTS AND SERVICES
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
PGDIE 40, NITIE Mumbai
5
PRODUCTS AND SERVICES
The range comprises Tata Indica (compact car), Tata Indigo (sedan), Tata Indigo
wagon) and Tata Nano (small car). The company also distributes and
markets Fiat branded cars in India.
A range comprising Tata Aria (Crossover); Tata Safari (SUV), Tata Xenon XT (Lifestyle
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
The range comprises Tata Indica (compact car), Tata Indigo (sedan), Tata Indigo
wagon) and Tata Nano (small car). The company also distributes and
A range comprising Tata Aria (Crossover); Tata Safari (SUV), Tata Xenon XT (Lifestyle
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 –
PGDIE 40, NITIE Mumbai
Product Profile
Passenger Cars Utility Vehicle
Indica
Indigo
Nano
Fiat
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
ARTICLE REVIEWS
ORGANISATIONAL STRUCTURE LITERATURE
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.
PGDIE 40, NITIE Mumbai
7
ORGANISATIONAL STRUCTURE LITERATURE
How organizational climate and structure affect knowledge management
interaction perspective. (Chen & Huang, 2007)
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.
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
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
How organizational climate and structure affect knowledge management- The
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.
, social interaction, knowledge
oriented view to investigate the mediating
nizational climate and
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 and
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 and gather
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 structure which is
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 members.
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 the
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
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
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
independent variables. Accordingly, the smaller sample size of the survey is
noted as a potential limitation in this study.
The study focuses only on two organizational context including climate and
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.
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 interaction is positively related to knowledge management.
These empirical evidences support the process-oriented view and indicate that
social interaction plays the mediating role between organizational climate,
organizational structure, and knowledge management.
The relationship between product customization and organizational structure
(Vickery, CorneliaDroge, & Germain, 1999)
This research examines the relationship between the extent of use of a product
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
(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.
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
independent variables. Accordingly, the smaller sample size of the survey is
nal context including climate and
structure. There are other organizational constructs that warrant discussion.
Future research may explore how these different constructs affect intra-
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
n is positively related to knowledge management.
oriented view and indicate that
social interaction plays the mediating role between organizational climate,
The relationship between product customization and organizational structure
This research examines the relationship between the extent of use of a product
ategy and organizational structure, since structure is a key to
Four aspects of organizational ‘structure’ are considered. They are formal control
(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 the main and
moderating effects of environmental uncertainty and firm size. LISREL results show that
customization associates with more formal control, fewer layers, and narrower spans of
the most part, not
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
9
The main effects of size on structure were consistent with previous research: larger
manufacturers are more formalized (in terms of performance controls
e more layers and wider spans of control. Manufacturers operating
in more dynamic environments are more decentralized, but have more rigorous formal
Managers should thus understand that, for the most part, they need not concern
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 co- operative 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
organizational structure influences and shapes the cooperative episodes in which
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
on the kind of coordination mechanisms used, and this is closely related to the other
structure dimensions (centralization, formalization and specialization).
Formalization indicates the extent to which the rights and duties of the members of the
organization are determined and the extent to which these are written down in rules,
procedures and instructions. Decentralised, i.e. horizontal-coordination consisting of
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.
The main effects of size on structure were consistent with previous research: larger
manufacturers are more formalized (in terms of performance controls) and de-
anufacturers operating
in more dynamic environments are more decentralized, but have more rigorous formal
Managers should thus understand that, for the most part, they need not concern
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
organizational structure influences and shapes the cooperative episodes in which
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
on the kind of coordination mechanisms used, and this is closely related to the other
duties of the members of the
organization are determined and the extent to which these are written down in rules,
coordination consisting of
teams, mutual adjustment, networking, and integration roles (less formal and
decentralized) allows flexible coordination during task execution and can deal with ad
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
10
Informal coordination (informal and decentralized) was not topical in the classic
organization structure literature but received thorough attention in the network
literature, which also stressed the relationship with knowledge sharing. Informal
n, i.e. any form of personal contact between people and units in the
organization that is not intended or imposed by management.
Empirical data was collected by means of a questionnaire in two companies. Our
findings indicated that expected relationships, such as the negative effect of
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 coordination and knowledge sharing. A
comparison between the two companies revealed that the organization
in which the coordination is applied influences the potential of this coordination for
By bringing new issues such as knowledge management into
organization structure theory, this theory might regain some of its lost value.
An holistic approach to understanding the changing nature of
organizational structure (Doherty, Champion, & Leitao Wang,
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 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,
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 integrated modules that
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
was not topical in the classic
organization structure literature but received thorough attention in the network
literature, which also stressed the relationship with knowledge sharing. Informal
n, i.e. any form of personal contact between people and units in the
Empirical data was collected by means of a questionnaire in two companies. Our
elationships, such as the negative effect of
centralization or the positive effect of lower formalization, were not found.
Interdependency and knowledge complexity, caused by specialization, had an important
oordination and knowledge sharing. A
comparison between the two companies revealed that the organization-specific context
in which the coordination is applied influences the potential of this coordination for
as knowledge management into
organization structure theory, this theory might regain some of its lost value.
An holistic approach to understanding the changing nature of
(Doherty, Champion, & Leitao Wang, 2, 2010)
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
the locus of decision making, standardization & formalization of
ct on span of control,
the degree of horizontal integration, or the number of hierarchical layers. It is difficult to
grated modules that
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 & within individual
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
11
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 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
complex & problematic undertaking. ERP has dominant role in reshaping corporate
This study gives two valid interpretations that ERP systems will only deliver
benefits in circumstances in which the host organization’s structure is already
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.
This article does not give any particular answer to this debatable topic, but it
mostly says that, it is successful ERP adoption that is driving structural change.
Theories of organizational structure and innovation adoption: the role of
environmental change (Damanpour & Gopalakrishnan, 1998)
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 i.e. type, radical-ness, or stage-of innovation at a time.
But in reality these dimensions are overlaps on each other & for the same reason these
theories produce inconsistent results.
Innovation adaptation, environmental change,
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:
Dual core theory: It distinguishes between administrative and technical
Strategy is also having significant impact on organization’s structure. Results of the
quantitative analyses suggest that the configuration of an organization is influenced by
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
complex & problematic undertaking. ERP has dominant role in reshaping corporate
This study gives two valid interpretations that ERP systems will only deliver
which the host organization’s structure is already
well aligned, with the structural models & management teams will only be
prepared to make any significant changes to their organizations’ structure, to
any particular answer to this debatable topic, but it
mostly says that, it is successful ERP adoption that is driving structural change.
Theories of organizational structure and innovation adoption: the role of
(Damanpour & Gopalakrishnan, 1998)
This article discuss about various theories of Organizational structure & innovation
adaption & their framework within which they are applied. Mostly these theories
of innovation at a time.
But in reality these dimensions are overlaps on each other & for the same reason these
this article, authors also discussed about innovations, its adoption, rate & speed to
adopt it by organizations & its sources like imitative, acquisitive & incubative.
tween administrative and technical
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
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
predictability. So, the two sets of values for each dimension are stable vs. unstable;
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
conditions under which certain structural characteristics facilitate or hinder
organizational innovation. The framework identifies dimensions of innovation adoption
in each environmental condition. This paper helps to resolve some of the discrepancies
that existed among the three prominent theories of organizational innovation.
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
adoption relationships, such as organizational technology, size and ownership.
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
predictability. So, the two sets of values for each dimension are stable vs. unstable;
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
conditions under which certain structural characteristics facilitate or hinder
organizational innovation. The framework identifies dimensions of innovation adoption
to resolve some of the discrepancies
that existed among the three prominent theories of organizational innovation.
This article is having some limitations like it is complex in construct. It mostly focuses on
that impact structure–innovation
adoption relationships, such as organizational technology, size and ownership.
PGDIE 40, NITIE Mumbai
REVIEW OF LEADERSHIP STYLE LITERATURE
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.
PGDIE 40, NITIE Mumbai
13
REVIEW OF LEADERSHIP STYLE LITERATURE
How Much Time Should CEOs Devote to Customers? (Quelch, 2008)
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. The current economic downturn, companies
rketing skills more than ever. But while every corporate mission statement pays
lip service to respecting customer needs, actual customer expertise is typically a mile
Consumer behavior, General leadership, customer satisfaction
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-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.
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 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.
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 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.
Every CEO should spend at least 10 percent of his or her time taking care of these three
human touch, customer relationship and . Running around visiting
customers is simply not enough.
(Quelch, 2008)
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
he current economic downturn, companies
rketing skills more than ever. But while every corporate mission statement pays
lip service to respecting customer needs, actual customer expertise is typically a mile
, customer satisfaction
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
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
A good CEO knows how to balance time spent on the outside versus the inside. However
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.
This requires the investment in uncovering customer insights discussed above,
either through business leaders regularly going into the field and through more
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
Every CEO should spend at least 10 percent of his or her time taking care of these three
Running around visiting
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
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
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 the most productive and certainly the most profitable
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 than could be redressed merely by closing down routes
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
dvantage.
Although his plans remained largely in abeyance, they nevertheless remained as an
agenda for regenerative change. His (Reid) wide-ranging experience, Astute, intelligent,
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
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
processes of change and organizational development that British Rail (BR) has
Growth in BR’s productivity and financial performance was among the fastest in Europe,
the most productive and certainly the most profitable
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
than could be redressed merely by closing down routes
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
Although his plans remained largely in abeyance, they nevertheless remained as an
ranging experience, Astute, intelligent,
politically aware as well as professionally experienced, Reid knew how to get things done
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
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
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
15
This view was endorsed recently by a director of one of the sector businesses, now
disbanded, who summed up Reid’s achievement succinctly: Reid recognised the need for
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
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
structured around identified business sectors and, simultaneously,
running down and eventually eliminating BR’s structure based on geographical
Leadership Types and Styles - Overview of Skills (Hick)
To identify when and where these leadership qualities to be used and how these is
relevant to TATA MOTORS.
/Free Rein, Democratic
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 changing 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. Understanding
different leadership styles and their impact will help you become a more effective leader.
In 1939 famed psychologist Kurt Lewin identified classic styles of leadership. These three
styles are well established though more specific types have been identified since. Leaders
should not be confused with managers.
of one of the sector businesses, now
disbanded, who summed up Reid’s achievement succinctly: Reid recognised the need for
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
two years, Reid had delivered productivity improvements and cost reductions on a
A clear vision & keen to accomplish it & a clear set of goals helped him to develop an
structured around identified business sectors and, simultaneously,
running down and eventually eliminating BR’s structure based on geographical
To identify when and where these leadership qualities to be used and how these is
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
it demands. There are different types of
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.
identified classic styles of leadership. These three
styles are well established though more specific types have been identified since. Leaders
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
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
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.
Leaders should not be confused with managers. Leaders are always managers but the
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
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 it demands. There are different types of leaders and you
Leaders should not be confused with managers. Leaders are always managers but the
necessarily the case. Good leaders will use the style or a combination of
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
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
The paper posits that leadership is a developmental process, which is based on the
eader 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 Lambda worldview). Consequently, leaders need to recognise
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 continuously improve their ethical behaviour. The paper
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 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.
The paper conceptualises that leadership quality develops by making choices
according to the following two world views:
Socially oriented
Lambda model- Personally oriented
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
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
The paper posits that leadership is a developmental process, which is based on the
eader 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
ambda worldview). Consequently, leaders need to recognise
that the choices they make for organisational activities have to fit their own
worldview. Pursuing the fit between one’s worldview and planned organisational
ously improve their ethical behaviour. The paper
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
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,
The paper conceptualises that leadership quality develops by making choices
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
learned behaviour is now known to be a Dynamic leadership
This means that an Ideal leader does not exists but a leader
PGDIE 40, NITIE Mumbai
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,
PGDIE 40, NITIE Mumbai
18
This paper puts the views on 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 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
what similarities and differences exist between the two leadership concepts.
Leadership, Transformational leadership, Influence
The transformational leader’s focus is directed toward the organization, and his or her
behaviour builds follower commitment toward organizational objectives, while the
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
r 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
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
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 challenge to their followers’ work” The leader inspires
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 combined to form charismatic
. Similarly, the Transformational leaders play a vital role in Intellectual
stimulation of employees, Individualized consideration,
, which is based on the
assumption that one can only strive toward truly ethical leadership with the
Transformational versus servant leadership: a difference in leader focus (Stone,
This article examines transformational leadership and servant leadership to determine
what similarities and differences exist between the two leadership concepts.
The transformational leader’s focus is directed toward the organization, and his or her
behaviour builds follower commitment toward organizational objectives, while the
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
r 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
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
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
challenge to their followers’ work” The leader inspires
followers to see the attractive future state, while communicating expectations and
demonstrating a commitment to goals and a shared vision. Idealized influence and
combined to form charismatic-inspirational
Transformational leaders play a vital role in Intellectual
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
19
While servant leadership is an increasingly popular concept, throughout much of its
history the concept has been systematically undefined and lacking in empirical
Both transformational leaders and servant leaders are visionaries, generate high levels
of trust, serve as role models, show consideration for others, delegate responsibilities,
empower followers, teach, communicate, listen, and influence followers. Certainly,
transformational leadership and servant leadership are not antithetical theories.
Rather, they are complementary ideologies because they both describe excellent
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
throughout much of its
history the concept has been systematically undefined and lacking in empirical
Both transformational leaders and servant leaders are visionaries, generate high levels
ration for others, delegate responsibilities,
empower followers, teach, communicate, listen, and influence followers. Certainly,
transformational leadership and servant leadership are not antithetical theories.
ause they both describe excellent
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 the people who are
PGDIE 40, NITIE Mumbai
Current organizational Structure of TATA Motors
PGDIE 40, NITIE Mumbai
20
rganizational Structure of TATA Motors
PGDIE 40, NITIE Mumbai
COMPARISON & CONCLUSION
TATA Motors with Organisation Structure
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.
PGDIE 40, NITIE Mumbai
21
CONCLUSION
ith Organisation Structure
As per article relating organizational structure & climate with knowledge management,
organizational climate plays an important role on employees’ behaviour
held true in case of Tata motors. They are having frequent interactions with their employees
& workers, formally & informally which helps employees to feel more bounded with
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 & ideas sharing within organization.
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 having narrow span of control. Article also relates
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 over Tata motors, but all strategic actions & plans are
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 defines specific role & duties for
employees, their responsibilities. In Tata motors, they follow Tata code of conduct &
authority matrix which helps them to identify different responsibilities and decision
making powers of an individual both functionally and financially. Other dimension is
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
In today’s world of computerization all the activities are need to be computed and all
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,
climate with knowledge management,
behaviour. The same concept
held true in case of Tata motors. They are having frequent interactions with their employees
helps employees to feel more bounded with
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
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
having narrow span of control. Article also relates
environmental uncertainty with product customization. But for Tata motors, how
environmental uncertainty effects product customization is not so clear. In decentralization,
over Tata motors, but all strategic actions & plans are
Other paper defines various impacts of organizational structure dimensions on knowledge
s specific role & duties for
employees, their responsibilities. In Tata motors, they follow Tata code of conduct &
different responsibilities and decision
nancially. Other dimension is
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 circulated on
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
to be computed and all
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 the article
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,
PGDIE 40, NITIE Mumbai
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.
TATA Motors with Leadership Style
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.
PGDIE 40, NITIE Mumbai
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
inventory management systems. The company has become one of the best in the
supply chain management system due to incorporation of these IT solutions.
ents 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, vendors, suppliers. The company is publishing
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 latest updates and happening in and
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 company has introduced various innovative
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 creates a blast in automobile industry
worldwide. Also, other models like Tata Ace, these are firstly India's first
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
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
and Rover, Fiat, Xenon, etc. These practices help company to strengthen its
organizational structure.
ith Leadership Style
The group chairman Ratan Tata is responsible for transforming Tata Motors Ltd. into
a Group strategy think-tank and a promoter of new ventures in high technology
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 decisions were criticized but now he is
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.
This enables TATA Motors to be more efficient in delivery, payments, order
house inventory as well as ware house
inventory management systems. The company has become one of the best in the
supply chain management system due to incorporation of these IT solutions.
ents 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
, vendors, suppliers. The company is publishing
various articles, newsletters about the wellbeing of the employees, promotions,
deaths, etc periodically. This keeps all the employees to be connected to the
t updates and happening in and
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
pany has introduced various innovative
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 lakh. and
eates a blast in automobile industry
worldwide. Also, other models like Tata Ace, these are firstly India's first
truck & Tata Magic is one of its own kinds. This type of
innovations creates some kind of spirit to work for organization with full
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 reality
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
and Rover, Fiat, Xenon, etc. These practices help company to strengthen its
The group chairman Ratan Tata is responsible for transforming Tata Motors Ltd. into
promoter of new ventures in high technology
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
decisions were criticized but now he is
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.
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
23
Earlier Tata Motors was seen as a sleepy company. Its products were dependable but
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 – the Indica Vista, the Manza, its range of world trucks
(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-Peter Foster who was in charge of General Motors’
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.
ere dependable but
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
range of world trucks
(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
of General Motors’
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’s the
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.
PGDIE 40, NITIE Mumbai
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)
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
We conducted the second interview telephonically with
(Product Development – Electricals) Pune on 29
PGDIE 40, NITIE Mumbai
25
ond interview telephonically with Mr Rakesh Kapoor , Deputy Manager
Electricals) Pune on 29th
August 2010 at 1530 hrs.
Mr Rakesh Kapoor , Deputy Manager
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
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
and enable Tata Motors to become a world class automotive company.”
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
TATA MOTORS has a mixed organizational structure. There are two main divisions
sed 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.
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 3-5 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?
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 education. They also have in house training programs.
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.
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.
They have a suggestion boxes to invite new ideas. Few ideas have also been
we operate, best in the products we deliver, and best in
development centre,
and enable Tata Motors to become a world class automotive company.”
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
TATA MOTORS has a mixed organizational structure. There are two main divisions
sed on product type viz Commercial vehicle division and Passenger cars division.
Both these divisions have been subdivided as per geographical location into north
What are the opportunities to get promoted over the years? What is the career
There is a very great scope of growth along with the company. On an average a
5 years. An employee with
ce is promoted on an average of two years.
professional development
ofessional 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
cation. They also have in house training programs.
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
Are new ideas from employees welcomed? If an idea is found good enough then is
the employees and they are rewarded suitably.
They have a suggestion boxes to invite new ideas. Few ideas have also been
PGDIE 40, NITIE Mumbai
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.
PGDIE 40, NITIE Mumbai
27
implemented. (When asked very trivial example was given, like change in shape of
How much control of parent company is there on TATA Motors?
TATA Motors is more or less independent. All the strategic decisions are taken by
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
addresses the whole company thrice a year, MD visits each division quarterly.
Accordingly the lower management have meeting with employees on day to day
How often different departments comes together and at what level?
Every month there is a ManCom meeting. Apart from that there are various cultural
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?
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.
implemented. (When asked very trivial example was given, like change in shape of
TATA Motors is more or less independent. All the strategic decisions are taken by
with the employees on a regular basis. The chairman
addresses the whole company thrice a year, MD visits each division quarterly.
Accordingly the lower management have meeting with employees on day to day
her and at what level?
Every month there is a ManCom meeting. Apart from that there are various cultural
Is the interaction among employees (at different posts) only limited to formal
The functional group meets thrice a year for a cultural event with families. The
welfare association conducts various activities throughout the year which involves
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
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
lower level management it varies as 1:10. This indicates that the organisational
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?
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.
In general, in TATA Motors, whether the managers act as a mentor to their
Yes, they have a mentoring program which enables each employee to empower
themselves in the functional areas.
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
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.
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,
what factors prompted to cancel the project there in spite of huge investment
ise risk management (ERM) team that studies and evaluates
different aspects of any occurrence on operational, functional and strategic
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
lower level management it varies as 1:10. This indicates that the organisational
To what extend decision making power given to a department? How much does
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
tors, whether the managers act as a mentor to their
Yes, they have a mentoring program which enables each employee to empower
How the organisation communicates effectively with the employees? How long
does it take for a message to reach from top of the organization to bottom and vice
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
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,
what factors prompted to cancel the project there in spite of huge investment
ise risk management (ERM) team that studies and evaluates
different aspects of any occurrence on operational, functional and strategic
Is TATA Motors a product oriented organization or people oriented organization?
PGDIE 40, NITIE Mumbai
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
PGDIE 40, NITIE Mumbai
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)
PGDIE 40, NITIE Mumbai
Barlow, G. (1996). Organization development and leadership:R.B. Reid and the dynamics of success.
Leadership & Organization Development Journal
Chen, C. J., & Huang, J. W. (2007). How organizational climate and structure affect knowledge
management- The social interaction perspective.
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Damanpour, F., & Gopalakrishnan, S. (1998). Theories of organizational structure and innovation
adoption: The role of environmental change.
Doherty, N. F., Champion, D., & Leitao Wang. (2, 2010). An Holistic Approach to understanding the
changing nature of organizational structure.
Hick, M. (2008). Leadership Type
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Damanpour, F., & Gopalakrishnan, S. (1998). Theories of organizational structure and innovation
adoption: The role of environmental change. Journal of Engg. & Technology Management
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changing nature of organizational structure. Information Technology & People, Vol. 23
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Chen, C. J., & Huang, J. W. (2007). How organizational climate and structure affect knowledge
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