Study on Organizational Structure and Leadership Style of TATA Motors

8/9/2019 Study on Organizational Structure and Leadership Style of TATA Motors

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NITIE Mumbai

Study on Or

Leadership

Suhas Jamble

Sunit Mhasade

anizational Structure

tyle of TATA Motors

Team Members

102| Balu Sukate 103| Sumit Guha 1

105| Sumeet Suman 106| Sunny Tonk

and

4

107


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PGDIE 40, NITIE Mumba

INTRODUCTION

PRODUCTS AND SERVICES

ARTICLE REVIEWS

ORGANISATIONAL STRUCT

1. How organizational cli

interaction perspectiv

2. The relationship betw

CorneliaDroge, & Ger

3. Knowledge sharing in i

structure dimensions (

4. An holistic approach t

(Doherty, Champion,

5. Theories of organizati

change (Damanpour &

REVIEW OF LEADERSHIP ST

1. How Much Time Shoul

2. Organization develop

RAILWAYS (Barlow, 19

3. Leadership Types and

4. A dynamic theory of le

dynamic theory of lea

5. Transformational vers

Patterson, (2004,Vol. 2

Current organizational Structur

COMPARISON & CONCLUSION

TATA Motors with Organisa

TATA Motors with Leadersh

ANNEXURE

1. Correspondence with

2. Interview Questionnai

LOG OF VISIT

BIBLIOGRAPHY

i

2

CONTENTS

URE LITERATURE

ate and structure affect knowledge manageme

. (Chen & Huang, 2007)

en product customization and organizational st

ain, 1999)

nter unit cooperative episodes: The impact of

Willen & Buelens, 2009)

understanding the changing nature of organiza

Leitao Wang, 2, 2010)

nal structure and innovation adoption: the role

Gopalakrishnan, 1998)

YLE LITERATURE

d CEOs Devote to Customers? (Quelch, 2008)

ent and leadership: R.B. Reid and the dynamics

96)

tyles - Overview of Skills (Hick)

adership Development (Mostovicz, Kakabadse,

ership developement, Vol. 30 No. 6, 2009)

s servant leadership: a difference in leader focu

5 No. 4))

of TATA Motors

tion Structure

ip Style

Interviewee

re

3

5

7

7

nt- The social

7

ucture (Vickery,

8

rganizational

9

ional structure

10

of environmental

11

13

13

of success- BRITISH

14

15

Kakabadse, A

17

s (Stone, Russell, &

18

20

21

21

22

24

24

26

29

30


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INTRODUCTION

Tata Motors Ltd has two b

Commercial Vehicles Busine

units are given below

Vision

Best in the manner in which

systems & ethics.

MissionTo become world class auto

Tata Motors to become a wo

Company Overview

Tata Motors is Indias larges

vehicles in each segment, a

products in the compact, m

worlds fourth largest truckconsolidated revenues of Rs.

TATA Motors is one of the ol

first model on roads of India

manufacturing unit in India i

Lucknow (Uttar Pradesh), Pa

is establishing a new plant at

Indian roads.

TATA Motors, the first compa

Stock Exchange in Septemb

company having operations i

In year 2008, it acquires Jag

launched Nano, peoples car

Venture in India in 2007. Tat

bus manufacturing Compan

Company, South Korea's seco

i

3

siness units the Passenger Car Busines

s Unit (CVBU). The vision and mission of

we operate, best in product we deliver & bes

otive engineering & product development c

ld class automotive company.

t automobile company. It is the leader by

d among the top three in passenger veh

idsize car and utility vehicle segments. T

manufacturer and the second largest bus92,519 crores (USD 20 billion) in 2009-10.

est automobile companies established in 1

in 1954. Now, it is present all over the coun

spread across Jamshedpur (Jharkhand), P

tnagar (Uttarakhand) and Dharwad (Karnat

Sanand (Gujarat). Over 5.9 million Tata vehi

ny from India's engineering sector to be list

r 2004. It has also emerged as an intern

the UK, South Korea, Thailand & Spain.

uar Land Rover from Ford Motors & in th

. Fiat Group & Tata Motors announce esta

Motors acquires 21% stake in Hispano Ca

y. In 2004, it acquired the Daewoo Co

nd largest truck maker.

s Unit (PCBU) and

both the business

t in our value

entre and enable

far in commercial

icles with winning

e company is the

manufacturer with

945 & delivered its

try. The company's

ne (Maharashtra),

aka). The company

cles are running on

ed in the New York

tional automobile

e same year TATA

blishment of Joint

rocera SA, Spanish

mmercial Vehicles


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The companys manufacturi

Pantnagar (Uttarakhand).

Lucknow, Dharwad in India,

first indigenously Light Comm

Tata Indica, India's first fully

Indica became India's largest

segment by launching the T

company is establishing two

companys dealership, sales

communication points.

The People

Tata Motors is having emplo

their potential through inno

provide employees with dyna

round potential development

and external training. The

programmes.

i

4

ng base is spread across Jamshedpur, P

lso the company has R&D centres in

in South Korea, Spain & the UK. TATA Mo

ercial Vehicle, India's first Sports Utility Vehi

indigenous passenger car. Within two ye

selling car in its segment. In 2005, Tata Mo

ata Ace, India's first indigenously develop

new plants at Dharwad (Karnataka) and Sa

, services and spare parts network co

ee base of 24,165. The company helps its e

ative HR practices. The companys goal i

mic career paths in congruence with corpo

and performance improvement is ensured

company has won several awards reco

ne, Lucknow and

une, Jamshedpur,

ors developed the

cle & in 1998, the

rs of launch, Tata

tors created a new

ed mini-truck. The

and (Gujarat). The

prises over 3500

ployees to realize

to empower and

ate objectives. All-

y regular in-house

nizing its training


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PRODUCTS AND SERVI

Passenger Cars:The range comprises

Marina (station-wagon)

markets Fiat branded c

Utility Vehicles:

A range comprising Tat

Pick-up), and Tata Sum

Carriers).

Commercial Vehicles for goo

Small Commercial Veh Light Commercial Veh

Commercial Vehicles for pass

Tata and Tata Marcoonwards.

Multi-purpose vehiclefor urban and rural tra

Subsidiaries Companies

These are various sub

Jaguar

Tata M Tata Da Hispan Tata M Telcon Tata M Tata Te TAL Ma HV Tra Tata Au TML Di Tata M

i

5

CES

ata Indica (compact car), Tata Indigo (s

and Tata Nano (small car). The company a

rs in India.

a Aria (Crossover); Tata Safari (SUV), Tata

o Grande MK II, Tata Sumo range and Tat

s transportation

icles: Tata Ace, Indias first indigenous mini-

icles: Pick-ups and trucks ranging from 2T G

enger transportation

polo range of light, medium and heavy b

s Tata Magic, Tata Magic Iris, Tata Winger

nsportation.

idiaries of Tata Motors.

Land Rover

arcopolo Motorsewoo

Carrocera

otors (Thailand)

otors European Technical Centre

chnologies

nufacturing Solutions

smission and HV Axles

tocomp

tribution Co.

otor Finance

dan), Tata Indigo

lso distributes and

enon XT (Lifestyle

a Venture (People

ruck.

W to 7.5T GVW.

ses from 2T GVW

and Tata Venture


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Product Profile

Passenger Cars U

Indica

Indigo

Nano

Fiat

i

6

tility Vehicle Trucks

Sumo

Safari

Xenon

Small Commercial

trucks (Ace)

Light Commercial

trucks (TL4X4)

Intermediate Commerci

trucks (Turbo Truck)

Prima truck

Construck

Commercial

passengerVehicles

Bus

Winger

Magical

Medium & Heavy

Commercial trucks


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ARTICLE REVIEWS

ORGANISATIONAL STRU

1. How organizational csocial interaction per

Objective:-

The article emphasises on

structure on knowledge

regression analysis is use

Key Variables:

Organisational climate,

management.

Findings:-

Firstly, the author has ad

effect of social interacti

knowledge management.

relationship between

Organizational climate pl

influencing their percepti

strong innovative and coo

is acceptable or desirable

knowledge. Conversely, i

inexistent, employees wo

organizational climate, th

likely to affect the social

author expects that an

atmosphere for strengthe

The author also states th

between independent va

and dependent variable

social interaction medi

management and Social i

knowledge management.

regression method.

i

7

CTURE LITERATURE

limate and structure affect knowledge man

spective.(Chen & Huang, 2007)

the study to examine the effects of organiz

management from the social interaction

to test the hypotheses in a sample of 146 c

organisational structure, social intera

opted the process-oriented view to investi

on on the relationship between organiza

Secondly, he examines how social inter

organizational structure and knowled

ays an essential role in shaping employe

n of knowledge management. If the organ

perative climate, employees would receive

for them to build up interaction networks t

the innovative and cooperative climate is

uld perceive a lower need to interact with

e author also emphasises on organizational

interaction among organizational membe

innovative and cooperative climate wou

ning social interaction among organizational

importance of mediating effect which giv

riables of organizational climate and orga

f knowledge management and states two

tes the effect of organizational clima

nteraction mediates the effect of organiza

These hypotheses have been explained

agement- The

ational climate and

perspective. The

ases.

ction, knowledge

ate the mediating

ional climate and

action affects the

ge management.

s behaviours and

ization possesses a

clear signal that it

o share and gather

relatively weak or

olleagues. Besides

structure which is

s. As a result, the

ld provide a vital

members.

s the relationships

izational structure

ypothesis that the

e on knowledge

ional structure on

y the author with


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Conclusion:-

1. First, the smaller sWe have done th

not a significant is

generate the mindependent vari

noted as a potenti

2. The study focusestructure. There

Future research

organizational soci

3. The findings suggto social interacti

decentralized and

the social interacti

4. These empirical esocial interaction

organizational stru

2. The relationship bet(Vickery, CorneliaDr

Objective:-

This research examines

customization strategy

managers implementatio

Key Variables:

Product customisation, d

Findings:-

Four aspects of organiz

(encompassing the meas

and three key dimensions

control. A contingency a

moderating effects of en

customization associates

control. Subgroup analysi

moderated by size or envi

i

8

ample size of this study raised the non-res

t-statistics and w2 test to verify that the n

sue. Also, the sample size in our study is ba

aningful results as the regression mobles. Accordingly, the smaller sample siz

al limitation in this study.

s only on two organizational context incl

re other organizational constructs that

may explore how these different const

al interaction and knowledge management.

st that innovative and cooperative climate i

n. When the organizational structure is les

integrated then the social interaction is mo

on is positively related to knowledge manag

idences support the process-oriented vie

plays the mediating role between orga

cture, and knowledge management.

een product customization and organizati

ge, & Germain, 1999)

the relationship between the extent of

nd organizational structure, since struc

n of strategy.

centralisation, span of control

tional structure are considered. They

urement of competitive, internal, and sup

of organizational design: decentralization, l

pproach is taken by simultaneously exami

ironmental uncertainty and firm size. LISRE

with more formal control, fewer layers, and

s revealed that these main effects are, for

ronmental uncertainty.

onse bias concern.

n-response bias is

rely satisfactory to

els include 812of the survey is

uding climate and

arrant discussion.

ucts affect intra-

s positively related

s formalized, more

re favourable. Also

ement.

and indicate that

nizational climate,

onal structure

use of a product

ture is a key to

re formal control

plier performance)

ayers, and spans of

ing the main and

L results show that

narrower spans of

the most part, not


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The main effects of size

manufacturers are mor

centralized, and utilize m

in more dynamic environ

control.

Conclusion:-

Managers should thus u

themselves with size an

organizational structure t

3. Knowledge sharingorganizational stru

Objective:-

The objective of article is

altered to be more adapt

relationship between coo

the concept of knowledge

Key Variables:-

Knowledge sharing, coord

Findings:-

Studying effective inter-un

organizational structure

knowledge sharing takes

important classic orga

centralization, formalizati

knowledge sharing. These

the differentiationintegr

organization theory literaton the kind of coordinati

structure dimensions (cent

Formalization indicates th

organization are determin

procedures and instructi

teams, mutual adjustm

decentralized) allows flexi

hoc communication and in

i

9

on structure were consistent with previo

formalized (in terms of performance

re layers and wider spans of control. Manu

ents are more decentralized, but have m

nderstand that, for the most part, they

d environmental uncertainty when selecti

match the desired level of product custo

in inter unit cooperative episodes: Th

ture dimensions (Willen & Buelens, 20

how the classic organizational structure di

ed to organizational knowledge sharing. Th

rdination, centralization, formalization, and

sharing has been studied.

ination, formalisation, specialization

it knowledge sharing in organizations requir

influences and shapes the cooperative

place. To obtain this insight, we revisit

nizational structure dimensions, nam

n, and specialization; and assess their i

classic organizational structure dimension

tion balance, which has been the major f

re. The impact of coordination on knowledn mechanisms used, and this is closely re

ralization, formalization and specialization).

extent to which the rights andduties of ted and the extent to which these are writ

ns. Decentralised, i.e. horizontal-coordin

nt, networking, and integration roles

ble coordination during task execution an

formation.

s research: larger

controls) and de-

acturers operating

re rigorous formal

need not concern

ng an appropriate

ization

e impact of

09)

ensions should be

e behaviour of the

specialization, with

es insight into how

pisodes in which

four of the most

ely coordination,

pact on inter-unit

are underpinning

ocus in the classic

e sharing dependslated to the other

e members of the

ten down in rules,

tion consisting of

(less formal and

can deal with ad


10/30


Informal coordination (i

organization structure lit

literature, which also st

coordination, i.e. any fo

organization that is not int

Conclusion:-

Empirical data was coll

findings indicated that

centralization or the

Interdependency and kno

interacting effect on the

comparison between the

in which the coordinatio

knowledge sharing. By

organization structure th

4. An holistic approacorganizational stru

Objective:-

This article discusses aboof IT on organizational str

a well defined technology

Key Variables:-

Standardisation, formalis

Findings:-

It mostly influences the

working practices and pro

the degree of horizontal i

get an overall view of the

ERP is typically acquired i

support all major busin

distribution, sales, financ

& standardize their busi

business units.

i

10

formal and decentralized) was not topi

erature but received thorough attentio

ressed the relationship with knowledge

rm of personal contact between people

ended or imposed by management.

cted by means of a questionnaire in tw

expected relationships, such as the n

ositive effect of lower formalization,

wledge complexity, caused by specialization

relationship between coordination and kn

two companies revealed that the organizati

n is applied influences the potential of th

bringing new issues such as knowledge

ory, this theory might regain some of its los

to understanding the changing natur

ture (Doherty, Champion, & Leitao Wa

t one of the most debatable & important tucture & mostly about Enterprise Resource

with low interpretive flexibility.

tion, Entrepreneur Resource planning

locus of decision making, standardization

cedures. But it does not consider its impact

tegration, or the number of hierarchical la

impact of IT on organizational structure.

the form of packaged software, with integ

ess functions across an organization, su

& HR management. It encourages organiza

ness processes across the organization

cal in the classic

in the network

sharing. Informal

and units in the

o companies. Our

egative effect of

were not found.

, had an important

wledge sharing. A

on-specific context

is coordination for

management into

value.

of

g, 2, 2010)

pic i.e. importancePlanning (ERP). It is

& formalization of

on span of control,

ers. It is difficult to

ated modules that

ch as production,

tions to streamline

within individual


11/30


Strategy is also having s

quantitative analyses sug

ERP benefits & strategi

recognize impact of ERP.

Large-scale & successful

orientation, & then there

decision-making will be le

working practices will bec

Results of many previou

complex & problematic

structure.

Conclusion:-1. This study gives

benefits in circum

well aligned, wit

prepared to mak

better align it with

2. This article doesmostly says that, i

5. Theories of organizenvironmental cha

Objective:-

This article discuss abou

adaption & their frame

focuses on only one dim

But in reality these dime

theories produce inconsis

Key Variables:-

Innovation adaptation, en

Findings:-

In this article, authors al

adopt it by organizations

There are three structural

1. Dual core theorinnovations

i

11

ignificant impact on organizations struct

gest that the configuration of an organizati

orientation. Author has also done qua

ERP system is deployed in an organization

are a most chances that organization will

ss centralized, level of horizontal integratio

ome more standardized.

s studies say that, an ERP implementatio

undertaking. ERP has dominant role in re

two valid interpretations that ERP system

stances in which the host organizations s

the structural models & management t

any significant changes to their organiza

ERP.

ot give any particular answer to this deb

is successful ERP adoption that is driving st

ational structure and innovation adopt

ge (Damanpour & Gopalakrishnan, 19

t various theories of Organizational struc

ork within which they are applied. Mos

nsion i.e. type, radical-ness, or stage-of in

sions are overlaps on each other & for the

ent results.

vironmental change,

o discussed about innovations, its adoptio

its sources like imitative, acquisitive & inc

theories of innovation:

: It distinguishes between administrati

re.Results of the

n is influenced by

ntitative study to

with a Prospector

ecome flatter, the

will increase & its

n is an extremely

shaping corporate

s will only deliver

tructure is already

eams will only be

ions structure, to

table topic, but it

uctural change.

on: the role of

8)

ture & innovation

tly these theories

ovation at a time.

same reason these

n, rate & speed to

bative.

ve and technical


12/30


2. The theory of inn(routine) & reorie

3. The ambidextrousto a decision to

continued use of a

Article also tells that orga

environments and its di

predictability. So, the tw

predictable vs. Unpredi

predictable (EC1), stable

unstable and unpredictab

bring together element

innovation adoption.

Conclusion:-

1. The article gives complconditions under whic

organizational innovation

in each environmental co

that existed among the th

2. This article is having somexternal environment &

adoption relationships, su

i

12

vation radicalness: It discusses about two a

tation.

theory: It discusses about the pre-adoption

adopt & the activities that facilitate im

n innovation

nizations is open systems seek a state of eq

ensions are extent of stability and exten

o sets of values for each dimension are s

table. Four environmental sets of cond

and unpredictable (EC2), unstable and pre

le (EC4). A way to make a framework for ab

s of environmental change, organizatio

ex but precise theories by identifying t

h certain structural characteristics fac

. The framework identifies dimensions of in

ndition.This paper helps to resolve some o

ree prominent theories of organizational in

limitations like it is complex in construct. It

not on other variables that impact st

ch as organizational technology, size and o

pects i.e. variation

activities that lead

plementation and

ilibrium with their

t of turbulence or

table vs. unstable;

itions: stable and

ictable (EC3), and

ve conditions is to

al structure and

he environmental

ilitate or hinder

novation adoption

f the discrepancies

ovation.

mostly focuses on

uctureinnovation

nership.


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REVIEW OF LEADERSHI

1.How Much Time ShouldObjective:-

Customers are the sourc

relationships with new an

into stock market valuatio

need marketing skills mor

lip service to respecting

wide and an inch deep.

Key Variables:-

Customer relationships, C

Findings:-

"THE CUSTOMER IS GOD

quote it becomes even

few of the CEOs of FORTU

and sales. Every corpora

needs; actual customer

customer-oriented, execu

their homes, on job sites,

A good CEO knows how t

they should consider follo

CEO should spearheathat are leading indic

be off-the-shelf stand

customers on their h

CEOs must ensure anThis requires the ineither through busin

formal customer rese

CEO has to developmean appointing a hi

long-term infusion

throughout the orga

general managers co

Conclusion:-

Every CEO should spend

challenges i.e. human t

customers is simply not e

i

13

STYLE LITERATURE

CEOs Devote to Customers? (Quelch, 2

e of all cash flow. Organic growth depe

d existing customers. And future growth p

ns of companies. The current economic do

than ever. But while every corporate missi

ustomer needs, actual customer expertise

onsumer behavior, General leadership, cust

AND THE MARKET DECIDES EVERYTHING"

ore pivotal in situations of economic crisi

NE-500 companies have come up the ranks

e mission statement pays lip service to re

expertise is typically a mile wide and an

tives must get out and meet customers on t

in their offices.

balance time spent on the outside versus t

wing three things

d the identification of three or four custo

ators of sales or profit performance. These

bys such as customer satisfaction. They mus

me turfin their homes, on job sites, in the

adequate pipeline of new product and ma

estment in uncovering customer insightsess leaders regularly going into the field

rch studies.

arketing talent throughout the company.

gh-profile rainmaker as chief marketing offi

of customer centricity and marketing

ization. Over time, this should mean a hi

ing up through the marketing ranks.

t least 10 percent of his or her time taking

ouch, customer relationship and . Runni

nough.

08)

ds on developing

ospects are baked

nturn, companies

on statement pays

is typically a mile

mer satisfaction

is very well known

. But as seen very

through marketing

specting customer

inch deep. To be

heir home turfin

he inside. However

er health metrics

metrics should not

t get out and meet

ir offices.

rket opportunities.

discussed above,nd through more

his cannot merely

cer. It requires the

trategy capability

her percentage of

care of these three

g around visiting


14/30


2.Organization developmsuccess- BRITISH RAIL

Objective:-

To extract various qualitiecomparison of it with lead

Key Variables:-

Leadership capacity, deleg

Findings:-

Reid carried through argu

processes of change an

experienced in the past 40

Growth in BRs productivit

and BR ended that decade

rail networks in Western

and air competition and g

precipitous loss of BRs bu

where traffic could be han

Beeching had sought to i

greatest competitive adva

Although his plans remai

agenda for regenerative c

politically aware as well as

within the railways orga

years, Reid had delivered

his predecessors had been

As a professional, he knew

needed to be done, and h

He also knew how to oper

He induced change built

clear vision and was d

achievable goals, and ex

clear mandates to others

most effective. As a resul

professional managers

transformation he brought

i

14

ent and leadership: R.B. Reid and the d

AYS(Barlow, 1996)

s of leadership style from Reids tenure inrship trends in TATA MOTORS.

ation of authority, commitment

bly one of the most fundamental and pote

d organizational development that Briti

years.

y and financial performance was among th

s one of the most productive and certainly

Europe.BR in before Reid However, the de

rowth in private car ownership had brough

siness than could be redressed merely by cl

dled more economically and effectively by

entify and mobilize the railways distinctiv

tage.

ned largely in abeyance, they neverthele

hange. His (Reid) wide-ranging experience,

professionally experienced, Reid knew how

ization. He also knew what needed to be

roductivity improvements and cost reducti

unable to achieve

the railways and their management intima

ow to get it done: he possessed systemic l

te the levers of power.

on success, rather than to avoid failure. H

cisive and determined in implementing

ected them to be achieved. He delegate

along with discretion to achieve results in

, he created and won the commitment o

and galvanized support within BR as

about.

namics of

ritish railways and

ntially far-reaching

sh Rail (BR) has

fastest in Europe,

he most profitable

elopment of road

t about a far more

osing down routes

road. In a nutshell,

characteristics to

s remained as an

Astute, intelligent,

to get things done

done. Within two

ons on a scale that

ely. He knew what

adership capacity

communicated a

it. He set clear,

authority, giving

ways which were

new coalitions of

a whole for the


15/30


This view was endorsed

disbanded, who summed

change. He created a sens

them with the sectors. T

industry and the businessThere was a real feeling of

Conclusion:-

Wide- ranging experitwo years, Reid had

scale that his predece

A clear vision & keenorganization structur

running down and eregions.

3. Leadership Types aObjective:-

To identify when and whe

relevant to TATA MOTORS

Key Variables:-

Autocratic, Delegative /Fre

Findings:-

Leadership style is crucial

the role ourselves at vario

business, sports, politics,

rapidly changing world an

leaders and you will most

different leadership styles

In 1939 famed psychologis

styles are well established

should not be confused wi

i

15

ecently by a director of one of the sect

p Reids achievement succinctly: Reid reco

e of business purpose.He dissolved the Re

e sector businesses were full of people w

they were in. Reid got them all pulling in tachievement and success.

ence, astute and intelligence and political

elivered productivity improvements and c

sors had been Unable to achieve.

o accomplish it & a clear set of goals helped

ed around identified business sectors an

ventually eliminating BRs structure base

nd Styles - Overview of Skills (Hick)

e these leadership qualities to be used and

.

e Rein, Democratic

o success. We find leadership all around us

us times in our lives. Leadership can be fo

religion and as close as home. Leaders m

meet the challenges it demands. There ar

likely encounter many over the course of ti

and their impact will help you become a mo

t Kurt Lewin identified classic styles of lead

though more specific types have been ident

h managers.

r businesses, now

nised the need for

ions and replaced

o understood the

he same direction.

awareness, within

st reductions on a

him to develop an

d, simultaneously,

on geographical

ow these is

. Each of us will fill

nd in the world of

st respond to the

different types of

e. Understanding

re effective leader.

rship. These three

ified since. Leaders


16/30


Autocratic:

a)What needs to be accothe leader.

b)Allow for quick decisionc) This is a less creative a

control.

d)Use when a group or me)The autocratic style wo

the decision or outcom

Democratic:

a)The leader acts as a gdiscussion.

b)Even though the leaderc) Democratic style can b

range of opinion.

d)People are more comhave a personal stake i

e)This style is mutually beDelegative/Free Rein:

a)Minimal in direction.b)Allow decision-makingc) Works well when the ted)This style works best wiLeaders are always mana

will use the style or a com

crucial to success. We find

at various times in our liv

politics, religion and as cl

world and meet the challe

will most likely encounter

Conclusion:-

Leaders should not be con

reverse is not necessarily t

styles that best fits the sit

i

16

plished, as well as, how and when, is the s

s when time is crucial.

proach. A "Do what you are told" Obedien

mber doesn't have knowledge of the practi

rks best when there is no need for input. In

.

ide. Accepts input and seeks ideas and s

may have the final say the team contributes

e problematic when the final decision is ha

itted when involved in the process of maki

the outcome.

neficial and helps improve people skills.

y the team.

am or a member is more knowledgeable ab

th highly motivated and well trained people.

ers but the reverse is not necessarily the

ination of styles that best fits the situation.

leadership all around us. Each of us will fill

es. Leadership can be found in the world

ose as home. Leaders must respond to th

nges it demands. There are different types

any over the course of time.used with managers. Leaders are always ma

he case. Good leaders will use the style or a

ation.

le responsibility of

and strict form of

ce or procedure.

ut will not change

ggestions through

to the process.

mpered by a wide

ng decisions. They

ut the subject.

case. Good leadersLeadership style is

the role ourselves

f business, sports,

e rapidly changing

of leaders and you

nagers but the

combination of


17/30


4.A dynamic theory of leadynamic theory of leadershi

Objective:-

The paper examines selblocks. It identifies th

developing the psychol

Key Variables:-

Leadership, Leadership

Findings:-

The paper posits that l

type of choice a leader

available from which

leaders worldview, lo

achievement (i.e. the L

that the choices they

worldview. Pursuing t

activities ensures that l

concludes with the pre

the assumption that o

knowledge that this goa

Leadership has examin

past, the present, and t

binary action that divid

according to a higher pr

Conclusion:-

The paper conceptual

according to the followi1. Theta model-2. Lambda modelThus keeping with ei

These choices create

leadership that was

as purely a learne

development proces

always strives to ach

i

17

dership Development(Mostovicz, Kakaba

p developement, Vol. 30 No. 6, 2009)

ected leadership literature through the lensrole of the ideal goal in leadership and

gical aspect of leadership.

development

eadership is a developmental process, whi

makes. While choice implies that two good

o select, one should make choices in ac

king for affiliation (i.e. the Theta worldvi

ambda worldview). Consequently, leaders

make for organisational activities have

e fit between ones worldview and plan

aders continuously improve their ethical be

entation of a dynamic theory of leadership,

ne can only strive toward truly ethical le

l is beyond human capacity.

ed three different phases within the leade

he future. Leadership is about making choi

es options into two sets, the desired and t

inciple or value.

ises that leadership quality develops b

ng two world views:ocially oriented

- Personally oriented

her of the two world view a leader keeps o

memory based on which leader take decisi

historically considered to be either as purel

d behaviour is now known to be a D

s. This means that an Ideal leader does not

ieve ideal ethical behaviour continuously.

se, & Kakabadse, A

of theory building-its importance in

ch is based on the

options are always

ordance with the

w), or looking for

need to recognise

to fit their own

ned organisational

haviour. The paper

which is based on

adership with the

rship timeline: the

es. The choice is a

e undesired ones,

making choices

making choices.

ns for future. Thus

in born quality or

namic leadership

exists but a leader


18/30


This paper puts the

assumption that on

knowledge that this

5. Transformational veRussell, & Patterson,

Objective:-

This article examines tr

what similarities and di

Key Variables:-

Leadership, Transforma

Findings:-

The transformational le

behaviour builds follo

servant leaders focus

objectives is a subordin

primary focus of leader

factor in classifying lea

also looks at the next s

challenges facing empir

occurring in current thi

The primary premise of

on organizational objec

their followers. Transfo

support the vision and

relationships can be for

be shared. Idealized

leadership in which le

emulated by followers

providing meaning a

followers to see the a

demonstrating a com

inspirational motivatio

leadership. Similarly, t

stimulation of employe

i

18

views on dynamic theory of leadership, whi

e can only strive toward truly ethical le

oal is beyond human capacity.

sus servant leadership: a difference in lea

(2004,Vol. 25 No. 4))

nsformational leadership and servant leade

ferences exist between the two leadership

tional leadership, Influence

aders focus is directed toward the organiza

er commitment toward organizational ob

is on the followers, and the achievemen

ate outcome. The extent to which the leade

ship from the organization to the follower i

ers as either transformational or servant l

age of developmental issues in servant lead

ical investigation and measurement, and th

king about the servant leadership approach

the article is that transformational leaders

tives while servant leaders focus more on t

mational leaders transform the personal va

goals of the organization by fostering an e

med and by establishing a climate of trust i

influence is the charismatic element o

ders become role models who are admir

. Transformational leaders inspire and

d challenge to their followers work T

tractive future state, while communicatin

itment to goals and a shared vision. Ideal

n are usually combined to form charis

he Transformational leaders play a vital

s, Individualized consideration,

ch is based on the

adership with the

er focus (Stone,

rship to determine

oncepts.

ion, and his or her

jectives, while the

of organizational

is able to shift the

the distinguishing

eaders. This article

ership, such as the

e changes that are

.

end to focus more

he people who are

lues of followers to

nvironment where

which visions can

transformational

d, respected, and

otivate others by

e leader inspires

expectations and

ized influence and

matic-inspirational

ole in Intellectual


19/30


While servant leadershi

history the concept has

support.Conclusion:-

Both transformational l

of trust, serve as role m

empower followers, te

transformational leade

Rather, they are com

forms of leadership.

concepts. Most impo

organizational objectiv

their followers.

i

19

p is an increasingly popular concept, throug

been systematically undefined and lacking i

eaders and servant leaders are visionaries, g

odels, show consideration for others, deleg

ach, communicate, listen, and influence f

rship and servant leadership are not an

lementary ideologies because they both

onetheless, there are significant points

tantly, transformational leaders tend t

s while servant leaders focus more on th

out much of its

empirical

enerate high levels

te responsibilities,

llowers. Certainly,

ithetical theories.

describe excellent

f variation in the

focus more on

e people who are


20/30


Current organizationa

i

20

l Structure of TATA Motors


21/30


COMPARISON & CONC

TATA Motors with Orga

As per article relating

organizational climate p

held true in case of Tata

& workers, formally &

organization. Also, it he

relatively flat structure,

which improves knowle

One of the article talks

of control & levels inorganizational structur

environmental uncerta

environmental uncertai

the main Tata group h

taken by board of direct

Other paper defines va

sharing. One of the di

employees, their resp

authority matrix which

making powers of an

coordination. In Tata

published monthly for

regular emails/corres

regular basis. The hig

This helps them to ga

level to level.

In todays world of co

the data is to be m

Based on this data

manufacturing, purch

gives the importanc

mostly about Enterp

TATA Motors was not

of the organization.

ease of all these activiAUTO CAD, etc.

i

21

USION

isation Structure

organizational structure & climate with know

lays an important role on employees behaviou

motors. They are having frequent interactions

informally which helps employees to feel

lps in gathering & sharing the knowledge. As T

it helps them in easy interaction between vari

ge & ideas sharing within organization.

bout product customization & organization. It

structure. As Tata motors is also operatese, it is having narrow span of control.

inty with product customization. But for

ty effects product customization is not so clear

s command over Tata motors, but all strategic

ors of Tata motors itself.

rious impacts of organizational structure dime

mensions is formalization & it defines specifi

nsibilities. In Tata motors, they follow Tata

helps them to identify different responsibi

individual both functionally and financially.

motors, they are having newsletters and

each division and are circulated though out

pondence from Chairman, MD and CFO

her level management is always accessible

ther, share & spread the knowledge & ide

puterization all the activities are need to b

intained precisely to take the major man

all the activities of the all department

se, finance, operations, etc can be interlink

of Information Technology on organiza

ise Resource Planning (ERP). During the i

having any efficient software that will moni

owadays, the TATA Motors is using variou

ties like ERP & SAP also various design softw

ledge management,

r. The same concept

ith their employees

ore bounded with

ata motors is having

us level in structure

lso talks about span

with less levels ofrticle also relates

Tata motors, how

. In decentralization,

actions & plans are

sions on knowledge

c role & duties for

code of conduct &

lities and decision

Other dimension is

house magazines

the company. Also

are circulated on

to the lower level.

s very easily from

e computed and all

agement decision.

s like production,

ed. Thus the article

ional structure &

itial years in 90s,

or all the activities

s software like for

are like CATIA, UG,


22/30


This enables TATA

execution, as well a

inventory manageme

supply chain manage

All the departments

system, as well as all

enables the easy and

including the board

various articles, new

deaths, etc periodica

organization all the ti

around organization.

In one paper, it m

organizational struct

innovations, as likely s

models in market and

its chairman Mr. Rata

they launch it in mar

worldwide. Also, ot

indigenously developinnovations creates

responsibility and ent

officers as well as e

project. Due this rea

within stipulated ti

motors is working con

range. Various joint

Jaguar, Land Rover, Fi

organizational structu

TATA Motors with Lead

The group chairman R

a Group strategy thi

businesses. His vision

CEO. As per one of th

ideal leader with ex

assumed to be one

members in 20 differe

i

22

otors to be more efficient in delivery,

in maintaining in-house inventory as w

t systems. The company has become one

ent system due to incorporation of these IT

of TATA Motors are interconnected wit

the divisions are connected with internetw

fast flow of information among the emplo

of directors, vendors, suppliers. The com

letters about the wellbeing of the empl

lly. This keeps all the employees to be

me and gives them the latest updates and

stly focuses on innovations and how it

re and its stability. In Tata motors, the

aid in introduction company has introduced

they became a boom. For example, Tata Na

Tata, to make a car for middle class famili

ket successfully and it creates a blast in a

er models like Tata Ace, these are

d mini-truck & Tata Magic is one of its ownsome kind of spirit to work for orga

husiasm, sense of belongingness towards o

ployees of Tata motors started feeling N

on, Mr. Ratan Tata was able to deliver h

e period. Research and Development d

tinuously on designing and developing new

entures of the company also working for

at, Xenon, etc. These practices help compa

re.

rship Style

atan Tata is responsible for transforming Ta

k-tank and a promoter of new ventures i

of making a truly international company b

e paper there is no such ideal leader rather

erience. Initially his decisions were critici

f the best in the world. He is currently

nt organizations across 23 different industri

payments, order

ll as ware house

of the best in the

solutions.

intra networking

rking system. This

ees, management

pany is publishing

yees, promotions,

connected to the

happening in and

helps to improve

also focuses on

various innovative

no, it is a dream of

s in Rs. 1 lakh. and

tomobile industry

irstly India's first

kinds. This type ofnization with full

rganization. All the

ano as their own

is dream in reality

partment of Tata

innovative product

he same goal like

y to strengthen its

ta Motors Ltd. into

n high technology

ought in a foreign

one evolves as an

ed but now he is

part of 203 board

s.


23/30


Earlier Tata Motors w

few said theyd buy t

first. Reliability was a

slew of successful lau

(and the Nano). It hasDuring this time Tata

man leading the char

European operations

Every plan in the co

team. The parent gro

CEO of the company

bonus and incentives

true leader with a cle

pays a lot of focus on

can be said to be serv

Before Mr Forster joi

in the year ended M

continue to increase s

much time with the e

i

23

s seen as a sleepy company. Its products w

eir cars for personal use. Its trucks were al

lesser consideration. But since then the c

nches the Indica Vista, the Manza, its ran

also gone and bought a Spanish bus maker,Motors has also realised it needs to globalis

e is Carl-Peter Foster who was in charge

nd he is trying to internationalize the com

pany is first evaluated under Enterprise

p doesnt have much control over the TATA

who is the boss. He draws a hefty salary o

per month and is on a contract period of t

r vision of bringing TATA motors on intern

R&D. He can be said as a leader first while t

nt first. Both this styles are complementary

ned this company, reported its first annual

arch 2009, since then he has been doing

ales while simultaneously cutting costs. He

d customers but addresses the whole comp

re dependable but

o bought for price

ompany has had a

ge of world trucks

Hispano Carrocera.e aggressively. The

f General Motors

any in true sense.

Risk Management

motor and its the

over 34 lakh plus

ree years. He is a

tional grounds. He

he group chairman

to each other.

loss in seven years

a fairly good job

doesnt spend too

any quarterly.


24/30


ANNEXURE

1. Correspondence with

Communication from group me

Reply from interviewee to grou

the official to 25/8/2010 over p

i

24

Interviewee

ber to interviewee through e-mail

member through e-mail. (The interview date w

one)

as rescheduled by


25/30


We conducted the second int

(Product Development Electric

i

25

erview telephonically with Mr Rakesh Kapoor

als) Pune on 29th

August 2010 at 1530 hrs.

, Deputy Manager


26/30


2. Interview Questionn

1. What are the organizVision

"Best in the manner in

our value system and

Mission

To become a world cl

and enable Tata Moto

2. How many divisionsbased on geographica

of both?

TATA MOTORS has a

based on product typ

Both these divisions h

south east and west z

3. What are the opportprogression programThere is a very great s

normal middle level e

exceptional record an

4. How much support issuch as professional

Tata does provide res

has tie ups with vario

the company for high

5. Who decides the worThe work is distribute

assignments. The stra

operational activities

base of their yearly pe

6. Are new ideas from eit implemented?

Yes new ideas are wel

They have a suggestio

i

26

aire

tions goals and Mission?

which we operate, best in the products we

thics.

ass automotive engineering and product de

rs to become a world class automotive com

oes TATA Motors have? Are the Divisions o

l situation or based on products differentia

ixed organizational structure. There are tw

viz Commercial vehicle division and Passen

ave been subdivided as per geographical loc

ne.

nities to get promoted over the years? Wh

policy deployed in TATA Motors?cope of growth along with the company. On

ployee is promoted every 3-5 years. An em

good performance is promoted on an aver

made available to individuals for professio

courses, seminars and trainings, higher ed

arch opportunities. It encourages research

s universities. Scholarship of 50% up to 100

r education. They also have in house trainin

distribution? And How?

in based on strategic activities or operatio

egic level activities are taken up by top man

re distributed to middle and lower level. Th

rformance appraisal.

mployees welcomed? If an idea is found go

comed from the employees and they are re

n boxes to invite new ideas. Few ideas have

eliver, and best in

elopment centre,

any.

f the organization

tion? Or is it a mix

main divisions

er cars division.

tion into north

t is the career

an average a

ployee with

age of two years.

al development

cation?

ased projects. It

is provided by

g programs.

al/routine

agement. The

is becomes the

d enough then is

arded suitably.

also been


27/30


implemented. (When

envelope).

7. How much control ofTATA Motors is more

Board of directors of

8. What is the reporting

9. How often managemThe management inte

addresses the whole c

Accordingly the lowerbasis.

10.How often different dEvery month there is

activities throughout t

11.Is the interaction amlevels or interaction i

The functional groupwelfare association co

employee and their fa

i

27

asked very trivial example was given, like ch

parent company is there on TATA Motors?

r less independent. All the strategic decisio

ATA motors.

procedure and flow?

nt interacts with employees?

ract with the employees on a regular basis.

ompany thrice a year, MD visits each divisio

management have meeting with employees

epartments comes together and at what le

ManCom meeting. Apart from that there a

he year.

ng employees (at different posts) only limi

there on personal level also?

eets thrice a year for a cultural event withnducts various activities throughout the yea

mily including different sport activities.

nge in shape of

s are taken by

he chairman

quarterly.

on day to day

el?

e various cultural

ed to formal

amilies. Ther which involves


28/30


12.Is there any differencNo, there is no much

13.How the span of contAt corporate level the

lower level managem

structure is somewhe

14.To what extend decisithe top level interfer

Each employee is bou

identifies different res

functionally and finan

15.In general, in TATA Mcolleagues/juniors?

Yes, they have a ment

themselves in the fun

16.How the organisationdoes it take for a mes

versa?They have newsletter

are circulated though

Chairman, MD and CF

is always accessible to

17.What practices do yodecision without kno

In case of conflicts the

18.How do you approacwhat factors prompte

already incurred?

They have an Enterpri

different aspects of a

background.

19.Is TATA Motors a proTATA Motors is more

i

28

in working styles of an Indian CEO and a

ifference in their working.

rol of managers at TATA Motors?

span of control varies from 1:5 to 1:7. While

nt it varies as 1:10. This indicates that the o

e between flat and hierarchical structure.

on making power given to a department?

in working within a department?

d by TATA Code of conduct and authority

ponsibilities and decision making powers of

ially.

otors, whether the managers act as a ment

oring program which enables each employe

tional areas.

communicates effectively with the employ

sage to reach from top of the organization

and house magazines published monthly fo

out the company. Also regular emails/corres

are circulated on regular basis. The higher

the lower level.

implement during conflicts? Have you eve

ledge of all the needed data?

action plan is chaired by top management.

complex problems? Like In case of NANO

d to cancel the project there in spite of hug

se risk management (ERM) team that studie

y occurrence on operational, functional and

uct oriented organization or people orient

f a product oriented organization.

on Indian CEO?

at the middle and

rganisational

ow much does

atrix which clearly

an individual both

or to their

to empower

ees? How long

o bottom and vice

r each division and

pondence from

level management

r had to make a

Singur Plant,

e investment

and evaluates

strategic

d organization?


29/30


LOG OF VISIT

Whom visited

1.

2.

Who Visited

1.

2.

When Visited

First Interview

Date

Time

Venue

Second Interview

Date

Time

Nature

i

29

Mr. Rajesh Aidoor,

GM (Internal Audit & ERM)

TATA Motors Limited

4th

Floor, One Forbes,

1 Dr VB Gandhi Marg, Fort

Mumbai 400 001

akesh Kapoor

eputy Manager (Product Development El

&D Department, Pune

ata Motors

une - 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

ctricals)


30/30


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104-118.

Damanpour, F., & Gopalakrishn

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Doherty, N. F., Champion, D., &

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Hick, M. (2008). Leadership Typ

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Mostovicz, E. I., Kakabadse, N. K

leadership developement. Lead

Mostovicz, E. I., Kakabadse, N. K

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Quelch, J. (2008, October 1). Ho

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Stone, A. G., Russell, R. F., & Pat

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Vickery, S., CorneliaDroge, & Ge

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of organizational structure dime

i

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Documents

Study on Organizational Structure and Leadership Style of TATA Motors