A REPORT ON CHANGE MANAGEMENT AT TATA MOTORS

SUBMITTED BY VANDITA MATHURSUMAN BURMAN

BACKGROUND OF TATA MOTORS

• It was founded in the year 1945• India’s largest automobile company.• It’s headquarter is situated in Mumbai,

Maharashtra.• Formerly it was known as Tata Engineering

and Locomotive company.

LOCATION OF TATA MOTOR PLANT IN INDIA

CHANGES AT TATA MOTORS

ORGANISATIONAL CHANGE•Change in Technology •Change in Strategy

CHANGE IN WORKFORCE AND CULTURE•Employees were exposed to

outside world•Young Employees were

encouraged

NEED FOR CHANGE

• In the year 2001 Tata Motors incurred losses of 5 billion rupees.

• They were predominantly a manufacturer of commercial vehicles which is a very cyclic business.

• The commercial-vehicle market in India shrank by more than 40 percent and had led to consequences.

INTRODUCTION TO CHANGE PHASE OF TATA MOTORS

They decided to bring transformation in three different phases. Each phase was intended to last around for 2 years.

PHASE 1

• Reducing Cost.

PHASE 2

• Consolidating their position in India.

PHASE 3

• Involved in going outside India and expanding operations internationally .

PHASE 1- TO STEM THE BLEEDING COST.

• To reduce the break even point.• It called for major reductions in variable , fixed

and interest costs.• They went in for e-sourcing.• The company adopted CAD and CAM systems.• They launched Customer and Dealer

Management program in 2003.

PHASE 2 – CONSOLIDATING POSITION IN INDIA

• This phase concentrated on the development of product.

• The positioning in the market place was strengthened by:

1. New sales planning process2. Reducing the impact of cyclic business.3. Improving liquidity and profitability of dealers.4. Re- orienting towards customer satisfaction.5. Extending the reach for distribution network.

PHASE 3 – INTERNATIONAL GROWTH

• International Diversification was a key part of this phase of transformation strategy.

• Looked for opportunities for inorganic growth.• They identified 12 countries as priority markets.• In order to facilitate globalization, the

previously independent export division was merged into passenger car and commercial vehicle division.

TATA NAN0 –SWEEPING CHANGE• Tata Motor’s was termed as THE PEOPLE’S CAR.• It was a dream project initiated by Mr Ratan

Tata .• The project was initialized with the concept

that it will bring mobility to the masses in an efficient and economic manner.

PROBLEMSDREAMS

SUCESS CRITERION

FEATURES OF TATA NANO INTIALLY

TATA NANO

COST OBJECTIVE

RELIABILITYSAFETY IN MIND

SETBACKS FOR NANO

It did not have large dealer network in

Rural areas .

The Initial advertising campaigning did not

go well with the Indian Mindset.

Tata Nano failed to pose a challenge to

the market players in the re- sale car niche

segment.

Few of the Initial Tata Nano cars caught fire.

REVIVAL OF TATA NANO

• Revival was done by Tata Motors by correcting their 4 P’S .

4P’S

PRODUCT

PRICE

PROMOTION

PLACE

CHANGES...

• Re- engineering was done to fix issues related to fire and customers were offered safety upgrades .

• The next campaign focused on Tire 2 cities with bad roads .

• They had set up 210 ‘F’ Class showrooms.• They tied up with Big Bazaar.• Special Tata Nano finance scheme was launched.• Ultimately they worked on Re- Positioning of Tata

Nano.

PRODUCT MODIFICATION

CHANGE IN WORKING CULTURE

NEED FOR CHANGE IN WORKING CULTURE

In any organisation people resist to

Change.

The approach of people had become

very inward.

CHANGE

Initiated the employee to think more about the customers rather than

their careers

Ethical and Morale values, Strong

employee relationship, Building a strong committed team

DIAGNOSIS OF CHANGE

ENVIROMENTAL INPUTS

Technological Changes

Production Line

Improvement

STRATEGY

Cultural Change

Behaviour and Shared

Values.

LEADERSHIP

Commitment Level

Patience

STRUCTURE AND

ADAPTABILITY

ROLES AND RESPONSIBILITIES

ADAPTABILITY

INFORMATION TECHNOLOGY

TRAINING VIDEO MODLE

CAD/ CAM SYSTEMS

CULTURE

VALUES , MYTHS

TRADITION, NORMS

OUTCOMES OF DIAGNOSIS

INTERNATIONAL MERGERS AND ACQUISITION.

• In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit.• On 27 September 2004, Tata Motors enlisted at the New York Stock Exchange.• In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach

manufacturer Hispano Carrocera.• In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo

Bus, to manufacture fully built buses and coaches.• In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer

of the Jaguar, Land Rover, and Daimler luxury car brands, from Ford Motor Company.• In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata

Daewoo.• In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National

Quality Award.• In 2014, Tata Motors introduced first Truck Racing championship in India "T1 Prima

Truck Racing Championship".

INTERVENTION IDENTIFIED DURING CHANGE

1 •Action Planning Workshops and team-level interventions to enhance engagement, motivation and commitment

2. •Parivartan , an online listening post was created for employees to share their comments, feedback, suggestions on the existing system as well as the new system to be conceptualized.`

3. •PACT, i.e. the Performance Assessment and Coaching Tool, the evolved avatar of the PMS at Tata Motors, which held Coaching Discussions at its core.

ROLE OF EXTERNAL CONSULTANTS

CHALLENGES AT THE TIME OF IMPLEMNTATION

CHANGING THE APPROACH OF ORGANIZTION

POLITICAL CONTROVERSY OF

TATA NANO

MANAGING YOUNG EMPLOYEES

COMPETING WITH RIVALS IN SMALL

MARKET SEGMENT

ROLE OF TOP MANAGEMENT IN BRINGING CHANGE

• Mr. Ravi Kant, the then MD of Tata Motors was responsible successful implementation change process.

• Mr. Ratan Tata has displayed extreme patience while implementing change.

• Mr. Ravi Kant’s vision of sustained growth has helped .

• He successfully implemented the process bring a change within the experienced employees.

CONCLUSION OF CHANGE AT TATA MOTORS

The company had streamlined its processes and as a company it’s processes are focused on

CHANGE

• QUALITY• DESIGN

CHANGE

• FASTER PRODUCT DEVELOPMENT

• SALES AND AFTER SALES SERVICE

THANK YOU