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    Effects of Organizational Behaviour in Tata Motors Essay

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    Organizational behavior investigates the impact of persons, groups and organisational construction on the behavior and civilization within an organisation. OB aims to better the effectivity with which an organisation works ( Ashraf, T ). Peoples in an organisation are complex and multidimensional. They possess the desire to fulfill their demands and they need to tie in themselves with other people for larning and turning ( Lawrence, 1998 ).

    Organizational construction is a strong determiner in determining an organisation‘s behavior and determination regarding construction has major influence on an organisation ‘s scheme ( Galbraith, 1973 ). To be effectual, any organisation construction must make a balance between distinction and integrating and to react rapidly to the economic conditions, it should incorporate across differentiated sections ( Lawrence and Lorsch, 1967 ). Harmonizing to Schein, 1990 organisational civilization is the premises and beliefs of organisation and the behavior that the leaders get for the intent of determination devising and job resolution. Schneider, 1994 argues that organisational civilization is strengthened with the director geting the people with similar civilization to those who are already a portion of it.

    It is indispensable that the organisation chooses their leaders and leading manner with great attention as it has direct impact on the workforce attitude and motive degrees. Harmonizing to Yukel, 1998 a leader must be able to affect people in the organisation, actuate them towards accomplishing organisational ends and aims.

    The pick of leading is influenced by the organisational civilization. For illustration, in an organisation where the undertakings are non really good defined and people are non plenty dedicated, the leading manner will of course be one which reflects a commanding power. Similarly leading manner is besides affected by the organisational construction. It can be top-down in instance of functional construction or collaborative in instance of matrix construction ( Beer, M ).

    Organizational Behaviour

    Beer, M ( Harvard University )

    In the current epoch of globalisation, OB needs to cover with assorted issues and challenges that may originate. For illustration, transportation of production director of a fabrication house which is puting up a new subordinate in a foreign state. The director is now in a new organisational and cultural scene where work force may exhibit really different demands, attitudes and behaviors from the place state work force. This issue is particularly relevant to MNCs such as TATA Motors.


    TATA Motors Limited was established in 1945. It is India ‘s largest car company. Its portfolio consists of two chief concern units- Passenger Car Business Unit ( PCBU ) and Commercial Vehicles Business Unit ( CVBU ). TATA Motors Ltd is bit by bit bettering its planetary presence by geting concerns abroad. It is the 2nd largest coach maker and 4th largest truck maker in the universe. Tata Motors entered in the Indian rider vehicle concern every bit tardily as 1991 and within two decennaries, it is the India ‘s 3rd largest rider vehicle participant. The 2009-2010 amalgamate grosss stood at US $ 20 billion ( TATA Motors Annual Report 2009-2010 ). ( Appendix 1 ).

    Tata Motors in 1998 launched India ‘s first indigenously designed auto named “ Tata Indica. In September 2004, Tata Motors Ltd became the first Indian Engineering Sector Company to be listed on the New York Stock Exchange ( NYSE ). Since 2005, it is in a strategic confederation with Fiat. In 2008, Tata Motors revealed the purpose behind universe ‘s cheapest auto “ Nano ” and launched it in 2009. Prior in 2008 it acquired two esteemed British auto trade names – “ Jaguar ” and “ Land Rover ( TATA Group Brochure, March 2010 ).

    Tata Motors ‘ fabrication workss in India are established at the undermentioned locations:

    East- Jamshedpur

    West- Pune and Sanand

    North- Lucknow and Pantnagar

    South- Dharwad

    Tata Motors and Fiat have their common fabrication works at Ranjangaon, Pune. Besides, Tata Motors ‘ besides has international fabrication workss in UK, South Korea, Thailand and Spain ( TATA Group Brochure, March 2010 ).

    TATA Motors follows the coverage process and flow as shown in Appendix 2. The company has constituted a set of specific commissions to pull off the operations at a diverse degree. The Board of Directors empowers these commissions which helps them to put marks for the direction.

    Subordinates Companies

    Tata Motor ( )

    Jaguar Land Rover ( JLR ) ( ) ( )

    Telco Construction Equipment Company Ltd ( Telcon ) ( )

    Tata Motors ( Thailand ) ( )

    TAL Manufacturing Solutions Ltd ( )

    Tata Technologies Ltd ( TTL ) ( )

    Tata Cummins Ltd ( TCL ) ( )

    TML Distribution Co

    Tata Marcopolo Motors

    Tata Daewoo Commercial Vehicle Co Ltd ( )

    Tata Motors European Technical Centre ( TMEC )

    Tata Autocomp Systems Ltd ( )

    HV Transmissions Ltd ( HVTL and HV Axles ( HVAL ) ( )

    Tata Motors Finance Ltd ( )

    Hispano Carrocera S.A. ( )

    Concorde Motors ( India ) Ltd ( )

    Beginning: ( TATA Group Brochure, March 2010 ).

    TATA Motors Ltd manufactures a assortment of vehicles under the classs of commercial, public-service corporation and rider vehicles. The complete merchandise profile is attached in Appendix 3.

    Research Methodology ( 500 )

    Data Collection

    Issues and Challenges



    Organization scheme ( 1500 )

    Strategic purpose

    Harmonizing to Sutherland & A ; Canwell ( 2004 ), “ strategic purpose ” is the purpose of an organisation to synchronise and impel the direction and work force towards accomplishing the needed ends and aims. If we closely look at the manner Tata Motors has been spread outing in international market, it is clear that the purpose is acquisition and amalgamations of similar concerns globally. Latest illustrations are the acquisition of two British auto trade names Jaguar and Land Rover and strategic coaction with Cummins to organize Tata Communications Ltd ( TCL ). Harmonizing to Stacy ( 1993 ), strategic purpose is to deliberately portion an connotation with the members of direction and work force to accomplish a coveted place by following a peculiar scheme. In add-on to this, Tata ‘s strategic purpose is to get new beginnings of resources and capablenesss to accomplish its ends and aims ( Robson, 1997 and Thompson, 2001 ).

    Resource and strategic capablenesss

    Recently in the context of acquisition of Daimler Chrysler by Tata Motors, Mr Ratan Tata believes that he can better the concern and increase the grosss faster than General Motors. Harmonizing to Richter ( 2007 ), there is possibility of merely two out of the three to last in the resort area. If we look at the nucleus values of Tata Motors, we find that they are committed to present quality in life of clients and they have demonstrated through the successful launch of Tata Nano that their nucleus strategic capableness remainders in graduated table of operations ensuing in cost efficiency. Besides harmonizing to Brockbank ( 2002 ), Tata ‘s leading development will reflect its attending towards enriching value add-on in its human resource schemes.

    Tata Motors Business Model

    Osterwalder et Al. ( 2005 ) have defined a concern theoretical account as a conceptual instrument or model made up of a wide group of entities and relationships bing between them through which an organisation expresses its principle of transporting out concern activities in certain ways. It describes the value system of an organisation covering several sections of clients and of the organisation architecture and its web system dwelling of spouses and clients to bring forth profitable grosss in the long tally.

    Tata ‘s concern theoretical account is known as Tata Business Excellence Model ( TBEM ) determines the quality motion within the groups. It functions under the auspices of Tata Quality Management Services ( TQMS ), which is an internal administration created by TATA to assist different companies under the TATA umbrella to accomplish their concern aims through quality direction. TBEM is designed to present strategic focal point to enable the organisation to get and pattern the most sophisticated and profitable planetary concern procedures. Thus TBEM is besides a tool for the organisation to maintain on germinating in the tough concern environment ( TQMS ).

    Tata Business Excellence Model

    Beginning: TQMS: TBEM

    Elementss of TBEM


    Tata Motors gives a batch of attending towards guaranting that the senior leaders of organisation remain focused on accomplishing the organisational vision and transcend the expected degrees of public presentation. It believes in mensurating organisational public presentation, making an atmosphere conducive for ethical behavior and developing future leaders for achieving first-class public presentation.

    Strategic Planning

    It emphasizes on be aftering the actions, implementing those programs and guaranting the aims are met and accomplishments are measured and sustained for bettering the operation of concern. While it is of import to decide smaller cardinal strategic issues faced by Tata it is command the competitory environment.

    Customer & A ; Market Focus

    It places a great importance on developing and keeping relationships at corporate and concern degrees through effectual hearing, participative acquisition, and public presentation excellence. Tata Motors understands its clients good. Nano is an first-class illustration where the chief motivation was fulfilling the demand of in-between category citizens of India.

    Measurement, Analysis and Knowledge Management

    It is all about measurement, analyzing, and pull offing the cognition within the organisation in regard to breaking the public presentation degrees.

    Workforce Focus

    It addresses cardinal human resource direction patterns focussed toward making and keeping an ambiance of high-performance and directing the employees towards success. It covers issues such as employee battle and development in incorporate manner ( i.e., aligned with your administration ‘s strategic aims and action programs ). It besides includes and enhances human resource planning ( HRP ) as a constituent of overall strategic planning.

    Process Management

    Tata Motors through its procedure direction identifies its nucleus and typical competences and pull offing them in a mode which helps it to accomplish effectual design for organizational acquisition and uninterrupted betterment of concern procedures.

    Business Consequences

    It incorporates the organisation ‘s nonsubjective rating of itself and the clients ‘ rating of the offerings of the organisation. It besides includes the consequences such as fiscal and market public presentation, HR public presentation and polishing the leading system.

    Beginning: Tata Quality Management System ( TQMS )

    Tata ‘s current schemes

    Tata ‘s current focal point is on leveraging its capablenesss in the car sector and spread outing its market and distribution web with a focal point on understanding the penchants of local consumers and developing in-house technology capablenesss.

    Since the car industry is significantly affected by cyclicality. To cut down its impact, Tata Motors is continuously spread outing its operations in different varied sections by fabricating broad scope of merchandises across distant geographicss.

    Tata Motors is spread outing internationally on the construct of double scheme. Firstly it is spread outing across geographicss through strategic acquisitions. Latest illustrations are acquisition of Jaguar Land Rover ( JLR ) and Daewoo Motors Ltd. Secondly it is spread outing its current merchandise scope into chosen states, such as enlargement of its Indica trade name of autos in UK.

    Tata Motor ‘s graduated table of operations is highly immense and varied. This provides it with an chance to cut costs and prolong its cost based competitory advantage. In instance of Jaguar Land Rover ( JLR ), Tata has followed particular breakeven scheme where it has concentrated on the factors such as stuff cost and fabrication, guarantees, selling and administrative disbursals, merchandise development outgo and human resource direction. The schemes are detailed in Appendix 5.

    The focal point on quality direction and client satisfaction remains high on the precedence list of Tata Motors. We have established a process for guaranting quality control of outsourced constituents. They have a plan for seller aid through which the quality of natural stuffs and constituents is maintained. The penchant is given to the providers and sellers with TS 16949 enfranchisement. For Jaguar Land Rover ( JLR ) concern, sellers are required to be certified with TS 16949 and ISO14001 criterions.

    Harmonizing to the JD Power Consumer Satisfaction Index 2009, Tata Motors showed the best public presentation by traveling up from 11th rank in 2008 to 5th rank in 2009. The new Jaguar XF1 launched in 2008 has won several awards such as the ‘Best Executive Car ‘ award by JD power UK study, ‘Best Executive Car ‘ award for the 3rd back-to-back twelvemonth by the Diesel Car and the What Car? Magazines, Editor ‘s Choice Award as Best Luxury Vehicle for 2010 by World of Wheels Magazine in Canada. A complete list of awards won by Tata Motors has been attached in the Appendix 6.

    Beginning: Tata Motors Annual Report 2009-2010

    Organizational Structure ( 600 )

    “ Organizational construction is possibly the least understood and most under-appreciated subject in concern. ” James Schermerhorn, Jr., Professor, Ohio University

    For an organisation to successfully apportion and direct its resources ( physical and human ) towards accomplishing the organisational aims, it is indispensable that it designs the construction which fits with its organisational scheme. Planing the right organisational design involves division of undertakings and duties into specific occupations, delegating occupations and employees to assorted sections and deputing the authorization and duty ( Dewar & A ; Simet, 1981 ).

    Important elements of an organisational construction are occupation designing, occupation redesigning and occupation specialisation. It is critical factor that determines the success of both organisation and its employees ( Fontaine, 2007 ). The cardinal ground behind planing an appropriate organisational construction is effectual and efficient use of resources. It may embrace organisation of assorted occupations into different sections, making the coverage process and flow of information concatenation, division of concern units under functional and divisional caputs. As argued by Mische ( 2001 ), in the context of a concern environment that is highly dynamic and is impacted significantly by technological alterations, the demand to accommodate becomes inevitable ; organisations such as TATA Motors need to be flexible in their concern operations and the procedures followed.

    Nohria et Al ( 2003 ) in the July 2003 Harvard Business Review found the undermentioned organisation construction to be most productive and effectual:

    Which does off with bureaucratic elements

    Which makes it easier to work in the concern environment

    Which enhances the degree of coaction between squads and sections

    Which allocates the right type of resources in the right topographic points

    The Organizational Structure of Tata Motors


    The organisational construction of Tata Motors follows the matrix signifier which incorporates the elements of functional and divisional organisational constructions. It is a planetary automotive giant operating in assorted car sectors across distant geographicss ; hence there is a demand to incorporate its divisions along the assorted functional units of its concern. If we look at the organisational construction of Tata Motors, we will happen that the functional units are divided into the classs of Finance, Strategy, Engineering, Communications, Human Resources and Legal. These functional sections construct the strategic model on which Tata Motor ‘s different concern sectors are based ; such as India Operations, Commercial Vehicle Business Unit and Passenger Car Business Unit ( Appendix 6 ). Tata Motors consists of flexible, adaptative and multi-tasking persons who can work in different state of affairss in different functions.

    Harmonizing to Chen & A ; Huang ( 2007 ), the organisational design impacts and is impacted by the type of interactions, information exchange and knowledge direction. Tata Motors encourages relationships at both formal and informal degrees through planing level organisational constructions at different divisional units.

    Sing the span of control a level organisational construction benefits Tata Motors because it has some really experient squad of leaders who can supply a strategic way to the direction working under their supervising ( See Appendix 7 for cardinal participants in Tata Motors Ltd ). The organisation is focused towards accomplishing the ends and visions set by Mr. Ratan Tata, therefore there is a seeable demand for liberty which is good supported by a flatter construction. Lesser degrees in the organisation construction provide a better platform for invention and customization of merchandises.

    Associating Organizational Culture with Organizational Culture and Scheme

    An identical characteristic of organisational construction is the flow of information ; the employees follow a formalistic form of describing. Tata Motors follows a codification of behavior that helps in make up one’s minding on and delegating duties to advance group working. One of the biggest benefit of such a construction is the handiness of top direction to the center and lower direction degree employees. This is highly critical in constructing a civilization that is positive and productive. Tata Motors Ltd links all its functional sections through Enterprise Resource Planning ( ERP ). It promotes easy sharing of of import information between its different sections. The assorted divisions and sections are interconnected through intranet ; therefore advancing instant information sharing among the employees and direction. This is particularly helpful in maintaining the organisation ‘s human resources connected at every degree.

    The current focal point of Tata Motors is on revolutionising the auto concern. This means the strategic focal point in on innovating and developing the domestic and international market. The two recent illustrations back uping the principle are the launch of Tata ‘s universe ‘s cheapest car- NANO and acquisition of Jaguar and Land Rover trade names ( JLR ). During the stage of Nano development and launch the whole organisation took it as their personal accomplishment. All these factors are beef uping the organisation ‘s civilization along with its organisational design by implementing the right concern scheme.

    Organizational Culture ( 500 )

    The employees at different degrees of the organisation ( lower, in-between and top ) are cognizant of organisation ‘s every scene and action embedded in the elements of civilization ; therefore the manner an organisation manages is unwittingly judged by its human resources which influences their behavior towards their ain and organisation ‘s aims Nadi ( 2008 ). Whether an organisation will successfully implement its scheme and accomplish the set ends is extremely dependent on the civilization within it.

    It is highly critical for an organisation to develop the right sort of cultural scenes within which its work force operates, learns, develops and demonstrates. Culture can be understood as the integrating of organisation ‘s beliefs, norms patterns and organisational behavior. It besides links the organisation ‘s schemes, engineerings and merchandises ( Kefela, 2010 ). The organisations which focus extensively on bettering quality through Total Quality Management, such as Tata Motors Ltd find that the premiss of pull offing quality ( TATA Motors Ltd managed its quality through TQMS ) can be specifying force behind civilization alteration and betterment ( Chaudron, 1992 ).

    The civilization in one organisation can be really different from another depending on the corporate scheme and what is to be achieved. Cultural development is besides an indispensable facilitator of leading development ( Bal and Quinn, 2001 ). Tata Motors works towards developing leaders maintaining in position the context and civilization in which they are developed.

    Organizational civilization is the backgrounds in which leaders are developed the leaders are developed and is hence imperative towards developing a competitory and sustainable leading across organisation. Surveies by Collins and Poras ( 1994 ) found out the strong linkage bing between organisational civilization and the public presentation of its employees which is indirectly linked with client satisfaction.

    Elementss of Organizational Culture at Tata Motors Ltd

    The organisational civilization of Tata Motors is apprehensible as the “ task civilization ”. Tata Motors believes in supplying complete client satisfaction and follows rigorous safety related steps and guidelines. To supply a rich client service experience it undertakes effectual and efficient networking of gross revenues and service networking. It performs in Concord with its client demands and expected degrees of public presentation and service. It besides adapts itself to the assorted rival schemes and approaching regulations and ordinances. Thus the civilization within the organisation is focused on covering dynamic and ambitious forces of concern environment and is really good complemented by its matrix and level organisation construction.

    The Task Environment

    Beginning: Own Creation

    Tata Motors strongly believes in the fact that “ all the difference is made by the people ”. For implementing the construct in world it makes a batch of investing in developing its people possible by the methods of engagement, authorization, preparation and development, larning chances. Thus the organisational civilization of Tata Motors can be best understood as one which provides infinite for uninterrupted betterment for its human resources. The directors need non worry about the everyday jobs every bit much as they need to concentrate on truly bettering the quality of work and technological and societal progresss. The civilization at Tata Motors can be best described as delegation-oriented and empowerment-focused. It is a civilization which recognizes people, groups and squads for their personal and organisational accomplishments.

    Tata Motors Ltd has ever given important importance to developing an organisational civilization wherein invention is encouraged. The employees are continuously encouraged to follow advanced patterns. With this consequence, TATA Motors Ltd has assorted technological and choice betterment related plans.

    Although its chief focal point remainders on the Indian automotive market, it has been hammering in the international markets in recent times. It is spread outing its concern profile in emerging markets like Hong Kong, Mexico, Russia, South Africa, United Kingdom, etc. This poses challenges for Tata Motors to suit its civilization in these states with its corporate civilization. It is critical to take the right concern theoretical account with cultural values and beliefs that are consistent with its overall corporate scheme. It is besides spread outing its operations in states in Britain, Italy and Spain.

    Tata Motors has ever been endeavoring to achieve technological excellence it its concern procedures and operations. Therefore the Research and Development section is invariably working towards accomplishing excellence. It is puting on large graduated table in research and green engineering reflecting committedness towards ecological impacts of automotive industry.

    Tata Motors possesses strong belief in helping the cause of nature and clime control ; its attempts for invention in the field of technology and engineering are aimed at developing alternate fuels. It has besides made CO2 emanation norms- EURO compulsory in many of its vehicles.

    The organisational civilization of Tata Motors makes it indispensable to develop its leading potency and impact while keeping its original values which aim to better the people ‘s quality of life. It is every bit committed to the cause of societal development which is seeable in its Corporate Social Responsibility through which it helps the under privileged subdivisions of rural and urban society.

    Management and Leadership ( 600 )

    The group president Ratan Tata is responsible for transforming Tata Motors Ltd. into a Group scheme think concerns. His vision of doing a truly international company brought in a foreign CEO. As per one of the paper there is no such ideal leader instead one evolves as an ideal leader with experience. Initially he assumed to be one of the best in the universe. He is presently portion of 203 board members in 20 different organisations across 23 different industries.

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