HUMAN RESOURCES MANAGEMENT

TATA MOTORS
&
It’s
HR POLICIES

By:
Supraneet Arya
PGDM I-YEAR (Trimester-2)
PGDM/09/031

Ajay Kumar Garg Institute of Management,

Ghaziabad.
 Presentation Scheme
• Profile of Tata Motors
• Global Reach
• Product Range
• Technological Resources
• Value Chain & Value System
• Achievements
• Diversification
• Human Resources
• HR Philosophy and Policies

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TATA MOTORS
 TATA MOTORS
We Drive By Your World Everyday
Tata Motors established in 1945, and entered into collaboration with Daimler
Benz of Germany in 1954 to manufacture commercial vehicles.
The collaboration ended in 1969. Tata Motors has since grown strength to
strength. It is the largest company in the Tata Group now, with a total
income of US$ 3.4 billion in the year 2007-08.
More than 3 million Tata Vehicles ply on the Indian roads making Tata a
dominant force in the Indian automobile industry.
Tata Motors is India’s only fully integrated automobile manufacturer with a
portfolio that covers trucks, buses, utility vehicles and passenger cars.
The company has spread its manufacturing facilities across India by setting up
plants at Jamshedpur, Pune, and Lucknow. This is coupled with nation-
wide sales, service and spare parts network.
Tata Motors’ Engineering Research Center has over 900 scientists and
engineers dedicated to product and process development, technology
upgradation and new product introduction.
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 Global Footprint
OTHER COLLABORATIONS/M&A & JVs
• Tata Daewoo Commercial Vehicle West Europe Russia*
• Hispano in Spain & Marcopolo In Brazil U.K. Ukraine*
• JV with Jardine Matheson for Italy
ConcordeMotors Central Asia
• Technology Tie Ups at Spain,Italy Afghanistan East Asia
Uzbekistan China
North Africa South Korea*
Egypt
South Asia
West Africa Bangladesh *
Senegal Nepal, Sri Lanka

LATAM
South East Asia
Brazil West Asia Malaysia*
Saudi Arabia Thailand
Iraq, Iran
South Africa East Africa
South Africa* Kenya*

* Assembly Operations also

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Product Range
TATA Motors: Commercial Vehicles

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Technological Resources
 R & D establishments at Jamshedpur, Pune & Lucknow – over
1400 engineers.
 India’s only certified crash test facility for cars and hemi
anechoic chamber for testing of noise and vibration.
 Tata Motors European Technical Centre (TMETC) set up in 2005
– primarily involved in design engineering and development of
products, supporting Tata Motors skill sets.
 Tata Daewoo Commercial Vehicle Co. has its R&D facility in
Gunsan, South Korea.
 Hispano Carrocera has its R&D facility at Zaragoza in Spain.
Value Chain & Value System
Transporters, Convoy Drivers Dealer Network, Marketing
Association Research Firms, Vehicle
Financing

SAP , VCM

Inbound Outbound
Operations Marketing Service

Logistics Logistics

SAP , CRM - DMS

Suppliers , Contractors
Regional Warehouses, Dealer
Workshops, Distributors, TASS

Strategic Alliances

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Inbound Logistics
 Long term contract with service provider’s – transporters and
agents.

 Personnel at regional offices for over seeing the smooth transit of

goods.

 Transparency and monitoring through deployment of IT – all

transactions through SAP.

 Efficient storage facilities – easy storage and retrieval.

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Operations
 Capital Equipment Manufacturing division – tooling development
capabilities of global standard.
 Apprentice Trainee Course – ensuring stable source of skilled
manpower.
 Automated manufacturing processes.
 Distributed manufacturing – Assembly units at South Africa,
Thailand, Bangladesh, Brazil etc.
 Maintenance – technical competence.
 Capacity Utilization – Mercedes Benz cars make use of Tata
Motors paint shop facilities.
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Outbound Logistics
 Stockyards, all across the country.
 Long term contracts with transporter’s – higher volume of
business to transporters ensures competitive price.
 Regional Sales Office and Vehicle Dispatch Section linked
through SAP.
 Efficient security system for prevention of any kind of pilferage.

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Marketing & Sales
 Structured approach to understanding the requirements of individual
customers .
 Clear identification of product requirements, leading to
development of innovative products – Tata 207 DI, Tata Ace.
 Independent teams for addressing the requirements of institutional
customers – Defense, State Transport Units.
 Helping to augment the scarce resources – Fiat selling vehicles
through Tata dealerships, in return Tata has access to Fiat’s
technology and unutilized capacity.
 Quick assessment of the changing market dynamics and consumer
preferences – Tata 407 LCV
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Service
 Easy availability of spare parts.
 Efficient collection of data from field and communication to the
respective plants.
 Pan India presence, as well as global presence.
 Large network of workshops – Dealer workshops and TASS.
 Training facilities – for dealer end and TASS personnel.

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Technology Development
 Approximately 2% of the annual profits of the company invested
in research and development.
 Knowledge portal – helps employees keep abreast with the latest
technologies.
 Extensive prototype building and testing facilities.
 Strategic partnerships – MDI (France), Fiat etc.
 Formal benchmarking process.

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 Achievements
 Car Plant Pune bags Gold Category Award in National
Productivity Contest.

 The sole winner of the JRD QV Award 2005 was the

commercial vehicle business unit, or CVBU, of Tata Motors.

 PCBU's business excellence initiative has come into its own.

• Serious Adoption Award in 2004
• Active Promotion Award in 2005

 Tata Motors have crossed the level of 60% to win the JRD-QV
award in 2001, 2004 & 2005 respectively.

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Achievements (cont..)
 The company has the only world-class crash facility
in Asia outside Korea and Japan.

 Developed an A-ECU (Electronic Control Unit) and

low-cost accessories that would effectively manage
critical engine and vehicle systems without calling for
a full-fledged and expensive conventional ECU .

 Striding towards new emission standards.

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Diversification
 1977 – First CV from Pune plant.
 1983 – First HCV rolled out.
 1989 – First LCV (Tata 407) launched followed by
Tata 608.
 1991– First passenger car Tata Sierra launched.
 1992 – Tata Estate launched.
 1994 – Tata Sumo launched.
 1997 – Tata Sierra Turbo launched.
 1998 – India’s first SUV Tata Safari launched.

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Diversification (cont..)
 1999 – India’s first indigenous Passenger Car
Indica launched.
 2001 – Second Generation Indica V2 launched.
 2002 – Tata launched Indigo.
 2006 – Launch of Indigo Marina.
 2008 – Tata acquired the Jaguar Land Rover
businesses from Ford Motor Company for net
consideration of US $600 million
 2008 – Launch of Suma Grande.
 2008 – Launch of Nano at ninth Auto Expo.
 2009 – Tata Winger Launched.
 2009 – Next Generation Indigo Manza Launched.
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Human Resources
 Vast pool of technically competent engineers and managers.

 Focus on development of technical capabilities – Technical

Training Centers, Alliance with technical Institutes.
 Focus on development of managerial capabilities – MTC’s,
executive training programs at premier business schools.
 Career advancement schemes – ESS, FTSS

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HR Philosophy
 Proper utilization of assets
 Motivating people to work hard
 Selective hiring
 Job fitting
 Training program
 Better working environment

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HR Policies
 Caring, show respect, compassion and humanity for
colleagues.
 Work cohesively with colleagues across the group
 Encourages self-sufficiency.
 Employees' relatives at Pune have been encouraged to
form various industrial co-operatives.
 The Tata Motors Grihini Social Welfare Society
caters to employees' women dependents‘ so as to
enable a housewife earn a modest amount without
neglecting their traditional duties towards the family.

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HR Policies (cont..)
 Executive Selection Scheme (ESS) - fast track
programme for accelerated growth.
 In-house vocational training and apprenticeship
programme trains the technicians.
 Rotational assignments and cross-functional mobility
allow employees to grow.

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Executive Selection Scheme (ESS)
a. ESS is a fast track programme for accelerated growth of high
potential professionals. This facilitates their early
advancement to challenging and visible assignments through
a very systematic procedure.
b. Candidates selected gain a huge lead in terms of promotion
and learning. They are promoted to Manager’s level thereby
saving almost 10 to 13 years of work time.
c. The successful candidates are relieved from their current jobs
and put on various project based training programmes under
the guidance of senior managers in the company.

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Executive Selection Scheme (ESS) (cont..)

d. If the candidates do not possess management education, they

undergo a 4 months MEP at IIM, Ahmedabad. After successful
completion of training the candidates are mandatorily rotated
across departments to acquire general management skills.

e. The ESS is a jewel in Tata Motors overall profile as it

provides a platform for every employee of the company to
perform and achieve maximum potential so as to exploit it
further for the growth of the company.

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Thank You!

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