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TATA Motors Mind Rover Case Study
TATA Motors Mind Rover Case Study
This case has been prepared by Tata Motors Corporate HR for TML Case study competition- Mind Rover. This case study is recommended for being used for the Mind Rover case study
competition only and does not illustrate either correct or incorrect handling of an administrative situation. No part of this case can be used, reproduced or distributed in any manner
without the approval of Tata Motors.
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As a part of his induction Prabir had visited Tata Motors manufacturing
& assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand,
Dharwad and Pune. He met employees at not just these manufacturing
units but also the sales and marketing offices across the country and the
R&D centres.
I think we are doing just the right things that any company should.
However, I find one best practice in one location is very different from
how it is practiced in another location. As someone who is still new to the
culture, I am still to discover One Tata Motors way of doing things when it
comes to employee initiatives. He had commented.
Having said that, the average attrition rate of 9%, was way below the
industry average of 13.3%. There were employees who had been in the
system for 24 to even 35 years and they carried a lot of tacit knowledge.
This needed to be transferred and documented for the next gen. What
bothered Prabir was there were still some quarters of the organization
which suffered from attrition which was more than the company and
industry average. In particular, the Sales & Marketing functions and one of
the Greenfield locations had an attrition of around 15%.
With the talent requirement in the managerial cadre alone going up to as
many as 3500 in 2011-12, Tata Motors may need a multi-pronged strategy to
get the best in class talent. He thought that, faced by limited talent pool
of overall auto industry, the company may also have to source from FMCG,
Consumer Durables and even consulting organizations. Also there are
plenty of Indians in the US, Europe and Middle East who want to repatriate
to India, but are they attracted to our Indian offices? Are we ready? He
kept thinking...Besides, he thought, there is the all important Engineering
Research Centre (ERC), the R&D centre, that would support the companys
long term strategy, which had its own share of niche hiring challenges. The
existing manufacturing plants would need to expand and hire replacements
for those superannuating as well! Is the Leadership of Tata Motors ready to
hire from catchments other than the Auto Industry?
Prabir always shared his previous experience from Pharma industry where
he faced similar dilemma.
You can expand the catchment by looking for learnability. Hire from
beyond the industry. Unless you question the established paradigm, you
will be where you are. So I think these are some of the ways in which to
respond to the challenges. But it will mean, people getting comfortable
with new thought paradigms and saying it is ok not to be an engineer, its
not a sin. There are many jobs, for instance, where it is not a sin not to hire
a Chartered Accountant for that job, its not a sin not to hire an MBA HR
for certain jobs. That may not be required. But I think we have to revisit a
lot of our paradigms. And changing paradigms is one of the most difficult
propositions
The rate at which Tata Motors had grown and the directions that it had
taken seem unbelievable in the light of its loss in 2001. Many employees
would proudly recall their contribution during the cyclical dip and call the
organization Resilient. Significant number of employees believed that
the organization has great leadership and just the right talent from the
best pedigree to help it bounce back even when markets go through tough
situations.
Some of the new employees thought the organization was innovative,
citing the Tata Nano and the Tata Ace as the best examples. Some thought
the Tata Group as a whole was a great place to work and ensured good
overall job security. The employee engagement scores of the Company as
a whole were moderate (Appendix 4). However, there were pockets of
employees in certain locations with below average engagement scores. With
the number of global players entering the domestic market and with Tata
Motors battling them on their own turf, it was evident that a revolution is
round the corner and we need to move fast. On the international front Tata
Motors had cemented its position as a power player, but talent acquisition
and management still had a long way to mature. Where is the best talent
hiding and who should we attract anyway? Is it the large pool of Indians in
the developed nations, currently going through a downturn? Is it also time
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to hire more foreign nationals in India who may be a better fit for niche
roles like automotive R&D? Is it time to relook at Campus strategy and
attract youngsters who could have fast track career options? Or should we
hire from other Tata companies through internal movements?
Even if we hire all sets of employees, are we internally ready? There were a
few questions that we needed to answer:
Is traffic on our employment Web site lower than desired?
Do we rely heavily on search firms for candidate sourcing?
Have we utilized our employee referral scheme to its full potential?
Do we frequently have to pay lateral candidates a hike of more than 20%
more than their current salary to hire them?
The answer to the above questions was yes. A dipstick survey of a few
of the hiring managers from different locations and a few external hiring
consultants was done to see how they portray Tata Motors to the external
talent. Prabir was surprised to find out that the recruiters and hiring
managers often ended up communicating different messages. When
asked, Why should I join Tata Motors? they gave a plethora of answers
from job security, compensation, location flexibility, growth opportunities,
great employer, work life balance, examples of senior leaderships, health
and retirement benefits to even Corporate Social Responsibility. None
of them spoke the same language! Also, a few of them overemphasized
unimportant characteristics and underemphasized critical attributes. It was
clear that there is a disconnect between what the labor market prefers and
what these hiring managers believe the labor market prefers. Also Prabir
didnt want these hiring managers to promise something which we may
not deliver in future.
It was clear- If Tata Motors were to move towards true business excellence
we would have to articulate our Employee Value Proposition now!
With the focus clearly on talent, Prabir wrote a mail to Rajesh Nair (Head of
Talent Acquisition & Talent Engagement, Tata Motors)
Dear Rajesh,
n June 1, 1945, Tata Sons Ltd purchased from the Government of India, the `Tatanagar Shops unofficially called the
Singhbhum Shops of the East Indian Railway. The purpose was to manufacture steam locomotive boilers and later complete
locomotives and other engineering products. Tata Sons decided to set up the project as a new company and called it Tata
Locomotive and Engineering Company Ltd, which then became Telco.
In 1946, Telco tied up with Marshall, Gainsborough and the government of India for manufacturing stream rollers. It expanded
into the commercial vehicle sector in 1954 by forming a joint venture with Daimler-Benz AG of Germany. In 1965 new plants
started in Pimpri and Pune. In 1980s a third plant was opened in Lucknow. In 1988, Ratan Tata was appointed Executive Deputy
Chairman. In 1992, the company entered the passenger car market with Tata Sierra. In 1994, significant reorganization took place
in Tata Motors with its split into the Automobile business unit and Construction Equipment business unit. In 1998, Indica was
launched that later turned out to be a great success. Telco was renamed Tata motors in 2003.
Today a Company with domestic operations in Jamshedpur, Pune, Lucknow, Sanand, Pantnagar and Dharwad, and Global
operations in Korea, UK, Spain, South Africa and Thailand, Tata Motors is raging forward! Tata Motors today is Indias leading
automotive vehicle manufacturing company. The companys automobile products include all types of commercial and passenger
vehicles. The company also provides finance for its customers and distributors. Today Tata Motors is a global Fortune 500 company,
the leader in commercial vehicles in each segment. It has retained its market leadership position in the domestic market for more
than 6 decades and also gained a respectable global standing. (Appendix 5)
lobally, the automotive industry is recognized as a key component and driver of national economy. But what is Indias
he rate at which Tata Motors has grown and the directions that it has
taken seem unbelievable in the light of its loss in 2001.The visible success
of Tata Motors strategy can be directly traced to its implementation of
the Tata Business Excellence Model (TBEM). TBEM plays three important
supportive roles in strengthening the competitiveness of the company,
in that, it helps improve business excellence practices, capabilities and
results, facilitates communication and sharing of best practices among Tata
companies and serves as a working tool for understanding and managing
performance, for providing planning guidance, and for identifying learning
opportunities. Tata Motors has been implementing TBEM in its offices,
plants and production lines since 1998, wherein the assessors and evaluators
were put through a rigorous 2 years of training and TBEM was applied
in 2000. In 2007, the company earned the high delta recognition for its
upward movement on the path to peak performance. More recently Tata
Motors has been ranked as Indias Most Valuable Corporate Brand in the
Economic Times, 2010. To win these accolades Tata Motors has practically
reinvented the way it operates. The TBEM methodology has impacted
every operational process followed by this Indian automotive giant, which
employs over 27,000 people across India from strategy planning to dealer
relationships, disaster management to corporate sustainability.
Also, Tata Motors is the first Indian company to win the prestigious
Balanced Scorecard Hall of Fame award instituted by the founders of BSC,
Dr. Kaplan and Dr. Norton. Two Harvard Business School case studies and
numerous articles at the International level were published on successful
implementation and use of the BSC at Tata Motors. There are various
major components that go into having an effective Balanced Scorecard
organization and Tata Motors has made efforts to deliver in every aspect.
ikram Bector, TML Chief Learning Officer, had a vision of Tata Motors University. This University will
play a key role in developing cutting edge talent through capability and skill building, grooming talent for
leadership and providing talent with a world class learning environment. There are many employees who are
training the new employees or colleagues internally but have no recognition.
With an initiative titled Parivartan, the employee sentiments across Tata Motors towards some of the archaic
policies that need to be changed were captured. A lot of work has also started around Empowering Employees
and Pushing down decision making rights across the company.
A new performance management system called PACT is already ready and launched. The companys position
of top 25 B Schools and the best of the T Schools is already recognized among Top 10 recruiters by a leading
Business magazine.
Talent Management
or an organization to operate at its best, the leadership pipeline has to flow smoothly with the right talent.
Tata Motors identified this earlier and its Talent Management process, encompassing various voluntary and nonvoluntary schemes, strikes the right balance between potential and performance. The Fast Track Selection Scheme
(FTSS) is a hallmark programme and an Industry Benchmark in Talent Management. It is a voluntary scheme and
includes operations, commercial and general management streams. The identification process is a rigorous annual
exercise consisting of ability tests, interviews and assessment centres. Post identification, there are term rotational
assignments in various areas of the organization combined with general managerial learning inputs at the Tata
Management Training Centre and premier business institutes to provide employees with experiences that help them
broaden their horizons. Besides this programme there are various other programmes such as the Technical Specialist
Scheme to identify engineers with an inclination to do specialised work in automobile engineering designs, and
testing for the Engineering Research Centre, Talent Management Scheme for employees displaying consistent high
performance and the Development Centre Process that touches the base of the managerial pyramid in the system.
The aim is to catch them young and put them into the pipeline for future leadership talent.
Talent is encouraged to pursue opportunities in unfamiliar settings, including international assignments and project
work is designed to hone new skills. These efforts have created a workforce that is tuned in to every aspect of the
business including the global automotive industry creating true assets for the company.
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n the last decade, Tata Motors has been able to gain a strong position in the global automotive
industry. In 2004, Tata Motors acquired the Daewoo Commercial Vehicles Company, South Koreas second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicle Company has launched several
new products in the Korean market, while also exporting these products to several international markets.
Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.
In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer and in October 2009 acquired the remaining 79% stake to further strengthen the ongoing
initiatives & emerge as a strong force in the Spanish as well as the Global bus and coach markets. In 2006,
the company formed a joint venture with the Brazil based Marcopolo, a global leader in body-building for
buses and coaches to manufacture fully-built buses and coaches for India and select international markets.
Also in the same year Tata Motors entered into a joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the companys pickup vehicles in Thailand.
In June 2008 Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British
brands - Jaguar and Land Rover (JLR) from the US-based Ford Motors. This move enabled the company to
enter the high-end premier segment of the global automobile market. After the acquisition, TML can now
boast of owning both ends of the Passenger car segment right from the worlds cheapest car - the US$
2,500 Nano to the luxury marquees like the Jaguar and Land Rover.
Today with immense competition in the Automotive Industry, the road ahead may be tough. However in
the light of all the hurdles Tata Motors has crossed over the years, this Global giant is not just here to stay
but is here to achieve excellence!
Appendix 1
From the outside it looks like an Indian General Electric,
a conglomerate with big companies across a range of
industries, from steel to telecommunications. But Tata
Sons, the company at the centre of an empire of companies
in multiple sectors, does not have majority control over
its operating units. Each is led by its own executive team
and governed by its own board of directors. But they are
bound together by an interlocking governance structure
and a set of corporate values passed down over 142 years from the founder,
Jamsetji Nusserwanji (J.N.) Tata.
His powerful vision inspired the steel and power industries in the country
and set the foundation for technical education and philanthropy. In 1900,
Jamsetji got the approval for building a steel plant. In 1904, Jamsetji passed
away in Germany, but his dream was implemented by his son, Dorabji Tata.
The Tata Iron and Steel Company was formed in 1907, in Jamshedpur, in Bihar.
In 1910, the Tata Hydro Electric Power Supply Company was established. In
1938, JRD Tata was appointed as the head of Tata group. JRD became one
of Indias most respected business leaders. It was he who guided the group
for well over half a century. Five core values - Integrity, Understanding,
Excellence, Unity, and Responsibility passed down over decades direct
the groups growth and businesses to this day. Over time, the Tata group
became Indias largest business group. The group diversified into metals,
automobiles, energy, engineering, chemicals, consumer products, finance,
international operations, information technology, mandmagri-industries.
To the Archives
In 1868, Jamsetji Nusserwanji Tata, the founder of the Tata group, started
a private trading firm in Bombay with a capital of Rs.21,000. His travels in
the Far East and Europe inspired him to start manufacturing cotton goods.
In 1874, the first Indian textile mill, The Central India Spinning, Weaving &
Manufacturing Company, was established. In 1877, Jamsetji launched the
famous Empress Mill in Nagpur and in the same year, Tata and Sons was set
up. In 1886, Jamsetji launched the Swadeshi Mills to mark the beginning
of a movement to popularize the use of indigenous goods as opposed to
British goods. This marked an important step forward in Indias struggle
for freedom. This mill was actively supported by Indian shareholders.
Jamsetji foresaw the significance of the industrial revolution for India and
spelt out the three basic ingredients that were needed for progress: Steel,
hydroelectric power, and technical education.
Tata Group:
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Prior to the 1990s Indian businesses were protected from outside competition
but were also limited by tight government controls. In that environment,
Tatas domestic expansion and diversification positioned the group as one
of the two or three largest companies in India. Since 1991, the group has
grown dramatically, stimulated by an aggressive $20 billion international
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The culture of the Tatas comes from decades of leadership that espouses
a set of corporate values that is quite extraordinary for any company,
says Tarun Khanna, the Jorge Paulo Lemann Professor at Harvard Business
School and an expert on the company. At age 29, J.N. Tata founded the
Tata business as a small trading company. Today Tata Sons has as many as
114 companies under its umbrella.
Over the years, Tatas complex, interwoven governance structure evolved to
ensure that profits would be reinvested on behalf of stakeholders, especially
customers and local communities. Perhaps the most unorthodox aspect of
the overall Tata structure is the central role of the eleven charitable trusts
that together own 66 percent of Tata Sons and that are intimately involved
in its governance. (Family members own only 3 percent.) No other company
of this size and visibility has placed its charitable arm at the controlling
nexus of the business. The trusts fund a variety of projects and support such
cherished institutions as the Indian Institute of Science, Tata Institute of
Fundamental Research, the National Centre for the Performing Arts, and the
Tata Memorial Hospital, an innovative cancer treatment centre in Mumbai.
Each Tata company, in turn, channels more than 4 percent of its operating
income to the trusts, and every generation of Tata family members has left
the bulk of its wealth to them.
What is so extraordinary is that even Tatas innovations its efforts to find
new markets through the launch of products and services tend to have a
social benefit component. The 1 lakh Nano car, for instance, was conceived
(with Ratan Tata taking part in many of the brainstorming sessions) as an
affordable and safe family car designed to wean Indians off their dangerous
motor scooters, and provide them with a symbolic entry into the middle
class.
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Appendix 2
Appendix 3
TML HR Vision:
To make Tata Motors a world-class destination for best-in-class
talent to sustain its business success
Appendix 4
Excerpts from an Internal Employee Survey
85% employees believe that Tata Motors has the right leadership
and talent mix to succeed in future. The employees rate the overall
opportunities to learn and grow very high.
35% employees would like speed in decision making and 52% believe
that they have the opportunity to do what they to best everyday.
38% employees would like to have greater empowerment
41% employees would like to have greater role clarity and believe the
new Performance Management System will help in this.
Employees in general would like to move away from a feeling of many
review meetings
62% employees believe that their seniors care for their development
Through Parivartan, employees have voice the culture they would like
to see in Tata Motors. The attributes they value are, Agile, Egalitarian,
Innovative, High performance, Customer Centric, Quality, Trusting,
Flexible, Nimble, Passionate, Driven, Collaborative, Teamwork, Integrated,
Responsive, Lean
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Appendix 5
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Deliverables
The deliverable has to be
A two page word document (Font: Times New Roman, Font Size:12, Line Spacing: 1)and/or
A 5 slide presentation (ppt/pptx format)and/or
A 1 min video file (mpeg format)
The maximum size of the deliverable should not exceed10 MB.
Process
Stage 1: Submission of Case Solution
- Registered teams can download the case details from the website www.mindrover.tatamotors.com from 05/12/2011.
- Deliverables are to be submitted latest by 15/12/2011
- Nomenclature of deliverables: Institute name_Team name
- A team can have a maximum of 3 members
- Each team can submit only one entry
- All members of a team are to hail from the same Institute
- The cover page should contain Team Name, College Name and Team Details (Name, Email Id and Contact No.). The details of the
participants should appear nowhere else in the solution
- All entries should be uploaded on the website itself
- Judging Criteria: Teams are expected to prepare an EVP document for Tata Motors and a communication strategy for the same. They will
be judged on research done to arrive at the EVP, the actual EVP suggested and the feasibility of the communication strategy. Teams will
also be judged on Analytical Rigor, Creativity, Scalability of the solution, Justification- Both in terms of logical reasoning & feasibility of
delivery
Final Round in Mumbai
- All entries are reviewed and the top 8 will be chosen to proceed to the final round
- Deliverables & Judgment criterias will be communicated to the 8 finalists.
- The shortlisted teams will have to present their solutions in front of the esteemed jury from Tata Motors.
- The shortlisted teams (8 confirmed and 2 waitlisted) will be informed by email. Teams need to send their confirmation regarding
participation within 24 hours, failing which, the teams in the waiting list shall be invited
- Individual participation certificates will be awarded to all finalists
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