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PGDIE 40, NITIE Mumbai CONTENTS INTRODUCTION PRODUCTS AND SERVICES ARTICLE REVIEWS ORGANISATIONAL STRUCTURE LITE RATURE 1. How organizational climate and structure affect knowledge management T he social managementinteraction perspective. (Chen & Huang, 2007) 2. The relatio nship between product customization and organizational structure (Vickery, Corne liaDroge, & Germain, 1999) 3. Knowledge sharing in inter unit co operative episo des: The impact of organizational costructure dimensions (Willen & Buelens, 2009 ) 4. An holistic approach to understanding the changing nature of organizational structure (Doherty, Champion, & Leitao Wang, 2, 2010) 3 5 7 7 7 8 9 10 5. Theories of organizational structure and innovation adoption: the role of env ironmental change (Damanpour & Gopalakrishnan, 1998) 11 REVIEW OF LEADERSHIP STY LE LITERATURE 1. How Much Time Should CEOs Devote to Customers? (Quelch, 2008) 1 3 13 2. Organization development and leadership: R.B. Reid and the dynamics of succes s BRITISH successRAILWAYS (Barlow, 1996) 14 3. Leadership Types and Styles - Ove rview of Skills (Hick) 4. A dynamic theory of leadership Development (Mostovicz, Kakabadse, & Kakabadse, A dynamic theory of leadership developement, Vol. 30 No . 6, 2009) 15 17 5. Transformational versus servant leadership: a difference in leader focus (Sto ne, Russell, & Patterson, (2004,Vol. 25 No. 4)) 18 Current organizational Struct ure of TATA Motors COMPARISON & CONCLUSION TATA Motors with Organisation Structu re TATA Motors with Leadership Style ANNEXURE 1. 2. Correspondence with Intervie wee Interview Questionnaire 20 21 21 22 24 24 26 29 30 LOG OF VISIT BIBLIOGRAPHY 2
PGDIE 40, NITIE Mumbai INTRODUCTION Tata Motors Ltd has two business units – the Passenger Car Business Unit (PCBU) an d Commercial Vehicles Business Unit (CVBU). The vision and mission of both the b usiness units are given below Vision “Best in the manner in which we operate, best in product we deliver & best in our value Best systems & ethics.” Mission “To become world class automotive engineering & product development centre and ena ble To Tata Motors to become a world class automotive company. company.” Company Overview Tata Motors is India’s largest automobile company. It is the leader by far in comm ercial vehicles in each segment, and among the top three in passenger vehicles w ith winning products in the compact, midsize car and utility vehicle segments. T he company is the ct, world’s fourth largest truck manufacturer and the second lar gest bus manufacturer with consolidated revenues of Rs. 92,519 crores (USD 20 bi llion) in 2009 2009-10. TATA Motors is one of the oldest automobile companies es tablished in 1945 & delivered its first model on roads of India in 1954. Now, it is present all over the country. The company s manufacturing unit in India is s pread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh) , Pantnagar (Uttarakhand) and Dharwad (Karnataka). The company is establishing a new plant at Sanand (Gujarat). Over 5.9 million Tata vehicles are running on In dian roads. TATA Motors, the first company from India s engineering sector to be listed in the New York Stock Exchange in September 2004. It has also emerged as an international automobile company having operations in the UK, South Korea, T hailand & Spain. In year 2008, it acquires Jaguar Land Rover from Ford Motors & in the same year TATA launched Nano, people’s car. Fiat Group & Tata Motors announ ce establishment of Joint aunched Venture in India in 2007. Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea s second largest truck maker. 3
& in South Korea. Spain & the UK.165. the Tata Indica. India s first fully indigenous passenge r car. The company’s goal is t o empower and company’s provide employees with dynamic career paths in congruence with corporate objectives. 4 . In 2005. Jamshedpur. first indigenously Light Commercial Vehicle. TATA Motors developed the Korea. NITIE Mumbai The company’s manufacturing base is spread across Jamshedpur. Dharwad in India. Also the company has R&D centres in Pune. Lucknow and Pa ntnagar (Uttarakhand). All Allround potential development and performance im provement is ensured by regular in in-house and external training. services and spare parts network comprises over 3500 a ny’s communication points. The company h as won several awards recognizing its training several programmes. Tata Indica became India s largest selling ca r in its segment. The People Tata Motors is having employee base of 24. The company i s establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat). The company helps its employees t o realize their potential through innovative HR practices. Pune. Within two years of launch. Luc know. The c ompany’s dealership.PGDIE 40. Tata Motors created a new ia s segment by launching t he Tata Ace. India s first indigenously developed mini mini-truck. India s first Sports Uti lity Vehicle & in 1998. sales.
and Tata Sumo Grande MK II. Carriers). Commercial Vehicles for goods transportation • • Small Commercial Vehicles Tata Ace. medium and heavy buses from 2T GVW range onwards. Tata Indigo Marina (station-wagon) and Tata Nano (small car). NITIE Mumbai PRODUCTS AND SERVICES Passenger Cars: The range comprises Tata Indica (compact car). • Tata Motor Finance 5 . The company also distributes a nd wagon) markets Fiat branded cars in India.PGDIE 40. Vehicles: ups Commercial Vehicles for passenger transportation • • Tata and Tata Marcopolo range of light. • Jaguar Land Rover • Tata Marcopolo Motors • Tata Daewoo • Hispano Carrocera • Tata Motors (Thailand) • Telcon • Tata Motors E uropean Technical Centre • Tata Technologies • TAL Manufacturing Solutions • HV Transm ission and HV Axles • Tata Autocomp • TML Distribution Co Co. Multi-purpose vehicles – Tata Magic. Tata Sumo range and Tata Venture (Pe ople up). Tata Xenon XT (Life style Pick-up). Tata Winger and Ta ta Venture – purpose for urban and rural transportation. Light Commercial Vehicles Pick-ups and trucks ranging from 2T GVW to 7.5 T GVW. Vehicles: truck. Utility Vehicles: A range comprising Tata Aria (Crossover). Subsidiaries Companies These are various subsidiaries of Tata Motors. Tata Safari (SUV). Tata Indigo (sedan). India’s first indigenous mini-truck. Tata Magic Iris.
PGDIE 40. NITIE Mumbai Product Profile Passenger Cars Utility Vehicle Trucks Commercial passenger Vehicles Indica Sumo Small Commercial trucks (Ace) Bus Winger Indigo Safari Light Commercial trucks (TL4X4) Nano Xenon Intermediate Commercial trucks (Turbo Truck) Magic Fiat Medium & Heavy Commercial trucks Prima truck Construck 6 .
NITIE Mumbai ARTICLE REVIEWS ORGANISATIONAL STRUCTURE LITERATURE 1. If th e organization possesses a strong innovative and cooperative climate. management. knowledge structure. Findings:Firstly. These hypotheses have been explained by the author with regression method. (Chen & Huang. 2007) Objective:The article emphasises on the study to examine the effects of organiza tional climate and structure on knowledge management from the social interaction perspective. organisational structure. if the inno vative and cooperative climate is relatively weak or inexistent. the autho r has adopted the process oriented view to investigate the mediating process-ori ented effect of social interaction on the relationship between organizational cl imate and organizational knowledge management. employees would perceive a lower need to interact with colleagues. Conversely. the author also emphasises on organizational st structure which is likely to affect the social interaction among organizational members. Organizational climate plays an essential role in shaping employ ees’ behaviours an and influencing their perception of knowledge management. employees would receive a clear signal that it is acceptable or desirable for them to buil d up interaction networks to share and gather knowledge. Key Variables: Organisational climate.PGDIE 40. Besides organizational clima te. As a result. The regression analysis is used to test the hypotheses in a sample of 146 cases. Secondly. How organizational climate and structure affect knowledge management The mana gementsocial interaction perspective. social interaction. he examines how social interaction affects the relationship between organizational structure and knowle dge management. The author also states the importance of mediating effect which gives the relati onships between independent variables of organizational climate and organization al structure and dependent variable of knowledge management and states two hypot hesis that the social interaction mediates the effect of organizational climate on knowledge management and Social interaction mediates the effect of organizati onal structure on knowledge management. the au thor expects that an innovative and cooperative climate would provide a vital at mosphere for strengthening social interaction among organizational mem members. 7 .
2. interaction 4. not moderated by size or environmental uncertainty. NITIE Mumbai Conclusion:1. Also the social interaction is positively related to knowledge management. According ly. fewer layers. the sample size in our study is ba barely satisfactory to generate the meaningfu l results as the regression models include 8 8–12 independent variables. 1999) Objective:This research examines the relationship between the extent of use of a product customization strategy and organizational structure. The relationship between product customization and organizational structure ( Vickery. and narrower spans of control. The findings suggest that innovative and cooperative climate is positively re lated to social interaction. 2. more decentralized and integrated then the social interaction is more favoura ble. Future research may explore how these different construct s affect intra intraorganizational social interaction and knowledge management.PGDIE 40. 3. for the most p art. the smaller sample size of this study raised the non respon se bias concern. The study focuses only on two organizational context including cl imate and organizational structure. When the organizational structure is less formalize d. internal. and supplier performance) and three key dimensions o f organizational design: decentralization. There are other organizational constructs th at warrant discussion. decentralisation. layers. and spans of control. First. since structure is a key to ategy managers’ implementation of strategy. span of control Findings:Four aspects of organizatio nal ‘structure’ are considered. Key Variables: Product custo misation. organizational structure. 8 . Also. the smaller sample size of the survey is noted as a potential limitation in this study. and knowledge management. & Germain. LISREL results show that custom ization associates with more formal control. Subgroup analysis revealed that these main effects are. A conti ngency approach is taken by simultaneously examining the main and moderating eff ects of environmental uncertainty and firm size. CorneliaDroge. They are formal control (encompassing the measuremen t of competitive. non-response We have done the t statistics and w2 test to verif y that the non t-statistics non-response bias is not a significant issue. These empirical evidences support the process oriented view and i ndicate that process-oriented social interaction plays the mediating role betwee n organizational climate.
and spec ialization. but have more rigorous formal control. Key Variable s:Knowledge sharing. with the concept of knowledge sharing has been studied. These classic organiz ational structure dimensions are underpinning the differentiation–integration bala integration balance. and specialization. horizontal-coordination consisting of coordination teams. centralization. Formalization indicates the extent to which the rights and duti es of the members of the organization are determined and the extent to which the se are written down in rules. formalization. formalization. organizational centralization.PGDIE 40. they need not concern themselves with size and environmental uncertainty when selecting an appropriate elves organizational st ructure to ‘match’ the desired level of product customizatio customization 3. To obtain this insight. on the kind of coordination mechanisms used. we revisit fou r of the most important classic organizational structure dimensions. NITIE Mumbai The main effects of size on structure were consistent with previous research: la rger manufacturers are more formalized (in terms of performance controls and dec ontrols) centralized. networking. Conclusion:Managers should thus un derstand that. for the most part. Manufa cturers operating e Manufacturers in more dynamic environments are more decentra lized. 2009) Objective:The objec tive of article is how the classic organizational structure dimensions should be altered to be more adapted to organizational knowledge sharing. coordination. and utilize more layers and wider spans of control. i.e. namely coor dination. specialization Findings:Studyi ng effective inter-unit knowledge sharing in organizations requires insight into how unit organizational structure influences and shapes the cooperative episode s in which knowledge sharing takes place. formalisation. Knowledge sharing in inter unit co operative episodes: The impact of coorgani zational structure dimen dimensions (Willen & Buelens. formalization and specialization). and this is closely related to the other structure dimensions (centraliz (centralization. mutual adjus tment. procedures and instructions. The behaviour o f the relationship between coordination. and assess their impact on inter inter-unit knowledge sharing. and integration roles (less formal and decentralized) allows flexible coordination during task execution and can deal with ad hoc communicati on and information. which has been the major focus in the classic organization theory literature The impact of coordination on knowledge sharing depends liter ature. Decentrali Decentrali sed. 9 .
any form of personal contact between people and units in the n. An holistic approach to understanding the changing nature of organizational s tructure (Doherty. i. But it does not consider its impact on span of control. Champion. organization that is not intended or imposed by management management. It encourages organizations to streamline & standardize their business pr ocesses across the organization & wi within individual business units. standardization & formalization of w orking practices and procedures. Our findings indicated that expected relationships. formalisation. or the number of hierarchi cal layers. centralization or the positive effect of lower formalizat ion. this theory might regain some of its lost value. 10 . Info rmal coordination.e. 2. were not found. Key Variables :Standardisation. ERP is typically acquired in the form of packaged software. By bringing new issues such as knowledge management into organization st ructure theory. It is a well defined technology with low interpretive fl flexibility. which also stressed the relationship with knowledge sharing. 2010) Objective:This article disc usses about one of the most debatable & important topic i. NITIE Mumbai Informal coordination (informal and decentralized) was not topical in the classi c organization structure literature but received thorough attention in the netwo rk literature. such as production. such as the negative ef fect of relationships. distribution. & Leitao Wang. finance & HR manag ement.e. importance of IT on organizational structure & mostly about Enterprise Resource Planning (ERP). 4. had an important interacting effect on the relationship between coordin ation and knowledge sharing. caused by special ization. C onclusion:Empirical data was collected by means of a questionnaire in two compan ies. sales. A coordination comparison between the two companies revealed that the organization organization-specific context in which the coord ination is applied influences the potential of this coordination for knowledge s haring.PGDIE 40. impact the degree of horizontal integration. Entrepreneur Resource planning Findings:It most ly influences the locus of decision making. It is difficult to get an overall view of the impact of IT on organi zational structure. Interdependency and knowledge complexity. with integrated modules that integrated support all major business functions acr oss an organization.
NITIE Mumbai Strategy is also having significant impact on organization’s structure. but it mostly says that. Large-scale & successful ERP system is d eployed in an organization with a Prospector scale orientation. Key Variables:Innovation adaptatio n. acquisitive & incubative. the decision-making will be less centralized. type. Dual core theory: It distinguishes between administrative and technical tween innovations 11 . radical-ness. complex & problematic un dertaking. rate & speed to adopt it by organizations & its sourc es like imitative. & then there are a most chances that organization will become flatter. Author has also done quantit ative study to recognize impact of ERP. authors also discussed about innovations. 2. Theories of organizational structure and innovation adoption: the role of env ironmental change (Damanpour & Gopalakrishnan. to better align it with ERP. level of horizontal integration will increase & its making working practices will become more standardized.e. Mostly these theories focuses on o nly one dimension i. This article does not give any particular answer to this debatab le topic. There are three structural theories of innovation: 1. This study gives two valid interpretations that ERP systems will only deliver b enefits in circumstances in which the host organization’s structure is already wel l aligned. Results of the quantitative analyses suggest that the configuration of an organization is influenced by ERP benefits & strategic orientation. Findings:In this article. an ERP implementation is an extremely that. or stage-of innovation at a time. 1998) Objective:This article disc uss about various theories of Organizational structure & innovation adaption & t heir framework within which they are applied. with the structural models & management teams will only be prepared t o make any significant changes to their organizations’ structure. ERP has dominant role in reshaping corporate structure. Results of many previous studie s say that. of But in reality these dimensions are overlaps on each other & for the same reason these theories produce inconsistent results. its adoption. environmental change. Conclusion:1.PGDIE 40. it is successful ERP adoption that is driving structural change. 5.
Unpredictable Four environmental sets of condi tions: stable and npredictable. the two sets of values for each dimension are sta ble vs. The framework identifies dimensions of innovation adoption in each environmental condition. This paper helps to resolve some of the discrepancies that existed among the three prominent theories of or ganizational innovation. such as organizational technology. The ambidextrous theory: It discusses about the pre-adoption activities that lead adoption to a decision to adopt & the act ivities that facilitate implementation and continued use of an innovation Articl e also tells that organizations is open systems seek a state of equilibrium with their environments and its dimensions are extent of stability and extent of tur bulence or predictability. 2. 3. 12 . unstable and predictab (EC3).e. unstable. NITIE Mumbai 2. var iation (routine) & reorientation. It mostly focuses on external environment & not on other va riables that impact structure structure–innovation adoption relationships. stable and unpredictable (EC2 ). So. and predictable unstable and unpredictable (EC4 ) A way to make a framework for above conditions is to (EC4). predictable (EC1).PGDIE 40. organizational structure and innovation adoption. This article is having some limitations like it is c omplex in construct. The theory of innovation radicalness: It discusses about two aspects i. bring together ele ments of environmental change. The article gives complex but precise theories by identifying the environmental conditions under which certain structural characteristics facilit ate or hinder organizational innovation. size and ownership. Conclusion:1. predictable vs.
customers on their home turf in their homes. And future growth prospects are baked into stock market valuations of companies The current economic downturn. Run ning around visiting customers is simply not enough.e. However they should consider following three things • CEO should s pearhead the identification of three or four customer health metrics that are le ading indicators of sales or profit performance. Over time. actual customer expertise is typically a mile wide and an inch deep. turf—in CEOs must ensure an adequate pipeline of new product and mar ket opportunities. this should mean a higher percent age of general managers coming up through the marketing ranks. 2008) Objective:Custo mers are the source of all cash flow. executives must get out an d meet customers on their home turf oriented. Findings:"THE CUSTOMER IS GOD AND THE MARKET DECIDES EVERYTHING" is very wel l known quote it becomes even more pivotal in situations of economic crisis. How Much Time Should CEOs Devote to Customers? (Quelch. It requires the high-pr ofile long-term infusion of customer centricity and marketing strategy capabilit y term throughout the organization. Consumer behavior. But while every corporate mission statement pays rketing lip service to respecting customer needs. compani es companies. A good CEO knows how to balance time spent on the outside ver sus the inside. But as seen very few of the CEOs of FORTUNE 500 companies have come up the ranks th rough marketing FORTUNE-500 and sales. i n t their offices. 13 . These metrics should not be off -the-shelf standbys such as customer satisfaction They must get out and meet she lf satisfaction.PGDIE 40. he need marketing skills more than ever. on job sites. Every corporate mission statement pays li p service to respecting customer needs. NITIE Mumbai REVIEW OF LEADERSHIP STYLE LITERATURE 1. either through business leaders regularly going into the field and through more formal customer research studies studies. CEO has to develop ma rketing talent throughout the company. Key Variables:Cus tomer relationships. This requires the investment in uncovering customer insights discussed above. Organic growth depends on developing relat ionships with new and existing customers. This cannot merely marketing mean appoint ing a high profile rainmaker as chief marketing officer. on job sites. actual customer expertise is typically a mile wide and an inch deep. customer satisfactio n . in t heir offices. To be customer-oriented. human touch. • • Conclusion:Every CEO should spend at least 10 percent of his or her time taking care of these three challenges i. customer relationship and . turf—in their homes. General leadership.
i ntelligent. 1996) Objective:To extract various qualities of lea dership style from Reid’s tenure in British railways and comparison of it with lea dership trends in TATA MOTORS. dvantage. clear mandates to others along with discretion to achieve results in w ways which were most effective.BRITISH RAILWAYS (Barlow. ranging politically aware as well as professionally experienced.B. In a nutshell. He communicated a success. Organization development and leadership: R. Beeching had sought to identify and mobilize the ra ilways’ distinctive characteristics to greatest competitive advantage. A lthough his plans remained largely in abeyance. He induced chan ge built on success rather than to avoid failure. He k new what w needed to be done.PGDIE 40. Reid and the dynamics of succes s. and how to get it done: he possessed systemic lead ership capacity He also knew how to operate the levers of power. He also knew what needed to be done. commitment Findings:Reid carried through arguably one of the most fun damental and potentially far far-reaching processes of change and organizational development that British Rail (BR) has experienced in the past 40 years. 14 . cle ar vision and was decisive and determined in implementing it He set clear. Rei d knew how to get things done within the railways’ organization. he knew the railways and their management intimately. NITIE Mumbai 2. As a result. and expected them to be achieved He delegated authority. Reid had delivered productivity improvemen ts and cost reductions on a scale that his predecessors had been unable to achie ve As a professional.BR in before Reid However. they nevertheless remained as an agenda for regenerative change. Within two years. a chievable goals. giving achieved. Growth in BR’s productivity and financial performance was among the fastest in Europe. His ( (Reid) wide-ranging experience. Astute. he created and won the commitment of new coalitions of professional managers and galvanized support within BR as a whole for the transformation he brought about. the development of road and air competition and growth in private car ownership had brought abo ut a far more precipitous loss of BR’s business than could be redressed merely by closing down routes where traffic could be handled more economically and effecti vely by road. it. Key Variables:Leadership capacity. delegation of authority. a nd BR ended that decades one of the most productive and certainly the most profi table rail networks in Western Europe.
Delegative /Free Rein. Lea ders should not be confused with managers.ranging experience.PGDIE 40. NITIE Mumbai This view was endorsed recently by a director of one of the sector businesses. Democratic Find ings:Leadership style is crucial to success. Leaders must respond to the rapidly changing world and meet the challen ges it demands. astute and intelligence and political a awareness. He dissolved the Regions a nd replaced them with the sectors. within two years. In 1939 famed psy chologist Kurt Lewin identified classic styles of leadership. 15 . si multaneously. 3. • A clear vision & keen to accomplish it & a clear set of goals helped him to develop an organization structured around identified business sectors and. We find leadership all around us. n ow disbanded. These three styles are well established though more specific types have been identified since. Conclusion:• Wide. There was a real feeling of achievemen t and success. Key Variables:Autocratic. There are different types of leaders and you will most likely en counter many over the course of time. religion and as close as home. sports. The sector businesses were full of people who understood the . who summed up Reid’s achievement succinctly: Reid recognised the nee d for change. Leadership can be found in the world of business. politics.Overview of Skills (Hick) Objective:To identify when and where these leadership qualities to be used and how these is relevant to TATA MOTORS. Reid got them all pulling in the same direction direction. running down and eventually eliminating BR’s structure based on geog raphical regions. E ach of us will fill the role ourselves at various times in our lives. were industry and the business they were in. Reid had delivered productivity improve ments and cost reductions on a scale that his predecessors had been Unable to ac hieve. Understanding different leadership styles and their impact will help you become a more effective leader. He created a sense of business purpose. Leadership Types and Styles .
Leaders are always managers but the reverse is not nece ssarily the case. d) Use when a group or member doesn t have knowledge of the pra ctice or procedure. There are different types of leaders and you will most likely encounter many over the course of time. Allow decision-making by the team.PGDIE 40. We find leadership all around us. Leaders must respond to the rapidly changin changing world and meet t he challenges it demands. Delegative/Free Rein: a) b) c) d) Minimal in direction. Good leaders will use the style or a combination of styles tha t best fits the situation situation. Democratic: a) The leader acts as a guide. d) People are more committed when involved in the process of making decisions. as well as. A "Do what you are told" Obedient and strict form of control. will use the style or a combination of styles that best fits the situ ation. c) Democratic style can be problematic when the final dec ision is hampered by a wide range of opinion. how and when is the sole responsib ility of when. the leader. Input will not change the decision or outcome. Leadership style is crucial to success. c) This is a less creative approach. Accepts input and seeks ideas and suggestions thr ough discussion. b) Allow for quick decisions when time is crucial. Each of us will fill the role ourselves at various times in our lives. le Leaders are always managers but the reverse is not necessarily the case Good lea ders case. Leadersh ip can be found in the world of business. e) This style is mutually beneficial and helps improve people skills. b) Even though the leader may have the final say the team contr ibutes to the process. 16 . e) The autocratic style works best when there is no need for input. This style works b est with highly motivated and well trained people. sports. making Works well when the team or a member is more knowledgeable about the subject. They have a personal stake in the o utcome. Conclusion:Leaders should not be confused with managers. NITIE Mumbai Autocratic: a) What needs to be accomplished. politics. religion and as clos e as home.
the present. These choices create memory based on w hich leader take decisions for future. Key Variables:Leadership. looking for affiliation (i. Leadership is about making choices. according to a higher principle or value. Th e paper continuously concludes with the presentation of a dynamic theory of lead ership. the Theta worldview). Kakabadse. or looking for achi evement (i. Pursuing the fit between one’s worldview and planned organisational activities ensures that leaders continuously improve their ethical behaviour.PGDIE 40. The c Le adership choice is a binary action that divides options into two sets.e. the Lambda worldview). which is based on the assumption that one can only strive toward truly e thical leadership with the knowledge that this goal is beyond human capacity. Vol. Consequently. which is based on the type of choice a le ader makes. Thus leadership that was historically con sidered to be either as purely in born quality or as purely a learned behaviour is now known to be a Dynamic leadership development process. 17 . Theta model. one should make choices in accordance with the leader’s wo rldview. leaders need to recognise Lam bda that the choices they make for organisational activities have to fit their o wn worldview.e. 30 No. 2009) Objective:The paper examines selected leadership literature through the lens of theory building buildingblocks.Socially oriented 2. Leadership development Findings:The paper posits that leadership is a developmental process. A dynamic theory of leadership develope developement. It identifies the role of the ideal goal in lead ership and its importance in developing the psychological aspect of leadership. Le adership has examined three different phases within the leadership timeline: the past. & Kakabadse . 6. Lambda model Personally oriented modelThus keeping with either of the two wor ld view a leader keeps on making choices. While choice implies that two good options are always eader availabl e from which to select. Concl usion:The paper conceptualises that leadership quality develops by making choice s according to the following two world views: 1. NITIE Mumbai 4. A dynamic theory of leadership Development (Mostovicz. This means that an Ideal leader does not exists but a leader always strives to achieve ideal ethica l behaviour continuously. and the future. the desir ed and the undes undesired ones.
The extent to which the leade r is able to shift the primary focus of leadership from the organization to the follower is the distinguishing factor in classifying leaders as either transform ational or servant leaders. Transformational versus servant leadership: a difference in leader focus (Sto ne. while communicating expectations and demonstrating a commitment to goals and a shared vision. respected. and emulated by followers. Influence Fi ndings:The transformational leader’s focus is directed toward the organization. and the changes that are occurring in current thin king about the servant leadership approach. Idealized influence and inspirational motivation are usually combined to form charismatic charismatic-inspirational l eadership. Similarly. Idealized influence is the charismatic element of transformational leadersh ip in which leaders become role models who are admired. (2004. & Patterson. such as the challenges facing empirical i nvestigation and measurement. Transformational leadership. Transfor mational leaders transform the personal values of followers to support the visio n and goals of the organization by fostering an environment where relationships can be formed and by establishing a climate of trust in which visions can be sha red. stimulation of employees. 5. an d his or her behaviour builds follower commitment toward organizational objectiv es. 4)) Objective:This article examines transformational leadership and servant leadersh ip to determine what similarities and differences exist between the two leadersh ip concepts. the Transformational leaders play a vital role in Intellec tual . NITIE Mumbai This paper puts the views on dynamic theory of leadership. 18 . 25 No. and the achievement of o rganizational objectives is a subordinate outcome. which is based on the .Vol. while the servant leader’s focus is on the followers. Individualized consideration.PGDIE 40. Key Variables:Leadership. Transformational leaders inspire and motivate others by “providing m eaning and challenge to their followers’ work” The leader inspires followers to see the attractive future state. This article r also looks at the next stage of devel opmental issues in servant leadership. assumption that one can only strive toward truly ethical leadership with the knowledge that this goal is beyond human capacity capacity. Russell. The primary premise of the article i s that transformational leaders tend to focus more on organizational objectives while servant leaders focus more on the people who are their followers.
serve as role models. listen. Most importantly. teach. delegate responsibilities. Certainly. there are significant points of variation in the concepts. 19 . they are com plementary ideologies because they both describe excellent because forms of lead ership. throughout much of its history the concept has been systematically undefined and lacking in empiric al support. Conclusion:Both transformational leaders and servant leaders are vis ionaries. communicate. transformational leade rship and servant leadership are not antithetical theories. NITIE Mumbai While servant leadership is an increasingly popular concept. Nonetheless. transformational leaders tend to focus more on organizational objectives while servant leaders focus more on th people who are the their follo wers. show consideratio n for others. and influence followers. Rather. consideration empower followers. generate high levels of trust.PGDIE 40.
NITIE Mumbai Current organizational Structure of TATA Motors rganizational 20 .PGDIE 40.
In today’s world of computerization all th e activities are need to be computed and all the data is to be maintained precis ely to take the major management decision. manufacturing. the main Tata group has command over Tata motors. They are having frequen t interactions with their employees & workers. In Tata motors. etc can be interlinked. et c. they are having newsletters and house magazines published monthly for each division and are circulated though ou t the company. organizational climate plays an important role on employees’ behaviour The s ame concept behaviour. but all strategic actions & plans are taken by board of directors of Tata motors itself. As Tata motors is also operates with less levels of organizationa l structure. how environmen tal uncertainty effects product customization is not so clear. opera tions. Other paper defin es various impacts of organizational structure dimensions on knowledge sharing. During the initial years in 90s. purchase. it is having narrow span of control. AUTO CAD. 21 . No wadays. UG. One of the dimensions is formalization & it defines specific role & duties for d efines employees. Other dimensio n is financially. coordination. formally & informally which helps employees to feel more bounded with organization. the TATA Motors is using various software like for ease of all these act ivities like ERP & SAP also various design software like CATIA. As Tata motors is having relatively flat structure. Based on this data all the activities of the all departments like production. Article also relates environme ntal uncertainty with product customization. it helps in gathering & sharing the knowledge. But for Tata motors. In decentralizati on. In Tata motors. MD and CFO are circ circulated on regular basis. This helps them to gather. Thus th article the gives the importance of Infor mation Technology on organizational structure & mostly about Enterprise Resource Planning (ERP). It also talks about span of control & levels in structure. it h elps them in easy interaction between various level in structure which improves knowledge & ideas sharing within organization. Also. NITIE Mumbai COMPARISON & CONCLUSION TATA Motors with Organisation Structure ith As per article relating organizational structure & climate with knowledge manage ment. they follow Tata code of conduct & authority matrix which helps them to identify different responsibil ities and decision making powers of an individual both functionally and financially. their responsibilities. share & spread the knowledge & ideas very easily from level to level. finance. One of the article talks about pr oduct customization & organization. The higher level management is always accessib le to the lower level.PGDIE 40. held true in case of Tata motors. Also regular emails/correspondence from Chairman. TATA Motors was not having any efficient software that will monitor all the activities of the organization.
these are firstly India s first indigenous ly developed mini truck & Tata Magic is one of its own kinds. sense of belongingness towards organizatio n. Land Rover. The company has become one of the best in the supply chain management system due to incorporation of these IT solutions. payme payments. order execution. i nto a Group strategy think think-tank and a promoter of new ventures in high tec hnology businesses. manageme nt including the board of directors. etc. This keeps all the employees to be conne cted to the organization all the time and gives them the latest updates and happ ening in and latest around organization. This enables the easy and fast flow of information among the employees. In one paper. Also. He is currently part of 203 board members in 20 different organizations across 23 different indu stries. These practices help company to st rengthen its and organizational structure. newsletters about the wellbeing of the employees . 1 lakh. All the officers as well as employees of Tata motors started feeling ‘Nano’ as th eir own project. Ratan Tata . Initially his decisions were criti cized but now he is assumed to be one of the best in the world. other models like Tata Ace. NITIE Mumbai This enables TATA Motors to be more efficient in delivery. A ll the departments of TATA Motors are interconnected with intra networking ents system. to make a car for middle class families in Rs. suppliers. it is a dream of its chairman Mr. and they launch it in m arket successfully and it creates a blast in automobile industry creates worldwi de. deaths.PGDIE 40. The company is publishi ng directors. etc periodically. Research and Development department of Tata motors is working continuously on designing and developing new innovative p roduct range. it mostly focuses on inno vations and how it helps to improve organizational structure and its stability. as well as in maintaining in house inventory as well as ware house i n-house inventory management systems. Fiat. promotions. Due this reason. they also focuses on innovations. Xenon. TATA Motors with Leadership Style ith The group chairman Ratan Tata is responsible for transforming Tata Motors Ltd. As per one of the paper there is no such ideal leader rather on e evolves as an ideal leader with experience. as likely said in introduction company has introduced various innovative company models in market and they bec ame a boom. Mr. various articles. In Tata motors. 22 . as well as all the divisions are connected with internetworking system. vendors. His vision of making a truly international company brought i n a foreign CEO. Various joint ventures of the company also working for the same go al like Jaguar. This type of minitruck innovations creates some kind of spirit to work for organ organization wit h full responsibility and enthusiasm. For example. Ratan Tata was able to deliver his dream i n reality within stipulated time period. Tata Nano.
Hispano Carrocera. He ca n be said as a leader first while the group chairman can be said to be servant f irst. Before Mr Forster joined this company. He dra ws a hefty salary of over 34 lakh plus bonus and incentives per month and is on a contract period of three years. Its trucks were also boug ht for price first. the Manza. But since then the c ompany has had a slew of successful launches – the Indica Vista. since then he has been doing a fairly good job continue to increase s ales while simultaneously cutting costs. He pays a lot of focus on R&D. reported its first annual loss in seven years in the year ended M arch 2009. its ra nge of world trucks (and the Nano). He doesn’t spend too much time with the e nd customers but addresses the whole company quarterly. The parent group doesn’t have much cont rol over the TATA motor and it the it’s CEO of the company who is the boss. Every plan in the company is first evalua ted under Enterprise Risk Management team. Its products were dependable b ut were few said they’d buy their cars for personal use. It has also gone and bought a Spanish bus ma ker. 23 . NITIE Mumbai Earlier Tata Motors was seen as a sleepy company. Reliability was a lesser consideration. He is a true leader with a clear vision of bri nging TATA motors on international grounds. The man leading the charge is Carl Carl-Peter Foster who was in charge of General Motors’ European operations and he is trying to inter nationalize the company in true sense.PGDIE 40. Both this styles are complementary to each other. During this time Tata Motors has also realised it needs to globalise aggressively.
the official to 25/8/2010 over phone) 24 .PGDIE 40. (The interview date was r escheduled by e-mail. Correspondence with I Interviewee Communication from group member to interviewee through e e-mail Reply from interviewee to group member through e mail. NITIE Mumbai ANNEXURE 1.
Deputy Manager ond (Product Development – Electricals) Pune on 29th August 2010 at 1530 hrs. NITIE Mumbai We conducted the second interview telephonically with Mr Rakesh Kapoor . 25 .PGDIE 40.
best in the products we deliver. There are two main divisions based on product type viz Commercial vehicle division an d Passenger cars division. NITIE Mumbai 2. The operational activities are distributed to middle an d lower level. It encourages research based projects. seminar s and trainings. It has tie ups with various unive rsities. How much support is made available t o individuals for professional development such as – professional courses. They also have in house training programs. education. Few ideas have als o been 26 . and best in our value system an d ethics.” 2. A re new ideas from employees welcomed? If an idea is found good enough then is it implemented? Yes new ideas are welcomed from the employees and they are rewarde d suitably. How many divisions does TATA Motors have? Are the Divisions of the or ganization based on geographical situation or based on products differentiation? Or is it a mix of both? TATA MOTORS has a mixed organizational structure.“ Mission “To become a world class automotive engineering and product devel opment centre centre. sed Both these divisions have been subdivided as per geographical location into north south east and west zone.PGDIE 40. 3. 5. The strategic level activities are tak en up by top management. On an average a normal middle level employee is promoted every 3 5 years. higher education? ofessional Tata does provide research opportu nities. What are the oppor tunities to get promoted over the years? What is the career progression program/ policy deployed in TATA Motors? There is a very great scope of growth along with the company. 6. performance 4. Interview Questionnaire 1. and enable Tata Motors to become a world class automotive company. They have a suggestion boxes to invite new ideas. This becomes the base of their yearly performance appraisal. Who decides the work distribution? And How? The work is distributed in based on strategic activ ities or operational/routine assignments. An employee with 3-5 exceptional record and good performance is promoted on an average of two years. Scholarship of 50% up to 100% is provided by the company for higher edu cation. What are the organization’s goals and Mission? Vision "Best in the manner in wh ich we operate.
How often management interacts with employees? The management interact with t he employees on a regular basis. Apart from that there are various cultural activities throughout the year. What is the reporting procedure and flow flow ? 9. How much control of parent company is there on TATA Motors? TATA Motors is more or less independent. Accordingly the lower management hav e meeting with employees on day to day basis. 1 1. 10. All the strategic decisions are taken by Boa rd of directors of TATA motors. NITIE Mumbai implemented. How often different department s comes together and at what level? together Every month there is a ManCom meeti ng. (When asked very trivial example was given. The chairman addresses the whole company thrice a year.PGDIE 40. 8. like change in shape of envelope). Is the interaction among employees (at different posts) only limited to forma l levels or interaction is there on personal level also? The functional group me ets thrice a year for a cultural event with families. MD visits each division quarterly. The welfare association co nducts various activities throughout the year which involves employee and their family including different sport activities. 27 . 7.
15. How the span of contr ol of managers at TATA Motors? At corporate level the span of control varies fro m 1:5 to 1:7. 19. NITIE Mumbai 12. colleagues/juniors? Yes. 17. In general. The higher level management is always accessible to the lower level. whether the managers act as a mentor to their Motors. Is TATA Motors a pr oduct oriented organization or people oriented organization? TATA Motors is more of a product oriented organization. 13. Is there any difference in working styles of an Indian CEO and a Non Indian CEO? No. 18. what factors prompted to cancel the project there in spite of huge investment already incurred? They have an Enterprise risk manag ement (ERM) team that studies and evaluates ise different aspects of any occurre nce on operational. How do you approach complex problems? Like In case of NANO’s Singur Plant.PGDIE 40. Wha t practices do you implement during conflicts? Have you ever had to make a decis ion without knowledge of all the needed data? In case of conflicts the action pl an is chaired by top management. Also regul ar emails/correspondence from Chairman. 14. This indicates that the organisational structure is somewhere between flat and hierarchical structure. MD and CFO are circulated on regular bas is. there is no much difference in their working. While at t middle and the lower level management it varies as 1:10 . To what extend decision making power given to a dep artment? How much does the top level interfere in working within a department? e Each employee is bound by TATA Code of conduct and authority matrix which clear ly identifies different responsibilities and decision making powers of an indivi dual both functionally and financially. 16. 28 . in TATA Motors. they have a mentoring program which enables each employee to empower themselves in the fu nctional areas. How the organisation communicates effectively with the emplo yees? How lo long does it take for a message to reach from top of the organizati on to bottom and vice versa? They have newsletters and house magazines published monthly for each division and are circulated though out the company. functional and strategic background.
PGDIE 40 Batch of 2012 National Institut e of Industrial Engineer (NITIE) Mumbai Sunit Mhasade Roll no: 105. One Forbes. Rakesh Kapoor Deputy Manager (Product Development – Electricals) R&D Department. Fort Mumbai – 400 001 2. Rajesh Aidoor.411033 Who Visited 1. 1 Dr VB Gandhi Marg. One Forbes. 2010 1700 Hrs TA TA Motors Limited (Corporate Office) 4th Floor. 1 Dr VB Gandhi Marg. Mr. Fort Mumbai – 400 001 29th August. When Visited First Interview Date : Time : Venue : 25th August. 2010 1530 Hrs Telephonic Second Interview Date : Time : Nature : 29 . Sumit Guha Roll no: 104. GM (Internal Audit & ERM) TATA Motors Limited 4th Floor. PGDIE 40 Bat ch of 2012 National Institute of Industrial Engineer (NITIE) Mumbai 2.PGDIE 40. P une Tata Motors Pune . NITIE Mumbai LOG OF VISIT Whom visited 1.
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