A PROJECT REPORT ON

CHANGE MANAGEMENT AT TATA MOTORS

SUBMITTED BY
Nikhil Gade
M21017
M.M.S.
Finance
Batch: 2021 – 2023

Project Guide
Prof. Nimit Sheth

SYDENHAM INSTITUTE OF MANAGEMENT STUDIES, RESEARCH

AND ENTREPRENEURSHIP EDUCATION (SIMSREE)

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 CHANGE MANAGEMENT AT TATA MOTORS

This project report in the area of Management based on the in-depth study of the project
theme is submitted in May 2023 to Sydenham Institute of Management Studies,
Research and Entrepreneurship Education in partial fulfilment of the requirements
for the award of the two years Master in Management Studies (MMS), affiliated to
Mumbai University.

Submitted by
Name: Nikhil Gade Roll No: M21017

Through

Name of the Guide: Prof. Nimit Sheth

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 ACKNOWLEDGEMENT

It has always been my sincere desire as a management student to get an opportunity to

express my views, skills, attitude and talent in which I am proficient. A project is one such
avenue through which a student who aspires to be a future manager does something creative.
This project has given me the chance to get in touch with the practical aspects of
management.
I am extremely grateful to the University of Mumbai for having prescribed this project work
as part of the academic requirement in the Master of Management (MMS) course.
I wish to appreciate the management of Sydenham Institute of Management Studies,
Research and Entrepreneurship Education (SIMSREE) for providing all the required
facilities
I also wish to thank my Project Guide, Prof. Nimit Sheth, for guiding me throughout the
project and without whose support; the project may not have taken shape.
I also appreciate all the support provided by the library staff and the teaching and supporting
staff of Sydenham Institute of Management Studies, Research and Entrepreneurship
Education (SIMSREE) for providing all the necessary academic content and resources to
enable the completion of my project.
Finally, I thank all my friends and family members who have directly or indirectly helped me
towards the completion of this project.

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 EXECUTIVE SUMMARY

Change is the only constant thing in life. Tata Motors went through a period of significant
transition in the last decade. A number of changes were worked out during that phase with
respect to customer expectations, innovation strategy, and regulations governing safety and
environmental protection and continual competitiveness in terms of cost. These changes
were and are brought about by the company systematically driving its processes ahead
through a high level of product and process innovations. Tata Motors has a long history of
investment in R & D. It is a statement that has been corroborated by a very large number of
business successes. The road treaded by Tata motors required them to take lots of crucial
decisions. At that point of time the company showed willingness to take risks and drive itself
aggressively ahead.
Today Tata Motors ranks as the world’s fifth-largest manufacturer of medium and heavy
trucks—it has a 61 percent domestic market share in this segment—and has taken the
number-two position for sales of passenger vehicles in the Indian market. It has also built a
significant global presence, both through sales efforts in overseas markets (such as the
former Soviet republics, the Middle East, South Africa, South Asia, and Turkey) and through
acquisitions such as the takeover of Daewoo’s commercial-vehicle business in South Korea
and the purchase of a 21 percent stake in the Spanish bus manufacturer Hispano Carrocera.
In addition, Tata Motors has formed a joint venture with Marcopolo, the Brazilian bus
manufacturer. With an agreement in early 2006 to distribute Fiat cars in the Indian market
and a more recent memorandum of understanding with Fiat to establish a joint manufacturing
facility near the Indian city of Pune, Tata Motors has embarked on a wide-ranging global
partnership with the Italian group—an arrangement that both sides expect to flourish.
There is no doubt that Tata Motors will be at the forefront of the changes that will be evident
in the automobile industry of the future.

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 TABLE OF CONTENTS

Serial Content Page no

Number
1 Introduction To The Topic 6

2 Introduction To The Company 12

3 Changes at Tata Motors 13

4 Need for the Change 17

5 Relevance for the Change 17

6 Change in Workforce & culture 18

7 Role of Leadership in Change Management 19

8 Barriers to Change 19

9 Planning The Change at Tata Motors 20

10 Employee Motivation to Accept the Change 24

11 Evaluating The Change Process at Tata Motors 25

12 OD Interventions and its Implementation 27

14 Conclusion & Strategies To manage Change Process 29

15 Suggestions 29

16 Bibliography 31

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 INTRODUCTION TO CHANGE MANAGEMENT

Change management is a structured approach to transitioning individuals, teams, and

organizations from a current state to a desired future state. Change management (or change
control) is the process during which the changes of a system are implemented in a controlled
manner by following a pre-defined framework/model with, to some extent, reasonable
modifications.

Change management is the process of developing a planned approach to change in an

organization. Typically the objective is to maximize the collective benefits for all people
involved in the change and minimize the risk of failure of implementing the change. The
discipline of change management deals primarily with the human aspect of change, and is
therefore related to pure and industrial psychology.

In project management, change management refers to a project management process where

changes to a project are formally introduced and approved.

The field of change management grew from the recognition that organizations are composed
of people. And the behaviors of people make up the outputs of an organization.

Types of Organizational Change

• Strategic changes
• Technological changes
• Structural changes
• Changing the attitudes and behaviors of personnel

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There are many models in understanding the transitioning of individuals through the phases
of change management and strengthening organizational development initiative in both
government and corporate sectors. They are:

1. ADKAR Model
2. Unfreeze-Change-Refreeze
3. Kübler-Ross
4. Formula for Change
5. PCI (People Centered Implementation)

Some of the Potential issues concerning the successful Change deployment process:

The House (Of Quality) Needs Foundations

Underestimating the need for a support structure can be a big mistake in the process of
deploying Lean or Six Sigma. It is important to first assess the gap between your current state
and the future, desired state. This activity produces a list of things that need to change and, in
addition, those that need to be positively reinforced. In the change process, this is not an
either/or proposition. Both need to be done. As an example, if one has the fortune of having
an army of talented Black Belts but a broken Champion support system, the program can fail
in a heartbeat. Again, if both are present and yet, executive support is absent, then that can
lead to disastrous results for a program as well.

The role of a consultant is potentially huge in this case. The superior knowledge base can be
helpful in foreseeing roadblocks and addressing them at the very outset.

Speed Can Be An Illusion

One common trait of all change initiatives is that they go through a series of necessary steps
that have their own lead times. Failing to recognize this fact often leads to skipping essential
activities that only create an illusion of speed and never produces desired results.

Sustaining A Shared Vision

Most executives do a good job of communicating a strong sense of urgency to effect change
and move people out of their comfort zones. This often launches a flurry of activities in the
right direction to start with. However, sustaining the quality and level of activities is a
different ball game. For the abstraction that is called business, it requires more than
organizational structure, incentives and job descriptions to have a multitude of people work in
a concerted manner towards a common objective -- it requires a shared vision. It is one, in
which everybody has a role to play, everybody clearly understands his or her role, and
everyone knows "what is in it for me?"

Having a shared vision and communicating it well are essential in galvanizing a workforce to
come together and stay together, during the process of change..

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New Vision, Old Contraints

Doing the same old thing and expecting different results is the definition of insanity. As much
as new tools and a new roadmap empowers people to do things differently, systemic
constraints
-- be it organizational structure or reward system -- if not addressed adequately can seriously
damage the credibility of the effort and make cynics out of employees.
Actions to confront big roadblocks early in the deployment phase can do the magic of
boosting morale and providing momentum to overcome psychological hurdles throughout the
organization.

Show Me The Money

In all fairness to the shareholders, every initiative should aim at producing measurable
economic benefit to a business. Care should be taken to ensure that there is correlation
between the metrics used to monitor improvement efforts and the bottom line. This may
warrant adjustments to the accounting procedures2 to enable the identification of reform
opportunities, drive the right activities and calculate project benefits consistently. In many
cases, gains are realized only after a series of project segments (like a step function).
It is important in such cases to make sure that cost accounting doesn't disincentives the very
activities that culminate into a breakthrough.

Leaders Wanted

More often than not, management is incentivised to minimize risk and preserve the status
quo. Change on the other hand requires creation of a new state of business, which naturally
requires leadership. A paralyzed decision making process (often the biggest impediment to
change) is a symptom of having too many managers and not enough leaders3.

Great leaders transform cultures and stimulate breakthroughs. It is vital to have a good
number of them on one's side as champions of the renewal process.

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Strategic changes

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Technological Changes

Structural Changes

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Behavioural Changes

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 INTRODUCTION TO TATA MOTORS

Tata Motors Limited is India's largest automobile company, with consolidated revenues of
Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The company is the world's fourth largest
truck manufacturer, and the world's second largest bus manufacturer.

The company's 24,000 employees are guided by the vision to be "best in the manner in which
we operate, best in the products we deliver, and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and
Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The
company's dealership, sales, services and spare parts network comprises over 3500 touch
points; Tata Motors also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile
company. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles 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 subsequently the remaining stake in 2009.
Hispano's presence is being expanded in other markets. In 2006, Tata Motors 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. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's pickup
vehicles in Thailand.

In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first
indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of

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thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT
and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds regulatory requirements in
India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in
India today. The lean design strategy has helped minimise weight, which helps maximise
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,
in keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in performance at a lower
life-cycle cost.

Tata Motors is equally focussed on environment-friendly technologies in emissions and

alternative fuels. . It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.

CHANGES AT TATA MOTORS

Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing
industry which happened in 2001. This success story of Tata Motors can be entirely attributed
to the timely change adopted by the Tatas and the then M.D Ravi Kant who led the change.
Today Tata Motors ranks as the world’s fifth-largest manufacturer of medium and heavy
trucks—it has a 61 percent domestic market share in this segment—and has taken the
number- two position for sales of passenger vehicles in the Indian market. It has also built a
significant global presence, both through sales efforts in overseas markets (such as the former
Soviet republics, the Middle East, South Africa, South Asia, and Turkey) and through
acquisitions such as the takeover of Daewoo’s commercial-vehicle business in South Korea
and the purchase of a 21 percent stake in the Spanish bus manufacturer Hispano Carrocera.
Tata Motors was predominantly a manufacturer of commercial vehicles, and that is a very
cyclical business. The commercial-vehicle market in India shrank by more than 40 percent,
with massive consequences for both the top and, more particularly, the bottom lines of the
company. The 5-billion-rupee loss in 2001 was the first time something on this scale had
happened in the company’s history, and it really shook everybody within the organization.
They tried to understand what had gone wrong and wanted to create a path for the future to
ensure that they never got into such a situation again. So in 2001 they decided on a recovery
strategy that had three distinct phases, each of which was intended to last for around two
years—six years in all.

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Phase one was intended to stem the bleeding. Costs had to be reduced in a big way, and that
was going to be a huge challenge for a company that was not only the market leader but had
been used to operating in a seller’s market and employing a cost-plus approach to pricing.
Phase two was to be about consolidating their position in India, and phase three was to
involve going outside India and expanding our operations internationally.
Phase 1:

The key objectives were to move to a system of market pricing and to reduce their break-even
point, both of which called for major reductions in costs—variable costs, fixed costs, and
interest costs. They used many approaches to cost reduction, including bench-marking our
rivals. For example, they took apart vehicles to see what they could do to modify the products
and to lower costs. They went in for e-sourcing, and today they are the largest company doing
e-sourcing in India and one of the leading ones in the automobile industry worldwide. In two
and a half years, they reduced the break-even from nearly two-thirds of capacity utilization to
around onethird, which meant that even if the market shrank by close to 60 percent, they
would still be in the black. The whole organization really got together to ensure that the
bleeding stopped.
One of the major drivers of success at Tata Motors Ltd. (TML) was its ability to fully exploit
information technology to drive business goals and reduce cost. The company was an early
adopter of CAD and CAM systems.
Phase 2:

The concentration in phase one was indeed on cost reduction, but while this was going on
they thought about taking action in areas that would have an impact during the other phases.
For phase two, the concentration was on improving product quality and upgrading product
features so as to make the products more competitive. They also started work on new
products that would be required by the market after three to five years and strengthened the
position in the marketplace by setting up a new salesplanning process, tightening credit
norms, improving the liquidity and profitability of the dealers, reorienting toward customer
satisfaction, and extending the reach of the distribution network. For phase three, the
concentration was on starting work on international markets by identifying key markets and
segments and developing a comprehensive plan to improve our competitive position so as to
get a respectable market share. They also started looking at opportunities for inorganic
growth.
Phase 3:

In phase the concentration was on starting work on international markets by identifying key
markets and segments and developing a comprehensive plan to improve Tata Motor’s
competitive position so as to get a respectable market share. They also started looking at
opportunities for inorganic growth. International diversification was such a key part of the
transformation strategy. It was all part of first, reducing the impact of domestic cyclicity –
cyclicity is present across the world but in different phases in different places - and, second,
seeking new geographies for growth in the face of the limitations of the domestic market,
especially in commercial vehicles, where we enjoy a very high market share of over 60
percent. Tata Motors wanted to leverage the market-leading products internationally.

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 TATA NANO
Sweeping Change

Tata Nano, the new model introduced by Tata motors, hailed as "the people's car", is an
amazingly cheap car. With a price tag of US$ 2500, Tata Nano is indeed an affordable middle
class family car. Tata Nano is a dream comes true for an average Indian. His /her ideas about
owning and driving a car will become a reality soon. An analysis of the new car seems
necessary as it is bringing mobility to the masses in an efficient and economic manner.

Achieving the cost objective

Tata has defied the conventional odds and sceptics in the industry through the innovation of
the world's cheapest car. Tata Nano is a marvel of a product yet audaciously economical and
mechanically simple. It is a breakthrough in frugal engineering where innovation is driven by
cost savings and sheer ingenuity. Tata managed to reorient the basic tenets of efficiency and
practicality to meet the cost target.

Tata Nano's efficiency comes from including only those items that are necessary for basic
transportation and eliminating the not so relevant ones i.e. having one part/component that
can perform a task just as good as two parts/ components can do, thus resulting in cost
savings, e.g. one windscreen wiper and one side mirror. Tata also refrains from including
items that are not feasible due to monetary reasons. Radio, air conditioner (despite the
sizzling heat in India), power steering are not included while the instrument panel consists of
only a speedometer, odometer, and fuel gauge similar to that of the two-wheelers- basic, yet
functional.

In addition, Tata has come up with practical ways to reduce car weight and thereby trim down
the overall cost. It uses comparatively small and light engine, a 623cc twocylinder petrol
engine made of aluminium, unlike conventional engines which are made out of cast iron. The
engine of Tata Nano is strategically placed at the back of the car leaving the front section for
luggage, that too with the capacity of a briefcase. This is the most significant element in
bringing down the weight and the overall cost of the car. Other factors that contribute towards
the weight reduction are the usage of hollow steering wheel shafts, plastic body panels and
smaller tubeless tyres. As a result of these measures, Tata Nano weighs only about 590kg.
Lesser weight and fewer parts mean less raw material and lower cost for Tata Nano.

Safety in mind
Besides having the right parts to meet the cost objective, Tata Nano has adequate features that
exceed current regulatory requirements and meet minimum safety standards. It has a sheet-
metal body with strong passenger compartment equipped with safety features such as
crumple zones, intrusion-resistant doors, seat belts, strong seats and anchorages. The rear
tailgate glass is fixed to the body and tubeless tyres enhance safety further.

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Ownership cost
It is quite obvious that Tata Nano is cheap to manufacture, but the question is, does owning
and operating a Nano over a period of time yield significant savings and benefits? While the
low- price tag of Nano looks attractive, it is important to look at certain other factors like the
running cost of the car in the long run. Potential buyers need to consider the rising price of
petrol. Petrol prices have breached the US$ 100 mark with no sign of abating as global
demand skyrocketed. The influx of thousands of Tata Nano on Indian roads would elevate the
demand for petrol and this might bring a new dimension to the continuous hike of petrol price
in India, which still depends on the Middle East for oil. Petrol prices may reach a point where
owners of Tata Nano could no longer afford to buy petrol to run it. If that is the case, Tata
Nano owners may leave their cars behind and resort to riding two-wheelers. In such a
scenario, Tata Nano's value proposition may no longer make an economic sense. The low
cost of ownership model championed by Tata may not remain successful at times of surging
energy prices.

The would-be owners of Tata Nano have to consider the cost of replacement parts and service
maintenance for the car during the period of ownership. Tata Nano is built from scratch and
most of the component parts are new and do not share platform with other models in the Tata
family. As a result, it is difficult to assess the vehicle's reliability, durability and parts'
longevity. These factors along with unavailability of the model have made it difficult to
estimate the cost of ownership of Tata Nano and the frequency of service trips. The overall
cost of parts and services of Tata Nano is likely to be at the range of similarly sized car like
Maruti 800. The perception of frequent parts breakdown and shorter service interval due to
sub- standard parts and inferior materials on budget cars may not hold true for Tata Nano.
Tata Nano's component parts are developed and manufactured by reputable component
manufacturers like Bosch, Rico Auto, Lumax Group, Rane Group, Asahi Glass etc.
Moreover, the cost of parts and services is likely to decline as more Tata Nano cars are driven
on the road.

Nano overseas
The rise in petrol prices makes consumers around the world to look for a low cost car. Tata
seems to capture this trend and is looking forward to introduce Tata Nano beyond Indian
shores. One of the countries where Tata Nano is likely to make inroads is Thailand, dubbed as
the 'Detroit of Asia', due to its extensive vehicle manufacturing activities in ASEAN region.

Thailand has introduced the 'Eco-Car' project, a framework laid by the government to build
green cars that are fuel efficient and cost effective. Vehicle manufacturers all over the world
are invited to submit plans for the Eco-car investment project in Thailand. Various incentives
have been provided for manufacturers of green cars in Thailand, including exemption from
corporate tax for up to eight years and duty exemption for imported machinery. However, the
investment should yield an output of 100,000 units by the fifth year of production. Such
initiative bodes well for Tata Nano. Tata is one of the seven manufacturers that have
submitted applications for the Eco-Car project and its application has already been approved.
Tata might use this plan to export to other ASEAN countries through the ASEAN free trade
area agreement (AFTA).

TATA MOTORS’ BIG PLANS

Tata Motors has decided to make some strategic changes. The first and foremost is that it is
entering into the combat vehicle manufacturing business. The other is that the company is
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planning to sell some of its stake from its vehicle sales division.

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The auto company is now going to make combat vehicles which are mine protected.
MD Tata Motors (Indian Operations) PM Telang informed that the aim of Tata Motors was to
be present in every level of defense sector's value chain. It is going to do this by consolidating
its traditional supply chains and entering into higher level of equipment manufacturing. Tata
Motors will be looking forward to form partnerships.

The company already has its presence in defense sector ever since 1985.

Meanwhile, it is also eager to sell some stake in Tata Motors Finance Ltd. While no partner
has been finalized till now, latest developments suggest that SBI my go ahead and buy stake.

India's largest bank wants to have a unit for giving loans to trucks and buses and this
requirement can be fulfilled by having a share in TMFL.

NEED FOR THE CHANGE AT TATA MOTORS

Change should not be done for the sake of change -- it's a strategy to accomplish some overall
goal. Usually organizational change is provoked by some major outside driving force, e.g.,
substantial cuts in funding, address major new markets/clients, need for dramatic increases in
productivity/services, etc. Typically, organizations must undertake organization-wide change
to evolve to a different level in their life cycle, e.g., going from a highly reactive,
entrepreneurial organization to more stable and planned development. Transition to a new
chief executive can provoke organization-wide change when his or her new and unique
personality pervades the entire organization.

RELEVANCE OF THE MODELS OF CHANGE

Kurt Lewin theorized that there are three stages to change:

Unfreezing
Although there will be confusion, overload and despair, there will also be hope, discovery,
and excitement. This period requires a lot of coaching as they are learning and just a little bit
of cheerleading due to the affect of Arousal Overloading.

Refreezing
The new processes are now intellectually and emotionally accepted. What has been learned is
now actually being practiced on the job. Just a little bit of coaching is required and a lot of
cheerleading is used to set up the next change process. . . remember it is continuous process
improvement!

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CHANGE IN WORKFORCE AND CULTURE

1. Formulation of a clear strategic vision: In order to make a cultural change

effective a clear vision of the firm’s new strategy, shared values and behaviours is
needed. This vision provides the intention and direction for the culture change
2. Display Top-management commitment: It is very important to keep in mind
that culture change must be managed from the top of the organization, as willingness
to change of the senior management is an important indicator (Cummings & Worley,
2005, page 490). The top of the organization should be very much in favour of the
change in order to actually implement the change in the rest of the organization. De
Caluwé & Vermaak (2004, p 9) provide a framework with five different ways of
thinking about change.
3. Model culture change at the highest level: In order to show that the
management team is in favour of the change, the change has to be notable at first at
this level. The behaviour of the management needs to symbolize the kinds of values
and behaviours that should be realized in the rest of the company. It is important that
the management shows the strengths of the current culture as well, it must be made
clear that the current organizational does not need radical changes, but just a few
adjustments.
4. Modify the organization to support organizational change: The fourth step
is to modify the organization to support organizational change.
5. Select and socialize newcomers and terminate deviants: A way to
implement a culture is to connect it to organizational membership, people can be
selected and terminate in terms of their fit with the new culture.
6. Develop ethical and legal sensitivity: Changes in culture can lead to tensions
between organizational and individual interests, which can result in ethical and legal
problems for practitioners. This is particularly relevant for changes in employee
integrity, control, equitable treatment and job security.
Change of culture in the organizations is very important and inevitable. Culture innovations is
bound to be because it entails introducing something new and substantially different from
what prevails in existing cultures. Cultural innovation is bound to be more difficult than
cultural maintenance. People often resist changes hence it is the duty of the management to
convince people that likely gain will outweigh the losses. Besides institutionalization,
deification is another process that tends to occur in strongly developed organizational
cultures. The organization itself may come to be regarded as precious in itself, as a source of
pride, and in some sense unique. Organizational members begin to feel a strong bond with it
that transcends material returns given by the organization, and they begin to identify with in.
The organization turns into a sort of clan.

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 ROLE OF LEADERSHIP IN CHANGE MANAGEMENT

To be an effective leader of an organization requires you to do five things:

• Understand and interpret the environment in which he operate
• Develop winning strategies
• Execute them brilliantly;
• Measure the impact of your strategies followers. If you get results, people will
support you, systematically, adjusting strategies as often without caring too much
about how you got indicated.
• Develop organizational, departmental; the world won't retain the support of
your followers’ team and personal capabilities.

BARRIERS TO CHANGE

The three greatest barriers to organizational change are most often the following.

1. Inadequate Culture-shift Planning. Most companies are good at planning changes

in reporting structure, work area placement, job responsibilities, and administrative structure.
Organizational charts are commonly revised again and again. Timelines are established,
benchmarks are set, transition teams are appointed, etc.
Failure to foresee and plan for resultant cultural change, however, is also common. When the
planning team is too narrowly defined or too focused on objective analysis and critical
thinking, it becomes too easy to lose sight of the fact that the planned change will affect
people. Even at work, people make many decisions on the basis of feelings and intuition.
When the feelings of employees are overlooked, the result is often deep resentment because
some unrecognized taboo or tradition has not been duly respected.
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2. Lack of Employee Involvement. People have an inherent fear of change. In most
strategic organizational change, at least some employees will be asked to assume different
responsibilities or focus on different aspects of their knowledge or skill. The greater the
change a person is asked to make, the more pervasive that person's fear will be. There will be
fear of change. More important, however, there will be fear of failure in the new role.
Involving employees as soon as possible in the change effort, letting them create as much of
the change as is possible and practical is key to a successful change effort. As employees
understand the reasons for the change and have an opportunity to "try the change on for size"
they more readily accept and support the change.

3. Flawed Communication Strategies. Ideal communication strategies in situations of

significant organizational change must attend to the message, the method of delivery, the
timing, and the importance of information shared with various parts of the organization.
Many leaders believe that if they tell people what they (the leaders) feel they need to know
about the change, then everyone will be on board and ready to move forward. In reality,
people need to understand why the change is being made, but more importantly, how the
change is likely to affect them. A big picture announcement from the CEO does little to help
people understand and accept change. People want to hear about change from their direct
supervisor. A strategy of engaging direct supervision and allowing them to manage the
communication process is the key to a successful change communication plan.

PLANNING THE CHANGE AT TATA MOTORS

Tata Motors look at his eight steps for leading change below.

Step One: Create Urgency

For change to happen, it helps if the whole company really wants it. Develop a sense of
urgency around the need for change. This may help you spark the initial motivation to get
things moving.

This isn't simply a matter of showing people poor sales statistics or talking about increased
competition. Open an honest and convincing dialogue about what's happening in the
marketplace and with your competition. If many people start talking about the change you
propose, the urgency can build and feed on itself.

What to do is:

• Identify potential threats, and develop scenarios showing what could happen
in the future.
• Examine opportunities that should be, or could be, exploited.
• Start honest discussions, and give dynamic and convincing reasons to get
people talking and thinking.
• Request support from customers, outside stakeholders and industry people to
strengthen your argument.

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Step Two: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and visible
support from key people within your organization. Managing change isn't enough - one has to
lead it.

It can find effective change leaders throughout an organization - they don't necessarily follow
the traditional company hierarchy. To lead change, one need to bring together a coalition, or
team, of influential people whose power comes from a variety of sources, including job title,
status, expertise, and political importance.

Once formed, “change coalition" needs to work as a team, continuing to build urgency and
momentum around the need for change.

What to do is:

• Identify the true leaders in your organization.

• Ask for an emotional commitment from these key people.
• Work on team building within your change coalition.
• Check your team for weak areas, and ensure that you have a good mix of
people from different departments and different levels within your company.

Step Three: Create a Vision for Change

When we first start thinking about change, there will probably be many great ideas and
solutions floating around. Link these concepts to an overall vision that people can grasp
easily and remember.

A clear vision can help everyone understand why you're asking them to do something. When
people see for themselves what you're trying to achieve, then the directives they're given tend
to make more sense.

What to do is:

• Determine the values that are central to the change.

• Develop a short summary (one or two sentences) that captures what you "see"
as the future of your organization.
• Create a strategy to execute that vision.

• Ensure that your change coalition can describe the vision in five minutes or
less.
• Practice your "vision speech" often.

Step Four: Communicate the Vision

What you do with your vision after you create it will determine your success. Your message
will probably have strong competition from other day-to-day communications within the
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company, so you need to communicate it frequently and powerfully, and embed it within
everything that you do.

Don't just call special meetings to communicate your vision. Instead, talk about it every
chance you get. Use the vision daily to make decisions and solve problems. When you keep it
fresh on everyone's minds, they'll remember it and respond to it.

It's also important to "walk the talk." What you do is far more important - and believable -
than what you say. Demonstrate the kind of behaviour that you want from others.

What to do is:

• Talk often about your change vision.

• Openly and honestly address peoples' concerns and anxieties.
• Apply your vision to all aspects of operations - from training to performance
reviews. Tie everything back to the vision.
• Lead by example.

Step Five: Remove Obstacles

If we follow these steps and reach this point in the change process, we've been talking about
our vision and building buy-in from all levels of the organization. Hopefully, our staffs want
to get busy and achieve the benefits that you've been promoting.

Put in place the structure for change, and continually check for barriers to it. Removing
obstacles can empower the people you need to execute your vision, and it can help the
change move forward.

What to do is:

• Identify, or hire, change leaders whose main roles are to deliver the change.
• Look at your organizational structure, job descriptions, and performance and
compensation systems to ensure they're in line with your vision.
• Recognize and reward people for making change happen.
• Identify people who are resisting the change, and help them see what's needed.
• Take action to quickly remove barriers (human or otherwise).

Step Six: Create Short-term Wins

Nothing motivates more than success. Give a company a taste of victory early in the change
process. Within a short time frame (this could be a month or a year, depending on the type of
change), one want to have results that your staff can see. Without this, critics and negative
thinkers might hurt your progress.

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Create short-term targets - not just one long-term goal. You want each smaller target to be
achievable, with little room for failure. Your change team may have to work very hard to
come up with these targets, but each "win" that you produce can further motivate the entire
staff.

What to do is:

• Look for sure-fire projects that you can implement without help from any
strong critics of the change.
• Don't choose early targets that are expensive. You want to be able to justify
the investment in each project.
• Thoroughly analyze the potential pros and cons of your targets. If you don't
succeed with an early goal, it can hurt your entire change initiative.
• Reward the people who help you meet the targets.

Step Seven: Build on the Change

Change projects fail because victory is declared too early. Real change runs deep. Quick
wins are only the beginning of what needs to be done to achieve long-term change.

Launching one new product using a new system is great. But if you can launch 10 products,
that means the new system is working. To reach that 10th success, you need to keep looking
for improvements.

Each success provides an opportunity to build on what went right and identify what you can
improve.

What to do is:

• After every win, analyse what went right and what needs improving.
• Set goals to continue building on the momentum you've achieved.
• Learn about kaizen, the idea of continuous improvement.
• Keep ideas fresh by bringing in new change agents and leaders for your
change coalition.

Step Eight: Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of your organization.
Your corporate culture often determines what gets done, so the values behind your vision
must show in day-to-day work.

Make continuous efforts to ensure that the change is seen in every aspect of your
organization. This will help give that change a solid place in your organization's culture.

It's also important that your company's leaders continue to support the change. This includes
existing staff and new leaders who are brought in. If you lose the support of these people, you
might end up back where you started.

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What to do is:

• Talk about progress every chance you get. Tell success stories about the
change process, and repeat other stories that you hear.

• Include the change ideals and values when hiring and training new staff.
• Publicly recognize key members of your original change coalition, and make
sure the rest of the staff - new and old - remembers their contributions.
• Create plans to replace key leaders of change as they move on. This will help
ensure that their legacy is not lost or forgotten.

EMPLOYEES MOTIVATION TO ACCEPT THE CHANGE

The employee motivation during change implies a tactical "quick fix" approach. Whereas to
achieve a peak performance from your people and in so doing, to create a genuine source of
competitive advantage demands a strategic approach that embraces leadership style,
corporate cultures and the supporting business and management processes.

At root this is all about the emotional dimension - specifically the emotional commitment of
your employees and achieving an alignment and maintaining the balance between corporate
performance and individual employee fulfilment.

In practise this means establishing what is important to your people, communicating to them
what is important to you and the organisation, and finding ways of meeting both their and
your goals. This is what lies at the heart of employee motivation techniques.

There are 4 techniques to be taken care of for motivating employees in change management:

1. Clarity in all areas- especially of the business needs for the change, of the
specifics of the change, the benefits of the change, and most importantly the impacts
of the change. Also, at an individual level ensuring that people know precisely what is
expected of them - i.e. you translate the vision into actionable steps.

2. Communication – constant communication; two-way communication;

communication that explains clearly what is happening or not happening and why,
that listens actively and demonstrates to people that you have thought through the
impacts of the change on them, and that you are prepared to work with them to
achieve their buy-in and commitment to the change.
3. Consistency - in all aspects of the way in which you lead the change, manage
the delivery, handle the communication, and ensure the realisation of the benefits.
4. Capability - constant attention to the management of the projects and
initiatives that are delivering the capabilities into your organisation that will deliver
the benefits.

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 EVALUATING THE CHANGE PROCESS AT TATA MOTORS

Evaluating the organizational change in culture, Tata Motors follow different approaches
such as, analysing the fundamental assumptions, investigating the cultural gaps and
managerial behaviour in the organization.

There are different models provided for investigating and analyzing the organizational
culture. But in our researches we applied the “Denison” model. This model is one of the most
comprehensive models that divide the organizational culture into four parts based on two
axels (degree of focus and degree of stability)

On the basis of organizational concentration It is possible to divide this model into two parts
by horizontal dissection. Cooperation and compatibility pay attention to organization internal
dynamism, but they don’t care about their relations with external environment. Yet
adaptability and mission consider organization’s connection with the external environment. It
is also possible to divide the model into two parts by vertical dissection. Involvement and
partnership enforce on organization’s capacity for flexibility and change, although
compatibility and mission enforce on stability and having a specific path. Regarding to
researches these four cultural characteristics have a positive influence on organization
performance.

Characteristics have its own specifications that will be described below:

Adaptability: making the demand of market practical is called adaptability. Belief and norm
systems of the organization perform the related behavioral changes by supporting
organization’s opportunities and it will increase the organization’s chance for survival,
development and expansion with the help of perception, explanation and rendition of
environmental signals, and. There are three aspects of adaptability considered in Denison
model which affect the organization’s effectiveness. The First aspect is called the ability of
realization and reacting to the external environment. Nowadays successful organizations are
the ones which has a special emphasis on their customers and competitor’s behaviors. Second
aspect is the ability to reacting to internal events without considering level, department,
function and output. And the third aspect is the capacity and ability to organize and
reengineer processes and behavioral structures which help the organization to adapt with new
conditions. Without this ability the organization will miss its effectiveness.

The standards for adaptability are:

• Making the changes,
• Customer focus,
• Organizational learning.

Constancy: defines the values and systems which form a strong culture. Constancy provides a
central force for organizational solidarity and harmony. Organizations provide constancy by
developing a set of organizational systems that establishes an internal management system on
the basis of bilateral support of employees and employers. These organizations have
committed employees, core values, different ways to perform business, tendency for
promotion and an obvious set of rules that determine things musts and mustn’t. Constancy
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creates a powerful

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organizational culture based on joint beliefs, values and symbols which are reasonable and
perceivable for the employees. Internal control systems that are based on organization’s
values are more effective tools in order to reach integrity and coordination than external
control systems that are on the basis of rules.

Standards for this cultural characteristic are:

• Integrity and coordination
• Core values
• Agreement.

Involvement: what we mean by involvement is to increase responsibility in employees.

According to organizational culture when employees are highly attached to their work, they
are encouraged to involve in performance and have responsibilities. These organizations have
informal, volunteer controls instead of formal, obvious ones. Responsibility causes
commitment and independency in employees and improves employees’ decisions quality.

Standards of involvement are:

• Empowerment
• Capability development
• Team orientation

Mission: defines a long term direction for the organization. Mission distinguishes goals of the
organization with defining social role and external objectives of the organization. With the
help of the direction and these distinct goals, mission specifies the activities that should be
performed by the employees. Considering the position where organization is planned to
reach, activities and strategies will be identified. Probability of organization’s success will be
increased by converging employees and the organization.

Standards of this section are:

• Strategic direction and intent
• Goals and objectives
• Vision

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 OD INTERVENTIONS

&

ITS IMPLEMENTATION

Organization Development (OD) interventions techniques are the methods created by OD

professionals and others. Single organization or consultant cannot use all the interventions.
They use these interventions depending upon the need or requirement.

The most important interventions are:

• Survey feedback.
• Process Consultation.
• Sensitivity Training.
• The Managerial grid.
• Goal setting and Planning.
• Team Building and management by objectives.
• Job enrichment, changes in organizational structure and participative management and
Quality circles, ISO, TQM.

Survey feedback: The intervention provides data and information to the managers.
Information on Attitudes of employees about wage level, and structure, hours of work,
working conditions and relations are collected and the results are supplied to the top
executive teams. They analyse the data, find out the problem, evaluate the results and
develop the means to correct the problems identified. The team are formed with the
employees at all levels in the organization hierarchy i.e, from the rank and file to the top
level.

Process Consultation: The process consultant meets the members of the department and
work teams observes their interaction, problem identification skills, solving procedures
etc. He feeds back the team either the information collected through observations,
coaches and counsels individuals & groups in moulding their behaviour.

Goal setting and planning: Each division in an organization sets the goals or formulates
the plans for profitability. These goals are sent to the top management which in turn sends
them back to the divisions after modification.

Managerial grid: This identifies a range of management behaviour based on the

different ways that how production/service oriented and employee oriented states interact
with each other. Managerial grid is also called as instrumental laboratory training as it is
a structured version of laboratory training. It consists of individual and group exercises
with a view to developing awareness of individual managerial style interpersonal
competence and group effectiveness. Thus grid training is related to the leadership styles.
The managerial grid focuses on the observations of behaviour in exercises specifically
related to work. Participants in this training are encouraged and helped to appraise their

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own managerial style.

There are 6 phases in grid OD:

First phase is concerned with studying the grid as a theoretical knowledge to understand
the human behaviour in the Organization.

Second phase is concerned with team work development. A seminar helps the members
in developing each member’s perception and the insight into the problems faced by
various members on the job.

Third phase is inter group development. This phase aims at developing the relationships
between different departments.

Fourth phase is concerned with the creation of a strategic model for the organization
where Chief Executives and their immediate subordinates participate in this activity.

Fifth phase is concerned with implementation of strategic model.. Planning teams are
formed for each department to know the available resources, required resources,
procuring them if required and implementing the model Sixth Phase is concerned with
the critical evaluation of the model and making necessary adjustment for successful
implementation.

Management by Objectives (MBO) is a successful philosophy of management. It

replaces the traditional philosophy of “Management by Domination”. MBO led to a
systematic Goal setting and planning. MBO is a process by which managers at different
levels and their subordinates work together in identifying goals and establishing
objectives consistent with Organizational goals and attaining them.

Team building is an application of various techniques of Sensitivity training to the actual

work groups in various departments. These work groups consist of peers and a supervisor.

Sensitivity training is called a laboratory as it is conducted by creating an experimental

laboratory situation in which employees are brought together. The Team building
technique and training is designed to improve the ability of the employees to work
together as teams.

Job enrichment is currently practiced all over the world. It is based on the assumption in
order to motivate workers, job itself must provide opportunities for achievement,
recognition, responsibility, advancement and growth. The basic idea is to restore to jobs
the elements of interest that were taken away. In a job enrichment program the worker
decides how the job is performed, planned and controlled and makes more decisions
concerning the entire process.

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 CONCLUSION

Tata Nano achieves what most people deemed impossible through originality and ingenuity.
It is a no-frills car that serves the needs of the general public and India's deplorable road
conditions and notorious traffic. In this sense, the production and launch of Tata Nano can be
called a revolution - not only to the consumers but also to industry players. Other players are
contemplating on their own versions of low cost alternatives as a result of the overwhelming
response from the Indian public and all over the world during the pre-launching ceremony.
Moreover, their skepticism is met with a surprise upon seeing the model in action. The next
step forward for Tata is to address the possible concerns with regard to ownership in order for
customers to grasp the value proposition that Tata is trying to propagate. This includes
dispelling all perceptions of shortcomings normally associated with a low-cost car through
vigorous testing on real roads using real users. The basic rule of customer service still applies.
Tata Nano should meet the consumer's expectations by providing a reliable and modestly safe
vehicle to drive. The car, with its immense recognition gained even before its launch, is
expected to fulfil the dreams of common people.

STRATEGIES TO MANAGE CHANGE PROCESS

• There must be situational awareness so that the employees adapt such

organizational changes and get motivated to accept a change.

• There must be supporting structure so that employees manage a change in a

organization easily and top level management people support him for that.

• Strategy analysis must be done so that employee would aware about what
would be the change and what step must be taken to manage the change.

• Training program must be there before the change exactly take place.

• Proper communication must be there among the top level management and the
employees working in an organisation.

• Career opportunities must be given to the employees as a non-financial

benefits so that they get motivated.

SUGGESTIONS
OD interventionist must focus on the following factors:

1. Feedback: This involves the awareness of oneself, others, group processes and
organizational dynamics. Awareness leads to change if the feedback is not too
threatening.

2. Awareness of the changing socio-cultural environment or

Dysfunctional current norms: This involves the awareness of the norms
influencing one’s behaviour. If there is a discrepancy between the outcome of
their present norms and the outcomes they want, people are motivate to change.

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3. Increased interaction and communication: Increased communication leads
to changes in attitude and behaviour, which does not happen when there is no
communication due to “tunnel vision” or “autism”

4. Confrontation: Confrontation involves the surfacing and examining of

differences in beliefs, feelings, attitudes, values or norms to remove obstacles to
effective communication.

5. Education: Education activities upgrade knowledge and concepts, beliefs and

attitudes and skills.

6. Participation: This outcome involves increasing the number of people

involved in problem solving, goal setting and generating new ideas.

7. Increased accountability: This involves the clarification of people’s

responsibilities and the and monitoring performance related to those activities.

8. Increased energy and optimism: This involves activities that energize and
motivate people to aspire to new possibilities and to aspire to a future that is more
desirable.

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 Bibliography

WEBSITES:

• www . en.wikipedia.org/wiki/ Change _ management

• www . documents.bmc.com/products/documents/98/29/89829/89829.pdf

• www.scribd.com/doc/2876978 / tatamotors siebelcasestudy

• www.autofocusasia.com / management / tata _nano.htm

• www.managementhelp.org/org_chng/org_chng.htm

• www.12manage.com/i_co.htm l

• www.en.wikipedia.org/wiki / Organization_development

• www.alumni.caltech.edu/~rouda/T3_ OD .htm l

• www.iveybusinessjournal.com/view_article.asp?intArticle_ID=532

• www.trainingreference.co.uk

• www.work911.com/articles/leadchange.htm

• www.managementhelp.org/org_chng/org_chng.htm

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Student’s Profile

Name – Nikhil Gade

Program – Master in Management Studies (M.M.S.)
Qualification – Bachelor in Engineering (B.E.)
Phone +91 8097867520
Email – nikhilgade.2123@simsree.org

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