Organisational Structure

Pyramid Structure with decreasing number of managers at each level.

Organisational Chain of Command (Executive) .

Organizational Chain of Command (Unionised) .

Management by Objectives ‡ Specific goals and objectives are established at each level of organisation ± Goals and objectives of each section derived from organisational goals and objectives ± Policy Cascading (From MD s policy to Manager s Policy My superior s means is my Policy) ‡ Managers and their subordinates together determine the subordinates goals ± KRA formulation before the start of FY ± KRA decided on the basis of KPIs and KPMs ‡ Managers and their subordinates periodically review the subordinates progresstowards meeting goals ± Half-Yearly review by Managers with feedback to subordinate. ± Year end appraisal by team of Managers with 360° feedback to the subordinate. .

Empowerment ‡ SGA circles ± Circles consisting of 6 employees ± Circles facilitated by a manager ± Focus on Kaizens to improve processes ± Rewards on Kaizens. ± 100 % employee involvement ‡ System of instant rewards (Sabash) of Rs. 250/200. .

Environment (Specific) Government ‡ Applicability of various industrial regulations ‡Environmental regulations Suppliers ‡ Volatile raw material market .

Environment (General) Economic forces ‡ Rapidly growing GDP ‡Focus on infrastructure building Environmental forces ‡ Increasing environmental activism ‡New tougher regulations .

Daily Management) to reduce defects ± Closely coordinating with customers to assess their requirements and compliance . ‡ Customers ± Introduction of latest technology and processes (SixSigma.Resource Dependence ‡ Suppliers ± Mostly owned raw material supplies ± Only dependent on Foreign Coal supplies for 50% of its requirement ± Highly systematized procurement channels.

Managing Symbiotic Resource Interdependencies Informal Formal .

Managing Competitive Resource Interdependencies Informal Formal .

integrity as well as high moral and ethical standards. The company seeks to scale the heights of excellence in all that it does.The whole of that wealth is held in trust for the people and exclusively for their benefit. Integrity Every employee of a Tata Company shall deal on behalf of the company with professionalism. The cycle is thus complete. honesty. What came from the people has gone back to the people many times over. ‡ ‡ ‡ . Credibility A Tata company shall be committed in all its actions to benefit the economic development of the countries in which it operates and shall not engage in any activity that would adversely affect such objective Excellence A Tata Company shall be committed to supply goods and services of the highest quality standards. Employees policy and practices shall be administered in a manner that would ensure that in all matters equal opportunity is provided to those eligible and the decisions are merit based. Respect for Individual Employees of a Tata company shall be treated with dignity.Values ‡ ‡ Trusteeship The wealth generated by Jamsetji Tata and his son .

‡ Any deviation results in severe penalties (commonly termination of service which is otherwise very uncommon) . ± ± ± ± Leadership System and Processes Training and awareness Measurement ‡ All employees required to sign the acceptance of TCOC.Ethics ‡ Tata group company following Tata Code of Conduct ‡ The Management of Business Ethics is effectively instituted today in Tata Steel through its four pillars concept.

Formal Initial training is in the from of formal classroom courses and guided visits. Informal After initial induction the recruit is assigned to shop floor to learn on the job. Divesture A small divesture exists on the Investiture Recruits receive positive basis of cadre difference though it is not social support from the existing members. Disjunctive Due to nature of industry disjunctive processes are not promoted. recognised. Individual Each recruit is assigned a mentor. Random Based on the performance. Sequential The new recruits are gradually exposed to the system.Role Orientation Collective The new recruits are trained in groups with common training courses. Serial Existing senior members act as mentors. Training requirements of individuals are identified and a program schedule is developed. . training needs are identified.

feeling of belongingness Rite of integration Rite of enhancement Motivate commitment to norms.Organisational Rites Type of Rite Rite of passage Rite Induction and comprehensive one year training Community social gatherings. values and systems. Build common norms and values. officers club parties Invitation to all official gatherings and functions Annual bonuses Purpose of Rite Learn and internalize norms. values and performance .

Common Property Rights Manager s Rights ‡Good Salaries ‡Performance based annual bonuses ‡Stock options for senior management ‡Control over organisational resources at all levels ‡Freedom of decision making Workforce Rights ‡Long term employment ‡Freedom to form Unions ‡Gratuity and retirement benefits ‡Lucrative Employee separation schemes ‡Participation in decision making ‡Suggestion management .

Organisational Lifecycle Tata steel is presently in growth phase 1907 Organisational Birth 1994 Organisational Growth Organisational Decline Organisational Death .

The growth curve .

Birth Strategies for Competing in the Resource Environment TISCO .

. incorporated by Sir Dorabji Tata ± J N Tata visited US to gain insights into Steel Making ± Recruited Managers and Engineers from all over the world to erect the plant ± Found suitable site at Sakchi in iron and coal rich chotanagpur belt ± Introduced many firsts in Indian Industry like 8 hour working day.Greiner s Model of Organisational Growth ‡ Stage 1 Growth through creativity ± Started as TISCO in 1907. joint consultation etc.

and J.R.D. Tata for most of the later half of 20th century ± Leadership of the likes of Russi H. Irani ± Grew to 3 MT by 1995 ± B. J. Modi.Greiner s Model of Organisational Growth ‡ Stage 2 Growth through direction ± Guided by J. Muthuraman initiates expansion through Greenfield and Brownfield projects ± Ratan Tata leads the acquisition of Corus to leapfrog Tata Steel to 6th largest steel producer in the world .

Greiner s Model of Organisational Growth ‡ Stage 3 Growth through delegation ± Teams scavenging for raw material resources all over the world by the way of acquisitions and JVs ± Green field and Brownfield projects continuing to expand India operations .