Tata motor’s has been India’s largest Automobile Company in the industry for decades. Tata wanted to grow and extend its market worldwide, which led to the organizational change in the Company. The Company had to take various steps and bring in a lot of changes. It had to go through changes also because it was making various acquisitions and collaboration with international companies.
This Case Study will help to understand what steps Tata had to take while the organizational change, how it helped to grow and what were the issues faced by the company during the Change.
Introduction: Tata Motor’s
Tata motor’s with consolidated revenue of Rs.92, 519 crores (USD 20 Billion) in 2009-10. Leading the segment of commercial vehicles and in the top three passenger vehicle with awarded products in compact, midsize and utility car segment. It is also world’s 4th largest truck manufacture and the world’s second largest bus manufacturer. It was established in 1945. More that 6 million Tata vehicles are providing service to the Indian population, since the first rolled out in 1954. The company’s manufacturing is spread across India. Tata motor’s is the first company from Engineer sector to be listed in New York Stock Exchange (September 2004). Tata Motor’s has started operating in UK, South Korea, Thailand and Spain. It has also successfully overtaken Jaguar and Land Rover two of the iconic British brands. It also acquired Daewoo Commercial Vehicles Company, South Korea’s 2nd largest truck manufacturer. The People’s car was launched by Tata in 2008 “Tata Nano”, the Nano gives the comfort and safety of a car within the reach of thousand of families. The standard version has been priced at Rs. 100,000 (USD 1700) making it affordable to large...
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... company and the employees awarded accordingly to keep the motivational levels up.
7. Building on the change: It is important to keep the change alive, and learn as the organization moves. This was well done by Tata Motors who would continuously improve the level of goals and potential, implement Kaizen in the operations, bringing up new change agents and new ideas.
8. Change as the core of the organization: It is important the change is well imbibed in the organization for it to remain and be used to its best potential. This requires continuous efforts from the organizations side to improve and motivate the corporate culture. The vision and change management cannot be stopped at one point but to be continuously revised and undertaken even more effectively. The change would have to become an integral part for the organization to continuously improve and expand.
Leading Change was named the top management book of the year by Management General. There are three major sections in this book. The first section is ¡§the change of problem and its solution¡¨ ; which discusses why firms fail. The second one is ¡§the eight-stage process¡¨ that deals with methods of performing changes. Lastly, ¡§implications for the twenty-first century¡¨ is discussed as the conclusion. The eight stages of process are as followed: (1) Establishing a sense of urgency. (2) Creating the guiding coalition. (3) Developing a vision and a strategy. (4) Communicating the change of vision. (5) Empowering employees for broad-based action. (6) Generating short-term wins. (7) Consolidating gains and producing more changes. (8) Anchoring new approaches in the culture.
General Motors has made great progress towards diversity however, it took the lawsuit in order for the company to do so. Adding females and minority to the upper management. Had the HR department of General Motors followed the EEOC regulations, this lawsuit could have been avoided.
The speaker provides the impressive argument stating that only 54 percent of the success depends on the change initiative. It occurs because of the three common pitfalls of the change management. Aguirre (2014) considers that the change fatigue, namely, the excess of initiatives is the first aspect that limits the change. The second disadvantage appears in the case of the chief executive, who dictates the rules, but does not clarify or show how to implement them. Ultimately, it is erroneous to think that the communication is the same as the engagement. The above listed mistakes lead to the non-transformation, waste of time, people, and capital, and it diminished moral. Above all, the culture is essential to move the organization and keep it effective (Hitt et al., 2015). It might include the informal leaders, integration, environment, and coherence throughout the
“The Heart of Change,” by John Kotter and Dan S. Cohen can act as a diagram for any organization facing challenges that come with implementing change. In the 21st Century in order to stay competitive with your competitors you have to implement changes, new systems and approaches to keep the organization relevant. With changes there comes errors that a company may encounter, sometimes these errors if not fixed can make the change within the organization impossible. Employees are reluctant and can’t see the views or their leader, and this makes change unsuccessful. That’s where Kotter’s eight step change model can give an organization a guideline and understanding of some of the challenges that they may encounter with change. Comparing Kotter’s
It is important that if you are ever running a business, you change before the change comes to you. Change can have either a positive or negative effect on a business and it is extremely important to strive to make it a positive
...th a growing proportion of elderly people. Global market dynamics and innovations in big data and social networking are transforming the business strategies of companies everywhere—and forcing them to rethink fundamental rules of engagement. For better or worse, the future entrepreneurs will have to surface as one the most disruptive forces. As big data pushes for alternative ways of working – proactive solutions that drive information must quickly figure out which new policies and tools can be utilized most effectively. This grants enormous opportunities for key technological breakthroughs that will be needed for the next generation of transport.
First, each and every team member focused on the commitment to his or her customer and secondly, all employees were encouraged to commit to their loyalty and pride in the organization. Rowe used the sense of pride felt in the organization as the very reason for the culture shift. 3. The third aspect of the change process was to emphasize what was right with the organization before the change had taken hold. This helped to increase morale and assured team members that they have been successful in the past and proved their capabilities and competencies.
In today’s ever changing world people must adapt to change. If an organization wants to be successful or remain successful they must embrace change. This book helps us identify why people succeed and or fail at large scale change. A lot of companies have a problem with integrating change, The Heart of Change, outlines ways a company can integrate change. The text book Ivanceich’s Organizational Behavior and Kotter and Cohen’s The Heart of Change outlines how change can be a good thing within an organization. The Heart of Change introduces its readers to eight steps the authors feel are important in introducing a large scale organizational change. Today’s organizations have to deal with leadership change, change in the economy,
According to Kotter (1996), the change will need support from key people in the organization to convince the stakeholders the change is necessary. It is important to understand here, the team is made from stakeholders of all levels of the organization to strengthen the expertise, following and momentum of the change (Kotter, 1996). Step three revolves around forming the vision for change. It is important for the stakeholders to visualize the intended outcome of the change, otherwise it makes it difficult to focus on the change (Kotter,
Entering the 1950s, no corporation even came close to General Motors in its size, or it's profits. GM was twice as big as the second biggest company in the world, Standard Oil of New Jersey (father of today's ExxonMobil), and had a vast diversity of businesses ranging from home appliances to providing insurance and building Buicks, Cadillacs, Chevys, GMCs, Oldsmobiles, Pontiacs and trains. It was so big that it made more than half the cars sold in the United States and the U.S. Department of Justice's antitrust division was threatening to break it up(to prevent Monopolies, Like how Standard oil was broken up). In the 21st century, it's almost hard to imagine how powerful GM was in the 50s and 60s.Sports cars from Europe were getting popular, because of servicemen coming back from WWII, and wanted sports cars, but American Automakers didn't make sports cars, so they would either buy foreign, or go without. A man named McLean would still try to make a low priced sports car. But it didn't work. The idea of a car coming from GM that could compete with Jaguar, MG or Triumph was pretty much considered stupid and insane. C1:Generation: Bad but valuable. Just 300 Corvettes were made in 1953. Each of these first-year Corvettes was a white roadster with red interior. The Corvette was made of fiberglass for light weight, but the first cars were made with a really weak, (and kind of pathetic for a “sports car”) 150 horsepower 6-cylinder engine and an automatic transmission. The result was more of a look at me, I’m rich car than a race car. The first generation of the Corvette was introduced late in 1953. It was originally designed as a show car for GM's traveling car show, Motorama, the Corvette was a Show Car for the 1953 Motorama display at...
Change as defined by Thompson (2010) is “a process through which people and organizations move as they gradually come to understand and become skilled and competent in the use of new ways.” Change is not a process that happens in just one day. It is something that takes time to build and strengthen amongst an organization. The people involved in the process of change need to have the same goals and have the same clear ideas; this so they can be in the same mindset and be able to work together towards success. Communication is crucial during the process of change to facilitate the work for the people involved in the organization.
In order to lead and be successful you have to be willing to embrace change. Myatt (2012) explained that “leadership demands fluidity, which requires the willingness to recognize the need for change, and finally, the ability to lead change”. Change needs to be recognized in every organization. Organizations must undergo change to subsist. Each area of an organization needs to be assessed to lead change properly. Lastly, the change process must be managed. It is demanding that change agents are arranged for success and not failure by providing them with the proper tools, talent, resources, responsibility and authority necessary for the job (Myatt, 2012).
Step 1: Stay the Changes in Corporate Culture. To roll out any improvement, it ought to wind up a portion of the organization. Organization culture regularly figures out what completes, so the qualities behind vision must appear in everyday work. Endeavor constant tries to ensure that the change is found in every piece of the association. This will give that change a strong spot in the organization's way of life.
The change process within any organization can prove to be difficult and very stressful, not only for the employees but also for the management team. Hayes (2014), highlights seven core activities that must take place in order for change to be effective: recognizing the need for change, diagnosing the change and formulating a future state, planning the desired change, implementing the strategies, sustaining the implemented change, managing all those involved and learning from the change. Individually, these steps are comprised of key actions and decisions that must be properly addressed in order to move on to the next step. This paper is going to examine how change managers manage the implementation of change and strategies used
Change is a constant and ingoing process in an organization. Change can be defined as one of the many characteristics of organization development. The change efforts are based on the analysis of particular problems and their purpose is to attain specific goals. Change is not an easy thing to implement and anticipate. It is a difficult and a challenging process; therefore the management has to take certain steps in order to prepare them for antedating the change in business environment. The senior management can prepare themselves for a change through studying and researching about change, by having a sound awareness about the change process and by understanding the necessity of change and by being mentally tough about the change process. All in all, a constant change is ...