Wednesday, 12 July 2017

Tata Motors from Vertical to Horizontal

12-10-17

Case study ---  Say No to Designations

Tata Motors @TataMotors is India’s largest automobile company by revenue. In a major decision it has decided to scrape designations and create a flatter organization. This will lead to flattening of hierarchy level to 5 from 14. Designations such as senior vice president, vice president, senior general manager, general manager, deputy general manager etc. will be scraped. All managers with a team reporting to them will simply have the job title ‘Head’ followed by function name or department name e.g. Head of planning or Head of marketing.

The company expects that the move will help to bring the same work culture in Tata Motors, which is followed at global companies. Employees will now focus on work instead of their designations. Now onward their will not be routine promotions that an employee gets purely by virtue of time spent in the company. Promotions will happen only when there is a vacancy.

In the opinion of management experts, flat organizations are more successful at the lower level of management in term of communication and implementation. However, flat organizations are not successful at top level. In India Designation is one of the top five motivating factors for employees. Indians place lots of emphasis on hierarchy and small change in designation. At some point of time money is not everything for Indians.    

Q 1. Which level of management has not been discussed above?

Q 2. What are other motivating factors other than mentioned above?  

Q 3. Which type of incentive has been taken away by the company? 


COMPOSED BY   PATHAK SIR   @pathaksirbst ( at twitter)
send your views at avnishpathak18@gmail.com or at  @pathaksirbst ( at twitter)

To be continued..... 

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