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 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)
To be continued.....
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