Effects of Organizational Behaviour in Tata Motors

Organizational behavior investigates the impact of people, groups and organizational composition on the behavior and culture in a organization. OB is designed to enhance the effectiveness with which an organization works (Ashraf, T). People in an organization are complex and multidimensional. They possess the desire to satisfy their needs and they need to connect themselves with other folks for learning and growing (Lawrence, 1998).

Organizational structure is a strong determinant in shaping an organization's behavior and decision regarding framework has major affect by using an organization's strategy (Galbraith, 1973). To work, any organization structure must produce a balance between differentiation and integration and also to answer quickly to the economic conditions, it should integrate across differentiated departments (Lawrence and Lorsch, 1967). Relating to Schein, 1990 organizational culture is the assumptions and values of business and the behavior that the market leaders acquire for the purpose of decision making and problem fixing. Schneider, 1994 argues that organizational culture is strengthened with the manager acquiring the people who have similar culture to those who find themselves already an integral part of it.

It is essential that the organization chooses their market leaders and management style meticulously as it offers direct impact on the workforce attitude and motivation levels. Matching to Yukel, 1998 a head must be able to require people in the organization, inspire them towards obtaining organizational goals and targets.

The selection of leadership is affected by the organizational culture. For instance, in an organization where the duties are not very well defined and folks aren't enough dedicated, the control style will by natural means be one that reflects a handling power. Similarly management style is also afflicted by the organizational composition. It could be top-down in case of functional composition or collaborative in case there is matrix composition (Beer, M).

Organizational Behaviour

Beer, M (Harvard School)

In the existing age of globalization, OB must deal with various issues and challenges which could arise. For example, transfer of creation manager of any manufacturing company which is establishing a fresh subsidiary in a foreign country. The director is currently in a fresh organizational and social setting where workforce may exhibit completely different needs, attitudes and behaviours from the home country workforce. This matter is especially highly relevant to MNCs such as TATA Motors.


TATA Motors Limited was proven in 1945. It really is India's largest auto company. Its profile includes two main business devices- Passenger Car Business Device (PCBU) and Commercial Vehicles Business Device (CVBU). TATA Motors Ltd is gradually improving its global occurrence by acquiring businesses abroad. It is the second largest bus supplier and fourth most significant truck manufacturer on the planet. Tata Motors entered in the Indian passenger vehicle business as overdue as 1991 and within two decades, it's the India's third most significant traveler vehicle player. The 2009-2010 consolidated earnings stood at US$ 20 billion (TATA Motors Annual Record 2009-2010). (Appendix 1).

Tata Motors in 1998 launched India's first indigenously designed car known as "Tata Indica. In Sept 2004, Tata Motors Ltd became the first Indian Anatomist Sector Company to be detailed on the New York Stock Exchange (NYSE). Since 2005, it is within a proper alliance with Fiat. In 2008, Tata Motors discovered the purpose behind world's cheapest car "Nano" and launched it in '09 2009. Prior in 2008 it purchased two prestigious British car brands - "Jaguar" and "Land Rover (TATA Group Brochure, March 2010).

Tata Motors' processing plant life in India are set up at the following locations

East- Jamshedpur

West- Pune and Sanand

North- Lucknow and Pantnagar

South- Dharwad

Tata Motors and Fiat have their common manufacturing plant at Ranjangaon, Pune. Besides, Tata Motors' also offers international manufacturing vegetation in UK, South Korea, Thailand and Spain (TATA Group Brochure, March 2010).

TATA Motors practices the reporting method and movement as shown in Appendix 2. The business has constituted a couple of specific committees to manage the businesses at a diverse level. The Table of Directors empowers these committees which helps them to create targets for the management.

Subsidiaries Companies

Tata Motor (www. tatamotors. com)

Jaguar Land Rover (JLR) (www. jaguar. com) (www. landrover. com)

Telco Structure Equipment Company Ltd (Telcon) (www. telcon. co. in)

Tata Motors (Thailand) (www. tatamotors. co. th)

TAL Manufacturing Alternatives Ltd (www. tal. co. in)

Tata Technologies Ltd (TTL) (www. tatatechnologies. com)

Tata Cummins Ltd (TCL) (www. tatacummins. com)

TML Circulation Co

Tata Marcopolo Motors

Tata Daewoo Commercial Vehicle Co Ltd (www. daewootruck. co. kr)

Tata Motors Western Complex Centre (TMEC)

Tata Autocomp Systems Ltd (www. tacogroup. com)

HV Transmissions Ltd (HVTL and HV Axles (HVAL) (www. tatamotors. com)

Tata Motors Money Ltd (www. tatamotorfinance. com)

Hispano Carrocera S. A. (www. hispano-net. com)

Concorde Motors (India) Ltd (www. concordemotors. com)

Source: (TATA Group Brochure, March 2010).

TATA Motors Ltd companies a number of vehicles under the categories of commercial, electricity and passenger vehicles. The entire product account is fastened in Appendix 3.

Research Technique (500)

Data Collection

Issues and Challenges



Organization strategy (1500)

Strategic intent

According to Sutherland & Canwell (2004), "strategic intention" is the objective of a business to synchronize and propel the management and labor force towards achieving the required goals and targets. If we tightly go through the way Tata Motors has been widening in international market, it is clear that the objective is acquisition and mergers of similar businesses internationally. Latest examples will be the acquisition of two British car brands Jaguar and Land Rover and proper collaboration with Cummins to form Tata Communications Ltd (TCL). Regarding to Stacy (1993), proper purpose is to intentionally show an intension with the people of management and workforce to attain a desired position by adopting a specific strategy. Furthermore, Tata's strategic intention is to acquire new resources of resources and capacities to achieve its goals and aims (Robson, 1997 and Thompson, 2001).

Resource and tactical capabilities

Recently in the framework of acquisition of Daimler Chrysler by Tata Motors, Mr Ratan Tata thinks that they can enhance the business and improve the profits faster than Basic Motors. Relating to Richter (2007), there is certainly probability of only two from the three to make it through in the playground. If we go through the core ideals of Tata Motors, we find that they are committed to deliver quality in life of customers plus they have proven through the successful introduction of Tata Nano that their core strategic capacity rests in level of operations resulting in cost efficiency. Also according to Brockbank (2002), Tata's command development will mirror its attention towards enriching value addition in its human resource strategies.

Tata Motors Business Model

Osterwalder et al. (2005) have described a business design as a conceptual device or framework composed of a broad band of entities and romantic relationships existing between them by which an organization expresses its rationale of undertaking business activities in certain ways. It describes the worthiness system of a business covering several segments of customers and of the business architecture and its own network system consisting of lovers and customers to generate profitable revenues over time.

Tata's business design is recognized as Tata Business Quality Model (TBEM) establishes the quality motion within the groupings. It functions under the aegis of Tata Quality Management Services (TQMS), which is an internal organisation created by TATA to help different companies under the TATA umbrella to attain their business targets through quality management. TBEM is designed to deliver strategic target to enable the corporation to acquire and practice the most complex and profitable global business processes. Thus TBEM is also an instrument for the organization to continue changing in the rough business environment (TQMS).

Tata Business Superiority Model

Source: TQMS: TBEM

Elements of TBEM


Tata Motors provides great deal of attention towards ensuring that the senior market leaders of organization continue to be focused on achieving the organizational vision and exceed the expected degrees of performance. It is convinced in measuring organizational performance, creating an atmosphere conducive for moral behaviour and expanding future leaders for attaining excellent performance.

Strategic Planning

It stresses on planning the activities, implementing those plans and making sure the objectives are satisfied and accomplishments are assessed and suffered for bettering the functioning of business. While it is important to solve smaller key strategic issues confronted by Tata it is control the competitive environment.

Customer & Market Focus

It places a great importance on growing and maintaining romantic relationships at corporate and business levels through effective listening, participative learning, and performance superiority. Tata Motors comprehends its customers well. Nano is an outstanding example where the main motive was gratifying the demand of middle class residents of India.

Measurement, Research and Knowledge Management

It is focused on measuring, analysing, and managing the knowledge within the business in respect to bettering the performance levels.

Workforce Focus

It addresses fundamental human learning resource management tactics focussed toward creating and keeping an atmosphere of high-performance and directing the employees towards success. It addresses issues such as staff proposal and development in included way (i. e. , aligned with your organisation's proper targets and action programs). In addition, it includes and increases human source planning (HRP) as a component of overall strategic planning.

Process Management

Tata Motors through its process management recognizes its central and distinctive competencies and handling them in a manner which helps it to achieve effective design for organisational learning and constant improvement of business operations.

Business Results

It contains the organization's objective analysis of itself and the customers' analysis of the offerings of the organization. It also includes the results such as financial and market performance, HR performance and refining the authority system.

Source: Tata Quality Management System (TQMS)

Tata's current strategies

Tata's current concentrate is on leveraging its functions in the automobile sector and increasing its market and syndication network with a focus on understanding the preferences of local consumers and developing in-house engineering capacities.

Since the auto industry is significantly damaged by cyclicality. To reduce its impact, Tata Motors is continually expanding its procedures in different varied segments by manufacturing wide selection of products across distant geographies.

Tata Motors is widening internationally on the concept of two-fold strategy. First of all it is expanding across geographies through strategic acquisitions. Latest examples are acquisition of Jaguar Land Rover (JLR) and Daewoo Motors Ltd. Subsequently it is broadening its current product range into chosen countries, such as enlargement of its Indica make of vehicles in UK.

Tata Motor's level of operations is incredibly huge and numerous. This provides it with an possibility to spend less and sustain its cost centered competitive advantage. In case of Jaguar Land Rover (JLR), Tata has used special breakeven strategy where it includes concentrated on the factors such as materials cost and processing, warranties, advertising and administrative expenses, product development expenditure and human tool management. The strategies are complete in Appendix 5.

The concentrate on quality management and client satisfaction remains on top of the priority list of Tata Motors. We've established an operation for guaranteeing quality control of outsourced components. They may have an application for seller assistance through which the grade of raw materials and components is taken care of. The choice is given to the suppliers and suppliers with TS 16949 qualifications. For Jaguar Land Rover (JLR) business, vendors are required to be authorized with TS 16949 and ISO14001 criteria.

According to the JD Electricity Consumer Satisfaction Index 2009, Tata Motors demonstrated the best performance by upgrading from 11th get ranking in 2008 to 5th get ranking in '09 2009. The brand new Jaguar XF1 launched in 2008 has won several awards like the 'Best Exec Car' award by JD vitality UK survey, 'Best Exec Car' honor for the 3rd consecutive season by the Diesel Car and the What Car? Periodicals, Editor's Choice Prize as Best Luxury Vehicle for 2010 2010 by World of Wheels Mag in Canada. A full list of prizes received by Tata Motors has been attached in the Appendix 6.

Source: Tata Motors Total annual Report 2009-2010

Organizational Framework (600)

"Organizational structure could very well be minimal understood and most under-appreciated topic in business. " Adam Schermerhorn, Jr. , Professor, Ohio University

For a business to efficiently allocate and direct its resources (physical and human) towards obtaining the organizational targets, it is essential that this designs the structure which fits with its organizational strategy. Creating the right organizational design entails division of tasks and tasks into specific jobs, assigning jobs and employees to various departments and delegating the expert and responsibility (Dewar & Simet, 1981).

Important elements of an organizational framework are job making, job redesigning and job specialty area. It is critical factor that decides the success of both organization and its employees (Fontaine, 2007). The fundamental reason behind building an appropriate organizational structure is effective and efficient usage of resources. It may encompass organization of various jobs into different departments, creating the reporting process and movement of information chain, division of sections under practical and divisional mind. As argued by Mische (2001), in the context of your business environment that is incredibly dynamic and is also impacted significantly by technical changes, the necessity to adapt becomes unavoidable; organizations such as TATA Motors have to be versatile in their business functions and the techniques followed.

Nohria et al (2003) in the July 2003 Harvard Business Review found the following organization framework to be most profitable and effective

Which does away with bureaucratic elements

Which helps it be easier to work available environment

Which enhances the amount of collaboration between groups and departments

Which allocates the right kind of resources in the right places

The Organizational Framework of Tata Motors


The organizational composition of Tata Motors uses the matrix form which incorporates the components of practical and divisional organizational constructions. It is a worldwide automotive massive operating in a variety of automobile sectors across faraway geographies; hence there is a need to assimilate its divisions along the many functional items of its business. If we look at the organizational composition of Tata Motors, we will find that the useful units are split into the types of Finance, Strategy, Anatomist, Communications, RECRUITING and Legal. These efficient departments create the strategic platform which Tata Motor's different business sectors are based; such as India Operations, Commercial Vehicle Business Device and Passenger Car Business Device (Appendix 6). Tata Motors includes versatile, adaptive and multi-tasking those who can work in various situations in different roles.

According to Chen & Huang (2007), the organizational design impacts and is influenced by the sort of connections, information exchange and knowledge management. Tata Motors stimulates relationships at both formal and informal levels through planning flat organizational structures at different divisional units.

Considering the course of control a set organizational framework benefits Tata Motors because it has some very experienced team of leaders who can provide a strategic direction to the management working under their guidance (See Appendix 7 for key players in Tata Motors Ltd). The business is focused towards attaining the goals and visions set by Mr. Ratan Tata, thus there's a visible need for autonomy which is well supported by a flatter structure. Smaller levels in the business structure provide a much better platform for invention and customization of products.

Linking Organizational Culture with Organizational Culture and Strategy

An indistinguishable feature of organizational composition is the movement of information; the employees follow a formalized style of reporting. Tata Motors practices a code of carry out that helps in choosing and assigning tasks to market group working. One of the biggest benefit for such a structure is the accessibility of top management to the middle and lower management level employees. That is extremely critical in creating a culture that is positive and productive. Tata Motors Ltd links back to you all its practical departments through Venture Source Planning (ERP). It encourages easy sharing of important info between its different departments. The various divisions and departments are interconnected through intranet; thus promoting instant information sharing among the list of employees and management. This is especially helpful in keeping the organization's human resources linked at every level.

The current focus of Tata Motors is on revolutionizing the car business. This means the strategic focus in on innovating and producing the local and international market. The two recent examples aiding the rationale will be the kick off of Tata's world's cheapest car- NANO and acquisition of Jaguar and Land Rover brands (JLR). During the phase of Nano development and unveiling the whole group had taken it as their personal accomplishment. All these factors are strengthening the organization's culture along with its organizational design by applying the right business strategy.

Organizational Culture (500)

The employees at different levels of the organization (lower, middle and top) know about organization's every setting and action embedded in the elements of culture; thus just how a business manages is inadvertently judged by its recruiting which affects their behavior towards their own and organization's aims Nadi (2008). Whether an organization will successfully put into practice its strategy and achieve the collection goals is highly reliant on the culture within it.

It is extremely critical for a business to develop the right kind of cultural settings within which its workforce operates, learns, develops and shows. Culture can be grasped as the integration of organization's beliefs, norms tactics and organizational behaviours. It also links back to you the organization's strategies, systems and products (Kefela, 2010). The organizations which focus extensively on enhancing quality through Total Quality Management, such as Tata Motors Ltd realize that the premise of controlling quality (TATA Motors Ltd maintained its quality through TQMS) can be determining drive behind culture change and improvement (Chaudron, 1992).

The culture in one organization can be very not the same as another depending on corporate strategy and what is to be performed. Cultural development is also an important facilitator of control development (Bal and Quinn, 2001). Tata Motors works towards developing leaders keeping because the context and culture where they are simply developed.

Organizational culture is the backgrounds in which leaders are developed the market leaders are developed and is also therefore important towards developing a competitive and lasting leadership across corporation. Tests by Collins and Poras (1994) discovered the strong linkage existing between organizational culture and the performance of its employees which is indirectly linked with customer satisfaction.

Elements of Organizational Culture at Tata Motors Ltd

The organizational culture of Tata Motors is understandable as the "task culture". Tata Motors believes in providing complete customer satisfaction and follows demanding safety related steps and guidelines. To supply a rich customer support experience it undertakes effective and useful networking of sales and service networking. It carries out in concord using its customer requirements and expected degrees of performance and service. It also adapts itself to the various competitor strategies and upcoming regulations. Thus the culture within the business is focused on dealing energetic and challenging makes of business environment and is also very well complemented by its matrix and level organization composition.

The Process Environment

Source: Own Creation

Tata Motors highly believes in the actual fact that "all the difference is made by people". For putting into action the concept the truth is it makes a whole lot of investment in growing its people potential by the methods of contribution, empowerment, training and development, learning opportunities. Thus the organizational culture of Tata Motors can be best realized as one which provides space for continuous improvement because of its human resources. The managers need not fret about the daily habit chores as much as they need to give attention to really improving the quality of work and scientific and social developments. The culture at Tata Motors can be best described as delegation-oriented and empowerment-focused. It is a culture which identifies people, communities and teams for their personal and organizational achievements.

Tata Motors Ltd has always given significant importance to developing an organizational culture wherein creativity is inspired. The employees are consistently encouraged to adopt innovative techniques. With this effect, TATA Motors Ltd has various technical and quality improvement related programs.

Although its main concentrate rests on the Indian automotive market, it has been forging in the international marketplaces recently. It is growing its business account in emerging markets like Hong Kong, Mexico, Russia, South Africa, UK, etc. This poses problems for Tata Motors to match its culture in these countries using its corporate culture. It is critical to choose the right business design with cultural beliefs and values that are steady using its overall commercial strategy. Additionally it is expanding its operations in countries in Britain, Italy and Spain.

Tata Motors has always been striving to attain technological superiority it its business operations and operations. Therefore the Research and Development section is constantly working towards achieving excellence. It really is trading on big level in research and inexperienced technology reflecting determination towards ecological impacts of automotive industry.

Tata Motors owns strong opinion in assisting the reason for nature and environment control; its attempts for innovation in the field of executive and technology are aimed at developing choice fuels. It has also made CO2 emission norms- EURO compulsory in a lot of its vehicles.

The organizational culture of Tata Motors helps it be necessary to develop its control potential and impact while retaining its original worth which aim to improve the people's quality of life. It is equally committed to the cause of societal development which is noticeable in its Commercial Social Responsibility by which it can help the under privileged sections of rural and metropolitan society.

Management and Leadership (600)

The group chairman Ratan Tata is responsible for transforming Tata Motors Ltd. into a Group strategy think businesses. His perspective of making a really international company brought in a foreign CEO. As per one of the newspaper there is no such ideal innovator alternatively one evolves as a perfect innovator with experience. Initially he assumed to be one of the best in the world. He is currently part of 203 mother board members in 20 different organizations across 23 different sectors.

Conclusion & Recommendations

Conclusion (300)

Recommendations (200)

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