'Recognize, Reward, Retain: Tata Motor case study' by G. V. Srirama Kumar presented at the Ideas.Arabia 7th International Conference 2012

1. Recognise,
Reward & Retain
By
G V Srirama Kumar
Tata Motors, Jamshedpur,
INDIA

2. Stages of Idea Management
Fostering Innovation & Creativity
Generation of Ideas
Implementation, Evaluation & Audit
Reward & Recognition
Achieving Business excellence through Innovative culture &
retention of employees

3. Business Excellence

4. Leadership & constancy of purpose
Business Excellence is visionary &
inspirational leadership, coupled with clear
direction & constancy of purpose
Customer Focus
Business Excellence is creating
sustainable customer value and exceeding
customer expectations

5. Result Orientation
Business Excellence is achieving results
that delight all the organization’s
stakeholders
Continuous Improvements & Innovations
Business Excellence is challenging the
status-quo and effecting change by
using learning to create innovation and
improvement opportunities

6. Employees participation
Business Excellence is
maximising the
contribution of the
employees through their
creativity, development
and involvements
Corporate Social Responsibility
Business Excellence is exceeding the
minimum regulatory framework in which
the organization operates and to strive to
understand and respond to the expectation
of their stakeholders in society

7. Creativity

8. “Creativity” is
•marked by ability or power to create
•to invent with a new form,
•to produce through imaginative skill,
•to make or bring into existence something new.
Each individual in an organization is creative

9. Through Creativity one can innovate at any level
Levels of Innovation
Example
Invention
(Technical Chips
Level 1 realisation of
new scientific
knowledge)
Computer
Innovation
(Industrial application
Level 2
of invention for
achieving specific
goals)
Fly by wire
Diffusion/Exploitation/ Adoption
Level 3 (Spreading innovation from one area to another
bringing essential improvements in the existing
system)
For most firm innovation helps in achieving Business Excellence

10. The innovation a firm achieves today defines its tomorrow
The ability to innovate i.e. to develop new products,technologies,efficient process
& system at a faster pace and cheaper than their competitors separates the
world’s best companies from all the rest.
In a competitive environment it is innovation through creativity that distinguishes
a winner and a loser
Creativity/Innovation is the key for achieving business excellence

11. C. Creativity in
Organizations:
Learning
Organizations

12. 1. Team Effort :
Innovations are not typically the result of a single person’s effort. These are the
collective effort of many people doing a small part of the larger whole
Conventional Approach New Approach
Effect Short-term but dramatic Long-term, lasting, undramatic
Tempo Large steps as per plan Small steps- Continual
Protagonists Few selected persons All company employees,
interfunctional organisation
Procedure Individual ideas and efforts Collective spirit, team work,
systematic
Motto Discontinuance and new start Retain and improve
Recipe for success Technological achievement, new Conventional know-how and
inventions, new theories prevailing technology
Management principle Specialist oriented Generalist organisation
Exchange of information Secret and internal Open and reciprocal
Feedback Limited Comprehensive, intensive
Innovation in a Creative Organisation is thus characterised by
team effort and not by an individual’s effort

13. 2.Operational Excellence:
•Innovative organisation recognises the importance of operational excellence apart
from traditional product innovation for achieving business excellence
•In an creative organisation
•The design of nearly all work activities across functional roles, products, processes
(assembly,material logistics, training, marketing, system redesign, administration etc.)
•Connections among people through hierarchical levels (from workers to managers and
above) and
•Pathways of connected activities over which products, services and information take
form
are
•Built around transparency & empowerment
•Specified – in- their design and are well documented
•Tested-with-their every-use and
•Continuously improved in time,place and person for operational excellence

14. 3. Learning,Sharing & Growth:
• In an innovative organisation
• Organisation learns faster than anyone else through its people
• They share the result of that learning across the enterprise
• They constantly foster the development and sharing of new knowledge
• They overcome resistance to perceived boundaries by transforming the
constraints/barriers into resources
• Organisation creates a climate that encourages and catalyses creativity
• Creativeness flourishes in participative leadership
• Creative leader/manager provide:
• Appropriate challenge
• Support
• Idea Source
• They encourage idea people by rewarding failure not just success;They
reserve punishment only for inaction.
With the pace of change ever quickening, the need to
develop mechanisms for continuous learning and
innovation is greater than ever

15. 4.Main dimension of a creative climate in an organisation:
1. Challenge
2. Freedom
3. Idea Support
4. Trust
5. Dynamism
6. Playfulness
7. Debates
8. Conflicts
9. Risk taking
10. Idea time
Creative organisation scores more highly on these ten dimensions than the stagnated one
Great way of killing your company’s future…kill creativity

16. Business Excellence is the result
of successfully managing
change in the organisation
through Change Initiatives
and Mangement Tools

17. Present maze of change initiatives & management tools
COPQ
Value Engineering
NPI CSI
E-commerce
QS 9000
OHS
DOE
TQM
DFM / DFA
TS 16949
SDT Matrix-Orgn CRM
5-S
Bench Marking
EMS Knowledge management
At first pass all these seems to be separate
initiative requiring resources & efforts for
achieving business excellence

18. Facts about change initiatives & management tools
•The terms are merely convenient symbols to describe concepts.
•Behind these jargons are the changing processes and the
management tools that are transforming the companies through its
employees
•They reflect a revolution in business :
•How excellence in business is achieved and improved
continuously by innovative ways through its employees.
•This also shows the eagerness of management to use all these
acronyms merely reflecting an impatience for change.

19. A deeper analysis reveals that all initiatives have three
things in common:-
Top Management Commitment
TPM
TQM Waste
Elimination by
EVA improving
BPR resource
efficiency
Benchmarking
…….. Employee Involvement
Employee involvement should be with
application of their creativity

20. “Our greatest asset is our people and
their pride in belonging to the group.
The quest for Excellence demands that
we marshal this resource optimally,
through teamwork, sharing knowledge
and resources and benchmarking
ourselves against the best in the world ”
- Ratan Tata

26. Engineering Materials / Steel Energy Chemical
Commercial Vehicles, Metals, Composites Power Chemicals, Pigments
Passenger Cars
Communications & IT Consumer Products Services
Telecommunications Hotels
Information Technology Consumer goods Financial Services
Control systems International operations

27. India’s first and fully integrated largest automobile
manufacturer

28. Tata Motors today holds a strong domestic position and has established its
presence in the Global auto market
• India’s Largest Automobile Company by revenue
• 2nd Largest Bus Manufacturer in Medium & Large Buses in The World
• 4th Largest Truck Manufacturer in The World (>6t)
TATA MOTORS • Largest Portfolio Of Products (Light, Medium And Heavy Trucks, Buses & Coaches,
Passenger Cars & Uvs)
• Acquired Commercial Vehicle Business Of Daewoo In 2004 (TDCV)
• Acquired Jaguar Land Rover In 2008
STRONG DOMESTIC • Market Leader In Commercial Vehicles (Market Share ~ 60-80% in major segments)
POSITION
• 3rd Largest Player In Passenger Cars
• Has Over 1400 Customer Touch Points
ROBUST FINANCIAL • Revenue : USD 28 billion
PERFORMNACE
• Profit : USD 2.1 billion

29. Organization
TATA MOTORS - MANUFACTURING LOCATIONS
World wide presence
Sweden
UK
Taiwan South
Rudrapur
Korea
Brazil
Lucknow
Jamshedpur
Sanand
Pune
Dharwad
South
Africa
A TS-16949, ISO-14001,OHSAS-18001 Certified
Company

30. Manufacturing Base
India
Jamshedpur – Commercial Vehicles
Pune – Commercial and Passenger Vehicles
Lucknow – Commercial Vehicles
Pantnagar – Commercial Vehicles
Sanand – Tata Nano
Dharwad – Buses
Overseas
South Korea –Heavy and Medium Trucks
Spain – High Capacity Buses
Morocco – High Capacity Buses
Thailand – Pickup trucks
UK – Jaguar Land Rover

32. PEOPLES’S CAR WORLD’S CAR
AUTOMOTIVE- A WAY OF LIFE @ TATA MOTORS
INDIA’S 1ST MINI TRUCK ‘GLOBAL’ TRUCK

33. LOCATED IN THE HEART OF MANUFACTURING SETUP IS
JAMSHEDPUR THE 7TH SPREAD OVER AN AREA OF
CLEANEST CITY OF INDIA 822 ACRES – 2ND MAJOR
HAVING AVG LITERACY RATE INDUSTRY OF THE CITY
OF 86%
JAMSHEDPUR
ISO 14001: 2004
OVER 13,000 EMPLOYEES
CERTIFIED FOR ITS
RESIDING IN A RADIUS OF
ENVIRONMENT
20 KMS
MANAGEMENT SYSTEM

34. Stages of Idea Management
Fostering Innovation & Creativity
Generation of Ideas
Implementation, Evaluation & Audit
Reward & Recognition
Achieving Business excellence through Innovative culture &
retention of employees

35. Origin of Suggestion Scheme in TML

36. Suggestion Process Flow

38. Stages of Idea Management
Fostering Innovation & Creativity
Generation of Ideas
Implementation, Evaluation & Audit
Reward & Recognition
Achieving Business excellence through Innovative culture &
retention of employees

39. Evaluation & Awards
Type of Award Description
Final Award Given after implementation of suggestion
Idea Award Given if idea is acceptable but implementation would require time
Appreciation Letter Given for pointing out corrective actions related to common issues
Type of Benefit Award Amount
Monetary Saving (all categories) Normal Award = 1.401√ (Annual Saving x 6.84)
For One-time Saving 0.1 x Normal Award
For Recurring Saving 0.4 x normal Award
Appreciation Letter 10 or more to converted into monetary value once a year
Suggestor’s Grade Suggestor’s Grade Factor
Operative grades 1
Supervisory grades 0.8
Managerial grade 0.6
Maximum award for any suggestion: Rs. 25,000/-

40. Stages of Idea Management
Fostering Innovation & Creativity
Generation of Ideas
Implementation, Evaluation & Audit
Reward & Recognition
Achieving Business excellence through Innovative culture &
retention of employees

41. Recognition
Measures for Recognition of Suggestors
1. Presentation by Suggestors & appreciation during:
o divisional reviews & shopfloor meetings
o TMG meetings and during VIP visits to the Plant
2. Displaying the list of Suggestion Awardees on notice boards in all the
divisions
3. Coverage of Suggestors in internal publications like Flashes and Hum Sab
4. Introduction of a Suggestions Newsletter, to be circulated through global mail
5. Awarding of Suggestion Award certificates by Chairman (Suggestion Scheme)
6. Awarding of Telco Vir medal by Plant Head to the year’s highest Suggestion
Award recipient during the Republic Day function
7. Annual Suggestion Nite for felicitation of Suggestors, divisions and
functionaries

42. Communication With Suggestors
Coverage of Suggestion Scheme in House Magazine ‘Flashes’

43. Communication With Suggestors
Coverage in ‘Flashes’ in subsequent issue

44. Stages of Idea Management
Fostering Innovation & Creativity
Generation of Ideas
Implementation, Evaluation & Audit
Reward & Recognition
Achieving Business excellence through Innovative culture &
retention of employees

45. Back- up

46. Level One (Invention)
• A new device, method or process developed from study and
experimentation
• Technical realisation of new scientific knowledge or new
combination of such knowledge
• Solution exists outside the boundary of contemporary science
• Examples :
Laser Doppler altimeter Find new Find new
ENTOMOPTER* problem concept
Solution
*An electro mechanical multimode flying or crawling insect developed
by Georgia Technology Research Institute

47. Level Two (Innovation)
• The act of introducing something new or different
• Industrial application of inventions with the aim of achieving
management goals
• Synergy effect due to fusion of very different kinds of products,
processes and technology
• Encompasses the fields of production, distribution and consumption
of products or services
• Solution exists outside the boundary of one technology
• Example :
Find new Find new
Fly by wire technology solution
tasks
Solution

48. Level Three (Adoption / Diffusion)
• Spreading innovation from one area to another by producer
• Essential improvements in the existing system
• Solution from one area of technology involving methods from other
fields
• Examples :
Automatic Transmission
Battery Car
Change Change
Original existing
problem solution
Solution