1.
A REPORT ON CHANGE
MANAGEMENT AT TATA MOTORS
SUBMITTED BY
VANDITA MATHUR
SUMAN BURMAN

2.
BACKGROUND OF TATA MOTORS
• It was founded in the year 1945
• India’s largest automobile company.
• It’s headquarter is situated in Mumbai,
Maharashtra.
• Formerly it was known as Tata Engineering
and Locomotive company.

3.
LOCATION OF TATA MOTOR PLANT IN
INDIA

4.
CHANGES AT TATA MOTORS
ORGANISATIONAL
CHANGE
• Change in Technology
• Change in Strategy
CHANGE IN
WORKFORCE AND
CULTURE
• Employees were exposed to
outside world
• Young Employees were
encouraged

5.
NEED FOR CHANGE
• In the year 2001 Tata Motors incurred losses
of 5 billion rupees.
• They were predominantly a manufacturer of
commercial vehicles which is a very cyclic
business.
• The commercial-vehicle market in India shrank
by more than 40 percent and had led to
consequences.

6.
INTRODUCTION TO CHANGE PHASE OF
TATA MOTORS
They decided to bring transformation in three
different phases. Each phase was intended to
last around for 2 years.
PHASE 1
• Reducing Cost.
PHASE 2
• Consolidating
their position in
India.
PHASE 3
• Involved in going
outside India and
expanding
operations
internationally .

7.
PHASE 1- TO STEM THE BLEEDING
COST.
• To reduce the break even point.
• It called for major reductions in variable , fixed
and interest costs.
• They went in for e-sourcing.
• The company adopted CAD and CAM systems.
• They launched Customer and Dealer
Management program in 2003.

8.
PHASE 2 – CONSOLIDATING POSITION
IN INDIA
• This phase concentrated on the development of
product.
• The positioning in the market place was
strengthened by:
1. New sales planning process
2. Reducing the impact of cyclic business.
3. Improving liquidity and profitability of dealers.
4. Re- orienting towards customer satisfaction.
5. Extending the reach for distribution network.

9.
PHASE 3 – INTERNATIONAL GROWTH
• International Diversification was a key part of
this phase of transformation strategy.
• Looked for opportunities for inorganic growth.
• They identified 12 countries as priority
markets.
• In order to facilitate globalization, the
previously independent export division was
merged into passenger car and commercial
vehicle division.

10.
TATA NAN0 –SWEEPING CHANGE
• Tata Motor’s was termed as THE PEOPLE’S CAR.
• It was a dream project initiated by Mr Ratan
Tata .
• The project was initialized with the concept
that it will bring mobility to the masses in an
efficient and economic manner.

11.
FEATURES OF TATA NANO INTIALLY
TATA
NANO
COST
OBJECTIVE
RELIABILITY
SAFETY IN
MIND

12.
SETBACKS FOR NANO
It did not have large
dealer network in
Rural areas .
The Initial
advertising
campaigning did
not go well with the
Indian Mindset.

13.
Tata Nano failed to
pose a challenge to
the market players
in the re- sale car
niche segment.
Few of the Initial
Tata Nano cars
caught fire.

14.
REVIVAL OF TATA NANO
• Revival was done by Tata Motors by correcting
their 4 P’S .
4P’S
PRODUCT
PRICE
PROMOTION
PLACE

15.
CHANGES...
• Re- engineering was done to fix issues related to
fire and customers were offered safety upgrades .
• The next campaign focused on Tire 2 cities with
bad roads .
• They had set up 210 ‘F’ Class showrooms.
• They tied up with Big Bazaar.
• Special Tata Nano finance scheme was launched.
• Ultimately they worked on Re- Positioning of Tata
Nano.

16.
PRODUCT MODIFICATION

17.
CHANGE IN WORKING CULTURE

18.
NEED FOR CHANGE IN WORKING
CULTURE
In any organisation
people resist to
Change.
The approach of
people had become
very inward.

19.
CHANGE
Initiated the
employee to think
more about the
customers rather
than their careers
Ethical and Morale
values, Strong
employee
relationship, Building
a strong committed
team

20.
DIAGNOSIS OF CHANGE
ENVIROMENTAL
INPUTS
Technological
Changes
Production
Line
Improvement
STRATEGY
Cultural
Change
Behaviour
and Shared
Values.
LEADERSHIP
Commitment
Level
Patience

21.
STRUCTURE AND
ADAPTABILITY
ROLES AND
RESPONSIBILITIES
ADAPTABILITY
INFORMATION
TECHNOLOGY
TRAINING VIDEO
MODLE
CAD/ CAM
SYSTEMS
CULTURE
VALUES , MYTHS
TRADITION,
NORMS

22.
OUTCOMES OF DIAGNOSIS

23.
INTERNATIONAL MERGERS AND
ACQUISITION.
• In 2004, Tata Motors acquired Daewoo's South Korea-based truck
manufacturing unit.
• On 27 September 2004, Tata Motors enlisted at the New York Stock
Exchange.
• In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus
and coach manufacturer Hispano Carrocera.
• In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata
Marcopolo Bus, to manufacture fully built buses and coaches.
• In 2008, Tata Motors acquired the British car maker Jaguar Land Rover,
manufacturer of the Jaguar, Land Rover, and Daimler luxury car brands,
from Ford Motor Company.
• In May 2009, Tata unveiled the Tata World Truck range jointly developed
with Tata Daewoo.
• In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi
National Quality Award.
• In 2014, Tata Motors introduced first Truck Racing championship in India
"T1 Prima Truck Racing Championship".

24.
INTERVENTION IDENTIFIED DURING
CHANGE
1
• Action Planning Workshops and team-level interventions to
enhance engagement, motivation and commitment
2.
• Parivartan , an online listening post was created for employees
to share their comments, feedback, suggestions on the existing
system as well as the new system to be conceptualized.`
3.
• PACT, i.e. the Performance Assessment and Coaching Tool, the
evolved avatar of the PMS at Tata Motors, which held Coaching
Discussions at its core.

25.
ROLE OF EXTERNAL CONSULTANTS

26.
CHALLENGES AT THE TIME OF
IMPLEMNTATION
CHANGING THE
APPROACH OF
ORGANIZTION
POLITICAL
CONTROVERSY OF
TATA NANO
MANAGING YOUNG
EMPLOYEES
COMPETING WITH
RIVALS IN SMALL
MARKET SEGMENT

27.
ROLE OF TOP MANAGEMENT IN
BRINGING CHANGE
• Mr. Ravi Kant, the then MD of Tata Motors was
responsible successful implementation change
process.
• Mr. Ratan Tata has displayed extreme patience
while implementing change.
• Mr. Ravi Kant’s vision of sustained growth has
helped .
• He successfully implemented the process bring a
change within the experienced employees.

28.
CONCLUSION OF CHANGE AT TATA
MOTORS
The company had streamlined its processes and
as a company it’s processes are focused on
CHANGE
• QUALITY
• DESIGN
CHANGE
• FASTER PRODUCT
DEVELOPMENT
• SALES AND AFTER
SALES SERVICE