organisational culture....with two examples tata & ford motors by comparing them

1. ORGANISATIONAL CULTURE

2. FLOW OF PRESENTATION
1. INTRODUCTION
2. OVERVIEW OF TATA & FORD MOTORS
3. GENERAL CULTURE
4. INNOVATION
5. ETHICS
6. CUSTOMER SERVICES
7. SOCIAL RESPONSIBILTY
8. BENEFITS
9. CONCLUSION

4. "...We believe that organizations
will ultimately get only as far as
their organizational cultures
take them."

5. Definition
The basic pattern of shared
assumptions, values, and beliefs
considered to be the correct way of
thinking about and acting on problems and
opportunities facing the organization.
The Philosophy that guides an Organizations
policy towards employees & customers.

6. Organisational culture
The culture of an organization represents
certain predefined policies which guide the
employees and give them a sense of direction
at the workplace
The culture decides the way employees interact
at their workplace.

7. Importance of Organisational culture
The Culture decides the way employees
interact at their workplace.
The organization culture brings all the
employees on a common platform.
It is the culture of the organization
which extracts the best out of each
team member

8. Importance(contd…)
The culture of the workplace also goes a long way
in promoting healthy competition at the
workplace.
The culture of an organization represents certain
predefined policies which guide the employees and
give them a sense of direction at the workplace

9. Culture and perception
“One's own culture provides the "lens" through
which we view the world; the "logic"... by
which we order it; the "grammar" ... by which it
makes sense. “
“In other words, culture is central to what we
see, how we make sense of what we see, and
how we express ourselves.”

10. • for example : When you shape a round finger, it
means ‘zero’ in Indonesia but in Brazil that is
rude.

11. OVERVIEW OF TATA AND FORD
MOTORS
Jamsetji Nusserwanji Tata Henry Ford

12. • Jamsetji Nusserwanji tata started a private
trading firm laying foundation to the tata
group in 1868.
• Tata motors was established in 1945 as a
locomotive manufacturing unit.
• It tied up with Dailmer-Benz and entered
commercial vehicle segment in 1954

13. Jamsetji Nusserwanji tata started a private trading
firm laying foundation to the tata group in 1868.
Tata motors was established in 1945 as a
locomotive manufacturing unit.
It tied up with Dailmer-Benz and entered
commercial vehicle segment in 1954

14. TATA MOTORS(contd..)
Leadership with trust
To be a competitive value provider in
international business for group companies and
all our partners.
become a globally networked
enterprise seizing opportunities worldwide to
generate USD 25 million annual profits by
2008.

15. TATA MOTORS(contd..)
 Values
 Integrity
 Excellence
 Responsibility
 Unity
 Understanding

16. FORD MOTORS
Ford motors began with a young man Henry Ford
in year 1903.
Ford motors is a symbol of success for other
motor companies in the world.
Ford owns a small stake in Mazda in Japan and
Aston Martin in UK and its former subsidiaries
Jaguar and Land rover were sold to Tata motors.

17. FORD MOTORS(contd..)
• Vision
• To become a leader in motor vehicles for
products and related services.
• Mission
To provide products for superior quality that
improve the living standard of customers not
harmful for environment.

18. Culture – (broader perspective)
• Fmc employees of today enjoy a workplace
with a more open communication policy than
their predecessors that might affect them .
• Employee opinion is valued and is heard
through surveys the company sends out .

19. • CEO of ford is working hard to change work habits of
employees.
• Wants managers to think more about customers than their
own careers.
• Top priority is to encourage leadership team to admit
mistakes, share more information and cooperate across
divisions.

20. • Tata’s follow a very strong culture giving much
importance to ethics and moral values.
• Tata companies also extend social welfare
activities to communities around their
industrial units.
• Very strong employee relationships.

21. The role of CEOs is unique in that they stand at the top of the pyramid
and all the other members of the organization take cues from them.
Building a strong and committed top team.
Role-modeling desired mind-sets and behavior.
Relentlessly pursuing goals.

22.  Tata Motors created several breakthrough
products in the past which changed the market
dynamics and helped in providing a new
customer experience.
 INNOVATIONS
 407 platform in 1980s:
 Indica in late 1990’s
 ACE
 NANO

23. • Ford’s use of Assembly lines was a
revolutionary method.
• Use of light weight,durable,easily
machined,stronger metal like Vanadium.
• Introduced left hand drive configuration.

24. Principles, values, and beliefs that define what is
right and wrong behavior

25. Every employee of Tata motors shall exhibit culturally appropriate
behaviour in the countries they operate in,and deal on behalf of the
company with professionalism, honesty and integrity, while
conforming to high moral and ethical standards.

26. • Every employee of a Tata company shall preserve the human
rights of every individual and the community, and shall strive
to honour commitments.
• Every employee shall be responsible for the
implementation
of and compliance with the Code in his / her
environment.
Failure to adhere to the Code could attract severe
consequences, including termination of employment.

27. MANAGING ETHICAL LAPSES
ETHICS COUNSELLOR
• Investigators shall derive their authority and access rights from
the Ethics Counsellor / Audit Committee when acting within
the course and scope of their investigation.
• If an investigation leads that an improper or unethical act has
been commited the Ethics Counsellor shall recommend to the
management to take disciplinary or corrective actions.
• The Ethics Counsellor shall submit a report to the Chairman of
the Audit Committee on a regular basis about all Protected
Disclosures referred to him/her since the last report together
with the results of investigations, if any.

28. FORD’S CODE OF BUSINESS ETHICS
• Relationship of company with third parties.
• Compensation from non company sources.
• Gifts
• Personal use of company assets.

29. • Taking for themselves personally opportunities related to
company’s business.
• Using the company’s property,information or positions for
personal gain.
Directors should maintain the confidentiality of information
entrusted to them by the Company and any other confidential
information about the Company that comes to them, from
whatever source.

30.  Compliance with laws, rules and regulations; fair dealing.
 Encouraging the reporting of any illegal or unethical
behaviour.
 Compliance procedures.
 Stringent action against unethical acts.

31. • Customer service is the provision of service to
customers before and after a purchase.
“your most unhappy customers are your
greatest source of inspiration.”

32. TATA’S PERSPECTIVE
With the basic objective of increasing customer satisfaction and
loyalty, the Customer Service is always at work to exceed the
customer expectations. The customer service department works
as a strong link between the company and the customer.

33. PROVISIONS FOR CUSTOMERS
• Qualified and trained technicians ,service
advisors and customer relationships officer.
• 24 hours helpline and a breakdown helpline
vehicle.
• Strong chain of dealers and Tata Authorised
Service Stations(TASS).
• Recently Tata Motors has launched “Service
Edge” to up customer service.

34. FORD’S PERSPECTIVE
• Customer satisfaction is their primary objective.
• Keep innovating and serve the customer with
best quality in least price.
• Aims at making “Life easy” for their customers by
providing them what they need.
“BUILT FORD TOUGH”
“BUILT FOR THE ROAD AHEAD”

35. CUSTOMER PROVISIONS
• 24x7 roadside assistance.
• Interest free payment.
• Different types of maintenance plans.
• Owner advantage rewards.

36. PERFORMANCE APPRAISAL
• Formal system of review and evaluation of individual or team
task performance.
• The aim of performance appraisal is to determine the gap
between the actual performance of the employee and that
required or desired by the organization.

37. Tata’s system of appraisal
• Annual with semiannual updates.
• Appraisal is done by immediate supervisors.
Goal Sheet, Target Achievement, Quality of work, Ethics used in
target achievement, Ethics used in target achievement.

38. Ford’s system of appraisal
Annual system of appraisal.
Employees are given ratings on the basis of
there performance as A ,B,C.
One year at the C level meant no bonus and two
years could lead to dismissal or demotion.
Forced system is followed.5%of managers
should must get poor grades.

40. • Ford establishes Greenhouse Gas Reduction
Plan.
• Automotive Industry Action Group (AIAG)
• Participation in the fight for ‘labour’ rights of
workers across the world.

41. Ford motors(contd..)
Ford will not tolerate any of their suppliers
abusing workers, no matter the country.
Ford is leading the automotive movement for less
dependence on foreign resources.
Ford is the only automaker among the top 25 of
the 50 companies demonstrating best practices in
corporate social responsibility.

42. Ford also was the first in the
automotive industry to
develop, implement and report a
Code of Basic Working Conditions.

43. • Organise cultural events for colleagues and
their family members.
• Participation in ongoing voluntary
activities.
• Identify potential areas for employee
voluntering and organise training
programmes.

44. CSR(TATA MOTORS)
Tata Motors being the leading
automobile industry in India
bagged the Golden Peacock
Award for the year 2004.
The rural developmental
programmes at Pune started in
1977.

45. Tata motors(contd..)
Jan Parivar Kalyan Sansthan (JPKS) – It was
registered in September 2001 for health
related issues.
Samaj Vikar Kendra (SVK) –It worked on
infrastructure and safe drinking water, tree
plantation programme, entrepreneurship
programme.

47. Benefits to Employees
• Superannuation-
• Employees covered by this plan are prospectively entitled to
benefits computed on a basis that ensures that the annual
cost of providing the pension benefits would not exceed 15%
of salary.
• The monthly pension benefits after retirement range from
0.75% to 2% of the annual basic salary for each year of
service.

48. TATA MOTORS(contd..)
• Bhavishya Kalyan Yojana(BKY)-
• The benefits of the plan accrue to an eligible employee at the
time of death or permanent disablement, while in
service, either as a result of an injury or as certified by the
appropriate authority.
• Severance Indemnity-
• The plan provides for a lump sum payment to all employees
with more than one year of employment equivalent to 30
days’ salary payable for each completed year of service.

49. TATA MOTORS(contd..)
• Gratuity-
• A defined benefit retirement plan covering eligible
employees.
• The plan provides for a lump sum payment to vested
employees at retirement, death while in employment.
• Vesting occurs upon completion of five years of service.
• Tata Motors and some of its subsidiaries account for the
liability for gratuity benefits payable in the future based on an
actuarial valuation.

50. Ford Motors Company
• Ford A/Z Plan(For current or retired Ford
employees):
• All regular part-time hourly and salaried employees who are
eligible to receive medical benefits.
• Salaried retirees who retired under the General Retirement
Plan, including salaried employees who terminate between the
ages of 50-55 and who are eligible to receive certain deferred
retirement benefits, are eligible while they are receiving benefits.
• Employees of approved subsidiary companies and approved
affiliated companies as eligibility are defined at the time of
approval.

51. • Ford D Plan(For employees of Ford
Dealerships)-
• Two new products per calendar year may be
purchased/leased.
• Cross-buying/leasing is allowed. For example, an employee of
a Ford dealership may obtain a Lincoln or Mercury product
and vice versa.
• Vehicles should be purchased/leased from the sponsoring
employee's dealership. However, if this is not
practical, eligible relatives may purchase/lease their vehicle
from any participating Ford or Lincoln Mercury Dealership.

52. • Ford X Plan(For employees of Ford partners)-
• An eligible Ford employee or retiree may sponsor up to four
(4) PINs per calendar year to be used towards the
purchase/lease of a new vehicle for a friend or neighbor as
noted below (see PIN Generation for details):
• Selected individuals sponsored by a Ford Motor Company
employee or retiree such as an extended family
member, friend or neighbor.
• Sponsors must know the individuals they are sponsoring.