The document discusses changes in management that the Tata Group has implemented, including organizational restructuring, a consumer-centric approach, cost cutting, raising quality, managing unions, spreading a performance culture, mergers and acquisitions, budgetary allocations, technology enhancements, and responding to new business entrants. Key changes include reorganizing over 100 companies, appointing new heads in subsidiaries like TCS, focusing on consumer needs through initiatives at companies like Tata Sky and Titan, and large acquisitions such as Jaguar Land Rover.

1. Changes In Management Of
Tata Group
Presented By:- MBA First Year, Shift II
Nidhi Damle - 11
Riddhi Goyanka - 23
Vishakha Rathi - 35
Kush Sharma - 52
Vishnu Mishra -64

2. Index
 Change Management In Brief
 Reasons For Implementation Of CM
 Tata Group
 Various Subsidiaries Of Tata Group
 Organizational Restructuring
 Consumer Centric Approach
 Cost Cutting
 Raise the quality
 Manage the union
 Spread performance culture
 Mergers And Acquisitions
 Budgetary Allocation
 Technology Enhancement
 Entry Of New Entrants
 Conclusion

3. Change Management in Brief
 Change Management can be described as the Approach
to Prepare, Support and Help Individuals, Teams and
Organization to make the desired Organizational
Change.
 Change Management also includes the Methods that
will Redirect or Redefine use of Resources, Business
Processes, Budgetary Allocations etc.

4. The Reasons That Propel Change
Management
 Organizational Restructuring
 Mergers and Acquisitions
 Change in the Habit of Consumer
 Technological Evolution
 Process Reviews
 Business Crisis
 Pressure from New Business Entrants

5. Tata Group
 Multinational Conglomerate Holding Company
 Head quarters in Mumbai, Maharashtra,India
 Founded by Jamshetji Tata
 Tata Group is owned by Tata Sons
J.R.D. Tata
Founder Of Tata Group
Ratan Tata
Former Chairman Of Tata Sons
N. Chandrasekaran
Recent Chairman Of Tata Sons

6. Various Subsidiaries Of Tata
Group
To Name A Few…
 Tata Power
 Taj Hotels
 Tata Communications
 Titan
 Tata Steel
 Tata Teleservices
 Tata Consultancy Services

7. Changes In Management Of Tata
Group

8. Organizational Restructuring
 Organisational Restructuring is done when a Company’s Business Model
has Changed due to Internal or External Factors & Need to Adapt in Order
to Survive and Ultimately Grow.
 This may Result in Downsizing, Upsizing, Reshuffling of Staffing
Requirement etc.
 E.g.
 In 2019,Under the Able Guidance of N. Chandrasekaran ,Chairman of Tata
Group, the Tata Group underwent about 100 Companies Synergise
Operations And Cut Cost. This Move is called as the “3S” i.e. Simplify,
Synergize & Scale by N. Chandrasekaran to create an Agile Tata Group.
 Tata Group holding company Tata Sons has restructured the $104-billion
Conglomerate into 10 Verticals such as Consumer, Trading and Investments.
The Holding Company’s Representatives will Head the Verticals and Ensure
Coordination and Smooth Functioning of the Businesses in each of them.

9. Why was this done:
1. Fund Managers said the Recast would Boost Efficiency .
2. This New Structure Would help it Better Manage Core Businesses
and Exist Non-Core Smaller Companies.
3. This would Scale up Businesses to Compete Aggressively in the
Market Place.
Challenge & Threats That could Follow this :
1. To put Consumer & Retail Vertical , given the Disparate, Listed
Units like Tata Chemicals, Tata Global Beverage , Titan , Voltas ,
Chroma & Westside would be challenging and difficult to manage.
2. It Could Affect Operational Freedom of Individual Companies
3. To bring a Limited Working Culture Aligned to a Common Goal.

11.  In 2019,Tata Group Planned to bring its Consumer Business under One
Unit as Tata Sons Natarajan Chandrasekaran Continued with a Business
Restructuring to Simplify India’s Largest Group.
 Tata Chemicals Ltd. will Transfer its Food and other Consumer Brands to
Tata Global Beverages Ltd. , One of the Biggest Makers of Branded Tea
and the Owner of Tetley.

12.  Also, In 2017, Tata Group drew a Restructuring Plan of
Hiring Bankers to Sell or Merge Misfiring Business. This
was all done under the leadership of Chandrasekaran. The
plan of this Kind of Restructuring was done to increase the
Efficiency of Conglomerate & Exit from Business which
don’t Fit Group’s Priorities or don’t have Ability to Scale.
 Also, one of the classic examples would be:-
1. Tata motors started to roll out a Voluntary Retirement
Scheme for its Employees as a Part of its Organisational
Restructuring Exercise.

13.  2. In 2019,TCS announced three changes to its employees.
 TCS appointed New Deputy Heads for its Human Resource
Function and Manufacturing Vertical.
 TCS reshuffled Management with an eye on the future.
 Tata Consultancy Services Ltd (TCS) has undertaken the first
management changes after Rajesh Gopinathan took over as
chief executive officer two years ago.
 India’s largest information technology services company
appointed new deputy heads for its human resource function
and manufacturing vertical.
 The company has, with these appointments, reaffirmed faith in
these leaders

14.  Ritu Anand, formerly Deputy Head of Human Resources (HR), as the New
Head of Global Diversity. TCS has entrusted Milind Lakkad, the Head of
the Manufacturing Industry Unit, with the Additional Responsibility of
Deputy HR Head.
 Lakkad is expected to succeed Ajoyendra Mukherjee, the HR head, when
the latter retires.Mukherjee will retire soon as TCS has a Mandatory
Retirement Age of 60 for its Senior Executives.
 Susheel Vasudevan, who is also overseeing the Banking, Financial Services
and Insurance (BFSI) Business Unit along with President K. Krithivasan,
has been named the Deputy Head of the Manufacturing Segment.
 Milind (Lakkad) is being groomed to take over from Ajoy, while Susheel
(Vasudevan) has been tasked to scale up business from the Manufacturing
Vertical.

15. Consumer Centric Approach
 It is rightly said – “ Customer is the King.”
 The Tata group, Abiding by this Statement, Actually made Changes
in its Culture or overall Organizational Culture.
 It made it’s Products and Services more Consumer Oriented and
Innovation Centric.
 Innovation is a must for any Business to remain Relevant to the
Market Trends or else any Organization/ Company/ Business may
loose its Market Share.

16. E.g.
Voltas - A Tata Subsidiary was a leader in its time – but, it lost its shine as its
rivals outpaced it in terms of innovation.
Tata Tea – A Tata Subsidiary – Also had a sluggish Marketing Approach.
It had Huge Relaunch Intervals.
Similarly, Many Tata Subsidiaries lagged in Terms of Consumer
Orientation, Innovation, Embracing change and Marketing.

17. The following are the ways in which the Tata Group turned more
Consumer Centric :-
1.Tata sky:-
 CEO personally checks on Consumer Grievances Attending to 20
Odd Complaints a day.
 Senior Directors and Executives frequently visit Call Centers to
listen to Consumer Constraints
 System has been clear to Investment Proposals from Customer
Service directly.

18.  Titan:-
 MD walks in unannounced at Showrooms to check on
Consumer Insights.
 MD directly speaks to Grieved Consumers.
 Tata chemicals:-
 A Programme has been launched to observe Housewife
behavior both at Homes and Shops.
 Another Programme launched to Observe Consumer
Behavior.

19.  Tata Power:-
 A Section of Website Devoted for Consumers to write
directly to Group CEO and COO.
 A day at the Consumer Relation Centre aims to
Sensitize Backened workforce to Customer Experience
and Expectations.
 Company Leaders occasionally Man Call Centers to
Interact with Customers.
 A Mobile Application can be launched to create
Interface with Customers.

20.  Tata Motors:-
 A Better Online Experience for Buying Vehicles Spare and
other Services for Passenger Car Customers.
 The Commercial Vehicle Business is adopting Hi-Tech
Experiences to Drive Efficiencies.
 Sales Staff Focused Initiative to Enhance Customer
Experience.
 Set of Innovative Offerings aimed at providing Insurance,
Warranty, Better Service s, A Priority Desk and Loyalty
Programmes.
 New verticals like Customer Experience for Passenger
Vehicle Business Unit and Customer Value Creation For
Customer Vehicle Business Unit.

22. Cost Cutting
 Cost Cutting is the Process used by Companies to
Reduce their Cost an Increase their Profits.
 Every decision in the Product Development Process
affects Cost.
 E.g.
 In 2019,Tata Steel Unveiled the Cost Cutting Plans for its
Europe Business including 3000 Jobs to Arrest Decline in
Profitability.
 This change was needed to ensure Self-Sustaining and
Cash Positive Business in the face of Unprecedented
Severe Market Condition.
 Also, In 2018, Tata Motors was on a Cost Cutting Drive to
Trim Expenses by over RS. 10000 Crore in Commercial
Vehicle Segment.

23. How Was Change Management Done In Tata Steel In Terms
Of Cost Cutting?
Cost is a sustainable competitive advantage and so, Cost
was checked in two major areas:
 1. Raw Material
 2. Labor Cost
 Raw Material Cost:-
It was decided to use not only iron ore but also ‘blue
dust’ found in mines thereby increasing the life of
mines.
 Developing the technology of using medium-coking coal
available in India rather than good quality coking coal
which had to be imported, through a R&D effort of 10
years.

24. Cost Pertaining To Manpower:-
There were 78,000 employees in late 80s
 Started chipping away workforce by few thousands every
year.
 The process still continues and the optimum workforce
number keeps evolving.

25. To Raise Quality
 For Instance:
 In The Context Of Tata Steel: how was change
management done to raise quality?
 Adopted many good quality practices like benchmarking,
value engineering, six sigma, ISO 9000 etc.
 Won JRDQV award in 2001.
 Enticed the workers to be quality conscious by Giving
emblems to the members of quality circles.
 Recognizing the man of the month.
 Convinced the unions by contributing around
Rs.3-4 crore to improve the quality of employees by
getting their quarters repaired.

26. To Manage The Unions
 For Instance:
 In The Context Of Tata Steel:- how was change
management done to manage unions?
 Created awareness for the upcoming change by giving
examples to the unions.
 Sent some union leaders to South-East Asia and Japan
to see the high levels of productivity.
 Message given out was ‘Better productivity and better
safety’ is beneficial to both management and workers.
 All this could be achieved by being open and
transparent to the unions and treating them well.

27. Spreading The Performance
Culture
 For Instance:
 In The Context Of Tata Steel:- how was change
management done to spread performance culture?
 The Performance Culture Was Started by installing a
new CRM(cold rolling mill), fencing it and calling it
new plant.
 People selected to work had different layers than
others, and had profit sharing type bonus.
 Within 2 to 3 years others also started asking for
similar schemes.
 Unions realized that it is better to have few people
earning better than many earning small amounts.

28. Mergers and Acquisitions
Mergers and Acquisitions are consolidation of companies.
1)Tata Motors Acquired Jaguar And Land Rover:
Tata shook the Automobile Market once again in 2008 when it Snapped
Britain’s most famous Automobile Manufacturers, Jaguar and Land Rover, in a
$2.3 billion deal with Ford, their American owners. The deal showed India’s
growing global ambition in owning the best brands. Tata Motors Recently
Announced a £ 3.1- Billion Impairment Charge on Account of its Jaguar Land
Rover unit.

29. 2)Tata Acquired Corus:
Tata Steel took over the Anglo-Dutch firm Corus Group in
2006 to create the fifth largest steel company of the world.
The deal was worth $7.6 billion (Rs. 36,650 crore) at that
time.

30.  Tata Steel and Bamnipal Steel Merger:
 Tata Steel board approved the merger of Bamnipal Steel
& Tata Steel BSL.
 The board recommended a merger ratio of one equity
share of Rs 10 each of Tata Steel for every 15 shares of
Rs 2 each of Tata Steel BSL.
 As part of the scheme, the equity shares held by
Bamnipal Steel and preference shares of held by Tata
Steel in Tata Steel BSL shall stand cancelled.

31.  Benefits of these Mergers and Acquisitions to Tata
Group is as follows:-
• Greater value generation
• Gaining cost efficiency
• Increase in market share
• Gain higher competitiveness

32. Budgetary Allocation
 A Budget Allocation is the Amount of Funding Designated to each
Expenditure Line.
 Budgetary Allocation of any Business also depends on the Current
Government Guidelines and Current Priority of the Business
House.
 E.g.
 As the Indian Government Announced the focus to be Rural India
for development purposes. So, the Tata Group and Chairman N.
Chandrasekaran put his focus on Rural India in the Budget Of
2018-19.
 At the Same time, the Tata Sons lined up Rs. 10,161 Crore
Investment for its Flagship Businesses like Steel, Vehicles and
Power.
 The Budget also includes Rs.1600 crore earmarked for a possible
acquisition of IDBI federal life Insurance.

33. Technological Enhancement – a
catalyst to CM
 The Chairman of $100 billion Tata Group, Cyrus P. Mistry said that,
“To bring the Enhancement in the Business is by Adopting various
New Technologies and Innovations as they are the Road Map to
Effectively Serve Evolving Customers Need. As we are working in
the Environment which Changes Timely and Upgrades as well.
Henceforth, to Satisfy our Customers need, we should work with the
Changing Environment and Adopt New Technologies and Enforce
them. As Today’s Era revolves around the Technological
Upgradation and Innovation (i.e., Industry 4.0) the most important
thing is to focus on the Technological Enhancement because as the
Adaptive Technology grows our Business Grows.
 For this, we have to Invest in Research and Development (R&D),
which will become an Integral Part of Strategy for Group
Companies. The Customer and Markets we know are Evolving.
Today, Emerging Technology in the Digital and Physical Space are
Transforming Businesses at a Pace never seen before.

34. Pressure from New Business
Entrants
 Pressure from new business entrants in the market
could be one of the major reasons to implement change
management.
 Some steps have to be taken by the existing businesses
or business houses to Secure the place in Market despite
the new business entrants.
 Some of them are Cost Leadership Strategy (in terms of
quality and cost), Innovation of new Products &
services, putting Money in Research and development
etc.

35. Conclusion
 Change is the Only Constant.
 It is Essential to Embrace Change because Old Ways do not
Open New Doors.
 Every Organization or Every Business House has to Accept
Change and Manage the Consequences of it to Grow
Positively in Future.
 Hence, Change Management brings in Profitability if
Managed Judiciously and forms an Indivisible Part of every
Business.