INTRODUCTION

An organization is a social arrangement to distribute tasks

for a collective goal. The word itself is derived from the
Greek word organon, itself derived from the better-known
word ergon - as we know `organ` - and it means a
compartment for a particular job.
There are a variety of legal types of organizations, including: corporations, governments,
non-governmental organizations, international organizations, armed forces, charities, not-
for-profit corporations, partnerships, cooperatives, and universities. A hybrid
organization is a body that operates in both the public sector and the private sector,
simultaneously fulfilling public duties and developing commercial market activities. As a
result the hybrid organization becomes a mixture of a government and a corporate
organization.

In the social sciences, organizations are the object of analysis for a number of disciplines,
such as sociology, economics, political science, psychology, management, and
organizational communication. The broader analysis of organizations is commonly
referred to as organizational structure, organizational studies, organizational behavior, or
organization analysis. A number of different perspectives exist, some of which are
compatible:

• From a process-related perspective, an organization is viewed as an entity is being

(re-)organized, and the focus is on the organization as a set of tasks or actions.
• From a functional perspective, the focus is on how entities like businesses or state
authorities are used.
• From an institutional perspective, an organization is viewed as a purposeful
structure within a social context
SUMMARY
 RESEARCH OBJECTIVE
[Organizational Change and Tata Motors]

This is the case about Tata Motors India's largest automobile company, with revenues of
Rs. 32,426 crores (USD 7.2 billion) in 2006-11 (tatamotors.com, 2008). The company's
22,000 employees are guided by the vision to be "best in the manner in which we operate
best in the products we deliver and best in our value system and ethics" (tatamotors.com,
2011).

In recent times Tata Motors have faced a lot of challenge especially from the growing
competition and globalization. To fight back these external evils, Tata Motors came out
with plans of expansion to fight back competition via mergers and acquisitions and to
fight back globalization it decided to cut costs and thereby introduced the worlds
cheapest car. But all these activities had severe implications on its internal organizational
change. Change was seen both on the management and at the employee level. At the
management level change was seen for cutting costs and providing the cheapest car to the
world market and at the employee level change was seen because of the much needed
Tata Motors to merge with Daewoo, which caused a lot of change in its employees.

In 2004, Tata Motors took over Daewoo Commercial Vehicle Company of Korea. Tata
Motors main motive for acquiring Daewoo Commercial Vehicles was to get a foothold in
Korea and expand enormously and secondly to use Daewoo’s technology so that it can
introduce high tonnage trucks in the world market. Thus this merger with Daewoo gave
Tata a high end technology, global footprint and a new product portfolio (The Hindu
Business Line, 2011). The main motive for Tata Motors to acquire Daewoo was because
of the still competition from other Asian players which led the takeover move which is
external in nature.
ORGANIZATION CHANGE IN DIRECTORS VIEW-

The automobile heavyweight – Tata Motors – has made a number of changes in the top brasses of their
passenger vehicle business. This has been implemented as a part of their overall strategy to tap the talent
available in-house and also to improve sales.

Mr. P.M. Telang is the Managing Director of the Tata Motors Indian operations.

S. Krishnan, Senior VP (commercial) is at present looking after the passenger car business in India reporting
to Mr. Telang. He will look after the International business operations from now onwards. He will continue to
report to Mr. Telang.

Mr. Nitin Seth, Senior General Manager was earlier heading the car product group and he has been
assigned to look after cross-company initiatives. He will also report directly to Mr. Telang.

R Ramakrishnan is at present the VP (sales & marketing) of commercial vehicle division and he will take
over the post of VP (commercial) passenger cars and will report directly to Mr. Telang.

Niraj Srivastava is the Regional manager (west) in the commercial vehicle business and he is entrusted to
look after the car product group and he will report to Mr Ramakrishnan.

Rajesh Kaul currently is the head of marketing looking after the trucks business and is posted as RM (West)
in place of Mr Srivastava.

The postion of Mr. Ramakrishnan, VP (sales & marketing) is yet to be filled up by Tata Motors.

The above changes have been confirmed by the spokesperson of Tata Motors. He said that the
redeployment of Senior Managers has become essential for executing new responsibilities.

There has been considerable pressure on car business of late. Nano sales have stabilized after inauguration
of the Gujarat plant. But sales of other cars – Indica, Indigo, Safari and Sumo – are under severe pressure.
Rajiv Dube was the president of passenger car business and after his exit it was not filled up.

People who are in the know of the company say that the changes have been carried out to revitalize the
passenger vehicle business and also to bring in young talent. These changes will not have an impact on the
commercial vehicle business because the sale of trucks has been stabilized for sometime.

Mr. Ramakrishnan has held a number of positions in the business of commercial vehicles for more than 15
years and he has also been the southern regional head and new product introductions. The CV business
contributes to 75% of Tata Motor’s revenue and Prima Range vehicles have been launched recently.

A truck dealer in Mumbai said that lots of trucks are being purchased nowadays with the introduction of Euro
III emission norms from October. The sales of CV I the period April-July 2010 has been 132,000 units
whereas cars sales is 100,100