Case Study on Learning Organisation at TATA Motors

Ltd.(Jamshedpur)

Section 1

Objective:
“Assessing the readiness of TATA Motors Ltd. to become a Learning Organisation.”

A Learning Organization is the term given to a company that facilitates the learning of its

members and continuously transforms itself. Learning Organizations develop as a result of

the pressures facing modern organizations and enables them to remain competitive in the

business environment.

Thus a learning organization is one where people continually expand their capacity to create

the results they truly desire, where new and expansive patterns of thinking are nurtured,

where collective aspiration is set free, and where people are continually learning to learn

together”.

A Learning Organization exhibits five main characteristics; systems thinking, personal

mastery, mental models, a shared vision and team learning.

Systems thinking

This is a conceptual framework that allows people to study businesses as bounded objects.

Learning Organizations employ this method of thinking when assessing their company and

will have developed information systems that measure the performance of the organization as

a whole and of its various components.

Personal mastery

Personal mastery is the commitment by an individual to the process of learning. There is a

competitive advantage for an organisation whose workforce can learn quicker than the
workforce of other organisations. Individual learning is acquired through staff training and

development, however learning cannot be forced upon an individual if he or she is not

receptive to learning.

Mental models

Mental models are the terms given to ingrained assumptions held by individuals and

organisation. In the creation of a learning environment it is important to replace

confrontational attitudes with an open culture that promotes inquiry and trust. The company

should also have contingency plans as we know that every problem does not have a same

solution. If there are unwanted values held by the organisation, these need to be discarded in

a process called ‘unlearning’.

Shared vision

The development of a shared vision is important in incentivising the workforce to learn as it

creates a common identity which can provide focus and energy for learning. As a result,

Learning Organisations tend to have flat, decentralised organisational structures.

Team learning

Team learning is the accumulation of individual learning. The benefit of sharing individual

learning is that employees grow more quickly and the problem solving capacity of the

organisation is improved through better access to knowledge and expertise. Learning

Organisations have structures that facilitate team learning with features such as boundary

crossing and openness. Team learning requires individuals to engage in dialogue and

discussion, therefore it is important that team members develop open communication and

understanding.

Section 2
 Four Pillers of the company

Jamsetji TATA
“There is a difference between making money for oneself and creating

wealth for others.”

The founder of the TATA Group began with a textile mill in central India in the 1870s. His

powerful vision inspired the steel and power industries in the country, set the foundation for

technical education, and helped India leapfrog from backwardness to the ranks of

industrialized nations.

JRD TATA

Founder of Tata Motors (1938-1993)

The late chairman of the TATA Group pioneered civil aviation on the

subcontinent in 1932 by launching the airline now known as Air

India.

SUMANT MOOLGAOKAR

Chairman, TATA Motors (1972-1988)

Sumant Moolgaokar is often referred to as the architect of Tata Motors. Leading

the Company for nearly four decades, he was responsible for building Tata

Motors into an organization capable of competing with the world’s best - in terms

of people, processes and technology.

RATAN TATA

Chairman Tata Motors since 1991

Ratan Tata holds a B.Sc. (Architecture) degree from Cornell University, U.S.A. and has

completed the Advanced Management Program at Harvard University, U.S.A. He joined Tata

Group in 1962 and is the Chairman of Tata Group since 1991. In January 2000 awarded by

Padma Bhushan by Government of India and awarded Hon. Doctorate Degree in Business

Administration by the Ohio State University. One of his achievements includes designing and

developing India’s first indigenous Car the “Indica”.He also unveiled common man car

‘Nano’.

About Tata Group

India’s: Largest business group

Diverse business in: 7 sectors

Revenue equivalent to: 5.3% of India’s GDP

International income 61% of group revenue.

Operation in: Over 80 countries.

Products &services: Exported to 85 countries.

Largest employer in private sector: Over 300000 employees.

Group revenue: FY2008:Rs251, 543 Cr. /

$62.5bn

Group profit: FY2008:Rs21, 578 Cr. / 5,4bn

About Tata Motors

Tata Motors, Founded in 1887 by Mr. Jamsetji Nusserwanji Tata and which is

highly diversified group with 96 operating companies s

erving India for last 128 years.

TATA MOTORS LTD is one of the largest companies in the TATA Group with the total

income of US $ 2.35 BILLION. It has been situated in the city of Jamshedpur in the state of

Jharkhand is the mother plant & township of TATA MOTORS.

TATA Motors was incorporated on September 1st 1945 with the objective to

manufacture locomotives and later undertook the manufacture of other general

engineering equipment and construction equipment machinery. Its headquarters

at Mumbai and plants are located in Jamshedpur, Pune, Lucknow, and Dharwar

 Tata Motors is the India’s largest automobile company with 64%

market share. It is the leader by far in commercial vehicles in

each segment.

 5th largest Commercial Vehicle Manufacturer in the world and

the world's second largest medium and heavy bus manufacturer.

 2nd largest passenger cars manufacturer in the country.

 Over 150 models of Vehicles & Automotive Products.

 Nation wide dealership, sales, service and spare parts network –

over 3500 touch ponts.

 Over 4 million vehicles driven in 70 countries across the world

 Gross Revenues Rs. 32,426 crores in FY 2006-2007 ( USD 7.2 Bn)

 Export of vehicles to several countries in Europe, Africa, South

America, Middle East, Asia and Australia

Assembly operations in Malaysia, Bangladesh, Kenya, South Africa,

Ukraine & Russia

Tata motors is a multinational company. On export front it developed

markets in over 50 countries and TATA vehicles have been preferred in

international markets bears ample testimony to the high quality and

durability of the TATA vehicles.

Assembly operations in Malaysia, Bangladesh, Kenya, South Africa, Ukraine &

Russia

Company vision and mission:

Vision:
Vision:

“To be a world class corporate constantly furthering the interests of all its

stakeholders”

Mission:

Shareholders: To consistently create shareholder value by generating returns

in excess of Weighted Average Cost of Capital during the upturn and at least

equal to Weighted Average Cost of Capital during the down turn of the business

cycle.

Customers: To strengthen the TATA Brand and create lasting relationships with
customers by working closely with business partners, to provide superior value

for money over the life cycle.

Employees: To create a seamless organization that incubates and promotes

innovation, excellence, and the TATA Core Values.

Vendors and Channel Partners: To foster a long-term relationship so as to

introduce a broad range of innovative products and services that would benefit

our customers and other stakeholders.

Community: To proactively participate in reshaping the country's economic

growth and to take a holistic approach towards environmental protection.

 Section 5

The objective of the research was to find out “The readiness of Tata Motors Ltd. to become a

learning organization”. It was found that almost all the managers of the various divisions

required

• Information about the latest trends and technology,

• Product knowledge,

• Almost all the, managers believed that leadership skill, negotiation skill, team

working, interpersonal skill, pro-active approach to problem solving and so on. There

are few behavioral skills, which could help them, enhancing the divisional

performance.

• Mostly all the managers preferred data base and journals as a source and on line as the

most preferred format of information delivery.

Section 4
For the accomplishment of the objectives, questionnaires were getting filled by 50

Executives of various divisions and concluded with the following results.

1. It is found that 76% of the samples agree to the fact that the organization structure promote

quick decision making & empowerment & sharing of views & ideas.

Fig : Respondents for the quick decisions

2. It is found that 60% of the samples agree to the fact that the people work on

challenging projects with minimum guidance to a large extent.

Frequency Percent

Valid 1 NOT AT ALL 2 4

2 TO A SMALL EXTENT 17 34

3 TO A LARGE EXTENT 30 60

4 GREATLY 1 2

Total 50 100.0

3. It is found that 64% of the sample agrees that a systematic problem solving approach
is encouraged in Tata motors.

Fig : Respondents to systematic problem solving approach

4. It is found that 52% of the sample believes that the people only participate under

pressure in a problem solving approach.

 Frequency Percent

Valid 1 They are Indifferent 7 14

2 Wait for others to come 3 6

up with solutions

3 Participate only under 26 52

external pressure

4 participate proactively 14 28

Total 50 100.0

5. It is found that 80% of the sample agreed that the people are empowered

and delegated authority and thus made accountable for the task they

perform.

Fig: Delegation of authority within respondents

6. It is found that according to 60 % respondents, Tata motors does have a

potential appraisal program along with performance appraisal program.

7. It is found that 70% of the sample agree that the employees in Tata
Motors ltd are flexible enough and hence accept change easily and
willingly.

Fig : Response to the flexibility of the people

8. It is also found that Team based learning is the most preferred learning
style among employees of TATA Motors Ltd.