A TERM PAPER

ON

(CHANGE MANAGEMENT)

(MANAGEMENT PRACTICES AND ORGANIZATIONAL

BEHAVIOUR)

SUBMITTED TO: SUBMITTED BY:

LECT .VANEET KASHYAP MANPREET SINGH(11009040)

ROLL NO. 39
 ACKNOWLEDGEMENT

Nothing concrete can be achieved without an optimum combination of inspection and

perspiration. Like all the other studies, this work is also the attraction of a number of
minds who directly or indirectly contribute to completion of the project.
Although writing a few words on a piece of paper is not a proper way of
acknowledging those people who have helped us in completion of this project. A special
word of thanks for person’s who have been of great help during the course of studies.
We are highly thankful to Lecturer vaneet kashyap and the other staff
members of LPU,JALANDHAR who provided us valuable guidance, suggestions,
encouragement and required documents for the system study to make this project
possible.
In the last, but not least, we are highly thankful to our parents for helping us
round the clock, which has been a source of great encouragement to us.

MANPREET SINGH
TABLE OF CONTENTS

Content
Acknowledgement
1 Introduction To The Topic
2 Introduction To The Company
3 Changes at Tata Motors
4 Need for the Change
5 Relevance for the Change
6 Change in Workforce & culture
7 Role of Leadership in Change Management
8 Barriers to Change
9 Planning The Change at Tata Motors
10 Employee Motivation to Accept the Change
11 Evaluating The Change Process at Tata Motors
12 Conclusion & Strategies To manage Change Process
13 Suggestions
14 References
INTRODUCTION
TO
CHANGE MANAGEMENT

Change management is a structured approach to transitioning individuals, teams,

and organizations from a current state to a desired future state. Change management is
the process during which the changes of a system are implementedin a controlled manner
by following a pre-defined framework/model with, to someextent, reasonable
modifications.
Change management is the process of developing a planned approach to change in
anorganization. Typically the objective is to maximize the collective benefits for all
people involved in the change and minimize the risk of failure of implementing the
change. The discipline of change management deals primarily with the human aspect of
change, and is therefore related to pure and industrial psychology.

In project management, change management refers to a project management process

where changes to a project are formally introduced and approved.
The field of change management grew from the recognition that organizations are
composed of people. And the behaviors of people make up the outputs of an
organization.

Types of Organizational Change

· Strategic changes
· Technological changes
· Structural changes
· Changing the attitudes and behaviors of personnel
There are many models in understanding the transitioning of individuals through the
phases of change management and strengthening organizational development initiative in
both government and corporate sectors. They are

1. ADKAR Model
2. Unfreeze-Change-Refreeze
3. Kübler-Ross
4. Formula for Change
5. PCI (People Centered Implementation)

Some of the Potential issues concerning the successful Change deployment process:
The House (Of Quality) Needs Foundations
Underestimating the need for a support structure can be a big mistake in the process of
deploying Lean or Six Sigma. It is important to first assess the gap between your current
state and the future, desired state. This activity produces a list of things that need to
change and, in addition, those that need to be positively reinforced. In the change process,
this is not an either/or proposition. Both need to be done. As an example, if one has the
fortune of having an army of talented Black Belts but a broken Champion support
system, the program can fail in a heartbeat. Again, if both are present and yet, executive
support is absent, then that can lead to disastrous results for a program as well.

The role of a consultant is potentially huge in this case. The superior knowledge base can
be helpful in foreseeing roadblocks and addressing them at the very outset.

Speed Can Be An Illusion

One common trait of all change initiatives is that they go through a series of necessary
steps that have their own lead times. Failing to recognize this fact often leads to skipping
essential activities that only create an illusion of speed and never produces desired
results.

Sustaining A Shared Vision

Most executives do a good job of communicating a strong sense of urgency to effect

change and move people out of their comfort zones. This often launches a flurry of
activities in the right direction to start with. However, sustaining the quality and level of
activities is a different ball game. For the abstraction that is called business, it requires
more than organizational structure, incentives and job descriptions to have a multitude of
people work in a concerted manner towards a common objective – it requires a shared
vision. It is one, in which everybody has a role to play, everybody clearly understands his
or her role, and everyone knows "what is in it for me?"

Having a shared vision and communicating it well are essential in galvanizing a

workforce to come together and stay together, during the process of change..

New Vision, Old Contraints

Doing the same old thing and expecting different results is the definition of insanity. As
much as new tools and a new roadmap empowers people to do things differently,
systemic constraints -- be it organizational structure or reward system -- if not addressed
adequately can seriously damage the credibility of the effort and make cynics out of
employees.
Actions to confront big roadblocks early in the deployment phase can do the magic of
boosting morale and providing momentum to overcome psychological hurdles throughout
the organization.
Show Me The Money

In all fairness to the shareholders, every initiative should aim at producing measurable
economic benefit to a business. Care should be taken to ensure that there is correlation
between the metrics used to monitor improvement efforts and the bottom line. This may
warrant adjustments to the accounting procedures2 to enable the identification of reform
opportunities, drive the right activities and calculate project benefits consistently. In
many cases, gains are realized only after a series of project segments (like a step
function). It is important in such cases to make sure that cost accounting doesn't
disincentives the very activities that culminate into a breakthrough.

Leaders Wanted

More often than not, management is incentivised to minimize risk and preserve the
status quo. Change on the other hand requires creation of a new state of business,
which naturally requires leadership. A paralyzed decision making process (often the
biggest impediment to change) is a symptom of having too many managers and not
enough leaders3. Great leaders transform cultures and stimulate breakthroughs. It is vital
to have a good number of them on one's side as champions of the renewal process.
Strategic changes
Technological Changes

Structural Changes
Behavioural Changes
 INTRODUCTION
TO
TATA MOTORS
Tata Motors Limited is India's largest automobile company, with consolidated
revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in
commercial vehicles in each segment, and among the top three in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. The company
is the world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer.

The company's 24,000 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."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of
India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in
1954. The company's manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to
produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new
plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts
network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India. Tata Motors, the first company from India's engineering sector to
be listed in the New York Stock Exchange (September 2004), has also emerged as an
international automobile company. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand and Spain. Among them is
Jaguar Land Rover, a business comprising the two iconic British brands that was acquired
in 2008.

In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's

second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles
Company has launched several new products in the Korean market, while also
exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata
Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being
expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-
based Marcopolo, a global leader in body-building for buses and coaches to manufacture
fully-built buses and coaches for India and select international markets.
In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly
Plant Company of Thailand to manufacture and market the company's pickup vehicles in
Thailand.
In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first
indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's
Car, the Tata Nano, which India and the world have been looking forward to. The Tata
Nano has been subsequently launched, as planned, in India in March 2009. A
development, which signifies a first for the global automobile industry, the Nano brings
the comfort and safety of a car within the reach of thousands of families. The standard
version has been priced at Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will
set a new benchmark among small cars. Its safety performance exceeds regulatory
requirements in India. Its tailpipe emission performance too exceeds regulatory
requirements. In terms of overall pollutants, it has a lower pollution level than two-
wheelers being manufactured in India today. The lean design strategy has helped
minimise weight, which helps maximise performance per unit of energy consumed and
delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low
carbon dioxide emissions, thereby providing the twin benefits of an affordable
transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced
ushered in a new era in the Indian automobile industry, in keeping with its pioneering
tradition, by unveiling its new range of world standard trucks called Prima. In their
power, speed, carrying capacity, operating economy and trims, they will introduce new
benchmarks in India and match the best in the world in performance at a lower life-cycle
cost. Tata Motors is equally focussed on environment-friendly technologies in emissions
and alternative fuels. . It has developed electric and hybrid vehicles both for personal and
public transportation. It has also been implementing several environment-friendly
technologies in manufacturing processes, significantly enhancing resource
conservation.

CHANGES AT TATA MOTORS

Tata Motors marks the biggest turnarounds in the history of Indian automobile
manufacturing industry which happened in 2001. This success story of Tata Motors can
be entirely attributed to the timely change adopted by the Tatas and the then M.D Ravi
Kant who led the change. Today Tata Motors ranks as the world’s fifth-largest
manufacturer of medium and heavy trucks—it has a 61 percent domestic market share in
this segment—and has taken the number-two position for sales of passenger vehicles in
the Indian market. It has also built a significant global presence, both through sales
efforts in overseas markets (such as the former Soviet republics, the Middle East, South
Africa, South Asia, and Turkey) and through acquisitions such as the takeover of
Daewoo’s commercial-vehicle business in South Korea and the purchase of a 21 percent
stake in
the Spanish bus manufacturer Hispano Carrocera. Tata Motors was predominantly a
manufacturer of commercial vehicles, and that is a very cyclical business. The
commercial-vehicle market in India shrank by more than
40 percent, with massive consequences for both the top and, more particularly, the
bottom lines of the company. The 5 billion rupee loss in 2001 was the first time
something on this scale had happened in the company’s history, and it really shook
everybody within the organization. They tried to understand what had gone wrong and
wanted to create a path for the future to ensure that they never got into such a situation
again. So in 2001 they decided on a recovery strategy that had three distinct phases, each
of which was intended to last for around two years—six years in all. Phase one was
intended to stem the bleeding. Costs had to be reduced in a big way, and that was going
to be a huge challenge for a company that was not only the market leader but had been
used to operating in a seller’s market and employing a cost-plus approach to pricing.
Phase two was to be about consolidating their position in India, and phase three was to
involve going outside India and expanding our operations internationally.

Phase 1:
The key objectives were to move to a system of market pricing and to reduce their break-
even point, both of which called for major reductions in costs—variable costs, fixed
costs, and interest costs. They used many approaches to cost reduction, including bench-
marking our rivals. For example, they took apart vehicles to see what they could do to
modify the products and to lower costs. They went in for e-sourcing, and today they are
the largest company doing e-sourcing in India and one of the leading ones in the
automobile industry worldwide. In two and a half years, they reduced the break-even
from nearly two-thirds of capacity utilization to around onethird, which meant that even
if the market shrank by close to 60 percent, they would still be in the black. The whole
organization really got together to ensure that the bleeding stopped. One of the major
drivers of success at Tata Motors Ltd. (TML) was its ability to fully exploit information
technology to drive business goals and reduce cost. The company was an early adopter of
CAD and CAM systems.

Phase 2:
The concentration in phase one was indeed on cost reduction, but while this was
going on they thought about taking action in areas that would have an impact during the
other phases. For phase two, the concentration was on improving product quality and
upgrading product features so as to make the products more competitive. They also
started work on new products that would be required by the market after three to five
years and strengthened the position in the marketplace by setting up a new salesplanning
process, tightening credit norms, improving the liquidity and profitability of the dealers,
reorienting toward customer satisfaction, and extending the reach of the distribution
network. For phase three, the concentration was on starting work on international markets
by identifying key markets and segments and developing a comprehensive plan to
improve our competitive position so as to get a respectable market share. They also
started looking at opportunities for inorganic growth.

Phase 3:
In phase the concentration was on starting work on international markets by
identifying key markets and segments and developing a comprehensive plan to
improve Tata Motor’s competitive position so as to get a respectable market share. They
also started looking at opportunities for inorganic growth. International diversification
was such a key part of the transformation strategy. It was all part of first, reducing the
impact of domestic cyclicity – cyclicity is present across the world but in different phases
in different places - and, second, seeking new geographies for growth in the face of the
limitations of the domestic market, especially in commercial vehicles, where we enjoy a
very high market share of over 60 percent. Tata Motors wanted to leverage the market-
leading products internationally.

TATA NANO
SWEEPING CHANGE
Tata Nano, the new model introduced by Tata motors, hailed as "the people's car", is an
amazingly cheap car. With a price tag of US$ 2500, Tata Nano is indeed an affordable
middle class family car. Tata Nano is a dream comes true for an average Indian. His /her
ideas about owning and driving a car will become a reality soon. An analysis of the new
car seems necessary as it is bringing mobility to the masses in an efficient and economic
manner.

Achieving the cost objective

Tata has defied the conventional odds and sceptics in the industry through the
innovation of the world's cheapest car. Tata Nano is a marvel of a product yet
audaciously economical and mechanically simple. It is a breakthrough in frugal
engineering where innovation is driven by cost savings and sheer ingenuity. Tata
managed to reorient the basic tenets of efficiency and practicality to meet the cost target.
Tata Nano's efficiency comes from including only those items that are necessary for basic
transportation and eliminating the not so relevant ones i.e. having one part/component
that can perform a task just as good as two parts/ components can do, thus resulting in
cost savings, e.g. one windscreen wiper and one side mirror. Tata also refrains from
including items that are not feasible due to monetary reasons. Radio, air conditioner
(despite the sizzling heat in India), power steering are not included while the instrument
panel consists of only a speedometer, odometer, and fuel gauge similar to that of the two-
wheelers- basic, yet functional. In addition, Tata has come up with practical ways to
reduce car weight and thereby trim down the overall cost. It uses comparatively small and
light engine, a 623cc twocylinder petrol engine made of aluminium, unlike conventional
engines which are made out of cast iron. The engine of Tata Nano is strategically placed
at the back of the car leaving the front section for luggage, that too with the capacity of a
briefcase. This is the most significant element in bringing down the weight and the
overall cost of the car. Other factors that contribute towards the weight reduction are the
usage of hollow steering wheel shafts, plastic body panels and smaller tubeless tyres. As
a result of these measures, Tata Nano weighs only about 590kg. Lesser weight and fewer
parts mean less raw material and lower cost for Tata Nano.
Safety in mind
Besides having the right parts to meet the cost objective, Tata Nano has adequate features
that exceed current regulatory requirements and meet minimum safety standards. It has a
sheet-metal body with strong passenger compartment equipped with safety features such
as crumple zones, intrusion resistant doors, seat belts, strong seats and anchorages. The
rear tailgate glass is fixed to the body and tubeless tyres enhance safety further.

Ownership cost
It is quite obvious that Tata Nano is cheap to manufacture, but the question is, does
owning and operating a Nano over a period of time yield significant savings and benefits?
While the low-price tag of Nano looks attractive, it is important to look at certain other
factors like the running cost of the car in the long run. Potential buyers need to consider
the rising price of petrol. Petrol prices have breached the US$ 100 mark with no sign of
abating as global demand skyrocketed. The influx of thousands of Tata Nano on Indian
roads would elevate the demand for petrol and this might bring a new dimension to the
continuous hike of petrol price in India, which still depends on the Middle East for oil.
Petrol prices may reach a point where owners of Tata Nano could no longer afford to buy
petrol to run it. If that is the case, Tata Nano owners may leave their cars behind and
resort to riding two-wheelers. In such a scenario, Tata Nano's value proposition may no
longer make an economic sense. The low cost of ownership model championed by Tata
may not remain successful at times of surging energy prices. The would-be owners of
Tata Nano have to consider the cost of replacement parts and service maintenance for the
car during the period of ownership. Tata Nano is built from scratch and most of the
component parts are new and do not share platform with other models in the Tata family.
As a result, it is difficult to assess the vehicle's reliability, durability and parts' longevity.
These factors along with unavailability of the model have made it difficult to estimate the
cost of ownership of Tata Nano and the frequency of service trips. The overall cost of
parts and services of Tata Nano is likely to be at the range of similarly sized car like
Maruti 800. The perception of frequent parts breakdown and shorter service interval due
to sub-standard parts and inferior materials on budget cars may not hold true for Tata
Nano. Tata Nano's component parts are developed and manufactured by reputable
component manufacturers like Bosch, Rico Auto, Lumax Group, Rane Group, Asahi
Glass etc. Moreover, the cost of parts and services is likely to decline as more Tata Nano
cars are driven on the road.

Nano overseas
The rise in petrol prices makes consumers around the world to look for a low cost car.
Tata seems to capture this trend and is looking forward to introduce Tata Nano beyond
Indian shores. One of the countries where Tata Nano is likely to make inroads is
Thailand, dubbed as the 'Detroit of Asia', due to its extensive vehicle manufacturing
activities in ASEAN region.
Thailand has introduced the 'Eco-Car' project, a framework laid by the government to
build green cars that are fuel efficient and cost effective. Vehicle manufacturers all over
the world are invited to submit plans for the Eco-car investment project in Thailand.
Various incentives have been provided for manufacturers of green cars in Thailand,
including exemption from corporate tax for up to eight years and duty exemption for
imported machinery. However, the investment should yield an output of 100,000 units by
the fifth year of production. Such initiative bodes well for Tata Nano. Tata is one of the
seven manufacturers that have submitted applications for the Eco-Car project and its
application has already been approved. Tata might use this plan to export to other
ASEAN countries through the ASEAN free trade area agreement (AFTA).

TATA MOTORS’ BIG PLANS

Tata Motors has decided to make some strategic changes. The first and foremost is that it
is entering into the combat vehicle manufacturing business. The other is that the company
is planning to sell some of its stake from its vehicle sales division. The auto company is
now going to make combat vehicles which are mine protected. MD Tata Motors (Indian
Operations) PM Telang informed that the aim of Tata Motors was to be present in every
level of defense sector's value chain. It is going to do this by consolidating its traditional
supply chains and entering into higher level of equipment manufacturing. Tata Motors
will be looking forward to form partnerships. The company already has its presence in
defense sector ever since 1985. Meanwhile, it is also eager to sell some stake in Tata
Motors Finance Ltd. While no partner has been finalized till now, latest developments
suggest that SBI my go ahead and buy stake. India's largest bank wants to have a unit for
giving loans to trucks and buses and this requirement can be fulfilled by having a share in
TMFL.

NEED FOR THE CHANGE AT TATA MOTORS

Change should not be done for the sake of change -- it's a strategy to accomplish some
overall goal. Usually organizational change is provoked by some major outside driving
force, e.g., substantial cuts in funding, address major new markets/clients, need for
dramatic increases in productivity/services, etc. Typically, organizations must undertake
organization-wide change to evolve to a different level in their life cycle, e.g., going from
a highly reactive, entrepreneurial organization to more stable and planned development.
Transition to a new chief executive can provoke organization-wide change when his or
her new and unique personality pervades the entire organization.

RELEVANCE OF THE MODELS OF

CHANGE
Kurt Lewin theorized that there are three stages to change:

Unfreezing
Old ideals and processes must be tossed aside so that new ones may be learned. Often,
getting rid of the old processes is just as difficult as learning new ones due to the power
of habits. Just as a teacher erases the old lessons off the chalkboard before beginning a
new lesson, so must a leader help to clear out the old practices before beginning the new.
During this part of the process you need to provide just a little bit of coaching as they are
unlearning not learning and a lot of cheerleading (emotional support) to break the old
habits.
Changing
The steps to the new ideals are learned by practicing:
Wh a t I h e a r , I f o r g e t .
Wh a t I s e e , I r ememb e r .
Wh a t I d o , I u n d e r s t a n d .
Although there will be confusion, overload and despair, there will also be hope,
discovery, and excitement. This period requires a lot of coaching as they are learning and
just a little bit of cheerleading due to the affect of Arousal Overloading.

Refreezing
The new processes are now intellectually and emotionally accepted. What has been
learned is now actually being practiced on the job. Just a little bit of coaching is required
and a lot of cheerleading is used to set up the next change process. . remember it is c o n t
i n u o u s process improvement!

CHANGE IN WORKFORCE AND CULTURE

1. Formulation of a clear strategic vision: In order to make a cultural change
effective a clear vision of the firm’s new strategy, shared values and behaviours is
needed. This vision provides the intention and direction for the culture change

2. Display Top-management commitment: It is very important to keep in

mind that culture change must be managed from the top of the organization, as
willingness to change of the senior management is an important indicator
(Cummings & Worley, 2005, page 490). The top of the organization should be
very much in favour of the change in order to actually implement the change
in the rest of the organization. De Caluwé & Vermaak (2004, p 9) provide a
framework with five different ways of thinking about change.
3. Model culture change at the highest level: In order to show that the
management team is in favour of the change, the change has to be notable at
first at this level. The behaviour of the management needs to symbolize the
kinds of values and behaviours that should be realized in the rest of the
company. It is important that the management shows the strengths of the
current culture as well, it must be made clear that the current organizational
does not need radical changes, but just a few adjustments.

4. Modify the organization to support organizational change: The fourth

step is to modify the organization to support organizational change.

5. Select and socialize newcomers and terminate deviants: A way to

implement a culture is to connect it to organizational membership, people can
be selected and terminate in terms of their fit with the new culture.

6. Develop ethical and legal sensitivity: Changes in culture can lead to

tensions between organizational and individual interests, which can result in
ethical and legal problems for practitioners. This is particularly relevant for
changes in employee integrity, control, equitable treatment and job security.
Change of culture in the organizations is very important and inevitable. Culture
innovations is bound to be because it entails introducing something new and
substantially different from what prevails in existing cultures. Cultural innovation is
bound to be more difficult than cultural maintenance. People often resist changes hence it
is the duty of the management to convince people that likely gain will outweigh the
losses. Besides institutionalization, deification is another process that tends to occur in
strongly developed organizational cultures. The organization itself may come to be
regarded as precious in itself, as a source of pride, and in some sense unique.
Organizational members begin to feel a strong bond with it that transcends material
returns given by the organization, and they begin to identify with in. The organization
turns into a sort of clan.

ROLE OF LEADERSHIP IN CHANGE

MANAGEMENT
To be an effective leader of an organization requires you to do five things:
 U nderstand and interpret the environment in which he operate
Develop winning strategies
Execute them brilliantly;
Measure the impact of your strategies followers. If you get results, people will
support you, systematically, adjusting strategies as often without caring too
much about how you got indicated.
Develop organizational, departmental; the world won't retain the support of
your followers’ team and personal capabilities.

BARRIERS TO CHANGE
The three greatest barriers to organizational change are most often the following.
1. Inadequate Culture-shift Planning. Most companies are good at planning
changes in reporting structure, work area placement, job responsibilities, and
administrative structure. Organizational charts are commonly revised again and again.
Timelines are established, benchmarks are set, transition teams are appointed, etc. Failure
to foresee and plan for resultant cultural change, however, is also common. When the
planning team is too narrowly defined or too focused on objective analysis and critical
thinking, it becomes too easy to lose sight of the fact that the planned change will affect
people. Even at work, people make many decisions on the basis of feelings and intuition.
When the feelings of employees are overlooked, the result is often deep resentment
because some unrecognized taboo or tradition has not been duly respected.

2. Lack of Employee Involvement. People have an inherent fear of change. In most

strategic organizational change, at least some employees will be asked to assume
different responsibilities or focus on different aspects of their knowledge or skill. The
greater the change a person is asked to make, the more pervasive that person's fear will
be. There will be fear of change. More important, however, there will be fear of failure in
the new role. Involving employees as soon as possible in the change effort, letting them
create as much of the change as is possible and practical is key to a successful change
effort. As employees understand the reasons for the change andhave an opportunity to
"try the change on for size" they more readily accept and support the change.

3. Flawed Communication Strategies. Ideal communication strategies in situations of

significant organizational change must attend to the message, the method of delivery, the
timing, and the importance of information shared with various parts of the organization.
Many leaders believe that if they tell people what they (the leaders) feel they need to
know about the change, then everyone will be on board and ready to move forward. In
reality, people need to understand why the change is being made, but more importantly,
how the change is likely to affect them. A big picture announcement from the CEO does
little to help people understand and accept change. People want to hear about change
from their direct supervisor. A strategy of engaging direct supervision and allowing them
to manage the communication process is the key to a successful change communication
plan.

PLANNING THE CHANGE AT TATA

MOTORS
Tata Motors look at his eight steps for leading change below.
Step One: Create Urgency
For change to happen, it helps if the whole company really wants it. Develop a sense of
urgency around the need for change. This may help you spark the initial motivation to get
things moving. This isn't simply a matter of showing people poor sales statistics or
talking about increased competition. Open an honest and convincing dialogue about
what's happening in the marketplace and with your competition. If many people start
talking about the change you propose, the urgency can build and feed on itself.
What to do is:
 Identify potential threats, and develop scenarios showing what could happen
in the future.
Examine opportunities that should be, or could be, exploited.
Start honest discussions, and give dynamic and convincing reasons to get
people talking and thinking.
Request support from customers, outside stakeholders and industry people to
strengthen your argument.

Step Two: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and visible
support from key people within your organization. Managing change isn't enough - one
has to lead it. It can find effective change leaders throughout an organization - they don't
necessarily follow the traditional company hierarchy. To lead change, one need to bring
together a coalition, or team, of influential people whose power comes from a variety of
sources, including job title, status, expertise, and political importance. Once formed,
“change coalition" needs to work as a team, continuing to build urgency and momentum
around the need for change.
What to do is:
Identify the true leaders in your organization.
Ask for an emotional commitment from these key people.
Work on team building within your change coalition.
Check your team for weak areas, and ensure that you have a good mix of
people from different departments and different levels within your company.

Step Three: Create a Vision for Change

When we first start thinking about change, there will probably be many great ideas and
solutions floating around. Link these concepts to an overall vision that people can grasp
easily and remember. A clear vision can help everyone understand why you're asking
them to do something. When people see for themselves what you're trying to achieve,
then the directives they're given tend to make more sense.
What to do is:
Determine the values that are central to the change.
Develop a short summary (one or two sentences) that captures what you "see"
as the future of your organization.
Create a strategy to execute that vision.
Ensure that your change coalition can describe the vision in five minutes or
less.
Practice your "vision speech" often.

Step Four: Communicate the Vision

What you do with your vision after you create it will determine your success. Your
message will probably have strong competition from other day-to-day
communications within the company, so you need to communicate it frequently and
powerfully, and embed it within everything that you do.
Don't just call special meetings to communicate your vision. Instead, talk about it
every chance you get. Use the vision daily to make decisions and solve problems. When
you keep it fresh on everyone's minds, they'll remember it and respond to it. It's also
important to "walk the talk." What you do is far more important – and believable - than
what you say. Demonstrate the kind of behaviour that you want from others.
What to do is:
Talk often about your change vision.
Openly and honestly address peoples' concerns and anxieties.
Apply your vision to all aspects of operations - from training to performance
reviews. Tie everything back to the vision.
Lead by example.

Step Five: Remove Obstacles

If we follow these steps and reach this point in the change process, we've been talking
about our vision and building buy-in from all levels of the organization. Hopefully, our
staffs want to get busy and achieve the benefits that you've been promoting. Put in place
the structure for change, and continually check for barriers to it. Removing obstacles can
empower the people you need to execute your vision, and it can help the change move
forward.
What to do is:
Identify, or hire, change leaders whose main roles are to deliver the change.
Look at your organizational structure, job descriptions, and performance and
compensation systems to ensure they're in line with your vision.
Recognize and reward people for making change happen.
Identify people who are resisting the change, and help them see what's
needed.
Take action to quickly remove barriers (human or otherwise).

Step Six: Create Short-term Wins

Nothing motivates more than success. Give a company a taste of victory early in the
change process. Within a short time frame (this could be a month or a year, depending on
the type of change), one want to have results that your staff can see. Without this, critics
and negative thinkers might hurt your progress.
Create short-term targets - not just one long-term goal. You want each smaller target to
be achievable, with little room for failure. Your change team may have to work very hard
to come up with these targets, but each "win" that you produce can further motivate the
entire staff.
What to do is:
Look for sure-fire projects that you can implement without help from any
strong critics of the change.
Don't choose early targets that are expensive. You want to be able to justify
the investment in each project.
Thoroughly analyze the potential pros and cons of your targets. If you don't
succeed with an early goal, it can hurt your entire change initiative.
Reward the people who help you meet the targets.

Step Seven: Build on the Change

Change projects fail because victory is declared too early. Real change runs deep. Quick
wins are only the beginning of what needs to be done to achieve long-term change.
Launching one new product using a new system is great. But if you can launch 10
products, that means the new system is working. To reach that 10th success, you need to
keep looking for improvements. Each success provides an opportunity to build on what
went right and identify what you can improve.
What to do is:
After every win, analyse what went right and what needs improving.
Set goals to continue building on the momentum you've achieved.
Learn about kaizen, the idea of continuous improvement.
Keep ideas fresh by bringing in new change agents and leaders for your
change coalition.

Step Eight: Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of your
organization. Your corporate culture often determines what gets done, so the values
behind your vision must show in day-to-day work. Make continuous efforts to ensure that
the change is seen in every aspect of your organization. This will help give that change a
solid place in your organization's culture. It's also important that your company's leaders
continue to support the change. This includes existing staff and new leaders who are
brought in. If you lose the support of these people, you might end up back where you
started.
What to do is:
Talk about progress every chance you get. Tell success stories about the
change process, and repeat other stories that you hear.
Include the change ideals and values when hiring and training new staff.
Publicly recognize key members of your original change coalition, and make
sure the rest of the staff - new and old - remembers their contributions.
Create plans to replace key leaders of change as they move on. This will help
ensure that their legacy is not lost or forgotten.

EMPLOYEES MOTIVATION TO ACCEPT

THE CHANGE
The employee motivation during change implies a tactical "quick fix" approach.
Whereas to achieve a peak performance from your people and in so doing, to create a
genuine source of competitive advantage demands a strategic approach that embraces
leadership style, corporate cultures and the supporting business and management
processes. At root this is all about the emotional dimension - specifically the emotional
commitment of your employees and achieving an alignment and maintaining the balance
between corporate performance and individual employee fulfilment. In practise this
means establishing what is important to your people, communicating to them what is
important to you and the organisation, and finding ways of meeting both their and your
goals. This is what lies at the heart of employee motivation techniques. There are 4
techniques to be taken care of for motivating employees in change
management:
1. Clarity in all areas- especially of the business needs for the change, of the
specifics of the change, the benefits of the change, and most importantly the
impacts of the change. Also, at an individual level ensuring that people know
precisely what is expected of them - i.e. you translate the vision into
actionable steps.
2. Communication – constant communication; two-way communication;
communication that explains clearly what is happening or not happening and
why, that listens actively and demonstrates to people that you have thought
through the impacts of the change on them, and that you are prepared to work
with them to achieve their buy-in and commitment to the change.
3. Consistency - in all aspects of the way in which you lead the change, manage
the delivery, handle the communication, and ensure the realisation of the
benefits.
4. Capability - constant attention to the management of the projects and
initiatives that are delivering the capabilities into your organisation that will
deliver the benefits.

EVALUATING THE CHANGE PROCESS

AT
TATA MOTORS
Evaluating the organizational change in culture, Tata Motors follow different
approaches such as, analysing the fundamental assumptions, investigating the cultural
gaps and managerial behaviour in the organization.
There are different models provided for investigating and analyzing the organizational
culture. But in our researches we applied the “Denison” model. This model is one of the
most comprehensive models that divide the organizational culture into four parts based
on two axels (degree of focus and degree of stability) On the basis of organizational
concentration It is possible to divide this model into two parts by horizontal dissection.
Cooperation and compatibility pay attention to organization internal dynamism, but they
don’t care about their relations with external environment. Yet adaptability and mission
consider organization’s connection with the external environment. It is also possible to
divide the model into two parts by vertical dissection. Involvement and partnership
enforce on organization’s capacity for flexibility and change, although compatibility and
mission enforce on stability and having a specific path. Regarding to researches these
four cultural characteristics have a positive influence on organization performance.
Characteristics have its own specifications that will be described below:

Adaptability: making the demand of market practical is called adaptability. Belief

and norm systems of the organization perform the related behavioral changes by
supporting organization’s opportunities and it will increase the organization’s chance for
survival, development and expansion with the help of perception, explanation and
rendition of environmental signals, and. There are three aspects of adaptability
considered in Denison model which affect the organization’s effectiveness. The First
aspect is called the ability of realization and reacting to the external environment.
Nowadays successful organizations are the ones which has a special emphasis on their
customers and competitor’s behaviors. Second aspect is the ability to reacting to internal
events without considering level, department, function and output. And the third aspect is
the capacity and ability to organize and reengineer processes and behavioral structures
which help the organization to adapt with new conditions. Without this ability the
organization will miss its effectiveness.
The standards for adaptability are:
Making the changes,
Customer focus,
Organizational learning.
Constancy: defines the values and systems which form a strong culture. Constancy
provides a central force for organizational solidarity and harmony. Organizations provide
constancy by developing a set of organizational systems that establishes an internal
management system on the basis of bilateral support of employees and employers. These
organizations have committed employees, core values, different ways to perform
business, tendency for promotion and an obvious set of rules that determine things musts
and mustn’t. Constancy creates a powerful organizational culture based on joint beliefs,
values and symbols which are reasonable and perceivable for the employees. Internal
control systems that are based on organization’s values are more effective tools in order
to reach integrity and coordination than external control systems that are on the basis of
rules.
Standards for this cultural characteristic are:
Integrity and coordination
Core values
Agreement.
Involvement: what we mean by involvement is to increase responsibility in
employees. According to organizational culture when employees are highly attached to
their work, they are encouraged to involve in performance and have
responsibilities. These organizations have informal, volunteer controls instead of
formal, obvious ones. Responsibility causes commitment and independency in
employees and improves employees’ decisions quality.
Standards of involvement are:
Empowerment
Capability development
Team orientation
Mission: defines a long term direction for the organization. Mission distinguishes
goals of the organization with defining social role and external objectives of the
organization. With the help of the direction and these distinct goals, mission specifies the
activities that should be performed by the employees. Considering the position where
organization is planned to reach, activities and strategies will be identified. Probability of
organization’s success will be increased by converging employees and the organization.
Standards of this section are:
Strategic direction and intent
Goals and objectives
Vision

CONCLUSION
Tata Nano achieves what most people deemed impossible through originality and
ingenuity. It is a no frills car that serves the needs of the general public and India's
deplorable road conditions and notorious traffic. In this sense, the production and launch
of Tata Nano can be called a revolution - not only to the consumers but also to industry
players. Other players are contemplating on their own versions of low cost alternatives as
a result of the overwhelming response from the Indian public and all over the world
during the pre-launching ceremony. Moreover, their skepticism is met with a surprise
upon seeing the model in action. The next step forward for Tata is to address the possible
concerns with regard to ownership in order for customers to grasp the value proposition
that Tata is trying to propagate. This includes dispelling all perceptions of shortcomings
normally associated with a low-cost car through vigorous testing on real roads using real
users. The basic rule of customer service still applies. Tata Nano should meet the
consumer's expectations by providing a reliable
and modestly safe vehicle to drive. The car, with its immense recognition gained even
before its launch, is expected to fulfil the dreams of common people.

STRATEGIES TO MANAGE CHANGE

PROCESS
There must be situational awareness so that the employees adapt such
organizational changes and get motivated to accept a change.
There must be supporting structure so that employees manage a change in a
organization easily and top level management people support him for that.
Strategy analysis must be done so that employee would aware about what
would be the change and what step must be taken to manage the change.
Training program must be there before the change exactly take place.
Proper communication must be there among the top level management and the
employees working in an organisation.
Career opportunities must be given to the employees as a non-financial
benefits so that they get motivated.

SUGGESTIONS
1. Feedback: This involves the awareness of oneself, others, group
processes and organizational dynamics. Awareness leads to change if the
feedback is not too threatening.

2. Awareness of the changing socio-cultural environment or

Dysfunctional current norms: This involves the awareness of the norms
influencing one’s behaviour. If there is a discrepancy between the outcome
of their present norms and the outcomes they want, people are motivate to
change.

3. Increased interaction and communication: Increased communication

leads to changes in attitude and behaviour, which does not happen when
there is no communication due to “tunnel vision” or “autism”
4. Confrontation: Confrontation involves the surfacing and examining of
differences in beliefs, feelings, attitudes, values or norms to remove
obstacles to effective communication.
5. Education: Education activities upgrade knowledge and concepts, beliefs
and attitudes and skills.

6. Participation: This outcome involves increasing the number of people

involved in problem solving, goal setting and generating new ideas.

7. Increased accountability: This involves the clarification of people’s

responsibilities and the and monitoring performance related to those
activities.

8. Increased energy and optimism: This involves activities that energize

and motivate people to aspire to new possibilities and to aspire to a future
that is more desirable.
REFERENCES
WEBSITES:
www.
 en.wikipedia.org/wiki/ Change _ management
www.
 documents.bmc.com/products/documents/98/29/89829/89829.pdf
www.scribd.com/doc/2876978/
 tatamotors siebelcasestudy
www.autofocusasia.com/
 management / tata _nano.htm
www.managementhelp.org/org_chng/org_chng.htm

www.12manage.com/i_co.html

www.en.wikipedia.org/wiki/
 Organization_development
www.alumni.caltech.edu/~rouda/T3_
 OD .html
www.iveybusinessjournal.com/view_article.asp?intArticle_ID=532
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www.trainingreference.co.uk
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www.work911.com/articles/leadchange.htm
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www.managementhelp.org/org_chng/org_chng.htm
