Change Management : India 's Largest Automobile Company

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Change management: Change management is characterized as planned approach towards switching individuals, teams and organizations from an existing position to a future position to get the most out of the collective benefits for all people involved and reduce the threat of failure upon executing the change. It is a process at some point within an organization when changes are put into practice in a predefined manner with practical modifications. Change is presented as an objective fact that happens to the organization, either as a consequence of external drivers, or as an outcome of management choice (Hortho, 2008). Change processes are driven by several strategic considerations (schilling and steensma, 2001), including the need for more…show more content…
When it comes to community development and corporate service responsibility Tata motors is actively engaged in touching the live of more than a million citizens as its as signatory to United Nations Global Compact. Turnaround in TATA Motors: Tata motors came across a major changeover in 2001. The commercial-vehicle market in India shrank by more than 40 percent (Eravandi, 2009). Everybody in the organization shriveled at the time when Tata motors lost 5 billion rupees in 2001 which was a massive loss in company’s history. At this time of changeover the company made efforts to work according to customer expectations, innovation, and regulations governing safety and environmental protection and continual competitiveness in terms of cost (Eravandi, 2009). This was the stage where Tata motors had to come up with critical assessments and make decisions. The company was eager to take risks and bring critical changes by thoroughly transfixing itself ahead. Change Management in Tata Motors: To overcome the loss, Tata Motors came up with recovery strategy which had three phases. The first step was to reduce the cost, second step was to be strengthening their footprint in India, and third step was to grow themselves by expanding their business globally. 1. Cost-Cutting: The key objective was to move to a system of market pricing and to reduce their break-even point, both of which called
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