Case Study

on
TATA : The Most Admired Brand
 Objectives
• To discuss the best practices and HR initiatives
adopted by the group.

• To discuss how the companies can use good

HR practices to build a successful brand.
 Growth of Tata Group
• 1991 - restructuring process across the Tata
Group.
• 1993 – Tata Motors and Tata Steel accounted
for more than 50% of the group sales.
• 1995 - Tata Brand Equity Scheme : Building a
single strong entity
• Stake of Tata Sons in the group companies
increased from an average of about 1.7% to a
minimum of 26%.
• 1998 - A common logo was introduced
 Growth of Tata Group
• Jamshedji Tata wanted to provide more than
just a mere job to his employees
• Tatas were pioneers in the area of employee
welfare
• Ranked second in the list of most admired
companies in a survey conducted among
students of leading management schools in
India
• 1994 – Tata Steel annual capacity reaches four
million tonnes .
• 1996 - Tatas ventured into the telecom
sectors, through TataTele services.
• Two decision-making bodies : The Global
Executive office (GEO) and Global Corporate
Center (GCC), were constituted.
 Problems in Tata Group
• 2000 - The group companies had not
performed to the expected level.
• BSE Sensex appreciated 46% between January
1996 and December 2000, while the Tata group
index appreciated only 7% during the same
period.
• .The group profit margins had dropped from
about 12 % in 1995-1996 to 8% as of 1999-
2000 and return on invested capital fell from
about 18% to 11%.
 Reasons for the Fall
• Friction between the GEO, the Business
Review Committee (BRCs) and the
management and board of the group
companies
• Companies focused on turnover instead of
profitability.
• There were a number of HR issues also.
• Managers in the group were also perceived to
lack general management expertise
 HR REVAMP
• Group HR function was to be divided into three
divisions, each headed by a Vice President .
• The Tata group sought to build an integrated HR
system, which focused on the Tata
• Under the new HR framework managers could
aspire to move upwards from work level F to
work level A, over a period of time.
• Employee compensation was to be driven partly
by market trends and partly by the group's needs
 Leadership Development program

• Managers in the group evaluated on the basis

of a matrix that mapped their Emotional
Intelligence with their Experience gained over
the years.
 Human Resource mandate
• Attract Good People, Retain Better People,
Advance best people
– Remuneration Policy,
– Potential Assessment,
– Performance Management,
– Work Levels,
– Career Development.
The Framework
Balanced Scorecard
 Group Core Values
Group has five core values:
• Integrity: Conducting business fairly, honesty and
transparency
• Excellence: Achieving the highest possible standards
• Understanding: caring, show respect, compassion and
humanity for our colleagues and customers around the
world
• Unity: Working cohesively in group and with customers
• Responsibility: What comes from people should go back
to people.