Tata Motors' Sanand plant now part of its OE programme


Tata Motors' forex losses have raised a red flag on Indian firms

  Tata Motors Sanand plant has been made a part of the firm's new Organisational Effectiveness (OE) programme, which is a major transformational human resource drive by the company to become a leaner and agiler organisation.  


The company said, "A detailed study on how to improve ‘speed, simplicity and agility’ was conducted by an external agency and the recommendations have been examined in detail by the Executive Committee (ExCom) of Tata Motors." 

Through this exercise, Tata Motors is aiming to become a lean, agile organisation, by empowering its business units with clear accountability, strengthening functional leadership and oversight, ensuring faster and effective decision making, and improving customer focus. There will be five new levels of management below the ExCom. Some functions and roles have been realigned and some new functions have been created. This new organisation structure has come into effect from April 1, 2017.

On compensation packages, the company said that it felt to stay competitive, it is critical that while the structure, roles and candidates get aligned, the compensation needs to be based on the market reference. "With the concept of ‘Total Target Income (TTI)’, Tata Motors is introducing salary bands at the different levels in the new structure. To reward high performance and individual growth, the new structure will allow two types of development: lateral movement within one level and vertical promotion from one level to the next," the company statement read. The new compensation and benefits package for the different levels/salary bands will be introduced combined with the FY17-18 salary review and details will be provided to the individuals by end June. 

The Sanand plant is one of the youngest plants of Tata Motors and is currently making two new generations cars, Tiago and Tigor. The plant is running full steam and aims to achieve full capacity utilisation in near future, the company claimed. 

On Thursday, the company officially signed the long-term wage settlement (LTS) with the Tata Motors Sanand Union. Keeping in mind the competitive wage structure and benefits for workers, the agreement was signed for a period of five years, from October 2015 to September 2020. 

As for white-collar employees, Sanand has a younger employee base with the average age being 29 years. Post OE programmes, employees at Sanand have been assigned clear roles and responsibilities keeping the new PV Strategy in mind. 

After conducting intense and extensive workshops for the last couple of months, the Executive Committee of Tata Motors has finalised and recently announced the new management levels from Level 1 to Level 5. Besides the 5 levels of managerial roles (roles that have teams reporting to them), Tata Motors has also identified and placed colleagues who are contributors in an individual capacity (functional experts or specialists). Given the significant overlap between managerial positions and individual contributors in terms of “job value”, individual contributors have also been assessed as equivalent to Level 4 and Level 5. As a consequence, all individual contributors will be referred to as ‘IC4, IC5 or IC6. As such, IC4 and IC5 are comparable in all aspects including compensation and policies with the corresponding L4 and L5 management positions.