RVS INSTITUTE OF MANAGEMENT

STUDIES AND RESEARCH

A MINI PROJECT

ON HUMAN RESOURSE MANAGEMENT

( TOPIC : HR Practices in TATA Groups )

Submitted to, submitted by,Ms.juliet mam Likhin Shyam(Leader) Deepu Aloshy Vishnu Badusha

Dhanas V Haridas

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ACKNOWLEDGEMENT

We express our sincere gratitude to Prof. Ms.juliete mam, Dept. of management of studies and research, RVS IMSR, Bharathiyar University, India, for the stimulating guidance, continuous encouragement and supervision throughout the course of present work.

Signature(s) of Students,

Dhanas: Likhin :

Deepu : Aloshy:

CERTIFICATE

I hereby certify that the work which is being presented in the MBA. Mini project entitled “HR practices of TATA Groups ”, in partial fulfillment of the requirements for the award of the professional course and submitted to the Department of management studies and research is an authentic record of our own work carried out under the supervision of ms.juliete mam

Signature of Student (S)

DHANAS : DEEPU :

ALOSHY : LIKHIN :

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TABLE OF CONTENTS

Page no:

Acknowledgement 2

Certificates 2

Table of contents 3

Company Profile 4

Organization Structure 6

HR Practices of TATA 7

Training and Development 12

Employee Safety and Security 15

Compliance 24

COMPANY PROFILE

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“A promise is promise and I kept my promise”- this is the historical statement which Mr. RATAN

Tata Group is an Indian Multinational corporation conglomerate company headquartered in Mumbai, Maharashtra, India. It encompasses seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over 100 operating companies with each of them operating independently. Out of them 32 are publicly listed. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The combined market capitalization of all the 32 listed Tata companies was INR 8.4 Trillion ($ 141.27 billion) as of July 2014. Tata receives more than 58% of its revenue from outside India.

The Tata Group is owned primarily by various charitable trusts (established by Jamsetji Tata's sons at his behest) that maintain a majority stake in the holding company. The current chairman of the Tata group is Cyrus Pallonji Mistry, who took over

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from Ratan Tata in 2012. Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group. About 66% of the Equity (finance) of Tata Sons is held by philanthropic trusts endowed by members of the Tata family.

The Tata Group and its companies & enterprises is perceived to be India's best-known global brand within and outside the country as per an ASSOCHAM survey. The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality researches, educational and cultural institutes in India. The group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activities

ORGANIZATION STRUCTURE

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HR PRACTICES OF TATA

What is human resource management?

It is the procurement, development, compensation, integration and maintenance of personnel of an organization for the purpose of contributing towards the accomplishment of the organizations goals and objectives

What do you mean by HR practices of a company?

The HR practices of a company should have a definite through policies…. And they should know how to outsource the human resource of a company

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Tata Motors has aspirations for a future that will be more

global and more competitive, where customer expectations will

be quite different from what we have seen all these years. It is

a future where our employee demographics will be much

altered from what it is now?

In late 2010 we articulated a five-year human capital strategy

for our company. It is not an HR function strategy but a human

capital strategy, and it has been co-created and coowned by

the leadership. There are near- and long-term agendas. The

past 12 months have not been a particularly As a part of its

vision for transformation, Tata Motors has articulated a human

capital strategy that sets a five-year road map for the

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company’s HR agenda. Speaking with Sangeeta Menon, the

company’s chief human resources officer, Prabir Jha, looks back

at the company’s HR journey thus far and spells out the

challenges of the future. ‘Employees are our capital and our job

is to grow that’ COVER STORY April 2013 n Tata Review 11 easy

period for the company. So, how we manage costs, productivity

and talent is going to be the near-term HR challenge. The long-

term agenda will be different, given the context of the new

culture that we have envisioned. We have reframed the vision

and mission for Tata Motors and defined the kind of culture we

need to create given the new challenges. Building that culture

is easier said than done because it means that all HR sub-

systems must be reoriented to be in line with the new culture.

Culture reinvention along the ‘Aces’ path (accountability,

customer, excellence and speed) is going to be an HR priority

and it will have a huge change management component.

Another focus area is managing talent and leadership. A

company’s success eventually depends on talent across all

levels, with the right skills, the right engagement and the right

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kind of diversity. How is the human ‘capital’ approach different

from the traditional human resources approach? Employees are

our capital and our job is to grow that capital. The term human

capital signifies that it is not just the HR function’s job to

manage this resource, but it is the leadership’s job as well. For

very long people in many companies have erroneously believed

that human asset management is part of the HR function’s

agenda.

But the truth is that while human capital strategy is enabled

and facilitated by the HR function, it is actually owned by

leadership and management across levels. HR is no doubt the

functional expert, but the deployment ultimately lies in the

hands of line managers. The so-called gap between line

managers and HR must end. One cannot be a great line

manager unless one is a great people manager. That’s why the

shift from an HR function strategy to a human capital strategy.

A lot of our HR processes and systems are being revisited

towards this end. Building positive recognition for our Aces

culture rests on our belief in positive psychology. Our ‘Pact’

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(performance and coaching tool) initiative is anchored in the

philosophy that managers must move away from thinking of

themselves as bosses to thinking of themselves as coaches. We

have workshops and simulations to make sure that line

managers start embracing this approach. The new

individualized compensation policy puts a lot of responsibility in

the hands of line managers. A significant part of our

performance measurement, talent management and

assessment criteria today are about using hardwired HR

processes to support what is really a soft cultural transition.

Finally, we have built high-level branding around various HR

interventions to ensure excitement, passion and ownership.

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TRAINING AND DEVELOPMENT

New candidates who join an organization are given training. This training familiarizes them with the organizational mission, vision, rules and regulations and the working conditions.

The existing employees are trained to refresh and enhance their knowledge.

If any updates take place in technology, training is given to cope up with those changes. For instance, purchasing new equipment, changes in technique of production, computer impartment. The employees are trained about use of new equipment and work methods.

When promotion and career growth becomes important training is given so that employees are prepared to share the responsibilities of the higher level job

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Grooming the managers of today into the leaders of tomorrow that's the broad objective of the Tata group's leadership development programs and training processes.

The group's high-value, superior-quality training interventions are targeted at maximizing the potential of its pool of managers. This is done by encouraging their cross-functional exposure and by making cross-company mobility an integral aspect of all leadership development efforts.

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The Tata group's commitment to enhance the knowledge and leadership quotient of its people has resulted in the establishment of various Development and Training Programs such as TAS and TMTC.

Set up by JRD Tata in 1959 with the mission of creating and grooming leaders for the future.

It aims to provide training to high performers within the group and act as a catalyst of change for Tata executives.

OBJECTIVES OF TATA TRAINING CENTRE

Improvement of organizational performance through dissemination of the latest knowledge and skills among practicing managers.

Facilitation of attitudinal and behavioral changes

Facilitation of solutions for organizational issues

Development of learning organizations

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Training methodology

Offering around 250 programmes a year, conducted by in house senior faculty from academics and business, supported by experts from the best of Indian and international B schools.

It uses over 120 external faculty, from the world’s premier

institutions and universities, including IIMs, Harvard, Michigan, Wharton, Kellogg, NUS and Centre for Creative Leadership.

TMTC started its e-learning programs in 2009.Every year, more than 4000 Tata Managers and Leaders go through the training programs.

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Major practice areas include:

Finance, Ethics Leadership and Organization Markets and Customers Strategy and Innovation

Leadership development programme include:

Tata Group Strategic Leadership seminar Tata Group Executive Leadership seminar Tata Group e-Merging Leaders seminar

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EMPLOYEE SAFETY AND SECURITY

Safety is of paramount importance to the Company. All

employees at Tata Motors are provided with safety training as

part of the induction programme. The safety induction

programme is also a critical requirement for contract workforce

before they are inducted into the system. The Company has a

structured safety training agenda on an on-going basis to build

a culture of safety across its workforce.

The Company believes in continual learning of its employees

and has institutionalized a continual learning model for skill up

gradation, especially at the shop-floor level. The learning and

development needs of management cadre employees are met

through the Company’s L&D structure which includes various

training delivery mechanisms.

The Tata Motors Group employs over 59,000 people. Our

people are as diverse as our organisation, because they come

from various nationalities and ethnicities, have a wide range of

skill sets, knowledge and experience levels. This diversity

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facilitates debate, dialogue and fresh perspectives, and ingrains

a lateral thinking mindset across the organisation.

Tata Motors believes in

a progressive people culture. We ensure that a judicious mix of

people is maintained in our workforce. This is achieved through

hiring multi-skilled people both from within the automobile

industry and from other sectors. In addition, a regular and

consistent recruitment programme at engineering and

management institutes ensures a steady stream of high quality

people getting inducted to fuel the growth plans. We also have

ongoing partnerships with Industrial Training Institutes, besides

our own professional training centres, to recruit shop-floor

workforce.

A clearly defined HR strategy

is based on the premise that people drive annual performance,

(a short-term goal), and also strengthen long-term

organisational objectives. Programmes like mini-assessments

and the Fast Track Selection Scheme (FTSS) ensure that talent is

spotted early and given an opportunity to mature into leaders.

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Capability development,

spearheaded by the Tata Motors Academy, has enabled

knowledge-sharing through initiatives, such as Learning

Management Systems (LMS) and iTech. The former allows

employees to take ownership of knowledge accretion, while

the latter provides a platform for senior management to share

their expertise.

Enablers, such as the 'One Tata Motors' culture, leverage

interdepartmental synergies. Therefore, greater opportunities

to learn from and contribute to the organisation are created.

Combined with a rearticulated compensation philosophy and

reworked variable pay plan, these initiatives ensure that Tata

Motors remains performance-oriented and talent-driven.

To drive and support our

business growth, we have increased our total workforce to

nearly 23,000 people at Jaguar Land Rover. We recruited over

6,200 Salaried, Hourly and Agency workers during the course of

the year (including the highest ever intake of over 330 graduate

trainees). Jaguar Land Rover is recognised as a preferred

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employer in the UK. Increasing numbers of International Service

assignments have commenced to support global operations,

and a new National Sales Company has been established in

China.

We work hard to retain our

talented staff, and during the year our employee turnover rate

remained low at 1.8% for the salaried population and 0.9% for

the hourly population. Relationships with employees and their

representatives remain positive and constructive, with no

strikes. The 2011-12 Employee Engagement Survey was

extended to all hourly paid employees for the first time this

year, and employee satisfaction rates for salaried employees

rose to an all-time high of 65%, from 57% in the previous year.

An extended working week was introduced, with 58% of

salaried staff opting to extend their working hours.

Human resources planning is a process that identifies current

and future human resources needs for an organization to

achieve its goals. Human resources planning should serve as a

link between human resources management and the overall

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strategic plan of an organization. Aging worker populations in

most western countries and growing demands for qualified

workers in developing economies have underscored the

importance of effective Human Resources Planning.

As defined by Bulla and Scott, human resource planning is ‘the

process for ensuring that the human resource requirements of

an organization are identified and plans are made for satisfying

those requirements’. Reilly defined workforce planning as: ‘A

process in which an organization attempts to estimate the

demand for labour and evaluate the size, nature and sources of

supply which will be required to meet the demand. Human

resource planning includes creating an employer brand,

retention strategy, absence management strategy, flexibility

strategy, talent management strategy.

Strategic HRM defines the

organization’s intentions and plans on how its business goals

should be achieved through people. It is based on three

propositions: first, that human capital is a major source of

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competitive advantage; second, that it is people who

implement the strategic plan; and, third, that a systematic

approach should be adapted to defining where the organization

wants to go and how it should get there. Strategic HRM is a

process that involves the use of overarching approaches to the

development of HR strategies, which are integrated vertically

with the business strategy and horizontally with another.

These strategies define intentions and

plans related to overall organizational considerations, such as

organizational effectiveness, and to more specific aspects of

people management, such as resourcing, learning and

development, reward and employee relations.

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COMPLIANCE IN TATA MOTORS

The Company expects all Directors to exercise good judgment, to ensure the interests, safety and welfare of customers, employees, and other stakeholders and to maintain a cooperative, efficient, positive, harmonious and productive work environment and business organization. The Directors while discharging duties of their office must act honestly and with due diligence. They are expected to act with that amount of utmost care and prudence, which an ordinary person is expected to take in his/her own business. These standards need to be applied while working in the premises of the Company, at offsite locations where the business is being conducted whether in India or abroad, at Company-sponsored business and social events, or at any other place where they act as representatives of the Company

Adherence to the highest standards of honest and ethical conduct, including proper and ethical procedures in dealing with actual or apparent conflicts of interest between personal and professional relationships.

Full, fair, accurate, timely and meaningful disclosures in the periodic reports required to be filed by the Company

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with government and regulatory agencies .Compliance with applicable laws, rules and regulations.

To address misuse or misapplication of the Company's assets and resources

The highest level of confidentiality and fair dealing within and outside the Company

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CORPORATE GOVERNANCE OF TATA WITH CERTAIN RULES

In TATA the corporate governance is managed very well with certain rules which are given below and there are some people assigned to address the issue, so overall the corporate governance in TATA is in very sound position as their disclosures during annual report or quarterly report and very clear to the share-holders and investors also, provided their codes of ethics are also very strong.

1. Any employee/business associate who becomes aware of a suspected wrongful conduct is encouraged to send his/her observations/concrete facts to the Direct Touch Team either through phone or written communication complete with related evidence (to the extent possible) without fear of reprisal or retaliation of any kind.

2. The information on suspected wrongful conduct is such information which the Employees/business associates in good faith, believe, evidences:

A violation of any law or regulation, including but not limited to corruption, bribery, theft, fraud, coercion and willful omission

Pass back of Commissions/benefits or conflict of interest

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Procurement frauds

Mismanagement, Gross wastage or misappropriation of company funds/assets

Manipulation of Company data/records

Stealing cash/company assets; leaking confidential or proprietary information

Unofficial use of Company’s material/human assets

Activities violating Company policies including Code of Ethics and Conduct

A substantial and specific danger to public health and safety

An abuse of authority

An act of discrimination or sexual harassment

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THE CODE OF ETHICS IN TATA MOTORS

Commitment to ethical professional conduct is a MUST for every employee at TATA- in all of its businesses/ units/ subsidiaries. The code is intended to serve as a basis for ethical decision making in the conduct of professional work. Contribute to society and human well-being this principle concerning the quality of life of all people affirms an obligation to protect fundamental human rights and to respect the diversity of all cultures. So employee in TATA attempts to ensure that the products of their efforts will be used in socially responsible ways, will meet social needs and will avoid harmful effects to health and welfare of others. In addition to a safe social environment, human well-being includes a safe natural environment. Therefore, all who are accountable for the design, development, manufacture and promotion of TATA products, must be alert to, and make others aware of, any potential damage to the local or global environment. Avoid harm to others "Harm" means injury or negative consequences, such as loss of property, property damage or unwanted health and environmental impacts. This principle prohibits use of men, material and technology in ways that result in harm to our consumers, employees and the general public. Well-intended actions, including those that accomplish assigned duties, may

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lead to harm unexpectedly. In such an event, the responsible person or persons are obligated to undo or mitigate the negative consequences as much as possible.

Be honest and trustworthy:

Honesty is an essential component of trust. Without trust an organization cannot function effectively. So they are expected not to make deliberately false or deceptive claims about their products/systems, but instead provide full disclosure of all pertinent limitations and problems be fair and take action not to discriminate. The values of equality, tolerance, respect for others, and the principles of equal justice govern this imperative. Discrimination on the basis of race, sex, religion, age, disability, national origin, or other such factors is an explicit violation of this code. Practice integrity in our inter-personal relationships. In their relationships with colleagues, all should treat them with respect and in good faith; in the same way we ourselves would expect them to treat us. The principle to be adopted to guard against loose talk or in its worst form- character assassination- is not to say anything behind one’s back and never utter something, which cannot be put in writing. Honor confidentiality the principle of honesty extends to issues of confidentiality of information. The ethical concern

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is to respect all obligations of confidentiality to all stakeholders unless discharged from such obligations by requirements of the law or other principles of this code

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