Layout of Our
Layout of Our
Layout of Our
Big Picture:
* Input:Diverse
* Goal: Business Objective
* Diversity is present in org, so i use this diversity, unity of effort, interdependence to make
the best use of this diversity and reach our business objective by introducing org. Design
(Structure, process, culture)
Slide 2:
Environment:
Change in demand of steel due to
1. Competition: Accusing Cheap Steel dumping by Chinese companies as reason for job
loss
https://www.industryweek.com/the-economy/trade/article/21966270/tata-steel-
blames-china-for-1200-british-jobs-cuts
https://www.forbes.com/forbes/2010/0510/global-2000-10-maoists-naxalites-tata-steel-india-
dirty-war.html#68b993afc89a
3. Social integration is important: The TSK(Tata Steel Kalinganagar, Odisha) project
was delayed due to local opposition and there was loss of lives due to skirmishes
between Locals and authorities.
https://timesofindia.indiatimes.com/city/bhubaneswar/kalinganagar-police-firing-victims-
remembered/articleshow/56305975.cms
https://www.business-standard.com/article/companies/naxal-hit-bastar-s-farmers-to-get-back-
land-acquired-for-tata-steel-project-118122400693_1.html
4. Environmental regulations: Fugitive Emission < 150 ppm, Zero Effluent Discharge
TASK ENV:
Interdependence:
Sequential interdependence:
Steelmaking is a sequential process. There is a provision of buffer for a few days, but
Downstream plants suffer due to problems (breakdowns, unplanned shutdowns) in upstream
plants
3. Reciprocal Interdependence:
Timely maintenance ensure that plant runs smoothly and achieves annual target production,
maintaining quality parameters. It can happen when there is a synergy between operations
and maintenance teams.
Slide 4:
Hybrid:
Production departments follow a divisional structure with the maintenance and HRM teams
linked to their functional departments. The feedback of the customer department manager is
important in the performance evaluation of maintenance and HRM employees.
Slide 5:
Strategy
Value Creation
1. Efficient/ Innovative/ Highly responsive/ High Quality
Business Level:
Tata Steel is a cost leader as it has low raw material costs due to captive iron ore mines.
The lease of mines is ending in 2030. It will be very challenging to maintain the cost leader
position after the auction of iron ore mines.
Levels of Strategy at interdependent levels so have to choose 1:
Multi-domestic Strategy
- Tata Steel has steel plants in multiple countries with the plants producing steel
catering to the needs of the local market in Europe and Southeast Asia
Slide 6:
Responsiveness vs Standardisation
Size of Corporate head office
Parenting vs portfolio
- The parenting strategy is followed by Tata Sons
Slide 7:
Slide 8:
Organisation conflict, Power and Politics
How is company reducing politics?
How is power struggle in org?
Conflict resolution process?
Slide 9:
Control systems in the organization?
How to increase convergence?
What are the incentives/penalties?
Levers to do culture control
Signal/Norm/rituals
Leader behaviour
Recruitment/Selection
Socialisation process
Process control in which dept and culture control in which?
Slide 10:
Make(organisation) vs buy(market) decision
- Focused on Steel business
- IT services outsourced to IBM,
Outsourcing anything? Why? Why not?
- Maintenance work is entirely outsourced to contract employees through
Vendor partners with company employees acting as supervisors
- Hugh cost savings, decrease in liability for Tata Steel
Slide 11:
is innovation difficult in large organisation like yours?
Structural Feature that promotes invention in your org?
Cultural Feature that promotes invention in your org?
Slide 12:
Decision making
Slide 13: