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Slide 1:

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

To selling Steel in China, Tata Steel has completed a full circle.


https://www.freepressjournal.in/fpj-initiatives/from-dumping-steel-three-four-
yearsback-china-now-imports-it-tata-steel

2. Political Stability is important as majority plants and mines are surrounded by


Naxalites
Take Naxal Spread in India Image reference from article -The spread of the Maoist insurgency.

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:

1. Production – Daily Target, quality control, zero unplanned plant stoppages


2. Safety - Zero Safety Violations -> Zero unsafe incidents -> Zero Accidents -> Zero
LTI(Loss Time Injury – injury which stops one or more worker from performing the
job) -> Zero Fatality
3. Resource allocation for job execution, planning and scheduling of future activities like
maintenance shutdowns, improvement projects, spares & services ordering

Analyse the env: 


 Steel Industry is generally Stable-Complex.
- Stable because the Steel Making process is standardized and well-known to
all, there is little scope to gain operational advantage.
- Most OEMs are common suppliers all the steel companies
- Complex because there are multiple factors like sourcing of raw materials
from various location, multiples stages of steel production, the dependency on
the railways, transporters at various points in the supply chain, statutory
compliances and norms, safety issues
- Mechanistic-Differentiated culture works best!

 Buffering – Stock of raw materials and finished products is maintained at locations to


sustain demand and supply shocks for a few weeks.
 Loose Coupling – Most subsidiaries function as an independent business unit with
guidance from Tata Steel as and when necessary
Slide 3:
Structure: Formalisation – Low(Operations), High(Planning & Strategy)
Centralisation – Low(Operations), High(Planning & Strategy)
Specialisation - High(Operations), Low(Planning & Strategy)

Variety vs. Analysability


Low task Variety – Engineering, most problems are solved using standard methods,
instruction manuals, SOPs(Standard Operating Procedures), reference books

Interdependence:

Following interdependences exist in the plant,


Pooled Interdependence: Central IT services for problem resolution and implementation of
new technologies(one IT). Central Technology group to deal with complicated technical
problems (one SSTG). Central Maintenance Planning plans maintenance shutdowns for all
plants.

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:

 Risk Mitigation Strategies


 Resource dependency
 Size impact on organization efficiency
 Which stage is the organization is in the organisational Lifecycle?

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

Safeguard mechanism against opportunistic behaviour?

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

1. What are the formal proeess of your org?


1. Democrative process or non?
2. Informal politics?
3. Power play, opportunistic behaviour.?

Change management example from your org

Process model of org. Transformation of that change. Eg: Expansion/covid anything

Slide 13:

Hr policies that promote Employee satisfaction and retention.


Event training recruitment and employee welfare

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