TATA STEEL CHANGE MANAGEMENT - CASE STUDY

A

abhishreshthaa

Abhijeet S
<h3>Human Resource, Change Management Case Study sample of TATA STEEL</h3>

TATA STEEL:


  • Ranked as in a field of 12 of the best Steel companies globally -- World Steel Dynamics


  • Modestly claims to be among the five lowest cost producers of steel.

3 - Cs Excellence Model


Change - Mutate & improve continuously


Cost - Ruthless cutting of wasteful exp.


Customer - Strive relentlessly to build relationships and influence consumption



Change Drivers:


  • Changes are carried out in a specific direction to achieve certain objectives.

  • Strategic Objectives of TATA Steel:

  • Create wealth


  • Create a culture of continuous learning and change



  • Achieve world class status in services and products



  • Reach the position of the most cost competitive steel producer


  • Establish industry leadership


COST REDUCTION

  • Cost is a sustainable competitive advantage.

  • Cost was checked in two major areas


  • 1. Raw Material

  • 2. Labour Cost

Raw Material Cost

  • Improved sinsters to use not only iron ore but also ‘blue dust’ found in mines thereby increasing the life of mines


  • Developing the technology of using medium-coking coal available in India rather than good quality coking coal which had to be imported, through a R&D effort of 10 years.


Cost Pertaining To Manpower

  • 78,000 employees in late 80s

  • Started chipping away workforce by few thousands every year.

  • The process still continues and the optimum workforce number keeps evolving.

  • Resentment among workers and unions

MANAGING THE UNIONS

  • Created awareness for the upcoming change by giving examples to the unions.


  • Sent some union leaders to South-East Asia and Japan to see the high levels of productivity.


  • Message given out was ‘Better productivity and better safety’ is beneficial to both management and workers.


  • All this could be achieved by being open and transparent to the unions and treating them well.


SPREADING THE PERFORMANCE CULTURE

  • Started by installing a new CRM, fencing it and calling it new plant

  • People selected to work had different layers than others, and had profit sharing type bonus.

  • Within 2 to 3 years others also started asking for similar schemes.

  • Unions realize that it better to have few people earning better than many earning small amounts.


QUALITY STANDARDS

  • Adopted many good quality practices like benchmarking, value engineering, six sigma, ISO 9000 etc.

  • Won JRDQV award in 2001

  • Enticed the workers to be quality conscious by
  • . Giving emblems to the members of quality circles.

  • . Recognizing the man of the month.

  • . Convinced the unions by contributing around

  • Rs.3-4 crore to improve the quality of wmployees by getting their quarters repaired.

Click here to Download Free Case Study Projects-http://www.managementparadise.com/mba-projects/free-case-study-download/
 
Last edited by a moderator:
abhishreshthaa said:
<h3>Human Resource, Change Management Case Study sample of TATA STEEL</h3>

TATA STEEL:


  • Ranked as in a field of 12 of the best Steel companies globally -- World Steel Dynamics


  • Modestly claims to be among the five lowest cost producers of steel.

3 - Cs Excellence Model


Change - Mutate & improve continuously


Cost - Ruthless cutting of wasteful exp.


Customer - Strive relentlessly to build relationships and influence consumption



Change Drivers:


  • Changes are carried out in a specific direction to achieve certain objectives.

  • Strategic Objectives of TATA Steel:

  • Create wealth


  • Create a culture of continuous learning and change



  • Achieve world class status in services and products



  • Reach the position of the most cost competitive steel producer


  • Establish industry leadership


COST REDUCTION

  • Cost is a sustainable competitive advantage.

  • Cost was checked in two major areas


  • 1. Raw Material

  • 2. Labour Cost

Raw Material Cost

  • Improved sinsters to use not only iron ore but also ‘blue dust’ found in mines thereby increasing the life of mines


  • Developing the technology of using medium-coking coal available in India rather than good quality coking coal which had to be imported, through a R&D effort of 10 years.


Cost Pertaining To Manpower

  • 78,000 employees in late 80s

  • Started chipping away workforce by few thousands every year.

  • The process still continues and the optimum workforce number keeps evolving.

  • Resentment among workers and unions

MANAGING THE UNIONS

  • Created awareness for the upcoming change by giving examples to the unions.


  • Sent some union leaders to South-East Asia and Japan to see the high levels of productivity.


  • Message given out was ‘Better productivity and better safety’ is beneficial to both management and workers.


  • All this could be achieved by being open and transparent to the unions and treating them well.


SPREADING THE PERFORMANCE CULTURE

  • Started by installing a new CRM, fencing it and calling it new plant

  • People selected to work had different layers than others, and had profit sharing type bonus.

  • Within 2 to 3 years others also started asking for similar schemes.

  • Unions realize that it better to have few people earning better than many earning small amounts.


QUALITY STANDARDS

  • Adopted many good quality practices like benchmarking, value engineering, six sigma, ISO 9000 etc.

  • Won JRDQV award in 2001

  • Enticed the workers to be quality conscious by
  • . Giving emblems to the members of quality circles.

  • . Recognizing the man of the month.

  • . Convinced the unions by contributing around

  • Rs.3-4 crore to improve the quality of wmployees by getting their quarters repaired.

Click here to Download Free Case Study Projects-Download Free Case Studies | Free Case Study Documents
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Hey abhi, thanks for letting us know about that much in a very nice way about the TATA Steel industry. Well, i have got a case study of TATA Steel and thought that i should share it. So i am uploading a pdf file of a case study of TATA Steel, please check it and hope it may be useful for you guys.
 

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