OD - Individual Assignment

8/3/2019 OD - Individual Assignment

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A Dissertation submitted in partialfulfilment of the requirement for thePostgraduate Certificate in HumanResource Management Programme(PGCHRM-7) from XLRI Jamshedpur

XSATID : 103367

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Name : Richa Singh

SMS ID : 103367

Name of the center :

Course Name :

CMH Road, Bangalore

Organisational Changeand Development

Name of theAssignment :

OrganisationalEvolution of Tata Elxsi

Name of the faculty : Dr AbhijitGangopadhyay



The Assignment is on the following Questions

1. Does revolutionary or evolutionary best describe thechanges that have been place in your organization?

2. In what type of changes (such as restructuring) has your

organization have been involved? How successful have thesechange efforts been?

3.With the information that you have at your disposaldescribe i) the forces for change, ii) Obstacle to change andiii) the strategy for change that the concerned organizationhas adopted, iv) Can you apply any OD interventionstrategies that have been discussed in the course to manage

the organization effectively.

Hoping My Assignment answers all the above questions toyour Satisfaction.

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Introduction to Tata Elxsi Tata Elxsi is the technology arm of the Tata Group, one of India’s largest and most respected business conglomerateswith US$ 76.3 billion in market capitalization. Headquarteredin Bangalore, India, we provide expertise in system design,embedded software, networking, communications,multimedia, storage, visual & high performance computing,mechanical product design and user interface design.

Draws on its knowledge base of nearly twenty years inproduct design, engineering, and a 3000+ strong R&D andengineering team. This is backed by SEI CMMi Level 5 andISO 9001: 2000 certified processes, which translates intohigher reliability, lowered design risks and improved time-to-market. Providing solutions though four core practices:

• Product Design Services

• Innovation Design Engineering

• Visual Computing Labs

• System Integration

Tata Elxsi has 20 international offices across Europe, US andAsia, and Global Engineering Centers in India to support theclients.

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Brief about all the Four Divisions

Product Design Services

Embedded Product Design Services includes full servicesoftware,hardware, and system design and development programs fortechnology products.

Embedded Product DesignServices offers a richportfolio of reusablesoftware components,ready-to-deploy productframeworks, licensable IPs

(intellectual property) andproduct developmentservices. It services sectors such as automotive,aerospace, consumerproducts, networking, semiconductors, multimedia, telecom, storageand instrumentation with cost effective product engineering, time-to-market advantage,multi-site delivery model and quality standards.

Embedded Product Design Services draws on its core domain andtechnology expertise in VLSI design, embedded software,networking,telecom, multimedia, storage, wireless and high-performancecomputing.

Innovation Design Engineering

IDE – Innovation DesignEngineering - the industrialdesign division of Tata Elxsi(one of the largest designhouses in India) providesend-to-end productdevelopment services across

industries: FMCG, Transportation, Consumer electronics & appliances,Digital user experience and Medical devices. For over a decade, IDEhas helped global players bring products to life through compellingdesigns.

We help corporations optimize their product development byintegrating the essential aspects of business/human/technical factorsin their designs.

IDE has been certified the ISO 9001:2000 and ISO 13485:2003 for

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delivering high quality and proven services to customers worldwide.

Investigate: Field researches are carried out to understand userperspective and build insights.

Innovate: Based on insights, innovative ideas and solutions aregenerated and refined into multiple design solutions.

Implement: Approved design concepts are taken forward toengineering design and validation using latest implementation tools.

Visual Computing Labs

VCL- Visual Computing Labs- offers state of the art computer graphics,animation and special effects.

VCL has pioneeredthe use of latesttechnologies in VFXfor Indian films andhas enhanced andenriched the visualexperience withcutting edge photorealistic solutions for3D CGI

environments; terrains, atmospherics and Artificial Intelligence basedcrowd control algorithms.

VCL has been conferred with numerous awards including NationalAward for ‘Best Special Effects’ for the film Anniyan at the 53rdNational Film Awards. The President of India, Smt. Pratibha Patil,presented this award. VCL also won nominations at Arena AnimationCNBC - TV 18Golden Cursor Animation Awards, Star Screen Awards,Filmfare Awards and Producers Guild Awards.

Today, VCL has been associated with some of the biggest Indian film

blockbusters: Roadside Romeo and Rab Ne Banaa Di Jodi for Yash RajFilms;Gandhi - My Father for Anil Kapoor Productions; Taare ZameenPar with Aamir Khan and the big hit of 2008, Jodhaa Akbar directed byAshutosh Gowarikar.VCL has also been a part of several prestigiousinternational projects, which include the big Hollywood hit of 2007 –Spiderman 3.

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System Integration

System Integration Services addresses enterprise and highperformance computing marketswith their range of

hardware,networking productsand storage solutions. It alsoaddresses the CAD/CAM/CAEmarket in the mentioned sectors.

In the media and entertainmentsector it offers broadcastsolutions to cater to setting up of a TV channel, data archival solutions and weather forecasting software. The division also has expertise in setting up Virtual Reality Centers for

the benefit of the manufacturing, defense, automotive, industries.

System Integration Services with a team of qualified and experiencedsales and support professionals positioned across the country caters tomany prestigious public and private sector organizations.

Professional Services Group (PSG) extends its services to applications,data mining, facilities management, network management, storageconsultancy and management, and overseas support and services.

Company’s growth

Tata Elxsi was created as a joint venture between the Tata Group andElxsi, which produced mainframe computers. In the early 1990’s,however Elxsi went out of business because of the general shift awaythe use of mainframes in the global computer industry and the adventof the personal computer. The Tata group kept the name Tata Elxsi butit now belongs to Tata.

The company’s growth has been evolutionary. The company hadstarted out as a Systems Integration Company. A relationship with SGIand the integrations business with interests in Media and Broadcast aswell as the indigenization of SGI helped the company evolve a Designand development wing. This wing later expanded to Design Services aswell as Visual effects and animation.

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Tata Elxsi :

Hence, Tata Elxsi’s growth has been evolutionary as it did not limititself to just one business for its growth, but made an effort to be inother niche areas of expertise whereby it will forge a leadershipposition. As of today, the company still has a Systems integrationsbusiness but its contributions to the company have been limited tounder 10%, while the Design and development business has grownexponentially by working on new technologies and today commandsover 80% of the revenues. An inherent ability to be dynamic andeffective as an organization has lead to creative evolution withoutlosing out on niche competencies!!

Changes incorporated by the Organisation for Growth

There are many small and big changes Tata Elxsi involved in theprocess organization growth. The company has divisional structurethat means there is a centralized corporate office and under it, arevarious divisions each of which is dedicated to producing and / orselling a certain type of business or product, e.g., VCL, PDS, SI etc.

Each division that isdedicated to a certain business or product is, inturn, is organized as its ownfunctional structure. So, for example, theProduct Design Services division dedicated to making Digital TV has itsown sales department, human resources, etc. Basically, the divisionalstructure is a bunch of functional structures each of which reports toone central office. Basically this structure is very good to focus on thecustomers. needs,however there is a possibility of duplicated functions among variousdivisions,hence increases cost efficiency of the organisation.

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To make company more cost efficient and employee oriented, topmanagement decided to Restructure the functional structure underdivisional structure and make it as some what grid knid of structure.Earlier one particular manager was taking care of both resourse Clientmanagement for single project and if any shortage of resource wasthere, it use to take a long time to arrange for it as other managerswere not ready to give there people.

• Keeping all this issues in mind, a restructure was done. Now wehave individual Client Managers and individual resourcemanager. KRA of Client manager is to focus on Clientrequirement, interacting with them and delivering them the bestas Tata says “Customer is the King”. Each Resource Managermanages the employee of one technology and it is his duty to

provide sufficient no. of people required for any project at anygiven point of time.

Some changes particularly were made in Product Design Services(PDS) as it is the largest business unit of Tata Elxsi, and to help itachieve the desired objectives and be the growth engine for thecompany, requires additional focus, strategic leadership andstrengthening of the organizational structure. The current marketscenario presents us with both challenges and opportunities for

differentiation and growth.

Vertica

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• In order to have better synergy in Technology areas that we areengaged and to better utilize the expertise and resources, thefollowing changes were made in PDS Business Unit.

The DATACOM domain is merged with VOIP

• & NMS Group (Networking Group) The LTE and RoHC development teams are merged with theWireless Group in Bangalore..

Towards this, the following structural changes have been made withinPDS.

• Resource Manager with report to HR Head where as earlier hewas reporting to Technology Head.

Tata Elxsi continues to face challenges quarter after quarter inachieving sales and revenue targets in PDS. To address this, theycreated a Sales Support Operations Group to drive a vastly improvedrate of revenue growth. This group will facilitate all transactionsneeded to sustain and grow revenues.

• The Sales Support Operations Group is reporting to Chief Strategy Officer. This group and CSO will work closely witheveryone in PDS in the field and the delivery organizationtowards achieving the Target.

• Unlike earlier, now PDS sales team is not been headed by one

person. It is divided region wise. US and Asia (excluding India), intaken care by one VP and Europe, India and Israel, by other VicePresident.

With All these changes we got more Business Focus and were able totrack all the loop holes. This structural change helped all technologyheads to focus on one particular technology and get the business fromthe target market.Being a services company, Quality was the top priority of Tata Elxsithis can be seen by Tata Elxsi was the first company to to obtain aCMMi Level 5 certification for custom product design workflows. Total

compliance to processes and methodologies is what has enabled us inachieving this. An organization-wide belief of the importance of process orientation is what has enabled us to achieve this. Regular andintensive training programmes have also helped foster a culture of unswerving commitment to quality.So the Quality we had, we were only lacking focus. Now bystreamlining the structure of the organization, KRA’s are more define, job roles are clear and less of blame game is left.

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Organizations are human systems and their system structure includesthe worldview, beliefs, and mental models of their leaders andmembers. Changing organizational behavior requires changing the

belief system of its personnel. This process of changing beliefs iscalled learning. Effective learning requires clear, opencommunications throughout the organization.

Organizational performance ultimately rests on human behavior andimproving performance requires changing behavior. Thereforeorganizational restructuring should have as a fundamental goal thefacilitation of clear, open communication that can enableorganizational learning and clarify accountability for results.

The company was requiring Change because of the following reasons

• New skills andcapabilities wereneeded to meet currentor expected operationalrequirements.

• Accountability forresults were not clearlycommunicated andmeasurable resulting insubjective and biased

performance appraisals.

• Parts of the organization was significantly over or understaffed.

• Organizational communications were inconsistent,fragmented, and inefficient.

• Workforce productivity was becoming stagnant

Obstacle to Change:

Changes are often painful butsometime shows great results.Similar kind of thing happened to ourCompany also.

People were Reluctance to change asthey were comfortable in thepositions carried by them and werenot able to see the long term benefit

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of the structural changes as some employee’s lacked the crisisawareness and necessity for change

Unlearning the old system and learning the new was also achallenge for the company.

Strategy for Change

Tata Elxsi created a framework interms of strategic restructuring afterthe Bubble Economy had burst; TheFramework carried few questionswhich helped the company inrestructuring. For ex. What will beour focus and method for growth?What are our core competencies?How we are planning to cover whole

of the target market?

With the created framework, Tata Elxsi began to focus morestrongly on their core business (PDS) and treated diversificationmuch more cautiously for continuation of growth in revenues, salesvolume, customer satisfaction, and profits.

OD Intervention Strategy to be Applied for Tata Elxsi PDSRestructuring

We should apply Structural OD Intervention. Structural interventionsincludes changes in how the overall work of an organisation is dividedinto units, who reports to whom, methods of control, the arrangementof equipment and people, work flow arrangements and changes incommunications and authority.

As we have to do Restructuring of technology division it will be Techno-Structural Interventions. This interventions deal with an organization’s technology (for examplesits taskmethods and job design) and structure (for example, division of laborand hierarchy). These interventions need to be rooted in the disciplines of engineering,sociology, and psychology and in the applied fields of socio-technicalsystems and organization design. We need to emphasis both onproductivity and human fulfillment.

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1. Structural Design: This change process concerns the organization’sdivision of labor – how to specialize task performances. Diagnostic guidelinesexist to determine which structure is appropriate for particularorganizational environments, technologies, and conditions.2. Downsizing: This intervention reduces costs and bureaucracy bydecreasing thesize of the organization through personnel layoffs, organizationredesign, andoutsourcing.3. Re-engineering: This recent intervention radically redesigns theorganization’score work processes to create tighter linkage and coordination amongthe differenttasks4. Parallel Structures5. High-involvement Organizations (HIO’s)6. Total Quality Management7. Work design: This refers to OD interventions aimed at creating jobs,and workgroups that generate high levels of employee fulfillment andproductivity.

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OD - Individual Assignment