Recognize, Reward, Retain: Tata Motor case study' by G. V. Srirama Kumar

Recognise,

Reward & Retain

By

G V Srirama Kumar

Tata Motors, Jamshedpur,

INDIA

Fostering Innovation & Creativity

Generation of Ideas

Implementation, Evaluation & Audit

Reward & Recognition

Achieving Business excellence through Innovative culture &

retention of employees

Stages of Idea Management

Business Excellence

Business Excellence is visionary &

inspirational leadership, coupled with clear

direction & constancy of purpose

Leadership & constancy of purpose

Business Excellence is creating

sustainable customer value and exceeding

customer expectations

Customer Focus

Business Excellence is achieving results

that delight all the organization’s

stakeholders

Continuous Improvements & Innovations

Result Orientation

Business Excellence is challenging the

status-quo and effecting change by

using learning to create innovation and

improvement opportunities

Business Excellence is

maximising the

contribution of the

employees through their

creativity, development

and involvements

Employees participation

Business Excellence is exceeding the

minimum regulatory framework in which

the organization operates and to strive to

understand and respond to the expectation

of their stakeholders in society

Corporate Social Responsibility

Creativity

“Creativity” is

•marked by ability or power to create

•to invent with a new form,

•to produce through imaginative skill,

•to make or bring into existence something new.

Each individual in an organization is creative

Diffusion/Exploitation/ Adoption (Spreading innovation from one area to another

bringing essential improvements in the existing

system)

Level 3

Innovation (Industrial application

of invention for

achieving specific

goals)

Level 2

Invention (Technical

realisation of

new scientific

knowledge)

Level 1

Levels of Innovation

For most firm innovation helps in achieving Business Excellence

Example

Chips

Fly by wire

Computer

Through Creativity one can innovate at any level

The innovation a firm achieves today defines its tomorrow

The ability to innovate i.e. to develop new products,technologies,efficient process

& system at a faster pace and cheaper than their competitors separates the

world’s best companies from all the rest.

In a competitive environment it is innovation through creativity that distinguishes

a winner and a loser

Creativity/Innovation is the key for achieving business excellence

C. Creativity in

Organizations:

Learning

Organizations

Conventional Approach New Approach

Effect Short-term but dramatic Long-term, lasting, undramatic

Tempo Large steps as per plan Small steps- Continual

Protagonists Few selected persons All company employees,

interfunctional organisation

Procedure Individual ideas and efforts Collective spirit, team work,

systematic

Motto Discontinuance and new start Retain and improve

Recipe for success Technological achievement, new

inventions, new theories

Conventional know-how and

prevailing technology

Management principle Specialist oriented Generalist organisation

Exchange of information Secret and internal Open and reciprocal

Feedback Limited Comprehensive, intensive

Innovation in a Creative Organisation is thus characterised by

team effort and not by an individual’s effort

1. Team Effort :

Innovations are not typically the result of a single person’s effort. These are the

collective effort of many people doing a small part of the larger whole

2.Operational Excellence:

•Innovative organisation recognises the importance of operational excellence apart

from traditional product innovation for achieving business excellence

•In an creative organisation

•The design of nearly all work activities across functional roles, products, processes

(assembly,material logistics, training, marketing, system redesign, administration etc.)

•Connections among people through hierarchical levels (from workers to managers and

above) and

•Pathways of connected activities over which products, services and information take

form

are

•Built around transparency & empowerment

•Specified – in- their design and are well documented

•Tested-with-their every-use and

•Continuously improved in time,place and person for operational excellence

3. Learning,Sharing & Growth:

• In an innovative organisation

• Organisation learns faster than anyone else through its people

• They share the result of that learning across the enterprise

• They constantly foster the development and sharing of new knowledge

• They overcome resistance to perceived boundaries by transforming the

constraints/barriers into resources

• Organisation creates a climate that encourages and catalyses creativity

• Creativeness flourishes in participative leadership

• Creative leader/manager provide:

• Appropriate challenge

• Support

• Idea Source

• They encourage idea people by rewarding failure not just success;They

reserve punishment only for inaction.

With the pace of change ever quickening, the need to develop mechanisms for continuous learning and

innovation is greater than ever

4.Main dimension of a creative climate in an organisation:

1. Challenge

2. Freedom

3. Idea Support

4. Trust

5. Dynamism

6. Playfulness

7. Debates

8. Conflicts

9. Risk taking

10. Idea time

Creative organisation scores more highly on these ten dimensions than the stagnated one

Great way of killing your company’s future…kill creativity

Business Excellence is the result

of successfully managing

change in the organisation

through Change Initiatives

and Mangement Tools

Present maze of change initiatives & management tools

NPI

Bench Marking

COPQ

CSI

OHS

SDT

DFM / DFA

Matrix-Orgn

Value Engineering

CRM

EMS

E-commerce

DOE

5-S

QS 9000

TS 16949

TQM

Knowledge management

At first pass all these seems to be separate

initiative requiring resources & efforts for

achieving business excellence

•The terms are merely convenient symbols to describe concepts.

•Behind these jargons are the changing processes and the management tools that are transforming the companies through its employees

•They reflect a revolution in business :

•How excellence in business is achieved and improved continuously by innovative ways through its employees.

•This also shows the eagerness of management to use all these acronyms merely reflecting an impatience for change.

Facts about change initiatives & management tools

TPM

TQM

EVA

BPR

Benchmarking

……..

A deeper analysis reveals that all initiatives have three

things in common:-

Waste

Elimination by

improving

resource

efficiency

Employee Involvement

Employee involvement should be with

application of their creativity

Top Management Commitment

“Our greatest asset is our people and

their pride in belonging to the group.

- Ratan Tata

The quest for Excellence demands that

we marshal this resource optimally,

through teamwork, sharing knowledge

and resources and benchmarking

ourselves against the best in the world ”

Engineering Materials / Steel Energy Chemicals

Commercial Vehicles,

Passenger Cars Metals, Composites Power Chemicals, Pigments

Telecommunications

Information Technology

Control systems

Consumer goods

Hotels

Financial Services

International operations

Communications & IT Consumer Products Services

India’s first and fully integrated largest automobile

manufacturer

Tata Motors today holds a strong domestic position and has established its

presence in the Global auto market

TATA MOTORS

STRONG DOMESTIC

POSITION

ROBUST FINANCIAL

PERFORMNACE

• India’s Largest Automobile Company by revenue

• 2nd Largest Bus Manufacturer in Medium & Large Buses in The World

• 4th Largest Truck Manufacturer in The World (>6t)

• Largest Portfolio Of Products (Light, Medium And Heavy Trucks, Buses & Coaches,

Passenger Cars & Uvs)

• Acquired Commercial Vehicle Business Of Daewoo In 2004 (TDCV)

• Acquired Jaguar Land Rover In 2008

• Market Leader In Commercial Vehicles (Market Share ~ 60-80% in major segments)

• 3rd Largest Player In Passenger Cars

• Has Over 1400 Customer Touch Points

• Revenue : USD 28 billion

• Profit : USD 2.1 billion

Dharwad

Lucknow Jamshedpur

Pune

Rudrapur

Sanand

TATA MOTORS - MANUFACTURING LOCATIONS

Brazil

Sweden UK

South

Africa

South

Korea Taiwan

A TS-16949, ISO-14001,OHSAS-18001 Certified

Company

Organization

World wide presence

Jamshedpur – Commercial Vehicles

Pune – Commercial and Passenger Vehicles

Lucknow – Commercial Vehicles

Pantnagar – Commercial Vehicles

Sanand – Tata Nano

Dharwad – Buses

South Korea –Heavy and Medium Trucks

Spain – High Capacity Buses

Morocco – High Capacity Buses

Thailand – Pickup trucks

UK – Jaguar Land Rover

India

Overseas

Manufacturing Base

PEOPLES’S CAR WORLD’S CAR

INDIA’S 1ST MINI TRUCK ‘GLOBAL’ TRUCK

AUTOMOTIVE- A WAY OF LIFE @ TATA MOTORS

http://en.wikipedia.org/wiki/File:2011_Jaguar_XJ-L_--_05-05-2010.jpg

LOCATED IN THE HEART OF

JAMSHEDPUR THE 7TH

CLEANEST CITY OF INDIA

HAVING AVG LITERACY RATE

OF 86%

MANUFACTURING SETUP IS

SPREAD OVER AN AREA OF

822 ACRES – 2ND MAJOR

INDUSTRY OF THE CITY

JAMSHEDPUR

OVER 13,000 EMPLOYEES

RESIDING IN A RADIUS OF

20 KMS

ISO 14001: 2004 CERTIFIED FOR ITS

ENVIRONMENT

MANAGEMENT SYSTEM


Generation of Ideas






Origin of Suggestion Scheme in TML

Suggestion Process Flow


Generation of Ideas






Evaluation & Awards

Type of Award Description

Final Award Given after implementation of suggestion

Idea Award Given if idea is acceptable but implementation would require time

Appreciation Letter Given for pointing out corrective actions related to common issues

0.4 x normal Award For Recurring Saving

10 or more to converted into monetary value once a year

0.1 x Normal Award

Normal Award = 1.401√ (Annual Saving x 6.84)

Award Amount

Appreciation Letter

For One-time Saving

Monetary Saving (all categories)

Type of Benefit

Suggestor’s Grade Suggestor’s Grade Factor

Operative grades 1

Supervisory grades 0.8

Managerial grade 0.6

Maximum award for any suggestion: Rs. 25,000/-


Generation of Ideas






Measures for Recognition of Suggestors

Recognition

1. Presentation by Suggestors & appreciation during:

o divisional reviews & shopfloor meetings

o TMG meetings and during VIP visits to the Plant

2. Displaying the list of Suggestion Awardees on notice boards in all the

divisions

3. Coverage of Suggestors in internal publications like Flashes and Hum Sab

4. Introduction of a Suggestions Newsletter, to be circulated through global mail

5. Awarding of Suggestion Award certificates by Chairman (Suggestion Scheme)

6. Awarding of Telco Vir medal by Plant Head to the year’s highest Suggestion

Award recipient during the Republic Day function

7. Annual Suggestion Nite for felicitation of Suggestors, divisions and

functionaries

Coverage of Suggestion Scheme in House Magazine ‘Flashes’

Communication With Suggestors

Coverage in ‘Flashes’ in subsequent issue

Communication With Suggestors


Generation of Ideas






Back- up

Level One (Invention)

• A new device, method or process developed from study and

experimentation

• Technical realisation of new scientific knowledge or new

combination of such knowledge

• Solution exists outside the boundary of contemporary science

• Examples :

Laser Doppler altimeter

ENTOMOPTER*

*An electro mechanical multimode flying or crawling insect developed by Georgia Technology Research Institute

Find new

problem

Find new

concept

Solution

Level Two (Innovation)

• The act of introducing something new or different

• Industrial application of inventions with the aim of achieving

management goals

• Synergy effect due to fusion of very different kinds of products,

processes and technology

• Encompasses the fields of production, distribution and consumption

of products or services

• Solution exists outside the boundary of one technology

• Example :

Fly by wire technology Find new

tasks

Find new

solution

Solution

• Spreading innovation from one area to another by producer

• Essential improvements in the existing system

• Solution from one area of technology involving methods from other

fields

• Examples :

Automatic Transmission

Battery Car

Level Three (Adoption / Diffusion)

Change

Original

problem

Change

existing

solution

Solution

Education

Recognize, Reward, Retain: Tata Motor case study' by G. V. Srirama Kumar