Tata Motors Scraps 10,000 Designations to Boost Creativity Among Employees


Under the new strategy team managers will get new title ‘head’; creates a flatter organizational structure

Tata Motors is taking various steps in order to create a flatter organizational structure and boost creativity among its employees. After sacking 1,500 managerial jobs last month, now the homegrown auto major has scrapped more than 10,000 designations in order to boost work efficiency and a better teamwork environment in the organisation.

Under this new strategy, the designations like general manager, senior general manager, deputy general manager, vice president and senior vice president will no longer exist. The team managers will now get a simple title of ‘head’ and the individual contributors who don’t have any team member reporting to them will use the function they are assigned to or the department after their name.

Also read: Tata Motors Sacks 1,500 Managerial Jobs as Part of Organisational Restructuring

Tata Motors says that this strategy will create a mindset among its employees free of designations and hierarchy. Also, the brand believes that this strategy will help to enhance the co-operation among the employees, thus resulting in the further organisational development. The entire process is a part of the company’s new policies to tackle the competition and Accenture is helping Tata Motors in devising the strategy.

This move will reduce Tata Motors’ hierarchy level to 5 from 14. Also, there won’t be any time-bound promotions from now on. Promotions will be given only if there is vacancy. The move has received mixed reaction from the Tata Motors employees. The younger staffs see it as an encouraging move compared to the older and experienced employees.

Also read: 7 Upcoming Tata Cars in India in 2017, 2018

It is interesting to see how the homegrown auto giant is trying to improve its work culture and organisational structure for last couple of months. However, in that process 1,500 employees lost their jobs last month, as the company reduced its white collar workforce by 10%-12%. The company implemented the job cut decision after assessing the performance and leadership qualities of the managerial employees for over 6-9 months.

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