The novel step taken by Tata Motors has created a stir in the industry with its latest news of scrapping designations of more than 10,000 employees, as per media report.
Under the new system – popular designations such as general manager, vice-president, area manager, regional sales will be scrubbed in order to create a flat organization.
The effort is being taken by the organization to make the performance review process more transparent and fair. This will help in bringing back focus to individual goals and responsibility.
To understand it further – the designations of the employees leading the teams will be simply called as ‘Head’ which will be followed by the function and if any person is operating solo - their business card will include function and area of specialization. So, the new business card will entail designation in the format – name of the employee followed by function/ responsibility. An example would be – ‘Sales –Medium and Heavy Commercial Vehicles’.
Reportedly, the only team which will not undergo this change includes executive committee involving Guenter Butschek, Managing Director, and his leadership team of 10 people.
As told to media, Gajendra S Chandel, Chief Human Resources Officer, says, “ this is the first time that such a radical corporate hierarchical transformation is being adopted in India though this is not entirely uncommon overseas. Indeed it was a challenging task and we had a lot of debate on how people would react to the move. ”
The new approach is adopted by the organization after it has introduced new hierarchical plan few months ago. It has condensed its current reporting layers from fourteen to five. Taking the new step, Tata Motors has made it clear that performance is all that matters to the organization. The change introduced definitely sends across a very strong message to its employees. All one needs to do is to wait and observe how internal employees and external aids react to the new change and how well the industry receives the breaking of the conventional system.