In a bid to achieve a lean company hierarchy, Tata Motors has scrapped designations of over 10,000 employees. This has resulted in a flatter organisational structure. Through this company trimming, the automaker is aiming to boost creativity on each level and enhance productivity and transparency.
Tata Motors had revealed this organisational change on Wednesday, 7 June 2017, in an internal communication to its employees. According to this announcement, designations like general manager, senior general manager, deputy general manager, vice-president and senior vice-president have been ditched from the organisation. In total, over 10,000 employees have been affected by this change.
According to the new structure, all managers that have a team operating under them will have the same job title – Head. This title will be followed by the function, department or vertical that the manager is working for. For example, a product manager in the passenger vehicle verticle will now simply have the ‘Head – Products, Passenger Vehicles designation’.
Post this organisational revamp, the company will have just 5 hierarchy levels across every vertical, as compared to 14 levels under the current system. Tata is aiming to establish a work culture that is inspired by global service based companies, which will likely aid transparency and minimise approval levels for any project.