Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 15th March 2017, 17:02   #1
BHPian
 
Join Date: May 2016
Location: Kolkata
Posts: 57
Thanked: 108 Times
Default Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

Tata Motors, India’s largest automobile maker, has started rolling out a voluntary retirement scheme (VRS) for its management employees as part of its organisational restructuring exercise. This management restructuring at Tata Motors comes at a time when the company has been constantly losing market share in the passenger vehicle segment while also seeing competitive pressure in commercial vehicles, where it has enjoyed a lion’s share for decades.

The new structure will be in place from April 1. So far, approximately 500 executives have been offered VRS, which roughly includes one year’s salary, among other benefits, sources said. The company, however, did not confirm the details of the VRS package or how many were offered VRS. “To facilitate this, a number of roles distributed currently across the company are being relocated in the Global Development Centre (Pune). We expect significant benefits in cost, service quality and process efficiencies,” the company said.

According to reports, from a 15-16-level hierarchy, the organisation is moving to a flat five-level hierarchy. Earlier, Tata Motors had three levels in the supervisory grade, five in the managerial grade and around six or seven in the executive grade. Now, there will be five grades, L1 to L5, with L1 being the highest. Above these levels, there will be executive directors, presidents and the managing director. The exercise has been completed only for the L1 and L2 levels. (source)
basubhatta is offline   (10) Thanks Reply With Quote
Old 15th March 2017, 17:09   #2
BHPian
 
Join Date: Feb 2008
Location: Chennai
Posts: 759
Thanked: 512 Times
Default re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

Very much overdue, it has to be said. The main issue with Tata motors was entrenched middle management and some senior management who refused to adapt and improve.
chncar is online now   (2) Thanks Reply With Quote
Old 15th March 2017, 17:19   #3
Senior - BHPian
 
Join Date: Jul 2006
Location: Bombay
Posts: 1,033
Thanked: 670 Times
Default re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

Quote:
Originally Posted by chncar View Post
Very much overdue, it has to be said. The main issue with Tata motors was entrenched middle management and some senior management who refused to adapt and improve.
Middle management really? I could have sworn the issue was with the top management. Ultimately they're the ones who take the credit for the achievements and they should take the blame for the mistakes. Of course that never happens.

Think about it, would a middle management guy take a strategic decision on the model lineup?
Lalvaz is offline   (5) Thanks Reply With Quote
Old 15th March 2017, 17:22   #4
BHPian
 
Join Date: Feb 2008
Location: Chennai
Posts: 759
Thanked: 512 Times
Default re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

Quote:
Originally Posted by Lalvaz View Post
Middle management really? I could have sworn the issue was with the top management. Ultimately they're the ones who take the credit for the achievements and they should take the blame for the mistakes. Of course that never happens.

Think about it, would a middle management guy take a strategic decision on the model lineup?
The problems are not limited to the model lineup, even basic QC, vendor management and customer support were major issues and middle management are directly involved in those activities. Basically the issues at TM point to incompetent hangers-on at multiple levels.
chncar is online now   (5) Thanks Reply With Quote
Old 15th March 2017, 22:48   #5
Senior - BHPian
 
Join Date: Sep 2008
Location: DL9C
Posts: 2,419
Thanked: 2,066 Times
Default re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

The top man should lead by an example, but doesn't seem to apply to TML. Boss man comes back like a boomerang after retirement and expects subordinates to throw in the towel. Interesting.

Why call it voluntary if it's a 'forced' decision from the company?
Dry Ice is offline   (6) Thanks Reply With Quote
Old 16th March 2017, 14:41   #6
BHPian
 
Amey Kulkarni's Avatar
 
Join Date: Jul 2016
Location: Pune
Posts: 155
Thanked: 189 Times
Default Re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

Is it really VRS or CRS (Compulsory Retirement)?

TML decisions have been very slow and the basic reason is that the rule setter is enforced to follow the rules set himself as well. So this has been very conveniently procrastinated till now.

There was a similar "De-layering project in Tata Steel" run back in 1999.

Link - http://www.neilsonjournals.com/JOBE/sTataSteel.pdf

Cheers,
Amey
Amey Kulkarni is offline   (2) Thanks Reply With Quote
Old 7th August 2017, 23:41   #7
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,138
Thanked: 84,979 Times
Default Re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

The dark side of VRS - man jumps from the 15th floor! Sad. Depression is a disease that needs proper treatment. My heart goes out to his family.

Full Mumbai Mirror Article

Quote:
A 43-year-old man, Prashant Sibal jumped to death from the 15th floor refuge area of his residence, Kalpataru Habitat in Parel on Friday morning. According to police, Sibal had lost his job as a General Manager in the Sales department at Tata Motors in April and had been depressed ever since.

A spokesperson from Tata Motors said, “We are deeply saddened by the passing away of Mr Prashant Sibal, a former employee of Tata Motors. He had opted for VRS from services of the company in April 2017. Our thoughts and prayers are with his family and we will provide all the necessary support. We are fully cooperating with the concerned authorities investigating this matter.”
GTO is offline   Reply With Quote
Old 8th August 2017, 06:55   #8
Senior - BHPian
 
Join Date: Jul 2009
Location: Pune
Posts: 2,425
Thanked: 1,118 Times
Default Re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

In India, the reality is that every VRS is a CRS. The package offered cannot ever be adequate to motivate anyone, except those with a very short time left to retirement, to subscribe to it purely on financial merits. But if we want all the benefits of liberalised economies, this is the other side of the coin; we can't have both things.

This is a past top leadership created problem, but the present leadership is left to solve it. In the past, since salaries were a low percentage of the total cost structure, overstaffing was rampant everywhere. The real problem with overstaffing is loss of agility in making and executing decisions; again, a loss that mattered less in pre liberalisation. But today, an elephant like Tata has to dance to survive and it cannot do so without losing weight. Not so much for cost reasons, but for the needed agility.
Sawyer is online now   (2) Thanks Reply With Quote
Old 8th September 2017, 19:13   #9
BHPian
 
Join Date: Feb 2017
Location: KA 18/KA 02
Posts: 451
Thanked: 1,117 Times
Default Re: Tata Motors initiating Voluntary Retirement Scheme (VRS) for management

Trouble seems to be brewing fast at Tata's truck manufacturing plant in Jamshedpur. 6,000 of the total 10,000 employees have gone on strike, at first citing discrepancies in pay and later demanding regularisation of temporary staff, reports TOI.

The strike which began on September 6, is said to have resulted in production being halved from usual 80 trucks per day. Hope the matter sees an early and conciliatory resolution.
dailydriver is offline   (1) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Helping the needy - Donation / Voluntary Work / Charities DCEite Shifting gears 47 31st July 2017 14:28
Mahindra 2-Wheelers provides VRS scheme to 250 workers MunnabhaiMBBS Motorbikes 0 7th July 2016 12:10
Twitter chat with Tata Motors Management - 7th June, 2014 FourWheelDrift The Indian Car Scene 5 8th June 2014 16:44
Tata Motors to offer voluntary retirement, a direct impact of industry sluggishness? sarathlal The Indian Car Scene 26 26th January 2014 08:18


All times are GMT +5.5. The time now is 16:49.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks