HUMAN RESOURCES / INDUSTRIAL RELATIONS
Tata Motor's Group considers its human capital as a critical factor to its success. Under the aegis of Tata Sons and the Tata Sons promoted entities, the Company has drawn up a comprehensive human resource strategy (the "Human Resource" strategy) which addresses key aspects of human resource development such as:
- Code of conduct and fair business practices.
- A fair and objective performance management system linked to the performance of the businesses which identifies and differentiates high performers while offering separation avenues for non-performers.
- Creation of a common pool of talented managers across Tata Sons and the Tata Sons promoted entities with a view to increasing their mobility through inter-Company job rotation.
- Evolution of performance based compensation packages to attract and retain talent within Tata Sons and the Tata Sons promoted entities.
- Development of comprehensive training programs to impart and continuously upgrade the industry/function specific skills.
In line with the Human Resource strategy, the Company, in turn, has implemented various initiatives in order to build organizational capability that will enable the Company to sustain competitiveness in the global market place. The focus is to attract talent, retain the better and advance the best. Some of the initiatives to meet this objective include:
- Extensive process mapping exercise to benchmark and align the human resource processes with global best practices.
- Introduction of a globally benchmarked employee engagement programme.
- Succession planning through identification of second level of managers for all units, locations, functions.
- Implementation of a "Fast Track Selection Scheme", which is a system for identifying potential talent in the areas of general, commercial and operations management and offering them opportunities for growth within the organization. The Company's human resources team has been invited to replicate this system in other Tata Companies.
- The Company "Talent Management Scheme" which includes the identification of high performers and high potentials through various routes such as our Performance Management System and Development Centers. Subsequent to the identification process, we provide them with challenging assignments for faster development.
- Introduction of performance rating based salary review and quality linked variable payment for supervisory category of employees.
- Restructuring the top level organization and creation of new verticals for greater functional focus and moving towards creating a matrix organization.
- Implementation of a powerful employer brand to attract talent - "Lead the Future" has become the Company's Employee Value Proposition statement.
- Driving cultural transformation - The Company has reframed the mission, vision, values and culture of the organization and introduced the concept of ACES - Accountability, Customer & Product focus, Excellence and Speed.
Extensive brand building initiatives at university campuses to increase recruiting from premium universities.
To focus on skill and capability building of our blue collar workforce; common curriculum, infrastructure and training methods have been developed. Pilot infrastructure has been developed at Pune and Sanand and the same will be introduced at all other manufacturing plants
- JLR launched a new "Team Talk Online" portal to its production workers, which provides them with business updates alongside information on employee benefits, training and development.
We employed approximately 66,593 and 62,716 (includes Tata Motor Group) permanent employees as of March 31, 2014 and 2013 respectively. The average number of temporary employees for the FY 2013-14, was approximately 33,422.
The following table set forth a breakdown of persons employed by our business segments and by geographic location as of March 31, 2014.
(Late) Mr Karl Slym, Managing Director of the Company had an untimely and tragic demise in Bangkok in January 2014, which has created a void in the management. As an interim measure, oversight on Company's operations which was provided by the Executive Committee of the Company (ExCom), chaired by the Managing Director, is now undertaken by a Corporate Steering Committee (CSC) chaired by Mr Cyrus P Mistry, who devotes greater focus and attention to the management of operations of the Company.
Training and Development:
Tata Motors is committed to the training & development of its employees. There is a focused approach to address all capability gaps and prepare employees for changes in the external environment, such that it enables meeting the organization's strategic objectives.
The training & development system addresses development needs of various segments of workforce through the Tata Motors Academy (TMA). Well defined Centres of Excellence (CoE) like Manufacturing Excellence & Innovation, Commercial, Corporate, Management Development and Global Leadership are a part of TMA. These CoEs address the diverse needs of different categories of employees and functions through mediums like classroom interventions, external programs as well as an in-house learning management system (LMS) based online platform. TMA offers learning interventions at each level of an employee's transition in the organization beginning with his/her joining. High potential employees at senior levels are also selected for the Fulbright fellowships for leadership in management.
As a means of ensuring business relevance and value of learning offered, efforts are taken to closely align learning & development with business needs and priorities through a learning governance body called as Learning Advisory Council (LAC). The Company has a multitiered LAC structure which involves senior leaders in different parts of the organization as its members. LACs play a threefold role namely – designing, implementing and reviewing the learning agenda.
Within the Technical Training set up an innovative Fundamental Skills Training intervention has been launched across the organization. This aims at addressing through training of the front line team members on the correct skill required to perform the job. The Company is now migrating from a trade based training approach to a process based training approach wherein it's more important for the team member to know skills related to his actual work in addition to the general trade based skills which he learns at the Training institutes (ITI's). These skills are very specific and not currently taught at the ITI's.
Union Wage Settlements: All employees in India belonging to the operative grades are members of labour unions except at Sanand & Dharwad plants. The Company has generally enjoyed cordial relations with its employees at its factories and offices.
Employee wages are paid in accordance with wage agreements that have varying terms (typically three years) at different locations. The expiration dates of the wage agreements with respect to various locations/subsidiaries are as follows:
A cordial industrial relations environment has been maintained in all the Company's manufacturing units.
The variability in wage settlements was built in by introducing vehicles and profit linked payment scheme based on the index of various parameters such as quality, productivity, operating profit and individual's performance and attendance.
Operatives and Union support in implementation of programmes towards quality, cost and productivity improvements across all locations is commendable.
RESEARCH AND DEVELOPMENT:
Over the years, the Company has devoted significant resources towards our research and development activities. The Company's research and development activities focus on product development, environmental technologies and vehicle safety. The Company's Engineering Research Centre, or ERC, established in 1966, is one of the few in-house automotive research and development centers in India recognized by the Government. ERC is integrated with all of the Tata Motors Global Automotive Product Design and Development Centers in South Korea, Italy and the United Kingdom. In addition to this, the Company leverages key competencies through various engineering service suppliers and design teams of its suppliers.
The Company has a state of the art crash test facility for passive safety development towards meeting regulatory and consumer group test requirements and evaluating occupant safety. The Company has a full vehicle level crash test facility, sled test facility for simulating the crash environment on subsystems, a pedestrian safety testing facility, a pendulum impact test facility for goods carrier vehicles and other equipment & facilities to develop products that comply with various safety norms. This facility is also supported with CAE Infrastructure to simulate tests in digital environment. The Company has Transient Dynamometer test beds, Mileage Accumulation chassis dynamometer and Emission labs are available for futuristic engine development, State of the art Engine Noise Test Cell facility & Transmission Control Units are being installed for better Powertrain deployment. The Companyalso has a hemi-anechoic chamber testing facility for developing vehicles with lower noise and vibration levels and an engine emission and performance development facilities, to develop products meeting international standards. The Company also has an eight poster road load simulator for vehicle structural durability validation of M&HCV. Other key facilities include a full vehicle environmental testing facility, heavy duty dynamometers and aggregate endurance test rigs.
The Company's product design and development centers are equipped with sophisticated hardware, software and other information technology infrastructure, designed to create a digital product development and virtual testing and validation environment, resulting in reduced of product development cycletime, improved quality and provide ability to create multiple design options. These centers are growing with increased vehicle development programs in breadth and depth of technology. Rapid prototype development systems, testing cycle simulators, advanced emission test laboratories and styling studios are also a part of our product development infrastructure. The Company has aligned our end-to-end digital product development objectives and infrastructure, with its business goals and have made significant investments to enhance the capabilities especially in the areas of product development through Computer Aided Design / Computer Aided Manufacturing / Computer Aided Engineering / Knowledge Based Engineering / Product Lifecycle Management and specific engineering review processes like Digital Mockup (DMU). The Company's product lifecycle management system provides vital processes, including manufacturing feasibility studies, for product development In order to track various issues arising in vehicle design and development processes, the Company has institutionalized 'issue tracking' work flow based systems in various domains to manage them effectively.
The Company's research and development activities also focus on developing vehicles running on alternative fuels, including CNG, liquefied petroleum gas, bio-diesel and compressed air and electric cars. The Company is continuing to develop green vehicles. The Company is pursuing alternative fuel options such as ethanol blending for development of vehicles fuelled by hydrogen.
The Company is also pursuing various initiatives, such as the introduction of Premium Lightweight Architecture (PLA), to enable its business to comply with the existing and evolving emissions legislations in the developed world, which it believes will be a key enabler of both reduction in CO2 and further efficiencies in manufacturing and engineering.
Initiatives in the area of vehicle electronics for meeting ever increasing regulatory requirement in the area of engine management systems, in-vehicle network architecture and Multiplexed Wiring were successfully deployed on the Company range of vehicle whereas certain technologies Electronic Stability programs, Automated and Automatic transmission systems, telematics for communication and tracking, anti-lock braking system intelligent transportation system are in the process of various phases of deployment on future range of vehicles. Likewise this could possibly be deployed on our future range of vehicles.Likewise, various new technologies and systems that would improve safety, performance and emissions of product range are being implemented in our passenger cars and commercial vehicles.
The Company is developing and enterprise level vehicle diagnostics system for achieving faster diagnostics of complex electronics in vehicles in order to provide prompt service to customers. Furthermore the initiative in telematics has spanned into a fleet management, driver information and navigation systems, and vehicle tracking system using GNSS (Global NavigationSatellite Systems).
The Company established a wholly owned subsidiary, TMETC, in 2006, to augment the abilities of its Engineering Research Centre with an objective to obtain access to leading-edge technologies to support the product development activities. In October 2010, the Company also acquired a design house in Italy, Trilix Srl, that has been working with the Company on many of its projects and are now a part of Tata Motors Design organization.
The Company endeavors to absorb the best of technologies for its product range to meet the requirements of a globally competitive market. All of its vehicles and engines are compliant with the prevalent regulatory norms in the respective countries in which they are sold. The Company's strategy to invest and develop its development capabilities have helped the Company in attaining significant achievements such as the design and development of India's first indigenously developed compact car, the segment creating mini- truck – the 'Tata Ace' and the world's most affordable family car — the Tata Nano. In collaboration with its subsidiary TDCV, the Company developed the "World Truck", now referred to as 'Prima', a sophisticated and contemporary M&HCV range with performance standards similar to those in developed markets.
The Jaguar Land Rover research and development operations currently consist of a single engineering team, operating within co-managed engineering facilities, sharing premium technologies, power train designs and vehicle architecture. The ERC in India and Jaguar Land Rover engineering and development operations in the United Kingdom, have identified areas to leverage the facilities and resources to enhance the product development process and achieve economies of scale.
JLR's vehicles are designed and developed by award-winning design teams, and it is committed to a programme of regular enhancements in product design. JLR's two design and development centres are equipped with computer-aided design, manufacturing and engineering tools, and are configured for competitive product development cycle time and efficient data management. In recent years, JLR has refreshed the entire Jaguar range under a unified concept and design language and continued to enhance the design of Land Rover's range of all-terrain vehicles. JLR's R&D operations look for synergies through sharing premium technologies, powertrain designs and vehicle architecture. All of JLR's products are designed and engineered primarily in the United Kingdom. JLR endeavours to implement the best technologies into its product range to meet the requirements of a globally competitive market. JLR is currently developing vehicles which will run on alternative fuels and hybrids and is also investing in other programmes for the development of technologies to improve the environmental performance of its vehicles including the reduction of CO2 emissions.
INTELLECTUAL PROPERTY
The Company creates, owns, and maintains a wide array of intellectual property assets that are among its most valuable assets throughout the world. The Company's intellectual property assets include patents, trademarks, copyrights designs, trade secrets and other intellectual property rights. Patents relate to innovations and products; trademarks secured relate to brands and products; copyrights are secured for creative content; and designs are secured for aesthetic features of products/components. The Company proactively and aggressively seeks to protect its intellectual property in India and other countries.
The Company owns a number of patents and has applied for new patents which are pending for grant in India as well as in other countries. It has also filed a number of patent applications outside India under the Patent Cooperation Treaty, which will be effective in different countries going forward. The Company obtains new patents as part of its ongoing research and development activities.
The Company own registrations for number of trade-marks and have pending applications for registration of these in India as well as other countries. The registrations mainly include trademarks for its vehicle models and other promotional initiatives. The Company uses the "Tata" brand, which has been licensed to the Company by Tata Sons Limited. The Company's believes that establishment of the "Tata" word mark and logo mark in India and world over, is material to its operations. As part of acquisition of TDCV, the Company has the rights to the perpetual and exclusive use of the "Daewoo" brand and trademarks in Korea and overseas markets for the product range of TDCV.
As part of the acquisition of Jaguar Land Rover business, ownership (or co-ownership, as applicable) of core intellectual property associated with JLR were transferred to the Company. Additionally, perpetual royalty free licenses to use other essential intellectual properties have been granted to the Company for use in Jaguar and Land Rover vehicles. Jaguar and Land Rover own registered designs, to protect the design of their vehicles in several countries.
In varying degrees, all its intellectual property is important to the Company. In particular, the Tata brand is integral to the conduct of the Company's business, a loss of which could lead to dilution of our brand image and have a material adverse effect on the business.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Company's objective, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company's operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.