As a part of its vision for transformation, Tata Motors has articulated a human capital strategy that sets a five-year road map for the companys HR agenda. Speaking with Sangeeta Menon, the companys chief human resources officer, Prabir Jha, looks back at the companys HR journey thus far and spells out the challenges of the future. 10 Tata Review
April 2013
How does the HR agenda unfold
at Tata Motors and what are its priorities? Tata Motors has aspirations for a future that will be more global and more competitive, where customer expectations will be quite different from what we have seen all these years. It is a future where our employee demographics will be much altered from what it is now. Our HR agenda is a product of all this. In late 2010 we articulated a five-year human capital strategy for our company. It is not an HR function strategy but a human capital strategy, and it has been co-created and coowned by the leadership. There are near- and long-term agendas. The past 12 months have not been a particularly
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easy period for the company. So, how we manage
costs, productivity and talent is going to be the near-term HR challenge. The long-term agenda will be different, given the context of the new culture that we have envisioned. We have reframed the vision and mission for Tata Motors and defined the kind of culture we need to create given the new challenges. Building that culture is easier said than done because it means that all HR sub-systems must be reoriented to be in line with the new culture. Culture reinvention along the Aces path (accountability, customer, excellence and speed) is going to be an HR priority and it will have a huge change management component. Another focus area is managing talent and leadership. A companys success eventually depends on talent across all levels, with the right skills, the right engagement and the right kind of diversity.
About Tata Motors
Tata Motors is the worlds fourth-largest bus and truck manufacturer and Indias largest automobile company. It has manufacturing sites in Europe, Africa and Asia. The companys portfolio extends from heavy commercial vehicles to sub-tonne carriers, buses, SUVs and passenger cars. Consolidated revenues of `1,656.55 billion in the financial year 2011-12. Number of employees: 55,000 plus.
How is the human capital approach
different from the traditional human resources approach? Employees are our capital and our job is to grow that capital. The term human capital signifies that it is not just the HR functions job to manage this resource, but it is the leaderships job as well. For very long people in many companies have erroneously believed that human asset management is part of the HR functions agenda. But the truth is that while human capital strategy is enabled and facilitated by the HR function, it is actually owned by leadership and management across levels. HR is no doubt the functional expert, but the deployment ultimately lies in the hands of line managers. The so-called gap between line managers and HR must end. One cannot be a great line manager unless one is a great people manager. Thats why the shift from an HR function strategy to a human capital strategy.
people to see a clear link between what they are
doing and what the company aims to achieve. Within that mission is an inclusive vision that gives everyone meaning in their work, beyond obvious reasons such as increments or job security. A lot of our HR processes and systems are being revisited towards this end. Building positive recognition for our Aces culture rests on our belief in positive psychology. Our Pact (performance and coaching tool) initiative is anchored in the philosophy that managers must move away from thinking of themselves as bosses to thinking of themselves as coaches. We have workshops and simulations to make sure that line managers start embracing this approach. The new individualised compensation policy puts a lot of responsibility in the hands of line managers. A significant part of our performance measurement, talent management and assessment criteria today are about using hardwired HR processes to support what is really a soft cultural transition. Finally, we have built high-level branding around various HR interventions to ensure excitement, passion and ownership.
How are you managing this change in
approach and attitude? Tata Motors is going through a comprehensive organisational transformation. It started with the new vision and mission document, which allows
Halfway into the transformation
journey, how satisfied are you with the way it has progressed? I am very happy with the journey. Our new HR policies are benchmarked with the best in April 2013
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the world. We have brought in unprecedented
outside in thinking to HR in Tata Motors. We have revamped our compensation philosophy so people can see their rewards linked to company performance. Historically, a variety of practices were deployed at various Tata Motors locations; we are now creating a single Tata Motors way. We have harmonised and upscaled HR in the company. Through all this, we are trying to create a more contemporary organisation that appeals to employees from any country, culture or industry; a world-class destination for best-inclass talent. When we look back to when we started the change programme, we see what a long way we have come. I would give us 8 out of 10 on the scorecard. What role does learning and development (L&D) play in talent management at Tata Motors? We have some path-breaking branded initiatives in the L&D space. For example, ITeach is an innovative practice of getting line managers to take ownership when it comes to sharing their knowledge and experience. This ensures tacit knowledge transfer, breaks silos, develops leadership, reduces cost of third-party training and earns reward points for people sharing their knowledge with colleagues. The concept of learning advisory councils [LACs] has been acknowledged as a worldclass practice. Through LACs the business or the functions identify their learning priorities, which they own, review and reinforce. Today the business leads the learning, unlike in the past, when HR would drive the process. We have switched to e-enabled learning to appeal to young, tech-savvy employees of tomorrow; almost 90 percent of our learning programmes are online. The HR strategy has to respond to the changing needs of not just employees but the entire ecosystem. For instance, we have created a small team from our in-house group of HR professionals to work on the HR agenda of our dealerships, to look at the entire HR life cycle of the people who actually touch the end customer. We adopted the build, operate,
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transfer framework and have just handed over
the responsibility to line operations, satisfied that we have put the HR systems in place. On the manufacturing side we have a programme called Autonova, where we have worked on six of the most mission-critical issues of the manufacturing operations of our commercial vehicles business, to build a worldclass standard of competence across levels in these identified areas. These are just a few examples of how the HR functions partnership with business is increasingly becoming strategic. What do you see as the major HR challenges for the automotive industry today? There are some obvious challenges such as the availability of skills, be it a blue-collar operator or an employee with niche skills. Therefore, the war for the right talent will intensify. Also, we will have to compete as an industry to attract talent. The auto industry is not necessarily the first choice of many potential employees; how we position ourselves as a sector of choice is a challenge. The old image of the auto sector as a manufacturing business has to change; it must promote itself as a consumer sector at par with new-age industries. How is Tata Motors preparing itself to become an employer of choice? We have been working on this for some time now and the efforts are beginning to pay off: we were recently named in one survey as the best company to work for in the auto and manufacturing segment. The challenge is how to keep this alive. Over the last few years we have been visible on the campuses with Mindrover, a successful case-study contest for students across Indian B-schools. We took this idea forward by introducing a similar engagement with students from top engineering campuses this year, where we invited them to provide solutions to technical problems. We also engage with many of these campuses through clearly differentiated internship programmes, where we pair students with
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mentors or guides. The feedback from our
summer interns has been positive and 80 percent of all our hiring is now through pre-placement offers to such summer interns. This summer, for the first time in Tata Motors, we will start internships for IIT engineers. Diversity is another important agenda for us. We want to see more women employees at Tata Motors. In fact, our internal employee referral programme, Friend ++, earns an employee a bonus over their referral award if they refer a woman. We have arguably the most women-friendly policies in the sector, be it on maternity, adoption or a sabbatical. All of these initiatives add to the story of Tata Motors being a great employer. Is attrition a concern for Tata Motors? How do you retain talent? Quantitatively, we have single-digit attrition, which is good. Most of the attrition happens in the first five years, when employees are keen to switch jobs and try out new things. Once they have completed five years, they settle in more comfortably and thats where we need to engage and retain them with different learning options, a career architecture that allows them to move across jobs, and leadership mentoring. Younger employees are uncomfortable with hierarchies, so we need to create a flatter organisation. Even our new offices are designed to reflect this. What is the Tata Motors experience with leadership development? Leadership development continues to be a challenge because our aspirations are high. The next crop of leaders at Tata Motors will have to be qualitatively superior. So we concentrate on offering different assignments, behavioural training, taking people out of their comfort zone and so on. The leadership development project is going to be about identifying potential leaders at every level, screening, some amount of education support, and a great deal of coaching and mentoring. We are actively evaluating 360-degree feedback as a mandatory input, starting with senior leadership.
For very long people in many companies
have erroneously believed that human asset management is part of the HR functions agenda. But the truth is that ... it is actually owned by leadership and management... As the Tata group becomes more global, what sort of HR imperatives are you having to cope with? How difficult is it to deal with diversity and cultural differences? HR can influence business decisions on whether the company should enter a new geography, by advising if the right kind of talent is available in that market or within the company. This is in addition to enabling all compliances to a variety of local labour legislations. HR can also help by training employees to work effectively in a new cultural and business environment. Most overseas moves fail not because of hard issues, but often the softer and often taken-for-granted ones. Indeed, no good merger or acquisition exercise today happens without active HR ownership from the word go. As part of a large group, there must be plenty of opportunities to compare HR practices with other Tata companies. Which are the Tata companies that impress most with their HR approach? The chief HR officers (CHROs) of leading Tata companies meet every quarter to discuss HR practices and issues. We can also pick up the phone and talk to any Tata company CHRO when we feel the need. We all learn from one another. For example, we can learn from Tata Consultancy Services about how it utilises technology in HR to manage scale, or discover why Titan has virtually no attrition, or learn from Tata Steels great industrial relations legacy. Not every company will have every experience; smart learning and sharing, I believe, is the way to go about it. April 2013