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<keyword id="42747" type="CITY" weightage="100" keywordseo="Tata-Motors">Tata Motors</keyword>, which is India's largest automobile company in terms of revenue, has decided to scrap designations in order to create a flatter organisation and boost teamwork-inspired creativity. The company would no longer be having designations like general manager, senior general manager, deputy general manager, vice-president and senior vice-president among others, affecting about 10,000 employees. As per a statement that Tata Motors circulated to its employees, this move will create a "mindset free of designations and hierarchy." Employees that have a team reporting to them will now be called heads, followed by the function or department after their names. Individual contributors, largely at the front end without any team member reporting to them will be using the ‘function’ or ‘department’ after their names. "More number of roles have moved than people. People need to grow in terms of breadth and depth. We need to break the silos across the functions," <keyword id="4632621" type="UNKNOWN" weightage="100" keywordseo="gajendra-s-chandel">Gajendra S Chandel</keyword>, chief human resources officer at Tata Motors, told <a href="http://economictimes.indiatimes.com/industry/auto/news/industry/tata-motors-scraps-designations-to-create-a-flatter-organisation-boost-creativity/articleshow/59060469.cms">ET</a>. There’s also a change in the way <keyword id="508010" type="ORGANIZATION" weightage="100" keywordseo="tata-motors-employees">Tata Motors employees</keyword> will be promoted. "There will be no time-bound promotions now, and promotions will happen only if there are vacancies," Chandel said.

Tata Motors to become a flatter organisation; scraps designations

<keyword id="42747" type="CITY" weightage="100" keywordseo="Tata-Motors">Tata Motors</keyword>, recently, underwent a restructuring exercise where it shifted around 1,300 employees to different units and asked many to leave. The company also slashed 2, 500 positions by dissolving many designations and cutting almost 8-10% of white-collar jobs. This overhaul is likely to help Tata Motors save nearly Rs 400 crore. “Without the recast, employee costs would have risen Rs 400-450 crore. It would be more if we look at the direct and indirect benefits - nothing less than Rs 300-400 crore. When we did the budgeting for this year vis-a-vis the new structure, there is a gap of Rs 400 crore,” Gajendra Chandel, head of human resources at Tata Motors, told ET. Guenter Butsheck was tasked with the biggest restructuring exercise. "We are working on productivity through skill development. Mostly 2,000 of the flexi workforce has been reduced and is expected to reduce further. We are trying to minimise the fluctuations to rationalise the workforce. We have about 30,000 blue-collar workers, so there will be a 10% reduction across all plants put together,” Chandel told ET. During its overhaul task, Tata Motors eliminated 14 layers of <keyword id="13778" type="ENTERTAINMENT" weightage="20" keywordseo="Management">management</keyword> to five.

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Tata Motors to become a flatter organisation; scraps designations

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