Metamorphosis of Tata Steel -the Challenges of Change Management
METAMORPHOSIS OF TATA STEEL
-THE CHALLENGES OF CHANGE MANAGEMENT
"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things."
— Niccolo Machiavelli
The Prince (1532)
"In times of rapid change, experience could be your worst enemy."
— J. Paul Getty
INTRODUCTION
1. Tata Steel is the largest steel company of the country and at present stands as the 10th largest steel firm in the world. The company with its headquarters in Jamshedpur operates in 20 countries with a presence in about 50 countries across the world. The past few years has seen Tata Steel growing from strength to strength through the path of M&A, wherein, they have acquired Anglo-Dutch Steel company Corus(renamed Tata Steel Europe), Millennium Steel (renamed Tata Steel Thailand) and National Steel Holdings of Singapore. Its annual capacity of production is approximately 30 million tons of crude steel and has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director B. Muthuraman stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.
2. Tata Steel is part of the Tata Group of companies and like any other group companies, it is known for its good corporate governance, transparent system, employer friendly atmosphere and excellent Corporate Social Responsibility (CSR). Therefore, the questions which trouble are “why did Tata Steel require a change?” and “how was the change managed and was it difficult?”. To understand how the winds of change took place at Tata Steel and what were the hurdles, as well as the strategy to overcome them, it is essential to understand the History and Culture of Tata Steel prior to implementation of change in 2005-2006.
History
3. Tata Steel was established in 1907 in a nondescript place called Sakchi (The present day
-THE CHALLENGES OF CHANGE MANAGEMENT
"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things."
— Niccolo Machiavelli
The Prince (1532)
"In times of rapid change, experience could be your worst enemy."
— J. Paul Getty
INTRODUCTION
1. Tata Steel is the largest steel company of the country and at present stands as the 10th largest steel firm in the world. The company with its headquarters in Jamshedpur operates in 20 countries with a presence in about 50 countries across the world. The past few years has seen Tata Steel growing from strength to strength through the path of M&A, wherein, they have acquired Anglo-Dutch Steel company Corus(renamed Tata Steel Europe), Millennium Steel (renamed Tata Steel Thailand) and National Steel Holdings of Singapore. Its annual capacity of production is approximately 30 million tons of crude steel and has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director B. Muthuraman stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.
2. Tata Steel is part of the Tata Group of companies and like any other group companies, it is known for its good corporate governance, transparent system, employer friendly atmosphere and excellent Corporate Social Responsibility (CSR). Therefore, the questions which trouble are “why did Tata Steel require a change?” and “how was the change managed and was it difficult?”. To understand how the winds of change took place at Tata Steel and what were the hurdles, as well as the strategy to overcome them, it is essential to understand the History and Culture of Tata Steel prior to implementation of change in 2005-2006.
History
3. Tata Steel was established in 1907 in a nondescript place called Sakchi (The present day
References: 1. http://www.tatasteel100.com/heritage/index.asp. 2. www.wikipedia. 3. http://www.tatasteel100.com/heritage/history/history06.asp. 4. ‘De-layering at Tata Steel’ by Col Rajeev Kumar in Journal of Organisational Behaviour Education 1 of 2006, pg 36-57 http://www.neilsonjournals /TataSteel 5. ‘Reinventing a Giant Corporation: The Case of Tata Steel’ by DVR Sheshadri and Arabinda Tripathy in Vikalpa, Volume 31, No1, Jan-Mar 2006, pg 133-146 6. ‘How Tata Steel Made it to the Top of the World-Managing Change’ by R Jagannathan in Business Standard, Mumbai 02 Jul 04. 7. ‘The Tata Group: HR Challenges’, a case study from www.Case Place.org.