Ratan Tata: Leading the Group into the 21st century

Ratan Tata: Leading the Group into the 21st century
Ratan Tata played an important part in the development and transformation of the Tata Group. In fact, Ratan Tata has managed to transform the Tata Group from a mere alliance of several companies, who failed to cooperate effectively, into a prospective conglomerate, which united companies and facilitated their interaction and cooperation. Ratan Tata worked on the consistent, qualitative changes within the Tata Group focusing on processes, human resources, and organizational culture, which proved to be key elements leading the Tata Group to the overall success in its business development.

First of all, Ratan Tata is the key figure in the transformation of the Tata Group. In this respect, it is important to place emphasis on the fact that the Tata Group performed poorly before Ratan Tata. The group consists of several companies, which failed to cooperate effectively, their organizational performance was relatively poor and they could not protect their interests effectively. As Ratan Tata headed the Tata Group, the conglomerate had started to change rapidly and the changes were positive.

Ratan Tata focused on the change of processes, which were ineffective. He stressed that efficiency is crucial for the development of the conglomerate. At the same time, to increase the efficiency, Ratan Tata improved the communication within the conglomerate and exchange of information and knowledge between companies comprising the conglomerate. On the ground of the effective communication, companies had managed to improve their interaction and cooperation. In addition, Ratan Tata paid a particular attention to the quality management. In fact, the quality management became the key toward the consistent improvement of processes within the conglomerate. The quality became the priority for all companies and employees of the conglomerate that helped the Tata Group to improve its position in the market consistently and to start international market expansion.

In such a situation, Ratan Tata focused on the improvement of human resource management. He was conscious of the importance of human resources in the contemporary business environment because human resources comprise an important marketing asset of any company. Ratan Tata focused on needs and want of employees and attempted to maximize the efficiency and productivity of their work through the job satisfaction, which was reach through the effective motivation of employees and development of positive interpersonal relationships between managers and employees.

Finally, Ratan Tata changed the organizational culture. On changing principles of relationships between managers and employees and the attitude toward the work, focusing on the quality of work, Ratan Tata contributed to the formation of the healthy organizational culture. As a result, the Tata Group had proved to be successful in its business development and international market expansion. Therefore, the example of the Tata Group headed by Ratan Tata is worth studying and other companies operating in India and other developing countries should follow the lead of Ratan Tata to improve their performance consistently.

References:

Deresky. (2010). “Ratan Tata: Leading the Tata Group into the 21st Century.” In International Management Managing Across Borders and Cultures, Seventh Edition, p.417.

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