Tata Motors - Essay Example

The areas which have been analyzed in the project are the organizational structural and behavioral issues that evolved in Tata Motors due to the acquisition. Firstly a number of cultural barriers emerged in the organization. The merging of the two cultures was a challenge confronting the company. The organization required restructuring to align with that of Daewoo. Certain modifications were required to reorganize the divisions, streamlining operations, and working on the costs. The organization had to handle the psychological issues of people arising out of their apprehensions about their future in the organization.

Human resource issues like the compensation structures and grading systems were also required to be brought to a common platform. Key LearningThe important learning point is that the successful handling of human resource issues is most critical for the success of an acquisition process. Employees of the acquired company are bound to have apprehensions about their future in the company. They could suffer from low motivation and morale. The acquirer should focus on introducing such strategies which would reduce the cultural barriers and enhance their performance.

One way would be to implement a fair and justified compensation stricture for all employees. At times the organization might also plan to give extra remuneration to the employees of the acquired company. This would boost their confidence level. The organization should also define the future organization roles of employees. It should be absolutely clear about its future expectation from the employees. If there is any change in the responsibilities and activities of employees then it should be communicated to the employees.

Employees should not be kept in a position of uncertainly and ambiguity. This should fair and justified with no bias towards the domestic employees. Greater teamwork should be encouraged. Problems facing the employees should be addressed by an improved communication system. There should be a system of fair payment in the organization. Departmental managers have critical roles to play during this time. They are required to implement aggressive change interventions in the company. They are also required to identify the areas of critical uncertainties.

During such acquisitions, the interdepartmental activities are also increased greatly. The style of leadership followed in the organization should be such as to handle the changes promptly. They should not be resistant to changes as their contributions towards the organization are most critical.