Hum an R e so u rc Comm ercia e Div l V eh Pass icle B ision enge usine r Car ss U n s Bu

it usine ss Un Pune it

2004 - 2005

Com pany Cu

lture

Company Culture
Vision Core Values
Integrity Customer Focus To create economic assets for road Passion for transportation for Engineering the bulk movement of goods and people and participate in managing these over the life of assets in order to create and capture economic value Corporate Citizenship To be a world class corporate constantly furthering the interests of all its stakeholders

Mission
Shareholders :To consistently create shareholder value by generating returns in excess of WACC during the upturn and at least equal to WACC during the downturn of the business cycle Customers :To strengthen the Tata brand and create lasting relationships with customers by working closely with business partners to provide superior value for money over the life cycle Vendors and Channel Partners: To foster a long term relationship so as to introduce a broad range of innovative products and services, that would benefit our customers and other stakeholders Employees:To create a seamless organisation that incubates and promotes innovation, excellence and the Tata core values Community: To proactively participate in reshaping the countrys economic growth and to take a holistic approach towards environmental protection

TATA Code of Conduct - The binding force for the TATA group

HR VISION
To enhance & maintain Human Capital , which will make the Organization , a World Class Player and further the interest of all stakeholders.

HR MISSION
Source , Develop and maintain Human capital , which will drive the culture of customer focus , high performance and seamlessness. Create , Learn and Implement best in class HR practices and processes in pursuit of excellence. Retain and attract the talent by improving the brand through employee delight and loyalty. Improve Community friendliness.

HR Vision & Mission flows down from the Organization's Vision - Mission

An ocean called Tata Motors Unit Pune- CVBU Pune- PCBU Jamshedpur Lucknow TOTAL Permanent
7152 1721 4144 608

Temporary Trainees
7166 3640 3374 279 767 201 1538 244

Contractors (Approx)
3200 400 4000 400

13934

12947

4737

8000

An year in the life of Employee Relations Manager Immediate Events

Policy on Payment of Bonus Elections of Union Wage Agreement Elections Wage Revision Jamshedpur Mumbai Pune, CVBU Lucknow Mumbai

2006 2006 2006 2006 2006

Events to follow
Wage Agreement Wage Agreement Wage Agreement Wage Agreement Wage Agreement Mumbai Pune, PCBU Jamshedpur Telcon Tata Daewoo, Korea January April April April June 2007 2007 2007 2007 2007

Employee Demographics
Unit Pune Jamshedpur Lucknow Mumbai Tata Motors Sr. Management
259 134 20 147

Managerial
2094 956 193 981

Supervisory
1470 1198 57 172

Bargainable
8739 4594 578 295

Total 12562 6882 848 1595 21887

560

4224

2897

14206

Age-wise
4%

11%

70% m
28%

Avera ge Ag e
upto 25

anpo wer t

: 41.8

e 26to35chnica
36to45 46to55 over 55

years

35%

lly / p rofes siona lly qu alifie d

22%

Hum an

Reso urce Sco

recar

Financial Perspective HRF1 HRF2 HRF3 Maximize return on human capital Optimize HR Costs

Customer Perspective HRC1 HRC2 Enhance Top Management Satisfaction Enhance High performer Satisfaction Excel in Corporate Governance & Social Responsibility Meet regulatory and environmental requirements Map & Source / develop strategic competencies Career Planning Management of Talent Pool and key resources Succession Planning Link HR to business Ensure right competency mix in all HR employees Enhance HR high performers satisfaction Strategic HR through SAP Excel in journey to excellence (through TBEM)

Manpower Planning & Rightsizing to beHRC3 a lean & flexible organization HRC4 HRC5 HRC6 HRC7

Internal Process Perspective HRP1 HRP2 HRP3 HRP4 HRP5 Enhance efficiency of recruitment process Strengthen Performance Management System Enhance Employee perception on key HR processes Provide Training & Development to focused groups Compensation Management

Learning & Growth Perspective HRL1 HRL2 HRL3 HRL4 HRL5

EM PLO YER Br

and

Employer Brand The TATA Brand

Ethics Leadership with Trust Responsibility Improving the quality of Life Fairness Integrity Excellence

TATA Motors Brand

Engineering & Technical excitement R&D and Manufacturing Challenges of Industrial marketing Commercial Vehicles Challenges of Consumer marketing Passenger Cars Financial marketing Vehicle financing Strong Financial Fundamentals Dynamic HR processes

Employer Brand

The brand statement MORE CAR(eer) per CAR(eer) is communicated to potential employees and new recruits through: Orientation programs Mentors meets Internal Communication forums Town-hall meetings Skip-Level meetings Intranet Website Posters

Rec ruit me

nt

Recruitment
Cadre Group is one of the primary sources for leadership and key positions FTA & Graduate Engineer Trainee Scheme have existed for 50 years Visit more than 120 Institutes across the country Brand Building initiative to improve presence in premier campus
Mega Event PPO to Summer Trainees Visits to Plants Title sponsorship at Cultural and Sports events Workshops PPT Guest Lectures Sponsorship of Business Events

Involvement of Management

Merchandises and Give-aways as stand out events

Impact on Student Community

Learning & Development

Launch of Branded Training Programs Branded Training Programs Presence of Top Management Melting Pot Training linked to business needs Advanced Functional Training Innovative New Training Methods Training Delivery Mechanisms Training for Senior Leadership CIRO Model which has been identified as a best practice by TQMS Individual Training Calendar Foreign Training CIRO based evaluation Performance based inputs Apprentice Training for other Companies

Learning & Developmental inputs

Developmental Inputs CII - Fulbright Scholarship Universitas 21 Single Subject Offering E-MBA from SPJIMR Sponsorship for M Tech in IITs Sponsorship for Diploma in Safety MEP in IIM-Ahmedabad Skill Up-gradation E-Learning

For Whom Senior Executives from Talent Pool Hi performers in Managerial cadre Hi performers in Managerial cadre Hi performers in Technical areas Safety Professionals Executive Selection Scheme All Operatives All employees

Reimbursement for acquiring higher qualification All employees Part Time Diplomas All Operatives / Supervisors

Talent
Category
Executives / Managers Supervisors Bargainable

Methods
FTSS (ESS,OSS,CMS), Talent Pool Engineer Trainee Scheme, Internal OT, Master Craftsmen / Mechatronics Scheme

Bargainable to S Scheme, SVCVP, Team Leadership, Master craftsmen / Identification of Pool Mechatronics Scheme

Fast Track Selection Scheme Executive Selection Scheme Operations Manager Scheme Commercial Manager Scheme Talent Management Scheme Technical Specialist Scheme Development Centers Development of Pool Career Planning & Job Rotations Multi-Rater Feedback Training & Educational Inputs E MBA, Universitas 21 Leadership Development Centre

Rightsizing
1. Rightsizing was initiated through implementation of Early Separation Schemes covering the entire employee spectrum. 2. Through these schemes the Company has reduced its employee strength by over 6000. 3. Together with the de-integration of some of its operations, natural attrition etc the Company has achieved a workforce reduction 33% over the last 5 years
FOR THE EMPLOYER 1. Improve productivity 2. Optimize manpower costs to face global competition 3. Weed out low performers 4. Align workforce to the strategy of the Company FOR THE EMPLOYEE Opportunity for premature separation

Favorable for employees who want to 1. Lead a retired life buffered with a continuous stream of income 2. Start their own business, IIM Ahmedabad uses this as a case3. Shift to another employment study on Early Separation Scheme

Performance Rewards & recognition

The alignment criterion Individual Performance Plan Business Plan

BSC at Business Level

Individual Targets

Difficulty Level

Weightage

BSC at Work unit level Periodic Review

Individual Performance Plan

Actual Annual Achievement

Performance Rewards & recognition Managing Performance Target setting - Cascading deliverables from Company & BU
objectives Mid year review of targets and achievements Stricter adherence to rating norms De selection of non performers Rewarding Performance Compensation Reviews indexed with Market and with individual Performance Sharper Differentiation in Compensation based on performance

Performance Rewards & recognition

1. 2. 3. Supervisors are assessed through yearly appraisals Bargainable employees are assessed through reviews of SQDCM & SVCVP Schemes High performance is sustained through productivity and quality linked payment based on Quality Index as perceived by the customer

Hall of fame for Balanced Score Card

Indus trial R el

ations

The Pune Set up

Tata Motors
Maval CVBU PCBU ERC

TAL
CVBU ERC PCBU
Maval Employees Union

Tata Motors Employees Union

One internal union for 3 units with more then 90% Membership

Canteen A part of Industrial Relations Canteen Societies Guest House

Pimpri
Maval

Chinchwad

TD Hostel

TECCS Employees Union

TECCS Employees Union

Manpower Status Auto Div Non Auto ERC

Bargainable Supervisory TM EG Trainees 9389 574 446 47 1694 553 726 100 615 692 99 346 43

Maval Total
244 54 24 35 12019 1280 1542 190 650

Total

10456

3688

1180

357 15681

+ Flexible Manpower

Tata Motors Employees Union.. Total Elected Representatives = 49

Main Office Bearers Managing Committee

President

Working President

General Secretary

3 Vice Presidents Treasurer 3 Jt. Secretaries

5 Managing Committee Members

Other Representatives

34 Representatives

Benefits.. Benefit
Provident Fund Gratuity Superannuation Post Retirement Medical Benefits

The Delight Factor

Telcos own trust. Loans easily available for Housing, Illness, Marriage, Education, Natural Calamities within 4 days 18 days for every year for each completed year of service after 25 years of service and 30 days after 30 years of service Company contributes 15% of employees Basic +PP every year to LIC of India as a Superannuation amount Up to 70 years of age Reimbursement of Rs. 300 per year, Hospitalization reimbursement of maximum Rs. 65000/-. Benefits to Survivors.

Parivar Suraksha Yojana The benefits to the Legal Successors I.e. Wife, Mother or Father of the Social Security Benefit Employees Mutual Benefit Fund Special Leave
20 Months Basic +D.A. in case of untimely death

employee in case of untimely death of employee 50% of last drawn Basic + D.A.

Contribution: Rs 5 p.m (Forwarded as emergency help to family of employee in case of death. The help is also given on 8 other different occasions. Participation in the National Games/Sports, professional recognition at the National or International Level, Family Planning Operation (Spl.leave for max.4 days +Rs 1000/-, Injury on works and to work

Benefits.. Benefit
Medical Assistance Scheme Long Service Award Canteen Transport Leisure Personal Development

The Delight Factor

Rs 75/- per day after 20 days of illness and maximum amount payable is Rs 5000/For 25 years and 35 years of Service. Only Rs. 10 p.m and Special Lunch once a month Only Rs. 5 p.m

Reimbursement of Picnic Claims upto 600 kms Cash Award and reimbursement of fees for addition in Professional/Technical Qualification Skill (1976)/Versatility (1976)/ Cross Versatility (1976) Performance (1979) MMTO BENEFITS (1982)tests

Recognition Company Loans

Man of the Month, Divisional Man of the Year and Tata Motors Man of the Year For solving the problem of Housing, Vehicle and Amenities

Wage / PLP Settelment

Wage settlement/Representingthree years Sr Union is signed every Body PLP settlementMotors Employees Union 1 Tata is signed every year

Signed for CVBU & ERC

2 3 4 5 6

Maval Foundry Employees Union Pimpri Canteen Employees Union Chinchwad Canteen Employees Union T D Hostel Employees Representatives

Maval Foundry Pimpri Canteen Chinchwad Canteen T D Hostel society

Guest House Employees Representatives Guest House society

Canteen Management Sr Area Dining halls VIP Halls Tea Pantries

1 2 3 4 5

CVBU & ERC (Pimpri) PCBU Chinchwad works Maval Foundry TD Hostel
Total

6 4 2 1 1
14

1 1 2

20 3 3 1 27

22000 Thalis served everyday 27000 people use Breakfast and Tea (Employees as well as visitors)

More then 100,000 . Potato Wada, Idlis, Samosa etc are consumed for Breakfast. Around 50,000 Chapattis 6,000 lts of milk 25,000 bananas 250 Kgs of Papads are consumed every day 675 Kgs of edible oil 1 ton of sugar , rice & atta each 1200 Kgs of Vegetables

IR provides all administrative support for management of canteen societies and day to day canteen services

Bus Service
DETAILS
Employees Using the Service Buses Contractors Routes Total Kms Per Day Total Kms Per Month Maximum Distance Covered (Lonavala)

Numbers
12300 + 4500 = 16800 142 05 345 21122 536860 55 Kms

FINANCIAL IMPACT PER MONTH

RS. 57.9 LAKHS

Behavioral Training by Industrial Relations

Programme TitleParticipants /Objective No. prog.
20

ofPopulation/ Way Forward Mandays covered

2187 2187 mandays Vision 2006 World Class 25 programmes 1500 employees 12 programmes 600 employees 100% temporaries to be covered

Stability & Growth of an organisation

Bargainable Opinion makers to prepare mindset for wage settlement

Workers Education Workmen To increase general Programme - ongoing awareness Temporary orientation Temporary operatives programme Induction to Safety, General Discipline and Tata Code of Conduct Study tour Members of TEU to understand problems of dealers, fleet owners & service stations Canteen Employees Customer Orientation DevptTo align supervisory staff to changing requirements of the organisation

11

528 3168 mandays 6440 1610 mandays

124

Think Customer

350 175 mandays

Supervisory Programme

Industrial Relations Orientation 12 programmes 300 employees to be covered

Behavioral Training by Industrial Relations

Programme Title Participants /Objective No. of prog. Population/ Mandays covered Way Forward

Financial Planning Employees with low take home salary

4 programmes 100 employees

Induction Newly Elected Union Leaders Programme - TEU To increase general awareness and aligning them to Company policies and organisational requirements Behavioural Canteen Employees to Training for enhance quality & Canteen employees performance of canteen services HR Learning Forum HR employees Qualitative informative sessions

1 programme 45 employees

12 programmes 350 employees

10 programmes 100 mandays

Vision 2006

Aligning the employees with world class thinking

Almost 220 employees covered Ongoing Ongoing

Supervision A Honing the supervisory skills Science and an Art

Co rp

ora te

Cit

ize n

shi p

Activities For Encouraging Talent Suggestion Scheme

Sports Activities Photographic Club Pune Ventures Pune Clubs Kalasagar Community Development Activities

Co-operative Societies

Chaitanya for recycle of Scrap Wood Sahajeevan for MS Scrap bailing Trimurthy for conservancy and allied services Shreekripa for fettling of castings Saptashringi for battery cable assembly and welding

Womens Organisation
Telco Grihini Telco Vanita Sahakari Grahak Sanstha for consumer goods Telco Grihini Telco Grihini Cable Harness Co - Op.Society. Telco Grihini Shivankala Co Op Society. Telco Grihini Electronic Co Op Society. Telco Grihini Vividh Karyakari Co Op Society Masala. Papad,. Stationary, bags etc.

COMMUNITY DEVELOPMENT ACITIVITY

Coaching in swimming for employees children during vacations. Distribution of Text Books. Shramdaan for Tree Plantation, Construction of village approach roads. Summer Training in Sports/Games, Trekking, Computers. Demonstrations/Exhibitions/Lectures on social, educational, Saving, career guidance for children etc.

Telco Kalasagar Activities

Dramas One Act Play Annual Art Exhibition Kalasagar Diwali Issue Orchestras Regional Cultural Shows Any Other Programmes Poem Competition

Rural Development Programme

Preventive & Curative Health Services Provision of Drinking Water Social Forestry & Fruit Tree Plantation Enhancing Educational Facilities Soil & Water Conservation & Water Management Providing Irrigation Facilities Alternative Sources & Energy ( Bio gas & Gobar gas Plants, Solar Energy) Village Sanitation Teachers Development Programmes Smokeless Chullhas Family Visits.

Global Reporting Initiative

Established in 1997. Joint initiative of American NGO CERES (Coalition of Environmentally Responsible Economies) and U N Environment Program (UNEP) GRI guidelines incorporate indicators and parameters to report under economic, environmental and social aspects

New Initiatives Undertaking an integrated water shed development Program benefiting 12 villages in East Singhbhum Jharkhand Construction of village ponds and supply of drinking water to Varale village affected by drought benefiting 17 villages in Maharashtra Programs for womens empowerment where young girls and women are enabled to be self reliant at Alipur and Bibipur in Uttar Pradesh Promoting a new society Prabuddh Shram Samvida Sahkari Samiti to encourage rural people in Jainabad Uttar Pradesh Motor Mechanic Training to Tribals in Sakwar District Thane

Golden Peacock Environment Management Award by World Environmental Foundation In 2003

Asse ssm e

nt . ..

Assessment . . . Employees
Instrument
Organizational Assessment Survey Divisional ESI Surveys Quality Function Deployment Exit Interviews HR Helpdesk Appeals TCoC Joint Mgmt Forums IR Committees

Management
Schedule
December September May

Frequency
Annual Annual Annual On separation of employees Round the year Round the year Round the year Monthly Monthly

Instrument
Top Management Survey

Frequency
Annual

Schedule
August

24 X 7 X 365

Steering Committees

Monthly

Round the year

External
TATA Business Excellence Model (Internal /External Audit) CII-EXIM ISO TS 16949 Best Employers in India Hewitt Associates

Innov

ations

in HR

SAP-HR Solution
SAP HR & Payroll Implemented for all employees (including Temporaries/ Trainees ) of Tata Motors and HVAL, HVTL & TAL SAP HR Modules Implemented are :
PERSONNEL ADMINISTRATION ORGANISATION MANAGEMENT TRAINING & EVENT MANAGEMENT RECRUITMENT TRAVEL MANAGEMENT COMPENSATION MANAGEMENT

HR & Payroll Information system Positive Time Management implemented for plant locations. SAP HR System Audited

HR Helpdesk Objective

To provide all employees a single window access to HR

To ensure a standardized and systematic approach towards answering employee queries and grievances

Rec ogn ition

External Appreciation
Amongst the Top 25 Best Employers in the Country

Company of the Year Award as part of the Economic Times Awards on Corporate Excellence Corporate Platinum Award at India Manufacturing Excellence Award 2004 Golden Peacock Award for Corporate Social Responsibility Tata Motors CVBU Pune wins the National Energy Award Tata Motors Jamshedpur wins Energy Efficient Award Hall of Fame for BSC Tata Motors Training Division wins the Golden Peacock National Training Award 2004

External Recognition

Best Company Award at 12th National Work Skills Competition First Prize in Suggestion Scheme Contest at 14th National Convention Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practice National Best Training Establishment Award for the 6th time by Directorate General of Employment and Training, Govt of India Good Corporate Citizen Award by BCCI TERI Award for environment Best Employer by EPF Organisation Strong Commitment to TQM by CII Exim

Thank You

Good Human Relations not only bring great personal rewards but are essential to the success of any enterprise J R D Tata

Milestones

1994 Tata Sumo (UV) launched 1991 Produced one millionth vehicle 1990 Produced first inhouse LCV Tata 1986 407 Technical agreement with Benz expired 1969 1967 Engineering Research Centre set up at Pune 1954 Daimler-Benz collaboration for CVs 1945
Entered the Car market with Sierra & Estate Incorporated as a Public Ltd. Company with a factory at Jamshedpur for manufacturing locomotives

Three millionth vehicle rolled out 200,000th Indica sold, 500,000th PV rolled out 2004 Indica platform achieves break-even 2003 Indigo launched Agreement with MG Rover for Indica 2002 exports 100,000th Indica rolled out 2001 Indica V2 launched DWCV Acquisition 1998 Safari Launched, Two 1997 millionth vehicle rolled out. 100,000th Sumo rolled out Indica launched

9 mo nths after

500, 000

c ro s sing

CAR

the 4 00,0 00 m a

S.

rk

Performance Scorecard FY04

Revenue Growth
Highest ever Net Revenue of Rs 13,223 cr

Profit Performance
Highest ever PAT Of Rs 810.34 cr

Dominance in domestic market

59% Market share in CVs 16% Market share in PVs

Successful Growth Strategy

Subsidiary performance
Turnaround All except one are profitable

International Business
Revenues of Rs 1,006 cr (up 111% YoY) Acquisition of DWCV

EVA positive
On stand alone as well as Consolidated basis

No. 1 Automobile Company in India

Financial Results : Turnover

18000 16000
Turnover (in Rs. Cr)

15552.42

14000 12000 10000 8000 6000 4000 2000 0 2000-01 2001-02 2002-03 2003-04 8164.22
+ 9.2%

10855.05 8918.06
+ 21.7% + 43.3%

Employee Relations

1. 2.

Tata Motors has historically maintained harmonious relations with its employees We strive to resolve most of the issues amicable in the three year wage settlements

CII Eastern Region recognized Tata Motors for Best Practices in Industrial Relations" in 2003-04

Competency System

Clarifying, Roles & Accountabil ities Performanc e Expectation s& Rewards Selection & Staffing

Career Planning & Succession Planning

Work & Organizatio nal Design

Phase I Position Profiling Phase II People Profiling

Phase III Development & Career Plans

Job Competenci es

Defining Individual Developme nt Needs & Training

Assessing Capability

3 categories of competencies Leadership Functional Core

Balancing work and personal life

Telco Employees Pension Scheme Adarsh Nidhi Parivar Suraksha Yojana Group Insurance Bhavishya Kalyan Yojana Services & Benefits Transport Facilities Interest free festival advance Crche, Maternity Leave Loans Public Holidays Compensation Architecture Y Y Y Credit Cooperative Society Travel Insurance Medical Benefit Scheme Payment Assurance Letters for medical emergencies Post Retirement Medical Benefit Scheme Location Y Y Y Y Y Y Gender Category Function

Examples of tailoring policies, services