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THE TINPLATE COMPANY

OF INDIA LIMITED

ORGANIZATIONAL BEHAVIOUR-MODULE 1
GROUP 1
Abhinay Sali B15125
B15151

Navneet

Akarsh Kulkarni
B15156

Prafull Aggarwal

B15127

Rajiv

What is the name of the Organization? What goods and/or services does it
produce/provide? Describe the companys organizational mission.
Describe the way it has grown and developed.

The company under study is Tinplate Company of India (TCIL) which is the countrys
largest producer of tinplate. The company was established in 1922 and it pioneered the
manufacture of tinplate in India. It alone manufactures over a third of the tinplate produced in
the market. The company's products are used for canning and packaging of goods in the
processed foods, paints, beverages, dairy products and other industries.
Areas of business
TCIL provides metal packaging solutions. The product range can be
divided into two categories: Electrolytic Tinplate Products (ETP) line which
consists of O.C. (Oil Can), OTSC (Open Top Sanitary Cans), NOC (Non-Oil
Can), Double reduced tinplate sheets for Oil Can T.F.S. (Tin Free Steel)
sheets, Printed and Lacquered sheets and Cold Run Mill (CRM) products
which include Hr Pickled coils, full hard coils, Temper Rolled/ Double
Reduced (Dr) coils.
It manufactures electrolytic tinplates or tin-free steel fabrication of cans
for packaging edible oils, processed foods, dairy products, beverages,
pesticides, and paints, and for manufacturing battery components.

Organizational mission
The company defines its mission as Service customer requirements of green
packaging by offering reliable, cost-effective & value added tin mill products.
The company aims at incorporating corporate sustainability at the heart of its
operations and set a benchmark in sustainable manufacturing practices. Its
mission is to acquire the status of supplier of choice for the production of till mill
products in Asia. The company seeks to fulfil its objective by creating and
enhancing value for stakeholders by encouraging growth and competition.

Growth and Development


History

Transform (19972005)

Changing the Rules

Beginning for
Future

1920 incorporated

Internal Capability

Associate

Processes

Company of Tata
Steel Pioneered

modernization through de-

India.
Pioneered tinplate
production in

Near closure
position in 1997

Strong
commitment and

+40% dependent on

Strong customer processes :

convenience in packaging

Niche positions in

Exports 25% of business

downstream can making

Overall process

incl. beverage cans in

orientation

India Int

People / Leadership

infinite potential:

consumption in India
0.3 kg & even China
has 1.0

Environment friendly
packaging media and
consciousness is
spreading in India

India with potential


to be Food Factory

Integrated solutions

allegiance of
workforce

Great opportunity :
per capita

Expand Solution Center


with features to promote

Dynamic
converging forces /

Exports

bottlenecking
Account Management,

India.

Expand to 380,000 MT
with ETL-2 and CRM-2

Expansion and

production in

Robust operational
processes: TOP, TPM,

tinplate

Growth:

to the World and

Rightsizing Development of

Solution Centre

processed foods

Business Managers

investment to offer a

industry growth

Empowered workforce

differentiated value

WIN) training

proposition with

Products

All product range: From


only OC to full range OC,
NOC, OTSC, TFS.

Light-weighting thru DR

lacquering and printing

Retailing boom in
India

India Growth Story

Solutions Development to

will lead to housing /

promote visibility of tin

infrastructure

cans with brand owners

Demographic profile
changes with

Relationships

growing need for


processed foods

capability

Consumer perception

Soft DR development

surveys / research to gain

Financial Restructuring and

consumer insights towards

consumption is just

strong internal generation

packaging

starting.

capability to plough back

Use research studies to

Robust IT infrastructure

connect with brand owners

(BaaN, Lotus Notes, VPN)

in end use industries and


develop ability to reach
marketing managers from

Beverage cans

Governance practices:

purchase managers

Risk Management,

Leverage Consumer

Succession Planning, Code

Research for Branding &

of Conduct, CSR towards

Communication

Affirmative Inclusiveness
Envision as Packaging
Solution Provider and BCG
validation of growth
aspirations

With Corus, become


world 2nd largest
Industry research:

Heading Asia Pacific


Working Group of ITRI to

External / Industry

develop chrome free

Focus

norms expected by EU

Tinplate Promotion Council

Launch research study on

to promote image and

viability of low tin

consumption of tinplate in

coatings for processed

India:

foods

International Seminars

Award Nights for Packaging


Excellence towards innovation &
convenience

Joint participation in
exhibitions / seminars

Regulatory environment
focus thru ITMA, DGFT,
DRI, PFA, implementation
of packaging laws

Source: TINPLATE CORPORATE SUSTAINABILITY REPORT (2008-09)

2. Draw an organizational chart of the top management in your


organization. Write down the names of the top managers and the
positions they occupy. What is the span of control of the CEO? Do you
have any comments on its appropriateness? How many levels are there in
the organizations hierarchy? Does the organization experience any of the
problems associated with tall hierarchies? Which ones?

Organizational chart of the top management in TATA Tinplate

Top managers and the positions they occupy in TATA Tinplate

Mr
Koushik
Chatterjee
(Chairman
)

Mr. Tarun
Kumar
Daga
(MD)
Mr.
Chacko
Joseph
(CFO)

Mr.
Santosh
Antony
(VP S&M)

Mr. S V
Raman(D
GM Works)

Mr. Harjit
Singh
(Chief
CS)

Dr. Atul
Srivastav
a (Chief
Med)

Mr.
Kaushik
Seal
(Secretar
y)

Span of Control of CEO:


Span of Control is defined as the number of direct subordinates a manager
supervises [HBS 2014]. Span of control for CEO/MD is the number of direct
subordinates directly reporting to him. As shown in above organization
chart Tata Tinplate MD has 6 direct subordinates so his span of control is
6.
Span of control of MD/CEO is very important figure as it ultimately
determines the organization structure, if the span of control is small then
organization becomes too much tall and if span of control is big then it is
difficult for MD/CEO to manage the personnel. It is important to
understand managers effectiveness very much depends on the optimum

Chairman
of the
board

Managing
Director

Chief
Financial
Officer

VPMarketin
g & Sales

DG
Manager
- Works

span of control.

Chief
(Corporat
e
Services)

Chief
(Medical
Services)

Organizations Hierarchy:
TATA Tinplate has relatively flat organizational structure. It has a workforce
of around 1500 employees and has 3 level structure of executive
employees (E Level), supervisors (O level) and workers/staff (U Level).

Problems associated with tall hierarchy:


Tall hierarchy structures suffer from problems such as

Difficulty in communication, not only inter departmental but intra departmental also
Poor interdepartmental coordination as interdepartmental communication exists only
at top management level

Company
Secretary

Tall organizations are little bit rigid and creativity of employees is suppressed

TATA tinplate has relatively flat structure and number of employees are
also less. It does not suffer from any problems associated with tall
hierarchies.

Q.)3 How many employees does the organization employ? Any details about the various categories
of employees?
Ans3) The company in question i.e. Tata Tinplate employs 1714 employees. These Employees are
classified in 3 categories

Executives (E-level),
O-level and
Unionized Employees

As stated above the E- level encompasses the executives present within the organization whose
count is equal to 333 in all. The O-level encompasses the supervisors present within the
organization whose count is equal to 283 They are responsible for the development and activities
of their staff members and finally the U level comprises of workers and staff whose count is 1025
in the organization. Now apart from these 3 categories there is another broad and important
category which is of the Temporary workers and that adds up to 73 within Tata Tinplate
Apart from the number of employees in each of the above categories the table below also gives
information about the gender, average age, location of workplace, qualification and department
of all the employees within that category in Tata Tinplate.

Q4 How differentiated is your organization? Is it simple or complex? List


the major roles, functions, or departments in your organization. Does
your organization have many divisions? If your organization engages in
many businesses, list the major divisions in the company.

The Company has a highly differentiated structure with specialized roles for each
functional division. The company has maintained balance between differentiation
and integration by working in cross functional teams to ensure that different
perspectives into decision making are taken into account. Also, with the growing
needs of the market and increasing competition, the company has a dedicated
Marketing and Sales division. The structure is a simple hierarchical structure with
one-boss accountability.

The various departments in the organization are:

Works
Human Resources/IR
Administrative
Security
Sustainability
Security
Town Services
Marketing and Sales
Finance
Corporate Planning
Strategy
IT
TQM
Management Services

The works of Tinplate are situated at Golmuri, Jamshedpur and its registered
office is at Kolkata. The companys Zonal Offices are located at Bangalore, Delhi
and Mumbai. The company is not a part of any joint venture and does not own
any subsidiary. Also, there are a hospital business of which the company is a part
of, other than packaging industry. The company runs the Tinplate hospital as
well. It was started as a welfare measure for the employees of the Tinplate
Company, however, now it has been turned into a center of profit.

5.
How do the organizations managers judge its effectiveness?
-external resource approach? Internal process? Technical? Or how well is
the organization doing when judged by the criteria of control, innovation,
and efficiency? Is there a balanced scorecard measure? MBO? What goals,
standards, or targets are they using to evaluate performance?

The organisation focuses more on the internal efficiency, coordination ,


motivation and employee satisfaction. Thus , the managers use the
internal process approach to judge the effectiveness of the organisation.
The organisation constantly focuses on innovation as the key criteria of
sustaining in the packaging industry. It has been excelling continuously
over the years in the pan TATA group initiative TATA INNOVISTA with its
new product developments. The organisation recently launched its new
product PAXCEL and has a dedicated cross functional team working to
improve the efficiency in the process by improving the quality at a lower
cost. The organisation sets standards as prevalent in the packaging
industry to benchmark its own processes and measures the variance with
the actual output to take corrective actions and employ best practices in
the industry

Yes , there is a Balanced Score Card in place. The organisation uses a drill
down approach starting from the score card of the Chairman and then
going down till the lowest hierarchy to decide the Key Responsibility Areas
(KRAs) of individual employee. The balanced score card has a set of
strategic objectives decided for the current financial year and goals are
set to achieve one or more of these objectives. The goals and targets of
upper level hierarchy are used to decide the goals in the balanced score
card of any particular department. Eg. Every goal that has been
incorporated in the balance score card of a Department Head shall aid in
achieving one or more goals set in the Balanced score card of the
Divisional Head. The organisation then decides upon a set of Projects to
be undertaken for the financial year in order to achieve those goals and
targets mentioned in the Balanced Score Card.

During the goal setting process at the beginning of every financial year,
factors such as human resource development index, sustainability index ,
budget , health &safety , audit scores , process documents rating ,
internal operations , customer feedback and satisfaction , etc. play a
significant role. The goals , standards and targets vary across different
functions but are linked with the BSC of one of the members of the Top
Management team. However , there is a common focus on core TATA
values like sustainability , HRDI , Community relations , etc to achieve the
unified vision of the entire TATA group as a whole.
How has your organization responded to the design challenges? (a) Is it
centralized or decentralized? How do you know? (b) What about complexity?
Can you identify any integrating mechanisms used by your organization? What
is the match between the complexity of differentiation and the complexity of the
integrating mechanisms that are used? (c) Is behavior in the organization very
standardized, or does mutual adjustment play an important role in coordinating
people and activities? What can you tell about the level of formalization by
looking at the number and kinds of rules the organization use?

The organization has faced significant issues with severe decline and erosion of
net worth in the 1980s and early 1990s which necessitated the for an
organizational design change. The organization had to plan a turn around to
achieve control over its activities to streamline its objectives. TCIL managed to
get the working capital required and remain firm footed in the operations. It
could manage the industrial relations well at manufacturing units and transition
to new technology wasnt that difficult. The opening up of the Indian economy in
1991 made things worse with competition from imports challenging the viability
of TCIL. The medieval labor-intensive technology employed by TCILs hot-dip plat
became turned uncompetitive and was on the verge of closure when the raw
material supplier, Tata Steel, decided to do away with the producing steel bars.
The cold-rolling mull of TCIL got delayed to make things worser leading to cost

and time overruns. It took a lot of time for the new cold rolling mill to get itself
stabilized. A host of productivity and quality issues plagued the company. The
competition from imports starting eating away into the margins and market
shares of TCIL, the capacity constraint on the cold-rolling mill posed new sets of
problems for TCIL to operate at its rated capacity. Losses started overflowing
their dams and the flood of closure loomed. In 1997 amid mounting pressure a
turnaround strategy needed to be stitched as soon as possible to put TCIL back
on track. That was when Bushen Raina took over as TCILs managing director.
The situation was depressing with the motivation levels of the employees low.
The exodus of the best talent from the company made the situation dire adding
to the plummeting of sales. A Design change was around the corner with Tata
group and TCIL stepping up with the Tata Business Excellence programmer
(TBEM)
Employees were sent to training programmes with Mr. Raina trying to instill
enthusiasm and drive in them. The CEO didnt end it there he directly
communicated with the plant supervisors and often the shop floor workers and
union foremen directly. Open forums were arranged to enable the quick bounce
back of the organization. With norms like Openness and transparency starting to
become part of the control mechanism, there was a shift in the communication of
the policies and strategies too. They were communicated well in advance. The
TBEM process staryed the turnaround of the organization in the period 19972001 with the following changes seen.
Financial restructuring in order to curtail the high debt-equity ratio
Downsizing post the closing of hot-dip plant
Enhancement of operation scale
Driving excellence not only in manufacturing but also in marketing
There was significant emphasis on changing the mindsets with focus on cost
saving and quality consciousness forming the DNA of every employee. With
assistance from Tata Steel TCIL started to re-orient its strategy from the
processing of downstream steel to delivering cost effective metal-packaging
solutions for edibles. Initial there was resistance to TBEM but with time
employees embraced it.
TBEM provided TCIL with a structured approach and focused on the importance
of customer centricity while not compromising on quality. The framework
ensured that many issues got highlighted with the gaps in the plans and the
strategies of the company getting highlighted. A growth plan was sketched.

There were many levels of employees, TCIL wanted to build a team based culture
so they started with setting up of cross function teams with emphasis on
empowerment and innovation.

The working hierarchy was taken paid attention with minute detail. The company
even initiated to build competency of the unionized category employees with
attention to customer focus and quality. Each employee was given complete
exposure staring from acquisition to delivery. The workers got an entire
perspective of the entire organization.

(a) The organization is mostly centralized with the responsibilities of each level of employees
being communicated from the top management and clear instructions and goals given to the
employees about the targets. There isnt much decision power resting with the employees in
planning or setting up team specific goals
(b) Though there is a lot of complexity with way too many functions in the organization, the
mechanism of integration is predominantly taken care of by the TBEM
Unlike Tata Steel TCIL has a lot emphasis on marketing and the standard TBEM process of
the Tata group had to flex itself for the requirements of TCIL, with cross functional teams in
action at the lower levels of the organization the integration is taken care of and the strong
functional orientation of the teams with each team being its own customer focused there is a
balance between differentiation and integration
(c) In theory though there is a mutual adjustment, the strong focus of the organization has been
on standardization and the excellence programme pursued religiously by the management
pushes the organization towards formalization with targets like doubling up the capacity the
management is aggressively pursuing formalization. The leader of industry also has a good
degree of coordination among functions which provides it the flexibility as when it is needed.
But the norms and rules built over the years make the organization inch towards
formalization.

Does your analysis lead you to think that your organization conforms more
to the organic or to the mechanistic model of organizational structure?
Why?

A mechanistic structure is one with differentiated roles, standardized processes,


clearly defined hierarchy, centralized decision making and a vertical information
flow which works best in stable environments. An organic structure is a complete
opposite of that which brings in flexibility and ambiguity in the organizational
design that works best for unstable environments. With attention to customer
focus and quality, there is a well-defined structure in the organization with cross
functional teams working at the lower levels of hierarchy. So, the organization
has tried to strike a balance between differentiation and integration. This when
coupled with one boss accountability and given that the organization has a
hierarchical structure in the middle to top management, it is imperative that TCIL
conforms more towards differentiation. In regards to mutual adjustment vs
standardization, quality can be achieved better with standardized processes. This
has been recognized by TCIL and the excellence programme does just that. It will
be safe to say that TCIL adopts standardized/formalized processes in order to
achieve its goals. Although the CEO asks the employees at the lower levels of
hierarchy for suggestions in strategy, the decision making power is still
centralized inside the organization. In regards to the information flow, it is mainly
vertical with certain exceptional cases where senior level management asks for
suggestion from the people working under them. Moreover, TCIL works in a
relatively stable environment being a part of the canning and packaging industry.
The packaging industry is growing in India at the rate of 22-25% and is currently
the fifth largest sector in the Indian economy (Source: PIAI). Thus the
environment is conducive to growth with multitude of opportunities.

TCIL Organizational design conformity with Mechanistic and organic structure

Role Differentiation
Decision making power
External Environment
Process Standardization
Information flow

Mechanistic Structure

Organic Structure

Q 8) What type of structure (for example, functional, product division,


multidivisional, matrix) does your organization have? Draw a diagram showing is
structure, and identify the major subunits or divisions in the organization.
Why does the company use this kind of structure? Provide a brief account
of the advantages and disadvantages associated with this structure for your
organization. Can you suggest a more appropriate structure that your company
might adopt?
Ans. The structure followed by Tinplate is function organizational structure in
which departments/specializations are divided on the basis of various functions
present within the organization such as marketing, finance, manufacturing or
even the engineering department.
In case of Tata Tinplate some of the functional divisions present are

TQM(Total quality management)


Strategy
Marketing and sales
Town Security
Finance
IT

Advantages of a functional structure are as follows:

Employees become skilled and efficient as they work in a single functional department
Hierarchies are very clear. Results in reduced communication channels
There is extremely less possibility of duplication of work. Good coordination within departments is
also present

Disadvantages of a functional structure are as follows:

There is a possibility that there would be poor integration and communication with other departments
Manager is the sole authority when it comes to decision making, this may go against the organization.
Functional departments have the knack of focusing on their own goals, rather than the organizational
goals

The company uses Functional structure because


Functional structure works well in a stable or certain environment where your
business goals and objectives do not change much over a period of time. The
packaging industry, i.e. the industry in which Tata Tinplate is operating in, does
not change much with time in terms of business strategy and objectives hence
Tata Tinplate uses functional structure. Adding to that there are a number of

other advantages that a functional structure has which have also been stated
above.
An alternate structure that can be followed by Tinplate can be
Front-back end structure which is the method followed by most of the large U.S.
industrial companies as well. As Tinplate is the market leader in Indian packaging
industry i.e. large scale industry, they need a structure which can provide proper
integrating and communication between departments which is not present in the
functional structure. Secondly the front end system helps in faster
implementation of projects as the product teams are tightly knit with each other

Structural overview of Tata Tinplate

Remuneration

Board

Audit

Of Directors

Committee

Committee of
Board for
Growth Plan

Ethics &
Compliance
Committee

Committee
Shareholder
Grievance
Committee