ACQUISITION OF JAGUAR AND LAND ROVER

ACQUISITION OF JAGUAR AND LAND ROVERIn a changing world the only constant is metamorphose.The world hates alternate hike up, until now it is the only thing that has brought progress.Charles Kettering (Brainquotes.com) alter is a pervasive influence. We ar totally subject to continual form of ane form or another. transfer is an inescapable part of some(prenominal) social and g e reallywherenmental life. (Mullins, 2007909)Organisational swap message signifi scum bagt alteration in both whiz or much of the tasks, techniques, structures and pot of the organization. (Saiyadain, 2003174) diverseness is introduced either to improve effectiveness or to a parameter to external transposes. Managers face complex and challenging pressures and opportunities while introducing ex course in an organization. They must ensure the efficient bearing of resources and, at the same snip, construe ship vogue of guaranteeing the long-term effectiveness of the organizations for whic h they officiate. Planning, executeing and coping with switch has been, and take onms promising to bide, one of the chief(prenominal) challenges facing negotiaters, in both the private and public sectors, today. In manu positionuring, banking, education and wellness c atomic number 18 transpose is the norm. (Carnall, 2007)Managing transport at the opera hat of fourth dimensions is a challenge since it goes beyond the realms of logic and delves into the realms of perception. People be naturally inclined over centuries of conditioned behavior to be convenient in the present and whatever announcement of reposition makes them perceive impudent situations, naked slew, bran- saucy places, and newer security issues. Once again, when man is asked to think extraneous his comfort zone, his set-back perceptions ar mostly defensive and invalidating, hence managing vary is a challenge. Managing limiting in a personal or family environment is difficult bounteous in li ght of changed equations, changed sparing status, and changed relationships. However, in that respect is seldom any competitiveness or a threat of economical or emotional security from ones near and loved ones. None the less, the two points mentioned in the earlier paragraph close to man perceiving change negatively remain a challenge. The process of organizational change stern be initiated measuredly by managers, it can evolve slowly within a department, it can be imposed by specific changes in policy or procedures, or it can arise through external pressures. assortment can affect all prognosiss of the operation and functioning of the organization. Most planned organizational change is triggered by the collect to respond to new challenges or opportunities presented by the external environment. Planned change represents an intentional attempt to improve, in some(a) of the essence(predicate) way, the operational effectiveness of the organization. and so, the basic objectiv es of managing organizational change argonModifying the doingsal patterns of the members of the organizationsImproving the ability of the organization to fill in with changes in its environment.It is withal important for management to understand the reasons for, and constitution of, disapproveance and to adopt a clearly defined strategy for the initiation of change. The successful management of change is an increasingly important managerial responsibility. (Mullins, 2007)The merger and erudition boom has brought change on its trail through by industry and commerce. A major aspect of organizational change can be viewed in an erudition. In enunciate to understand this facet, I studied the gaucherie of an Indian company getting a UK one the Tatas acquiring painter grease bird of passage. Tata is seen to value its employees as much as its profits, and prides itself on equality and fair management. After a great deal of bidding and negotiations, the Tatas bought the earli er cut through owned panther Land rover, for a whopping USD 2.3 billion. Both the corporations entered into mutual agreements regarding various aspects such as bear facilities like IT, visualise and ontogeny of the automobiles to keep the singularity entire. By studying this organizational change, I analysed and foc subroutined on, how smooth converse and understanding can lead to copying with opponent of any sorts. writings REVIEWThe concept of organizational change is a wide change as opposed to small changes. Examples of wide change whitethorn admit a change in a mission, restructuring operations, new technologies, mergers and achievements, re-engineering etc. change should not be done for the sake of change its a strategy to accomplish some overall goal. (www.management protagonist.org)Typically there atomic number 18 sloshed resistances to change. People are afraid of the un cognise. Often there are contrast goals in the organization. Organizations wide change s often go against the genuinely values held dear by members of the organization. Thats why organizational change discusses ingested changes in the cultural aspect of values and beliefs.Planned Organization miscellany Process-( deportment Modification) organizational change calls for a change in the one-on-one behaviour of the employees. both organizational change whether introduced through a new structural determination or new technology attempts to make employees modify their behaviour because unless the behaviour patterns change, there go away be very little impact on the effectiveness of the organization. Kurt Lewin came up with a tether-phase process of behaviour modification to implement planned change.Change in OrganizationRequiresChange in the behaviour of individualsCalls forUnfreezingMovementRefreezing(Ahmad, Gilkar and Darzi, 2008)Unfreezing The process of unfreezing is the toughest phase where one has to overcome the inertia of roaring practices and complacenc y to convince others that the change is not just necessary entirely desirable too. Lewin believes that change should not come as a storm to members of the organization, unannounced change would be socially destructive and opposed by the members. (Cole, 2005) The management must pave the way by unfreezing the situation, so that members would be go outing and ready to accept the change. This way any resistance to change can also be neutralised.Movement Once the unfreezing process is execute and the members of the organization accept and recognize the requirement of change and nurture been in full prepared to accept the same, their behaviour patterns bring in to be re tendencyed. (Kumar and Mittal, 2002) This can be done by establishing new reporting relationships and creating reward/incentive corpses.(Hunt Simms) The lawsuit process involves development of new attitudes or behaviour and the implementation of the change. (Mullins, 2007)Refreezing Change or movement phase co ntinues until a new balance is do between the forces driving and res carrying change. thereof the aim of refreezing is to establish this balance at a higher level of performance. This is done by backup mechanisms for display case policies, structure or norms (Mullins, 2007910) which positively reinforces the new ways of surveying. (Hunt Simms) During this phase, individuals internalize the new behaviour developed in the movement phase.Resistance to Change-Change in an organization can have different responses. The most overt one is resistance. Any change whether beneficial or superficial, is likely to figure some resistance which is unremarkably from the people of the organization, especially if the present system favours them. Respect for individuals and communication are the basics required to help people adapt to change. (Hunt Simms)In a sense, resistance to change is positive. It leads a academic association of constancy and predictability to behaviour. If there i s not some resistance, organizational behaviour would pullulate on characteristics of chaotic randomness. (Ahmad, Gilkar and Darzi, 2008)Resistance to change can take more forms and it is often difficult to pinpoint the exact reasons for the resistance. The forces against change in work organizations include ignoring the needs and expectations of members when members have insufficient information about the nature of the change or if they do not perceive the need to change. Fears may be expressed over matters such as employment levels and rail line security, de-skilling of work, passage of job satisfaction, wage rate differentials, changes to social structures and working conditions, loss of individual control over work, and greater management control. (Mullins, 2007Resistance to change can be classified into two categoriesIndividual resistance organizational resistanceReasons for individual resistance to change within organizations include the pursuanceSelective perception P eoples own interpretation of stimuli may lead to selective perception which further form a biased view of a crabby situation, and thus cause resistance to change. For model, trade unions may have a stereotyped view of management as untrustworthy and therefrom oppose any management change however well founded aptitude have been the intention.Habit people ladder react to situations in an addicted manner. Proposed changes to habits, especially if the habits are well established and require little effort, may well be resisted. However, if there is a clearly perceived advantage, for example a reduction in working hours without loss of pay, there is likely to be less, if any, resistance to change.Inconvenience or loss of freedom If the change is seen as likely to prove inconvenient, make life more difficult, take down freedom of action or result in increased control, there will be resistance.Economic implications People are likely to resist change which is perceived as reducing the ir pay or pecuniary rewards, requiring an increase in work for the same level of pay or playing as a threat to their job security.Security in the agone In clocks of difficulty or when faced with new or unfamiliar ideas and methods, people tend to reflect on their past to find a sense of security. For example, in bureaucratic organizations, officials often tend to place faith in well established procedures and methodologies and adhere to them as giving a feeling of security.Fear of the un cognise Many major changes in a work organization present a degree of uncertainty for example, the introduction of new technology or methods of working. These changes which confront people with the unknown cause anxiety or fear.Reasons for organizational resistance to change within organizations include the take overingOrganisational gardening Culture is pervasive in nature, develops overtime and may not be voiced to change. It has a epochal effect on organizational processes and the behaviou r of the supply. An ineffective culture may result in a lack of flexibility for, or acceptance, of change.Maintaining stability Organizations pay much attention to maintaining stability and predictability. The need for formal organization structure and the division of work, narrow definitions of assigned duties and responsibilities, established rules, procedures and methods or work can result in resistance to change.Investment in resources Change often requires large resources like buildings, technology, equipment and people, which may already be commit to investments in other areas or strategies. For example, a car manufacturer may not find it way to change to a socio-technical approach and the use of autonomous work groups because it cannot afford the cost of new purpose-built industrial plant and specialised equipment.Past contracts or agreements Organisations enter into contracts or agreements with other parties which umteen times limit changes in behaviour for example, orga nisations operating under a special licence or permit.Threats to power or influence Change may be seen as a threat to the power or influence of certain groups within the organization, such as their control over decisions, resources or information. For example, managers may resist the introduction of quality circles or worker-directors because they see this as a threat to the power in their own positions. (Mullins, 2007)Managing organisational changeThe successful management of change is clearly essential for continued economic performance and competitiveness. fresh ideas and innovations should not be perceived as threats by members of the organization. The efforts make by management to maintain the balance of the socio-technical system will influence peoples attitudes, the behaviour of individuals and groups, and thereby the level of organisational performance and effectiveness. (Mullins, 2008)Overcoming resistance to changeA manger need not always be attach with the task of change in organizations where resistance is strongly prevalent. There are some techniques which can assist him in overcoming resistance. But he should not underestimate the variety of ways people react to change and the ways they can positively influence specific individuals and groups during the change process. (Ahmad, Gilkar and Darzi, 2008)There are a number of ways in which resistance can be minimised. These have been developed from the ideas of Kotter and Schlesinger (1979)Education and Communication Educating people and providing them with adequate information before the change takes place may not lessen resistance but should reduce the unnecessary stress. Managers should kick the bucket their ideas via one-on-one discussions, presentations or reports, so that people understand the need of rand see the logic of the proposed change.Facilitation and support If the proposed change is likely to mean changes in skills, time needs to be abandoned for training and development. Managers n eed to provide all the support they can and lead an ear to their subordinates and their grievances.Negotiation and Agreement It is possible to reduce resistance by offering incentives to active or electric potential resisters.Co-option Another way to overcome resistance, obtain commitment and increase the quality of the change, in an individual or group is to give them a role with responsibility and status attached, in the implementation of the change.(Hunt Simms)Organizational Responses to Disruptive ChangeChristensen and Overdorf, identified troika factors that affect organizational responses to different types of change and what an organization can and cannot doresources access to abundant, high quality resources increases an organizations chances of coping with changeprocesses the patterns of interaction, co-ordination, communication and decision-making employees use to transform resources into products and services.values the standards by which employees set priorities t hat enable them to judge whether an localise is attractive, whether a customer is more or less important, whether an idea for a new product is attractive or marginal.There are three possible ways in which managers can develop new capabilities to cope with change manufacture new organizational structures within corporate boundaries in which new processes can be developedspin out an self-governing organization from the existing organization and develop new processes and values withdraw a different organization whose processes and values match closely the new requirements.(Mullins, 2007)Actions to Secure Effective ChangeKotter and Cohn list the following eight travel for successful large-scale change.Create a sense of urgency among applicable people, whatever the nature or size of the organization.Build a guiding team with the credibility, skills, connections, reputations and formal authority to provide change leadership.Create visions which are sensible, clear and uplifting, and sets of strategies.Communicate the vision and the strategy in order to belt along understanding and commitment.Empower action and remove obstacles that s extend people acting on the vision.Produce short-term wins that help to provide credibility, resources and momentum to the overall effort.Dont let up but maintain the momentum, consolidate early changes and create wave after wave of changeMake change adhere by nurturing a new culture, and developing group norms of behaviour and divided up values.(Mullins, 2007)A Chosen Case Tatas learnedness of puma Land spiderAllow me to illustrate- In an economics class, some students felt that capitalism has negative connotations leading to disparities in society and hence socialism is a cleanse option. The economics class teacher threw change in the direction of the students by offering an average gradation to all students ala socialism. At the end of the first test the students were all given B which was the cumulative average of the c lass. The students who usually did well did not find this change acceptable as their As became Bs and so in the next test the good students do lesser effort and the poorer students hoped that the performance of the good students will keep their grade at B. But in the second test, since the good students had made lesser effort the average of the class fell down to C and this made everybody unhappy with change and fulfilled the innate sympathetic belief that change is negative and bad. Arising from the above example, it becomes obvious that the change agent must not only have a powerfully beneficial idea but also have plans, programs, initiatives and good communication to help overcome the known and existing devil of negative perception to change in the gentle mind.Its in the above context that we assess how the new owners of the legendary puma and Land wanderer dealt with the organizational change in light of the self-control transferring to the Indian industrial giant-the house of Tatas. Tata Motors is Indias largest automobile company, with revenues of US$ 8.8 billion in 2007-08. With over 4 million Tata vehicles plying in India, it is the leader in commercialized vehicles and among the top three in passenger vehicles. It is also the worlds fourth largest hand truck manufacturer and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in some(prenominal) countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. by means of subsidiaries and associate companies, Tata Motors has operations in South Korea, Thailand and Spain. It also has a strategical alliance with Fiat. (www.tatamotors.com)In January 2008, Tata was named the prime bidder for the upscale puma and Land Rover units besting two other finalists, Indian automaker Mahindra Mahindra Ltd. and US private righteousness firm One Equity Partners LLC. On March 26th, 2008, Tata Motors announced its acquisition of the painter-Land Ro ver businesses from Ford Motor Company for a net precondition of US$ 2.3 billion on a cash free, debt-free basis. The final procure consideration includes the ownership of Jaguar and Land Rover or lasting royalty-free licences of all necessary Intellectual Property Rights, manufacturing plants, two advanced design centres in the UK, and worldwide network of National Sales Companies. Ford entire the sale of its Jaguar and Land Rover businesses to the Indian multinational Tata on the 2nd of June, 2008. Tata Motors established that Mr. David Smith, the acting Chief Executive Officer of Jaguar Land Rover, would be the new CEO of the business. (www.expressindia.com)Long term agreements and contracts have been entered into for supply of engines, stampings and other components to Jaguar Land Rover. Other areas of transition support from Ford include IT, accounting and access to test facilities. The two companies will continue to cooperate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and power train engineering. The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a transition period. (www.tatamotors.com)Britains traditionally feisty and combative trade unions, cheered Tatas purchase of Jaguar-Land Rover. The top bosses of Unite, the UKs largest trades union called this acquisition real good news for the UK automotive industry because according to them Tatas are into making cars, not just money. Tata also promised that including harboring jobs and existing employee contracts for at least(prenominal) the next 5 years as well as place money into J-LR to grow the business. Tata recognised the Britishness of the two brands and have no intention of closing any plants in the UK. In fact they are connected that after 2011, all the Jaguar Land Rover products will alleviate be designed and manufactured in the UK. (www.timesofindia.indiatime s.com)The purchase agreement was seen by trade unions as safeguarding jobs in the UK for two reasons. First , Tata committed to follow an existing five-year plan to invest in and develop the car manufacturing businesses. Jaguar and Rover employ just under 16,000 people, most of them in the Midlands and at Halewood near Liverpool. Also, Tata is contracted to buy engines and other parts from Ford until at least 2012, which should protect employment at Fords plants in Dagenham and Bridgend. As of now, Tata has no plans to relocate manufacturing capacity to low-cost India. Instead it appears to see the purchase of Land Rover and Jaguar as a route into the middle to top end of the global motorcar market. Ford also reassured employees of Jaguar and Land Rover that they will face no financial risks from the putsch and that their tributes are safe because it will inject 300 million into their pension scheme, to eliminate any deficit. (www.bbc.co.uk)DISCUSSIONThe Tata deal is known to be o ne of the most ambitious purchases of a British found manufacturer, by any company from the fast emerging economies of Asia. It is considered to be a momentous time for all at the Tata Corporation. The announcement of Tatas acquisition created many unusual challenges including cultural, financial, industrial and communication challenges. But, the Tatas managed this situation thoroughly and coped with any resistance they faced from the employees or the company really well.An advantage Tatas had an edge as they had very latterly acquired the steel producer Corus Steel. This gave them an upper hand over the rest of the bidders as they had enough knowledge concerning the laws, mind set, unions, heritage, business culture etc which helped them understand the British environment better than the rest.Pre Soaking the government Tatas also did a very wise thing by approaching the government of the United body politic before the final bidding. They pre-soaked the government and most right ly convinced them about the acquisition which helped them out with understanding the scenario in the country.Education and Communication education is the life blood of any organisation and the way in which any idea is communicated can make a difference between a productive and committed workforce and one that is sceptical and unreceptive. Tatas took extreme tutorship in their communication, initial interaction, minimal disturbance to operating practices to ensure that they had enough time to understand the national and corporate culture at Jaguar Land Rover. This also made the Jaguar Land Rovers management and staff secure about their job and financial security and thus provided them with the conviction to protect them both.Retaining many officials A judicious decision which the Tata Corporation took was to retain the chief executive officer and many other top level management of Jaguar Land Rover. This made it easier and convenient for the Tatas to transmit important informat ion and communicate effectively through the employees own credible leaders. Thus the workforce was more receptive to any decision or windup arrived at than that was expected to be.Negotiations and Agreements Corporate values must be understood, regard and appreciated while entering into such propositions. This is essential to ensure that the unite organisation is run to the new organizational culture that they have collectively created. Tata entered into long term agreements for supply of engines, stamping and other components of Jaguar Land Rover. Both, Ford and Tata will continue to cooperate in different areas like design and development. This motivated and provided incentive to the company and its employees and thus Tatas avoided any resistance in this area.Facilitation and Support Different perceptions of time was a particular challenge for both Jaguar Land Rover and Tatas. Indians usually take more time than the Brits to meet and interact with employees at all levels and develop relationships. This on the safe and sound conflicted with the approach of the Brits who paid greater importance to things being done pronto and relationships can wait for later. The Tatas built excellent relationships with the management and the company. They took one smell at a time. They have even agreed to keep intact the plants in the UK and committed further that the designing and manufacturing will be based there as well.Co-option Including and involving the present employees of Jaguar Land Rover is an extremely important area which needed to be targeted. This is generally so that the employees feel a part of the proposition and refrain from any sort of resistance to the acquisition.Thus from the above derived points and discussions, it is evident that the Tatas coped with resistance to change very well. There were no major problems that they faced regarding resistance and in fact were cheered by the employees for their entire proposal. The complete catch in the whole acquisition is time. All that the corporate world, specifically which of India and the United Kingdom needs to do is to wait and watch. It is with time that one will know how successful or unsuccessful this proposition of Mr. Ratan Tata (Chairman of the Tata group) will be.CONCLUSIONA bountiful recommendation that I want to touch upon is that there is an enormous need for an organisational behaviour division in all corporations. Organisational change is not an easy task. It is serious business and may be one of the most tough decision making processes which no organisation can avoid either. The main aspect of change is faced and resisted by people ranging from the ones working in the organisation, running it or may be even the ones outside it. Thus the facet that organisational change impacts the most is organisational behaviour. It may be said that the human resource department can handle such deeds. But, in my ruling a human resource department looks into and understands matters of people of one particular country or culture. With the emerging multicultural, multi-geographical and multi-country mergers, acquisitions and joint ventures, it is of crucial need to digress an organizational behaviour division which handles these features of organisational change to secure the financial health and reputation of a company.To conclude, I feel that steps should be taken to ensure that the human element is not ignored in the acquisition of Jaguar Land Rover because at the end of the day it is the unite effort of each employee that will have the biggest impact on the well-situated outcome of this acquisition. This can be done by watchfully selecting potential leaders in the organisation to help carry out and communicate the necessary changes to all other employees as this will subsequently help ensure they feel cared for. It is exceptionally necessary that the Tatas take out time to understand and appreciate the impact of a changing organizational culture on its employees and at the same time, recognize the challenge of bringing unneurotic both the national cultures or else the company will risk a lot at stake.With estimates signifying that as many as 80% of transnational and cross cultural mergers and acquisitions fail, it is only two years down the line in 2012 when all the agreement and contracts entered into by both the companies end, that we would have known whether Mr. Tatas team in spite of the unforeseen global economic downswing were able to achieve a smooth organizational change and manage it with lan or were they 8 of the 10 that fail.To summarize, I began my essay with a brief introduction on managing organizational change and my specific case to illustrate the theme of the stem. This was followed by deeply understanding the main theories and points supporting managing change in the literature review section, where I focused mainly on resistance to change and different ways to cope with it. I then brought forward the c ase of Tatas acquiring Jaguar Land Rover and discussed the basic facts and information of the acquisition which led me to the discussion section. I pointed out various ways by which Tatas coped with resistance of any kinds and on paper seemed like one of the most perfect acquisitions. In conclusion, I further gave in some of my recommendations to support the case and of what I felt was the need of the hour.REFERNECESAhmad, Gilkar and Darzi (2008) Organisational Behaviour Atlantic Publishers DistributorsCarnall, A.C. (2007) Managing Change in Organizations 5th ed. Essex Prentice vestibuleCole, G. A. (2005), Organisational Behaviour Cornwall Thompson LearningHunt, M. S. Simms, H. Organisational Behaviour and Change ManagementKumar, N. and Mittal, R. (2002) Organisational Behaviour New Delhi Anmol PublishersMullins, L.J. (2007) Management and Organisational Behaviour 7th ed. Essex Prentice HallMullins, L.J. (2008) Essentials of Organizational Behaviour 8th ed. Pearson EducationS aiyadain, M.S. (2003) Organisational Behaviour New York Tata McGraw-Hillwww.bbc.co.uk Available at http//www.bbc.co.uk/blogs/thereporters/robertpeston/2008/03/tata_and_british_jobs.html Accessed on 2/01/2010www.brainyquotes.comwww.expressindia.com Available at http//www.expressindia.com/latest-news/Ford-Tata-closing-in-on-Jaguar-deal/267399/ Accessed on 1/01/2010www.managementhelp.org Available at http//managementhelp.org/mgmnt/orgchnge.htm Accessed on 30/12/2009www.tatamotors.com Available at http//tatamotors.com/our_world/press_releases.php?ID=370action=Pull Accessed on 1/01/2010www.timesofindia.indiatimes.com Available at http//timesofindia.indiatimes.com/home/specials/Three-cheers-for-Tata-Britains-trade-unions/articleshow/2911159.cms Accessed on 1/01/2010