Assignmrnt Hrmt

TATA MOTORS’ TALENT MANAGEMENT FAST TRACK SELECTION SCHEME (A)

 

Dr. Tripti Singh, Ritu Waila and Dr. Gayatri Phadke wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.

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Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-07-03

 

On a late Friday afternoon in 2010 in Mumbai, Prabir Jha, senior vice-president and chief human

resources officer of Tata Motors Limited (Tata Motors), held his gaze on the bright young engineer Neel

Prakash seated in his office. Prabir listened to Neel and finally said, “I know your mind is made up, and I

can’t say I don’t understand your reasons,” and then, adding an extra bit of warmth, “But, we really don’t

want to lose you.” It had been at Prabir’s urging that Neel had withdrawn his resignation a couple of

months earlier. He held Prabir in very high esteem. But on that day, Neel spoke avoiding Prabir’s gaze, “I

have already accepted the other offer. Anyway, it is time I move on.” Then, sensing Prabir’s thoughts, he

looked directly into his eyes, “I have thought about this a lot, and to be honest, I see no future for me

here!”

Prabir exhaled slowly. An unplanned departure was always bad news, but this one stuck out. Neel had

been with Tata Motors for over five years and was at the top of his game. Intelligent, young, ambitious

and passionate, he had recently participated in the organization’s high potential identification program —

the Fast Track Selection Scheme1 (FTSS). Prabir remembered thinking to himself at that time, “He

definitely has the potential to make it.” He was taken aback when Neel did not make it. Neel had made it

through the entire selection process, but was unfortunately knocked out in the last stage. What went

wrong? Did Neel’s failure to qualify in the last round point fingers at the inefficacy of the FTSS selection

process? Would Prabir be right in doubting the selection process that was adopted by other Tata Group

companies as a benchmark in high potential identification? (See Exhibit 1.)

NEED FOR CHANGE?

Prabir tapped on the door of his chief learning officer, Vikram Bector. “I’m guessing you saw Neel’s

resignation,” said Prabir. Vikram nodded and then said, “Employees leave for all kinds of reasons.”

1 The fast track selection scheme (FTSS), a home-grown flagship succession planning program which had run for close to 20 years and had alumni occupying some of the best roles in the organization. The selection process was a rigorous annual effort which boasted of a success rate of less than 0.5 per cent giving it a highly sought-after and elite status. Once selected in the scheme, the employee was awarded a 10 to15-year career jump, development inputs and challenging assignments.

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“Absolutely,” replied Prabir, “In Neel’s case, however, the reason is very clear. It is his opinion that not

qualifying as a high potential leaves him with very few options at Tata Motors. Worth thinking about,

don’t you agree? How often have we evaluated the robustness of our talent initiatives? How do we know

that they are giving the desired outcome? Take the FTSS for example. Other than a few minor changes

over the years, it is pretty much the same process that was designed 20 years ago! But hasn’t the

definition of talent evolved over the last twenty years? Our business needs have changed; the scenario in

which we operate has transformed.”

Vikram nodded in agreement. He was well aware that focusing on talent as a strategic asset would serve

as a competitive advantage for Tata Motors’ future success. Finally, he spoke, “I agree. But aren’t FTSS

alumni contributing in some of the most critical roles in the organization today? Some of the best

innovations have come from them. They have proven themselves time and again as the new leadership

face of Tata Motors.”

Prabir interjected, “Well, but can we quantify how the program has delivered on the promise that it began

with? For 20 years the organization has rigorously spent time, effort and money in identifying and

developing the leaders of tomorrow. Do we have the metrics or processes to evaluate if our development

investments are in the right areas? What concerns me is that in times of increasing leadership needs, will

we face a shortage of leaders when we need them the most?”

“Hmmm,” reflected Vikram. “I am reminded of an article2 I read sometime back. It talked about how at

any given time organizations operate in a perpetual state of escalating managerial expectations. An

acceptable manager yesterday will not be acceptable today, and today’s manager will not be good enough

for the future. Think about it . . . we are still using the same set of selection criteria defined in 1991! The

organization has grown, business environment has changed and employees have also evolved. Is it time to

rethink our selection criteria and tools?”

“Vikram, these were my thoughts exactly! And I am not looking for quick fix solutions or answers right

now. But I think it is important to take a fresh look at our talent efforts — starting with the FTSS. I need

to rush into a meeting, but we need to pick our brains collectively and see what is working and what is

not. Can you put your thoughts around this and discuss with me sometime early next week?”

THE LAY OF THE LAND — AN INDUSTRY PERSPECTIVE

In the fiscal year 2012/13, Tata Motors Limited was among the largest automobile manufacturing

companies in the world by volume, with a presence across a wide range of passenger cars and commercial

vehicles in the marketplace. The business comprised two marquee British brands — Jaguar and Land

Rover.3 With consolidated revenues of around INR1,888.18 billion4 in fiscal year 2012/13,5 it was a

market leader in commercial vehicles, among the top three manufacturers of passenger vehicles in India

and the world’s fourth largest truck and bus manufacturer. Established in 1945, Tata Motors’ presence cut

across the length and breadth of India. The company’s manufacturing base in India was spread across

Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand),

2 Charles P. Bowen, Jr., “Let’s Put Realism into Management Development,” Harvard Business Review, Volume 51, Issue 4,

July – August 1973, pp. 80-87. 3 Tata Motors Annual report 2011-2012, http://tatamotors.com/investors/financials/67-ar-html/designed_to_deliver.html, accessed July 15, 2013. 4 All currency amounts are in Indian Rupees (INR) unless otherwise specified. 5 Tata Motors 68th Annual Report 2012-13 Directors Report, http://tatamotors.com/investors/financials/68-ar- html/dir_rep.html, accessed July 15, 2015.

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Sanand (Gujarat) and Dharwad (Karnataka). By 2013, Tata Motors had emerged as an automobile

company of global repute, spanning 129 countries across six continents. Through operations, research and

development, a robust dealership network and exports, Tata Motors had established itself among India’s

largest multinational companies.

The Indian economy, which recorded a growth rate of 8.6 per cent during the fiscal year (FY) 2010/11,

started showing softening indicators in the second half of FY 2010/11. This was mainly due to

inflationary pressures and continued anti-inflationary monetary stance taken by the Reserve Bank of

India. High inflation, higher crude oil prices, lower net capital inflows and lower export growth due to

worsening global economic scenario had adversely affected the Indian currency. The automotive industry

was also affected by the overall macroeconomic factors discussed above.

Further, improved infrastructure and robust growth prospects compared to other mature markets were

attracting a number of automotive original equipment manufacturers (OEMs) to India. The global

competitors brought international experience, global scale, advanced technology and significant financial

support for the operations in India, thereby intensifying the competition.6 The competitive scenario

intensified further as the existing OEMs launched new variants to protect market share and the new

entrants sought to gain a foothold in the market.

It was six months since Prabir had joined Tata Motors. New to the automobile sector, he was still learning

and discovering the challenges in his new role. Typical to most manufacturing setups, Tata Motors still

functioned in a traditional, formal and hierarchical manner. Prabir quickly gathered that the number one

impediment facing Tata Motors was the absence of a robust talent pool from which to select future

leaders. With more jobs chasing fewer people, it was a challenge holding on to promising employees.

THE WORD ON THE STREET

Engineers Ganesh Gandhi and Karan Sharma were 150 kilometres away at the Tata Motors

manufacturing plant. They were seated in the cafeteria having lunch and looked forlorn having just read

the farewell note from Neel. Ganesh said, “Three attempts . . . and he made it to the penultimate round all

three times.” He lowered his voice a little, “I hear he got a much better offer at our competitor. A four to

five level jump!”

Vishwas Kumar, a colleague, could not help overhearing as he walked past them. “Good for him,” he

said, “And he is not the only one. Given a chance, I know many who think like him. For over three years I

have been told by HR [human resources] that I am in the talent pool. Frankly, I am getting uncomfortable

now . . . nothing is happening! I have tried telling this to HR but nobody wants to listen.”

Karan shook his head. “I don’t agree guys. How can you say such things! We all joined Tata Motors as

graduate engineer trainees (GETs). I remember, for me, a job at Tata Motors was what I aspired for! I am

sure you all shared this view. The opportunity to work in the biggest automotive company in India! Don’t

lose track of that!”

Vishwas replied, “That was then, Karan. Now, I realize how top heavy the organization is. I look above

me and don’t find anything exciting. The prospect of waiting for a fixed number of years to be promoted

does not motivate me. What else could Neel have done? Is there any other option for recognition other

than FTSS? It is so frustrating!”

6 Tata Motors Annual report, 2011-2012, http://tatamotors.com/investors/financials/67-ar-html/designed_to_deliver.html,

accessed July 2, 2013.

 

 

 

 

Page 4

“But guys, look at Sanjeev Tanwar. He too was a GET like us. He has managed to do very well for

himself in Tata Motors,” said Karan.

Lost in conversation, they did not realize when Smriti Pandey and Payal Kundu joined them. Grasping

that the conversation was around Neel’s resignation, Payal said, “Everyone around Neel knows that he

was unsuccessful for three years in the FTSS selection. Nobody really cares that he lost only in the last

round. You either make it or come back to pick up the pieces.”

Ganesh added, “I can only imagine his plight in his department! For three years his manager kept him out

of any key projects fearing he would leave midway if selected.”

“I agree,” said Smriti, “You don’t even get feedback on where you need improvement. I tried asking HR

so many times on what areas I need to work on so that I can be successful in the next FTSS selection, but

nothing constructive ever comes from them.”

Ganesh frowned and said, “I wonder how much more Neel is making now?” It was anybody’s guess what

was going on in his mind.

THE PEARLS AND PERILS OF FTSS BRAND

A few weeks later, Vikram called his team members Aditi Agarwal and Kapil Bhatia for a team meeting

in his office. After his meeting with Prabir, Vikram had formed a task force to look into the FTSS

process. The team included himself, his direct reports and a small group of external experts who were

there to ensure objectivity and high standards and to help provide a third party unbiased assessment. The

task force members took nothing for granted.

Aditi handed Vikram a report saturated with charts and metrics. It also included sound bites from a

random sample of FTSS employees, aspirants, employees who did not get selected and managers who

worked with FTSS employees. The task group also interviewed ex-employees of Tata Motors — those

who were FTSS employees in the past and also those who left because they did not clear the selection

process. Analyzing the perspectives from this broad spectrum would be one small step towards separating

the signal from the noise in revamping FTSS.

Aditi sat across from Vikram’s desk and was the first to speak. “Let me give you the good news first,” she

said. “Take a look at this pie chart. About 68 per cent of employees pitched FTSS as the best avenue for

fast succession in the organization. Over 83 per cent of managers believe that FTSS candidates are a cut

above the rest.” She paused and then added, “This is what some employees had to say:

‘I am grateful that the organization has faith in me. It motivates me to set higher goals for

myself.’

‘When the executive director comes and talks to you or reviews with you what he thinks, you do

get that importance and sense of achievement.’

‘It changes your orbit completely. FTSS is no doubt an achievement; but also an opportunity.

Success comes later . . . with your own efforts.’”

“This speaks a lot on the positive impact of FTSS on engagement, aspiration and motivation,” said Aditi.

 

 

 

 

Page 5

“And the rest of this report is all bad news?” quipped Vikram.

“Well, not exactly . . . but definitely enough food for thought,” continued Aditi. “I have collated the

information into logical buckets. Take a look.”

Vikram glanced through the pages of the report. “Great work guys. It is useful to have this information.

Aditi, can you talk in brief about each of these subheadings?”

“Certainly,” replied Aditi, “and Kapil, feel free to interrupt me if you remember something I may have

missed.”

SELECTION OF RISING STARS

Opening the first slide, Aditi began, “The first section is on selection and identification of high potentials.

There is lot of overlap in the common aptitude test (CAT) for MBA entrance exams and FTSS. For all

those who have been somewhat serious about preparing for CAT, cracking the online test gets easier.

Older employees think the test is skewed in favour of younger employees who are preparing for CAT.

Similarly, non-MBAs think that lateral MBA hires have the experience with the assessment centre

activities, thus giving them undue advantage.” (See Exhibit 2.)

Kapil added,

Which leads me to think, why should the written test be the first elimination round? Has it been

scientifically validated? Also, why should all the sections of the written test carry equal

weightage? Is there any study to correlate test results/weightage to the skills and competencies

needed in a future leader? I have also heard some senior employees and non-engineers grumble

over quantitative techniques. They believe that quantitative ability is becoming the decisive factor

for success or failure in the first round. One of them said, “We need quantitative ability only at a

very basic level at our work, why is it given so much of importance for success as a manager?”

Shouldn’t the focus be on data analysis and not on pure mathematics?

Aditi responded, “I too have heard this from senior employees. There is a feeling that mathematical

ability depends on regular practice and the young engineers and MBAs are on a better platform than many

who have worked longer and are no longer in touch with these tests.”

Vikram was analyzing the data in front of him (see Exhibit 3). There was a big jump in the number of

applicants in 2010/11. Was this because the eligibility criterion for FTSS was relaxed from TM2 to TM1?

(See Exhibit 4.) Pointing to those numbers, Vikram remarked,

Are we opening up FTSS too early to the young graduates? Will an employee who has worked

for less than two years with our organization have the basic foundation of a future leader?

Whether it is functional knowledge or understanding our culture or the emotional maturity needed

at a senior level . . . won’t this only come from experience?

“I agree. Isn’t it also too early to ask them to make a choice in the direction they wish to grow — choose

between commercial management, operations management and general management? Are we

compartmentalizing them too early without even giving them a chance to find their area of interest?”

pondered Kapil.

 

 

 

 

Page 6

“I see where you are going with that,” said Aditi. “If you look at the numbers, close to 70 per cent of the

applicants are from TM1 and TM2 grade. Why are people with more work experience in the organization

not applying?”

“Which leads me to think,” said Kapil, “Should there be some weightage for tenure in the organization?

After all, it reflects on commitment and higher understanding of our values and goals. Also, wouldn’t the

probability of a solid citizen sticking around be higher?”

“Let’s make a note of it,” replied Vikram. After a while, Vikram continued, “Another disturbing update I

hear is the burgeoning of official practice clubs across locations to train and prepare employees for the

written test. Now that is appalling! If the test is being gamed, is it time to change the rules?”

“That only means that we need to stay a step ahead in the game,” said Aditi. “I know it means more work

for us, but our selection format should surprise them every year.”

“The problem with that would be to maintain rigour and consistency in selection over the years,” said

Kapil.

Vikram had to pause the meeting to answer a phone call. Aditi and Kapil took this opportunity to

correlate their notes on the next discussion thread.

DEVELOPING RISING STARS TO CAPABLE LEADERS

Following the pause to answer the phone call, Vikram motioned them to continue. Aditi said,

Moving on, our next section in the survey covered the adequacy of the developmental

opportunities provided to fast trackers. Apart from the fast trackers currently in the organization,

the task force also reached out to ex-employees who had been fast trackers. Both sets of people

overwhelmingly agreed that their status increased their commitment to the organization and

motivation. However, the common denominator for disillusionment was lack of a structured

proactive development plan and compensation not in line with others in that grade. In their

words:

‘We had that initial opportunity but future mobility within the organization is not there.’

‘Post final placement, there is continual learning for the next four to five years. But after that, the

job becomes routine and complacency sets in. If the organization does not recognize that, FTSS

employees will begin actively seeking other opportunities outside the company.’

‘You are given no inputs. Instead you are put into a sea and you learn how to swim. We need

some tools and equipment to swim through safely and smoothly.’

‘After the final placement, everything is forgotten. There is no career planning. The company is

not using its FTSS talent.’

‘I moved from the service function to marketing after selection. There was my own knowledge

challenge, territory challenge, a little bit of language challenge. And that was a miserable time I

would say . . . those six months were really tough for me. I had no functional knowledge inputs or

 

 

 

 

Page 7 guidance to help me understand the culture and politics. Sometimes learning does not look like 100 per cent success and the pressure of my FTSS title put a lot of strain on me.’

Compensation-related disillusionment:

‘Perks that came with the grade jump were good but the quantum of salary jump was

insignificant.’ ‘Tata Motors had a strange process; they give salary hikes in slabs so that is probably the most

unscientific PMS [performance management system] I have ever seen. The salary is not

commensurate with the grade.’” (See Exhibit 5.)

“All these responses make me wonder, how much hand-holding should an organization do and for how

long? FTSS gives them the initial jump. What after that? Is it the organization’s responsibility to help

them navigate up the hierarchy?” Vikram thought aloud.

Aditi looked appalled, “But sir, when we have put in so much time, effort and money in selecting and

preparing them, it is in our own interest to make sure they deliver! Is a year-long development program

enough to prepare them for their new roles? Is it worth taking the risk of moving an unprepared employee

to a position of such high responsibility?”

Vikram replied,

Yes, the stakes here are really high, Aditi. I am glad you agree. But do we know what needs to be

developed as they climb up the corporate ladder? Do we have regular interventions to identify

their skill gaps? If not, then how does one know what is blocking their progress? What they really

need after this big career jump is mentoring and coaching support to cope with the new

challenges, pressure and expectations.

Both Kapil and Aditi agreed. Vikram thumped the table,

And without that kind of support, Aditi, even the most promising young executive will feel

disillusioned. And, why would all fast trackers need the same kind of development? A one-size-

fits-all approach to development of these young fast trackers will not work. Do you see how it ties

back to the initial concern I raised about selection? Is our selection and development process out

of date?”

“Sir, speaking on disillusionment, I am quoting from my informal interactions with my batchmates,”

pitched in Kapil.

One of the biggest motivators for applying for FTSS is the opportunity to move from a technical

role to glamorous functions like sales, marketing or corporate planning — roles that will help

them move to the corporate office. It bothers me that the FTSS graduate’s judgment is clouded by

these perceptions of growth prospects, glamor, visibility, etc.

“Rightly said, Kapil. It also raises another concern. Are we oversaturating the leadership pipeline for

corporate roles? Will we have adequate leaders in the plants?” said Aditi. Vikram smiled,

 

 

 

 

Page 8 A very valid point. How do we leverage their skills? It all comes down to finding the right

balance between aspiration and business need. It is a tricky situation to be in. If we focus only on

the business need, we risk losing these high-fliers. But if we cater solely to their aspiration, we

end up with an inadequate talent pipeline.”

Aditi was deep in thought. Tapping her pen on her chin, she commented, “Do we come across as a

confused organization? While recruiting we assess an individual for certain functional knowledge and

skills, and then within a year we motivate them to move out of their core strength area.”

“Well in my opinion,” said Vikram playing along, “FTSS exists to create future business leaders. Does

that answer your question?”

“But won’t we need leaders in the core functional areas too?” asked Kapil. “An employee who aspires to

pursue a functional career path could perceive FTSS as a deterrent and hence never apply.”

Aditi added,

Talking about glamorous functions, another perception is that FTSS is very India-centric. We are

a global organization and our aspiration is definitely to become much stronger in the geographies

we already are in and enter new geographies as well. Therefore, shouldn’t global outlook be part

of the assessment process and continue in terms of project and placement?

“And by extension,” volunteered Kapil, “Should there be a plan to include our international subsidiaries

in this scheme?”

“I hear what you two are telling me. However, this might be a complex undertaking. The assessments

need to be culturally and legally appropriate and equivalent across cultures,” said Vikram.

IS IT REALLY DO OR DIE?

Flipping the page, Kapil made the next point, “I have informally heard from my friends who are in

different departments that they are just waiting for the FTSS results. If they get through FTSS they will

stay on, if not they are already looking for other options.”

Aditi nodded her head in agreement. “It is a common perception among the TM1 and TM2 levels that

FTSS is the only stairway to heaven at Tata Motors. Employees feel that failure to crack FTSS means a

long path to reach the top. They prefer to leave rather than stay. To quote one employee:

I have gone to final round of Tata Administrative Service. I have gone to the final round of FTSS.

It means I cannot be a very bad guy. I have cleared the development centre with very high grades.

Then why am I still being treated like a normal employee? There is nothing. It is a binary

decision — you are a FTSS or you are a loser.

Aditi added, “More so, there is a perception that failure changes how others in the organization view

you.” She brought attention to what one employee shared: “There is a feeling of not being appreciated, of

being undervalued. In the sense you are looked upon as if you have failed.”

 

 

 

 

Page 9

“Wait a second,” Vikram interrupted, “but what about the other avenues like the development centres and

talent pool?”

“Our survey addressed those as well,” replied Aditi. “Again the opinion here is not great. Employees feel

that these initiatives have not really picked up momentum. They are yet to see tangible outcomes from

these initiatives. They feel that these programs are taking too long, thus leaving them confused.”

The conversation was getting really interesting. Vikram felt a sense of pride hearing their intelligent

arguments and varied perspectives. The untouched tea cups were a testament to how engrossed they were.

This was exactly what he was hoping for — young minds ready to challenge and question the status quo.

MEASURING PROGRAM EFFECTIVENESS

Vikram’s secretary knocked on the door. They had not realized that it was well after office hours. “Are

you planning on working through dinner,” she asked. Vikram asked Aditi and Kapil to wrap up the

meeting. “Anything else on the list?”

Aditi responded:

Well, just one more point. [The] majority of the employees have complained that the cycle time

for [the] FTSS process is too long. The circular comes out in December and the final

announcements are made in July. Ambiguity on when the results will be announced leaves the

employees anxious and frustrated. I think what the employees have said in this regard is self-

explanatory:

“The wait has adversely affected my performance grading. Fully aware that there is a chance I

will leave the department if I succeed in FTSS, my manager has denied me all good projects this

year. My motivation has come down and so has my performance rating . . .”

Vikram said, “This should be addressed immediately. Participants should be kept informed at every stage.

Waiting for too long in anticipation is not good for them or the organization. This is a developmental

process . . . let’s not lose focus of that.”

He added, “Any thoughts on what parameters we could use to measure the effectiveness of FTSS? I’ll

need some data points to present to Prabir. The way I see it, the measures should be around program cost

and benefit, development relevance and impact and workforce outcomes like retention.”

“Also,” added Aditi, “the extent to which important functions have been filled internally? We will think

of some more.”

“But not too many . . . have you heard the phrase weighing the pig won’t make it fatter . . . Pick a few

relevant metrics. Great job, team. Get me this data by the end of this week. Goodnight!” said Vikram.

Throughout the ride back home, Vikram wondered whether they were on the right track. What he was

clear about was that FTSS had to be realigned to deliver the correct workforce outcomes. The question

was how?

 

 

 

 

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EXHIBIT 1: OVERVIEW OF FAST TRACK SELECTION SCHEME

The fast track selection scheme is a bench mark program aimed at providing a unique opportunity for employees to accelerate the pace of their careers at Tata Motors. It evaluates individuals on their managerial and leadership qualities and provides a platform to develop and explore new avenues within the company and across subsidiaries. The program encapsulates intensive training, educational inputs and rotational assignments.

Employees can choose all or any of the following three streams within the FTSS scheme:

Executive selection scheme (ESS): This focuses on general management competencies and is suitable for placement in any functional area.

Operations managers scheme (OMS): This focuses on operations management competencies and is suitable for placement in plant-based functional areas.

Commercial managers scheme (CMS): This focuses on commercial management competencies and is suitable for placement in sales and marketing areas.

 

Eligibility Criteria

All employees who meet the following criteria can apply

 

Details

Tata Motors Ltd. /

TML Drivelines Ltd. / TML Distribution Co.

TAL

Manufacturing Solutions Ltd.

Tata Marcopolo

Motors Ltd.

Concorde

Motors (India) Ltd.

Minimum Education

Qualification

Graduation

Eligible Grade

Band*

TM 1 to TM 4

4B, 4A & 3B

L3 – IV, L3 – V, L2 – I & L2 – II

G, F & E

 

Minimum Work

Experience

2 years (Minimum 1 year in the company)

 

Post Graduate Trainees are eligible to apply on completion of one year within the company.

Applicants can choose to apply for any one, any two or all of the options. There is no age limit for the applicants. An applicant can take a maximum of three attempts for selection under the scheme. (Previous appearances for ESS, OMS or CMS are counted as attempts).

Source: Tata Motors’ internal process document, 2012-13.

 

 

 

 

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EXHIBIT 2: OVERVIEW OF THE SELECTION PROCESS

Selection for FTSS comprises four steps:

Phase 1

Written Test

Phase 2

Group

Discussion and Power Interview

Phase 3 Assessment

Centre

Phase 4

Final Interview

Phase 1: All participants will have to compulsorily attempt two papers irrespective of which scheme they choose:

Details Paper 1 Paper 2

Question-based

Logical Reasoning Quantitative Technique Language Comprehension

Functional Appreciation General Knowledge

Time Duration 2 hours 1 hour

Phase 1 is a computer-based online test. All participants need to compulsorily attempt two papers. All questions are multiple-choice questions with one-fourth negative marking.

Paper 1 comprises an aptitude test (120 questions) and has three sections:

• Quantitative Technique (30 questions)

This section measures the participant’s numerical ability and accuracy in mathematical calculations. It ranges from purely numeric calculations to problems of arithmetic reasoning and includes topics such as ratios, proportion, percentage analysis, allegations and mixtures, equations, probability, statistics and data analysis.

• Language Comprehension (60 questions) This section tests the participant’s competence in communication skills with English as a medium. It includes questions on synonyms, antonyms, analogies, sentence completion/correction and reading comprehension.

• Logical Reasoning (30 questions) This section tests the participant’s ability to understand, comprehend and derive logical conclusions. It includes topics such as syllogisms, analytical reasoning, Venn diagrams, analogies, puzzles and logical reasoning.

Time duration of the paper is two hours. There is no sectional cutoff, but the candidate must get a positive score in each section. This implies a negative score or a score of zero in any section will disqualify the participant.

Paper 2 comprises a knowledge test (80 questions) and has two sections:

• Functional Appreciation (50 questions)

Functional appreciation paper aims at assessing the participant’s knowledge on general management. It includes topics in the areas of operations management, sales and marketing, finance and economics, human resources and information technology (IT).

Operations Management − Logistics, product development and design − Supply chain management − Quality management − Enterprise resource planning

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EXHIBIT 2 (CONTINUED)

− Cost management − Production processes (Lean production techniques) − Production planning and scheduling, resource management − Project management

Sales and Marketing − Pricing − Marketing and promotion strategies − Customer relationship management − Dealership management − Brand building, segmentation and targeting − Product life cycle

Finance and Economics − Understanding financial statements — balance sheet, profit and loss statement, cash flow

statement − Working capital management − Managerial costing

Capital budgeting methods — net present value, internal rate of return, payback, etc. − Sources of funds − Risk-return analysis − Law of demand and supply − Pricing under different market structures such as monopoly and perfect competition.

Human Resources − Performance management − Training and development − Industrial relations − Compensation and rewards

IT awareness − Impact of internet and social media on business − IT contribution to the revenue stream of a company − Internet and security threat to the organizations − Social virtualization

• General Knowledge (30 questions)

This section covers a wide variety of topics such as international and domestic current affairs, history and general awareness. This also includes history and current affairs of the Tata Group companies.

Time duration of the paper is one hour and 30 minutes. There is no sectional cutoff, but the candidate must get a positive score in each section. A negative score or a score of zero in any section will disqualify the participant.

Phase 2: Shortlisted candidates attend a round of group discussion and power interviews, which is held across locations.

Phase 3: Shortlisted candidates attend a two-day assessment centre which uses various tools and exercises such as in tray exercises, case study and group task. The panel here represents a cross- location and cross-functional expertise.

Phase 4: Shortlisted candidates will have a round of interview / interaction with the management committee members (MANCOM). Source: Tata Motors Internal Process document, 2012-13.

 

 

 

 

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EXHIBIT 3: SOME DATA POINTS

Number of Applications Received over the Years

2000

1500

Total 2062

1000 651 1255

500

0

145 199105 189 224 187 201 439

612

 

Year

Year-wise Data: FTSS Candidates Selected versus Currently Employed with TML

Year

No. of FTSS Selected

Grade-wise Distribution of FTSS Employees Currently in TML

Currently with TML

Current Grade EG1A EG1B EG2A EG2B EG3 EG4 TM5 TM4

1992 3 1 1

1994 2 0

1996 2 2 1 1

1997 6 3 1 1 1

1998 5 4 1 2 1

1999 7 5 1 2 2

2000 2 2 1 1

2001 5 4 1 3

2002 6 1 1

2003 9 4 1 1 2

2004 3 1 1

2005 8 7 3 4 2006 6 3 1 2 2007 3 2 2 2008 4 3 3 2009 12 11 5 6

2010 14 14 4 10

2011 14 14 4 10 2012 2013

19 19 1 18 9

Total 139 100 ESS : 40 CMS : 35 OMS : 25

2001 – 02

2002 – 03

2003 – 04

2004 – 05

2005 – 06

2006 – 07

2007 – 08

2008 – 09

2009 -1 0

2010-11

2011-12

2012-13

.

 

 

 

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EXHIBIT 3 (CONTINUED)

Grade-wise Eligible Applications for the Last Four Years

Year TM1 TM2 TM3 TM4 2009-10 198 283 135 35 2010-11 157 268 148 39 2011-12 298 524 356 77 2012-13 298 481 274 82

Successful Candidates at Each Phase for the Last Four Years

Applications received Phase 1 Phase 2 Phase 3 Phase 4

2009-10 651 489 130 59 14 2010-11 612 481 121 54 14 2011-12 1255 975 254 98 19 2012-13 2062 167 64 15 9

Source: Tata Motors Internal Data Base, updated in 2012-13.

EXHIBIT 4: GRADE STRUCTURE AND EXISTING CAREER PATH AT TATA MOTORS

 

AVERAGE CAREER SPAN FOR TOP 5 TO 10 PER CENT PERFORMERS IN TATA MOTORS

Source: Tata Knowledge Chain – Retaining High Performers – Tata Motors – Fast Track Selection Scheme.

 

 

 

 

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EXHIBIT 5: OVERVIEW OF DEVELOPMENT PLAN FOR FAST TRACKERS

Rotational Assignments Selected candidates undergo two rotational assignments of six months each to enhance their breath of experience. They are given an opportunity to work directly with the business unit heads / functional heads. This is followed by a two-month assignment in corporate social responsibility.

Educational Inputs Candidates are provided educational and leadership inputs through premier institutes such as the Indian Institutes of Management and Tata Management Training Centre. Non-MBAs are sent for a capsule MBA program, management essentials program to the Indian Institute of Management, Indore.

Mentoring Enhanced developmental support is provided to the candidate under the Anchor Me initiative.

Placements On successful completion of the rotational assignments, they are given a grade jump to TM5 level (entry level to the executive grade) and placed on critical and challenging roles as per the organizational needs on a full-time basis. They are not placed back in their parent department, hence necessitating a job rotation. Performance is monitored and further training inputs in functional area are provided.

Source: Tata Motors Internal Process document, 2012-13.