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Project Report on Designing Organizations For Performance
Excellence
Organization: Tata Consulting Engineers Ltd
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TABLE OF CONTENTSSL.NO Description Page Nos
1 Executive Summary 3
2 Introduction 4
3 Analysis 5
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1.0 EXECUTIVE SUMMARY
The corporate efficiency of an organization depends on several factors like externalenvironment of the organization, management style that is apt for different levels of
complexity, turbulence & richness, HR practices & work practices in the organization. The
objective of this survey is to find out the relationship between different factors and make a
comparative evaluation of the past and present scenario of the organization.
We have chosen TCE (Tata Consulting Engineers), a consulting firm of Tata & sons group toconduct our survey. A questionnaire covering various aspects of an organization has been
floated among employees. We have received 9 middle management level responses which
have been analysed to come up with various interesting inferences.
There is a significant increase in two variables in compared to 4 years past which are theintent to take risk and the corporate performance. There is no significant change happened
for rest all variables. Also the corporate performance has a high correlation with Strategic
Management for Innovation (SMFI) & HR practices of the organization.
This explains the rhobust nature of the company amidst of the turbulences and changes.This can be substantiated by the company financials over the past few years.
Gross revenue has grown from 19,738 lacs to 46,951 lacs the multiplier being 2.3
PAT has grown from 4517 lacs to 8360 lacs the multiplier being 1.85
Gross block of assets has grown from 4131 to 16310 lacs the multiplier being 3.94
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2.0 INTRODUCTION
Inception of TCE happened in the year 1962 after the joint venture agreement between
EBASCO services NY, USA and Tata Consulting Engineers Limited for meeting the power
needs of TATA companies.
Later the stake of EBASCO was bought by the Tata Sons and thus the Tata Consulting
Engineers limited was created.
TCE is currently into consulting areas of Chemical, Infrastructure, Nuclear, Construction,
Power, International Business, Industrial, Mining and Minerals, Steels and Metals.
The objective of this study is to understand better the relationships between Organizational
Environment, Organization Design, Top Management Styles, Organizational Processes and
People related practices and Corporate effectiveness. The study is for fulfilment of the
requirements of our course in Organizational Design and Change at the Indian Institute of
Management Ranchi. The main findings expected from the study are: (1) the identification of
contingent factors of Organization Design and Change (2) the identification of the top
management style (or mix of styles) that best facilitate the emergence and institutionalization
of performance related practices in an organization; and (2) the identification of those
processes and practices that have significant relationships with different dimensions ofcorporate effectiveness.
The different variables which are used to gauge and measure the different dimensions
mentioned above are
Strategic Choice and Operating domain Management Innovation
HR practices Management styles
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Work Practices Corporate PerformanceThese variables will help us to know the impacts on various aspects and will strengthen
us to make an assumption regarding the organization being Conservative or
Entrepreneurial , Intitutive or Professional ,Bureaucratic or Organic ,Self or Altrustic,
Authoritian or Participative.
It is done with respect to a six point scale which was asked to the respondents to fill it up
according to them.
We have tried to answer the 3 questions, which are
1. Discuss means and standard deviations for each of the variable in terms of what it means
for the organization in their domain.( This will help to measure the scale of change from the
past and present data )
2. In order to differentiate between the past and the present data do Testing of Means (This
will help us to know if there is any change)
3. Then try to do correlation and regression analysis to uncover the relationships in terms of
the variables as above.(This will help us to know the relationship between different variables
and how they drive the change found in 2nd question)
3.0 ANALYSIS
The measurement was done in 6 point scale. To make it equitable to 100 point we multiplied
a constant value of 16.67 with each variable.
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When the means and standard deviation was found for different variables of present and past
data it was found that according to the respondents that extent of turbulence has decreased
with time which can be attributed to its management. But still the extent of complexity,
richness, unfavourableness, intent to grow, intent to take risk and favourable conditions for
innovation has seen a rise.
The Strategic choice and operating domain had 16 questions in relation with it, the analysis
with respect to T Test the results were as such
Extent of Turbulence had a value of -1.511857892 for T Stat and for T critical it had
2.3036004135which show that the null hypothesis has to be retained or in simple words there
hasnot been considerable change in the past and present figures showing a decrease in
turbulence.
Extent of richness had a value of 1.54303 for T stat and T critical being 2.306004 which itself
shows that there has been no change but the change has happened in an increase of the
parameter or the richness has increased with time.
Extent of complexity had a tstat value of 1.7925 and T Critical of 1.859 shows that there has
been no change and the complexity has increased with time.
Unfavourableness of SD had a Tstat value of 1.3501 and Critical value of 2.306004 which
shows that unfavourableness has increased but with a small aspect.
Intent to grow had a Tstat of 1.619 and T Critical of 2.306004 which again shows an increase
of growth factor with time.
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The means of different variables needed to measure the different aspects of Management
styles are
Now analysing the various factors that have contributed to Management styles .
The Grand Variable of Participative which falls within the T Critical value of 2.306004 and
therefore can be said as there has been no considerable change with the time.
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The Grand Variable of Management of Innovation had change from the past to present values
in its Mean and Standard deviation values. The next step done was T Test which showed that
the change has not be considerable and falls within the distribution range.
Here the Grand Variable was Empowerment there was minimal changes of the past and
present data with respect to the means and standard deviation .The Paired T test was done
next and the conclusion that it was falling within T critical ranges and hence can be assumed
that there was status quo as a whole.
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With respect to the above table , we can see variables such as staffing , T&D, Career Mobility
, Job Security, Clarity in JD , Appraisal, Reward and the Grand variable of Total HR .The
observations were as such Staffing, Job Security, Clarity , Appraisal and Reward saw
improvement in its values in present data.
To value this improvement we did a simple T Test.
Which is described below.
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The Test showed that the T Stat Value is well within the T Critical hence can be assumed that
there has been no considerable change in its effect.
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Here the T Stat Value showed that there has been considerable change in Corporate
Performance and the values doesnt fall within the T critical distribution .
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The Correlations Table suggests that the various dependent and independent variables are
much interrelated to each other in like HR practices are related to a factor of .435 with
Strategic Management decisions.
Interpretation from Regression Analysis and Correlation Table.
Thus Corporate Performance can be equated to .155 of Mean of strategic and operatingdomain decisions + .346 of Strategic Management decisions + .051 Management
Styles - .116 of Management Innovation + .086 of Empowerment related Practices + .
238 of HR Practices .
R Square = 0.772 , So 77.2% of variation in Corporate performance can be explainedby all the independent variables variation
Corporate performance is highly dependant on companies HR policies and thestrategic management for innovation
There is a high positive correlation between corporate performance and HR policiesand Corporate performance & Management for Innovation
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