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A PROJECT REPORT ON

“ORGANISATIONAL BEHAVIOUR”

IN THE PARTIAL FULFILLMENT OF

M.COM IN BUSINESS MANAGEMNT

BY

GIUDED BY

PROF.

2014-2015

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CERTIFICATE

This is to certify that Ms. ------------- Ro!! "o . #t$%e"t of M.co& Part-II '#EM (

)))))))))))))))))))))))))))))))))))))))))has co&*!ete% the fie!% +or, a"%has s$&itte% a re*ort for the sa&e i" *artia! f$!fi!&e"t of the re$ire&e"t of the co$rse y

UNI/ER#ITY OF MUMBAI for the atch 0123-0124 i" the to*ic Pro5ect Re*ort O"

“ORGANISATIONAL BEHAVIOUR”

The st$%e"t has +or,e% $"%er o$r 6$i%a"ce a"% %irectio" the sai% re*ort is ase% o" o"afi%e

i"for&atio".

I"ter"a! G$i%e Professor 

Pri"ci*a! E7ter"a! E7a&i"er  

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DECLARATION

I ============================== st$%e"t of M.co& 'PART- ( se&ester 

)))r% '0123- 0124( herey %ec!are that I ha8e co&*!ete% the *ro5ect o"

“ORGANISATIONAL BEHAVIOUR”

The i"for&atio" s$&itte% is tr$e a"% ori6i"a! to the est of &y ,"o+!e%6e.

ROLL NO 9

PLA:E9

DATE9

 ;;;;;;;;;;;;;;;;;;; 

#IGNATURE

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ACNO!LEDGEMENT

I +o$!% !i,e to e7te"% &y si"cere 6ratit$%e to a!! those *eo*!e +ho he!*e% &e i" the

#$ccessf$! co&*!etio" of &y *ro5ect tit!e% -

“ORGANISATIONAL BEHAVIOUR”

I tha", to a!! &y teachers for their i"8o!8e&e"t i" &y *ro5ect +or, a"% ti&e!y

assess&e"t that *ro8i%e &e i"s*iratio" a"% 8a!$e% 6$i%a"ce thro$6ho$t &y st$%y.

I a& tha",f$! to the staff &e&ers of a" or6a"i<atio" +ho ha8e he!* &e I" s*ite of 

their $sy sche%$!e they share% their ti&e a"% 6a8e the re$ire% i"for&atio" a"% e7*!ai"e%

&e the asic co"ce*t the %ra+ac,s +hich the fir& has to face if *o!icies is "ot for&$!ate%

ti&e!y a6ai"st Ase"teeis&.

My s*ecia! tha",s to &y *are"ts a"% fa&i!y for their co"sta"t s$**ort a"% assista"ce

to &a,e this *ro5ect +orth *rese"ti"6 efore yo$. Last!y I ac,"o+!e%6e &y si"ce tha",s to

 *ri"ci*a! “DR. P.D.SHINDE” for her 8isio" a"% co"sta"t &ora! s$**ort.

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INDE"

1. INTRODUCTION #

2. ORGNISATION BEHAVIOUR $ CONCEPTS %

&. E' ELEMENTS OF ORGANISATIONAL BEHAVIOR (

4. STRUCTURE )

5. MECHANISTIC FORM OF ORGANISATION 10

#. ENVIRONMENT 1&

%. BASIC APPROACHES 1#

(. BEHAVIORAL THEORIES 21

). MANAGEMENT SILLS 2210. CASE STUD' 24

11. REFERENCES &2

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CHAPTER 2 ORGNISATION BEHAVIOUR - CONCEPTS

Or6a"i<atio"a! Beha8ior is fie!% of st$%y that i"8esti6ates the i&*act that i"%i8i%$a!s 6ro$*s

a"% str$ct$re ha8e o" eha8ior +ithi" or6a"i<atio". It is the st$%y a"% a**!icatio" of 

,"o+!e%6e ao$t ho+ *eo*!e act +ithi" or6a"i<atio"s. It is a h$&a" too! for h$&a" e"efit.

It a**!ies roa%!y to the eha8ior of *eo*!e i" a!! ty*es of or6a"i<atio"s s$ch as $si"ess

6o8er"&e"t schoo!s a"% ser8ices or6a"i<atio"s. It co8ers three %eter&i"a"ts of eha8ior i"

or6a"i<atio"s9 i"%i8i%$a!s 6ro$*s a"% str$ct$re. OB is a" a**!ie% fie!%. It a**!ies the

,"o+!e%6e 6ai"e% ao$t i"%i8i%$a!s a"% the effect of str$ct$re o" eha8ior i" or%er to &a,e

or6a"i<atio"s +or, &ore effecti8e!y. OB co8ers the core to*ics of &oti8atio" !ea%ershi*

 eha8ior a"% *o+er i"ter*erso"a! co&&$"icatio" 6ro$* str$ct$re a"% *rocess !ear"i"6

attit$%e %e8e!o*&e"t a"% *erce*tio" cha"6e *rocess co"f!ict 5o %esi6" a"% +or, stress.

Before st$%yi"6 or6a"i<atio"a! eha8ior it is %esira!e to ,"o+ the &ea"i"6s of or6a"i<atio"

a"% &a"a6e&e"t.

O+,//

Or6a"i<atio" as a *$r*osef$! syste& +ith se8era! s$syste&s +here i"%i8i%$a!s a"% acti8ities

are or6a"i<e% to achie8e certai" *re%eter&i"e% 6oa!s thro$6h %i8isio" of !aor a"%coor%i"atio" of acti8ities. Di8isio" of !aor refers to ho+ the +or, is %i8i%e% a&o"6 the

e&*!oyees a"% coor%i"atio" refers to ho+ a!! the 8ario$s acti8ities *erfor&e% y the

i"%i8i%$a!s are i"te6rate% or ro$6ht to6ether to acco&*!ish the 6oa!s of the or6a"i<atio".

The ter& or6a"i<i"6 is $se% to %e"ote o"e as*ect of the &a"a6eria! acti8ities +he" he or she

is *re*ari"6 a"% sche%$!i"6 the %iffere"t tas,s that "ee% to e co&*!ete% for the 5o to e

%o"e

M,33

It refers to the f$"ctio"a! *rocess of acco&*!ishi"6 the 6oa!s of the or6a"i<atio" thro$6h the

he!* of others. A &a"a6er is a" i"%i8i%$a! +ho is 6i8e" the res*o"sii!ity for achie8i"6 the

6oa!s assi6"e% to hi& or her as *art of the o8era!! 6oa!s of the or6a"i<atio" a"% +ho is

e7*ecte% to 6et the 5o %o"e. The ter&s o f to* &a"a6e&e"t !o+er &a"a6e&e"t are

fre$e"t!y $se% to i"%icate the hierarchica! !e8e!s of those +ho are e"6a6e% i" the *rocess of

6etti"6 the 6oa!s of the or6a"i<atio" acco&*!ishe%.

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CHAPTER & E' ELEMENTS OF ORGANISATIONAL BEHAVIOR 

The ,ey e!e&e"ts i" or6a"i<atio"a! eha8ior are *eo*!e str$ct$re tech"o!o6y a"% the

e7ter"a! e!e&e"ts i" +hich the or6a"i<atio" o*erates. >he" *eo*!e 5oi" to6ether i" a" a!so

$se tech"o!o6y to he!* 6et the 5o %o"e so there is a" i"teractio" of *eo*!e str$ct$re a"%

tech"o!o6y. I" a%%itio" these e!e&e"ts are i"f!$e"ce% y the e7ter"a! e"8iro"&e"t

a"% they i"f!$e"ce it. Each o f the fo$r e!e&e"ts o f or6a"i<atio"a! eha8ior +i!! e

co"si%ere% rief!y.

P363

Peo*!e &a,e $* the i"ter"a! socia! syste& of the or6a"i<atio". They co"sist of i"%i8i%$a!s a"%

6ro$*s a"% !ar6e 6ro$*s as +e!! as s&a!! o"es. Peo*!e are the !i8i"6 thi",i"6 fee!i"6s

 ei"6s +ho create% the or6a"i<atio"s. It e7ists to achie8e their o5ecti8es. Or6a"i<atio"s e7ist

to ser8e *eo*!e. Peo*!e %o "ot e7ist to ser8e or6a"i<atio"s. The +or, force is o"e of the

critica! reso$rces t hat "ee% to e &a"a6e%. I" &a"a6i"6 h$&a" reso$rces &a"a6ers ha8e to

%ea! +ith9

I. I"%i8i%$a! e&*!oyee +ho are e7*ecte% to *erfor& the tas,s a!!otte% to the&

II. Dya%ic re!atio"shi*s s$ch as s$*erior-s$or%i"ate i"teractio"sIII. Gro$*s +ho +or, as tea&s a"% ha8e the res*o"sii!ity for 6etti"6 the 5o %o"eI/. Peo*!e o$t si%e the or6a"i<atio" syste& s$ch as c$sto&ers a"% 6o8er"&e"t

officia!s.

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CHAPTER 4 STRUCTURE

#tr$ct$re %efi"es the officia! re!atio"shi*s of *eo*!e i" or6a"i<atio"s. Differe"t 5os are

re$ire% to acco&*!ish a!! of a" or6a"i<atio"=s acti8ities. There are &a"a6ers a"% e&*!oyees

acco$"ta"ts a"% asse&!ers. These *eo*!e ha8e to e re!ate% i" so&e str$ct$ra! +ay so that

their +or, ca" e effecti8e. The &ai" str$ct$re re!ates to *o+er a"% to %$ties. For e7a&*!e

o"e *erso" has a$thority to &a,e %ecisio"s that affect the +or, of other *eo*!e. #o&e of the

,ey co"ce*ts of or6a"i<atio" str$ct$re are !iste% as e!o+9

• H/3++789 : A;8+/9< This refers to the %istri$tio" of a$thority a&o"6

or6a"i<atio"a! *ositio"s a"% a$thority 6ra"ts the *ositio" ho!%er certai" ri6hts

i"c!$%i"6 ri6ht to 6i8e %irectio" to others a"% the ri6ht to *$"ish a"% re+ar%.

• D//>/ : L?+< This refers to the %istri$tio" of res*o"sii!ities a"% the +ay i"

+hich acti8ities are %i8i%e% $* a"% assi6"e% to %iffere"t &e&ers of the or6a"i<atio"

is co"si%ere% to e a" e!e&e"t of the socia! str$ct$re.

• S : C+6< This refers to the tota! "$&er of s$or%i"ates o8er +ho& a

&a"a6er has a$thority

• S37/6//< This refers to the "$&er of s*ecia!ities *erfor&e% +ithi" the

or6a"i<atio".

• S@+@//< It refers to the e7iste"ce of *roce%$res for re6$!ar!y rec$rri"6

e8e"ts or acti8ities

• F+6//< This refers to the e7te"t to +hich r$!es *roce%$res a"%

co&&$"icatio"s are +ritte" %o+"

• C3+6//< This refers to the co"ce"tratio" of a$thority to &a,e %ecisio".

• C63/9< This refers to oth 8ertica! %iffere"tiatio" a"% hori<o"ta! %iffere"tiatio".

/ertica! %iffere"tiatio"9 o$t!i"es "$&er of hierarchica! !e8e!s? hori<o"ta!

%iffere"tiatio" hi6h!i6hts the "$&er of $"its +ithi" the or6a"i<atio"

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CHAPTER 5 MECHANISTIC FORM OF ORGANISATION

It is characteri<e% y hi6h !e8e!s of co&*!e7ity for&a!i<atio" a"% ce"tra!i<atio". A hi6h!y

&echa"istic syste& is characteri<e% y ce"tra!i<e% %ecisio" &a,i"6 at the to* a ri6i%

hierarchy of a$thority +e!! $t "arro+!y %efi"e% 5o res*o"sii!ities es*ecia!!y at !o+er

!e8e!s a"% e7te"si8e r$!es a"% re6$!atio"s +hich are e7*!icit!y &a,e ,"o+" to e&*!oyees

thro$6h +ritte" %oc$&e"ts. I" &echa"istic or6a"i<atio" !aor is %i8i%e% a"%

s$%i8i%e% i"to &a"y hi6h!y s*ecia!i<e% tas,s 'hi6h co&*!e7ity( +or,ers are 6ra"te% !i&ite%

%iscretio" i" *erfor&i"6 theirs t a s,s a"% r$!es a"% *roce%$res are caref$!!y %efi"e% 'hi6h

for&a!i<atio"(? a"% there is !i&ite% *artici*atio" i" %ecisio" &a,i"6 +hich te"%s to e

co"%$cte% at the hi6hest !e8e!s of &a"a6e&e"t hi6h ce"tra!i<atio".

O+,/7 :+ : O+,/>/

A hi6h!y or6a"ic syste& is characteri<e% y %ece"tra!i<e% %ecisio"-&a,i"6 +hich a!!o+s

 *eo*!e %irect!y i"8o!8e% +ith the 5o to &a,e their o+" %ecisio"s 8ery fe+ !e8e!s i" the

hierarchy +ith f!e7i!e a$thority a"% re*orti"6 *atters !oose!y %efi"e% 5o res*o"sii!ities for 

&e&ers a"% 8ery fe+ +ritte" r$!es a"% re6$!atio"s. It is re!ati8e!y si&*!e i"for&a! a"%

%ece"tra!i<e%. :o&*are% +ith &echa"istic or6a"i<atio"s e&*!oyees i" or6a"ic or6a"i<atio"s

s$ch as %esi6" fir&s or research !as te"% to e &ore 6e"era!ist i" their orie"tatio".

J?> @ T>>

@o refers to the s$& tota! of a" i"%i8i%$a!=s assi6"&e"t at the +or,*!ace. Tas,s refer to the

8ario$s acti8ities that "ee% to e *erfor&e% to 6et the 5o %o"e. The "at$re of tas,s it=s

e7ec$ti8es y 8ario$s i"%i8i%$a!s "at$re of i"ter%e*e"%e"ce a"% i"ter-re!ate%"ess 6ro$*acti8ities etc ha8e i&*!icatio" for or6a"i<atio"a! effecti8e"ess. Th$s the 5os a"% tas,s ha8e

to e %esi6"e% a"% &a"a6e% *ro*er!y.

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C+3 J? C8+73+/>/7>< There are fi8e 5o characteristics +hich are ce"tra! to *ro8i%i"6

 *ote"tia! &oti8atio" to +or,ers. They are9 #,i!! 8ariety Tas, i%e"tity Tas, si6"ifica"ce

A$to"o&y a"% Fee%ac, fro& the 5o itse!f.

• T> V+/39< This %e"otes the e7te"t to +hich a"y *artic$!ar!y 5o $ti!i<es a ra"6e of 

s,i!!s ai!ities a"% ta!e"ts of the e&*!oyees. If "$&er of %iffere"t s,i!!s is $se% y

the e&*!oyee o" the 5o the 5o is 6oi"6 to *ro8i%e cha!!e"6e a"% 6ro+th e7*erie"ce

to the +or,ers.

•  T> I@3/9< This i"%icates the e7te"t to +hich the 5o i"8o!8es a +ho!e= a"%

i%e"tifia!e *iece of +or,. If the 5o i"8o!8es the +ho!e co&*o"e"ts 'e6 *ai"ti"6 a

 *ortrait( the" the i"%i8i%$a! ca" i%e"tify +ith the $!ti&ate creatio" t$r"e% o$t y hi&

a"% %eri8e *ri%e a"% satisfactio" fro& ha8i"6 %o"e a 6oo% 5o.• T> >/,/:/773< This refers to the &ea"i"6f$!"ess or si6"ifica"ce of the i&*act

that a 5o has o" the !i8es of others oth i"si%e a"% o$tsi%er of theor6a"i<atio". If

+hat o"e %oes has a" i&*act o" the +e!! ei"6 of others the 5o eco&es

 *sycho!o6ica!!y re+ar%i"6 to he *erso" +ho *erfor&s it.

• A;9< This refers to the e7te"t to +hich the 5o *ro8i%es a" e&*!oyee the

free%o& i"%e*e"%e"t a"% %iscretio" to sche%$!e +or, a"% &a,e %ecisio" a"%

for&$!ate the *roce%$res to 6et the 5o %o"e +itho$t i"terfere"ce fro& others. The

6reater the %e6ree of a$to"o&y the &ore the *erso" %oi"6 the 5o fee!s i" co"tro!.

• F33@?7 :+ 83 J? />36:< This i"%icates the e7te"t to +hich th *erso" +ho is

+or,i"6 o" the 5o ca" assess +hether they are %oi"6 thi"6s ri6ht or +ro"6 e8e" as

they are *erfor&i"6 the 5o. That is the 5o itse!f is sti&$!ati"6 o"e a"% e"5oya!e.

• J? D3>/,9 @os ca" e %esi6"e% to ra"6e fro& hi6h!y si&*!e to hi6h!y co&*!e7

tas,s i" ter&s of the $se of the +or,ers s,i!!. #o&e of the 5o %esi6" o*tio"s are as

fo!!o+s9i( J? S/6/:/7/< The 5os are ro,e" %o+" i"to 8ery s&a!! *arts as i" the

asse&!y !i"e o*eratio"s +here a fra6&e"te% tas, is re*eate%!y %o"e o8er a"%

o8er a6ai" y the sa&e i"%i8i%$a!.ii( J? R/< This i"8o!8es &o8i"6 e&*!oyees a&o"6 %iffere"t tas,s o8er a

 *erio% of ti&e. Ma"a6e&e"t %oes "ot ha8e to other +ith co&i"i"6 tas,s $t at

the sa&e ti&e the +or,ers %o "ot 6et ore% +ith %oi"6 o"e si&*!e tas, o8er

se8era! years. The e&*!oyee is *erio%ica!!y rotate% fro& o"e 5o to a"other +ithi"

the +or, setti"6iii( J? E6+,33< This i"8o!8es si&*!y a%%i"6 &ore tas,s to the 5o so that the

+or,ers ha8e a 8ariety of si&*!e tas,s to *erfor& rather tha" %oi"6 5$st o"e tas,

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re*etiti8e!y. T+o or &ore tas,s are co&i"e% a"% the i"%i8i%$a! %oes the

co&i"e% tas,s a!to6ether.i8( J? E+/783< This offers a 6reater cha!!e"6e to the +or,ers eca$se it

re$ires the $se of 8ariety of s,i!!s *ossesse% y the&. This i"8o!8es $i!%i"6 i"

&oti8ati"6 factors i"to the 5o 6i8i"6 the +or,ers &ore res*o"sii!ity a"% co"tro!

o8er +or, a"% offeri"6 !ear"i"6 o**ort$"ities for the i"%i8i%$a! o" the 5o.

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CHAPTER # ENVIRONMENT

A!! or6a"i<atio"s o*erate +ithi" a" e7ter"a! e"8iro"&e"t. A si"6!e or6a"i<atio" %oes "ot e7ist

a!o"e. It is *art of a !ar6er syste& that co"tai"s tho$sa"% of other e!e&e"ts. A!! these &$t$a!!y

i"f!$e"ce each other i" a co&*!e7 syste& that eco&es the !ife sty!e of the *eo*!e. I"%i8i%$a!

or6a"i<atio" s$ch as a factory or schoo! ca""ot esca*e fro& ei"6 +or,i"6 co"%itio"s a"%

 *ro8i%es co&*etitio" for reso$rces a"% *o+er.

E8ery or6a"i<atio" i"teracts +ith other &e&ers of its e"8iro"&e"t. The i"teractio"s a!!o+

the or6a"i<atio" t o ac$ire ra+ &ateria! hire e&*!oyees sec$re ca*ita! otai" ,"o+!e%6e

a"% $i!% !ease or $y faci!ities a"% e$i*&e"t. #i"ce the or6a"i<atio" *rocess a *ro%$ct or

ser8ice for co"s$&*tio" y the e"8iro"&e"t it +i!! a!so i"teract +ith its c$sto&ers. Other

e"8iro"&e"ta! actio"s +ho re6$!ate or o8er see these e7cha"6es i"teract +ith the

or6a"i<atio" as +e!! '%istri$tors a%8ertisi"6 a6e"cies tra%e associatio"s 6o8er"&e"t of the

co$"tries i" +hich $si"ess is co"%$cte%(

T D/>/7 S3> : E/+3<

i( S37/:/7 E/+3< This i"c!$%es the s$**!iers c$sto&ers co&*etitors

6o8er"&e"ts= a6e"cies e&*!oyees $"io"s *o!itica! *arties etc.ii( G33+6 E/+3< It i"c!$%es the eco"o&ic *o!itica! c$!t$ra! tech"o!o6ica!

a"% socia! factors i" +hich the or6a"i<atio" e&e%%e%. i"to a +or,a!e &e%ica!

 *ractice. Or6a"i<atio"s &$st ha8e *eo*!e a"% *eo*!e +or,i"6 to+ar% 6oa!s &$st

ha8e or6a"i<atio"s so it is %esira!e to treat the t+o as a +or,i"6 $"it.iii( S7/3/:/7 M,33 A+78< The f$"%a&e"ta! co"cer" of the scie"tific

&a"a6e&e"t schoo! +as to i"crease the efficie"cy of the +or,er asica!!y thro$6h

6oo% 5o %esi6" a"% a**ro*riate trai"i"6 of the +or,ers. Tay!or is the father of the

scie"tific &a"a6e&e"t &o8e&e"t a"% he %e8e!o*e% &a"y i%es to i"crease

or6a"i<atio"a! efficie"cy. Tay!or sho+e% that thro$6h *ro*er 5o %esi6" +or,er

se!ectio" e&*!oyee trai"i"6 a"% i"ce"ti8es *ro%$cti8ity ca" e i"crease%. The

scie"tific &a"a6e&e"t schoo! a%8ocate% that efficie"cy ca" e attai"te% y fi"%i"6 the

ri6ht &etho%s to 6et the 5o %o"e thro$6h s*ecia!i<atio" o" the 5o y *!a""i"6 a"%

sche%$!i"6 y $si"6 sta"%ar% o*erati"6 &echa"is&s esta!ishi"6 sta"%ar% ti&es to

%o the 5o y *ro*er se!ectio" a"% trai"i"6 of *erso""e! a"% thro$6h +a6e i"ce"ti8es.i8( A H; R3>;+73> S;+/3 A+78< It is %e8e!o*&e"ta! a**roach

co"cer"e% +ith the 6ro+th a"% %e8e!o*&e"t of *eo*!e to+ar% hi6her !e8e!s of

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co&*ete"cy creati8ity a"% f$!fi!!&e"t eca$se *eo*!e are the ce"tra! reso$rce i" a"y

or6a"i<atio"s a"% a"y society. It he!*s *eo*!e 6ro+ i" se!f-co"tro! a"% res*o"sii!ity

a"% the" it tries to create a c!i&ate i" +hich a!! e&*!oyees &ay co"tri$te to the !i&its

of their i&*ro8e% ai!ities. It is ass$&e% that e7*a"%e% ca*ai!ities a"% o**ort$"ities

for *eo*!e +i!! !ea% %irect!y to i&*ro8e&e"ts i" o*erati"6 effecti8e"ess. >or,

satisfactio" +i!! e a %irect res$!t +he" e&*!oyees &a,e f$!!er $se of their

ca*ai!ities. Esse"tia!!y the h$&a" reso$rces a**roach &ea"s that etter *eo*!e

achie8e etter res$!ts.8( A C/,379 A+789 Tra%itio"a! &a"a6e&e"t re!ies o" o"e asic *ri"ci*!e

there is o"e est +ay of &a"a6i"6 thi"6s a"% these thi"6s ca" e a**!ie% across the

 oar% i" a!! the i"sta"ces. The sit$atio"a! effect +i!! e tota!!y i6"ore% i" this

tra%itio"a! &a"a6e&e"t. #it$atio"s are &$ch &ore co&*!e7 tha" first *ercei8e% a"%

the %iffere"t 8aria!es &ay re$ire %iffere"t eha8ior +hich &ea"s that %iffere"t

e"8iro"&e"ts re$ire% %iffere"t eha8ior for effecti8e"ess. Each sit$atio" &$ch e

a"a!y<e% caref$!!y to %eter&i"e the si6"ifica"t 8aria!es that e7ist i" or%er to esta!ish

the ,i"%s of *ractices that +i!! e &ore effecti8e. :o"ti"6e"cy theorist ar6$es that the

e7ter"a! e"8iro"&e"t a"% se8era! as*ects of the i"ter"a! e"8iro"&e"t 6o8er" the

str$ct$re of the or6a"i<atio" a"% the *rocess of &a"a6e&e"t. Effecti8e &a"a6e&e"t

+i!! 8ary i" %iffere"t sit$atio"s %e*e"%i"6 o" the i"%i8i%$a! a"% 6ro$*s i" the

or6a"i<atio" the "at$re of 5os tech"o!o6y the ty*e of e"8iro"&e"t faci"6 the

or6a"i<atio" a"% its str$ct$re. For e7a&*!e if the e&*!oyees are hi6h!y &at$re% a"%

+i!!i"6 to ta,e &ore res*o"sii!ity the &a"a6ers ca" fo!!o+ %e!e6ati"6 sty!e a"% 6i8e

f$!! free%o& to their e&*!oyees. If the e&*!oyees are "ot so &at$re% a"% a8oi% ta,i"6

a"y res*o"sii!ity the &a"a6ers &$st fo!!o+ %irecti"6 sty!e. De*e"%s $*o" the

sit$atio" that is e&*!oyees !e8e! of &at$rity &a"a6ers +i!! a%o*t %iffere"t sty!e of

!ea%ershi* to e"s$re &ore s$ccessf$! res$!ts.8i( A S9>3> A+78< This i&*!ies that or6a"i<atio" co"sists of &a"y i"ter re!ate%

a"% i"ter %e*e"%e"t e!e&e"ts affecti"6 o"e a"other i" or%er to achie8e the o8era!!

res$!ts. :o"ce*t$a!!y a syste& i&*!ies that there are a &$!tit$%e of 8aria!es i"

or6a"i<atio" a"% that each of the& affects a!! the others i" co&*!e7 re!atio"shi*s. A"

e8e"t that a**ears to affect o"e i"%i8i%$a! or o"e %e*art&e"t act$a!!y &ay ha8e

si6"ifica"t i"f!$e"ces e!se+here i" the or6a"i<atio". #yste&s theorists %escrie the

or6a"i<atio" as Co*e" to its e7ter"a! e"8iro"&e"t recei8i"6 certai" i"*$ts fro& the

e"8iro"&e"t s$ch as h$&a" reso$rces ra+ &ateria!s etc a"% e"6a6i"6 i" 8ario$s

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o*eratio"s to tra"sfor& those ra+ &ateria!s i"to a fi"ishe% *ro%$cts a"% fi"a!!y

t$r"i"6 o$t the Co$t*$ts i" its fi"a! for& to e se"t to the e"8iro"&e"t. The

or6a"i<atio" si"ce it is o*e" to the e"8iro"&e"t a!so recei8es fee%ac, fro& the

e"8iro"&e"t a"% ta,es correcti8e actio" as "ecessary.

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CHAPTER % BASIC APPROACHES OF ORGANISATIONAL BEHAVIOR 

i( A I3+@/>7/6/+9 A+78< It is i"te6rati"6 &a"y %isci*!i"es. It i"te6rates socia!

scie"ces a"% other %isci*!i"es that ca" co"tri$te to the Or6a"i<atio"a! Beha8ior. It %ra+s

fro& these %isci*!i"es a"y i%eas that +i!! i&*ro8e the re!atio"shi*s et+ee" *eo*!e a"%

or6a"i<atio". Its i"ter%isci*!i"ary "at$re is si&i!ar to that of &e%ici"e +hich a**!ies *hysica!

 io!o6ica! a"% socia! scie"ce

MANAGEMENT FUNCTIONS

INTRODUCTION

Ma"a6e&e"t is the *rocess of %esi6"i"6 a"% &ai"tai"i"6 a" e"8iro"&e"t for the *$r*ose of

efficie"t!y acco&*!ishi"6 se!ecte% ai&s. Ma"a6ers carry o$t the f$"ctio"s of *!a""i"6

or6a"i<i"6 staffi"6 !ea%i"6 a"% co"tro!!i"6. Ma"a6i"6 is a" esse"tia! acti8ity at a!!

or6a"i<atio"a! !e8e!. Ho+e8er the &a"a6eria! s,i!!s re$ire% 8ary +ith or6a"i<atio"a! !e8e!s.

The f$"ctio"s of &a"a6ers= *ro8i%e a $sef$! fra&e+or, for or6a"i<i"6 &a"a6e&e"t

,"o+!e%6e.

MANAGEMENT FUNCTIONS

He"ri Fayo! *ro*ose% that a!! &a"a6ers are re$ire% to *erfor& fi8e &a"a6e&e"t f$"ctio"s i"

or%er to e7ec$te their %ay-to-%ay acti8ities. They are9 *!a""i"6 or6a"i<i"6 co&&a"%i"6

coor%i"ati"6 a"% co"tro!!i"6.

P6/,< The *!a""i"6 f$"ctio" i"8o!8es the *rocess of %efi"i"6 6oa!s esta!ishi"6 strate6y

for achie8i"6 those 6oa!s a"% %e8e!o*i"6 *!a"s to i"te6rate a"% coor%i"ate acti8ities.

O+,//,< It i"c!$%es the *rocess of %eter&i"i"6 +hat tas,s are to e %o"e +ho is to %o

the& ho+ the tas,s are to e 6ro$*e% +ho re*orts to +ho& at +hat !e8e! %ecisio"s are

&a%e.

C@/,< It is the i"f!$e"ci"6 of *eo*!e so that they +i!! co"tri$te to or6a"i<atio" a"%

6ro$* 6oa!s. Lea%i"6 i"8o!8es &oti8ati"6 co&&$"icati"6 e&*!oyees to acco&*!ish 6oa!s

a"% o5ecti8es of a" or6a"i<atio"

C+66/,< It is the &eas$ri"6 a"% correcti"6 of acti8ities of s$or%i"ates to e"s$re thate8e"ts co"for& to *!a"s. It &eas$re *erfor&a"ce a6ai"st 6oa!s a"% *!a"s sho+s "e6ati8e

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%e8iatio"s e7it a"% y *$tti"6 i" &otio" actio"s to correct %e8iatio" he!*s e"s$re

acco&*!ish&e"t of *!a"s.

P6/,

P!a""i"69 It is a *rocess that i"8o!8es %efi"i"6 the or6a"i<atio"=s o5ecti8es or 6oa!s

esta!ishi"6 a" o8era!! strate6y for achie8i"6 those 6oa!s a"% %e8e!o*i"6 a co&*rehe"si8e

hierarchy of *!a"s to i"te6rate a"% coor%i"ate acti8ities. It is co"cer"e% +ith oth +hat is to

 e %o"e 'e"%s( as +e!! as ho+ it is to e %o"e '&ea"s(. The *$r*oses of the *!a""i"6 are9

i( It esta!ishes coor%i"ate% effort. It 6i8es %irectio" to &a"a6ers a"% "o"&a"a6ers

a!i,e.ii( It re%$ces $"certai"ty y forci"6 &a"a6ers to !oo, ahea% a"tici*ate cha"6e

co"si%er the i&*act of cha"6e a"% %e8e!o* a**ro*riate res*o"seiii( It re%$ces o8er!a**i"6 a"% +astef$! acti8ities.i8( It esta!ishes o5ecti8es or sta"%ar%s that are $se% i" co"tro!!i"6.

P6/, +73>>

The fo!!o+i"6 fo$r ste*s of *!a""i"6 *rocess ca" e a%a*te% to a!! acti8ities at a!!

or6a"i<atio"a! !e8e!s.

S3 1< E>?6/>8 ,6 + >3 : ,6>< P!a""i"6 e6i"s +ith %ecisio" ao$t +hat the

or6a"i<atio" or %e*art&e"t +a"ts to achie8e. I%e"tifyi"6 *riorities a"% ei"6 s*ecific ao$t

their ai&s are ,ey factors i" *!a""i"6.

S3 2< D3:/3 83 +3>3 >/;/>. The c$rre"t state of affaires has to e a"a!y<e%

co"si%eri"6 the a8ai!ai!ity of reso$rces a"% the 6oa!s to e achie8e% efore %ra+i"6 $* the

 *!a""i"6 *rocess.

S3 &< I@3/:9 83 /@> @ ?++/3+> 83 ,6>< A"tici*ati"6 i"ter"a! a"% e7ter"a!

 *ro!e&s a"% o**ort$"ities !i,e!y to arise i" the f$t$re is a" esse"tia! *art of *!a""i"6.

S3 4< D336 6 + >3 : 7/> :+ +378/, 83 ,6>9 It i"8o!8es %e8e!o*i"6

8ario$s a!ter"ati8e co$rses of actio" for reachi"6 the %esire% 6oa!s e8a!$ati"6 these

a!ter"ati8es a"% choosi"6 fro& a&o"6 the& the &ost s$ita!e a!ter"ati8e for reachi"6 the

6oa!.

M+ 73> : 6/,

i( Goa!9 A f$t$re tar6et or e"% res$!t that a" or6a"i<atio" +ishes to achie8e

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ii( P!a"9 The &ea"s %e8ise% for atte&*ti"6 to reach a 6oa!

iii( Missio"9 The or6a"i<atio"s *$r*ose or f$"%a&e"ta! reaso" for e7iste"ce.

T93> : P6/,

Base% o" the !e"6th of the *!a""i"6 hori<o" *!a""i"6 &ay e c!assifie% as #trate6ic

P!a""i"6 Tactica! P!a""i"6 a"% O*eratio"a! P!a""i"6.

i( S+3,/7 P6/,< These *!a"s are or6a"i<atio"-+i%e esta!ish o8era!!

o5ecti8es a"% *ositio" a" or6a"i<atio" i" !o"6 ter& of its e"8iro"&e"t s$ch as

• Lo"6 ra"6e iss$es +ith roa%er tech"o!o6ica! a"% co&*etiti8e as*ects of the

or6a"i<atio" as +e!! as a!!ocatio"s of reso$rces

• !o"6 ter& actio"s to e ta,e" to achie8e the 6oa!s et+ee" fi8e a"% fiftee" years.

• De8e!o*e% y to* &a"a6e&e"t i" co"s$!tatio" +ith the oar% of %irectors a"% &i%%!e

!e8e! &a"a6ers.

ii( T7/76 P6/,< It ty*ica!!y a%%resses i"ter&e%iate iss$es i"8o!8i"6 *erio%s et+ee"

t+o a"% fi8e years +hich are re!ati8e!y s*ecific co"crete a"% &ore%etai!e% s$ch as

• o$t!i"e the ste*s for *artic$!ar %e*art&e"ts to achie8e the 6oa!s

•  6e"era!!y %e8e!o*e% y &i%%!e &a"a6ers +ho +ei6h the *ros a"% co"s of se8era!

 *ossii!ities efore sett!i"6 o" o"e iss$e.

• I&*orta"t to strate6ic *!a" s$ccess.

iii( O3+/6 P6/,< These *!a"s s*ecify %etai!s o" ho+ o8era!! o5ecti8es are to e

achie8e%. The ,ey as*ects of o*eratio"a! *!a""i"6 are

• Foc$ses &ai"!y for short-ra"6e iss$es $s$a!!y %e8e!o*e% y !o+er-!e8e! &a"a6ers i"

co"5$"ctio" +ith &i%%!e &a"a6e&e"t. 'ii( I%e"tify +hat &$st e acco&*!ishe% o8er a

short *erio% &ost!y %ay-to-%ay o*eratio"a! acti8ates s$ch as +or, &etho%s i"8e"tory

 *!a""i"6 etc.

C6>>/:/7/ : P6>

1 S/,63 $ U>3 6>

#i"6!e-$se *!a"s are ai&e% at achie8i"6 a s*ecific 6oa!. O"ce those are achie8e% it +i!! "ot

rec$r i" the f$t$re. There are t+o &a5or ty*es of si"6!e $se *!a"s9 *ro6ra&s a"% *ro5ects.

I. Pro6ra&s9 A *ro6ra& co8ers a re!ati8e!y !ar6e set of acti8ities. It sho+s

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a. the &a5or ste*s re$ire% to reach a" o5ecti8e

 . the or6a"i<atio" $"it or &e&er res*o"si!e for each ste*

c. the or%er a"% ti&i"6 of each ste*.

Pro6ra&s ha8e their o+" $%6ets. A $%6et is a state&e"t o$t!i"i"6 fi"a"cia!reso$rces

"ee%e% to s$**ort the *ro6ra&=s 8ario$s acti8ities. For E7a&*!e9 A*ro6ra& o" sa!es

 *ro&otio"

ii( Pro5ects9 Pro5ects are the s&a!!er a"% se*arate *ortio"s of *ro6ra&s. Each *ro5ect has

!i&ite% sco*e a"% %isti"ct %irecti8es co"cer"i"6 assi6"&e"ts a"% ti&e. For e7a&*!e

 *re*ari"6 a re*ort o" !aor a8ai!ai!ity or *re*ari"6 reco&&e"%atio"s for tra"sferri"6 stoc,

fro& e7isti"6 faci!ities to the "e+ i"sta!!atio"s

S@/, P6>

#ta"%i"6 P!a"s are *!a"s *ro8i%i"6 o"6oi"6 6$i%a"ce for *erfor&i"6 rec$rri"6 acti8ities. The

three &ai" ty*es are *o!icies *roce%$res a"% r$!es.

i( Po!icies9 A 6$i%e s*ecifyi"6 roa% *ara&eters +ith +hich &e&ers of a"

or6a"i<atio" are e7*ecte% to o*erate i" *$rs$it of officia! 6oa!s. For E7a&*!e9

#afety Po!icy - Iss$i"6 a set of 6$i%e!i"es to fo!!o+ certai" acti8ities to e"s$re safety.

ii( Proce%$res9 A *roce%$re *ro8i%es a %etai!e% set of i"str$ctio"s for *erfor&i"6 a se$e"ce

of actio"s that occ$rs ofte" or re6$!ar!y. For E7a&*!e9 #te*s to e fo!!o+e% to a8ai! co&*a"y

!oa" to $y car.

iii( R$!e9 A &ore e7*!icit state&e"t s*e!!i"6 o$t s*ecific actio"s to e ta,e" i" a 6i8e"sit$atio"s. For E7a&*!e9 A r$!e re$ires a!! e&*!oyees to +or, $"ti! 4.1 *&.

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O+,//,

Or6a"i<i"6 refers to the +ay i" +hich +or, is arra"6e% a"% a!!ocate% a&o"6 &e&ers of the

or6a"i<atio" so that the 6oa!s of the or6a"i<atio" ca" e efficie"t!y achie8e%.

S3> /63@ / O+,//, P+73>><

i( Assi6" tas,s a"% res*o"sii!ities associate% +ith i"%i8i%$a! 5os.

ii( Di8i%i"6 the tota! +or, !oa% i"to acti8ities that ca" !o6ica!!y a"% co&forta!y e

 *erfor&e% y o"e *erso" or 6ro$* of i"%i8i%$a!s.

iii( :o&i"i"6 the +or, of e&*!oyees i"to $"its i" a !o6ica! a"% efficie"t &a""er.

i8( De!e6ati"6 a**ro*riate a$thority a"% *o+er to a" i"%i8i%$a! to %ischar6e his %$ties.

8( #etti"6 $* a &echa"is& to coor%i"ate the +or, of e&*!oyees i"to a $"ifie% har&o"io$s

+ho!e.

8i( Mo"itori"6 the effecti8e"ess of the or6a"i<atio" a"% &a,i"6 a%5$st&e"ts to &ai"tai" or

i"crease effecti8e"ess.

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CHAPTER % BEHAVIORAL THEORIES

They i%e"tifie% eha8iors that %iffere"tiate% effecti8e !ea%ers= fro& i"effecti8e !ea%ers. Base%

o" these *eo*!e co$!% e trai"e% to e !ea%ers. The fo!!o+i"6 are three ty*es of eha8iora!

sty!es of !ea%ershi*

i( A$tocratic #ty!e9 A !ea%er +ho te"%e% to ce"tra!i<e a$thority %ictate +or, 

&etho%s &a,e $"i!atera! %ecisio" a"% !i&it e&*!oyee *artici*atio"

ii( De&ocratic #ty!e9 A !ea%er +ho te"%e% to i"8o!8e e&*!oyees i" %ecisio"

&a,i"6 to %e!e6ate a$thority to e"co$ra6e *artici*atio" i" %eci%i"6 +or, 

&etho%s a"% 6oa!s a"% to $se fee%ac, as a" o**ort$"ity for coachi"6

e&*!oyees

iii( Laisse<-faire sty!e9 A !ea%er +ho 6e"era!!y 6a8e the 6ro$* co&*!ete free%o& to &a,e

%ecisio" a"% co&*!ete the +or, i" +hate8er +ay it sa+ fit.

Research res$!ts re8ea!e% that e&*!oyee-orie"te% !ea%ers +ere associate% +ith hi6h 6ro$*

 *ro%$cti8ity a"% hi6her 5o satisfactio". Lea%ers +ho e7hiite% hi6h !e8e! of co"si%eratio"

a"% hi6h !e8e! of tas, orie"tatio" achie8e% hi6h s$or%i"ate *erfor&a"ce a"% satisfactio".

#o&e st$%ies re*orte% that %e&ocratic sty!e of !ea%ershi* +as &ost effecti8e a!tho$6h !ater

st$%ies sho+e% &i7e% res$!ts

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CHAPTER ) MANAGEMENT SILLS

Ma"a6ers "ee% certai" s,i!!s i" or%er to *erfor& the %$ties a"% acti8ities associate% +ith

8ario$s f$"ctio"s. at< fo$"% that &a"a6ers "ee% three esse"tia! s,i!!s or co&*ete"cies. They

are tech"ica! si!!s i"ter*erso"a! s,i!!s a"% co"ce*t$a! s,i!!s. It is re*orte% that the re!ati8e

i&*orta"ce of these s,i!!s 8arie% accor%i"6 to the &a"a6ers !e8e! +ith i" the or6a"i<atio". As

&a"a6ers= *ro6resses fro& !o+er !e8e! to se"ior !e8e! he is e7*ecte% to ac$ire &ore of

h$&a" re!atio"s a"% co"ce*t$a! s,i!!s.

T378/76 >/66><

This refers to ac$isitio" of ,"o+!e%6e a"% *roficie"cy i" a certai" s*ecia!i<e% fie!%s. For

e7a&*!e &echa"ics +or, +ith too!s a"% their s$*er8isors sho$!% ha8e the ai!ity to teach

the& ho+ to $se these too!s. #i&i!ar!y acco$"ta"ts a**!y s*ecific tech"i$es i" %oi"6 their

 5o.

First !i"e &a"6er as +e!! as &i%%!e !e8e! &a"a6ers is re$ire% to ac$ire &astery o8er the

tech"ica! as*ects of the or6a"i<atio"a! +or, o*eratio"s. Tech"ica! s,i!!s i"c!$%e ,"o+!e%6e of 

a"% *roficie"cy i" certai" s*ecia!i<e% fie!%s s$ch as e"6i"eeri"6 co&*$ters fi"a"ce

&a"$fact$ri"6 etc. a"< *ro*ose% that tech"ica! s,i!!s eco&es !ess i&*orta"t as &a"a6er

&o8es i"to hi6her !e8e! of &a"a6e&e"t $t e8e" to* &a"a6ers "ee% so&e *roficie"cy i" the

or6a"i<atio"=s s*ecia!ty. For e7a&*!e se"ior e7ec$ti8es

+ith a" IT ac,6ro$"% are re$ire% to ,"o+ the %iffere"t ty*es of o*erati"6 syste&s a"% the

c$rre"t %e8e!o*&e"ts i" the soft+are i"%$stry to $se their IT s,i!!s fre$e"t!y i" their *ositio"

as &a"a6ers +he" it co&es to ha"%!i"6 "e+ *ro5ects.

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I3+3+>6 S/66><

It is ai!ity to +or, +ith *eo*!e? it is coo*erati8e effort? it is tea& +or,? it is the creatio" of

a" e"8iro"&e"t i" +hich *eo*!e fee! sec$re a"% free to e7*ress their o*i"io"s H$&a" or

i"ter*erso"a! s,i!!s re*rese"t the ai!ity to +or, +e!! +ith a"% $"%ersta"% others to $i!%

coo*erati8e effort +ithi" a tea& to &oti8ate a"% to &a"a6e co"f!ict. These s,i!!s are

i&*orta"t for &a"a6es at a!! !e8e!s. Ma"a6ers "ee% to e a+are of their o+" attit$%es

ass$&*tio" a"% e!iefs as +e!! as ei"6 se"siti8e to their s$or%i"ate=s

 *erce*tio"s "ee%s a"% &oti8atio"s.

It is i&*orta"t to "ote that theses s,i!!s are ca!!e% as soft s,i!!s a"% it is *ro8e% that the

or6a"i<atio"s "$rt$ri"6 those soft s,i!!s +ithi" the or6a"i<atio" are so s$ccessf$! i" their

 $si"ess o*eratio"s. #o&e of the i&*orta"t soft s,i!!s i"c!$%e co&&$"icati"6 &oti8ati"6

a"% !ea%i"6 %e!e6ati"6 a"% "e6otiati"6 s,i!!s. As &a"a6ers %ea! %irect!y +ith *eo*!e

+ithi" as +e!! o$tsi%e the or6a"i<atio" s$ch ty*es of i"ter*erso"a! s,i!!s are cr$cia! i"

&ai"tai"i"6 effecti8e i"ter*erso"a! re!atio"s. Ma"a6er +ith 6oo% i"ter*erso"a! s,i!!s are to

6et the est o$t of their *eo*!e. They ,"o+ ho+ to co&&$"icate &oti8ate !ea% a"% i"s*ire

e"th$sias&s a"% tr$st.

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CASE STUD' TATA MOTORS

T M+> L//3@ 'for&er!y TELCO short for Tata E"6i"eeri"6 a"% Loco&oti8e

:o&*a"y( is a" I"%ia" &$!ti"atio"a! a$to&oti8e &a"$fact$ri"6 co&*a"y hea%$artere% i"

M$&ai Maharashtra I"%ia a"% a s$si%iary of the Tata Gro$*. Its *ro%$cts i"c!$%e

 *asse"6er cars tr$c,s 8a"s coaches $ses a"% &i!itary 8ehic!es. It is the +or!%s ei6htee"th-

!ar6est &otor 8ehic!e &a"$fact$ri"6 co&*a"y fo$rth-!ar6est tr$c, &a"$fact$rer a"% seco"%-

!ar6est $s &a"$fact$rer y 8o!$&e.

Tata Motors has a$to &a"$fact$ri"6 a"% asse&!y *!a"ts i" @a&she%*$r  Pa"t"a6ar 

L$c,"o+ #a"a"% Dhar+a% a"% P$"e i" I"%ia as +e!! as i" Ar6e"ti"a #o$th Africa

Thai!a"% a"% the U"ite% i"6%o&. It has research a"% %e8e!o*&e"t ce"tres i" P$"e

@a&she%*$r L$c,"o+ a"% Dhar+a% I"%ia a"% i" #o$th orea #*ai" a"% the U"ite%

i"6%o&. It has a $s &a"$fact$ri"6 5oi"t 8e"t$re +ith Marco*o!o #.A.a co"str$ctio"

e$i*&e"t &a"$fact$ri"6 5oi"t 8e"t$re +ith Hitachi a"% a 5oi"t 8e"t$re +ith Fiat i" I"%ia.

Fo$"%e% i" 234 as a &a"$fact$rer of  !oco&oti8es the co&*a"y &a"$fact$re% its first

co&&ercia! 8ehic!e i" 243 i" a co!!aoratio" +ith Dai&!er-Be"< AG +hich e"%e% i" 2J.

Tata Motors e"tere% the *asse"6er 8ehic!e &ar,et i" 22 +ith the !a$"ch of the Tata #ierra

 eco&i"6 the first I"%ia" &a"$fact$rer to achie8e the ca*ai!ity of %e8e!o*i"6 a co&*etiti8e

i"%i6e"o$s a$to&oi!e. I" 2K !a$"che% the first f$!!y i"%i6e"o$s I"%ia" *asse"6er car the

I"%ica. Tata Motors ac$ire% the #o$th orea" tr$c, &a"$fact$rer Dae+oo :o&&ercia!

/ehic!es :o&*a"y i" 0113 a"% the British *re&i$& car &a,er @a6$ar La"% Ro8er  i" 011K.

Tata Motors is !iste% o" the Bo&ay #toc, E7cha"6e +here it is a co"stit$e"t of the B#E

#EN#E i"%e7 the Natio"a! #toc, E7cha"6e of I"%ia a"% the Ne+ Yor, #toc, E7cha"6e.

Tata Motors is ra",e% 23th i" the 0120 Fort$"e G!oa! 411 ra",i"6 of the +or!%s i66est

cor*oratio"s.

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Tata Motors Li&ite% 'TATA(

T93 P$!ic

T+@3@ >

B#E9 41141 'B#E #EN#E

:o"stit$e"t(

 N#E9 TATAMOTOR#

 NY#E9 TTM

I@;>+9 A$to&oti8e

F;@3@ 234

F;@3+> @. R. D. Tata

H3@;+3+> M$&ai Maharashtra I"%ia2

A+3 >3+3@ >or!%+i%e

39 363

Rata" Tata ':hair&a" E&erit$s(0

:yr$s Pa!!o"5i Mistry ':hair&a"(

ar! #!y& 'Ma"a6i"6 Director(

Ra8i a"t

P+@;7>

A$to&oi!es

:o&&ercia! 8ehic!es

A$to&oti8e *arts

S3+/73> /ehic!e !easi"6/ehic!e ser8ice

R33;3 U# 0.J i!!io" '0123(

O3+/,

/73U# .1J i!!io" '0123(

P+:/ U# 0.0K i!!io" '0123(

T6 >>3> U# 0K.14 i!!io" '0123(

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T6 3;/9 U# J.33 i!!io" '0123(

E6933> 44 '0120(

P+3 Tata Gro$*

D//>/> Tata Motors :ars

S;?>/@/+/3>

@a6$ar La"% Ro8er 

Tata Dae+oo

Tata His*a"o

!3?>/3 +++.tata&otors.co&

Reco6"ise% i" I"%ia a"% the >or!%

 No. 2 :o&&ercia! 8ehic!e &a"$fact$rer i" I"%ia

r% Lar6est *asse"6er 8ehic!e &a"$fact$rer i" I"%ia

Lar6est $s &a"$fact$rer i" the +or!% 'y 8o!$&e(

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PRODU:T RANGE

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G!oa! sa!es of *asse"6er cars a"% co&&ercia! 8ehic!es 6re+ y .JQ a"% 4.KQ res*ecti8e!y

%$ri"6 the year. I" the U"ite% #tates +here there are c!ear si6"s of 6ro+th

sa!es i"crease% y .KQ for cars a"% 23Q for co&&ercia! 8ehic!es +hereas i" >ester"

E$ro*e a"% the U.. +here there has ee" o"!y &ar6i"a! 6ro+th sa!es %ec!i"e% for 

cars $t i"crease% for co&&ercia! 8ehic!es. I" Asia the &ai" %ri8ers of 6ro+th ha8e ee"

:hi"a a"% I"%ia +hich ha8e co!!ecti8e!y re6istere% 6ro+th a!eit at !o+er !e8e!s tha" the

 *re8io$s year.

I" the U.#. the i6 three= a$to&oi!e &a"$fact$rers re6istere% 8o!$&e 6ro+th a"% *rofits

%$ri"6 the year. For% +hich %ec!i"e% a 6o8er"&e"t ai!-o$t *ac,a6e %i% a" o$tsta"%i"6 5o

of i"creasi"6 sa!es a"% esta!ishi"6 *rofita!e o*eratio"s thro$6h the

i"tro%$ctio" of s&a!!er f$e!-efficie"t 8ehic!es +hich a**ea!e% to the co"s$&ers. :hrys!er

'$"%er Fiat &a"a6e&e"t( +hich %i% a8ai! of the 6o8er"&e"t ai!o$t

 *ac,a6e ha% a re&ar,a!e t$r"aro$"% +ith "e+ *ro%$cts restr$ct$ri"6 a"% tre&e"%o$s

e&*!oyee &oti8atio". Ge"era! Motors +hich +as *erha*s i" the +orst *ositio" i" the ear!ier

 *erio% +as +ith the he!* of the 6o8er"&e"t ai!-o$t *ac,a6e a!so a!e to esta!ish a

 *rofita!e !e8e! of *ro%$ctio" i" the year +ith the

i"tro%$ctio" of s&a!!er &ore f$e!-efficie"t cars. I" E$ro*e +here sa!es ha8e ee" &ore or

!ess sta6"a"t the co&*etitio" has ee" fierce. /o!,s+a6e" a"% their affi!iates ha8e co"ti"$e%

to e y far the !ar6est a$to&oi!e co&*a"y i" E$ro*e for *asse"6er cars.

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Merce%es- Be"< the &ar,et !ea%er +as o8erta,e" y BM> a"% the" f$rther re!e6ate% to the

"$&er three *ositio" y A$%i. More f$e!-efficie"t cars hyri%s a"% e!ectric 8ehic!es

co"ti"$e to e of i"terest $t a &a5or attractio" a**ears to ha8e ee" city cars +hich are

s&a!! a"% hi6h!y f$e!-efficie"t or are e!ectrica!!y %ri8e".

PRODU:T RANGE

By co"trast Asia has co"ti"$e% to re6ister 6ro+th &ai"!y fro& %o&estic

a"% o8erseas sa!es 6ro+th i" :hi"a a"% I"%ia. :hi"a has e&er6e% as the

!ar6est car &ar,et a"% car *ro%$ci"6 ce"ter of the +or!%. :hi"ese ra"%s

ha8e starte% to a**ear i" +or!% &ar,ets a"% i" a!! *roai!ity these +i!!

6ro+ i"to i"ter"atio"a! ra"%s i" the "e7t fe+ years.The year sa+ i"crease% sa!es of

 *asse"6er cars a"% co&&ercia! 8ehic!es i"

I@/ o8er the *re8io$s year the &ai" 6ro+th ei"6 at the !o+ e"% +ith

a" e&*hasis o" "e+ f$e!-efficie"t cars a"% a shift of *refere"ce to %iese!.

The %o&estic co"s$&er sho+e% co"si%era!e i"terest i" s&a!! #U/s a"% i"

a!! !$7$ry ra"%s. The year has ee" a &i7e% a6 for T M+>. The :o&*a"y retai"e% its

&ar,et !ea%ershi* i" co&&ercia! 8ehic!es a"% 6ai"e% f$rther &ar,et stre"6th thro$6h the

hi6h!y s$ccessf$! Ace a"% Ma6ic its "e+ !i"e of !i6ht *ic,-$* tr$c,s. O" the other ha"%

 *asse"6er car sa!es +ere e!o+ e7*ectatio"s e8e" tho$6h sa!es of the Na"o i"crease% o8er

the *re8io$s year. I" the co&i"6 years Tata Motors= *re%o&i"a"ce i" co&&ercia! 8ehic!es

+i!! e cha!!e"6e% y the e"try of i"ter"atio"a! ra"%s !i,e Merce%es-Be"< /o!8o a"%

 Na8istar +hich ha8e a!! e"tere% or are i" the *rocess of e"teri"6 I"%ia. A "e+ !i"e of 8ery

co&*etiti8e f$e!-efficie"t 8ehic!es is ei"6 %e8e!o*e% y Tata Motors to &eet the

co&*etitio" hea%-o". I" *asse"6er cars Tata Motors +i!! face e8e" 6reater co&*etitio" fro&

the &a"y a$to&oti8e ra"%s that are i" the co$"try. The :o&*a"y +i!! "ee% to a%%ress the

&ar,et*!ace &ore effecti8e!y +ith its e7isti"6 a"% f$t$re

The a$to&oi!e sector i&*acts the !i8es of &i!!io"s +or!%+i%e. It creates a

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h$6e "$&er of %irect a"% i"%irect 5os a"% %ri8es the $est for "e+

tech"o!o6ies !i6hter stro"6er &ateria!s as +e!! as "e+ *rocesses a"%

 $si"ess &o%e!s. It has res$!te% i" so&e of the &ost i&*orta"t i"frastr$ct$re i"8est&e"ts i"

&a"y co$"tries hi6h+ay syste&s +hich co""ect cities co""ect *ro%$ctio" ce"ters to

&ar,ets a"% r$ra! areas a"% co""ect co&&$"ities se*arate% y +ater a"% &o$"tai"s thro$6h

 ri%6es a"% t$""e!s. >hi!e co&&ercia! 8ehic!es co"stit$te o"e of the &ai" for&s of 

co&*etiti8e 6oo%s tra"s*ort ase% o" a $si"ess *ro*ositio" the *asse"6er car is *roa!y

o"e of the &ost e&oti8e *ro%$cts i" the +or!%

to%ay. Des*ite the &$ch 6reater i"terest i" *erfor&a"ce a%8a"ce% tech"o!o6y a"% re!iai!ity

the ac$isitio" of a car co"ti"$es to ha8e a"

i&*orta"t e!e&e"t of e&otio"a! $yer attractio" ase% o" %esi6" sty!e

a"% 8is$a! a**ea! +hich res$!ts i" a sa!e.

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Code of Conduct

The Tata :o%e of :o"%$ct is a set of *ri"ci*!es that 6$i%e a"% 6o8er" the co"%$ct of Tata

co&*a"ies a"% their e&*!oyees i" a!! &atters re!ati"6 to $si"ess. First e!$ci%ate% i" 2K

the :o%e !ays %o+" the ethica! sta"%ar%s that Tata e&*!oyees ha8e to oser8e i" their

 *rofessio"a! !i8es a"% it %efi"es the 8a!$e syste& at the heart of the Tata 6ro$* a"% its &a"y

 $si"ess e"tities.

The :o%e is a %y"a&ic %oc$&e"t that rei"forces the Tata ca"o" of ho"o$ra!e eha8io$r i"

 $si"ess. >hi!e it has re&ai"e% $"a!tere% at its core the :o%e has ee" &o%ifie% %o+" the

years to ,ee* it i" ste* +ith cha"6i"6 re6$!atory "or&s i" the %iffere"t *arts of the +or!% thatTata co&*a"ies "o+ %o $si"ess. These &o%ificatio"s ha8e rei"force% the :o%e a"% e"a!e

it to ref!ect the %i8erse $si"ess c$!t$ra! a"% other factors that ha8e a eari"6 o" the hea!th of 

the Tata ra"%.

If a!! of $s i" o$r *rofessio"a! a"% *erso"a! ca*acities ca" i"ter"a!ise the e!iefs e"shri"e% i"

the Tata :o%e of :o"%$ct the Tata 6ro$*=s !e6acy a"% its f$t$re +i!! re&ai" i" 6oo% ha"%s.

 The :o%e is a**!ica!e to the fo!!o+i"6 *erso"s referre% to as COfficers A!! Directors of the

:o&*a"y. #e"ior E7ec$ti8es o"e !e8e! e!o+ the e7ec$ti8e %irectors i"c!$%i"6 a!! f$"ctio"a!

hea%s. This :o%e 6o8er"s the co"%$ct of the Officers. Each s$ch *erso" sho$!% eco&e

fa&i!iar +ith the *ro8isio"s. This :o%e is ase% $*o" three i"ter!i",e% f$"%a&e"ta!

 *ri"ci*!es i.e 6oo% cor*orate 6o8er"a"ce 6oo% cor*orate citi<e"shi* a"% e7e&*!ary *erso"a!

co"%$ct. The Boar% a**oi"ts the co&*a"y secretary as :o&*!ia"ce Officer for the *$r*ose of 

this co%e. The Boar% of Directors reser8es the ri6ht to a&e"% a!ter or e"!ar6e this co%e at a"y

ti&e. The Officers sho$!% co"%$ct their acti8ities i" !i"e +ith the fo!!o+i"6 *o!icies !ai% %o+"

 y the :o%e a"% a%here a"% see, co&*!ia"ce thereto9 P8/6>89 : I3;+3< I"te6rity

tra"s*are"cy a"% tr$st for& *art of the core e!iefs of a!! acti8ities at I"8e"t$re +hich has

 ee" the co"ti"$i"6 asis of its 6ro+th a"% a!!-ro$"% %e8e!o*&e"t.

I"8e"t$re is a *rofessio"a!!y &a"a6e% or6a"isatio" a"% the core 8a!$e $"%er!yi"6 its

cor*orate *hi!oso*hy is Tr$steeshi*. Its &a"a6e&e"t e!ie8es that this or6a"isatio" has

 ee" ha"%e% o8er to the& y 8ario$s sta,eho!%ers i" CTr$st a"% they as *rofessio"a!s are

the CTr$stees of these sta,eho!%ers. It is therefore their res*o"sii!ity to e"s$re that the

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or6a"isatio" is &a"a6e% i" a &a""er that *rotects a"% fosters the i"terests of a!! the

sta,eho!%ers. I"8e"t$re reco6"ises society as a" i&*orta"t sta,eho!%er a"% therefore it is a

 *art of its res*o"sii!ity to *ractise 6oo% cor*orate citi<e"shi*. It is a!so I"8e"t$re=s e!ief

that i" or%er to ser8e the i"terests of its sta,eho!%ers i" *er*et$ity it &$st $i!% I"8e"t$re

6ro$* i"to a" i"stit$tio" +hose %y"a&is& a"% 8ita!ity are a"chore% y its core 8a!$es.

co%e of co"%$ct is i"te"%e% to e a ce"tra! 6$i%e a"% refere"ce for $sers i" s$**ort of %ay-to-

%ay %ecisio" &a,i"6. It is &ea"t to c!arify a" or6a"i<atio"s &issio" 8a!$es a"% *ri"ci*!es

!i",i"6 the& +ith sta"%ar%s of *rofessio"a! co"%$ct. As a refere"ce it ca" e $se% to !ocate

re!e8a"t %oc$&e"ts ser8ices a"% other reso$rces re!ate% to ethics +ithi" the or6a"i<atio".

A co%e is a" o*e" %isc!os$re of the +ay a" or6a"i<atio" o*erates. It *ro8i%es 8isi!e

6$i%e!i"es for eha8ior. A +e!!-+ritte" a"% tho$6htf$! co%e a!so ser8es as a" i&*orta"t

co&&$"icatio" 8ehic!e that ref!ects the co8e"a"t that a" or6a"i<atio" has &a%e to $*ho!% its

&ost i&*orta"t 8a!$es %ea!i"6 +ith s$ch &atters as its co&&it&e"t to e&*!oyees its

sta"%ar%s for %oi"6 $si"ess a"% its re!atio"shi* +ith the co&&$"ity.

A co%e is a!so a too! to e"co$ra6e %isc$ssio"s of ethics a"% to i&*ro8e ho+

e&*!oyees&e&ers %ea! +ith the ethica! %i!e&&as *re5$%ices a"% 6ray areas that are

e"co$"tere% i" e8ery%ay +or,. A co%e is &ea"t to co&*!e&e"t re!e8a"t sta"%ar%s *o!icies

a"% r$!es "ot to s$stit$te for the&.

:o%es of co"%$ct offer a" i"8a!$a!e o**ort$"ity for res*o"si!e or6a"i<atio"s to create a

 *ositi8e *$!ic i%e"tity for the&se!8es +hich ca" !ea% to a &ore s$**orti8e *o!itica! a"%

re6$!atory e"8iro"&e"t a"% a" i"crease% !e8e! of *$!ic co"fi%e"ce a"% tr$st a&o"6

i&*orta"t co"stit$e"cies a"% sta,eho!%ers

Loyalty in employment In consideration of employment with the

Company, !ec"ti#es to de#ote their f"ll attention to the $"siness

interests of the Company% &'cers are prohi$ited from en(a(in( in any

acti#ity that interferes with their performance or responsi$ility to the

Company or is otherwise in con)ict with or pre*"dicial to the Company%

Ethical Behaviour:

#ery +irector and enior -ana(ement of In#ent"re, incl"din( f"ll.time

+irectors and the Chairman / -ana(in( +irector, shall e!hi$it c"lt"rally

appropriate $eha#io"r and deal on $ehalf of the Company with

professionalism, honesty and inte(rity, while conformin( to hi(h moral

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and ethical standards% "ch cond"ct shall $e fair and transparent and $e

percei#ed to $e so $y third parties% #ery +irector and enior

-ana(ement ersonnel of In#ent"re shall preser#e the h"man ri(hts of

e#ery indi#id"al and the comm"nity and shall stri#e to hono"rcommitments% 

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REFERENCES

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2. Hatch M. :$"!iffe A. 011J

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