School of Distance Learning
Course : Organisation Culture
SEM - III
Assignment Marks: 30
- All Questions are Compulsory & carry equal marks.
- All answers to be explained in not more than 1000 words. Use examples as far as possible.
- All answers to be written individually. Discussion and group work is not advisable.
- Copying from websites or e-books will carry negative marks.
Till mid eighties, TISCO was distributing steel in India and not marketing. Because they were operating in a seller market due to country wide shortage of steel and Tata steel was doing the job of rationing steel. It was very profitable company.
The CEO (Mr. Irani) had a vision that in future the company will have to face globalisation and international competition.
TISCO took several steps for improvement such as- Through in house R&D, Tata steel could develop and install new technology, and entire plant was made energy efficient more changes were made in management like enforcement of TQM and quality circles.
Traditional Bonus payment system to employees which had prevailed for more than 100 years was changed to performance based. Profit sharing system was also introduced through persuasions and taking the Union leaders and employee into confidence.
The customary right of a TISCO employee with 25 years of service to get his son or daughter employed in the company was also changed.
VRS was implemented systematically to reduce the strength of work force from 78,000 to 46,000 in few years time. All trade Union leaders were sent to the best of steel plants in Japan to see for themselves the high productivity and quality standards that prevailed abroad. Extensive trainings were given to all employees as well.
- What kind of organization culture was developed by TISCO to meet the changing needs as compared to its prevailing culture?
- In the light of above case study explain how the change in organisational culture helps in managing issues such as competition & globalisation.