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TATA MOTORS’ TALENT MANAGEMENT FAST TRACK SELECTION SCHEME (C): THE ROAD AHEAD

CURRENT BUSINESS SCENARIO AT TATA MOTORS

The fiscal year 2012/13 had been challenging for Tata Motors. Slowdown in the global automotive

industry coupled with rapid changes in customer preferences and deregulation of diesel pricing took their

toll on sales performance.1 Back in 2010, Tata Motors had articulated a five-year human capital strategy

under the leadership of Prabir Jha, senior vice-president and chief human resources officer at Tata Motors

Limited (Tata Motors). This strategy formed the basis of its vision for a comprehensive organizational

transformation. In a media interview for company publication in April 2013, Prabir reflected:

It started with the new vision and mission document, which allows people to see a clear link in

what they are doing and what the company aims to achieve. Within that mission is an inclusive

vision that gives everyone meaning in their work, beyond obvious reasons such as increments or

job security. A lot of our HR [human resources] processes and systems were revisited towards

this end.” 2

One process that benefited from the rejuvenation effort was the fast track selection scheme (FTSS). The

FTSS was Tata Motors flagship program focused on selecting and grooming the best employees for future

leadership roles. Started in 1991, it had run successfully for 20 years and 18 cycles. FTSS alumni

occupied some of the best leadership roles in the organization. It had indeed served Tata Motors well.

Prabir and his team had been working hard the previous year to align FTSS to the emerging leadership

requirements of Tata Motors. This had involved making a lot of changes to the program.

The talent management team had just concluded the first batch of FTSS after these changes were

introduced. Prabir was eager to discuss the feedback and future action plan with his chief talent officer,

Vikram Bector. Headed to an early morning meeting with Vikram, Prabir caught a glimpse of Vikram at

the lobby. Catching up to him, Prabir said, “Good morning, Vikram! Mumbai traffic, I must say, is

excruciating!”

1 Adapted from www.tata.com/media/interviews/inside.aspx?artid=OOV0cZBPwcs=, 2013, and Tata Motors Annual Report

2012-13, accessed July 2, 2013. 2 www.tata.com/media/interviews/inside.aspx?artid=OOV0cZBPwcs=2013, accessed July 2, 2013.

Page 2

“Makes you wonder why they call it rush hour when nothing moves,” Vikram joked as they walked

together to the conference room.

HOW DID TATA MOTORS FARE ON THE REVISED FTSS?

Seated in the conference room, Vikram handed the FTSS report to Prabir and said,

We had 2062 applications this year. A 100 per cent increase over last year’s registrations! This

has been possible because of sustained efforts by the team. Apart from sending constant emails to

all eligible employees urging them to apply, we created a Facebook group for employees to

network with FTSS alumni. Also, this year, the FTSS advertisement had alumni photographs —

we hoped this would help raise aspiration in the employees.

“Excellent!” said Prabir.

“The entire selection process was tweaked this year. We introduced a lot of new ideas — manager

conversations replaced the traditional group discussions, video resumes, job fairs . . . to name a few. I am

glad the team managed to pull it off so well! As you can see, the feedback is very encouraging!” (See

Exhibits 1 and 2.)

Prabir glanced at the page Vikram was referring to. It was definitely an impressive achievement. Then,

referring to the change in the eligibility criteria, he said, “Vikram, I see that the eligibility criteria have

been modified to ensure that employees have spent time in the organization before they are eligible.”

“Yes,” replied Vikram. “This gives them time and opportunities to contribute professionally and

understand the organization before being promoted as high potentials,” he said.

Continuing, Vikram said,

The written tests are now designed externally by faculty from reputed management institutes.

This aims to remove any perception of bias. Also, at the end of each test, the candidates get their

sectional score results. No more waiting in anticipation. In fact, we have introduced this openness

at every stage. After each stage, the assessor provides development feedback to each participant

in a developmental diary.

“See, this is exactly what the approach should be — FTSS is a development input. It will make a big

difference. And . . . no more mystery shrouded around the selection process,” smiled Prabir.

“That is the idea,” replied Vikram. “We have also replaced the traditional group discussion with manager

conversation. Nominating each participant as the chairperson allows everyone to put on the leadership

cap. This was especially well-received by the participants.”

“And at the same time, allows the assessors to judge candidates on their ability to contribute across varied

subject areas,” added Prabir.

“Rightly said,” agreed Vikram. He continued, “This year we also have more assessors — a mix of internal

and external assessors. We conducted a day-long workshop for them to get them all on the same page.”

Vikram was already circling another change.

Page 3 One big concern that we tried to address was dealing with the disappointment of candidates who

were not selected. We introduced participation certificates for employees who reach the

penultimate stage. We arranged a job fair for these employees to give them the first opportunity

to compete for critical roles in various departments. Our aim is to acknowledge and reward their

achievement in reaching the last but one stage by giving them alternate growth opportunities

which they would not have had otherwise.

Prabir commented,

Aren’t these all short-term accolades? I still feel we should have a long-term retention strategy for

these solid citizens. They may not ascend to the top rung positions but they definitely are the ones

to keep the trains running on time. Sometime I wonder if over the years Tata Motors has

unintentionally created a stratified workforce — the people who have the potential and the people

who don’t.

Sipping their coffee, Prabir and Vikram went through the rest of the report. Prabir spoke, “Vikram, what

about post identification? How do we ensure that FTSS helps plug the gaps in our talent portfolio?”

Vikram affirmed,

We have a pretty strong process to develop our high potentials — a year-long rotation across

different functions, business units and geographies to give them a sense of how the different parts

of the organization work together to execute the overall corporate strategy and broaden their

power bases and spheres of influence by giving them opportunities to interact and work with top

management and different stakeholders, educational inputs at the best management institutes,

stretch assignments, coaching and mentoring.

“And what if these stars we have spent so much time and effort to develop jump ship when we need them

to perform?” asked Prabir.

Vikram replied,

Well, should the fear of losing our stars to competition discourage us? Isn’t it a bigger risk if we

don’t develop them enough and they stay? What is needed, in my opinion, is a reinforced

retention strategy for our fast trackers. Regularly taking the temperature of our fast trackers

engagement levels, helping them set realistic career expectations and assessing their development

needs would go a long way.

Prabir replied,

Yes. We also need to engage with senior leaders, get their view on the program performance and

how well it is aligned to the business strategy. The development inputs that were planned under a

previous strategy may no longer be adequate or even relevant in the new scenario. We should

have a process to periodically review our program to make sure that the employees in FTSS and

the program itself remain relevant over time.

Vikram concurred, “I agree completely. Measuring the success of FTSS should be a long-term strategy.

Only then will we know if we have the right people moving to the right jobs at the right pace. Our metrics

should support what you said.”

Page 4

Flipping pages, Prabir said, “What we also need is a tighter integration between talent management and

other HR processes. Do our HR processes work together to recruit, identify and develop the right kind of

leaders?”

As Prabir came to the end of the report, he said,

The rest looks great! Kudos to you and your team! I’ll leave you with a couple of thoughts that

we need to deliberate on the long term. Firstly, as an organization, are we clear on how long we

want to hand-hold our fast trackers? For how long is the organization responsible for them? I am

sure you will agree that the FTSS status is not a permanent celebration of high achievement. But

it is also true that the future of the organization is in their hands. Would it be right in expecting

the organization to support their preferred status for as long as they are with the organization?

Prabir further added,

Secondly, are we relying solely on high potentials for our future talent needs? This is a very small

fraction of our employee base. Don’t critical positions exist in other parts of the organization as

well? Say in technical or functional roles? Do we have a process to develop talent pools for a

variety of positions throughout the business?

Continuing, Prabir said, “And finally, our talent efforts should not remain a potpourri of training

programs, challenging assignments and benefits. If implemented correctly, it will define our employer

brand, one that cannot be poached by our competitors.”

Of course, it is desirable for Tata Motors that FTSS addresses the company’s quest for an end-to-end fail-

safe leadership investment. How well it does that? Only time will tell.

Page 5

EXHIBIT 1: PROCESS IMPROVEMENTS IN THE FAST TRACK SELECTION SCHEME (FTSS) 2013 CYCLE

Engagement Prior to the Process:

• A Facebook group with FTSS alumni, leadership and potential participants (currently 1400 members

and growing) was created to help participants connect with alumni, get tips on preparing for the

process and hear about their exciting developmental assignments. • A separate email ID helpline was created to respond to all queries. The ID was manned and mails

were responded to within 24 hours. • Mailers from business leaders such as managing director, vice-presidents for the commercial vehicle,

passenger vehicle and engineering research centre units as well as the human resources head went

out to the organization urging participants to apply. • Received as many as 2,062 registrations (100 per cent over the previous year’s registrations) of

which 1,644 were eligible.

Phase 1:

• Revised eligibility criteria: − To ensure employees are contributing adequately to the company before being identified as high

potentials, for FTSS cadre a minimum of two calendar years of experience within Tata Motors

was established as eligibility criteria. This also went a long way in keeping management trainees

on par with engineering trainees. − Lateral hires were required to have a minimum of one year in the company and two years of

experience outside the company. − To check for past performance, those with the lowest performance rating, such as contribution

needs improvement, in the previous year were not eligible. • Each participant received a goody bag containing a brochure on the talent management processes, a

stress ball, tissue paper, sweets and pens. • Separate sections for each functional test were introduced. Questions were designed by an external

management institute faculty. • Sectional scores were displayed to all candidates as soon as the test was over. • Results were communicated via an online link, requiring participants to login. • Compensation for TM4 and TM5 FTSS graduates was declared.

Phase 2: • Mix of internal and external assessors to reduce biases: each panel had at least one external and one

internal panelist. • The usual fish market group discussion (GD) was done away with. Manager’s conversation — a

format replicating the Tata administrative services (TAS) chairman’s GD was used. This allowed

checking for candidates contributing across various subject areas. It also allowed for each individual

to assume a leadership role. It helped panelists identify those who can influence with and without

authority. • A demo video in collaboration with the TAS office was created and uploaded on Youtube.com for all

participants to view the new manager conversation format, the previous GD’s replacement. • Brief assessor orientation using the demo video was conducted in all locations. • Parameters of assessment were revised.

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EXHIBIT 1 (CONTINUED)

Manager Conversations Interview • Withstanding pressure • Big picture view • Consistency of contribution • Interpersonal and communication skills

• Business acumen • Drive for results • Customer focus • Functional knowledge

• To keep with the times, each participant was required to create a video resume. This was played at

the start of their interview. This also went a long way in reducing anxiety, displaying the ability of the

employee to leverage this medium to the maximum. • The concept of the developmental diary was introduced with developmental feedback of all phases to

be plugged in as the employee progresses. One-on-one telephonic feedback was provided to all

Phase 2 participants by the external assessor. • Feedback was sought from all participants on their experience of the process thus far. Almost all

feedback received was positive.

Phase 3: • To minimize panel biases, there was a mix of external and internal panelists. (eight external and 15

internal assessors) • Internal panelists were senior leaders e.g., three plant heads, one executive committee member three

FTSS alumni in leadership positions and so on. • All internal panelists received certified assessor training. • Tools were purchased from a world-class consultant. • The centre was better managed, the process being completed in one day as against two days in the

previous cycle. • Each participant received verbal and written feedback in a one-on-one session. An Individual

development plan was created for each participant. • A job fair was conducted post the assessment centre to alert participants of critical vacant roles in the

organization. Business leaders spoke about their functions and the roles available during this session.

About 70 roles were collated and shared with all participants, with a window period of a week for them

to apply. • Feedback on the process was sought from participants after the assessment centre. Almost all

feedback received was positive. • Each participant received a participation certificate to emphasize the achievement of having reached

thus far in the process. This is one of the many interventions that are to be made this year to manage

the disappointment of those who do not clear.

Source: Compilation based on discussion with current and past process owners of the fast track selection scheme at Tata Motors.

Page 7

EXHIBIT 2: FEEDBACK FROM PARTICIPANTS POST REVISIONS IN FAST TRACK SELECTION SCHEME (FTSS)

“All in all, it was a good experience. The team behind it has done a wonderful job.”

“I am a re-applicant and based on my prior experience, I will say that the present process is way ahead of the earlier one in terms of robustness, involvement, learning and fun. The manager conversation gave ample opportunity to make the discussion more fruitful. Unlike GD [group discussion], where everyone is just looking to get their point across, manager conversation is aligned with the kind of discussions that happen at any workplace. The making of the video was an exciting experience; one needs to package oneself within three minutes ensuring the best comes out.”

“(FTSS process) . . . has got immense value. Irrespective of the result, one takes three E’s with him/her — excitement, experience and energy . . .”

“The process has become much more concise, compared to FTSS 2012. Introduction of the feedback sessions through Phase II and III was an excellent addition.”

“The feedback I got on my performance in manager conversation and power interview will give me an opportunity to revisit on my strengths and areas of improvement.”

“Manager conversation (MC) is much better than the group discussion round which we had earlier. Interacting with fellow colleagues in MC was really informative, interactive and encouraging. I thoroughly enjoyed the experience.”

“FTSS was indeed an incredible experience for me. Manager conversation was a welcome change; video resume was innovative. The MC round tested our ability to contribute both as a team member as well as a team leader, something we typically encounter in our day-to-day work environment.”

“The process has definitely improved through MC as the focus has now shifted to qualitative discussion rather than quantitative discussion.”

Source: Compilation based on discussion with participants of the fast track selection scheme at Tata Motors.

Question

Strongly

agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

Response

Count

Job fair was a great value addition to the process.

21

15

2

3

0

41

I found opportunities provided in the job fair exciting and challenging.

13

20

6

1

1

41

I will apply for the opportunities provided in the job fair.

11

17

9

3

1

41

Source: Survey conducted by Tata Motors current process owners of the fast track selection scheme.