Human Resource Issues Faced by Tata Motors: Employee Motivation

Human Resource Management
Tata Motors

Executive Summary
The aim of this report is to research Tata Motors and Indian Automotive industry to
evaluate the human resource issues faced by the company while operating its business. Tata
Motors is a major contender in the automotive industry in India. Employee motivation is a
major issue faced by Tata Motors which reduces the performance of its employees which
adversely affects the profitability of the enterprise. There are a number of factors which
affect employee motivation such as negative workplace environment, lack of appreciation
and recognition, no help on personal matters and lack of job security. All these factors
resulted in negatively affecting the motivation of employees which increases employee
retention rate in Tata Motors. Different theories such as the hierarchy of needs and two
factors theory are discussed in the report to evaluate the factors which affect the
motivation of employees. Various recommendations are given in the report based on which
Tata Motors can motivate its employees to perform better such as providing recognition for
excellent performance, providing job security, establishing communication channels,
identifying needs of employees and establishing a code of conduct to promote healthy
workplace environment. By complying with these factors, Tata Motors can address the issue
of employee motivation and sustain its future growth.
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Table of Contents
Introduction............................................................................................................................. 3
Situation Analysis..................................................................................................................... 3
Research Methodology............................................................................................................ 4
Objective.............................................................................................................................. 4
Literature Review..................................................................................................................... 4
Factors responsible for affecting employee motivation...........................................................6
Recommendations................................................................................................................... 7
Conclusion................................................................................................................................ 8
References................................................................................................................................9
List of Figures
Figure 1: Tata Motors Logo...................................................................................................... 3
Figure 2: Maslow Hierarchy of Needs Model...........................................................................5
Figure 3: Theoretical Model of employee motivation issues....................................................7
Figure 4: Theoretical model linked to employee motivation....................................................8
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Introduction
In this report, Tata Motors is chosen for the research, and human resource issues associated
with the company will be discussed. Tata Motors Limited is an Indian multinational
automobile manufacturing corporation, and its headquarters is situated in Mumbai, India
(Tata Motors, 2018). The company operates in the automobile industry and offers different
products to its customers such as trucks, buses, passenger cars, military vehicles, and
others. India has the world’s largest automobile industry with an annual average production
of 24 million vehicles, and Tata Motors is a key contender in the industry. The industry has
reported a growth of 2.57 percent in 2015-16. The automobile industry contributes over $93
billion to the nations GDP which is around 7.1 percent of its total GDP (IIFL, 2016). The
Indian automotive industry is the largest truck manufacturer and second largest two-
wheeler manufacturer. This report will focus on evaluating the HR issue of employee
motivation and analysing factors which affect employee motivation in Tata Motors.
Furthermore, this report will draw a theoretical model linked to employee motivation and
provide recommendations for the enterprise.
Figure 1: Tata Motors Logo
(Source: Tata Motors, 2018)
Situation Analysis
The industry provides direct and indirect employment to over 29 million people and the
employment opportunities created for every vehicle produced, for example, 13 people are
employed for manufacturing of a truck and six people for each car (Makeinindia, 2016). The
automobile manufacturing companies face a number of human resources issues because
they employ a large number of workers. One of the biggest challenges face by Tata Motors
is employee motivation due to which it finds difficulty in attracting and retaining talented
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