Motivating Employees in Tata Steel
In Tata Steel several initiatives have been taken to further improve the motivation levels and participation in the decision making process of the officers, greater impetus to training through a formalised system of a personal development programme, talent review and job rotation systems, compensation linked to the performance management system, formal rewards and recognition systems, knowledge management systems linked with appraisals, leadership opportunities in quality circles, continuous improvement and value engineering programmes and an extremely transparent and credible multi-path communication system to address queries and concerns of all employees through various dialogues both formal and online, with such tools as video conferencing, ‘MD Online’, special dialogues with senior management, meetings, conferences and seminars. These initiatives have helped to build a homogeneous and focused team in Tata Steel, increasing motivation and binding to the vision of the company and spurred employees to deliver targets on a participatory management basis leading to ownership of processes. Tata Steel is a company that actively promotes freedom to work, freedom to innovate and even the freedom to fail. It is a nimble, fast, modern and forward-looking company on a strong growth path. The company has undergone a revolutionary change in terms of its production facilities and the technology in the manufacturing process. These changes have resulted in creating greater opportunities for taking up newer challenges for young recruits work and for performance based on IT enabled systems and high levels of automation. These have led to making the company one of the lowest cost producers of steel and the only Indian company to be recognised by the World Steel Dynamics as one of the top most ‘World Class’ steel makers. Tata Steel hopes not only to consolidate but better its leadership by robust leadership development systems that have seen the company create many CEOs for other companies.
The above case highlights _______ function of management
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Directing
Option (1) Planning — Incorrect. Planning decides in advance what to do and how to do it. The case is about how people are motivated and led, not about setting objectives.
Option (2) Staffing — Incorrect. Staffing is about recruiting, selecting and training people. Training is mentioned in the case, but the main theme is motivation, leadership and communication.
Option (3) Controlling — Incorrect. Controlling compares actual performance with standards and corrects deviations. The case does not describe this.
Option (4) Directing — Correct. Directing means instructing, guiding, communicating and inspiring people. Its four elements are supervision, motivation, leadership and communication. The Tata Steel case is about improving motivation, building leadership and creating a multi-path communication system, so it is about directing.
Note: The passage is the NCERT box ‘Motivating Employees in Tata Steel’ from the chapter ‘Directing’, which has been reproduced by NTA in the exam.
NCERT (2026-27 Edition): “Meaning … In the context of management of an organisation, directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.” “Motivating Employees in Tata Steel … Importance of Motivation: In the example of Tata Steel you have seen how the direction, motivation and effective leadership has taken the company forward. Even communication systems in the company have encouraged employees to achieve targets.” |