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Tata Motors has adopted a new, flat organisational structure, claim industry sources. They add that the new Managing Director, Guenter Butscheck, has initiated this change to foster faster and effective decision-making, and to have a prime customer focus. If sources are to be believed, the structural change, announced in an internal circular to the employees, emphasises upon eliminating layers of middle management so that the business units are empowered and have clear accountability. Said to define key principles of end-to-end accountability as far as the passenger vehicle and commercial vehicle business is concerned, the new, flat organisational structure is claimed to direct sales and marketing functions to report to their respective business heads who in turn will report to the MD. All product groups have been dissected into segments and platforms, and will now have to show accountability on parameters ranging from profit and loss, lifecycle management and business case including strategy. The new structure is scheduled to come into play from January 01, 2017.

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