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De-Layering at Tata Steel
Colonel Rajeev Kumar
Defence Services Staff College, and Tata Institute of Social Sciences, India
Volume 1: 2006, pp. 37-56; ABSTRACT
Based on an actual downsizing process of an Indian steel manufacturing major, the case focuses on the process of organizational redesign wherein the executive hierarchical structure is de-layered from 13 layers to five. Communication strategy in support of the business objective is used proactively. The functional, social and psychological impacts of the turbulence caused by the structural changes are clearly evident in the case. The case highlights the need for a pragmatic, professional and ethical approach to using communication in change management.
