Tata Sons aims for a mix of laterals and home grown talent for top posts

MUMBAI: India’s oldest conglomerate usually looks within when a spot at the top opens up. But in the last few years, there has been a change and many have been hired laterally to lead many of the Tata companies.

“When we have a critical need in our group companies, our first course of action is to scan leaders within the company as well as across the group who are capable of fulfilling the need. Depending upon the nature of the position, the organisational context and the market needs, we may augment this list with choices of suitable professionals from outside of the group,” said N.S. Rajan, member – Group Executive Council and Group chief human resource officer (CHRO), Tata Sons.

In the last few years , the managing directors/CXOs who were hired laterally to head some of the Tata firms include- Guenter Butschek (Tata Motors), Rakesh Sarna (Indian Hotels), Naveen Tahilyani (Tata AIA), Neelesh Garg (Tata AIG) and Mayank Pareek( Pres PVBU Tata Motors)

The group added that the lateral hires are also because of a ‘generational change’ that has taken place over the last few years. A new post in the firm of chief technology officer was also created two years ago for which Gopichand Katragadda was recruited. There have also been new recruits into the Group Executive Council-the advisory team to chairman Cyrus Mistry.

“Our decision to ‘build or buy’ is context specific at the senior most levels. Of the top 25 significant Tata companies, 17 are manned by home grown talent and 8 have come from outside. In fact, if we take all 100 plus operating companies of the group, the needle significantly leans in favour of internally developed Tata talent,” added the CHRO.