THE NEWS OF STEPPING DOWN OF THE PRESENT CHAIRMAN OF TATA SONS MR. N. CHANDRASEKARAN IS ACADEMICALLY AND BY PRACTICE NOTHING UNUSUAL IN CORPORATE DYNAMICS OF ORGANIZATIONAL BEHAVIOUR

THE NEWS OF STEPPING DOWN OF THE PRESENT CHAIRMAN OF TATA SONS MR. N. CHANDRASEKARAN IS ACADEMICALLY AND BY PRACTICE NOTHING UNUSUAL IN CORPORATE DYNAMICS OF ORGANIZATIONAL BEHAVIOUR


Dear Readers,

The "Rome Belongs to the Romans" can anybody deny?  This is an Academics and Practice Note I am writing here, let me make it clear first of all. 


I am sure you would have read many news publications came in the mainstream media yesterday, the wednesday, 12-August-2026, saying and reporting that Mr. N. Chandrasekaran, Chairman of Tata Sons resigned. I am also giving some links below, however you can read by your choice:

Tats Sons chairman N Chandrasekaran steps down, to serve out term till February

Why N Chandrasekaran resigned from Tata Sons? Here's what the titan revealed in a statement

No doubt, the Tata Empire is a Giant and Foremost Business Conglomerate of India with Global Prominence. They have been there since Pre-Independence Era, they comand prominence due to their size and spread, there can not be disputes about it. Because of their Global Prominence, while it is a Business Empire of almost USD 200 Billion, such changes at its Top Chair will make ruffles of feathers in the Indian Society and elsewhere. There will be discussions in Media and my writing this note will serve primarily academic, without any vengeance anywhere totally on neutral basis and without bias and as well as impartially. 

The above news what we read since yesterday is Normal Organizational Behaviour, is nothing new and unusual. 

Mr. Ratan Tata as a Tata scion, took over from Mr. JRD Tata, as the 5th Chairman of Tata Sons, while Mr. JRD Tata retired after heading the Tata Empire for 53years in 1991. It may not be very relevant to go back further back into their history. 
Then Mr. Ratan Tata headed the Tata Empire for 22years and finally retired in 2012. Mr. Ratan Tata had no Children. He did not possibly intend to induct Mr. Noel Tata who, a Tata scion also (who is a half brother to Mr. Ratan Tata), who was there, very much younger to him by age, was  very much in the Tata Empire already in some of the group company boards; to head it. He formed a Search Committee (A Panel Appointed by himself then) in 2011, to give the message to the World that the Tata Empire is deciding on succession by professionally designed procedure and formalities. The Panel then recommended Mr. Cyrus Mistry, who was not from the Tata's family, however from a family, closely related to the Tata Family, and Mr. Cyrus Mistry's family was also one of the largest share holders in the Tata Empire. 

Mr. Cyrus Mistry then took over as the Sixth Chairman of Tata Sons, in 2012. Mr. Cyrus Mistry, was also very educated, he tried to implement lot of out of the box ideas in Tata Empire during his tenure and he was known for the fact that, he had also formed a Professional Advisory Group picking up selected Top Slotted Professionals of Repute. However, due to his style of handling the Tata Empire, Mr. Cyrus Mistry fell apart in the legacy issues of Mr. Ratan Tata and he was removed (will not be wrong to say also unceremoniously) by a Board Room management decision in 2016. The matter went to a Court Battle further, where Mr. Cyrus Mistry eventually lost. (Mr. Cyrus Mistry passed away by an unfortunate Car Accident in 2022 is a different matter and possibly the destiny was not very kind to him, however he was said to have been a good man ). Mr. Cyrus Mistry was the Brother-in-law of Mr. Noel Tata, as Mr. Noel Tata is married to Ms. Aloo Mistry who is the sister of Mr. Cyrus Mistry. 

At this point in 2016, while Mr. Cyrus Mistry was removed as Chairman of Tata Sons by a Board Room management decision, Mr. Ratan Tata possibly had possibly no other way and alternative at hand, and he did not want Mr. Noel Tata to be at the helm of Tata Empire at that time, he (Mr. Ratan Tata) quickly fell for Mr. N. Chandrasekaran, who was heading the Software and Technology Firm TCS (Tata Consultancy Services) at that time. Thus Mr. N. Chandrasekaran became the Chairman of Tata Sons in 2017 (full Chairman in February 2017 precisely, while for a shorter term intervening after Mr. Cyrus Mistry he was named as the Executive Chairman). It was seen rather an unusual and non-conventional happening in Tata Empire at that time given their history of succession till that time, like sometimes also fortunes knock at the door of some by chance and compulsion elsewhere. May be and possibly Mr. Ratan Tata had a compulsion for perpetuation of his legacy to say then and at that time, to fall for a Non-Tata, to fall for Mr. N. Chadrasekaran; by the way. 

Mr. Noel Tata who was already an incumbent at board level in some group companies, inside the Tata Empire since 2011, was brought in as the Chairman of Tata Trusts, in October 2024, when Mr. Ratan Tata passed away, and also as a Nominee Board Member in the Tata Sons in November, 2024. Obviously, the subject matter went through by a  by a "Full Circle" by this time. 

The Reappointment of Mr. N. Chandra Sekaran, the incumbent Chairman of Tata Sons (while his term of appointment was due to expire in February 2027)' who resigned yesterday on August 12, for further period of 5years was hanging for last 6months (it is well understood) as said in the above cited News Reports saying a Board Member of Tata Sons had reservation, and while in such Large Conglomerates the decisions of Top Chair has to be taken in advance having time in hand for the transition dynamics of the complexities of such organizations, it is also well understood, it is Normal in Corporate Dynamics and Organizational Behaviour, nothing unusual.

To understand in one sentence for those who do not know or may not know, what is Tata Sons; the "Tata Sons" is the Main Holding Company of Tata Empire (Tata Group) of Business Organizations. Whereas the Various Trusts they have within the Tata Group (Tata Family Trusts) are primarily trusts having their Philanthropic, Charitable and Social Development Sector Activities whatever. The Tata Empire is a very Complex Structure within and inside it, one of the most complex structures of inter-linked Organizations in the World. The Tata Sons has the direct/indirect controlling stakes in Tata Group Companies, and the Tata Trusts have the controlling stake in Tata Sons; to understand in the simplest way. 

The Tata Sons Board will have to now choose and appoint its New Chairman as the successor, it is also understood. It happens. The Students can take it as a Case of Organizational Behaviour in Large Business Conglomerates and the Faculty who teach Organizational Behaviour can take it as a Case for Class Room Discussion, there is hunger for power not only in Politics, it is always there in Corporate Sector and All Other Sectors as well, they are Organizations, they behave in their Life Cycle of Existence and Perpetuation. 

With best regards,
Dr. Nimain Charan Biswal,
Mumbai, India

About the Author : Dr. Nimain Charan Biswal is a B.Sc.(Agri. Science and Technology), M.B.A. and Ph.D.(Management Area ) by qualifications; and he has 40 years of work experience in Social, both industrial and Development sectors in diversified fields of Social Importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University (with Resource Support of IIM-Ahmedabad). He is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organizations in Senior/Top Management Capacities at Board level as well as Managing Director and CEO. He is a management expert covering extensive areas from management in Social Sectors, industrial sectors, management in Agriculture, Dairy and Foods, Agri-Food, Pharma, FMCG and Consumer Healthcare Sectors and Management of Cooperatives, Development Management to management of Public Systems. He is a prominent professional of India and known Internationally as well. He is also a Business and Political Strategist. He lives at Mumbai in India



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