Leadership In The Tata Group

lead In The Tata conferenceIntroductionleaders is integrated part of our life. According to corporate chief and former US presidential candidate Ross Perot, the principles of leaders be timeless because, in a rapidly changing world, hu musical composition nature remains a constant. We exclusively experience lead in our life from early childhood in our families, through friendships, social and sports activities, school higher education, to politics govern workforcet and of variety in our work, we all recognize lead in other the great unwashed and often in ourselves. In government, planetary corporations and small businesses alike, the leadership voice is be sexual climax a great deal than demanding, more open to scrutiny and more unwieldy Roger Gill.The learnment of leadership theory besides parallels the development of organizational theory. The bureaucratic form of business organization is characterized by laissez-faire leadership whereby questionable leaders tend to avoid taking a stand, ignore problems, non follow up, and refrain from intervening or transactional leadership, in which leaders exert direction by exception, focusing only on deviations from what is required, and contingent reward, recognize people (either materially or psychologically) for achieving what is required. The emergence of the post-bureaucratic form of organization in the lately nineteenth century reflects the development of the concept of transformational leadership.Theory Approaches to leading M any Leadership theories and mountes devote been evolved around path, Trait, Behaviour, Situational and Charisma. Many researchers make efforts linking approximately of the theories across these leadership approaches. However each leadership model has its merit, assumptions and limitations. close recent researches be conducted on Situational Transformational leadership styles. Various leadership Gurus presented hot models as variations to the already existin g models. max Weber, MacGregor, Bass, Bennis Nanus ar slightly of the most important researchers in the atomic number 18a of transformational leadership. However the difference amidst transactional and transformational leadership is vital in getting the whole concept of transformational leadership theory. In general, a similarityship between two people is establish on the level of interchange they have. Exchange need not be m oney or material it can be anything. The more exchange they have the wholeer the relation. Managers expects more productivity from employee in order to give correct rewards. In this mood, if something is done to anyone based on the return then that relation is called as Transactional type. In business, leaders announce rewards in turn to the productivity. These relations atomic number 18 all around requirements, conditions and rewards. In life, at one put of time, things happen without expectation from other side. Transformational Leaders work tow ard a putting surface final stage with followers put followers in front and develop them take followers to next level inspire followers to pass off their own self-interests in achieving superior results wordpress.com. Table 1, given below shows Basss ample range model of leadership.Table 1Leadership Approach in TATA conclaveTATA root word founded in 1868, is an Indian multinational compound headquartered in Mumbai, India. The multitude has more than 500,000 employees spread over six continents (more than 80 countries). TATA convocation current market capitalization estimated worth $80bn and is the largest private corporate convocation in India. TATA separate is biggest employer in UK, employing more than 50,000 people. TATA Group has main interests in communications, IT, engineering, materials, services, energy, consumer products and chemicals. Its current chairman, rattan cane Tata is the most influential business leaders in Indias and the worlds most influential perso n right now. The Tata Group is known for its cute business ethics and corporate governance.TATA Group has long standing leadership program in its system. Their leadership program is based in British administrative service model. TATAs leadership development political program aims at train the managers of today into the leaders of tomorrow. The leadership development programme conceived by JRD Tata, the late chairman of TATA group in 1950s. The idea behind the leadership programme known as Tata Administrative Services (TAS) was to select and groom adolescent managers, provide them opportunity for professional growth, and make them leaders of tomorrow. This is TATAs in-house programme and has goal is to provide training to high performers, act as a rocking chair of change and develop the leadership qualities. Most of the TATA Group companies are traditionally led by these groomed leaders.The TATA Group leadership style has been preferably consistent since its existence way back to 1868. The TATA Group has incorporated more leadership changes which are essential in current environment to pull towards to be more competitive. In terms of leadership style, TATA Group has select a team-led culture and collective approach. With rattan Tata as leader of the Group, the watchfulness style of the entire TATA Group has changed considerably place became a commodious facet and theme of the group. ratan Tata has put a get it on organisational restructuring when he took over in 1991 as leader of the TATA Group, by taking a more matrix-style approach building teams. These changes would have obviously transformed a lot in the business, senior managers would have had to be on their toes and flexibility and adaptability became essential qualities to have. The leadership changed from a centralised, command centre to a some(prenominal) more distributed form with employees and all managers enjoying greater responsibility and knowledge about the Group, which would have in turn motivated them to work harder and as a group.From distinctive leadership models available such as the McGregor Theory X and Y where a theory X manager believes workers dislike work, are not creative and avoid all responsibility while a theory Y manager believes that workers get as a lot diversion from work as they can derive with leisure, accept responsibility and are creative it can be seen from this, that Ratan Tata wanted all his managers to be modelled as closely to Theory Y and he himself could be called a Theory Y manager. He advance managers to be innovative and make out all their ideas, consulting actively with them and giving them more responsibility and importantly encouraged team-working.Five Factor Model (Big Five)Emotional Stability Ratan Tata has real low anxiety within him and has great sense of security with his coming(prenominal) leadership.Extraversion Even macrocosm a bachelor Ratan Tata is very sociable. He has produced very positive affect on fu ture leadership of TATA Group.Openness He believes in originality and versatility. By making 1200/- railway car he has shown his great interest with and innovation seeking personality.Agreeableness Within his management team Ratan Tata is well trusted and very friendly.Conscientiousness He is very dutifulness. He spent most of his life working for TATA Group without any self-interest. He is very well organised as well.Style (Behaviour) Theory in TATA GroupAs per style theory, there are three types of leadership models are obvious in leadership. These are as follows.AutocraticDemocraticLaissez-faireRatan Tata is a leader who engages more democratic style of leadership approach. However at previous subprogram has used other two liberal of style as well. He is more democratic because he always encourages his group leadership to be creating good communication and participation. Future leadership are well informed about future strategy and they are very well prosecute in decision ma king process. Most of the group long-term and short-run strategies are formulated by the lower rank of the leadership. They are tempered as stake holders. Until now TATA Group has got leadership within them. Ratan Tata has occasionally shown some form of autocratic style of leadership. Sometimes when necessary especially when quick and informed decisions have to be taken, but he is never too commanding in his nature, being a man of few words and being more of a man of action, this is evident from the manner he aggressively pushes for bold international deals, such as during the planetary acquisitions of business powerhouses such as Corus, Jaguar and Land Rover, and Tetley Tea. nonpareil of his senior leadership team member, Muthuraman( Executive Director) refers him Ratan was the chief couturier of the Corus deal. I was worried about the magnitude and the amount of money. But he instilled confidence.In daily routine matters and in develop the leadership, Ratan Tata also uses f acets of the Laissez-Faire model such as the delegation of important duties and decision-making, he also does not in any way interfere with any managers functioning, he might make a broad strategic discernment but he does not interfere in operational issues and details, this shows that he has complete trust and faith in his managers and believes in their ability, this quote from Gopalakrishnan, an executive director of the company, shows how much value Ratan Tata places on his trust, this can be highly motivating for managers and workers alike, I remember what Ratan told us at a meeting. He express that he leave behind continue to trust all his managers, but once they lose that trust, he will go after them. I think that is a very fair deal. grievous bodily harm Webers Leadership Model in TATA GroupLooking at Max Webers Transactional and Transformational Leadership models, where a leader is classed in three forms which are Bureaucratic, magnetic and Traditional, where a bureaucrat ic leader is one who is always bound by the set rule and does not want to go beyond them a Traditional leader is one who does and follows everything from a long past or history and always loyally obeys these traditions a Charismatic leader is one who uses his own laurels or abilities to inspire and is one who can be described as radically opposed to administrative rules and legal principles. From these models, Ratan Tata falls into the Charismatic form because he is one who leads by example, coming up with highly innovative ideas such as 1200 (Rs. unmatched Lakh) car the Nano, budget hotels or low-end watches, he brought radical change to the Tata Group as a whole, changing it from its Traditional mindset to new more pliant and adaptive cultural mindset.Bennis Nanus Transformational Leadership Model in TATA GroupWe can see from Bennis and Nanuss Transformational Leadership model that the transformational leaders groom their followers into self-empowered leaders and their main foc us is to articulate pile and values distinctly so the newly self-empowered leaders know where to go. Their traits include logical thinking, persistence, empowerment and self-control. Benniss and Nanus has evolved the model which emphasis on the four Is of Transformational leadership, which are see Influence (being a role model)Inspirational Motivation (creating a team spirit, motivating and provide a challenge)Intellectual Stimulation (innovation and creativity)Individual comity (mentoring and providing support for followers)Ratan Tata, Chairman of the TATA Group has been proved a current transformational leader. We can see all Is built-in in Ratan Tata. He is the leader with great vision hence he knows right approach to groom future leadership. He has implemented the team spirit in whole group at every level. He empowers all his managers and executives and has complete faith in them, he is extremely innovative and is credited for much of the Groups new products, he places a g reat deal of importance to his RD section and he definitely cares deeplyly about the welfare of all his employees and managers. During the Mumbais terrorist violate in Taj Hotel, he took front line in leading at the time of crises. In his vision statement he articulated One hundred years from now, I expect TATA Group to be much bigger, of course, than it is now. More importantly, I hope the Group comes to be regarded as being the lift out in India. Best in the Manner in which we operate, best in the products we deliver and best in our value system and ethics. Having said that, I hope that a hundred years from now we will spread our wings far beyond India, that we function a global group, operating in many countries, as Indian business conglomerate that is at home in the world, carrying the same set of trust as we do today Tata Group Article.As a leader of a global business group, Ratan Tata knows the fierce competition experienced by his business empire. He makes all effort to m ake his business competitive at global level. Through transformational leadership process TATA Group has made their processes and technology up to date. Once Ratan Tata said to his managers in his vision speech A company or business which remains atmospheric static is a business that will die a company that eternally changes and accepts that there are better ways to do things than the way they are done today, is a company that will survive in the global market that we face. From this statement we can infer that he knows the importance of developing a good leadership within group to take TATA Group to new heights. Ratan Tata involves strategy in leadership. He is a deep thinker and a brilliant strategist as is described by one of his Executive Directors, Alan Rosling, He is a deep thinker and extremely strategic. He is always 2-3 steps ahead. Ratan Tata is a man of strong integrity, ethics and valued principles. He cultivated the same across the TATA Group companies. One of his com panies CEO said Tata has shown that there is no other way he will do business other than do it ethically. He believes in strong value based leadership approach in doing business. Ratan Tata has led the TATA Group to transforming from local business group to become a global leader.ConclusionsRatan Tata of the Tata Group is a more kind of transformational leader. He made Tata Group as global brand. He has provided passion to leaders within his own company. In Tata Group leaders are engaged in decision making at every level. Ratan Tata has successfully led and motivated its CEO/MD of the group companies to be ambitious. He has always adopted a ethical approach in group business.Ratan Tata has adopted a management by consensus style. He stated once When a number of persons are involved I am definitely a consensus man, but that does not mean that I do not disagree or that I do not express my views. Basically it is a question of having to deal with individual men heading different enterp rises. You have to adapt yourself to their ways and deal wherefore and draw out the best in each man. If I have any merit it is getting on with individuals according to their ways and characteristics. I have dealt with a hundred top directors and I have got on with all of them. At times it involves suppressing yourself. It is painful but necessary. To be a leader you have got to lead human beings with affection. Ratan Tata has ability to government agency the talent. And once he has confident that a manager will perform, he gave him a long rope.Appendix Reference ListRoger Gill, Theory and workout of Leadership, Sage Publication, 2006http//leadershipchamps.wordpress.com/2008/08/04/transactional-leadership-vs-transformational-leadership/http//business.outlookindia.com/inner.aspx?articleid=682editionid=22catgid=70subcatgid=464http//www.tata.com/company/Articles/inside.aspx?artid=YJbf7uiUY0M=John P. Kotter, A Force For Change How Leadership Differs From Management (New York The Free Press, 1990).OTool, James. Leadership from A to Z A absorb for the Appropriately Ambitious, San Francisco Jossey-Bass, 1999. Visionary Leadership Creating a Compelling Sense of path for Your Organization (Jossey Bass Business and Management Series) Burt NanusTata Steel Group Annual Reports (2005-06, 2006-07, 2007-08, 2008-09, 2009-10)