Leadership In The Tata Group

leadhip In The Tata conferenceIntroductionLeadership is integrated part of our life. According to corporate primary(prenominal) and former US presidential candidate Ross Perot, the principles of lead be timeless because, in a rapidly changing world, human nature remains a constant. We all experience leadinghip in our life from early childhood in our families, through friendships, social and sports activities, school higher education, to politics government and of tend in our cipher, we all recognize leadinghip in other people and often in ourselves. In government, world-wide corporations and small tradees alike, the leadership role is be markming more than(prenominal) demanding, more open to scrutiny and more difficult Roger Gill.The development of leadership theory also parallels the development of organizational theory. The bureaucratic form of communication channel organization is characterized by laissez-faire leadership whereby so-called leaders tend to avoid taking a stand, ignore problems, not follow up, and refrain from intervene or transactional leadership, in which leaders practise management by exception, focusing only on deviations from what is required, and contingent reward, rewarding people (either materially or psychologically) for achieving what is required. The takings of the post-bureaucratic form of organization in the late nineteenth century reflects the development of the concept of transformational leadership.Theory get alonges to Leadership some(prenominal) Leadership theories and approaches have been evolved around Style, Trait, Behaviour, Situational and Charisma. Many researchers made lawsuits linking some of the theories across these leadership approaches. However each leadership personate has its merit, assumptions and limitations. Most recent researches be conducted on Situational Transformational leadership titles. Various leadership Gurus presented youthful-fangled models as variations to the alread y existing models. gook Weber, MacGregor, Bass, Bennis Nanus are some of the most important researchers in the area of transformational leadership. However the difference amid transactional and transformational leadership is vital in getting the whole concept of transformational leadership theory. In general, a relationship between two people is based on the level of exchange they have. Exchange need not be money or material it can be anything. The more exchange they have the stronger the relation. Managers expects more productivity from employee in order to give good rewards. In this way, if something is done to anyone based on the return then that relation is called as Transactional type. In line of credit, leaders announce rewards in turn to the productivity. These relations are all about requirements, conditions and rewards. In life, at one point of time, things happen without expectation from other side. Transformational Leaders work toward a common goal with fol unhorses p ut followers in front and develop them take followers to next level inebriate followers to transcend their own self-interests in achieving superior results wordpress.com. Table 1, given below shows Basss full range model of leadership.Table 1Leadership Approach in TATA ag collectionTATA Group founded in 1868, is an Indian multinational conglomerate headquartered in Mumbai, India. The Group has more than 500,000 employees spread over six continents (more than 80 countries). TATA Group accepted market capitalization estimated worth $80bn and is the largest private corporate group in India. TATA Group 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 person right now. The Tata Group is known for its valued business morality 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 programme aims at aiming 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 inclination behind the leadership programme known as Tata Administrative Services (TAS) was to select and groom young managers, provide them opportunity for professional growth, and come them leaders of tomorrow. This is TATAs in-house programme and has goal is to provide training to high performers, act as a cradle 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 quite consistent since its existence way back to 1868. The TATA Group has incorporated more leadership changes which are essential in current environment to drive towards to be more competitive. In terms of leadership style, TATA Group has adopted a team-led culture and collective approach. With rattan cane Tata as leader of the Group, the management style of the entire TATA Group has changed considerably trust became a huge facet and etymon of the group. Ratan Tata has put a complete organisational restructuring when he took over in 1991 as leader of the TATA Group, by taking a more matrix-style approach construction 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 adapt cleverness became essential qualities to have. The leadership changed from a centralised, affirmation centre to a much 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 avai lable much(prenominal) as the McGregor Theory X and Y where a theory X manager believes workers shun work, are not creative and avoid all responsibility while a theory Y manager believes that workers get as much usance 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 encouraged managers to be innovative and share all their ideas, consulting actively with them and giving them more responsibility and importantly encouraged team- functional.Five Factor Model (Big Five)Emotional Stability Ratan Tata has very low anxiety within him and has great sense of security with his future leadership.Extraversion Even creation a bachelor Ratan Tata is very sociable. He has produced very positive postulate on future leadership of TATA Group.Openness He believes in originality and versatility. By making 120 0/- car he has shown his great interest with and innovation seeking personality.amenity 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 evident in leadership. These are as follows.AutocraticDemocraticLaissez-faireRatan Tata is a leader who engages more antiauthoritarian style of leadership approach. However at previous occasion has used other two kind of style as well. He is more parliamentary because he endlessly encourages his group leadership to be creating good communication and participation. Future leadership are well informed about future scheme and they are very well engaged in decision making process. Most of the group long-term and short-term strategies are formulated by the lower rank of the leadership. They are treated 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 needed 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 global acquisitions of business powerhouses such as Corus, Jaguar and Land Rover, and Tetley Tea. One of his senior leadership team member, Muthuraman( executive Director) refers him Ratan was the chief architect 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 developing the leadership, Ratan Tata also uses facets of the Laissez-Faire model such as the delegation of important duties and decision-making, he also does not in any w ay interfere with any managers functioning, he might make a broad strategic assessment 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 come with, shows how much value Ratan Tata places on his trust, this can be highly need for managers and workers alike, I remember what Ratan told us at a meeting. He verbalise that he leave 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.Max 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, Charismatic and Traditional, where a bureaucratic leader is one who is always bound by the learn rule and does not want to go beyond them a Traditional leader is one who does and follows every thing 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. One 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 flexible 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 focus is to articulate vision and values clearly so the newly self-empowered leaders know where to go. Their traits include logical thinking, persistenc e, authorisation and self-control. Benniss and Nanus has evolved the model which emphasis on the four Is of Transformational leadership, which areIdealised Influence (being a role model)Inspirational Motivation (creating a team spirit, motivating and provide a challenge)Intellectual Stimulation (innovation and creativity)Individual Consideration (mentoring and providing support for followers)Ratan Tata, Chairman of the TATA Group has been proved a true 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 highly innovative and is credited for much of the Groups new products, he places a great deal of importance to his RD department and he in spades cares deeply about the well-being of all his employees and managers. During the Mumb ais terrorist attack 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 best 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 become 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 make his business competitive at global level. Through transformational leadership process TATA Group has made their processes and technology up to date. O nce Ratan Tata said to his managers in his vision speech A company or business which remains static is a business that will die a company that constantly 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 companies 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 doin g 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 inspiration 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 enterprises. You have to adapt yourself to their ways and deal accordingly and draw out the best in each man. If I have any merit it is getting on with individuals accord ing 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 spot the talent. And once he has confident that a manager will perform, he gave him a long rope.Appendix Reference ListRoger Gill, Theory and set 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 Guide for the fitly Ambitious, San Francisco Jossey-Bass, 1999. Visionary Leadership Creating a Compelling Sense of Direction fo r Your Organization (Jossey Bass Business and Management Series) Burt NanusTata Steel Group Annual Reports (2005-06, 2006-07, 2007-08, 2008-09, 2009-10)