Introduction:
Leadership is integrated part in our life. Regarding to corporate chief and former US presidential candidate Ross Perot, "the guidelines of command are timeless because, in a quickly changing world, individual nature remains a continuing". We all experience leadership inside our life from early childhood in our households, through friendships, cultural and sports activities, school & advanced schooling, to politics & administration and undoubtedly in our work, we all recognize management in other people and frequently in ourselves. In administration, global companies and smaller businesses alike, the authority role is now more strenuous, more open to scrutiny and more difficult [Roger Gill].
The development of leadership theory also parallels the introduction of organizational theory. The bureaucratic form of business organization is characterized by 'laissez-faire management' - whereby so-called market leaders have a tendency to avoid taking a stand, dismiss problems, not follow-up, and avoid intervening - or transactional control, in which leaders practise management by exception, concentrating only on deviations from what's required, and contingent compensation, worthwhile people (either materially or psychologically) for obtaining what's required. The introduction of the post-bureaucratic form of business in the overdue nineteenth century reflects the introduction of the idea of transformational command.
Theory & Approaches to Leadership: Many Authority theories and techniques have been changed around Style, Characteristic, Behaviour, Situational and Charisma. Many experts made attempts linking a few of the theories across these management solutions. However each leadership model has its merit, assumptions and limitations. Most recent researches are conducted on Situational & Transformational authority styles. Various leadership Gurus shown new models as modifications to the already existing models. Potential Weber, MacGregor, Bass, Bennis & Nanus are a few of the most important researchers in the area of transformational leadership. However the difference between transactional and transformational management is vital in getting the complete concept of transformational command theory. In general, a romance between two people is based on the amount of exchange they may have. Exchange need not be money or materials; it could be anything. The more exchange they have got the better the connection. Manager's needs more efficiency from employee to be able to give good rewards. In this way, if something is performed to anyone predicated on the return then that relationship is called as 'Transactional' type. In business, leaders declare rewards in turn to the output. These relations are about requirements, conditions and rewards. In life, at one point of their time, things happen without expectation from other aspect. Transformational Leaders work toward a common goal with supporters; put followers in front and develop them; take enthusiasts' to next level; inspire fans to transcend their own self-interests in obtaining superior results [wordpress. com]. Desk 1, listed below shows Bass's full range model of control.
Table 1
Leadership Methodology in TATA Group:
TATA Group founded in 1868, can be an Indian multinational conglomerate headquartered in Mumbai, India. The Group has more than 500, 000 employees disperse over six continents (more than 80 countries). TATA Group market capitalization estimated worthwhile $80bn and is the most significant private commercial group in India. TATA Group is biggest company 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, Ratan Tata is the most influential business leaders in India's and the world's most influential person right now. The Tata Group is known for its respected business ethics and corporate and business governance.
TATA Group has long standing management program in its system. Their authority program is situated in British isles administrative service model. TATA's command development programme is aimed at grooming the professionals of today into the market leaders of tomorrow. The leadership development programme conceived by JRD Tata, the later chairman of TATA group in 1950's. The theory behind the leadership programme known as Tata Administrative Services (TAS) was to select and groom young managers, provide them chance of professional progress, and make them market leaders of tomorrow. That is TATA's in-house program and has goal is to provide training to high performers, become a cradle of change and develop the leadership qualities. Most of the TATA Group companies are usually led by these groomed market leaders.
The TATA Group management style has been quite constant since its lifetime in the past to 1868. The TATA Group has contained more command changes which are essential in current environment to operate a vehicle towards to become more competitive. In terms of management style, TATA Group has implemented a team-led culture and collective way. With Ratan Tata as leader of the Group, the management design of the complete TATA Group has transformed significantly; trust became an enormous facet and theme of the group. Ratan Tata has put a complete organisational restructuring when he had taken over in 1991 as head of the TATA Group, by taking a more matrix-style strategy building teams. These changes would have obviously altered a lot available, senior managers would have had to be on their feet and versatility and adaptability became essential features to have. The leadership transformed from a centralised, control centre to a much more distributed form with employees and all managers enjoying greater responsibility and knowledge about the Group, which could have in turn; motivated them to work harder so that a group.
From distinctive command models available such as the McGregor Theory X and Y; in which a theory X manager believes staff dislike work, are not creative and steer clear of all responsibility while a theory Y administrator believes that staff get just as much enjoyment from work as they can derive with leisure, accept responsibility and are creative; it can be seen out of this, that Ratan Tata needed all his managers to be modelled as meticulously to Theory Y and he himself could be called a Theory Y supervisor. He encouraged professionals to be progressive and share all their ideas, consulting actively with them and giving them more responsibility and importantly inspired team-working.
Five Factor Model (Big Five):
Emotional Stableness: Ratan Tata has suprisingly low nervousness within him and has great sense of security with his future command.
Extraversion: Even being truly a bachelor Ratan Tata is very sociable. He has produced very positive influence on future authority of TATA Group.
Openness: He thinks in originality and versatility. By making 1200/- car he shows his great interest with and creativity seeking personality.
Agreeableness: Within his management team Ratan Tata is well trusted and incredibly friendly.
Conscientiousness: He is very dutifulness. He spent the majority of his life doing work for TATA Group with no self-interest. He is perfectly organised as well.
Style (Behaviour) Theory in TATA Group:
As per style theory, there are three types of command models are obvious in leadership. They are as follows.
Autocratic
Democratic
Laissez-faire
Ratan Tata is a head who engages more democratic style of leadership strategy. However at previous occasion has used other two kind of style as well. He is more democratic because he always stimulates his group management to be creating good communication and participation. Future authority are well informed about future strategy plus they are extremely well employed in decision making process. A lot of the group long-term and short-term strategies are created by the lower get ranking of the authority. They are cured as stake holders. Until now TATA Group offers control within them. Ratan Tata has sometimes shown some form of autocratic design of command. Sometimes when needed particularly when quick and knowledgeable decisions have to be taken, but he's never too commanding in his character, being truly a man of few words and being more of a man of action, this is noticeable from the manner he aggressively pushes for daring international deals, such as during the global acquisitions of business powerhouses such as Corus, Jaguar and Land Rover, and Tetley Tea. One of is own senior control team member, Muthuraman( Executive Director) refers him "Ratan was the principle architect of the Corus deal. I was worried about the magnitude and the money. But he instilled confidence. "
In day to day routine issues and in growing the command, Ratan Tata also uses areas of the Laissez-Faire model like the delegation of important tasks and decision-making, he also will not at all interfere with any manager's working, he might make a wide strategic assessment but he will not interfere in operational issues and details, this implies that he has complete trust and faith in his professionals and believes in their capability, this price from Gopalakrishnan, an professional director of the business, shows how much value Ratan Tata places on his trust, this is highly motivating for managers and workers as well, "I remember what Ratan advised us at a gathering. He said that he will continue steadily to trust all his managers, but once they lose that trust, he'll go after them. I feel that is a very fair offer. "
Max Weber's Management Model in TATA Group:
Looking at Utmost Weber's Transactional and Transformational Management models, in which a leader is classed in three forms that are Bureaucratic, Charismatic and Traditional, where a bureaucratic innovator is person who is always destined by the set in place rule and will not want to exceed them; a Traditional leader is person who does and employs everything from a long past or background and always loyally obeys these 'traditions'; a Charismatic leader is person who uses his own laurels or skills to inspire and it is one who serves as a radically opposed to administrative rules and legal principles. From these models, Ratan Tata falls in to the Charismatic form because he is one who leads by example, coming up with highly progressive ideas such as 1200 (Rs. One Lakh) car the 'Nano', budget hotels or low-end wristwatches, he helped bring radical change to the Tata Group all together, changing it from its 'Traditional' way of thinking to new more flexible and adaptive social mindset.
We can easily see from Bennis and Nanus's Transformational Leadership model that the transformational leaders groom their fans into self-empowered market leaders and their main focus is to articulate perspective and values obviously so the newly self-empowered leaders know where to go. Their features include logical thinking, persistence, empowerment and self-control. Benniss and Nanus has developed the model which focus on the four I's of Transformational command, which are
Idealised Influence (being truly a role model)
Inspirational Desire (developing a team soul, motivating and provide a concern)
Intellectual Excitement (invention and ingenuity)
Individual Thought (mentoring and providing support for followers)
Ratan Tata, Chairman of the TATA Group has been proved a true transformational leader. We are able to see all I's built-in in Ratan Tata. He is the leader with great vision hence he has learned right method of groom future leadership. He has executed the team nature in whole group at every level. He empowers all his professionals and executives and has complete trust in them, he is extremely innovative and is also credited for a lot of the Group's new products, he places a great deal of importance to his R&D office and he definitely cares deeply about the welfare of most his employees and managers. Through the Mumbai's terrorist strike in Taj Hotel, he took front series in leading during crises. In his eye-sight assertion he articulated "A hundred years from now, I expect TATA Group to be much bigger, of course, than it is currently. More importantly, I hope the Group involves be thought to be being the best in India. Best in the Manner where we operate, best in the products we deliver and best inside our value system and ethics. Having said that, I hope a hundred years from now we will propagate our wings significantly beyond India, that we become a global group, functioning in many countries, as Indian business conglomerate that reaches home on the planet, hauling the same group of trust as we do today" [Tata Group Article].
As a head of a worldwide business group, Ratan Tata has learned the fierce competition experienced by his business empire. He makes all work to make his business competitive at global level. Through transformational leadership process TATA Group has made their processes and technology current. Once Ratan Tata said to his professionals in his eyesight speech "A firm or business which remains static is a small business that will perish; a firm that constantly changes and accepts that we now have improved ways to do things than the way they are simply done today, is a company that will endure in the global market that we face. " Out of this declaration we can infer that he is aware of the importance of creating a good command within group to have TATA Group to new heights. Ratan Tata entails strategy in command. He is a profound thinker and a brilliant strategist as is referred to by one of is own Executive Directors, Alan Rosling, "He's a profound thinker and intensely strategic. He is always 2-3 steps ahead". Ratan Tata is a man of strong integrity, ethics and valued guidelines. He cultivated the same across the TATA Group companies. One of his companies CEO said "Tata has shown that there surely is no other way he will conduct business other than undertake it ethically. " He is convinced in strong value based mostly leadership way in conducting business. Ratan Tata has led the TATA Group to transforming from local business group to become a global innovator.
Conclusions:
Ratan Tata of the Tata Group is a more kind of transformational head. He made Tata Group as global brand. He has provided enthusiasm to market leaders within his own company. In Tata Group market leaders are engaged in decision making at every level. Ratan Tata has effectively led and motivated its CEO/MD of the group companies to be ambitious. He has always used a ethical strategy in group business.
Ratan Tata has followed a management by consensus style. He mentioned once "When a number of individuals are involved I am definitely a consensus man, but that will not mean that I do not disagree or that I really do not share my views. Essentially this can be a question of experiencing to cope with individual men going different enterprises. You must adapt yourself to their ways and deal accordingly and draw out the best in each man. EASILY have any merit it is getting on with individuals regarding with their ways and characteristics. I have dealt with a hundred top directors and I have received on with all of them. At times it consists of suppressing yourself. It really is unpleasant but necessary. To be a leader you have got to lead humans with affection". Ratan Tata has potential to identify the talent. And once he has comfortable that a manager will perform, he offered him an extended rope.
Appendix: Reference List
Roger Gill, "Theory and Practice of Authority", Sage Publication, 2006
http://leadershipchamps. wordpress. com/2008/08/04/transactional-leadership-vs-transformational-leadership/
http://business. outlookindia. com/interior. aspx?articleid=682&editionid=22&catgid=70&subcatgid=464
http://www. tata. com/company/Articles/inside. aspx?artid=YJbf7uiUY0M=
John P. Kotter, A Pressure For Change: How Leadership Differs From Management (NY: The Free Press, 1990).
O'Tool, Wayne. Leadership from A to Z: HELPFUL INFORMATION for the Appropriately Ambitious, San Francisco: Jossey-Bass, 1999.
Visionary Command: Developing a Engaging Sense of Course for YOUR COMPANY (Jossey Bass Business and Management Series): Burt Nanus
Tata Steel Group - Annual Studies (2005-06, 2006-07, 2007-08, 2008-09, 2009-10)
