Professional Documents
Culture Documents
Concept Questions:
1. List five popular Indian industrial leaders who practice Indian management
thoughts.
Ans: (1) Kumar Mangalam Birla,
(2) JRD Tata,
(3) S. P. Godrej,
(4) Rahul Bajaj,
(5) Chitale (Pune),
(6) Singhania,
(7) Kirloskar
2. Describe Indian styles of leadership.
Ans: Most of the present days industrial leaders have come from the illustrious families
of industrialists like those of G. D. Birla and JRD Tata, Jamnalal Bajaj, etc. before
independence the Indian industrialist were mostly working as the Managing Agents of the
British Companies or were engaged in the trading of cotton, food-grains, oil, etc.
Jamshedji Tata and Ghanashyam Das Birla were perhaps the first enlightened industrial
leaders who dared to start industrial houses in British India, despite discouraging British
policy of levying heavy excise and custom duties on Indian manufactured goods.
These industrialists started their industries from the scratch and against the desire
of the British rulers. Labour was abundant but not duly trained. They had no work
culture. The industrialist started not only training the local workers to handle the latest
machines but even provided for their provident fund, medical treatment, housing and
schooling of children, even before the labour law was enacted. Whatever standards or
norms these industrialists had laid down became the foundation of the labour laws in the
near future. These industrialists were also required to support the freedom struggle in
every form.
Although the present generation of these industrial leaders is now ruling the
industrial empire, they are playing a very important role in development of Indian
economy. Since they belonged to the families of industrialists, they are bound to
safeguard the family interests of their houses. Yet it would be injustice to brand them as
traditional industrial managers, having no vision of the future. On the contrary, they have
been revolutionizing the leadership styles. They are becoming more professional. They
have sponsored the higher educational and management training facilities, employed
management trainees in responsible positions. Some noteworthy Chief Executive Officers
of their industries are not hailing from industrial houses.
In working environment also they have brought out several healthy practices.
Considering the Indian Cultural characteristics, S.P.Godrej, e.g. stopped the use of animal
fat in manufacture of soap long back. They have developed vase track of land in Mumbai
into green belt of their own volition. They observed Indian cultural festivals and
traditions of Puja of machines, and vehicles on Dassera, Diwali etc. and involve the
family members in such events. They consider each individual worker as a member of the
family. Workers participation at every possible level is being tries. The enlightened
industrial houses do not find difficulties in labour problems, as some industrialist believe
in transparency in the decision-making process and workers participation. They are
developing continually learning environment. E.g. XLRI at Jamshedpur is a renowned
training institute, which conduct surveys and promote studies in various problems and
principles. A worker is taken a whole and treated with due respect. Some industrial
leaders are trying to provide facilities for meditation and Yoga practices, sponsoring
sports etc. Globalization and IT environment is posing a greatest challenge to the
industrial leaders as well as labour. Involvement of labour in the decision making process
is likely to increase due to cut throat competition in the near future.
3.Give examples of born leaders and made leaders.
Ans.
Born leaders are those charismatic personalities whom people expect to lead. E.g.
Pandit Jawaharlal Nehru was a born leader. A born leader does not necessarily mean a
person born in the rich or privileged family and on whom the leadership develops through
inheritance. Inheritance does help develop the leadership qualities. But some leaders are
born with the charismatic qualities, such physical stature, fair skin, pleasing personality,
intelligence etc. being born in the family of privileged people alone does not make a
person a good leader. Some children of the privileged persons are seen to have spoiled
their life.
4. Good and bad styles of Management
Ans.
Management:
Work
accomplishment.
Committed
people,
interdependence, common tasks, trust, respect, high people concern and high production
concern, ideal situation.
their advice. As a karta of the family Industrial Leader is supposed to treat every person
as a whole human being and potential God.
With the concept of Karta the concept of Trusteeship must be linked with. A Karta hold
the property or business in the capacity of the trustee rather than as the lawful owner. He
carries on the business of the family or a company for and on behalf of the beneficiaries.
He has no doubt a right maintenance out of the property and remuneration. But his role is
that of a trustee. In Business environment, CEO or the manager is supposed to exercise
his powers so as to subserve the interests of the employees, families of the employees,
retired employees, sick or old members of the organization, customers, investors,
environment and also the community at large. With the authority of Karta he has also an
obligation towards the beneficiaries. He is accountable to the beneficiaries for the
decisions he make. This is the gandhian-concept. He had observed that all those who are
enjoying the powers and wealth have a duty to hold and exercise the powers and wealth
as trustees for the beneficiaries.
Characteristics of some of the leading business industrialists in India Ans. Azim Hashim Premji, Chairman, Wipro
Being richest man in India, yet, Azim Premji can be characterised as a shy and reticent
leader and a man of simple style and tastes.
He believes that successful organisations prepare for the future, and the customer is the
key to his future. He has charted a clear vision for Wipro, and has tried to bring in human
values other than those of integrity, innovation and value-for-money. Known for an
almost fanatical obsession with excellence, he invests personal time in teaching and
coaching future leaders of the corporation to achieve their potential
He is a visionary and succeeds in getting his basics right in a constantly changing and
dynamic technology age. According to him, what is important is not ones existing
knowledge alone, but ones ability to keep refreshing it dynamically
show. This did not deter Bajaj who even today continues to be as vociferous as ever. This
was a example of his strong mindedness.
Bajaj today is no longer involved in the day-to-day running of his company at PimpriChinchwad in Pune. After a heart attach in 1994, that's been left to efficient managers and
his two sons -- Rajeev and Sanjeev. However, his sons were not allowed to gatecrash into
the
boardroom
but
were
put
through
the
rigours
of
the
shopfloor.
Even after delegating his work to his sons, Rahul Bajaj remains an autocratic leader by
nature. Though, Bajaj is no longer involved in Bajaj Auto, yet decision-making by
consensus is not his style and he continues to be the last word at Bajaj Auto.
He does consult other people's opinion in key matters and give them a fair hearing, But
does not believe in taking a vote. He alone makes the decisions.
Depending upon the structure of task-high or low-analyse what impact will it have
on leadership?
A standard way of classifying leadership styles is based on the relative concern the leader
places on the task to be performed vis--vis the people performing the task. A leader who
places greater emphasis on task performance tends to exhibit the following behaviours
1. Organising and defining the roles of group members
2. Explaining what activities each has to do and when, where and how tasks are to be
accomplished
3. Establishing well-defined patterns of organisation, channels of communication and
ways of task accomplishment.
A leader who places greater emphasis on people tries to gain their relationship by
exhibiting such behaviours as:
1. Establishing channels of communication
People
Emphasis
Low task and low relationship
(Free-rein style)
Low
Task emphasis
Low
High
1. High task and low relationship: A high task and low relationship leader
emphasises showing employees how to get the task accomplished and spends
minimum time giving psychological support. This style may be effective where
the employees are inexperienced with the work to be performed. It may also be
well suited to situations where seasonal help is required. Seasonal employees
may be unfamiliar with the task and require direct guidance on performing the
work properly. A high task low relationship leader is not necessarily rude or
discourteous. The leader simply takes the expedient route of focussing on work
rather than people.
2. High task and high relationship: This leader spends considerable time showing
people how to get work accomplished and providing them with psychological
support. The high task and high relationship style is considered useful because
it results in high productivity and personal satisfaction. A more critical look at
this style would suggest that it works best in situations where people need an
active and involved leader. When employees are lacking in self-confidence and
technical skill, the high task and high relationship style is particularly effective.
3. High relationship and low task: A leader using the high relationship and low
task style gives employees much encouragement and support but a minimum of
guidance about the task accomplishment. In some situations employees need
more psychological support rather than technical instructions.
4. Low relationship and low task: A leader using this style is neither here or there.
It is essentially a free-rein style. Subordinates are given considerable latitude in
performing their work. They are also given very little psychological support,
encouragement and praise. They are therefore; free to run their own show.
When subordinates are highly skilled and psychologically mature, this style
can be effective.
Entrepreneurial leadership style
Entrepreneur is a person who converts an innovative idea into business. The word
entrepreneur is generally associated with small-scale industry. What is an entrepreneurial
leadership style? Based on both their personality characteristics, and the circumstances of
operating a business, many entrepreneurs use a similar leadership style. The most notable
features of this style are:
Impatience and brusqueness towards employees because the entrepreneur is
always busy.
A heavy task orientation combined with a very direct approach in giving
instructions to employees.
A charismatic personality that inspires others to want to do business with him
despite the impatience.
A much stronger interest in dealing with customers than employees.
A strong dislike for bureaucratic rules and regulations.
Anxiety to consolidate business gains as quickly as possible
number. In order to maintain our dignity and to sustain our ethos and at the same time to
accept what is good for our business we need more transformational leaders.
Today Managers role has undergone change. A mesh of managerial qualities with
leadership ability will be the key to success of managers in todays environment. We do
not need managers only but Managerial Leaders.
Does leadership style change according to the situation?
Leadership Style: Dynamic and effective leadership is considered by all to be one of the
major requirements of successful management. Leadership, in simplest of terms, is the
ability to persuade others to seek defined goals and objectives enthusiastically.
Leadership style is the pattern of behaviours used by the leader to influence the behaviour
of others
Situational Leadership: Leadership style is generally talked in terms of two extremes
an autocratic (directive) and a democratic (supportive) style. Autocratic leaders used
position power and their authority to get results while democratic leaders used personal
resources (power) and involved others in participative problem solving and decisionmaking.
No One Best Style: Though some claim that there is one best style that maximizes
productivity, satisfaction and growth in all situation, further research in the last several
decades has clearly supported the view that there is no one best leadership style:
Successful leaders are able to adapt there style to fill the requirements of the situation.
While the situational approach to leadership does make much sense, it is not very helpful
to practicing managers, who have to make leadership decisions everyday. If "it all
depends on the situation", they would like to know when to use what style.
A number of situational factors influence which leadership style will be appropriate in
which situation. These factors include time frames, job and task demands, Organizational
climate and the superiors, peers and subordinates skills, values and expectations. If
every time all these factors have to be analysed by the managers, it will result in, what is
called paralysis by analysis, and consequent inaction.
The immediate key factor that a leader takes into account is the subordinates. In
particular, the amount of direction and support a leader should provide depends on the
Development Level that the subordinates show on a specific task, function or objective
that the leader is attempting to accomplish through individual or group.
Development Level: Development Level is defined as the competence and commitment
of the subordinates to perform a particular task.
When thinking about someones development level it becomes necessary to remember
that people are not "fully developed" or "under developed". Development level is only a
task specific concept. People tend to be at different levels of development depending on
the specific task, function or objective they are assigned.
Matching Leadership Style to Development Level: In determining what style to use
with what development level, leaders need to provide their people with what they cannot
do for themselves. For example, s shop floor worker needs to be lead by direction, while
a sales executive needs to be led differently. It all depends on the maturity of the person
being lead.
Increasing Performance Potential Situational leadership as described so far, is helpful
for a practicing manager trying to determine what leadership style to use with the
follower in a particular situation, on a particular task. Leader not only diagnoses the
development level of his followers but also has the responsibility to enable the
subordinate to grow to increase this development level. This is done through training.
Conclusion
Effective managers know their subordinates well enough to flexibly manage everchanging demands upon their organizations. As responsibilities and tasks are assigned to
individuals and groups, Development level must be assessed. The manager should then
vary his/her leadership style in response to the individuals development level. It should
be kept in mind that over time subordinates and subordinate groups develop their own
pattern of behaviour and ways of operating, i.e. norms, customs, traditions etc. While a
manager may use a specific style for the work group as a group, that manager may quite
often have to behave differently with individual subordinates because they are at different
levels of development.
It is this shifting forward and backward in style that makes situational leadership a truly
developmental model for both managers and subordinates.
Critically analyze the differences in the leadership styles of family managed Indian
business organization and MNCs in India
Indian work organizations can be classified into three pats which have some distinctive
features and consequently the different leadership styles. Such classification may be (i)
family-managed
traditional
organisations,
(ii)
professionally
managed
Indian
to any crisis along the way. Values need leaders to be absolutely transparent in whatever
they do. Every action of the leader must stand public scrutiny. Values transmit trust,
which is a very powerful cementing force for the organization in these changing times.
Successful leaders recognize that shared values increase commitment and productivity.
Through shared values, visions and goals, each individual possesses an accurate view of
the "larger picture" and understands what the organization as a whole is trying to
accomplish. Explicit values provide organizations with an efficient way to build
commitment, guide decision-making, align actions, increase potential capability, and
achieve a state that unites members in effective performance.
Alignment of business vision, goals, strategies, policies and practice has always been key
to the effectiveness and success of organizations. But traditional ways of achieving this
do not provide the flexibility and responsiveness necessary for a customer-focused stance
in a rapidly changing and unpredictable environment. Alignment now has to be achieved
through a shared understanding of what is important to the organization, its employees,
and its customers - that is through shared value priorities.
A basic set of values, which a leader must possess, are integrity, honesty, building and
maintaining good relationships, trustworthiness and being there for ones followers.
Leaders should maintain their own balance, and at the same time try to do good to others,
be selfless and be so strong that they convince others of their strength, not through
thoughtless or violent actions, but through their firmness dignity and inner strength. The
leaders should cultivate real non-violence, which is the greatest strength and power of
endurance that a man can attain. It means the greatest courage coupled with the greatest
love. It also means total absence of hatred. Hatred is as bad as attachment. Anger is as bad
as lust. Leaders should not try to elbow out others or sacrifice others for the sake of their
self-interest, or in the interest of those who are dear to them. Leaders should have
compassion and love for others. When a leader sees the self in all people and all people in
the self, then he hates no one. This is the recurring theme in the Upanishads. When one
realizes the self, one hates none. Anger, hatred, untruthfulness, greed unchastity or
helpless dependence on others - these shift the center of gravity away from the essential
integrity and create conflict and discord.
When it gets tough, like when there has to be cuts in salaries, etc., the leader should do
just that - lead. They need to not only be the one who is rewarded the greatest when all is
well, but they need to be the first to sacrifice. The extraordinary leader says, "I know
many of you are concerned with the salary cuts. I am too. In the long run we will be
healthy again but for the mean time, this is necessary. Understanding this, I want you to
know that I am taking a 20 percent pay reduction myself. I want you to know that we are
in this together." The extraordinary leader is the first to sacrifice and will be rewarded
with the loyalty of his or her followers.
Panic is one of the basest of human emotions and no one is immune to it. The
extraordinary leader, however, takes time out regularly to think the issues through so they
can remain calm. They remind themselves that all is not lost and there will be another
day. They remind themselves that being calm will enable them to make the best decisions
- for themselves and for their followers. Panic only leads to disaster, while calm leads to
victory.
Leaders forgive the mistakes of others. Indeed, a touchstone of a healthy and moving
organisation is forgiveness. This sense of tolerance and acknowledgement of our shared
humanity is a spiritual quality, which good leaders possess.
Developing the values of patience and perseverance become essential for any leader.
These values gain him respect even among competitors.
Research has shown that the ethical standards of an organization impact upon the
efficiency of that organization. They affect staff job satisfaction, staff commitment to the
organization, as well as turnover in and levels of stress experienced by staff. In short, the
research findings support the argument that good ethics are good business.
Unethical practices result in loss of public confidence and tarnished reputations. Stress is
an expensive and on-going problem. Research suggests that a poor ethical culture in an
organization can contribute to work place stress.
Leaders inculcate values in their followers by:
a. Direct communication with staff through regular talks and discussions;
b. Supporting those discussions by their attendance and by reference to concrete
examples of practices or circumstances that may be, or may be seen to be,
unethical;
c. Discussing specific ethical issues that staff can relate to, rather than having a
philosophical discussion about abstract values. The discussion of ethical issues
should become a normal part of the managers job;
d. Communicating their own beliefs in the core ethical values of the organization
through their own actions;
e. Putting in place systems that reward ethical behaviour and punish unethical
behaviour. These must be applied so that they are seen to be actively rewarding
desirable behaviour and not just punishing unethical behaviour;
f. Establishing guiding principles for appropriate behaviour. These should include,
but not be limited to, a code of conduct that can help guide decisions in a diverse
range of situations.
When talking about leadership in the organisational context, one question that pops up in
the mind is that are managers in the organisation the same as leaders? The line dividing
the two terms is blurred. Managers and leaders are essentially different kinds of people.
They differ in motivation, personal history and in how they think and act. Managers carry
out the management functions assigned to them but leaders have much higher goals than
simply managing the affairs of the company. They have a great vision and want to take
their organisation to unbelievable heights with the able support of employees. It has been
pointed out that management is doing things right, leadership is doing the right
things. Managements efficiency lies in climbing the ladder of success, leadership
determines whether the ladder is leaning against the right wall.
To be really effective in the organisation and take it to greater heights, mangers should
imbibe leadership qualities. They should adopt the following traits of effective leadership:
They should observe and absorb
They should learn how to listen to their subordinates
They should welcome new ideas
Time should be highly valued
They should set regular goals
Achievements should always be anticipated
Their approach should be organised.
They should be great motivators
Leader empowers people and gets the work done. Empowerment can lead to greater
commitment, which goes much ahead of self-gain. This selfless approach leads to better
productivity from people. Nehru, Lal Bahadur Shastri are good examples who
empowered people. Computer revolution by Rajiv Gandhi is typical example of
empowerment.
Examples of managers who are effective leaders are Verghese Kurien of AMUL, NR
Narayanmurthy of Infosys KV Kamath of ICICI, Deepak Parekh of HDFC, Ashank Desai of
Mastek etc. these leaders have taken their organisations to great success and proved that the sky
is indeed the limit if you have the vision and commitment to succeed