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XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

ABSTRACT
From time immemorial, human resource management has been a vital aspect of management of resources within any organization – social, political or economic. However, it is only in the recent past that its significance has been realized and it has been accepted as a formalized field of study. Post the Industrial Revolution; mass production started taking place under a formal production unit known as the ‘shop floor’. In those days, human resource was treated at par with any other factors of production, which could be manipulated by the management for profit maximization. With the emergence of the Marxist philosophy, management was forced to take note of the immense potential lying dormant in the labor, which, if not harnessed properly could kill any organization. As the human capital is the most important but highly perishable resource of any business enterprise, human resource management plays a vital role in the success of any business, especially as there exists tremendous scope for value addition to human resource which cannot be easily duplicated. Thus evolved the need for a leader who could successfully maintain and develop the human aspect of the organization. A leader is the friend, philosopher and guide. Similar to the pied piper who entranced the mice to follow him leading them out of the kingdom, so too a leader attracts his followers with his magnetic personality. Thus, a leader aims at the attainment of common goals by motivating and inspiring his followers. Leadership is context based and varies across continents depending upon the social and cultural ethos of its followers.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

1. I N T R O D U C T I O N
Leadership is all about harnessing people power for the attainment of a desired goal and thus the concept of leadership cannot be restricted to the organizational context. It pervades through all realms of society, whether it be in politics, religion or the corporate world. 1.1. Definition Of Leadership Leadership is the synthesis of two words – leader + ship, thus a leader can be seen as one who leads the ship through troubled waters. Even in turbulent weather, the captain of the ship can be seen at the steering wheel, with a clear sense of direction and with a deft twist of the wrist he can swing things around. So too, leadership is about a vision of the future and the ability to energize others to pursue it. A distinction must however be made between leaders and managers. Managers are people who do things right, while leaders are people who do the right thing. - Warren Bennis, Ph.D. "On Becoming a Leader"1 1.2. What Is Leadership? Leadership is a process of getting things done through people. The quarterback moves the team toward a touchdown. The senior patrol leader guides the troop to a high rating at the camporee. The mayor gets the people to support new policies to make the city better. These leaders are getting things done by working through people -football players, Scouts, and ordinary citizens. They have used the process of leadership to reach certain goals. Leadership is not a science. So being a leader is an adventure because you can never be sure whether you will reach your goal -- at least this time. The touchdown drive may end in a fumble. The troop may have a bad weekend during the camporee. Or the city's citizens

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

may not be convinced that the mayor's policies are right. So these leaders have to try again, using other methods. But they still use the same process - the process of good leadership. Leadership means responsibility. It's adventure and often fun, but it always means responsibility. The leader is the guy the others look up to, to get the job done. So don't think your job as a troop leader or a staff member will be just an honor. It's more than that. It means that the other Scouts expect you to take the responsibility of getting the job done. If you lead, they will do the job. If you don't, they may expect you to do the job all by yourself. Wear your badge of office proudly. It does not automatically make you a good leader. But it identifies you as a Scout who others want to follow -- if you'll let them by showing leadership. You are not a finished leader. No one ever is, not even a president or prime minister. But you are an explorer of the human mind because now you are going to try to learn how to get things done through people. This is one of the keys to leadership. You are searching for the secrets of leadership. Many of them lie locked inside you. As you discover them and practice them, you will join a special group of people-skilled leaders.2 1.3. Leadership: A Concept There are four major factors in leadership: 3 Follower Different people require different styles of leadership. For example, a new hire requires more supervision than an experienced employee. A person who lacks motivation requires a different approach than one with a high degree of motivation. You must know your people! The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. You must become to know your employees' be, know, and do attributes.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Leader You must have an honest understanding of who you are, what you know, and what you can do. Also, note that it is the followers, not the leader who determines if a leader is successful. If they do not trust or lack confidence in their leader, then they will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of being followed. Communication You lead through two-way communication. Much of it is nonverbal. For instance, when you "set the example," that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and how you communicate either builds or harms the relationship between you and your employees. Situation All are different. What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective. Various forces will affect these factors. Examples of forces are your relationship with your seniors, the skill of your people, the informal leaders within your organization, and how your company is organized.4 1.4. Evolution Of A Leader Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a never-ending process of self-study, education, training, and experience.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

To inspire your workers into higher levels of teamwork, there are certain things you must be, know, and, do. These do not come naturally, but are acquired through continual work and study. Good leaders are continually working and studying to improve their leadership skills; they are not resting on their laurels. Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Although your position as a manager, supervisor, lead, etc. gives you the authority to accomplish certain tasks and objectives in the organization, this power does not make you a leader - it simply makes you the boss. Leadership differs in that it makes the followers want to achieve high goals, rather than simply bossing people around. Bass' (1989 & 1990) theory of leadership states that there are three basic ways to explain how people become leaders. The first two explain the leadership development for a small number of people. These theories are:
• •

Some personality traits may lead people naturally into leadership roles. This is the Trait Theory. A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person. This is the Great Events Theory. People can choose to become leaders. People can learn leadership skills. This is the Transformational Leadership Theory. It is the most widely accepted theory today.

When a person is deciding if he respects you as a leader, he does not think about your attributes, rather, he observes what you do so that he can know who you really are. He uses this observation to tell if you are an honorable and trusted leader or a self-serving person who misuses authority to look good and get promoted. Self-serving leaders are not as effective because their employees only obey them, not follow them. They succeed in many areas because they present a good image to their seniors at the expense of their workers.
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

The basis of good leadership is honorable character and selfless service to your organization. In your employees' eyes, your leadership is everything you do that affects the organization's objectives and their well-being. Respected leaders concentrate on what they are (such as beliefs and character), what they know (such as job, tasks, and human nature), and what they do (such as implementing, motivating, and provide direction). What makes a person want to follow a leader? People want to be guided by those they respect and who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is achieved by conveying a strong vision of the future. Hay's study examined over 75 key components of employee satisfaction. They found that:
• •

Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence: 1. Helping employees understand the company's overall business strategy. 2. Helping employees understand how they contribute to achieving key business objectives. 3. Sharing information with employees on both how the company is doing and how an employee's own division is doing - relative to strategic business objectives.

So in a nutshell - you must be trustworthy and you have to be able to communicate a vision of where the organization needs to go.5 1.5. The Process Of Great Leadership The road to great leadership (Kouzes and Posner, 1987) that is common to successful leaders:

Challenge the process - first, find a process that you believe needs to be improved the most.
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

• • •

Inspire a shared vision - next, share you vision in words that can be understood by your followers. Enable others to act - give them the tools and methods to solve the problem. Model the way - when the process gets tough, get your hands dirty. A boss tells others what to do...a leader shows that it can be done. Encourage the heart - share the glory with your followers' heart, while keeping the pains within your own. 6 1.6. The ‘Be, Know, Do’ Principle Of Leadership

If you are a leader who can be trusted, then those around you will grow to respect you. To be such a leader, there is a leadership framework to guide you:
-

-

Be a professional. Examples: be loyal to the organization, perform selfless service, and take personal responsibility. Be a professional who possess good character traits. Examples: honesty, competence, candor, commitment, integrity, courage, straightforwardness, imagination. Know the four factors of leadership - follower, leader, communication, situation. Know yourself. Examples: strengths and weakness of your character, knowledge, and skills. Know human nature. Examples: human needs, emotions, and how people respond to stress. Know your job. Examples: be proficient and be able to train others in their tasks. Know your organization. Examples: where to go for help, its climate and culture, who the unofficial leaders are. Do provide direction. Examples: goal setting, problem solving, decision making, planning. Do implement. Examples: communicating, coordinating, supervising, evaluating. Do motivate. Examples: develop moral and esprit de corps in the organization, train, coach, and counsel. 7

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

1.7. Leadership: Comparison Between The Indian And Western Models In a bid to study the comparative styles of leadership in the two hemispheres, we must realize that in India, leadership arises out of introspection and attainment of material pursuits is regarded as only a path to reach salvation. In the Western countries however, success is measured solely on the basis of material prosperity. One of the most significant differences in the approach towards responding to changing environments can be seen in the form of a proactive West vs. a reactive East. The West has an ability to conceive and perceive an opportunity when none seem to exist, whereas in India the reaction is in response to a stimulus, viz. an opportunity is seized only after it actually presents itself in front of the leaders. Though it can be seen that the concepts of leadership have evolved through the ages in both India and the West, the evolution has been more rapid in the West. India still has miles to go before it can catch up with the West. 1.8. Some Great Leaders India has been witness to a host of good leaders, in the corporate, religious, social and political sphere. Some prominent among them are:  Swami Vivekananda, who mesmerized the entire world and single handedly awakened the spirit of India.  Mahatma Gandhi, who through the power of ahimsa rocked the British Throne.  Shri J.R.D. Tata, who through his vision and mission to change the face of India fought the might of the British and got India a foothold in some of the sunrise industries.  Shri Dhirubhai Ambani, rose from scratch in the License Permit Raj, and made his presence felt worldwide.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

 Mr. Narayana Murthy, who is the epitome of modern day India’s ethical leadership. The West too has had its share of very successful leadership with varying styles ranging from subtle to flamboyant. Some eminent names that come to mind are:  Hitler, a concrete example of how a leader can be the cause of the boom and doom of his followers.  Abraham Lincoln, listened to the call of his conscience, broke ranks and successfully demolished the derogatory tradition of slavery from the civilized world.  Donald Trump, the real estate tycoon who forced his way into the closed-ended club of land sharks of New York, using failure as a stepping-stone to success.  Bill Gates, who revolutionized the world with his contribution to the software industry. 1.9. Thumb Rules Of A Successful Leader Whether a leader is operating in the West or in India, these are some of the thumb rules when it comes to successful leadership: -

The six most important words: "I admit I made a mistake." The five most important words: "You did a good job." The four most important words: "What is your opinion." The three most important words: "If you please." The two most important words: "Thank you," The one most important word: "We" The least most important word: "I"8

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

2. R E S E A R C H M E T H O D O L O G Y
This project is based on information gathered through secondary data. Firstly, this topic “Leadership: Comparison Between The Indian And Western Models.” was given to me by my professor. To understand the matter well and to assimilate appropriate information about the topic, I went through sufficient textbooks that I could access. I also collected information from the Internet. After compiling all the information available from the various sources, I made an extensive study. This in-depth study helped me to understand the concept of leadership in context to its varied application in the West and in India. It was clear from the study that understanding these changing concepts and styles of leadership are a key to successful implementation of these styles in the future corporate scenario. Using the Internet was very advantageous as the various sites provided a detailed insight into the concepts of leadership. I also came across some very interesting articles and speeches delivered by prominent leaders about the changing styles of leadership, which only added to my knowledge. Through my project, I have made the best of my efforts to bring out the differences in the concepts of leadership as applied in the West and in India.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

3. H Y P O T H E S I S
Be it Luyten’s Delhi, or the car lovers’ Mecca, Seattle, the leader’s agenda can only be one – to lead, albeit with a local flavor.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

4. A N A L Y S I S
Through the following analysis, I have tried my best to bring out a clear distinction between the concepts of leadership as viewed in India as against the West and highlight the need for synthesis of these varying styles in the face of globalization. 4.1. Origin Of The Concept Guru Brahma Gurur Vishnu Guru Devo Maheshwaraha Guru Saakshat Para Brahma Tasmai Sree Gurave Namaha Meaning: Guru is verily the representative of Brahma, Vishnu and Shiva. He creates, sustains knowledge and destroys the weeds of ignorance. I salute such a guru. 9 This shloka essentially describes the pedestal on which a leader was placed in the traditional Indian society. The Indian society, being an inward looking and highly philosophical society awarded the guru a place even higher than God. It was the only form of recognized leadership and everyone in the society, irrespective of his position, would turn to the guru to seek advice on matters ranging from war strategies to spiritual solace. In the Indian society, after the thread ceremony, an important ritual marking the beginning of the formal education of a child was being sent to a gurukul. Here he would lead a life of a commoner, regardless of his background, under the guidance of the guru. The guru would condition his disciples both spiritually and mentally to help them embark on the life of a grihastha once they attain the age of twenty-five. His word was a command in every sphere and everyone was supposed to discharge his debts to the guru, in the form of a guru dakshina, by carrying out his orders.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

In the post Aryan era, the balance of power shifted to the crown. The king was now recognized as the ultimate leader who was responsible for all his subjects. The nineteenth century saw another turn and political leaders in the form of revolutionaries fighting for the country’s independence came to the fore. The likes of Mahatma Gandhi mesmerized the country and shook the British throne. After independence, in a pledge to build the nation, the importance of trade and commerce gained recognition. Thus evolved the concept of business leadership in India, personified by late Shri G.D. Birla, Shri J.R.D. Tata and a host of others. The common thread running through these diverse personalities represents the essence of Indian leadership. These elements can be bulleted as under: • • • • • • • • • • • Warm / informal Respect for the individual Introspection Inward looking Compassionate Sensitive Objective Collaborative Intellectual Ethical Aesthetic • Recognition of social responsibility10 Indian forms of leadership stand in stark contrast to the western philosophies of leadership, essentially comprising of the concepts adopted by Northern America and Europe.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Here too, the first instances of leadership can be traced to a spiritual leader or the Pope exercising a strict control over the entire Catholic Christian population across the globe. Constant conflict erupting in the form of the two world wars saw the shift of power to political leadership represented by Hitler, Churchill, Kennedy and so forth. Controls shifted again with the government taking a back seat and playing the role of a facilitator, business leadership took the lead and emerged as the key form of leadership. Henry Ford, J. Paul Getty, Warren Buffet and their likes now became the names to reckon with. The essence of the western leadership philosophy as portrayed by them all can be enlisted as follows: • • • • • • • • Cold / impersonal Winning at any cost Admiration for power Drive for excellence Outward / aggressive Subjective Strict hierarchy System centric • Technology based11 From the aforesaid discussion it emerges that leadership comprises of personality-based attributes appealing to the masses and channelises their energy towards a common end. Leaders always emerge out of vacuum in a crisis situation when the masses are confused and agitated to stake everything for the attainment of a given goal. The leadership may emerge in any sphere, whether it is political, religious, social or economic.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

It is also evident that although the trajectory of evolution of the concept is similar in both India as well as the West, the shift of focus towards business leadership was much quicker in the West. 4.2. Leadership Defined Thus we can define leadership as:

“The activity of influencing people to strive willingly for group objectives.” - George R. Terry.12 “It is interpersonal influence exercised in a situation and directed through the communication process towards the attainment of specialized goals.” – Robert Tannenbaum.13 “Leadership is influencing people to follow in the achievement of a common goal” – Koontz O’Donnell. 14

The above definitions as is evident all pertain to the Western views. This is because leadership as a formalized field of study and analysis with a structured syllabus has not yet been established in India as it is in the West. Here one still goes by the old Hindu tradition of the son wearing his father’s shoes. Needless to say, this usually proves to be a ‘hit or miss’ approach as it is not necessary that the leadership skills will be passed down the generations automatically. 4.3. Leadership Styles Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. The U.S. Army Handbook, 1973 identifies three styles of leadership: 15 4.3.1. Authoritarian or Autocratic 4.3.2. Participative or Democratic 4.3.3. Delegative or Free Reign

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Although good leaders use all three styles, with one of them normally dominate, bad leaders tend to stick with one style. 4.3.1. Authoritarian (Autocratic) This style is used when the leader tells his employees what he wants done and how he wants it done, without getting the advice of his followers. Some of the appropriate conditions to use it are when you have all the information to solve the problem, you are short on time, and your employees are well motivated. Some people tend to think of this style as a vehicle for yelling, using demeaning language, and leading by threats and abusing their power. This is not the authoritarian style – rather, it is an abusive, unprofessional style called ‘bossing’ people around. It has no place in a leaders repertoire. The authoritarian style should normally only be used on rare occasions. If you have the time and want to gain more commitment and motivation from your employees, then you should use the participative style. 4.3.2. Participative (Democratic) This type of style involves the leader including one or more employees in on the decision making process (determining what to do and how to do it). However, the leader maintains the final decision making authority. Using this style is not a sign of weakness; rather it is a sign of strength that your employees will respect. This is normally used when you have part of the information, and your employees have other parts. A leader is not expected to know everything - this is why you employ knowledgeable and skillful employees. Using this style is of mutual benefit - it allows the employees to become part of the team and allows you to make better decisions.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

4.3.3. Delegative (Free Reign) Also known as laissez faire, which is the noninterference in the affairs of others. In this style, the leader allows the employees to make the decision. However, the leader is still responsible for the decisions that are made. This is used when employees are able to analyze the situation and determine what needs to be done and how to do it. You cannot do everything! You must set priorities and delegate certain tasks. This is not a style to use so that you can blame others when things go wrong; rather this is a style to be used when you have the full trust and confidence in the people below you. One should not be afraid to use it, however, to be effective, it must be used wisely! 16 There are a number of different approaches, or 'styles' to leadership and management that are based on different assumptions and theories. The style that individuals use will be based on a combination of their beliefs, values and preferences, as well as the organizational culture and norms, which will encourage some, and discourage others. In this context, the various approaches could also be classified under the following heads. 4.3.4. Charismatic Leadership 4.3.5. Participative Leadership 4.3.6. Situational Leadership 4.3.7. Transactional Leadership 4.3.8. Transformational Leadership 4.3.9. The Quiet Leader 4.3.10. Servant Leadership

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

4.3.4. Charismatic Leadership Attributes of charismatic leaders that indicate a more transformational viewpoint:
• • • • •

Vision and articulation; Sensitivity to the environment; Sensitivity to member needs; Personal risk taking; Performing unconventional behavior.

Musser (1987) notes that charismatic leaders seek to instill both commitment to ideological goals and also devotion to themselves. The extent to which either of these two goals is dominant depends on the underlying motivations and needs of the leader. 4.3.5. Participative Leadership A participative leader, rather than taking autocratic decisions, seeks to involve other people in the process, possibly including subordinates, peers, superiors and other stakeholders. Often, however, as it is within the managers' whim to give or deny control to his or her subordinates, most participative activity is within the immediate team. The question of how much influence others are given thus may vary on the manager's preferences and beliefs, and a whole spectrum of participation is possible.17 There are many varieties on this spectrum, including stages where the leader sells the idea to the team. Another variant is for the leader to describe the 'what' of objectives or goals and let the team or individuals decide the 'how' of the process by which the 'how' will be achieved (this is often called 'management by objectives'). The level of participation may also depend on the type of decision being made. Decisions on how to implement goals may be highly participative, whilst decisions during subordinate performance evaluations are more likely to be taken by the manager.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

4.3.6. Situational Leadership When a decision is needed, an effective leader does not just fall into a single preferred style, such as using transactional or transformational methods. In practice, as they say, things are not that simple. Factors that affect situational decisions include motivation and capability of followers. This, in turn, is affected by factors within the particular situation. The relationship between followers and the leader may be another factor that affects leader behavior as much as it does follower behavior. The leaders' perception of the follower and the situation will affect what they do rather than the truth of the situation. The leader's perception of themselves and other factors such as stress and mood will also modify the leaders' behavior. Yukl (1989) seeks to combine other approaches and identifies six variables:
• • • • • •

Subordinate effort: the motivation and actual effort expended. Subordinate ability and role clarity: followers knowing what to do and how to do it. Organization of the work: the structure of the work and utilization of resources. Cooperation and cohesiveness: of the group in working together. Resources and support: the availability of tools, materials, people, etc. External coordination: the need to collaborate with other groups.

Leaders here work on such factors as external relationships, acquisition of resources, managing demands on the group and managing the structures and culture of the group.

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

4.3.7. Transactional leadership The transactional leader works through creating clear structures whereby it is clear what is required of their subordinates, and the rewards that they get for following orders. Punishments are not always mentioned, but they are also well understood and formal systems of discipline are usually in place. The early stage of transactional leadership is in negotiating the contract whereby the subordinate is given a salary and other benefits, and the company (and by implication the subordinate's manager) gets authority over the subordinate. When the transactional leader allocates work to a subordinate, they are considered to be fully responsible for it, whether or not they have the resources or capability to carry it out. When things go wrong, then the subordinate is considered to be personally at fault, and is punished for their failure (just as they are rewarded for succeeding). The transactional leader often uses management by exception, working on the principle that if something is operating to defined (and hence expected) performance then it does not need attention. Exceptions to expectation require praise and reward for exceeding expectation, whilst some kind of corrective action is applied for performance below expectation. Whereas transformational leadership has more of a 'selling' style, transactional leadership, once the contract is in place, takes a 'telling' style. 4.3.8. Transformational leadership Working for a transformational leader can be a wonderful and uplifting experience. They put passion and energy into everything. They care about you and want you to succeed. Transformational leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker. The next step, which in fact never stops, is to constantly sell the vision. This takes energy and commitment, as few people will immediately buy into a radical vision, and some will join the show much more slowly than others. The transformational leader thus takes every opportunity and will use whatever works to convince others to climb on board the bandwagon. In order to create followers, the transformational leader has to be very careful in creating trust, and their personal integrity is a critical part of the package that they are selling. In effect, they are selling themselves as well as the vision. Parallel to the selling activity is seeking the way forward. Some transformational leaders know the way, and simply want others to follow them. Others do not have a ready strategy, but will happily lead the exploration of possible routes to the Promised Land. The route forwards may not be obvious and may not be plotted in details, but with a clear vision, the direction will always be known. Thus finding the way forward can be an ongoing process of course correction, and the transformational leader will accept that there will be failures and blind canyons along the way. As long as they feel progress is being made, they will be happy. The final stage is to remain up-front and central during the action. Transformational leaders are always visible and will stand up to be counted rather than hide behind their troops. They show by their attitudes and actions how everyone else should behave. They also make continued efforts to motivate and rally their followers, constantly doing the rounds, listening, soothing and enthusing. It is their unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

transformational leader seeks to infect and reinfect their followers with a high level of commitment to the vision. One of the methods the transformational leader uses to sustain motivation is in the use of ceremonies, rituals and other cultural symbolism. Small changes get big hurrahs, pumping up their significance as indicators of real progress. Overall, they balance their attention between action that creates progress and the mental state of their followers. Perhaps more than other approaches, they are people-oriented and believe that success comes first and last through deep and sustained commitment. 4.3.9. The Quiet Leader The approach of quiet leaders is the antithesis of the classic charismatic (and often transformational) leaders in that they base their success not on ego and force of character but on their thoughts and actions. Although they are strongly task-focused, they are neither bullies nor unnecessarily unkind and may persuade people through rational argument and a form of benevolent transactional leadership. The 'level 5' leader: In his book “Good To Great”, Jim Collins, identified five levels of effectiveness people can take in organizations. At level four is the merely effective leader, whilst at level five the leader who combines professional will with personal humility. The 'professional will' indicates how they are far from being timid wilting flowers and will march against any advice if they believe it is the right thing to do. In 'personal humility' they put the well-being of others before their own personal needs, for example giving others credit after successes but taking personal responsibility for failures. The quiet leader is not a modern invention and Lao Tzu, who, in the classic Taoist text ‘Tao Te Ching’, was discussing the same characteristic around 500 BC:

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The very highest is barely known by men, Then comes that, which they know and love, Then that, which is feared, Then that which is despised. He who does not trust enough will not be trusted. When actions are performed Without unnecessary speech, People say, “We did it!” Here again, the highest level of leadership is virtually invisible. 4.3.10. Servant Leadership The servant leader serves others, rather than others serving the leader. Serving others thus comes by helping them to achieve and improve. Principles of servant leadership defined by the alliance for servant leadership are:
• • • • • • • •

Transformation as a vehicle for personal and institutional growth. Personal growth as a route to better serves others. Enabling environments that empower and encourage service. Service as a fundamental goal. Trusting relationships as a basic platform for collaboration and service. Creating commitment as a way to collaborative activity. Community building as a way to create environments in which people can trust each other and work together. Nurturing the spirit as a way to provide joy and fulfillment in meaningful work.

An excellent example of a servant leader is Ernest Shackleton, the early 20th century explorer who, after his ship became frozen in the Antarctic life, brought every one of his twenty-seven crew members home alive, including an eight hundred mile journey in open boats across the winter Antarctic seas. It took two years, but Shackleton's sense of responsibility towards his men never wavered.18
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4.4. Selection Of A Style A good leader uses all three styles, depending on what forces are involved between the followers, the leader, and the situation. Some examples include:

Using an authoritarian style on a new employee who is just learning the job. The leader is competent and a good coach. The employee is motivated to learn a new skill. The situation is a new environment for the employee. Using a participative style with a team of workers who know their job. The leader knows the problem, but does not have all the information. The employees know their jobs and want to become part of the team. Using a delegative style with a worker who knows more about the job than you. You cannot do everything! The employee needs to take ownership of her job. Also, the situation might call for you to be at other places, doing other things. Using all three: telling your employees that a procedure is not working correctly and a new one must be established (authoritarian). Asking for their ideas and input on creating a new procedure (participative). Delegating tasks in order to implement the new procedure (delegative). 19

4.4.1. Factors Influencing The Selection Of A Style Forces that influence the style to be used included:
• • • • • • •

How much time is available. Are relationships based on respect and trust or on disrespect? Who has the information – the leader, employees, or both? How well the employees are trained and how well the leader knows the task. Internal conflicts. Stress levels. Type of task. Is it structured, unstructured, complicated, or simple? 20
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4.5. Different Approaches A leader may use a variety of different approaches depending on the situation and the employees in question. 4.5.1. Positive Vs. Negative Approach There is a difference in ways leaders approach their employee. Positive leaders use rewards, such as education, independence, etc. to motivate employees. While leader adopting the negative approach emphasize penalties. While the negative approach has a place in a leader's repertoire of tools, it must be used carefully due to its high cost on the human spirit. Negative leaders act domineering and superior with people. They believe the only way to get things done is through penalties, such as loss of job, days off without pay, reprimand employees in front of others, etc. They believe their authority is increased by freighting everyone into higher lever of productivity. Yet what always happens when this approach is used wrongly is that morale falls; which of course leads to lower productivity. It is of vital significance that most leaders do not strictly use one or another, but are somewhere on a continuum ranging from extremely positive to extremely negative. People who continuously work out of the negative are ‘bosses’ while those who primarily work out of the positive are considered ‘real leaders’. 21 4.5.2. Consideration Vs. Structured Approaches Two other approaches that leaders use are: Consideration (Employee Orientation) - leaders are concerned about the human needs of their employees. They build teamwork, help employees with their problems, and provide psychological support.
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Structure (Task Orientation) - leaders believe that they get results by consistently keeping people busy and urging them to produce. There is evidence that leaders who are considerate in their leadership style are higher performers and are more satisfied with their job (Schriesheim, 1982). One must appreciate that consideration and structure are independent of each other, thus they should not be viewed on opposite ends of a continuum. For example, a leader who becomes more considerate does not necessarily mean that he has become less structured. 22 4.5.3. Paternalism Paternalism has at times been equated with leadership styles. Yet most definitions of leadership normally state or imply that one of the actions within leadership is that of influencing. For example, the army uses the following definition: “Leadership is influencing people -- by providing purpose, direction, and motivation -- while operating to accomplish the mission and improving the organization." The army further goes on by defining 'influence' as a: means of getting people to do what you want them to do. It is the means or method to achieve two ends: operating and improving. But there¹s more to influencing than simply passing along orders. The example you set is just as important as the words you speak. And you set an example -- good or bad -- with every action you take and word you utter, on or off duty. Through your words and example, you must communicate purpose, direction, and motivation. While 'paternalism' is defined in the Webster’s dictionary as “A system under which an authority undertakes to supply needs or regulate conduct of those under its control in matters affecting them as individuals as well as in their relationships to authority and to each other.”
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Thus paternalism supplies needs for those under its protection or control, while leadership gets things done. The first is directed inwards, while the latter is directed outwards. Geert Hofstede's (1977) studied culture within organizations. Part of his study was on the dependence relationship or power difference -the extent to which the less powerful members of an organization expect and accept that power is distributed unequally. Hofstede gave this story to illustrate this power difference: The last revolution in Sweden disposed of King Gustav IV, whom they considered incompetent, and surprisingly invited Jean Baptise Bernadotte, a French general who served under Napoleon, to become their new king. He accepted and became king Charles XIV. Soon afterward he needed to address the Swedish parliament. Wanting to be accepted, he tried to do the speech in their language. His broken language amused the Swedes so much that they roared with laughter. The Frenchman was so upset that he never tried to speak Swedish again. Bernadotte was a victim of culture shock -- never in his French upbringing and military career had he experienced subordinates who laughed at the mistakes of their superior. This story has a happy ending as he was considered a very good ruled the country as a highly respected constitutional monarch until 1844 (his descendants still occupy the Swedish throne). Sweden differs from France in the way its society handles inequality (those in charge and the followers). To measure inequality or power difference, Hofstede studied three survey questions from a larger survey that both factored and carried the same weight:
• •

Frequency of employees being afraid to express disagreement with their managers. Subordinates perception of their boss' actual decision-making style (paternalistic style was one choice).

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Subordinates' preference for their boss' decision-making style (again, paternalistic style was one choice).

He developed a Power Difference Index (PDI) for the 53 countries that took the survey. Their scores range from 11 to 104. The higher the number a country received, the more autocratic and/or paternalistic the leadership, which of course relates to employees more afraid or unwilling to disagree with their bosses. While lower numbers mean a more consultive style of leadership is used, which translates to employees who are not as afraid of their bosses. For example, Malaysia has the highest PDI score, being 104, while Austria has the lowest with 11. And of course, as the story above illustrates, Sweden has a relative low score of 31, while France has a PDI of 68, the USA's is 40. One must however note that these scores are relative, not absolute, in that relativism affirms that one culture has no absolute criteria for judging activities of another culture as 'low' or 'noble'. 23 Keeping the above in mind, it seems that some picture paternalistic behavior as almost a barbaric way of getting things accomplished. Yet, leadership is all about getting things done for the organization. And in some situations, a paternalistic style of decision-making might be required; indeed, in some cultures and individuals, it may also be expected by not only those in charge, but also the followers. That is what makes leadership styles quite interesting -- they basically run along the same continuum as Hofstede’s PDI, ranging from paternalistic to consultive styles of decision-making. This allows a wide range of individual behaviors to be dealt with, ranging from beginners to peak performers. In addition, it accounts for the fact that not everyone is the same. However, when paternalistic or autocratic styles are relied upon too much and the employees are ready and/or willing to react to a more consultive type of leadership style, then it normally becomes quite damaging to the performance of the organization.24

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4.6. Comparison Between The Indian And Western Models The differences in leadership in India and the West can be seen not only in the adoption of different styles but also in their difference in approaches to the various criteria. 25 4.6.1. Basic Styles Of Leadership Adopted By The West And In India While leadership essentially is a personality-based attribute, it does derive a distinct flavor from the social, political and cultural weave of the environment. Hitler, Napoleon and Stalin were the epitome of autocratic leadership in the West. However, with the emergence of Winston Churchill and Abraham Lincoln, the West saw a more humane and democratic leader. The winds of change were not restricted to the political scenario, but swept thee business world as well. With the advent of the Industrial Revolution coupled with the emergence of a strong culture of trade unionism, autocracy was no longer acceptable. Theory X was replaced by Theory Y in the form of a participative leadership style. Henry Ford was replaced by Bill Gates and Sam Walton. With structured and systematic research on leadership, the West continued reinventing and reformulating the rules of the game. In severe contrast, India being a closed and insulated economy, leadership was oblivious of the changes sweeping the West. Here the emphasis was on managing the system and not the people. Lack of an effective political opposition ensured continuance with centralized economy where business was an instrument of politics.

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As a result, the cultivation of connections in Delhi was the sole function of the top leadership with the management consisting of the old faithfuls to do lala’s bidding. Reliance successfully challenged the system and Infosys opened the window to the world. This, however, was only the tip of the iceberg and the glacier is yet to melt. Sunshine sectors where intellectual property power is evident and which constantly interact with the West stand apart from the majority which still believes in seniority and not meritocracy, A burning example is visible in the form of the leadership of the Congress party, which despite being in existence for 75 years has to still rely on Nehru- Gandhi family for vote catching. In Bihar the only qualification Smt Rabridevi had for being chief minister, was her relationship with Shri Laluprasad. Just like it is darkest before dawn, hopefully things will look up sooner than later. 4.6.2. The Basic Differences Between The Western And Indian Perspective The following is the differentiation of leadership approaches and concepts with respect to various important aspects, as I perceived them. 4.6.2.1. Approach To Problem Solving The West tends to take a more rational approach towards problem solving, backing its decisions with hard data and strong systems. The Indian perspective being a more inward looking one, hunch, intuition and gut feeling play a bigger role in making decisions. People, as a result tend to sleep over decision. Very often a well is dug only on the outbreak of fire. The fatalistic attitude proves fatal for the Indian managers; for Instance, Mohammed Gazani looted the Somnath Temple seventeen times. His armies were always shielded by a herd of cows. Instead of
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fighting and in the process causing cow slaughter, able-bodied warriors permitted themselves to be slaughtered and the temple was vandalized. This gross act of cowardliness being meek surrender without fighting was glorified as a path to salvation in order to save the dharma. History is witness that India has never attacked others but has not been able to defend herself despite being quite capable due to its fatalistic attitude, infighting & jealousy. 4.6.2.2. Key Drivers To Action The key motivator in the West is material prosperity and in its quest, leaders tend to be ruthless, aggressive, brazen and high-risk takers. India is traditionally conservative and thus intangible factors play a significant role. Self esteem, conscience and self-satisfaction form a major part of the driving force behind ones work. Thus managers tend to be more sensitive and try to take the middle path, avoiding conflicts to the greatest extent possible, at times even at the cost of productivity. Indians believe in the theory of rebirth and accumulation of karma. In contrast in the West people believe that a person gets only one life and tend to work hard and play harder. For them, the end is important irrespective of the means, the motto being “All’s fair in love and war.” The go-getter attitude breeds selfishness and people tend to be selfcentered, though true achievers. 4.6.2.3. Response To Changing Environment The West has a clinical approach to change and take it in their stride. They are the proactive leaders and therefore always ready to respond to changes quickly and positively, using it to their advantage. India, due to its laidback attitude towards changes tends to procrastinate and take bold decisions only in the moment of crisis.

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The leaders in general have a more reactive approach to the changing environment.

A case in point: major reforms and an opening up of the economy were forced by an acute foreign exchange crisis. In the West adventure is the spirit of life whereas in India it is regarded as rash and foolhardy. 4.6.2.4. Quest For Excellence In the West, it is always about “being the best”, “being the biggest”, “being the largest’, which basically means being market leaders. It is always ‘myself against the world’. The Indian leaders are more content by just making optimum use of the available resources without much ado about what the others are doing. They compete with themselves and are satisfied with the fruits of their labor so long as they have done their best.Materialism is associated with chasing a mirage or Maya. This is the reason that major scientific discoveries have taken place in the West whereas India is known for spiritual evolution, art and culture. Seekers of wealth have migrated to the West and seekers of solace have migrated to the East. Alexander despite conquering the world came to India searching for a guru. It is believed that both Christ and Hazarat Mohammed visited India in search of enlightenment. 4.6.2.5. The Division Between Professional And Personal Life In the West, people tend to draw a clear division between their personal and professional life. The employer - employee relationship
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is purely commercial in nature where money is paid for the services rendered. The relationship is formal and strictly business like. Any attempt by the employer to delve into the personal life of the employee is considered to be invasion of privacy and is subject to costly litigation. ‘Hire and fire’ is the order of the day. People change jobs very casually and a long tenure of service with a single employer is considered to be a sign of timidity, inefficiency or both. One has to either shape up or he is shipped out. In India the concept of Vasudev Kutumbakam preaches that the entire world is one big family with the employer being regarded as the head of the family. It thus becomes his duty to ensure that all the needs of his employees are taken care of. In return the employees are supposed to be totally devoted to the employer. Often the relationship extends to a number of generations. Lifetime employment is the norm. Frequent change of jobs is discouraged. Due to the seamless integration between personal and professional life, it becomes difficult for the managers to take tough decisions. People work till their end as a result there are limited opportunities for the infusion of young blood and the organization is deprived of a fresh perspective. Firing some one is difficult and mass firing sacrilege. As a result an organization keeps accumulating dead wood at the cost of efficiency, nullifying the efforts of productive members in the process. 4.6.2.6. Mobility Of Labor In the West, the factors of production are mobile. People are always in search of the elusive pot of gold under the rainbow and are prepared to risk every thing if the rewards are suitable. It is only in search of the land of milk and honey that Columbus discovered America.

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In contrast, in India, status quo is the done thing. People inherently dislike instability and constant change. 4.6.2.7. Risk Taking Ability In the West it is common to see flatter organizations in real terms, as a result of effective delegation of both responsibility and authority. This in turn being a direct outcome of the hire and fire policy. Managers being risk takers, failure is tolerated as long as the right decisions are taken at the right time. People are encouraged to learn from failure and move on. Risk management and control, not risk avoidance is the order of the day - as long as the risk : rewards ratio and the management’s appetite for the risk are in unison. For Instance Pharmaceutical companies are known to pump in billions of dollars for research and development even when they are incurring losses and the management, for this purpose, has to take expensive debts or dilute its holdings in the hope that the company will come out with a winner. The motto is ‘doomed if we do damned if we do not’ - so why not do? In India people are generally risk averse and are reluctant to delegate. Even after formal delegation, real transfer of authority does not take place though the delegatee becomes a sitting duck to face the bullet if things go wrong. Some reasons why effective delegation does not take place are: • People have a king size ego about their capabilities and are unwilling to trust easily. • As a result of the seamless integration of personal and professional life, any failure is taken to be personal and the manager is marked for life. • A direct outcome of the expensive and slow legal procedures is that any failure cannot be reversed easily and assets are locked

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in a failed venture for a lifetime facing rapid value erosion, not to speak of the opportunity cost. The quest for spiritual solace ensures that people do not want to undergo stress and strain 4.7. Need For Synthesis

With the rapid progress in strategically vital areas such as technology, communication and transportation, the world has become a more closely knit place and there is a greater mobility of the factors of production. Globalization and a virtually boundary-less world is no longer a dream, but reality. Friedman has tried to differentiate the various phases of globalization and its impact on society. The current phase is globalization 3.0. In globalization 1.0, which began around 1492, the world went from size large to size medium. In globalization 2.0, the era that introduced us to multinational companies, it went from size medium to size small. And then around 2000 came globalization 3.0, in which the world went from being small to tiny, affecting countries, companies and individuals in the process.26 Convergence of other countries to become part of the global supply chain for services and manufacturing, creating an explosion of wealth in the middle class of India has created new challenges and opportunities for leadership, giving them a huge new stake in the success of globalization. And with this "flattening" of the globe, which requires us to run faster in order to stay in place, has the world gotten too small and too fast for human beings and their political systems to adjust in a stable manner? This is the question leaders are supposed to ask themselves and other stakeholders. It means to countries, companies, communities, and individuals that the burning issue of constant change and need to cope with the seamlessly and continuously integrating borders is no longer a threat but a reality.
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A hands-on, in your face approach of the West has to be merged with the reflective, conciliatory policy of the East. Globalization has thus become a catalyst to change in our leadership styles. As the germs of the problem have originated from the West, the curative vaccine too must come from there, though the patient, doctor and the hospital may be Indian. Geographical boundaries are loosing their economic significance rapidly and the world has come to be known as a global village. In the fiercely competitive scenario companies have to constantly better their best. In order to concentrate on their core competence, which also keeps on changing the companies, have to keep outguessing their customers and competitors. Being half the world away from the ‘haves’ India has encashed its competitive advantage of a highly intelligent, English speaking population, hungry to work hard and deliver goods at a fraction of its cost in the developed word. With the grafting of the worlds back office in India; the color of the problem has also changed. Now there is a two way process of in and outsourcing, brain drain and reverse brain drain. Previously the cream of Indian talent had to migrate to the West to learn and earn, draining India of its vital brainpower. However, with the integration of India with the West now there is no dearth of opportunity back home, in fact IIT/IIM have become world-class institutions reinforced with videoconference and online tuition with our own comparable case studies. The Indian Railways have become a topic of discussion in Harvard.

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Not only are the Indian students abstaining from going abroad to study, even those who do go return after gaining a couple of years of experience and apply the techniques learnt thereof. This provides a bridge for the crossing over of cultures. Western kids have Indian tutors; Western patients are being treated by Indian doctors. The color of one’s skin and accent of speech no longer matter. This is what globalization is all about. India has become an interesting destination for medical tourism, attracting the affluent Middle East and poor LDC’s to travel in the different classes of the same plane, being situated in the center of the flat field. In order to stay competitive India has also started collaborating with further low cost economies, its potential rivals. This requires a very strong global supply chain management with Just In Time tightly controlled deliveries coupled with zero tolerance for defects. As a result, leaders have to ensure a foolproof contingency plan and a robust disaster recovery system. It is said, “Uneasy lies the head which wears the crown”. The tiring act of sleeping with its enemy has taken its toll on Indian leadership which is at a cross road of confusion right now. Having reaped the benefit of being the global back office, India cannot let go of its initial advantage by its ostrich like approach by refusing to integrate with the world. Today, a company like Infosys or Ranbaxy can no longer be termed as ‘Indian’, as its business, employees, manufacturing and development centers are spread throughout the world. Shri Laxmi Mittal has become the largest steel maker of the world, and Tata Steel has bid for a company many times larger its size.

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All this has been possible only because India has broadened its vision and business mission. Competition is, however, not far behind. China and various other countries are already galloping to bridge the gap and India has to give its best to maintain its lead if not widen it. Hence fusion of its leadership style with the Western world is crucial in order to balance the often-conflicting interests of its different stakeholders. We are sure that the off spring arising from the cross fertilization of different DNA will take the best practices of both the worlds, blending their strengths to neutralize their weaknesess, a standard tactic in any martial art. With the global clock ticking 24x7, the sun never sets in the business empire. The division between the East and the West is thus no longer significant. Russia and China having joint the WTO has ensured the wiping off of the definition of closed economies in the world. With the spread of multinational corporations, having footprints across the globe and integrating people from diverse cultures, what seems to be the need of the hour is the emergence of a global leadership style blending the best practices of the East and the West. The aggression, risk taking ability and go-getting attitude of the West has to be accompanied by the sensitive, reflective, compassionate and caring oriental touch, without loosing contact with the ground reality and making terrain based adjustments all the time. A manager, who on one hand must act as an international leader, should also be able to understand the cultural intricacies of the environment. A global leader must therefore tear a page from the success formula of Mac Donald’s, which adapted its international menu to suit the local taste buds. A leading example of what a truly global leader should aspire to be can be seen in the form of Ms. Indra Nooyi, CEO, Pepsi Corp. who brings to the boardroom Eastern wisdom coupled with Western aggression.
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5. E X E C U T I V E S U M M A R Y
Leadership is an important aspect of Human Resource Management. A leader emerges in a crisis situation and channelises collective energies towards an acceptable solution to tide over the crisis. Though it is essentially based on personal attributes, to bring out the best, they must be honed and practiced. Leadership styles thus differ across the world, and are based on the social, cultural and political context. In this paper I have tried to cover diverse aspects of leadership ranging from its origin, to the need for integration of styles. The aspects covered are as under:  Definition Of Leadership  What Is Leadership?  Leadership: A Concept  Evolution Of A Leader The Process Of Great Leadership  The ‘Be, Know, Do’ Principle Of Leadership  Leadership: Comparison Between The Indian And Western Models Some Great Leaders  Thumb Rules Of A Successful Leader In the analysis section, I have tried to emphasize the various aspects in context to a comparative study between India and the West. Some aspects covered are:  Origin Of The Concept  Leadership Defined
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 Leadership Styles Authoritarian or Autocratic - Participative or Democratic - Delegative or Free Reign - Charismatic Leadership - Participative Leadership - Situational Leadership - Transactional Leadership - Transformational Leadership - The Quiet Leader - Servant Leadership  Selection Of A Style Factors Influencing The Selection Of A Style  Different Approaches - Positive Vs. Negative Approach - Consideration Vs. Structured Approaches - Paternalism  Comparison Between The Indian And Western Models - Basic Styles Of Leadership Adopted By The West And India - The Basic Differences Between The Western And Indian Perspective o Approach To Problem Solving Key Drivers To Action Response To Changing Environment o Quest For Excellence o The Division Between Professional And o Personal Life o Mobility Of Labor o Risk Taking Ability  Need For Synthesis In a bid to defend my hypothesis, my focus has been on the need for integration across cultures and an emergence of a ‘global leadership’ style that can be applied in all situations and destinations alike, although with a cultural twang.

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Globalization is a burning issue today and in the face of a seamlessly integrated world, one single leadership style is a must- a leader must think global and act local, thus the importance of my topic cannot be overemphasized.

6. C O N C L U S I O N
A study of leadership involves the synthesis of a number of areas as diverse as Management, Psychology, Political Science, Literature and so on. It is too wide in scope to be covered in one term paper – as it is a subject for doctoral studies. Thus there are a number of aspects remaining to be covered, such as theories of leadership, case studies, models of leadership and the likes. The primary reason for not touching upon these aspects were the time, cost and resource constraints in addition to the reason already stated. I have however tried my best to sketch the personality profile of a global leader by bringing out the differences between the West and India with respect to the various aspects and emphasizing the need for fusion os the two cultures in order to have a synergistic effect.

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BIBLIOGRAPHY
1. http://www.nwlink.com/~donclark/leader/leaddef.html 2. http://www.pinetreeweb.com/whatis.htm

3. Refer to annexure: Figure 1 4. ibid 1 5. ibid 1 6. ibid 1 7. ibid 1 8. ibid 1
9. http://www.eaisai.com/baba/docs/slguru.html

10. Chakraborty Debangshu, Chakraborty S.K. (2004), “Leadership And Motivation Cultural Comparisons”, Rupa & Co.. p 16,17. 11. ibid 10

12. http://en.wikipedia.org/wiki/Leadership

13. 14. 15.

ibid 12 ibid 12 Refer to annexure: Figure 2
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16. 17.

ibid 1 Refer to annexure: Table 1

18. http://changingminds.org/disciplines/leadership/styles/charismat

ic_leadership.htm 19. 20. 21. 22. 23. 24. 25. ibid 1 ibid 1 ibid 1 ibid 1 Refer to annexure: Figure 3 ibid 1 Refer to annexure: Article

26. Friedman Thomas L.(2995,2006), “The World Is Flat – The Globalized World In The Twenty – First Century”, p 10.

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ANNEXURE
Figure 1: The Concept Of Leadership

Figure 2: Primary Leadership Styles

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Table 1: Participative Leadership Leader Team proposes proposes Joint decision, decision, decision listens to leader has with team feedback, final as equals then decision decides

Autocratic decision by leader

Full delegation of decision to team

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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Figure 3: Leadership Styles: A Broader Perspective

Asian And American Leadership Styles: How Are They Unique? Business leadership is at the core of Asian economic development, says HBS Professor D. Quinn Mills. As he explained recently in Kuala Lumpur, the American and Asian leadership styles, while very different, also share important similarities. Political connections and family control are more common in Asian businesses than in the United States. In addition, says HBS professor d. Quinn mills, American CEOs tend to use one of five leadership styles: directive, participative, empowering, charismatic, or celebrity. Which styles have Asian business leaders adopted already, and which styles are likely to be most successful in the future? In a talk in Kuala Lumpur on June 15 at the invitation of the Star/Bizweek Publication and the Harvard Club of Malaysia, Mills explained the differences and similarities between American and Asian leadership. Below is the transcript of his talk, "leadership Styles In The United States: How Different Are They From Asia?" The rapid economic development of Asia in recent decades is one of the most important events in history. This development continues today and there is every reason to anticipate that it will continue indefinitely unless derailed by possible but unlikely international conflicts. At the core of Asian economic development is its business leadership—managers and entrepreneurs who sustain and create
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Asian companies. Do they exhibit the same leadership styles as top executives in the west? There are important differences. Are differences attributable to different cultures or to different stages of corporate development? But first, what are we talking about? Roles in organizations involve more than just leadership. It is useful, but not yet common in our literature and discussion of business, to distinguish among leadership, management, and administration. They are in fact very different; each is valuable and has its place. Briefly, leadership is about a vision of the future and the ability to energize others to pursue it. Management is about getting results and doing so efficiently so that a financial profit or surplus is created. Administration is about rules and procedures and whether or not they are being followed. These distinctions are very important to clear communications among us about how organizations are run—when they are not made, we become very confused, as is much of the discussion around our topic. Briefly, running an organization effectively involves:

Leadership: vision energizing Management: efficiency results Administration: rules procedures

Our focus today is on leadership: how an executive sets direction and energizes his organization to pursue the direction. This is appropriate because managerial techniques are being spread fast by imitation, adoption, and MBA education. Administrative techniques were
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

generalized around the world decades ago. So what is much different now is leadership. Family and political connections Cultural differences are important, but primarily as a matter of emphasis. For example, family leadership of business enterprises, including large companies, occurs in very similar ways in both regions, but is more common in Asia. Li Ka-Shing of the Hong Kong-based Hutchison Whampoa and Cheung Kong Holding Group, for example, runs his companies closely and is planning to pass the leadership of his firms to his two sons. Similarly, the heads of some of America’s largest firms, both publicly held and private, are the scions of the families that founded the firms. There is less freedom of action for executives and boards in America than in Asia. But more common in America are firms that are run by professional managers who are replaced by other professional managers, either as a consequence of retirement or of replacement by the board of directors of the firm. The better companies have sophisticated programs for developing executives within the firm, and ordinarily choose a next chief executive officer from among them. American CEOs average about thirty years with their firms and own less than four percent of its shares. There is a small number of firms, which get a great deal of publicity and so seem more numerous than they are, that hire CEOs directly from the outside, with no previous experience with the firm. These CEOs are driven by a need to excel in a competitive environment (they want to win), and they insist that money is less important to them than professional achievement; but it's hard to credit that given the enormous inflation of top executive compensation packages in America in the last decade. Many American firms, especially most of the large ones, are more dependent on capital markets for their capital (equity and debt) and so pay much more attention to Wall Street than is yet common in
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Asia. Wall Street has strong expectations about the behavior and performance of executives and about succession. There is less freedom of action for executives and boards in America than in Asia. In Asia, succession usually is passed on to the siblings. In Li's case, he is handing it to his two sons, while Jack Welch developed a talent machine to groom CEOs for General Electric. To a significant degree, large American firms are at a later stage of development than many Asian firms—they have passed from founders' family leadership to professional management and to capital obtained from the capital markets (rather than obtained from government—directly or indirectly—or from family fortunes). In this transition they have adopted particular styles of leadership responsive to boards (often led by outside directors) and to Wall Street. It is possible, but not certain, that Asian firms will follow this evolutionary path. The political connections so important for top business leaders in Asia, whether in democracies or one-party states, are not unknown but are much less important in America. It is a characteristic of Asian top executives that they have such connections that are important to their businesses. In America, the chief executive officers of very large firms often have virtually no direct connections to top politicians—the government is treated at arm's length and business is done by business people. There are, of course, exceptions, and deep political involvement is still a route to business success in America, but it is much less common than in Asia. Leadership styles in America Leadership styles are more varied in America today than in Asia. In America there are five: • Directive • Participative • Empowering • Charismatic
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

Celebrity (Superstar)

The first four reflect how an executive deals with subordinates in the company; the final one is directed at people outside the firm. Directive leadership is well known in America, but is declining in frequency. It stresses the direction given by executives to others in the firms. The leader is very much in charge. This style is very common in Asia. Participative leadership, which involves close teamwork with others, is more common in Europe, where it is sometimes required by law (as in Northern Europe, especially Germany) than in America. It is also common in a variant colored by national cultural norms, as in Japan. Empowering leadership is relatively new, and stresses delegation of responsibility to subordinates. American companies that operate with largely autonomous divisions employ this style of leadership. A few younger Asian business leaders now espouse this style, for example, the CEO of Banyan Tree Resorts. At the core of empowering leadership is the ability to energize the people in a company. Jack Welch commented, "you may be a great manager, but unless you can energize other people, you are of no value to general electric as a leader." energizing others is the core of the new leadership in America.

Charismatic leadership is the leader who looks like a leader. People follow such a leader because of who he is, not because of good management or even business success; nor because the people are offered participation, partnership, or empowerment. Human magnetism is the thing, and it is very different in different national cultures. What looks like a charismatic leader to Americans may appear to be something very different to people from other societies. Celebrity leadership is very different. It looks outside the company to the impact on others—customers and investors. The CEO becomes a star and is sought after by the media like a screen star. Ordinarily it
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

requires good looks, a dramatic style, and an ability to deal effectively with the media. It is in a bit of a slump in the United States right now due to the corporate financial reporting scandals, which have focused attention on CEOs with the ability to get things done right in the company; but celebrity leadership will make a recovery. Boards looking for top executives to revitalize a firm look for superstars; they seek outgoing personalities. Corporate governance in the west means oversight from regulators, boards of directors, even institutional shareholders. While Asia now has most of these institutions, they are ordinarily not as well established and not as significant in the minds of top executives. Asia is bedeviled by official corruption that reaches far into business. America has less of this, but has in its place considerable financial reporting fraud. Both are very dangerous to the economic success of the nations involved. Graft tends to destroy an economy first by undermining the trust that is required for transactions to occur, and by distorting the economic calculus that underlies sensible business decisions. As it continues, graft destroys the national political entity. Long-established graft is a way of life that is very hard to root out. Politicians promise to eliminate it, but are unable or unwilling to do so. The role models available for business leadership in the different regions of the world are significant. In America, with its longstanding experience with professional business leadership, the most readily available role model for the head of a company is the corporate CEO. In India and many other Asian businesses it is the head of the family. In France it remains the military general. In Japan it is the consensus builder. In Germany today it is the coalition builder. There are nine key qualities that research shows people seek in a successful leader:
• • • • • •

Passion Decisiveness Conviction Integrity Adaptability Emotional toughness
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

• • •

Emotional resonance Self-knowledge Humility

The emotionalism that goes with passion is more common in America than elsewhere. Europeans see it as a sort of business evangelicalism and are very suspicious of it. Decisiveness is common to effective executives in all countries: in this regard European and Japanese chief executives are the most consensus-oriented, and Chinese and American top executives are more likely to make decisions personally and with their own accountability. Conviction is common to all.Integrity is a complex characteristic very much determined by national cultures. What is honest in one society is not in another, and vice versa. Adaptability is a pronounced characteristic of American leadership generally. It is less common and less valued in Asia and Europe. It will be needed everywhere soon enough. Emotional toughness is common to all top executives; Americans spend more time trying not to show it. Deep political involvement is still a route to business success in America, but it is much less common than in Asia. Emotional resonance, the ability to grasp what motivates others and appeal effectively to it, is most important in the United States and Europe at this point in time. It will become more important in Asia as living standards improve, knowledge workers become more important, professional management gets greater demand, and CEOs have to compete for managerial talent. Self-knowledge is important in avoiding the sort of over-reach so common in America; it is less common a virtue in America than in Asia, and is a strength of the Asian executive. Humility is a very uncommon trait in the American CEO. It is sometimes found in Asia. It is often a trait of the most effective
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

leaders, as it was in the best respected of all American political leaders, Abraham Lincoln. Once, when the civil war was not going well for the union side, a high-ranking general suggested that the nation needed to get rid of Lincoln and have a dictatorship instead. The comment came to Lincoln’s ears. Lincoln promoted the general to the top command in the army anyway and told him, "i am appointing you to command despite, not because, of what you said. Bring us victories, and i'll risk the dictatorship." What's next for Asia The "New Asian Leader"? There are three prototypes: 1) Li Ka-Shing of Hutchison Whampoa-Cheung Kong: Old Chinese leadership in transition like Li Ka-Shing. Rags-to-riches in one generation; handing over his business empire to his two sons who are western-trained. There are many such examples in Asia. Li kaShing is in different areas of business—telecommunications, security, and high-end IT—and is very interested in becoming a contractor in the emerging homeland security construct in America. With Li KaShing, the threat to success is his reliance on an international concern to be a significant contractor in the establishment of the U.S. homeland security hierarchy. Li's personal story is an amazing tale of success. After the death of his father, Li—at age twelve—went to work in a plastics factory. Within a decade he started his own plastics company, which he later leveraged into a real estate and investment concern. It then was an early entrant into China's telecom and it wave of the early 1990s, and became a market leader. Li is a man who seeks to establish a positive legacy. He created a foundation in 1980 to help young Chinese students have the educational and other opportunities he had to make for himself at age twelve. He also started his own university, Shantou University, in 1981, with a similar purpose. 2) William and Victor Fung of Li and Fung: Old traditional Chinese family-owned companies now run by the third generation of the family, western- and highly-educated, who use western technology extensively to face globalization and succeed. Very much westerncentric in approach yet Asian in practice, the Fungs of Li and Fung
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

have mastered techniques of getting maximum efficiency out of the supply chain, taking raw materials and making low-cost, high-demand consumer goods, particularly clothing, much more cheaply than in the United States. What the Fungs have accomplished is similar to what Japanese automakers accomplished a generation ago. By strictly adhering to principles of quality control—principles that were espoused by American business consultant Edward Deming—Nissan and Toyota made cheaper, better cars than the Americans did, eventually causing the big three U.S. automakers to follow suit. William and Victor Fung are interested in being business consultants, teaching others how to do what they've done. Both men are harvard-educated and have a desire to be open and forthcoming about their business model. As Asian companies seek access to world capital markets, they will move toward professional managers who will employ leadership styles more akin to those now used in the United States. The main threats with Li and Fung are driving down labor costs, and concerns about relying on suppliers who potentially abuse the human rights of workers or pay less than a standard living wage. Victor and William Fung are the new type of Asian leaders—will they soon be the only type?

3) New economy business leaders. Information technology and the Internet are bringing out a high-tech type of leadership that is common in America’s high-tech sector. Entrepreneurial, innovative, hard-driving, very flexible, ambitious, optimistic, visionary in the technology and business aspects, they will play a good, but not dominant role. N. R. Narayana Murthy of India’s Infosys and Stan Shih of Acer are good examples. They have adopted an almost entirely western style of leadership and are succeeding in Asia. What is the conclusion? Styles of leadership are currently different between Asia and America. Culture colors the way things are done,
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ST. XAVIER’S COLLEGE, KOLKATA DEPARTMENT OF BUSINESS ADMINISTRATION LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS

but less so what is done. The differences in styles most markedly reflect the stage of development of the economies and companies of Asia. As Asian companies seek access to world capital markets, they will move toward professional managers who will employ leadership styles more akin to those now used in the United States. As Asian companies rely more on professional employees of all sorts, and as professional services become more important in Asian economies, the less autocratic and more participative and even empowered style of leadership will emerge. Asian leadership will come to more resemble that of the west. But significant cultural differences will remain—economic and geopolitical rivalries within Asia and between Asian countries and the west will continue and perhaps grow. Economies will retain characteristic national features. Convergence in a leadership style does not guarantee likeness of results nor even peace. We will continue to have to work for economic progress and peace; it will not come automatically.

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