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LEADERSHIP, LEADERSHIP ROLE MODELS

CONCEPT QUESTIONS:
Give examples of µborn¶ leaders and µmade¶ leaders. Born leader are the ones who have inborn qualities of an leader. Where else in case of made leader it is often an mentor who shapes a leader. Examples of such leader are given below: Born leader: Dhirubhai Ambani, JRD Tata, Bal Thackeray Made leader: K.M.Birla, Anil Ambani, Ratan Tata, I.K.Gujral, The difference is only of degree and no one can be identified as being completely born leader or made leader.

Management Styles A management style is a distinctive way in which Planning, Organising, Actuating, Controlling and other management functions are performed. Given the many choices in the performance of each management function, an almost limitless number of management styles can be visualized. In reality, however one encounters far fewer styles. This is because styles tend to be internally coherent. If a management chooses to coordinate activities participatively, it is also likely to set goals, develop strategies, control operations, etc. participatively rather than in an authoritarian manner. Styles tend to crystallize around major management convictions and commitments. That is, their cores tend to be ideological in character, and commitment to a core management ideology- of risk-taking in business or conservatism, professionalism in hiring staff or intuitive choices, and so on- is likely to shape the rest of the style. These commitments are not randomly generated. Nor are they exclusively the commitments of the person who happens to be the CEO, although undoubtedly the CEO usually does play a significant role in the evolution of a style of management. The style evolved has to be viable, that is it has to be able to measure up to real-life situations. A good deal of learning from experience plays a major part in the styles emergence. Social processes within the ranks of management, such as information and experience sharing,

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advocacy of points of view, political deals and so forth, also play a part. The purpose for which the organisation is set up and the social, legal and economic environment, in which it operates, too contribute to the viability of the style of management.

Good and Bad styles of Management Human beings are an interesting species; they often talk about lofty ideals and perfection but practice quite the opposite. Determined by the super-ego and identity, human behavior may be repulsive or sublime. Hence the style of management adopted is an expression of the thoughts in the mind of the decision makers and leaders.

Depending upon these thoughts the style could be good or bad. i.e. socially desirable or undesirable. In society, µgood styles¶ are referred as professional and participative. If there is variety in excellence, there is variety in incompetence. The corporate sickness and dysfunctional forms of bureaucracy and professional management have uncovered a large number of bad forms of management. Describe the role of µKarta¶ in a Hindu Undivided Family: Karta is the head of a µHindu Undivided Family¶ more commonly known as an HUF. The Karta of an HUF is the supreme authority in business matters. He is the leader of this organization. The other members of the family i.e. the co-parceners are not allowed to have their say in the matters relating to the organization. It is usually the Head of the family who is named the Karta.

DESCRIPTIVE QUESTIONS Q 1)Critically analyze the leadership style and its central characteristic of the Indian leading industrialist: Rahul Bajaj , Dhirubhai Ambani, Mr. N.R Narayan

Murthy and J.R.D.Tata Rahul Bajaj
Rahul Bajaj is the man who can be given credit for building Bajaj auto are the 4th largest two-wheeler manufacturer in the world. He has achieved an incredible growth rate of

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1852% in the last decade. Following are some of the points that explain the reason of his success.
y

Education: Bajaj is a highly educated person. He has done his BA (Hons) and is a management graduate from Harward. Concentration of Core Competency: Rahul Bajaj collaborated with Kawasaki for production of motorcycle but for scooter he did not go for any collaboration. Manufacturing scooters is his core competency and he does not want to experiment with that.

y

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Customer is King: Bajaj has often been accused of exploiting the customers with delivery period of 10 years, black marketing, etc. but this is not true at the face value. A deeper insight brings to picture that there were other elements who are responsible for these accuses. Bajaj, in spite of a heavy demand, did not raise the price of his scooters and avoided exploitation of customers.

y

Staunch believer in himself: Bajaj listens to each and everyone, but takes decision on his own. His organisation is a little centralized. In spite of strong oppositions, he sticks to his decisions.

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Never give up attitude: µLicence Raj¶ was a nightmare for Bajaj. He does not believe in bringing Government officials and getting his license cleared. This is a major reason why Bajaj Auto came under MRTP and was allowed to expand its production capacity. But he did not give up to the Government conditions and after some years, done lobbying through business housed and putting tremendous pressure on Government learn his license.

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Jach Welch¶s theory: Rahul Bajaj holds same views of Mr. Jack Welch, the former CEO of GE. He believes that if one is no No 1 or No 2, he should get out from that business. This principle kept him away from the four-wheeler market.

y

Attitude towards workers: Bajaj has less kind of words for workers. Still, there has been only one strike in the history of 35 years of the company. He takes care of the needs of the workers and at the same time, he views workers as a tool for production. In his word¶ ³Why do they strike and lose wages? They should work more, earn more´

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BBC: Rahul Bajaj is well known for his unflinching frankness and varied opinion on every topic under the sun. His office is therefore popularly known as BBC (Bajaj Broadcasting Corporation)

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Straightforwardness: His quotes about the Governnment have found place in the headlines of many leading newspapers and magazines in India and have also raised controversies. But this does not stop him from doing what he considers correct.

All the above features are the hallmark of Bajaj. They has earned him a rare reputation as one of India¶s most successful industrialists. Squeaky clean, he has never been involved in shady takeovers. He does not engage in street fights, nor has he ever hijacked someone else¶s project. He hasn¶t burnt tyres during hard drive for meteoric growth. On the contrary, he is something of a plodder, routinely burning the midnight oil, and devoted to the virtues of hard work. He¶s India¶s most admired industrialist along with Dhirubhai Ambani and the late Adity Birla.

Dhirubhai Ambani
When we talk about Indian leaders one name, which we cannot miss out, is Dhirubhai Ambani. He has voyaged through a journey of rags to riches. He was born on 28th December 1932 to a local schoolteacher in a village called Chorwad, in Junagadh district, Gujarat.

Dhirubhai has been an opportunist right from his childhood. All he needed was the whiff of a business opportunity and he was off to tap it. During the Mahashivratri fair, he would sell µganthia¶ a gujaratri savoury to earn money. Due to shortage of money, he left education after matriculation and went to Aden to earn money. He worked for almost eight years in a petrol station where he learned about oil business until a day came when he was bitten by the entrepreneurial bug. He came back to Bombay to start his own business. He took a loan with which he started Reliance Commercial Corporation, which has been a stepping-stone to one of India¶s largest Corporation. They were involved in general merchandising.

He always produced in large quantities. This shows how down to earth he is. identify markets and establish viable distribution structure. He isn¶t proud of what he is and he still believes in µSimple thinking.com Page 5 of 42 Dhirubhai has always shown all the critical leadership qualities. He would always grab an opportunity and strike on it. Whenever he wanted to approach the government to get licenses. He would just grab an opportunity that would come up because of some government policy changes and would implement it successfully. which holds true for one of his famous brand Vimal. which he could implement better than his competitors. He believed not in meeting demand but in creating demand. He was a manufacturing as well a marketing whiz. He also known as the µstock market messiah. Modern thinking. He has always believed that his first responsibility is towards his company¶s shareholders and he was also concerned in protecting their interests. information about the competitors. He knew how to offer the right product mix.¶ He always followed the rule to be the pioneer/first to do anything.¶ He didn¶t mind copying someone else¶s idea. He then started his yarn business in the 60¶s and then he build his own spinning mill in 1966 known as Reliance Textile industries. He is also referred to as µ Manchester of India. He was of the opinion that customer should be provided with best quality goods at the lowest price. He also believes in destiny and gives all the credit to his luck. Even today he has a simple ritual of Puja when a new machine is installed. market size etc. Moreover Dhirubhai as opposed to most other leaders wasn¶t expert in only one field. As in the case of copying the concept of selling through showrooms for his brand Vimal to counter the resistance from the traditional markets which he copied from Bombay Dyeing. he would collect all these information. He believed that if a person wants to succeed in something then he should have complete access to information on that topic. He always had the dynamism and confidence in future and was always ready to go against all odds.¶ This is because when some Marwari clan were trying to bring down the .Uploaded Exclusively for ManagementParadise. He always believed in himself. no matter at what cost it came.

Apart from that he has paid zero tax on corporate earnings for several years due to the loopholes in the system. But be it whatever Dhirubhai is one of the greatest leaders of India who has the zeal to achieve something big rather than just earning money and the obsession to build. Apart from that he was heavily criticized along with Pranab Mukherjee for buying shares under dummy companies which never existed. Another incident that shows his vision as a leader is that when Reliance¶s Patalganga Complex was damaged due to floods. He always believed in µThink big. He was never ashamed to µsalaam¶ anyone. He has always been an innovator in the financial market. He only believes in providing leadership. Dhirubhai is criticized for manipulating the government for his benefits. Dhirubhai has always believed in picking up the best talent. He has always had a wide investor base and most of his subscriptions were over subscribed. ³ People think I have finally arrived but I think I have just begun. They have a motivated workforce.¶ He has never had an ego problem and he knew how to get his work done from people. think fast and think ahead. fully convertible bonds etc. He has been successful in manufacturing world-class products. Technical experts from Du Pont estimated hundred days to make the complex operational but Reliance had the complete complex operational in twenty-one days. his confidence. As a true leader Dhirubhai had once said that. He innovated and reintroduced successfully concepts like partial convertible bonds. vision and strategy. He thinks that he doesn¶t run his business but his business leaders do it.´ .Uploaded Exclusively for ManagementParadise.com Page 6 of 42 price of his shares by short selling. he counter attacked them and in turn earned a hefty sum from them. his dedication proper logistical planning and making available all resources. He was also involved in manipulating the L&T board to gain control. He wants to work till his death. This was possible because of Dhirubhai¶s vision.

Uploaded Exclusively for ManagementParadise. Now it is very common in the industry to have ESOP¶s but it . discipline and good values. He lives in a simple 2-bed room flat in Santacruz-Mumbai. He also believes that it is better to have a small part of a large. This helps him build a healthy long-term relationship with his colleagues. y Simple living-high thinking: A man who believes in µSimple living high thinking¶. At present he is the Chairman of Infosys. 2.com Page 7 of 42 Mr. Since childhood he had a very good academic record. you undertake to do something you are confident of and have the capability to do it. than a large part of small shrinking one. 000. N. It was he who started ESOP¶s that is real distribution of wealth. friends. his lifestyle remains modest. family. 60. y Pioneer in HRM: Mr.10. Even though he has a personal wealth of Rs.Mr. Murthy says that his is an HR-based industry. business associates and network of shareholders. growing pie. Narayan Murthy was born in a middle class family in Siddalghat in Karnataka.000 crores Infosys started with Rs. Example He says he wants to be a doer and respects people who do things. rather than just talk. y Under-promising & Over-delivering: He has tremendous respect for people and sound philosophy of ³under-promising & over delivering´.R Narayan Murthy Mr. Narayan Murthy is influenced by Mahatma Gandhi who µwalked his talk¶ and demonstrated by.500 crores. Present market capitalization of Rs. This helps to lay the foundation to build a healthy relationship. Some of the traits that differentiates him from others are: y His Underlying principle: Is that. Software is a knowledge business hence the focus is shifted to Brainware. His father inculcated importance of determination. employees.

being unique in the market place and making sure that you are the 1st mover. The downfall of dotcoms has not affected his business much. literacy programme. repeat business comes from relationships. Tap the need of the customer and give them more than they expect.com Page 8 of 42 has done wonders in Infosys. Mr. y Social being: He believes in putting the public good ahead of private good in every decision he makes. Thus Narayan Murthy is honestly awe-inspiring role model for the professionals. y Visionary: Though Infosys had so many professionals it did not venture into dotcom because of the vision of Mr. and relationships with customers are built on trust and trust is built by delivering quality products. for the professionals. Narayan Murthy. y Strategy: ( Customer is the King): Even though there is a lot of competition in the market he believes in one thing that is. Before starting Infosys this visionary got together with 6 professionals and wanted to start have India¶s first software company of the professionals. donations etc are few ways in which he works for the society. y Performance Oriented: He is a man who always measures performance against value. Thus Narayan Murthy is honestly awe-inspiring role model for professionals. This saved them from going down. Rehabilitation drive.Uploaded Exclusively for ManagementParadise. being fair to people and transparency in working. by the professionals. and because of his farsightedness Infosys has come this far and proved to be a winner. Infosys practices its Social responsibility very well. . This differentiates the developed world from the developing world. According to Murthy peoples performance in the knowledge industry is as valuable as gold. Believes in giving value to the customer. Murthy says that ³Growth comes from repeat business. Thus by introducing ESOP¶s he motivated his employees to work smart and hard.

D. Even when he was angry at Nehru for going against industrialists. displayed through the course of his eventful life: Virtues: J.Uploaded Exclusively for ManagementParadise. it was still India¶s biggest business house. 1993. He had one of the most comfortable personalities that was probably his benchmark of becoming a successful individual. global leaders had ever heard of. Only J. It had 14 companies with sales of Rs. y Realistic: . never plunged into unviable projects. But Diplomacy was never a problem for J.D. British firms dominated the environment.com Page 9 of 42 JRD TATA When talking about India¶s greatest leaders.R. which J. had no problems making friends easily. he shot down the project himself when it became clear that there was no money to be made. 280 crores. was««« y Approachable: .D. . remarkable achievement. y Diplomatic: . but the House of Tata towered above all others. R.J.R.D.R.R. When J. He was a distinguished and respected industrialist who was also awarded the ³BHARAT RATNA´. But for years the world passed India by. What sort of value system made the great man achieve his greatness? Following is an analysis of some of the virtues & vices. became chairman of Tatas in 1938. D. gurus on Indian case studies.D.D.One of the most difficult talents is to say µno¶ in a nice manner. It¶s different today²the Sunday Times. howsoever exciting they might be.D.R. was Tata. Sales had mushroomed to Rs. 15000 crores and there were over 50 large manufacturing companies besides innumerable holdings and concerns. The year he died. Tata made an impact. TATA.R.R. Forbes and even the hallowed Harvard Business Review now carries articles written by Indian mgt. one name just cannot be skipped²J. he was never rude but made his point diplomatically and walked away friends. He briefly flirted with the idea of making bombers with ³Tata Aircraft´² but despite his love for flying.J. For decades the sole Indian businessman.

J. He believed. He never believed in exploiting the workers. He was already outstanding. y A visionary: . was considered to be an exception to this rule. the management of Tisco changed its policy of confrontation.D.R.R. refused to sign the manifesto against socialism. J.R. It was believed that wealth and respect are disjoint.People talk of Russi Mody but he manipulated people.J.Uploaded Exclusively for ManagementParadise. was elected chairman of the group. by then was a hero.D.Apart from his supportive attitude towards Tisco¶s lab technicians.R.J. The daring pilot.D. was the only director on the board of the Tata group who supported Ratan Tata¶s plan to enter high investment ± high risk industries like oil manufacturing & computers. J. where he was tempted to joined politics. I might one day have an opportunity to serve in more useful ways than by going to jail today!´ y Committed to values: . Something that the board of Tata sons did not agree with. .R. which differed so widely from those of the old guard.D. But J. that being that stalwart business house of India.There were opportunities for J. y Courageous: .J. ³I had no doubt that freedom was on its way.When J.com 42 Page 10 of y Charismatic: . such investments were a responsibility.R. It must have required considerable courage for a 30something to stand up for views. His approach to labor was that of Fabian socialism.R. perhaps Tata chemicals provides the best demonstration of J.D.D. After J. But he rationalized to himself by concluding that he could do more for the country in business and industry than in politics. There was no one else who could have been chosen by the board.R. y Compassionate: .R. The trade union became not only acceptable but also an association which was vital to the interests of the workers. never believed in paying under the table for getting a license approved.D. He says. had always supported Nehru¶s views on socialism. But who knows. y Supportive towards innovation: .D. y Aware of a sense of responsibility: . there was no question about the selection.¶s willingness to support innovation in his business and among his managers.D.¶s entry.D. society and earning more profits. genuinely felt for workers.R.D.R. the shrewd businessman.

planning etc.D. we learn a lot about what it takes to be successful in business.D. Q 2) Critically analyze the differences in the leadership styles of a family managed Indian business organizations and MNC¶s in India? Ans.D.R. y Aloof: .D. y Conservative: . had kept aloof from the congress leadership.Uploaded Exclusively for ManagementParadise.Unlike G.life. forgot the Public Relations implications of these prestigious invitations and the signals his refusal emitted. made leader Many a times deviates from policy formation. career.R..R. always preferred the more conservative approach.R. and role is reduced to conflict manager engaged in Multi national corporations in India More of born leader Involved more in business issues and concentrates in formulating long term business plans. was«««. J.D.com 42 Page 11 of Vices: J.J. and in ««««. J.. J. But the difference stems up because of the fact that family business is a fusion of business system and the family system this fusion is absent in other forms of organizations. For a group that depends as much as the Tatas did on government patronage. which is given in detail below: Variables under consideration Born vs made leader Role of a leader Family managed Indian business organization More often then not. He rejected Nehru¶s invitations to the UN session in Paris. This difference manifests itself in the style of leadership of an organization. After going through the above virtues and vices of India¶s greatest industrialist. y Bad tempered: . Birla.D.R. and the invitation to lead Indian Rare Earths. withdrew into himself. one of the first PSU¶s.Instead of trying to patch up the differences. Keeps away . His conservativeness left Tisco unprepared for the outbreak of the second world war and the license-permit raj of free India.Family business is same like any other organization because essentially it is a venture for profit like any other MNC¶s. this was a major lacuna.

. Extreme of empowerment is possible i. Decentralized decision making. conservative financial strategies are used for business growth. with hedging arrangements. As empowerment was limited. Recruitment is based on pure merits. Low wages. No one style can be said to be the best. local currency funds are preferred financers (mostly family friends or relatives) Family-relationships were more important than µhigh value ± high return partnerships with outsiders¶. Trusted persons are generally preferred to others who may be better qualified. high job security to the employees. Long term strategic plans are well-designed with greater clarity. Growth is welcome. Hence. There is more delegation of authority Decision making process Control is tight and is achieved by posting relatives of owners or members of their community in decisionmaking process Leader member More of emotions based.e. employees were (at the most) responsible for volumes & costs. Does not believe in µparticipative funding¶. we need phase of multinational leadership style and grace of Indian family business style. Capital has no colour or quality.Uploaded Exclusively for ManagementParadise.com 42 Page 12 of Funding strategy Partnerships & strategic alliances Recruitment & remuneration policy Profitability & empowerment Strategic financial planning solving clashes and reduces the role of leader to merely a mediator Conservative equity funding. It has only cost & applicability. Inward-looking. Do not bother for close linkages. µlive and let live¶ policy with global capital is welcome. an employee may be treated as a µprofit centre¶. Sharing of business results was missing. from whatever sources available Higher wages with profitsharing but without job security. relationship Leader holds sympathy for others because they are his own family members. One cannot deny that. from day to day operations. has its own advantages and disadvantages. Each style Relationship is very professional and has empathy towards other. µResponsibility Accounting¶ is predominantly used. Domestic.

Participative. The leader involves employees in decision making. specifically the characteristic of the task affects the impact of the leader¶s behaviour on follower satisfaction and effort. Achievementoriented. the leader chooses among four styles: 1. This is because when the employees are aware of what the task they are supposed to finish there is no need for the employer to direct them. the supportive. gives them guidance about what they should do. 2. A bank teller¶s job has relatively high task structure. and shows them how to do it. and sometimes lets the employees make the decisions. Situational characteristics Task Directive Supportive Achievement oriented Structured Unstructured Clear goals Ambiguous goals When the task is structured. The leader shows concern for the well-being and needs of her employees by being friendly and approachable.analyse what impact will it have on leadership Ans: Task structure refers to the degree to which the task is clearly defined. considers those suggestions in making a decision. No Yes No Yes Yes No Yes No Yes Yes No Yes Yes No Yes No Participative Leadership styles .com 42 Page 13 of Q 3) Depending upon the structure of task-high or low . The leader tells employees what he expects of them. the branch manager¶s job has less. The nature of the situation. Supportive.Uploaded Exclusively for ManagementParadise. consults with them about their views of the situation. The leader helps employees set goals. 3. But the directive style of leadership is not preferable when the task is structured. achievement oriented and participative leadership styles are preferred. and encourages employees to assume responsibility for achieving the goals. Basically. asks for their suggestions. 4. rewards the accomplishment of these goals. Directive.

entrepreneurial. This is because the employees are not fully aware of the task to be performed and therefore a leader who tells or helps employees to set goals would be more effective rather than a leader shows concern or involves employees. When the goals set are clear the leadership style that is preferred is supportive and participation.Uploaded Exclusively for ManagementParadise. professional. instruct the employees. reward them when the goals are ambiguous. This is because when the goals are already set. Similarly.The pure styles were developed on the basis of research done on management styles both in India and abroad. This is because one would require a directive and achievement oriented leader to set goals. The only difference between a structured task and clear goals is that an achievement oriented leadership style is not preferred. the leadership style to be adopted is similar to that of the unstructured task. you don¶t require a leader who sets them and rewards them. Consider the president of a new start-up company in which the ten employees are hand picked. as well as extensive management consultancy and training experience. Along with the ten pure styles of management. the directive and achievement oriented styles are preferred rather than the supportive and participative style. guide them. Q 4) Explain the conservative.com 42 Page 14 of When the task is unstructured. bureaucratic and organic styles of management. The last case where the task has ambiguous goals. . the defective forms were conceptualized on the basis of research and consultancy and training experience. a defective version of each pure style was also developed. the tasks are highly ambiguous. but the president¶s authority is clear. Conclusion: there is no golden rule as to which leadership style to be adopted depending upon the task structure but the analysis given above would have a higher probability of success ratio so as to effectively lead. A directive or achievement oriented style would work well.

government managers. the participative and the opposing authoritarian style. and the altruistic style. . caution in changing. Decisions are generally compromises between the conflicting demands of board. The primary concern is with stability and steady growth¶. it also builds civilizations.com 42 Page 15 of The ten pure management styles are the conservative style and the sharply contrasting entrepreneurial style. Entrepreneurship not only creates new industries. The pure conservative style was defined as follows: µA cautious one-step-at-a-time approach to problems. probing and innovation. customers. a forceful leader at the top wielding great power. the familial style or paternalistic style. Conservatism does not necessarily mean refusal to change. and rapid growth as the major organization goal¶. b) The entrepreneurial style: While conservatism facilitates survival. The entrepreneurial style has emerged from this spirit of adventure. the professional style and contrary to it the intuitive style. the organic or free form and the opposing bureaucratic style. It means instead. enterprise facilitates conquest and the unfolding of opportunities for growth. bold decisions despite the uncertainty of their outcome. Precedents and traditions are given importance. Some of the important ones are enumerated below: a) The conservative style: The essence of conservatism is conservation of what has worked in the past and has demonstrated survival value. etc. opens up new markets and transforms old or mature industries. The pure entrepreneurial style was defined as follows: µactive search for big new opportunities.Uploaded Exclusively for ManagementParadise. large. The principle of survival is at the core of the conservative style of management. unions.

e) The Organic Style: Following are some of the characteristics of organic management:y Tasks are seen in their total contexts . The pure professional style was defined as follows: µsystematic search for growth opportunities and systematic anticipation of problems through formal forecasts. rules. And it was fair because everyone knew what he or she was to be evaluated on. and the powers. duties and responsibilities of managers and other staff. It was more efficient because by programming everyone¶s behavior rationally the organization could operate like a welloiled machine. a systematic consideration of costs and benefits of alternatives and a carefully coordinated formalized top management strategy¶. formal communications. reasonable consensus about do¶s and don¶ts and formal training are traits of a professional approach to management. strict control and above all. The emphasis is on long-term planning. d) The Bureaucratic Style: The core of bureaucratic style is quite primeval: management by programming the behavior of the members of collectivity. a sophisticated control and information system and the extensive use of expertise and all-pervasive research before making decisions.com 42 Page 16 of c) The Professional style: A scientific approach. professional management. correctness of procedures and accountability¶. According to Max Weber. high level of formal expertise. precise job descriptions. The emphasis is on clear reporting relationships.Uploaded Exclusively for ManagementParadise. One focus of this movement was the manual work performed in the organization. the bureaucratic mode of management was more efficient as well as more fair. The pure bureaucratic style was defined as follows: µa strong emphasis on smooth functioning by prescribing in writing objectives. The other focus was managerial work performed in the organization. procedures.

A value is something considered worthy in and of itself by a person or a group. rights . Widespread awareness of the organization¶s goals. who understand that leadership means service. obligations or methods to be used The pure organic style was defined as follows: µA strong emphasis on the free flow of information and communication within the organization. the importance of the effective problem solver. and above all on resourcefulness and getting things done¶. Thus he has to follow a pattern of ethics and values. openness. innovation. problems and business plan of actions among managers at all levels. Q 5 Explain the importance of values in leadership? How leader/managers should respond to human values? Ans:Leadership is an indescribable ability based on concrete principles and a tool that anyone can learn that helps one guides an organization or group of people in a beneficial direction or to a valuable destination. The emphasis is on administrative flexibility.Uploaded Exclusively for ManagementParadise. and who believe that their very citizenship carries the obligation to lead when circumstances require. They are more powerful than rules. Values play a very important role in everyone¶s life and also in leadership. A leader is someone who has followers. and he must incorporate it along with the traditional emphasis on policy analysis and formulation. Our nation needs ethical and imaginative leaders at every level.com 42 Page 17 of y Continuous redefining of individual tasks through interaction with others. It can be a one-word standard of conduct or a policy everyone in a company adheres to and believes in. The future of the society depends on leaders who are capable of providing strong leadership. Dislike for paperwork and formalized procedures and job descriptions. The study of ethical leadership is a critical component of any leader. as during product design y Commitment to getting a job done overrides definitions of responsibilities. . it helps people to understand what is desirable behavior and what isn¶t.

on the one hand. not just on technical proficiency and skillful management. they tend to apply more steam. community or society depends on good leadership. It means moving from a nonleadership mind to a leadership mind.e. how you think. gentleness. etc. and a good leader has to consider all these characteristics. your character. Human values include gratitude. we'll get the results we need. community. more competence. loyalty. A leader should be able to identify human values and act on them.com 42 Page 18 of The long-term success of an organization.Uploaded Exclusively for ManagementParadise. the leaders need to dedicate to understanding himself better. how you learn." or "If we exert more control. Therefore to be a leader Reflection is essential i. how you connect with people. Changing those habits means changing ones way of being intelligent. and organizational. he should respond to a particular situation as it generates the inner toughness needed to be an effective person of action. Firstly. what you value. even if the former re-emerges conspicuously only a hundred years or more. It must be understood that archetypal human being in a sustainable. need to change his habits of thought. I'll be successful. Leadership is the sum of two vectors: competence (your specialty. honesty. your know-how) and authenticity (your identity. what you expect from life. when you're stuck. in the philosophical sense of understanding what it means to exist as a human being in the world. For e. dignity. to what got them into trouble in the first place: "If I try harder. for e. or societal values and goals on the other.g. Second.g. and how you manage frustration. Good leadership must be grounded in ethical values. patience. When leaders get stuck. your attitude). how you work. Ethical leadership involves recognizing and reconciling those tensions. . There are tensions between personal values and goals.´ The problem is. your skills. humility. living earth system has to be nearer the ascetic rather than in acquisitive type. one not likely to make progress by using competence as his tool.

He is supportive and accessible. Leader-member relation: this shows how is how is the leader¶s acceptance in the group and what is the attitude of the employees. However he retains the responsibility with The situation in the work environment can change based on the following parameters: 1. Although a leader tends to have one dominant style. Q 6)Does leadership style change according to situation? Any style of leadership cannot be successful under any situations. i. but he needs to make alterations depending upon the situation. but sometimes it is positive as it also gives rewards to employees. All members participate actively and the leader only supports. the employee will not be motivated to work if his leader does not guide him. Democratic: A leader making most use of this style shows that he has greater confidence in his employees. but when task is highly unstructured. Employees¶ task: it may be structured or unstructured. 2.com 42 Page 19 of Values are extremely powerful and they guide the leaders to identify what human behavior is acceptable and what behavior is not while practicing leadership. Autocratic styles mostly is negative. The employees are expected to do what they are told. Autocratic: leaders with this style centralise the power and decision making in themselves. different styles of leadership and different situations can be explained as follows: Different leadership styles are: 1. it is based on threats and punishments. himself. that is. The decision-making is placed in the hands of the whole group. . 3.Uploaded Exclusively for ManagementParadise. Consultative: a leader adopting this style makes decisions after consulting groups. By taking example of work in an organisation. Leadership and learning are important individual values and form a symbiotic relationship for a leader.e. Structured task requires less backing from a leader. whether they like to work independently or want more support. 2. routine or new and challenging.

It can be noted that any leader has one style permanent that makes him a leader. when an emergency order has to be completed. the situation (the external environment) cannot be changed. Although.Uploaded Exclusively for ManagementParadise. but in that course of time he should develop such credibility that his authority is not challenged and accepted without resistance during emergency. Similarly. LEADERSHIP Concept Questions: . the determinacy to get the work done from employees under all situations and to keep that unchanged. This is because. where things change rapidly. However. if the situation demands creative thinking. the decision cannot be left on the employees of how they will execute the order. under normal circumstances he may be allowing group participation. For example. situations. The leader sets an example for his followers and his success depends on his ability to handle different situations. The leader has to be quick. take decision on his own and has to have the capability that everyone follows his isstructions. one style of working cannot be an answer to all situations. To stimulate creative thinking. he can get the best out of his employees if he allows group participation. that differentiates him from the others and that has made him the leader. But that cannot be so rigid that it becomes a hurdle in managing In the dynamic environment. one ting has to be permanent. but the leadership style can be changed as per the demand of the situation. he has to give them more liberty even though otherwise he has always centralized the decisionmaking process. the styles need to be changed.com 42 Page 20 of The main aim behind finding all this is to evaluate whether the situation is favorable or unfavorable and accordingly he has to adjust his style to get the desired output.

Godrej. (7) Kirloskar 2. Whatever standards or norms these industrialists had laid down became the foundation of the labour laws in the near future. they are playing a very important role in . Although the present generation of these industrial leaders is now ruling the industrial empire. These industrialists started their industries from the scratch and against the desire of the British rulers. (4) Rahul Bajaj. P. despite discouraging British policy of levying heavy excise and custom duties on Indian manufactured goods. (6) Singhania. before independence the Indian industrialist were mostly working as the Managing Agents of the British Companies or were engaged in the trading of cotton. They had no work culture.Uploaded Exclusively for ManagementParadise. Ans: Most of the present days industrial leaders have come from the illustrious families of industrialists like those of G. etc. housing and schooling of children. Labour was abundant but not duly trained. Jamshedji Tata and Ghanashyam Das Birla were perhaps the first enlightened industrial leaders who dared to start industrial houses in British India. food-grains. etc. (3) S. Birla and JRD Tata. These industrialists were also required to support the freedom struggle in every form. The industrialist started not only training the local workers to handle the latest machines but even provided for their provident fund. even before the labour law was enacted. Jamnalal Bajaj. (2) JRD Tata. Ans: (1) Kumar Mangalam Birla. D. oil.com 42 Page 21 of 1. List five popular Indian industrial leaders who practice Indian management thoughts. medical treatment. (5) Chitale (Pune). Describe Indian styles of leadership.

They observed Indian cultural festivals and traditions of Puja of machines. Considering the Indian Cultural characteristics. They are developing continually learning environment. Since they belonged to the families of industrialists. they are bound to safeguard the family interests of their houses. they have been revolutionizing the leadership styles. They are becoming more professional. Workers¶ participation at every possible level is being tries. Diwali etc. e. 3. and vehicles on Dassera. They have developed vase track of land in Mumbai into green belt of their own volition.g. The enlightened industrial houses do not find difficulties in labour problems.Uploaded Exclusively for ManagementParadise. stopped the use of animal fat in manufacture of soap long back. Some industrial leaders are trying to provide facilities for meditation and Yoga practices. E. Some noteworthy Chief Executive Officers of their industries are not hailing from industrial houses. Yet it would be injustice to brand them as traditional industrial managers.com 42 Page 22 of development of Indian economy.P. S. employed management trainees in responsible positions.Give examples of µborn¶ leaders and µmade¶ leaders. having no vision of the future. XLRI at Jamshedpur is a renowned training institute. They consider each individual worker as a member of the family.g. and involve the family members in such events. which conduct surveys and promote studies in various problems and principles.Godrej. A worker is taken a whole and treated with due respect. On the contrary. sponsoring sports etc. In working environment also they have brought out several healthy practices. Involvement of labour in the decision making process is likely to increase due to cut throat competition in the near future. . They have sponsored the higher educational and management training facilities. Globalization and IT environment is posing a greatest challenge to the industrial leaders as well as labour. as some industrialist believe in transparency in the decision-making process and workers participation.

Committed people. Efficiency results from arranging work in such a way that human elements have little effect. Minimum efforts spent for getting work done. 5. interdependence. Only happiness of the people is considered important.Country Club Management: No regard for production. being born in the family of privileged people alone does not make a person a good leader. Good and bad styles of Management Ans. such physical stature.Weak Management: no concern for people or for the production. . friendly. Average Management Functions: Adequate performance. 4. Low morale. Not suitable for production and productivity. Satisfactory level of morale. respect. But some leaders are born with the charismatic qualities. 4. A born leader does not necessarily mean a person born in the rich or privileged family and on whom the leadership develops through inheritance. comfortable organization climate. E. Pandit Jawaharlal Nehru was a born leader. pleasing personality. trust. Some children of the privileged persons are seen to have spoiled their life. 3. ideal situation. Born leaders are those charismatic personalities whom people expect to lead.g. fair skin. high people concern and high production concern.Task Management: No concern for peoplebut very high concern for production.Team Management: Work accomplishment. intelligence etc. common tasks. Inheritance does help develop the leadership qualities. People¶s needs are satisfied.com 42 Page 23 of Ans.Uploaded Exclusively for ManagementParadise.1. 2.

All the members in the family are dependent upon the karta of the family from financial point of view as well as personal and psychological point of view.Uploaded Exclusively for ManagementParadise. A sense of discipline. aged. women. One of the characteristics of the economy based predominantly on agriculture is ³Joint Family´. culture. Karta holds the property and rights as a sort of trustee on behalf of the beneficiaries. particularly in villages. He is the leader of the family and he takes all the important decisions pertaining to the family and individual family members. Industrialization has not yet reached the peak of its development. It sustains large joint families. which are binding on all the members. 75% of the population is still living in the villages. physically or mentally handicapped or sick members is taken. in their industries. While there are some good points about the joint not get the due importance or they may not get the opportunity to show their talent. Agriculture activity is labour intensive. customs or traditions are developed in such Joint families. They can feel secure and happy in the joint family. This still holds good in India. In a joint family care of the children. By and large Joint families with an enlightened Karta can be most ideal phenomenon for self development and security.com 42 Page 24 of Describe the role of Karta in Hindu Undivided Family(HUF) The main economic activity in India is still agriculture and allied industry. Industrial leaders in India have emulated some of the paternalistic qualities of karta in a Joint family system. Joint family is headed by the eldest member who is called µKarta¶ of the family. Workers are treated as the .

He has charted a clear vision for Wipro. As a karta of the family Industrial Leader is supposed to treat every person as a whole human being and potential God. But his role is that of a trustee. With the concept of Karta the concept of Trusteeship must be linked with. This is the gandhian-concept. customers. and has tried to . He has no doubt a right maintenance out of the property and remuneration. Azim Premji can be characterised as a shy and reticent leader and a man of simple style and tastes. Chairman. yet.com 42 Page 25 of members of the family system of the industry. retired employees. The Chief assumes the role of the karta for them and ensures that they feel secure and happy in the industrial environment. and the customer is the key to his future. He believes that successful organisations prepare for the future. even old employees are not ignored after their retirement. With the authority of Karta he has also an obligation towards the beneficiaries. sick or old members of the organization. They are listened for their advice. A Karta hold the property or business in the capacity of the trustee rather than as the lawful owner. Azim Hashim Premji. In Business environment. investors. families of the employees. They are allowed to participate in the working of the company with less hazards and physical exertion. He is accountable to the beneficiaries for the decisions he make. 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. CEO or the manager is supposed to exercise his powers so as to subserve the interests of the employees. Characteristics of some of the leading business industrialists in India Ans.Uploaded Exclusively for ManagementParadise. environment and also the community at large. Wipro Being richest man in India. In some industries. He carries on the business of the family or a company for and on behalf of the beneficiaries.

This. determination and effort to better global competition. Known for an almost fanatical obsession with excellence. US. Azim Premji serves as a source of inspiration to many. he has become a global-scale enterpreneur.com 42 Page 26 of bring in human values other than those of integrity. Premji has been criticised by the media and people from time to time that the wealth he had created was not being shared enough. develop world-class teams and attract world-class leadership. He has transformed a company that sold edible oil into one which is working on the cutting edge of technology. though of course his workday stretches from 12 to 14 hours. is an alumnus of Stanford University.Uploaded Exclusively for ManagementParadise. Premji has traversed a long way. being a valid criticism. . According to him. but one¶s ability to keep refreshing it dynamically The success of Wipro can be accounted to his integrity. and joined Wipro in 1966 at the age of 21. unshakable selfconfidence. 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. however. the number of crorepatis that Wipro has spawned would have one believe otherwise. And in the process. innovation and value-formoney. relentless work towards achieving this and its ability to acquire world-class processes. what is important is not one¶s existing knowledge alone. He¶s a firm believer of an honest day¶s work. For a person who studied engineering.

Stung by brickbats.38 crore two-wheeler major Bajaj Auto being a boxer during his college days still carries an aggressive attitude.Rajeev and Sanjeev. his sons were not allowed to gatecrash into the boardroom but were put through the rigours of the shopfloor. Bajaj today is no longer involved in the day-to-day running of his company at Pimpri-Chinchwad in Pune. After a heart attach in 1994. Even after delegating his work to his sons. He does consult other people's opinion in key matters and give them a fair hearing. the club was reduced to a one-man show. However. that's been left to efficient managers and his two sons -. . Bajaj is no longer involved in Bajaj Auto. This did not deter Bajaj who even today continues to be as vociferous as ever. Rahul Bajaj Rahul Bajaj. Chairman of the Rs.Uploaded Exclusively for ManagementParadise. He is very vocal when it comes to the need for a level playing field for domestic enterprises. He alone makes the decisions. This was a example of his strong mindedness. a year later. But does not believe in taking a vote. 1902. Bajaj formed the Bombay Club in 1993 when liberalisation threw open the doors to foreign competition. He believed that the government owed it to the domestic industry to offer enough time to put its house in order before forcing it to compete against global giants. Though. Rahul Bajaj remains an autocratic leader by nature.com 42 Page 27 of Azim Premji serves as inspiring for hundreds of techies ± around the country and within the company ± to strike out on their own. yet decisionmaking by consensus is not his style and he continues to be the last word at Bajaj Auto.

Explaining what activities each has to do and when. Organising and defining the roles of group members 2. A leader who places greater emphasis on people tries to gain their relationship by exhibiting such behaviours as: 1.com 42 Page 28 of 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-à-vis the people performing the task. A leader who places greater emphasis on task performance tends to exhibit the following behaviours´ 1. Establishing channels of communication 2. channels of communication and ways of task accomplishment. Depending on the task emphasis or people emphasis four combinations are possible as shown in the following diagram: High High relationship and low task High task and high relationship (Supporting style) style) People (Participative . Extending psychological support to them 3. Developing empathy for them. where and how tasks are to be accomplished 3.Uploaded Exclusively for ManagementParadise. Developing mutual trust 4. Establishing well-defined patterns of organisation.

The high task and high relationship style is considered useful because it results in high productivity and personal satisfaction. (Autocratic style) High task and low . The leader simply takes the expedient route of focussing on work rather than people. It may also be well suited to situations where seasonal help is required. the high task and high relationship style is particularly effective. 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. When employees are lacking in self-confidence and technical skill.com 42 Page 29 of Emphasis Low task and low relationship relationship (Free-rein style) Low Task emphasis Low H igh 1. This style may be effective where the employees are inexperienced with the work to be performed. A high task low relationship leader is not necessarily rude or discourteous. High task and high relationship: This leader spends considerable time showing people how to get work accomplished and providing them with psychological support.Uploaded Exclusively for ManagementParadise. Seasonal employees may be unfamiliar with the task and require direct guidance on performing the work properly. A more critical look at this style would suggest that it works best in situations where people need an active and involved leader. 2.

Entrepreneurial leadership style Entrepreneur is a person who converts an innovative idea into business. this style can be effective. and the circumstances of operating a business. Low relationship and low task: A leader using this style is neither here or there.  A much stronger interest in dealing with customers than employees. many entrepreneurs use a similar leadership style.com 42 Page 30 of 3. It is essentially a free-rein style. The most notable features of this style are:  Impatience and brusqueness towards employees because the entrepreneur is always busy. situations employees psychological support rather than technical instructions.  Anxiety to consolidate business gains as quickly as possible . They are also given very little psychological support. When subordinates are highly skilled and psychologically mature. 4. The word entrepreneur is generally associated with small-scale industry.  A charismatic personality that inspires others to want to do business with him despite the impatience. What is an entrepreneurial leadership style? Based on both their personality characteristics. They are therefore.  A strong dislike for bureaucratic rules and regulations. Subordinates are given considerable latitude in performing their work.Uploaded Exclusively for ManagementParadise. High relationship and low task: A leader using the high relationship and low task style gives employees much encouragement and support but a minimum In some of guidance about the need task more accomplishment. free to run their own show. encouragement and praise.  A heavy task orientation combined with a very direct approach in giving instructions to employees.

Stated differently. and help subordinates become confident that they can reach their own objectives by expending the necessary efforts. Transformational leadership implies a process where by an individual attempts to elevate his or her consciousness (chetana) so that various commonplace conflicts and dualities begin at a higher level of synthesis. professional management and social responsiveness. transformational leadership attempts to change the whole organisation from one style or culture to another. If Tata group of companies stand distinct in our corporate world. the shared purposes of a larger group. valuecongruence skills.credit goes to the transformational leadership of JRD. The leader¶s main thrust is to elevate. Transformational leaders are characterised by their distinct skills. two styles of leadership are talked of. Transactional leaders determine what subordinates need to do in order to achieve their own and organisational objectives.the willingness to share power and to do so effectively. transactional and transformational.com 42 Page 31 of Role of Transformational leadership In explaining the concept of transformational leadership. They are: anticipatory skills-foresight into a constantly changing environment. His qualities of the head and heart moved everybody who ever came into contact with him. Transformational leadership has the ultimate aim of raising the level of human conduct and ethical aspiration of both the leader and the led. viz.the need of a corporate leader to be in touch with the employees needs in order to engage people on the basis of shared motives. The late JRD Tata is a fine example of a transformational leader. empowerment skills.Uploaded Exclusively for ManagementParadise. values and goals. and self understanding. visionary skills-a process of persuasion and example by which a person or leadership induces a group to take action in accord with the leaders purposes or. more likely.introspective or self understanding skills as well as .in terms of profitability. classify those requirements. inspire and evangelise his followers (and himself/herself) to higher things in life.

Uploaded Exclusively for ManagementParadise. It is said that one cannot do business with yesterday¶s methods and be in business tomorrow. recognizing defining and solving problems etc. and who makes use of them discretely. organising. Foreign companies are entering our country in a large number. manage time and stress. Managers and leaders are different kind of people. managing individual decisions.com 42 Page 32 of frameworks within which leaders understand both their own needs and goals of those of their employees. coordinating. 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. A manager has to develop good leadership qualities in order to take the company to the top. Explain the role of leadership character in management. We need more transformational leaders for our economy. An effective manager requires changing leadership styles but should have good verbal communication with good listening power. Our country is now thrown open for global competition. Korean managers were able to do better compared to Japanese as they developed managerial leadership quality. directing and controlling the activities of others. Management is a process of planning. The style keeps changing as the situation with the types of people. Leadership is a psychodrama in which a brilliant lonely person gains control of himself for controlling others. This led to success of Koreans in America and even in India. Leadership is the process of influencing for the purpose of achieving shared goals. . A successful manager is one who has both the qualities. They differ in motivation. personal history and in how they think and act. of the leader and the manager. which is flexible and open.

It takes neither genius nor heroism to be a manager. tough mindedness. An effective manager gets the job done through high quantitative and qualitative standards of performance with satisfaction and high degree of commitment. intelligence. Today Manager¶s role has undergone change. We do not need managers only but Managerial Leaders. in simplest of terms. Leadership style is the pattern of behaviours used by the leader to influence the behaviour of others . Manager has to achieve results so that people will continue to contribute to this organization.com 42 Page 33 of Leadership style should blend with managerial functions. but persistence. 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.Uploaded Exclusively for ManagementParadise. hard work. A mesh of managerial qualities with leadership ability will be the key to success of managers in today¶s environment. analytical ability. Leadership inevitably requires using power to influence the thoughts and actions of other people. is the ability to persuade others to seek defined goals and objectives enthusiastically. A managerial culture emphasizes rationality and control. Leadership. tolerance and goodwill.

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. it is not very helpful to practicing managers. and consequent inaction.com 42 Page 34 of Situational Leadership: Leadership style is generally talked in terms of two extremes ± an autocratic (directive) and a democratic (supportive) style. the amount of direction and support a leader should provide depends on the Development Level that the subordinates show on a specific task. . These factors include time frames. Organizational climate and the superiors¶. If every time all these factors have to be analysed by the managers. satisfaction and growth in all situation. While the situational approach to leadership does make much sense. In particular. Development Level: Development Level is defined as the competence and commitment of the subordinates to perform a particular task. No One Best Style: Though some claim that there is one best style that maximizes productivity. If "it all depends on the situation".Uploaded Exclusively for ManagementParadise. values and expectations. job and task demands. who have to make leadership decisions everyday. The immediate key factor that a leader takes into account is the subordinates. peers¶ and subordinates¶ skills. what is called paralysis by analysis. A number of situational factors influence which leadership style will be appropriate in which situation. it will result in. they would like to know when to use what style. function or objective that the leader is attempting to accomplish through individual or group. 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 decision-making.

com 42 Page 35 of When thinking about someone¶s development level it becomes necessary to remember that people are not "fully developed" or "under developed". It should be kept in mind that over time subordinates and subordinate groups develop their own pattern of behaviour and ways of operating. For example. s shop floor worker needs to be lead by direction.e. This is done through training. leaders need to provide their people with what they cannot do for themselves. Matching Leadership Style to Development Level: In determining what style to use with what development level. norms. Development level must be assessed. customs. While a manager may use a specific style for the work group as a group.Uploaded Exclusively for ManagementParadise. 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. while a sales executive needs to be led differently. The manager should then vary his/her leadership style in response to the individual¶s development level. As responsibilities and tasks are assigned to individuals and groups. Development level is only a task specific concept. that manager may quite often have to behave . i. It all depends on the maturity of the person being lead. 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. Increasing Performance Potential Situational leadership as described so far. traditions etc. function or objective they are assigned. People tend to be at different levels of development depending on the specific task. Conclusion Effective managers know their subordinates well enough to flexibly manage everchanging demands upon their organizations.

Uploaded Exclusively for ManagementParadise. a certain amount of the paternalistic attitude prevails. [and (iii) public sector organisations.] In family-managed traditional organisations. Such classification may be (i) family-managed traditional organisations. such style has also been inherited by successors without any change or modification. (ii) professionally managed Indian organisations and foreign-owned organisations.com 42 Page 36 of differently with individual subordinates because they are at different levels of development. highly paternalistic. authoritarian style is more suitable which these organisations have followed. . who is also the head of the family. The same paternalistic attitude extends to the employees and have developed a set of values vis-a-vis his employees. there is management by inheritance or management by chromosomes with the result that these organisations are highly centralised in their organisation. It is this shifting forward and backward in style that makes situational leadership a truly developmental model for both managers and subordinates. the most prevalent style is autocrativc. At the initial stage. Critically analyze the differences in the leadership styles of family managed Indian business organization and MNC¶s in India Indian work organizations can be classified into three pats which have some distinctive features and consequently the different leadership styles. Sons and grandsons of the entrepreneurs are automatically promoted without any consideration to efficiency or overall suitability. Thus. The proprietary character of business and largescale participation of family members in it have made the attitude of the head of the business. However.

Values shape and give significance to our lives.Uploaded Exclusively for ManagementParadise. As such.com 42 Page 37 of On the other hand. public sector organisations are manned by civil servants who brought a lot of bureaucratic culture with them. Values not only make success enduring. How leaders/managers should respond to human values. . Explain the importance of values in leadership. Values need leaders to be absolutely transparent in whatever they do. Here. bureaucratic style is more prevalent owing to the work culture inherited by public sector managers. there many organisations in the private sector owned by Indians or by multinationals who have appreciable degree of participation or democratic leadership. which is a very powerful cementing force for the organization in these changing times. Leadership has to be built on a strong foundation of values. the decisions we make and the actions we take. and impersonal relationships with work against participative style. They are reflected in the priorities that we choose. Every action of the leader must stand public scrutiny. degree of participation is greater in such organisations. class distinctions. The net result is that the entire organisational processes are governed by bureaucratic model. Values transmit trust. Its implication is status differentials. resilient organization that can stand up to any crisis along the way. The reason is that multinationals do not bring only their technology but also the work culture which is more permissive and conducive towards the application of modern approach of management. Values describe what the organization is about and give meaning to stake holders. Initially. but also help in building strong. The third categories of organisations are in public sector.

and achieve a state that unites members in effective performance. or in the interest of those who are dear to them. Leaders should maintain their own balance. Anger is as bad as lust. Alignment now has to be achieved through a shared understanding of what is important to the organization. its employees. Leaders should have compassion and love . A basic set of values. and its customers . increase potential capability. are integrity.that is through shared value priorities. visions and goals. not through thoughtless or violent actions. Alignment of business vision. Leaders should not try to elbow out others or sacrifice others for the sake of their self-interest.com 42 Page 38 of Successful leaders recognize that shared values increase commitment and productivity. goals. building and maintaining good relationships. which is the greatest strength and power of endurance that a man can attain. Explicit values provide organizations with an efficient way to build commitment. be selfless and be so strong that they convince others of their strength. guide decision-making. It also means total absence of hatred. Through shared values. It means the greatest courage coupled with the greatest love. Hatred is as bad as attachment. honesty. strategies. policies and practice has always been key to the effectiveness and success of organizations. The leaders should cultivate real non-violence. which a leader must possess.Uploaded Exclusively for ManagementParadise. each individual possesses an accurate view of the "larger picture" and understands what the organization as a whole is trying to accomplish. align actions. and at the same time try to do good to others. but through their firmness dignity and inner strength. 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. trustworthiness and being there for one¶s followers.

com 42 Page 39 of for others.lead. then he hates no one. a touchstone of a healthy and µmoving¶ organisation is forgiveness." The extraordinary leader is the first to sacrifice and will be rewarded with the loyalty of his or her followers. Theextraordinary leader says. I want you to know that I am taking a 20 percent pay reduction myself. one hates none. When a leader sees the self in all people and all people in the self. This sense of tolerance and acknowledgement of our shared humanity is a spiritual quality. Developing the values of patience and perseverance become essential for any leader. In the long run we will be healthy again but for the mean time. I am too. this is necessary. the leader should do just that . When one realizes the self. The extraordinary leader.for themselves and for their followers. Panic only leads to disaster. I want you to know that we are in this together. They remind themselves that being calm will enable them to make the best decisions . takes time out regularly to think the issues through so they can remain calm. "I know many of you are concerned with the salary cuts.. Panic is one of the basest of human emotions and no one is immune to it. When it gets tough.these shift the center of gravity away from the essential integrity and create conflict and discord. greed unchastity or helpless dependence on others . Anger. They need to not only be the one who is rewarded the greatest when all is well. Leaders forgive the mistakes of others. hatred. They remind themselves that all is not lost and there will be another day. These values gain him respect even among competitors. etc.Uploaded Exclusively for ManagementParadise. but they need to be the first to sacrifice. This is the recurring theme in the Upanishads. . Indeed. untruthfulness. like when there has to be cuts in salaries. while calm leads to victory. Understanding this. however. which good leaders possess.

com 42 Page 40 of Research has shown that the ethical standards of an organization impact upon the efficiency of that organization. d. but not be limited to. Leaders inculcate values in their followers by: a. c. Discussing specific ethical issues that staff can relate to.Uploaded Exclusively for ManagementParadise. Explain the role of leadership character in management. These should include. staff commitment to the organization. rather than having a philosophical discussion about abstract values. Supporting those discussions by their attendance and by reference to concrete examples of practices or circumstances that may be. Unethical practices result in loss of public confidence and tarnished reputations. f. unethical. e. These must be applied so that they are seen to be actively rewarding desirable behaviour and not just punishing unethical behaviour. b. Establishing guiding principles for appropriate behaviour. Direct communication with staff through regular talks and discussions. as well as turnover in and levels of stress experienced by staff. They affect staff job satisfaction. or may be seen to be. The discussion of ethical issues should become a normal part of the manager¶s job. . Communicating their own beliefs in the core ethical values of the organization through their own actions. Stress is an expensive and on-going problem. Research suggests that a poor ethical culture in an organization can contribute to work place stress. the research findings support the argument that good ethics are good business. In short. a code of conduct that can help guide decisions in a diverse range of situations. Putting in place systems that reward ethical behaviour and punish unethical behaviour.

 They should be great motivators . The importance of a leader cannot be overemphasised. They differ in motivation. Leadership is the process of committing a group of people to specific goals. They have a great vision and want to take their organisation to unbelievable heights with the able support of employees. 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.Uploaded Exclusively for ManagementParadise. It has been pointed out that ³ management is doing things right.´ To be really effective in the organisation and take it to greater heights.com 42 Page 41 of Leadership has been defined as ³the capacity to translate vision into reality´. leadership is doing the right things. an organisation would be like a ship without an anchor. he also pools needed resources. A leader not only commits his followers to organisational goals. 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. Without leadership. guides and motivates subordinates to reach the goals. Managers carry out the management functions assigned to them but leaders have much higher goals than simply managing the affairs of the company. leadership determines whether the ladder is leaning against the right wall. Managers and leaders are essentially different kinds of people. Managements efficiency lies in climbing the ladder of success. personal history and in how they think and act.

Lal Bahadur Shastri are good examples who empowered people. Examples of managers who are effective leaders are Verghese Kurien of AMUL. Empowerment can lead to greater commitment. Nehru. Computer revolution by Rajiv Gandhi is typical example of empowerment. Deepak Parekh of HDFC.com 42 Page 42 of Leader empowers people and gets the work done. 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 .Uploaded Exclusively for ManagementParadise. This selfless approach leads to better productivity from people. which goes much ahead of self-gain. NR Narayanmurthy of Infosys KV Kamath of ICICI.

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