Name: Shruti Chamaria

Roll no: 015

Company: Ashok Leyland

Classical Management theory: It is based on the belief that

employees only have economic and physical needs and not social
need and job satisfaction, self-actualization needs which is equally
important for the employee to be motivated to work in Ashok
Leyland. HIRE (Harnessing Internal Recruitment Expertise) Program
was launched by Ashok Leyland. It is a premium program which aims
towards achieving excellence in recruiting. HIRE was done along
with DDI (Development Dimensions International), which one of the
top organisations in Leadership Development who supported Ashok
Leyland in developing the curriculum for the project covering the
middle and senior management of Ashok Leyland.
Contemporary Management Theory: Contemporary management
theory is where the organisation interacts with the external
environment because if Ashok Leyland is not aware about the
external factor then it not be able to cope with the competitors which
are present in the market. Contemporary theory includes 1.
Contingency Theory of management and 2. System Theory of
Management. The systems theory is where the organization is
interpreted a system with interrelated functions where they have to
achieve common goals and it is very important for an organization. It
is a closed system where it is required to interact with the external
factors to survive in the market. The contingency theory talks about
the uniqueness of the organization where every organization cannot
be treated the same way and there should be different approaches to
tackle every situation. It follows the quantitative, behavioural and
scientific management approach if it implies to the situation to
manage effectively.

Evaluation of Classical Leadership Theories[ CITATION Iva19 \l 16393 ]

1. Democratic Leadership: Democratic Leadership is also known

as participative leadership where the leaders often as the team
 members for inputs or suggestions before taking any decision. In
this style the team members also have to take part in decision
making. In this style employee have a very high job satisfaction
and the employee are motivated to work and feel valued when
seniors ask for their suggestions which result to higher
productivity and creativity at work. However, there is a
disadvantage in this style because as decision making is a slow
process and when decision making is required it is crucial. This
style should be followed in the companies as employee feel
valuable when asked for suggestions.
2. Autocratic leadership style: In this style the leaders have
control over the employee and they do not involve them in any
decision taken. The employee is been given the work and they
are been supervised by the seniors. In this style there is lack of
creativity because the supervisor does not ask for suggestion
from their juniors. Due to this the employee may not be satisfied
by the job or may be demotivated as they feel their suggestion is
not valuable. The best use of this leadership style is where there
are limited skills required and the place where there is no
creativity required.
3. Laissez-Faire Leadership: This term means “let them do” or
“let it be” which means a project is selected by the employee at
in which he/she feels the are good at and without the
interference of the supervisor the task or the project is been
completed. Companies where creativity is required and the
employee have the right to do the task adapt this style of
working. This style works well if the employee knows how the
task is done and have experience in doing the task but their
supervisor needs to monitor and communicate with the
employee to maintain the standards.
4. Bureaucratic Leadership: This style is useful where there is
strict rules and regulations and the order of hierarchy is to be
maintained. The leader makes sure that the employee fellow the
rules and complete the task in the defined order only. This style
is not suitable in todays scenario because the employees wish to
complete the task as in when they want.
 5. Charismatic leadership: This leadership style relies on the
charm and personality of the leader. This leadership style is not
favourable today because personality and charm does not work
for a project to be completed the leader should be present there.

Evaluation of contemporary leadership theories:

1. Transformational Leadership: This is found in most of the

desirable employee where they can efficiently communicate and
build an intellectual environment. The leader needs all the
details about the project to put forward the vision effectively.
This leadership style would be accepted I today’s scenario
because now a day’s employees strive for more information
flowing between each other.
2. Transactional Leadership: This style focuses on proper chain
of command where a good performance is appreciated and bad
performance has repercussions. This help the company to
achieve the goal but the employee does not reach the full
potential, they feel demotivated. This is an effective way of
completing a short-term task, in this situation the employee is
forced to work leading to less creativity.
3. Trait Theory: This theory of leadership is based on the thought
that leaders are born so the employees possess the leadership
qualities and traits are considered to be the leaders. The trait
theory is based on the characteristics of both the successful and
unsuccessful leaders. Some of the common leadership traits are:
Knowledge, Initiation of activity, Tenacity, Energy, Flexibility,
Creativity, Confidence, Charismatic. This style would not be
successful because it is believed that some people may have
these traits naturally but can also be learned over time.
4. Emotional Intelligence: It is a skill every leader should
incorporate where the leaders are required to manage and
control their emotions in pressure. It is very important for a
leader to have IQ but they also need to be emotionally stable and
their emotions should not affect their decisions. This is
portrayed in the leadership by 5 competencies that are: self-
 awareness, social skills, self-regulation, motivation and
empathy. These qualities are needed to become a successful
leader.

Leadership style in Ashok Leyland: [ CITATION Sus181 \l 16393 ]

Ashok Leyland’s 100 CEO plan: The objective of the plan is to
build the leadership pool by identifying potential leaders across
various segments and take them through a competency-based
signature leadership development initiative infusing into leadership
talent supply chain

[ CITATION Sus181 \l 16393 ]

Ashok Leyland have enlisted signature programs under 100 CEO

plan: Business leadership Program, Emerging leaders’ program,
Young talent Program.
  Business Leadership Program: To maintain the success of
Ashok Leyland transformational journey in becoming an
international mobility company that builds, design and
distributes power solutions and commercial vehicles. The
program is envisaged as a structure development to fine journey
and develop leadership skills.

[ CITATION Sus181 \l 16393 ]

 Emerging Leaders Program: ELP leads to nurturing,
encouraging, incubating and mentoring prospective leaders. ELP
identifies potential leaders or fast trackers who are capable and
ensures that they are motivated and developed through this
structured intervention to take up mid and mid-senior
leadership.

[ CITATION Sus181 \l 16393 ]

 Youth Talent Program: YTP is an initiative that looks into

engaging, leverage and propel Ashok Leyland’s young talent
 towards functional and project excellence. YTP is a signature
high potential program in line Ashok Leyland MD’s vision of
creating 100 CEOs. Company had kept YTP as a one year
program which involves individual development planning,
management development program.

[ CITATION Sus181 \l 16393 ]

Women leadership Program: The primary objective of women

leadership program is to step towards building diversity and
inclusion of gender in the leadership pool by identifying women
leaders. The women leaders who are selected attends an orientation
for 1 year after which they are assigned the designated post in the
business. The orientation is about various avenues such as
Professional Development, Sales, Aftermarket, Manufacturing,
Sourcing etc.

[ CITATION Sus181 \l 16393 ]

Change Theory For an organisation to survive in the market it

needs to evolve or change as per what is happening in today’s time
this is done by bringing changes in the organisation. Change
management model is based on 3-step process 1. Unfreeze 2.
Change 3. Freeze This provides a framework to the managers that
want to bring change in the organization. It helps leaders make
drastic and big changes and the change has the adopted by
employees permanently and they are able to adhere to it. Unfreeze
is the first step where the idea of change has come up. It helps
employees adapt to different ways of doing task more efficiently.
The next step is change, where new methods or ways are bought
and implemented, it is very important to inform about the change
to the employee so the employees are aware on as to how to work
and training is been given to them for better functioning. The next
step is Freeze or Refreeze which means that after testing the
changes it needs to be made permanent and make sure every
employee work as per the new change bought in the organisation.
However, after refreezing also there may be some changes in the
same system of the betterment of the organisations, which needs to
be adapted. This theory can be useful in today’s scenario if the
organization is going to implement a big change as it shows the
mistakes that were occurred because every aspect of change is
analysed.

Kotter Theory of change: [ CITATION Too19 \l 16393 ]

It is an 8 Step model where he focuses is on the people who drive
the change rather than the change itself. The changes are brought
into existence by the following process.
This theory will not be successful in the current organisation scenario
because it does not collect feedback as to how the change is being
carried out and in this process the employee is required to just fellow
what needs to be implemented.

The major changes occurred in Ashok Leyland [ CITATION ETm19 \l

16393 ]

Recently the Chennai based commercial vehicle company announced

a major change in its top managerial team. Gopal Mahadevan was
recently appointed as Whole-Time Director in addition to his current
role which is CFO and President, Customer Solutions Business,
Information Technology, Corporate Strategy and Business Analytics
all will be handled by this man. Company appointed Anuj Kathuria as
COO and that man will be responsible for Medium and Heavy
Commercial Vehicles. Nitin Seth also appointed as COO but he will
look after the Light Commercial Vehicles, Defence, International
Operations and Power Solutions Business. N Saravanan appointed as
Chief Technology Officer is now also responsible for electronic
vehicle.
Internal and External Triggers of change
Triggers are the discomfort caused when doing an activity which
would result in a change because if something is not going right and
the output is not up to the mark then there needs to be a change.
Hence any discomfort arising within or outside the organization with
the functions, rules, systems and procedures, which are not effective
are known to be the trigger for change.
Internal Trigger: These triggers arise within the organisation like
HR issue, unable to implement the project because of the IT, Strategic
alliance, etc
External Trigger: These triggers are caused by the external
environment that effect the functioning of organisation. These
includes changes in the trends and demand, demographic changes,
technological changes. New technology may include changes which
needs to be adapted for faster and better output, changes in
government and legislation.
Some Triggers can be:
 Product life cycle: PLC contains of 4 stages that are Market
Development, Market Growth, Maturity and the Decline stages.
When a product reaches a declining stage, the product becomes
less popular due to the less popularity of the product the
organisation starts making loss for that product and it is a sign
that the product need to be upgraded with better benefit or needs
to be discontinued from the market or else it will incur cost, but
once the product is been discontinued it cannot come into the
market again.
 Changing markets: If the organisation is expanding
internationally, there needs to be aligned strategies and adequate
resources to leverage upon the opportunities. The organisation
should be able to adapt to the new market to the market change
as the preference of the customers also keeps changing and if
the organisation does not make changes according to the
customer preferences then the customers will shift to another
 brand. The changes made in the product should be of high
quality and much better than the competitors in order to gain
customer loyalty.
 Economic Downturn: Economic downturn means breakeven
point in the company where the profit is 0, where the company
is about to shut, reduction in the employees, cutting the
expenses, during this downturn the organisation should be ready
with a backup plan because this can occur anytime. Small
organisations tend to face this situation frequently and they
suffer largely.
 Change in legislation: Government changes certain rules and
regulations for every industry, which every company needs to
fellow. Due to the change in the rules and regulations there is an
impact on the functioning of the company. The profits of the
company are also affected.
 Demographic Change: Demographic factor are the age, income,
lifestyle, sex and family size etc through this the company
understands the buying behaviour of consumer and segment it to
that particular target group.
 Mergers and Acquisitions: Mergers and Acquisitions is also a
trigger for the changes in the company. When 2 companies
merger together it is difficult for both of them to fellows the rule
and regulation of both the companies so the organizational
structure is been redesigned which may result the employee
have cultural difference that will make the employee
disappointed and for them quitting the job and conflicts which
will have effect on the productivity and efficiency of the
organisations.
Resistance to Change:
There are many factors which result an employee to resist themselves
to change, but they need to adjust themselves to the new rules and
regulation bought in by the organisations.
The reasons for resistance are:
 Not clear about the change or misunderstanding about the
change: If the employee has not understood or is not clear about
 the change they will resist to change, especially those who are
happy with the old rule and they believe that is the better way
of working.
 Fear of unknown: Risk is one of the reasons for resistance
because if the person knows that there is risk in the changes
which is been implemented then they will resist to fellow it if
there is no risk, they will accept the changes.
 Incompetency: Fear is one of the reasons for resistance because
they will think they are incompetent and lacking skills which
will resist them to adapt the change. They will feel that they are
not capable to adapt to the new system.
 Habitual to old methods: Some employee is very use to doing
things in the old way which they feel is easier and but time
consuming but being the old tested method, they do not wish to
change to different methods of doing tasks.
 Lack of consultation: If changes are made and the employee is
not aware about it, they loose interest in adapting the changes
but if they are been consulted, they show interest and
understand the benefit derived from the change then it will be
less resistance.
 Temporary: Sometimes the employee feels that the change with
is implemented is temporary that is why they resist to the
change.
 Lack of communication: If the change is made and not been
communicated to the employee as to why the changes is been
bought, they will resist to the changes.
 Increase in the workload: Due to change the workload of the
employees increases because they have to work as per the old
system and train themselves for the upcoming changes so the
employee feels demotivated due to stress of extra work.

Change management system for Ashok Leyland:[ CITATION Sus181 \l

16393 ]

1. Education: Education is one of the most important in

reforming the fundamental to nation’s growth and development.
 Ashok Leyland beliefs that education prepares children for
better future prospects and enables then to participate actively
in citizenship.

[ CITATION Sus181 \l 16393 ]

2. Material Management: Material forms a major part of Ashok

Leyland’s operation which includes Steel as a primary material,
while other material such as copper, tyres, lubricants, cast iron,
paints, aluminium, and rubber are the secondary material which
is required for production. The company strive to conserve
natural resource by minimising the consumption and wastage.
The material whenever conceivable are either reused in house
and recycled or procured from external suppliers. As a part of
material conservation Ashok Leyland introduced VAVE
Battery carrier.

[ CITATION Sus181 \l 16393 ]

[ CITATION Sus181 \l 16393 ]

3. Engine Recon: As a part of material recycling initiative Ashok

Leyland started “Engine Recon Activity”. Under this initiative
the company collects engines from the customers using core
engine receipt and conduct performance test within the
company itself, post which company could reuse 40% parts
upon material / NDT checks. With this initiation company was
able to recycle 225 MT/ Annum of material used in engines. To
optimise company’s material consumption company also utilize
material in the processes.
 [C
ITATION Sus181 \l 16393 ]

4. Waste Management: Operation of Ashok Leyland includes

process such as pressing, fabrication and painting, assembling
and testing of vehicles at the manufacturing site. The company
generated both hazardous waste and non-hazardous waste
which are in solid and liquid form. Company emphasis on
reduction of waste at source, followed by recycle and final
disposable in a proper manner. Company is working towards
“Zero Waste to Landfill”
 [ CITATION Sus181 \l 16393 ]

[ CITATION Sus181 \l 16393 ]

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Adkar model:

Companies would wonder why some changes are successful while

others fail. The change would not only fail because of poor
communication or lack of knowledge and training but it will be
successful if it shows the best solution for the problem. The model
helps us understanding change at an individual level. The 5 elements
of this model are:
1. Awareness: It refers to the understanding of the individual to
consider the change required. They understand the need to
change and repercussions of not changing. The supervisor has a
crucial role as he/she has to ensure that each and employee are
fully aware of every element of the change model.
 2. Desire: It is about the willingness to accept and support the
changes. It is personal choice of the individual to be influenced
by the change.
3. Knowledge: This is required when the employee when
employee is aware about the need to change as training and
knowledge is require to adapt the change. This includes
information about the new technology, new tools, skills.
4. Ability: This is the stage where the change is executed and the
knowledge is bought into action. This is realized when the
employee implements the change and are capable to fellow the
change to improve their performance and productivity.
5. Reinforcement: These are the internal and external factors to go
through the change. External reinforcement are rewards and
realization to the employee for adapting the new change and
internal reinforcement are satisfaction derived by the individual
by achieving the benefit of change.

Kotter’s 8-Step Change Model.[ CITATION Too19 \l 16393 ]

This model is about the success factors combining them with the
methodology for change.
1. Create a sense of urgency: Making the employee aware about
the need and urgency for change, this makes it easier for the
change to be implemented. If urgency is created the interest and
motivation of the employee to work towards the change also
changes. It is very important for Ashok Leyland to inform the
employees about the major changes which they are going to
make in the company.
2. Create a guiding coalition: A strong team has to be formed by
the company who believes in change and have to convincing
power to convince the other employees easily and join in for the
change. Ashok Leyland has to form that term of experts who
know which change is require and where is it require so they can
easily convince the people who are against the change.
3. Create a strategic vision for change: A vision should be
created which shows the changes and how will it be beneficial
for the company and the employee also. Ashok Leyland should
 make a vision so it will give the employee a clear vision as to
why changes are been made and they will help in achieving the
vision.
4. Communication: Communication is the vision because every
now and then the vision should be communicated with the
employee so that they can implement the change and help
working on it. Ashok Leyland should have an effective
communication with the employee for better functioning.
5. Remove obstacles: Obstacles need to be removed to implement
the change effectively, it also includes the people resisting
change so they need to be shown the positive side of the change
and people supporting should be rewarded. Ashok Leyland
should reward the employee who helped and motivated in the
change and look on the brighter side of overcoming the change.
6. Create short-term win: Success is a great way of motivation,
so short-term wins should be recognized which motivated the
employee and they will believe that change will bring
difference. This is a very importance step for a company
because if there is a small celebration then the employees will
have confidence in the change and will work hard to implement
it.
7. Consolidate the change: If change is implemented successfully
then identification of rights needs to be improvised for better
result, for this company needs to set higher goals and build a
strong process to implement the change. Employee should be
motived to put more efforts after the first success to bring the
change into reality.
8. Make it part of culture: Under the last step the change would
be permanently adopted. Ashok Leyland should incorporate the
changes in the organisation and into the culture. The change
should be visible in everyday practices to ensure that its is
functioning properly and feedback of the employee should be
welcomed to improve the change systems.

Shareholders Analysis at Ashok Leyland

In the annual report released by Ashok Leyland, the company will
disclose information about the company where the investors are
enabling to fully appreciate the prospects of the company and take
decisions about investing into the company. For the stakeholder
analysis there is reports and other statements that is made by the
company, has forward looking statement which is based on the
management assumptions and plans. Known and unknown risks or
uncertainties materialised, or should underlying assumptions prove
inaccurate, the actual result could vary materially from those who
estimated and projected the same.

Power Matrix:
It is necessary for an organization to understand the importance of
every stakeholder and at what level they are and how much interest
they have in the organization. This is divided into three stages, first to
identify the stakeholders, second to know their level of interest in the
organization and their power over the decisions and third step is
develop good relationship with the stakeholders so that they feel
connected to the organization.
This matrix has 4 quadrants.
1. Low power, low interest: The organization should have less
focus on these stakeholders because they are not highly affected
by the decisions as they have low power and hold less interest in
the organization and a general communication can happen with
them. They are the “Least Important”
2. Low power, high interest: They come into the “Show
Consideration” quadrant where they need to be considered
before taking a decision as they have high interest and they can
be asked for consultation. There would be resistance in this
quadrant because they are aware their decisions will be
considered and if they do not want to change then it would be a
hurdle and difficult to convince.
3. High power, low interest: Stakeholders under this quadrant
should be kept satisfied by meeting their needs and their interest
can increase if they are always considered for decision-making.
Government would come under this
 4. High power, high interest: These are the most important
stakeholders as they have high interest and high power. Clients
and vendors of Ashok Leyland would fall under this category as
they are known to be the “Key players” and they influence the
decision making of the organization.
Stakeholder communication:
Stakeholder are important part of a company and communication
with them is even more important because they need to be aware
about each and every decision taken in the company. They should
also be aware about as to all the right step is taken for the functioning
of the business, and good relationship has been made to have a
positive impact on the company. Top level in Ashok Leyland need to
make sure they are effective communication is happening with the
vendors, clients, customers and employees. Ashok Leyland has
different means of communication for the new, which are newspaper,
website, News release, Presentation to analysts. Through these means
of communications stakeholders and other are known about the facts
and figures of Ashok Leyland.

Link between HRM policies and organisational performance:

[ CITATION Sus181 \l 16393 ]

Ashok Leyland being an Indian automation industry is relishing its

leading position in being one of the key drivers of the Indian
economy. The experts in this sector believes that employee excellence
and talent management will be critical in achieving the project goal.
In the automotive industry highly skilled employee specially in
product innovation, sales & market functions and operations is
required. Company has identified recruitment and skill management
as one of their material focus area. Company has understood that
retention and availability of skilled manpower will be the single most
critical factor for the company and which will determine the success
of the company in the coming years in the sector. Ashok Leyland
believes that the employees of the company strengthen the
organisation and make it remarkable in driving high level
performance and maintaining the reputation of the company.
[ CITATION Sus181 \l 16393 ]

Impact of outsourcing and integrated supply chain

There are some companies that outsource their supply chain

management but it has to be suitable for the business and manage its
risks accordingly. The researcher has mentioned pros and cons of
SCM below:
Pros:
 The efficiency rate is high
 There is reduction in cost
 There is an increase in output
 It boosts the corporation level
 It enhances the supply chain network
Cons:
 Leads to conflict
 Too much of regulations
 No control over the process
 Reputation is at risk
Goleman’s leadership styles

Daniel Goleman is a leader on emotional intelligence has identified

six leadership styles. Each style has an impact related to emotions. He
believes that one style cannot be used in every situation and it cannot
be repeated.

1. Pacesetting: The main objective of this style is to complete

tasks with good standards and its emphasis on the goal’s
achievement. This style is effective when the individuals are
highly motivated and are well versed with their job and the team
only requires a bit of direction to head on the right path. The
leader ensures the team attains their target efficiently but this
method is not useful if the employees do not have trust and good
relations, as they will not be able to achieve the objectives.
Ashok Leyland can use this style when designing its model of
 the trucks and engines at work because the team needs to have a
fixed agenda and strive to achieve it by creating unique designs
of the trucks which is better than competitors.
2. Commanding: The main objective is to make sure employees
are following the rules and working as per the criteria. This
leader will provide its team with a lot of directions controls and
monitors their work closely and relies on the negative aspects to
ensure nothing will go wrong when achieving the target.
However, this style will fail if the team has highly skilled staff
and the leader does not seek for inputs, which can be a
demotivating factor for the employees.
3. Visionary: The primary objective of this style is to provide a
direction and vision to its employees and inspiring them. In this
style the leader creates development strategies and effectively
communicates the vision so that they know how the tasks are to
be done. Make the vision resonate in the thoughts of the
employees so they are aware on how to achieve their targets but
if the leader is considered as not being credible then this
leadership style will not function properly because then
employees will feel they are aware about the organization more
than the leader and wouldn’t listen to them which would hamper
their productivity.
4. Affiliative: The purpose of this style is to maintain good
relations and synchronization between leader and the
employees. The leader concentrates on the employee more than
the task, understands their needs and requirements. This leader
rewards its employees on completion of the project to keep them
motivated and engaged. They prefer to maintain good relations
with the team members and understand them instead of just
focusing on the task but this style would fail if the leader is not
empathetic towards team members.
5. Democratic: The leader believes in working together. The
objective of this style is to build commitment and bring new
ideas and this is done by including employees say in the
decision making so that they are free to give their suggestions
and ideas but this style is difficult to maintain if the team
members are not participative.
 6. Coaching: The main objective is to develop the individuals. The
leader encourages employees to identify their strengths and
weaknesses so that they can make themselves competent and
gives continuous feedback to achieve the targets and helps them
in doing tasks but if the leader lacks coaching skills and fails to
give direction to the employees.

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