Leadership Incubator

RATAN TATA: ETHICAL

LEADERSHIP

Presented By: Group-2

Ankit Gautam
 HISTORY AND EVOLUTION OF TATA GROUP

 The Tata group was founded by the visionary Jamsetji Ji Tata in 1868

 Operating in various sectors Shareholding Pattern of Tata Group

 Laid the seeds of an iron and steel company, a hydroelectric plant, and
an academic institution of higher learning

 The Tata group had several illustrious and visionary leaders, including
J.R. D. Tata and Ratan Tata under whose leadership the revenue of the
Tata group crossed the US$100 billion

 The Tata group was controlled by Tata Sons (formerly Tata & Sons),
which held stakes ranging from 25 per cent to 75 per cent

 The largest single shareholder by Pallonji Mistry with 18% of the equity
Tata Trust Others
 The trusts contributed a great deal to society Mistry Family Tata Companies

 Tata Consultancy Services being one of the major contributors

RATAN TATA’S UNIQUE PERSONA

 Ratan Tata joined the Tata group in early 1962 at the invitation of J. R. D. Tata
 He is known for his humility, and there are countless examples.
 He inspires people. Tata does well because its employees and management
adhere to its values.
 He is a visionary. When he joined the group, it was barely doing any business
outside India.
 He effectively manages multidimensional diversity in his group
 Leadership style is more a charismatic and transformational style of
leadership. Ratan Tata is a farsighted leadership who work with the goal of
transforming their corporation
RATAN TATA’S HIERARCHY LEVEL OF LEADERSHIP

 Ratan Tata leadership style is of level -05 of hierarchy

 He follows people first and strategy second, in case of TELCO strike where he put emphasis towards
work engagement and framing policy which are employee oriented which applies level-05 hierarchy
level of leadership
 He creates competition among different companies of Tata and very he sensitizes to achieve high
stand of governance, services and quality this was a breakthrough by Ratan Tata during his tenure.
 The Ratan Tata was always ethical and value-driven, even at the cost of the group’s growth because
even Nano project was making loss but still he kept his promise
Core Purpose To improve the quality of life of the communities they serve
globally ,through long term stake holder value creation based on leadership with trust

Core Values Three core values :Trust, Reliability and Commitment

Mission similar to core purpose

CHALLENGES UNDER RATAN TATA’S LEADERSHIP

Turning around of NELCO and Central

India Textiles

1983 Tata Strategic Plan

Industrial Unrest at TELCO, Leading to

strike
TATA GROUP’S ACHIEVEMENTS UNDER RATAN TATA

 Unifying the Tata Group

• When Ratan Tata got responsibility of Tata group in 1991, it was not a cohesive group but a loose
confederation of companies.

 Reforms taken by Ratan Tata for Unification:-

• Retiring chief executives who had a personalized style of functioning
• Restructuring the Tata group and disposing of companies that were not
performing well
• Creating the Tata group identity
• Rebuilding group culture and restoring integrity
• Increasing the shareholding of Tata Sons to 26 per cent
• Key focus on governance, service and quality
• Bonding the Tata group through the Tata brand
CONT’D….

 Delivering on Promise: Nano, the Common Man’s Car

• Ratan Tata wanted to make a car “The People’s Car”

 Exercising Greater Control through Increased Shareholding

• Increasing the shareholding of Tata Sons in the group companies to at
least 26 per cent or more

 Restructuring the Tata Group of Companies

• Ratan Tata reviewed the performance of the Tata group of companies
• Restructuring the business operations was based on criteria such as a
company’s ability to be in the top three in its sector, its ability to
compete globally, and its profitability
• Get rid of businesses that no longer fits the corporate vision, could not
yield adequate results
 CONT’D….

 Creating the Tata Corporate Brand

• Introduction of unified brand mark • Royalty of 0.25 per cent of its revenue or 5 per
cent of its profit before tax but not exceeding
• Names of group companies, such as TISCO and ₹750 million
TELCO were changed to Tata steel and Tata
Motors
• Group companies were allowed to use the Tata
name and trademark only if they met certain
terms and conditions, and signed the Tata
Brand Equity and Business Promotion
Agreement
• Adherence to the Tata Code of Conduct and
Tata Business Excellence Model
 QUALITIES OF RATAN TATA

 True Visionary
 Initiator
 A man of values
 Good at handling human relations
 Firm and determined leader
 Creative and Innovative
“Apart from values and ethics which I have tried to live by, the legacy I would like
 A good strategist to leave behind is a very simple one – that I have always stood up for what I
 Risk Taker consider to be the right thing, and I have tried to be as fair and equitable as I could
be.”
- Ratan Tata
(Transformational Leader)
CREATING THE TATA CORPORATE BRAND

 In 1998, Tata Sons introduced a uniform brand mark with a single typeface for the
Tata name and a stylized T inside a blue oval:
 To make the Tata name more visible
 Connection clearer

 Companies owned by Tata Group needs to adhere to:

 Tata Code of Conduct
 Tata Business Excellence Model
 Reflects the same tradition of trust, leadership and integrity

 The Brand Finance Global 500 March 2010 report listed the Tata brand as 65 th, with
a valuation of US $11.2 billion and was perceived as:
- Honest, fair, exciting, connected to the people and reliable
- Good organization with good people
TATA GROUP PURPOSE AND CORE VALUES

 Tata group was always known in India for its values of

trust, reliability, service to the community and nation
building

 Core Values:

 Integrity

 Understanding

 Excellence

 Unity

 Responsibility
DIFFERENCE AND SIMILARITIES BETWEEN RATAN
TATA AND TONY HSEIH PERSONALITY TRAITS

 Similarities:-

 Both of them have charismatic leadership style

 Both of them passed from Harvard and have entrepreneur skills

 Both of them follows transformational style of leadership

 Both of them are people oriented more than strategy oriented

 Dissimilarities:-
 Ratan tata has legacy to maintain however Tony Hseih made his own legacy by
developing business from scratch