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Approaches To Leadership In Tata Group Management Essay


Leadership can be an integrated part of our life. According to corporate key and former All of us presidential applicant Ross Perot, "the rules of leadership are ageless because, in a speedily changing world, real human nature remains a constant". Most of us experience leadership in our life from early on childhood in our households, through friendships, interpersonal & athletics, school & advanced schooling, in politics, in authorities and undoubtedly inside our work. Most of us recognize authority in other people and often in ourselves. In federal, global firms and smaller businesses alike, the authority role is becoming more strenuous, more available to scrutiny and more difficult [Gill, R. 2006].

The development of management theory also parallels the introduction of organizational theory. The bureaucratic form of business organization is characterized by 'laissez-faire authority' - whereby so-called leaders have a tendency to avoid going for a stand, dismiss problems, not follow up, and refrain from intervening - or transactional authority, in which market leaders practise management by exception, concentrating only on deviations from what is required, and contingent incentive, worthwhile people (either materially or psychologically) for achieving what is required. The emergence of the post-bureaucratic form of corporation in the later nineteenth century reflects the introduction of the concept of transformational management [Gill, R. 2006].

Theory & Approaches to Leadership:

Many Leadership theories and approaches have been progressed around Style, Characteristic, Behavior, Situation and Charisma. Many experts made attempts linking these ideas across these management techniques. However, each authority model has its merit, assumptions and limitations. Most recent researches are conducted on Situational & Transformational control styles. Various command Gurus presented new models as variants to the already existing models. Utmost Weber, MacGregor, Bass, Bennis & Nanus are a few of the most important researchers in the area of transformational command. The difference between transactional and transformational command is vital in getting the whole idea of transformational command theory. Generally, a relationship between two different people is based on the amount of exchange they have. The greater exchange they have got the stronger the relationship. Manager's expects more productivity from employee to be able to give good rewards. In this way, if something is done to anyone predicated on the go back then that connection is named 'Transactional' type. Running a business, leaders declare rewards subsequently to the production. These relations are all about requirements, conditions and rewards (wordpress. com).

In our life at various phases some things are happen with no expectation from other area e. g. mother's love for her babies. That is one for of transformational methodology. Transformational Market leaders work toward a standard goal with supporters: put followers in the front and develop them, take fans to next level, inspire supporters to transcend their own self-interests in attaining superior results (wordpress. com). Here we discuss the many forms of command and Table 1, given below shows how Bass's full range model of management works [DBS Notes].

Table 1

By learning the evolution of leadership procedure of the TATA Group, an in-depth evaluation of importance of leadership model is given now onwards.

Leadership Way in TATA Group:

TATA Group founded in 1868, is an Indian multinational conglomerate headquartered in Mumbai. The Group has over fifty percent million employees multiply across over six continents (more than 100 countries) and is the greatest private commercial group in India. The estimated market capitalization of the group is worth $80bn. It is the biggest employer in UK as well, using more than 50, 000 people. They have main pursuits in communications, IT, engineering, materials, services, energy, consumer products and chemicals. Its present chairman, Ratan Tata is the most important business leaders in India. He is also one of the world's most important people according to Forbs newspaper. The Group is known for ethics and value based business strategy.

Evolution of Command in TATA Group:

Under the management of the Ratan Tata, the Group has included more control changes that have been essential in current environment to operate a vehicle towards to be more competitive. In conditions of command style, the Group has implemented a team-led culture and collective work approach. Trust became a major factor and theme of the group. Ratan has put an entire organisational restructuring, since he became chairman of the group in 1991, by taking a more matrix-style procedure building groups. These changes have altered a great deal in the group business, older managers need to be on their feet and flexibility and adaptability became essential characteristics to acquire. The leadership modified from a centralised, command word centre to a more allocated form with employees and all managers enjoying greater responsibility and knowledge, which motivated those to work harder as an organization.

From more developed leadership models like the McGregor Theory X and Y; in which the theory X administrator believes staff dislike work, are not creative and prevent all responsibility whilst the idea Y manager feels that staff get all the enjoyment from work as they can derive with leisure, accept responsibility and be creative. Theory Y strategy has been adopted by the Ratan Tata. He desired all his professionals to be modelled as meticulously to Theory Y and he himself could be called a Theory Y facilitator. He encourages managers to become more innovative and talk about all their ideas, consulting actively with them and giving them more responsibility and importantly motivating team-working.

Five Factor Control Model:

Emotional Steadiness: Ratan has very low panic within him and has great sense of security with his future control.

Extraversion: Even being a bachelor Ratan is very sociable. He has produced very positive have an impact on on future management of the Group.

Openness: He believes in originality and flexibility. By making 1200/- car he has shown his great interest with and development seeking personality.

Agreeableness: Within his management team and outdoor world, Ratan is well trusted and incredibly friendly.

Conscientiousness: He's very dutifulness. He put in almost all of his life working for Group without having any self-interest. He leads a very well organised life.

Style (Behaviour) Theory in TATA Group:

As per style theory, there are three kind of control models are available in literatures. They are as given below.




Ratan Tata is a head who engages in more democratic design of leadership methodology and once in a while shows the other two control styles as well. He is more democratic because he always induces his group authority to be creating good communication and involvement. The budding command are well informed about group future strategy plus they are incredibly well employed in decision making process. A lot of the group long-term and short-term strategies are produced by the lower get ranking of the leadership and are cured as stake holders. Ratan has occasionally shown some in short supply of autocratic style of management. Sometimes when needed particularly when quick and educated decisions have to be taken, but he is never too commanding in his dynamics, being a man of few words and being more of a guy of action. This is evident from the way in which he aggressively pushes for vivid international offers, such as during the global acquisitions of business powerhouses such as Corus, JLR, and Tetley. One of is own senior leadership associates, Muthuraman refers him "Ratan was the chief architect of the Corus offer. I was worried about the magnitude and the money. But he instilled self-assurance. "

In day to day routine things and in expanding the authority, Ratan also uses the Laissez-Faire model including the delegation of important obligations and decision-making, he also do not hinder any manager's performing, he could make a broad strategic examination but he will not interfere in operational issues and details, which shows that he has his trust and trust in his managers and believes in their capability. Another quote from Gopalakrishnan, an executive director of the business, expresses how much value Ratan places on his trust, this is highly motivating for managers and workers equally, "I remember what Ratan advised us at a meeting. He said that he will continue to trust all his managers, but once they lose that trust, he'll follow them. I feel that is a very fair deal. "

Max Weber's Management Model in TATA Group:

Looking at Maximum Weber's Transactional and Transformational Authority models, where leadership is classed in three forms, Bureaucratic, Charismatic and Traditional, where a Bureaucratic leader is one who is always destined by the set rule rather than exceed them; a Traditional leader is one who does and follows everything from a history and always loyal to follow these 'customs and a Charismatic head is one who uses his own wit or capabilities to inspire and is also one who serves as a radically opposed to administrative guidelines and set ideas. From these models, Ratan Tata falls in to the Charismatic form because he is person who leads by example, coming up with highly ground breaking ideas such as 1200 (Rs. One Lakh) car the 'Nano', budget hotels or low-end wrist watches, he helped bring radical change to the Tata Group as a whole, changing it from its 'Traditional' way of thinking to new more versatile and adaptive ethnical mentality in global world.

Bennis & Nanus Transformational Leadership Model in TATA Group:

We can see from Bennis and Nanus's Transformational Leadership model that the transformational leaders groom their followers into self-empowered leaders and their main concentrate is to articulate vision and values clearly so these self-empowered market leaders know where you can go. Their attributes include logical thinking, persistence, empowerment and self-control. Benniss and Nanus has advanced the model which emphasis on the four I's of Transformational leadership, which are

Idealised Effect (being a role model)

Inspirational Drive (making a team nature, motivating and offer a concern)

Intellectual Stimulation (invention and imagination)

Individual Factor (mentoring and providing support for supporters)

Ratan Tata has been demonstrated a genuine transformational leader. We can see all I's built-in in Ratan Tata. He's the leader with great eyesight hence he knows right approach to groom future leadership. He has generated the team nature in whole group at every level. He has empowered all his managers and executives and has complete trust in them. He is extremely innovative and is also credited for a lot of the Group's new products; he places significant amounts of importance to his R&D division. He deeply cares about the welfare of most his employees and managers. Through the Mumbai's terrorist invasion in Taj Hotel (belongs to TATA Group), he got front range in leading at the time of crises. In his authority affirmation he articulated "A hundred years from now, I expect TATA Group to be much bigger, of course, than it is currently. Best in the manner where we operate, best in the products we deliver and best in our value system and ethics. " [tata. com]

As a innovator of a global business group, Ratan, has learned the brutal competition experienced by group business empire. He put a whole lot of effort in making his business competitive at global level. Through transformational command process, the group has made their operations and technology up to date. Ratan Tata said to his managers in his leadership speech "An organization or business which remains static is a business that will pass away; a firm that constantly changes and accepts that there are better ways to do things than the way they can be done today, is a company that will survive in the global market that people face. " Out of this affirmation we can infer that he understands the importance of creating a good leadership within group to use Group to new heights. Ratan, entails strategy in authority. He's a deep thinker and an excellent strategist as is explained by one of his Professional Directors, Alan Rosling, "He is a deep thinker and extremely strategic. He's always 2-3 steps ahead". Ratan Tata is a guy of strong integrity, ethics and respected ideas. He cultivated the same over the Group companies. One of his companies CEO said "Tata shows that there surely is no alternative way he will do business other than undertake it ethically. " He feels in strong value based mostly leadership way in conducting business. Ratan Tata has led the TATA Group to changing from local business group to become global head.

Leadership Development in TATA Group:

TATA Group has long ranking leadership program in-place. Their management program is based in English Administrative Service model. Group's control development programme aims at grooming the professionals of today in to the leaders of tomorrow. The control development programme conceived by JRD Tata, the past due chairman of Group in 1950's. The theory behind the management program known as Tata Administrative Services (TAS) was to select and groom young professionals, provide them opportunity for professional progress, and make them leaders of tomorrow. That is TATA's in-house program and has goal is to provide training to high performers, act as a cradle of change and develop the command qualities. Most of the Group companies are traditionally led by these in-house groomed leaders.

Cons in Authority Development in TATA Group:

Although Ratan Tata has been very successful in leading the group to a new height, but as in case there is every management he lacks in several areas, these areas includes his successor and integration of his own companies in smaller numbers. Due to large number of companies within group, there is certainly chance of internal conflict between its companies leadership. There were conditions when the Ratan Tata's authority has been ineffective in working with some critical situation. Ratan Tata will be retiring next 12 months and the group continues to be battling to get his replacement unit. He made himself bigger than the group all together. A lot of the group authority hover around him and whole leadership has become Ratan centric. Because of recent rip-off in 2G spectrum allocation in India, the group reputation has been affected severely. Its few of the top authority were involved in different scams which could prove detrimental to group business in future. Furthermore TATA Group management lacks international flavour. This could be a significant hindrance for the group in learning to be a major global player.


Ratan Tata has transformed TATA as global brand under his command. He has generated a ranking of control to whom he can certainly pass the control baton. Grooming 98 CEO/MD (TATA Group has 98 companies in its group) is a challenging job where Group has been very successful up to now. He has provided motivation to market leaders within his own company. Ratan Tata has efficiently led and motivated its CEO/MD of the group companies to be ambitious. Ratan Tata has implemented a management by consensus style. Leading a big band of companies in current business circumstance of changing legislation, increasing competition and global market is actually a tough challenge for most business leaders. Leading the business through these tough times and growing multi-folding earnings could be a dream for many business leaders. Obtaining this requires clear eyesight, innate conviction, capability to inspire and guide on the way. Ratan Tata set up himself to be the right head that has helped the business sail through the turbulent waters and reach the required lands.

Appendix: Research List

DBS Managing People Lecture Notes

Roger Gill, "Theory and Practice of Management", Sage Publication, 2006

Robins, S. P & Judge T. A (2010) 10th Model, Basics of Organizational Behaviour, Pearson, ISBN 0-13-815763-4

http://leadershipchamps. wordpress. com/2008/08/04/transactional-leadership-vs-transformational-leadership/

http://business. outlookindia. com/internal. aspx?articleid=682&editionid=22&catgid=70&subcatgid=464

http://www. tata. com/company/Articles/inside. aspx?artid=YJbf7uiUY0M=

Visionary Authority: Setting up a Engaging Sense of Way for YOUR COMPANY (Jossey Bass Business and Management Series): Burt Nanus

Tata Group - Total annual Studies (1991 -2011)

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