Ratan Tata: Leading the Tata Group into the 21st Century
1. The Tata Group has been transformed from a risk-averse, slow-moving giant into a more dynamic and aggressive conglomerate. How much of such a transformation can be attributed to one individual? Discuss the role of the leader in initiating and managing change.
Answer
The Tata Group transformation can be greatly attributed to the vision and execution of Ratan Tata. He was greatly responsible for the tremendous transformation because he was able to take his vision for the group and transformed it into a reality. By enforcing a mandatory retirement age policy which removed a lot of top management, who were challenging the core functions of the group and hindering growth, Ratan
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2. The Tata Group had a presence in a wide range of businesses wince its early days. Later, rattan Tat managed to streamline the Tata Group. What advantages and disadvantages did the group gain through the streamlining of business? Do you think, as of 2009, the Group is still present in too many businesses?
Answer
There were a total of 84 companies in several industries under the Tata Group in the early days. With the vision of the new leader, he realized that there was a lot of irrelevant businesses in the group that did not contributed much to the group’s profits and as a result he streamed line and exited a lot of the industries in which the group was not doing well, in order to accomplish his vision and goal and make the group stronger. In my opinion, this was a good move as the benefits outnumbered the disadvantages. The stream lining made it possible for the group to manage the companies easier. In addition, they were able to cut costs by having a smaller workforce and fewer overheads. Importantly, they improved productivity in the group by eliminating some unnecessary ventures and focusing more resources in certain areas, thus improving revenue. Finally, they were able to gain profits from the sale of some companies. On the other hand however, this stream lining caused many individuals to lose their jobs, resulting in a lot of homes having decreased incomes. There were also a lot of
Transformational leadership was defined by Mr. Burns as, “those who seek to change pre-existing thoughts, techniques, and goals for better results and the greater good.” Transformational leaders practice working to change the political system, reforming past experiences from other leaders to devise a solution for a need, comprehending what needs to be changed for the greater good, and establishing an infrastructure that develops high quality and quantities of team members. Dissimilar to the transactional leadership style, transformational leadership uses motivation and empathy in order to develop an infrastructure of effective members to change the worldly issues. Transformational leadership is also known as the “selling” style of leadership due to its ability to influence people to do what the leader is asking of them. A prime example of a transformational leader is John D. Rockefeller, who is the founder of Standard Oil. What made Rockefeller’s oil enterprise successful was his ability to empathize with other employees, and then set his and the entire workforce of the company’s minds upon one simple vision. One of his most renowned quotes also describes his ability to carry out his transformational leadership lifestyle. This quote is, “Good leadership consists of showing average people how to do the work of superior people.”
The Tata group’s core purpose is to improve the quality of life of the communities it serves globally, through long-term stakeholder value creation.Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise headquartered in India, and comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata companies have operations in more than 100 countries across six continents, and export products and services to over 150 countries. The revenue of Tata companies, taken together, was $96.79 billion (around Rs527, 047 Crore) in 2012-13, with 62.7 percent of this coming from businesses outside India. Tata companies employ over 540,000 people worldwide.Good corporate
Additionally, to connect the follower's understanding of identity and self to the mission and the collective identity of the organization. That quality of the leadership should develop more. I inspired by the transformational leadership acting a role model for followers that inspires them; challenging followers to take greater possession of their work, and recognizing the strengths and deficiencies of followers, so the leader can join followers with tasks that optimize their performance. By developing and encouraging the members to take the responsibility that is an indication of developing leadership in case of uncertainties. Therefore, that leads to decentralization of responsibility, competence to gamble. So transformational leaders, encourage members to transform their self-interests for the advantage of the company. They change members' understanding of obstacles by supporting them to look at old intricacies with new solutions; and they can excite, arouse, and inspire followers to put out extra effort to achieve group
Leadership is a fundamental aspect of an organization. A good leadership approach that suits the organizational will determine and indicate how successful the company will be in dealing with challenges that the organization may encounter whether internal or external. One such type of leader is a transformative leader. Transformational leadership is distinguished by its capacity to promote the idea of “innovation and change. Transformational leadership is a manner that encourages subordinates to excel in performing their job and to move far beyond their personal goals and attain targets that benefit the organization as a whole. The literature has proposed that there is a solid correlation between transformational leadership and followers performances.
Ratan Tata oversees a conglomerate of nearly 100 individual companies that include hotels, telecom, steel, consulting, cement, software and automobiles. The conglomerate is known as the Tata Group. Tata, now in his 70s, began working for his family business in 1962 after with an architecture degree from Cornell University. The Tata Group began in in the 1870’s with Ratan’s great-grandfather. His grandfather was always concerned with the welfare of his fellow Indians. When Jamsetji Tata opened his first textile mill in India, he did so in part with the intent that he would help to liberate Indians from their dependence upon England. India, at that time, would mill the cotton and then send back the finished cloth to Britain. Jamsetji Tata was also instrumental in offering benefits to his employees in a time when this was not common. He made sure that pensions and child care were available to his workers. Workers in America and Europe, for the most part, were still lacking these benefits.
Transformation is the discontinuous, step-function improvement in key results which helps in areas that are required for business success (Hacker & Roberts, 2003). A transformational leader is the perfect fit for organizations worldwide (Hacker & Roberts, 2003) Envisioning the need for transformational change is the primary concept of the leader’s team
To begin with this essay is to document a critical evaluation to prove that transformational leadership styles have a major influence on the employee motivation and organisational culture, hence influence the long term success of the business. A number of key leadership styles, together with the transformational leadership will be discussed and linked to real business-world examples.
Chapter 7: Merger and Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock)
Tata Motors Limited is one of the India's largest multinational automobile manufacturing company with 42 billion USD turnover. The company is a leader in development of commercial vehicles, such as sports vehicles, trucks, defense vehicles and cars. Tata Motors is part of the Tata group of companies founded in 1868 by Jemsetji Tata. The company is mainly located at India, Italy, Korea and UK. It has sales in more than 175 countries around the globe.
Tata Group is an Indian multinational host company based in Mumbai, Maharashtra, India. It was founded in 1868 by Jamshedji Tata and gained international recognition after purchasing several global companies. It is one of India 's largest conglomerates.
which were running independently. Rata Tata believed that a change in leadership style was required
Ratan Tata took control as Chairman of Tata Industries in 1981. Here, he was in charge of advancing new ventures in high-innovation organisations. Later in 1991, he took over as the gathering Chairman from J.R.D Tata. It was then that he pushed out the old monitor and introduced youthful supervisors. As far back as then, Ratan has been instrumental in reshaping the fortune of the Tata Group. It is simply because of his vision and true exertion that today Tata Group holds the biggest business sector capitalisation than whatever other business house in the Indian Stock
This quote by Jamsetji Tata explains why the Tata group was so successful throughout history from a simple trading company to a global conglomerate which makes more than makes more than US$ 103.27 billion (2014) and employs more than 580,000 people throughout the world.
Since its establishment, Tata has shown a strategy of incremental change. Arguably, that point was important because so the group might vary within the current market. In the nineteenth – century steel was seen as an unprofitable section. Even more than 50 independent steel producers went into bankruptcy in the USA (Business Monitor International Ltd, 2010: 54).