Ratan Tata is one of the biggest business tycoons. He was born in Surat in India in the family of Naval Tata who was adopted by Jamsetji Tata. He has two brothers Jimmy and another step-brother Noel Tata (Ray and Ray, 2011). On one program at Britain, one scholar said that the country which has steel has the gold. This statement has marked an impression on the mind of the Jamsetji Tata. At that time Jamsetji is known as one of the strongest business family of India and had decided to give life to his impression but was not able to put it for long journey (Sivakumar and Rao, 2010). This dream was taken over by Rata Tata.
Very Few leaders have created an impact on not only their native country but also on the global platform. Ratan Tata is among one of them. He is that person who has introduced the concept of strong will and humanity together in the business world and made the world focus on sometimes it is better to keep humanity above business (Duysters et al, 2009). It is the Ratan Tata who has taught the world exact meaning of ethical leadership and why it is necessary to keep on trusting your employees. He is such a dynamic personality who has taught the world why we should not oppose change and what are the benefits of introducing change in the business process (Grosse, 2012).
Ratan Tata has completed his earlier education from Campion School, Mumbai. Then he went to the United States of America to complete his B.S from Cornell University in architecture with structural engineering. After completing his B.S, he got attracted towards management program because he came to experience that one should have additional educational to compete with this changing world. At that time the world has gone through a drastic transform (Rocci, 2015). Hence he went to Harvard business school in 1975 to adopt this competency by completing advance management program. Finally, in 1962, Ratan Tata started his career journey with Tata steel section in which he worked as stone shoveler in association with blue-collar employees related to furnaces. It was not an easy task for that person who is actually the future owner of that come. Even though Rata Tata had done it with lot of effort because he believes that if we want to learn something, it is always better to start with the basics (Ganguly, 2009). He believes that strong basics acts as the foundation of any business and helps in growing further more and more.
During 1970, National Radio & Electronics Company limited was going through financial crisis and its management was proven to be a complete failure. In order to save this company from becoming bankrupt, National Radio & Electronics Company limited has appointed Ratan Tata as the director. Through his hard work and lot of effort Ratan Tata has finally brought NRECO from near to bankrupt to a profit making company (Srivastava, 2012). Seeing his achievement he was moved to Empress Mills which was going through the same phase. Ratan Tata has proposed a plan for this mill but was his plan was rejected by executives of that Mill which resulted in the shutdown of the mill. Then in 1991 seeing his passion and management vision Tata Group appointed Ratan Tata as the new chairman of the group. This decision was gone through various objections because the executives working in the group believed that Ratan Tata has not enough experience to handle this group and some have their own motive behind opposing this decision (Kakani, Ram and Tigga, 2009). But to their surprise, he proved every executive of the group wrong and brought Tata group in such financial platform on which nobody has ever imagined. He actually made everyone in shock through his capability and dynamic skills. He completely transformed that whole management into new vision management with significantly needed changes. Prime Minister`s Council on Trade and Industry has made him head by seeing his dynamic personality. He believed that people should not stop working; they should go one putting more efforts at every consecutive step of success so he invested in many companies in the partnership like JP Morgan, Mitsubishi cooperation, American International Group etc. His outstanding work and effort has given Tata group recognition on the international level and also Tata group’s financial success have brought the group to get listed in New Yoke Stock Exchange (Oke, Munshi and Walumbwa, 2009). He is among one of the unique personality of the world that has invested additional than 65% of part in generous trusts. One of his important aims for his life is to improve the living standard of the native countries citizen. This shows his concern towards the social issues of the country. He purchases the Corus when it was in financial crisis in which thousands of workers were going to become unemployed. Feeling the situation and the future of these employees on which their family living hood was dependent; he purchased the company and converted it into one of the profitable company.
As per his words, there is nothing ahead above the humanity in this world. His move has shocked many international business families and had appreciated the step taken by Ratan Tata which has increased his followers not only in his native place but also in the global platform (Klosterman, 2009). Ratan Tata has been honored by many prestigious awards like Padma Bhushan, Padma vibhusan, Medal of oriental republic of Uruguay, Fellowship of the London school of economics and political science, award of Grand Officer, Honorary knight commander of the order of the British empire, Oslo business for peace award from many countries of the world for his great contribution for business and social reformation of the community.
Tata Group has adopted new management culture under the new leadership style of Ratan as the head of the administration of the whole Tata Cluster which has altered; faith developed a vast surface and melody of the cluster. Ratan Tata has placed the whole managerial rearrangement when he over took by winning an extra matrix-style method formation groups (Cappelli, 2010). These alterations would must apparently malformed a lot in the corporate, high-ranking executives would obligate to be on their respected toes and litheness and malleability became have important abilities. As leadership transformed from a chief expertise unit to an ample extra dispersed form with workforces and each managers relishing better accountability and awareness around the cluster, which must in turn; driving them to work tougher in the form of a group (Bel, 2010). From eccentric leadership styles accessible like the McGregor Theory X and Y; where a theory X executive considers workforces hate effort, are not innovative and evade all accountability while a theory Y executive considers that employees get as ample pleasure from effort as they can originate with freedom, receive accountability and are innovative; it can be understood from this, that Ratan required all his executives to be demonstrated as watchfully to Theory Y and he himself might be named as Theory Y executive. He fortified executives to be creative and express all their thoughts, consulting vigorously with them providing with extra obligations and significantly fortified team-efforts (Hang, Garnsey and Ruan, 2015).
Five Factor Model (Big Five):
Emotional Constancy: Ratan Tata shows actual little nervousness inside him and has countless wisdom of safekeeping with his upcoming management.
Extraversion: Ratan Tata is a unmarried man even then he is very generic. He has fashioned a very optimistic mark on upcoming governance of Tata group.
Openness: Ratan Tata trusts in novelty and adaptability. He has proven to the world that if we have an interest in innovation and believes in technology, we can make £1200/- car (Nano).
Agreeableness: Ratan Tata has created such a working environment, in which his team members have great trust in him and are expressing themselves friendly.
Conscientiousness: Ratan Tata is very responsible. He has served Tata Group from almost decade of his life without having any self- interest. He believes in the good company both in personal and professional life.
Behavior Theory that Ratan Tata has used:
For Behavior theory, here are three kinds of management styles are apparent in leadership. Given below are these kinds.
Ratan Tata is a frontrunner who involves a new democratic pattern of management method. Though at previous time has utilized other two patterns of pattern as well. Ratan Tata is extra democratic because this person constantly inspires his cluster management to be making moral message conveyor and contribution. Prospect management is well known about the upcoming plan and are very well involved in choice creation procedure. Each of the long-term and short-term plans is framed by the junior position of the leadership (Grosse, 2012). Employees are more likely framed as stakeholders under the leadership of Ratan Tata. Ratan Tata has infrequently revealed particular form of an autocratic pattern of leadership. Occasionally when wanted rapid and well-versed choices must be chosen, but he is not always too forceful in his personality, being speaking very rare and being novel action man, this is marked from the method that he antagonistically thrusts for bold global transactions, such as through the international purchase of corporate dynamos such as Corus, Jaguar and Land Rover, and Tetley Tea (Pio and Syed, 2014). Muthuraman one of his high-ranking leadership team associate refers Ratan Tata as the chief draftsman of the Corus deal. He also said that we all were nervous about the size and the quantity of money. But Ratanji was fully confident.
In regular schedule and in evolving the management, Ratan Tata practices surfaces of the Laissez-Faire pattern as the allocation of significant obligations and choice-making. From start of his life,he also believes in not interfering in any executive’s operative, he may form a comprehensive strategic valuation but he never hinder operational problems and particulars, this indicates that he has comprehensive belief and confidence in his executives and trusts in their capability, Gopalakrishnan, a managerial director of the organization, demonstrations how abundant worth Ratan Tata spaces on his faith, this can be extremely inspiring for executives and employees (Crainer, 2010). Ratan Tata has clearly said that he will keep on trusting on his executives until they will not break his trust. Once they have done it, he will go after them which seem to be very fair.
Watching at Max Weber’s Transactional model and Transformational model Management, where a front-runner is categorized in three kinds that are Bureaucratic, Charismatic and Traditional, in which bureaucratic forerunner is that person which is continuously held by the fixed law and does not think to cross these rules; a Traditional leader is that person that follows the whole lot from a long past and continuously faithfully follows these customs; a Charismatic leader is that person which utilizes his personal achievements or capabilities to motivate and is one that can be defined as fundamentally opposite to managerial instructions and lawful principles (Singh, Bhandarkar and Jain, 2010). From these prototypes, Ratan Tata comes into the Charismatic section because he is that person who pointers by example, he came up with the high-level innovation by introducing the world with only £1200 car the ‘Nano’, economical hotels or economical watches, he carried far-reaching change to the whole Tata Group by transforming it from traditional culture in to new flexible and innovative working culture.
As per Bennis and Nanus’s Transformational Leadership model it can be said that the transformational frontrunners develop their followers into self-determination frontrunners and their key attention is too eloquent idea and morals evidently so that these self-determination leaders are aware with the destinaion (J.Contractor, 2013). Their personalities comprise reasonable thoughtful, tenacity, authorization, and self-discipline. Both have developed the pattern which stress on Transformational leadership`s four I’s, which are
Ratan Tata the former head of the Tata group has showed an exact transformational leader. It can say that all I’s belongs to Ratan Tata. As he is the person along with countless vision hence he is aware of the right method to prepare upcoming leadership. Through his life he has applied the team soul in the entire cluster at each level of the company. Further he authorizes all executives and managers and has full confidence in all, he is enormously creative and is recognized for most of the company`s fresh products, he values a great deal of significance to R&D section and he absolutely upkeeps intensely about the well-being of all his workforces and executives (Sarkar, 2016). After the terrorist attack in Taj Hotel in Mumbai, he re-stands his all employees at the period of crises. In his vision declaration, he expressed “I want my group to be one of the best group in India and should be better from its past in which he is very successful. Finest in the Way in which we function, finest in the products we distribute and finest in our worth arrangement and ethics. He clearly triggered that hundred years ago the group has started spreading its wing from home country to develop a worldwide group, functioning in numerous countries, as Indian occupational corporation that is at home-based in the world, resonant the similar set of faith as we do nowadays (Burnes and By, 2012).
As a frontrunner of an international corporate group, Mr. Ratan recognizes the aggressive rivalry experienced by his corporate empire. He has put all his effort to make his corporate modest at international level (Barick, 2017). Although transformational leadership procedure, Ratan Tata has made their groups procedures and technology upgraded. Ratan Tata has clearly stated in his change statement that a company who still working on the traditional process is going to die soon as compared to that company who welcomes changes and see it as an opportunity to become more competitive for international business operations (Shah, 2010). It can be said that Mr. Ratan recognizes the significance of evolving a good leadership within the cluster to take Tata Company to new levels. As said by Alan Rosling (executive), “Ratan Tata is a deep thinker and extremely strategist so he can see the future clearly. He is continuous steps forward”. Ratan Tata is a personality of extreme honesty, morals and respected principles. He cultured the similar thinking through the Tata group company. As per Ratan Tata there is no other way of doing business, just do it in an ethical way (Mishra, 2012). He has faith in robust value-based leadership method in doing business. It is the true capability of Ratan Tata`s leadership that he is able to help in transforming from a domestic business group to become a worldwide leader.
Conclusion
As the world is changing, the positions of the companies are in the dynamic mode in which they are going up and down. Hence to handle this problem such a leader is required which can operate in all situations by utilizing the all pattern of leadership according to his capability to keep on running on the success track. It simply focuses that there is no particular leadership style to successfully run a business operation. It is totally dependent on the leader which style he feels better with respect to the situation. It also focuses that if a company has to perform better in this business market, the employees should be given a family type in which the employees have a unique motivation, teamwork and are free enough to express their feeling related to any topic. It is not that only followers should trust the leader, it is also the responsibility of the leader to show trust in their followers and give them the freedom to take necessary decision on their related position. The leader has responsibility to keep their company at a competitive level and for this leader should not fear in taking bold steps which will ultimately benefits the company in long run by introducing the new strategy of innovative thinking, creativity and keep operation on the foundation of ethics because as per Ratan Tata the simplest way of doing business is just following the ethics in business process. As ethics not only impacts the professional life of a person but it also has a huge impact on the personal aspect of the person. As per Ratan Tata, one of the most important things which drive our life is having a vision because it provides us the necessary motivation which leads us towards our goal. The leader should not fear to take decisions out of the box because if they fail at least they can guide followers through their experience.
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