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NOVEMBER'22

ANALYSIS OF ORGANISATIONAL
LEADERSHIP AND STAKEHOLDER
MANAGEMENT
&
MY LEADERSHIP REFLECTION AND
PLAN

PREPARED FOR TATA STEEL

PREPARED BY
DEVENDRA KUMAR RAI
222064062
M707
Master of Business
Administration (Global)
PART 1: ORGANIZATIONAL LEADERSHIP AND STAKEHOLDER MANAGEMENT
Introduction:
The following report discusses about the analysis of organizational leadership and stakeholder management. In a
high performing organization, we discuss here about the value of diversity in general and in TATA Steel; the
optimum uses of power in general and in TATA Steel; and the means of maximizing the value of stakeholder
management in general and in TATA Steel

Theories of Leadership at TATA Group


Diversity in Leadership
We are each uniquely shaped by our interests, way of life, upbringing, and backgrounds, which enable us to provide
different viewpoints. These various viewpoints in an organisation generate a learning opportunity that helps us get to
know one another better. Our brains are opened to a greater degree of awareness, empathy, and sensitivity as a result
of what they teach us about communication, new perspectives, and effective communication.
We can do more as a team thanks to this renewed way of thinking. When it comes to making decisions, variety may
produce healthy disagreement, which makes room for fruitful discussions that can help produce better results.
Additionally, diversity influences an organization's culture. Higher levels of creativity, engagement, cooperation,
relationships, clarity, and productivity are advantages for more diverse businesses.
Diversity has several advantages for businesses and the individuals who work there, including academic institutions,
sports teams, the workplace, and more. Your leadership must be diversified in order to fully realise the advantages
mentioned above.
Five Factor Model (Big Five):
(Refer Table:1.5)
Style (Behaviour) Theory in TATA Group
As per style theory, there are three types of leadership models are evident in leadership. These are as follows.
1. Autocratic
2. Democratic
3. Laissez-faire
Ratan Tata is a leader who favours a more democratic style of governance, yet he has also displayed some dictatorial
traits on occasion. The acquisition of Corus, Jaguar and Land Rover, and Tetley Tea are just a few of the big
multinational transactions he has adamantly pushed for.
Ratan Tata employs elements of the laissez-faire approach in his day-to-day operations and in the development of
his leadership. He has faith in his managers and does not obstruct their performance, which can be extremely
motivating for both managers and employees.
Max Weber’s Leadership Model in TATA Group
Looking at Max Weber's Transactional and Transformational Leadership models, a leader is classified into three
types: bureaucratic, charismatic, and traditional. A bureaucratic leader is one who is always bound by the set rule
and does not want to go beyond them; a traditional leader does and follows everything from a long past or history
and always obediently obeys these "traditions;" and a charismatic leader is one who uses his own laurels or abilities
to influence others.
Ratan Tata fits into the charismatic category of these models because he sets an example by developing highly
innovative ideas like the "Nano," a car that costs £1200 (Rs. One Lakh), as well as low-cost hotels and watches.
Ratan Tata also brought about radical change for the Tata Group as a whole by transforming it from its "Traditional"
mindset to a new, more adaptable cultural mindset.
Bennis & Nanus Transformational Leadership Model in TATA Group
Through idealised influence, inspirational motivation, intellectual stimulation, and individual concern, the
Transformational Leadership model developed by Bennis and Nanus aims to develop followers into self-empowered
leaders.
The TATA Group Chairman Ratan Tata has established himself as a genuine transformational leader. His R&D
department is given a lot of importance, and he has empowered all of his managers and executives and has complete
faith in them. He has instilled a sense of teamwork throughout the entire organisation at every level.
The TATA Group's CEO, Ratan Tata, is aware of the intense competition facing his corporate empire and has made
every effort to make it competitive on a worldwide scale. He oversaw the TATA Group's transformation from a
regional conglomerate to a world power.
Ratan Tata has embraced a management by consensus approach and has been successful working with distinct
personnel leading various businesses. He may recognise talent and offer the person a long rope.
Ratan Tata's leadership has enabled the corporation to navigate choppy waters and arrive in desired locations that
weren't previously thought to be possible.

Optimum uses of power within organizational executive power:


The majority of individuals instinctively conjure up images of high-level leaders exercising authority from atop the
organizational structure when they think about power. However, power is much more than the official authority that
comes with a title (or from having a corner office with a view). Although all leaders have access to power, it
frequently remains unacknowledged or underutilized.
In order to better understand how leaders, use their influence, we conducted a research study. The results revealed
that most organizations tend to have a small number of powerful individuals in charge, and that leaders are rarely
given the tools they need to use their influence to its fullest potential.
Top leaders don't usually abuse their authority, but it is concentrated among a small group of people. Employee
empowerment may increase if flatter organizational structures and self-managed work teams become more
prevalent.
People typically picture powerful individuals with titles when they think of power. However, all levels of leaders
have access to power that is either ignored or underutilized. (Refer Table:1.2)
There are 7 bases of power that leaders can use, according to prior research:

• The power of position is the formal authority that derives from a person’s title
The power of
position.
or position in a group or an organization.

• The power of charisma is the influence that’s generated by a leader’s style or


The power of
charisma
persona.

• The power of relationships is the influence that leaders gain through their
The power of
relationships
formal and informal networks both inside and outside of their organizations.

• The power of information is the control that’s generated through the use of
The power of
information
evidence deployed to make an argument.

• The power of expertise is the influence that comes from developing and
The power of
expertise
communicating specialized knowledge (or the perception of knowledge).

• The power of punishment is the ability to sanction individuals for failure to


The power of
punishment
conform to standards or expectations.

• The power to reward others is the ability to recognize or reward individuals


The power to
reward others
for adhering to standards or expectations.

Tata Steel has adopted the Tata Code of Conduct (TCOC), which lays out the principles and standards to govern the
conduct of the Company and the Employees, as part of its commitment to upholding the ideals of fair practises and
corporate ethics. To make the Tata Code of Conduct (TCOC) more relevant to its younger employees around the
world, the Tata company has updated it. The action was taken in response to internal investigations by the
organisation that showed that a few nations' local laws could be in conflict with how some sections might be
construed. The TCOC advises the group companies' enterprises and employees on ethical and other matters as well
as business practices For instance, the code mandates that Tata enterprises not engage in child labour in some
locations where it occurs and the law does not sufficiently address the issue. In certain situations, the Code will
prevail by holding the law to a higher standard. Our understanding of these cultural disparities serves as a reminder
of the need to reevaluate and calibrate the Code on a regular basis, according to GEC member and Tata's top ethics
officer Dr. Mukund Rajan..

Value of organisational stakeholder management


The purpose of stakeholder management in leadership is to make sure that all parties involved are aware of the
organization's aims and objectives and that they can cooperate to achieve these goals. Additionally, leaders need to
be able to recognise and resolve possible disputes amongst stakeholders.
Because it enables them to recognise, evaluate, and manage the interests and expectations of people or groups with a
stake in the company or project, stakeholder management is crucial to effective leadership. This entails being aware
of the requirements and desires of every stakeholder as well as how their expectations will affect the project or
organisation. In addition, leaders need to be able to establish rapport with others and communicate successfully with
them. (Refer Table:1.3)
Jamsetji Tata, the founder of the Tata Group, intended for Tata Steel to serve as a conduit for the economic
liberation of the Indian people. He emphasised that the secure foundation of success is taking into account the
interests of the shareholder as well as the health and wellbeing of the employees.
The aim and character of Tata Steel's interactions with its stakeholders were thus clarified in Table:1.4
Conclusion and Recommendations
After reviewing this case study of Tata Steel and its founders Jamshedji and JRD Tata, we may draw the conclusion
that leadership is a quality that cannot be learned. The continuing process of developing leadership involves
reflection, experience, and communication. The most effective leaders are those who can consistently motivate their
team members to work hard even during challenging circumstances. Leaders must have a clear vision, be adaptable,
able to adjust, open to new ideas, and able to integrate what they learn into the long-term goals of their
organisations. These were the real leaders—those who could effectively communicate with others and never stopped
working to grow the business and expand the Tata group internationally. They had a strong sense of purpose.
These people serve as role models for others. In order to retain the position consistently of this brand organisation
over the world, I would like to mention certain criteria that the current top leaders and chairman of the Tata group
should consider. First,” The tendency to quickly form an opinion of the people based on the first information we
receive about them”, (McShane and Von Glinow, p.82), The second factor can be, “When we believe other people
have the same beliefs and behaviors as we do”, (McShane and Von Glinow, p.82). One factor can be stated here
which implies on the personal experiences which these leaders had (Jamshedji, JRD Tata) by travelling through
various countries as,” Reflects a competitive versus cooperative view of relations with other people,” (McShane and
Von Glinow, p.48).
Maintaining an awareness of motivation levels inside a firm is necessary in addition to comprehending the elements
of leadership styles that should be taken into account. It can be concluded that any company platform with support
from other nations might provide leadership and motivation challenges, and it is crucial to make sure that these
components are customised to the unique requirements of the culture.
PART 2: MY LEADERSHIP REFLECTION AND PLAN
COURSE LEADERSHIP LEARNING
The following course has taught me the Knowledge of Self, the most fundamental component of leadership.
No leader can have a lasting impact without this knowledge. There were numerous tools which was provided
to me to maximise one's understanding of oneself from various angles. Few of them were: Myers–Briggs Type
Indicator Dimensions (See Fig. 2.1 & 2.2 For results), HBDI (See Fig. 2.3 For results), OCEAN Model, Johari
windows, Conflict Resolution Instrument (Team roles test) (See Fig. 2.4, 2.4.1 & 2.4.2 for results), Authentic
Leadership Self-Assessment Questionnaire (See Table. 2.1 for results) etc.
Over the past 60 years, leadership knowledge has continuously advanced in greater detail than ever before, but
substantial new developments have occurred in the last ten years. The majority of the literature on leadership is
based on two main ideas. First, train the employees to address topics that are taboo, and then help the followers
become more independent so they can feel comfortable making challenging suggestions and lessen their
reliance on the leader. Here I also got to know that The leadership style can vary based on the situational
setting and the experience and capacity of the followers, which is one of the main points that have been made.
No one solution fits everybody.
The ability to utilise legitimate power when necessary is one part of leadership; the art of leadership is to use
power in a constructive framework rather than a punitive framework. Power can take many different forms
when employed constructively, and this fosters trust. Staff that are unhappy and disengaged are the result of
negative self-protectionist power use. Power abuse is a cover for incompetence.
Finally, the cultural aspect of how we do things here was brought up. The leader's job is to create an inclusive
culture, set up checks and balances, and sustain a moral and constructive environment that promotes a long-
term competitive edge.
All organisations are led by individuals who are employees. Every employee in an organisation has to know
how to collaborate well with others. Various contractual arrangements, such as full- and part-time workers,
contractors, employees working remotely, and those in shared duties, make up the dynamic mix of a modern
workplace. A lasting competitive edge requires effective teams. The ability of the team and the individual to
learn on the job improves this. Modern organisations must be committed to ongoing learning.
A suitable performance management system that is accepted by all participants must also be used to track this
growth of successful people and teams that are always learning.
Social and professional exclusion can have serious detrimental effects on the person and the organisation. Do
we reject people based on their age, colour, disability, gender, belief system, sexual orientation, or level of
education? Whatever the reason for the exclusion, it deprives the organisation of its ability to innovate, attract
talent, foster creativity, and—most importantly—gain a competitive edge.
Prior to appreciating the advantages of inclusion brought about by this diversity, organisations must first
recognise the potential variety of their workforce. Inclusion has financial advantages for both the organisation
and society at large. When an organisation addresses their view of being accepted, having a sense of
camaraderie, and being treated fairly, people will be more engaged, have a sense of belonging, and seek
meaningful employment. The company needs to develop inclusive policies and practises and make sure they're
applied in a fair and inclusive way.
LEADERSHIP ACTION PLAN
What Will I Start Doing?
Accept the reality:
The perceptive and meticulous ENFP has these qualities. However, they err when they persist in searching for
secret intentions or agendas everywhere. ENFPs should make a concerted effort to give everyone the benefit of
the doubt and take people's words and actions at face value in everyday social interactions. Because people
ultimately pick up on an ENFP's suspicion and respond in such, assuming the worst can become a self-
fulfilling prophesy.
Slow Down:
That is, in social settings. It would be prudent for ENFPs to repress their inclinations to amp up their charm a
little bit more or intensify their presentation style. Communication skills like smiling, nodding, and listening
are quite effective. Surprisingly, ENFPs tend to use fewer words since they are so adept at communicating
their ideas and building strong interpersonal relationships.
Defining the Goal
Setting organisational visions comes naturally to ENFPs. ENFPs are adaptable when it comes to the
organisational vision, so long as it doesn't conflict with their values or views. Before settling on a particular
course of action, they will gladly conduct brainstorming sessions, explore many options, and welcome other
people's input.
Leaders of ENFPs should be careful not to try to do too much and instead focus on one item at a time. In the
end, the team striving to accomplish too many things at once may wind up accomplishing nothing. Too many
ideas, projects, or visions will only confuse the workforce.
What Will I Stop Doing?
Never avoid doing the "dirty" work:
ENFPs tend to jump from one venture to another like a hungry hummingbird darting through a luscious flower
patch, therefore they don't always see undertakings through to completion. Therefore, ENFPs should
occasionally make it a point to exercise tight control throughout the entire process as a change of pace. Project
management and attention to detail are not often their strong suits. But if they only decide to put their noses to
the grindstone and keep them there until the process is finished, they have the insight and knowledge to handle
all the little things.
Look inside for validation
The subtle, and sometimes unfavourable, influence of ENFPs' love of praise and intense desire to please others
is visible in their behaviour. When ENFPs pay too much attention to what other people think, it can keep them
from acting on their own intuition and make them vulnerable to trickery. When ENFPs start caring too much
about what other people think, they should tell themselves, "If being honest to myself lands me in trouble, then
so be it."
Negative feedbacks:
Even when it's required, ENFP leaders may frequently refrain from offering constructive criticism. In order to
appease their followers, they could also become excessively trusting and accepting of others and relinquish
their position of authority.

What will I continue to do?


Optimism
I am charismatic, imaginative, warm, charming, and compassionate. I am often described as enthusiastic by
others, as I am easily excited by discussing and imagining various possibilities. My enthusiasm is contagious –
something about me helps excite and motivate others. I have the ability to make others see things my way, and
I can often talk my way into and out of things

Keeping Myself Busy


I value every single second of each day, and enjoy keeping myself busy. Through this, I typically acquire
many skills. My intuitive (N) quality gives me the ability to make inferences based on my “gut feeling”. I see
problems as a big puzzle, and are excellent at overcoming challenges.

Overcoming Challenges
I often read between the lines and seek out the deeper meaning of things. I primarily focus externally, and base
judgments off of my intuitive feelings. When I do focus internally, I base my decisions off of your feelings and
values.

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