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Leadership Assignment -MBA
HTML Code:Leadership Research Essay
CONTENTS
1.0 Introduction
2.0 Leader and Leadership
3.0 Leadership Traits
4.0 Leadership approaches
5.0 “Outstanding examples of business leadership in Asia”.
6.0 Conclusion
1.0 Introduction
This Leadership Assignment will give us clear picture about leadership and the importance of leadership in companies. We will discuss in detail about few outstanding business leaders in Asia and their leadership style.
All the research material used in this assignment has been sourced from accredited authors and some researcher findings. The National Library (Singapore) and associated academic journal and some e-journal websites were referenced to make this assignment. Please see the reference at the end of this essay for further details.
2.0 Leader and Leadership
Leader and Leadership have been part of our history and we have seen many examples and heard many stories about such leaders. Jesus Christ is the perfect example of a great leader in The BIBLE. When we were in school we read about Charismatic leaders like Alexander the Great; Augustus-the first Roman emperor; Charlemagne the Great; William the Conqueror, Genghis Kahn-Emperor of all Mongols, Napoleon Bonaparte, Knights and Kings who lead their armies to victories in battlefields. They were normal people who inspired others for a common cause and who are remembered even today for their courage to take decisions, for their ability to influence people. They are remembered for how they motivated everyone around them and how they created followers. In recent times we have read about leaders like Hitler, Mahatma Gandhi, Roosevelt, John F. Kennedy, Nelson Mandela, Mother Theresa, Dalai Lama etc.
In sports we have great leaders of their game who influence other athletes around them and who play for their countries and who lead their teams to victory. Sports stars like Lance Armstrong, Ricky Ponting, Steve Waugh, Michael Schumacher, David Beckham, Tiger Woods etc. They create such fan following that big commercial giants hire them to market their products, and these players become an iconic figures. They are admired for their innate ability and knowledge that they posses about the game and for their leadership ability.
Leadership and leaders are everywhere and in every field. Even in our houses. Our mother and father can be great leaders to each one of us. Let’s see leaders and leadership from the business perspective.
Fortune magazine’s analysis of 10 most admired companies in the world was summed up by Thomas Stewart as ‘The truth is that no one factor makes a company admirable, but if you were forced to pick the one that makes the most difference, you’d pick leadership’.(Mar 1998,p.72)
Leadership defined-
According to Brian O'Nail, "Leadership is influencing people to get things done to a standard and quality above their norm. And doing it willingly.”
Leadership is the ability to influence people toward the attainment of organizational goals. There are three aspects of Leadership – people, influence and goals. Leadership occurs among people, it involves people being influenced and this influence is used to achieve the goals of the organizations. In general, Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more unified and coherent. Leadership involves creating a change and not maintaining a status quo.
Leader VS Manager
Leader
- SOUL
- Visionary
- Passionate
- Creative
- Flexible
- Inspiring
- Innovative
- Courageous
- Imaginative
- Experimental
- Initiates changes
- Personal power
Manager
(Source; Genevieve Capowski, “Anatomy of a Leader: Where are the Leaders of Tomorrow?” Management Review 1994,12.)
- MIND
- Rational
- Consulting
- Persistent
- Problem Solving
- Tough-minded
- Analytical
- Structured
- Deliberate
- Authoritative
- Stabilizing
- Position Power
3.0 Leadership Traits –
Leadership’s success is highly dependent on the personal traits of the leaders.
Some traits are god gifted and leaders are born with it, while other traits can be learned over time. Like knowledge and communication can be learnt in schools/universities or by experience. Few traits of successful leaders are self-confidence, alertness, energy, decisiveness, knowledge, communication, personality, popularity, integrity, goal driven, ethical conduct, honesty, humble.
4.0 Leadership Approaches:-
Transactional Leaders – He/she is a leader who clarifies the roles and responsibilities of his subordinates, clarifies their task requirements, initiates structures for them, provides rewards to his subordinates, and displays/shows consideration for his subordinates. They believe in organization norms and values.
Charismatic Leaders – He/she is a type of leader who has the ability to motivate their subordinates to do more than what is normally expected. They excite, stimulate and drive employees to work harder. Charismatic leaders include Hitler, Martin Luther king jr etc.
Transformational Leaders- He/she is a type of leader who is a charismatic leader but has the special ability to bring about innovation and changes in the organization. They have the ability to change the organizations mission, structure, operation, rules etc.
Interactive Leaders- He/she is a type of leader who is concerned about consensus building, and wants everyone to participate in the decision making, and is very caring for their subordinates. They like interacting with subordinates before decision making and they like free flow of ideas between the subordinates.
Servant Leaders- He/she is a leader who works to fulfil the subordinate’s needs and requirements, who works to fulfil their subordinate’s goals and as well as achieve the organizational goals. They provide their subordinates with whatever they need to serve the customer.
Autocratic Leaders- He/she is a type of leader who wants to centralize power and authority with themselves. They make the decisions for their subordinates and their followers have to follow it. They rely on carrot and stick approach to reward and punish their subordinates. They are the kind of leaders who do not delegate authority.
Democratic Leaders- He/she is a type of leader who delegates authority to their subordinates; they encourage participation of employees in decision making process. They consult with others to solve problems and they empower their subordinates if necessary.
5.0 Outstanding Business leaders in Asia:-
Mr. Dhirubhai Ambani (1932-2002):-
Mr. Dhirubhai Ambani (1932- 2002) was an exceptional human being and an outstanding leader. He was man far ahead of his times; he had a great entrepreneurial spirit. He dared to dream on a scale unimaginable before, in Indian industry. His life and achievements prove that, backed by confidence, courage and conviction, man can achieve the impossible. His life journey is reminiscent of the rags to riches story. From a humble beginning, he went on to create an enviable business empire within a span of just 25 years. Reliance Group is a living testimony to his will power, single-minded dedication and an unrelenting commitment to his goals.
Under Dhirubhai Ambani’s visionary leadership, the Reliance Group emerged as the largest business conglomerate in India, and carved out a distinct place for itself in the global corporate giants. The Group's track record of consistent growth is unparalleled in Indian industry and perhaps internationally too.
Today, the Group's turnover represents nearly 3 percent of India's GDP. Shri Dhirubhai Ambani was not just firmly rooted in traditional Indian values, but was also a modern man. This was reflected in his passion for mega-sized projects, the most advanced technology and the highest level of productivity.
“Dhirubhai Ambani is remembered for shaping India's equity culture, attracting millions of retail investors in a market which were dominated by financial institutions in the 1980’s. He revolutionised capital markets in India. From nothing, he generated billions of rupees in wealth for those who invested in his companies. With innovative instruments like the convertible debenture, Reliance quickly became a favourite of the stock market in the 1980s.” – Indian Heroes
His corporate philosophy was short, simple - "Think big. Think differently. Think fast. Think ahead. Aim for the best". He inspired the Reliance team to do better than the best - not only in India but in the world. Prestigious awards and titles were awarded to him by national and international organisations. He was acclaimed as the top businessman of the twentieth century and lauded for his dynamic, pioneering and innovative genius.
Mr. Dhirubhai Ambani a brief History:
He was born on 28th December 1932 at Chorwad, in Gujrat, India. He was born into a poor family and his father was a teacher in a school. He is said to have started his entrepreneurial career by selling "pakora (Indian fast food snack)" to pilgrims in Mount Girnar over the weekends.
When he was 16 years old, he moved to Aden, Yemen. He worked as a dispatch clerk with A. Besse & Co. Two years later A. Besse & Co. became the distributors for Shell products and Dhirubhai was promoted to manage the company’s oil-filling station at the port of Aden.
Mr. Dhirubhai Ambani returned to India in 1958 and started the Reliance Commercial Corporation with a capital of Rs. 15,000.00. The primary business of Reliance Commercial Corporation was to import polyester yarn and export spices. This company is now Reliance Industries Limited and is India's largest private sector company on fortune 500 list with a turnover of US $28 billion and profit of US $2.033 billion for the fiscal year ending in March 2006. Reliance Industries Limited has a wide range of products from petroleum products, petrochemicals, to garments (under the brand name of Vimal).
Leadership Lessons from Mr. Dhirubhai Ambani:-
Leadership as an Art -
Mr. Dhirubhai never took leadership lessons in school or college, nor did he learn any leadership skills. He was not an MBA. He developed his own style. Mr. Dhirubhai Ambani never followed the textbook style of management. Instead, he evolved a unique style, which combined the American style of entrepreneurship, with the Japanese focus on the latest technology. And to this, he added the innate shrewdness of a Gujarati businessman. He learnt leadership from practice and hands on experience, as well inter-personal exploration and development.
He was a Charismatic and Transformational Leader:-
His approach to business was very different. His moves made people write new theory in the Indian stock exchange. He came up with the innovative idea of converting the debentures of the company into equity shares. By doing this he converted all his liabilities. The share prices of his company went up and investors made money through him.
‘He is the person who influenced 1000’s of people to invest in the share market , his seed has grown up to 3 million people, Reliance is the company having the highest number of share holders in the world.’ – Source BBC NEWS. He was able to convince people of rural Gujarat that being shareholders of his company will only bring returns to their investment. Reliance Industries holds the distinction that- it is the only Public Limited Company whose several Annual General Meetings were held in stadiums.--Source BBC News.
He believed in new technology, innovative products, and new ways to manage people and get things done.
Few lessons from his leadership style are:-
Roll up your sleeves and help (Team player):-
According to Ambani he and his team share the same DNA. Reliance, during the time of Vimal's (Reliance Textile- was known as the brand Vimal) initial days had organized a fashion show at the Convention Hall, at Ashoka Hotel in New Delhi. Every seat in the hall was occupied, and there were an equal number of impatient guests outside the hall, waiting to be seated. The management was trying hard to handle the confusion, chaos and protests, when to everyone’s amazement and relief; Dhirubhai Ambani went to the door trying to pacify the guests. Dhirubhai at that time was already a name to reckon with and a VIP himself, but that did not stop him from rolling up his sleeves and diving in to rescue a situation that had gone out of control.
Most leaders in his place would have gone home in their expensive cars and would have delegated this task to their managers. Not Dhirubhai Ambani. When things went wrong, he was the first person to sense that the circumstances would have been beyond his team's control, and not being a slip on their part. He trusted his team’s capabilities. His first instinct was always to join his men in putting out the fire and not crucifying them for it.
Be a safety net for your team (He empowered his managers):-
There was a time when Reliance agency Mudra was the target of some vicious propaganda by few managers in the top management, when on an almost daily basis business ethics were put on trial. The managers, who followed business ethics, never raised this subject during any of their meetings with Dhirubhai because they were hesitant to raise this issue.
But one day, he gently asked one of the managers if he needed any help in combating it. That did it. That was all the help that the manager needed in combating corruption. Overwhelmed by his concern and compassion and the knowledge that he knew and cared for what they were going through, and that he was there for them and for the right cause, worked wonders for their confidence. Managers went back fully armed to face whatever came their way. By letting them know that he was always aware of it and that he was on right side through it all, this gave them courage, they never thought, they had.
Be a silent benefactor (He was humble, caring, generous and kind):-
This was one of his remarkable traits. When Dhirubhai Ambani helped someone, he never uttered a word about it to anyone else. There are many employees and managers who have come across his kindness and generosity, yet he never went around broadcasting it.
He never used charity as a platform to gain publicity. Sometimes, he would donate money without even letting the recipient know who the donor was. Such was the extent of his generosity.
Dream with open eyes (His visions were real):-
He is a living proof that whoever dreams big and has the courage to fulfil it, than nothing is impossible. Whenever people working under him or with him tried to point out that a task seemed too big to be accomplished, he would say: ‘No is no answer!’ He not only dreamt big, he taught us to do so too.
Whenever things seemed difficult, he used to say "It's difficult but not impossible!"
He dreamt big, but he was able to distinguish between perception and reality and his favourite phrase "dream with your eyes open" proves that.
He would never let preset norms, laws or policies govern his vision. He worked hard, night and day familiarizing himself with every element that constituted his dreams. He studied every thorn that came his way and between his visions, and made sure it was eradicated. This is how, as he puts it, even though he dreamed, none of his dreams turned into nightmares. And he achieved one dream after another.
His arm around the shoulder (His motivation technique):-
This is Dhirubhai Ambani’s very own signature style. Whenever he had time to speak to employee of the company in person, or if it was a conversation for a short walk till up to his car, he would instantly put his arm around the person’s shoulder and proceed to discuss the issues at hand as they walked. With this simple gesture, he managed to achieve many things. He would put the person at ease instantaneously. He will make them feel equal, someone who was loved and important enough to be close to him. And employees would walk away from that meeting feeling good about themselves and the work that they were doing, and highly motivated.
He was always encouraging people to share their thoughts and ideas. Yes, this was one of the things that was uniquely Dhirubhai — his warm arm around the shoulder of the employees did much more than words in letting every employee know that he belonged to the company, that he had trust in him.
Always stay ahead of times (Foresight):-
Mr. Ambani was not an economist. He was born poor, was from a conservative society of India. But his ideas were modern. At a time in 1970’s and 80’s other industrialist in India would invest in capacities only after a careful study of market, he had the vision, courage and risk to invest in gigantic plants and manufacturing units that would supply more than the required demand. The initial capacity of Reliance textile plant was 10,000 tonnes of Polyester Fibre way back in 1980, while the market in India for it was only about 6,000 tonnes. He had the ability and the foresight to judge the scenarios. The result was that the market blossomed to absorb supply, the consumer gained due to reduced prices and they demanded more. Soon Dhirubhai started exporting Polyester yarn to the U.S. He had an uncanny knack of knowing exactly how the market is going to behave and stayed ahead of times.
Believe in being the best, success and money will follow (He believed in Quality):-
This was his belief and Dhirubhai lived by it. For instance, when he was setting up Reliance Textile he briefed the marketing head clearly: ‘Produce the best textile advertising in the country’. He did not breathe a word about profits, nor about cost of such advertising. Great advertising was his goal. He did not dream of making profits as the end result of advertising. His instruction and goal were simple, produce the best advertisement the country has ever seen. So work toward a goal and don’t worry about the by product or the end-result. Success in attaining that goal will eventually bring in cash. If we work towards creating a name for our self and earning a good reputation, then money/profit will be the end result. People will pay our product or service if it is good.
Risk Taker (He was decisive, courageous and non conformist):-
He was known for his risk taking ability. Normally, in management we say ‘Never put all the eggs in one basket’. However, he had so much belief in his ability and decisions that he invested his entire earning to purchase huge stock of Polyester Yarn when he started his new business. Everyone around him advised him that it was wrong decision to invest so much money in Polyester; however he was stubborn and knew what he was doing. This decision made him a billionaire today. Great leaders take risk and they believe in their ability.
6.0 Conclusion:-
Mr. Dhirubhai never took leadership lessons in school or college, nor did he learn any leadership skills. He developed his own style. Mr. Dhirubhai Ambani never followed the textbook style of management. Instead, he evolved a unique style, which combined the American style of entrepreneurship, with the Japanese focus on the latest technology. And to this, he added the innate shrewdness of a Gujarati businessman. He learnt leadership from practice and hands on experience, as well inter-personal exploration and development. His leadership was an Art and he practiced this art with perfection.
People have written books on his management style and he is looked upon as a GURU of Management in India. He created his own style of leadership and management, which other follow even today; this clearly establishes the relationship between Leaders and followers. He was a transformational leader and influenced everyone who worked with him. He has provided many budding entrepreneurs hope and inspiration. We have learned from Mr. Dhirubhai that if we have a goal and the will power to achieve it, then nothing is impossible.
Reference:-
Internet:-
Dhirubhai Ambani : Indian Legends @ muraleedharan.com
Dhirubhai Ambani - Wikipedia, the free encyclopedia
Great lessons from Dhirubhai Ambani [Archive] - ManagementParadise.com : Your Gateway to Online MBA Degree . Management Students Forum for MBA,BMS, MMS, BMM, BBA, students and aspirants.
Dhirubhai Ambani – Real Story from Rags to Riches | Stock Market India | Stock Market News | Stock Recommendations - paisacontrol.com
Books:-
The Leadership Experience – Richard L. Daft
Author: Sumit
