RATAN TATA – A PIONEER OF

LEADERSHIP IN INDIA
 Best example in front of us is none other than Ratan Tata
 Was named chairman in 1991
 Today Tata group has 96 businesses, 28 of which are publicly listed on various
stock exchanges
 Instrumental in acquiring Tetley, Jaguar Land Rover and steel maker Corus
 Transformed Tata group into a global leader
 When he took over majority of the group’s sales came from commodities, but
when he exited majority of sales came from brands.
 Many of the companies started when he was leading the group
 During the 21 years he led the Tata group, revenues grew over 40 times and
profits over 50 times
 Tata motors one of the flagship brands of Tata group is giving a good fight to
giants of automotive industry like Ford, Toyota, Honda etc. in India
BEST LEADERSHIP LESSONS OF RATAN TATA

• He Makes TATA group as a global company.

• He is known for his humility, and there are countless examples. He started out working as a blue collar
employee for Tata Steel. He personally visited the families of the 80 employees who were affected
because of the 26/11 attacks. He remembers almost everyone by their first names, and is not dismissive.
• He is a decision maker. A famous quote of his is “I don’t believe in making the right decisions. I take
decisions and then make them right.”
• He inspires people. Tata does well because its employees and management adhere to its values. Ratan
Tata has made sure that the huge conglomerate sticks to the Tata values. The mission of the company is
“to improve the lives of the communities we serve globally.”
• He is a risk taker. He has made big moves like launching the Tata Nano, and acquiring the second largest
steel-maker in Europe.
• “A life without excitement, ups and downs is too much boring and dull. You need to be a storyteller
to your grandchildren, why don’t prepare for that from now? We get this life only once, experience
every aspect of it. No one ever have grown without falling once, fail as many times as you can, then
only you can succeed. So quit complaining and start exploring,”  
Effects of Transformational Leadership

 Transformational leadership and Organizational culture

hold the key to understanding organizational
effectiveness.
 Decisions taken by a manager are very important as they
affect a large number of people.
 Thus the leadership skills of a manager have to be very
pronounced.
 An organic, non-formalized organization with a large
span of control are conducive for transformational
leadership to appear.
Benefits

 Emphasis on followers needs, values and morals.

 Enthusiastic work atmosphere.
 Innovations
 Higher output and efficiency
 Develops future leaders
 People will work for leader even if monetary compensation is less
Limitations

 Lacks conceptual clarity

 Fixed trait or malleable state
 Totally depends on ability of leader
 Leaders might lack the required characteristics
 Potentially elitist or antidemocratic