a role of leader in a company with reference to reliance

8/13/2019 a role of leader in a company with reference to reliance

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INTRODUCTION

Leadership is perplexing. Each of us thinks we know what it

means yet our ideas about it often do not match. One persons

image is the leader as heroanothers focuses on the leader as

chief servant. And things become no clearer when one consults

the hundreds of volumes on the subject on the shelves of the

local business bookshop. They just add to the confusion with

their various models, and few of them have anything to say

about family business. Everyone in a family firm knows that

leaders are confronted by special issues and demands, but: Is

there a special way of leading the family firm? Are there

particular traps to watch out for? How can family influences be

a force for good and not a source of disturbance? What specific

measures and methods can be used to master the familiar

challenges of governance, succession and ownership decisions?

There are three key questions to be answered in relation to this

topic, which will interweave our account of the Inquiry. They

are as follows:

What is the nature of the challenge in leading a family firm?

This encompassesthe roles and tasks of the leader, such as the

outward facing challenge of leading strategy in increasingly


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competitive markets, and the inward facing challenge to

maintain the culture, family values and stakeholder

relationships.

Who should lead? This is especially brought into focus by the

challenges aroundthe selection, succession and development of

leaders, both family and non-family. What qualities should be

sought, and how can the path be smoothed for cooperation,

adjustment and achievement?

How should leaders go about their task, in aligning strategy,

family, governance and business processes? When should

recourse be made to non-family outsiders and advisors? What

kinds of ownership, financial and communication strategieswill bind together the elements that make a successful family

firm?

CHARACTERISTICS OF LEADER

Proactive vs. Reactive

The exceptional leader is always thinking three steps ahead.

Working to master his/her own environment with the goal of

avoiding problems before they arise.


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Flexible/Adaptable

How do you handle yourself in unexpected or uncomfortable

situations? An effective leader will adapt to new surroundings

and situations, doing his/her best to adjust.

A Good Communicator

As a leader, one must listen...a lot! You must be willing to work

to understand the needs and desires of others. A good leader

asks many questions, considers all options, and leads in the right

direction.

Respectful

Treating others with respect will ultimately earn respect.

Quiet Confidence

Be sure of yourself with humble intentions.

Enthusiastic

Excitement is contagious. When a leader is motivated and

excited about the cause people will be more inclined to follow.

Open-Minded


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Work to consider all options when making decisions. A strong

leader will evaluate the input from all interested parties and

work for the betterment of the whole.

Resourceful

Utilize the resources available to you. If you don't know the

answer to something find out by asking questions. A leader must

create access to information.

Rewarding

An exceptional leader will recognize the efforts of others and

reinforce those actions. We all enjoy being recognized for our

actions!

Well Educated

Knowledge is power. Work to be well educated on community

policies, procedures, organizational norms, etc. Further, your

knowledge of issues and information will only increase your

success in leading others.

Open to Change

A leader will take into account all points of view and will be

willing to change a policy, program, cultural tradition that is


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out-dated, or no longer beneficial to the group as a whole.

Interested in Feedback

How do people feel about your leadership skill set? How can

you improve? These are important questions that a leader needs

to constantly ask the chapter. View feedback as a gift to

improve.

Evaluative

Evaluation of events and programs is essential for an

organization/group to improve and progress. An exceptional

leader will constantly evaluate and change programs and

policies that are not working.

Organized

Are you prepared for meetings, presentations, events and

confident that people around you are prepared and organized as

well?

Consistent

Confidence and respect cannot be attained without your

leadership being consistent. People must have confidence that

their opinions and thoughts will be heard and taken into

consideration.


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Delegator

An exceptional leader realizes that he/she cannot accomplish

everything on his own. A leader will know the talents andinterests of people around him/her, thus delegating tasks

accordingly.

Initiative

A leader should work to be the motivator, an initiator. He/shemust be a key element in the planning and implementing of new

ideas, programs, policies, events, etc.

TYPES OF LEADERSHIP

Different types of leadership styles exist in work environments.

Advantages and disadvantages exist within each leadership

style. The culture and goals of an organization determine which

leadership style fits the firm best. Some companies offer several

leadership styles within the organization, dependent upon the

necessary tasks to complete and departmental needs.

Laissez-Faire


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A laissez-faire leader lacks direct supervision of employees and

fails to provide regular feedback to those under his supervision.

Highly experienced and trained employees requiring little

supervision fall under the laissez-faire leadership style.However, not all employees possess those characteristics. This

leadership style hinders the production of employees needing

supervision. The laissez-faire style produces no leadership or

supervision efforts from managers, which can lead to poor

production, lack of control and increasing costs.Autocratic

The autocratic leadership style allows managers to make

decisions alone without the input of others. Managers possess

total authority and impose their will on employees. No one

challenges the decisions of autocratic leaders. Countries such asCuba and North Korea operate under the autocratic leadership

style. This leadership style benefits employees who require

close supervision. Creative employees who thrive in group

functions detest this leadership style.

Participative

Often called the democratic leadership style, participative

leadership values the input of team members and peers, but the

responsibility of making the final decision rests with the

participative leader. Participative leadership boosts employee


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motivate employees and enhance productivity and efficiency

through communication and high visibility. This style of

leadership requires the involvement of management to meet

goals. Leaders focus on the big picture within an organizationand delegate smaller tasks to the team to accomplish goals.

HOW TO CHOOSE A LEADER IN FAMILY BUSINESS

Everything works better with planning, and succession in a

family business is no different. Survival of a multi-generationalbusiness depends on it. Illustrative of this: Mark was one cousin

of three in a business whose patriarch delegated responsibilities

and left for Florida (the business was in NY). The eldest was the

nephew; Mark, a natural leader, was the oldest son, and the

youngest son was caught in the middle of the family dynamics.There had been no succession discussion or any leadership

development up to that time. The patriarch was not involved in

the day-to-day operations, but returned every 3-4 months to

check-in. The business was loosing market share and

profitability. Having no equity, the cousins were frustrated in

their inability to affect change in the business. Tensions were

high when the patriarch was there.

Successful succession (these words having the same prefix

always intrigues me) in family business requires both intention

and planning. The attached article, How Family-Run Businesses


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Should Choose Future Leaders, describes a strong foundation

for having conversation about leadership succession in a family

business. While primarily addressing the business context, the

conversations also applies to the vision of the family itself infuture generations.

ROLE OF LEADERSHIP

You learn leadership by being a leader. Thats one of the majorbenefits of serving as a student chapter officer having the

opportunity to learn and sharpen your skills to become a better

team member, a better manager, a better leader.

Faculty Advisor

The advisor establishes and maintains the continuity of thestudent chapter. The advisors actions are guided by a clear

understanding of the materials field in a societal context as well

as familiarity with the benefits of participation in an established

professional community. The advisor should be an enthusiastic

supporter of students efforts and will make many important

contributions at planned events and activities throughout the

chapter year. More than one faculty member may serve as

advisor; however, one person should be identified as the

primary contact.


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Main Responsibilities

Primary contact with society headquarters

Receives chapter materials for distribution to officers

Receives chapter rebate for distribution to Treasurer

Advises chapter officers and committee chairs on the

formation and implementation of goals, objectives andprograms

Ensures that the chapter understands the role of ACerS-

AIST-ASM-TMS as a professional organization.


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REVIEW OF LITERATURE

2.1. Srivastava S K, Organizational Behaviour ( A Comprehensive Study), Global

Vision Publishing House, New Delhi, First Edition,2010Srivastava S K have stated that leadership has long interested psychologist, sociologist,

political, scientist, and certainly management scientists. Different theories have been used

to study leadership. Early research on leadership was done on the study of people who

were already great leaders. This contributed to the nation that leadership had something

to do with breeding. The manager provides the employee the responsibility to plan and

archive results.

2.2. Aquinas P G, Organizational behavior (Concepts, Realities, Applications and

Challenges), Excel Books, New Delhi, First Edition, 2006

Aquinas P G has observed that leadership is a key process in any organization. People

working there need leaders who could be instrumental in guiding the efforts of group of

worker to achieve the goals of both individuals and the organization. Leadership is a

process of influencing on a group. Leadership is a ability of a manager to induce

subordinates to work with confidence and zeal. The leader is expected to play many roles

and therefore, must be qualified to guide others to organizational achievement. An

effective leader is one who can make ordinary man do extra ordinary things. Leadership

is a lifting of a mans sights to a higher vision, the raising of mans standard to a higher

performance, the building of a mans personality beyond its normal limitation.


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INTRODUCTION TO RELIANCE

Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat

as Reliance Capital & Finance Trust Limited. The name RCL came into effect from

January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before

it finally moved to Mumbai in Maharashtra, in 2006.

In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the

shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.

RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent

years further tapped the capital market through rights issue and public issues. The equity

shares were initially listed on the Ahmedabad Stock Exchange and The Stock Exchange

Mumbai. Presently the shares are listed on The Stock Exchange Mumbai and the National

Stock Exchange of India.

RCL in the initial years engaged itself in steady annuity yielding businesses such as

leasing, bill discounting, and inter-corporate deposits. Later, in 1993 diversified its

business in the areas of portfolio investment, lending against securities, custodial

services, money market operations, project finance advisory services, and investment

banking.

RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of

India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400

crore and had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these

companies were listed on various exchanges.

RCL obtained its registration as a Non-banking Finance Company (NBFC) in December

1998. In view of the regulatory requirements RCL surrendered its Merchant Banking

License.

RCL has since diversified its activities in the areas of asset management and mutual fund;

life and general insurance; consumer finance and industrial finance; stock broking;depository services; private equity and proprietary investments; exchanges, asset

reconstruction; distribution of financial products and other activities in financial services.


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HISTORY OF RELIANCE

1960 - 1980

The company was co-founded by Dhirubhai Ambani and his cousin Champaklal Damani in

1960s as Reliance Commercial Corporation. In 1965, the partnership was ended and Dhirubhai

continued the polyester business of the firm. In 1966, Reliance Textiles Industries Pvt Ltd was

incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in

Gujarat. In 1975, company expanded its business into textiles, with "Vimal" becoming its major

brand in later years. The company made an initial public offer (IPO) in 1977. The issue was

over-subscribed by seven times. In 1979, a textiles company Sidhpur Mills was amalgamated

with the company. In 1980, the company expanded its polyster yarn business by setting up a

Polyester Filament Yarn Plant in Raigad, Maharashtra with financial and technical collaboration

with E. I. du Pont de Nemours & Co., USA.

1981 - 2000

In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to

Reliance Industries Ltd. During the years 1985 to 1992, the company expanded its installed

capacity for producing polyster yarn by over 145,000 tonnes per annum. The Hazira

petrochemical plant was commissioned in 1991-92.In 1993, Reliance turned to the overseas

capital markets for funds through a global depositary issue of Reliance Petroleum. In 1996, it

became the first private sector company in India to be rated by international credit rating

agencies. S&P rated BB+, stable outlook, constrained by the sovereign ceiling. Moody's rated

Baa3, Investment grade, constrained by the sovereign ceiling. In the year 1995-96, the company

entered the telecom industry through a joint venture with NYNEX, USA and promoted Reliance

Telecom Private Limited in India. In 1998-99, RIL introduced packaged LPG in 15 kg cylinders

under the brand name Reliance Gas. During 1998-2000, the company completed setup of

integrated petrochemical complex at Jamnagar in Gujarat.

2001 - 2013

In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest

companies in terms of all major financial parameters. In 2001-02, Reliance Petroleum was


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merged with Reliance Industries. In 2002, Reliance announced India's biggest gas discovery (at

the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in the

world during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet,

equivalent to about 1.2 billion barrels of crude oil. This was the first ever discovery by an Indian

private sector company. In 2002-03, RIL purchased a majority stake in Indian Petrochemicals

Corporation Ltd. (IPCL), India's second largest petrochemicals company, from Government of

India. IPCL was later merged with RIL in 2008. In the years 2005 and 2006, the company

reorganized its business by demerging its investments in power generation and distribution,

financial services and telecommunication services into four separate entities. In 2006, Reliance

entered the organised retail market in India with the launch of its retail store format under the

brand name of 'Reliance Fresh'. By the end of 2008, Reliance retail had close to 600 stores across

57 cities in India. In 2010, Reliance entered Broadband services market with acquisition of

Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-

generation (4G) spectrum auction held by Government of India. In the same year, Reliance and

BP announced a partnership in the oil and gas business. BP took a 30 per cent stake in 23 oil and

gas production sharing contracts that Reliance operates in India, including the KG-D6 block for

$7.2 billion. Reliance also formed a 50:50 joint venture with BP for sourcing and marketing of

gas in India.

AWARDS AND RECOGNITION

International Refiner of the Year in 2013 at the HART Energys 27th World Refining& Fuel Conference. This is the second time that RIL has received this Award for its

Jamnagar Refinery, the first being in 2005.

According to survey conducted by Brand Finance in 2013, Reliance is the secondmost valuable brand in India.

The Brand Trust Report, 2013 has ranked 'Reliance' as the 7th most trusted brand inIndia.

RIL was certified as 'Responsible Care Company' by the American ChemistryCouncil in March, 2012.

RIL was ranked at 25th position across the world, on the basis of sales, in the ICISTop 100 Chemicals Companies list in 2012.[65]


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RIL was awarded the National Golden Peacock Award 2011 for its contribution in thefield of corporate sustainability.

In 2009, Boston Consulting Group (BCG) named Reliance Industries as the world'sfifth biggest 'sustainable value creator' in a list of 25 top companies globally in terms

of investor returns over a decade

The company was selected as one of the world's 100 best managed companies for theyear 2000 by Industry Week magazine.

From 1994 to 1997, the company won National Energy Conservation Award in thepetrochemical sector


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LEADERSHIP STYLE

LEADERSHIP STYLE OF DHIRUBHAI AMBANI

When we talk about Indian leaders one name, which we cannot miss out, is Dhirubhai Ambani.He has voyaged through a journey of rags to riches. He was born on 28th December 1932 to a

local schoolteacher in a village called Chorwad, in Junagadh district, Gujarat.

Dhirubhai has been an opportunist right from his childhood. All he needed was the whiff of a

business opportunity and he was off to tap it. During the Mahashivratri fair, he would sell

ganthia a gujaratri savoury to earn money. Due to shortage of money, he left education after

matriculation and went to Aden to earn money.

He worked for almost eight years in a petrol station where he learned about oil business until a

day came when he was bitten by the entrepreneurial bug. He came back to Bombay to start his

own business. He took a loan with which he started Reliance Commercial Corporation, which

has been a stepping-stone to one of Indias largest Corporation. They were involved in general

merchandising.

Dhirubhai has always shown all the critical leadership qualities. He would always grab an

opportunity and strike on it. He then started his yarn business in the 60s and then he build his

own spinning mill in 1966 known as Reliance Textile industries.

He believed that if a person wants to succeed in something then he should have complete access

to information on that topic. Whenever he wanted to approach the government to get licenses,

information about the competitors, market size etc. he would collect all these information, no

matter at what cost it came. He also believes in destiny and gives all the credit to his luck. This

shows how down to earth he is. Even today he has a simple ritual of Puja when a new machine is

installed. He isnt proud of what he is and he still believes in Simple thinking, Modernthinking.

He always followed the rule to be the pioneer/first to do anything. He would just grab an

opportunity that would come up because of some government policy changes and would

implement it successfully. He believed not in meeting demand but in creating demand. He


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Dhirubhai has always believed in picking up the best talent. They have a motivated workforce.

He only believes in providing leadership, vision and strategy. He thinks that he doesnt run his

business but his business leaders do it.

Dhirubhai is criticized for manipulating the government for his benefits. Apart from that he has

paid zero tax on corporate earnings for several years due to the loopholes in the system. He was

also involved in manipulating the L&T board to gain control. Apart from that he was heavily

criticized along with Pranab Mukherjee for buying shares under dummy companies which never

existed.

But be it whatever Dhirubhai is one of the greatest leaders of India who has the zeal to achieve

something big rather than just earning money and the obsession to build. He wants to work till

his death.

As a true leader Dhirubhai had once said that, People think I have finally arrived but I think I

have just begun.

LEADERSHIP STYLE OF ANIL AMBANI

Anil Ambani is the Billionaire Indian Business Tycoon (Industrialist). He is the chairman of

Reliance ADA Group having net worth of US $ 13 Billion making him Indias top 10 richest

persons according to Forbes 2010.

Anil Ambani received his fortune as an inheritance when both the brothers split their fathers

empire after the death of their great father Dhirubhai Ambani.

Anil Ambani received the flagship Company Reliance Communication and Reliance Energy

which became Reliance ADA Group.

Under his leadership, the Reliance ADA Group expended into other sectors like Entertainment,

gaming, radio, Cinemas, Capital markets, Natural Resources and many others.

Anil Ambani is a great leader having several leadership qualities. He provided vision to various

companies of his group. He is not afraid to take calculated risks.


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In fact, Anil Ambanis Personal Lifestyle suggests that he is a very active person and loves to

work. He is a great leader and under his leadership, the entire group grow like anything.

Reliance Capital is also planning to launch a Local Bank network in India according to RBI

guidelines. He has also played a major role in Film industry by promoting Reliance Big

Entertainment.

Thus, overall, Anil Ambani is a great leader.

DIFFERENCE IN STYLE OF LEADERSHIP IN RELIANCE

Dhirubhai Ambani has not only been a great leader but also an inspirational story for several

youngsters hailing from small towns to make it big in their respective fields. Post his demise, the

giant Reliance Empire was taken ahead by his two sons, Mukesh & Anil Ambani. Though both

are extremely different in their approach, Reliance has spread its wings all over the world

because of them.

Anil Ambani, now the Chairman and Managing Director of Reliance Industries Limited, Indias

largest private sector company, has set an excellent example of being a successful leader &

carrying forward the legacy of the Ambani realm. His leadership abilities were recognized by

eminent bodies in the industry by felicitations like Economic Times Business Leader 2006 &

CNBC-TV18 India Business Leader Awards 2007.

The secret to his success was the constant need to challenge existing situations. He created an

open environment so that everybody in Reliance was on the same page to come over the feudal

style of management & the disruptive style of management. A true leader always believes in

investing the companys capital on good talent. As a learner, he preached K K Malhotra, who

was with them for 15 years, as his guru & had imbibed most of his current leadership abilities &

best practices from him.

His initiative to build Indias largest & strongest communication network was known as Reliance

Infocomm Limited (now Reliance Communications Limited). His business interests expanded to

Petrochemicals, Petroleum Refining and Marketing, Textiles, Retail and SEZs. And his latest


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venture in the organized retail sector with Reliance Retail by opening hundreds of stores across

several states to serve diverse consumer needs and operate under various names such as Reliance

Fresh, Reliance Mart and Reliance Digital.

Leading the communications aspect at Reliance, he saw immense potential in the convergence of

information and communication which is why they named it as Infocomm. He focused

extensively on building various competencies in Reliance that would make this organization.

His vision to have a chain of sectors within Reliance has strengthened his position in almost

every initiative he has taken. Mukesh is known to be amongst the top ten richest men in India &

had surpassed Bill Gates in 2007 to be the Worldsrichest man.

It was his wish that opportunities in India should not be limited to the few so that every citizen is

empowered to access new generation technology & skills. He envisaged a new India on the

horizonnew visionary, courageous and convincing models that are needed to progress Indian

society. He always challenged the possibility to translate this vision into reality

Dhirubhai Ambani has not only been a great leader but also an inspirational story for several

youngsters hailing from small towns to make it big in their respective fields. Post his demise, the

giant Reliance Empire was taken ahead by his two sons, Mukesh & Anil Ambani. Though both

are extremely different in their approach, Reliance has spread its wings all over the world

because of them.Anil Ambani, now the Chairman and Managing Director of Reliance Industries

Limited, Indias largest private sector company, has set an excellent example of being a

successful leader & carrying forward the legacy of the Ambani realm. His leadership abilities

were recognized by eminent bodies in the industry by felicitations like Economic Times

Business Leader 2006 & CNBC-TV18 India Business Leader Awards 2007. The secret to his

success was the constant need to challenge existing situations. He created an open environment

so that everybody in Reliance was on the same page to come over the feudal style of

management & the disruptive style of management. A true leader always believes in investing

the companys capital on good talent. As a learner, he preached K K Malhotra, who was with

them for 15 years, as his guru & had imbibed most of his current leadership abilities & best

practices from him. His initiative to build Indias largest & strongest communication network

was known as Reliance Infocomm Limited (now Reliance Communications Limited). His


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business interests expanded to Petrochemicals, Petroleum Refining and Marketing, Textiles,

Retail and SEZs. And his latest venture in the organized retail sector with Reliance Retail by

opening hundreds of stores across several states to serve diverse consumer needs and operate

under various names such as Reliance Fresh, Reliance Mart and Reliance Digital.Leading the

communications aspect at Reliance, he saw immense potential in the convergence of information

and communication which is why they named it as Infocomm. He focused extensively on

building various competencies in Reliance that would make this organization & its His vision to

have a chain of sectors within Reliance has strengthened his position in almost every initiative he

has taken. Anil is known to be amongst the top ten richest men in India & had surpassed Bill

Gates in 2007 to be the Worlds richest man.

It was his wish that opportunities in India should not be limited to the few so that every citizen is

empowered to access new generation technology & skills. He envisaged a new India on the

horizonnew visionary, courageous and convincing models that are needed to progress Indian

society. He always challenged the possibility to translate this vision into realit.


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CONCLUSION

Like the nature versus nurture debate, the born versus made leadership debate is based upon

a false dichotomy. Just as genes interact with the environment to express unique physical

characteristics and capabilities, so too is the quality of leadership an expression of how innate

personal characteristics interact with organizational factors. Given this perspective, leadership is

not regarded as the random occurrence of great men at moments in history, but rather as a

network effect, the interaction of innate traits, themselves long nurtured and refined by

evolutionary forces and the organizational context in which these traits are expressed. In other

words, great leadership is the combination of individual traits and historical and institutional

contexts. This is powerful knowledge if we can learn to identify the types of roles needed to

guide a group or an organization in a certain situation, and then find the right person for the job.

An important task in the coming years will be the training and testing of future leaders.

The importance of capable leadership in present day business scenarios has been clearly analysed

and also the leadership skills of chosen leader have been compared with the various leadership

supporting theories for better understanding. The major qualities of Mr. Dhirubhai Ambani have

been highlighted and the role of those qualities in making the Reliance group tremendous

successful in the Indian market is discussed. The present report successfully established the fact

that Mr. Dhirubhai Ambani evolved as true leader with his efficient and effective leadership

qualities. The timely decision making capability of him made the Reliance industries prime

group in India. The resemblance of Dhirubhai Ambani leadership style and transactional are

explained for better understanding of leadership qualities. The transformational leadership

qualities are also compared to Mr. Ambanis qualities in order to make clear understanding of the

leadership capabilities. Dhirubhai Ambani can better called as leader instead entrepreneur as the

initial steps he made in the business proves to be an efficient leader and his policies which he

followed gives enough strength to represent him to be a true leader of his times.


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Documents

a role of leader in a company with reference to reliance