Ratan Tata: Leading the Tata Group into the 21st Century
The Tata Group has been transformed from a risk-averse, slow-moving giant into a more dynamic and aggressive conglomerate. How much of such a transformation can be attributed to one individual? Discuss the role of the leader in initiating and managing change. Answer
The Tata Group transformation can be greatly attributed to the vision and execution of Ratan Tata. He was greatly responsible for the tremendous transformation because he was able to take his vision for the group and transformed it into a reality. By enforcing a mandatory retirement age policy which removed a lot of top management, who were challenging the core functions of the group and hindering growth, Ratan Tata implemented this as one of the first major changes in is rein. By replacing these individuals, he made a way for young fresh talent to bring new ideas to the group. In addition he implemented and created a Group Executive Office whose members were represented on the boards of the Tata companies, in addition to Tata Business Excellence Model (TBEM) that he introduced which was the Tata Group’s largest change initiative. The Tata Business Excellence Model (TBEM) was implemented and maintained through Tata Quality Management Services and its specific processes. Ratan Tata demonstrated a democratic leadership style that entailed openness to ideas with the group. With this his leadership approach he encouraged the executives and managers to be more open, brave and insistent with their ideas and plans and he also played a very supportive role in their proceedings. With the growth vision he had, there were two major goals to be accomplished: I.
Targeting the emerging mass market in India through product development and innovations. II.
Going global by expanding into new markets with existing products. Viewing risk as an ability to be where no one has been before, Ratan strongly believed that taking risk was exactly what the group...
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