Brief about Ratan Tata-Ratan Naval Tata (born 28 December 1937) is the present chairman of Tata Sons andtherefore, Tata Group. He is also the chairman of major Tata companies such as Tata Steel, TataMotors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian HotelsCompany and Tata Teleservices..When he returned to India in 1962 after turning down a job with IBM on the advice of JRD, hewas sent to Jamshedpur to work on the shop floor at Tata Steel with other blue-collar employees,shoveling limestone and handling the blast furnace. In 1971, he was appointed the Directorof National Radio and Electronics (Nalco), which was in dire straits when he came on board:with losses of 40% and barely 2% share of the consumer electronics market. However, just whenhe turned it around (from 2% to 25% market share), the Emergency was declared. A weakeconomy and labour issues compounded the problem and Nalco was quickly near collapse again.In 1981, JRD Tata stepped down as Tata Industries chairman, naming Ratan as his successor. Hewas heavily criticized for lacking experience in running a company of the scale of TataIndustries.In 1991, he was appointed group chairman of the Tata group. As group chairman, he has beenresponsible for converting "the corporate commonwealth" of different Tata-affiliated companiesinto a cohesive company. He has been responsible for the acquisition of Tetley, Jaguar LandRover and Corus, which have turned Tata from a largely India-centric company into a globalbusiness, with 65% revenues coming from abroad.In August 2007, Ratan Tata led Tata Groups acquisition of British steel maker Corus. At thattime, this was the largest takeover of a foreign company by an Indian company, and resulted inTata Group becoming the fifth largest steel producer in the world. According to the BBC,however, some analysts criticized the move, saying that Tata Group had overpaid for Corus andhad prioritized national pride before its shareholders.Tata is set to retire in December 2012 to be succeeded by Cyrus Mistry, the 42-year-old sonof Pallonji Mistry and managing director of Shapoorji Pallonji Group.
Five best practices of exemplary leadership – Model the Way Inspire a Shared Vision Challenge the Process Enable Others to Act Encourage the Heart1. Model the Way –Leaders establish principles concerning the way people (constituents, peers, colleagues, andcustomers alike) should be treated and the way goals should be pursued. They create standards ofexcellence and then set an example for others to follow. Because the prospect of complex changecan overwhelm people and stifle action, they set interim goals so that people can achieve smallwins as they work toward larger objectives. They unravel bureaucracy when it impedes action;they put up signposts when people are unsure of where to go or how to get there; and they createopportunities for victory.Ratan Tata himself leads the way. He always tries to motivate the employees by persuading themto perform activities which are fruitful for them and organization as well. The earliest evidenceof Tata’s thought leadership could be found in a document unofficially called the Tata Plan thathe authored way back in 1983. Under the leadership of JRD Tata, the group got Ratan Tata (thenTata Industries’ Chairman) to draw up a blueprint for the future. In it Tata recommended that thegroup `seek substantial growth in international operations.’ He also suggested restructuring thegroup to address the global opportunity better.
2. Inspire a Shared Vision-Leaders passionately believe that they can make a difference. They envision the future, creatingan ideal and unique image of what the organization can become. Through their magnetism andquiet persuasion, leaders enlist others in their dreams. They breathe life into their visions and getpeople to see exciting possibilities for the future.Ratan Tata always wanted to enter into mid segment vehicles for low income families. He had adream of bringing in 1 lakh rupees car, so he had a vision in his mind to deliver it back to thesociety. Ultimately he made it possible in bringing 1 lakh rupee car Tata Nano to the societysharing an inspired vision. He made the dreams of low income people of owning a car true.3. Challenge the ProcessLeaders search for opportunities to change the status quo. They look for innovative ways toimprove the organization. In doing so, they experiment and take risks. And because leaders knowthat risk taking involves mistakes and failures, they accept the inevitable disappointments aslearning opportunities.Ratan Tata has always been facing challenges since the beginning. Firstly he faced a challengefrom JRD Tata for doing work in IBM beside having such a huge business.Thw recent examplecould be of the singur issue in west Bengal where govt. refused the company to set a plant their.He realized from his mistakes and set up the plant in Gujarat facilitating employment to manyand bringing in prosperity too. He faced the challenge and at the end succeeded in getting whathe wanted.4. Enable Others to ActLeaders foster collaboration and build spirited teams. They actively involve others. Leadersunderstand that mutual respect is what sustains extraordinary efforts; they strive to create anatmosphere of trust and human dignity. They strengthen others, making each person feel capableand powerful deal, he makes himself available 24x7 to the CEO doing the acquisition. Tataencourages aggression among group mangers in many ways. To begin with, he is alwaysencouraging companies to think big and be bold enough to attempt the impossible. When suchthinking leads a company to a cross-border.
5. Encourage the Heart-Accomplishing extraordinary things in organizations is hard work. To keep hope anddetermination alive, leaders recognize contributions that individuals make. In every winningteam, the members need to share in the rewards of their efforts, so leaders celebrateaccomplishments. They make people feel like heroes.