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Mt on leadership and its effects on employees performance


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Mt on leadership and its effects on employees performance

  1. 1. Leadership And Its Effects on Employees Performance ON Hindalco Industries Ltd.Submitted To: Dr. Deepak Sharma Submitted By: Shashi ChandraHR Faculty 8nbah015INC Allahabad INC Allahabad IV - Sem1|Page
  2. 2. STUDENT DECLARATIONI Shashi Chandra student of MBA at INC Allahabad of hereby declare that the MTwork entitled “ON LEADERSHIP AND ITS EFFECTS ON EMPLOYEESPERFORMANCE" is compiled and submitted under the guidance of Dr. DeepakSharma (MT Supervisor) is my original work.Whatever information furnished in this project report is true to the best of myknowledge. SUBMITTED BY: Shashi Chandra MBA (2008 – 2010) 8NBAH0152|Page
  3. 3. TABLE OF CONTENT 1. An Overview of Research 2. Introduction I. Group Philosophy II. Rest on pillarsIII. Group valueIV. Group vision V. Group mission 3. Company Profile I. Joint venture II. Company strategy III. Efficiency focus IV. Effectiveness focus V. Growth focus 4. Human resource (HR) I. Company HR vision II. Co. HR Mission III. Co. HR Objective 5. Nature and define of leadership 6. Stages of employee development in company 7. Stages in job carrier 8. The role of the leadership in employee development In company 9. Research Design/methodology 10. Review of literature3|Page
  4. 4. 11. Analysis 12. Findings 13. Outcomes 14. References 15. Questionnaire 16. Conclusion4|Page
  5. 5. Acknowledgement I would like to express my gratitude to all those who gave me the possibilities to complete this thesis. I want to thanks Dr. Deepak Sharma for giving me permission to commence this report and to do the necessary research work with a deep sense of gratitude and humble submission. I would like to express my heartiest gratefulness to my faculty whose stimulating suggestions and encouragement helped me all the times for completing this report in well organized way and in systematic manner so that I can reach up to my goal easily and effectively.5|Page
  6. 6. OverviewDemand for great leaders is growing in modern times, as society andtechnology is becoming increasingly advanced. The ever changing businessenvironment has created a need for leaders who can meet the demands andchallenges of organizations functioning in complex competitive environments,with the world open for trade. The discussion in this chapter initiallydescribes the nature and definition of leadership. Leadership is then discussedin terms of traditional and new theories, culminating in a discussion of themove from the traditional to the new leadership approaches. Traditionalleadership theories are discussed in terms of the trait theory, behaviouralapproaches and situational/contingency approaches. The new leadershiptheories, namely transactional and transformational leadership, are discussed,after which the integrated approach of Full Range Leadership DevelopmentTheory is reviewed.Finally, the relationship between leadership and emotional intelligence isdiscussed, demonstrating the theoretical connection between them.6|Page
  7. 7. INTRODUCTIONEmployee performance is an important building block of an organization andfactors which lay the foundation for high performance must be analyzed bythe organizations. Since every organization cannot progress by one or twoindividual’s effort, it is collective effort of all the members of the organization.Performance is a major multidimensional construct aimed to achieve resultsand has a strong link to strategic goals of an organization. Managers at all thelevels have to input their efforts and make maximum use of their abilitieswhich sometimes are produced under supervision or without it. However,there are many expectations from managers working for an organization.These expectations are sometimes fulfilled but in some situations thesemanagers may be running to their boss for guidance. Therefore, the managersmust be developed so that they can think and work on their own and fulfilltheir responsibilities innovatively, while understanding and foreseeing themarket and business situations. Consequently question arises that how an employeecan work more efficiently and effectively to increase the productivity andgrowth of an organization. An effective leadership program can be of animmense assistance to help identify and build leadership qualities amongindividuals within the organization. The relationship between leadership andperformance was indirect as well as direct, which proves the importance ofdeveloping leaders through leadership development programs. Latest studiesprovide that organizations heavily invest in Human Resource Developmentinterventions to update and skill the employees in order to attain job7|Page
  8. 8. performance, job satisfaction and job involvement. These skills can beimparted by providing necessary technical/non-technical training andcoaching. Currently leadership is widely recognized, and verified throughresearch. Leadership development can be imparted through experientiallearning, and transformational learning and it is imparted as leaders caninfluence the people and motivate them Leadership development is becomingan increasingly critical and strategic imperative for organizations in thecurrent business environment Leadership development is an important areawhich is considered and implemented in organizations to increase humancapability and some other benefits like to gain competitive advantage. Somedevelopmental assignments can be carried out concurrently with regular jobresponsibilities, whereas others require taking a temporary leave from one’sregular job . These development assignments can be used to developmanagerial skills at current jobs, some may be used to develop new projectsor begin new projects serving as department representative on a crossfunctional teams. Training sessions play an important role to improve theperformance of organizational managers regarding communication skills,listening skills, motivate others, support others, and share information. A leadership development program isaimed to improve the skills of managers at all levels whether operational,tactical, strategic and personal as well. Performance is a vital feature of anorganization; furthermore, development programs can be helpful inidentifying and managing teams, where group development and specificallypersonal development and growth of managers also take place. The most important aspect nowadays is that ABBAS andYAQOOB:-how a manger can adopt the leadership attributes and effectively8|Page
  9. 9. use them to perform his job responsibilities assigned, these attributes canhelp him work further than the job responsibilities and add more achievementto the organization. Leadership development process intends to developleaders and also includes transfer of organizational culture and valuesultimately resulting into collective sharing among all the members of theorganization to achieve the organizational objectives (Hamilton and Cynthia,2005). Leadership requirement in today’s organizations in Indian perspectiveis very important to meet the global business challenges. On the other hand,leadership development is also a major consideration and challenge across theglobe and has a major influence on employee’s performance. There is a largeamount of work done on leadership development and its impact on variousfactors including employee performance in many parts of the world., however,there is very limited research conducted in India because of which thisimportant area of organization and employee development remainsunexplored at large. Hence, it is important to recognize the leadershipdevelopment and means to develop, and its impact on the organization and itsemployees in business environment. Therefore, keeping in view theimportance of leadership development and its acknowledgment and benefitsdrawn in all parts of the world, this research is aimed to study leadershipdevelopment value and benefits on business sector in particular employeeperformance in Hindalco. Apart from this, leadership development can also behelpful in implementing change efforts. There can be many methodologies toimplement this program through training, workshops, seminars etc.Nowadays in India there is an emerging trend of corporate training conducted9|Page
  10. 10. by the organization to develop the human capital and personal developmentof managers. This trend is also recognized by various government institutionsas well. The overall objective of the research is to study the leadershipdevelopment and its impact on employee performance. The study will beperformed on Hindalco which are focusing on formal methods of developingtheir employees. This study will be conducted on Hindalco industries ltd.Therefore, this study will highlight the importance of leadership development,its power to increase the performance and it influence on Hindalco businessenvironment.Human Resources play a vital role in shaping a healthy and growingorganization. Without doubt, human resources development has hence beenaptly described as the “soul” of a vibrant and dynamic organization. Theincreasing complexity and problems of managing human resources placesheavy demands on ensuring equal emphasis on all the sub-systems whichplay a crucial part in ensuring holistic development of the human resources.Human Resources Management has gained immense importance in today’senvironment of global competition to meet future challenges in the newmillennium. In these days of rapid advancement in Information Technologyand Techno-Commercial aspects of business, it would be eventually the “Manbehind the Machine” who would determine which way/ direction anorganization goes. Human Resources Development systems have an importanttask in achieving the required dynamics to enable any organization toperform at its peak. The right recruitment and selection to start with,progressive training and development thereafter, and, a fair performanceappraisal system gives an impetus to professional and proficient management10 | P a g e
  11. 11. of HR. There is yet another dimension of HRM which is directly related to, andfalls within the ambit of organizational development that deserves majorattention because the “character & culture” of an organization is formed byHR of the organization and that will finally decide the future of theorganization. After said all this, it is imperative to consolidate on the availablehuman potential and check HR wastages to ensure organizationaleffectiveness as it has become a key to sustain excellence and achievecompetitive advantage over others.This project study is on “LEADERSHIP AND ITS EFFECTS ON EMPLOYEEPERFORMANCE” thus assumes an even greater relevance in the existingchanging business scenario especially so when there is a paradigm shift in theOrganizations’ approach towards Human Resources Management in outliningspecific roles. Without defining HR vision, roles & objectives, an organizationwould jeopardize its growth and survival After said all this, it is imperative toconsolidate on the available human potential and check HR wastages toensure organizational effectiveness as it has become a key to sustainexcellence and achieve competitive advantage over others.This project study is on “ LEADERSHIP AND ITS EFFECTS ON EMPLOYEESPERFORMANCE” thus assumes an even greater relevance in the existingchanging business scenario especially so when there is a paradigm shift in theOrganizations’ approach towards Human Resources Management in outliningspecific roles. Without defining HR vision, roles & objectives, an organizationwould put it in danger its growth and survival different nationalities. In India,the Group has been adjudged “The Best Employer in India and among the top11 | P a g e
  12. 12. 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study2007. Over 50 per cent of its revenues flow from its overseas operations .The group’s products and services, offer distinctive consumer solutions. Its 66state-of-the-art manufacturing units and sectoral service span throughout theworld.Entry of Syt. Ghanshyam Das Birla1916 - First taste of industrial management – take over of sick cotton millin Delhi.1918 - First limited company – Birla Brothers Limited. The real industrial thrust in 1919 with Birla Jute in Calcutta and1921. Jiyajeerao Cotton – Gwalior Birla Jute was established in defiance of Scottish monopoly.1923 - Purchase of Kesoram Cotton.1926 - Orient Paper Mills.1931-33 - Bharat Sugar, Upper Ganges Sugar, New Swadeshi Sugar, NewDelhi Sugar.By 1947 - Assets wroth Rs. 25 crores in 20 companies.Thereafter12 | P a g e
  13. 13. 1954 - Durgapur Iron & Steel1957 - Gwalior Rayon, Nagda1962 - Hindalco commencement of production1966 -Take over of Indian RayonADITYA BIRLA GROUPA truly multinational Indian GroupThe Aditya Birla Group was the first in Indian to venture overseas, by startinga joint venture in Ethiopia. Thereafter, over the last quarter century, thisgroup has started 20 very successful and diversified ventures spread throughthe Asian region. It has been declared by Euro money that this is the onlytruly multinational group of India. At present, the group has more than 50manufacturing units, producing a diverse range of products, financial service,trading and computer consultancy. It is also expanding its activities in the fieldof telecom, oil refinery, power generation, copper smelter etc.Globally the Aditya Birla Group is:A metals powerhouse, among the world’s most cost-efficient Aluminiumand copper producers. Hindalco-Novelist from its fold is a Fortune 500company. It is thelargest Aluminium rolling company. It is one of the three biggest producers ofprimary Aluminium in Asia, with the largest single location copper smelter.•No.1 in viscose staple fibre13 | P a g e
  14. 14. •The fourth largest producer of insulators•The fourth largest producer of carbon black The 11th largest cement producer globally Among the world’s top 15 BPO companies and among India’s top three Among the best energy efficient fertilizer plants In India•A premier branded garments player•The second largest player in viscose filament yarn•The second largest in the chlor-alkali sector•Among the top five mobile telephony companies A leading player in life insurance and asset management•Among the top three supermarket chains in the retail businessRock solid in fundamentals, the Aditya Birla Group nurtures a culturewhere success does not come in the way of the need to keep learningafresh, to keep experimentingBeyond business – “Reaching Out”A value based, caring corporate citizen the Aditya Birla Group inherentlybelieves in the trusteeship concept of management. A part of the group’sprofits is ploughed back in to meaningful welfare driven initiative that makea qualitative difference to the lives of marginalized people. These activities14 | P a g e
  15. 15. are carried out under the aegis of the Aditya Birla Center for communityinitiatives and Rural Development spearheaded by Mrs. Rajashree Birla.Beyond business — the Aditya Birla Group is:• •Working in 3,700 villages• •Reaching out to seven million people annually through the Aditya BirlaCentre forCommunity Initiatives and Rural Development, spearheaded by Mrs.Rajashree Birla• •Focusing on: health care, education, sustainable livelihood, infrastructureand espousing social causes• •Running 41 schools and 18 hospitalsTranscending the conventional barriers of business to send out a messagethat “They care”.GROUP PHILOSOPHYRESTS ON FOUR PILLARS:  CUSTOMERIZE  PEOPLE- IZE  STRATEGIZE  INSTITUTIONALIZE15 | P a g e
  16. 16. GROUP VALUESOUR VALUES ARE NON NEGOTIABLE, THEY ARE NEVER TO BEJETTISONED, FOR US OUR VALUES ARE OUR WELLSPRING. THESE ARE:  Integrity  COMMITMENT  PASSION  SEAMLESSNESS  SPEEDGROUP VISSION“TO BECOME A PREMIUM CONGLOMERATE WITH CLEAR BUSSINESSFOCUS AT EACH CORPORATE LEVEL”GROUP MISSION“TO DELIVER VALUE FOR OUR CUSTOMERS, SHAREHOLDERS,EMPLOYEES AND SOCIETY AT LARGE”Aditya Birla Management Corporation Ltd. (ABMCL)In a strategic move to institutionalize its management process, the AdityaBirla Group has set up Aditya Birla Management Corporation Limited(ABMCL) It is headed by Board of Directors with Mr. Kumar Mangalam Birlaas a Chairman.16 | P a g e
  17. 17. It is a Group’s apex decision making body and provides strategic direction togroup companies.The Group has following Achievement to its credit  The world’s no.1 in viscose staple fiber.  The third largest producer of insulator.  The world’s third largest producer of carbon black.  The world’s eighth largest producer of cement and the largest in a single  geography.  Asia’s largest integrated Aluminium producer.  A globally competitive, fast growing copper producer.  India’s premier branded garments player.  Among India’s most energy efficient private sector fertilizer plants.  India’s second largest producer of viscose filament yarn.  India’s second largest private sector insurance company.  Among the world’s top 15 and India’s top three BPO companies.  The group has also made successful forays into it and IT sector and has a significant presence in the Financial Sector and telecommunications sectors in tie-ups with giants like Sun Life insurance (Canada) and At &T (USA) respectively.HINDALCO INDUSTRY LTDHindalco Industries Limited, the metals flagship company of the AdityaBirla Group, is an industry leader in Aluminium and copper. A metalspowerhouse with a consolidated turnover of Rs.600, 128 million (US$ 1517 | P a g e
  18. 18. billion), Hindalco is the world’s largest Aluminium rolling company and oneof the biggest producers of primary Aluminium in Asia. Its copper smelter isthe world’s largest custom smelter at a single location.Established in 1958, Hindalco commissioned its Aluminium facility atRenusagar in Eastern U.P. in 1962. Later acquisitions and mergers, withIndal, Birla Copper and the Nifty and Mt.Gordon copper mines in Australia,strengthened the company’s position in value-added alumina, Aluminiumand copper products, with vertical integration through access to captivecopper concentrates. In 2007, the acquisition of Novelistt Inc. a world leaderin Aluminium rolling and can recycling marked a significant milestone in thehistory of the Aluminium industry in India. With Novelist under its foldHindalco ranks among the global top five Aluminium majors, as an integratedproducer with low cost alumina and Aluminium facilities combined with high-end rolling capabilities and a global footprint in 12 countries outside India. Itscombined turnover of US$ 15 billion, places it in the Fortune 500 leagueHINDALCO INDUSTRIES LIMITEDRENUSAGAR: SONEBHADRA; U.P.18 | P a g e
  19. 19. COMPANY PROFILEHindalco Industries Ltd. is the Flagship Company of Aditya Birla Group.The Aditya Birla Group is India’s second largest business house with aturnover of Rs. 280 billion, and Assets are valued at over Rs. 265 billion.The group has nearly 72000 employees in 18 countries.Hindalco Industries Limited was incorporated in 1958 and commercialproduction commenced in 1962. The Company was set up in technicalcollaboration with Kaiser Aluminium & Chemicals Corporation, USA.Hindalco is today one of India’s premium corporate, contributingsignificantly to economic growth, generating employment and setting highstandards in respect of fulfilling of obligations to all stakeholders. TheCompany prizes its ‘Human Capital’, and employees have beenreciprocating by turning in a sterling performance for the Company, yearafter year. Hindalco has an enviable record of harmonious IndustrialRelations, with not a single man day lost since the past 30 years onaccount of industrial strife. Company’s principal products comprise ofAluminium Ingots, Aluminium Billets, Aluminium Wire Rods, SheetProducts, Extrusions, Aluminium Foils and Aluminium Alloy Wheels. TheCompany’s by products include Gallium Metal, Vanadium Sludge and19 | P a g e
  20. 20. Aluminium Dross.Hindalco Industries Limited, one of the major producer of Aluminium metaland its semis in the country as well as a premier flagship company of A.V. Birlagroup in the biggest industrial enterprise of Uttar Pradesh. It is a publiclimited company in the private sector having about 39000 shareholders. It isthe largest Integrated Aluminium plant in India with all its productionfacilities viz.Alumina, Aluminium & Fabrication located at Renukoot near Rihand Dam inSonebhadra (Uttar Pradesh). Hindalco’s power division is situated atRenusagar about 35 km from Renukoot. In September 1959, an industriallicense was granted by the Government for setting up an integratedAluminium plant at Renusagar, with an initial installed capacity of 20000 MT.The construction work was completed with 18 months, a record for a majorjob of this kind.The dream of the great visionary Syt. G.D. Birla to locate an Aluminium plantnear Rihand power house came true. The late Prime Minister Pt. JawaharlalNehru, formally inaugurated the plant in January 1963. From the modestbeginning in 1962, Hindalco has now become an industrial giant with capacityto produce 242000 MT of Aluminium per annum.Renusagar a fast growing & thriving industrial township, which is nowhumming with activities & providing all the basic amenities of modern life tothe inhabitants.20 | P a g e
  21. 21. From being one of the most backward areas of U.P., it has now carved a placefor itself on the industrial map of India as well as World. Lying in the foothillsof the Vindhya range, Renusagar is about 198 km from Varanasi and 184 kmfrom Mirzapur.The expansion programme of plant from the initial capacity of 242000 MTtook place in the stages during the last thirty five years. Apart from catering tothe internal demand of Aluminium in the country, Hindalco is alsoexporting Aluminium semis to various countries including U.S.A., Germany,Japan etc.Renusagar power, a division of Hindalco is the major supplier of power toHindalco. The power generating capacity of Renusagar power division hasincreased to 575 MW since last year. Now Renusagar is able to meet the fullrequirement of Hindalco.Hindalco is an ISO-9002 company since 1994. Recently in July 1998 it hasalso received the certification of ISO-14001 for environment maintenancesystem. The company has been able to continuously enhance the qualityand range of the product and provide customer satisfaction.In 1962 when production started, the company had on its roll about 900staff and workmen and the present strength of employees is about 14000.The office and works site is located at Renukoot and there are zonal offices21 | P a g e
  22. 22. at Bangalore, Bombay, Delhi and Calcutta.The company is managed by a Board of Director and other SeniorExecutives.ManagementSyt. Kumar Mangalam Birla - ChairmanSyt. Debu Bhatacharya - Managing DirectorHindalco todayHindalco ranks as one of the largest Aluminium producer in India andcontributes about 35% of the total Aluminium production of the country. Thecompany’s fully integrated Aluminium operations consist of the mining ofBauxite, conversion of Bauxite into Alumina, production of primaryAluminiumfrom Alumina by electrolysis and production of properzi redraw rods, rolledproducts and extrusions.CapacitiesPresentPower 575 MWAlumina 4,50,000 MT p.a.Aluminium 2,42,000 MT p.a.22 | P a g e
  23. 23. Rolled products 80,000 MT p.a.Extrusions 15,000 MT p.a.Wire rods 50,000 MT p.a.Foils 5,000 MT p.a.Co-generation 37 MWJoint venture companies of Hindalco1. Indo-Gulf Fertilisers & Chemical Corporation Limited2. Bihar Caustic & Chemicals Limited3. Tanfac Industries Limited4. Mangalore Refinery & Petrochemicals Limited (MRPL)5. Birla AT & T Communications Limited6. Bina Power Supply Company Limited7. Birla Global Finance Limited (BGFL)8. Birla Capital International AMC Limited (BCIAMC)9. Rajshree Polyfil LimitedTo strengthen our position as a premium Aluminium company, sustainingdomestic leadership and global competitiveness through innovation,quality and value added growth.23 | P a g e
  24. 24. HINDALCO’S MISSIONTo relentlessly pursue the creation of superior shareholder value byexceeding customer expectations profitably, unleashing employee potentialand being a responsible corporate citizen adhering to our values.24 | P a g e
  25. 25. HINDALCO’S STRATEGYEFFICIENCY FOCUS: To be one of the lowest cost producers globally.EFFECTIVENESS FOCUS: To continue to remain the market leaderdomestically.GROWTH FOCUS: To purchase value adding growth opportunities inAluminium.25 | P a g e
  26. 26. HUMAN RESOURCE (HR)Human Resources play a vital role in shaping a healthy and growingorganization. Without doubt, human resources development has hencebeen aptly described as the “soul” of a vibrant and dynamic organization.The increasing complexity and problems of managing human resourcesplaces heavy demands on ensuring equal emphasis on all the sub-systemswhich play a crucial part in ensuring holistic development of the humanresources. Human Resources Management has gained immenseimportance in today’s environment of global competition to meet futurechallenges in the new millennium. In these days of rapid advancement inInformation Technology and Techno-Commercial aspects of business, itwould be eventually the “Man behind the Machine” who would determinewhich way / direction an organization goes.Human Resources Development systems have an important task inachieving the required dynamics to enable any organization to perform atits peak. The right recruitment and selection to start with, progressivetraining and development thereafter, and, a fair performance appraisalsystem gives an impetus to professional and proficient management of HR.There is yet another dimension of HRM which is directly related to, and falls26 | P a g e
  27. 27. within the ambit of organizational development that deserves majorattention because the “character & culture” of an organization is formed byHR of the organization and that will finally decide the future of theorganization.After said all this, it is imperative to consolidate on the available humanpotential and check HR wastages to ensure organizational effectiveness asit has become a key to sustain excellence and achieve competitiveadvantage over others. This project study on “LEADERSHIP AND ITS EFFECTSON EMPLOYEE PERFORMANCE” thusassumes an even greater relevance in the existing changing businessscenario especially so when there is a paradigm shift in the Organizations’approach towards Human Resources Management in outlining specificroles. Without defining HR vision, roles & objectives, an organization wouldjeopardize its growth and survival therefore it is all the more necessary toindigenize the HR sub-systems for one’s own benefit after a closemicroscopic scrutiny.27 | P a g e
  28. 28. HINDALCO HR VISION, MISSION & OBJECTIVESHR VISIONTo provide an enabling environment where employee competencies arenurtured and harnessed towards sustainable business growth andleadership.HR MISSIONTo proactively assess and provide for the HR needs of the business andcustomer for the attainment of organizational goals.HR OBJECTIVES•To collaborate with and support internal customer of HR in achievingbusinessobjectives through HR services viz. effective manpower planning , ensuringharmonious industrial relation etc.•To review and redesign the structure of the organisation with the clarity ofroles,responsibilities and accountability for overall organizational effectiveness andspeeding response to emerging business challenges28 | P a g e
  29. 29. To develop knowledge and skills of the employees and groom leaders withfunctional and business competencies to meet future demands of theorganizational (viz. flexibility and change management).•To benchmark best HR practices in order to enhance human resourceeffectiveness.•To enhance employee productivity through rationalization of jobs andmanpower optimization.•To promote employee involvement in decision-making, team working,creativity and empowerment.•To institutionalize transparency by framing, updating and communicatingsystemsand processes.•To maintain good liaison with government/ external agencies in order tobetterserve the organizational cause.•To provide a safe and healthy work environment and continuouslybenchmark andupgrade the standards of safety and hygiene.•To work towards improving the quality of work life of employees and thelives of29 | P a g e
  30. 30. their families.30 | P a g e
  31. 31. HINDALCO INDUSTRIES LIMITEDOrganization Chart of HRD Division V.P. (HR)Medical Head, HRD Head E.R Head Security Head Safety School(principles)Services directly or indirectly end to Customer Satisfaction. Satisfactionis a emotional response to his or her prior experience with andexpectations with the benefits provided by the services of servicedepartment of the organisation. It is believed that satisfaction willinfluence future. Customers can experience satisfaction with;•Organisation’s services, overall•Specific performance aspects of organisation’s services•Organisation’s conduct of transaction (delivery of services, repair visits,complaint handling, etc...)•The kind of relations between employees and the organisation.31 | P a g e
  32. 32. Nature and Definition of LeadershipLeadership has been around for as long as there have been people to lead. Thehistory of the world abounds with great leaders, from Moses and David in theOld Testament to Napoleon in the 1700s and Nelson Mandela and MartinLuther King in the 1900s (Bass, 1997). Leadership literature is characterisedby an endless proliferation of terms and definitions to deal with the construct,coupled with many extraneous connotations that create ambiguity of meaningand an array of imprecise descriptions (Bass, 1990; Bennis, 1959, in Yukl,1998). There are numerous ways of looking at leadership and manyinterpretations of its meaning (Mullins, 1999). Generally, leadersare people who are able to turn their beliefs and visions into reality, throughthe21 control and influence they exercise over other people (Bennis andNanus, 1985). Our understanding of leadership has changed over the years,but the basic constructs have remained the same. Hellriegel, et al. (2004:286)define leadership as being “the ability to influence others to act toward theattainment of a goal”, while Mullins (1999:253) adds that it is “a relationshipthrough which one person influences the behaviour of others”. Havingextensively investigated leadership in South Africa in 1983, Schilbach (inGerber, Nel and Van Dyk, 1996:343) defines leadership as “an interpersonalprocess through which a leader directs the activities of individuals orgroups towards the purposeful pursuance of given objectives within aparticular situation by means of communication”. Inherent in theseperspectives is the need to be skilled in varying degrees of emotionalintelligence, so as to adaptively manage environmental demands (Stuart andPauquet, 2001). A brilliant business leader must comprehend the importance32 | P a g e
  33. 33. of employees in achieving the ultimate goals of the organization, andmotivating these employees is of paramount importance in achieving thesegoals (Wall, et al., 1992).What Is Employee Development?Employee development is a joint, on-going effort on the part of an employeeand the organization for which he or she works to upgrade the employeesknowledge, skills, and abilities. Successful employee development requires abalance between an individuals career needs and goals and the organizationsneed to get work done.Employee development programs make positive contributions toorganizational performance. A more highly-skilled workforce can accomplishmore and a supervisors group can accomplish more as employees gain inexperience and knowledge.Why Should Employee Skills and Abilities Be Developed?A review of research literature in 2003 supported the commonly held beliefthat employee development programs make positive contributions toorganizational performance. A more highly skilled workforce can accomplishmore as the individuals gain in experience and knowledge.In addition, retaining an employee saves the organization a great deal ofmoney. One method of retention is to provide opportunities to develop newskills. In research conducted to assess what retained employees, developmentwas one of the top three retention items.33 | P a g e
  34. 34. Stages of Employee Development in HindalcoEveryone goes through several stages of development as they move frombeing a career "beginner" to a full expert in their field. Each stage has specificneeds and tasks to consider. As you work with employees on development, itcan be helpful to look at their stage in order to find the best kind of activitiesfor them. Keep in mind that the stages do not relate to age. If an employee hasrecently completed a career change, he or she is probably in the "explorationand trial" stage. If, on the other hand, he or she has burned out on his or hercareer, he or she might be in "disengagement" even though chronologically heor she might be in his or her early thirties in age.Stages in a Job or CareerStage Characteristics Needs Tasks Work with Learn to ask for Develop self- regular help image in theExploration and guidance jobTrial Learn to take Work is routine, initiative Becomes a " " detailedEstablishment Has own area of Build a Acceptand responsibility reputation organizational34 | P a g e
  35. 35. Stage Characteristics Needs TasksAdvancement realities Work Learn to work independently independently Learn how to cope Independence Produce and significant Deal with specialization results change or lack of it Learn how to get ahead Responsible for Feel Develop guiding others disappointment others throughMid Career: if goals are not knowledgeGrowth, Use great achievedMaintenance, breadth of Serve asDecline technical skill to Learn to help mentor support others organization Use experience Prepare Learn to let go to provide psychologicallyDisengagement direction for the for retirement Achieve organization35 | P a g e
  36. 36. Stage Characteristics Needs Tasks Learn to accept balance in life Influence a different role decisionsThe Role of the Supervisor in Employee Development inHindalcoThe supervisor has several roles to play, but providing information andsupport to facilitate the employees development is what is most important.There are a few basic roles for a supervisor in developing employees. Theyinclude: Coaching employees to help them determine what they need for development Providing both positive and corrective feedback Offering organizational insight, information, and advice Guiding the planning through goal setting and checking back over time Allotting time and money for development experiences Ensuring opportunities for applications of new learning36 | P a g e
  37. 37. It is very helpful for an employee to get an honest assessment of their work, aswell as access to others who may be able to provide information or coach theemployee.The successful supervisor will also respect every employees learning curve. Ittakes time for anyone to learn new skills and be able to apply them well; thisdoes not happen overnight. Building this development time into theapplication of a new skill set will make the employee more successful.Leadership Theories - 8 Major Leadership Theories37 | P a g e
  38. 38. In attempting to understand the nature of leadership and its different aspects,it is necessary to discuss the different theories of leadership that havedeveloped over time, as various schools of thought have brought theirdiffering ideas and knowledge to this discipline. There are various theories ofleadership, which attempt to explain the factors involved in the emergence ofleadership, the nature of leadership, or the consequences of leadership (Bass,1990). These theories attempted to identify various leadership styles, which isthe general manner in which leadership is practiced (Barling, Fullagar andBluen, 1983). The various evolutionary approaches to leadership arecategorized in Figure 3.1, as those that are traditional in nature (trait,behavioral and contingency approaches) and those that centre on newapproaches to leadership, transactional and transformational leadership.Interest in leadership increased during the early part of the twentieth century.Early leadership theories focused on what qualities distinguished betweenleaders and followers, while subsequent theories looked at other variablessuch as situational factors and skill level. While many different leadershiptheories have emerged, most can be classified as one of eight major types:1. “Great Man” Theories:Great Man theories assume that the capacity for leadership is inherent – thatgreat leaders are born, not made. These theories often portray great leadersas heroic, mythic, and destined to rise to leadership when needed. The term“Great Man” was used because, at the time, leadership was thought ofprimarily as a male quality, especially in terms of military leadership.38 | P a g e
  39. 39. 2. Trait Theories:Similar in some ways to “Great Man” theories, trait theory assumes thatpeople inherit certain qualities and traits that make them better suited toleadership. Trait theories often identify particular personality or behavioralcharacteristics shared by leaders. But if particular traits are key features ofleadership, how do we explain people who possess those qualities but are notleaders? This question is one of the difficulties in using trait theories toexplain leadership.3. Contingency Theories:Contingency theories of leadership focus on particular variables related to theenvironment that might determine which particular style of leadership is bestsuited for the situation. According to this theory, no leadership style is best inall situations. Success depends upon a number of variables, including theleadership style, qualities of the followers, and aspects of the situation.4. Situational Theories:Situational theories propose that leaders choose the best course of actionbased upon situational variable. Different styles of leadership may be moreappropriate for certain types of decision-making.5. Behavioral Theories:Behavioral theories of leadership are based upon the belief that great leadersare made, not born. Rooted in behaviorism, this leadership theory focuses on39 | P a g e
  40. 40. the actions of leaders, not on mental qualities or internal states. According tothis theory, people can learn to become leaders through teaching andobservation.6. Participative Theories:Participative leadership theories suggest that the ideal leadership style is onethat takes the input of others into account. These leaders encourageparticipation and contributions from group members and help groupmembers feel more relevant and committed to the decision-making process.In participative theories, however, the leader retains the right to allow theinput of others.7. Management Theories:Management theories (also known as “Transactional theories”) focus on therole of supervision, organization, and group performance. These theories baseleadership on a system of reward and punishment. Managerial theories areoften used in business; when employees are successful, they are rewarded;when they fail, they are reprimanded or punished.8. Relationship Theories:Relationship theories (also known as “Transformational theories”) focus uponthe connections formed between leaders and followers. These leadersmotivate and inspire people by helping group members see the importanceand higher good of the task. Transformational leaders are focused on the40 | P a g e
  41. 41. performance of group members, but also want each person to fulfill his or herpotential. These leaders often have high ethical and moral standards.Research Design/ MethodologyResearch DesignThe situation presented below was developed based on actual situationsexisting manufacturing company. Information for developing the plans wascollected through visit & personal interviews. The discussion questions at theend were developed to serve as pointers for sensitizing the concernedemployees with various issued involved. The study bring diversified ofproblems. For each discussion questions serve as tool.Research Methodology41 | P a g e
  42. 42. The present research is based mainly on primary data. This research is bothDescriptive and exploratory in nature. The primary data has been collected bythe survey method by using and through personal interviews. The data isboth in the qualitative and quantitative forms. The study has been undertakenin and around renusagar power division.Sampling methodsDuring the research non probabilistic sampling methods was used thissampling procedure did not provide for sampling procedure did not providefor estimating the probability each plan in population being included in thesample. Random sampling method is adopted.Questionnaire DesignThe questionnaire was confined to only the necessary questions. The scale ofmeasurement that was to be used was well scored out. Pre-testing of thequestionnaire was done and necessary changes as suggested by therespondents, have been incorporated. Close ended questions were asked bythe employees.42 | P a g e
  43. 43. Research ToolsArea SonebhadraSample type RandomLocation Renusagar power DivisionSample size 30Data type InterviewVariablesa) Dependent LeadershipIndependent performance of employeeTest Z- testTest applied Two tail testLevel of significance 5%Aptitude test Likert scale43 | P a g e
  44. 44. Review of LiteratureGordon GatesWashington State UniversityThe purpose of this article is to review literature on leadership and emotion toexpose theory and questions on the association between leadership andemotion. Burns (1978) implicit framework of leadership and emotion isrevealed. Questions about leadership and emotion by scholars in thesociological tradition are presented. A research agenda is forwarded. Such aresearch agenda will provide valuable insights on leadership-a relationshipthat enhances our feelings of predictability and motivates us to action.Journal of Leadership & Organizational Studies, Vol. 2, No. 4, 98-110 (1995)DOI: 10.1177/107179199500200408James H. Dulebohn, Janice C. Molloy, Shaun M. Pichler and Brian MurrayMany have noted the lack of human resource management research onemployee benefits, which is surprising because employer-sponsored benefitsare a primary concern of executives and employees alike. Moreover, of special44 | P a g e
  45. 45. interest to scholars, benefits provide a unique opportunity to examinefundamental theoretical and empirical questions about employee behaviorand contemporary employment relationships. This paper provides afoundation for such research by providing an overview of the context fromwhich U.S. employer-provided benefit programs evolved and thecontemporary state of benefits research in human resource management.Propositions related to primary employee benefit research are provided.45 | P a g e
  46. 46. AnalysisHypothesis TestingHypothesis testing begins by making an assumption about the populationparameter. Then we gather sample data and determined the sample statistic.To test the validity if our hypothesis the difference between the hypothesizedvalue and the actual value of the sample statistic will be determined. If thedifference between the hypothesized population is large then weautomatically reject our hypothesis. If it is small, we accept it.Null and Alternative Hypothesis : There are two types of hypothesis: Null Hypothesis Alternative HypothesisLevel of significance : when we choose 5% level of significance in a testprocedure, there are about 5 cases in 100 that we would reject the hypothesiswhen it should be accepted, that is, we are about 95%confident that we havemade the right decision.If sample size is 30 or more then we use z test when the mean and standarddeviation is known.46 | P a g e
  47. 47. The set of z scores outside the range – 1.96 and 1.96, constitute the criticalregion or region of rejection of the hypothesis or the region of significanceTwo – tailed Test : If the test is two- tailed,H1: µ≠µ0 then the test is calledtwo-tailed test and in such a case the critical region lies in both the right andleft tails of the sampling distribution of the test statistic, with total area equalto level of significance.The critical value for two tailed test with 5% level of significance is = ± 1.96.Hypothesis proposed for the study Null hypothesis (Ho) - “There is no significant impact Return from plan and impact of customer” Alternative hypothesis (Ha) - “There is no significant impact Return from plan and impact of customer”Testing of hypothesis  SAMPLE MEAN (µ) = 16.6  POPULATION MEAN = µO = 3.6  STANDARD DEVIATION (σ) = 2.847 | P a g e
  48. 48. CALCULATION OF Z TESTZ TEST = SAMPLE MEAN (µ) – POPULATION MEAN (µO) / STANDARDDEVIATIONZ TEST = SAMPLE MEAN (µ) – POPULATION MEAN (µO) / STANDARDDEVIATION16.6 – 3.6 / 2.8  13 / 2.8  4.64As the calculated value of Z test is 4.64 which fall outside the critical region ofacceptance.As, At 5% significance level for a Two Tailed Test the Z statistic is ± 1.96As the calculated Z value does not lie within the Acceptance region hence theNull Hypothesis is rejected and alternative hypothesis is accepted.Therefore, we can say, “There is no significant impact Return from plan andimpact of customer”48 | P a g e
  49. 49. Annexure 1 TOTAL OFRESPONDENTS Q Q2 Q3 Q4 Q5 SCORE 1 1 4 3 4 4 4 19 2 3 3 4 4 4 18 3 5 4 2 2 5 18 4 4 4 2 2 4 16 5 3 4 3 2 4 16 6 4 4 4 4 4 20 7 4 4 2 4 5 19 8 4 4 4 5 4 21 9 4 4 2 2 4 16 10 4 5 2 5 1 17 11 4 4 2 4 4 18 12 5 5 2 4 2 18 13 4 4 2 4 4 18 14 5 4 5 5 2 2149 | P a g e
  50. 50. 15 4 4 4 5 2 19 16 5 5 2 2 2 16 17 2 1 2 1 4 10 18 2 2 2 1 4 11 19 4 2 4 2 1 13 20 5 5 2 2 2 16 21 5 5 2 4 2 18 22 4 4 2 2 4 16 23 5 4 4 2 4 19 24 4 3 2 4 1 14 25 2 4 2 4 4 16 26 2 2 2 4 4 14 27 4 4 2 4 4 18 28 4 5 2 5 1 17 29 2 2 2 2 2 10 30 4 2 2 4 4 16Total Sum of the Score = 49850 | P a g e
  51. 51. Calculation of standard deviationTotal of score Sample mean Deviation (D) D2 19 16.6 2.4 5.76 18 16.6 1.4 1.96 18 16.6 1.4 1.96 16 16.6 -0.6 0.36 16 16.6 -0.6 0.36 20 16.6 3.4 11.56 19 16.6 2.4 5.76 21 16.6 4.4 19.36 16 16.6 -0.6 0.36 17 16.6 0.4 0.16 18 16.6 1.4 1.96 18 16.6 1.4 1.96 18 16.6 1.4 1.96 21 16.6 4.4 19.36 19 16.6 2.4 5.76 16 16.6 -0.6 0.3651 | P a g e
  52. 52. 10 16.6 -6.6 43.56 11 16.6 -5.6 31.36 13 16.6 -3.6 12.96 16 16.6 -0.6 0.36 18 16.6 1.4 1.96 16 16.6 -0.6 0.36 19 16.6 2.4 5.76 14 16.6 -2.6 6.76 16 16.6 -0.6 0.36 14 16.6 -2.6 6.76 18 16.6 1.4 1.96 17 16.6 0.4 0.16 10 16.6 -6.6 43.56 16 16.6 -0.6 0.36Total sum of deviation D2 = 235.52 | P a g e
  55. 55. Industry analysisThe global Aluminium market1 Robust flows into commodities have superseded traditional catalystsOne of the most unique factors of the extended cycle in commodities has beenthe dramatic expansion of the flow of investment funds in metals futures.Following the surge of financial inflows into commodity markets in the pasttwo years, the analysis of demand/supply and inventory trends hasdiminished in importance as an input into expected price trends. Heavy fundactivity has supplanted physical industry purchases and sales as the keydriver of price. Our global commodity analyst, Jon Bergtheil, believes that“price trends are now based on the interpretation of demand and supplyrather than the physical ebb and flow of metal surplus and shortfall in themarket1. Aluminium to move into surplusThe immediate demand drivers for Aluminium are, at the moment,moderating because of trends in global order books, global IP, and in specificmetal-intensive sectors, such as the rapidly weakening US housing market.Therefore, we expect the near-term demand trends to act as a drag on theAluminium price.The Aluminium industry is still in shortfall at the moment but the expandedalumina capacity and strong growth in Aluminium smelter capacity in China55 | P a g e
  56. 56. (along with sharply increasing semi-fabricated exports) should see a surplusbeginning to build up globally from 4Q06. We expect the industry to move intoits first annual surplus in four years during 2007, and to remain in surplusuntil the end of the decade, albeit with fairly moderate surpluses in relation topast experience. While we expect inventory levels to rise, JPMorgan’s forecastinventory levels do not reach the levels above 8 weeks, which occurred at thestart of the current bull market, and which kept the Aluminium price pinnedbelow US$1,400/tonne for two years. Conversely, the levels to which weexpect inventory to rise were more typically associated with price levels ofUS$1,700-1,800/t in the past than with recent levels above US$3,200/t. Again,much depends on the interpretation and mood as we progress into easierconditions as demand levels moderate globally.2. Aluminium demand-supply forecast‘1000 tonnes2004 2005 2006E 2007E 2008E 2009EAluminium production29,961 31,997 33,431 35,730 37,338 38,813Consumption30,377 32,092 33,623 35,287 37,110 38,920 Market balance -416 -95 -192443 228 -107Inventory (weeks)56 | P a g e
  57. 57. 6.59 6.36 6.13 6.71 7.02 6.13 Price forecast ($/t) 1729 1895 2521 2075 18501900 Price forecast (c/lb) 78.4 85.9 114.3 94.1 83.9 86.2For details please see industry report on Aluminium,Stealing market share from copper, dated September 25, 2006,57 | P a g e
  58. 58. Finding The total number of people surveyed were 30 among them 7 respondents strongly agrees, 16 respondents agree, The total number of people surveyed were 30 among them 6 respondents strongly agrees, 15 respondents agree, The total number of people surveyed were 30 among them 21 respondents disagrees from the fact that sudden increase58 | P a g e
  59. 59. OutcomesThe present study manipulated transformational and transactional leadershipstyles to examine their influence on individuals performance on a stressfultask, and on perceived social support, self-efficacy beliefs, emotions. Inaddition, this study examined whether these variables mediated therelationship between leadership style and performance. The transformationalleadership condition was associated with enhanced task performance, highersocial support perceptions, greater efficacy beliefs, lower negative affect, andlower threat appraisals compared to the transactional conditions. Causalmodeling revealed that leadership style had a direct, rather than indirect,effect on task performance. The present research extends leadership researchby providing an experimental evaluation of the costs/benefits oftransformational and transactional leadership underl task conditions. Some ofthe results parallel those from correlation field studies, thus corroboratingtransformational leadership theory while other results diverge from theory,but present opportunities for future research.59 | P a g e
  60. 60. ReferencesWWW.GOOGLE .COMWWW.SCRIBD.COMBaffour, G. G. (1999), The effects of employee participation and workdesign on firm performance: A managerial perspective. ManagementResearch News, Volume 22, No. 6.Bartram, T. and G. Casimir (2007), The relationship between leadership andfollower in-role performance and satisfaction with the leader: Themediating effects of empowerment and trust in the leader. Leadership andOrganization Development Journal, Volume 28, No. 1, pp. 4-19.Champathes, M. R. (2006), Coaching for performance improvement: Thecoach model. Development and Learning in Organizations, Volume 20,No. 2, pp.17-18.Chen, F. and D. Tjosvold (2006), Participative leadership by American andChinese managers in China: The role of leadership. Journal ofManagement Studies, Volume 43, Issue 8, pp. 1725-1752.Colvin, G. (2006), On the hot seat. Fortune, Volume 154, Issue 11, pp. 41-48.Kirkpatrick, D. L. (2006), Improving Employee Performance ThroughAppraisal and Coaching. American Management AssociationPublication.Klagge, J. (1997), Leadership development needs of today’s organizationalmanagers. Leadership and Organization Development Journal.ABBAS and YAQOOBKotter, J. P. (2001), What leaders really do. HarvardBusiness Review,60 | P a g e
  61. 61. Volume 79, Issue 11, pp. 85-96.Ladd, B. S. and V. Marshall (2004), Participation in decision making: Amatter of context? The Leadership and Organizational DevelopmentJournal, Volume 25, No. 8, pp. 646-662.Lam, S. S. K., X. P. Chen and J. Schaubroeck (2002), Participative decisionmaking and employee performance in different cultures: The moderating61 | P a g e
  62. 62. QuestionnaireThis survey is conducted for the purpose of finding out the feasibility of theconsumer regarding consumer perception on Leadership and its effects onemployee performance.Name ……………………………………………………………………..Occupation ……………………………………………………………………..Designation ………………………………………………………………………Questions Agree Strongly Disagree Strongly Neutral Agree Disagree1.Do you think thatleadership is the besttool for improving theperformance of anemployee?2.According to youleadership is the bestindicator for anindividual motivationof an employee?3.Does Leadership isan art to influence62 | P a g e
  63. 63. human behavior?4.Do you think thatwithout leadershipemployeesperformance cannotgrowth?5.Do you think thatwithout leadership anyorganizations growthis possible?63 | P a g e
  64. 64. ConclusionIn many cases strong leadership has resulted in dramatic effects on workengagement, team performance and innovation. However, the mt also showsthat poor leadership has negative effects on employee morale, project successand working relationships.The study, which involved a poll of 24 human resources (HR) professionalsacross Hindalco industries ltd., confirms that leadership is seen as animportant area of organizational functioning and development. The majority(63.2%) see leaders as having a lot of influence over their organizations’success, with only 2.5% reporting that leaders have very little influence. Themost common effects of good leadership are increased motivation (85.5%),improved working relationships (85.1%), higher team performance (80.7%),better solutions to problems (68.9%), and major innovations (41.6%).Leadership does have its downside, however. When not properly used,leadership can have negative effects. HR professionals have witnessed goodpeople quitting and a lack of morale (91.7%), employees’ skills not beingutilized (87.2%), feuding staff members (68.3%), and failed projects (60%).Three-quarters (76%) have also witnessed a disconnection between theorganization’s goals and its employees’ work."These figures should be a strong alert to organizations that poor leadershipcould be causing them major problems,” "Our results show that leadership isinfluential, and organizations with effective leadership in place are realizing awide range of benefits including increased financial performance andimproved work relationships."64 | P a g e
  65. 65. When asked to rate the importance of various leadership skills to success,90% of respondents reported that communication is critically important,followed by dealing with change (52.6%), managing people (48.2%), settinggoals (37.5%), solving problems (30.3%), and project management (12%).The study also uncovered a serious gap between the ratings of importance forthese skills and leaders’ current level of effectiveness. Only 27.8% ofrespondents rated leaders’ communication skills as effective, even thoughnine out of 10 see communication as a critical skill. Twenty-four per cent ofrespondents indicated that the leaders they know are not effective when itcomes to dealing with change. Respondents cited a number of obstacles thatget in the way of today’s leaders developing their skills. These include leadersnot seeing the need for improvement (67.5%), not having enough time(63.1%), lacking support from superiors (50.1%), and having inadequatetraining budgets (41.6%).Recommendations for LeadersRecommendations for leaders to be more effective included talking less andlistening more (81.4%), providing clear expectations (78.1%), having moreinformal interaction with staff (75.6%), clearly communicating how theorganization plans to manage change (89.4%), assigning tasks to staff basedon their skills rather than office politics (71.4%), holding people accountable(67.7%), giving employees more responsibility (64.6%), overcomingresistance to change (48%), and deferring to people with greater expertise(63.1%).“What surprised me from our research was that, even with the understandingthat leadership is key for organizational success, the leaders themselves were65 | P a g e
  66. 66. not actively pursuing their own development—despite the opportunitiesavailable,”24 HR professionals currently working in HINDALCO INDUSTRIES LTD..The majority of people see leaders as influential. Yet, six out of 10 employeealso believe that leaders are given too much credit for what their organizationaccomplishes. So although leadership is significant, its impact may beoverstated.It does not matter whether leaders are in business, government, consulting,education, or not-for-profit; the ranking of skills’ importance does not change.Three out of four HR professionals have seen feeble management of peoplelead to wasted time, duplicated efforts and poor working relationships. Morethan half of the survey respondents have observed team members workingagainst each other as a result of ineffective leadership.Other problems that come from poor leaders are missed opportunities,workplace conflict, increased sick days and absences, and qualified peoplebeing shown the door.10.8% of respondents have seen the inability to lead through change result ina company going out of business.Almost three-quarters have seen employees resist change that managementproposes because it was poorly managed.66 | P a g e
  67. 67. 67.3% of respondents said the ideal leader for their organization would be“someone who is democratic and involved, focuses on working with andthrough people.”Based on a sample of 26,477 leaders (Center for Creative Leadership), 40% ofpeople in leadership roles today are described as being thorough, orderly andfocused on organizational stability and consolidating systems. Thirty-nine percent of leaders say their style is being pragmatic and analytical, and focusingon the development of long-range, comprehensive plans. Only 12% of today’sleaders have a primary style that is democratic and involved.67 | P a g e