Leadership is integrated portion of our life. Harmonizing to corporate head and former US presidential campaigner Ross Perot, “ the rules of leading are timeless because, in a quickly changing universe, human nature remains a changeless ” . We all experience leading in our life from early childhood in our households, through friendly relationships, societal, recreational and athleticss activities, school and higher instruction, to political relations and authorities, and, of class, in our work, we all recognize leading in other people and frequently in ourselves. In authorities, planetary corporations and little concerns likewise, the leading function is going more demanding, more unfastened to scrutiny and more hard [ Roger Gill ] .
The development of leading theory besides parallels the development of organisational theory. The bureaucratic signifier of organisation is characterized by ‘laissez-faire leading ‘ – whereby alleged leaders tend to avoid taking a base, disregard jobs, non follow up, and chorus from step ining – or transactional leading, in which leaders practise direction by exclusion, concentrating merely on divergences from what is required, and contingent wages, honoring people ( either materially or psychologically ) for accomplishing what is required. The outgrowth of the post-bureaucratic signifier of organisation in the late 19th century reflects the development of the construct of transformational leading.
Theory & A ; Approaches to Leadership: Number of Leadership theories and attacks has been evolved on the footing of Style, Trait, Behavioural, Transformational, Situational and Charisma. Many research workers made attempts associating some of the theories across these leading attacks. But each theoretical account has its ain pros, cons, premises and restrictions. Latest researches are conducted on Situational & A ; Transformational leading manners. Leadership gurus presented new theoretical accounts as fluctuations to the already bing theoretical accounts. Max Weber, MacGregor, Bernard Bass, Warren Bennis & A ; Nanus are few of import research workers in the country of transformational leading. Understanding the difference between transactional and transformational leading is critical in acquiring the whole construct of transformational leading theory.
In general, a relationship between two people is based on the degree of exchange they have. Exchange need non be money or stuff ; it can be anything. The more exchange they have the more stronger the relation. Manager ‘s expects more productiveness from employee in order to give good wagess. In this manner, if something is done to anyone based on the return so that relation is called as ‘Transactional ‘ type. In concern, leaders announces wagess in bend to the productiveness. These dealingss are all about demands, conditions and wagess. In life, at one point of clip, things happen without outlook from other side. Say, ma ‘s dedicated service to her child. Ma does n’t anticipate anything from the kid and the service she provides in raising the kid isA unconditioned, dedicated, committed. Mom plays a major function in determining up the child ‘s future life. This type of relation is called as ‘Transformational ‘ . Leaderships do be in this universe with these behaviors. Transformational Leaders work toward a common end with followings ; put followings in forepart and develop them ; take followings ‘ to following degree ; inspire followings to exceed their ain opportunisms in accomplishing superior consequences.
Leadership Approach in TATA Group:
TATA Group founded in 1868, is an Indian transnational pudding stone headquartered in the Mumbai, India. The Group has 500,000 employees spread over six continents ( more than 80 states ) . TATA Group has market capitalisation worth $ 70bn as of today and is the largest private corporate group in India. TATA Group is biggest employer in UK, using more than 50,000 people. TATA Group has involvements in communications, IT, technology, stuffs, services, energy, consumer merchandises and chemicals. Its president, Ratan Tata is one of India ‘s and the universe ‘s most influential individual right now. The Tata Group is known for its good concern moralss and corporate administration.
The Group leading manner has been rather consistent from its being. The Group has incorporated some more leading alterations which are indispensable in current century to drive towards more competitory. In footings of leading manner, TATA Group has adopted a team-led civilization.
With Ratan as a leader, the direction manner of the full group changed, trust became a immense aspect and subject of the group. Ratan put in a complete organizational restructuring in topographic point when he took over taking a more matrix-style attack edifice squads, replacing many of the senior directors with younger 1s and conveying the retirement age of senior directors to 65 from 70 old ages. These alterations would hold evidently transformed a batch in the concern, senior directors would hold had to be on their toes and flexibleness and adaptability became indispensable qualities to hold. The leading changed from a centralised, bid Centre to a much more distributed signifier with employees and all directors basking greater duty and cognition about the Group, which would hold in bend ; motivated them to work harder and as a group. From typical Leadership theoretical accounts available such as the McGregor Theory X and Y ; where a theory X director believes workers dislike work, are non originative and avoid all duty while a theory Y director believes that workers get every bit much enjoyment from work as they can deduce with leisure, accept duty and are originative ; it can be seen from this, that Ratan wanted all his directors to be modelled as closely to Theory Y and he himself could be called a Theory Y director. He encouraged directors to be advanced and portion all their thoughts, confer withing actively with them and giving them more duty and significantly encouraged team-working. Using standard leading manner theoretical accounts of Autocratic, Democratic, Paternalistic and Laissez-faire, Ratan Tata can be described as the leader who employs a more democratic attack but besides uses aspects of the other three theoretical accounts, a perfect leader in my position. He is democratic because he encourages communicating and engagement, and workers have entree to some of the cognition of the concern. However, he is besides paternalistic in a manner, because he cares greatly about the wellbeing of his employees as was apparent because after the 26/11 panic onslaughts, he personally visited each affected employee ‘s abode ( 80 in sum ) which shows he does hold a humanistic touch to his leading every bit good. He is bossy in certain ways but merely when needed particularly when speedy and informed determinations have to be taken, but he is ne’er excessively commanding in his nature, being a adult male of few words and being more of a adult male of action, this is apparent from the mode he sharply pushes for bold international trades, such as during the planetary acquisitions of concern human dynamos such as Corus, Jaguar and Land Rover, and Tetley Tea. This quotation mark from Mr. Muthuram, another executive manager, clearly shows that he is a adult male, who is purpose on succeeding and is certain of himself,
“ Ratan was the main designer of the Corus trade. I was worried about the magnitude and the sum of money.
But he instilled assurance. ”
He besides uses aspects of the Laissez-Faire theoretical account such as the deputation of of import responsibilities and decision-making, he besides does non in any manner interfere with any director ‘s operation, he might do a wide strategic appraisal but he does non interfere in operational issues and inside informations, this shows that he has complete trust and religion in his directors and believes in their ability, this quotation mark from Mr. Gopalakrishnan, an executive manager of the company, shows how much value Ratan Tata topographic points on his trust, this can be extremely actuating for directors and workers likewise,
“ I remember what Mr Tata told us at a meeting. He said that he will go on to swear all his directors, but one time they lose that trust, he will travel after them. I think that is a really just trade ”
Looking at other leading theoretical accounts, such as Max Weber ‘s Transactional and Transformational Leadership theoretical accounts, where a leader is classed in three brackets which are Bureaucratic, Charismatic and Traditional, where a bureaucratic leader is one who is ever bound by the set regulation and does non desire to step beyond them ; a Traditional leader is one who does and follows everything from a long yesteryear or history and ever loyally obeys these ‘traditions ‘ ; a Charismatic leader is one who uses his ain awards or abilities to animate and is one who can be described as radically opposed to administrative regulations and legal rules. From these theoretical accounts Ratan Tata easy falls into the Charismatic Model because he is one who leads by illustration, coming up with extremely advanced thoughts such as the one hundred thousand auto the ‘Nano ‘ , budget hotels or low-end tickers, he brought extremist alteration to the Tata Group as a whole, altering it from its ‘Traditional ‘ mentality to new more flexible and adaptative cultural mentality.
One can besides look at Bennis and Nanus ‘s Transformational leading theoretical account which states that transformational leaders make their followings into self-empowered leaders and their chief focal point is to joint vision and values clearly so the freshly self-empowered leaders know where to travel ; it so talks about the four I ‘s of Transformational leading which are
Idealised Influence ( being a function theoretical account )
Inspirational Motivation ( cultivating a squad spirit, motivate and supply a challenge )
Intellectual Stimulation ( Innovation and creativeness )
Individual Consideration ( mentoring and supplying support for followings )
Ratan Tata can be so described as a complete transformational leader, because he epitomises all the I ‘s and is clearly a adult male with a great vision ; he changed the concern civilization to one that is team-based, he empowers all his directors and executives and has complete religion in them, he is highly advanced and is credited for much of the Group ‘s new merchandises, he places a great trade of importance to his Research and Development section and he decidedly cares deeply about the public assistance of all his employees and directors, which was demonstrated during the 26/11 panic onslaughts that hit Mumbai and targeted one of his hotels. He is a airy and cogent evidence of this comes from this quotation mark,
“ One hundred old ages from now, I expect Tatas to be much bigger, of class, than it is now. More significantly, I hope the group comes to be regarded as being the best in India. Best in the Manner in which we operate, Best in the merchandises we deliver, and best in our value system and moralss. Having said that, I hope that a hundred old ages from now we will distribute our wings far beyond India, that we become a planetary group, runing in many states, as Indian concern pudding stone that is at place in the universe, transporting the same set of trust as we do today ”
Ratan Tata is a leader who realised the sort of market his concerns were in competitively and ever wanted them to be up to day of the month in all their procedures and engineering. This celebrated quotation mark from his lips is proof plenty of this fact,
“ A company or concern which remains inactive is a concern that will decease ; a company that invariably alterations and accepts that there are better ways to make things than the manner they are done today, is a company that will last in the planetary market that we face. ”
From this statement we can calculate that he is a ferocious rival and a adult male who understands the market he faces. Ratan Tata. He is besides a really deep mind and a superb strategian as is described by one of his Executive managers, Mr. Alan Rosling,
“ He is a deep mind and highly strategic. He is ever 2-3 stairss in front ”
Another of import quality that Ratan Tata has is that he is a adult male of strong Integrity and rule ; he ne’er compromises on his moralss and does non cover with any concern or company that compromises them and values his stockholders really extremely, another quotation mark from Mr. Gopalakrishnan shows this fact,
“ Tata has shown that there is no other manner he will make concern other than do it ethically ”
There is grounds of this fact from the incident when the fundss of Tata Finance were in immense losingss due to fiscal mistakes made by senior functionaries ; Ratan announced that the keeping company they owned would supply the necessary finance needed for the unascertained losingss, therefore giving stockholders their dividend. His personality is reflecting in the Group ‘s repute and giving them a good planetary image.
I choose Ratan Tata because I feel he is a complete leader and he is person who decidedly has transformed the face of the Indian concern universe, he is person who ne’er compromises on his moralss and rules and has set a strong value system for the Tata Group as a whole, in a state where ethical and value-orientated concern is ne’er a top precedence. He is person who epitomises the complete leader with all his qualities ; he is a adult male of great unity and self-respect, and he is besides a title-holder of societal causes with his the Tata Foundation being the largest charitable administration base in the state, and he is a adult male of modestness who ne’er likes to take recognition for anything even if it does wholly belong to him.
Critically measure what is the relationship between Prediction Markets and the construct of Open Innovation.
Answer to Question 2:
There is a really strong cardinal relationship between Prediction Markets and the Concept
Discuss whether and to what extent concern administrations can do usage of Prediction Markets and critically measure what are the necessary alterations that administrations have to set in topographic point in order to gain from the usage of Prediction Markets.
Answer to Question 3:
In comparing with traditional methods to demand prognosis, Prediction Markets provides
Appendix: Mention List
hypertext transfer protocol: //www.consensuspoint.com/prediction-markets-blog/betting-to-improve-the-odds
hypertext transfer protocol: //www.openinnovators.net/5-essential-thoughts-for-open-source-innovation/
hypertext transfer protocol: //www.thestandard.com/news/2008/03/05/google-bets-valueprediction- markets
hypertext transfer protocol: //c21org.typepad.com/21st_century_organization/200911/predictionmarket_chicago.htHYPERLINK “ hypertext transfer protocol: //c21org.typepad.com/21st_century_organization/2009/11/predictionmarkets_chicago.html ” milliliter
hypertext transfer protocol: //en.wikipedia.org/wiki/Prediction_market
Rhodes, Paul W. and Koleman Strumpf, “ Historical Presidential Betting Markets, ” Journal of Economic Perspectives, 18 ( 2 ) , 127-142, 2004.
Kunz, Ben, “ Prediction Markets Meet Wall Street, ” A BusinessWeekA ( Oct. 14, 2008 )
Consensus Point, “ What is a Prediction Market? ” ( Web site accessed April 1, 2009 ) . , ” uses a “ anticipation market ” to “ unleash the corporate wisdom of organisations and helps them derive a more accurate image of what is traveling on in their organisation and the industry, ” harmonizing toA Ron Hoffner, associate, Ingenix Consulting