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Running head: LEADERSHIP INFLUENCES ON ORGANIZATIONAL CULTURE 1

LEADERSHIP INFLUENCES ON CULTURE 7

Leaderships Influence on Organizational Culture

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Leaderships Influence on Organizational Culture

Introduction

The culture of an organization plays critical roles in the creation of its identity while at the same time helping to set performance standards in the organization. The competitiveness of an organization is largely dependent on the culture that the organization has created. The culture that an organization creates determines the performance standards of employees while at the same time making sure that the organization adequately responds to its most pressing needs. While looking at the place of organizational culture on the performance of organizations, it is always common for individuals to fail to recognize the role of organizational leaders in the development and sustainability of organizational cultures. The primary purpose of this paper is to examine the manner in which an Indian organizational leader has contributed to the creation of organizational culture. The paper examines Ratan Tata, the chairman emeritus of the Tata Group of Companies. The Tata Group of companies is one of the largest companies in India. The group of companies runs over 90 companies spread out in seven fields or industries. Ratan became the chairman of the group in 1991 at a time when most people thought he was a novice and that he was not qualified to take the business to the next level. He vacated the position in 2012. To the surprise of his critics, Ratan took the group to the next level, and today, the company is one of the most notable Indian companies across the world. Ratan contributed to the creation of a suitable culture in the organization, and this development played a significant role in its enhanced performance. This paper holds that leadership approaches influence the perceptions and behaviors of the organization and, in the process contributing to the creation of organizational culture.

An examination of the organizational leader: Ratan Tata

The leader’s background

Ratan Tata was born and brought up in a prominent India n family, the Parsi family, which was involved in a number of business organizations. Even at the time when the British rulers were in India, and many citizens were facing difficult times, Ratan did not face these challenges since his family had sufficient resources (Maps of India, 2019). Ratan is highly educated after having graduated with a Bachelor’s degree in Architecture from Cornell University, USA. Ratan also enrolled at Harvard for an Advanced Management Program. Ratan joined his family business, Tata Group of companies, after having achieved his education in the United States (Maps of India, 2019).

What framed her or his worldview?

It is not without a reason that Ratan Tata is referred to as the Titan of Indian Business. An analysis of Ratan Tata’s philosophy reveals that he has been influenced by the environment in which he lived. While Ratan did not lack the basic needs of life as he grew up, he lived among poor people, and he was touched by their plight. Ratan was touched by the plight of these people, and he sought to make sure that he contributed towards the creation of solutions to their challenges. As a result of this, Ratan believed that it was incredibly necessary to make sure that businesses not only made profits but also contributed to the improvement of society. Ratan believes that business organizations have a responsibility and duty to respond to the needs of their employees and their clients. The Tata Group of companies has over 365,000 employees, and Ratan believes that the company has a duty to uplift the lives of these employees.

What is this leader’s personality style?

Ratan Tata’s life and relationship with other people is characterized by humility and respect for the lives of all people. In his life, Ratan has sought to promote the dignity and values of all people. The humility of this leader has made it possible for him to interact freely with all the employees in the organization.

How does this leader lead?

Tata is a democrat in his leadership approach. It is notable that at the time when he was at the helm of the company, Ratan provided an opportunity for all the stakeholders to contribute to the decision-making of the company. Most importantly, Ratan was open to criticism from all the employees in the company (Ghosh, 2017). At the time of his leadership, Ratan insisted that the voice of the employees had to be listened to and considered in the decisions that the organization made.

How does this leader’s personality influence his or her leadership?

There is a significant correlation between the personality of Ratan and his leadership style. To start with, the personality is seen in his humility and regard for the less fortunate and voiceless in society. Ratan believes in the equality of all humans, regardless of their social and economic status. It is this personality of Ratan that contributes to his democratic leadership. In his leadership style, Ratan believed that all people within the organization have a voice, and their voice must count in the decision-making in the organization. From the foregoing, it is evident that the personality of Ratan contributed significantly to the creation of his leadership style.

The influences of leadership on organizational culture

In Organizational culture and leadership, Schein (2010) says that “Sociologists have shown very convincingly how manners and morals, politeness and tact are not niceties of social life, but essential rules for how to keep from destroying each other socially" ( Schein, 2010). In organizations, the personality, values, beliefs, and habits of the organizational leaders play critical roles in determining the relationship among the employees and their relationship with the client, and these practices end up becoming part of the culture of the organization. Looking at the case of Ratan, it is notable that he was humble, and he valued the ideas of all people. The personality of Ratan contributed to the development of a culture of tolerance at the Tata Group of companies. Had Ratan possessed a different personality, perhaps the cultural outcomes in the company could have been very difficult.

In Culture Eats Strategy for Lunch, (Coffman, & Sorensen, 2013), make a suggestion that regardless of the strength of the strategy of an organization, the strategy will be destroyed if there is not a strong team that is united by a common culture. The culture of the organization is the glue that holds the employees together, and without it, the strategy of the organization will be impossible to implement (Coffman, & Sorensen, 2013). The leadership of Ratan reveals that he established a culture that united employees by making sure that all employees had voices that counted regardless of their position within the organization. Tata group was able to effectively implement its strategies because there is the glue that holds them in the culture.

Lanzer (2018) sees organizational culture as something that can be changed and modified and changed from time to time to align with the changing times or environment in which an organization operates. The reasoning behind this argument is that the culture of an organization ought to respond to the unique circumstances in which it operates. The implication of this is that when an organization is developing a culture, it must be within the reality that the culture can change based on the changing circumstances, environment, and needs of the organization. Looking at the case of Ratan at the Tata group of companies, it is evident that the culture that he helped create was flexible enough, and that is why the company was able to cope with his exit from the leadership of the company.

Conclusion

Leadership approaches influence the perceptions and behaviors of organizations and, in the process contributing to the creation of organizational culture. The paper has examined Ratan Tata, the chairman emeritus of the Tata Group of Companies. Ratan contributed to the creation of a suitable culture in the organization, and this development played a significant role in its enhanced performance. There is a significant correlation between the personality of Ratan and his leadership style. To start with, the personality is seen in his humility and regard for the less fortunate and voiceless in society. Ratan believes in the equality of all humans, regardless of their social and economic status. At the time of his leadership, Ratan insisted that the voice of the employees had to be listened to and considered in the decisions that the organization made. The personality of Ratan played a role in defining the culture of the organization under him, and this confirms the idea that leadership influences the culture of the organization.

References

Coffman, C., & Sorensen, K. (2013). Culture Eats Strategy for Lunch: The Secret of Extraordinary Results, Igniting the Passion Within. BookBaby.

Ghosh, B. (2017). 10 Success lessons from Ratan Tata – “The Titan of Indian Business” for entrepreneurs. Retrieved from http://knowstartup.com/2017/03/10-success-lessons-from-ratan-tata/

Lanzer, F. (2018). Organizational culture and climate: understanding, maintaining, and changing. Create Space, North Charleston, 10.

Maps of India. (2019). Ratan Naval Tata. Retrieved from https://business.mapsofindia.com/business-leaders/ratan-naval-tata.html

Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.