Charismatic Leadership

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CHARISMATIC LEADERSHIP

-Mr. Kumar Mangalam Birla

ADITYA BIRLA GROUP

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CHARISMATIC

THEORY

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CHARISMATIC LEADERSHIP•Charismatic leaders guide by using charm and self- confidence.

•Their personality attracts attention and gains admirers.

•These leaders with good ethics, intentions have the power to transform the people they lead.

•These leaders who are immoral can be forces of devastation and destruction.

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Robert House (1977) used four phrases to define Charismatic Leadership

•Dominant

•Strong desire to influence others

•Self-confident

•Strong sense of one’s own moral values

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Conger & Kanungo(1998) describe 5 behavioral attributes

•Vision and articulation

•Sensitivity to the environment

•Sensitivity to the member needs

•Personal risk taking

•Performing unconventional behavior

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Jay Conger(1989) 4 stage model of Charismatic Leadership

•Continual assessment of the environment and formulating a vision

•Communication of vision, using motivational and persuasive arguments

•Building trust and commitment, subordinates must desire and support the goals of the leader

•Achieving the vision

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Jay Conger(1989) 4 stage model of Charismatic Leadership

•Continual assessment of the environment and formulating a vision

•Communication of vision, using motivational and persuasive arguments

•Building trust and commitment, subordinates must desire and support the goals of the leader

•Achieving the vision

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About Aditya Birla Group

A US $35 billion corporation.

The Aditya Birla Group is in the League of Fortune 500.

It operates in over 27 countries.

The Group was declared among the top best employers in India by the Aon-Hewitt Survey and ranked second.

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Globally

Hindalco-Novelis is the largest aluminium rolling company.

No.1 in Viscose Staple Fibre.

The largest producer of Carbon Black.

The fourth-largest producer of Insulators.

The top 10 Cement producers.

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India

A top fashion (branded apparel)and lifestyle player.

The second-largest producer of Viscose filament yarn.

A leading player in life insurance and asset management.

The top two supermarket chains in the retail business.

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Management under K.M.Birla

Kumar Mangalam Birla decided to consolidate entire group’s companies under one umbrella of the “Aditya Birla Group”.

He introduced a retirement policy in 1995.

In 1996,he launched corporate logo. The group selected the rising sun as the logo.

In 1996,K.M.Birla changed the group’s Recruitment process.

In 1999 K.M.Birla launched the Aditya Birla scholarship to promote excellence among students.

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BIRLA FAMILY

The Birla family is one of the foremost business houses in India.

The fore-father of the Birla family is Shiv Narayan Birla. Basant Kumar Birla (B.K. Birla) was associated with a

large number of Companies & became the Chairman of Kesoram Industries.

Aditya Birla , father of Kumar Mangalam Birla was one of the first Indian industrialists to expand abroad.

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Kumar Mangalam Birla

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8th Youngest Billionaire

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• The Chairman of The Aditya Birla Group

•Prediction- Greatest Birla

•1995 his father died

• Holds several key positions on various regulatory and professional boards

•A Chartered Accountant

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Kumar Mangalam Birla –Key Positions

•A Director of the Central Board of Directors of the Reserve Bank of India

•Chairman of the Staff Sub-Committee of the Central Board of the Reserve Bank of India

•Serves on the Prime Minister of India's Advisory Council on Trade and Industry

•Authored the nation's First Report on Corporate Governance

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•Mr. K. Birla is the Director of the G. D. Birla Medical Research and Education foundation.

• The Asian Regional Advisory Board of London Business School

• The Economic Times Corporate Advisory Board

•Chairman of Securities and Exchange Board of India's (SEBI)

Achievements

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Awards

•The Ernst & Young Entrepreneur of the Year (2005)

•Business Leader of the Year at the AIMA Managing India Awards 2010 (AIMA)

•Entrepreneur of the Decade Award – 2009

•The Corporate Role Model Award – 2008 by Amity International Business School

•The Asia PNDTV's Global Indian Leader of the Year

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http://www.adityabirla.com/the_group/km_birla_profile.htm

•The Most Socially Responsible Leader by Outlook business magazine in 2007

•Global HR Excellence – Exemplary Leader Award

•Young Super Performer in the CEO Category (2005)

•Business India Businessman of the Year (2003)

• NITIE's Business Visionary (2003)

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•Speaking with R Sridharan of ET Now, Kumar Mangalam Birla says, “We will use the creeping acquisition route to increase promoter holdings across our companies.”

•"Kumar Mangalam's working model is completely different from his father's. Kumar Mangalam believes in delegation of power. His style is more group-oriented," BK says.

.

Quotes

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9 Lessons by Mr. Kumar Birla

Lesson 1"What is it about the transformation process that needs to be managed?“

Lesson 2“ During transformation , symbolism can and does have a positive effect.”

Lesson 3“The process of transformation is about communication, communication and more communication.”

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Quotes

“We need boldness, speed, decisiveness and experimentation in policy and implementation”

– Kumar Mangalam Birla

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Lesson 4“Our experience has been that a heterogeneous mix of people, though very difficult to lead, helps in the process of change. You need the pacers, the spinners, the good wicket keepers just as much as the pinch hitters, to become a winning team.”

Lesson5“It has been our learning that it is good to analyse failures. We do this not merely to not repeat the same mistakes, but equally to showcase success. We have created a platform called the Aditya Birla Awards where team achievements across the organisation are recognised every year.”

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Quotes

“The prospect for a return to pre-crisis normalcy are difficult the world today manifests certain polarities and contradictory development-like simultaneous occurrence of low and high inflation scarcity and shortage of labor and sharp political differences”

-Kumar Mangalam Birla

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Lesson 6“A considerable part of the change in our case reflects shifts in geography as well as a rapid pace of mergers and acquisitions. The result is that the organisation is faced with the challenge of having to integrate with a culture that is foreign to it and practices it has been unexposed to.”

Lesson 7“Tracking the organisational climate, especially in a process of catharsis, we believe is critical, simply because you cannot set a problem right until it is correctly diagnosed.”

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Quotes

“The nation's economic batteries have to be re-energized and rejuvenated... For India, the message is clear”


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Quotes

"There are two roadblocks in the way of transforming India into an economic giant and one of them was education. I believe that if education is privatised at primary and secondary level, lot of our problems will be answered to”


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Relations Between Charismatic theory and Mr. Kumar Birla

• Clear Vision•Empowerment•Empathy•Cohesiveness•Articulate •Motivator

•Self confident•Persona exudes leadership•Honest •Sincere towards investors•Efficient•Direct

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Thank You

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Group Number: 1Group Members:

1.Onita Mascarenhas

2.Nikita Thawai

3.Prachiti Dhopatkar

4.Anusha Cheiran

Documents

Charismatic Leadership