Organisational Leadership-case Study

Organizations play a very important role in societies. From birth to death we deal with organizations, small or large, public or private. Organizations formed by human beings sometimes even control us, dominate society, stifle development or progress, promote growth and change, alter our environmental conditions, and at the same time fulfill our human and societal needs. Their role is multidimensional and dual in nature: they can contribute to the progress and satisfying human needs, but at the same time they can be a major obstacle in fulfilling accomplishments. They are a powerful instrument in governance and the promotion of democratic values. Initially organizations were simple in structure and management, but as they grew larger they became sophisticated and complex in structure and function, requiring managerial skills and techniques beyond the comprehension of many people. Now here comes the role of the leader who could filter the negative traits and thus direct the organization towards optimism. A leader is someone who understands and lives life in line some purpose. Someone who is authentic, has a clear sense of his/her own personal values and is seen by others to embody those values. Someone who inspires others to follow the examples, just by being themselves. Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Although your position as a manager, supervisor, etc. gives you the authority to accomplish certain tasks and objectives in the organization, this power does not make you a leader, it simply makes you the boss. Leadership differs in a way that it makes the followers thrive to achieve goals, rather than simply bossing people around. Leadership is influencing people with Empathy and Social Skills, and not by force, coercion or authority. Leaders first bring that positive change into themselves, which they dream to bring in this world.

“Leaders are visionary and action oriented people. Leadership is to having a vision. A vision is a dream of an idealized future scenario, an inspiring description of Society, organizations or community. Leadership also consists of an ability to describe to others the vision of the future. If one’s actions inspire others to dream more, learn more, do more and become more, then he/she is genuinely a leader. Thus, leadership consists of actions along with vision.”

Key characteristics of Leaders *

They are ever enthusiastic and energetic.

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They are ever green dreamers and adventurers.

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They have a positive and realistic world view.

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They are missionaries, not career people.

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They have the mind set of abundance not scarcity.

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They can trust easily and look at positives of people.

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They consider life and living as very sacred.

Key character traits of leadership. Honesty

- It is to always say what we are and we do. We don’t try to show what we are not.

Integrity

- It is always to do what we say. We always fulfill our promises and commitments.

Courage

- It is an act or decision of overcoming our fears. We do what we believe is right at any cost.

Sensitivity

- It means understanding other people – their way of looking at things and their feelings.

Maturity

- It is a balance of different traits of when, where, how much, how and why.

Organizational Leadership An organization is all about people and relationships. Organization leadership is about inspiring its people to excel. It requires an ability to see potentials of the people. A leader has the inner eyes to recognize people’s capabilities and to facilitate the growth of people around him. “Look at the people as they are, and they will remain what they are. Look at the people as they can be, and they would become what they are capable to be.” In today’s age, particularly in India those companies that “INNOVATE” are likely to be more successful. For companies to become perpetually Innovative, a culture needs to be built up. The leadership has to bring about the culture of Innovation through directing the energies towards same.

It would involve:(a)

A culture that empowers people.

(b)

Recognition of Innovative thinking.

(c)

Prevalence of outstanding leadership.

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Empowering people:

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Leaders who encourage risks, look at problems as opportunities turned inside out.

They are therefore willing to allow people to get involved, and share with them the enthusiasm that can lead to finding newer, innovative solutions to problems. *

Recognition of Innovative thinking:

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The systematic encouragement of Innovative thinking and of innovative effort is

important to nurture Innovative culture. -

Even in situations where the novel approaches may not have yielded benefits that

may have been wishes for, it is essential to publically applaud such efforts. -

It is appreciation of those people who have consciously contributed to the creation

of something that is better and more effective. *

Outstanding Leadership:

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Leaders can transform organizations. Leaders, who can inspire change, are those

who have certain quality about them. -

Outstanding leaders cannot be satisfied with the status quo. Organizations that

demonstrate high levels of innovation are those that share the beliefs that things can always be made better than they are today. It is good leaders who help carry people successfully over uncharted paths. -

This spirit triggers innovative thinking at all levels, and makes organization

survive and grow even in difficult situations.

‘Business Today’ declared best managed companies in India recently. They are Tata Motors, ICICI Bank, Grasim Industries, Tata Steel, Great Eastern Shipping and Bharati Airtel. The companies have done well in good and bad times. Their leadership ensured following principles and success formulae: •

Their vision was courageous.

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They focused on core competences and expanded geographically.

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Creation of operational excellence.

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Best governance. Not only law-abiding, but operations beyond that.

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Top managers have grown from inside ladders. For instance, Mr. A. M. Naik, of L & T has grown from Trainee Engineer to the position of Chairman.

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Very close relationship of organization with suppliers. Sharing of Vision and Mission for working towards a common goal.

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No compromise in product Quality.

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Thrust on innovations – To provide value for money.

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Working for the betterment of humanity – Corporate Social Responsibility.

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Better relations with stake holders, namely customers, employees, business associates, suppliers, depositors and share holders.

MODERN DAY ORGANIZATION AND ROLE OF THE LEADER Organizations are indispensable to human and civilization progress and in meeting societal needs. Organization and civilization are interdependent twins; one could not develop without the other. Today in modern societies, organizations shape values, set structural roles and norms in civilizational directions, change and determine human destinies, and perform a wide range of functions from integration and human fulfillment to disintegration and individual alienation. From their birth, organizations were simple in structure and management, but as they grew larger they became sophisticated and complex in structure and function, requiring managerial skills and techniques beyond the comprehension of many people. In modern day organization the workload is designed to promote and maintain health aspects of employees. Additionally, much importance is given to contextual factors such as the technology and the environment of the organization and the professional level of the employees. In today’s era, an organization or a workplace is not confined into a building or two, but is spread over a large geographical area having no direct connection. Therefore, the leader has to establish some channel of communication to enhance and maintain the productivity and remove faults occurring due to miscommunication. Nowadays, leaders are more oriented towards human relationships, or have a combination of task and relationship orientation, thus have a positive impact on both job satisfaction of employees and the productivity of the organization. Modern leaders vary the leadership style depending on the maturity of the employees, i.e. their motivation to reach results, their willingness and ability to take responsibility and their knowledge and experience. When the maturity of the employees is low, the leadership is task-oriented, but it can be more relationship-oriented with a higher maturity. When the maturity is very high, neither a task- nor a relationship-oriented leadership is needed. Instead, in such a situation, leadership responsibilities are delegated to the employees.

A new concept of “Self-managed work teams” is also introduced in organizational units to give a high degree of control to the employees. In such a team, the members are

planning, organizing and controlling their own work tasks. This concept contributes in inducing the feeling of responsibility, which is linked both to increased job satisfaction and increasing productivity. Thus, leaders may play an important role in creating such a decentralized structure, and also in creating an organizational culture that supports a high degree of control among the employees.

CASE STUDY This is case study of the Swedish company situated at Stockholm area, constructing and producing cable machines for industrial applications. This company is a leading performer in the market and constantly has to find innovative technical solutions to stay in that position. When the study was undertaken, the company had about 60 employees in three countries, including Sweden. The founder of the company was, at the time of the study, still active as a leader of the company, although his son was formally the chief executive officer (CEO). The organization has a structure of self managed teams and an organizational culture with the expressed aim to promote the possibilities of the employees to develop their skills and influence their work situation. According to market surveys, the company has had a better economic performance than other comparable companies (Market Manager, 2004). At the same time, the employees of the company have also had a comparatively low sickness rate (SCB, 2004), on the average 2 days a year. Strategies of the company The founder of the company has consciously developed and refined the culture and the structure of the organization since it was established in the 1970s. He claims that ‘my business idea is basically honesty’ and that power and control is associated with fear and suspicion, and a sign of lacking confidence. He assumes that all individuals want to do something meaningful, take responsibility and develop in their work. He thinks that this is best promoted by freedom, appreciation and participation. The philosophy of the

founder permeates both the structure and the culture of the organization. It is also reflected in the buildings of the company. A new factory building was constructed in 2003. The major parts of this building are made of glass, meant to symbolize a pure flow of communication. The idea is that the shaping of the building should promote the participation of all employees and promote an open and honest communication. On the walls are hanging pictures from the company’s history, such as the first machines constructed. The founder of the company is actively communicating the values of the organizational culture to the employees. He is taking a central role in the meetings with all the employees. In his communication he is often using metaphors, such as ‘geese flying in a delta formation’, related to the organization of the company. He spends a lot of time talking about the importance of the employees being alert and taking responsibility, emphasizing that it is the responsibility of the employees to make the company profitable and to find sustainable solutions. An observation was made when the founder of the company together with all the employees formulated the quarterly goals of the company. The employees made their contributions when they were asked to, and the founder decided if he thought that a contribution was worth writing down. During the meeting, a picture of the company’s economic turnover was shown, and the founder talked about where money needed to be saved. He encouraged the employees to work with the quality of the products to change a negative trend. The final version of the goals was typed out and handed to all employees during the next coffee break. A respect but also a certain distance to the founder of the company was expressed by the employees interviewed. They believed that a prerequisite for the company’s organization of work was a leader who raised the awareness of the employees’ own responsibilities for work performance. All the persons interviewed described the frequent communication in the company as something positive and an important condition for their work. The employees felt motivated by what they perceived as a good atmosphere in the organization. They felt

that their contributions were appreciated. According to the CEO, they try to have a straight and honest communication in the organization, where everyone should be aware of the situation of the company. Innovations by the leader The leader of the company has decentralized structure which has no formal hierarchy no foremen and no time clocks. Instead, it is organized in self-managed teams. In these teams, the employees are expected to take initiative, try new things, take responsibility, adapt and co-operate. According to one of the employees, ‘it is a mental development, you are developing mentally, it is not only . . . machines, and you are also developing as an individual. You always learn something new all the time . . . no limits are set, you can decide yourself in what pace and all that. . .’. There is also an ambition to avoid professional divisions in the company. For example, the employees take turns in managing the reception and cleaning the workplaces. According to the CEO, the practical work experiences of the employees are more important than their formal education. Therefore, it is important for the company to have a work environment where the employees can learn, develop and take responsibility. Employees who are unwilling to step outside their professional limits and want to have a clear working division are not suitable for this company. The work of the self-managed teams is goal-oriented. A structured schedule is used for setting annual and quarterly goals of the company, and the employees are involved in this process. The employees are also setting their own goals every week according to the schedule. The quarterly and annual goals were described in the interviews as reminder of what is expected by the individual, an eye-opener, rather than financial goals or goals for production. At coffee breaks every day at 9 AM and 2 PM, where all the employees are expected to participate. These breaks are used as information meetings. A bell rings in the building to call attention that the meetings are taking place. A flipchart and an overhead projector are always present to be used at these occasions.

Observations and outcomes •

The founder/leader of the company promotes the individuals to take the responsibilities, carry out innovation and other meaningful works/things that would directly or indirectly benefit the company and the individual.

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He grants freedom, appreciation and accepts participation and contribution from employees through open and honest communication.

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He supplies motivation to the employees through various measures like hanging on walls the pictures of the company’s historical achievements which depict the involvement of the employees.

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He supports the workers of the company to initiate and execute their ideas during meeting and other occasions.

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All the employers were motivated by the environment of the organization created by leader and CEO of the organization.

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He developed decentralized structure where employees themselves initiate and manage their work.

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He also gives proper chance to the employees, so that can do the required work according to their wisdom and need.

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In this particular structure of the organization employees work in self managed team which is goal oriented.

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He spends a lot of time talking about the importance of the employees being alert and taking responsibility, emphasizing that it is the responsibility of the employees to make the company profitable and to find sustainable solutions.

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The employees felt motivated by what they perceived as a good atmosphere in the organization.

References Books referred: •

Sanjiv Shah, The Gift of Leadership, Oasis Publication, 2007.

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Creating Innovations: Leadership Challenge, 10th Conference on Innovation, Ahmedabad Management Association, February 24, 2004.

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Inspiring Innovations, 11th Innovation Conference, Ahmedabad Management Association, 16th April, 2005.

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Daniel Goleman, Working with Emotional Intelligence – Audio Renaissance, 1998.

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Dr. Dhaval Mehta – Freelance Writer, Article – ‘Management’ from Gujarat Samachar Sunday Supplement ‘Ravipurti’- 5th July, 2009.

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Health Promotion International, Vol. 23 No. 2, Leadership, organization and health at work: a case study of a Swedish industrial company, by ANDREA ERIKSSON1, BJARNE JANSSON, J. A. HAGLUND and RUNO AXELSSON.

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