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.

* They are ever green dreamers and adventurers.

* They have a positive and realistic world view.

* They are missionaries, not career people.

* They have the mind set of abundance not scarcity.

* They can trust easily and look at positives of people.

* 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.

* Empowering people:

- 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:

- 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:

- 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.

• They focused on core competences and expanded geographically.

• Creation of operational excellence.

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

• 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.

• Very close relationship of organization with suppliers. Sharing of Vision and

Mission for working towards a common goal.

• No compromise in product Quality.

• Thrust on innovations – To provide value for money.

• Working for the betterment of humanity – Corporate Social Responsibility.

• 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.

• He grants freedom, appreciation and accepts participation and contribution from

employees through open and honest communication.

• 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.

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

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

• He developed decentralized structure where employees themselves initiate and manage

their work.

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

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

• 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.

• 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.

• Creating Innovations: Leadership Challenge, 10th Conference on Innovation,

Ahmedabad Management Association, February 24, 2004.

• Inspiring Innovations, 11th Innovation Conference, Ahmedabad Management

Association, 16th April, 2005.

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

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

• 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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