Change.

Group #3
Ajinkya Desai 2013242 Brian Fernandes 2013253 Chinmay Tiwari 2013254 Nishit Goyal 2013270 Ridhi Bahal 2013277 Rishabh Rawal 2013278 Ritika Samtaney 2013279 Sakshi Khandelwal 2013282 Shivani Gupta 2013289 Shivanjali Nath 2013290

Organizational History
-- YEAR 1995
Indias second largest conglomerate dating back to 1857 Diverse portfolio - textiles, cement, tea, sponge iron, aluminium, fertilizers, carbon black, palm oil refining, chemicals, and a clutch of small businesses first to put Indian business on the world map as far back as 1969
worlds largest producer of viscose staple fiber the largest refiner of palm oil the third largest producer of insulator largest producer of aluminium in the private sector only producer of linen in Indias textile industry

babu culture prevalent - head of the company always looked to for direction and decisions

THE CHANGE AGENT

Kumar Mangalam Birla

- Chairman Aditya Birla Group

POST 1995
Took over at the age of 27 2nd largest conglomerate dating back to 1857

Consolidated management under one banner Aditya Birla Group

Burdened with restructuring of a multi-project industrial empire with 39 companies and interests in 3 continents Aditya Birla Group had embarked on a redesign process which would have a healthy corporate culture at its core

Chanakyas leadership teachings says that leaders must act in the long terms interest of the organisation

Forces for change

Changing business environment
Globalisation of the Indian economy Rise of new business houses and competition in the market

Increasing social responsibility

Changing nature of workforce

Changes at the helm in the management

Need to check unplanned diversification Identification and development of core competencies Need for decentralization

Need to develop a global corporate mindset - babu culture so prevalent at Birla companies
Initial transition phase was more externally driven (because of market forces, customers, and shareholders)

Resistance
Financial markets did not view the restructuring process kindly, but restructuring continued with a focused business strategy in the key business areas Paternalistic culture and mindset Stunted growth due to licence raj Uncertainty related to line of reporting and accountability flat hierarchy Acquiring young and new talent

Process & Strategies used

Motivate people for competition and to share their best practices, systems like annual awards - units showcased their achievements and were publicly recognized for their excellence Instil meritocracy rather than compliance, the so-called kith-and-kin policy
Launched a 360-degree performance appraisal program that allowed managers to question even the leadership of the chairman 2 way communication and feedback New initiatives were instituted to enhance employee well-being, particularly in training, succession planning, health care, educating their children and other critical aspects Significant bearing on employee performance

Management talent pool that identified more than 200 managers as performers and put them on a fast track

Unit presidents given freedom to run their operations - overall supervision of the business heads Processes like world-class manufacturing also institutionalized so that the entire Group focuses on preparing itself for external competition and benchmarking itself

Evident & Visible changes

Attrition rate of 1 percent for 20042005 is one of the lowest in the country Brought in internal competition to rekindle outside competition Strong brand identity New-age businesses: telecom, financial services, retail and outsourcing Was ranked among best places to work in India by business world and business today magazines The Aditya Birla Group ranked No.4 in the list of global top companies for leaders and No.1 in Asia Pacific for 2011

Aditya Birla Group won the Economic Times Corporate Citizen Award 2011-12
The Group has topped the Nielsen's Corporate Image Monitor 2012-13 and emerged as the Number 1 corporate Aiming to more than double group revenues to $65 billion by 2015

Thank you...

TRANSACTIONAL LEADERSHIP
Guide their followers towards established goals by clarifying role and task requirements Focuses on the role of supervision, organization, and group performance Transactional leadership is a leadership style in which the leader promotes compliance of his followers through both rewards and punishments Characteristics: 1. Contingent reward 2. Management by exception (active) 3. Management by exception (passive) 4. Laissez-Faire Eg. Bill Gates

TRANSFORMATIONAL LEADERSHIP

Inspire followers to transcend their self interests for the good of the organisation Enhances the motivation, morale, and performance of followers through a variety of mechanisms Characteristics: 1. 2. 3. Idealized influence Inspirational motivation Intellectual stimulation

4.

Individualized consideration
Eg. Nelson Mandala, Narsimha Rao

TRANSACTIONAL v/s TRANSFORMATIONAL

Transactional Leadership is responsive

Works within the organizational culture

Employees achieve objectives through rewards and punishments set by leader Motivates followers by appealing to their own self-interest Management-by-exception: maintain the status quo; stress correct actions to improve performance

Transformational Leadership is proactive Works to change the organizational culture by implementing new ideas Employees achieve objectives through higher ideals and moral values Motivates followers by encouraging them to put group interests first Individualized consideration: Each behavior is directed to each individual to express consideration and support Intellectual stimulation: Promote creative and innovative ideas to solve problems