Вы находитесь на странице: 1из 23

Study on Organization Structure And Leadership Style : Mahindra & Mahindra

Submitted By :
Name Roll No. Sarbojit Mallick 144 Shreya Basu Roy 153 Shubham Bansal 154 Sonal Teotia 164 Shaleen Ahuja 202 Saurav Kumar 212

Contents
Introduction to Organizational Structure and Leadership style

Article Review o Applying organizational learning: lessons from the Automotive industry o Strategic Renewal: How an organization reorganized its structure with strategy o Leadership styles and Work Related Values of Managers and Employees of Manufacturing Enterprises in Post-Communist Countries o Profiles in Change: Revitalizing the Automotive Industry o Leadership style and post-merger satisfaction Findings and Discussions References Annexure: Questionnaire

Page 1 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Introduction to Organizational Structure and Leadership style


Organizational structure is best defined as the hierarchical framework within which an organization frames its authority and delegates responsibility, allocates rights and duties through communication. It also determines the flow of information across the levels of management and the extent to which the roles and powers are coordinated. The structure of an organization relies on its vision, objectives and the methodology adopted to achieve them. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. Leadership styles can be of different kinds depending upon the leader and the type of organization structures .Some commonly adopted genres of leadership are as follows : A visionary leader is a transformational leader who has a vision and motivates its resources to implement his ideas. This style of leadership involves restructuring of organization and also diversification into various business avenues .A leader also coaches his employees to align them with the objective of the company. This is also known as transactional leadership where employees and the employer are mutually benefitted; the workforce is supplemented by incentives and increase in productivity and profitability for the employer. The secret to the smooth functioning of an unit is the team spirit that prevails within the workforce. Effective communication and delegation of responsibilities increases the confidence of the staff. This is also known as affiliative leadership. A consensus among a t eam can help a company guide through troubled waters by bolstering the decision making process, leaders adopt the democratic style of leadership when the goals are unclear and distant. Quality and customer satisfaction are the two main criterion for the sales and goodwill of a product. High standards are demanded by the market due to stiff competition prevalent. Some leaders set very high standards of quality which in turn increases the profitability of the firm, this is known as pacesetting style of leadership. During the earlier days of industrial evolution ,the centralized structure of organization was followed where leaders used a commanding style where the margin of error was very less. This form of leadership is effective during times of crisis and it has become obsolete. The need of human resources has been recognized and companies are doing the best to ensure to arrest attrition and loss of expertise. Leadership is duty-bound for invariably analyzing and developing the organization's ability to meet the requirements of its stakeholders and its efficiency and effectiveness. When leadership plays an active role in organizational development, it

Page 2 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

produces a positive corporate culture, motivated employees and the ability to change and grow as an organization.

Leadership Styles and Organization Structural Configurations


Objective
To classify traditional and contemporary leadership according to their attributes and connotations in order to correlate leadership style to seven types of organizations

Summary
Basic 2 core components of leadership: 1) Power: potential ability of a person to influence other persons to implement orders. 2) Personality trait: persisting characteristics according to which individuals can be rated Overlaying two core components power and traits, there are leadership competences because leadership can be learned, the leadership competence may exist or be developed: 1) Cognitive competencehaving multiple experiences, self-awareness, forward-looking, sharing information, listening to subordinates, life-long learning, envisioning, having business knowledge, social awareness, and creativeness. 2) Affective competenceself-confidence, willing to serve people, activeness, honesty and integrity, insisting on excellence, courage, compassion, decisiveness, passion, and willing to lead. 3) Technical competenceability to design & execute, ability to organize, relationship management, inspiring and motivating others, fostering communication, producing high-quality work, building group cohesiveness and pride and ability to design. LEADERSHIP STYLES: For decades, leadership concepts have evolved from the transactional approach to charismatic, transformational, and servant behaviours. 1) Transactional leadership are leaders using contingent rewards to motivate employees and leaders exerting corrective action only when subordinates fail to achieve performance goals. They excel at traditional management functions, such as planning and budgeting, and generally focus on impersonal aspects of task performance. They have stronger technical competence.

Page 3 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

2) Charismatic leaders are visionaries who challenge people to perform above and beyond whats expected of themto pursue organizational goals over self-interests. The followers of a charismatic leader perceive that the leaders beliefs being correct, obeying the leader willingly. Thus, charismatic leaders have stronger affective competence. 3) Transformational leaders also focus on intangible qualities such as vision, shared values, and ideas to build relationships but also the fulfilment of vision and the use of strategy to make changes in the actual fabric of organizational culture. They have the ability to lead changes. Thus, important for organizations that are in trouble. They have stronger cognitive competence. 4) Servant leaders are close to the transformational leaders. However, servant leaders put service before self, listen to affirm others, inspire trust by being trustworthy, and nourish others. They have stronger both cognitive and affective competences. ORGANIZATION STRUCTURE TYPES AND LEADERSHIP: Entrepreneurial structure: Simple structure & has a top manager and workers in the operating core. Decision making & strategy is done by top managers, so leadership takes precedence. Machine organization: very large, e.g., automobile company, has centralized decision authority, formalized communication channels. They are often criticized for lack of self-control by operating core, lack of innovation, weak ideology, but suits to a stable environment and the goal of efficiency. Diversified organization: has machine-configuration coupled together under central administrative headquarter to provide support services common to all the divisions, typically found in largest and mature organization. The headquarter manager handles major strategy for companys general business; the divisional managers manage individual business strategies. Professional organization: bureaucratic without being centralized, as in universities, hospitals, or accounting firms. This organization has a normal strategic apex, a very large operating core, a short middle line, a small techno-structure, and a large support staff. Power in these structure flows to those professionals who care to devote efforts to doing administrative instead of professional works. Innovative organization: Structure need to be adaptable. The top managers seldom manage to give orders in the usual meaning (they act as liaisons) because its reliance on highly trained experts, power over its decisions and actions are distributed to various places. Missionary organization: The ideology ties the members to the organization, generating a sense of mission. Although the organization rooted in sense of mission associated with charismatic leadership, the organization can achieve the very form of decentralization, i.e., all who are accepted into the organization share its power. The leader is expected to inspire others to pursue the mission. Political organization: There is no preferred method of coordination, no single dominant part of the organization, no clear type of decentralization. Everything depends on the fluidity of informal power, marshaled to win individual issues. The level of politics vary in the conventional structure (entrepreneurial, machine, diversified, professional, innovative, and missionary configuration); some are more prone to politics.

Findings
Seven organization forms versus four leadership styles, the strengths of leadership attribute
Page 4 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

are in the matrix :


Organization Form Entrepreneurial Machine Diversified Professional Innovative Missionary Political Transactional Medium Strong Medium Weak Weak Weak Medium Leadership styles Charismatic Transformational Strong Medium Medium Weak Medium Weak Medium Medium Medium Strong Strong Medium Medium Medium Servant Weak Weak Weak Strong Medium Medium Weak

Conclusion
Power, personal traits (openness, conscientiousness, extroversion, agreeableness, and neuroticism), and leadership competences (cognitive, affective, technical competence) influence a leader to be a transactional, charismatic, transformational, or servant one. Every organization has its own structural configuration and leadership style to reach its expected objective. The overview of leadership styles and the organization structural configurations revel correlation between leadership style and the organization form, i.e., each organization has its leadership style with three categories of strength.

Page 5 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Applying organizational learning: lessons from the Automotive industry


Objective
To understand the concepts of Organizational Learning and Learning Organization and to study the implications of its application in the automotive industry

Summary
This article briefly discusses the evolution of the various Organizational Management theories: Taylors Scientific Management Theory flourished in the 1910s. However, to address the human resource aspect of the organization, the HR Movement came in the 1930s. Then, in 1960s the Contingency Theory evolved which gave its weightage to the external environment. Then came the Culture-Excellence Approach in the 1980s. Finally followed the Organizational Learning Theory in the 1990s. The article mainly concentrates on the Organizational Learning and its application in the automotive industry. The importance of Organizational Learning was realized by different organizations in order to improve their competitiveness for longer survival. This theory comprises of two contrasting concepts, Organizational Learning and Learning Organization. Organizational learning is a concept used to describe the various activities that take place in an organization while the Learning Organization refers to a particular type of organization which has attained the ability to learn and adapt on-the-go While Organizational Learning facilitates learning in a systematic, practical and conscious manner which involves everyone in the organization, a learning organization is the highest state of organizational learning, in which an organization has achieved the ability to transform itself continuously through the development, participation and involvement of all its members. The research on Organizational Learning was illustrated by a brief discussion of comparative case studies of companies in the automotive industry
Page 6 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Findings
During times of crisis, when automotive industry faced stagnant sales growth, organizational learning helped improve the process through better knowledge and understanding as below: Innovation was the need of the hour and could occur as a result of insight from within the organization or evolved from external influences by expanding organizational boundaries. These organizations developed cultures which encouraged established styles of functioning driven by individuals and teams. They changed their approach to Team-based for most of the processes to improve employment policies. This also helped them to deal with issues like over-capacity, inflexible work practices, low productivity and poor employment policies. They realized the need to reinvent, to learn new skills and implement lean organizational forms for better production practices.

Conclusion
Organizational learning can introduce many advantages to a company: innovation, flexibility, staff commitment, etc. It also helps an organization to survive in the competitive market through constant learning and evolution. This concept is widely useful in the automotive industry to constantly showcase good performance.

Page 7 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Strategic Renewal: How an organization reorganized its structure with strategy


Objective
The paper contains a study of the relationship between organization structure and strategic goals. It establishes that organizations structure should be aligned with the leaderships intended strategy more than narrow goals of operational efficiency.

Summary
In case of any strategy renewals, organization structure needs to be tweaked to be brought in sync with the changed strategy. Hence, the management needs to constantly analyze whether the organization structure is aligned with the strategic goals for the evolved business environment. The various reasons why organizations might suffer from this strategy- structure mismatch are summed up as follows: The firm might have changed the structure to focus on a few profitable activities therefore compromising on strategy. The firm might have undergone a strategic change or leadership change and hence the old organization structure is no longer relevant. There might be a lethargic attitude on the part of the firm wherein both strategy and structure are not renewed in the face of changing market scenario.

The case of Wyler Oil Co. is discussed in which organization restructuring as well as leadership change was done to make the organization crisper and oriented to pursue strategic goals. The Gulf division of the organization is discussed in detail which is composed of three functional departments - Exploration, Production and Administration. Exploration department has been a laggard in terms of new discoveries. Overall the division is profitable and added 50 % to the revenues of the company. But the future looks bleak given the lack of any new discoveries, delayed decisions and upcoming competition.
Page 8 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Findings Characteristics of structure of the Exploration unit of Gulf division are as follows: Less productive than the production department which scored above it. Slow decision making as multilayered and decisions have to go through too many levels and do not get timely attention. This has leaded to lose of opportunities of exploration. Bureaucratic organization not preferred by talented people at the company lead to lack of good leaders. Difficulty in coordination as specialists were increasingly separated by extended functional hierarchies.

An external consultancy hired by the company brought the following issues to the forefront The Exploration division was being subordinated by Production division. This was detrimental as the role of the Exploration division was much more important from the strategic perspective in getting new business. The exploration department was too complex and specialized and unable to be in line with leadership goals.

The company hence took renewed the structure of the exploration to confirm to the lines as given below: Divided Gulf into East Gulf, Central Gulf, and West Gulf divisions with each division with separate functional heads for Exploration, Planning and Strategy. Interdependence between the otherwise separate divisions. Common resources like drilling rigs and functional resources are shared among the divisions to reduce waste and foster inter division collaboration. In the exploration department, project teams working like mini profit centres. Set of technical professionals geologists, geological engineers, and reservoir engineers- in the same team. Investment proposals passed though peer review leading to better intra-division collaboration and close working relationships among functions. Leadership development as employees are successfully trained and promoted among the divisions. Fast decisions as not more than three layers of management.

Page 9 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Conclusion
The Oil reserves explored grew by 70% in the next 5 years and development of the barren regions took place. The following conclusions can be drawn on the basis of the restructuring process and its outcomes. As an organization becomes complex and specialized, the management needs to constantly keep tabs in compliance to the intended strategy and leadership goals. Structure should be modified to fall in line with strategic needs and the leadership style. Organizations need to cultivate a culture of collaborations so that one can change the organization structure rapidly and effectively.

Page 10 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Leadership styles and Work Related Values of Managers and Employees of Manufacturing Enterprises in PostCommunist Countries
Objective
To measure the work related cultural values and leadership styles using research instruments and to study the relationship between them.

Summary
The article is basically a survey based study to measure the cultural values of managers and employees in nine manufacturing companies of the former Communist countries. The countries involved in the survey are Russia, Georgia, Kazakhstan and Kyrgyzstan. The study uses different tools to measure the leadership styles in these regions. One of the vital parameter for the success of an organization is a match between the style of the leadership followed and the organizational norms and culture practiced which is the next area of study. Following are the areas of research with supporting theoretical frameworks. In each of the study area, a hypothesis is established based on the previous findings, which is then verified by the values obtained from the samples. a) Cultural Value Dimension: Some of the parameters identified for the study purpose are Power Distance (PDI) , Individualism (IND) , Masculinity (MAS) Uncertainty Avoidance (UAI) , Long Term Orientation (LTO) . Apart from these, Paternalism (PTI) and Fatalism (FTI) were also established to understand the practices and organizational culture in Asian countries. b) Leadership: The models used for the study of leadership can be categorized into transformational and transactional styles. While the transformational style focuses on individual development through challenges, motivation and inspiration, the transactional style involves employee benefits and their exchange relation with leaders. Multifactor Leadership Questionnaire (MLQ) was used to measure the different behaviours involved in both the style. The parameters used for transformational style were Individualized Consideration (IC) , Intellectual Simulation (IS) , Charisma (CHA) and Inspirational Motivation(IM). Transactional leadership included Contingent Reward (CR) behaviour and Management by Exception (ME).

Page 11 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

c) Interface of cultural values and leadership: Across cultures, the characteristics and attributes of leadership styles tend to vary. There were some findings done by GLOBE consortium which claimed that although there are different conceptions of leadership attributes in cross-cultural research but some of the parameters are universally same. Based on the dimensions of measurement of leadership styles, it was speculated that transformational leadership is more effective in collectivist cultures. Also a comparison of American and Russian leadership ways is discussed on the basis of transformational transactional models. The sample survey was based on the concept that the countries selected were having differences on cultural dimensions but the sector from which the companies were chosen was the same. Two level of employees surveyed were middle level managers and production employees.

Findings
In cultural dimensions, MAS and PTI resulted in the largest difference among the four countries. The score was high for FTI and PTI for all the four countries. The value for LTO was much for Russia as compared to other three countries which suggested that this attribute is deeply rooted in daily activities in Russian culture. The comparison between managers and employees yielded two significant changes, high IND value for managers while high MAS value for employees. Considering the findings for leadership dimensions, the Russian managers had lower values for the transformational leadership behaviours than managers in the other three countries. The ME parameter fetched a high score for all the four countries while CR was high for three of them. In the findings for all the four countries, the correlation between the cultural attributes and the leadership styles was very small

Conclusion
The data suggested the relationship between the two with only a small value of significance. The reasons for this could be the influence of some factors other than cultural dimensions on leadership values or the attributes used in the study may not be sufficient to develop a relationship. The investigation between the relationship of cultural values and leadership styles can be continued at new levels, as we obtained a weak relation between them.

Page 12 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Profiles in Change: Revitalizing the Automotive Industry


Objective
To study the effect of transformational leadership on the performance of an organization and to determine the causes and needs for revitalization of a firm

Summary
The need to revitalization and reorganization are two criteria for the success of an organization .Eminent industry leaders understood this need to change even in the absence of immediate stimuli. The decrease of profits, increase in costs and loss of market segments can be a very strong signal for change. Change in the organization is like a human drama and it follows a certain ideological pattern. Organizations must understand the need for change, respond to it and restructure in order to increase the productivity and profitability to gain an edge over their competitors. Transformational leaders develop a future course of action and motivate the employees to follow and implement the plans. They achieve their goals by building cross functional teams and delegation of responsibility ,which increases the flow of ideas and nurtures innovation channelizing the energy into the reorganization. This process has many impediments like anxiety and fear of unknown challenges in the workforce and strong opposition inside the firm which can be dealt with active participation from the management. The transformation process of an organization is dependent on the human resources. Team spirit and active participation of the employees is required to increase the effectiveness of the change.

Findings
We have found that transformation of companies takes place either due to the vision of a leader or in response to certain stimuli like where escalating costs of raw materials, huge manpower and foreign competition which results in loss of market share and plummeting of sales. We have cases of International Harvester where these streamlining of operations and human resources resulted in
Page 13 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

profits. Also in the General Motors case redefining responsibility with the help of cross functional teams improved the confidence of the work force as they were a part of the decision making process. Technology upgradation, innovation, improved communication between employees of the organization, outsourcing and Just in Time techniques had helped the cause. Change is a painful process as it also means layoffs and selling units to sustain, as we have the case of International Harvester. Quality of the product played a major role as in the case of Detroit Diesel Allison, as it is a way to attract customers and improve the goodwill of the company.

Conclusion
Transformation or revitalization is necessary for an organization to sustain competition and expand its area of expertise .But change is a very slow process which affects the human resources, manufacturing systems and revenue of a firm. Due to social inertia it had been aborted in many organizations. Adaptability in stiff competitive environments is necessary to sustain the growth and profits of the firm and for that change is revitalization is required.

Page 14 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Leadership style and post-merger satisfaction


Objective
To study the impact of different kinds of leadership styles on post merger satisfaction and performance of
employees

Summary
Mergers and acquisitions have a deep impact both on acquiring and acquired firm. Even under best of circumstances it takes a lot of time for employees to feel truly assimilated in the merged company. Mergers increases employee uncertainty and with this there is a rise in stress and decrease in overall performance and commitment. Here the manager's role becomes cardinal in influencing employees attitude and make them comfortable with the change. This research article helps in associating the leadership style with post merger satisfaction of employee. Association is based on the two approaches of studying the leadership style Power-influence approach which tends to explain leaders effectiveness in terms of source and amount of power available with leader and how he exerts those power on the follower, and Behaviour approach which emphasizes on what leaders do rather than their source or trait of power. As mergers and acquisitions lead to a politically charged environment, it is likely that managers tend to draw on various powers to influence and motivate the employee. Previous researches gives association of different kind of power like expert, referent, coercive, legitimate and reward power with subordinates satisfaction and performance. This research extends these results further to determine how these powers are associated specifically with post merger satisfaction and performance of employee. Similarly relationship of behaviour approaches like consideration and initiating structure and transformational leadership with post merger performance and satisfaction is established.

Findings
Through this research, it has been find out that more satisfaction is provided if more rewards , legitimate expert and referent power is used in the leadership style, more coercive power in the leadership leads to lesser post merger satisfaction. Similarly, it has been deduced greater level of
Page 15 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

consideration, initiating structure and transformational leadership leads to higher merger satisfaction . The findings also suggest that transformational leadership has the greatest impact on post merger satisfaction followed by reward power and coercive power. This impact differs across different pay classes. For salaried exempt (managerial) employees, coercive power, transformational leadership, and consideration are predictive of merger satisfaction Legitimate power is the only significant predictor of merger satisfaction for union clerical employees, while coercive power and referent power predict merger satisfaction for union hourly employees. No particular leadership style is predictive of merger satisfaction for salaried non-exempt employees (e.g. clerks and secretaries).Also the level of impact of
leadership style differed for acquired and the acquiring company.

Conclusion
This research provides an overview of impact of different leadership style on merger satisfacton , however the findings were limited because of several reasons such as only post merger data was examined and examination was done on only one organization. Nontheless,it provides evidence that leadership style influences the most merger attitude of employee. It also supports a situational approach to leadership .Different impact on different pay class shows that merger implementation strategy and type of communication may have to differ or different class of employee depending on their needs and concerns.

Page 16 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Findings & Discussions


The company and the leadership In 1945, Mahindra and Mahindra started off their business in trading steel, both onshore and offshore. In 1947 they diversified into the automobile sector manufacturing Willis Jeeps. The transformational leadership shown by Mr. K.C. Mahindra created a landmark in the Jeep industry. It forayed into the international market as an exporter of utility vehicles and spare parts. Due to the vision of K.C Mahindra who understood the damaging effects the License Raj could have on the business, he decided to enter the farm industry and the technological division which was rechristened as Tech Mahindra. It has continued to diversify its operations ever since through both joint ventures and Greenfield investments. Vision and Mission Statement To be in top 3 in customer satisfaction in India, want to become 2nd largest commercial vehicle
manufacturer in India, to achieve sustainability by introducing hybrid/electric vehicles, successful US presence. To be in top 10 global brands

Strategic Goals: To lead in all sectors of business with hand in hand in JV or individually Integrating sustainability into the business using electric and hybrid car models Drive positive change in the lives of our stakeholders and communities across the world to enable them to Rise Focus on successful business performance and achieve double digit OPM by creating products with differentiated value propositions.

Organization Structure Restructuring: Anand Mahindra, the nephew of K. Mahindra is credited with the transformation of the family business to a professional firm operating in different segments. He led a massive reorganization with introduction of state-of-the-art technology and modern manufacturing techniques. The introduction of

Page 17 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

these modern methodology resulted in a growth of revenue and M&M gained an edge over its competitors. In 1994, a major restructuring took place which was responsible for the revitalization of the firm. The six strategic units i.e. : Automotive, Farm Equipment, Infrastructure, Trade and Financial Services, Information Technology, and Automotive Components. This was done to decrease costs and increase the efficiency of the organization.

Mahindra and Mahindra Organization Structure Each strategic business unit was responsible for its own performance, operations and profits. The main purpose was to serve the customer better, delegate responsibility to lower management and trigger innovation with the influx of new ideas and perspectives. In response to the growing competition in the market, Mahindra and Mahindra had developed a Merger and acquisition cell to take care of the oversees projects. But the unique thing about this cell is that it has in-house facility to acquire firms without the help of bankers and other external agencies. As merger and acquisitions are an integral part of the company strategy, M&M has been able to cement its place in the international market as an influential player. Outcomes By improvement in both quality and quantity, M&M has been able to penetrate all segments of the automotive industry in India and with JVs and acquisitions offshore. The management has realized the need for change and its ventures into the IT industry has brought success. Anand Mahindra, a man with a charismatic personality has increased the market value of the M& M brand by successful initiatives, excellent decision making and staff participation and not simply by adopting change, but by going out and seeking change. An aggressive product aggression program has resulted in market entry into various segments like heavy trucks, electric cars, two wheelers, finance, IT services etc.

Page 18 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

In the recent past few years, M&M took over Kinetic Motors to enter into two wheeler segment in India. They also merged with Reva Electric car company and acquired South Koreas SsangYong Motor company in 2011. So with these frequent mergers, leadership style in Mahindra and Mahindra plays an important role in helping employees to adapt to post merger changes and maintain the performance standard. By interviewing the employee from Mahindra and Mahindra we found out that the leadership follows a considerate and transformational style. As we have found out from the research that these leadership style have a positive effect on post-merger satisfaction, so we can say that due to these style Mahindra and Mahindra have been able to sustain these mergers. Organizations structure needs to be aligned with the leaderships intended strategy. The management needs to ensure from time to time that the structure is in accordance with the spirit of the vision and mission statement. Mahindra and Mahindra has a fairly good level of decentralization that allows the middle and lower level management to take up decision making activities and increase efficiency and productivity. According to employee interviews the organization structure promotes work culture/environment at Mahindra and Mahindra characterized as follows SBUs work as mini profit units Sharing of functional resources within an SBU Leadership development - employees are successfully trained and promoted Acceptance of new ideas and freedom to explore and innovate Stress on collaboration with healthy work relationships among co workers Organization promotes innovation with reasonable risk taking Trust and transparency in operations leading to increased employee loyalty Consumer centric work environment with processes focussed at increasing customer satisfaction

The work environment is in sync with the leaderships goal to serve the customer better and be among the top 3 in customer satisfaction. There is also compliance with the goal of encouraging innovation for market dominance in different sectors. Collaboration among the team members increases the efficiency and eases the adaptability to change in organization structure and strategies.

Page 19 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

In automotive industry where there is high competition and foreign players are venturing in Indian market who have better technology for Mahindra to excel organization should be on a path of continuous improvement. Mahindra being a growing organization is banking big time on innovation and diversification. The decisions decentralised although this is done in proper framework to so there is no diversion from the goals. Everyone is encouraged to come up with new ideas and is supported. Improvements are part of every ones goal sheet and separate department is made for cost reduction and have annual targets. Every project is expected to have new innovations and people delivering are highlighted and encouraged. For this kind of role transformational leadership is most suited, which we can find in Mr. Pawan Goenka.

Page 20 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

References
Glenn Bassett, Adrian Carr, (1996),"Role sets and organization structure", Leadership & Organization Development Journal, Vol. 17 Iss: 4 pp. 37 45 Dale E. Zand, (2009),"Strategic renewal: how an organization realigned structure with strategy", Strategy & Leadership, Vol. 37 Issue: 3 pp. 23 28 Dr. Sea-Shon Chen, "Leadership Styles and Organization Structural Configurations" ,The Journal of Human Resource and Adult Learning * November 2006, page 39-46 Teresa Joyce Covin, Thomas A. Kolenko , Kevin W. Sightler , R. Keith Tudor, (1997) "Leadership style and post-merger satisfaction", Journal of Management Development, Vol. 16 Issue: 1, pp.22 33 Ardichvili Alexander Leadership styles and work-related values of managers and employees of manufacturing enterprises in post-communist countries, Human Resource Development Quarterly , Vol. 12 , No. 4 , Winter 2001, Pp. 363-383

Noel M. Tichy and Carole K. Barnett Profiles in Change: Revitalizing the Automotive Industry, Human Resource Management, Winter 1985, Vol. 24, Number 4, Pp. 467-502 Penny West and Bernard Burnes Applying organizational learning: lessons from the automotive industry, International Journal of Operations & Production Management,Vol. 20 No. 10, 2000, pp. 1236-1251 Internet Links: http://en.wikipedia.org/wiki/Mahindra_%26_Mahindra en.wikipedia.com [ Retrieved 2012-08-08]
http://www.nwlink.com/~donclark/leader/leadstl.html Leadership Skills[ Retreived 2012-08-09] http://www.mahindra.com/ Mahindra Corporate Website. [Retrieved 2012-08-07] http://www.jstor.org/discover/10.2307/2777642?uid=3738256&uid=2129&uid=2&uid=70&uid=4&sid=2110097 1609983 Leadership and organizational structure[ Retrieved 2012-08-08]

Page 21 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Annexure
Questionnaire sent to Mahindra and Mahindra employees
1. Vision, mission & objectives of Mahindra Automotive sector? 2. Your thoughts about Mahindras work culture/environment? 3. Is decision decentralized? 4. How these work cultures influence innovation? 5. Motivational methods used by organization? 6. How internal competition is used as motivational factor? 7. What is leadership incubation program, right from lower level to higher level in organization?
8. Should Mahindra reinvent its structure and/or culture to face competitors like TATA?

Page 22 of 23
ORGANIZATIONAL STRUCTURE AND LEADERSHIP STYLE

Оценить