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ABSTRACT
From time immemorial, human resource management has been a
vital aspect of management of resources within any organization –
social, political or economic. However, it is only in the recent past that
its significance has been realized and it has been accepted as a
formalized field of study.
Thus evolved the need for a leader who could successfully maintain
and develop the human aspect of the organization.
A leader is the friend, philosopher and guide. Similar to the pied piper
who entranced the mice to follow him leading them out of the
kingdom, so too a leader attracts his followers with his magnetic
personality. Thus, a leader aims at the attainment of common goals
by motivating and inspiring his followers.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
1. I N T R O D U C T I O N
Managers are people who do things right, while leaders are people
who do the right thing. - Warren Bennis, Ph.D. "On Becoming a
Leader"1
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
may not be convinced that the mayor's policies are right. So these
leaders have to try again, using other methods. But they still use the
same process - the process of good leadership.
You are searching for the secrets of leadership. Many of them lie
locked inside you. As you discover them and practice them, you will
join a special group of people-skilled leaders.2
Follower
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Leader
You must have an honest understanding of who you are, what you
know, and what you can do. Also, note that it is the followers, not the
leader who determines if a leader is successful. If they do not trust or
lack confidence in their leader, then they will be uninspired. To be
successful you have to convince your followers, not yourself or your
superiors, that you are worthy of being followed.
Communication
Situation
All are different. What you do in one situation will not always work in
another. You must use your judgment to decide the best course of
action and the leadership style needed for each situation. For
example, you may need to confront an employee for inappropriate
behavior, but if the confrontation is too late or too early, too harsh or
too weak, then the results may prove ineffective.
Various forces will affect these factors. Examples of forces are your
relationship with your seniors, the skill of your people, the informal
leaders within your organization, and how your company is
organized.4
Good leaders are made not born. If you have the desire and
willpower, you can become an effective leader. Good leaders develop
through a never-ending process of self-study, education, training, and
experience.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Bass' (1989 & 1990) theory of leadership states that there are three
basic ways to explain how people become leaders. The first two
explain the leadership development for a small number of people.
These theories are:
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
If you are a leader who can be trusted, then those around you will
grow to respect you. To be such a leader, there is a leadership
framework to guide you:
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The West too has had its share of very successful leadership with
varying styles ranging from subtle to flamboyant. Some eminent
names that come to mind are:
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
2. R E S E A R C H M E T H O D O L O G Y
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
3. H Y P O T H E S I S
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
4. A N A L Y S I S
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
In the post Aryan era, the balance of power shifted to the crown. The
king was now recognized as the ultimate leader who was responsible
for all his subjects.
The nineteenth century saw another turn and political leaders in the
form of revolutionaries fighting for the country’s independence came
to the fore.
The likes of Mahatma Gandhi mesmerized the country and shook the
British throne.
• Warm / informal
• Respect for the individual
• Introspection
• Inward looking
• Compassionate
• Sensitive
• Objective
• Collaborative
• Intellectual
• Ethical
• Aesthetic
• Recognition of social responsibility10
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Constant conflict erupting in the form of the two world wars saw the
shift of power to political leadership represented by Hitler, Churchill,
Kennedy and so forth.
Controls shifted again with the government taking a back seat and
playing the role of a facilitator, business leadership took the lead and
emerged as the key form of leadership.
Henry Ford, J. Paul Getty, Warren Buffet and their likes now became
the names to reckon with.
• Cold / impersonal
• Winning at any cost
• Admiration for power
• Drive for excellence
• Outward / aggressive
• Subjective
• Strict hierarchy
• System centric
• Technology based11
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Here one still goes by the old Hindu tradition of the son wearing his
father’s shoes. Needless to say, this usually proves to be a ‘hit or
miss’ approach as it is not necessary that the leadership skills will be
passed down the generations automatically.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Although good leaders use all three styles, with one of them normally
dominate, bad leaders tend to stick with one style.
This style is used when the leader tells his employees what he wants
done and how he wants it done, without getting the advice of his
followers. Some of the appropriate conditions to use it are when you
have all the information to solve the problem, you are short on time,
and your employees are well motivated.
Some people tend to think of this style as a vehicle for yelling, using
demeaning language, and leading by threats and abusing their
power. This is not the authoritarian style – rather, it is an abusive,
unprofessional style called ‘bossing’ people around. It has no place in
a leaders repertoire.
This is normally used when you have part of the information, and your
employees have other parts. A leader is not expected to know
everything - this is why you employ knowledgeable and skillful
employees. Using this style is of mutual benefit - it allows the
employees to become part of the team and allows you to make better
decisions.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
This is not a style to use so that you can blame others when things go
wrong; rather this is a style to be used when you have the full trust
and confidence in the people below you. One should not be afraid to
use it, however, to be effective, it must be used wisely! 16
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
When a decision is needed, an effective leader does not just fall into
a single preferred style, such as using transactional or
transformational methods. In practice, as they say, things are not that
simple.
The leaders' perception of the follower and the situation will affect
what they do rather than the truth of the situation. The leader's
perception of themselves and other factors such as stress and mood
will also modify the leaders' behavior.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The next step, which in fact never stops, is to constantly sell the
vision. This takes energy and commitment, as few people will
immediately buy into a radical vision, and some will join the show
much more slowly than others. The transformational leader thus
takes every opportunity and will use whatever works to convince
others to climb on board the bandwagon.
The route forwards may not be obvious and may not be plotted in
details, but with a clear vision, the direction will always be known.
Thus finding the way forward can be an ongoing process of course
correction, and the transformational leader will accept that there will
be failures and blind canyons along the way. As long as they feel
progress is being made, they will be happy.
The final stage is to remain up-front and central during the action.
Transformational leaders are always visible and will stand up to be
counted rather than hide behind their troops. They show by their
attitudes and actions how everyone else should behave. They also
make continued efforts to motivate and rally their followers, constantly
doing the rounds, listening, soothing and enthusing.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The 'level 5' leader: In his book “Good To Great”, Jim Collins,
identified five levels of effectiveness people can take in
organizations.
At level four is the merely effective leader, whilst at level five the
leader who combines professional will with personal humility.
The 'professional will' indicates how they are far from being
timid wilting flowers and will march against any advice if they
believe it is the right thing to do. In 'personal humility' they put
the well-being of others before their own personal needs, for
example giving others credit after successes but taking
personal responsibility for failures.
The quiet leader is not a modern invention and Lao Tzu, who, in the
classic Taoist text ‘Tao Te Ching’, was discussing the same
characteristic around 500 BC:
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The servant leader serves others, rather than others serving the
leader. Serving others thus comes by helping them to achieve and
improve.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
A good leader uses all three styles, depending on what forces are
involved between the followers, the leader, and the situation.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
4.5.3. Paternalism
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The last revolution in Sweden disposed of King Gustav IV, whom they
considered incompetent, and surprisingly invited Jean Baptise
Bernadotte, a French general who served under Napoleon, to
become their new king. He accepted and became king
Charles XIV. Soon afterward he needed to address the
Swedish parliament. Wanting to be accepted, he tried to do
the speech in their language. His broken language amused
the Swedes so much that they roared with laughter. The
Frenchman was so upset that he never tried to speak Swedish
again.
Sweden differs from France in the way its society handles inequality
(those in charge and the followers). To measure inequality or power
difference, Hofstede studied three survey questions from a larger
survey that both factored and carried the same weight:
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
For example, Malaysia has the highest PDI score, being 104, while
Austria has the lowest with 11. And of course, as the story above
illustrates, Sweden has a relative low score of 31, while France has a
PDI of 68, the USA's is 40.
One must however note that these scores are relative, not absolute,
in that relativism affirms that one culture has no absolute criteria for
judging activities of another culture as 'low' or 'noble'. 23
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The differences in leadership in India and the West can be seen not
only in the adoption of different styles but also in their difference in
approaches to the various criteria. 25
The winds of change were not restricted to the political scenario, but
swept thee business world as well. With the advent of the Industrial
Revolution coupled with the emergence of a strong culture of trade
unionism, autocracy was no longer acceptable.
Theory X was replaced by Theory Y in the form of a participative
leadership style. Henry Ford was replaced by Bill Gates and Sam
Walton.
Here the emphasis was on managing the system and not the people.
Lack of an effective political opposition ensured continuance with
centralized economy where business was an instrument of politics.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
In Bihar the only qualification Smt Rabridevi had for being chief
minister, was her relationship with Shri Laluprasad.
Just like it is darkest before dawn, hopefully things will look up sooner
than later.
The fatalistic attitude proves fatal for the Indian managers; for
Instance, Mohammed Gazani looted the Somnath Temple seventeen
times. His armies were always shielded by a herd of cows. Instead of
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
History is witness that India has never attacked others but has not
been able to defend herself despite being quite capable due to its
fatalistic attitude, infighting & jealousy.
The key motivator in the West is material prosperity and in its quest,
leaders tend to be ruthless, aggressive, brazen and high-risk takers.
India is traditionally conservative and thus intangible factors play a
significant role. Self esteem, conscience and self-satisfaction form a
major part of the driving force behind ones work. Thus managers tend
to be more sensitive and try to take the middle path, avoiding conflicts
to the greatest extent possible, at times even at the cost of
productivity.
In contrast in the West people believe that a person gets only one life
and tend to work hard and play harder. For them, the end is important
irrespective of the means, the motto being “All’s fair in love and war.”
The go-getter attitude breeds selfishness and people tend to be self-
centered, though true achievers.
The West has a clinical approach to change and take it in their stride.
They are the proactive leaders and therefore always ready to respond
to changes quickly and positively, using it to their advantage.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
In the West, it is always about “being the best”, “being the biggest”,
“being the largest’, which basically means being market leaders. It is
always ‘myself against the world’.
The Indian leaders are more content by just making optimum use of
the available resources without much ado about what the others are
doing.
They compete with themselves and are satisfied with the fruits of their
labor so long as they have done their best.Materialism is associated
with chasing a mirage or Maya.
This is the reason that major scientific discoveries have taken place
in the West whereas India is known for spiritual evolution, art and
culture.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
‘Hire and fire’ is the order of the day. People change jobs very
casually and a long tenure of service with a single employer is
considered to be a sign of timidity, inefficiency or both. One has to
either shape up or he is shipped out.
In the West, the factors of production are mobile. People are always
in search of the elusive pot of gold under the rainbow and are
prepared to risk every thing if the rewards are suitable.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Risk management and control, not risk avoidance is the order of the
day - as long as the risk : rewards ratio and the management’s
appetite for the risk are in unison.
Some reasons why effective delegation does not take place are:
• People have a king size ego about their capabilities and are
unwilling to trust easily.
• As a result of the seamless integration of personal and
professional life, any failure is taken to be personal and the
manager is marked for life.
• A direct outcome of the expensive and slow legal procedures is
that any failure cannot be reversed easily and assets are locked
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
As the germs of the problem have originated from the West, the
curative vaccine too must come from there, though the patient, doctor
and the hospital may be Indian.
Being half the world away from the ‘haves’ India has encashed its
competitive advantage of a highly intelligent, English speaking
population, hungry to work hard and deliver goods at a fraction of its
cost in the developed word.
With the grafting of the worlds back office in India; the color of the
problem has also changed.
Now there is a two way process of in and outsourcing, brain drain and
reverse brain drain.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Not only are the Indian students abstaining from going abroad to
study, even those who do go return after gaining a couple of years of
experience and apply the techniques learnt thereof. This provides a
bridge for the crossing over of cultures.
Western kids have Indian tutors; Western patients are being treated
by Indian doctors.
It is said, “Uneasy lies the head which wears the crown”. The tiring
act of sleeping with its enemy has taken its toll on Indian leadership
which is at a cross road of confusion right now.
Having reaped the benefit of being the global back office, India
cannot let go of its initial advantage by its ostrich like approach by
refusing to integrate with the world.
Shri Laxmi Mittal has become the largest steel maker of the world,
and Tata Steel has bid for a company many times larger its size.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
All this has been possible only because India has broadened its
vision and business mission.
Competition is, however, not far behind. China and various other
countries are already galloping to bridge the gap and India has to
give its best to maintain its lead if not widen it.
Hence fusion of its leadership style with the Western world is crucial
in order to balance the often-conflicting interests of its different
stakeholders.
We are sure that the off spring arising from the cross fertilization of
different DNA will take the best practices of both the worlds, blending
their strengths to neutralize their weaknesess, a standard tactic in
any martial art.
With the global clock ticking 24x7, the sun never sets in the business
empire. The division between the East and the West is thus no longer
significant. Russia and China having joint the WTO has ensured the
wiping off of the definition of closed economies in the world.
The aggression, risk taking ability and go-getting attitude of the West
has to be accompanied by the sensitive, reflective, compassionate
and caring oriental touch, without loosing contact with the ground
reality and making terrain based adjustments all the time.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
5. E X E C U T I V E S U M M A R Y
Definition Of Leadership
What Is Leadership?
Leadership: A Concept
Evolution Of A Leader
The Process Of Great Leadership
The ‘Be, Know, Do’ Principle Of Leadership
Leadership: Comparison Between The Indian And Western
Models
Some Great Leaders
Thumb Rules Of A Successful Leader
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Leadership Styles
Authoritarian or Autocratic
- Participative or Democratic
- Delegative or Free Reign
- Charismatic Leadership
- Participative Leadership
- Situational Leadership
- Transactional Leadership
- Transformational Leadership
- The Quiet Leader
- Servant Leadership
Selection Of A Style
Factors Influencing The Selection Of A Style
Different Approaches
- Positive Vs. Negative Approach
- Consideration Vs. Structured Approaches
- Paternalism
Comparison Between The Indian And Western Models
- Basic Styles Of Leadership Adopted By The West
And India
- The Basic Differences Between The Western
And Indian Perspective
o Approach To Problem Solving
Key Drivers To Action
Response To Changing Environment
o Quest For Excellence
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
6. C O N C L U S I O N
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
BIBLIOGRAPHY
1. http://www.nwlink.com/~donclark/leader/leaddef.html
2. http://www.pinetreeweb.com/whatis.htm
4. ibid 1
5. ibid 1
6. ibid 1
7. ibid 1
8. ibid 1
9. http://www.eaisai.com/baba/docs/slguru.html
11. ibid 10
12. http://en.wikipedia.org/wiki/Leadership
13. ibid 12
14. ibid 12
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
16. ibid 1
18. http://changingminds.org/disciplines/leadership/styles/charismat
ic_leadership.htm
19. ibid 1
20. ibid 1
21. ibid 1
22. ibid 1
24. ibid 1
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
ANNEXURE
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ST. XAVIER’S COLLEGE, KOLKATA
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LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Leader
Team
proposes
proposes Joint Full
Autocratic decision,
decision, decision delegation
decision by listens to
leader has with team of decision
leader feedback,
final as equals to team
then
decision
decides
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
• Leadership:
vision
energizing
• Management:
efficiency
results
• Administration:
rules
procedures
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
But more common in America are firms that are run by professional
managers who are replaced by other professional managers, either
as a consequence of retirement or of replacement by the board of
directors of the firm. The better companies have sophisticated
programs for developing executives within the firm, and ordinarily
choose a next chief executive officer from among them. American
CEOs average about thirty years with their firms and own less than
four percent of its shares. There is a small number of firms, which get
a great deal of publicity and so seem more numerous than they are,
that hire CEOs directly from the outside, with no previous experience
with the firm. These CEOs are driven by a need to excel in a
competitive environment (they want to win), and they insist that
money is less important to them than professional achievement; but
it's hard to credit that given the enormous inflation of top executive
compensation packages in America in the last decade.
Many American firms, especially most of the large ones, are more
dependent on capital markets for their capital (equity and debt) and
so pay much more attention to Wall Street than is yet common in
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
Asia. Wall Street has strong expectations about the behavior and
performance of executives and about succession. There is less
freedom of action for executives and boards in America than in Asia.
It is possible, but not certain, that Asian firms will follow this
evolutionary path. The political connections so important for top
business leaders in Asia, whether in democracies or one-party states,
are not unknown but are much less important in America. It is a
characteristic of Asian top executives that they have such
connections that are important to their businesses. In America, the
chief executive officers of very large firms often have virtually no
direct connections to top politicians—the government is treated at
arm's length and business is done by business people. There are, of
course, exceptions, and deep political involvement is still a route to
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
• Celebrity (Superstar)
The first four reflect how an executive deals with subordinates in the
company; the final one is directed at people outside the firm.
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
• Passion
• Decisiveness
• Conviction
• Integrity
• Adaptability
• Emotional toughness
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ST. XAVIER’S COLLEGE, KOLKATA
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LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
• Emotional resonance
• Self-knowledge
• Humility
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ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
53
ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
The main threats with Li and Fung are driving down labor costs, and
concerns about relying on suppliers who potentially abuse the human
rights of workers or pay less than a standard living wage. Victor and
William Fung are the new type of Asian leaders—will they soon be
the only type?
54
ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
55
ST. XAVIER’S COLLEGE, KOLKATA
DEPARTMENT OF BUSINESS ADMINISTRATION
LEADERSHIP: COMPARISON BETWEEN THE INDIAN AND WESTERN MODELS
56