LEADERSHIP STYLE OF LATE MR.

DHIRUBHAI AMBANI

Leader and Leadership

Leader and Leadership have been part of our history and we have seen many examples and heard many stories about such leaders. Jesus Christ is the perfect example of a great leader in The BIBLE. When we were in school we read about Charismatic leaders like Alexander the Great; Augustus-the first Roman emperor; Charlemagne the Great; William the Conqueror, Genghis Kahn-Emperor of all Mongols, Napoleon Bonaparte, Knights and Kings who lead their armies to victories in battlefields. They were normal people who inspired others for a common cause and who are remembered even today for their courage to take decisions, for their ability to influence people. They are remembered for how they motivated everyone around them and how they created followers. In recent times we have read about leaders like Hitler, Mahatma Gandhi, Roosevelt, John F. Kennedy, Nelson Mandela, Mother Theresa, Dalai Lama etc. In sports we have great leaders of their game who influence other athletes around them and who play for their countries and who lead their teams to victory. Sports stars like Lance Armstrong, Ricky Ponting, Steve Waugh, Michael Schumacher, David Beckham, Tiger Woods etc. They create such fan following that big commercial giants hire them to market their products, and these players become an iconic figures. They are admired for their innate ability and knowledge that they posses about the game and for their leadership ability.

Leader and Leadership

Leadership and leaders are everywhere and in every field. Even in our houses. Our mother and father can be great leaders to each one of us. Lets see leaders and leadership from the business perspective. Definition: According to Brian O'Nail, "Leadership is influencing people to get things done to a standard and quality above their norm. And doing it willingly. Leadership is the ability to influence people toward the attainment of organizational goals. There are three aspects of Leadership people, influence and goals. Leadership occurs among people, it involves people being influenced and this influence is used to achieve the goals of the organizations. In general, 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 unified and coherent. Leadership involves creating a change and not maintaining a status quo. Leadership Traits Leaderships success is highly dependent on the personal traits of the leaders. Some traits are god gifted and leaders are born with it, while other traits can be learned over time. Like knowledge and communication can be learnt in schools/universities or by experience. Few traits of successful leaders are selfconfidence, alertness, energy, decisiveness, knowledge, communication, personality, popularity, integrity, goal driven, ethical conduct, honesty, humble.

Leadership Approaches
Transactional Leaders He/she is a leader who clarifies the roles and responsibilities of his subordinates, clarifies their task requirements, initiates structures for them, provides rewards to his subordinates, and displays/shows consideration for his subordinates. They believe in organization norms and values. Charismatic Leaders He/she is a type of leader who has the ability to motivate their subordinates to do more than what is normally expected. They excite, stimulate and drive employees to work harder. Charismatic leaders include Hitler, Martin Luther king jr etc. Transformational Leaders- He/she is a type of leader who is a charismatic leader but has the special ability to bring about innovation and changes in the organization. They have the ability to change the organizations mission, structure, operation, rules etc. Interactive Leaders- He/she is a type of leader who is concerned about consensus building, and wants everyone to participate in the decision making, and is very caring for their subordinates. They like interacting with subordinates before decision making and they like free flow of ideas between the subordinates.

Leadership Approaches Contd.

Servant Leaders- He/she is a leader who works to fulfil the subordinates needs and requirements, who works to fulfil their subordinates goals and as well as achieve the organizational goals. They provide their subordinates with whatever they need to serve the customer.

Autocratic Leaders- He/she is a type of leader who wants to centralize power and authority with themselves. They make the decisions for their subordinates and their followers have to follow it. They rely on carrot and stick approach to reward and punish their subordinates. They are the kind of leaders who do not delegate authority.
Democratic Leaders- He/she is a type of leader who delegates authority to their subordinates; they encourage participation of employees in decision making process. They consult with others to solve problems and they empower their subordinates if necessary.

INTRODUCTION
A man far ahead of his times, he epitomized the dauntless entrepreneurial spirit His life and achievements prove that backed by confidence, courage and conviction, man can achieve the impossible. He has voyaged through a journey of rags to riches.He had been an opportunist right from his childhood. Due to financial problem he left his education after matriculation and went to Aden and had worked there at a petrol pump station for 8 years and then came back to India with a vision of starting his own business.

CHRONOLOGY
1932 Dhirubhai Ambani was born. 1949 At the age of 17, he went to Aden, and worked for A. Besse & Co., the sole selling distributor of Shell products. 1958 Dhirubhai Ambani returned to India and Started his first company in Mumbai, Reliance Commercial Corporation,a commodity trading and export house. 1966 Set up a textile mill in Naroda, Ahmedabad - the first step in Reliance's road to success. 1988 Fiber intermediates and chemical production starts. 1995 becomes the first Indian company to report a net profit of rs-10 billion.

LEADERSHIP QUALITIES OF MR. AMBANI

High on EQ and IQ

Influential

Highly Internally Driven Task Oriented Got the right talent

Intelligent

Inter Dependen ce
Strong focus on area of control

Risk Taker

LEADERSHIP QUALITIES EXPLANATION

HIGH ON EQ AND IQ :Dhirubhai ambani as a person was not very expressive. His feet was always grounded. He was often unfazed by the allegations put on him

PROMPT DESCISION MAKER: Reliance textile industry was hit by a selling hysteria using a technique of short term selling .Reliance brokers were however quick to respond by buying Reliance shares forcing scrip to rise giddily.Ambani knew sellers couldnt possibly have the shares they sold. The crisis created a legend out of Ambani.

LEADERSHIP QUALITIES EXPLANATION CONTINUED

THINK BIG THINK FAST THINK AHEAD : Ambani was not an MBA, nor an economist. But yet he took traditional market theory and stood it on its head. And succeeded. When everyone in India would build capacities only after a careful study of market, he went full steam ahead and created giants of manufacturing plants with unbelievable capacities. He created capacity ahead of actual demand and on the basis of latent demand INTER DEPENDENCE :Dhirubhai Ambani depended on Reliance Family professionals and technocrats drawn by him from may quarters who were able to convert his expectations into fruitful results. By depending on them and looking after them simultaneously he achieved superlative results

LEADERSHIP QUALITIES EXPLANATION CONTINUED

INTELLIGENCE: Dhirubhai Ambani was a shrewd businessman . He had a knack of getting right information appropriate to the situation and used it to his advantage wherever necessary . He had the ability to deal with problems at right time and in right perspective PICKED BEST TALENT: The habit of plucking talent from wherever available would become a classis Reliance management strategy . The Amban is wouldnt rely on paper qualifications. On the contrary whoever showed initiative got the job. INFLUENCE : Dhirubhai Ambani was known for his influence in political circles and his ability to acquire the most difficult licenses during the license raj

LEADERSHIP QUALITIES EXPLANATION CONTINUED

RISK TAKER: Dhirubhai Ambani took calculated risks based on expected future trends. He invested his entire earnings to purchase a huge stock of polyster yarn which was felt as wrong decision as cotton fabric was predominant at that time. But he proved right and made him a billionaire as polyester caught the fancy of people for better value and longer wear and tear. STRONG AREA OF CONTROL: Dhirubhai Ambani was never rattled by what people used to say or talk about him . There were a number of questions raised on his integrity . He was very clear about what he did and would say if people are talking about him that means he is getting famous. He was least perturbed by what others thought

Lessons
Roll up your sleeves and help (Team player) Risk Taker (He was decisive, courageous and non conformist) Be a safety net for your team (He empowered his managers)

Believe in being the best, success and money will follow (He believed in Quality)

LESSONS

Be a silent benefactor (He was humble, caring, generous and kind)

Always stay ahead of times (Foresight)

His arm around the shoulder (His motivation technique)

Dream with open eyes (His visions were real)

Analysis
Mr. Dhirubhai never took leadership lessons in school or college, nor did he learn any leadership skills. He developed his own style. Mr. Dhirubhai Ambani never followed the textbook style of management. Instead, he evolved a unique style, which combined the American style of entrepreneurship, with the Japanese focus on the latest technology. And to this, he added the innate shrewdness of a Gujarati businessman. He learnt leadership from practice and hands on experience, as well interpersonal exploration and development. His leadership was an Art and he practiced this art with perfection. People have written books on his management style and he is looked upon as a GURU of Management in India. He created his own style of leadership and management, which other follow even today; this clearly establishes the relationship between Leaders and followers. He was a transformational leader and influenced everyone who worked with him. He has provided many budding entrepreneurs hope and inspiration. We have learned from Mr. Dhirubhai that if we have a goal and the will power to achieve it, then nothing is impossible.

Reference

Internet:Dhirubhai Ambani : Indian Legends @ muraleedharan.com Dhirubhai Ambani - Wikipedia, the free encyclopedia Great lessons from Dhirubhai Ambani [Archive] ManagementParadise.com : Your Gateway to Online MBA Degree . Management Students Forum for MBA,BMS, MMS, BMM, BBA, students and aspirants. Dhirubhai Ambani Real Story from Rags to Riches | Stock Market India | Stock Market News | Stock Recommendations - paisacontrol.com
Books:The Leadership Experience Richard L. Daft