N ISSN - 0974 - 1739 H R D NHRD Network Journal N e tw o r k J April2009 Volume 2 Issue 2 o u r National HRD Network na l John Adair The National HRD Network, established in 1985, is an Arvind Agrawal association of professionals committed to promoting Stewart D. Friedman the HRD movement in India and enhancing the capability of human resource professionals, enabling Paul Hersey them to make an impactful contribution in enhancing N.S. Rajan competitiveness and creating value for society. Dave Ulrich and Norm Smallwood Towards this end, the National HRD Network is Gary Yukl and Rubina Mahsud committed to the development of human resources Anu Aga through education, training, research and experience Sandeep Bakhshi sharing. The network is managed by HR professionals L Jaspal Bindra in an honorary capacity, stemming from their interest ea de Leadership Peter Capelli et al in contributing to the HR profession. r s h ip Jim Collins The underlying philosophy of the NHRDN is that every B. Santhanam human being has the potential for remarkable Vijay Bharadwaj achievement. HRD is a process by which employees in Aquil Busrai organizations are enabled to: Rajeev Dubey • acquire capabilities to perform various tasks P. Dwarakanath associated with their present and future roles; Adil Malia • develop their inner potential for self and Anand Nayak and L. Prabhakar organizational growth, Vivek Patwardhan • develop an organizational culture where Satish Pradhan networking relationships, teamwork and Sanjeev Sahi collaboration among different units is strong, T.T. Srinath contributing to organizational growth and Inder Walia individual well-being. A p r il 2 0 0 9 A quarterly Publication by The National HRD Network www.nationalhrd.org www.nationalhrd.org NHRD Apr09 - wrapper.p65 1 5/2/2009, 3:50 PM ABOUT THE JOURNAL NHRD Network Journal The National HRD Network publishes a semi-academic quarterly journal-each issue dedicated to a Leadership theme. Publications so far include on the themes “IT in HR”, ”Performance Management”, “Attracting and Retaining Talent”, “Career Management”, “Organizational Change”, “Global HRM”, “Women in Volume 2 Issue 2 April 2009 Corporate Leadership Roles”, “Organization Development” and “Learning and Development”. The current issue is on the theme of “Leadership” NHRD Network Board Members The plan for the ensuing issues is as follows: National President: Aquil Busrai, ED-HR, IBM India Limited, Date of Publication Theme Guest Editor Past National Presidents: Dwarakanath P, Director-Group Human Capital, Max India Dr. Santrupt Misra, Director Aditya Birla Group July 2009 Work-Life Balance Dr. C.S. Venkataratnam Oct. 2009 Institution Building Mr. S. Varadarajan Regional Presidents: East: Prof. Madhukar Shukla, XLRI, Jamshedpur Jan. 2010 “HR for, and of Gen Next” — Leveraging Demographic Dividend Dr. S. Chandrasekhar South: Gopalakrishna M, Director Incharge, A.P. Gas Power Corporation Ltd. West: Satish Pradhan, Executive VP Group HR, Tata Sons The journal publishes primarily three categories of articles: North: NS Rajan, Partner, Human Capital and Global Leader – HR Advisory, (cid:129) Conceptual and research based Ernst & Young (cid:129) Contributions from thought leaders including a limited number of reprints with due permission National Secretary: Dr. P VR Murthy, CEO, Exclusive Search Recruitment Consultants (cid:129) Organizational experiences in HR interventions/mechanisms National Treasurer: Ashok Reddy B, VP-HR, Info Tech Enterprises Editorial Board Members : Executive Directors: Satyanarayana K (Hon.) Dr. P.V.R. Murthy, Managing Editor is a product of I.I.T., Kharagpur and IIM, Calcutta with close to thirty Mohit Gandhi years experience in H.R. field. He is founder and runs an executive search firm Exclusive Search Recruitment Consultants. He is associated with a number of academic institutions. He is trained in Editorial Board NS Rajan, Partner, Human Capital and Global Leader – HR Advisory, TQM in Japan and in human processes from ISABS and NTL, U.S.A., He is the National Secretary of Ernst & Young, [email protected] National HRD Network. (Guest Editor for this issue) Aquil Busrai is Executive Director Human Resources with IBM India. He has over 36 years HR Dr. PVR Murthy, Managing Editor, CEO, Exclusive Search Recruitment Consultants, experience, both in strategic and operational HR with blue chip organisations like Unilever in Kenya [email protected] and India, Motorola in Asia Pacific and Shell in Malaysia. He is the National President for National HRD Network. Aquil Busrai, Executive Director, Human Resources, IBM India Limited, [email protected] Dr. Pallab Bandyopadhyay is the Vice President & Head, Human Resources - Asia Pacific, Perot Dr. Pallab Bandyopadhyay, VP-HR-Asia Pacific, Perot Systems, Systems. A doctoral fellow from XLRI and AHRD. He is trained in OD and Human Processes from NTL, [email protected] USA, he believes in applying HR concepts to practice to make it more meaningful and effective. He is a mentor and coach to many young HR professionals. Publisher, Printer, Owner Satyanarayna K, Hon. Executive Director, National HRD Network on and Place of Publication behalf of National HRD Network, 506, Sai Siri Sampada, 7-1-29/23 & 24, NHRD firmly believes in and respects IPR and we appeal to the Leela Nagar, Ameer Pet, Hyderabad 500 016. Tel: +91 (40) 2374-2429 contributors to strictly honour the same. [email protected] For any further clarifications, please Contact : Printed at Nagaraj & Co. Pvt. Ltd., 156, Developed Plots Industrial Estate, Perungudi, Chennai 600 096. Tel : 044 - 66149291 The Managing Editor Dr. P V R Murthy, CEO, Exclusive Search Recruitment Consultants, The views expressed by the authors are of their Copyright of the NHRD Journal, all rights reserved. own and not necessarily of the editors nor of the Contents may not be copied, emailed or reproduced #8, Janaki Avenue, Off 4th Street, Abhiramapuram, Chennai 600 018. publisher nor of authors’ organizations without copyright holders’ express permission in writing. [email protected] NHRD Apr09 - wrapper.p65 2 5/2/2009, 3:50 PM CONTENTS S.No. Title of Article Author Page No. THE MASTERS 1 Functional Leadership John Adair 2 2 Leadership for Averting Organization Disasters Arvind Agrawal 8 3 How To Improve Performance Stewart D. Friedman 16 In All Parts of Life 4 Pace, Then Lead Paul Hersey 22 5 Leadership Theory: In Evolution NS Rajan 24 6 Our Leadership Journey Dave Ulrich and 33 Norm Smallwood 7 Linking Strategic Leadership and Human Gary Yukl and 44 Resource Management Rubina Mahsud THE ARCHITECTS 8 When Does a CEO Become a Leader? Anu Aga 52 9 Effective Leadership is Driven by Sandeep Bakhshi 57 Strong Values 10 Leadership in Changing Times Jaspal Bindra 61 11 The DNA of Indian Business Leadership Peter Capelli, Harbir Singh, 66 Jitendra V Singh and Michael Useem 12 The 10 Greatest CEOs of All Time Jim Collins 72 13 I10 : Framework For Leadership B Santhanam 80 THE ALCHEMISTS 14 Leadership Development Process in an Organization to Sustain Business Growth and Leadership Vijay Bharadwaj 88 15 Letter to a Young Professional Aquil Busrai 94 16 Leadership in Tomorrow’s Company Rajeev Dubey 96 NHRD Apr09 - 00 prelims.p65 1 5/2/2009, 3:25 PM S.No. Title of Article Author Page No. 17 Leadership in Perspective P Dwarakanath 100 18 Corporate “Ubermensch” – A View from Ethereal to the Real… Adil Malia 106 19 The ITC Leadership Paradigm: Vision, Anand Nayak and 109 Values & Vitality L Prabhakar 20 Dimensions of Leadership Vivek Patwardhan 116 21 Leadership – The Experience of Those Satish Pradhan 122 We Choose To Lead 22 All Aboard! – The Leadership Journey at HAL Sanjeev Sahi 126 23 The New Leader: An Emerging Butterfly T.T.Srinath 132 24 Leadership at Bharti Inder Walia 136 Book Reviews 25 Leadership Brand by Dave Ulrich & C Mahalingam 142 Norm Smallwood 26 Leadership in The Era of Economic S Sadasivan 144 Uncertainty by Ram Charan 27 The Gamechanger: How Every Leader R Shantaram 145 Can Drive Everyday Innovation by A.G.Lafley & Ram Charan 28 Strengths based Leadership by C S Venkata Ratnam 146 Tom Rath and Bary Conchie NHRD Apr09 - 00 prelims.p65 2 5/2/2009, 3:25 PM EDITORIAL COMMENTS Kenneth Clarke, the eminent art historian, who dedicated a lifetime to the study of civilization, would say that he still did not know what it was but thought he could recognize it when he saw it. Metaphorically, the study of Leadership, both an art and science, could well be described in similar terms. With the advent of industrialization in the nineteenth century, leadership in the world of business assumed renewed significance and drew some of the great minds to unravel our understanding of it with multidisciplinary approaches. The need for, and recognition of leaders has been felt arguably since the beginning of human civilization. This has been felt even more NS Rajan acutely in current times with the turn of events around us throwing (Guest Editor for up unprecedented challenges. As Napoleon aptly observed, "a leader this Issue) is a dealer in hope", and the situation today calls for leadership that Rajan is Partner can convert these adversities into opportunities. It surely is a time to in the Human reflect on the first principles of leadership. Capital Practice In such a context, it is indeed a real privilege to bring out this of Business "Leadership" issue of the National HRD Network. This special issue A d v i s o r y comprises rich contributions from a select list of invitees comprising Services and eminent scholars, exceptional CEOs and custodians of human capital. Global Leader - HR Advisory in The authors have blended deep insights, experiential learning and Ernst & Young. personal discoveries into a powerful amalgam of ideas that serve as a rich vein of knowledge to enhance our understanding of leadership. The issue has been divided into three distinct sections, followed by reviews of books on the theme of leadership. I: THE MASTERS Scholars of eminence who have advanced and expanded our knowledge of leadership through their incisive research, insightful discoveries and practical frameworks have been specially invited to contribute to the journal. Some of them have had schools of leadership named after their thought provoking additions to the science, have been feted for their rich body of work, and recognized by fraternity as leadership gurus. John Adair (renowned for Action Centred Leadership), Stewart D. Friedman (founding director of the Wharton School's leadership program), Paul Hersey (reputed for Situational Leadership), Dave Ulrich & Norm Smallwood (widely known for their hugely popular best selling books on Leadership), Gary Yukl & Rubina Mahsud (Yukl's books on Leadership are text books at business schools) have graciously contributed and enriched the journal. As students of the science of leadership, Arvind Agarwal (RPG Group) and NS Rajan (Ernst & Young) have reviewed leadership literature throwing light on the remarkable journey of leadership thought. II: THE ARCHITECTS Creators par excellence of wealth for stakeholders, visionaries in their own right with entrepreneurial flair, and role models all rolled into one are contributors to this section. It has chief executives offering NHRD Apr09 - 00 prelims.p65 3 5/2/2009, 3:25 PM their deep insights on leadership, as they perceive it. They are leaders, who at the helm of their organizations endeavour to create lasting value and shared vision. The buck stops here! Anu Aga (Thermax), Sandeep Bakhshi (ICICI Lombard), Jaspal Bindra (Standard Chartered Bank) and B Santhanam (Saint Gobain) need no introduction, and their articles reflect deep understanding of what it means to lead successfully. Jim Collins (of the classic Built to Last fame) contributed an article he wrote on the ten best CEOs, hugely relevant even today. Peter Capelli, Harbir Singh, Jitendra V Singh, and Michael Useem (of Wharton School) had joined hands with NHRD to unravel the DNA of Indian business leadership, an abstract of which is also featured in this issue. III: THE ALCHEMISTS Custodians of human capital of their organizations, leaders of the critical human resources function, creators of shared vision and alchemists who nurture and develop the latent potential comprise this section of contributors, a veritable galaxy of people who truly matter to people who truly matter. The invitees include some of the finest human resource leaders in the country including Vijay Bharadwaj (Dell), Aquil Busrai (IBM), Rajeev Dubey (Mahindra Group), P Dwarakanath (Max Group), Adil Malia (Essar Group), Anand Nayak & L Prabhakar (ITC), Vivek Patwardhan (Asian Paints), Satish Pradhan (Tata Group), Sanjeev Sahi (Hindustan Aeronautics) , TT Srinath (Pegasus), and Inder Walia (Bharti) who have distilled decades of experiential knowledge into eminently articulated expositions of leadership thought. BOOK REVIEWS CS Venkata Ratnam, C Mahalingam, Shantaram R and S Sadasivan have reviewed the recent books available on leadership. In putting together this special edition on leadership, the journey has been immensely gratifying, and the opportunity to interact with the contributors has been a remarkable source of learning. Hope this endeavour serves the purpose of illuminating the science of leadership thought, and in current times to serve as a beacon for action. I recall the words of William Shakespeare's from Julius Caesar "There is a tide in the affairs of men, which taken at the flood, leads on to fortune". May you find yours. Dr. PVR Murthy Aquil Busrai Dr. Pallab Managing Editor Bandyopadhyay NHRD Apr09 - 00 prelims.p65 4 5/2/2009, 3:25 PM Scholars of eminence who have advanced and expanded our knowledge of leadership through their incisive research, insightful discoveries and practical frameworks have been specially invited to contribute to the journal. Some of them have had schools of leadership named after their thought provoking additions to the science, have been feted for their rich body of work, and recognized by fraternity as leadership gurus. John Adair (renowned for Action Centred Leadership), Stewart D. Friedman (founding director of the Wharton School’s leadership program), Paul Hersey (reputed for Situational Leadership), Dave Ulrich & Norm Smallwood (widely known for their hugely popular best selling books on Leadership), Gary Yukl & Rubina Mahsud (Yukl’s books on Leadership are text books at business schools) have graciously contributed and enriched the journal. As students of the science of leadership, Arvind Agrawal (RPG Group) and NS Rajan (Ernst & Young) have reviewed leadership literature throwing light on the remarkable journey of leadership thought. April | 2009 NHRD Network Journal 1 NHRD Apr09 - 1.p65 1 5/2/2009, 3:25 PM FUNCTIONAL LEADERSHIP JOHN ADAIR Abstract Leadership does not operate in isolation, and in fact is based on continuous interaction with others. This interaction is constitutive of complex coordinates which determines whether the group is able to achieve its objectives or not. This article presents a leadership framework that explains leadership in the context of group situations and details the key functions of leadership. Further, it elaborates upon the key behaviors that are useful in order achieve the desired goals. About the Author John Adair is one of the world’s leading authorities on leadership and leadership development. John holds the higher degrees of Master of Letters from Oxford University and Doctor of Philosophy from King’s College London, and he is also a Fellow of the Royal Historical Society. In 2009, John was appointed Chair of Leadership Studies United Nations System Staff College in Turin. John has written over 40 books, translated into many languages. Apart from being an author he is also a teacher and consultant. “Leadership is action not passion” Sandhurst as part of a programme - Donald H Mcgannon introducing young officers to the responsibilities of leadership. When Leadership and Motivation are like brother transposed into industry and commerce it and sister. It is difficult to think of a leader was renamed Action-Centered Leadership who does not motivate others. But (ACL). Initially, the core content of ACL leadership embraces more than motivation. remained much the same as the original What is leadership? The Action-Centered Sandhurst version, though the practical Leadership (ACL) approach offers exercises and case studies were changed. comprehensive answer to that question. Here, I shall present that framework of that The model encompasses the concept of original concept of ACL, and then Individual Needs, which is the area comment upon its constituent elements. chartered by Maslow and Herzberg. Therefore, it provides a natural context for My standard introduction to the ACL an exploration of their theories model has been to look first at the Qualities Approach and then at the Situational The Background Approach to leadership. Having outlined Functional leadership training was first these approaches or theories, identifying developed at the Royal Military Academy, both their drawbacks and their positive 2 April | 2009 NHRD Network Journal NHRD Apr09 - 1.p65 2 5/2/2009, 3:25 PM contributions to our understanding of maintenance need’). The third area is leadership, I move on to the third constituted by the sum of the individual ingredient in the story (apart from the needs of group members. personality and character of the leader and the situation in which it was all happening), Individual Needs and Motivation namely the people concerned. Having This third area of need present in the mentioned the amount of research done on corporate life inheres in the individual groups as wholes that are more than the members rather than in the group itself. To sum of their parts (which led to the latter they bring a variety of needs – establishment of the new sub-disciplines of physical, social, intellectual, and spiritual Social Psychology) I explain that I have – which may or may not be met by selected one theory from the mass of participating in the activity of the group. research material which I consider to be of Probably physical needs first drew men most relevance to the practical manager together in working groups: the primitive intent upon understanding leadership and hunter could take away from the slain motivation – the theory of group needs. To elephant a hunk of meat and a piece of hide this I add the concept of group personality. for his own family. Nowadays the means This is how I actually explain it. for satisfying these basic needs of food, shelter and protection are received in The Theory of Group Personality and money rather than in kind, but the Group Needs principle remains the same. As a starting point I have developed the idea that working groups resemble There are, however, other needs less individuals in that although they are tangible or conscious even to their always unique (each develops its own possessors which the social interaction of ‘group personality’) yet they share, as working together in a group may or may individuals do, certain common ‘needs’. not fulfill. These tend to merge into one There are three areas of needs present in another, and they cannot be isolated with such groups. Two of these are the any precision, but Figure 1.1 will indicate properties of the group as a whole, namely their character. Drawn from the work of the need to accomplish the common tasks and AH Maslow1 it also makes the point that the need to be maintained as a cohesive social needs are organized on a priority basis. As unity (which I have called the ‘team basic needs become relatively satisfied Self-actualization Esteem Growth Personal development Social Self respect Accomplishment Status Safety Belonging Recognition Social activities Physiological Security Love Protection from danger Hunger Thirst Sleep Figure 1.1 The priority of needs April | 2009 NHRD Network Journal 3 NHRD Apr09 - 1.p65 3 5/2/2009, 3:25 PM higher needs come to the fore and become group identity – the ‘we’ feeling, as some motivating influences. have called it. The moment of victory closes the psychological gaps between people: These needs spring from the depths of our morale rises naturally. Good internal common life as human beings. They may communications and a developed team attract us to, or repel us from any given spirit based upon past successes make a group. Underlying them all is the fact that group much more likely to do well in its people need one another, not just to survive task area, and incidentally provide a more but to achieve and develop personality. satisfactory climate for the individual. This growth occurs in the whole range of social activity – friendship, marriage, Lastly, an individual whose needs are neighborhood, but inevitably work groups recognized and who feels that he or she can are extremely important because so many make a characteristic and worthwhile people spend so much of their waking time contribution both to the task and the group in them. will tend to produce good fruits in both these areas. Professor Fredrick Herzberg has dichotomized the list by suggesting that the We can illustrate these interrelations with factors which make people experience a simple model: satisfaction in their work situation are not the reverse of those which make them dissatisfied. The latter is caused by deficiencies in the environment or context TASK of the job; in contrast, job rests upon the content of work and the opportunities it presents for achievement, recognition, professional development and personal growth.2 TEAM INDIVIDUAL The Needs Interact The first major point is that these areas of need influence one another for better or worse. For example, if a group fails in its Figure 1.2 Interaction of needs tasks this will intensify the disintegrative tendencies present in the group and If you place a coin over the task circle it produce diminished satisfaction for its will immediately cover segments of the individual members. If there is a lack of other two circles as well. In other words, unity or harmonious relationships in the lack of task or failure to achieve it will affect group this will affect performance on the both team maintenance e.g. increasing job and also individual needs (cf. A H disruptive tendencies, and also the area of Maslow’s Social Needs). And obviously an individual needs, lowering member individual who feels frustrated and satisfaction within the group. Move the unhappy in a particular work environment coin on to the ‘Team’ circle and again the will not make his or her maximum impact of near-complete lack of contribution to either the common task or relationships in the group on both task and to the life of the group. individual needs may be seen at a glance. Conversely, achievement in terms of a Conversely, when a group achieves its task common aim tends to build a sense of the degree of the group cohesiveness and 4 April | 2009 NHRD Network Journal NHRD Apr09 - 1.p65 4 5/2/2009, 3:25 PM
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