BS4S19 Leadership Management Theories

BS4S19 Leadership Management Theories and Practices Module



Aim of Assignment

The assignment aims to dwell deep into the factors of leadership and management in large companies. The assignment follows the Tata group, one of the largest conglomerates in India. The leader and Chairman of the company Rata Tata are followed closely through the assignment to under and critically evaluate the decisions taken by him, which lead to significant changes in the leadership and management of the company.

Introduce the Organisation

Tata Group is a multinational conglomerate Indian Company. It is one of the oldest and biggest industrial groups in India. Tata Group has an interest in the automobile, steel, telecommunication, hospitality, information technology, chemicals, and beverages among other areas. The Tata Group is a private trading organization by Philanthropist and entrepreneur Nusserwanji Tata. The role played by Mr. JRD and Mr. Ratan Tata in making the group truly worldwide has been recognised deservedly all over the globe (Govindarajan,  2017). Each of the Tata Company functions independently under the supervision and guidance of its shareholders and Board of directors. In 2021, Tata Group stood at US$325 Billion in market capitalization. While several companies have publicly traded, Tata Group has evolved and expanded from being a family-owned business to perceiving one of the professionally managed and best-run groups in the global world.

Tata power is currently heading towards renewable energy. Titan is having a strong demand recovery that has favored the stock prices. Tata Chemicals is also perceived through advantageous facets because of its high product price (Balabhaskaran, 2019). Each of these has showcased a great boost in the market capitalization of Tata Group. It rose by the U.S  $939.52 in October 2020.

Overview of the Methodology

This study uses a secondary research approach for advocating the articles and journals that will improve leadership and management practices. By investigating the most useful techniques and tools and having the most effective contribution to organizations. The practitioners have selected their acquired priorities while enhancing the leadership and management practices (Pace, 2019). Identifying the appropriate journal and articles that are based on leadership and management practices is the main research method. It was expected that the complementary strengths of journals will have the capability to get insight for additional data. Also, the researchers have collected articles to generalise findings of the evaluation of leaders and management practices. Researchers have conducted a secondary analysis to identify and explore the perceived most effective and useful practices in the context of Tata Group.

Moreover, with the help of an appropriate methodological approach, the researchers can assist the Tata Group in improving their business outcomes. Also, it needs more than only recognising the organizational priorities. For Tata Group, the current external forces like Covid 19 outbreak have involved a pace of digital evolution (Rodrigues, da Silva, and de Menezes Filho, 2021). This change has shifted the priorities and goals of this organization by making it an important aspect to reevaluate. Researchers have identified that this kind of re-evaluation can efficiently and effectively achieve new organizational goals and will also reduce risk.

Period (between 1991 and 2012) covered

The period which is chosen for analysis of Tata group leadership spans twenty years from its inception. The company is one of the most successful business ventures in the world and was led by Ratan Tata until a few months ago. The highly successful CEO of the conglomerate was business-led and managed the company through tough times and to be one of the leading businesses with nearly 500 billion in revenue.

Key leaders whose practices underpin the critical discussion

Ratan Tata is one of the leading business tycoons and philanthropists who is chosen to analyse the leadership and management techniques. Being one of the most successful business leaders in the world Ratan has taken a distinctive approach to lead the company to success. He has brought several changes to the existing models of leadership to adapt to the new scenario. Consumer experience and overall growth are the key terms that summarise the approach taken by him during his tenure at the top of one of the largest corporations in the world. Ratan has applied various strategies to manage a business that spans various countries and regions. The business is based on modern technology and a uncharted channel of business.

Leadership and Management Practices within the organisation

Matrix approach

When Ratan Tata took over the tata group from his father, a highly successful businessman during his time. Ratan brought over various changes to the board of directors and the leadership team around him. He used the matrix model dividing the various businesses of the company into distinctive teams led by senior managers who were discreetly in touch with him. This meant that the team needed to be reshuffled and restructuring led the manager to be more responsive and active. The same was lacking the company when Ratan took over,


A modern approach to business and innovation in the process is the term frugality (MC, and Rentala, 2018). Tata group created a culture that focuses on breeding resourcefulness and self-sufficiency along with the invitation. The company had a simple approach of achieving more with less thus employees at Tata group through the channel were based on figuring out the best use of their resources. This also held in finding innovative ways to achieve the goals and vision with the limited resources. This helped the company cut down fixed costs and headcounts increasing the net income.


One of the foremost things that can interpret the company and Ratan Tata himself is trust. He has shaped and led one of the biggest companies in the world in such a manner that had created trust not only in his decisions but also within the employees and the process itself. The company has proved to be one of the best employers in the world giving a significant amount of investment motivational approaches for the employees.

Quick decision

Ratan Tata has taken various bold decisions during his tenure as the CEO of the company. He has proved to be one of the best visions with his conglomerate. Ratan Tata was at the helm of the business of such a big corporation bold decisions such as to acquire Jaguar car company which was running at a loss (Jha, 2020). Investing in the aerospace industry and investing in Tata Motors. Time is of essence and importance in the business and taking decisions and believing in them is the best way the company can go forward. The same vision is shared by other successful business tycoons around the world.

Critical events (internal or external) that have significantly affected the L&M Practices

context and drivers

Corus acquisition

Rata tata showed quick decision-making and future visionaries are important in business. Tata steel did not globalise until that paint but with Ratan Tata took over Corus and expanded the business of tata Steel. He introduced technology to the steel industry which revived the glory of the steel business.

The JLR bid

Deeply criticized during the period to take over two companies in the process Jaguar and Land Rover. The Tata company chairman spent hours at the factories understanding the engineering concepts behind the business (Balabhaskaran, 2019). He then made a similar model for the Tata motors expanding to the consumer market with cheap and affordable cars for the Indian industry. Tata motors had access to world-class technology from the world leaders of car manufacturing. The two teams designed sustainable technology and brought in international standards cars in India. Currently, Tata Motors is seeing huge profit and is one of the leading branches of the company to bring in huge revenue.

Leadership theories and Management theories

Transformational leadership

Transformational leadership is a leadership theory that helps leaders to work with a team. The leaders follow beyond immediate self-interests so that the needs of changes are identified. Transformational leadership creates a vision among the leaders to help and guide the change through influencing the team members. Also, this theory works through inspiration as well as executing the change in tandem including the committed members in a team. In transformational leadership, a leader encourages the team members so that a group can work better. Also, in this theory, a leader motivates the employees and inspires them (Andriani, Kesumawati, and Kristiawan, 2018). As a result, the employees become innovative and they can create new changes for the growth of an organization. In this leadership, the followers of leaders can adopt a positive development and that helps them to achieve success in careers. This helps to provide moral standards of a company and on the other hand, it encourages the same of others. The value, standards of work, and priorities get improved among the employees as this fosters an ethical work environment in an organization. This theory is effective in building organisational culture and encourages the staff to look forward with a positive attitude. Proper mentoring and coaching is provided to the employees so that they can take ownership of tasks and make their decision. This theory allows a leader to improve communication, cooperation, and authenticity. The loyalty among the employees gets enhanced and on the other hand, bonds become stronger among the leaders and the employees.

Democratic leadership style

Democratic leadership style helps to balance the decision-making process in a team and the leader. Here the activities of this leadership style include discussion practices and on the other hand, this leadership style makes sure of an individual’s view properly. This leadership style is also familiar as a fair leadership style where the team members get total freedom at the workplace. In this leadership style, every employee gets a chance in group discussion and they stay highly motivated towards their work (Nedelko, and Potocan, 2021). There is no value for partiality and the groups become highly competent at the workplace. Democratic leadership is appropriate for group activities but on the other hand, their chances of conflict as the member’s jockey over roles and responsibilities. This democratic leadership style becomes more effective when a leader is skilled and on the other hand, they work with experienced employees. Also, this leadership allows the leaders to capitalising on their stuff, and here the strength and talent of an individual become a power for the whole. This leadership allows open communication among the group and as a result, this helps to reduce confusion among the people (İnce, 2018). This democratic leadership is authentic for implementing kindness and socialisation among the team members. This leadership style works on human intelligence and it helps in taking a fair decision for the benefit of a company and team as well. Also, it enhances job satisfaction among the employees and a team becomes more committed to the work. There is a lack of embarrassment in this leadership style that helps to create a comfortable workplace.

McGregor – Theory X and Y of management

In this theory X and Y, theory X explains the importance of external rewards, heightened supervision as well as penalties. On the other hand, theory Y focuses on the motivational factors and this provides job satisfaction. Also, this encourages the employees at the workplace to approach tasks without direct supervision (Oluwakayode, Clinton, Stanley, and Subi, 2017). The author explains that theory X is considered as an autocratic style and this is emphasized on the productivity in a company and this concept of the X is more about fair day’s work. From the negative perspective, it is restriction and featherbedding of output, on rewards for performance.

In theory X the employees want to run away from the workload and they are reluctant to do their job. There is a less visible effort among the employees.

Whereas in theory Y the employees become more productive and the positivity is visible among the team members. The employees become more responsible and trustworthy in this theory Y. it has been found in studies that Theory X is the satisfaction of low-level physical need and as a result, it cannot expect to be productive. To work with the X, the rules and punishment need to be implanted in the organisational policies. But in their Y, the rules and regulations are not necessary to be strict.

Justification of theory

The theory X and theory Y were coined but McGregor believes that one set of managers considered as set X believed that their employees are not interested in working and are less creative, avoiding all responsibility. While the other set of managers that is the Y set believes that employees enjoy responsibility and accept creative challenges in work. Ratan Tata believed in sharing and developing managers close to theory Y this shall help the organisation foster a culture of productivity (Lestari and Rosdiana, 2018). The employees may be innovative and would be more responsive to challenges. This shall then help the organisation build a strong team. Ratan Tata himself was the manager of the managers of theory Y. This helped indirect supervision of the employees. The managers started to enjoy the responsibility and respond creatively to challenges the business faced. Tata believed in growing together and has often shared the profits with the employees and made them feel a part of the company. Ratan Tata has been a master at using motivational tools during his leadership and management tenure at the largest corporation in India


From this study, it can be concluded that leadership and management practices are two of the main functions. This will help Tata Group to direct their resources for achieving goals and improving efficacy. An effective leader within the organization will motivate, provide clarity of any purpose, and will guide the business organization to realise its ultimate mission. Leadership and management are important for the delivery of effective services and goods. Leaders of the Tata Group will have a vision of what can be acquired. Then it is communicated with others to evolve and identify the appropriate strategy for conducting the vision. Leaders of Tata Group will motivate people and will support others to achieve their shared goals. This study has identified the transformational leadership styles which will enable the leaders of Tata Group to search for newer opportunities. These leaders will also create a common vision and will adequately guide and motivate the employees of Tata Group. Transformational leaders can generate a common vision through which each of the members of the organization can learn by using both, tacit and explicit knowledge. This study has evaluated the management practices that aim of improving the performance of the Tata Group. It aims to diversify and expand the business. This practice is performed by creating a suitable environment where people can be motivated to work in terms of their optimum level of productivity. An appropriate management practice will help this family-owned business to achieve its goals, it tends to integrate the resources, arranges the factors of production, organises and effectively manages the resources. Hence, this study gives a clear understanding of leadership and management practice, tools, and procedures that are effective at acquiring the desired performance.








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Balabhaskaran, P., 2019. Tata Group: Trauma of Transition. South Asian Journal of Business and Management Cases, 8(1), pp.32-46.

Balabhaskaran, P., 2019. Tata Group: Trauma of Transition. South Asian Journal of Business and Management Cases, 8(1), pp.32-46.



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Jha, S., 2020. Infallibility of Ratan Tata: A Case Study. Review of Management, 10(1/2), pp.25-29.


Lestari, Y. and Rosdiana, W., 2018. Democracy leadership (study approach of bureaucrats leadership at sub bagian tata usaha badan perencanaan pembangunan daerah, East Java province). In Journal of Physics: Conference Series (Vol. 953, No. 1, p. 012165). IOP Publishing.


MC, A.B. and Rentala, S., 2018. Role of leadership and corporate governance: The case of Tata group and Infosys. FIIB Business Review, 7(4), pp.252-272.


Nedelko, Z. and Potocan, V., 2021. Sustainability of Organizations: The Contribution of Personal Values to Democratic Leadership Behavior Focused on the Sustainability of Organizations. Sustainability, 13(8), p.4207.

Oluwakayode, O., Clinton, E., Stanley, A. and Subi, J., 2017. A review and application of McGregor’s theory X & theory Y in business research. Theme:“Entrepreneurship and the Knowledge Economy”, p.245.

Pace, M., 2019. A Correlational Study on Project Management Methodology and Project Success. Journal of Engineering, Project & Production Management, 9(2).

Rodrigues, A.L.M., da Silva, D.D. and de Menezes Filho, F.C.M., 2021. Methodology for Allocation of Best Management Practices Integrated with the Urban Landscape. Water Resources Management, 35(4), pp.1353-1371.



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