Unfair labor practice and / or breach of duty of fair representation occurred at Friends Inc.,

Regarding questions of unfair labor practice and / or breach of duty of fair representation occurred at Friends Inc., following are my answers;

(1) Unfair labor practice: Employer

      It seems to be unfair labor practice occurred when management / employer denied negotiating of employee contribution with union / union steward. Denial of negotiation with union and breached of collective bargaining is defined as unfair labor practice under NLRA Section 8 (a) 5 (nlrb.gov).

     If the health care service is provided by third party and third party increase the cost of service, the employer has right to increase the employee contribution towards health care (Morris R. C.).

     As per bargaining / negotiation point of view, the employer trying to do ‘Surface Bargaining’ means the management / employer may be wants total control over working conditions     (Cohen M.).

     Here the employer / management has given prior notice to the union steward about increase in health care contribution cost of employee from 15% to 25% but refuse to negotiate with union. Hence the surface bargaining is likely to occur from the employer i.e. from Friends Inc.

     From above arguments, I believe that the employer has committed unfair labor practice.

(2) Unfair labor practice issue: The Union

     Yes, I believe that the EUA union also involved in unfair labor practice. This is cleared from the union steward’s statement to the Director of Human Resource –Ross. The steward threaten the management in reply to increase in employee contribution; “You’ll see exactly what a union can do!”.

     Instead of come up with the grievance and / or trying to entering in negotiation, the steward threaten the management which is counted as violation under NLRA Section 8 (b) 4; which may considered that union / union member / employee subjected to refuse for work, may involve in strike or work stoppage activities, may involve in boycott of work and / or may convince other employee not to follow company policy.

     Chandler accused for coming late with other employees the day after the conflict aroused with the HR Director and given oral threat to the HR manager.

     Hence, the EUA union has committed unfair labor practice.

(3) Just Cause:

Just Cause is defined as “an employer is justified in terminating an employee without providing reasonable notice or payment instead of the notice” (Zvulony K.).

Several criteria used to define just cause; when employee engaged in any violation or found to violate company policy, the employer can terminate the employee without prior notice. The criteria used to determine just cause are (Achille R., Class notes);

(i) Previous Discipline : Whether the employee had been disciplined in past due to his / her behavior.

(ii) How many years the employee has been working with company,  the more senior the employee the more serious the case would be (Zvulony K.).

(iii) Investigation manner: The employer must have sufficient evidences to prove just cause. The investigation includes

·         Witnesses

·         A grievant and a victim (employee complained about co-worker)

·         Seeing both sides

·         Evidences like documents, video tapes etc.

(iv) Disparate Treatment: Discrimination occurred or not during layoff.

(V) Double Jeopardy: The employer / management cannot discipline an employee more than once for the same offense. If it happens so, the employer engaged in violation of just cause.

(vi) Piling on: To punish employee based on past consecutive misconducts.

Joe’s case: I believe that the Friends Inc. followed just cause “previous discipline” and Joey was disciplined. As Joey committed, “he was go on inappropriate websites” and as per steward’s statement, “he was penalized because of accessing gambling site” shows Joey did it intentionally. Furthermore Joey argued employer’s discipline is not right even he found guilty.

     From the conversations between Joey and Chandler, I believe that Joey not learned anything from past discipline and again involved in misconduct. I don’t believe that any one can go on inappropriate sites twice consecutively even it’s a mistake and Joey may shield himself by stating that he is not good with computer. If he is not good with computer, why did he never try to lean? Or he should not use computer anymore. Joey’s argument not sounds good and the Friends Inc. has used adequate just cause to penalized him.

Rachel’s Case:  It seems that union followed just cause while firing Rachel considering the sever offense and selected no progressive discipline. In that case I can say the just cause followed. But in detail, I found that employer The Friends Inc. has violated just cause.

As per seven criteria of just cause (Achille R., & tdu.org) the employer failed to follow just causes.

(i) Past discipline: It is not cleared here that Rachel and her co-workers Will and Grace has cleared past record or not. Furthermore all found guilty for the same offense.

(ii) Fair Investigation: It is not cleared that what other sources or evidences the HR director took in to consideration while firing Rachel. Employer must have witness / some proof to penalized them. It’s cleared that the security guard caught them and he is the only witness of the event, however he was not present during the personal meeting arranged by the employer. The employer just considered the commitment of Rachel and her co-workers to smoke marijuana on company premises. The self commitment is seems to be enough for the employer to terminate Rachel without notice.

(iii) Disparate treatment: I see the discrimination occurred with Rachel since she was the only female employee. Ross biased with her since all three were caught in her car.

(iv) Adequate notice: It is the thumb rule (tdu.org) that employee must be known when his / her misconduct may results in termination or suspension.

(v) How long the person has been with the company: Here the seniority as well as past records does matter. However the past record of Will and Grace is not cleared and in sever offence, the Friends Inc. fired only Rachel!

     Considering above five criteria I believe, the progressive discipline with Will and Grace is considered to be disparate treatment with Rachel and the employer violated just cause, because when it’s a federal law and / or the employer found it’s a very offensive, either Rachel also given prior notice or suspension before termination or the employer must terminate Will and Grace too.

Smoking marijuana is considered by the employer very serious misconduct hence all three are subjected to same penalty. Only Rachel’s termination led violation of just cause by the Friends Inc.

     I believe that the Friends Inc. acted in discriminatory manner and violated just cause.

References

Achille R. (2010) Just Causes. Class notes. Labor Relations MGMT 6050. Retrieved on November 03, 2010.

Cohen M. (2010) The Law Of Collective Bargaining In Context retrieved on November 03, 2010 from http://www.millercohen.com/CM/ArticlesAndCases/CollectiveBargaining.asp

Morris R. C. (1999) Can an employer raise required employee contributions mid-year? Retrieved on November 07, 2010 from http://benefitslink.com/modperl/qa.cgi?db=qa_125&id=142

National Labor Relations Act retrieved on November 07, 2010 from http://www.nlrb.gov/about_us/overview/national_labor_relations_act.aspx

The Seven Tests for Just Cause retrieved on November 04, 2010 from http://www.tdu.org/node/3623

Zvulony K. The definition of just cause retrieved on November 06, 2010 from http://www.zvulony.com/just_cause.html

                            

Coleman’s Vision:

1. Coleman’s Vision:

     Frank Coleman – an enthusiastic, energetic and visionary man when joined a 50 years old family owned company Hi-Tech Aerostructures, created rock star like image in the company. An enthusiastic Coleman hired directly as a President of Hi-Tech Aerostructures, he obviously   became more excited and had dreams of transforming the company.

     No doubt that Coleman had ideas to transform the company beyond imaginations of anyone. He had magnetic speech and attracting power to convince someone too, but all in his own ways!

     Coleman had always presented his own ideas to the vice presidents and the team who working for transformation project. He never accepted any kind of suggestions or ideas from Deacon or any other employees. So the force of transformation project was in unidirectional. The transformation project was taking place and the feed backs were positive too.

     But the negative effect of one side effort was reflected when Coleman felt that they were in wrong direction and the entire project need a little shift or needed a different approach. Deacon and his colleagues always followed Coleman’s “broad” vision which finally came in dilemma when Coleman asked them to acquire a different approach.

     According to me, Coleman could be considered as a visionary leader but not an efficient and effective leader. He had a vision to transform the company but he didn’t know what approach he should adopt to fulfill the vision. Furthermore he failed to establish a communication network with Deacon and team members ever. His autocratic ideas lead transformation project in wrong direction and he screamed that he may not achieved his transformation project without adopting a different approach.  

     Hence by viewing overall scenario, I can say Coleman seems to be a dreamer rather than a visionary leader.

2. The Dreamer’s Paradise

     Frank Coleman, a visionary leader seems to be a dreamer when he gave fruitful ideas to the team of transformation project but failed to understand employees’ perspectives. So according to the chart (p. 410), I place Coleman as a “Dreamer” rather than a visionary leader - dreamer with bright ideas but weak in taking actions.

     According to me, Deacon could be identified as a follower rather than a leader. Deacon chosen to be the head of the transformation project and he was also serving as a vice president of the company. Initially Deacon presented his and his colleagues’ ideas to Coleman but were rejected. Hence initially he seems to be an independent critical thinker but his thinking suppressed under Coleman’s autocratic behavior. Furthermore sometimes he acted as conformist when he carried Coleman’s ideas to team members and asked to follow them without thinking. Throughout the transformation project, Deacon acted as an effective follower with passive mind where he never analyzed Coleman’s ideas but always showed enthusiasm and eagerness to do whatever best for the company.

     Even when Coleman asked him to take a different approach, he asked Coleman to help whatever he needed to do to save the transformation project; hence for the transformation project he was more hopeful and optimist rather than Coleman.

     Coleman acted as a dreamer with broad but blurry vision of transformation project and Deacon acted blindly to follow Coleman’s ideas hence he proved to be like a follower rather than a leader.

3. Deacon’s Actions

     Deacon – the vice president of Hi-Tech Aerostructures was pointed head as the transformation project by the new resident – Coleman. Deacon followed blindly to Coleman which lead the project in wrong direction.

     If I were be on Deacon’s place, I try to establish two way open communication channel with president and team members. Since Deacon’s position was also strong in the company – many important decisions could have been taken. If I were the head of the project, I would not follow one’s ideas blindly but analyzes with group members and can discuss with them to make it more fruitful. Furthermore it’s necessary that all members agreed upon the ideas or vision that takes place. I would like to provide everyone to present their own critical thinking and encourage them to do problem solving and critical thinking. Instead of becomes a rubber stamp follower, I would like to act as an effective follower and an effective team leader who can nurture the future vision to his colleagues.

     I think Deacon’s role in transformation project is more challenging than Coleman’s because Deacon is the only one who act as “bridge” between Coleman and team members. Deacon is the key person for communication within the company who has power to reshape transformation project. If I would placed in Deacon’s position, I really like to participate actively and like to lead my team with clear vision with high efficiency.

Reference

Draft R., L.(2009). The Visionary Leader: Creating Vision and Strategic Direction: The Leadership Experience 4e. (pp. 416-417). South-Western, OH, USA.

    

    

  

Communication Climate at Saddle Creek Deli

1. Communication Climate at Saddle Creek Deli

     The communication at Saddle Creek Deli became poor after hiring of McCarthy. The communication was not only one way but was hierarchical type and close typed where no employees were involved in discussion with each other or with top management.

     Purvis entrusted McCarthy and gave him total management of Deli. The business was going fine and no complaints came from any of customers. Soon McCarthy’s autocratic behavior and cost cutting management for his own favor put deli business on oxygen! If Purvis had given him guidelines or instructions to manage the deli, the things wouldn’t have changed as mentioned.

     McCarthy’s autocratic behavior accepted by employees and they feared to complain. Fall in service and food quality seen by increased customer complains. There were no direct communication link among Purvis, McCarthy and Deli Employees. McCarthy was serving as intermediary channel between Purvis and Deli employees and Purvis convinced that there were no negative effects on business due to cost cutting program.

     However the communication between Purvis and Ron revealed the weaken situation at Deli. Thus Purvis was informed by third party about business downturn at Deli.

     The whole climate resulted in customer dissatisfaction and fair quality of service. Thus the close communication climate could not resolve until Purvis involve in direct communication with Deli employees, its customers and McCarthy. The communication scenario at Deli could be described as below (pg. 2)

Chart: Communication Climate at Saddle Creek Deli

2. Communication Improvement at Saddle Creek Deli

     The overhaul and autocratic behavior of McCarthy’s cost cutting program had adverse effect on Deli business. McCarthy created totally absence of communication among Purvis, Deli employees and customers. In this communication crisis, Purvis need to established effective channel of communication among deli employees and consumers as well as with McCarthy. The crisis could not be resolved until Purvis involve in active and direct communication. Purvis could improve the communication between McCarthy and Employees in following ways;

·         Arrange face to face meeting with McCarthy and employees once or twice in a week to discuss the quality of service and customer feedbacks.

·         Purvis must attend the meetings and try to resolve conflicts between employees and McCarthy.

·         Purvis need to listen what customer says, in short direct contact with customers and asking them question and asking them how to improve the service and quality of food.

·         Purvis must acquire the discernment to read under the line. Discernment will help Purvis to detect unarticulated messages hidden below the surface of spoken interaction, complaints, behavior and action (p.269).

·         Sending e-mails and text messages to employees and manager and constantly getting feedbacks from customers.

·         Use of stories and metaphors to connect employees and customers at intellectual and emotional level.

·         This could help Purvis to inspire employees and to learn them how to take actions in difficult situations.

·         Developing an informal communication i.e. boundary less communication where everyone can talk to top management i.e. with owner – Purvis easily and can provide suggestions and comments. Electronic media could perform well. For instance use of blog for Saddle Creek Deli not only expands the network of communication but also increase the communication richness.

·         Application of face to face meetings and online blog or two way communications could improve communication between McCarthy and employees and also it would be benefit customers to provide feedbacks and suggestions. 

3. Development of Communication Effectiveness and Improvement

     Communication development is an essential and crucial part of an effective leadership. A manager must turn in to the leader for effective leadership. To reframe the communication structure at Saddle Creek Deli, manager should consider following ways to increase communication effectiveness.

·         Manager should act as an “information processor” that means manger must spent ample amount of time to communicate with employees, customers and clients / suppliers.

·         Development of an open communication climate that means a manger and / or a leader should share all kind of information throughout the company and across all level (p.264).

·         Considering the atmosphere of Deli, an openness communication could be developed by manager by direct contact with customers; taking feedbacks from customer could enhance the service quality and business.

·         As a manager, an upward communication could be established by designing feedback forms, online blog – which is open for all where customers post their ideas and give valuable feedbacks.

·         A manager should involve in active listening and frequently ask questions to improve quality of service and to develop more effective way of communication.

·         An effective way of high channel richness of communication could be developed at Deli when manager meet every customer face to face and welcome then either at the entrance or at the cash counter at least once a time.

·         A manager must use stories and metaphors during crisis time to inspire employees and motivate them.

·         Development of an informal communication that means no hierarchical barriers among employees, manager and customers could enhance communication process and can enhance business at Deli.

     Thus an effective and efficient communication strategy could be developed at Deli for upward and openness of communication which could result in service of excellence at Saddle Creek Deli.

Reference

Draft R., L.(2009). The Saddle Creek Deli: Leadership Communication: The Leadership Experience 5e. (pp. 288-289). South-Western, OH, USA.

Women and Leadership

Women and Leadership

Introduction

     ‘Leader’ a word presents a masculine image when we read it / say it. Generally we believe leader is mostly male, but do we imagine it could be a woman too? Never. But the actual thing is that, there were women leader exist among us, currently many women holding top positions in various sectors in the society. In the world of globalization, equal opportunity, dessolvation of barriers in job position, elimination of discrimination of sex or gender in job selection empowered women. Women are heading many top positions in business world today; still the leading role of women is believed to be less than that of men’s. In today’s society many women heading business, profit-nonprofit organizations. For example Time magazine noted Ms. Indra Nooyi – current chairman and CEO of PepsiCo Company as world’s most influential people (Time, 2009). Many researchers in business field concluded that, there were no gender differences in leadership style (Brukes S. & Collins K., 2001). But the research of Rosener in 1990 in Harvard Business Reviews – “Ways Women Lead” put the old school of thought in question. However the study not provided any conclusive data, the replicated research was performed by Burke S. and Collins K., with obtaining various primary and secondary data collection.

     The article focuses on mainly female accountants who successfully pass overcome male accountants in the leadership aspects and managerial aspects.

Leadership and Management skills

     The authors considered male and female accountants for their study. The leadership style called “Transformational leadership” was measured against seven management skills. Women also found to be more commanding over management skills like coaching, developing and communicating (p.245).

Leadership Styles:

(i) Transformational leadership (Bass, 1985) could be defined as; “positive relationships with subordinates in order to strengthen employee and organizational performance” (p. 245).

Transformational leadership includes encouraging employees to look beyond their own needs and focus instead on the interest of the group overall (p.245).

Other leadership style transactional leadership which is subdivided in to contingent reward and management by exception leadership developed by Bass (1985).

(ii) Contingent reward leadership: It includes establishment of work standards and successful achievements of that will results in rewards for employees. This leadership style includes written or verbal commitment of managers with their employees (p.245).

(iii) Management by exception: Management by exception is based on influence of managers on employees according to their power or positions and finding out errors and disciplining workers for poor performance (p.245).

Management skills:

     Management skills differ from leadership style; the skills included coaching, communicating, resolve conflicts, problem analysis and decision making.

Method of data collection and sample size:

     Population was - collection of women and men from organizations of CPAs, where 2800 women and 2800 men (accountants) were selected, however the response received by only 711 women accountants and 320 male accountants (final sample). Variables included leadership style sub-components and management skill subcomponents as follows (p.248-249);

Leadership Styles	Management Skills
Transformational leadership	Delegating
·         Attributed charisma	Conflict management
·         Inspirational motivation	Coaching and developing
·         Intellectual stimulation	Personal organization and time management
·         Individualized consideration	Communicating
Contingent reward leadership	Personal adaptability
Management by exception (active & passive)	Problem analysis

Methodology

     Management style (leadership style) was evaluated by multi factor leadership questionnaire (MLQ) developed by Bass and Avolio et al. (1996) where as management skills were evaluated by “Management skill profile”, developed by Personnel Decision Inc. (p. 249). The questionnaires given to managers and was noted under self-rating system.

Results

     Results cleared that female accountants were more active in participating different aspects of leadership like to participate in employee motivation and provide intellectual stimulation. In contrast to that, men respondents found to lean towards management by exception (active and passive) side.

     Furthermore leadership components - transformational leadership, contingent reward and management by exception (MBE) was measured against seven management skills including communicating, conflict management, coaching and development, delegating, personal adaptability, time management and analysis and decision making. Among all, transformational leadership was found to be the best suitable management style followed by contingent rewards and management by exception. MBE found to be least suitable variable among female respondents (p. 251).

Conclusion

     The study indicated that female respondents were more enthusiastic and positive towards leadership compared to males. Males were generally found to be more active in MBE side where they like to rule on their power or position. However this survey is not totally full proof of female leadership is superior over male. The limitation of the study is, it was conducted only in one industry, whether the study implies to other sector or not, that’s not clear. Furthermore results obtained were self reported, hence there might be a possibility of inflation of data. Further research is necessary to find out more leadership opportunities for women in different sectors.

References

Bass, B., M., (1985). Leadership and Performance beyond Expectations, Free Press, New York, NY.

Bass, B., M., Avolio, B., J. and Atwater, L. (1996). “The transformational and transactional leadership of men and women”, Applied Psychology: An International Review. 45 (pp. 5-34).

Burkes S., & Collins K., M. (2001). Gender Differences in Leadership Style and Management Skills: Women in Management Review 16 (5) (pp. 224-256). Doi: 10.1108/09649420110395728

Rosener, J., B. (1990). “Why Women Lead”, Harvard Business Review. 68 (pp. 119-125).

Schultz H., (2009). Indra Nooyi: Builders and Titans. The 2008 Time 100. Retrieved on June 15, 2010 from http://www.time.com/time/specials/2007/article/0,28804,1733748_1733758,00. html

TATA history

Introduction

     1919, the legacy transferred when the Chairman of the Tata group Mr. JRD Tata selected his heir from his own family – a visionary and enthusiastic and future leader of the Tata Group-Mr. Ratan N. Tata.  

     Mr. Ratan Tata joined Tata group in 1962 and appointed as director-in-charge of National Radio and Electronics Company (NELCO) in 1971. However the financially the NELCO was on ventilator and could not survived due to negligence of management of Tata group. In 1991, he selected as the Chairman of the Tata group (Tata.com).

     Under his leadership Tata group emerged globally and also shined among world’s most innovative companies (The Businessweek, 2010). Mr. Ratan Tata operates more than 90 companies under seven divisions that makes it India’s largest conglomerate. Under his strategic vision and effective leadership skill, Tata Motors launched world’s cheapest car say it’s a “peoples’ car” - Tata Nano. The concept of a cheap, affordable family car came in Mr. Tata’s mind when he saw a family of four riding two wheeler and wife holding a youngest child and the idea of a “family car or people’s car” born. Many milestones in Indian business industry set up by Mr. Ratan Tata including acquisitions of many foreign industries by Tata group and make it global conglomerate. Mr. R. N. Tata currently serves as advisory boards in companies like, JP Morgan Chase, Rolls Royce, the AIG group (USA), Mitsubishi Corporation, Bill and Melinda Gates Foundation India’s AIDS initiatives and more (tata.com). Even in his 70s he is successfully operating Tata group and listed as World’s most influential people of 2008 by the TIME (Robinson S., time.com).

Early Measures

     The reformation started when Mr. Tata became the Chairman of the Tata group. Challenges were on the doorsteps, the country had only two weeks of foreign exchange reserve, the license of production and business was limited by the government of India. Even in adverse conditions Ratan Tata articulated his vision in 3 phases for following 15 years (Kumar A.). The first phase was downsizing and removal of Augens.

     Mr. Tata limited the stake of conglomerates in all companies to minimum 26 %, he ordered each employee to meet performance standard and set target to be either to be first, second or in the industry or should be sold (Perry A.).

     Tata forced many aging directors to resign holding top positions in different companies when they resist changes and appointed himself as the Chairman of the entire Tata group. Thus he also introduced voluntary retirement scheme for those who made no changes.

The Steel Man

     One of the greatest achievements Tata gained by reformation f the steel industry with effective measures and long term actions. The strategy he developed to reform the steel industry while India was going through economic reform during 90s, globalization was about to begin and wireless communication market was not developed! The strategy included;

·         8 % cost reduction to avoid the loss in steel production.

·         Removal of barriers (Voluntary retirement scheme for those who resist changes)

·         Tata hired outside consultants to use international benchmarks. The consultants suggested removal of old equipments, development of new marketing strategies and downsizing to boost productivity and lower cost of production.

     Tata Steel’s shock therapy worked and became the Tata group norm (Meredith R., Forbes, 2005).

     Ratan Tata offered employees early retirement benefits and downsized the company by removing about 38,000 employees! However all employees were paid the whole retirement age salary. Positive results are seen within a decade when company boosted its production capacity from 78 tons to 264 tons per worker per year (Meredith R.).

     In 2007, Tata acquired Corus Group – UK based steel maker and became world’s fifth steel producer.

     The production capacity of Tata-Corus was expected to be about 27 million tons per annum. Recently Mr. Ratan Tata announced that the steel production capacity would be between 40-50 million tons per annum (The Economic Times, July 15, 2010).

     Hence under his long term vision and strong decision making power, Tata Steel emerged as world’s one of the leading steel production company.

Strategy

Mr. Tata’s vision distributed in three phases:

Phase I:

·         Voluntary Retirements for Augean stables

·         Cost cutting method for low cost production

·         Downsizing (Removal of unwanted labors)

·         Implication of new plant equipments

·         Appointed himself as the Chairman of entire Tata Group.

Phase II:

·         Appointed young blood in administrative and technical departments.

Phase III:

·         Distribution of leadership and empowerment of team members / employees.

     Mr. Tata’s strategy worked and the organization emerged as India’s largest conglomerate.

Mergers and Acquisitions

     Under Mr. Ratan Tata’s effective leadership and long term vision, the Tata group acquired number of foreign companies.  After buying British tea company Tetley Tea in February 2000, Tata became fond of buying British brands. The biggest Indian business acquisitions done when he bought Corus (January 2007)– British Steel Giant and became world’s fifth steel producer. Soon after a year he bought two of the British car brands Jaguar and Land Rover in US $ 2.3 billion (March 2008). His success not stopped here, he acquired many companies in more than ten countries including USA, UK, Australia, Morocco, South Africa, Germany and more (tata.com). Currently Tata group has the record to acquired more than 50 companies in India and worldwide! For example some of the mergers and acquisitions are as follows: (Tata.com).

[Chart 1. pg. 5]

Chart 1. Mergers & Acquisitions by Tata Group (Tata.com)

Tata Group Comp.	Acquired Company	Country	Value	Year
Indian Hotels	Campton Place Hotel	US	$ 58 million	April 2007
	Starwood Group (W Hotel)	Australia	$ 29 million	December 2005
Tata Autocomp System	Wündsch Weidinger	Germany	€ 7 million	September 2005
Tata Chemicals	General Chemical Industrial Products	US	------	January 2008
	Indo Maroc Phosphore SA (IMACID)	Morocco	$ 38 million	March 2005
Tata Coffee	Eight O' Clock Coffee Company	US	$ 220 million	June 2006
Tata Communications	Neotel	South Africa	-----	January 2010
	BT Group's (BT) Mosaic business	UK	£ 0.5 million	January 2010
	China Enterprise Communications Limited (CEC)	China	50 % equity interest	June 2008
Tata Consultancy Services	Citigroup Global Services	US	$ 512 million	December 2008
	Comicorm	Chile	-----	November 2005
Tata Motors	Jaguar and Land Rover brands	UK	£ 1.5 billion (approximately)	March 2008
	Daewoo Commercial Vehicle Company	Korea	$ 102 million	March 2004
Tata Steel	Corus	UK	$ 11.3 billion	January 2007
Tata Tea & Tata Sons	Tetley Group	UK	£ 271 million	February 2000

Legacy and Competitive Advantage:

     Tata group possesses the historical achievements and values that no other business sector in India has. The Tata group is more than a century old and expanding day by day.

     Tata group was established by visionary leader and entrepreneur of the century in India – the son of a Parsi trader from Bombay (Mumbai) -Jamshetji Tata during the British Raj (time) in1868. He setup India’s first steel plant, first hydroelectric plant, first textile mill, first shipping line, first cement factory, first science university and first world class hotel – The Taj. Also the first motor company and first chemical plant was established by Jamshetji Tata (19^th century). After his death in 1904, the city where he established the steel plant named as “Jamshedpur”. The predecessor of Ratan Tata, Mr. J.R.D Tata established first airline industry of India and became the first pilot of India.

     Tata group first established eight hour working day in 1912, maternity benefits in 1928 and profit sharing in 1934. Hence Tata group and its rulers brought the Renaissance for Indian Industrialization and globalization.

     Mr. Ratan Tata got many competitive advantages of the Tata group. First, it is the largest and first conglomerate sector in India. Tata group is most diversified group too. Another advantage is the cross cultural relationship due to global operations of the company. The firm’s century old relationship and trust among Indian people makes it more reliable brand. Under his leadership, Tata Group of companies acquired more than 50 companies worldwide and at home country. Even in his 70s, he manages India’s largest conglomerate.

Revolution to the Nanolution

     Ratan Tata’s business strategy worked like a philosopher’s stone for the empire. His dream to build a “people’s car” came true when he put young blood in motion. In India, to get a car for a family is every common man’s dream, car is still count as luxury for middle class people. He thought about people’s safety and transportation needs. Basically he satisfied the Abraham Maslow’s need theory (Draft R., L., 2008) which applies to a common man to acquire his dream.

     Ratan Tata put his efforts at excellence, served as a companion, showed a clear vision to billion people and gave then dream which could be satisfied. With arrows of criticisms and controversies, the team came up with the innovation, a people’s car – Tata Nano, and really the Nanolution done under the visionary leader’s leadership and motivation. During the unveiling ceremony of Tata Nano, Mr. Ratan Tata said: “A promise is a promise” (Robinson S., Time, 2009).For his remarkable revolution he is also named as “Henry Ford of India” (Sarkar J. and Vivek T., R., 2008).  Competitors and entire world amazed when world’s cheapest car launched.

Leadership Unveiled

     The journey from NELCO to Nano set many business landmarks in Indian and global business industry. Mr. Tata joined NELCO as a trainee and he trained many management gurus during the Nanolution in 2010 (The making of Nano). How the leadership potential unleashed is an interesting part of his leadership. Mr. Tata’s enormous courage to complete tasks that written off. His long term vision and risk-taking ability makes him visionary and courageous leader. “Mr. Tata has strong sense of what is right and what is wrong and he always encourages his managers to come forward and express their views rather than impose his decision,” said Alan Rosling - executive director of Tata Sons (Hindustan Times, 2007).

     Mr. Tata is also patriotic, for an example, even China is known for lowest labor cost, Mr. Tata preferred home producers and suppliers for making of Nano and he done it.

     Instead of acting as owner and chairman, Mr. Tata hardly draws a salary from Tata Sons (Perry A., Time, 2006).

     His brainchild – world’s cheapest family car put the industry in world’s most innovative companies (2010, June, The Businessweek). Thus his long term vision transformed the company and make it global conglomerate.

Conclusion

     The 74 year old non-executive chairman is known to remain as low profile. The Time listed Mr. Ratan Tata as Asia’s most influential businessman of the 2008. Even though his great achievements, he always remains as humble and low profile leader. After launch of Nano, he handed over day-to-day business to selected front line managers (Hindustan Times, 2007).

     Even after a partial retirement, he has vision to build “Nano Homes” – cheap, affordable homes outside Mumbai for commuter who commute everyday to Mumbai’s suburbs for earning. Mr. Tata also looking for his descendant who can handle the 140 years old empire. Tata said “it could be a man or female, may be within the company or outside the company or may be a foreigner”. Whoever the descendant would be, but Ratan’s Revolution continues…

                                                                                                                                 

References

Aiyar S., (2008, January 11). Ratan’s Revolution. India Today. Retrieved on June 16, 2010 from http://indiatoday.intoday.in/site/Story/3390/Cover%20Story/Ratan

Meredith R., (2005, January 1). Tempest In a Teapot. Forbes. Retrieved on June 16, 2010 from http://www.forbes.com/global/2005/0110/024.html

IST, PTI (2010, July 15). Tata Steel to take production capacity to 50 MTPA: Ratan Tata. The Economic Times. Retrieved on July 20, 2010 from http://economictimes.indiatimes.com /news/news-by-industry/indl-goods-/-svs/steel/Tata-Steel-to-take-production-capacity-to-50-MTPA-Ratan-Tata/articleshow/6173765.cms

Kumar A., (2007, February 23). The Bombay House biz wiz. Hindustan Times. Retrieved on June 16, 2010 from http://www.hindustantimes.com/News-Feed/newsmartimportedstories /The-Bombay-House-biz-wiz/Article1-203645.aspx

Perry A., (2006, October 22). Shaking The Foundations. Time. Retrieved on June 16, 2010 from http://www.time.com/time/magazine/article/0,9171,1549275,00.html

Robinson S. (2009, April 03). The 2008 Time 100. Builders and Titans. Retrieved on June 08, 2010 from http://205.188.238.181/time/specials/2007/article /0,28804,1733748_1733758_1735108,00.html

    

Sarkar J. and Vivek T., R. (2008, January 13). How Ratan Tata created the Nano like Henry Ford. Retrieved on June 09, 2010 from http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles /How-Ratan-Tata-created-the-Nano-like-Henry-Ford /articleshow /2695485.cms

Special Report, The most 50 innovative companies.  (2010, June 13). Retrieved on June 13, 2010 from http://www.businessweek.com/interactive_reports/innovative_50_2009.html? chan=magazine+channel_in%253A+inside+innovation

The Associated Press (2007, April 03). Tata Steel Completes Acquisition of Steelmaker Corus. Retrieved on June 09, 2010 from http://www.cnbc.com/id/17924880/