How to Get Started in Social Media for Art League City
Mt on leadership and its effects on employees performance
1. Leadership And Its Effects on Employees
Performance
ON Hindalco Industries Ltd.
Submitted To: Dr. Deepak Sharma Submitted By: Shashi Chandra
HR Faculty 8nbah015
INC Allahabad INC Allahabad
IV - Sem
1|Page
2. STUDENT DECLARATION
I Shashi Chandra student of MBA at INC Allahabad of hereby declare that the MT
work entitled “ON LEADERSHIP AND ITS EFFECTS ON EMPLOYEES
PERFORMANCE" is compiled and submitted under the guidance of Dr. Deepak
Sharma (MT Supervisor) is my original work.
Whatever information furnished in this project report is true to the best of my
knowledge.
SUBMITTED BY:
Shashi Chandra
MBA (2008 – 2010)
8NBAH015
2|Page
3. TABLE OF CONTENT
1. An Overview of Research
2. Introduction
I. Group Philosophy
II. Rest on pillars
III. Group value
IV. Group vision
V. Group mission
3. Company Profile
I. Joint venture
II. Company strategy
III. Efficiency focus
IV. Effectiveness focus
V. Growth focus
4. Human resource (HR)
I. Company HR vision
II. Co. HR Mission
III. Co. HR Objective
5. Nature and define of leadership
6. Stages of employee development in company
7. Stages in job carrier
8. The role of the leadership in employee development In company
9. Research Design/methodology
10. Review of literature
3|Page
5. Acknowledgement
I would like to express my gratitude to all those who gave me the
possibilities to complete this thesis.
I want to thanks Dr. Deepak Sharma for giving me permission to
commence this report and to do the necessary research work with a
deep sense of gratitude and humble submission.
I would like to express my heartiest gratefulness to my faculty whose
stimulating suggestions and encouragement helped me all the times for
completing this report in well organized way and in systematic manner
so that I can reach up to my goal easily and effectively.
5|Page
6. Overview
Demand for great leaders is growing in modern times, as society and
technology is becoming increasingly advanced. The ever changing business
environment has created a need for leaders who can meet the demands and
challenges of organizations functioning in complex competitive environments,
with the world open for trade. The discussion in this chapter initially
describes the nature and definition of leadership. Leadership is then discussed
in terms of traditional and new theories, culminating in a discussion of the
move from the traditional to the new leadership approaches. Traditional
leadership theories are discussed in terms of the trait theory, behavioural
approaches and situational/contingency approaches. The new leadership
theories, namely transactional and transformational leadership, are discussed,
after which the integrated approach of Full Range Leadership Development
Theory is reviewed.
Finally, the relationship between leadership and emotional intelligence is
discussed, demonstrating the theoretical connection between them.
6|Page
7. INTRODUCTION
Employee performance is an important building block of an organization and
factors which lay the foundation for high performance must be analyzed by
the organizations. Since every organization cannot progress by one or two
individual’s effort, it is collective effort of all the members of the organization.
Performance is a major multidimensional construct aimed to achieve results
and has a strong link to strategic goals of an organization. Managers at all the
levels have to input their efforts and make maximum use of their abilities
which sometimes are produced under supervision or without it. However,
there are many expectations from managers working for an organization.
These expectations are sometimes fulfilled but in some situations these
managers may be running to their boss for guidance. Therefore, the managers
must be developed so that they can think and work on their own and fulfill
their responsibilities innovatively, while understanding and foreseeing the
market and business situations.
Consequently question arises that how an employee
can work more efficiently and effectively to increase the productivity and
growth of an organization. An effective leadership program can be of an
immense assistance to help identify and build leadership qualities among
individuals within the organization. The relationship between leadership and
performance was indirect as well as direct, which proves the importance of
developing leaders through leadership development programs. Latest studies
provide that organizations heavily invest in Human Resource Development
interventions to update and skill the employees in order to attain job
7|Page
8. performance, job satisfaction and job involvement. These skills can be
imparted by providing necessary technical/non-technical training and
coaching. Currently leadership is widely recognized, and verified through
research. Leadership development can be imparted through experiential
learning, and transformational learning and it is imparted as leaders can
influence the people and motivate them Leadership development is becoming
an increasingly critical and strategic imperative for organizations in the
current business environment Leadership development is an important area
which is considered and implemented in organizations to increase human
capability and some other benefits like to gain competitive advantage. Some
developmental assignments can be carried out concurrently with regular job
responsibilities, whereas others require taking a temporary leave from one’s
regular job . These development assignments can be used to develop
managerial skills at current jobs, some may be used to develop new projects
or begin new projects serving as department representative on a cross
functional teams. Training sessions play an important role to improve the
performance of organizational managers regarding communication skills,
listening skills, motivate others, support others, and share information.
A leadership development program is
aimed to improve the skills of managers at all levels whether operational,
tactical, strategic and personal as well. Performance is a vital feature of an
organization; furthermore, development programs can be helpful in
identifying and managing teams, where group development and specifically
personal development and growth of managers also take place.
The most important aspect nowadays is that ABBAS and
YAQOOB:-how a manger can adopt the leadership attributes and effectively
8|Page
9. use them to perform his job responsibilities assigned, these attributes can
help him work further than the job responsibilities and add more achievement
to the organization. Leadership development process intends to develop
leaders and also includes transfer of organizational culture and values
ultimately resulting into collective sharing among all the members of the
organization to achieve the organizational objectives (Hamilton and Cynthia,
2005). Leadership requirement in today’s organizations in Indian perspective
is very important to meet the global business challenges. On the other hand,
leadership development is also a major consideration and challenge across the
globe and has a major influence on employee’s performance. There is a large
amount of work done on leadership development and its impact on various
factors including employee performance in many parts of the world., however,
there is very limited research conducted in India because of which this
important area of organization and employee development remains
unexplored at large.
Hence, it is important to recognize the leadership
development and means to develop, and its impact on the organization and its
employees in business environment. Therefore, keeping in view the
importance of leadership development and its acknowledgment and benefits
drawn in all parts of the world, this research is aimed to study leadership
development value and benefits on business sector in particular employee
performance in Hindalco. Apart from this, leadership development can also be
helpful in implementing change efforts. There can be many methodologies to
implement this program through training, workshops, seminars etc.
Nowadays in India there is an emerging trend of corporate training conducted
9|Page
10. by the organization to develop the human capital and personal development
of managers. This trend is also recognized by various government institutions
as well. The overall objective of the research is to study the leadership
development and its impact on employee performance. The study will be
performed on Hindalco which are focusing on formal methods of developing
their employees. This study will be conducted on Hindalco industries ltd.
Therefore, this study will highlight the importance of leadership development,
its power to increase the performance and it influence on Hindalco business
environment.
Human Resources play a vital role in shaping a healthy and growing
organization. Without doubt, human resources development has hence been
aptly described as the “soul” of a vibrant and dynamic organization. The
increasing complexity and problems of managing human resources places
heavy demands on ensuring equal emphasis on all the sub-systems which
play a crucial part in ensuring holistic development of the human resources.
Human Resources Management has gained immense importance in today’s
environment of global competition to meet future challenges in the new
millennium. In these days of rapid advancement in Information Technology
and Techno-Commercial aspects of business, it would be eventually the “Man
behind the Machine” who would determine which way/ direction an
organization goes. Human Resources Development systems have an important
task in achieving the required dynamics to enable any organization to
perform at its peak. The right recruitment and selection to start with,
progressive training and development thereafter, and, a fair performance
appraisal system gives an impetus to professional and proficient management
10 | P a g e
11. of HR. There is yet another dimension of HRM which is directly related to, and
falls within the ambit of organizational development that deserves major
attention because the “character & culture” of an organization is formed by
HR of the organization and that will finally decide the future of the
organization. After said all this, it is imperative to consolidate on the available
human potential and check HR wastages to ensure organizational
effectiveness as it has become a key to sustain excellence and achieve
competitive advantage over others.
This project study is on “LEADERSHIP AND ITS EFFECTS ON EMPLOYEE
PERFORMANCE” thus assumes an even greater relevance in the existing
changing business scenario especially so when there is a paradigm shift in the
Organizations’ approach towards Human Resources Management in outlining
specific roles. Without defining HR vision, roles & objectives, an organization
would jeopardize its growth and survival After said all this, it is imperative to
consolidate on the available human potential and check HR wastages to
ensure organizational effectiveness as it has become a key to sustain
excellence and achieve competitive advantage over others.
This project study is on “ LEADERSHIP AND ITS EFFECTS ON EMPLOYEES
PERFORMANCE” thus assumes an even greater relevance in the existing
changing business scenario especially so when there is a paradigm shift in the
Organizations’ approach towards Human Resources Management in outlining
specific roles. Without defining HR vision, roles & objectives, an organization
would put it in danger its growth and survival different nationalities. In India,
the Group has been adjudged “The Best Employer in India and among the top
11 | P a g e
12. 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study
2007. Over 50 per cent of its revenues flow from its overseas operations .
The group’s products and services, offer distinctive consumer solutions. Its 66
state-of-the-art manufacturing units and sectoral service span throughout the
world.
Entry of Syt. Ghanshyam Das Birla
1916 - First taste of industrial management – take over of sick cotton mill
in Delhi.
1918 - First limited company – Birla Brothers Limited.
The real industrial thrust in 1919 with Birla Jute in Calcutta and
1921.
Jiyajeerao Cotton – Gwalior
Birla Jute was established in defiance of Scottish monopoly.
1923 - Purchase of Kesoram Cotton.
1926 - Orient Paper Mills.
1931-33 - Bharat Sugar, Upper Ganges Sugar, New Swadeshi Sugar, New
Delhi Sugar.
By 1947 - Assets wroth Rs. 25 crores in 20 companies.
Thereafter
12 | P a g e
13. 1954 - Durgapur Iron & Steel
1957 - Gwalior Rayon, Nagda
1962 - Hindalco commencement of production
1966 -Take over of Indian Rayon
ADITYA BIRLA GROUP
A truly multinational Indian Group
The Aditya Birla Group was the first in Indian to venture overseas, by starting
a joint venture in Ethiopia. Thereafter, over the last quarter century, this
group has started 20 very successful and diversified ventures spread through
the Asian region. It has been declared by Euro money that this is the only
truly multinational group of India. At present, the group has more than 50
manufacturing units, producing a diverse range of products, financial service,
trading and computer consultancy. It is also expanding its activities in the field
of telecom, oil refinery, power generation, copper smelter etc.
Globally the Aditya Birla Group is:
A metals powerhouse, among the world’s most cost-efficient Aluminium
and copper producers. Hindalco-Novelist from its fold is a Fortune 500
company. It is the
largest Aluminium rolling company. It is one of the three biggest producers of
primary Aluminium in Asia, with the largest single location copper smelter.
•No.1 in viscose staple fibre
13 | P a g e
14. •The fourth largest producer of insulators
•The fourth largest producer of carbon black
The 11th largest cement producer globally
Among the world’s top 15 BPO companies and among India’s top three
Among the best energy efficient fertilizer plants In India
•A premier branded garments player
•The second largest player in viscose filament yarn
•The second largest in the chlor-alkali sector
•Among the top five mobile telephony companies
A leading player in life insurance and asset management
•Among the top three supermarket chains in the retail business
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture
where success does not come in the way of the need to keep learning
afresh, to keep experimenting
Beyond business – “Reaching Out”
A value based, caring corporate citizen the Aditya Birla Group inherently
believes in the trusteeship concept of management. A part of the group’s
profits is ploughed back in to meaningful welfare driven initiative that make
a qualitative difference to the lives of marginalized people. These activities
14 | P a g e
15. are carried out under the aegis of the Aditya Birla Center for community
initiatives and Rural Development spearheaded by Mrs. Rajashree Birla.
Beyond business — the Aditya Birla Group is:
• •Working in 3,700 villages
• •Reaching out to seven million people annually through the Aditya Birla
Centre for
Community Initiatives and Rural Development, spearheaded by Mrs.
Rajashree Birla
• •Focusing on: health care, education, sustainable livelihood, infrastructure
and espousing social causes
• •Running 41 schools and 18 hospitals
Transcending the conventional barriers of business to send out a message
that “They care”.
GROUP PHILOSOPHY
RESTS ON FOUR PILLARS:
CUSTOMERIZE
PEOPLE- IZE
STRATEGIZE
INSTITUTIONALIZE
15 | P a g e
16. GROUP VALUES
OUR VALUES ARE NON NEGOTIABLE, THEY ARE NEVER TO BE
JETTISONED, FOR US OUR VALUES ARE OUR WELLSPRING. THESE ARE:
Integrity
COMMITMENT
PASSION
SEAMLESSNESS
SPEED
GROUP VISSION
“TO BECOME A PREMIUM CONGLOMERATE WITH CLEAR BUSSINESS
FOCUS AT EACH CORPORATE LEVEL”
GROUP MISSION
“TO DELIVER VALUE FOR OUR CUSTOMERS, SHAREHOLDERS,
EMPLOYEES AND SOCIETY AT LARGE”
Aditya Birla Management Corporation Ltd. (ABMCL)
In a strategic move to institutionalize its management process, the Aditya
Birla Group has set up Aditya Birla Management Corporation Limited
(ABMCL) It is headed by Board of Directors with Mr. Kumar Mangalam Birla
as a Chairman.
16 | P a g e
17. It is a Group’s apex decision making body and provides strategic direction to
group companies.
The Group has following Achievement to its credit
The world’s no.1 in viscose staple fiber.
The third largest producer of insulator.
The world’s third largest producer of carbon black.
The world’s eighth largest producer of cement and the largest in a
single
geography.
Asia’s largest integrated Aluminium producer.
A globally competitive, fast growing copper producer.
India’s premier branded garments player.
Among India’s most energy efficient private sector fertilizer plants.
India’s second largest producer of viscose filament yarn.
India’s second largest private sector insurance company.
Among the world’s top 15 and India’s top three BPO companies.
The group has also made successful forays into it and IT sector and
has a significant presence in the Financial Sector and
telecommunications sectors in tie-ups with giants like Sun Life
insurance (Canada) and At &T (USA) respectively.
HINDALCO INDUSTRY LTD
Hindalco Industries Limited, the metals flagship company of the Aditya
Birla Group, is an industry leader in Aluminium and copper. A metals
powerhouse with a consolidated turnover of Rs.600, 128 million (US$ 15
17 | P a g e
18. billion), Hindalco is the world’s largest Aluminium rolling company and one
of the biggest producers of primary Aluminium in Asia. Its copper smelter is
the world’s largest custom smelter at a single location.
Established in 1958, Hindalco commissioned its Aluminium facility at
Renusagar in Eastern U.P. in 1962. Later acquisitions and mergers, with
Indal, Birla Copper and the Nifty and Mt.Gordon copper mines in Australia,
strengthened the company’s position in value-added alumina, Aluminium
and copper products, with vertical integration through access to captive
copper concentrates. In 2007, the acquisition of Novelistt Inc. a world leader
in Aluminium rolling and can recycling marked a significant milestone in the
history of the Aluminium industry in India. With Novelist under its fold
Hindalco ranks among the global top five Aluminium majors, as an integrated
producer with low cost alumina and Aluminium facilities combined with high-
end rolling capabilities and a global footprint in 12 countries outside India. Its
combined turnover of US$ 15 billion, places it in the Fortune 500 league
HINDALCO INDUSTRIES LIMITED
RENUSAGAR: SONEBHADRA; U.P.
18 | P a g e
19. COMPANY PROFILE
Hindalco Industries Ltd. is the Flagship Company of Aditya Birla Group.
The Aditya Birla Group is India’s second largest business house with a
turnover of Rs. 280 billion, and Assets are valued at over Rs. 265 billion.
The group has nearly 72000 employees in 18 countries.
Hindalco Industries Limited was incorporated in 1958 and commercial
production commenced in 1962. The Company was set up in technical
collaboration with Kaiser Aluminium & Chemicals Corporation, USA.
Hindalco is today one of India’s premium corporate, contributing
significantly to economic growth, generating employment and setting high
standards in respect of fulfilling of obligations to all stakeholders. The
Company prizes its ‘Human Capital’, and employees have been
reciprocating by turning in a sterling performance for the Company, year
after year. Hindalco has an enviable record of harmonious Industrial
Relations, with not a single man day lost since the past 30 years on
account of industrial strife. Company’s principal products comprise of
Aluminium Ingots, Aluminium Billets, Aluminium Wire Rods, Sheet
Products, Extrusions, Aluminium Foils and Aluminium Alloy Wheels. The
Company’s by products include Gallium Metal, Vanadium Sludge and
19 | P a g e
20. Aluminium Dross.
Hindalco Industries Limited, one of the major producer of Aluminium metal
and its semis in the country as well as a premier flagship company of A.V. Birla
group in the biggest industrial enterprise of Uttar Pradesh. It is a public
limited company in the private sector having about 39000 shareholders. It is
the largest Integrated Aluminium plant in India with all its production
facilities viz.
Alumina, Aluminium & Fabrication located at Renukoot near Rihand Dam in
Sonebhadra (Uttar Pradesh). Hindalco’s power division is situated at
Renusagar about 35 km from Renukoot. In September 1959, an industrial
license was granted by the Government for setting up an integrated
Aluminium plant at Renusagar, with an initial installed capacity of 20000 MT.
The construction work was completed with 18 months, a record for a major
job of this kind.
The dream of the great visionary Syt. G.D. Birla to locate an Aluminium plant
near Rihand power house came true. The late Prime Minister Pt. Jawaharlal
Nehru, formally inaugurated the plant in January 1963. From the modest
beginning in 1962, Hindalco has now become an industrial giant with capacity
to produce 242000 MT of Aluminium per annum.
Renusagar a fast growing & thriving industrial township, which is now
humming with activities & providing all the basic amenities of modern life to
the inhabitants.
20 | P a g e
21. From being one of the most backward areas of U.P., it has now carved a place
for itself on the industrial map of India as well as World. Lying in the foothills
of the Vindhya range, Renusagar is about 198 km from Varanasi and 184 km
from Mirzapur.
The expansion programme of plant from the initial capacity of 242000 MT
took place in the stages during the last thirty five years. Apart from catering to
the internal demand of Aluminium in the country, Hindalco is also
exporting Aluminium semis to various countries including U.S.A., Germany,
Japan etc.
Renusagar power, a division of Hindalco is the major supplier of power to
Hindalco. The power generating capacity of Renusagar power division has
increased to 575 MW since last year. Now Renusagar is able to meet the full
requirement of Hindalco.
Hindalco is an ISO-9002 company since 1994. Recently in July 1998 it has
also received the certification of ISO-14001 for environment maintenance
system. The company has been able to continuously enhance the quality
and range of the product and provide customer satisfaction.
In 1962 when production started, the company had on its roll about 900
staff and workmen and the present strength of employees is about 14000.
The office and works site is located at Renukoot and there are zonal offices
21 | P a g e
22. at Bangalore, Bombay, Delhi and Calcutta.
The company is managed by a Board of Director and other Senior
Executives.
Management
Syt. Kumar Mangalam Birla - Chairman
Syt. Debu Bhatacharya - Managing Director
Hindalco today
Hindalco ranks as one of the largest Aluminium producer in India and
contributes about 35% of the total Aluminium production of the country. The
company’s fully integrated Aluminium operations consist of the mining of
Bauxite, conversion of Bauxite into Alumina, production of primary
Aluminium
from Alumina by electrolysis and production of properzi redraw rods, rolled
products and extrusions.
Capacities
Present
Power 575 MW
Alumina 4,50,000 MT p.a.
Aluminium 2,42,000 MT p.a.
22 | P a g e
23. Rolled products 80,000 MT p.a.
Extrusions 15,000 MT p.a.
Wire rods 50,000 MT p.a.
Foils 5,000 MT p.a.
Co-generation 37 MW
Joint venture companies of Hindalco
1. Indo-Gulf Fertilisers & Chemical Corporation Limited
2. Bihar Caustic & Chemicals Limited
3. Tanfac Industries Limited
4. Mangalore Refinery & Petrochemicals Limited (MRPL)
5. Birla AT & T Communications Limited
6. Bina Power Supply Company Limited
7. Birla Global Finance Limited (BGFL)
8. Birla Capital International AMC Limited (BCIAMC)
9. Rajshree Polyfil Limited
To strengthen our position as a premium Aluminium company, sustaining
domestic leadership and global competitiveness through innovation,
quality and value added growth.
23 | P a g e
24. HINDALCO’S MISSION
To relentlessly pursue the creation of superior shareholder value by
exceeding customer expectations profitably, unleashing employee potential
and being a responsible corporate citizen adhering to our values.
24 | P a g e
25. HINDALCO’S STRATEGY
EFFICIENCY FOCUS
: To be one of the lowest cost producers globally.
EFFECTIVENESS FOCUS
: To continue to remain the market leader
domestically.
GROWTH FOCUS
: To purchase value adding growth opportunities in
Aluminium.
25 | P a g e
26. HUMAN RESOURCE (HR)
Human Resources play a vital role in shaping a healthy and growing
organization. Without doubt, human resources development has hence
been aptly described as the “soul” of a vibrant and dynamic organization.
The increasing complexity and problems of managing human resources
places heavy demands on ensuring equal emphasis on all the sub-systems
which play a crucial part in ensuring holistic development of the human
resources. Human Resources Management has gained immense
importance in today’s environment of global competition to meet future
challenges in the new millennium. In these days of rapid advancement in
Information Technology and Techno-Commercial aspects of business, it
would be eventually the “Man behind the Machine” who would determine
which way / direction an organization goes.
Human Resources Development systems have an important task in
achieving the required dynamics to enable any organization to perform at
its peak. The right recruitment and selection to start with, progressive
training and development thereafter, and, a fair performance appraisal
system gives an impetus to professional and proficient management of HR.
There is yet another dimension of HRM which is directly related to, and falls
26 | P a g e
27. within the ambit of organizational development that deserves major
attention because the “character & culture” of an organization is formed by
HR of the organization and that will finally decide the future of the
organization.
After said all this, it is imperative to consolidate on the available human
potential and check HR wastages to ensure organizational effectiveness as
it has become a key to sustain excellence and achieve competitive
advantage over others. This project study on “LEADERSHIP AND ITS EFFECTS
ON EMPLOYEE PERFORMANCE” thus
assumes an even greater relevance in the existing changing business
scenario especially so when there is a paradigm shift in the Organizations’
approach towards Human Resources Management in outlining specific
roles. Without defining HR vision, roles & objectives, an organization would
jeopardize its growth and survival therefore it is all the more necessary to
indigenize the HR sub-systems for one’s own benefit after a close
microscopic scrutiny.
27 | P a g e
28. HINDALCO HR VISION, MISSION & OBJECTIVES
HR VISION
To provide an enabling environment where employee competencies are
nurtured and harnessed towards sustainable business growth and
leadership.
HR MISSION
To proactively assess and provide for the HR needs of the business and
customer for the attainment of organizational goals.
HR OBJECTIVES
•To collaborate with and support internal customer of HR in achieving
business
objectives through HR services viz. effective manpower planning , ensuring
harmonious industrial relation etc.
•To review and redesign the structure of the organisation with the clarity of
roles,
responsibilities and accountability for overall organizational effectiveness and
speeding response to emerging business challenges
28 | P a g e
29. To develop knowledge and skills of the employees and groom leaders with
functional and business competencies to meet future demands of the
organizational (viz. flexibility and change management).
•To benchmark best HR practices in order to enhance human resource
effectiveness.
•To enhance employee productivity through rationalization of jobs and
manpower optimization.
•To promote employee involvement in decision-making, team working,
creativity and empowerment.
•To institutionalize transparency by framing, updating and communicating
systems
and processes.
•To maintain good liaison with government/ external agencies in order to
better
serve the organizational cause.
•To provide a safe and healthy work environment and continuously
benchmark and
upgrade the standards of safety and hygiene.
•To work towards improving the quality of work life of employees and the
lives of
29 | P a g e
31. HINDALCO INDUSTRIES LIMITED
Organization Chart of HRD Division
V.P. (HR)
Medical Head, HRD Head E.R Head Security Head Safety School
(principles)
Services directly or indirectly end to Customer Satisfaction. Satisfaction
is a emotional response to his or her prior experience with and
expectations with the benefits provided by the services of service
department of the organisation. It is believed that satisfaction will
influence future. Customers can experience satisfaction with;
•Organisation’s services, overall
•Specific performance aspects of organisation’s services
•Organisation’s conduct of transaction (delivery of services, repair visits,
complaint handling, etc...)
•The kind of relations between employees and the organisation.
31 | P a g e
32. Nature and Definition of Leadership
Leadership has been around for as long as there have been people to lead. The
history of the world abounds with great leaders, from Moses and David in the
Old Testament to Napoleon in the 1700s and Nelson Mandela and Martin
Luther King in the 1900s (Bass, 1997). Leadership literature is characterised
by an endless proliferation of terms and definitions to deal with the construct,
coupled with many extraneous connotations that create ambiguity of meaning
and an array of imprecise descriptions (Bass, 1990; Bennis, 1959, in Yukl,
1998). There are numerous ways of looking at leadership and many
interpretations of its meaning (Mullins, 1999). Generally, leaders
are people who are able to turn their beliefs and visions into reality, through
the21 control and influence they exercise over other people (Bennis and
Nanus, 1985). Our understanding of leadership has changed over the years,
but the basic constructs have remained the same. Hellriegel, et al. (2004:286)
define leadership as being “the ability to influence others to act toward the
attainment of a goal”, while Mullins (1999:253) adds that it is “a relationship
through which one person influences the behaviour of others”. Having
extensively investigated leadership in South Africa in 1983, Schilbach (in
Gerber, Nel and Van Dyk, 1996:343) defines leadership as “an interpersonal
process through which a leader directs the activities of individuals or
groups towards the purposeful pursuance of given objectives within a
particular situation by means of communication”. Inherent in these
perspectives is the need to be skilled in varying degrees of emotional
intelligence, so as to adaptively manage environmental demands (Stuart and
Pauquet, 2001). A brilliant business leader must comprehend the importance
32 | P a g e
33. of employees in achieving the ultimate goals of the organization, and
motivating these employees is of paramount importance in achieving these
goals (Wall, et al., 1992).
What Is Employee Development?
Employee development is a joint, on-going effort on the part of an employee
and the organization for which he or she works to upgrade the employee's
knowledge, skills, and abilities. Successful employee development requires a
balance between an individual's career needs and goals and the organization's
need to get work done.
Employee development programs make positive contributions to
organizational performance. A more highly-skilled workforce can accomplish
more and a supervisor's group can accomplish more as employees gain in
experience and knowledge.
Why Should Employee Skills and Abilities Be Developed?
A review of research literature in 2003 supported the commonly held belief
that employee development programs make positive contributions to
organizational performance. A more highly skilled workforce can accomplish
more as the individuals gain in experience and knowledge.
In addition, retaining an employee saves the organization a great deal of
money. One method of retention is to provide opportunities to develop new
skills. In research conducted to assess what retained employees, development
was one of the top three retention items.
33 | P a g e
34. Stages of Employee Development in Hindalco
Everyone goes through several stages of development as they move from
being a career "beginner" to a full expert in their field. Each stage has specific
needs and tasks to consider. As you work with employees on development, it
can be helpful to look at their stage in order to find the best kind of activities
for them. Keep in mind that the stages do not relate to age. If an employee has
recently completed a career change, he or she is probably in the "exploration
and trial" stage. If, on the other hand, he or she has burned out on his or her
career, he or she might be in "disengagement" even though chronologically he
or she might be in his or her early thirties in age.
Stages in a Job or Career
Stage Characteristics Needs Tasks
Work with Learn to ask for Develop self-
regular help image in the
Exploration and guidance job
Trial Learn to take
Work is routine, initiative Becomes a " "
detailed
Establishment Has own area of Build a Accept
and responsibility reputation organizational
34 | P a g e
35. Stage Characteristics Needs Tasks
Advancement realities
Work Learn to work
independently independently Learn how to
cope
Independence Produce
and significant Deal with
specialization results change or lack
of it
Learn how to
get ahead
Responsible for Feel Develop
guiding others disappointment others through
Mid Career: if goals are not knowledge
Growth, Use great achieved
Maintenance, breadth of Serve as
Decline technical skill to Learn to help mentor
support others
organization
Use experience Prepare Learn to let go
to provide psychologically
Disengagement
direction for the for retirement Achieve
organization
35 | P a g e
36. Stage Characteristics Needs Tasks
Learn to accept balance in life
Influence a different role
decisions
The Role of the Supervisor in Employee Development in
Hindalco
The supervisor has several roles to play, but providing information and
support to facilitate the employee's development is what is most important.
There are a few basic roles for a supervisor in developing employees. They
include:
Coaching employees to help them determine what they need for
development
Providing both positive and corrective feedback
Offering organizational insight, information, and advice
Guiding the planning through goal setting and checking back over time
Allotting time and money for development experiences
Ensuring opportunities for applications of new learning
36 | P a g e
37. It is very helpful for an employee to get an honest assessment of their work, as
well as access to others who may be able to provide information or coach the
employee.
The successful supervisor will also respect every employee's learning curve. It
takes time for anyone to learn new skills and be able to apply them well; this
does not happen overnight. Building this development time into the
application of a new skill set will make the employee more successful.
Leadership Theories - 8 Major Leadership Theories
37 | P a g e
38. In attempting to understand the nature of leadership and its different aspects,
it is necessary to discuss the different theories of leadership that have
developed over time, as various schools of thought have brought their
differing ideas and knowledge to this discipline. There are various theories of
leadership, which attempt to explain the factors involved in the emergence of
leadership, the nature of leadership, or the consequences of leadership (Bass,
1990). These theories attempted to identify various leadership styles, which is
the general manner in which leadership is practiced (Barling, Fullagar and
Bluen, 1983). The various evolutionary approaches to leadership are
categorized in Figure 3.1, as those that are traditional in nature (trait,
behavioral and contingency approaches) and those that centre on new
approaches to leadership, transactional and transformational leadership.
Interest in leadership increased during the early part of the twentieth century.
Early leadership theories focused on what qualities distinguished between
leaders and followers, while subsequent theories looked at other variables
such as situational factors and skill level. While many different leadership
theories have emerged, most can be classified as one of eight major types:
1. “Great Man” Theories:
Great Man theories assume that the capacity for leadership is inherent – that
great leaders are born, not made. These theories often portray great leaders
as heroic, mythic, and destined to rise to leadership when needed. The term
“Great Man” was used because, at the time, leadership was thought of
primarily as a male quality, especially in terms of military leadership.
38 | P a g e
39. 2. Trait Theories:
Similar in some ways to “Great Man” theories, trait theory assumes that
people inherit certain qualities and traits that make them better suited to
leadership. Trait theories often identify particular personality or behavioral
characteristics shared by leaders. But if particular traits are key features of
leadership, how do we explain people who possess those qualities but are not
leaders? This question is one of the difficulties in using trait theories to
explain leadership.
3. Contingency Theories:
Contingency theories of leadership focus on particular variables related to the
environment that might determine which particular style of leadership is best
suited for the situation. According to this theory, no leadership style is best in
all situations. Success depends upon a number of variables, including the
leadership style, qualities of the followers, and aspects of the situation.
4. Situational Theories:
Situational theories propose that leaders choose the best course of action
based upon situational variable. Different styles of leadership may be more
appropriate for certain types of decision-making.
5. Behavioral Theories:
Behavioral theories of leadership are based upon the belief that great leaders
are made, not born. Rooted in behaviorism, this leadership theory focuses on
39 | P a g e
40. the actions of leaders, not on mental qualities or internal states. According to
this theory, people can learn to become leaders through teaching and
observation.
6. Participative Theories:
Participative leadership theories suggest that the ideal leadership style is one
that takes the input of others into account. These leaders encourage
participation and contributions from group members and help group
members feel more relevant and committed to the decision-making process.
In participative theories, however, the leader retains the right to allow the
input of others.
7. Management Theories:
Management theories (also known as “Transactional theories”) focus on the
role of supervision, organization, and group performance. These theories base
leadership on a system of reward and punishment. Managerial theories are
often used in business; when employees are successful, they are rewarded;
when they fail, they are reprimanded or punished.
8. Relationship Theories:
Relationship theories (also known as “Transformational theories”) focus upon
the connections formed between leaders and followers. These leaders
motivate and inspire people by helping group members see the importance
and higher good of the task. Transformational leaders are focused on the
40 | P a g e
41. performance of group members, but also want each person to fulfill his or her
potential. These leaders often have high ethical and moral standards.
Research Design/ Methodology
Research Design
The situation presented below was developed based on actual situations
existing manufacturing company. Information for developing the plans was
collected through visit & personal interviews. The discussion questions at the
end were developed to serve as pointers for sensitizing the concerned
employees with various issued involved. The study bring diversified of
problems. For each discussion questions serve as tool.
Research Methodology
41 | P a g e
42. The present research is based mainly on primary data. This research is both
Descriptive and exploratory in nature. The primary data has been collected by
the survey method by using and through personal interviews. The data is
both in the qualitative and quantitative forms. The study has been undertaken
in and around renusagar power division.
Sampling methods
During the research non probabilistic sampling methods was used this
sampling procedure did not provide for sampling procedure did not provide
for estimating the probability each plan in population being included in the
sample. Random sampling method is adopted.
Questionnaire Design
The questionnaire was confined to only the necessary questions. The scale of
measurement that was to be used was well scored out. Pre-testing of the
questionnaire was done and necessary changes as suggested by the
respondents, have been incorporated. Close ended questions were asked by
the employees.
42 | P a g e
43. Research Tools
Area Sonebhadra
Sample type Random
Location Renusagar power Division
Sample size 30
Data type Interview
Variables
a) Dependent Leadership
Independent performance of employee
Test Z- test
Test applied Two tail test
Level of significance 5%
Aptitude test Likert scale
43 | P a g e
44. Review of Literature
Gordon Gates
Washington State University
The purpose of this article is to review literature on leadership and emotion to
expose theory and questions on the association between leadership and
emotion. Burns' (1978) implicit framework of leadership and emotion is
revealed. Questions about leadership and emotion by scholars in the
sociological tradition are presented. A research agenda is forwarded. Such a
research agenda will provide valuable insights on leadership-a relationship
that enhances our feelings of predictability and motivates us to action.
Journal of Leadership & Organizational Studies, Vol. 2, No. 4, 98-110 (1995)
DOI: 10.1177/107179199500200408
James H. Dulebohn, Janice C. Molloy, Shaun M. Pichler and Brian Murray
Many have noted the lack of human resource management research on
employee benefits, which is surprising because employer-sponsored benefits
are a primary concern of executives and employees alike. Moreover, of special
44 | P a g e
45. interest to scholars, benefits provide a unique opportunity to examine
fundamental theoretical and empirical questions about employee behavior
and contemporary employment relationships. This paper provides a
foundation for such research by providing an overview of the context from
which U.S. employer-provided benefit programs evolved and the
contemporary state of benefits research in human resource management.
Propositions related to primary employee benefit research are provided.
45 | P a g e
46. Analysis
Hypothesis Testing
Hypothesis testing begins by making an assumption about the population
parameter. Then we gather sample data and determined the sample statistic.
To test the validity if our hypothesis the difference between the hypothesized
value and the actual value of the sample statistic will be determined. If the
difference between the hypothesized population is large then we
automatically reject our hypothesis. If it is small, we accept it.
Null and Alternative Hypothesis : There are two types of hypothesis:
Null Hypothesis
Alternative Hypothesis
Level of significance : when we choose 5% level of significance in a test
procedure, there are about 5 cases in 100 that we would reject the hypothesis
when it should be accepted, that is, we are about 95%confident that we have
made the right decision.
If sample size is 30 or more then we use z test when the mean and standard
deviation is known.
46 | P a g e
47. The set of z scores outside the range – 1.96 and 1.96, constitute the critical
region or region of rejection of the hypothesis or the region of significance
Two – tailed Test : If the test is two- tailed,H1: µ≠µ0 then the test is called
two-tailed test and in such a case the critical region lies in both the right and
left tails of the sampling distribution of the test statistic, with total area equal
to level of significance.
The critical value for two tailed test with 5% level of significance is = ± 1.96.
Hypothesis proposed for the study
Null hypothesis (Ho) - “There is no significant impact Return from
plan and impact of customer”
Alternative hypothesis (Ha) - “There is no significant impact Return
from plan and impact of customer”
Testing of hypothesis
SAMPLE MEAN (µ) = 16.6
POPULATION MEAN = µO = 3.6
STANDARD DEVIATION (σ) = 2.8
47 | P a g e
48. CALCULATION OF Z TEST
Z TEST = SAMPLE MEAN (µ) – POPULATION MEAN (µO) / STANDARD
DEVIATION
Z TEST = SAMPLE MEAN (µ) – POPULATION MEAN (µO) / STANDARD
DEVIATION
16.6 – 3.6 / 2.8
13 / 2.8
4.64
As the calculated value of Z test is 4.64 which fall outside the critical region of
acceptance.
As, At 5% significance level for a Two Tailed Test the Z statistic is ± 1.96
As the calculated Z value does not lie within the Acceptance region hence the
Null Hypothesis is rejected and alternative hypothesis is accepted.
Therefore, we can say, “There is no significant impact Return from plan and
impact of customer”
48 | P a g e
51. Calculation of standard deviation
Total of score Sample mean Deviation (D) D2
19 16.6 2.4 5.76
18 16.6 1.4 1.96
18 16.6 1.4 1.96
16 16.6 -0.6 0.36
16 16.6 -0.6 0.36
20 16.6 3.4 11.56
19 16.6 2.4 5.76
21 16.6 4.4 19.36
16 16.6 -0.6 0.36
17 16.6 0.4 0.16
18 16.6 1.4 1.96
18 16.6 1.4 1.96
18 16.6 1.4 1.96
21 16.6 4.4 19.36
19 16.6 2.4 5.76
16 16.6 -0.6 0.36
51 | P a g e
52. 10 16.6 -6.6 43.56
11 16.6 -5.6 31.36
13 16.6 -3.6 12.96
16 16.6 -0.6 0.36
18 16.6 1.4 1.96
16 16.6 -0.6 0.36
19 16.6 2.4 5.76
14 16.6 -2.6 6.76
16 16.6 -0.6 0.36
14 16.6 -2.6 6.76
18 16.6 1.4 1.96
17 16.6 0.4 0.16
10 16.6 -6.6 43.56
16 16.6 -0.6 0.36
Total sum of deviation D2 = 235.
52 | P a g e
53. CALCULATION OF SAMPLE MEANS (µ)
CALCULATION OF SAMPLE MEAN = TOTAL OF THE SCORE / SAMPLE SIZE
SAMPLE MEAN = 498/30
SAMPLE MEAN (µ) = 16.6
µ= 16.6
CALCULATION OF POPULATION MEAN (µO)
POPULATION MEAN = 4+4+2+4+4 / 5 (ACCORDING TO THE MODE )
µO = 18/5
µO = 3.6
CALCULATION OF STANDARD DEVIATION (σ)
STANDARD DEVIATION (σ) = √ D2 / N
WHERE D2 = DEVIATION SQUARE
N = SAMPLE SIZE
STANDARD DEVIATION (σ) = √ D2 / N
STANDARD DEVIATION (σ) = √ 235.2 / 30
√ 7.8
2.8
53 | P a g e
54. STANDARD DEVIATION (σ) = 2.8
CALCULATION OF Z TEST
Z TEST = SAMPLE MEAN (µ) – POPULATION MEAN (µO) / STANDARD
DEVIATION
Z TEST = SAMPLE MEAN (µ) – POPULATION MEAN (µO) / STANDARD
DEVIATION
16.6 – 3.6 / 2.8
13 / 2.8
4.64
54 | P a g e
55. Industry analysis
The global Aluminium market
1 Robust flows into commodities have superseded traditional catalysts
One of the most unique factors of the extended cycle in commodities has been
the dramatic expansion of the flow of investment funds in metals futures.
Following the surge of financial inflows into commodity markets in the past
two years, the analysis of demand/supply and inventory trends has
diminished in importance as an input into expected price trends. Heavy fund
activity has supplanted physical industry purchases and sales as the key
driver of price. Our global commodity analyst, Jon Bergtheil, believes that
“price trends are now based on the interpretation of demand and supply
rather than the physical ebb and flow of metal surplus and shortfall in the
market
1. Aluminium to move into surplus
The immediate demand drivers for Aluminium are, at the moment,
moderating because of trends in global order books, global IP, and in specific
metal-intensive sectors, such as the rapidly weakening US housing market.
Therefore, we expect the near-term demand trends to act as a drag on the
Aluminium price.
The Aluminium industry is still in shortfall at the moment but the expanded
alumina capacity and strong growth in Aluminium smelter capacity in China
55 | P a g e
56. (along with sharply increasing semi-fabricated exports) should see a surplus
beginning to build up globally from 4Q06. We expect the industry to move into
its first annual surplus in four years during 2007, and to remain in surplus
until the end of the decade, albeit with fairly moderate surpluses in relation to
past experience. While we expect inventory levels to rise, JPMorgan’s forecast
inventory levels do not reach the levels above 8 weeks, which occurred at the
start of the current bull market, and which kept the Aluminium price pinned
below US$1,400/tonne for two years. Conversely, the levels to which we
expect inventory to rise were more typically associated with price levels of
US$1,700-1,800/t in the past than with recent levels above US$3,200/t. Again,
much depends on the interpretation and mood as we progress into easier
conditions as demand levels moderate globally.
2. Aluminium demand-supply forecast
‘1000 tonnes
2004 2005 2006E 2007E 2008E 2009E
Aluminium production
29,961 31,997 33,431 35,730 37,338 38,813
Consumption
30,377 32,092 33,623 35,287 37,110 38,920 Market balance -416 -95 -192
443 228 -107
Inventory (weeks)
56 | P a g e
57. 6.59 6.36 6.13 6.71 7.02 6.13 Price forecast ($/t) 1729 1895 2521 2075 1850
1900 Price forecast (c/lb) 78.4 85.9 114.3 94.1 83.9 86.2
For details please see industry report on Aluminium,
Stealing market share from copper
, dated September 25, 2006,
57 | P a g e
58. Finding
The total number of people surveyed were 30 among them 7
respondents strongly agrees, 16 respondents agree,
The total number of people surveyed were 30 among them 6
respondents strongly agrees, 15 respondents agree,
The total number of people surveyed were 30 among them 21
respondents disagrees from the fact that sudden increase
58 | P a g e
59. Outcomes
The present study manipulated transformational and transactional leadership
styles to examine their influence on individuals' performance on a stressful
task, and on perceived social support, self-efficacy beliefs, emotions. In
addition, this study examined whether these variables mediated the
relationship between leadership style and performance. The transformational
leadership condition was associated with enhanced task performance, higher
social support perceptions, greater efficacy beliefs, lower negative affect, and
lower threat appraisals compared to the transactional conditions. Causal
modeling revealed that leadership style had a direct, rather than indirect,
effect on task performance. The present research extends leadership research
by providing an experimental evaluation of the costs/benefits of
transformational and transactional leadership underl task conditions. Some of
the results parallel those from correlation field studies, thus corroborating
transformational leadership theory while other results diverge from theory,
but present opportunities for future research.
59 | P a g e
60. References
WWW.GOOGLE .COM
WWW.SCRIBD.COM
Baffour, G. G. (1999), The effects of employee participation and work
design on firm performance: A managerial perspective. Management
Research News, Volume 22, No. 6.
Bartram, T. and G. Casimir (2007), The relationship between leadership and
follower in-role performance and satisfaction with the leader: The
mediating effects of empowerment and trust in the leader. Leadership and
Organization Development Journal, Volume 28, No. 1, pp. 4-19.
Champathes, M. R. (2006), Coaching for performance improvement: The
coach model. Development and Learning in Organizations, Volume 20,
No. 2, pp.17-18.
Chen, F. and D. Tjosvold (2006), Participative leadership by American and
Chinese managers in China: The role of leadership. Journal of
Management Studies, Volume 43, Issue 8, pp. 1725-1752.
Colvin, G. (2006), On the hot seat. Fortune, Volume 154, Issue 11, pp. 41-
48.
Kirkpatrick, D. L. (2006), Improving Employee Performance Through
Appraisal and Coaching. American Management Association
Publication.
Klagge, J. (1997), Leadership development needs of today’s organizational
managers. Leadership and Organization Development Journal.
ABBAS and YAQOOBKotter, J. P. (2001), What leaders really do. Harvard
Business Review,
60 | P a g e
61. Volume 79, Issue 11, pp. 85-96.
Ladd, B. S. and V. Marshall (2004), Participation in decision making: A
matter of context? The Leadership and Organizational Development
Journal, Volume 25, No. 8, pp. 646-662.
Lam, S. S. K., X. P. Chen and J. Schaubroeck (2002), Participative decision
making and employee performance in different cultures: The moderating
61 | P a g e
62. Questionnaire
This survey is conducted for the purpose of finding out the feasibility of the
consumer regarding consumer perception on Leadership and its effects on
employee performance.
Name ……………………………………………………………………..
Occupation ……………………………………………………………………..
Designation ………………………………………………………………………
Questions Agree Strongly Disagree Strongly Neutral
Agree Disagree
1.Do you think that
leadership is the best
tool for improving the
performance of an
employee?
2.According to you
leadership is the best
indicator for an
individual motivation
of an employee?
3.Does Leadership is
an art to influence
62 | P a g e
63. human behavior?
4.Do you think that
without leadership
employees
performance cannot
growth?
5.Do you think that
without leadership any
organizations growth
is possible?
63 | P a g e
64. Conclusion
In many cases strong leadership has resulted in dramatic effects on work
engagement, team performance and innovation. However, the mt also shows
that poor leadership has negative effects on employee morale, project success
and working relationships.
The study, which involved a poll of 24 human resources (HR) professionals
across Hindalco industries ltd., confirms that leadership is seen as an
important area of organizational functioning and development. The majority
(63.2%) see leaders as having a lot of influence over their organizations’
success, with only 2.5% reporting that leaders have very little influence. The
most common effects of good leadership are increased motivation (85.5%),
improved working relationships (85.1%), higher team performance (80.7%),
better solutions to problems (68.9%), and major innovations (41.6%).
Leadership does have its downside, however. When not properly used,
leadership can have negative effects. HR professionals have witnessed good
people quitting and a lack of morale (91.7%), employees’ skills not being
utilized (87.2%), feuding staff members (68.3%), and failed projects (60%).
Three-quarters (76%) have also witnessed a disconnection between the
organization’s goals and its employees’ work.
"These figures should be a strong alert to organizations that poor leadership
could be causing them major problems,” "Our results show that leadership is
influential, and organizations with effective leadership in place are realizing a
wide range of benefits including increased financial performance and
improved work relationships."
64 | P a g e
65. When asked to rate the importance of various leadership skills to success,
90% of respondents reported that communication is critically important,
followed by dealing with change (52.6%), managing people (48.2%), setting
goals (37.5%), solving problems (30.3%), and project management (12%).
The study also uncovered a serious gap between the ratings of importance for
these skills and leaders’ current level of effectiveness. Only 27.8% of
respondents rated leaders’ communication skills as effective, even though
nine out of 10 see communication as a critical skill. Twenty-four per cent of
respondents indicated that the leaders they know are not effective when it
comes to dealing with change. Respondents cited a number of obstacles that
get in the way of today’s leaders developing their skills. These include leaders
not seeing the need for improvement (67.5%), not having enough time
(63.1%), lacking support from superiors (50.1%), and having inadequate
training budgets (41.6%).
Recommendations for Leaders
Recommendations for leaders to be more effective included talking less and
listening more (81.4%), providing clear expectations (78.1%), having more
informal interaction with staff (75.6%), clearly communicating how the
organization plans to manage change (89.4%), assigning tasks to staff based
on their skills rather than office politics (71.4%), holding people accountable
(67.7%), giving employees more responsibility (64.6%), overcoming
resistance to change (48%), and deferring to people with greater expertise
(63.1%).
“What surprised me from our research was that, even with the understanding
that leadership is key for organizational success, the leaders themselves were
65 | P a g e
66. not actively pursuing their own development—despite the opportunities
available,”
24 HR professionals currently working in HINDALCO INDUSTRIES LTD..
The majority of people see leaders as influential. Yet, six out of 10 employee
also believe that leaders are given too much credit for what their organization
accomplishes. So although leadership is significant, its impact may be
overstated.
It does not matter whether leaders are in business, government, consulting,
education, or not-for-profit; the ranking of skills’ importance does not change.
Three out of four HR professionals have seen feeble management of people
lead to wasted time, duplicated efforts and poor working relationships. More
than half of the survey respondents have observed team members working
against each other as a result of ineffective leadership.
Other problems that come from poor leaders are missed opportunities,
workplace conflict, increased sick days and absences, and qualified people
being shown the door.
10.8% of respondents have seen the inability to lead through change result in
a company going out of business.
Almost three-quarters have seen employees resist change that management
proposes because it was poorly managed.
66 | P a g e
67. 67.3% of respondents said the ideal leader for their organization would be
“someone who is democratic and involved, focuses on working with and
through people.”
Based on a sample of 26,477 leaders (Center for Creative Leadership), 40% of
people in leadership roles today are described as being thorough, orderly and
focused on organizational stability and consolidating systems. Thirty-nine per
cent of leaders say their style is being pragmatic and analytical, and focusing
on the development of long-range, comprehensive plans. Only 12% of today’s
leaders have a primary style that is democratic and involved.
67 | P a g e
