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

1 | Page

IV - Sem
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)
2 | Page

8NBAH015

TABLE OF CONTENT

I.
II.
III.
IV.
V.

1. An Overview of Research
2. Introduction
Group Philosophy
Rest on pillars
Group value
Group vision
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
11. Analysis
12. Findings
13. Outcomes
14. References
15. Questionnaire
16. Conclusion

3 | Page

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.

4 | Page

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.

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
5 | Page

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.

INTRODUCTION
Employee performance is an important building block of an
organization and factors which lay the foundation for high
6 | Page

performance must be analyzed by the organizations. Since every

organization cannot progress by one or two individuals 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 performance,
7 | Page

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 ones
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;
8 | Page

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

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
Leadership

objectives

requirement

(Hamilton
in

todays

and

Cynthia,

organizations

in

2005).
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
employees 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.

9 | Page

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 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
10 | P a g e

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 todays 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

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.
11 | P a g e

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 &

organization would put it in danger

objectives, an

its growth and survival

different nationalities. In India, the Group has been adjudged The

Best Employer

in India and among the top 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 groups products and services, offer distinctive consumer
solutions. Its 66

12 | P a g e

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 1926 -

Purchase of Kesoram Cotton.

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

13 | P a g e

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 worlds most cost-efficient
Aluminium
and copper producers. Hindalco-Novelist from its fold is a Fortune
500 company. It is the

14 | P a g e

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
The fourth largest producer of insulators
The fourth largest producer of carbon black
The 11th largest cement producer globally
Among the worlds top 15 BPO companies and among Indias
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
15 | P a g e

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
groups
profits is ploughed back in to meaningful welfare driven initiative
that make
a qualitative difference to the lives of marginalized people. These
activities
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

16 | P a g e

 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

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
17 | P a g e

TO

BECOME

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.
It is a Groups apex decision making body and provides strategic
direction to group companies.
The Group has following Achievement to its credit
The worlds no.1 in viscose staple fiber.
The third largest producer of insulator.
The worlds third largest producer of carbon black.

18 | P a g e

 The worlds eighth largest producer of cement and the

largest in a single
geography.
Asias largest integrated Aluminium producer.
A globally competitive, fast growing copper producer.
Indias premier branded garments player.
Among Indias most energy efficient private sector

fertilizer plants.
Indias second largest producer of viscose filament yarn.
Indias second largest private sector insurance company.
Among the worlds top 15 and Indias 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
billion), Hindalco is the worlds largest Aluminium rolling company
and one

19 | P a g e

of the biggest producers of primary Aluminium in Asia. Its copper

smelter is
the worlds 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 companys 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
20 | P a g e

HINDALCO INDUSTRIES LIMITED

RENUSAGAR: SONEBHADRA; U.P.

COMPANY PROFILE
Hindalco Industries Ltd. is the Flagship Company of Aditya Birla
Group.
The Aditya Birla Group is Indias 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 Indias premium corporate, contributing

21 | P a g e

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.

Companys

principal

products

comprise of
Aluminium Ingots, Aluminium Billets, Aluminium Wire Rods, Sheet
Products, Extrusions, Aluminium Foils and Aluminium Alloy
Wheels. The
Companys by products include Gallium Metal, Vanadium Sludge
and
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
22 | P a g e

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). Hindalcos 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.
23 | P a g e

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
24 | P a g e

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
at Bangalore, Bombay, Delhi and Calcutta.
The company is managed by a Board of Director and other
Senior Executives.
Management
Syt. Kumar Mangalam Birla
Syt. Debu Bhatacharya

- Chairman
- 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
companys fully integrated Aluminium operations consist of the
mining of

25 | P a g e

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.
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

26 | P a g e

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.

HINDALCOS 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.

27 | P a g e

HINDALCOS STRATEGY
EFFICIENCY FOCUS
: To be one of the lowest cost producers globally.
EFFECTIVENESS FOCUS
: To continue to remain the market leader
domestically.
28 | P a g e

GROWTH FOCUS
: To purchase value adding growth opportunities in
Aluminium.

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.
29 | P a g e

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 todays 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
30 | P a g e

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
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
31 | P a g e

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 ones own benefit after a close
microscopic scrutiny.

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.

32 | P a g e

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

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).
33 | P a g e

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

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
their families.

34 | P a g e

HINDALCO INDUSTRIES LIMITED

Organization Chart of HRD Division

35 | P a g e

V.P. (HR)

Medical Head, HRD

Safety

Services

Head E.R

Head Security

Head

School (principles)

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;
Organisations services, overall
Specific performance aspects of organisations services
Organisations conduct of transaction (delivery of services, repair
visits,
complaint handling, etc...)
The kind of relations between employees and the organisation.

Nature and Definition of Leadership

36 | P a g e

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
37 | P a g e

degrees of emotional intelligence, so as to adaptively manage

environmental demands (Stuart and Pauquet, 2001). A brilliant
business leader must comprehend the importance 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.
38 | P a g e

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.

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
Exploration
39 | P a g e

Characterist
ics
Work

Needs

Tasks

with Learn to ask Develop

Characterist

Stage

ics
regular

Needs
for

Tasks
help self-image in

guidance

the

job

Learn to take

and Trial

Work

is initiative

Becomes a "

routine,

"

detailed
Has own area Build
of

a Accept

reputation

responsibility

organization
al

realities

Learn to work
Establishme
nt

and

Advancemen
t

Work

independentl Learn

how

independentl

to

cope

Produce

Deal

with

y
Independence significant

change

and

lack

results

or

of

it

specialization
Learn

how

to get ahead
Mid

Career: Responsible

Growth,

for

Feel

Develop

guiding disappointme others

Maintenance others

nt if goals are through

, Decline

not achieved knowledge

40 | P a g e

Stage

Characterist
ics
Use

Needs

Tasks

great

breadth

of Learn to help Serve

technical skill others

to

as

mentor

support

organization
Use

Prepare

Learn to let

experience to psychological go
provide
Disengagem
ent

direction

ly

for

for retirement

Achieve

the
organization

balance
Learn
accept

Influence

in

to life
a

different role

decisions

The Role of the Supervisor in Employee

Development in Hindalco

41 | P a g e

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

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.

42 | P a g e

Leadership

Theories

Major

Leadership Theories
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,
43 | P a g e

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.

44 | P a g e

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 decisionmaking.

45 | P a g e

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 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.

46 | P a g e

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 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
47 | P a g e

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
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

48 | P a g e

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.

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
Test applied
Level of significance
Aptitude test
49 | P a g e

Z- test
Two tail test
5%
Likert scale

Review of Literature

Gordon Gates
Washington State University
The purpose of this article is to review literature on leadership and
emotion

to

expose

association between
implicit

theory

leadership

framework of

and
and

leadership

questions

emotion.

and

on

Burns'

emotion

is

the
(1978)

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

50 | P a g e

on

leadership-a

relationship

that enhances

our

feelings

of

predictability and motivates us to action.

Journal of Leadership & Organizational Studies, Vol. 2, No. 4, 98110

(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 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.

51 | P a g e

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
52 | P a g e

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.
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: 0 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.

53 | P a g e

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 () = 16.6
POPULATION MEAN = O = 3.6
STANDARD DEVIATION () = 2.8
CALCULATION OF Z TEST

Z TEST = SAMPLE MEAN () POPULATION MEAN ( O) /

STANDARD DEVIATION

Z TEST = SAMPLE MEAN () POPULATION MEAN ( O) /

STANDARD DEVIATION
16.6 3.6 / 2.8
13 / 2.8
4.64
54 | P a g e

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

Annexure 1
TOTAL
RESPONDENT

55 | P a g e

Q2

Q3

Q4

Q5

OF
SCORE

19

18

18

16

16

20

19

21

16

10

17

11

18

12

18

13

18

14

21

15

19

16

16

17

10

18

11

19

13

20

16

21

18

22

16

23

19

24

14

56 | P a g e

25

16

26

14

27

18

28

17

29

10

30

16

Total Sum of the Score = 498

Calculation of standard deviation

Total of score Sample mean Deviation (D)

57 | P a g e

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

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

58 | P a g e

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

59 | P a g e

Total sum of deviation D2

= 235.

CALCULATION OF SAMPLE MEANS ()

CALCULATION OF SAMPLE MEAN = TOTAL OF THE SCORE /
SAMPLE SIZE
SAMPLE MEAN = 498/30
SAMPLE MEAN () = 16.6
= 16.6
CALCULATION OF POPULATION MEAN (O)
POPULATION MEAN = 4+4+2+4+4 / 5 (ACCORDING TO THE
MODE )
O = 18/5
O = 3.6

CALCULATION OF STANDARD DEVIATION ()

STANDARD DEVIATION () = D2 / N

60 | P a g e

WHERE D2 = DEVIATION SQUARE

N = SAMPLE SIZE

STANDARD DEVIATION () = D2 / N
STANDARD DEVIATION () = 235.2 / 30
7.8
2.8

STANDARD DEVIATION () = 2.8

CALCULATION OF Z TEST

Z TEST = SAMPLE MEAN () POPULATION MEAN ( O) /

STANDARD DEVIATION

Z TEST = SAMPLE MEAN () POPULATION MEAN ( O) / STANDARD

DEVIATION
16.6 3.6 / 2.8
13 / 2.8
4.64

61 | P a g e

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

62 | P a g e

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 (along with sharply increasing semifabricated 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, JPMorgans 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

63 | P a g e

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)
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,

64 | P a g e

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

65 | P a g e

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

leadership

condition

performance.

was

associated

The

transformational

with

enhanced

task

performance, higher social support perceptions, greater efficacy

66 | P a g e

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.

References
WWW.GOOGLE .COM
WWW.SCRIBD.COM
Baffour, G. G. (1999), The effects of employee participation and
work
design

on

Management
67 | P a g e

firm

performance:

managerial

perspective.

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. 4148.
Kirkpatrick, D. L. (2006), Improving Employee Performance
Through
Appraisal and Coaching. American Management Association
Publication.
Klagge, J. (1997), Leadership development needs of todays
organizational
managers. Leadership and Organization Development Journal.
68 | P a g e

ABBAS and YAQOOBKotter, J. P. (2001), What leaders really do.

Harvard Business Review,
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

69 | P a g e

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

Strongl Disagr

Strong

Neutra

ly

Agree

ee

Disagr
ee

1.Do you think that

leadership
best

tool

70 | P a g e

is

the
for

improving

the

performance of an
employee?
2.According to you
leadership
best

is

indicator

an

the
for

individual

motivation

of

an

employee?
3.Does Leadership
is

an

art

influence

to

human

behavior?
4.Do you think that
without

leadership

employees
performance
cannot growth?
5.Do you think that
without
any

leadership

organizations

growth is possible?

71 | P a g e

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
72 | P a g e

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

disconnection

between

the

organizations 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."
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

effectiveness.

these
Only

skills

27.8%

and
of

leaders

respondents

current
rated

level

of

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
73 | P a g e

effective when it comes to dealing with change. Respondents

cited a number of obstacles that get in the way of todays 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

accountable

than

office

(67.7%),

politics

giving

(71.4%),

employees

holding

more

people

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 not actively pursuing their own
developmentdespite 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
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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.
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
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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 todays leaders have a primary style that is
democratic and involved.

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