Yogesh Chander Deveshwar Itc Limited Commerce Essay
Yogesh Chander Deveshwar is the Chairman of ITC Limited, one of the Indias largest multi-business corporations. Yogesh Chander Deveshwar was born on 4th February 1947 in Lahore. He completed his Bachelor Degree in Mechanical Engineering from IIT, Delhi and Harvard business school in 1968. He is also known as Yogi as his friends use to call him by this name. In 1968 yogi was chosen by Ajit Narain Haksar and he was the First Indian Chairman for the Company. He is working with ITC from the last 41 years and has worked in virtually every arm of ITC. He was appointed as the Board of director of the Company in 1984, between 1991 and in the year 1994 he took the charge of the Chairman and Managing Director of the Air India. On Jan 1st, 1996 he became the Chief Executive and Chairman of ITC Company. He is also the Chairman of ITC’s wholly owned subsidiary, ITC InfoTech India Limited, and its subsidiaries in the UK and USA. Under leadership of Y C Deveshwar, the company has consolidated and strengthened its diversified businesses and hotels. Deveshwar is the man who guided ITC’s successful into new growth areas including agriculture business, retail and distribution and branded FMCG goods.
On sep.3 2012 by The Central Government of India has nominated him as the director in Reserve Bank of India for four years. He worked for the confederation of Indian Industry. He was also worked for so many educational institutes like Board of Governors at the Indian School of business and even he was the former chairman of society and the Board of Governors at the Indian Institute of Management Kolkata. He also worked for the National Executive Committee of India’s Premier trade. In 2006 he was awarded by Lakshya Business Visionary award this award was given to him by the students of National Institute of Industrial Engineering Mumbai. Lakshya Business Visionary award was given him by Mr. Jayant Patil and they salutes to Y C Deveshwar to guide the nation to success through the diligence and as they were committed.
Deveshwar is ranked third on the list of the India’s best CEOs between 1995 and 2011. In the Year 2001, by Ernst & Young, Y C Deveshwar was awarded with the Manager Entrepreneur Award. He was also inducted to the prestigious Hall of Pride at the Indian Science Congress in January 2006 and in the year 2006 he was awarded as the Business Person of the Year Award by the UK Trade & Investment. In the year 2007 he was awarded by the Sustainability Leadership Award. Mr. Deveshwar had also been honoured with the Global Leadership Award by the US Chamber of Commerce. In 2011 Government of India Awarded him by Padma Bhushan award one of the highest civilian award for contributed his service of a high order to the nation.
Strategic leadership refers to a managerial potential which express a strategic vision for the growth of organization and to motivate the employees to acquire the vision. Strategic leader creates organizational structure that is focused towards the business which allocates resources that understand business goals and objectives to express strategic vision which is a set of the organizational vision. Strategic Leadership ia a leadership which provides the vision and direction for the growth and success of any organization. As change has become repeatability in organizations, all employees need the skills and tools for strategy implementation. Being a strategic leader, he requires the capability to understand business priorities and their long term and short term goals. Leadership better equipped to not only thinks more incisively about future competitive advantage, but your organization will have greater strategic focus at every level, beginning with the top management team.”-Gerald L. Kiser, president & CEO
The process of using well considered tactics to communicate a vision for an organization or one of its parts. Strategic leadership typically manages, motivates and persuades staff to share that same vision, and can be an important tool for implementing change or creating organizational structure within a business.
The true meaning of strategic leadership is “nothing more than the ability to anticipate, prepare, and get positioned for the future. It is the ability to mobilize and focus resources and energy on things that make a difference and will position you for success in the future.” Effective strategic leadership focuses on the long term rather than solely on the short term. (The Center for Management and Organizational Effectiveness)
Strategic leadership is defined “as practicing existing abilities and skills and influencing others to train in new formats for new leadership models. Specifically, to obtain successful educational management within the organization”.(Barron, 1995)
Bernard M Bass developed a system and in this system or model he divided leadership in four different types based on the main two objectives which are task oriented and people oriented. There are some main styles of leadership which is explained below:
A directive leader will always tell his colleagues and explain that what to do, how to do and when to do but he should have a good control on them then only he can make his followers to work under him.
A consultative leader will always take the decision with the help of his colleagues and he will always conduct a meeting before take any decision.
A participative leader
The participative leader puts himself as a member of the team and discusses possible decisions with the team. He seeks consensus before coming to a decision and everyone is supposed to take ownership in the final decision.
The negotiative leader employs a more political approach to leadership. He has a personal interest in his decisions and he uses incentives to entice his followers to do certain things.
Situational leadership refers to when the leader or manager of an organization must adjust his style to fit the development level of the followers he is trying to influence
Y C Deveshwar, being one of the prominent and effective hospitality leaders in the hospitality industry. He posses’ two different styles of leadership which he executes in his career to bring up the ITC group in different sectors with new ideas.
Y C Deveshwar, being one of the effective leader , he practices participative leadership style in which he considers the ideas and views of his colleagues and then only he use to takes the decision. In this style of leadership all the BOD’s will seat together and then only they will take the decision for the company future. All the BOD’s has to share their views and ideas and on the base of that only they will take the correct decision. Y C Deveshwar always seat with these people and he will also discuss his views and ideas which enthusiastically increases the morale of the employees working under him. Before make any decision he will always ask his subordinates and then only he will come to the decision. He always use to ask his company members to take participate in the meetings and share their ideas or views which they can apply in the company. Even though, the sharing of such ideas and views always helps the company to come up with many innovative ideas and this practices always benefit the company in a very beneficial way. He preferably want his all Board of Directors should be present in all company meetings, so that they all can sit together and figure out the possible decisions which will benefit the company with maximum profits with minimal loss and also helps to achieve the company objectives.
Y C Deveshwar also executes another leadership style which is being a Delegative Leader in which he concentrates only on decision making, and allows his subordinates to take their own course of action. He always gathers his team to discuss possible decisions that could be adopted and help the company to expand and even give high profits. In today’s world, ITC has more than 15 products in the market and it is very difficult to handle all the different sectors of the ITC products. Being having Delegative leadership qualities, Y C Deveshwar has divided the different sectors to different managers who will take the decision on monthly basis and they have to inform the steps which they are going to take for company benefits.
Y C Deveshwar is a strategic leader. He has some leadership qualities which made him a strategic leader. Strategic leadership is all about the leading, guiding and innovate the new ideas. Strategic leadership is all about leading, influencing and guiding the organising team members to think strategically about their own duties and responsibilities which require the potential to comprehend the work place and environment. It requires potentiality to look at the wider picture which has a vast perspective and they don’t need skills in their narrow specialty but they have a good working knowledge and experience about the things that are organizational importance. Adapting strategy to a changing business requirement is must if the organisation wants to remain valuable to the business. The process which assess the leadership talent to lead the change which enables the business to meet its objectives which changes the adaptability of the organisation. Strategic leaders must have zeal to work accordingly which goes beyond money and power and also the investment in their people to motivate them, to achieve the goals of the organisation with determination. Strategic leaders are able to plan and execute a range of possibilities of several stages ahead for the development of the organisation. For a Hospitality Leader, there must be a equalised focus to understand the function which provides the value towards the organization.
At the time he joined the ITC Company, it was facing a very bad time. He came and started expanding the business and they entered into the hospitality industry till that company was only in the Tobacco business but at the time Y C Deveshwar entered into company it became the multi-business company. He takes the company to the so many new other business which increased the sale of the company and company has shown a good growth in all the areas ex: – Agriculture business, retail business and distribution of branded FMCG (Fast Moving Consumer Goods). As we said he has good creative mind so he used that in the company applied his strategic ideas and because of that today ITC is most valuable Business in India. In 1991there were two major turning points: the company appointed him as the chairman of ITC’s Indian Tobacco Division and Indian Leaf Tobacco Development Division; the government handpicked him to be the Chairman and Managing Director of Air India. Y C Deveshwar was not successful in turning around the declining fortunes of the national carrier; he tried to push forward the idea of merging Indian Airlines and Air-India and then privatizing them as a joint entity. Partly the problem lay in the way the group’s top management was structured. At the time Y C Deveshwar joined the ITC group, the main income source was only Tobacco Company and the Board of Directors was directly responsible to take decisions. Y C Deveshwar reduces the number from executive team and board became the management arm of company and all the decision started taking by the responsible executives of the different market products. A leader always creates big demands on people. A good leader is always responsible for the vision and goals of an organisation. Unless and until the leader is strong enough the organisation will not survive. So it is very important for the leader to get self-motivated in all the situations. He should be enthusiastic and should feel responsible in the work he does. They should always be aware of serving his organisation and also the employees. When Y C Deveshwar joined the ITC group that time ITC is mainly known only for the tobacco products but he joined and he start investing in other business because of him today ITC has more than 15 products and he is only that person who started ITC hotels.
I conclude with a brief review of a leader and his qualities and his characteristics. This essay explains that for a smooth and safe running of business a strategic leader is the most important, effective and responsible person where he has to lead his team towards to achieve the organisational goal. A leader has to always build good relation with his all employees and company members; a leader has to satisfy their basic needs that they can work more effectively in the business. This literature also sought out the styles of a leader. It is also important that the organisation should follow the hierarchy in an organisation. Always the top level management should implement their strategies on middle level management and the middle level management should make sure that the strategies given by the top level management are being targeted by low level management. This essay also explains about Mr. Y C Deveshwar history, education, achievements, awards and the different ideas or his views which he contributed within the working in hospitality industry, his different styles, his successful moments, his hard work and his challenges and how did he solve out the challenges successfully. The way which he used to face the different challenges where there was staff turn was very qualitative. Y C Deveshwar always uses to motivate his employees that they can help organisation to achieve the goals.
In The end I concluded that Mr. Y C Deveshwar is a successful leader for ITC organisation and he was awarded by the best entrepreneur in the hospitality sector. He is also planning to expand ITC Company in coming years and they are already ready to launch their hotel in Sri Lanka and Nepal.
Management Study Guide: Strategic Leadership — Definition and Qualities of a Strategic Leader
Strategic Actions: Strategic Leadership.
Strategic Leadership in Hospitality & Tourism management
Mrs. Gayathri Desai
Mrs. Jayapradha K.
The word crisis has originates from the Greek word” Krisis” which means judgment, choices or decisions. It appears that three elements must be present: a triggering event causing significant change or having the potential to cause significant change; the perceived inability to cope with this change; and a threat to the existence of organizations (Keown-McMullan, 1997) as well as of tourists and members of the tourism industry (Henderson, 2006). Every crisis is unique displaying a remarkable range and variety (Henderson, 2006), yet characteristics generally cited include unexpectedness, urgency and danger (Hermann, 1972). Tourism crises usually share these attributes although certain crisis situations can be predicted and lack immediacy. Crisis Management is the management and coordination of your institution’s responses to an incident that threatens to harm, or has harmed, your institution’s people, structures, ability to operate, valuables and/or reputation. It takes into account your planning and automatic incident response, but must also dynamically deal with situations as they unfold, often in unpredictable ways. “Crisis is not a pathological state; it may occur to anyone at any stage in his or her life span.” (Golan, 1978).
A crisis is any situation that has the potential to affect long term confidence in an organisation or a product, or which may interfere with its ability to continue operating normally.”(Pauchant and Mitroff).
Crisis can be defined and situation which can affects the whole organisation and as well as the employees of organisation. Crisis can also be described as an unexpected event leading to major unrest amongst the individuals at the work place. Crisis is a sequence of un expected events which can be harmful for an organisation. Crisis can affect the whole organisation as well as individuals. Organization crisis is a low-probability, high-impact event that threatens the viability of the organization and is characterized by cause, effect as well as by a belief that decisions must be made swiftly. (Pearson and Clair, 1998).
Crisis Management is the art of dealing with the unexpected events which can affects the employees, whole business as well as client refers to crisis management. Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. Crisis management can be defined as a process of handling unexpected changes in the organization culture. There is a vital need of knowing the importance of CMP in the organisation which will directly help the employees to understand as well as to cooperate with the organisation at the time of crisis or after the crisis. Having an effective CMP, it helps the manager to make the strategies to come out of certain conditions and helps to decide for the future execution of plans. Crisis management also includes the processes which helps the managers and even thou staff also to understand the unexpected events. Crisis management will helps the staff to take the effective action.
Types of crises
Natural crisis is a disaster which occurs without any prior information to any place in the whole world. Natural crisis is further been explained in many manners like earthquakes, landslides, cyclones, volcanic eruptions, floods. Many of the people in the world consider natural crisis as “Act Of God”. For Example: Earthquake in Indian Ocean with a magnitude of 9.2 at Richter scale on 26 December 2004 which resulted in Tsunami.
Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole. Technology failure is something related with power blackouts, computer irregularities, aircraft crashes and even sometimes the nuclear meltdown. Some technological crises occur when human error causes disruptions. When an accident creates significant environmental damage, the crisis is categorized as mega damage. Samples include software failures, industrial accidents, and oil spills. For example: Northern Grid Power blackout in almost 22 states of India out of 29 which vitally affected the daily practices of the people living. This technological crisis effected in many places as for travelling, banking services as well as hotel industry too in context with reservations and other inter departmental operations.
Terrorist attacks/man-made disasters
Terrorist attack is manmade disaster which means it has threats of human body. It involves negligence, an element of human intent and failure of human system and its results can huge loss of life, wealth and buildings and even it also affects the mentality of a person.
Recession in 2008-09:- The 2008-2009 recession hit every industry around the world very hard. One of the most affected industries, however, was the hospitality and restaurant industry. Before the recession, oil prices were at all-time high, and hotels and travel companies had already started to see a significant decrease in travel and tourism. The industry which got affected mainly because of recession is of accommodation, traveling and hotel industry. As we do know that the income of many families goes down badly during recession. Some families even lost all sources of income too, which created panic and turmoil in their life. This is why people are saving on traveling and staying back in their home only. This is affecting the hotel industry badly. Not only the family visitors, but hotel industries are also losing their business travelers too. These day’s companies prefer video conferencing for meeting rather than going overseas for meeting. All these situations caused panic in the hotel industry and they took some instant measures like slashing the rates, increasing marketing costs, and promoting their websites. Some of the hotels are lucky enough to get the support from the government too, but those hotels were very few and they not only survived the recession but came over it very soon. Overall hotel industry is suffering from the recession and I hope very soon they can heal over it.
Terrorist Attack:- It is a manmade disaster which results can be a heavy loss of life and which can affects the life of staff as well as guest also. The terrorist attack happened on the Taj Hotel Mumbai on 9/11. They want to create same environment like Marriott attack which happened in Karachi. The person who was there behind Mumbai attack they planned to create an unsecured environment and them wants to reduce the economic strength. Security would obviously be the most important element of this disaster management plan and guests at five-star hotels should expect to be checked along with their baggages. The way luggage is scanned through x-ray machines in airports, it should be also done in hotels. The screening should start at the very entrance where minimum damage can be done. All the hotels need to have a proper security system and even they should have a good security team that they can immediately take the decision and the team should be always ready to handle this type of situation because at the time of this type of situation if they will call the security team from outside it will take long time till that time they can damage lots of things. All the hotels should make sure that the security especially at entry gate needs to be more strong so that this thing won’t be happen again in future. Security systems should be updated by the latest machines and technology.
Tsunami and Earthquake: – These are the natural disasters which appear without any prior information the last crisis which affects the whole South India was Tsunami in Indian Ocean in year 2004 and because of this crisis there was a lot of wealth, life loss and even buildings were also damaged. This Tsunami has affected all the hotels and all the coastal areas in South India. Indian south-east coastal region looked very normal on December 26, 2004 but as the day started unfolding, tremors were felt in Tamil Nadu’s capital Chennai and the Andaman and Nicobar Islands. Then the tsunamis came which engulfed the Andaman and Nicobar islands, the coastline of Pondicherry, Tamil Nadu and parts of Kerala, Andhra Pradesh, Orissa and West Bengal. Though Orissa and West Bengal recorded minimal or no loss to property and human life, the other regions reported substantial devastation. The hospitality industry in two partly affected Indian states, Andhra Pradesh and Kerala, suffered due to rumors, fuelled by the panic about incoming tidal waves. But now the Indian Govt. is already set to fight with the Tsunami and The Indian Govt. has pledged $30 million to develop a tsunami early warning system to prevent such a large loss of life.
There are some steps which an organisation can take to avoid the much loss at the time of when crisis occurs these are also known as pre- crisis pan or post crisis plan. Here I am going to explain some plans which we can take and it is basis on all the three crisis which I have written above which is recession, manmade and natural disaster.
As a leader considering recession which is an economy disaster because of that so many people lost their jobs and even the some organisation also has been shut down as a hospitality leader the steps which I will take is that an organisation should have the enough money power that at the time of recession they can pay the salary to staff and even in this situation also they can run their business easily. Being one of the hospitality leader I will make sure that organisation should not get affected and even the staff also should not leave their jobs. Earthquake is a natural disaster and its results can be loss of life and even it can affect the whole business also it can damage the whole building also. So as a leader the pre steps which I will take is that we have to train our staff that when the situation will come they can make a proper plan and help others also and even the staff which is working in organisation they should have proper communication with each other. Terrorist attack is a manmade disaster which can damage the whole organisation and even a heavy loss of life also so for that we have to take some steps in advance that we can save the life of human and not even staff we have to save the guest also as a attack happened on the Taj, Mumbai on 26th Nov. 2008 where so many lost their life. So for this issue first of all we should have a proper security system and through that only all the staffs have to go not only the guest even the staff also. All the hotels should have CCTV cameras on all the floors that they can see the activities which are happening there and even at the time of check in they should have taken the copy of their identity proof.
Post crisis plan for all the crisis which is mentioned above is that the organisation should have the proper plans and all the businesses should have enough money power also that they can easily come out from the situation and again they can again come back to the track and run the business smoothly because if they won’t able to recover from all these situation then might be they have to close the business also. As a leader the main important thing is that we have to take the steps through which business can easily come out from the crisis and we have to take and even they have to make a proper crisis management plan also. (Major Suresh Goel, 2002)
Crisis is a disaster which occurs without any prior information and its results can be a damage of building, life or lives also. It can effect a whole organisation or departments of organisation. Crisis can be natural which includes (earthquake, Cyclones and landslides) and man-made which includes (Terrorist Attack, strikes, sabotages). Crisis leadership is a style which can help an organisation to save the whole organisation or can help to save the lives in organisation for that they have to make a crisis management plan in the organisation. This essay has given a brief introduction about the crisis, types of crisis, how a crisis can occurs and how to make a plan to save the lives in organisation. In this essay some points has given which can help an organisation to make some pre crisis plan or some post crisis plan. In pre-crisis plans we have to make some plans which we can apply in the future or whenever the crisis will going to affect the business it will be more beneficial for organisation at the time of crisis. So, in the last, I like to conclude that every organisation should create the crisis management plans which can help them in the future and it will help them to save the lives of person working in business or organisation.