1.1.

Introduction:
Managers are important in the companies. Their role is to ―Direct others in performing their task.
They focus on objects by producing and selling goods and services. They maintain stability and
create culture of efficiency‖ (Daft, 2011, p. 16). On the other hand, leaders create vision and
strategy. They help others to grow; focus on people; inspire and motivate. They create change
and a culture of integrity. Leadership is a process by which an executive can direct, guide and
influence the behavior and work of others towards accomplishment of specific goals in a given
situation. Leadership is the ability to induce the subordinates to work with confidence and zeal.
Leadership is the potential to influence behaviour of others. It is also defined as the capacity to
influence a group towards the realization of a goal. Leaders are required to develop future
visions, and to motivate the organizational members to want to achieve the visions.

According to Keith Davis, ―Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and motivates it
towards goals.‖

According to Dwight D. Eisenhower, ―Leadership is the art of getting someone else to do

something you want done because he wants to do it.‖

1.2. Role of a Leader

A leader plays an important role in any organization. Some of the roles are discussed below

1.2.1. Required at all levels - Leadership is a function which is important at all levels of
management. In the top level, it is important for getting co-operation in formulation of
plans and policies. In the middle and lower level, it is required for interpretation and
execution of plans and programmes framed by the top management. Leadership can be
exercised through guidance and counseling of the subordinates at the time of execution of
plans.

1.2.2. Representative of the organization - A leader is said to be the representative of the

enterprise. He has to represent the concern at seminars, conferences, general meetings,
etc. His role is to communicate the rationale of the enterprise to outside public. He is also
representative of the own department which he leads.

1.2.3. Integrates and reconciles the personal goals with organizational goals - A
leader through leadership traits helps in reconciling/ integrating the personal goals of the
employees with the organizational goals. He is trying to co-ordinate the efforts of people
towards a common purpose and thereby achieves objectives. This can be done only if he
can influence and get willing co-operation and urge to accomplish the objectives.
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1.2.4. He solicits support- A leader is a manager and besides that he is a person who
entertains and invites support and co-operation of subordinates. This he can do by his
personality, intelligence, maturity and experience which can provide him positive result.
In this regard, a leader has to invite suggestions and if possible implement them into
plans and programmes of enterprise. This way, he can solicit full support of employees
which results in willingness to work and thereby effectiveness in running of a concern.

1.2.5. As a friend, philosopher and guide - A leader must possess the three dimensional
traits in him. He can be a friend by sharing the feelings, opinions and desires with the
employees. He can be a philosopher by utilizing his intelligence and experience and
thereby guiding the employees as and when time requires. He can be a guide by
supervising and communicating the employees the plans and policies of top management
and secure their co-operation to achieve the goals of a concern. At times he can also play
the role of a counselor by counseling and a problem-solving approach. He can listen to
the problems of the employees and try to solve them.

2.1. Leadership in administration:

Leadership in administration is the leading of the body of a company to achieve the goals that
were a result of the vision, mission, and purpose that are created by the leaders of the company.
Leadership is an influence relationship among leaders and followerswho intend real changes and
outcomes thatreflect their shared purposes. It consists of guiding, encouraging, and facilitating
others in the pursuitof ends by the use of means, both of which they have either selected or
approved. Administration is to seek to make the best possible use of the resources available in
achieving the goal of the enterprise. It consists of directing others in carrying out the will of a
third party using means selected by that party.

We need the leadership in administration because there is a big role an administrative leadership
plays especially in Strategic business planning. Without the leadership in administration ―The
organization would fall apart‖ (Daft,2011,p. 7).

3. Theories in Leadership:

3.1. Great Man Theory: The Great Man theory evolved around the mid19th century.
According to this theory
 Leaders are born, not made.
 This approach emphasized that a person is born with or without the necessary traits of
leaderships.

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  According to the great man theory of leadership, leadership calls for certain qualities like
commanding personality, charm, courage,intelligence, persuasiveness and
aggressiveness.

3.2. Trait Theory: The trait leadership theory believes that people are either born or are
made with certain qualities that will make them excel in leadership roles.
 Trait theories of leadership sought personality, social, physical or intellectual traits that
differentiate leaders from non leaders
 The trait theory is based on the great man theory, but it is more systematic in its analysis
of leaders. Like the great man theory, this theory assumes that the leader‘s personal traits
are the key to leadership success.
 Some traits of leaders are –
 Intelligence
 Physical Features
 Inner Motivation
 Maturity
 Vision & Foresight
 Acceptance of Responsibility
 Open-Minded and adaptability
 Self-confidence
 Human Relations Attitude
 Fairness and Objectivity

3.3. Charismatic leadership theory:

Charismatic leadership involves a sense of style, flair, and confidence that motivates and initiates
a change in its followers. It is the process of encouraging certain behaviours in others via force of
personality, persuasion and eloquent communication. Charismatic leaders inspire their followers
to do things or to do things better; this is done by conjuring up enthusiasm in others for a stated
vision or goal. A charismatic leadership definition is incomplete if it does not focus on the leader
personally. More than other popular leadership styles, charismatic leadership depends on the
personality and actions of the leader — not the process or structure.

3.4. Behavioral Theories:

This theory proposing that specific behaviors differentiate leaders from non-leaders. The Pattern
of actions used by different individuals determines leadership potential This theory provides
basically 3 styles. They are Autocratic, democratic and Laissez-Faire leadership style. Theories
that attempt to isolate behaviors that differentiate effective leaders from ineffective leaders

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3.4.1. Laissez-Faire:
A laissez-faire leader lacks direct supervision of employees and fails to provide regular
feedback to those under his supervision. Highly experienced and trained employees
requiring little supervision fall under the laissez-faire leadership style. However, not all
employees possess those characteristics. This leadership style hinders the production of
employees needing supervision. The laissez-faire style produces no leadership or
supervision efforts from managers, which can lead to poor production, lack of control and
increasing costs.

3.4.2. Autocratic:
The autocratic leadership style allows managers to make decisions alone without the
input of others. Managers possess total authority and impose their will on employees. No
one challenges the decisions of autocratic leaders. Countries such as Cuba and North
Korea operate under the autocratic leadership style. This leadership style benefits
employees who require close supervision. Creative employees who thrive in group
functions detest this leadership style.

3.4.3. Participative:
Often called the democratic leadership style, participative leadership values the input of
team members and peers, but the responsibility of making the final decision rests with the
participative leader. Participative leadership boosts employee morale because employees
make contributions to the decision-making process. It causes them to feel as if their
opinions matter. When a company needs to make changes within the organization, the
participative leadership style helps employees accept changes easily because they play a
role in the process. This style meets challenges when companies need to make a decision
in a short period.

3.4.4. Managerial Grid:

The Managerial Grid developed by Robert Blake and Jane Mouton focuses on task
(production) and employee (people) orientations of managers, as well as combinations of
concerns between the two extremes. A grid with concern for production on the horizontal
axis and concern for people on the vertical axis and plots five basic leadership styles. The
first number refers to a leader's production or task orientation; the second, to people or
employee orientation.

3.5. Contingency or Situational Leadership theory:

This theory argues that there is no single way of leading and that every leadership style should be
based on certain situations, which signifies that there are certain people who perform at the
maximum level in certain places; but at minimal performance when taken out of their element.

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The leader's ability to lead is contingent upon various situational factors, including the leader's
preferred style, the capabilities and behaviors of followers and also various other situational
factors.

4. Practical Application of Various Theories and Styles

For better understanding of these theories and styles in practical life, I consider Mr. Mukesh
Ambaniji to apply these theories and try to find out his leadership style.

Mr. Mukesh D. Ambani is the key person of Reliance Industry limited as

5. He is holding almost 47.48% of the total capital of the company (according to Financial
Statement 2015-16).
6. He is the managing director and chairman of the company (Mukesh Ambani joined
Reliance in 1981 and became its Chairman and Managing Director in 2002)
7. ―The ultimate ownership‖ of all the entities lies with Mr Ambani and his family,
statement published in ―The Economist‖.
8. According ‗The Hindu‖, Mukesh Ambani is the Key Person who is getting highest Rs.15
crore as Salary in his company.
9. He focused extensively on building various competencies in Reliance that would make
this organization & it‘s his vision to have a chain of sectors within Reliance has
strengthened his position in almost every initiative he has taken. Mukesh is known to be
amongst the top ten richest men in India & had surpassed Bill Gates in 2007 to be the
World‘s richest man.

4.1. Introduction about the Key person of the organization

―All of us, in a sense, struggle continuously all the time, because we never get what we want.
The important thing which I‘ve really learned is how do you not give up, because you never
succeed in the first attempt.‖

– Mukesh Ambani

Mukesh Ambani was born on April 19th 1957 to Indian Business Legend Dhirubhai Ambani and
his wife Kokilaben Ambani. He has a younger brother, Anil Ambani, and two sisters, Dipti
Salgaoncar and Nina Kothari. He attended the Hill Grange High School at Peddar Road,
Mumbai, along with his brother. He received his BE degree in Chemical Engineering from the
Institute of Chemical Technology, Matunga. He later enrolled for an MBA at Stanford

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University but discontinued the program to help his father build Reliance, which at the time was
still a small but fast growing enterprise.

In 1980, the Indian government under Indira Gandhi opened PFY (polyester filament yarn)
manufacturing to the private sector. Dhirubhai Ambani applied for a license to set up a PFY
manufacturing plant. In spite of stiff competition from Tatas, Birlas and 43 others, Dhirubhai
was awarded the licence. To help him build the PFY plant, Dhirubhai pulled his eldest son
Mukesh out of Stanford where he was studying for his MBA. Mukesh Ambani, then
discontinued the program to help his father and initiated Reliance's backward integration from
textiles into polyester fibres and further into petrochemicals, beginning in 1981.

Mukesh Ambani set up Reliance Infocomm Limited (now Reliance Communications Limited),
which was focused on information and communications technology initiatives.

In February 2016, Mukesh Ambani-led Jio launched its own 4G smartphone brand named LYF.
In June 2016, it was India's third-largest-selling mobile phone brand.

4.2. Leadership Style of Mr. Mukesh Ambani

Although Mr. Mukesh D. Ambani is having some unique leadership style as he understands the
sustainability of a company and its potential not based on its present promises but what it
promises in the future. After going through a number of articles, financial statement and news I
am able to find mainly 3 leadership style that he possesses. They are discussed below -

4.2.1. Democratic leader: The democratic leader consults with subordinates and encourages
their participation. Mukesh Ambani is a participative leader.
With an experience of about 35 years and the decision making style which turnout to be
favorable for the organization, he is now considered as a delegating leader who is
confident that the task or project assigned to the team will get completed. He built a good
working environment to their employees so that they all work willingly to achieve the
organizational goal. And as a leader with a good ability he always takes a decision in
favour of organization to make than more successful. (Source: Leadership Blog, 2010).
He always tries to participate and motivate the people to work hard. Although, it is a big
company, he cannot share all his ideas to all but he has a trusted team of a few people,
who have played a pivotal role in the growth of his empire. (Source: Business insider
India)

4.2.2. Transformational leader: The leader articulates a vision, inspire and create a climate
favourable for the organizational change.
Mukesh Ambani is a visionary. He can think of the future. He knows what technology
will be viable in the future. He understands the sustainability of a company and its

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 potential not based on its present promises but what it promises in the future. It is this
ability of the Indian billionaire that has ensured the unprecedented success of Reliance
Industries, a conglomerate that was founded by the father of Mukesh Ambani but what
was steered into unparalleled success by him. According to him, smart leaders or great
leaders are those that develop smart followers.
4.2.3. Achievement oriented leader: The leader involves setting challenging goals, seeking
improvement of performance, and having confidence that subordinates will achieve high
goals. The secret to his success was the constant need to challenge existing situations.
Mukesh Ambani could see far into the future and pinpoint the businesses that would
change the face of his company profile. Petrochemicals plastics, polyester were all in
their net, all having a future. Expansion was not confined to India alone. It included the
whole world. This huge plan for expansion coupled with huge cash flow enabled the
company becomes what it is: a global giant by any standards. To appreciate Prime
Minister Shri Narendra Modi's inspiring vision of "Digital India",Jio is dedicated to
realizing our Prime Minister's vision for 1.2 billion Indians.

4.3. Leadership theory of Mr. Mukesh Ambani:

The leadership theories that supports Mukesh Abmani‘s leadership approach are discuss
below-

4.3.1. Charismatic leadership approach: Charismatic leaders describe individuals who convey
an inspiring vision of the future for the unit or organization as well as align their
behaviour to these values. The reasons are discussed below –

 Vision-- Mukesh Ambani has a strong vision for India's future and many new
things (Reliance Jio) is introduced by Reliance only.

 Money handling-- Mukesh being the richest man in India knows where and how
to invest his money. He has even made the biggest house (Antilla) in Mumbai
which can act as his business office, guest house, party area etc thereby saving
money for booking hotels.

 Work and personal life balance --No matter how busy his schedule is, Mr.
Ambani spends Sundays with his mother, wife and children. He hates to celebrate
his birthday but celebrates family members birthdays. On the occasion of one of
her birthdays, his wife Nita Ambani received a jet plane worth 62 million dollars
as a gift from him.

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  Modesty-He enjoys traditional Indian dishes and he is a vegetarian. The family
can be spotted in some of the country‘s little and less pretentious restaurants that
serve traditional cuisine. In addition, Mukesh Ambani has absolutely no
knowledge of fashion brands. He says that he is willing to wear anything that
feels comfortable.
4.3.2. Trait approach to leadership: The trait leadership theory believes that people are either
born or are made with certain qualities that will make them excel in leadership role. Mr.
Ambani has some traits within him. Some of them are

 Intelligence- Mr Mukesh Ambani is an able administrator who steered Reliance

to incredible height in the last two decades after his father Dhirubhai Ambani's
death. From his childhood, he is very much friendly with numbers and he never
forgets a face, though he is less accurate in remembering names. He is a person
who wants to know the why and where of everything

 Human Relations Attitude – Mukesh Ambani always try to make friendly

relationship with other. He knows how to talk with persons of different age
groups.

 Self-confidence: Mukesh Ambani is a practical person. He has the ability to

systematically organize the things. Mukesh Ambani tends to be a loner, preferring
to think and study. He has very much self- confidence with the help of which he
can do the things which is next to impossible.

 Vision & Foresight: he is very much clear with the vision and mission of the
organization and always try move forward with the members of the organization.
He always gives credit to all for the success of the organization.

―Mahatma Gandhi‘s dream of self-reliance can be attained by making use of Internet and
technology.‖

– Mukesh Ambani

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 Summary
We cannot imagine a company without an administrative leader. He has the biggest role in
growing this company. Without his presence or even his good skills, the company might lose
money in big amounts and might fall apart. One of his duties is to develop an ethical culture by
presenting himself as a model. A second role is to unite the body of this company by sharing the
vision, mission and purpose through a strategic business plan. That will align the rapidly growing
organization around the CEO‘s vision for success. He holds responsibility to the staff, to the
company and to society. Leadership in administration is not a one person role; it is everyone‘s
role in the company. Any individual, manager and executive have to play this role for the success
of the company. Leadership in administration is a team work sharing one purpose.

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 References
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https://www.researchgate.net/publication/263082828_IMPORTANCE_OF_LEADERSHIP_IN_
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http://www.who.int/hiv/pub/imai/om_10_leadership_management.pdf

https://www.forbes.com/profile/mukesh-ambani/

https://www.managementstudyguide.com/importance_of_leadership.htm

http://www.yourarticlelibrary.com/business-management/what-is-the-importance-of-leadership-
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https://leadonpurposeblog.com/2014/06/21/the-importance-of-leadership-in-effective-
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https://www.hrpayrollsystems.net/importance-of-leadership-in-business/

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