Impact of Leadership on Indian Organisations

The report examines the effects of leadership on Indian companies, including issues like inadequate training programs, low employee morale, and poor employee retention rates. It also stresses the significance of human resource management in achieving organisational performance and business goals.

MANAGEMENT THEORY AND
PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Leadership affecting organizations in India and Worldwide...........................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Leaders are very essential for organisations or businesses as they help other people to
work in coordination effectively to achieve a common goal and objective. The present report is
in context to Indian organisations and their leaders; it will include a brief description about how
leadership has affected Indian and worldwide companies. This report will explain the impact of
leadership or management of organisations or businesses.
LEADERSHIP AFFECTING ORGANIZATIONS IN INDIA AND
WORLDWIDE
A huge number of Indian companies have achieved a high growth during past years, but
as of today many organizations are facing negative side effects – a national crisis
leadership(Leadership, 2017). It can be said that Indian organizations are victims of their own
success. One Senior Human Resource Manager at a large private sector corporation said that
people have been largely focused on growth that they have not invested in development. He also
explained that there is a strong circle of the leadership in the company but there is no tag team.
Recent survey information is supporting this claim or statement that was published in
2015 study by Harvard Publishing, 90% of top organizations in India observed a major challenge
which was gap in leadership practice. Management Group talent shortage survey presented that
48% of employers in Indian companies find it difficult to hire qualified candidates for their
senior managerial positions. Therefore, it can be concluded from this survey that lack of
availability related to senior managers have a great negative impact on the overall performance
of companies in India.
Looking for leaders
India's young and under-prepared population, its changing business models and its rapid
economic growth are the most visible contributors to its leadership shortage. Since a long time,
Indian business leaders or managers were more focused towards development of technology
rather than people working in their organisations. The Indian organisations planned to offer a
seat in the management committee to the Human Resource Manager, which assisted the
companies to fill the empty positions of leaders needed. Due to this, HR department often has a
limited role or responsibility in the strategic planning and decision-making process that result in
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lack of focus on the Human Resources or employees of the company (Ekpe, Mat and Adelaiye,
2017).
Insufficient training for new employees
Many Indian organisations face difficulty in hiring or on boarding program, newly hired
MBA candidates are not properly trained. The companies put too much workload and pressure
on the new candidates; as a result, it reduces employee retention in the Indian organisations.
The employees needs to be provided effective induction and training programs by their
managers or leaders, which can help them to understand their roles and responsibilities in an
organisation or business functions (Hayes, 2018).
Lack of succession planning
Industries that are developing rapidly are driven by the rise of digital media mainly
depends upon young and inexperienced managers to take on senior positions. The organisations
in India avoid offering senior positions to young employees as it requires experience. As a result,
old managers who have limited knowledge of technology and digital media are still leading most
of the organisations or companies in India. Therefore, there is a barrier in growth of businesses,
which is really affecting economy and organisations in India.
In order to achieve maximum growth and development of the business, the Indian
companies needs to change their organisation structure as well as hiring process of new
employees. The organisations need to select and train their employees to make them more
effective and efficient as this can help them to improve overall performance. The organisations
in India as well as other countries in the world should focus on development of human resources
as employees are the main elements or parts of each and every business. The companies are
getting negatively affected lack of focus organisation are putting on human resources.
Employees are not getting more opportunities to learn and develop, which demotivated them as
well as influence them to leave their jobs (Deresky, 2017).
CONCLUSION
The above report determined the various impacts of leadership on the organisations in
India including insufficient training, demotivated employees and lack of employee retention in
the companies. The report also concluded that Human Resource is very important for every
organisation and needed to be managed effectively to improve organisation’s performance as
well as achieving business goals and objectives.
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REFERENCES
Books and Journals
Deresky, H., 2017. International management: Managing across borders and cultures. Pearson
Education India.
Hayes, J., 2018. The theory and practice of change management.
Ekpe, I., Mat, N. and Adelaiye, M.O., 2017. Leadership skill, leadership style and job
commitment among academic staff of Nigerian universities: the moderating effects of
employee's attitude and work environment. International Journal of Management in
Education, 11(1), pp.77-93.
Online
Leadership, 2017 [Online]. Available
through:<http://www.businessdictionary.com/definition/leadership.html>
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