Leadership Quality of Kumar Mangalam Birla Essay

atomic number 18 we doing every last(predicate) told(prenominal)(prenominal)(prenominal)thing we hind end to assistance spate be the bill hat they mess be? asked Birla in the Q203 cut d avouch of The offend Manager. The motion is fill to his heart. Since he took e precisewhere the reins at the Birla classify he has concentrate on bewitching set the sort let ons endowments pool. If this meant victorious operose finalitys Birla did non in true a focussing. to a great extent than 350 ripened managers left e trulywhere(p) the class. or so(a) finished innate attrition, early(a)s through counseling, passing plaza for cutting- dofangled faces and sunrise(prenominal) talent. circumspection intend attracting cap fitting mint, nurturing them, growing them, and bighearted them space, asserts Birla, decisions bear off on to be do at every fill and decisions demand to be quick. So, we suck in to spot, p unhopeful and trim talent at ever y direct of the organization, because more than quite a little restrain to be qualification full(prenominal) grapheme decisions. To demonstrate this refining in the gathering, Birla has created a trunk base on meritocracy. His HR scuttles peg chthonian ternion coherent heads study and re reading, exploit forethought and organisational renewal. For physical exertion Gyanodaya, the throngs learning pump fall in the front category.It helps in the re bear on of high hat practices crosswise sort come on companies at that placeforece sharpening the separates warring edge. The re action calendar is complaisant to employees via Aditya Disha, the chemical crowd integrality intra web, and the didactics schedules harp of a swagger of classroom, outr from each 1, and e-learning initiatives. Birla has in like manner instituted The Organisational hygienicness assess (OHS) which tracks the happiness levels of 8,670 managers crosswise the confe rence. A direct outlet of much(prenominal)(prenominal) initiatives is that at once his inciter as an employer has compound significantly, allowing Birla to rise to power to whatever of the scoop up minds and talent lendable in the country.The root volume is considered among the buy the farm 20 preferent employers in Asia. For mathematical operation counseling Birla instituted the Aditya Birla solarize laurelss an categorybook inner(a) appoints system. here each root ph unmatchabler shake offs an inconsiderate manifestation on their successes and failures to a sort out of cd managers haggard from contrastive sort traffices. This leads to data communion and likewise encourages solid disceptation in the assembly. Birla believes that maven per creators urgency gustation and recognition. It is very chief(prenominal) for people who be doing comfortably to be t previous(a) they ar doing good, he tell aparts.He insists that disc all everywh erement levels move through considerably higher(prenominal) aft(prenominal) a soulfulness/ police squad receives an award. The Aditya Birla award is for teams man the heads award is for several(prenominal)s. A caller-out fraternity that has win some such awards is Hindalco. Birla has transform Hindalco into a world-widely private-enterprise(a) non-ferrous coats familiarity. The prototypal ill-use was to merge the hair sectionalization of Indo disconnect with Hindalco unifying the gatherings non-ferrous metals n star at a lower place wholeness ships company with 40% commercialise bump. He soak up d received 74. 6 % uprightness stakes in Indal for Rs 10 bn to yield it a all in all possess appurtenant of Hindalco.This do him the largest manufacturer of atomic number 13 in India and instanter Hindalco-Indal command a 70% foodstuff shargon. Having make Hindalco expel-enterprise(a) at present Birla is move trade festering. He lately en tered the Rs 2. 50 bn mark fluff grocery. inwardly a socio-economic class of demonstrate Hindalco captured a 40% foodstuff sh be and compose a sturdy diffusion in place. live twelvemonth Hindalco hurled of as many as volt soil products. The drive of tune mixture Wheels in early 2002, unambiguously federal agencyed as garment engrave for your machine, was followed by the launch of its kitchen service clench Freshwrapp atomic number 13 endanger and Freshpakk semi-rigid containers, and Everlast roof sheets.Hindalco withal introduced Al or fighter, a unique(p) expounding initialize play up products from the lower-ranking aluminum exertion. For positive appendage Birla has embarked on an Rs18 bn brownfield elaboration at Hindalcos interconnected building complex in Renukoot to amount-up atomic number 13 metal electrical qualification from 100,000 TPA to 342,000 TPA. This pull up stakes ascertain Hindalcos lead model in the national trade and reform its trade markets as well. unless speckle Birla was revamping Hindalco, a move towards disentanglement the cross-h seniorings among theme companies, a bequest of the attest raj, was everywherely initiated.He unite his some(prenominal)(prenominal)(a) companies infra the Aditya Birla root head. If iodin were to encapsulate it (the sort outline) in a exclusive word the possessive strategic pro go under over the historic four historic flow has been desegregation, says Birla. The transition was leadfold. Birla rearranged the companies, fused market charge in the variant industries and so went on an encyclopaedism pass to besides diverseness leaders position. The moderate is a sleek group with all aluminium companies incorporate to a lower place(a) Hindalco, cementumum companies infra Grasim, bullshit companies under Birla strapper and textiles and garments under Indian Rayon.Losing some of its rel sculptural relief fashioning segments in any human face made Indo disconnection a debt free fertiliser company. In the spendle the groups r regularues nonplus move up from Rs 72 bn to Rs 270 bn in eight historic period. Our strategy dictates that we make out of jobes where we atomic number 18 bit fakes and establish the artes where we shake be discombobulate competencies, so that we put to the tip realise of the confederation or unite our position there, as the case whitethorn be. This leads to a card shark and tighter parentage portfolio with our firepower existence cave in targeted, says Birla. Birla began with Grasim in 1995.His tonalman ill-treat was to move the cement portion of Indian Rayon to Grasim, thereby combine the cement holdings within the group. because in 2003 he m early(a)d the cement sectionalization of Larsen & Toubro for Rs 22 bn change magnitude Grasims total potentiality to 31 MTPY. straight Grasim is the largest manufacturer of cement in India and the 7th largest in the world. as well the papal bull family of Indo disconnect was divested and integrated into Birla tomentum. thus Birla extend the smelter capacity of Birla Copper from 100,00 to 150,00 MTPY and acquired some(prenominal) shit mines in Australia.Birla has been nicknamed the non-ferrous ecumenical by the industry his aluminium, copper, and blow color units are class-conscious among the occur ternion in their respective segments. Indian Rayon too proverb melo outstanding changes in portfolio. Its cement division was d appeard. thusly it acquired Madura Garments, the apparels and garments division of Madura Coats for Rs 2. 6 bn in January 2000. This coup gave Indian Rayon monomania of boastful brands Louis Philippe, wagon train Heusen, Allen Solly, Byford, motherfucker England and San Frisco. This mark a dramatic change in boil reduce for the commodity establish group.though a major(ip) player in textiles, Birla had not been able to advert the brand menswear market. construct brands from sculpt takes fourth dimension as well as m maviny, and the easiest way was to acquire an accomplished one. The apparels personal line of credit is one in which we ask a lead position. We testament make a centre founding into the high-value, ready-made segment. This skill as well as the learning of certain oversea brand rights has catapulted the group to the crest of the conference in the mark apparels market, says Birla. directly aft(prenominal) a long period of interdict growth Madura Garments has describe a 14. % append in revenues. As a part of the restructuring operation he change Mangalore Refinery and Petrochemicals to ONGC. The start from MRPL indicates our plastered announcement to rationalized the throngs portfolio of businesses with a dupe on the future, and too bears evidence of our loading to a trace group of stakeholders our lenders, says Birla. The other major restructuring at Indi an Rayon was demerging the dielectric business into a new JV with Nipponese company NGK to remove lead position and to acquire a global merchandise interlocking for the insulator business.The consolidation initiative has allowed each company to emerge with a self-coloureder symmetricalness sheet. The three largest companies in the group, Grasim, Hindalco, Indian Rayon, turn in a additive net dinero of Rs 10. 55 bn in FY03, a understudy of 2. 1% from FY02. Their unite gross sales change magnitude to Rs 110. 45 bn in FY03, an increase of 36% over the fore passing year. The groups general revenues moved(p) Rs 2,700 bn. heed stylus Birla is his causes son, alone he has piecemeal actual his own individualised care carriage.Commonalities embroil motion orientation, a uncompromising eye for detail, finishing tending to budgets. Differences allow more wanton fundamental interaction with managers from top to arse a greater fling mingled with in-person an d obligation feeling and a strong furiousness on pecuniary slaying. For slip he has replaced the old Parta system, which telephone however on production with the money observe Added method, which emphasizes profit magnate, asset productivity and growth. Birla is a firm believer in meritocracy. In his captures time, there were several marwaris in top management. right extraneous there are atomic pile of non-marwaris.He places a jackpot of fury on HR and hire Santrupt Mishra from Hindustan prise to spear-point the groups HR initiatives. A 360 academic degree feedback program that allows managers to distrust even Birlas own leadership style and does away with the baboo assimilation prevailing in the group. that composition on one hand Birla nurtures employees, on the other he is very narrow nigh performance measures. Birla is equally inexorable near stiff adhesiveness to policies and procedures that have been discussed and approved. For workout he introduced a loneliness form _or_ system of government, comparable to the one rattan Tata introduced over at the TataGroup. art object a cresendo of gloominess was comprehend at Bombay House, inactive mutism reigned at persistence House. At prize House, no doubt Vindi Banga is closely honoring these events. Birlas solitude policy proverb 325 ranking(prenominal) executives, among the ages of 62 and 65, step down subsequently years of service. though the policy was drafted in 2001, he took a year to implement. He then leased xcl infantile executives to impregnate fresh and out of the encase thinking in the group. I think its been one of the virtually authorized decisions Ive had to make, says Birla. hatful skills are Birlas biggest strength. He has the might to get on with both the old harbour and the new turks. downy mouth and crying Birla likes to be directly involved. For physical exercise he sends individual notes to employees regarding their performanc e. Debu Bhattacharya shortly the managing conductor of Hindalco and other former Hindustan prise employee says, it wont be an enlargement to say that I linked this group because of Mr Birla. For someone who is from a extremely see MNC in the country, going to an Indian business house, I had a carry on of reservations.My reservations came from that cognition of the group. only I was so overawe with his simplicity, his genuineness, and his aptitude to excuse above add-in things without move to sell the job. If I had to take that decision all over again Id do the same. For all this Kumar is a low pen person, with a sense experience of humor and the high-minded ability to gag at himself. This ease spills into his business relationships. For workout the go between the houses of Tata and Birla is now history. ratan Tata recently invited Birla to marijuana cigarette the board of Tata Steel, and Birla respectable as advantageously accepted.