Case Study (1): Leadership Based On Ancient Principles

“Responsible, authentic and integral" with commitment to a triple bottom line of profits, people,
and the planet are the principles behind Tata, India's largest corporation. The conglomerate is a
$100 billion family-owned Indian industrial giant that includes anything from information
systems, steel, energy, cars, consumer goods, and hotels with operations in over 80 countries, and
ownership in international brands such as Jaguar, Land Rover, and Daewoo Motors. Its business
is a symbol o f the success of modern Western-style capitalism; its leadership and management
principles hale back to India’s ancient culture and religion based on values of integrity,
hospitality, humility, kindness, and selflessness all ideals from the family’s Parsi religious
background and their rural roots.

As a family-owned and -run business, Tata benefited from the leadership of Ratan Tata for 21
years until he handed the reins to Cyrus Mistry in December 2012. An executive who worked
with Ratan Tata says: “The chairmanship did not change him or his manner o f arriving at the
most appropriate course of action...Ratan Tata is not the type of boss who is given to thumping
the table. He softly mandates, and those to whom the message is addressed get the point very
clearly. He thinks big and encourages others to do likewise. He does not discourage those who
occasionally fail to deliver.” Tata is reputed to be a good listener while also able to express his
own view convincingly and some attribute his success to his ability to think big and small at the
same time. While many executives around the world develop arrogance and hubris and seek
attention as international superstars, Ratan Tata has remained a private, self-effacing, and humble
man who supported globalization ahead of his time. His employees, though are timid by his mind
and vision, believe that he is equipped to look after the interests of the organization and its
employees’ development and make a difference in the global market. He is in position of
knowing what’s best for the rest of the team – lecturing, guiding, and empowering all.

Because a majority of the company’s business comes from outside India and because of India’s
own cultural diversity, the company promotes broad cultural diversity. Alan Rosling, executive
director at Tata Sons, says: “The successful organization of tomorrow will diffuse
geographically, and draw its competitive edge from a creative intermingling of people from all
over.” He believes that India has a unique advantage in promoting diversity because the country
itself is one of the most diverse in the world. Although cultural misunderstandings are bound to
happen, Rosling believes that: “Only by exposing people to colleagues internationally can theses
issues be tackled, and potential for consequent value turned to real competitive edge”

The supervision and leadership principles that guide the company are implemented in recruitment
and training, where many of the hotel’s staff came from villages and were brought up with
traditional cultural values, which are further reinforced through training and reward systems.
 Case Study 2: David Neeleman Reinvents Airlines

David Neeleman is a legend in the airline industry and given credit for some of the major
innovations in the airlines industry, including ticketless travel. In 1984, he cofounded Morris Air
and sold it to Southwest Airlines to join the leadership of that airline. He only survived five
months before he was fired for being difficult to work with and being disruptive due to his temper
and demanding tasks. He had to wait five years because of a non-compete clause, and in 2000, he
launched the highly successful JetBlue Airways before he left in 2007. He is now engaged in a
new venture as CEO of the Brazilian domestic airline Azul (blue in Portuguese), founded in 2008.

His vision for what an airline should be and his leadership style set him apart from most other
leaders in the industry. Neeleman says: "1 have this huge goal that I want everyone that works for
Azul to say that this is the best job they ever had because 1 think that is central to customer
service and then 1 want every customer who gets off of every flight to say wow that was a great
flight probably the best I have ever had". He believes that success comes from changing people’s
lives and contributing to society rather than simply making money.

Neeleman was ousted in 2007 from JetBlue after the airline was caught in a wave of negative
publicity after it kept passengers in planes on the tarmac for seven hours during a storm.
Neeleman provided a very public and sincere apology. JetBlue instituted a much-publicized
Passenger Bill of Rights to ensure that its much-valued customers continue to remain loyal.
JetBlue still has daily flights to more than 50 destinations in the United States and Central
America.

Continuing to rely on the principles of its founder, the airline emphasizes teamwork and quick
decisions and implementation. Top executives and managers consistently interact with employees
and customers to listen and get feedback from them to keep addressing their concerns, a practice
Neeleman has also instituted at Azul. The attention to employees and customers has earned
JetBlue high ratings and its former CEO awards. Programs such as generous profit sharing,
excellent benefits, open communication, and extensive training all get the right employees in the
company and retain them. Neeleman not only provides the vision, but also knows to listen to
people who, on occasion veto his decisions. He says: “The way I channel the risk is that I
surround myself with people who are really smart and have a spine and can speak up and can
challenge you”. He believes that “If you treat people well, the company’s philosophy goes, they’ll
treat the customer well.”

Azul is made of much of the same mold as JetBlue: simple reservations systems, low prices, more
leg room, online Internet, and a TV in every seat. Neeleman is obsessive about staying in touch
with both customers and employees. He stops by the call center at Azul regularly, talks to the
trainees, and reminds his executives to talk to customers and those closest to them because “we
think we know what happens. But they really know”. He strongly believes that “it is the people
that make it happen”. Neeleman’s leadership style and the way he manages and magic in his
relationship with his employees seems to be continuing to work.
 Case (3): The Caring Dictator
Jack Hartnett, the president of Texas-based D.L. Rogers Corp., is a successful man. D.L. Rogers
owns 54 franchises of the Sonic roller-skating nostalgic hamburger chain, which generate S44
million in revenues for the company. Hartnett's restaurants make 18 percent more than the
national average, and turnover is incredibly low for the fast food industry, with a supervisor’s
average tenure at 12.4 years. He knows what he wants, how to keep his employees, and how to
run his business for high profit.

In a management world where everyone will tell you that you need to be soft, be participative, be
open to ideas, and empower employees, Jack Hartnett appears to be an anachronism. He runs his
business on the Sinatra principle: “My Way!” He tolerates little deviation from what he wants, his
instructions, and his training. He is absolutely sure he knows the best way, and more than one
employee is scared of disagreeing with him. He likes keeping people a little off balance and a
little queasy so that they will work harder to avoid his wrath. Hartnett even has his own Eight
Commandments, and he will fire those who break any one of them twice. The last Hartnett
commandment is, “I will only tell you one time.” Interestingly, he believes that his style show's
that he really cares about his people: "The success of our business is that we really care about our
owner-operators—we don’t have managers. Our No. 1 focus is to take care of our people.”

Hartnett restaurants run like clockwork. He does the top-level hiring himself and spends as long
as 10 grueling hours with prospective managers and their spouses. He wants to know about their
personal lives and their financial health and looks for right responses and any signs of shyness to
answer questions. Hartnett says, “I want them to understand this is not a job to me. This is a
lifetime of working together. I want partners who are going to die with me.” If you are one of the
selected few, you are expected to be loyal and obedient.

For all their trouble and unquestioning obedience and loyalty, D.L. Rogers’ employees and
supervisors find a home, a family, a community, and a place to grow. If you have problems with
your husband, like Sharon, the wife of one of the D.L. Rogers’ supervisors, you can call Jack. He
will listen to you, talk to your spouse, and send him home for a while. Hartnett says, “I don’t
want you to come to work unhappy, pissed off, upset, or mad about anything, because I don’t
think you can be totally focused on making money if you’re worried”. He pays his employees’
considerably above national averages, plays golf with them, and gets involved with their personal
lives. Hartnett wants to create a bond that lasts. A few years ago, he spent $200,000 to take 254
managers and their families to Cancún, Mexico, for four days. They got training on better time
management and marketing techniques, and on how to be a better human to society.

Hartnett also likes to have fun. But he also works hard. Eighty-hour weeks are common, and he
starts his days earlier than most. He is not above taking on the most menial jobs in the restaurants
and is willing to show the way, no matter what. His presence, his energy, and his unbending
confidence in “his way" make changes to people’s work habits. Hartnett has created an
organization that is consistent and that simplifies everybody’s life. He knows how to build
relationships with his employees that encourages them to work obediently and comfortably.