Management and Managerial Leadership - Case Study Example

 Introduction: A brief history and profile. Warren Bennis definition of leadership is focused much more on the individual capability of the leader: "Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential."(www.teal.org.uk) Vijay Mallya of United Beverages Group started with a four, to explain it in cricketing terms. This private airline based in Bangalore, India, began its operations on May 9, 2005 with a fleet of 4 Airbus A 320 aircrafts. Currently, the operations are confined to domestic routes only. Most of the important cities and metropolitan centers are covered in the net of the Airlines. Within a short period of less than two years, the Airline has excelled in every department of the operation. That is mainly due to efficiency and sterling services provided by the Airlines in all areas concerning air-traveling. Currently, its fleet strength is 8. It has some first time records. It is the first Airline in India, to operate with all new aircrafts. As per the current expansion plans, its total fleet strength should be 23, by the end of 2012, as per the orders worth $ 3 billion placed by it on June 15, 2005(www.iloveindia.com) Leadership in the Kingfisher Airlines: If there is no perfect discipline, carry on with the available discipline--this seems to be the style of working of this Airline employees. Obviously that’s what their leader’s instructions are. The private airlines have to work under lots of constraints in India. Inefficiency and lethargy seems to be the attitude of the government employees and this affects the functioning and image of the private airlines as well, because they are all functioning in a common terminal, a common arrival and departure lounge. The airplane may be immaculate, the staff is trained to be courteous, the in-flight service excellent, crew pleasant, seating very comfortable but if the terminals are not maintained properly, lighting is poor even in important and sensitive areas, what can the Private airline do about them especially the dreaded terminals at Mumbai and New Delhi? Aviation business is managed both by government and private airlines in India. Even with these limitations over which Kingfisher has no control, their presentation and quality is of high standard and it compares favorably with many international airlines. For the first time in the domestic travel sector, the Airline has introduced concepts like IFE and audio entertainment. The amenity kits and the earphones are provided free. Mostly I travel by this airline and I bring home the new earphone. My children anxiously wait for it. Even though it is a small gift, it is quite attractive and Kingfisher has contributed to a happy family reunion, when I arrive from the airport. On the technical front, the imagination of the leadership is quite evident. I had expected this aircraft(A320) to be slower than jets, but the travel time is almost the same as larger aircraft(B/737).Anticipating the possible technical/service problems of the passengers, Kingfisher staff greets you at the entrance to the terminal, escorts you to the counter and walks all the way to the security check. This is an effective screening to the government inefficiency in the terminal area, where normally the passenger has to hop from window to window, deal with the rude staff and pick up quarrels quite often. The internet ticket booking has mercifully solved the nightmarish experiences of getting the airlines phones connected and the hassle of all ambiguous information. You are freed from the famous Indian Red Tape, with your ability to pick up seats online. The enterprising leaders like Mr.Mallya and the top management of his company must have done the research and brain storming to provide this facility to the customers. An ethical business practice: The wise saying goes, the Customer is the King. But in reality, the modern business world, you will find most of the business organizations, methodically fleecing the customers, at each step of the transaction. Mislead the customers, with carefully worded hoardings and advertisements. (* conditions apply!) Here in the country, there is a silly practice of charging foreigners dollar fares, much above the local fare. Kingfisher charges the same fare for everyone. This facility has earned tremendous goodwill among the foreign customers. This Airline has the total traveler in mind, from the moment an individual decides to travel by air and finally leaves the terminal, on completion of the journey. Mr. Mallya is a rebel against procedures where ever it holds up progress and becomes the stumbling block against providing amenities to the customers. No business house is established to incur losses; it is established and expanded for profit. Mr. Mallya knows these fundamentals very well. He must have done his homework correctly when the visionary in him did the projections for its growth through the next one decade. Among the important theories of leadership, like Trait, Behavioral, Contingency and Transformational theories, Mr.Mallya falls in to the last category, whether he is aware of it or not. Most of the leadership qualities are inborn, some acquired with the keen sense of observation and anticipation that such an individual is endowed with. Such leaders can imagine a conflicting situation in the area of their choice and find their own solutions. They are not interested in precedents. They create precedents. What is theory after all? It is other man’s experience. Leadership text books are not dropped from the heaven. They contain the practical wisdom and response of the human beings to various situations. Those who have the capacity to take charge of the situation during the crisis, and act with the strong determination turning every crisis into an opportunity, are the real leaders. Such individuals have a vision and they have the capacity to convince others. Mr.Mallya did the same exactly. When he entered the area of aviation, he knew that it was an obstacle race. But he counted how many obstacles were there, and how he should tackle each one of them to emerge as the victor. The stiff competition of the national and international airlines, the government red tape, which he had to deal with, many non-routine situations, etc! He was not an expert of the aviation industry. He was an ace racer and had won many car races. He must have learnt the basic qualities that are needed for success in business from the races. How to negotiate a difficult turn and how to overtake other cars ahead of him and at the same time keep the balance of your own car intact! That’s what he did in the short span of two years, with his Kingfisher Airline. Transformation leaders are visionary leaders who seek to appeal to their followers ‘better nature and move them toward higher and more universal needs and purposes’ (Bolman and Deal 1997: 314) Mr. Mallya was not only a leader; he is a change agent in the aviation industry. He has proved with the two year results of the company that even in most difficult and discouraging circumstances, it is possible to achieve success, provided you have the will to grow. Therefore, he is the transformational leader. He formed a team and raised the level of awareness about the tasks ahead of them, he was clear about the significance and value of the intended outcomes and the ways to reach them. He raised the level of consciousness of his men, and only such individuals who are inspired can be expected to fit into the team and deliver goods. Even though self interest was there, when the occasion demanded the organizational interests get precedence, with them. This is the charisma of the transformation leader. “Charisma is, literally, a gift or grace or of God. (Wright P, 1996) Motivation: Motivation can be defined as a concept used to describe the factors within an individual which arouse, maintain and channel behaviour towards a goal. Another way to say this is that motivation is goal-directed behaviour. (opax.swin.edu.all) Motivation is a two-way traffic. What was the motivation for Mr. Mallya at the aviation sector and what was his plan of motivation to his would-be clients? He must have drawn out a clear cut strategy as regards both. Just compare the situation of the aviation industry in India, to that obtaining in other advanced countries. The statistics will give the clue as to why the aviation-entrepreneurs like Mr. Mallya think the way they think. They see a clear, vacant sky. India’s all airlines put together, including the public sector giants, Air India and Indian Airline, own less than 200 planes. In USA, just one airline has as many as 500 aircraft. Aviation industry watchers see a great future for low-cost flying, a concept that has been introduced recently, and they are sure to compete not only with other airlines, but the upper and AC class train seating. “The potential of low-cost flying in the aviation sector is reflected by the fact that in the last six months the country’s private airline firms have placed orders for 250 aircraft. This is 43 per cent of the total global orders for Airbus and Boeing. The concept of low-budget flying initially originated in the West and was quickly picked up in the East Asian countries.”(www.tribuneindia.com) Within six months of the inauguration of the new venture Kingfisher Airline, Mr.Mallya was putting to practice, the theory of motivation. He introduced Special Fares for the Indian Armed Forces, Central Government and Public Sector Employees. With one stroke Mr.Mallya created a vast and solid base of passengers for his Airlines; at the same time the Airline earned the good will of the decisions makers in the Indian Administration, both at the State and Central Levels. The fare structure was low and competitive. Sharing the motivation behind the launch of reduced airfares, Mr. Manoj Chacko, General Manager, Sales, Kingfisher Airlines said, “Every single day, the members of our armed forces and their families continue to demonstrate courage, commitment and great sacrifice on behalf of their country and their fellow citizens. Similarly, members of government departments around the country perform a thankless task. Kingfisher Airlines is pleased to extend these special fares in admiration and appreciation for all they are doing”. (in.biz.yahoo.com) The rest is history. It won the first Indian Airline to win the prestigious, 'New Airline of the Year 2005' award, in Asia Pacific and Middle East, from Centre for Asia Pacific Aviation (CAPA) within just six months of operations. A few years ago Mike Clasper, the then President of Procter and Gamble, had made this prediction. "I would label the consumer of 2025 in three ways: more demanding, wiser and more worried" Mr. Mallya knew that small things made the air-traveler happy and he drew the motivational chart for the passengers accordingly. Kingfisher Airlines was the first to have attendants who picked up your baggage even as you were getting down from your car. “A few days ago at 5.40 a.m. as I was standing groggily in a long queue, waiting my turn, I was quickly and happily awakened by the sight and action of a Kingfisher attendant who came to me, switched on his Blackberry, printed out my boarding card and handed it to me with a smile. The moments of truth in airline travel are: Making a reservation, getting tickets, Boarding, Flying and Retrieving baggage. At all these crucial junctures, Kingfisher men spring surprise for you with their smart work. (www.blonnet.com) There are dozens of theories of motivation, but it is difficult of group Mr.Mallya of Kingfisher Airline with any one theory. In fact, these theories are mere academic exercises. The real entrepreneur surpasses all these theories and develops his own style. It is just like an ace foot-ball player racing towards the goal with his short passes and finding his way through the net of opposing players. Only when he hits the goal, we understand the plan behind his passes. To me, at appears, Mr.Mallya is much near to the ‘Acquired Needs Theory.’ As per this theory, an individual seeks power, achievement or affiliation. He can also be associated with ‘Control Theory’ (one seeks to control the world around), ‘Expectancy Theory’ (motivated by desirable things we expect we can achieve) etc. But it is futile to club achievers under the banner of any one theory. Achievement, Affiliation and Power are part of the Acquired Needs Theory. Conclusion: In fine, leadership and motivation means to have vision and give direction. To the employees as well as the customers! Leaders tend to be identified by position. A good business leader can as well be a good political leader. Top leaders are brilliant among the brilliants, and therefore they are there. They are the focus for our answers and solutions. They provide the correct direction to the confused. When we are not in a position to solve the problems, leaders make it easy for us. They have some special qualities that give them a distinct identity. In fact, when the Kingfisher Airline was in the pipeline, none in the aviation industry thought that it was a wise decision. But Kingfisher under the dynamic stewardship changed the contours of the aviation industry. The industry also provides best of the employment opportunities both for young boys and girls. As for the changed scenario, says Ramani, a faculty member at Air Hostess Academy, who worked with Indian Airlines for 33 years, “When I started working as an air steward, only people from a certain class used to fly. …sometimes, I would find only celebrities on flights. But flying has become very cheap. Anybody and everybody can afford to fly now.”(Kamayani Singh, 2007) …..anybody and everybody can afford to fly now-Kingfisher Airline has made it possible, and this was visualized by Mr.Mallya yeas ago. References: www.teal.org.uk, Retrieved April 4,2007. www.iloveindia.com, Retrieved April, 4 2007. Bolman, L. G. and Deal, T. E. (1997) Reframing Organizations. Artistry, choice and leadership 2e, San Francisco: Jossey-Bass, p 314 Kamyani Singh, Many have not flown before but they are reaching for the sky, The Times of India, dated April, 4,2007,p.2) Wright, P. (1996) Managerial Leadership, London: Rout ledge, p.194 www.tribuneindia.com, Retrieved April 4, 2007. in.biz.yahoo.com, Retrieved April 4, 2007 www.blonnet.com, Retrieved April, 4, 2007 www.opax.swim.edu.au, Information Technology and Management. Read More