Answer To: Assessment- Integrative Leadership Paper Due Date- 9th June 2019 Do relevant research and write a...
Soumi answered on May 29 2021
Running Head: LEADERSHIP PRACTICES IN ADANI GROUP 1
LEADERSHIP PRACTICES IN ADANI GROUP 13
LEADERSHIP PRACTICES AND ASSOCIATED ISSUES AT ADANI GROUP
Table of Contents
Introduction 3
Leadership Practices and Issues 3
Family Involvement in Executive Board 3
Ambitious Vision Attaining 5
High Preference for Profit 7
Abidance of Autocratic and Situational Leadership 8
Conclusion 10
References 12
Introduction
The leadership practices of an organisation determine the effectiveness of its used leadership styles in context of its set of vision and missions. The leadership practices are not entirely regulated and shaped by theoretical learning, as the culture, the persons acting as leaders and their perspectives play important role in giving leadership practices their organisational exclusivity. The leadership practices of an organisation are responsible for both its effectiveness of business management and profiting as well as persistent issues lurking within. The leadership practices are shaped by the internal as well as external business environment and in the given discussion; the impact of leadership practices at Adani Group and the associated issues have been discussed using logic and critical assessment.
The Adani Group was established in 1988 and from its inception the company has transitioned into a fully growth corporate giant although have started facing issues, such as family ethics in business, over ambitious projects leading to high debt and compatibility issues with the government norms and public perceptions. In the current discussion, keeping the leadership practices of Adani Group and the identified issues, the performance, potential and association of the issues are discussed, which gives a better understanding of the chosen organisation.
Leadership Practices and Issues
Family Involvement in Executive Board
The Adani Group started its business in 1988 under the ownership as well as leadership of Gautam Adani and it was evident that the investment of the money for the business was managed and invested by Gautam Adani himself, taking a huge risk for entering the market. As the company grew in size and developed its branches and businesses, the Adani family members entered the business and took high executive positions in the managing board of the company. As mentioned by Williams Jr, Pieper, Kellermanns and Astrachan (2018), including family members in family owned businesses are normal and is a privilege that the owners gain as they take the initial risk of establishing the business. In case Adani members getting involved in the executive board gave Gautam Adani a great degree of control over the decision making power of the company, which generates the scope of maintaining the vision and mission of the company.
The Adani family members support Gautam Adani’s decisions in the business, which gives his leadership arbitrary power and it is a distinct feature of the leadership at Adani Group and a characteristic of its leadership practices. The inclusion of the family members also helps the Adani family to have a higher number of company shares than that of independent executive officers and shareholders. Along with Gautam Adani who is the chairman of Adani Group, family members such as Rajesh Adani, Priti Adani, Pranav Adani, Karan Adani, Sagar Adani hold the position of Managing Director, Chairperson of Adani Foundation, Director of Adani Enterprise Limited, CEO of Adani ports and Executive Director of AGEL, respectively (Adani, 2019).
A closer inspection of the involvement of the family members into the organisational executive groups hints at potential issues arising from the leadership practice at Adani Group. Firstly, the involvement of the family members into the executive boards are done based on family relationships and is not backed up by educational qualification or skill displaying at management. As supported by Astrachan, Botero, Astrachan and Prugl (2018), inclusion of family members who lack the skill for business management undermines business potential, as the family members in power contribute to the formation of decision making, which gives them the authority to direct the organisational direction on their will, hampering the interest of the independent shareholders and executives.
The involvement of the family members also makes the leadership power distribution biased and the scope of betterment remains limited as the independent executives only offer their capital and share for the execution of the will of the family members. The nature of the family involvement at Adani Group has made the company face lesser number of investors as the family control over the decision making of the business, especially the chairperson Gautam Adani, has reduced the flexibility and inclusive business culture of the company.
The inclusion of the family members on executive board has also led to the issue of money laundering and tax evasion on the upper management levels, which is tarnishing the organisational image and public relationships, making many investors deviate from investing in the company (The Caravan, 2018). It can be rationally argued that including the family members as prime shareholders of the company and making the decision making board of directors occupied with independent executes under the leadership of Gautam Adani could have solved the issues of its leadership practice.
Ambitious Vision Attaining
Another major leadership practice retained at Adani Group is the ambitious project attaining. After the inception of the company, the leadership has always been very keen in expanding its business and while positioning consistency of its existing business in second place. As Adani Group found success in its business, it started to transit from one business to another, keeping only the profitable business sections as its branch of businesses. In the early 1990s and in...