Leadership Of Your Organization Commerce Essay

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Leadership is the process of influencing and supporting others to work towards the achievement of group goals. It is the process of influencing others to achieve group or organizational goals.


According to Koontz and O'Donnell, "Leadership is the ability of a manager to induce subordinates (followers) to work with confidence and zeal."

According to George Terry, "Leadership is the activity of influencing people to strive for mutual objectives."QUALITIES AND CHARACTERISTICS OF LEADERSHIP:-




Initiative and Innovative


Emotional Maturity



Effective Communication

Dynamic Personality

Vision and Foresight

10. Flexibility

Acceptance of Responsibility

Knowledge Of Human Skill

Administrative Ability

Technical Knowledge

Ability to Deal with People

Ability to Judge and Decide Quickly


Traitist Leadership Theory

Situational Theory

Group Theory

Behavioural Theory of Leadership

Composite Leadership Theory


Fielder's Contingency Theory:

Leadership as being more flexible - different leadership styles used at different times depending on the circumstance.

Suggests leadership is not a fixed series of characteristics that can be transposed into different contexts.

Path-Goal Theory:

The advocates of this theory emphasis that managers need to rely on four different leadership styles:





Effective Leaders can increase subordinate motivation.


Autocratic Style

Democratic Style

Laissez-Faire or Free - Rein Style

Functional/Intellectual Style

Bureaucratic Style

Situational Style

Oil & Natural Gas Corporation

The Oil and Natural Gas Corporation Limited (ONGC) was the largest oil exploration and production (E&P) company in India. The company enjoyed a dominant position in the country's hydrocarbon sector with 84 per cent market share of crude oil & gas production. Around 57 per cent petroleum exploration licenses in India for over 588 thousand sq. km belonged to ONGC.

The company was the first to achieve Rs 100 bn net profits in the Indian corporate history. ONGC's major products included petroleum, crude natural gas, liquefied petroleum gas (LPG), kerosene and petrochemical feedstock. For the fiscal year ended 2002-03, the company reported gross revenues of Rs 353.872 bn and net profit of Rs 105.293 bn. With market capitalization of US$ 15 bn, ONGC was ranked 260 in BusinessWeek's Global 1000 list of the world's top companies by market value, for 2003-04. Since the mid 1990s, ONGC had faced the problem of declining crude oil and gas production. The company made efforts to consolidate its position in the business by acquiring foreign oil equity through its wholly owned subsidiary, ONGC Videsh Limited (OVL).

OVL was formed to help ONGC secure a strong foothold in the international oil market. With the acquisition of Mangalore Refinery and Petrochemicals Limited (MRPL), ONGC became the first integrated oil company in India.

With ONGC's core business showing signs of stagnation, the company chalked out a massive diversification plan to go into downstream activities such as LNG marketing, diesel, naphtha and kerosene. ONGC was also contemplating forward integration opportunities in gas, petrochemicals and the power sector.

The company also announced its intentions of entering the insurance and shipping business in the next couple of years. However, ONGC's diversification plans received a major setback when the Government of India (GoI) announced that the company should stick to its core business rather than venturing into 'unrelated' areas.


ONGC which was incorporated on June 23, 1993 is a public sector petroleum company in India. It is the most valuable country in India by market capitalization contributing 77% of India's crude oil production and 81% of India's natural gas production. It is the highest profit making corporation in India. It was set up as a commission on August 14, 1956. It is involved in exploring and exploiting hydrocarbons in 26 sedimentary basins of India. It produces about 30% of India's crude oil.

Sales $9.78 billions

Profits $2.16 billions

Assets $19.18 billions

Market Value $27.86 billions

Employees 38,033

ONGC has a unique distinction of being a company with in-house service capabilities in all the activity areas of exploration and production of oil & gas and related oil field services. Needless to emphasize, this was made possible by the men & women behind the machine. Over 18,000 experienced and technically competent executives mostly scientists and engineers from distinguished Universities / Institutions of India and abroad form the core of our manpower. They include geologists, geophysicists, geochemists, drilling engineers, reservoir engineers, petroleum engineers, production engineers, engineering & technical service providers, financial and human resource experts, IT professionals and so on.


To be a world-class Oil and Gas Company integrated in energy business with dominant Indian leadership and global presence.


1. World Class

Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people.

Imbibe high standards of business ethics and organizational values.

Abiding commitment to safety, health and environment to enrich quality of community life.

Strive for customer delight through quality products and services.

2. Integrated In Energy Business

Focus on domestic and international oil and gas exploration and production business opportunities.

Provide value linkages in other sectors of energy business.

Create growth opportunities and maximize shareholder value.

3. Dominant Indian Leadership

Retain dominant position in Indian petroleum sector and enhance India's energy availability.



Mr. Subir Raha Receives CHEMTECH-CEW's Achiever Of The Year Award

Mr. Subir Raha bags SCOPE Individual Excellence Award for his outstanding contribution to Public Sector Management.

Mr. Subir Raha has been awarded as the "CEO Business Leader of the Year" in recognition of his Leadership Excellence at Indian Leadership Summit.

Was awarded the "Grid Leadership Award" for his outstanding contribution in the filed of Corporate Management from Dr. P.N. Singh Foundation.

Assumed badge-of-office of the President of the International Federation of Training & Development Organizations, Lisbon, Portugal, May 03, 2003.

Mr. Raha secured the individual award for "Excellence in Creativity & Innovation" in 2002.

Golden Peacock Award for Excellence in Corporate Governance was received by Mr. Raha on behalf of ONGC from Lord Swaraj Paul on 2nd in recognition to the contribution towards Corporate Governance, and helping in giving back to the society the best services and products with transparency and accountability.


The Following Leadership Qualities and Style followed by Mr. Subir Raha as per my study are as follows:

Innovative and Creative: -

Professionals like Mr. Subir Raha think beyond the obvious and encourage their people to do the same. They ensure that employees have a peen ness for exploration and keep an open mind. It helps the organization to always be ready to look at opportunities for betterment and the search for new ideas, new practices, new products and new ways of doing things better goes on continuously.

Customer Orientation: -

Every professional has two sets of customers whom he must try to satisfy to the fullest possible extent namely, the external customer (the purchasers, the society at large) and the internal customer (the employees, his subordinates, peers and bosses). Professionals like Mr. Raha have ensured that the internal customers are given their due and takes care of the needs, desires and problems. Thus he has build up a customer orientation within the organisation too which is quite infectious and pervades the entire organisation.

3. Stop managing, start leading and cultivate managers: -

He disliked the notion of management. Most managers in his view over- managed. Those who over managed helped to create a bureaucratic environment, which according to Mr. Subir Raha kills large companies. He decided that ONGC's leaders had to change their management styles i.e. too much controlling and monitoring .The only way to last at ONGC was to get on board, to become a lean leader, to adapt oneself to the company's value and culture.




Public Relations is as old as human civilisation. It has existed in one form or the other. There are umpteen examples of its varied form, content and end use. ONGC is committed to provide the best standards of Corporate Governance to all the stake-holders. The Corporate Governance process in ONGC is focused on the key business objectives:

Creating Value

Strengthening Oil Security

Maximizing Return to Investors

Ensuring best feasible HSE practices

Blending prudence of a State Enterprise with agility of a Trans-national

The management must have the operational freedom to pursue the Business Goals within a definitive framework of accountability. The practice of Corporate Governance, therefore, is based on these principles:

Independent verification of financial reporting and reserves accounting

Protection of shareholders' rights and proactive investor relations

Transparent and timely disclosure of all material aspects of the Company's

operations and performance.

In recognition of excellence in Corporate Governance, the Institute of Company Secretaries of India conferred the 'ICSI National Award for Excellence in Corporate Governance', in the public sector, for the year 2003 to ONGC.


Oil and Natural Gas Corporation Ltd (ONGC) may go back to selling all its value-added products, especially naphtha, only through public sector marketing companies. ONGC has been selling, even exporting, naphtha on its own for the last two years after the failure of the PSU companies in effectively marketing its products.

ONGC had begun selling naphtha on its own after delays in lifting its product by PSU marketing companies, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL).

Naphtha being a deregulated commodity, ONGC's product has remained low on the priority list of PSUs trying to push their own stocks, leaving the company with no other choice but to export. As a result, the company set up its own marketing cell which carried out independent sale and exports of naphtha for ONGC.

But with renewed focus on strengthening its position as an exploration and production company, ONGC may move away.


HR Vision: -

"To attain organizational excellence by developing and inspiring the true potential of company's human capital and providing opportunities for growth, well being and enrichment".

HR Mission: -

"To create a value and knowledge based organization by inculcating a culture of learning, innovation & team working and aligning business priorities with aspiration of employees leading to development of an empowered, responsive and competent human capital".

HR Objectives: -

To develop and sustain core values

To develop business leaders for tomorrow

To provide job contentment through empowerment, accountability and responsibility

To build and upgrade competencies through virtual learning, opportunities for growth and providing challenges in the job

To foster a climate of creativity, innovation and enthusiasm

To enhance the quality of life of employees and their family

To inculcate high understanding of 'Service' to a greater cause  HR Vision, Mission & Objectives

HR Strategy: -

To meet challenging demands of the business environment, focus of the HR Strategy is on change of the employees' 'mindset'

Building quality culture and resources

Re-engineering and redeployment for maximizing utilization of resources

To build and upgrade competencies through virtual learning, opportunities for growth and providing challenges in the job

Re-strengthening mutual faith, trust and respect

Inculcating a spirit of learning & enjoying challenges

Developing Human Resource through virtual learning, providing opportunities for growth, inculcating involvement and exposure to benchmarking in performance

Role Of HR: -

Alignment of HR vision with corporate vision

Shift from support group to strategic partner in business operations

HR as a change agent

Enhance productivity and performance by developing employee competency and potential

Developing professional attitude and approach

Developing 'Global Managers' for tomorrow to ensure the role of global players

Measuring HR Performance: -

HR Parameters have been incorporated in the MOU by ONGC since 1994-95, to systematically and scientifically evaluate effectiveness of HR Systems, which enables and facilitates time bound initiatives.

Transformation of ONGC-HR as facilitator and Change Agent for Pilot Implementation at WRBC

ERP for HR-Project SHRAMIK

Training and development

Action Plan and Implementation for achieving HR mission and objectives

Roll out of Succession Planning Model for identified key positions

HR audit

IR for enhancing efficiency and productivity

Introducing the concepts of mentoring and knowledge management

Conducting a Climate Survey to identify areas for OD interventions

Motivated Team: -

HR policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant & self-driven team. The Company cares for each & every employee and has in-built systems to recognise & reward them periodically. Motivation plays an important role in HR Development. In order to keep its employees motivated the company has incorporated schemes such as Reward and Recognition Scheme, Grievance Handling Scheme and Suggestion Scheme.

Incentive Schemes to Enhance Productivity

Productivity Honorarium Scheme

Job Incentive

Quarterly Incentive

Reserve Establishment Honorarium

Roll out of Succession Planning Model for identified key positions

Group Incentives for cohesive team working, with a view to enhance productivity


After going through so much of raw data and statistics about the company, I came to the conclusion that it is one of the best managed company's of India. Being a PSU has its own advantages as well as disadvantages but the craftsmen of the company have set aside the disadvantages and have conquered the Oil and Natural Gas sector. Mr. Subir Raha has made sure that the company has always remained the 'Numero Uno' in the Oil and Natural Gas sector and by his commanding leadership he has helped the company out of its 'Gestation' period as well as through its 'teething troubles' with ease. The company has gone through several losses like for instance when a complete OIL RIG at the Bombay High platform was destroyed in major fire due to a ship collision, but he has made sure that the company never went into losses. Mr. Raha has seen that the company not only performs well in Operation but also at the Stock Market which has made all its investors very happy and turned ONGC into one of the top trading companies at the BSE as well as the NSE.

Mr. Raha has inculcates the style of "Democratic Leadership" which has helped cut his work out in such a large organization. The faith he showed in his managers as well as other employees has paid off really well. He used many employee motivating tactics to keep his employees satisfied with their jobs. Even though ONGC is a PSU, due to the leadership of Mr. Raha the company has never faced problems of labour unions as well as strikes and other issues.

Mr. Raha is truly a great leader and he has proved his worth to the government officials who instilled faith in him and gave him the opportunity to lead the organization. Whoever carries the legacy of Mr. Raha might find it very easy to lead the organization in whatever phase it might be or will be going through. The organization is strongly built on the principles of Leadership , Motivation and Faith.