2. INTRODUCTIONMr. Bajaj ( June 10, 38) is recognized as one of
the most successfulbusiness leaders of India. He heads the Bajaj
Group of Companieswhich is a leader in a variety of manufactured
products and financialservices in India and abroad including
motorized 2 and 3-wheelers,home appliances, electric lamps, wind
energy, special alloy andstainless steel, cranes, forgings,
infrastructure development, materialhandling equipment, travel,
general and life insurance andinvestment, consumer finance &
asset management.
3. AWARDS AND ACHIEVEMENTS In 1975, he received the "Man of the
Year" award from National Institute of QualityAssurance Business
India honoured him as Businessman of the year 1985. Bombay
Management Association rewarded him for his service in the field
ofManagement, in 1990. On behalf of the French President Nicolas
Sarkozy, the French Ambassador Mr.JeromeBonn font presented the
honour of Knight in the Order of the Legion of Honour to theCEO of
Bajaj Auto, Rahul Bajaj. The French have numerous divisions in the
Order and thetitle awarded to Rahul Bajaj is of the highest
distinction. Rahul Bajaj Chairman, of Bajaj Auto Limited was
conferred the Alumni AchievementAward by the Harvard Business
School (HBS) from where he did his MBA in 1964, He was listed
twentieth on the Forbes "Indias richest 40" list of people with a
net worth ofUS$1.1 Billion For his contribution to Indian industry,
he was awarded the nations third-highest civilianhonour, the Padma
Bhushan, in 2001. He was elected to the Upper House of
Parliament(Rajya Sabha)(2006-10) Economic Times and Ernst &
Young bestowed their "lifetime achievement" awards on himin
November 2004. Rani Durgavati University conferred the degree of
Doctor of Letters (Honoris Causa) inMarch 2005.
4. PERSONALITY DETERMINANTS
5. HERIDITY "Given my family background, I knew I wanted to be
a businessman by thetime I was about 12," says Bajaj. His
grandfather had bought a steel milland started a sugar mill, and in
1945 his father founded Bajaj Auto, nowthe crown jewel in the Bajaj
Group, which numbers almost thirtycompanies in a variety of
industries. Due to such environment prevailingaround, his mind was
into business since the childhood days. He grew up in an
environment when the Indian freedom struggle was atits fiery
heights. The Bajaj family was truly nationalistic. Rahuls fatherand
uncle were involved in the freedom struggle, and had also been
jailedbriefly by the British Colonials for their patriotic fervour.
Rahuls fatherserved as a three time Member of Parliament under the
Congressgovernment. This is the reason he is not afraid of taking
the risks. He isoutspoken, confident and a man of his words
Jamnalal Bajaj was the firm believer in M.K Gandhi and so is Rahul
Bajaj.He is high on ethics as it is evident from fact that he has
never bribed anyofficial or has stolen any of the other companys
project.
6. SITUATION In the 1970s, India was a socialist state barred
by rules and regulations. As a result, therewas no entrepreneurship
and nothing could be done without government approval. At
thisdifficult time Bajaj became the CEO of Bajaj Auto Ltd in 1968.
In this environment, thecompany was limited to produce just 20,000
units a year. Supply and demand didntmatch. Hence, after placing
their order, customers had to wait for roughly ten years toreceive
it.To lower costs while improving the price and quality of the
products, he increasedproduction to avail Economies of Scale. He
ignored a government regulation andincreased volume by more than
the permitted 25 prevent of his licensed capacity. He was appointed
Chairman of Indian Airlines in 1984. This was the first instance
whensomeone from the private sector had been given this
responsibility. The initiation of Liberalization in India by the
then PM Rajiv Gandhi posed great challengesfor Bajaj Auto. It
brought the threat of cheap imports and FDI from top companies
likeHero Honda. Rahul Bajaj became famous as the head of the Bombay
Club, whichopposed this liberalization. Rahul Bajajs company was
rock-solid and he didnt feelthreatened to join hands with a rag-tag
band of men with completely different corporatecultures and ethics
but for Bajaj, the issues were simple. He felt that the government
hadnot allowed Indian industry to function freely for decades. When
opening up the economyand laying out the red carpet to foreigners,
it owed Indian industry the chance to put itshouse in order before
forcing it to compete against global giants.
7. SITUATION The slump in the sale of scooters and the downfall
of the stock market of 2001 hit thecompany hard. It was forecast by
some business analysts that Bajaj industries would haveto shut down
soon. But without losing hope Rahul Bajaj with his business
expertise re-established the battered company. He established
another factory in Chakan, invested inR&D and came up with
Bajaj Pulsar Motorcycle. Bajaj Pulsar is presently a leader in
itssector. Rahul Bajaj took over the charge of Bajaj Group in 1965,
under his leadership Bajaj Autohas grown to new heights year after
year. The turnover of Bajaj Auto has risen from amere Rs.72 million
to Rs.46.16 billion. He created one of Indias best companies in
thedifficult days of the license-permit raj.Rahuls pet project -
The Bajaj Chetak scooter was a huge success story. In 1980 withsome
relaxation in LCVs companys started entering Indian markets through
jointventures. Rahul had foreseen this, and had gone in for a
massive appointment of newdealers throughout the country. He also
initiated advertising campaigns to improve thebrand recall in the
minds of the customer.. His efforts paid off, and Rahul had ensured
thatBajaj retained its top spot in the scooter industry in India.
He had his share of low points in his life. His parting with the
Firodias and the Italianautomobile major Piaggio left a bad taste.
Rahuls spat with the Indira GandhiGovernment made the company
suffered as they were not allowed to expand theirfacilities to keep
up with the growing demand. The Union related problem at his
factory,which turned violent, raised a few eyebrows on the Bajaj
Management. In the 80s;analysts criticized him for sticking to his
knitting rather than diversifying, and forpreferring to pay hefty
taxes rather than taking advantage of dubious tax loopholes.
8. ENVIRONMENT Rahul Bajaj went to The Cathedral and John Conon
School. He graduated from St.Stephens College in Delhi in 1958 with
an honours degree in economics. Back inBombay, Bajaj did a two-year
stint at Bajaj Electricals, clocking in after morninglectures at
the Government Law College. He spent most of 1961-62 as a
juniorpurchase officer at Mukand and with some work experience
under his belt, he leftfor Harvard Business School in USA. He
joined Bajaj Auto as Deputy General Manager, in charge of the
Commercialfunction of the company. Rahul was made to involve
himself in almost alldepartments in the company including key
departments in the company likeMarketing, Accounts, Purchase, and
Audit etc. except manufacturing. Thecompany was gaining prominence
as the two-wheeler market had begun toexpand exponentially. Under
the guidance of Naval K Firodia, the Chief Executive of Bajaj Auto,
Rahulbegan to learn the nuances of the business.
9. 16 CATTELL FACTOR TEST
10. SOCIAL ASSERTIVENESS High Score- Uninhibited, Bold Low
Score- Shy, Withdrawn Rahul Bajaj Is high on this factorBecause as
seen in theincident of breaking the rule of the limited production
ofscooters he increased the production without any onespermission.
Therefore we can say that his nature is very boldand inhibited as
he is very resilient and gutsy. His statements about the kingfisher
airlines, and Rajat Guptashows his high social assertiveness.
11. WARMTH High Score- Supportive, Comforting Low Score- Cold,
Selfish Rahul Bajaj has been high on this factor as his speeches
heclearly mentions his views about the Indian economy and
hisconcern towards the citizens of his country and he also came
intopolitics to serve the people of the nation. And he also makes
hisemployees feel very comfortable while he talks to them. At the
time when Bajaj scooters were selling at a waiting periodof ten
years and were being sold at double the price in the blackmarket he
thought for the citizens of the country and did notincreased the
price of vehicle even the ball was in his court.Rather he decided
to increase the production to double and hewas even ready to go to
jail for doubling the production.
12. INTELLECT High Score- Analytical, Cerebral Low Score-
Instinctive, Unstable According to his interview all his decisions
are thoroughly analysedand are properly pertained to his brain due
to which Bajaj Auto the4th largest two wheeler manufacturer of the
world. And when askedabout getting into the four wheeler market he
just said that forgetting into such competitive market you have to
attain at least the2nd position in the two wheeler market.
According to Bajaj "If Bajaj Auto cannot be a world player in
itsfield, I do not deserve the right to diversify. You should
diversifyfrom a position of strength, not from a position of
weakness.
13. EMOTIONAL STABILITY High Score- Calm, Level Headed Low
Score- Irritable, Moody Rahul Bajaj is moderate on this factor as
seen in his interviewwith Karan Thappar he was easily irritated
when the conversationgot too personal and direct; but in other
interviews he was foundvery calm and quiet when answering the
questions. Rahul Bajaj is very short Tempered when it comes to his
ownethics but he is also very patient at times when it comes to
takingserious decisions.
14. INTROVERSION High Score- Private, Quiet Low Score- Open,
Friendly Rahul Bajaj is low on this factor as seen in his many
interviewsand speeches he is found to be very open and friendly and
hasportrayed himself as what he is from inside is from outside. The
editor of Business Standard T.N. Ninan has mentioned that"He uses a
hundred words when ten would do."
15. BIG FIVE PERSONALITY TEST
16. ABOUT THE BIG 5 PERSONALITY TEST In psychology, the Big
Five personality traits are five broaddomains or dimensions of
personality that are used to describehuman personality. The theory
based on the Big Five factors iscalled the Five Factor Model (FFM)
The Big Five framework of personality traits from Costa &
McCrae,1992 emerged as a robust model for understanding
therelationship between personality and various academicbehaviors.
The Big Five factors are: Openness (inventive/curious vs.
consistent/cautious) Conscientiousness (efficient/organized vs.
easy-going/careless) Extraversion (outgoing/energetic vs.
solitary/reserved) Agreeableness (friendly/compassionate vs.
cold/unkind) Neuroticism (sensitive/nervous vs.
secure/confident)
17. EXTRAVERSION High- Open and friendly Low- Quiet and private
Rahul Bajaj is high on extraversion as he is outgoing, talkative
andsociable. We can see this as Rahul Bajaj openly speaks about
what is on hismind. For example, when Vijay Malaya asked for
governmentsupport when Kingfisher was going down, Rahul Bajaj
openlyspoke against it. Also, Rahul Bajaj openly voiced his opinion
about being happyabout Rajat Gupta getting a lenient jail sentence.
He was also openly against liberalization in India.
18. AGREEABLENESS High- Empathetic friendly and helpful low--
Manipulative and self-centred Rahul Bajaj is moderate on
agreeableness. He is very helpful ascan be seen in the numerous
corporate social responsiblyinitiatives that Bajaj auto has taken
and also, Rahul Bajaj is always very concerned about his employees.
But, even though he listens to his subordinates, the final
decisionis always his.
19. CONSCIENTIOUSNESS High: Hardworking and reliable Low: less
goal oriented and laid-back Rahul Bajaj is high on
conscientiousness as it can be seen by thesuccess of the company.
From just a scooter manufacturingcompany Rahul Bajaj has
diversified the company intoautomobiles, electrical, insurance
,travel and finance. Rahul Bajaj took over the charge of Bajaj
Group in 1965, under hisleadership Bajaj Auto has grown to new
heights year after year.The turnover of Bajaj Auto has risen from a
mere Rs.72 million toRs.46.16 billion
20. EMOTIONAL STABILITY High- Level Headed and Calm Low- Moody
and Irritable He has moderate emotional stability. Sometimes he
gets very emotional looking at peoples problemsbut other times, he
does not move an inch. He lost control of his emotions as shown in
Karan Thaparsinterview in his show devils advocate.
21. OPENNESS TO EXPERIENCE High- Imaginative, sensitive,
intellectual Low- Incomprehensible Rahul Bajaj is high on this
factor as can be seen that when foreigncompanies came in and the
stock market collapsed in 2001, Butwithout losing hope Rahul Bajaj
with his business expertise re-established the battered company. He
established another factoryin Chakan, invested in R&D and came
up with Bajaj PulsarMotorcycle. Bajaj Pulsar is presently a leader
in its sector.
22. MAJOR PERSONALITY ATTRIBUTESAFFECTING OB Locus of Control
Machiavellianism Self-Esteem Self-Monitoring Risk Taking Type A and
Type B Personalities
23. LOCUS OF CONTROL The degree to which people believe they
are in control of theirown fate. Internals:Individuals who believe
that they control what happens to them Externals:Individuals who
believe that what happens to them is controlled by outside forces
such as luck or chance. I am a believer. I firmly believe that God
exists but I do not make a show ofthis belief. I do not pray at
temples, I do not follow rituals. But I do pray a lotalthough I do
not have a fixed time or place to pray.-RAHUL BAJAJ I belong to a
deeply religious family, so I have no reason not to believe in God.
Ialso believe in karma and the doctrine that man makes his own
destiny. Mykarma will determine my future. Also in his interview at
CNBC , he blamed Government and entry of othercompanies for his
companys downfall in late 1990s Thus Rahul Bajaj is an external
person.
24. MACHIAVELLANISMDegree to which an individual is pragmatic,
maintains emotionaldistance, and believes that ends can justify
means. .People high on this factor tend to be rash decision makers
and wouldnot give a thought on how their decisions would affect
others.Such individuals may some times not take decisions within
theframework of the organization. Rahul Bajaj is high on this
factor. He made a rash decision toincrease the production in 1967
when the government didnt allowhim to increase it. Without giving a
second thought that he couldbe jailed. But he too takes his own
decisions on his own withfeedback from employees. Also he didnt
diverse in other fields in 1980s due to which he
wascriticized.
25. SELF-ESTEEMIndividuals degree of liking or disliking of
themselves.People with lower self esteem generally lack self
confidence.High on self esteem tends to make a person goal oriented
andachievement oriented. Rahul Bajaj is high on this factor as he
is a goal oriented person andhigh on confidence. He is a person who
has the ability to call aspade a spade. He is outspoken. He turned
the Profits of thecompany from Rs.72 million to Rs.46.16 billion
today.He isextremely goal oriented and achievement oriented. He
made anexcellent company during license raj.
26. SELF MONITORING A personality trait that measures an
individuals ability toadjust behaviour to external situational
factors. People high on this personality trait would adjust
themselvesquickly to external environment. These people can control
theiremotions quickly. Rahul Bajaj was moderate on this factor. He
strongly opposedFDI in 1991 because he knew that it would bring in
cheaperimports of raw materials and there might be chances that
hiscompany wouldnt survive. When he saw scooters coming intothe
market in 80s he became aggressive on his marketingstrategies.
Handed over the company to his Son when he feltthat he wont be able
to compete in motorcycle market.
27. RISK TAKING Refers to a persons willingness to take chances
or risks Also refers to some levels of decision making. Whether he
/ she isdecisive or need external help for their decision making.
He was high on this factor as he took the risk of increasing
theproduction even though the government didnt permit it. He
wasdecisive in nature as he took the decisions on his own. After
theheart attack he started delegating his work to the senior
officialsof the company.
28. TYPE A PERSONALITY The theory describes a Type A individual
as ambitious,rigidly organized, highly status conscious, can be
sensitive, carefor other people, are truthful, impatient, always
try to helpothers, take on more than they can handle, want other
people toget to the point, proactive, and obsessed with time
management.People with Type A personalities are often
high-achieving"workaholics" who multi-task, push themselves with
deadlines,and hate both delays and ambivalence. Rahul Bajaj is a
Type A personality as it is seen in his interviewsthat he measured
his success in terms of numbers. Unlike others he spend his leisure
time with the employeeschildren in his factory premises. He is a
workaholic as he took the break of merely 4 days
between1964-1984
29. Myers-Briggs Personality TypeIndicator
30. Extraversion V/S Introversion He is an extrovert.
Entrepreneurs are not known for their sharptongues. But Rahul Bajaj
is. When wielded, sharp tongues may cutdown profits and invite
victimization from the government. He isvery brazen and outspoken
about his views. He is bold andaggressive when it comes to express
them. Bajaj likes to do things his own way. He has no inhibitions,
when itcomes to speaking his mind, and he does that remarkably
loudlyand defiantly. This characteristic made Rahul Bajaj famous as
thehead of the Bombay Club that vehemently opposed liberalization
inthe Nineties. Bajaj was never shy of announcing his friendship or
specialrelationship with Sharad Pawar, though the latter has lot
manypolitical foes in Delhis political circles. He chose to strike
rapport with his 20,000-odd employees, basicallywith his personal
equation and talking to them. At the factory, he isnot a
tight-lipped, inscrutable boss, but more an intimate friend,who
talks directly. This style of openness and cordiality, he
believes,enhances productivity, quality and smoother
functioning.
31. Sensing V/S Intuitive Sensing : The past few generations of
successful Indian businessmen did nothave formal education. They
were more known for native wisdomand robust common sense. They
sensed the changing directions of theblowing wind and adjusted
accordingly to make the best of thechange for their businesses and
personal fortunes. Rahul Bajaj had formal education in business
administration at theworld renowned Harvard University. Though he
inherited thecommon sense of the business family, his was a more
scientificapproach towards management. He relied on gathering data,
makingsurveys and studying the projections of the economy. When
economic liberalization became a reality in India and rival
HeroHonda made him bite the dust, Rahul Bajaj thought of
recoveringfrom the paralyzing blow by setting up altogether a new
world-classfactory in Chakan, near Pune, invested heavily in the
R&D and cameback to the market with Bajaj Pulsar Motorcycle.
Bajaj Pulsar is a bighit and currently a leader in the two-wheeler
segment. A scientific management approach made this possible, not
intuition.
32. Thinking V/S Feeling Rahul Bajaj cannot exactly be
described as a person, who was alwaysright or who was not
sentimental. He was sentimentally attached to theLicense &
Permit Raj. He had acquired an expertise on how to function inthat
system. Rather he had become a bit inert in the
protectedatmosphere. When the liberalization came in the Ninties,
he opposed itand spoke on behalf of the regressive elements in the
industry. Also, heescaped logic. He thought liberalization was
reversible. He was rathersentimental. But soon reasoning prevailed
over him. He fell in line. He toed the line ofhealthy competition
and innovation. He went to create a market leaderBajaj Pulsar
two-wheeler, braving a break-neck competition. When he took over
the reins of Bajaj Group in 1965, the turn over wasjust Rs.72
million. Now it has crossed Rs.46 billion. Now the Bajaj Group has
diversified interests ranging from automobiles,home appliances,
lighting, iron and steel, insurance, travel and finance.
33. Judging V/S Perceiving Rahul Bajaj changed his style of
decision making, when he tookover his family business, the Bajaj
group, in mid-Sixties. It was Rahuls grandfather Jamnalal Bajaj,
who had launched theBajaj Group. Jamanalalji was a close associate
of MahatmaGandhi and had an unwavering loyalty to the Gandhian
principles.Rahuls father, Kamalnayan Bajaj, served as a Congress MP
forthree-times. The whole family was honed in the Gandhianambience.
Rahul had to survive and grow in the ruthlessly negative ambienceof
the License & Permit Raj that was marked by
red-tapism,favoritism and corruption. It was urgent and must for
him toremould his style. He did it. Rahul Bajaj created one of
Indias best companies in those difficultdays, when entrepreneurship
and profits were considered to bedirty words.
34. ESTJESTJs are hardworking traditionalists, eager to take
charge in organizingprojects and people. Orderly and rule-abiding,
ESTJs like to get thingsdone, and tend to go about projects in a
systematic, methodical way. Theyvalue factual evidence over
conjecture, and trust their personalexperience. ESTJs are the
consummate organizers, and want to bringstructure to their
surroundings. They value predictability and prefer thingsto proceed
in a logical order. If chaos is present, the ESTJ often takes
theinitiative to establish processes and guidelines, so that
everyone knowswhats expected. The ESTJ wants to achieve efficient
productivity andtypically believes this is best accomplished when
people and systems arewell organized. ESTJs are usually outgoing
and enjoy upholding family andcultural traditions. They concern
themselves with maintaining the socialorder and keeping others in
line. ESTJs often take on a project managerrole at home as well as
at work, and excel at setting goals, makingdecisions, and
organizing resources to accomplish a task.
35. BLAKE & MOUTONSMANAGERIAL GRID The Blake and Mouton
managerial grid uses two axis. Concern for people is plotted
against the y axis Concern for work/production is plotted against
the x axis. Each axis ranges from 1(low) to 9(high).
36. MANAGERIAL GRID
37. LEADERSHIP STYLES The impoverished style (1,1)- In this
style, managers have low concern for bothpeople and production.
Managers use this style to preserve job and job
seniority,protecting themselves by avoiding getting into trouble.
The country club style (1,9)- This style has a high concern for
people and a lowconcern for production. Managers using this style
pay much attention to thesecurity and comfort of the employees, in
hopes that this will increaseperformance. The produce or perish
style (9,1)-With a high concern for production, and a lowconcern
for people. Managers using this style pressure their employees
throughrules and punishments to achieve the company goal. This
style is often used incases of crisis management. The team style
(9,9)- In this style, high concern is paid both to people
andproduction. As suggested by the propositions of Theory Y,
managers choosing touse this style encourage teamwork and
commitment among employees. Thismethod relies heavily on making
employees feel themselves to be constructiveparts of the company.
Middle of the road style (5,5)- Managers using this style try to
balance betweencompany goals and workers needs. By giving some
concern to both people andproduction, managers who use this style
hope to achieve suitable performancebut doing so gives away a bit
of each concern so that neither production norpeople needs are
met.
38. We analyzed Rahul Bajaj and he lies at(9,7) in the
managerial grid
39. CONCERN FOR PEOPLE On personal front, he is more a human
than a businessman. He is veryliberal to his employees and gives
them lot of independence and roomto learn, create and innovate
while at work. This makes his employeesinvolved and interested in
working in an open and friendlyenvironment, which is not possible
by coercion. This shows his empathytowards employees and his
relationship with them. As a great strategist and business analyst,
Rahul Bajaj visualized thenecessity of safe and hazel free
transport availability, for the averageIndian household. He played
key role in the design and development ofBajaj Chetak scooters in
India. This shows his concern towards common-man. On the contrary,
to the new leadership practices, Bajaj never believedin delegating
authority to all. He always keeps himself at the helm ofthings. He
gave a patient hearing to all others ideas. However, the
finaldecision was made at his discretion.
40. CONCERN FOR WORK Rahul Bajaj has established Bajaj Group as
top player in India with histremendous efforts and seamless hard
work. He is exhaustively workaholic and never likes to take a
break. In twenty years oflong stretch from 1965-1984, he took a
leave of just 4 days. This would probablybe the reason why Bajaj
Group emerged as a company of excellence with smoothand friction
free operations. Between 1978 and 1981, Bajaj Autos export
salesjumped from Rs63.5m to Rs133.2m. A euphoric Bajaj even ran a
campaign in Timemagazine, perhaps the first Indian advertiser to do
so. Under the helm of Rahul, Bajaj Group has diversified into
various businessverticals ranging from automobiles, home
appliances, lighting, iron and steel,insurance, travel and finance;
serving needs of all categories of consumers. RahulBajaj applied
his cross-pollinated ideas on the growth of the company and
turnedit around from a company of Rs.72 million to Rs.46.16
billion. This was possibleby striking decisiveness and
assertiveness of Rahul Bajaj even at turbulent timesand his great
business acumen. In 2001, recession and collapse of stock markets
hardly hit the sales of scooters.Some business analysts even
forecasted that there was every possibility that BajajAutos would
shut down. However, Rahul Bajaj with high determination and
greatperseverance; reinvented the company.
41. CONCLUSION Rahul Bajaj Is a leader who led from the front,
with his actions proving so. His thinkingand taking decisions based
on honesty has always paid off. For e.g., after the workersstrike
in 1979, there has been no other strike at the pune plant because
they reached aconsensus which was a win for both Bajaj and the
workers.Rahul Bajaj has always stayed true to his words. When he
says something, he sticks by it.He is not fickle minded. We can
learn to be honest and truthful. Bajaj has never bribedanyone in
his life. He did not give any bureaucrat a single penny to secure
licenses.Rahul Bajaj was also very hardworking and knows every part
of the company as at thebeginning of his career, he worked in
almost all departments of the Bajaj business. Bajaj knows how to
handle difficult situations in a good manner. When
liberalizationhappened and competitors like Honda came in, Rahul
Bajaj increased his advertising andhis R&D expenditure to
ensure that his products are not inferior to his competition.
Also,He made it through the parting with firodias and piaggio and
is still a very big nametoday. Bajaj also knew what was the right
thing to do when. When he was not getting licensesto produce more
vehicles, even though there was a lot of demand, he did not exploit
thesituation and charge a higher price. Instead, he found ways to
produce more. Lastly, it is the passion of Rahul Bajaj for his
company that inspires us. He led a scootermanufacturing company to
where it is today and the fact that he lives in his factorygrounds
even though he could afford a sprawling mansion, proves how much he
loves hiswork.