Relationship between Learning Organization and Transformational Leadership: Banking Organizations in India
2008; Canadian Center of Science and Education; Volume: 1; Issue: 1 Linguagem: Inglês
ISSN
2321-8916
Autores Tópico(s)Organizational Learning and Leadership
ResumoINTRODUCTION The 21st century is characterized by significant changes in the business environment. Organizations are faced with a turbulent environment and they need to transform themselves so as to be able to confront the shifting needs of the new environment, more demanding customers, and smarter workers, anticipating ability to changes, accelerating the development of new products, processes and services. Competitiveness, thus, can no longer continue with traditional management approaches which lead to change in organizational setting and leadership as well. Several changes in the external and internal environment of the organizations act as a driver for their transformation (Singh, 2005). Furthermore, global competitiveness has created tremendous opportunities for organizations as the markets have expanded across the national boundaries. This global competition is forcing organizations to adopt new standards and practices. Due to globalization and advances in information technology, people all over the world share common tastes in consumer products, food, clothes etc. This has resulted in production of standardized products which meet certain quality standards. The expectations of today's workers are also undergoing significant changes. Employees need skills to be more creative and technically competent to be able to work with new technologies. Therefore leaders have to attract and motivate; reward, recognize and retain; train, educate and improve performance of these workers. Leaders must cater to the changing needs and expectations of the workers, therefore leading to the evolution of learning organization. To thrive in this dynamic environment most organizations in India are transforming to learning organizations. With a change in the global scenario, Indian organizations are also facing a changing environment, which have significant implications in their performance. Studies have shown that leadership style of leaders play an important role in this metamorphosis process. In India there is a growing interest in service sector as business is growing in areas like information technology, software marketing, telecommunications, banking, airlines etc. This raises questions on how quickly can organizations take advantage of these new opportunities and learn to sustain a competitive edge. At the same time how leadership helps to foster in planning a productive and competitive environment requires to be investigated. Indian banking sector is at a watershed today with the Indian economy moving on to a high growth trajectory, consumption levels soaring and investment riding high. Several Indian banks are pursuing global strategies as Indian companies are globalizing and people of Indian origin are increasing their investment in India. The Indian banks have also been doing exceptionally well in the financial sector with the price-to-book value being second only to china, according to a report by Boston Consultancy Group (Brand Equity Foundation, 2008). Banking sector in India is generally fairly mature in terms of supply, product range and r each. With respect to the rural India the penetration still remains a challenge for the private sector and foreign banks. Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. Indian banks are one of the most technologically advanced with vast networks of branches empowered by strong banking systems, and their product and channel distribution capabilities are at par with those of the leading banks in the world, says a survey by McKinsey (Brand Equity Foundation, 2008). As the Indian banking industry continues its rapid growth along with rise in financial services penetration in the Indian economy, the industry's profit is likely to simultaneously surge a head. According to a report by Boston Consultancy Group, the profit pool of the Indian banking industry is estimated to increase from US$ 4. …
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