Remembering Ratan Tata’s leadership style: How can today’s HR leaders seek inspiration from it?

Ratan Tata, one of the most revered business leaders in the world, has left an indelible mark not on the global business landscape. His leadership of Tata Group transformed it into a multinational conglomerate, while his values-driven approach became a model for leadership worldwide.

As the world mourns the loss of Ratan Tata, a global visionary and former chairperson of the Tata Group, his ethical approach to business continues to inspire many. His legacy encourages others to rethink their management strategies.


A snapshot of Ratan Tata's inspiring leadership journey

Born on December 28, 1937, Ratan Tata graduated from the University of California, Berkeley, with a degree in architecture and structural engineering. He joined the family business in 1962, starting as a worker on the shop floor of Tata Steel, where he gained invaluable hands-on experience.

Ratan Tata was appointed chairman of Tata Group in 1990, a position he held until 2012, during which he led the conglomerate through significant expansions and transformations. Under his stewardship, the group expanded significantly, acquiring prominent brands like Jaguar Land Rover and Corus Steel.

Tata was known for his values-driven leadership, which emphasised ethics, integrity, and corporate social responsibility. His commitment to innovation and inclusivity set a standard for businesses worldwide, inspiring countless leaders to adopt a similar approach.

Tata championed initiatives that supported education, healthcare, and rural development, reflecting his belief that businesses should contribute positively to society. For example, Tata Consultancy Services (TCS) has been actively working with school students in different Southeast Asian countries through technology education programs. These initiatives aim to enhance digital literacy and provide students with the skills needed for the future job market.

Let’s explore a few key principles from his life that today’s HR professionals can integrate into their practices.


How can HR leaders incorporate Ratan Tata’s leadership style in their practices?

HR leaders and executives across the globe can learn from Ratan Tata’s values-driven leadership to create more inclusive, dynamic, and purpose-driven organisations. Here’s how to bring these lessons into everyday practice:

• Become a selfless leader: Ratan Tata's selfless leadership is evident in his philanthropic contributions, with nearly 65% of his wealth donated to charitable causes. A prime example is his extensive support for healthcare, education, and rural development through Tata Trusts. His commitment to giving back shows his belief in creating a lasting social impact over personal gain.HR leaders can adopt this approach by encouraging employees to engage in community service and developing corporate initiatives that prioritise social good alongside business objectives.

• Foster empathy and approachability: One of the most essential elements of Tata’s leadership style is empathy. For instance, he once missed a meeting with the UK's Prince Charles to take care of his ailing mother. This incident highlights how he prioritised personal relationships and well-being over professional commitments. Despite his busy schedule, Ratan Tata was also known to personally visit employees who were unwell or going through tough times. Leaders who genuinely care about their employees build trust and loyalty. HR leaders can foster this by creating a culture of openness, where employees feel comfortable sharing concerns.

• Create a balance between business and social purpose: Ratan Tata’s focus on social responsibility should serve as a guiding principle for today’s leaders. Under his leadership, one notable initiative was the “Tata Motors' Affordable Car Initiative,” where Tata Nano was marketed as the world's cheapest car, designed to provide affordable transportation for the masses. This initiative aimed to improve mobility and quality of life for low-income families. Another notable effort is the Tata Consultancy Services (TCS) Seniors Lab in Singapore, which uses IoT technology to enhance seniors' well-being and independence. HR leaders can similarly adopt CSR initiatives that align with company values and contribute to societal good.

• Take calculated risks for long-term success: Tata’s leadership reminds us that leaders must be willing to take risks that benefit the organisation in the long term. For instance, Tata’s acquisition of Jaguar Land Rover in 2008, was a high-stakes decision during the global recession. While many doubted the move, Tata’s foresight paid off as the brand became highly profitable, illustrating his belief in taking calculated risks for long-term gains. HR leaders can encourage this mindset by fostering a culture of innovation and calculated risk-taking within the company. They can introduce tailored training programs that encourage innovation and adaptability in the workforce.

• Embed integrity-driven style into business practices: Ratan Tata’s unwavering commitment to ethical business practices has been a cornerstone of his leadership. One well-known example is Tata’s refusal to pay bribes during the 1990s when launching Tata Motors' passenger car business. Despite facing significant delays and challenges, Tata stood firm, refusing to compromise on ethical business practices. Executive-level leaders can build a strong culture of integrity by embedding these values of ethical decision-making into the company’s core. They can achieve it by setting clear expectations, offering ethics training, and rewarding integrity-driven behaviour.

• Inculcate inclusive approach with a focus on hyper-localisation: Tata’s ability to lead diverse teams while being attuned to local contexts offers a valuable lesson for HR leaders. For example, Tata Steel launched the Tata Steel Academy in Malaysia, not under Ratan’s leadership but following his principles, to provide training and development programs for local employees and communities. This initiative aimed to enhance skills and create job opportunities, contributing to the local economy and workforce development. HR leaders can implement this approach by developing recruitment practices and creating policies that reflect the unique cultural nuances of their workforce. This will help build teams that are both diverse and locally grounded, enabling innovation and effective responses to market demands.

Wrapping it up:

Although Ratan Tata’s demise marks the end of an era, his influence will continue to encourage leaders to uphold the values he exemplified throughout his life. By fostering empathy, balancing business success with social responsibility, and embracing calculated risks, today’s leaders can create organisations that not only thrive but also make a lasting positive impact on society.