Communication Effectiveness: A Case of Narayana Murthy's Resignation from Chairmanship of Bangalore International Airport Limited

Abstract

In the month of October 2005, Narayana Murthy, the Chairman of Infosys Technologies Limited resigned from the Chairmanship of Bangalore International Airport Limited (BIAL). The issue came into focus as the former Prime Minister Devegowda made comments referring to Mr. Murthy's contribution as inadequate for the development of BIAL. As an aftermath, the Finance minister and the state Chief Minister are said to have persuaded Murthy to withdraw the resignation. But Murthy did not change his mind and resigned. Many people were surprised at Gowda's allegations on Murthy who is known for his Values, Principles and Success in business. Omkar Goswami, noted economist posed an open question—Who will history judge as a more capable leader of the people: Narayana Murthy or Devegowda? (Business World, Nov., 2005 pp. 26). It is unfortunate that a controversy like this involved two such significant individuals. At one level the spat between Murthy and Gowda may be viewed as a personal encounter but considering their status in society, the case has enormous learning potential for one and all. The case, analyzed properly can help us to understand many important issues like leadership in general, role of business leaders in social development projects and communication effectiveness. The present article is focused on the latter- communication effectiveness. The purpose of the present article is to analyze the effectiveness of Murthy's communication. For this, we analyze the contents of the resignation letter that Murthy had sent to the Chief Minister Dharam Singh. The reason for this is that the resignation letter contained Murthy's mindset and his feelings related to the conflict. Further, the resignation letter is one single most important communication that can make a significant impact on the whole episode. While analyzing the effectiveness of Murthy's communication, no attempt is made to incorporate Devegowda's communication related to the present case. Considering the involvement of a successful business leader like Murthy, the present case is a relatively rare incident in professional management circles. Hence, the present case is considered worth analyzing exclusively from the point of view of Murthy. A copy of Murthy's letter to Chief Minister Dharam Singh is provided below.