effectiveness of leadership styles in it sector

Effectiveness of Leadership Styles in IT sector 15119103910

GITARATTAN INTERNATIONAL BUSINESS SCHOOL 1


CHAPTER – 1

INTRODUCTION



To survive, grow and develop amidst today’s highly competitive global environment

necessarily requires a set of corporate leaders having basic values coupled with vision,

speed and ingenuity to be able to respond with conscience to global standards and

challenges. It has been highlighted in the Geeta that “As leader performs, others follow.

And whatever standards the leader sets the entire world pursues.” Thus, for achieving

greater heights in any walk of life requires leaders who can lead by example.

By this research work, the researcher tries to justify that leadership exists not only in

Non-IT but also in IT sector. There are a lot of researches work are already done in the

field of leadership but after going through a lot of literature, researcher found that there is

a paucity of research in IT sector. This project deals with the leadership styles usually

seen in today’s work environment in the IT sector. It also tells that how and with what

impact leadership affects job satisfaction and employee productivity in any organization.

1.1 INDUSTRY PROFILE

Information Technology (IT) industry in India is one of the fastest growing industries. IT

industry in India comprises of software industry and information technology enabled

services (ITES), which also includes business process outsourcing (BPO).

The origin of IT industry in India can be traced to 1974, when the mainframe

manufacture, Burroughs, asked its India sales agent, Tata Consultancy Services (TCS), to

export programmers for installing system software for a U. S. client.

In India, the IT industry originated under unfavorable conditions. Local markets were

absent and government policy towards private enterprise was hostile. The industry was

begun by Bombay – based conglomerates which entered the business by supplying

programmers to global IT firms located overseas.

During that time Indian economy was state-controlled and the state remained hostile to

the software industry through the 1970s. Import tariffs were high (135% on hardware and

100% on software) and software was not considered an "industry", so that exporters were

ineligible for bank finance. Government policy towards IT sector changed when Rajiv



Gandhi became Prime Minister in 1984. His New Computer Policy (NCP-1984)

consisted of a package of reduced import tariffs on hardware and software (reduced to

60%), recognition of software exports as a "delicensed industry", i.e., henceforth eligible

for bank finance and freed from license-permit raj, permission for foreign firms to set up

wholly-owned, export-dedicated units and a project to set up a chain of software parks

that would offer infrastructure at below-market costs. These policies laid the foundation

for the development of a world-class IT industry in India.

Today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro, Infosys,

and HCL et al are renowned in the global market for their IT prowess. Some of the major

factors which played a key role in India's emergence as key global IT player are:

1 Indian Education System: The Indian education system places strong emphasis on

mathematics and science, resulting in a large number of science and engineering

graduates. Mastery over quantitative concepts coupled with English proficiency has

resulted in a skill set that has enabled India to reap the benefits of the current

international demand for IT.

2 High Quality Human Resource: Indian programmers are known for their strong

technical and analytical skills and their willingness to accommodate clients. India also

has one of the largest pools of English-speaking professionals.

3 Competitive Costs: The cost of software development and other services in India is

very competitive as compared to the West.

4 Infrastructure Scenario: Indian IT industry has also gained immensely from the

availability of a robust infrastructure (telecom, power and roads) in the country.

In the last few years Indian IT industry has seen tremendous growth. Destinations such as

Bangalore, Hyderabad and Gurgaon have evolved into global IT hubs. Several IT parks

have come up at Bangalore, Hyderabad, Chennai, Pune, Gurgaon etc. These parks offer

Silicon Valley type infrastructure. In the light of all the factors that have added to the

strength of Indian IT industry, it seems that Indian success story is all set to continue.



INDUSTRY STRUCTURE

According to NASSCOM (National Association of Software and Services Companies),

the size of the Indian IT industry, has been estimated to be around US$ 47.8 bn in FY07.

The Indian IT industry can be broadly divided into two markets: domestic market and

exports market. The exports market constitutes the largest segment accounting for

around 65.5% of the total revenue generated by the Indian IT industry including

hardware in FY07.

Importantly, in the exports market, IT services segment contributed highest share with

57.5% in FY07, followed by the ITeS-BPO segment with 26.8% share and the rest

shared by the software products and engineering services & R&D.

The domestic IT market is broadly classified into the following four segments: (i) IT

Services, (ii) software products, engineering and R&D services, (iii) IT-enabled Services

and Business Process Outsourcing (ITeS-BPO), and (iv) hardware. While IT Services

accounted for around 34% of the total revenue generated by the domestic market in

FY07, the engineering services, R&D and software products segments together

accounted for 9.7% of the revenue. The ITeS-BPO segment, on the other hand,

contributed 6.7%. Hardware contributed major share of the domestic market with about

49.7%. Notably, the domestic IT industry grew at a CAGR of 25.7% during FY04-07 to

touch US$ 16.5 bn.

Following states are the Major IT Hubs in India:

Bangalore

Chennai

Hyderabad

Pune

Coimbatore

NCR

Mumbai

Kolkata



Trivandrum

Kochi

Emerging Trends in the Indian IT Services Industry

While the global IT players are aggressively scaling up their operations in India, due to

the advantages that the Indian industry offers, the Indian IT companies are also preparing

to tap the global market. The companies are witnessing significant change with regard to

their service offerings and geographical concentration. Today, companies are expanding

their service offerings from application development and maintenance to high end

services like testing, consulting and engineering designing. The global delivery model

has not only facilitated the companies in delivering quality of work but also helped them

to control costs.

New Service Offerings

The Indian IT companies are expanding their service offerings to provide a complete

basket of services to their clients. These new services include IT consulting, testing,

business process management and IT infrastructure services, IT consulting, which in a

way allows the IT companies to de-risk their business from pricing pressures and enter

into newer areas which provide them higher growth and profitability.

Larger Deal Size

Indian IT companies have successfully scaled up operations and made a mark in the

global outsourcing market, evident from the large deals bagged by the Indian IT

companies in the past one year, including the TCS – AC Nielsen contract valued at US$

1.2 bn, the Social Security Institute of Mexico (IMSS) -TCS deal worth US$200 mn,

Satyam-FIFA contract, and the BSNL-HCL Info systems deal valued at Rs 5.9 bn to

name a few.

Growing presence of MNCs



Cost arbitrage and the availability of a large talent pool have attracted several MNCs to

India. Big players like IBM, Accenture, Google, Yahoo, Cap Gemini and Oracle among

others have not only increased their headcounts in India but also outperformed their

global performance in terms of revenue growth. Their Indian operations are witnessing

strong growth as compared to their global business. Some of the major global companies

like Intel, IBM and CSC are cutting jobs abroad and shifting their base to India.

Emerging Markets:

In terms of geographical contribution, the US continues to remain the key market for

Indian IT companies, accounting for 67.2% of the total IT-ITeS exports from India.

However, Europe is also emerging as an important market for the Indian IT industry,

considering the fact that the share of exports to Europe from India increased from 22.2%

in FY03 to 25.1% in FY07. Indian companies are increasingly enlarging their footprints

to countries in Latin America, Eastern Europe, and Asia Pacific region. Mergers and

acquisitions has been one of the routes that the Indian companies have adopted to

enhance their presence in European markets.

Changing Growth Drivers:

There has been a change in the revenue composition of companies in recent years. The

revenue contribution of high-growth segments such as infrastructure management

services, package implementation, testing & consulting has been witnessing rapid

growth over the last couple of years. These, newer service lines are not only enabling

Indian companies to increase their sales by cross-selling to their existing customers, but

also improve their average billing rates and recognition of being end-to-end service

providers. These segments are experiencing high growth rates over the last couple of

years. However, the Custom Application Development and Maintenance (CADM)

services continue to contribute a larger share towards IT services segment revenue. The

CADM accounted for around 39.6% to the total IT services segment revenue of

US$23.6 bn in FY07, and it witnessed a growth rate of 35.3% in the same period.

New End-users:



In terms of user industries, the BFSI and hi-tech/telecommunication industries remain

the leading verticals for the Indian IT companies. Together, these sectors accounted for

around 58% of the Indian IT-ITeS exports. Though these verticals have good growth

potential, other sectors such as manufacturing, airlines and transportation, retail,

healthcare, utilities, etc., are also emerging as promising segments for the Indian IT

companies. While the BFSI sector has the potential to provide large sized contracts to

the IT companies, the manufacturing sector can provide large number of

deals/assignments to the Indian players.

1.2 COMPANY PROFILE

NIIT

NIIT is a leading Global Talent Development Corporation, building skilled manpower

pool for global industry requirements. The company which was set up in 1981, to help

the nascent IT industry overcome its human resource challenges, has today grown to be

amongst world’s leading talent development companies offering learning solutions to

Individuals, Enterprises and Institutions across 40 countries.

NIIT’s training solutions in IT, Business Process Outsourcing, Banking, Finance and

Insurance, Executive Management Education, and Communication and Professional Life

Skills, touch five million learners every year. NIIT’s expertise in learning content

development, training delivery and education process management make it the most

preferred training partner, worldwide.

Awards and Acknowledgements:

Great Place to Work Institute in association with Economic Times ranks NIIT as

1st in Education & Training Sector in ‘India’s Best Companies to Work for –

2011’ study.

NIIT ranked amongst the Top 25 list of ‘India’s Best Companies to Work for –

2011’ by Great Place to Work Institute & Economic Times.



NIIT ranked amongst the prestigious Top 25 list of ‘Best Employers in India-

2011’ by Aon Hewitt.

NIIT adjudged as the ‘Best Education Company to work with’ at Indian

Education Awards 2011 by Franchise India.

Business Units: NIIT has organized itself along the following three lines of business:

1. Individual Learning Solutions - This focuses on providing employability skills to

people in the age group of 16–25 years. IT training forms the bulk of this

segment. In recent years it has launched new offerings for training in Banking,

Insurance and Financial services through IFBI, NIIT IMPERIA Executive

Management Programs through NIIT Imperia and training in skills for BPO/KPO

sectors through NIIT Uniqua.

2. School Learning Solutions - this provides training and learning solutions to

government and to private schools.

3. Corporate Learning Solutions- this division provides training services such as off

the shelf learning library, custom content development, customized instructor led

training and training administration services. Element K a US company, acquired

by NIIT in 2006, forms about two thirds of the sales from this division.

Indian Training Centres:

NIIT has training and educational centers in the following Indian states: Andhra

Pradesh, Assam, Bihar, Chandigarh, Chhattisgarh, Delhi, Gujarat, Haryana, Jammu &

Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Nagaland,

Orissa, Pondicherry, Tellicherry, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West

Bengal, Himachal Pradesh and Goa.

WIPRO



In the year of 1945, in pre–independent India, a vision was born, which would eventually

stand out as a brand name synonymous with innovation and integrity. Starting off with

consumer products business, Wipro then diversified into newer areas including IT

hardware and IT services. Such has been the dynamic power of the organization that over

the past 50 years, Wipro has evolved into a leading global IT company, a company which

has pioneered many an innovation in the IT services, BPO and R&D services space.

Headquartered at Bangalore, India, Wipro implements the philosophy of 'Applying

Thought', thereby helping clients to "Do Business Better". Their path breaking

innovations and ideas have culminated into the `Wipro Way' – a process which directly

impacts customer benefits by improving time-to-market, enhancing predictability and

reliability, and cutting costs.

Wipro's Global IT business caters to more than 150 global Fortune 500 clients across

financial services, retail, transportation, manufacturing, healthcare services, energy and

utilities, technology, telecom and media. Wipro employs over 120,000 people from over

70 nationalities and 72 plus global delivery centers across 5 continents.

Wipro, one of the world's most trusted brands, is a name with a long history that powers

itself into new ventures. This trust extends to a series of products, services and solutions

that cover diverse businesses - from consumer care to cutting-edge information

technology. Over the years, their identity has evolved with their business, adapting to

changing global dynamics.

WIPRO BPO:

Wipro BPO employs over 22,000, of whom 3,150 are at its Hyderabad campus. The

planned new recruitments will be from among science and commerce graduates and

under-graduates.

The majority of Wipro BPO’s business comes from the US, followed by Europe. The rest

of the world contributes only marginally to its top line. The company posted a turnover of

$290 million in FY08.

Founded in 2002, Wipro BPO has operations in Delhi, Pune, Kolkata, Chennai, Mumbai,

Hyderabad, Navi-Mumbai (Belapur) Greater Noida, Mysore and Kochi in India. It also



has offices in Shanghai and Cebu in Asia and Curitiba in Brazil and Wroclaw in Poland.

It has 44 clients in segments such as banking & capital markets, insurance, travel &

hospitality, hi-tech manufacturing, telecom and healthcare.

WIPRO Divisions:

The group companies of Wipro Limited.

Wipro Consumer Care & Lighting (WCCLG):- It has a profitable presence in the

branded retail market of toilet soaps, hair care soaps, baby care products and lighting

products. WCCLG is also a leader in institutional lighting in specified segments like

software, pharma and retail.

Wipro Infrastructure engineering: - It is generally known for manufactures

precision-engineered hydraulic cylinders and truck hydraulic solutions for the

infrastructure and related industries. It the second largest independent Hydraulic

Cylinder manufacturer in the world.

Wipro GE Medical Systems Limited:- It is a Joint venture between Wipro Limited

and General Electric basically delivering what it calls "quality solutions that

effectively meet the needs of customers and patients". Its products and services range

from diagnostics to IT, helping healthcare professionals combat cancer, heart disease

and other ailments.

1.3 LEADERSHIP:



Leadership can be described as the process of social influence in which one person can

enlist the aid and support of others in the accomplishment of a common task. A process

that influences other people to achieve an objective and guides the company in a way to

make it more coherent and cohesive is called leadership. Leadership ensures that that the

organization works successfully and accomplishes the desired goals. Leadership can also

be defined as a process that can have a positive impact on others. It motivates people to

excel in the field they are working.

Leadership is a function of knowing yourself, having a vision that is well communicated,

building trust among colleagues, and taking effective action to realize your own

leadership potential. It is the process of influencing the behavior of other people toward

group goals in a way that fully respects their freedom.

Leadership is defined as “a process by which a person influences others to accomplish an

objective and directs the organization in way that makes it more cohesive”

1.4 NATURE OF LEADERSHIP:

There are many definitions of leadership, each with a different emphasis.

Some definitions consider leadership as an act or behavior, such as initiating

structure so group members know how to complete a task.

Leadership can also be considered as the center or nucleus of group activity, an

instrument of goal achievement, a person endowed with a certain personality, a

form of persuasion, the art of inducing compliance, and a power relationship.

Some also see it as the management of group processes – that is, developing a

vision for the group, communicating the vision and activity towards goal

attainment.

1.5 LEADER VERSUS MANAGER:



Although the above two terms are used interchangeably, they are two different people

with different personalities and world views. A clarity about their difference helps in

gaining greater insight and self-confidence about oneself.

Manager motivates and Leader inspires: A manager is supposed to motivate so

that people will work to achieve goals of the company. Leader is a coach

appealing to the best in each person, problem-solver and advice giver as against a

manager who is invisible – gives order to staff and expects them to be carried out.

The leader inspires others by setting an example.

Manager has Subordinates and Leaders has Followers: A manager motivates,

reinforces, disciplines or punishes, resolve conflicts, recruits people and train

them in order to achieve set organizational objectives. He is fair to the top but

exploits the rest in the organization. A leader influences others, evoking

expectation and establishing specific aims and objectives, which determines the

direction of the organizational goals. He trusts people and delegates important

jobs.

Manager is a Boss, Leader is a Guide: Manager influences people due to

acquired power because of his position in the organization, as he is the boss. A

leader influences through his capabilities and sound knowledge. A manager is

more interested in gaining power and self-recognition. He energizes his people

through seat of command. A leader influences through his abilities and

knowledge, which is more convincing to others.

Manager Pushes into Action, Leader Motivates into Action: A manager has to

complete the task in a well-defined time. Therefore, he has to push and cajole his

people to complete their task. He has to plan and control different activities. A

leader develops fresh approaches to long-standing problems and open issues to

new options. He very often projects his ideas into activities, which excite people

and bring them to him. He has the quality of winning hearts.

Attitude towards Goals: Managers tend to adopt impersonal, if not passive

attitude towards goals. Managerial goals arise out of immediate necessities rather



than long- term vision. Leaders are active rather than reactive. Leaders adopt a

personal and positive attitude towards goals. A leader is a visionary and a

manager with a vision can be a precious asset for the organization. In Zalesnick’s

terminology, managers are primarily concerned with process and leaders are

primarily concerned with substance.

Manager Controls, Leader Empowers: Managers seek order and control and

are almost compulsively addicted to disposing of problems even before they

understand their potential significance. They see themselves as conservators and

regulators. Leaders, on the other hand, empower people and get the work done.

This selfless approach leads to better productivity from people.

1.6 NEED FOR LEADERSIP:

Leadership is an important function of management which helps to maximize efficiency

and to achieve organizational goals. The following points justify the importance of

leadership in a concern.

Initiates action- Leader is a person who starts the work by communicating the

policies and plans to the subordinates from where the work actually starts.

Motivation- A leader proves to be playing an incentive role in the concern’s

working. He motivates the employees with economic and non-economic rewards

and thereby gets the work from the subordinates.

Providing guidance- A leader has to not only supervise but also play a guiding

role for the subordinates. Guidance here means instructing the subordinates the

way they have to perform their work effectively and efficiently.

Creating confidence- Confidence is an important factor which can be achieved

through expressing the work efforts to the subordinates, explaining them clearly

their role and giving them guidelines to achieve the goals effectively. It is also

important to hear the employees with regards to their complaints and problems.

Building morale- Morale denotes willing co-operation of the employees towards

their work and getting them into confidence and winning their trust. A leader can



be a morale booster by achieving full co-operation so that they perform with best

of their abilities as they work to achieve goals.

Builds work environment- Management is getting things done from people. An

efficient work environment helps in sound and stable growth. Therefore, human

relations should be kept into mind by a leader. He should have personal contacts

with employees and should listen to their problems and solve them. He should

treat employees on humanitarian terms.

Co-ordination- Co-ordination can be achieved through reconciling personal

interests with organizational goals. This synchronization can be achieved through

proper and effective co-ordination which should be primary motive of a leader.

1.7 LEADERSHIP TRAITS:

Get motivation from the ideal of his life: Each leader has its own indomitable

style of leadership style to realize his dreams and vision. Visualization is the first

step to acquire and achieve something. The willingness to persevere for

achievement of objectives as visualized through thoughts and images helps in

pursuing one’s objectives and goals in life.

Develop trust and belief in your potential: One of the strong traits commonly

observed in a successful leader is his belief in happiness, abundance and solutions

as against constraints, scarcity and problems.

Identify and work on your failures: the word ‘failure’ does not exist in the

vocabulary of successful leaders. The mistakes leading to failures in the past act

as learning lessons and stepping stones for success in life.

Be competitive with oneself through cooperation: A leader creates an

environment of mutual trust and faith whereby everyone is involved in the process

produces some kind of harmony. A successful leader’s key for ensuring

cooperation lies in mutual love and respect amongst individuals around him.

Character: the effectiveness of a leader in the present context depends upon his

ability to communicate, motivate, delegate and cultivate talent, decision-making

and above all his character, which involves three major factors – drive,

competence and integrity.



Values: Effective leaders build up an organizational culture that focuses on value-

based planned action. It is the value driven leaders who create corporate identity

and image, which goes beyond what is being produced. A good leader ensures

that organizational activities revolve around certain basic values which everyone

follows.

Surrendering: An ultimate key to success lies in surrendering. It doesn’t mean

that one has to give up one’s life to another person, organization or a set of ideas.

It simply means having faith and trust in the principles, forces and higher values

of wholeness that are always at work.

1.8 THE LEADERSHIP PROCESS:

Leadership is a process, a complex and dynamic relationship, built over time, between

leader and follower, and between leader and group of followers who depend on each

other to attain a mutually desired goal. The process of leadership can be determined as

follows:

1. The Leader: Leaders are the people who take charge of or guide the activities of

others. They are often seen as the focus of group activity so het it can move

forward to goal attainment.

2. The Follower: He is the most critical part of the leadership process. It is the

follower who perceives the situation and comes to define the needs that the leader

must fulfill. In addition, it is the follower who accepts or rejects the acts of

leadership by surrendering his power to the leader to accomplish the task.

3. The Situation: Situation makes demand on a group and its members. The situation

is the context that surrounds the leader and the followers. Situations are

multidimensional. It depends on certain factors which creates different contexts

within which leadership unfolds.

4. The Process: The process of leadership is different from the leader. It is complex,

interactive and dynamic. It is a working relationship between the leader and the

followers. The leader provides a resource directed towards fulfilling the group’s



maintenance and group’s needs, and the group gives compliance, recognition and

esteem to the leader.

5. The Consequences: A number of outcomes or consequences of the leadership

process unfolds between leader, follower and situation.

1.9 LEADERSHIP STYLES:

Listed below are some of the styles followed by managers in their organizations:

1. Autocratic leadership: Also known as authoritarian leaders, provide clear

expectations for what needs to be done, when it should be done, and how it should be

done. There is also a clear division between the leader and the followers.

Authoritarian leaders make decisions independently with little or no input from the rest of

the group. The manager retains as much power and decision making authority as possible

and the employees are expected to obey orders without receiving any explanations.

2. Democratic leadership: means you seek to consult your employees or team members

over decisions that will affect them. Also known as participative leadership, it is a type of

leadership style in which members of the group take a more participative role in the

decision-making process.

The democratic leader encourages the staff to be a part of the decision making process of

the organization. He keeps the employees informed about everything that affects their

work and shares decision-making and problem solving responsibilities.

3. Delegative leadership: Also known as Laissez-faire leadership style offers little or no

guidance to group members and leave decision-making up to group members. While this

style can be effective in situations where group members are highly qualified in an area

of expertise, it often leads to poorly defined roles and a lack of motivation.

Most often, laissez-faire leadership works for teams in which the individuals are very

experienced and skilled self-starters. Unfortunately, it can also refer to situations where

managers are not exerting sufficient control.



4. Bureaucratic leadership: Bureaucratic leaders work “by the book”, ensuring that

their staff follow procedures exactly. This is a very appropriate style for work involving

serious safety risks (such as working with machinery, with toxic substances or at heights)

or where large sums of money are involved (such as cash-handling).

This style is most effective when employees need to do routine tasks over and over. The

employees need to follow the standards and procedures to perform a task. This style

might cause problems as work habits forms that are hard to break even if they are no

more useful.

5. Transformational leadership: Transformational leadership is a type of leadership

style that leads to positive changes in those who follow. Transformational leaders are

generally energetic, enthusiastic and passionate. Not only are these leaders concerned and

involved in the process; they are also focused on helping every member of the group

succeed as well.

It enhances the motivation, morale and performance of followers through a variety of

mechanisms. These include connecting the follower's sense of identity and self to the

mission and the collective identity of the organization; being a role model for followers

that inspires them; challenging followers to take greater ownership for their work, and

understanding the strengths and weaknesses of followers, so the leader can align

followers with tasks that optimize their performance.

6. Charismatic leadership: A charismatic leadership style can appear similar to a

transformational leadership style, in that the leader injects huge doses of enthusiasm into

his or her team, and is very energetic in driving others forward.

However, a charismatic leader can tend to believe more in him or her than in their team.

This can create a risk that a project, or even an entire organization, might collapse if the

leader were to leave: In the eyes of their followers, success is tied up with the presence of

the charismatic leader. As such, charismatic leadership carries great responsibility, and

needs long-term commitment from the leader.



7. Transactional leadership: This style of leadership starts with the premise that team

members agree to obey their leader totally when they take a job on: The “transaction” is

(usually) that the organization pays the team members, in return for their effort and

compliance. As such, the leader has the right to “punish” team members if their work

doesn’t meet the pre-determined standard.

Team members can do little to improve their job satisfaction under transactional

leadership. The leader could give team members some control of their income/reward by

using incentives that encourage even higher standards or greater productivity.

Alternatively a transactional leader could practice “management by exception”, whereby,

rather than rewarding better work, he or she would take corrective action if the required

standards were not met.

Leadership is a primary vehicle for fulfilling the directing function of management.

Leadership and management are not the same. Leaders need to recognize that how they

choose to lead will affect the nature of their followers’ compliance with their influence

tactics, and ultimately impacts motivation, satisfaction, performance and group

effectiveness. Leadership in IT sector is a crucial issue to know whether any leadership

style effects or not the employee’s productivity and job satisfaction. We have discussed

the different leadership styles in detail and about the present IT sector scenario in India.

We have taken into consideration the leadership styles which are most likely followed in

NIIT Technologies Ltd and WIPRO.



CHAPTER – 2

LITERATURE REVIEW



The review of literature signifies selection of available documents(both published &

unpublished) on topic, which contain information, ideas, data & evidence written from a

particular standard point to fulfill certain aims or express certain views on nature of topic

and how it is to be investigated and effective evaluation of these documents in relation to

research being proposed. There are various research papers which were taken for present

study were as follows:-

Ernest J. Wilson III in their study “Leadership in the Digital Age” (2004) stated that a

post industrial digital age style of leadership is emerging which is characterized by

stronger horizontal linkages among elites across different sectors and different countries.

The new societal conditions are eliciting new forms of leadership necessary to launch and

sustain the transitions towards more knowledge intensive societies.

Leadership in the digital age needs new attitudes, new skills and new knowledge gained

through unique professional experiences. Digital leaders can be defined functionally by

their contributions towards the knowledge based society. These include awareness

building, resource mobilization, operational leadership and structural leadership.

Digital leadership innovation is not static but changes through time. Since technology

innovation is so highly dynamic the mix of leadership skills required also changes. The

newness of the networked, knowledge society and digital leadership means there remains

much to be explored and practice. Generational dimensions of digital leadership are also

important issues involving possible differences in leadership styles, substance and

perhaps capabilities as well.



Study conducted by Vey et al. in their paper “The Ambidextrous Senior-Leadership

Team” (2005) projected that to be ambidextrous, the top management has to monitor its

environment to understand what is required of it, and it has to monitor itself to know its

own preferences and predilections, strengths and weaknesses, and readiness for change.

Ambidextrous executives are flexible enough to move across the spectrum, or to switch

modes when they need to.

As long as conditions remain stable, senior leaders may persist in teams or hierarchies for

a long time – long enough for that style to become part of the culture of the organization.

However, when conditions change, senior leaders may find themselves stuck in a

structure that no longer makes sense.

Smart companies cultivate ambidextrous senior management because they recognize that

there is more than one way to lead a high-performance business. They adopt the senior

leadership mode that best suits their business, industry and strategic future. The magic

formula for high-performance senior leadership is a continuous process of practice,

evaluation and improvement.

Kiriil M. Yurov and Richard E. Potter in their study “Transformational Leadership

in Technology Post-Adoption Period: A Motivational Factor for Acquiring

Technology Enhancement Information” (2005) studied about transformational

leadership in technology in post-industrial period. Organizations continue to deploy new

systems as advanced technology solutions become available. At the same time,

organizations face the need to enhance extant system by adding complementary IT-based

solutions such as security software, storage networks, mobile devices, etc. Therefore, it is

important to address leadership qualities of IT management in terms of their influence on

the followers in the process of information seeking. Transformational leadership acts as a

motivational factor for desired behavior of subordinates.

Transformational leadership is posited to interact with the informant’s learning

orientation. Transformational leadership qualities of IT leaders will be positively



associated with informants’ interest in learning about IS functionalities and technologies,

such that when transformational leadership qualities are more pronounced, informants

will be more motivated to contribute technology enhancement information.

Fullan in his study “Technology Leadership” (2002) stated that “Effective school

leaders are key to large-scale, sustainable education reform”. The visionary and cultural

dimensions of leadership are recurring themes in both the wider literature of educational

leadership and that of technology leadership in education. The importance of vision has

an element of leadership and there is the need to address culture as part of technology

leadership. The most obvious conclusion to be drawn is that there is a relative paucity of

recently published scholarship in the field of technology leadership.

Despite considerable scholarly activity in the broad fields of educational leadership and

of technology in education, there appears to be relatively little activity in the conjunction

of the two.

There seems little doubt that technology leadership is widely viewed as important. A

partial explanation may be related to the observation that effective technology leadership

requires substantial knowledge of both education and technology. Perhaps researchers

with strong backgrounds in education or technology are reluctant to venture into the

intersection of those fields, where they would be less confident of their ground.

Study conducted by Cody B. Shive in “Technical Management with Situational

Leadership” (2002) stated that there are three factors that you need to think about.

First, as you grow each of your Staff Members, you are “developing” them – one-on-one.

Blanchard tracks this as “developmental level” and uses the D1 through D4 nomenclature

to signify Staff as developing (D1) to developed (D4). Second, the model addresses your

“style” of leadership (Directing, Coaching, Supporting and Delegating) and how you

must alter it depending on both the situation at hand and the developmental level of your

Staff Member. Third, the model merges the first two elements to derive “situations”

where Staff development and your management style converge.



They stated that, if you learn how to identify each of your Staff’s developmental level,

and alter your management style to the situation at hand, you will be well-equipped to

manage your Staff better and achieve favorable results.

Leslie et al. in the study “Understanding the Leadership Gap” (2003) tells about the

leadership skills and perspectives which are required in any organization and how the

leadership strength plays a critical role in developing these skills and perspectives.

As per the study, leadership across countries and sectors seem to agree upon

competencies that are strengths but less important: displaying compassion and sensitivity;

effectively working of people with varied backgrounds and being composed under

pressure and difficult times. It was found that mostly, senior and top management

perceives them as being better skilled than upper-middle and middle level management

people.

It was found that leaders need to build up their current strengths in the areas of – doing

whatever it takes, resourcefulness, being composed and building relationships.

The leadership gap so identified in the report can be covered by sensitizing and making

the leaders and employees aware about the strategies followed by the organization,

enabling the employees by giving them proper training to improve them in their skills and

perceptions and by supporting them in performing their tasks.

Prof. David Tranfield and Dr. Ashley Braganza in their survey “Business Leadership

of Technological Change” (2007) discussed that earlier there was a strong correlation

between national economic competitiveness and the development of information

technology. They say that a focus on value creation means moving away from a vertical

approach based on functional expertise towards collaborative horizontal approaches, from

command and control to collaborate and connect.

It is seen that major IT implementation programs regularly fail mainly due to poor

management and implementation of business change rather than an inability to install



new technology. This is because integrated IT almost always changes the work people do

and cuts across existing organizational boundaries.

They give the suggestion that top management need to have a growing understanding of

the strategic use of IT to ensure that their organizations are ready to capitalize on the new

opportunities it provides.

Also, they need to have external environmental developments on their radar so that they

can actively manage the implications for internal IT change programs.

Frederic Lucas-Conwell in his paper “Technology Evangelists: A Leadership

Survey” (2006) tells that a technology evangelist serves as an ambassador of

organizational technologies, interacting with prospects, partners, users, producers and

other members of the organization. The position is sometimes assumed by a company

president or strategist or within software companies it can apply to pre-sales or post-sales.

Technology evangelism requires a commitment to the product or service being sold, as

well as to the company and its management. A technology evangelist is attached to a

cause that embodies a vision, makes people feel better, generates impressive effects,

initiates selfless actions, and polarizes people to act positively.

Leadership in technology evangelism requires interacting with many individuals,

understanding their mind-sets, and exhibiting the ability to empower and involve them in

the technique or service at the root of the cause touted by the evangelist. Passion drives

those fulfilling this role, as well as a motivation to efficiently connect with individuals

and groups as they, in turn, connect with the evangelist and his or her cause.

Charismatic leadership style seems to emerge from the descriptions of evangelism aptly

described by Guy Kawasaki.

Today's business environment is global in nature, necessitating constant change as

organization members rapidly interact through media such as Internet to respond to

increasingly competitive pressures. It is within this environment that technology

evangelists are evolving. As we are learning to understand individual assets on the one

hand, it is also important on the other hand to recognize the demands of the environment



on these same individuals. Only by giving equal credence to both factors can we begin to

tackle the challenges of leadership.

Study conducted by Debasis Bhattacharya in “Leadership Styles and Information

Security in Small Businesses” (2008) indicates that while effective transactional

leadership is the predominant leadership style for mitigating cybercrime, transformational

leadership augments the benefits to small businesses. The results of the study highlight

the need for both transformational and transactional leadership styles within small

businesses to address information security problems.

The study also highlights the need to complement the benefits of transformational and

transactional leadership styles with effective policies and updated technologies that

mitigate information security problems. Small businesses cannot rely primarily on basic

technologies such as anti-virus software, firewalls, and power surge protectors to protect

against cybercrime.

Likewise, small businesses cannot rely primarily on basic data recovery procedures and

information security policies and procedures for protection against cybercrime. A

combination of leadership, policy, and technologies provides a small business with an

effective security framework to maintain vigilance against cybercrime

Ketan Palshikar in his study “Charismatic Leadership” (2000) stated that any type of

organization runs successfully when it is piloted by a skillful and influential leader. While

leaders motivate their followers, it is not the only thing leaders can do. A good leader can

structure the organization in the way he wants. He represents the culture of the organization

and most importantly, it has been observed that effective leaders posses a capacity to increase

the productivity of the organization. Various scholars categorize leadership styles in a

different way.

It is observed that charismatic leadership motivates followers to give extra output than what

is expected from them otherwise. It also achieves self-actualization in its followers. It is seen

that charismatic leadership works in a social structure to heighten the morale of the followers.

It shapes the society the way the followers and the leader had dreamt. In the business world



also the charismatic leadership works positively. It increases the overall performance of the

organization. It creates a sense of fulfillment in the followers. It also creates a sense of unity

and belongingness in the followers towards the organization.

Charismatic leadership also has severe negative effects in some cases. The shared vision and

ideas between the leader and followers create enormous energy in the organization. The

leader can employ this energy in destructive way. The more the leader’s self-confident is the

more are the chances that the leader will misuse the power. It’s been observed in many cases

that charismatic leaders have abused their powers. Many companies have witnessed their

high rank leaders going corrupt.

Different studies show that leadership is a process which is used to identify the potential

talent of the members of a group and make use of this talent in the best way. Different

authors & researchers identified various ways in which leadership exists as a strong pole

in an organization. Various studies under the head of leadership in IT sector in different

countries & in different sectors gave several useful statistics & concepts.

Conclusion summarizes all evidence presented and shows its significance. If review is an

introduction to your own research, it highlights gaps and indicates how previous research

leads to your own research project and chosen methodology. If review is standard alone

assignment for a course, it should suggest any practical applications of research as well as

implications and possibilities for future research.



CHAPTER – 3

RESEARCH METHODOLOGY



3.1 NEED AND SIGNIFICANCE OF THE STUDY

This research studies that why identification of leadership styles is necessary and that

how it affects the IT sector. It will signify that the leadership in IT sector is as important

as any other factor influencing the organization. The present study tries to evaluate the

importance of different leadership styles and their effect on employees’ productivity.

Also, present study talks about the leadership and its impact on job satisfaction among

employees working in technological sector.

3.2 SCOPE OF THE STUDY:

This project will have useful implications for finding out the various influences if

leadership on technological sector. They will be vastly benefited because this study will

reveal how effectively leadership can help in developing a techno prone organization and

that how it can be transformational for an organization.

3.3 TITLE OF THE PROJECT:

“Effectiveness of leadership styles in IT sector”.

3.4 OBJECTIVES:

1. To find out about the different types of leadership styles in IT sector.

2. To know about the significance of leadership in job satisfaction.

3. To know about the effectiveness of leadership in the organization.

3.5 HYPOTHESIS:

H01: Different leadership styles do not affect employee’s productivity.

H11: Different leadership styles have a significant impact on employee’s

productivity.

H02: Different leadership styles do not help in providing job satisfaction to

employees.

H12: Different leadership styles help in providing job satisfaction to employees.



3.6 RESEARCH DESIGN:

This research study used a quantitative, descriptive, correlation methodology to

investigate a possible relationship between the particular leadership styles (independent

variable) and employee productivity (dependent variable) & job satisfaction (dependent

variable).

Apart from this it is going to be a Descriptive research.

Descriptive research includes surveys and fact-finding enquiries of different types. The

researcher used this type of research design so as to go in detail of the state of affairs as it

exists in the present scenario.

3.7 SAMPLING DESIGN:

Since the sample population is definite in nature so sample technique use for

study will be Probability Sampling . Under this sampling design, every item

of the universe has an equal chance of inclusion in the sample.

With this sampling design we have used Random Sampling technique which

ensures that the chosen sample will have the same composition and

characteristics as the universe.

3.8 SCALE USED:

Scale used to evaluate questions is:

Likert 5 point Scale (Strongly disagree, Disagree, Neutral, Agree, Strongly agree)

3.9 Statistical Tools:

For this research work, following statistical tool is used:

Regression: It shows a statistical relationship between two variables and that how

one variable (independent) is the cause of behavior of another variable

(dependent). It shows that how an independent variable can affect any dependent

variable.



3.10 SOURCES OF DATA:

a) Primary Data: Questionnaire used for the study is a standardized questionnaire

in which all questions are predetermined before conducting the survey. The form

of questions is usually closed ended type.

b) Secondary Data: Secondary data is collected through websites, journals, books.

3.11 DATA COLLECTION TOOL:

For the purpose of data collection, the researcher has used a standardized questionnaire

which was made by an expert; hence all questions are predetermined before conducting

the survey. The form of questions is usually closed ended type.

3.12 LIMITATIONS OF THE STUDY:

Time constraint.

The findings can be interpreted in light of the information provided by the

respondents.

Sample may not be true representative of the population.

The study is based on the assumption that the responses provided by the

respondents are true and free from bias.

The study was limited only to a specific and small region, i.e., Delhi.

NOTE: During hypothesis testing we will take different leadership styles as separate

independent variables.



CHAPTER-4

DATA ANALYSIS & INTERPRETATION



This section deals with the analysis and interpretation of the data collected through

questionnaire which were filled by a total of 100 respondents in two major IT companies.

The data is represented with the help of pie charts and histogram and interpretation by the

researcher is written for every statement

TO FIND OUT ABOUT DIFFERENT TYPES OF LEADERSHIP STYLES PRESENT

IN IT SECTOR

4.1 Autocratic style of Leadership

Table 4.1: Represents whether there exists autocratic leadership in the organization.

Scale Responses in percentage

Strongly disagree 26

Disagree 44.4

Neutral 28.8

Agree 0.8

Strongly agree 0

Total 100

Chart 4.1: Represents the existence of autocratic leadership in the organization.

26

44.4

28.8

0.8

Autocratic leadership

strongly disagreedisagreeneutralagreestrongly agree



Interpretation: 44.4% of the respondents disagree that there exist an authoritarian approach in

their organization while 26% respondents strongly disagree for the same. Only 0.8% of

respondents agreed over the presence of autocratic leader while 28.8% remained neutral about

the same. This shows that majority of respondents feel that their superiors do not pose an

authority over them to get the tasks assigned to them done, in other words their superiors do not

follow a carrot and stick approach.



4.2 Democratic style of Leadership

Table 4.2: Represents whether there exists democratic leadership in the organization


Strongly disagree 4.6

Disagree 11

Neutral 18

Agree 43.6

Strongly agree 22.8

Total 100

Chart 5.2: Represents the presence of democratic style in the organization

4.611

18

43.6

22.8

Democratic Leadership

Strongly disagreeDisagreeNeutralAgreeStrongly agree

Interpretation: 22.8% of the respondents have strongly agreed that their superiors ask for their

suggestions while taking decisions and 43.6% agree with the same.11% respondents disagree

while only 4.6% of the respondents strongly disagree that they don’t have a say in the decision

making process, this maybe because of the level at which employees work. For example:

employees at lower levels do not usually have a say in the strategic decisions as they are usually

supposed to do technical tasks which have to be done following a specific set of standards issued

by the management of the organization.

4.3 Delegative style of Leadership



Table 4.3: Represents whether there exists delegative leadership in the organization



Disagree 22.8

Neutral 27.8

Agree 35

Strongly agree 11

Total 100

Chart 4.3: Represents the presence of delegative style in the organization

3.4

22.8

27.8

35

11

Delegative leadership


Interpretation: 11% of the respondents have strongly agreed and 35% respondents have agreed

that there is an existence of laissez-faire style of leadership which means that employees have

got the authority to make decisions on their own and are accustomed to make decisions related

to the tasks they have to do in their jobs. 27.8% respondents have a neutral approach which

means that employees are given authority but they are hold accountable if anything goes wrong.

On the other hand, 22.8% of respondents disagree that they are given any free will to make

decisions which might be because of the different management levels in the organization as the

organization structure has a great effect on delegating authority to employees.

4.4 Bureaucratic style of Leadership



Table 4.4: Represents whether there exists bureaucratic leadership in the organization


Strongly disagree 24

Disagree 40.8

Neutral 28

Agree 5.8

Strongly agree 1.4

Total 100

Chart 4.4: Represents the presence of bureaucratic style in the organization

24

40.8

28

5.8

1.4

Bureaucratic leadership


Interpretation: Majority of the respondents (40.8%) said that bureaucratic style of leadership is

not followed in the organization which means that the organization is flexible with its decision

making process. 24% of the respondents strongly disagreed about the existence of bureaucracy

in their organization and 28% said that leaders follow the approach as and when required. For

example – Employees who have to work with machinery have to follow a particular set of rules

to do the work given to them. That is why 5.8% of the respondents have agreed to the statements

asked to them.



4.5 Transformational style of Leadership

Table 4.5: Represents whether there exists transformational leadership in the organization


Strongly disagree 1

Disagree 10.6

Neutral 21.8

Agree 45.4

Strongly agree 21.2

Total 100

Chart 4.5: Represents the presence of transformational style in the organization

1

10.6

21.8

45.4

21.2

Transformational leadership


Interpretation: 45.4% of respondents said that their manager is one who brings positive

changes in the organization. As per the data above, 21.2% of respondents have strongly agreed

over the point that their manager is one full of power, confidence and enthusiasm. As per the

results gathered employees are found feeling happy with their transformational leader. 21.8% of

the respondents are of the view that this kind of leadership has a moderate pace in the

organization while 10.6% disagreed about the existence of such a leadership style in their

organization.



4.6 Charismatic style of Leadership

Table 4.6: Represents whether there exists charismatic leadership in the organization


Strongly disagree 5

Disagree 17.2

Neutral 32

Agree 24

Strongly agree 21.8

Total 100

Chart 4.6: Represents the presence of charismatic style in the organization

5

17.2

32

24

21.8

Charismatic leadership


Interpretation: Majority of the respondents, 32%, neither agreed nor disagreed about the

existence of charismatic leadership in their organizations. 24% of the respondents have agreed

and 21.8% strongly agreed that their superior is one full with charisma and enthusiasm

whenever a task is given to his team. Only 5% of the respondents strongly disagree that their

superior is energetic and full of enthusiasm when a task is given to him.



4.7 Transactional style of Leadership

Table 4.7: Represents whether there exists transactional leadership in the organization



Disagree 39.4

Neutral 34

Agree 14

Strongly agree 3.8

Total 100

Chart 4.7: Represents the presence of transactional style in the organization

8.8

39.4

34

14

3.8

Transactional leadership


Interpretation: In his type of leadership the organization usually pays employees for their

compliance and efforts, which is not the case with our respondents here. 39.4% and 8.8% of the

respondents respectively disagree and strongly disagree about the existence of this kind of

leadership style in their organizations. While only 14% and 3.8% of the total population agrees

and strongly agrees for its existence.



TESTING OF HYPOTHESIS

H01: Different leadership styles do not affect employee’s productivity.

H11: Different leadership styles have a significant impact on employee’s

productivity.

4.8 To know whether autocratic leadership has a significant impact on employee

productivity or not.

Table 4.8.1: Model summary of Regression

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .005a .000 -.010 2.16179

Dependent Variable: productivity

Table 4.8.2: Impact of autocratic leadership on employee productivity

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta

1 (Constant) 13.721 1.546 8.877 .000

autocratic .008 .150 .005 .051 .959




ANALYSIS & INTERPRETATION

Here the study used regression analysis statistics in order to evaluate the effect of

independent variable (autocratic leadership) on dependent variable (employee

productivity). In this method all independent variables come into analysis and effect of

independent variable on dependent variable will be tested.

Therefore on the basis of results obtained by performing regression analysis, the study

interprets that:

Table 4.8.1 reveals that 0.000 of variance in dependent variable (employee productivity)

is explained by independent variable (autocratic leadership). Here significance value is

95.5%, which shows that there is 05% level of confidence. (β=0.005, r=0.000)

Note:

If significance< 0.01, Model is significant at 99% level.

If significance <0.05, Model is significant at 95% level.

If significance < 0.1, Model is significant at 90% level.

As per the table 4.8.2 confidence level is 5%, so null hypothesis is being accepted and

alternative hypothesis is rejected i.e. there is no significant impact of autocratic

leadership on employee productivity.



4.9 To know whether democratic leadership has a significant impact on employee


Table 4.9.1: Model Summary of Regression

Model R R SquareAdjusted R Square

Std. Error of the Estimate

1 .374a .140 .131 2.00504


Table 4.9.2: Impact of democratic leadership on employee productivity

Model




1 (Constant) 8.096 1.443 5.609 .000

democratic .319 .080 .374 3.991 .000






independent variable (democratic leadership) on dependent variable (employee




interprets that:

Table 4.9.1 reveals that 37.4% of variance in dependent variable (employee productivity)

is explained by independent variable (democratic leadership). Here significance value is

0.000, which shows that there is 95% level of confidence. (β=0.374, r=0.140)

Note:




As per the table 4.9.2 confidence level is 95%, so null hypothesis is being rejected

and alternative hypothesis is accepted i.e. there is a significant impact of democratic


4.10 To know whether delegative leadership has a significant impact on employee







1 .342a .117 .108 2.03142


Table 4.10.2: Impact of delegative leadership on employee productivity

Model




1 (Constant) 9.174 1.300 7.058 .000

delegative .307 .085 .342 3.604 .000






independent variable (delegative leadership) on dependent variable (employee




interprets that:

Table 4.10.1 reveals that 11.7% of variance in dependent variable (employee

productivity) is explained by independent variable (delegative leadership). Here

significance value is less than 0.05, which shows that there is 95% level of confidence.

(β=0.342, r=0.117)

Note:





and alternative hypothesis is accepted i.e. there is a significant impact of delegative




4.11 To know whether bureaucratic leadership has a significant impact on employee





1 .375a .141 .132 2.00415


Table 4.11.2: Impact of bureaucratic leadership on employee productivity

Model




1 (Constant) 20.000 1.562 12.807 .000

bureaucratic -.371 .093 -.375 -4.003 .000






independent variable (bureaucratic leadership) on dependent variable (employee




interprets that:

Table 4.11.1 reveals that 14.1% of variance in dependent variable (employee

productivity) is explained by independent variable (bureaucratic leadership). Here

significance value is less than 0.05, which shows that there is 95% level of confidence.

(β= -0.371, r=0.141)

Note:





and alternative hypothesis is accepted i.e. there is a significant impact of bureaucratic

leadership on employee productivity. The value of beta is negative which means that

the bureaucracy is inversely affecting employee productivity.



4.12 To know whether transformational leadership has a significant impact on employee





1 .175a .031 .021 2.12858


Table 4.12.2: Impact of transformational leadership on employee productivity

Model




1 (Constant) 17.128 1.907 8.984 .000

transformational -.177 .101 -.175 -1.756 .082






independent variable (transformational leadership) on dependent variable (employee




interprets that:


is explained by independent variable (transformational leadership). Here significance

value is less than 0.1, which shows that there is 90% level of confidence. (β= -0.175,

r=0.031)

Note:





and alternative hypothesis is accepted i.e. there is a significant impact of

transformational leadership on employee productivity. The value of beta is negative

which means that with increasing transformational leadership the employee

productivity decreases.



4.13 To know whether charismatic leadership has a significant impact on employee





1 .250a .062 .053 2.09326


Table 4.13.2: Impact of charismatic leadership on employee productivity

Model




1 (Constant) 17.311 1.390 12.451 .000

charismatic -.206 .081 -.250 -2.554 .012






independent variable (charismatic leadership) on dependent variable (employee




interprets that:


is explained by independent variable (charismatic leadership). Here significance value is

0.012, which shows that there is 95% level of confidence. (β= -0.250, r=0.062)

Note:





and alternative hypothesis is accepted i.e. there is a significant impact of charismatic

leadership on employee productivity. The value of beta is negative which means that

with increasing charismatic leadership the employee productivity decreases.



4.14 To know whether transactional leadership has a significant impact on employee





1 .092a .009 -.002 2.15261


Table 4.14.2: Impact of transactional leadership on employee productivity

Model




1 (Constant) 15.299 1.648 9.282 .000

transactional -.113 .124 -.092 -.917 .361

a. Dependent Variable: productivity





independent variable (transactional leadership) on dependent variable (employee




interprets that:


is explained by independent variable (transactional leadership). Here significance value is

0.361, which means that the level of confidence is lower than expected. (β= -0.092,

r=0.009)

Note:




As per the table 4.14.2 confidence level is below 90%, so null hypothesis is being

accepted and alternative hypothesis is rejected i.e. there is no significant impact of

transactional leadership on employee productivity.



H02: Different leadership styles do not help in providing job satisfaction to

employees.

H12: Different leadership styles help in providing job satisfaction to employees.

4.15 To know whether autocratic leadership has a significant effect on job satisfaction or

not.




1 .226a .051 .041 2.25250

Dependent Variable: job satisfaction

Table 4.15.2: Impact of autocratic leadership on job satisfaction

Model




1 (Constant) 10.537 1.611 6.542 .000

autocratic .360 .157 .226 2.297 .024






independent variable (autocratic leadership) on dependent variable (job satisfaction). In

this method all independent variables come into analysis and effect of independent

variable on dependent variable will be tested.


interprets that:

Table 4.15.1 reveals that 5.1% of variance in dependent variable (job satisfaction) is

explained by independent variable (autocratic leadership). Here significance value is


Note:





and alternative hypothesis is accepted i.e. there is a significant impact of autocratic

leadership on job satisfaction.



4.16 To know whether democratic leadership has a significant effect on job satisfaction

or not


Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .068a .005 -.006 2.30696


Table 4.16.2: Impact of democratic leadership on job satisfaction

Model




1 (Constant) 13.086 1.661 7.880 .000

democratic .062 .092 .068 .677 .500

a. Dependent Variable: job satisfaction





independent variable (democratic leadership) on dependent variable (job satisfaction). In




interprets that:


explained by independent variable (democratic leadership). Here significance value is


Note:




As per the table 4.16.2 confidence level is 50%, so null hypothesis is being accepted

and alternative hypothesis is rejected i.e. there is no significant impact of democratic




4.17 To know whether delegative leadership has a significant effect on job satisfaction or not.




1 .090a .008 -.002 2.30296


Table 4.17.1: Impact of delegative leadership on job satisfaction

Model




1 (Constant) 12.898 1.473 8.754 .000

delegative .086 .096 .090 .895 .373






independent variable (delegative leadership) on dependent variable (job satisfaction). In




interprets that:


explained by independent variable (delegative leadership). Here significance value is


Note:




As per the table 4.17.2 confidence level is 72%, so null hypothesis is being accepted

and alternative hypothesis is rejected i.e. there is no significant impact of delegative




4.18 To know whether bureaucratic leadership has a significant impact on job satisfaction

or not.




1 .029a .001 -.009 2.31137


Table 4.18.2: Impact of bureaucratic leadership on job satisfaction

Model




1 (Constant) 14.714 1.801 8.170 .000

bureaucratic -.031 .107 -.029 -.288 .774






independent variable (bureaucratic leadership) on dependent variable (job satisfaction). In




interprets that:


explained by independent variable (bureaucratic leadership). Here significance value is

0.774, which shows that level of confidence is much less. (β=-0.029, r=0.001)

Note:




As per the table 4.18.2 significance level is very much less, so null hypothesis is

being accepted and alternative hypothesis is rejected i.e. there is no significant impact

of bureaucratic leadership on job satisfaction.



4.19 To know whether transformational leadership has a significant impact on job

satisfaction or not.




1 .554a .307 .300 1.92536


Table 4.19.2: Impact of transformational leadership on job satisfaction

Model




1 (Constant) 25.484 1.724 14.778 .000

transformational -.601 .091 -.554 -6.584 .000






independent variable (transformational leadership) on dependent variable (job

satisfaction). In this method all independent variables come into analysis and effect of



interprets that:


explained by independent variable (transformational leadership). Here significance value

is 0.000, which shows that level of confidence 99%. (β=-0.554, r=0.307)

Note:




As per the table 4.19.2 the level of confidence is 99%, so null hypothesis is being

rejected and alternative hypothesis is accepted i.e. there is a significant impact of

transformational leadership on job satisfaction.



4.20 To know whether charismatic leadership has a significant impact on job satisfaction

or not.




1 .198a .039 .029 2.26648


Table 4.20.2: Impact of charismatic leadership on job satisfaction

Model




1 (Constant) 11.221 1.505 7.455 .000

charismatic .175 .087 .198 2.002 .048

a. Dependent Variable: jobs atisfaction





independent variable (charismatic leadership) on dependent variable (job satisfaction). In




interprets that:


explained by independent variable (charismatic leadership). Here significance value is

0.048 which is less than 0.05; it shows that level of confidence 95%. (β=0.198, r=0.039)

Note:






charismatic leadership on job satisfaction.



4.21 To know whether transactional leadership has a significant impact on job

satisfaction or not.




1 .302a .091 .082 2.20415


Table 4.21.2: Impact of transactional leadership on job satisfaction

Model




1 (Constant) 19.453 1.688 11.526 .000

transactional -.397 .126 -.302 -3.140 .002

a. Dependent Variable: job satisfaction





independent variable (charismatic leadership) on dependent variable (job satisfaction). In




interprets that:


explained by independent variable (transactional leadership). Here significance value is

0.002 which is less than 0.05; it shows that level of confidence 95%. (β=-0.302, r=0.091)

Note:






transactional leadership on job satisfaction. The value of beta is negative which

indicates that the impact of transactional leadership can decrease job satisfaction

among employees.

The above analysis shows that different leadership styles exist in an organization and that

the respondents are satisfied with some of the styles followed. Through the correlation

and regression tools for analyzing data, we got to know that different leadership styles

affect employee’s productivity and job satisfaction.

Employees are more inclined and satisfied with democratic, delegative and charismatic

leadership styles and tend to produce high under these styles more effectively than other

styles.



CHAPTER – 5

CONCLUSIONS AND RECOMMENDATIONS



This chapter talks about the different findings which the researcher has reached after

analyzing the data collected from different respondents and then the recommendations

are given so as how improvements can be made.

5.1 FINDINGS OF THE STUDY:

It was found that autocratic style was least present in the two organizations.

Around 71% of the people disagreed that their superior is one who follows the

authoritarian style and carrot and stick approach towards the employees to get the

tasks done. In today’s time it is usually considered that the leader should not be

authoritarian as it negatively affects employees’ productivity and job satisfaction

among them.

Approximately, 66% of the respondents have agreed of the presence of

democratic leadership in their organization and according to the analysis of data it

was found that democratic leadership lays a substantial positive impact over

employees’ productivity and helps in creating a sense of satisfaction among

employees. Employees like it when they are asked for inputs by their superiors for

a given situation.

The study has shown that a majority of employees have agreed and felt the

presence of delegative leadership style in their organization. This indicates that

the manager has confidence in his employees that they would finish off the task

assigned to them and handle the authority given to them in the most appropriate

way. This approach creates self confidence and motivation among employees.

Employees in the chosen to organizations have disagreed over the existence of

bureaucratic leadership in their organization which shows that in today’s era

employees do not have to told what is to be done and how to do their tasks. This

leadership style was seen at the lower level of the organization structure where the

technical work is taken care of. Employees at that level have to follow a set of

standards to ensure safety and security for all.

Approximately 67% of the employees have agreed on the presence of

transformational leadership in the organization. This indicates that their superior



is usually energetic and enthusiastic about a task. The analysis of data shows a

negative relationship between transformational leadership and productivity and

job satisfaction, which shows that such leaders are present in the organization but

they are not using their passion and energy in a way to transform and motivate the

work culture of the organization.

Only 45% of the employees say that charismatic leadership is present in their

organization. The analysis of data shows that the leader is not using his

charismatic personality effectively to increase employee productivity. The

manager should adopt only such characteristics of the charismatic style which

lays a positive impact on the productivity of the employees and hence helps in

achieving the organizational vision. On the other hand, the employees feel

satisfied with their jobs when this kind of leadership style is exercised on them.

Majority of the respondents have disagreed that transactional leadership is present

in the organization they are working with but also 14% of them say that

transactional leadership do exist and that their productivity and job satisfaction

declines under this leadership style.



5.2 CONCLUSIONS:

The past studies state that new societal conditions are eliciting new forms of

leadership necessary to launch and sustain the transitions towards more

knowledge intensive societies. As per the analysis it was found that people are

more inclined towards leaders who bring transformational change rather than

those following autocratic approach. In today’s changing era, people tend to work

with equality and harmony.

Nowadays management is following an ambidextrous approach wherein the

leader has got the skills and ability to think from all directions. They are the ones

who empathize rather than sympathize with their employees. Leaders in the past

for example – Hitler, who followed the authoritarian approach towards his people,

are not appreciated in today’s work environment. Employees work in harmony

with those who are charismatic and have a transformational quality.

Leadership in the technological sector today is as significant as in Non – IT

sector. Transformational leadership qualities of IT leaders are directly associated

with their passion to learn more about the enhanced technologies and innovation.

Unlike past instances where leaders were known to hold all the power and

authority, today employees are looking forward to a more cordial and mutual

relationship with their employees. The leaders on the other hand understand the

needs of their employees and are finding newer ways to motivate them in

achieving their tasks.

In the past studies it was found that seniors and top management perceives

themselves as being better skilled than upper-middle and middle level

management people. It was found that lacked in the areas of resourcefulness and

building relationships. The leadership gap so identified in the report can be

covered by sensitizing and making the leaders and employees aware about the

strategies followed by the organization, enabling the employees by giving them

proper training to improve them in their skills and perceptions and by supporting

them in performing their tasks.



It is observed that charismatic leadership motivates followers to give extra output

than what is expected from them otherwise. It also achieves self-actualization in

its followers. It is seen that charismatic leadership works in a social structure to

heighten the morale of the followers. The analysis of the data collected also shows

that employees produce higher output and are satisfied when they worked under a

charismatic leader. This leadership style along with democratic and delegative

leadership styles are most appreciated in a leader and motivates employees the

most.



5.3 RECOMMENDATIONS:

The management should follow democratic approach and should ask the

employees for their suggestions while taking decisions for the organization. They

should be treated as equals rather than at a step below.

Autocratic style of leadership should be avoided and employees should me

motivated by providing them with newer and more impressive rewards. For

example: Appreciating an employee in front of everyone motivates him as well as

other employees to work more better and effectively.

The manager should provide them with a culture and environment so good that it

helps in motivating the employees and make them work towards their personal

growth as well as the organization’s growth.

The life of any organization lies in the satisfaction of its employees. If the

employees are not satisfied with their jobs, the organization is doomed. They

should provide the employees the power to make decisions for the tasks which

they are assigned.

The organization’s leaders must listen to their employees’ needs and problems

and must try to solve their queries with an open heart. They should try and make

the employees feel connected with the organization if they want them to work

towards achieving ultimate organizational objectives.



REFERENCES


effectiveness of leadership styles in it sector

Documents

tata consultancy services

closed ended type

total revenue generated

transformational leadership qualities

providing job satisfaction

services segment revenue

business process outsourcing

transactional leadership styles