Leadership Style and Its Effects

8/2/2019 Leadership Style and Its Effects

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LEADERSHIP STYLE AND ITS

EFFECTSON ORGANIZATIONALCOMMITMENT AND JOB

SATISFACTIONOF EMPLOYEES INABBOTT HEALTHCARE PVT.LTD.

By,

ANIT DATTAM.PHIL 3RD TERM


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PHARMACEUTICAL INDUSTRYIN NEPAL

APPON (Association of Pharmaceutical Producers ofNepal) was established in the year 1990A.D to facilitate, andimprove the service of Pharmaceutical companies in co-ordination with different government bodies, medical fraternityand Pharmaceutical business houses.

In Nepal there are more than 300 Pharmaceuticals companiesare doing business. Among them 55 are Nepalipharmaceuticals companies, more than 200 Indianpharmaceuticals companies and rest are the companies fromthird countries.

The National Drug Policy 1995 has directed all the governmentministries to include drug industry as a priority sector in Nepal.But even after a decade, domestic industries feel that they arenot getting enough attention from the government.


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RESEARCH AIMAND OBJECTIVES

The main aim of the study is to recognize the role of managerial leadership and how it

helps to make employees satisfaction in the medicine or pharmaceutical business inNepal.

The study must give the essential ideas regarding the role of managerial leadershipwith motivating employees with the help of the three core objectives.

First is to identify the various needs and interest of the employees that are usually value most to

them. Second is to determine if there are any existing substitutes and the level of its effectiveness.

And third is to discover the various actions, techniques and method in employees satisfaction.

The study examines the following questions:

1. What is the relationship between managerial quality and leadershipbehavior and the employees selfreported behaviors of extra effort andsatisfaction?

2. How the relationship between the managerial quality and leadershipbehavior that motivate the employees in self reported behaviors of extra

effort and satisfaction?


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LITERATURE REVIEW

Leadership is indentified by researchers in the manner that fitstheir perspectives of the leadership and contains the factors ofinterest to the researcher (Yuki, 2002).

Stogdill (1974) reviewed that trait studies of leadership conductedduring these years and concluded that having a specific set oftraits would not cause an individual to become a leader andleadership traits differ in various organizational situations.

Mintzberg (1983) proposed a Power Theory that examines theinternal and external power in an organization. Power inorganizations is the control over technical skills, knowledge orresources and administrators must learn to tap into organizational

power system of authority, expertise, ideology, and politics.


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COMPANY PROFILE

Abbott Healthcare Pvt. Limited global, broad-based health care

company devoted to discovering new medicines, new technologiesand new ways to manage health. The Abbott is one of the leadingMNCs originated from Chicago, USA.

It has expanded its services to 132 countries around the world.

The Company is represented as No.1 Pharmaceutical Company in

India as well as in Nepal.

Abbott Healthcare Pvt. Ltd. manufactures, sells and distributeshealth care products.

Abbott Healthcare Pvt. Ltd. operates as a subsidiary of Abbott

Laboratories (Chicago, USA). The company has approx 50 NRS Crores annual turnovers in

Nepal.

The company is only trading in Nepal as per National drug policy,

Drug Act and trade policy of Nepal. The company is registered tothe DDA (Department of Drug Administration, Nepal) in 1987 A.D.


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METHODOLOGY

The methodology employed in the investigation of the relationshipbetween leadership styles and the commitment of employees to Abbott

healthcare Pvt. Ltd. is the Multifactor Leadership Questionnaire( MLQ),Organizational Commitment Questionnaire(OCQ) and Job satisfactionQuestionnaire(JSQ).

The report includes:

Full descriptions of the various leadership styles

Scale and item level information at all rater levels

A narrative of the leader's style

Agreement levels along ratings

Expected leadership outcomes

Tips for building leadership competency

Suggestions for interpreting the report.


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SUMMARYOF LEADERSHIP STYLESASMEASUREDBYTHE MLQ

Leadership is the ability to influence individuals or groups toward theachievement of goals.

Leadership, as a process, shapes the goals of a group ororganization, motivates behavior toward the achievement of those

goals, and helps define group or organizational culture. Leadership is a dynamic or changing process in the sense that, while

influence is always present, the persons exercising that influence maychange.

If leadership is to be pro-active, it requires vision. This vision is a

shared image of a desirable objective, shaped and defined by theleader and the followers. However, vision itself is not enough. In orderto get others -- followers -- to move in the direction of the desired goal(the vision), the leader must also be able to communicate that visionand the followers must be motivated to follow. Ideally, the followers will

internalize and fulfill this shared vision.


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PROFILEOFTHE SAMPLES

1. MALE 24

2. FEMALE- 6

3. TOTAL - 30

4. AGE - 24 YRS TO 35 YRS 5. OCCUPATION - MARKETTING AND SALES

6. EXPERIENCE - 2 TO 12 YRS


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CORNBACHS ALPHA RELIABILITY COEFFICIENTSSCORES FORTHE MLQ

In this study, Cronbachs Alpha reliability coefficients arecalculated to estimate the reliability of the MLQinstruments.

The average Cronbachs Alpha reliability coefficients forthe MLQ instrument is .902,which is very good.

The results obtained in calculations indicate reasonablyhigh Alphas and that the MLQ factors generally arereliable. Therefore, for this research, the MLQ instrument

is a reliable measure of transformational leadership,transactional leadership and laissez faire leadership.


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CRONBACHS ALPHA RELIABILITYCOEFFICIENT SCORESFORTHE OCQ

Cronbachs alpha coefficients were calculated inorder to assess the reliability of the OCQinstrument for this research.

The Cronbachs alpha reliability coefficients for theOCQ are given calculated gives the averageCronbachs alpha reliability coefficient for the OCQinstrument is 0.901,which is good.


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CRONBACHS ALPHA RELIABILITY COEFFICIENTSCORESFORTHE JOB SATISFACTION

QUESTIONNAIRE

The results for JSQ indicate reasonably high Alphas

and that the Job Satisfaction Questionnaire factorsgenerally are reliable

Therefore, for this research, the job satisfactioninstrument is a measure of job satisfaction for theOrganization.


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RESULTSOFTHE CORRELATION ANALYSIS

As mentioned previously, the hypotheses of the study areconcerned with establishing a relationship between leadershipstyle and employee commitment. The relationship betweenleadership style and organizational commitment was

investigated using two-tailed Pearson analysis. This providedcorrelation coefficients which indicated the strength anddirection of linear relationship. The p-value indicated theprobability of this relationships significance.

Devore and Peck (1993) provided a guideline for assessingresultant correlation coefficients as follows: coefficients less than0.5 represent a weak relationship, coefficients greater than 0.5,but less than 0.8, represent a moderate relationship and

coefficients greater than 0.8 represent a strong relationship.

INDINGS ON OMPARISON OF


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INDINGSON OMPARISONOFLEADERSHIP STYLESANDORGANIZATIONAL COMMITMENTS

The relationships between the different leadership styles, theamount of organizational commitment which a staff memberwill devote to his or her organization has been highly weightedin the direction of the transformational leader.

The success of failure of an organization depends largely onthe quality of its management and leadership people, however,the highly involved, inspirational leader may not be the optimalsolution for all circumstances.

Taking stock of the leaders that exists in an organization, andutilizing their skills in positions for which they are suited is thefirst step in developing the leadership management potential

of any organization, and for this purpose, the MLQ is of great


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THANK YOUFORYOUR TIME

Leadership Style and Its Effects

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