CHAPTER-1

INTRODUCTION
The European states have experienced structural changes in labour market and living
conditions during the last two decades, which are discussed as factors that may influence
Moral levels in populations (Theorell & Vogel, 2003).
The structural changes have led to new demands on employees flexibility and ability to
handle changes, which is referred to as a Moral risk (Aronsson & Sjgren, 1994, Arnetz,
1996). There is no consensually agreed-upon definition of culture. Culture is variously
defined in terms of commonly shared processes: Shared ways of thinking, feeling and
reacting; shared meanings and identities; shared socially constructed environments;
common ways of interpreting how technologies are used; and commonly experienced
events (House, Wright & Aditya, 1997). It is almost self-evident and no surprise to
common sense that leadership possesses such power, as it is a social process itself and the
social climate develops as social process. Studies of different kinds have verified the role
of leadership style for the climate formation; correlation studies (EKvall and Arvonen
1984, EKvall, Frankenhaeuser and Parr 1996), case-studies (tedgard 1987), actionresearch (Marrow, Bower and seashore 1967), and studies with experimental design
(Litwin and Stringer 1968). Yet it is not productive to include leadership in the climate
concept and treat it as a special dimension of the climate alongside of other dimensions.
James and jones (1974) opposed making leadership style a part of the climate concept.
They pointed out that closeness of supervision is a leadership process variables, and
that it should be treated as such; nothing is to be gained by bringing it into the climate
concept.
With the ever changing business landscape of more and innovative competitors, most
service firms recognize the need to introduce innovations and new technologies within
their organizational processes to stay in the market, or to retain their competitive
advantage compared to their rivals. One of the most often used models explaining
technology acceptance is the technology acceptance model (TAM) by Davis et al. (1989).
It was the first model to state that psychological factors, perceived usefulness and
perceived ease of use of the new technology, are central in influencing its use. Since the
model allows for the addition of external variables, numerous extensions have been
made. These relate to technology-based factors like perceived enjoyment and perceived
1

attractiveness (Van der Heijden, 2003, 2004), personal factors like personal
innovativeness (Agarwal and Prasad, 1998, 1999), or interpersonal factors like trust
(Geffen et al., 2003). Also concrete management actions like offering training and
education, and organizational technical support have been shown to play a role in
influencing individual usage of innovations (Schillewaert et al., 2005). Less attention,
however, has been given to the influence of the overall leadership style in an
organization. We, therefore, extend TAM with two styles: transactional leadership and
transformational leadership. These concepts were developed by Burns (1978) on the basis
of observing political leadership, and extended by Bass (1985). Despite the fact that the
styles cannot be seen as opposite ends of a continuum (Avolio and Bass, 1991), they are
different in nature. We expect them to play similar roles in the context of technology
acceptance, but via different mechanisms.
In this observe, the responsibility of leaders, as well as their performance in increasing
their subordinates is above some question. Although more leadership styles introduced
(eg. transformational and transactional) but out of which some is more productive for
increasing subordinates performance and some is not more important. Effective
leadership styles have much solution for arising problem in the subordinates work and
increasing their performance. In fact, the performance of leaders, as with performance of
employees in universal, is a build in relation to diversity fundamental dimensions such as
different leadership styles and advance technology acceptance.
With all these matters considering the main purpose of this chronological mixed methods
study is t investigate effective leadership styles that enhance subordinates performance in
first phase with intent of using this information in the second phase to generalize the
findings. In particular, most of the research exploring the different effective leadership
styles relation with the performance and also introduced innovative technology in the
developing countries & services and manufacturing companies.
The main purpose of this study is to investigate the different effective leadership styles.
The paper is structured as follows. First, a short literature overview is given on the
concept of leadership styles. Secondly, a conceptual framework is built by formulating
hypotheses on the effects of leadership styles and the employees performance and Moral.
Thereafter the empirical study is described and its results have been presented. Therefore,
the present study is aim to investigate the perceptions of leaders and subordinates
2

performance in the small medium and large organization in India and other countries
using different leadership styles.
Leadership styles:
There are different approaches to studying leadership. Yukl (1994) considers the trait
approach and the charismatic/transformational leadership approach as two major research
avenues to the concept of leadership. The first, focusing on personal attributes of
successful leaders, has mainly been used in psychology. In organizational studies, the
second approach is used more often. Originally the theory of charismatic leadership was
coined by House (1977), stating that a charismatic leader is generously accepted and
obeyed by followers by having a strong need for power and a high self-confidence.
Parallel to this conception of charismatic leadership, the concepts of transformational and
transactional leadership were developed by Burns (1978) on the basis of observing
political leadership. Bass (1985) further extended these notions and applied them in an
organizational setting. In his theory transformational and transactional leadership are not
defined to be on a single continuum, but as two separate concepts. A leader could possess
elements of both styles. The transformational style of leadership is characterized by
charisma, individual consideration, intellectual stimulation, and inspirational motivation.
Charisma can be defined as the degree to which the leader behaves in admirable ways
that cause followers to identify with the leader (Judge and Piccolo, 2004) or the amount
of faith, respect, and inspiration he instils (Bass, 1985; Bycio et al., 1995). Individual
consideration refers to the ability of a leader to consider subordinates individually, by
delegating projects to stimulate people, creating learning experiences, and paying
attention to the personal needs of these followers. Intellectual stimulation is the act of
encouraging new ways of thinking, reasoning before acting, and enabling subordinates to
analyze problems from many different viewpoints (Avolio and Bass, 1988). Finally
inspirational motivation is inspiring and empowering followers to enthusiastically accept
and pursue challenging goals and a mission (Bass, 1985). Transactional leadership on the
other hand is characterized by contingent reward and management-by-exception. The
former refers to whether a leader rewards his followers when they act in accordance with
contracts, rules, norms, agreed-upon objectives, or expend the necessary effort on a
certain task (Howell and Avolio, 1993). (Mitch McCrimmon) introduces some benefits of

transformational leadership style. There is no doubt that being able to inspire people,
stimulate them to think differently and pay attention to their needs are great
ways for a leader to behave. If you have good content and integrity and can present a case
for change with enough enthusiasm to inspire people, you are more likely to win them
over than if your communication style is sleep-inducing. Being inspirational is most
useful in situations where there is no evidence or the facts are unclear. This is especially
true with clashes of values or standards of behavior. (Martin Luther King) appealed to a
basic sense of fair play to move the U.S. Supreme Court to outlaw segregation on buses.
The facts alone wouldn't have done it.
Democratic Style:
The Democratic Leadership Style was first described Lewin, Lippitt, and White in 1938
along with the autocratic leadership and the laissez-faire leadership styles. The
democratic style was also included by (Daniel Goleman in 2002) as one of his six
leadership styles. The democratic leader gives followers a vote in nearly every decision
the team makes. The process involved with being a democratic leader is very time
consuming because decisions are nearly always made together.

The democratic

leadership style is able to quickly build flexibility and responsibility and can help identify
new ways to do things. This leadership style is best used when the followers are
knowledgeable about the organization's process and change is needed. For example, this
style is used when the leader needs to introduce fresh ideas into the organization to help
with an old process.
Democratic bosses are consultative, inclusive, humanistic, and focus on people. They
build consensus, thrive on informality, are tolerant of conflict, and get an entire team
credit. There are two types of democratic managers. The consultative democrat will listen
carefully to everyones input, and even change their approach if it seems reasonable, but
makes the final decision. On the other hand, the participative democrat relies on group
consensus to make decisions. (John Kotter).
Laissez Faire style:
Subordinates and employees are allowed and appreciated to participate in decision
making; this is Laissez Faire style of leadership (Lewin, Liippit, and White, 1939). But to
get fruitful results, employees must be responsible, experienced and mature. Leaders who
adopt this style of leadership (Schilling, 2008) provides a guideline or policy to achieve
4

goals and supervise the employees in order to make followers work by remaining on
track, the remaining work is of employees that how they satisfy the customers. As many
employees are sincere with their work and cooperative with each other, they can get goals
easily (Ogbonna et al., 2000).
The Laissez Faire Leadership Style was first described (Lewin, Lippitt, and White in
1938) along with the autocratic leadership and the democratic leadership styles. The
laissez faire style is sometimes described as a "hands off" leadership style because the
leader provides little or no direction to the followers. The characteristics of the laissez
faire style include: Allows followers to have complete freedom to make decisions
concerning the completion of their work or ask questions of the leader. The leader
provides the followers with the materials they need to accomplish their goals and answers
questions to the follower's questions. (Lewin, Lippitt and White) were one of the first to
categorize leadership styles in terms of behavioral characteristics. Prior to their work,
leadership traits were the focus of leadership studies.
The impact of leadership on subordinates job satisfaction
Results from several studies indicate that there is a relationship between perceived
leadership style and the job satisfaction of subordinates. Chiok Foong Loke (2001) found
that leadership behaviors explained 29% of job satisfaction and Lucas (1991) that
leadership style perceptions predicted 36.6% of the variance in job satisfaction scores
among nurses. Bratt et al. (2000), present results indicating that job stress and nursing
leadership are the most influential variables in the explanation of job satisfaction among
nurses. Sorrentino et al. (1992) found significant correlations between head nurse
behaviour and job satisfaction in subordinates as well as a moderating effect of leadership
on job anxiety and support perceived by nurses. Upenieks (2002) found that clinical
nurses employed at magnet hospitals experience greater levels of empowerment and
job satisfaction than do nurses employed at non-magnet hospitals. This is due to access
to work empowerment structures within their practice environments. Differences in
leadership effectiveness between magnet and non-magnet nurse leaders that accounted
for differences in job satisfaction of nurses included greater visibility and responsiveness
by magnet leaders, better support of nurse autonomous decision-making by magnet
leaders and greater support of a professional nursing climate among magnet leaders.

High power motivation in nurse managers has been found to correlate negatively with use
of good leadership behaviours and high staff nurse job satisfaction. Managerial
motivation for achievement, on the other hand, correlated positively with use of good
leadership behaviours and high nurse job satisfaction (McNeese-Smith, 1999). Skogstad
& Einarsen (1999) found positive correlations between a changes centered leadership
style and subordinates job satisfaction, organizational commitment and evaluations of
the leaders competence. Upenieks (2003) investigated nurse leaders perceptions of what
comprises successful leadership in todays acute inpatient environment. The results show
that 83% of the nurse leaders validated that access to power, opportunity, information,
and resources creates an empowered environment and a climate that fosters leadership
success. Access to these factors also enhances good work satisfaction among nurses.
Research results from several studies indicate that both consideration and initiating
structure behaviours of leaders are positively related to job satisfaction among
subordinates (Kennerly, 1989, Bare-Oldham, 2002, Alsubaie, 1997).
Boumans & Landeweerd (1993) found that nurses are most satisfied if the head nurse
pays much attention to both social and instrumental leadership and that social
leadership alone also contributes positively to nurses reactions to their job, whereas
instrumental leadership alone leads to Moral complaints. Butler & Cantrell (1997) also
found both consideration and initiation of structure leadership behaviour to have positive
effects on the productivity of group members. Other studies reveal a positive relationship
only between consideration leadership behaviour and job satisfaction among subordinates
(Zigrang, 2000, Payden, 1997) or at least that this relationship is stronger than the one
between initiating structure leadership behaviour and job satisfaction (Haddad &
Samarneh, 1999, Pakard & Kauppi, 2000, Pool, 1997). Results by Schriesheim &
Murphy (1976) indicate that in low-stress jobs, leadership consideration enhances job
satisfaction and performance, but in high-stress jobs, leadership structure is helpful. High
structure has dysfunctional effects only when accompanied by low consideration.

CHAPTER-2
COMPANY PROFILE
2.1 HISTORY
ONGC which was incorporated on June 23, 1993 is a public sector petroleum company in
India. It is the most valuable country in India by market capitalization contributing 77% of
Indias crude oil production and 81% of Indias natural gas production. It is the highest
profit making corporation in India. It was set up as a commission on August 14, 1956. It is
involved in exploring and exploiting hydrocarbons in 26 sedimentary basins of India. It
produces about 30% of Indias crude oil.
Sales $9.78 billions
Profits $2.16 billions
Assets $19.18 billions
Market Value $27.86 billions
Employees 38,033
ONGC has a unique distinction of being a company with in-house service capabilities in all
the activity areas of exploration and production of oil & gas and related oil field services.
Needless to emphasize, this was made possible by the men & women behind the machine.
Over 18,000 experienced and technically competent executives mostly scientists and
engineers from distinguished Universities / Institutions of India and abroad form the core of
our manpower. They include geologists, geophysicists, geochemists, drilling engineers,
reservoir engineers, petroleum engineers, production engineers, engineering & technical
service providers, financial and human resource experts, IT professionals and so on.
7

2.2 ORGANIZATION STRUCTURE

2.3. LIST OF KEY MANAGEMENT PERSONNEL

MR. SUBIR RAHA (CHAIRMAN & MD-ONGC)

Mr. Subir Raha Receives CHEMTECH-CEWs Achiever Of The Year Award
Mr. Subir Raha bags SCOPE Individual Excellence Award for his outstanding
contribution to Public Sector Management.
Mr. Subir Raha has been awarded as the CEO Business Leader of the Year in
recognition of his Leadership Excellence at Indian Leadership Summit.
Was awarded the Grid Leadership Award for his outstanding contribution in
the field of Corporate Management from Dr. P.N. Singh Foundation.
8

 Assumed badge-of-office of the President of the International Federation of

Training & Development Organizations, Lisbon, Portugal, May 03, 2003.
Mr. Raha secured the individual award for Excellence in Creativity &
Innovation in 2002.
Golden Peacock Award for Excellence in Corporate Governance was received
by Mr. Raha on behalf of ONGC from Lord Swaraj Paul on 2nd in recognition
to the contribution towards Corporate Governance, and helping in giving back to
the society the best services and products with transparency and accountability.
2.4 CURRENT SALES, PRODUCT MIX

ONGC Group of Companies comprises of Oil and Natural Gas Corporation

Limited (ONGC - The Parent Company); ONGC Videsh Limited (OVL a
wholly owned subsidiary of ONGC); ONGC Nile Ganga BV (ONG BV - a
wholly owned subsidiary of OVL) and Mangalore Refinery and Petrochemicals
Limited (MRPL - a subsidiary of ONGC). Oil and Natural Gas Corporation
Limited (ONGC) is India's Most Valuable Company, having a market share of
above 80% in India's Crude Oil and Natural Gas Exploration and Production.
ONGC registered the highest profit among all Indian companies at US $ 1.92
billion (Rs. 8664.4 Caror) in the year 2003-04. Its production of Crude Oil in
2003-04 was 26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC
also produce Value-Added Products (VAP) like C2-C3; LPG; Naphtha and SKO.

ONGC Videsh Limited (OVL) is overseas arm of ONGC, engaged in Exploration

& Production Activities. It trans-nationally operates E&P Business in 10
countries, making ONGC the biggest Indian Multinational Corporation. In recent
years, it has laid footholds in hydrocarbon acreage in various countries including
Ivory Cost and Australia. ONGC Nile Ganga BV is a wholly owned subsidiary of
OVL and has equity in producing field in Sudan.

ONGC envisages organizing Import/International Sale of Crude Oil and Export of

Petroleum Products through Tendering Procedure for all the Group Companies.
However, it would be

restricted to the Companies/ Firms/ Vendors registered

with ONGC on its approved Vendor Lists.

Subsidiaries of ONGC:
9

1 ONGC Videsh Limited (OVL)

2 Mangalore Refinery & Petrochemicals Limited (MRPL)

2.5 MARKET POSITION

Ranking 402nd in the Fortune Global 500 list for 2006, up from 454 th last year,
based on revenues; ONGC is ranked 115 th in new list (based on profits ). Leading

all Indian corporate

Topped the list of sensex Indian companies figured in Business Weeks first annual
ranking of Asias 50 best-performing listed companies drawn from a list of 625

Asian firms, ONGC was ranked third among the 50 best Asian firms.
Ranked 158th amongst the worlds largest companies as per market capitalization

on 31st March 2006 in the 10th annual Financial Times Global listing.
Leads the list of Indian corporate titans, in the Forbes Global 2000, with 256 th
ranking in list of 2000 business entities (including 33indian firms) based on sales,

profits Assets and Market Valuation.

Sole Indian entry into the UNCTADs top 50, non financial Transnational
Corporations from developing countries ranked by foreign assets.

10

Ranked 18th amongst 50 publicly traded global companies in oil &Gas industry
based on market capitalization and 15thy amongst 2 listed integrated Oil & Gas

companies.
Conferred the Golden Peacock Award for the Corporate Governance during the
International Conference on Corporate Governance.

Indian Ranking/Recognition:

Bagged the prestigious NDTV Profits Business Leadership Award in the Oil &

Gas category.
Topped the Business Today list of Most Valuable companies in India for the
second year in a row. In the ranking, ONGC topped all the three categories viz.

Market Capitalization, Net Profit and Net Worth.

Topped Business Indias 100 listed of Indian companies, based on a weighted
average of several parameters, including Market Capitalization, Profit After

Tax(PA), Net Fixed and Net Sales.

Ranked 11th in the Economic Times 500 Ranking with the highest Market
Capitalization, and Net Profit k, mainly due to lower P/E ratio and Return on Net
Worth.

Ranked as the Most Respected Company in the PSU category in the 2006 Business World
Survey released n Business World Magazine (June 2006).

Today, ONGC is the navratna

company of India; and making this possible is a dedicated team of nearly 35,000-40,000
professionals who toil round the clock .It is this toil, which amply reflects in the
performance figures and aspirations of ONGC. The company has adapted progressive
policies in scientific planning, acquisition, utilization, training and motivation of the team.
At ONGC everybody matters, every soul counts.
ONGC has a unique distinction of being company with in house service capabilities in all he
activity areas of exploration and production of oil & gas and related oil field services.
Company has adapted progressive policies in scientific
The men & women behind this machine made this possible. Over 18,000 experienced and
technically competent executives mostly scientists and engineers from distinguished
Universities /Institutions of India and abroad from the core of our manpower. They include
geologists, geophysicists, geochemists, drilling engineers, reservoir engineers ,petroleum

11

engineers ,production engineers ,engineering & technical service providers ,financial and
human resource experts IT professionals and so on.
Behind the excellent results achieved is a work force of 35000 strong belonging to various
discipline of the company actively in the persistent search of oil and infuse with a new
ethos and productive work culture. The Company is aware that its success is mainly due to
its greatest assets its people a multifaceted, multidisciplinary group with complete n- house
capabilities for all activities in the industry. To meet the requirement of manpower, revised
manpower norms for operation of drilling rigs have been approved and implemented
.Exercise for other operational utilization of existing human resource special need based
studies are being carried out region-wise.
To meet the challenges of the future ONGC has to diversify its activities with zero
manpower growth. Attempts have been made to form out the low technology jobs. A major
thrust is being given to the introduction of multi-craft manning. This will result in job
enrichment.
2.6 DIRECT COMPETITORS
- GAIL
- SAIL
2.7 FUTURE PLANS
a) Situational leadership is new addition to the existing leadership styles.
b) An ideal leader studies the overall situations, draws conclusion & adopts the
leadership style which is most appropriate to the prevailing situations. This is the
essence of situational leadership.
c) The best leadership style is situational.
d) An ideal leader is one who can adjust his styles of functioning as per the situations
within which he has to operate. This means the internal & external environment.
e) A leader may act as a director at one time & also as a democratic leader on some
other occasions. A good leader is one who studies situations around him & adopts the
most suitable style of leadership.
f) A situational leadership is a combination of all types of leaderships.
g) A situational leader knows different leadership styles but selects one particular style,
which is most, appropriate to a given situation.
h) He adopts flexible approach in his style of functioning. This makes his leadership
effective & result-oriented. A situational leader knows when to use a particular style.
He makes corresponding adjustments in his styles.
12

Contingency Leadership Theory:

1) Fiedlers Contingency Theory:
While discussing leadership theories, Fiedlers contingency theory is the most thoroughly
tested because it is the result more than thirty years of research. Contingency theory
assumes that the performance of the leader depends upon the two interrelated factors:
Firstly, the degree to which the situation gives the leader control & influence i.e. the
likelihood that a leader can successfully attain the job, & Secondly, the leaders basic
motivation i.e. whether the leaders self-esteem depends primarily on attaining the task or
on having close relations with others.
Fiedler believes that leaders are either task motivated or relationship-motivated. These
two motivational factors are almost equal to concern for production or concern for
people. Task motivated leaders seem to be effective in extreme situations when they have
either very little control or a great deal of control over situational variables. Relationshipmotivated leaders are found to be effective in moderately favourable situations. In the
words of Fiedler everything points to the conclusion that there is no such thing as an
ideal leader. Instead, there are leaders & there are situations. Fiedler points out that it is
comparatively easy to move leaders to a suitable situation than to tamper with their
personalities by trying to get task- motivated leaders to become relationship- motivated or
vice versa.
2) Path- Goal Theory:
Path- Goal theory gets its name from the assumption that effective leaders can increase
subordinate motivation by:
a) Explaining the subordinates perception of work goals.
b) Providing rewards for goal attainment.
c) Clarifying how goals & desired rewards can be achieved.
Path-goal theory stress that motivation is essential to effective leadership. According to
R. J. House & T. R. Mitchell leaders can enhance motivation by increasing the number
& kinds of personal payoff to subordinates for work-goal attainment & making paths to
these payoffs easier to travel by clarifying paths, reducing road blocks & pay falls &
increasing the opportunities for personal satisfaction en route. Personal characteristic of
13

sub-ordinates, environmental pressure & demand on subordinates will vary from situation
to situation. The advocates of path-goal theory emphasize that managers need to rely on
four different leadership styles:
a) Participative
b) Directive
c) Supportive
d) Achievement-oriented.
One major contribution of path-goal theory is its identification on the achievementoriented leadership style. Achievement oriented leaders set challenging goals. They are
confident that subordinates will meet the difficult challenges in a responsible manner.
Path-goal theory states that employees are educated & self-motivated & the managers are
expected to be skilled facilitators rather than just order givers or hand holders.
3) Transactional & Transformational Leadership:
Managing involves carrying out the managerial functions effectively & efficiently. One of
these functions relates to leading in general & to leadership in particular. A distinction
can be made between transactional & transformational leaders. Transactional leaders
identify what subordinate need to do to achieve objectives, clarify organizational goals &
roles, set up an organization structure, reward performance, & are considerate for the
social needs of its followers.
Transformational leaders articulate a vision & inspire followers. They also have the
capacity to motivate, shape the organizational culture, & create a climate favorable for
organizational change. Companies such as IBM & AT&T have program to promote
transformational leadership designed to transform their organizations quickly in order to
be more responsive to the rapid changes in the environment. There are many similarities
between transformational leaders & charismatic leaders with the former being noted for
initiating innovation & change. When one thinks of charismatic leaders, one thinks of
people such as Winston Churchill, Martin Luther King & Mother Theresa who inspired
people through their selfless service.
How to Motivate and Inspire:
How do you increase the business value of the people who work for you? Above all,
remember that they are people, each one an important part of your business family-not
14

just a cog in a human machine that goes through certain muscular motions every day with
time out for refueling and maintenance. Remember that your staff has heart and brains,
feelings and ideas-and is made of the same raw materials as you. Their energies are there
to be used for their own good and for yours.
Some ways of harnessing these energies:
1.

Seeking and using your employee's own ideas.

2.

Keeping employees informed.

3.

Expressing personal interest in employees.

4.

Instilling pride in work well done.

5.

Providing effective supervision.

These techniques are discussed in detail below. They concern various methods of
directing your employees toward your main objective building a profitable business by
satisfying guests and customers. As you put these techniques to use, you will find the job
only half begun. The employee still needs more answers to this very important personal
question: "What is there in it for me?" This is not a cynical question. It is another way of
asking: "How much am I worth?" As owner or manager, you ask yourself the same
question. So do your workers. Moreover, you must provide answers for them as well as
for yourself.
Seeking and Using Employee's Ideas:
To feel very much a part of the hospitality service business and to be given an incentive,
each employee must understand that he is free to contribute ideas. Management must
encourage employee ideas and provide the necessary mechanism for obtaining them.
Suggestion boxes and idea-discussion employee meetings are a couple of possibilities.
Encourage employees to think about problems of the business. Some excellent ideas for
their solution may be forthcoming. As manager, carefully consider all ideas, and if
adopted, commend or reward the giver.
Keeping Employees Informed:
Successful service industry managers build good attitudes in their employees by keeping
them well informed of affairs of the business.
Important methods of informing employees include personal communication, use of a
bulletin board, regular employee newsletter or newspaper, individual written notices and
meetings.
15

For example: Meetings are one of the best forms of management-employee

communication. They should be kept short and purposeful. There are two types of
meetings; they regular stop meeting and the problem or opportunity meeting. Staff
meetings are usually held for supervisors and department heads. However, all employees
should be invited to a staff meeting, probably once a month or perhaps once each quarter.
Topics could include coming events, business trends, notable achievements, and
employee recognition.
The problem or opportunity meeting is called when someone has a problem or an idea
worthy of consideration and assistance by others in the organization. After the first
meeting, the manager usually sets a period of time for considering the problem or idea.
The parties get back together for a follow-up meeting to resolve the matter, having had
time to think it over and reach some conclusions. This form of communication and
mutual effort contributes importantly to the organization's spirit of teamwork.
These procedures make each person feel important to the success of the business. The
employee recognizes his value and sees how his efforts help create success.
Holding regular meetings for the employees are one of the best means of motivating your
staff and building self-esteem. The manager can write up the minutes of the meeting and
distribute these to all concerned on the same day the meeting was held. This practice
summarizes the most important points and makes them readily available for future
referral and use.
Expressing Personal Interest:
Another way to create motivation is the personal conference held in private with each
employee. For example: managers or supervisors should find time at least once each year
to sit down in private with each employee. In a friendly manner, discuss both business
and personal matters. Such talks smooth out problems and difficulties, which may be
blocking the motivation of the employee. The talks are also helpful to you, the supervisor
or manager, as you may receive information which would come to you in no other way.
Instilling Pride in Work:
One definite advantage of employment in the service industries is that much of it is still
of a "craft" nature. Craft work with the hands produces a complete finished product that
can be admired (with accompanying satisfactions. Examples: When the salad girl
completes a beautiful and tempting salad, she can take justifiable pride in her
16

accomplishment. The same can be said for the waitress serving a delicious meal and the
housekeeper who turns out a clean and attractive room. These are tangible products of
work and thus the old-fashioned pride of skilled accomplishment can still flourish in this
industry.
Providing Effective Supervision:
The supervisor is the basic managerial element in the business organization. He forms the
essential link between the general manager and the workers. The entire organization is
dependent on him. He must follow the fundamentals of good management- planning,
organizing, motivating, and controlling. Actually, his functions in the latter two are more
important than the former, but he does operate within all of the management procedures.
Usually, the supervisor is responsible for the training needed within his department. He
owes each person under him the opportunity for training and self-improvement and
should be entitled to similar opportunities himself.
The worker must have good and effective supervision to perform to the best of his ability.
Poor supervision brings about the opposite results. According to an authoritative source,
one-third of all employee job changes can be attributed to poor supervision. Thus, quality
of supervision will largely determine the level of employee performance. Since much
personal motivation is derived from a competent supervisor, your efforts as manager to
improve the quality of supervision will reflect directly in higher employee motivation,
achievement, and morale.
Supervisors should be given the opportunity to occasionally "brush up" on improved
techniques of leadership. Special courses in supervision and technical aspects of the
public hospitality business are offered by the Educational Institute of the American Hotel
and Motel Association, Stephen S. Nisbet Building. Michigan State University, East
Lansing, Michigan, 48824. Write for free catalog of courses. Review Extension Bulletin
E-484, Recruiting and Training Employees in the Service Industries.

Styles of Leadership:
17

Edwin Flippo has defined leadership style as, a pattern of behavior of behavior
designed to integrate organizational & personal interest in pursuit of some objective.
Important styles of leadership:
1) Autocratic Style:
a) Autocratic leadership directs the followers but does not allow the subordinates
to question why.
b) The autocratic leader takes decision & expects other to execute them without any
c)
d)
e)
f)
g)

questions.
There is no communication with the subordinates while taking the decisions.
Such leaders only orders & even threaten.
Workers work out of fear.
Autocratic leader does not delegate authority.
Autocratic leadership has no place in the professional management.

Autocratic leadership style is suitable when:

i.
ii.
iii.
iv.
v.

The leader centralizes authority & dominates decision making.

The leader practices punishment to discipline the subordinates.
The subordinates are not familiar with objectives of the business.
The subordinates are not adequately trained.
The size of business unit is small.

2) Democratic style of leadership:

a) Democratic leadership is constructive & sympathetic towards subordinates.
b) This leadership style is liberal & willing to consider the suggestions of
subordinates.
c) Democratic leadership style gets support & respect from subordinates & is
normally treated as the best type of leadership.
d) Democratic leadership creates participative management.
e) The leader maintains effective & purposeful communication with his
subordinates.
f) The democratic leader acts as a good listener.
g) The subordinates are loyal to democratic leader.
h) A democratic leader practices delegation of authority.
Democratic leadership style is suitable when:
i.
ii.
iii.
iv.
v.

Purposeful participation of employees is required.

Subordinates are matured & enlightened.
Group decisions are required for achieving objectives.
Subordinates are well organized.
Business unit is large with professional management style.

3) Laissez faire or Free rein style of leadership:

a) This leader is rather passive.
18

b) The subordinates are given full freedom to take decisions & actions,
independently.
c) Guidance from the leadership is limited & many matters are left for the
consideration & decisions by subordinates.
d) The leader does not motivate or guide or even encourage the subordinates to take
initiative & interest in the work.
e) The leader is rather indifferent to his responsibilities.
Laissez faire leadership style is suitable when:
i.
ii.
iii.

Leadership is given only for a short period.

Subordinates are capable, mature & responsible.
Subordinates are educated & have capacity to function independently.

4) Intellectual Leadership:
a) Functional leader is usually a professional expert with technical knowledge&
practical experience.
b) Subordinates respect his guidance & opinion, intellectual caliber & capacity to
give correct advice.
c) His knowledge makes him popular & he is able to divert energies of employees
for achieving objectives.
d) Such leaders do not disturb his subordinates unnecessarily & do not like to be
disturbed by them.
e) He considers various problems purely on merit.
f) Such leaders has soft corner for his subordinates & also for the organization.
Intellectual leadership style is suitable when:
i.
ii.
iii.

Management has full faith on the ability & loyalty of the leader.
Subordinates are highly educated & matured.
Organizations are concerned with research & development activities.

5) Bureaucratic Style of Leadership:

a) Bureaucratic leadership is noticed in the case of government departments, Public
bodies & public sector enterprises. It is not effective in the business world.
b) He fails to introduce innovations & flexibilities in the organization as per the need
of situation.
c) Such leaders do not use their discretion. They function within the framework
prepared by rules & regulations.
d) Human element is also lacking in such leadership.
e) A bureaucrat wants his subordinates to follow his orders & instruction in total.
19

f) Delays in decision making are not taken seriously. The overall approach of
leadership is mechanical.
Bureaucratic style is suitable when:
i.
ii.
iii.

Business unit operates like a government department.

Importance is not given to the motivation of subordinates.
Greater importance is given to the rules, procedures & formalities.

6) Situational Leadership style:

a) Situational leadership is new addition to the existing leadership styles.
b) An ideal leader studies the overall situations, draws conclusion & adopts the
leadership style which is most appropriate to the prevailing situations. This is the
essence of situational leadership.
c) The best leadership style is situational.
d) An ideal leader is one who can adjust his styles of functioning as per the
situations within which he has to operate. This means the internal & external
environment.
e) A leader may act as a director at one time & also as a democratic leader on some
other occasions. A good leader is one who studies situations around him & adopts
the most suitable style of leadership.
f) A situational leadership is a combination of all types of leaderships.
g) A situational leader knows different leadership styles but selects one particular
style, which is most, appropriate to a given situation.
h) He adopts flexible approach in his style of functioning. This makes his leadership
effective & result-oriented. A situational leader knows when to use a particular
style. He makes corresponding adjustments in his styles.

Merits of Situational Leadership:

a) The situational leadership is a practical one & is based on real facts of life. The best
leadership style is situational.
b) The situational theory has universal acceptance.
c) It focuses attention not on the personality of the leader, but on the personality of the
organization as a whole.
20

d) The situational leadership is flexible & acceptable. It can operate in any style as per
the need of the situation.
Limitations of Situational Theory:
a) In this leadership, more importance is given to the situation & the importance of
the traits has been given less importance. Leadership should involve both situation
& traits.
b) It offers an incomplete explanation of the leadership process.

OBJECTIVES

Reaction to learning habits, goals and recognition.

To analysis and examine the employees on the basis of individual motivational

and team motivational skills.

To observe what kind of leadership activities are carried out by the superiors in
the organization that full fills the aims and objective of the organization.

To see the aspect of future oriented loyal employees of the organization.

21

LIMITATIONS
Many constraints were involved in doing this study. Some of them are as follows.
The most significant limitation has been the individuals involved in this study
were very busy and did not spare much time in discussion.
The sample size selected for the survey was too small as compared to large
population.
The project was carried out only in the Delhi, so findings on data gathered can be
best true for Delhi only and not applicable to other parts of state and country.
Indian stock market is a market where sentiments play a major role in price; hence 100%
accurate predictions cannot be made about its future path.

22

CHAPTER-3
LITRATURE REVIEW
Leadership has in a number of studies been referred to as one of many possible sources of
employee Moral and stress at the work place (McVicar, 2003, Jonsson, Johansson,
Rosengren, Lappas & Wilhelmsen, 2003) but the magnitude of its impact varies across
studies. Stordeur, Dhoore & Vandenberghe (2001) found leadership dimensions to
explain 9% of the variance in emotional exhaustion and Gordick (2002) found that
transformational leadership explained 2% of the variance in coping with organizational
change and that it was not a significant predictor of perceived stress. In a large
prospective study of a random sample of Swedish employees Oxenstierna et al (2004)
found that lack of decision authority as well as lack of support from work mates were
powerful predictors of longlasting sick leave (at least 60 days). Support from superiors
had no statistically significant effect.
Some studies indicate a moderate relationship between leadership styles and
burnout/emotional exhaustion/depersonalization (Langner, 2002; Webster & Hackett,
1999). Vealey, Armstrong, Comar & Greenleaf (1998) found perceived coaching
styles/behaviours predictive of athlete burnout. But several studies have found no impact
of leadership on Moral of subordinates, or the results indicate that the role of leadership is
inferior to other work related and demographic factors (Mazur & Lynch, 1989, Lubofsky,
2002, Bernin and Theorell, 2003). Stordeur, Vandenberghe & Dhoore (1999) found that
leadership dimensions were not significantly related to burnout once stressors like job
strain, lack of social support, conflict at work and feeling that the job is threatened were
included in the regression model. These findings are supported by results from Gordick
(2002) and Widerszal-Bazyl (2003). Widerszal-Bazyl (2003) points out that social
support plays an especially important role. She suggests that further research should
focus on the indirect relationship between leadership and employee Moral and analyze to
what extent supervisors influence e.g. demands, control and social support, which are
known to have a strong impact on employee Moral.

RESEARCH METHODOLOGY
23

SAMPLE SIZE
100
PRIMARY DATA

Questionnaires Focus groups

SECONDARY DATA
A secondary data is that data that is required to conduct the study and can be obtained
from books, journals, magazines, records etc. Secondary data is data taken by the
researcher from secondary sources, internal or external. Secondary data is collected from
following sources: 1) Magazines and journals
2) Company websites.
3) Internet
4) Books

CHAPTER-4
ANALYSIS AND INTERPRETATION
1. I am satisfied with the benefits (Health insurance, life insurance, etc.) I get from
ONGC
Agree
Disagree
Undecided
Strongly agree
Strongly Disagree
Total

31
79
3
10
27
150

31/150x100 = 20.66667%
79/150x100 = 52.6667%
3/150x100 = 2%
10/150x100 = 6.66667%
27/150x100 = 18%
100%

Question one is about the satisfaction of employees from the benefits they get. From the
above result we analyze that total 53% of employees are dissatisfied with the benefits,
while only 28% are satisfied which is a very low ratio and 2% have no decision.
24

53%

21%
2%
Agree

Dis agree

Undecided

7%

18%

Strongly Agree Strongly Dis agree

2. I feel that my job is secured one

Agree
59
59/150x100 = 39.3333%
Disagree
13
13/150x100 = 8.66667%
Undecided
29
29/150x100 = 19.33333%
Strongly agree
47
47/150x100 = 31.33333%
Strongly Disagree
2
2/150x100 = 1.33333%
Total
150
100%
Question two is about the job security. From the above result we analyze that total 39%
of the employees are confident about their job security and a minor percentage of

25

employees disagree with it while some couldnt come up with a decision.

3. My job does not create any physical aliments

Agree
96
96/150x100 = 64%
Disagree
21
21/150x100 = 14%
Undecided
14
14/150x100 = 9.33333%
Strongly agree
13
13/150x100 = 8.66667%
Strongly Disagree
6
6/150x100 = 4%
Total
150
100%
Question three is about the physical ailments like stress, hypertension, pain etc which an
employee can experience because of routine work. Results show that total 72% of
employees are agreed that their jobs do not create any physical aliment, while total 18%
are disagreed and 9% are confused.

26

64%

14%

Agree

Disagree

9%
Undecided

9%

4%

Strongly AgreeStrongly Disagree

4. There is a clear and effective system of appraisal and career development

Agree
72
72/150x100 = 48%
Disagree
19
19/150x100 = 12.66667%
Undecided
22
22/150x100 = 14.66667%
Strongly agree
21
21/150x100 = 14%
Strongly Disagree
16
16/150x100 = 10.66667%
Total
150
100%
Question four is about the clear and effective system for career growth and total 64% of
employees are agreed upon, while total 24% are disagreed and 15% couldnt decide it.

48%

Agree

13%

15%

Disagree

Undecided

27

14%

11%

Strongly AgreeStrongly Disagree

5. I would recommend my organization to others as a great place to work

Agree
51
51/150x100 = 34%
Disagree
24
24/150x100 = 16%
Undecided
19
19/150x100 = 12.66667%
Strongly agree
39
39/150x100 = 26%
Strongly Disagree
17
17/150x100 = 11.33333%
Total
150
100%
Question five is about the work place experience of employees and total 50% of
employees are agreed to recommend their organization as a great work place, but 13%
couldnt make decision while total 27% are disagreed.

34%
16%

Agree

Disagree

26%
13%

Undecided

11%
Strongly AgreeStrongly Disagree

6. I feel like continuing to work in my organization for the foreseeable future

Agree
31
31/150x100 = 20.66667%
Disagree
49
49/150x100 = 32.66667%
Undecided
36
36/150x100 = 24%
Strongly agree
14
14/150x100 = 9.33333%
Strongly Disagree
20
20/150x100 = 13.33333%
Total
150
100%
Question six is about the future concerns of the employees. Result shows that total 46%
of employees wouldnt want to continue with the current organization, while total 30%
wants to and 24% are confused.

28

21%

Agree

33%

24%
9%

Disagree

Undecided

13%

Strongly AgreeStrongly Disagree

7. I think there are some barriers that need to be eliminated to maximize my

performance
Agree
66
66/150x100 = 44%
Disagree
14
14/150x100 = 9.33333%
Undecided
11
11/150x100 = 7.33333%
Strongly agree
48
48/150x100 = 32%
Strongly Disagree
11
11/150x100 = 7.33333%
Total
150
100%
Question seven is about the barriers that need to be eliminated for maximum performance
and the result shows total 76% of employees are agreed, while total 16% are not and 7%
couldnt decide it.

29

44%

Agree

32%
9%

7%

Disagree

Undecided

7%
Strongly AgreeStrongly Disagree

8. I feel my performance is truly contributing to the well being of the organization

Agree
71
71/150x100 = 47.33333%
Disagree
6
6/150x100 = 4%
Undecided
12
12/150x100 = 8%
Strongly agree
53
53/150x100 = 35.33333%
Strongly Disagree
8
8/150x100 = 5.33333%
Total
150
100%
Question eight is about reading the mindset of employees and result shows that total 82%
of employees think that their performance is contributing to the well being of the
organization, while 9% doesnt think so and 4% are confused.

47%

35%
8%

4%
Agree

Disagree

Undecided

30

5%
Strongly AgreeStrongly Disagree

9. I feel adequate opportunity for periodic changes in duties

Agree
39
39/150x100 = 26%
Disagree
63
63/150x100 = 42%
Undecided
6
6/150x100 = 4%
Strongly agree
14
14/150x100 = 9.33333%
Strongly Disagree
28
28/150x100 = 18.66667%
Total
150
100%
Question nine is about the sufficient opportunities for periodic changes in duties. Results
shows that total 61% of employees are disagreed, 35% are agreed and 4% couldnt make
decision. Periodic changes should be given.

42%
26%
4%
Agree

Disagree

Undecided

10. I can make changes to the tasks assigned to me

Agree
17
Disagree
89
Undecided
8
Strongly agree
9
Strongly Disagree
27
Total
150

9%

19%

Strongly AgreeStrongly Disagree

17/150x100 = 11.33333%
89/150x100 = 59.33333%
8/150x100 = 5.33333%
9/150x100 = 6%
27/150x100 = 18%
100%

Question ten asks about the control of employees on their assigned tasks. Result shows
that total 77% of employees have no control to modify their tasks and total 17% are
agreed which is quite low, while 8% are doubtful. Management should provide the
employees certain level of control on their handled tasks. Now the employees are starting
31

to take on more and more challenging projects with confidence. This leaves a manager to
do what they need to do -- manage. It also builds employee self esteem and confidence. A
confident employee is one who is easily motivated.

59%

11%
Agree

6%

5%
Disagree

Undecided

18%

Strongly AgreeStrongly Disagree

CHAPTER 5
FINDINGS
Professionals like Mr. Subir Raha think beyond the obvious and encourage their people to
do the same. They ensure that employees have peen news for exploration and keep an
open mind. It helps the organization to always be ready to look at opportunities for
betterment and the search for new ideas, new practices, new products and new ways of
doing things better goes on continuously.
Customer Orientation: Every professional has two sets of customers whom he must try to satisfy to the fullest
possible extent namely, the external customer (the purchasers, the society at large) and
the internal customer (the employees, his subordinates, peers and bosses). Professionals
like Mr. Raha have ensured that the internal customers are given their due and takes care
of the needs, desires and problems. Thus he has build up a customer orientation within
the organization too which is quite infectious and pervades the entire organization.
32

Stop managing, start leading and cultivate managers: He disliked the notion of management. Most managers in his view over- managed. Those
who over managed helped to create a bureaucratic environment, which according to Mr.
Subir Raha , kills large companies. He decided that ONGCs leaders had to change their
management styles i.e. too much controlling and monitoring .The only way to last at
ONGC was to get on board, to become a lean leader, to adapt oneself to the companys
value and culture.

CHAPTER 6
RECOMMENDATION & CONCLUSION
RECOMMENDATION
The suggestions for the findings from the study are follows

Most of the employees agree that the performance appraisal activities are helpful
to get motivated, so the company should try to improve performance appraisal
system, so that they can improve their performance.

Non financial incentive plans should also be implemented; it can improve the
productivity level of the employees.

Organization should give importance to communication between employees and

gain co-ordination through it.

Skills of the employees should be appreciated.

Better carrier development opportunities should be given to the employees for

their improvement.

If the centralized system of management is changed to a decentralized one, then

there would be active and committed participation of staff for the success of the
organization

33

CONCLUSION
This document aims at providing employees and management members with the
information that can be beneficial both personally and professionally. Every business
enterprise has multiple objectives including of adequate profit for payment of a
reasonable rate of return to the owners and for investment in business through satisfaction
of customers, maintenance of a contended workforce and creation of a public image. The
basic job of management of any business is the effective utilization of available human
resources, technological, financial and physical resources for the achievement of the
business objectives. This project entitled as Employee motivation was done to find out
the factors which will motivate the employees. The study undertakes various efforts to
analyze all of them in great details. The researcher in this project at the outset gives the
clear idea of the entire department existing in the company. From the study, the
researcher was able to find some of the important factors which motivate the employees.
Factors like financial incentives and non financial inventive, performance appraisal
system, good relationship with co-workers, promotional opportunities in the present job,
employee participation in decision making are very much effect the level employee
motivation.

34