RESEARCH REPORT

Class – FY MMS (C)

Semester II
Team:
231171 – Vineeth Pillai
231131 – Siddhant Warthe
231176 – Akash Issac
231159 – Joseph Philip
231180 – Chetan Zinjad

EXPLORING HOW DIFFERENT LEADERSHIP STYLES

IMPACT EMPLOYEE MOTIVATION AND JOB
SATISFACTION
Index
Sr.no. Content Page no.
1 Introduction 01
2 Objectives/Purpose of the study 01-02
3 The concept of leadership 02-04
4 Theoretical Framework 04-05
5 Conceptual Framework 05-06
6 Limitations of the Study 06-07
7 Literature review 07-08
8 Research Methodology 08-09
9 Case Study 10
10 Statistical Tools and Technique 11
11 Learning Outcomes 11
12 Recommendations and Suggestions 12
13 Conclusion 13
14 References 14
 Introduction

Leadership and the different associated styles have an immense impact on how employees perform
and grow, to lead positive organisational outcomes. The purpose of this study would be to investigate
the impact of leadership styles on motivation and commitment, as a predictor of group or
organizational performance. For ages, Leadership has been a subject of much debate and deliberation
and how the different styles of leadership evoke different responses from followers. In corporate
context the dynamics of these two entities „the leader‟ and „the led‟ play a key role in shaping the
destiny of the organisation. The study followed the positivist paradigm, which provided an objective
reality against which claims were compared and truth was ascertained. In this descriptive study, the
goal has been to discover the pattern of cause and effect, which can predict phenomenon. As a part of
the descriptive research methodology, data collected has been subjected to the thinking process in
terms of ordered reasoning. A quantitative research approach has been used to analyse the
hypothesized relationships.

Objectives/Purpose of the study

1. To Investigate the Relationship Between Leadership Styles and Employee Motivation: This
objective aims to examine how various leadership styles, such as transformational, transactional,
democratic, autocratic, and laissez-faire, influence the level of motivation among employees. The
study may explore how specific leadership behaviours and approaches impact employees' intrinsic
motivation, engagement, and commitment to organizational goals.

2. To Explore the Impact of Leadership Styles on Job Satisfaction: This objective seeks to
understand how different leadership styles affect employees' overall satisfaction with their jobs and
work environment. It involves examining the extent to which leadership behaviours, communication
patterns, and decision-making processes contribute to employees' perceptions of job satisfaction,
fulfilment, and well-being.

3. To Identify Effective Leadership Practices for Enhancing Employee Motivation and Job
Satisfaction: This objective aims to identify leadership practices and strategies that are most
conducive to fostering high levels of employee motivation and job satisfaction. By analysing the
relationship between specific leadership behaviours and employee outcomes, the study can provide
insights into best practices for leaders seeking to optimize organizational performance and employee
well-being.
4. To Assess the Mediating Role of Organizational Factors: This objective involves investigating
the mediating role of organizational factors, such as organizational culture, communication channels,
and job design, in the relationship between leadership styles and employee motivation/job
satisfaction. By examining how these contextual variables interact with leadership behaviours, the
study can elucidate the underlying mechanisms through which leadership influences employee
outcomes.

5. To Provide Practical Recommendations for Leadership Development and Organizational

Improvement: This objective aims to translate research findings into actionable recommendations for
organizational leaders and managers. By identifying effective leadership practices and highlighting
areas for improvement, the study can help organizations enhance leadership effectiveness, employee
engagement, and overall organizational performance.

The concept of leadership

The global financial crisis has resulted in a wave of unprecedented challenges to the world’s
economic & political order. In a situation of turbulence, the one key factor that can make a difference,
through foresight and dexterity, is Leadership. However, as this study was initiated and probe started,
to gain xii conceptual clarity, the results are baffling. The search for the right definition has been age-
old. According to Bass and Avolio (1997), a single specific definition of leadership is a very complex
task as literature and studies on this topic are varied and there is no definition, which is widely and
universally accepted. Some definitions describe leadership as an act of influence, some as a process
and yet others have looked at a person’s trait qualities. Nel et al. (2004) define leadership as the
process whereby one individual influences others to willingly and enthusiastically direct their efforts
and abilities towards attaining defined group or organisational goals. Cole (2005) defines Leadership
as a dynamic process whereby one man influences other to contribute voluntarily to the realization
and attainment of the goals objectives; aspiration of values of the group that is representing the
essence of Leadership is to help a group or an Organisation to attain sustainable development and
growth.

There are various styles of leading, which are as follows:

Authoritarian Leadership Style

Authoritarian leaders are distant from their employees. This type of leadership is gained through
demands, punishments, regulations, rules and orders. The major functions of authoritarian leadership
style include assignment of tasks, unilateral decision-and rule making and problem solving. Followers
of authoritarian leaders must adhere to all the instructions without comment or question. Authoritarian
leaders make all the decisions themselves without involving employees or followers and impose these
decisions on them (Greenfield, 2007). In the long term, authoritarian leadership style can be
detrimental as it is dictatorial in nature. This leadership style undermines creativity and individuality
because these managers consider themselves right. However, the art of leadership is flexibility, i.e. to
adapt to dynamic situations. Yet this leadership style also has some advantages: if there is urgency
and a task is time critical, then one needs to have discipline and structure so that the job can be done
quickly. In a situational leadership style, authoritarian leadership is adopted in some circumstances
(Wiesenthal et al., 2015).

Democratic Leadership Style

This is also known as participative leadership style and reflects principles and processes such as self-
determination and equal participation. However, democratic leaders must not be compared with those
who hold elected positions. These leaders facilitate collective decision-making, involving their
followers or employees and offering them support and choices. Further, this leadership style, unlike
the authoritarian style, is characterized by cooperation, active participation, accountability and
delegation of responsibilities and tasks. A major function of democratic leadership is empowerment of
subordinates, distribution of responsibility and facilitation of group deliberations. Followers are held
accountable for their decisions, actions, and willingness to maintain the group’s freedom and
autonomy (Avolio et al., 2009). Although effective, democratic leadership style has certain
disadvantages. When roles are not clearly defined and time is limited, this leadership style can lead to
failures. Further, in some cases, members of the group might lack the expertise and knowledge to
contribute towards decision-making. Democratic leadership style is useful if members willingly share
their expertise and knowledge. In addition, decision making under the democratic leadership style
require a lot of time.

Laissez-Faire Leadership Style

In this leadership style, leaders are not involved with their subordinates or followers. This style is
characterized by the absence leadership style. Laissez-faire leaders do not make group-associated
decisions and policies. Subordinates or followers are responsible for making all the decisions and
solving problems. Laissez-faire leaders do not have authority or have little authority within their
organization. The major functions of this leadership style include trusting members to make
appropriate decisions and hiring the trained employees. The role of this leadership style includes
problem solving and self-monitoring along with producing quality products and services. Laissez-
faire leaders are highly successful and their followers are self-directed, as their leaders at every step
do not critically instruct them. This leadership style is suitable for organizations that have long-term
employees. It is, however, not suitable for environments that require direction, quick feedback and
praise (UhlBien & Marion, 2009). The disadvantages of this style include lack of awareness, as it
leads to poorly defined work roles. The leader provides minimal guidance, due to which group
members are often not sure of their job roles and responsibilities.

Dynamic Leadership Style

This is a dual-focused form of leadership style that is adaptive in nature. This leadership style changes
and reacts to different situations. The theory of dynamic leadership holds that a leader should use a
fluid style of leadership to adjust according to the team that is being led. Dynamic leadership helps
improve team motivation, as dynamic leaders are characterized by effective action, focused energy
and benevolent compassion. Further, dynamic leaders focus on engaging with employees in such a
way that success is not based on any one individual, but the entire team. This particularly helps to
motivate teams, as they experience a sense of recognition of their contribution to the overall success.
Dynamic leaders are adaptive leaders, who find opportunities in obstacles take effective action during
difficult times and take risks (Pershing Yoakley & Associates, 2014). Further, adaptive leadership
creates a sense of purpose that is shared among team members. Team members feel motivated
because adaptive leaders inspire and influence them rather than just demonstrating hierarchical
command and control. Dynamic leaders are appreciative of teams and the contribution of each
employee; they are supportive of employees in different situations, are caring, fair, humble and
inspiring. All these characteristics help a dynamic leader motivate teams rather than just individuals
(Mostovicz, 2009).

Theoretical Framework

1. Transformational Leadership Theory

- Transformational leaders inspire and motivate employees by articulating a compelling vision for
the future and providing intellectual stimulation.

- Through individualized consideration, transformational leaders cater to the needs and aspirations
of their followers, fostering a sense of trust and commitment.

- This theory suggests that transformational leadership enhances employee motivation by promoting
a shared sense of purpose and encouraging employees to transcend self-interest for the collective
good.
2. Social Exchange Theory

- Social exchange theory posits that interpersonal relationships, including those between leaders and
followers, are based on reciprocal exchanges of resources and benefits.

- Leaders who invest in positive social exchanges with their followers by providing support,
recognition, and opportunities for growth are likely to foster higher levels of motivation and job
satisfaction.

- Employees reciprocate these supportive behaviours by exerting greater effort and demonstrating
increased loyalty and commitment to the organization.

Conceptual Framework

1. Leadership Styles

- Different leadership styles, such as transformational, transactional, democratic, autocratic, and

laissez-faire, represent varying approaches to influencing and guiding employees.

- Each leadership style has unique characteristics and behaviours that can impact employee
motivation and job satisfaction differently.

2. Employee Motivation

- Employee motivation refers to the internal drive and energy that individuals channel towards
achieving organizational goals.

- Motivation can be influenced by factors such as recognition, rewards, opportunities for growth, job
design, and the quality of interpersonal relationships with leaders and coworkers.

3. Job Satisfaction

- Job satisfaction reflects the extent to which employees feel content and fulfilled with their work
and work environment.

- Factors contributing to job satisfaction include job autonomy, opportunities for skill development,
supportive leadership, fair compensation, and a positive organizational culture.
4. Mediating Variables

- Mediating variables represent mechanisms through which leadership styles exert their influence on
employee motivation and job satisfaction.

- These variables may include factors such as organizational culture, communication patterns, job
characteristics, and individual differences among employees.

Limitations of the Study

1) Contextual Factors:

- The impact of leadership styles can vary based on the specific context of the organization,
industry, and even team dynamics. What works well in one situation may not be as effective in
another.

2) Individual Differences:

- Employees have unique personalities, values, and preferences. A leadership style that motivates
one employee might not have the same effect on another. Individual differences can influence how
employees perceive and respond to leadership.

3) Role of Employee Expectations:

- Employee expectations and prior experiences also play a role. A leadership style that aligns with
employee expectations and values is more likely to lead to positive outcomes.

4) Cultural Considerations:

- Leadership styles can be influenced by cultural norms and expectations. What is considered
effective leadership in one culture may not be viewed the same way in another.

5) Ethical Considerations:

- Some leadership styles, such as autocratic or laissez-faire, may raise ethical concerns if they lead
to employee dissatisfaction, burnout, or unfair treatment.

6) External Factors:

- External factors such as economic conditions, market trends, or industry disruptions can also
impact employee motivation and job satisfaction, sometimes overshadowing the effects of leadership
style.
 Literature review

1. Effective leadership creates an atmosphere of trust and develops positive relationships in

which employees are celebrated and valued.
2. In many instances, ineffective leadership is a contributing factor to employees losing
motivation, which can lead to "quiet quitting," increased employee stress, and active and
passive job seeking.
3. Leadership affects various aspects of the workplace, including job performance,
recruitment and retention, work environment, organizational culture, job satisfaction, and
employee well-being.
4. Transformational leadership is the most commonly used approach in studies and has been
found to have a positive impact on firm performance.
5. Leadership styles are not fixed and can be adopted and adapted by leaders to increase
employee motivation.
6. The literature search for this review included databases such as Google Scholar and
Research Journals, focusing on peer-reviewed articles published in 2015 and earlier.
7. The study recommended that the style of leadership adopted in organizations should
enhance job satisfaction, loyalty to the organization, and performance in general.

Research Methodology

1. Literature review: The study involved a comprehensive review of existing literature on leadership
styles and their impact on employee motivation and job satisfaction.

2. Research design: The authors used a descriptive research design to investigate the relationship
between leadership styles and employee motivation and job satisfaction.

3. Data collection: The study collected data through a survey questionnaire, which was distributed to
employees in the construction industry to measure their job satisfaction and organizational
commitment.

4. Data analysis: The survey results were analysed using a Likert scale to identify the impact of
leadership styles on employee job satisfaction and organizational commitment.

5. Research gaps: The study identified gaps in the existing literature on the topic, including the need
for more research on the relationship between leadership styles and employee motivation and job
satisfaction.
6. Concept of leadership and leadership styles: The authors defined and discussed various
leadership styles, such as autocratic, laissez-faire, charismatic, transactional, and transformational
leadership.

7. Recommendations: The study provided recommendations for managers and leaders to improve
employee motivation and job satisfaction through effective leadership styles.

Impact of Leadership Styles on Job Satisfaction: Case Study

Abstract:

This study aimed to investigate and compare the impact of transformational leadership and the impact
of transactional leadership, on job satisfaction among workers in at Istiklal Private Hospital in
Amman-Jordan. To fulfil this objective, the researcher developed two hypotheses to be tested using
multiple regression analysis as a tool for data analysis. Data for this research was collected using a
questionnaire developed for this purpose and distributed to the sample and a response rate of around
80.6% was realized. The data was entered and analysed using the SPSS version 25 statistical program.
Findings indicated that the transformational and transactional leadership styles both have significant
impact on the employees' job satisfaction. However, the effect of transactional style was more
significant than transformational style. The descriptive statistics results showed that the level of job
satisfaction has high mean value, which means that most of employees in the private hospital in
Amman-Jordan were satisfied with their job. The current study gives some direction to carry out
future research for studying different leadership styles, in different context and culture. The results
indicated that the leadership style does not alone affect employee satisfaction, and the researcher
would like to recommend a further research studies on other factors such as wages, training, job
growth, the environment, and others to understand the extent of the impact of these factors on
employee satisfaction.

Introduction:

Human resources are a critical element in the delivery of health services. Health sectors cannot
function effectively without a sufficient number of skilled and motivated workers. The situation has
become serious when those experiences and highly skilled staff leave the organization. There are
many factors that result in a high turnover of employees; one of the reasons is job satisfaction. This
could be more critical in some segments like nursing and other medical specialists. The job
satisfaction of health service workers is very important because it determines the employee's
performance and leads to a higher level of patient satisfaction (Ahmad et al., 2013). Employee
satisfaction is not only important for achieving goals of organization, but it is also important to reduce
the cost that may arise directly or indirectly from losing employees and recruiting new employees. For
the best performance, the workforce needs to be continually motivated through either financial or
nonfinancial incentives to get satisfied with their work. Organization and the employees usually
affected seriously with inefficient management and injurious leadership behaviour, which usually
called destructive or autocratic leadership. The degree of job satisfaction is affected by Leadership
style, which is an external motivation factor (Geleto et al., 2015).

Study Objectives:

The following are the specific objectives for this study:

• To study the impact of transformational leadership style on the level of job satisfaction among health
employees in different departments at Istiklal Private Hospital.

• To study the impact of transactional leadership styles on the level of job satisfaction among health
employees in different departments at Istiklal Private Hospital.

Conclusions:

The findings showed that the Transactional leadership style, best encourages employee job
satisfaction among private hospital employees and in Amman-Jordan. This means that the exchange
process between managers and employees influences more on their satisfaction. In Jordanian culture
where seriousness and accuracy, conducting transactions is more appropriate to achieve goals.
According to Memon (2014), most private organizations prefer motivating their employees using
transactional style through promotion, rewards, penalties, etc. Transactional leadership still wished up
to current time, especially in light of the financial and other different crises that ravage the Middle
East. Since cash and rewards are commonly powerful motivators, many people need a job to pay their
bills, payments, and obligations, in particular in poor developing nations like Jordan. This pushes
them to fully realize what is wanted and vital and the manner to do their activity in order to maintain
it and thus gain rewards.

Statistical Tools and Technique

Statistical tools and techniques play a crucial role in various fields, including research, business,
healthcare, and more. Here are some common statistical tools and techniques along with their
applications:
1. Descriptive Statistics: Descriptive statistics, such as measures of central tendency (mean, median,
mode) and measures of variability (standard deviation, range), are used to summarize and describe the
characteristics of variables related to leadership styles, employee motivation, and job satisfaction.

2. Correlation Analysis: Correlation analysis examines the strength and direction of the relationship
between two or more variables, such as different leadership styles and employee motivation/job
satisfaction. Pearson correlation coefficient or Spearman rank correlation coefficient may be used
depending on the nature of the data.

3. Regression Analysis: Regression analysis allows researchers to explore the predictive relationship
between one or more independent variables (e.g., leadership styles) and a dependent variable (e.g.,
employee motivation or job satisfaction). Multiple regression analysis may be used to control for
potential confounding variables and assess the unique contribution of each predictor variable.

4. ANOVA (Analysis of Variance): ANOVA is used to compare means across multiple groups (e.g.,
different leadership styles) to determine whether there are statistically significant differences in
employee motivation or job satisfaction. Post-hoc tests, such as Tukey's HSD or Bonferroni
correction, may be conducted to identify specific group differences if the overall ANOVA test is
significant.

5. Factor Analysis: Factor analysis is used to identify underlying dimensions or factors that explain
the variation in a set of observed variables (e.g., different aspects of leadership styles or job
satisfaction). It helps researchers to reduce the complexity of data and identify common patterns or
structures.

Learning Outcomes:

1. Understand the concept of employee motivation and its relationship with leadership styles.
2. Identify and analyse the most common leadership styles in the workplace, including
authoritative, participative, and delegative styles.
3. Evaluate the impact of different leadership styles on employee motivation and job
satisfaction.
4. Analyse the role of trust and psychological safety in leadership styles and their impact on
employee motivation and job satisfaction.
5. Evaluate the relationship between leadership styles and employee engagement, performance,
and productivity.
6. Evaluate the effectiveness of different leadership styles in promoting a positive work
environment and reducing employee turnover.
7. Critically analyse the literature on the relationship between leadership styles and employee
motivation and job satisfaction, and identify gaps that could be addressed through further
research.

Recommendations and Suggestions

1) Adopt a transformational leadership style: Transformational leaders inspire and motivate

employees by setting a compelling vision, fostering personal growth, and empowering
employees to achieve their full potential. This style is associated with higher levels of
employee engagement and job satisfaction
2) Involve employees in decision-making processes: Democratic leaders involve employees in
decision-making processes, which can enhance engagement and productivity by giving
employees a sense of ownership and fostering open communication
3) Provide opportunities for growth and development: Coaching leaders focus on the
development and growth of their employees, creating a learning culture within the
organization. When employees see their leaders investing in their growth, they become more
engaged and motivated to excel
4) Prioritize trust and psychological safety: Transformational and servant leaders build trust
by demonstrating empathy, authenticity, and transparency. This creates a positive work
environment where employees feel comfortable expressing their opinions and ideas
5) Encourage open communication and feedback: Managers should foster open
communication and provide continuous feedback to help employees improve their skills and
reach their potential. This can lead to higher levels of job satisfaction and engagement

Conclusion
In conclusion, the research on leadership styles and their impact on employee motivation and job
satisfaction reveals that different styles have varying effects on these aspects. Transformational
leadership, which focuses on inspiring employees through a shared vision, intellectual stimulation,
and individual consideration, has been found to positively influence employee motivation and job
satisfaction.

On the other hand, autocratic leadership, which relies on extrinsic motivation, can have a positive
impact in situations requiring swift and decisive action but may lead to lower job satisfaction when
overused. Democratic and servant leadership styles, which involve employees in decision-making
processes and prioritize trust and psychological safety, have been associated with higher job
satisfaction levels.

Moreover, leadership styles can affect employee engagement, performance, and productivity.
Engaged employees perform better, and leadership styles like and servant leadership are known to
promote engagement.

To create a more positive and productive work environment, organizations should consider adopting a
transformational leadership style, involving employees in decision-making processes, providing
opportunities for growth and development, prioritizing trust and psychological safety, and
encouraging open communication and feedback.

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