Examining the impact of managerial leadership style on
employee job satisfaction at Mount Spring Water (Pvt)
Ltd of DSI Samson Group Sri Lanka
1
Table of Contents
CHAPTER ONE ............................................................................................................................. 9
1.1
BACKGROUND OF THE RESEARCH...................................................................................... 9
1.2
STATEMENT OF THE PROBLEM .......................................................................................... 12
1.3
RESEARCH AIM ....................................................................................................................... 14
1.4
RESEARCH SCOPE .................................................................................................................. 14
1.5
RESEARCH SIGNIFICANCE ................................................................................................... 14
1.6
RESEARCH OBJECTIVES ....................................................................................................... 15
1.7
LIMITATIONS OF THE RESEARCH ...................................................................................... 16
CHAPTER TWO .......................................................................................................................... 17
2.1
ENVIRONMENTAL ANALYSIS OF MOUNT SPRING WATER LTD ................................ 17
2.2
BACKGROUND AND PERFORMANCE ANALYSIS OF MOUNT SPRING WATER (PVT)
LTD. MANAGED AND OPERATED BY DSI SAMSON GROUP......................................... 18
2.2.1 Historical Financial Performance Analysis of Mount Spring Water (Pvt) Ltd. ......................... 18
2.2.2 Mount Spring Water (Pvt) Ltd. Historical Key Performance Indicators (KPI) Performance
Analysis....................................................................................................................................... 19
2.2.3 Leadership style analysis of the management staff of Mount Spring Water (Pvt) Ltd. .............. 26
2.3
LEADERSHIP ............................................................................................................................ 28
2.3.1 Great Man Theory ....................................................................................................................... 28
2.3.2 Trait Theory ................................................................................................................................ 28
2.3.3 Contingency Theories ................................................................................................................. 29
2.3.4 Situational Theory ....................................................................................................................... 29
2.3.5 Behavioural Theory .................................................................................................................... 29
2.3.6 Participative Theory .................................................................................................................... 29
2.3.7 Transformational Theory ............................................................................................................ 29
2.3.8 Transactional Theory .................................................................................................................. 30
2.4
JOB SATISFACTION ................................................................................................................ 30
2
2.5
IMPACT OF LEADERHSIP ON JOB SATISFACTION.......................................................... 31
2.5.1 The impact of Transformational Leadership on Job Satisfaction ............................................... 31
2.5.2 The Impact of Transactional Leadership Style on Job Satisfaction ............................................ 31
2.5.3 The Impact of Laissez Faire Leadership Style on Job Satisfaction ............................................ 32
2.6
CONCEPTUAL FRAMEWORK AND HYPOTHESES ........................................................... 32
2.7
Chapter Summary ....................................................................................................................... 33
CHAPTER THREE ..................................................................................................................... 34
3.1.1 Research Approach ..................................................................................................................... 34
3.1.2 Research Strategy........................................................................................................................ 34
3.1.3 Time Horizon and measuring instrument ................................................................................... 34
3.1.4 Sampling Plan ............................................................................................................................. 35
3.1.5 Method of Collecting Data.......................................................................................................... 35
3.1.6 Validity and Reliability ............................................................................................................... 36
3.1.7 Pilot Testing ................................................................................................................................ 36
3.1.2 Analysis of Data .......................................................................................................................... 36
3.1.3 Ethical Issues .............................................................................................................................. 36
3.2
Chapter Summary ....................................................................................................................... 37
CHAPTER FOUR ........................................................................................................................ 38
4.1 DATA ANALYSIS AND FINDINGS .......................................................................................... 38
4.1.1 Demographic Analysis of the respondents of Mount Spring Water (Pvt) Ltd. ............................ 38
4.1.1.1 Gender of Respondents ............................................................................................................ 38
4.1.1.2 Age of Respondents ................................................................................................................. 39
4.1.2 Transformational Leadership Frequency tables .......................................................................... 40
4.1.2.1 Data related to Idealised influence ........................................................................................... 40
4.1.2.2 Data related to Inspirational motivation .................................................................................. 41
4.1.2.3 Data related to Intellectual stimulation .................................................................................... 42
3
4.1.2.4 Data related to Individualised consideration............................................................................ 43
4.1.3 Transactional Leadership Frequency tables ................................................................................ 44
4.1.3.1 Data related to Contingent rewards .......................................................................................... 44
4.1.3.2 Data related to Management by exception............................................................................... 45
4.1.4 Laissez Faire Leadership Frequency tables ................................................................................ 46
4.2 Data related to Hypotheses ............................................................................................................ 47
4.2.1 Hypothesis One There is a positive relationship between transformational leadership and
employee job satisfaction at Mount Spring Water (Pvt) Ltd. ..................................................... 47
4.2.2 Hypothesis Two There is a positive relationship between transactional leadership and employee
job satisfaction at Mount Spring Water (Pvt) Ltd. ...................................................................... 48
4.2.3 Hypothesis Three There is a negative relationship between Laissez faire leadership and
employee job satisfaction at Mount Spring Water (Pvt) Ltd. ..................................................... 49
4.3 Summary of hypotheses results ..................................................................................................... 50
CHAPTER FIVE .......................................................................................................................... 51
5.1 CONCLUSION .............................................................................................................................. 51
5.2 RECOMMENDATION ................................................................................................................. 51
5.3 PROPOSED TIMELINE FOR LEADERSHIP DEVELOPMENT PLAN PROGRAMME
IMPLEMENTATION ................................................................................................................. 53
REFERENCE & BIBLIOGRAPHY .................................................................................................... 54
4
List of Figures
Figure One: Job Satisfaction Levels of DSI Samson Group Employees
Figure Two: Productivity levels of the employees of DSI Samson Group
Figure Three: Satisfaction levels of consumers using the DSI Samson Group Services
Figure Four: Employee Turnover at DSI Samson Group
Figure Five: Share of economic sectors in Sri Lanka – the GDP from 2016 to 2020
Figure Six: Performance analysis of Mount Spring Water (Pvt) Ltd. from 2016 to 2020
Figure Seven: Customers waiting time for the receipt of product during the years 2016 to 2020
Figure Eight: Productivity levels of employees during the years 2016 to 2020
Figure Nine: Employee Absenteeism Rate from 2016 – 2020 at Mount Spring Water (Pvt) Ltd.
Figure Ten: Customer Satisfaction level from 2016 – 2020 at Mount Spring Water (Pvt) Ltd.
Figure Eleven: Employee Job Satisfaction Rate from 2016 – 2020 at Mount Spring Water (Pvt) Ltd.
Figure Twelve: Employee Turnover Rate from 2016 to 2020 at Mount Spring Water (Pvt) Ltd.
Figure Thirteen: Faulty Products from 2016 to 2020 at Mount Spring Water (Pvt) Ltd.
Figure Fourteen: Conceptual Framework
Figure Fifteen: Gender of Respondents
Figure Sixteen: Age of the respondents
List of Tables
Table One: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2016
Table Two: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2017
Table Three: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2018
Table Four: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2019
Table Five: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2020
Table Six: Senior and junior management staff - Perceived Leadership Styles
Table Seven: Sampling Plan of Mount Spring Water (Pvt) Ltd
Table Eight: Gender of Respondents
Table Nine: Age of the respondents
Table Ten: Idealised Influence Frequency Tables
5
Table Eleven: Inspirational motivation Frequency Tables
Table Twelve: Intellectual stimulation Frequency Tables
Table Thirteen: Individualised consideration Frequency Tables
Table Fourteen: Contingent rewards Frequency Tables
Table Fifteen: Management by exception Frequency Tables
Table Sixteen: Laissez Faire Frequency Tables
Table Seventeen: Relationship between Transformational leadership and employee job satisfaction
Table Eighteen: Regression analysis of Transformational leadership
Table Nineteen: Relationship between Transactional leadership and employee job satisfaction
Table Twenty: Regression analysis of Transactional leadership
Table Twenty One: Relationship between Laissez Faire leadership and employee job satisfaction
Table Twenty Two: Regression analysis of Laissez Faire leadership
Table Twenty Three: Summary of hypotheses results
Table Twenty Four: Leadership Development Programme Implementation Plan
Table Twenty Five: Timeline for the proposed Transformational Leadership development programme
plan
6
ACKNOWLEDGEMENT
During my study, I received a lot of advice and support from a lot of people, which helped me compile
this report.
I want to express my gratitude to my research supervisor, Dr. Ellis Osabutey for his assistance and
advice.
The end result of his clarifications and corrections was the completion of this project.
I would also want to thank the management and employees of Mount Spring Water (Pvt.) Ltd. for their
nice demeanor and patience in supporting me with my studies.
Last but not least, I would like to take this opportunity to thank my family and the London Graduate
School community for their assistance in completing this research endeavor.
Thank you.
Isuru Shammika Bandara
7
ABSTRACT
The purpose of this study was to assess the impact of management leadership style on employee job
satisfaction at Mount Spring Water (Pvt) Ltd, a subsidiary of DSI Samson Group Sri Lanka.Despite the
parent company DSI Samson Group being a conglomerate with 22 subsidiaries and being the market leader
for market leader for footwear and bicycle tyres, the organisation witnessed a high level of absenteeism
and employee turnover in Mount Spring Water (Pvt) Ltd, hence this study aims at examining the best suited
leadership style in order to enhance job satisfaction within the organisation.
Two questionnaires were utilised in order to gather primary data related to the study. The leadership
questionnaire had 21 closed-ended questions, while the job satisfaction questionnaire contained 36 closedended questions. Financial information, staff turnover and absenteeism records, consumer complaints
records, and data acquired through records, including exit interviews, were among the secondary data
sources gathered.
The collected data was loaded into SPSS, and a correlational research and regression analysis were
performed to analyse the impact. According to the findings of this study, although transformational
leadership has a high positive link with employee work satisfaction, there is no relationship between
transactional leadership and job satisfaction and no relationship between laissez faire leadership and job
happiness.
Keywords: Employee Job Satisfaction, Transformational Leadership, Transactional Leadership, Laissez
Faire Leadership
8
CHAPTER ONE
1.1 BACKGROUND OF THE RESEARCH
Established over half a century ago along the Southern belt of Sri Lanka the DSI Samson Group is a
conglomerate which has diversified into 22 sectors including footwear, retail and trading, tyres and
tubes, apparel, brushes, engineering, food, beverages, agriculture and hydro power with a workforce
of over 8,500 employees island wide (DSI Samson Group, 2021).
Despite the giant success of the DSI Samson Group, over the years the company has witnessed a steady
decline in employee satisfaction amongst the subsidiaries (DSI Samson Group, 2021).
Job Satisfaction Levels of DSI Samson Group
Employees
7000
6000
5000
4000
3000
2000
1000
0
2016
Extremely Satisfied
2017
Satisfied
2018
Neither
2019
Dissatisfied
2020
Extremely Dissatisfied
Figure One: Job Satisfaction Levels of DSI Samson Group Employees
Figure 1 displays the satisfaction levels of the employees of DSI Samson Group employees during the
5 year period from 2016 to 2020. The number of very satisfied and satisfied employees during the year
2016 was 7891 which amounts to 92% employees being extremely satisfied and satisfied whereas
during the same year there were no extremely dissatisfied employees and the dissatisfied employees
amounted to a mere 2.28%. However the DSI Samson Group witnessed a significant decline in the
satisfaction levels during the year 2020 where a mere 78.34% of employees were extremely satisfied
and satisfied whereby the dissatisfied and extremely dissatisfied employees amounted to 8.22%% thus
displaying that there has been an increase of extremely dissatisfied and dissatisfied employees by
5.94%%.
9
Productivity levels of DSI Samson Group
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2016
2017
Satisfactory
2018
Neutral
2019
2020
Not Satisfactory
Figure Two: Productivity levels of the employees of DSI Samson Group
Figure two displays the manner in which the productivity levels of the employees of DSI
Samson Group is perceived by the respective management during the years from 2016 to 2020.
During the year 2016 the management has suggested that they were satisfied with the
productivity levels of 7815 employees which amounts to 91.94% whereas by the year 2020 the
management was satisfied with the performance of a mere 6498 employees which amount to
76.44% which depicts a decline of 15.5% in satisfied productivity whereas whilst the not
satisfied productivity level during the year 2016 was 31 employees which amounted to 0.36%
this has significantly increased to 215 employees in 2020 there by indicating that during the
year 2020 the management was not satisfied with the productivity levels of 2.52% of the
employees. The decline in the satisfactory performance and the increase of not satisfactory
performance can be attributed to the levels of satisfaction during the same years.
10
Satisfaction level of customers
100
80
60
40
20
0
2016
2017
Satisfied
2018
Neither
2019
2020
Not Satisfied
Figure Three: Satisfaction levels of consumers using the DSI Samson Group Services
Figure three reflects the overall customer satisfaction percentages of the customers who were
provided services by the employees of DSI Samson Group between the years 2016 to 2020.
The organisation witnessed a customer satisfaction of 98.9% in 2016 and witnessed a decline
of 6.3% whereby the not satisfied customer satisfaction has risen from 0.25 in 2016 to 1.9% in
2020 thereby indicating an increased customer satisfaction percentage of 1.7%
Employee turnover at DSI Samson Group
800
700
600
500
400
300
200
100
0
2016
2017
2018
2019
2020
Employee Turnover
Figure Four: Employee Turnover at DSI Samson Group
Figure Four depicts the employee turnover at DSI Samson Group during the years 2016 to
11
2020. The organisation witnessed a turnover of 346 employees during the year 2016 amounting
to 4.07% which has steadily risen to an increase of employee turnover during the year 2020
amounting to 752 employees which amounts to 8.85% thereby depicted a rise in employee
turnover by 4.78%
1.2 STATEMENT OF THE PROBLEM
Since the 1900s, various studies have been conducted on job satisfaction have and there has
been a paradigm shift in individual perception of individuals with human needs (Stamps &
Piedmonte 1986). Hoppock (1935) described job satisfaction as a mix of psychological,
physiological, and environmental conditions that lead a person to affirm truly that he or she is
content with one's employment inside an organization. Organ and Near (1985) described job
satisfaction as a form of affection or investigated in reference to cognition thereby stating that
the cognitive viewpoint, job satisfaction is viewed as a comprehension of a psychological
process of recognition, which includes consciousness, perception, reasoning, judgment, and
other characteristics. Moorman (1993) described job satisfaction as a logical and reasonable
evaluation of working circumstances from a cognitive viewpoint and job satisfaction cognitive
perception is an assessment of working circumstances, opportunity and output.
The necessity to undertake studies to determine how employees level of dissatisfaction and
absenteeism, complaints, low morale, and high turnover justifies the need to examine job
satisfaction. Furthermore, research has shown that disgruntled employees are more inclined to
leave the company (Padilla-Vellez, 1993; Gangadhraiah et al., 1990; Martin, 1990).
In a research undertaken by Heskett et al., (1994), it was discovered how service sectors have
moved from a profit-oriented to a people-oriented strategy. Baum (2015) shows how employee
job satisfaction has a substantial impact on an employee's commitment to the organization and
how this commitment affects the individual's quality of service and productivity. Furthermore;
Sledge et al., (2008); Thomas & Au, (2002) discusses how many researchers have conducted
research and identified that job satisfaction is correlated with high levels of performance and
positive employee outcomes.
12
Share of economic sectors in Sri Lanka - the
GDP from 2016 to 2020
100
90
80
70
60
50
40
30
20
10
0
2016
2017
Agriculture %
2018
Industry %
2019
2020
Services
Figure Five: Share of economic sectors in Sri Lanka – the GDP from 2016 to 2020
The service industry is the biggest sector in the Sri Lankan economy and employs
approximately 45% of the workforce and accounting for approximately 60% of GDP; in the
third quarter of 2021, whereby; the GDP from services in Sri Lanka amounted to LKR 1457016
Million (Trading Economics, 2022). This is further reflected in figure five where the share in
GDP is reflected during the years 2016 to 2020 (Statista, 2021).
Yousef (2000); Ashton (2018) discuss how sound leadership is a factor that determines
employee job satisfaction within a role. Hofstede (1984) described leadership as being
complementary to subordinateship. Chang and Lee (2007) suggest job satisfaction of
employees ensures that the employees work towards the vision of the organisation. Spector
(1997) states that an employee’s job satisfaction can be enhanced through the salary, benefits,
promotion, work environment, supervision and colleagues, this is further reiterated by Okpara
(2004) who identified five dimensions of job satisfaction and these dimensions include pay,
promotion, supervision, the work assigned and co workers. Holland (1989) describes job
satisfaction is as a result of addressing multiple motivational demands of an individual.
Furthermore according to Hom and Kinicki (2001) employee dissatisfaction can lead to
increased employee turnover.
Many researchers have undertaken studies throughout the years in attempt to determine the link
between leadership and work happiness, according to research. Derzsy, 2003; Chen, 2005;
Rothfelder et al., 2005 (2013). According to Laohavichien et al., (2009), transformational or
transactional leadership leads to organizational effectiveness. Based on the leadership style,
both transformational and transactional leadership may be utilized to predict employee job
satisfaction. Bennett's (2009).
13
Despite numerous studies being conducted in the past in order to identify and examine the
relationship between job satisfaction and leadership, it is evident to the researcher that there is
a gap in research in relation to conglomerates of the capacity of DSI within the Asian area,
notably in Sri Lanka, leaving a research vacuum. As a result, the purpose of this research is to
fill the void in research related to the same and to contribute substance by addressing problems
that have developed at Mount Spring Water (Pvt) Ltd.
1.3 RESEARCH AIM
As Sri Lanka's leading corporate group and market leader in footwear and bicycle tyres. Since
1962, the DSI Samson Group has successfully served local and worldwide markets with 22
businesses encompassing apparel, engineering, brushes, food, beverage, agriculture, and
hydropower. The DSI Samson Group has been bestowed many awards and accolades over the
years including the Sri Lankan entrepreneur awards, Presidential export awards National
Business Excellence Awards to name a few. Despite this giant success as a leading
conglomerate, upon conducting a pilot study amongst the sectors within which DSI Samson
Group operates, it has been identified that Mount Spring Water (Pvt) Ltd has the lowest level
of employee job satisfaction amongst the employees. Based on the above the researcher aims
to investigate the impact of transformational leadership, transactional leadership, and laissez
faire leadership has on employee job satisfaction, thereby utilising the findings of this study in
order to determine the best suited form of leadership for Mount Spring Water (Pvt) Ltd.
management to deploy.
1.4 RESEARCH SCOPE
With over 8500 employees currently being employed within the DSI Samson Group
Conglomerate, this organisation has diversified into 22 sectors ranging from rubber products
to food, beverages and agriculture. Amongst these sectors the lowest level of employee
satisfaction has been witnessed in the food, beverage and agriculture sector and particularly
within Mount Spring Water (Pvt) Ltd. At the time of conducting this research the organisation
comprised of 160 employees including 20 Managerial staff and 140 operational and executive
staff. In order to conduct this study employees who have been with the organisation for over a
period of one year were considered and this amounted to 17 Managerial staff and 92 operational
and executive staff.
1.5 RESEARCH SIGNIFICANCE
Mitchell, (1979); DeMeuse (1986); discuss how leadership has been researched as part of
empirical research over many years and how each organisational behaviour textbook discusses
leadership McFillen (1984). Chang and Lee (2007); Dlamini et al., (2017) suggest that
transformational leadership aids in improving overall employee job satisfaction levels.
Recent studies have revealed that many scholars are conducting research on transformational
14
and transactional leadership and the manner in which each of these leadership styles contribute
towards the success of (Laohavichien et al., 2009). Bennett (2009) suggests how both these
forms of leadership could be utilised to predict the levels of employees’ job satisfaction as a
result of their leaders. Research conducted further revealed that whilst in some instances
transformational leadership resulted in higher employee satisfaction, research has also been
conducted where transactional leadership generated higher levels of employee job satisfaction
(Wu, 2009; Epitropaki and Martin, 2005). Berson and Avolio, (2004); (Boerner et al., 2007)
identified that transformational leaders that have good communication skills and can direct
employees towards the organisational goals better in comparison to transactional leader.
Despite the numerous studies conducted within the service industry in on the impact of
leadership on job satisfaction, there is very limited research conducted within the food and
beverage industry within the Asian continent and in particular in Sri Lanka, thereby this study
is carried out with the aim of addressing this gap in research and as a method of identifying the
best leadership style to be adopted within an organisation of the similar industry. Furthermore;
this study will enhance the job satisfaction of the employees of Mount Spring Water (Pvt) Ltd.
Which will ultimately benefit the organisation as a whole.
1.6 RESEARCH OBJECTIVES
The main research objective in conducting this study is with the intention of analysing the
influence of management leadership styles has on employee job satisfaction amongst the
employees at Mount Spring Water (Pvt) Ltd., the study will also look into the following subobjectives:
RO1: To investigate the impact of perceived management transformational leadership style on
employee job satisfaction at Mount Spring Water (Pvt) Ltd.
RO2: To investigate the impact of perceived management transactional leadership style on
employee job satisfaction at Mount Spring Water (Pvt) Ltd.
RO3: To assess the impact of perceived management laissez faire leadership style on employee
job satisfaction at Mount Spring Water (Pvt) Ltd.
RO4: To advise Mount Spring Water (Pvt) Ltd on effective leadership practices best utilised
by the management in order to promote employee job satisfaction.
15
1.7 LIMITATIONS OF THE RESEARCH
Throughout the study, the researcher encounters a number of limitations. Amongst the
limitations faced it should be noted that within a conglomerate with over 8500 employees only
the Mount Spring Water Ltd. Staff were requested to participate in the study. Due to the
pandemic and the limited number of employees working within organisations, the research
faced many delays in gathering data. The research had no quantitative data to support the
research and had limited access to financial information. Furthermore, due to the researcher's
time restrictions, the survey was done among workers who had been with the organization for
more than a year, and it was a cross-sectional study.
16
CHAPTER TWO
2.1 ENVIRONMENTAL ANALYSIS OF MOUNT SPRING WATER LTD
A SWOT analysis was performed to analyse Mount Spring Water Ltd. environmental
effect in order to determine its strengths, weaknesses, opportunities, and threats.
Strengths:
 Part of the leading DSI Samson Group Conglomerate
 Obtained several quality standards and certifications including ISO 220002005 Certification, HACCP System Certification and SLS certification
 Many awards and accolades including the UKAS award
 Has the most Modern and Hygienic bottling plant
 Suppliers to many organisations including banks and hotels
Weaknesses:
 Conglomerate is associated with rubber and bicycle tyres
 Dependent of the brand name of the conglomerate
 Has one bottling plant
 High employee turnover resulting in less trained staff
Opportunities:
 Low inflation rates
 Less competitors
Threats:
 Pandemic situation resulting in transportation restrictions
 High taxation
 Inability to import products required for bottling (plastics, caps)
With an enriched history of over fifty years and being diversified into 22 sectors
including footwear, retail and trading, tyres and tubes, apparel, brushes, engineering,
food, beverages, agriculture and hydro power Mount Spring Water (Pvt) Ltd. Is
associated to a very strong conglomerate, however as the SWOT analysis suggests, the
conglomerate is associated with rubber and bicycle tyres and is less associated as a
bottled water manufacturer. With many awards and accolades bestowed upon the
conglomerate and has the capability to expand the bottling plants should the necessity
arise.
With less competition within the industry Mount Spring Water (Pvt) Ltd. Has
enormous scope to expand and distribute water throughout the country, however as the
organisation has only one bottling plant the organisation will face high operational
17
costs.
2.2 BACKGROUND AND PERFORMANCE ANALYSIS OF MOUNT
SPRING WATER (PVT) LTD. MANAGED AND OPERATED BY DSI
SAMSON GROUP
Despite an enriched history of the DSI Samson group expanding over 5 decades,
Mount Spring Water (Pvt) Ltd. was established in 2003 and to date has been bestowed
many awards and accolades and has Sri Lanka’s most modern and hygienic water
bottling plant which is fully automated bottling, capping, shrinking, and packaging. At
present the organisation has a workforce of 160 employees and intends on expanding
further whereby opening up a new bottling plant in the central province of Sri Lanka.
2.2.1 Historical Financial Performance Analysis of Mount Spring Water (Pvt) Ltd.
The table and figure below reflects the financial performance of Mount Spring Water
(Pvt) Ltd during the years from 2016 to 2020 and is based upon the secondary data
analysis gathered from the organisation.
Financial performance of Mount Spring
Water Pvt. Ltd.
2 500 000 000
2 000 000 000
1 500 000 000
1 000 000 000
500 000 000
0
Revenue (LKR)
Profit/ (Loss) LKR
2016
2017
2018
2019
2020
1 019 078 400
1 195 872 650
1 386 854 880
1 643 856 750
1 954 567 280
529 983 523
562 754 965
595 634 756
682 843 919
725 862 984
Revenue (LKR)
Profit/ (Loss) LKR
Figure Six: Performance analysis of Mount Spring Water (Pvt) Ltd. from 2016 to 2020
Figure Seven above displays the financial performance of Mount Spring Water (Pvt)
18
Ltd. between the years from 2016 to 2020. During the year 2016 the organisation
witnessed a revenue of 1,019,078,400; whereas by the year 2020 the organisation
witnessed a revenue of 1,954,567,280 which is as increase revenue of 935,488,880.
The profit during the year 2016 was 529,983,523 which had increased to 725,862,984
which was an increase of only 195,879,461. Despite the steady increase in revenue over
the 5 years assessed, the profit of the organisation does not suggest the same. This
reduction in profit margins are a result of high employee absenteeism and turnover
rates, low productivity of employees, reduction in staff retention resulting in increased
training costs and dissatisfied customers.
2.2.2 Mount Spring Water (Pvt) Ltd. Historical Key Performance Indicators (KPI)
Performance Analysis
Secondary data was gathered from Mount Spring Water (Pvt) Ltd. and the KPIs for
the 5 years from 2016 to 2020 has been presented in the table below. The KPIs
displayed below are the KPIs applicable for this study and is not a representation of all
the KPIs applicable to the staff. Furthermore; a graphical format has been displayed in
order to display the change in trends over the 5 year period.
KEY PERFORMANCE INDICATOR (KPI)
Customers waiting time for the receipt of
EXPECTED
ACHIEVED
TARGET
TARGET
5 days
5 days
Productivity
97%
96.3%
Employee Absenteeism
3%
4.2%
Customer Satisfaction
98%
97.4%
Employee Job Satisfaction
95%
86.2%
Employee Turnover
3%
4.3%
Faulty Products
0.5%
1%
product
Table One: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2016
19
KEY PERFORMANCE INDICATOR (KPI)
Customers waiting time for the receipt of
EXPECTED
ACHIEVED
TARGET
TARGET
5 days
5 days
Productivity
97%
95.6%
Employee Absenteeism
3%
5.8%
Customer Satisfaction
98%
95.1%
Employee Job Satisfaction
95%
80.3%
Employee Turnover
3%
5.8%
Faulty Products
0.5%
1.2%
product
Table Two: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2017
KEY PERFORMANCE INDICATOR (KPI)
Customers waiting time for the receipt of
EXPECTED
ACHIEVED
TARGET
TARGET
5 days
6 days
Productivity
97%
93.9%
Employee Absenteeism
3%
6.7%
Customer Satisfaction
98%
94.7%
Employee Job Satisfaction
95%
75.8%
Employee Turnover
3%
7.2%
Faulty Products
0.5%
1.6%
product
Table Three: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2018
20
KEY PERFORMANCE INDICATOR (KPI)
Customers waiting time for the receipt of
EXPECTED
ACHIEVED
TARGET
TARGET
5 days
7 days
Productivity
97%
90.6%
Employee Absenteeism
3%
8.2%
Customer Satisfaction
98%
90.4%
Employee Job Satisfaction
95%
65.6%
Employee Turnover
3%
9.1%
Faulty Products
0.5%
1.9%
product
Table Four: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2019
KEY PERFORMANCE INDICATOR (KPI)
Customers waiting time for the receipt of
EXPECTED
ACHIEVED
TARGET
TARGET
5 days
7 days
Productivity
97%
88.9%
Employee Absenteeism
3%
10.83%
Customer Satisfaction
98%
87.2%
Employee Job Satisfaction
95%
59.8%
Employee Turnover
3%
10.8%
Faulty Products
0.5%
2.1%
product
Table Five: Performance analysis of Mount Spring Water (Pvt) Ltd. for the year 2020
21
Customers waiting time for the receipt of
product
8
7
6
5
4
3
2
1
0
2016
2017
2018
Expected
2019
2020
Actual
Figure Seven: Customers waiting time during the years 2016 to 2020
Figure seven represents the duration the customers of Mount Spring Water (Pvt) Ltd. is
expected to wait in order to receive the product. Whilst the KPI for the receipt of the product
is 5 days which has been achieved during the years 2016 and 2017 by the year 2020 the waiting
period for a product was 7 days thus displaying that the waiting time has increased by 40%.
Productivity levels of Employees
98%
96%
94%
92%
90%
88%
86%
84%
2016
2017
2018
Expected
2019
2020
Actual
Figure Eight: Productivity levels of employees during the years 2016 to 2020
Figure eight represents the data gathered in relation to the productivity levels of the employees
of Mount Spring Water (Pvt) Ltd. during the years from 2016 to 2020. Whilst during the said
years the target KPI was not achieved, the company has witnessed a further decline in the
22
levels of productivity from 96.3% in 2016 to 88.9% in 2020 which is a further decline of 8.1%
from the expected KPI.
Employee absenteeism rate at Mount
Spring Water (Pvt) Ltd.
12%
10%
8%
6%
4%
2%
0%
2016
2017
2018
Expected
2019
2020
Expected2
Figure Nine: Employee Absenteeism Rate from 2016 – 2020 at Mount Spring Water
(Pvt) Ltd.
Figure nine depicts the data acquired on the absence rates of Mount Spring Water Pvt Ltd.
employees from 2016 to 2020. While the intended KPI is 3%, figures show that for the year
2020, the actual absence rate was 10.83 percent, indicating a considerable increase from 4
percent in 2016.
Customer Satisfaction level from 2016
to 2020
100,00%
95,00%
90,00%
85,00%
80,00%
2016
2017
2018
Actual
2019
2020
Expected
Figure Ten: Customer Satisfaction level from 2016 to 2020 at Mount Spring Water
(Pvt) Ltd.
23
Figure 10 depicts customer satisfaction levels at Mount Spring Water (Pvt) Ltd during
a five-year period from 2016 to 2020. While the desired KPI is 98 percent, it is clear
that in 2016, customer satisfaction was 97.4 percent, a 0.6 percent decrease from the
projected number. However, the organization's customer satisfaction levels continued
to fall, and by 2020, the number was 87.2 percent, a 10.8 percent drop from the planned
KPI.
Employee job satisfaction from 2016 to
2020
100%
80%
60%
40%
20%
0%
2016
2017
2018
Expected
2019
2020
Actual
Figure Eleven: Employee Job Satisfaction Rate from 2016 to 2020 at Mount
Spring Water (Pvt) Ltd.
The expected job satisfaction level by the management of Mount Spring Water (Pvt)
Ltd. is 95 percent, but secondary data gathered revealed that the job satisfaction level
during the year 2016 was 86 percent, which is 9 percent lower than expected. The
company witnessed a steady decline in employee job satisfaction at Mount Spring
Water (Pvt) Ltd. and by the year 2020 the job satisfaction level was 59.8 percent, which
is alarmingly low and a cause for concern.
24
Employee Turnover during the years from
2016 to 2020
12%
10%
8%
6%
4%
2%
0%
2016
2017
2018
Expected
2019
2020
Actual
Figure Twelve: Employee Turnover Rate from 2016 to 2020 at Mount Spring
Water (Pvt) Ltd.
Figure twelve reflects the employee turnover rate at Mount Spring Water (Pvt) Ltd.
during the year from 2016 to 2020. Whilst the expected rate is 3% during the year 2016
the organisation witnessed an employee turnover of 4.30% which is 1.3% higher than
what is expected and by the year 2020 this rate has increased to 10.8% which is an
increase of 6.5% than that of 2016 and an increase of 7.8% than what is expected by
the management. Furthermore; this is relatively high in comparison to the DSI Samson
Group where the employee turnover during the year 2020 was 8.85% which is 1.95%
lower than that of Mount Spring Water (Pvt) Ltd.
25
Faulty Products % during the years from
2016 to 2020
2,50%
2,00%
1,50%
1,00%
0,50%
0,00%
2016
2017
2018
Expected
2019
2020
Actual
Figure Thirteen: Faulty Products from 2016 to 2020 at Mount Spring Water
(Pvt) Ltd.
Figure thirteen depicts the faulty product percentage between the years from 2016 to
2020. As reflected in the graph above, there has been a steady rise in the number of
faulty products manufactured by Mount Spring Water (Pvt) Ltd. whilst the
organisation expects 0.5% faulty products during the year 2020 the organisation
witnessed 2.1% faulty products which is 1.6% higher than what is expected by the
organisation.
Therefore; based on the analysis of KPIs during the years from 2016 to 2020 it is
evident that Mount Spring Water (Pvt) Ltd. has witnessed an increase in waiting time,
employee absenteeism rates, employee turnover and faulty products and a decline in
productivity levels, customer satisfaction and employee job satisfaction
2.2.3 Leadership style analysis of the management staff of Mount Spring Water (Pvt)
Ltd.
At the time of this research, Mount Spring Water (Pvt) Ltd. comprises of 160
employees which includes 20 managers and 140 operational and executive staff.
Employees who had worked with the organisation for more than a year were selected
for this study, which amounted to 17 Managerial staff and 92 operational and executive
level employees. These management level employees perceived leadership style was
analysed through the use of the Multi-factor Leadership Questionnaire (MLQ) Form
26
6S which was completed by the operational and executive staff of Mount Spring Water
(Pvt) Ltd.
No.
Manager Level
Department
1
Senior
2
Junior
3
Senior
4
Junior
5
Junior
6
7
8
9
10
11
12
13
14
15
Senior
Junior
Junior
Senior
Senior
Junior
Senior
Junior
Junior
Senior
16
Junior
17
Senior
General
Manager
General
Manager
Human
Resource
Human
Resource
Human
Resource
Manufacturing
Manufacturing
Manufacturing
Finance
Finance
Finance
Marketing
Marketing
Marketing
Transportation
and Logistics
Transportation
and Logistics
Administration
Leadership
Style
Transformational
Laissez Faire
Transformational
Transformational
Transactional
Transactional
Transformational
Transactional
Transformational
Transformational
Laissez Faire
Transactional
Laissez Faire
Laissez Faire
Transactional
Laissez Faire
Transactional
Table Six: Senior and junior management staff - Perceived Leadership Styles
Table six showcases the perceived leadership styles of the managers who have worked with
Mount Spring Water (Pvt) Ltd for over a period of one year. The table reflects the perceived
leadership style of eight senior managers and nine junior managers. Whilst; the senior
managers comprise of four transformational leaders and four transactional leaders, It is vital
to highlight that none of the senior managers are viewed as laissez faire leaders. In terms of
junior level managers, the perception of leadership indicated two transformational managers,
one transactional leadership manager, and five laissez faire leaders.
27
The general management department heads comprised of one transformational and one
transactional leader. The human resource department comprised of no laissez faire leaders
and thereby comprised of two transformational and one transactional leader. The
manufacturing department had no laissez faire leaders and comprised of two transactional and
one transformational leader. The finance department comprised of two transformational and
one laissez faire leader. The marketing department had no transformational leaders and
comprised of one transactional and two laissez faire leaders. Transportation and logistics
comprised of one transactional and one laissez faire leader and as the administration
department managers were relatively new only one manager’s leadership style was assessed
and the perceived leadership style of that manager was transactional.
2.3 LEADERSHIP
Leadership has been described by many scholars including Gray and Starke (1997) who
described leadership as the capacity of an individual to inspire followers and ultimately
achieve goals. Gagne and Desi (2005) underlined the role of leadership in molding employee
behavior inside an organization. According to Yukl and Van Fleet (1192), leadership is defined
as the capacity to persuade individuals to work together toward a single objective, as well as
the dynamic connection between superiors and workers. Furthermore, successful leadership,
according to Yukl and Van Fleet (1192), may result in a number of beneficial outcomes at the
individual, group, and organizational levels.
Charry (2012) outlines how leadership ideas were extensively investigated in the early
twentieth century and identifies eight prominent leadership theories.
2.3.1 Great Man Theory
According to great man theory it is stated that, the ability to lead is intrinsic, and great leaders
are born. These ideologies usually portray leaders as heroic, legendary, and destined to rise to
power when called upon. The term "great man" was coined because, at the time, leadership
was seen to be primarily a male trait, particularly in military leadership. A person born with
the personality attributes of a leader - charm, confidence, intellect, communication skills, and
social aptitude – is born capable of leadership, according to this opinion. This strategy
emphasizes leadership as a trait that you either have or don't have; it is not something that can
be learned Ololube (2013).
2.3.2 Trait Theory
According to the trait theory of leadership, certain people are more likely to acquire and
succeed in leadership roles due to the presence of specific characteristics (Judge, et al., 2002).
28
People who are born with distinctive talents and attributes, such as personality traits, physical
features, and IQ qualities, become leaders, according to the trait theory (Zaccaro, 2007)
2.3.3 Contingency Theories
Contingency theories of leadership concentrate on specific contextual factors that may
influence whether a certain leadership style is best suited for a specific work setting. According
to this point of view, no single leadership style is suitable for all situations. A contingency
factor is essentially any scenario in any relevant environment that must be taken into account
while constructing an organization or one of its components (Naylor, 1999). Successful
leadership, according to contingency theory, is described as the degree of fit between a leader's
attributes and leadership style and what is required by a certain event (Lamb, 2013).
2.3.4 Situational Theory
Leaders should select the best course of action based on the situational conditions or
circumstances, according to situational theory. Certain leadership styles may be more suited
to certain types of decision-making. Situational leadership adapts to the current work
environment and corporate expectations; it is not dependent on the leader's specific
competence; rather, he or she adapts his or her management style to the demands of the
business. Adaptability is one of the components of Situational Leadership. Leaders must be
able to switch between leadership styles in order to meet the changing demands of a company
and its employees (Amanchukwu et al., 2015).
2.3.5 Behavioural Theory
According to behaviour leadership theories, the effectiveness of a leader is decided by their
behaviours rather than their intrinsic attributes; leaders are produced rather than born. This
leadership theory emphasizes leaders' behaviours rather than their intellectual abilities or
psychological sentiments. According to behavioural theory, people may learn to be leaders via
training and observation (Amanchukwu et al., 2015). According to Naylor (1999), a
comprehensive comparison of authoritarian vs democratic leadership styles has spurred
interest in leader behaviour.
2.3.6 Participative Theory
The ideal leadership style, according to participatory leadership theories, is one that values the
contributions of others. Participatory leaders encourage group members to participate and
contribute to the decision-making process, making them feel important and involved. A
manager who uses participatory leadership seeks to involve people rather than make all
decisions, which fosters dedication and teamwork, resulting in higher-quality decisions and a
more successful organization (Lamb, 2013).
2.3.7 Transformational Theory
Transformational theories are interested in the interactions that take place between leaders and
followers. This type of leadership is the process through which a person interacts with others
29
and connects with them, resulting in increased motivation and morale in both followers and
leaders. Transformational leadership theory is frequently contrasted with charismatic
leadership theories, which suggest that leaders with certain traits, such as confidence,
extroversion, and well expressed values, are better able to motivate followers (Lamb, 2013).
Transformational leaders encourage and inspire their teams by assisting them in seeing the
value and greater good of the task at hand. These leaders are concerned not just with the
success of the group, but also with each individual reaching his or her greatest potential.
Leaders of this method typically have strong ethical and moral standards. (Charry, 2012)
Transformational leadership, according to Bass (1985), consists of four interconnected
dimensions: idealised influence, personalised consideration, inspiring motivation, and
intellectual stimulation. Idealised influence is the leader's capacity to uphold high ethical
standards and fulfil his or her position by leading by example in order to produce high levels
of commitment from followers. Individualised concern refers to a leader's ability to attend to
the needs of individual followers, hence promoting the growth of those followers. When a
leader feels positive about his or her followers and motivates them to work together to reach
a shared goal, this is referred to as inspirational motivation. Intellectual stimulation is when a
leader encourages his or her followers to think for themselves by using creativity and
inventiveness (Belias and Koustelios, 2014).
2.3.8 Transactional Theory
Transactional theories explore the roles of supervision, organization, and group performance,
as well as the interactions between leaders and followers. These leadership concepts are based
on a system of rewards and penalties (Charry, 2012). In other words, it is the role of a leader
to offer frameworks that clearly describe what is expected of followers as well as the
consequences (rewards and penalties) associated with meeting or failing to meet expectations
(Lamb, 2013). Employees who do well are rewarded, while those who perform poorly are
reprimanded or punished (Charry, 2012). Transactional theory is frequently associated with
management as a concept and practice, and it remains an important component of many
leadership paradigms and organizational structures (Lamb, 2013).
According to Bass (1985), transactional leaders have two dimensions: contingent
compensation, in which the work performed is contractually reimbursed, and management by
exception, in which the leader watches the employees behaviour and intervenes when a
deviation from the expectation occurs.
2.4 JOB SATISFACTION
Employee job satisfaction refers to a person's sentiments about his or her employment and the
company for which they work. Job satisfaction may be defined methodologically as an
employee's emotional reaction to a job based on a comparison of actual and intended outcomes
(Mosadeghrad, 2003)
30
According to Locke (1976), job satisfaction is a cheerful or excellent emotional state resulting
from one's employment or job experiences. Throughout the years, several studies have
revealed a significant correlation between leadership and job satisfaction (McPhail et al., 2015;
Celik & Cengiz, 2015). Northouse (2004) investigated how positive leadership linked to
increased job satisfaction.
Job satisfaction may be viewed as a metric for measuring job and work expectations. Packard
and Kauppi (1999) discovered that different leadership styles correlate with varying degrees
of job satisfaction.
2.5 IMPACT OF LEADERHSIP ON JOB SATISFACTION
2.5.1 The impact of Transformational Leadership on Job Satisfaction
According to Riaz and Haider (2010); Burkus (2020); transformational leadership is positively
associated with job satisfaction.
Haleem et al. (2008), idealised influence has a strong positive correlation with the effort
employees put in to complete an assigned work, resulting in increased job satisfaction.
Awamleh et al. (2005) suggests how, individualised consideration and intellectual stimulation
evokes favourable reactions from employees, hence enhancing job satisfaction; this is
supported by Chen et al. (2005), who suggests that there is a substantial correlation between
job satisfaction and individualised consideration. Haleem et al., (2008) describes the effect
intellectual stimulation has on enhancing job satisfaction. In a study conducted by Boamah, et
al., (2017) the dimension inspirational motivation was perceived as having the strongest
correlation with job satisfaction.
2.5.2 The Impact of Transactional Leadership Style on Job Satisfaction
Bennett, (2009); Laohavichien et al., (2009) suggests that transactional leadership aids in
achieving the objectives of an organisation as a result of factors such as enhanced job
satisfaction amongst employees.
According to Chen et al., (2005); Nguni (2007), contingent reward component can help
enhance job satisfaction levels of employees. Furthermore; Judge & Piccolo (2004); Tetteh &
Brenyah (2016) discovered a weak correlation between job satisfaction and the transactional
leadership dimension - management by exception.
31
2.5.3 The Impact of Laissez Faire Leadership Style on Job Satisfaction
This sort of leadership is defined by Einarsen et al. (2007) as the leaders' bare application of
effort to ensuring the assigned duty is completed. As a result, this form of leadership is seen
as dormant (Spinelli, 2006). Leaders who are laissez-faire shirk responsibility and postpone
making decisions. Employees are given decision-making authority by such leaders (Bass and
Avolio, 2006).
According to Malki and Juan (2018), as a result of laissez faire leadership, employees may
experience a lack of communication, feedback for development, and the capacity to meet
project completion dates, resulting in a decline in job satisfaction.
Inadequate supervision, according to Madlock (2008); Cilliers et al. (2008), can lead to poor
interpersonal relationships, resulting in low employee satisfaction.
Based on the literature research thus far, it is plausible to infer that transformational leadership
and transactional leadership are the best suitable leadership styles to be evaluated at Mount
Spring Water (Pvt) Ltd, whereas laissez faire leadership is the least successful kind of
leadership. In order to boost employee job satisfaction, this research will strive to discover the
most successful leadership style best suited for Mount Spring Water (Pvt) Ltd management
team.
2.6 CONCEPTUAL FRAMEWORK AND HYPOTHESES
Figure Fourteen: Conceptual Framework
32
Mount Spring Water (Pvt) Ltd operational and executive staff completed a Multifactor
Leadership Questionnaire to determine the perceived leadership style of the
organization's managerial people (MLQ). In conjunction with a employee job
satisfaction questionnaire developed by Paul E. Spector for the University of Florida's
Department of Psychology to analyse employee job satisfaction levels at Mount Spring
Water (Pvt) Ltd.
The researcher hoped to answer the above-mentioned study aims by evaluating the
hypotheses listed below.
H1: There is a positive relationship between transformational leadership and employee
job satisfaction at Mount Spring Water (Pvt) Ltd.
H2 There is a positive relationship between transactional leadership and employee job
satisfaction at Mount Spring Water (Pvt) Ltd.
H3: There is a negative relationship between Laissez Faire Leadership and employee
job satisfaction at Mount Spring Water (Pvt) Ltd.
2.7 Chapter Summary
This chapter provides a review of the literature on leadership and employee job
satisfaction, as well as the conceptual framework of the study, which would investigate
the influence of leadership on job satisfaction. Furthermore, this study addressed the
formulation of hypotheses to answer the research issues stated in Chapter 1.
33
CHAPTER THREE
3.1.1 Research Approach
Due to time restrictions throughout the investigation, the researcher chose a hypotheticdeductive technique. This technique allows the researcher to identify and examine the
influence of transformational leadership, transactional leadership, and laissez faire leadership
on employee job satisfaction at Mount Spring Water (Pvt) Ltd. through the generalisation of
findings.
3.1.2 Research Strategy
To conduct this research, a survey strategy approach was chosen due to the researcher's time
constraints and the desire to gather data from the sample as soon as possible. The link between
chosen factors and generalizing the findings were two of the particular aspects considered as
part of the target population. It is vital for the researcher to understand that, while the survey
approach predicts a broad-based outcome, it is merely a forecast and does not always represent
the outcome of the entire population.
3.1.3 Time Horizon and measuring instrument
A cross sectional study was conducted due to the time constraints faced the researcher.
Despite criticism for incorporating conceptual errors, Bass and Avolio's (1990) Multifactor
Leadership Questionnaire (MLQ), Form 6-S has been recognized as the most widely used tool
to measure leadership (Kirkbride, 2006 Charbonneau, 2004). Spector (1994) developed a work
satisfaction questionnaire that was used to measure employee job satisfaction.
Two surveys (one for leadership and one for work satisfaction) were distributed to Mount
Spring Water (Pvt) Ltd's operational and executive personnel.
The leadership questionnaire comprised of 21 close ended questions which included a likert
scale where 0 ‐ Not at all 1 ‐ Once in a while 2 - Sometimes 3 - Fairly often 4 – Frequently. In
completing these questions related to leadership, the questionnaires addressed the four
dimensions of transformational leadership (idealised influence through questions including ‘I
am proud to be associated with my manager’, intellectual stimulation ‘My manager helps me
in finding meaning in my work’, inspirational motivation through questions including ‘My
Manager provides new ways of looking at puzzling things’, and individualised consideration
questionnaires included ‘My manager gives personal attention when I seem rejected), the two
34
dimensions of transactional leadership (contingent reward, were assessed through questions
such as ‘My manager provides recognition/rewards when I reach my goals’ and management
by exception was assessed through questions such as ‘My manager does not try to change
anything as long as things are working) and laissez faire leadership questions included ‘My
manager asks no more of me than what is absolutely essential’.
The job satisfaction questionnaire comprised of thirty six questions which are close ended and
assessed through likert scale (1- Disagree very much, 2 –Disagree moderately, 3 – Disagree
slightly, 4 – Agree Slightly, 5 – Agree moderately, 6 – Agree very much) and includes
questions that assess job satisfaction such as ‘When I do a good job, I receive the recognition
for it’
3.1.4 Sampling Plan
The company within which the researcher is conducting the research comprises of seventeen
managerial staff who have worked for longer than a period of one year within seven
departments which include the general manager, human resources, manufacturing, finance,
marketing, transportation and logistics and administration.
Table Seven: Sampling Plan of Mount Spring Water (Pvt) Ltd
3.1.5 Method of Collecting Data
Data gathered for this research included both primary and secondary data.
The primary data for this study was acquired using the Multifactor Leadership Questionnaire
(MLQ), Form 6-S developed by Bass and Avolio (1990), which consisted of twenty one items,
and the work satisfaction questionnaire developed by Spector (1994), which consisted of thirty
six questions.
35
Secondary data for this study comprised financial records, staff turnover and absenteeism
records, customer complaints records, and data acquired through records, including exit
interviews, from 2016 to 2020.
3.1.6 Validity and Reliability
With the MLQ 6s being extensively employed as a leadership measurement (Tejeda, 2001).
Hinkin and Schriesheim (2008); James and Ogbonna (2013), suggest how there is empirical
evidence that suggests that the Multifactor Leadership questionnaire is the most thorough and
reliable questionnaire for measuring leadership. According to Astrauskaite et al., (2011);
Shahzad & Begum (2011) the job satisfaction questionnaire utilised for this study is one of the
most frequently used questionnaires in assessing the levels of job satisfaction.
Furthermore; a pilot study will be conducted amongst the employees by the researcher
with the aim of increasing the validity and reliability.
3.1.7 Pilot Testing
Nineteen operational and executive staff were chosen to participate in a pilot study to test the
instruments to be used in the research, representing 25% of the sample size of 75 persons who
worked at Mount Spring Water (Pvt) Ltd for a year. The goal of this pilot research was to
evaluate the comprehension ability of the questions as well as the time required to complete
each questionnaire. The results of the pilot study demonstrated that operational and executive
staff understood the questionnaire's content and that the research could be completed with no
adjustments to the questionnaires.
3.1.2 Analysis of Data
The Statistical Package for Social Sciences, version 28, was used to analyze the data gathered
from the distribution of two closed-ended questionnaires on leadership and employee job
satisfaction (SPSS). While the standard deviation for each leadership style was calculated
using a univariate analysis, the bivariate analysis calculated the correlation coefficient between
the independent variables transformational leadership, transactional leadership, and laissez
faire leadership and the dependent variable employee job satisfaction. A regression analysis
was done to estimate the beta value and significance value of each of the leadership style
variables, as well as the R square value of each of the leadership styles, in order to examine
the impact.
3.1.3 Ethical Issues
It is critical for the researcher to observe the numerous ethical norms established by various
agencies and researchers while conducting face-to-face surveys. Thus, in order to ensure that
the key ethical concerns are met, the researcher ensured that all participants in this study
36
received a form of consent that clearly states that the content of the research will remain
confidential and anonymous, as well as informing the participants of their ability to withdraw
from the study.
3.2 Chapter Summary
This chapter described the study's research methodology, which included the research
paradigm, research technique, research design, data collecting method, sample design, data
analysis, and ethical considerations, as well as information on the sampling strategy and the
pilot study.
37
CHAPTER FOUR
4.1 DATA ANALYSIS AND FINDINGS
4.1.1 Demographic Analysis of the respondents of Mount Spring Water (Pvt) Ltd.
4.1.1.1 Gender of Respondents
The demographics of the respondents who participated for the study was analysed, and
it was identified that amongst the 75 employees who took part in the study 49 of the
participants were male thus indicating that 65.3% of the analysed participants were
male; whereas the female respondents amounted to 26 respondents which indicated
that the female participants amounted to 34.7%.
Figure Fifteen: Gender of Respondents
38
4.1.1.2 Age of Respondents
The age of the respondents is depicted in figure sixteen and Table nine and it is possible to
state that the majority of the employees who participated in the study were between the age
group of 26 – 50 which amounted to 40 employees (53.3%), whereby the lowest frequency
was identified in the group of over 51 year olds which amounted to 14 participants 18.7%.
Figure Sixteen: Age of the respondents
Age of Respondents
Frequency
Percent
Valid Percent
Cumulative
Percent
16 - 25
21
28.0
28.0
28.0
26 - 50
40
53.3
53.3
81.3
Over 51
14
18.7
18.7
100.0
Total
75
100.0
100.0
Valid
Table Nine: Age of the respondents
39
4.1.2 Transformational Leadership Frequency tables
4.1.2.1 Data related to Idealised influence
Table Ten: Idealised Influence Frequency Tables
Table ten depicts the data gathered with reference to idealised influence. For the Question it makes
me feel good to be around my Manager over 25 respondents amounting to 33.3% have opted for
frequently and 38 respondents amounting to 50.7% employees have opted for fairly often. For the
question I have complete faith in my manager 47 respondents amounting to 62.7% have chosen
frequently as their choice. It is important to note that for these questions none of the respondents
have opted for not at all or once in a while. However; for the question I feel honoured to be
associated with my manager whilst none of the respondents opted for not at all, 6 respondents
amounting to 8% have opted for once in a while.
40
4.1.2.2 Data related to Inspirational motivation
Table Eleven: Inspirational motivation Frequency Tables
Table eleven displays the data gathered from the respondents related to transformational
leadership. For the three questions related to inspirational motivation, none of the respondents have
answered as not at all. However; for the question my Manager expresses in a few simple words
what I could and should accomplish 2 respondents (2.7%) have responded as once in a while and
32 (42.7%) have opted as frequently. For the questions ‘My Manager provides appealing images
41
about what I can do’ 29 (38.7%) and ‘My manager assists me in finding significance in my job’
32 (42.7%) amounting to a majority of the respondents have chosen frequently as the option.
4.1.2.3 Data related to Intellectual stimulation
Table Twelve: Intellectual stimulation Frequency Tables
Data related to intellectual stimulation is depicted in table twelve above, it is important to note that
none of the respondents have opted for not at all and once in a while in any of the questions related
to intellectual stimulation and frequently was only opted for by 7 respondents amounting to 9.3%
for the question my manager enables me to think about old problems in new ways. For the
remaining questions the respondents have opted for sometimes or fairly often.
42
4.1.2.4 Data related to Individualised consideration
Table Thirteen: Individualised consideration Frequency Tables
Table thirteen displays the data gathered related to individualised consideration, whilst for the
question when I appear to be rejected, my manager pays close attention to me had 10
respondents opting for once in a while for the remaining questions none of the respondents
opted for not at all and once in a while.
43
4.1.3 Transactional Leadership Frequency tables
4.1.3.1 Data related to Contingent rewards
Table Fourteen: Contingent rewards Frequency Tables
The responses received for the questions related to contingent rewards has been tabulated in
table fourteen. Whilst none of the respondents have not selected not at all as an option, for the
question My manager tells me what I need to do if I want to be rewarded for my efforts only 3
respondents 4% have opted for frequently and for the remaining 2 questions none of the
participants have selected frequently, furthermore over 40% of the participants have opted for
sometimes for the questions.
44
4.1.3.2 Data related to Management by exception
Table Fifteen: Management by exception Frequency Tables
Table fifteen reflects the frequency tables for the respondents answers related to the questions on
transactional leadership – management by exception. Whilst none of the respondents have opted
for not at all, for the questions My manager is satisfied when I meet agreed upon standards and
My manager does not try to change anything as long as things are working the respondents have
answered as Once in a while.
45
4.1.4 Laissez Faire Leadership Frequency tables
4.1.4.1 Data related to Laissez Faire Leadership
Table Sixteen: Laissez Faire Frequency Tables
Table sixteen depicts the data gathered for the three questions related to laissez faire leadership. It
is important to note that none of the respondents have opted for not at all and once in a while,
however for all three questions a majority of the respondents have opted for fairly often.
46
4.2 Data related to Hypotheses
4.2.1 Hypothesis One There is a positive relationship between transformational
leadership and employee job satisfaction at Mount Spring Water (Pvt) Ltd.
Table Seventeen: Relationship between transformational leadership and employee job
satisfaction
Table seventeen presents the findings of a correlational research between transformational
leadership and employee job satisfaction. According to the statistical study results, there is a
substantial positive association between transformational leadership and employee job satisfaction
with a significance level of 0.000.
Model Summary
Model
R
.566a
1
a.
R Square
Adjusted R
Std. Error of the
Square
Estimate
.321
.312
.24692
Predictors: (Constant), Transformational Leadership
ANOVAa
Model
1
Sum of Squares
df
Mean Square
Regression
2.103
1
2.103
Residual
4.451
73
.061
Total
6.554
74
F
34.495
Sig.
.000b
a. Dependent Variable: Employee Job Satisfaction
b. Predictors: (Constant), Transformational Leadership
Table Eighteen: Regression analysis of Transformational leadership
47
The linear regression analysis of transformative leadership is shown in Table 18. The R value is
0.566 with a R square value of 0.321 between transformative leadership and employee job
satisfaction. Furthermore, with an Anova significance value of 0.000, it is clear that
transformational leadership has a statistically significant influence on work satisfaction. As a result
of the statistics shown here, it is feasible to infer that transformative has a statistically significant
positive link with work satisfaction, and hypothesis one is accepted.
4.2.2 Hypothesis Two There is a positive relationship between transactional leadership and
employee job satisfaction at Mount Spring Water (Pvt) Ltd.
Table Nineteen: Relationship between transactional leadership and employee job
satisfaction
Table nineteen depicts the statistical correlation between the independent variable transactional
leadership and employee job satisfaction. As reflected in the fore mentioned table, there is a strong
negative relationship between transactional leadership and employee job satisfaction.
48
Table Twenty: Regression Analysis of Transactional Leadership
The linear regression analysis of transactional leadership is shown in Table 20. With a R Square
value of 0.005, the R value between transactional leadership and employee job satisfaction is 0.70.
Furthermore, with an Anova significance value of 0.553, it is clear that transactional leadership
has no statistical significance in connection to work satisfaction. As a result of the statistics shown
above, it is feasible to conclude that transactional leadership has a negative association with work
satisfaction, and hypothesis two is rejected.
4.2.3 Hypothesis Three There is a negative relationship between Laissez faire leadership
and employee job satisfaction at Mount Spring Water (Pvt) Ltd.
Table Twenty One: Relationship between Laissez Faire leadership and employee job
satisfaction
Table Twenty One depicts the statistical correlation between the independent variable laissez faire
leadership and employee job satisfaction. As reflected in the fore mentioned table, there is a weak
positive relationship between laissez faire leadership and employee job satisfaction.
Table Twenty Two: Regression analysis of Laissez Faire Leadership
49
The linear regression analysis of laissez leadership is shown in Table 22. With a R Square value
of 0.025, the R value between laissez faire leadership and employee job satisfaction is 0.158.
Furthermore, with an Anova significance value of 0.176, it is clear that laissez faire leadership has
no statistical significance in connection to work satisfaction. As a result of the statistics shown
above, it is plausible to infer that laissez faire leadership has a weak positive link with work
satisfaction, and hypothesis three is rejected.
4.3 Summary of hypotheses results
The researcher has outlined the findings as follows, based on the above tests.
Hypothesis One: There is a positive relationship between
Accepted
transformational leadership and employee job satisfaction at Mount
Spring Water (Pvt) Ltd.
Hypothesis Two: There is a positive relationship between transactional
Rejected
leadership and employee job satisfaction at Mount Spring Water (Pvt)
Ltd.
Hypothesis Three: There is a negative relationship between Laissez faire
Rejected
leadership and employee job satisfaction at Mount Spring Water (Pvt)
Ltd.
Table Twenty Three: Summary of hypotheses results
50
CHAPTER FIVE
5.1 CONCLUSION
Through the research gathered in order to conduct this research it was evident that in the past many
studies concluded that employee job satisfaction levels were enhanced through the management
adopting transformational and transactional leadership, the study's findings show that
transformational leadership has a significant impact on job satisfaction. However, the study,
despite showing an insignificant impact, suggests that transactional leadership has no impact on
job satisfaction and that laissez faire leadership has a weak impact on employee job satisfaction.
As a result of the study's findings, a complete leadership program for Mount Spring (Pvt) Ltd.'s
management team has been proposed in order to improve work satisfaction among the
organization's personnel.
5.2 RECOMMENDATION
PROPOSED LEADERSHIP QUALITIES




Idealized Influence
Inspirational Motivation
Intellectual Stimulation
Individualized Consideration
PROPOSED ACTIONS



To identify the transformational leadership skills utilised at present at Mount
Spring Water (Pvt) Ltd in order to develop tailored goals for the managers of
Mount Spring Water (Pvt) Ltd
To communicate the importance of developing transformational leadership in order
to enhance employee job satisfaction
To design implement and incorporate transformational leadership activities
amongst the mangers of Mount Spring Water (Pvt) Ltd

To frequently evaluate the progress of managers and their competencies
51
BUDGET PROPOSED FOR THE LEADERSHIP PROGRAMME
Rs. 7 million
OUTCOMES

Competent and efficient leaders at Mount Spring Water (Pvt) Ltd.

Employees whose job satisfaction level is high

Enhanced productivity

Less customer complaints and enhanced customer satisfaction

Reduced Turnover

Less recruitment and turnover costs

Less absenteeism

Increase in revenue and net profit margins
Table Twenty Four: Leadership Development Programme Implementation Plan
52
5.3 PROPOSED TIMELINE FOR LEADERSHIP DEVELOPMENT PLAN
PROGRAMME IMPLEMENTATION
June,
July, Aug, Sept, Oct,
Nov,
Jan,
Feb,
Mar,
2022
2022
2022
2023
2023
2023
2022
2022
2022
Designing leadership
development programme
Implementing leadership
development programme
Evaluating leadership
development programme
Table Twenty Five: Timeline for the proposed Transformational Leadership development
programme plan
53
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