ABSTRACT This research was aimed at studying the relationship between the leadership styles and the job satisfaction of the employees in Coal India Limited , a Public Sector Undertaking company in India. The objectives of the research was to examine the effect of leadership styles on employee’s job satisfaction under different situation according to the House’s Path Goal Theory and to investigate why certain behaviours are more effective than the others. The company has its headquarter in Kolkata which has 400 employees. The instrument used for gathering the data was a self administered questionnaire which was distributed among all the 400 employees of Coal India Limited. The survey asked the employees about their superior’s leadership style, the environmental factors(task structure , authority system and work group), their demographic data, and their own perception on job satisfaction. The findings showed that the employees had the most high level of job satisfaction with the directive style of leadership. The study also found that there was no significant relationship between job satisfaction and the other three styles name supportive, achievement- oriented and participative style of leadership. The study also concluded that task structure and the formal authority system affects the employee job satisfaction. Further the findings of this research says that the subordinate characteristics such as of education, income, experience in position also has a positive relation with the employee job satisfaction which implies that the subordinate characteristics also affects the employee job satisfaction. In each test of the hypotheses, the coefficient correlation was used at a significant level of 95 percent . Consequently it can concluded that there was a significant relationship between perceived leadership styles and employee job satisfaction taking into account certain subordinate characteristics and certain environmental factors . The study concluded with the recommendations for the further research. i ACKNOWLEDGEMENTS The researcher wish to express his deepest gratitude and warmest appreciation to every individuals and groups , who, in any way have contributed and inspired the researcher to the overall success of the research report . Firstly, appreciation is sincerely expressed to Dr. Patricia Arttachariya for guiding the researcher being his major advisor for his MUA research paper .The researcher is really thankful and grateful to her for her expertise ,time , guidance ,inspiration, problem solving abilities and patience during my entire research process . Secondly the researcher would like to thank a few people from Coal India Limited for their immense support , relating to the data collection procedure from the company . The researcher is really grateful to the following people: a)Mr B . Trivedi , Chief Personal Manager , COAL INDIA LIMITED b)Mr Asok Kr. Banerjee , General Manager , HRD , COAL INDIA LIMITED Finally the researcher specially thanks his parents , they have been a great support and the major source of inspiration & motivation to undertake this endeavour. Without their constant support this research would not have been possible . ii TABLE OF CONTENTS CHAPTER PAGE Abstract ..........…………………………………………………………………….. i Acknowledgements...............…………………………………………………….... ii Table Of Contents............. ……………………………………………………….... iii List Of Tables...........………………………………………………………………. vi List Of Figures...........……………………………………………………………… Viii Chapter 1 1.1 Introduction …………………………………………………………………….. 1 1.2 Statement of the problem ……………………………………………………… 2 1.3 Rationale for using Path- Goal Theory ………………………………………… 2 1.4 Research Question …………………………………………………………….. 3 1.5 Objective Of The Study ……………………………………………………… 3 1.6 Scope Of The Research ………………………………………………………... 3 1.7 Significance Of The Research …………………………………………………. 4 1.8 Definition of Key Terms ………………………………………………………. 4 Chapter 2 2.1 Leadership Theories …………………………………………………………… 6 2.2 Great Man & Trait Theories ………………………………………………….. 7 2.2.1 The Great Man Theory ………………………………………………………. 7 2.2.2 The Traits Theory ……………………………………………………………. 7 2.3 Behavioural Theories……………………………………………………............ 8 iii TABLE OF CONTENTS( contd.) Page 2.3.1 The Ohio State Studies ………………………………………………………. 9 2.3.2 The Michigan Studies………………………………………………………… 10 2.3.3The Managerial Grid ………………………………………………………….. 11 2.4 Fiedler’s Contingency Theory …………………………………………………. 12 2.5 Situational Theories ……………………………………………………………. 13 2.5.1 Vroom & Yetton’s Leadership –Participation Model ………………………… 13 2.5.2 Hersey & Blanchard’s Situational leadership Model ………………………….. 14 2.5.3 House’s Path Goal Theory ……………………………………………………. 15 2.6 Job Performance…………………………………………………………………. 22 2.6.1 Relationship of Leadership Style and Job Performance………………………... 23 2.6.2 Factors Affecting Job Performance …………………………………………… 23 2.7 Job Satisfaction ………………………………………………………………….. 24 2.8 Previous Studies ………………………………………………………………….. 25 2.9 Summary Of Literature Review …………………………………………………. 27 2.10 Research Framework …………………………………………………………...... 27 2.11 Statement of Hypothesis………………………………………………………… 29 2.11.1 Assumption of Hypothesis……………………………………………………. 29 2.12 Concepts & variables Operationalization …………………………………… 30 Chapter 3 3.1 Research Methodology ………………………………………………………..... 34 3.2 Sample ………………………………………………………………………….... 34 3.3 Research Method ………………………………………………………………… 34 3.4 Data Collection Method ………………………………………………………….. 34 3.5 Sample Size ………………………………………………………………………. 35 iv TABLE OF CONTENTS( contd.) Page 3.6 Research Instrument ……………………………………………………………… 35 3.6 Statistical Treatment ……………………………………………………………… 37 Chapter 4 4.1Data Analysis ……………………………………………………………………… 38 4.2 Pretesting ………………………………………………………………………….. 38 4.3 The Descriptive Analysis …………………………………………………………. 39 4.4 Hypothesis Testing …………………………………………………………….. 47 Chapter 5 5.1 Summary Of Findings …………………………………………………………….. 57 5.2 Conclusion ………………………………………………………………………… 59 5.3 Recommendations …………………………………………………………………. 61 5.4 Future Research …………………………………………………………………… 61 5.5 Limitations ………………………………………………………………………… 62 Bibliography ........……………………………………………………………………..... 63 Appendices ......………………………………………………………………………… 67 Questionnaires……….…………………………………………………………….. 68 Letter from the University to Coal India Limited ………………………………... 73 Approval letter from Coal India Limited ………………………………………… 74 v LIST OF TABLES Page Chapter 2 2.1 Leadership traits identified by Stodgill ………………………………………….. 8 2.2 Effective Leadership Styles under certain conditions ……………………………... 20 2.3 Comparison of situational leadership model ……………………………………….. 21 2.4 Concept and Variables Operationalization ………………………………………… 32 Chapter 5 4.1 Pretesting ……………………………………………………………………………. 39 4.2 Respondent’s Gender ………………………………………………………………… 39 4.3 Respondent’s Age …………………………………………………………………... 39 4.4 Respondent’s Highest Education ……………………………………………………. 40 4.5 Respondent’s Income ………………………………………………………………... 40 4.6 Respondent’s experience in position ……………………………………………….. 41 4.7 Number of Years for which Respondent is working under the current boss……….. 41 4.8 Mean Score of Directive leadership ………………………………………………. 42 4.9 Mean Score of Supportive Leadership ……………………………………………. 42 4.10 Mean Score of Achievement – Oriented Leadership …………………………… 43 4.11 Mean Score of Participative Leadership ………………………………………… 43 4.12 Mean Score of Task Structure …………………………………………………….. 44 4.13 Mean Score of Formal Authority System ………………………………………… 44 4.14 Mean Score of the Work Group …………………………………………………… 45 4.15 Mean Score of the Work Itself ……………………………………………………. 45 4.16 Mean Score of the Pay …………………………………………………………….. 46 4.17 Mean Score of promotion ………………………………………………………… 46 4.18 Mean Score of the Co –worker ……………………………………………………. 46 4.19 The Overall Mean Score of the Leadership style ………………………………… 46 4.20 The Overall Mean Score of the Environmental Factors ………………………….. 47 vi LIST OF TABLES (Contd.) Page 4.21 The Overall Mean Score of the Employee Job Satisfaction ………………………. 47 4.22 Correlation Matrix between Employee Job Satisfaction & Leadership Behaviours...48 4.23 The Analysis of Relationship between Employee Job Satisfaction and Leadership Behaviors by Using Multiple Regression………………………………………………….. 49 4.24 Correlation Matrix between Employee Job Satisfaction and Environmental Factors… 50 4.25 The Analysis of Relationship between Employee Job Satisfaction and Environmental Factors by Using Multiple Regression……………………………………………………… 50 4.26 Correlation Matrix between Employee Job Satisfaction and Subordinate Characteristics………………………………………………………………………………. 51 4.27 Correlation Matrix between Employee Job Satisfaction and Leadership Behaviours under Dissimilar Environmental Factors – Task Structure…………….………………… 52 4.28 Correlation Matrix between Employee Job Satisfaction and Leadership Behaviours under Dissimilar Environmental Factors – Authority System……………………………… 53 4.29 Correlation Matrix between Employee Job Satisfaction and Leadership Behaviours under Dissimilar Environmental Factors – Work Group…………………………………. 55 vii LIST OF FIGURES Page Chapter 2 2.1 Ohio Model ……………………………………………………………………… 9 2.2 Michigan Studies ……………………………………………………………….. 10 2.3 The Managerial Grid …………………………………………………………… 11 2.4 Fiedler’s Contingency Model Of Leadership ………………………………….. 13 2.5 Vroom & Yetton Model Of Leadership ………………………………………... 14 2.6 HERSEY & BLANCHARD’S SITUATIONAL LEADERSHIP MODEL ... 15 2.7 Robert Houses’s Path Goal Model ……………………………………………….. 16 2.8 Research Framework …………………………………………………………... viii 28