PROPOSAL

The impact of leadership on employee motivation: A case study of Nestle Pakistan Limited

South Thames College University of Cumbria

List of Contents
1. 2. 3. 3.1 3.2 3.3 3.4 3.5 3.6 4. 5. 5.1 5.2 5.3 6. 6.1 6.2 6.3 6.4 7. 8. 9. 9.1 9.2 Title....................................................................................................................1 INTRODUCTION.............................................................................................1 RESEARCH PROPOSAL.................................................................................2 Research questions.............................................................................................2 Background theory.............................................................................................2 Brief summary of the organizations...................................................................4 Context and rationale.........................................................................................4 Aims...................................................................................................................5 Objectives..........................................................................................................5 LITERATURE REVIEW..................................................................................5 METHODOLOGIES.........................................................................................7 Chosen methodology...........................................................................................8 Justification of chosen methodology....................................................................8 Limitations of chosen methodology.....................................................................9 Research Design.................................................................................................9 Data collection....................................................................................................9 Sources of Data.................................................................................................10 Data analysis.....................................................................................................10 Gantt chart as Time Schedule and study plan.....................................................10 REFERENCES................................................................................................11 BIBLIOGRAPHY............................................................................................13 APPENDICES.................................................................................................15 Appendix 1.......................................................................................................15 Appendix 2.......................................................................................................15

3.4.1 Reasons for the research....................................................................................4

ii

1.

Title The impact of leadership on employee motivation: A case study of Nestle Pakistan Limited.

2.

INTRODUCTION

The hypothesis of the research is in appendix 1. There are two major reasons behind the struggle of leaders today and these reasons are interconnected with each other: (a) due to increase in globalization leaders need to deal with diverse clients, stakeholders, departments, vendors and divisions of the business; and (b) rapid improvements in the information technology leads to increase communications between workers to workers, workers to managers, managers to shareholder which are located at different geographical positions (Zaccaro and Bader, 2003). All this results, many experts in organization increase their focus on the style of leadership in that era of change, as the leaders need to face increase in the interactions with all the stakeholders of the organization. The question is that whether leaders need to make changes in their style of leadership considering their increased role in the organization with reference to communications with all the stakeholders or they should continue with their routine styles of leadership. According to Schneider et al., (2008) behaviors of the employees can become strong with the help of motivational activities and these can be aligned with the objectives of the organization (Abadi et al, 2011). All this means that if organizations want their workers to accomplish their goals in the right way and within the right time in an energetic manner, this need to give them a clear view about their role and accomplishments. Everyone wants to satisfy his needs which are still unaccomplished and it is an internal desire (Baldoni, 2005). So, in order to increase the motivation of workers, leaders need to target those needs so that workers could achieve the objectives of the organization with increase loyalty and motivation. Organizations can have targeted performances from their employees with the help of motivational techniques and increasing the satisfaction level of their workers (Abadi et al, 2011). The significance of the workers could not be denied for the success of organizations. Among other resources of the organization, human resource is that part which is more sensitive to the policies and procedures of the organization, so to increase their effectiveness for the organization; it is needed to increase their loyalty for the organization. What is the loyalty level of workers in any organization that can be determined with the help of style of leaders? The main idea behind this research is to evaluate the affect of transformational style of leadership on the loyalty of workers. Researcher will try to find the association between transformational style of leadership and affective loyalty of the employees in organization that whether these are positively associated or not. Researcher will explore that whether stimulations in respect of affective loyalty can impact negatively on employees turnover, absenteeism and dissatisfaction.

3. 3.1

RESEARCH PROPOSAL Research questions

Followings are the questions, the answer of which will be explored during this research study: How leaders' intrinsic process motivation positively related to charismatic leadership behaviors. How leaders' intrinsic process motivation positively related to transformational leadership behaviors. How does transformational leadership play effective role in employee motivation? How does transformational leadership play effective role in an organization? How does commitment and motivation effects on employees in an organizational productivity and betterment? How leaders lead for stability and lead for change in an organization? How motivating employees to achieve higher standards? How does leadership enhance employee morale, and creativity? How can leadership positive effect on employee performance in an organization? 3.2 Background theory

There are various theories which are presented by various authors and researchers in accordance with their thinking about leadership and its styles and these theories range from Great Man and Trait theories to Transformational style of leaders which are being discussed in the Table 3.2.1. The topic of discussion in the early theories was the features and attitudes of leaders who get success in their organizations and in the research work of later experts focus on the relationship between behaviors of followers towards different styles of leadership (Stogdill, 1974). Table 3.2.1 This theory reveals that leader have such qualities which they possess by birth. In the age of twentieth century, it was supposed that leadership is a concept which is merely associated with males, military and belongs to the west part of the world. It is for that reason the word man was used in the name of this theory. Trait theory was based on this thinking. In this theory all those positive features of human personality are discussed which were available in the dictionary and these were associated with the leaders as the traits of their personality. In these theory actual actions of the leaders was the base of theory rather then the 2

Great Man Theories

Trait Theories Behaviourist Theories

Situational Leadership

Contingency Theory

Transactional Theory

Transformational Theory

features of their personality. Their behavior was observed in different practical situations and it was termed as their style. Behavior approach was appreciated by most of the managers which were working in their organizations. Leadership and style of leadership depends on the situation in which leaders are working. There are some situations while working practically that requires leaders to be supportive while in others they need to follow an authoritative approach. Moreover, while working with different level of workforce, leaders need to make changes in their styles according to the level of employees in the organization. This theory is an improved version of situational theory where an organization is observed on grounds of various factors which would help leaders in adopting an effective style in accordance with the situation. Transaction means exchange of some consideration. According to this style of leadership, leaders transaction with their workers all those benefits and rewards which they need in return of the productivity level and output that is required to accomplish their goals as well as the objectives of the organization. Under this concept of leadership, leaders observe the requirements for the changes in the behaviors of their followers in order to increase their overall performance and performance of whole organization.

In all the above styles of leadership, features of an individual being a leader are being discussed however; a new concept of dispersed leadership is becoming popular. According to this style of leadership, leader believe in walks and talks and dissemination and they work in an informal manner like team leader considering the socio, psycho and political features of their followers. The aim of this style of leadership is not on the leaders and their personality features but it aimed to make organization a place where responsibilities are not only on leaders but in fact these are shared by everyone in the organization. However, in this present research, researcher is going to discuss the impact of transformational style of leadership on the working behaviors of followers. So, the discussions will be based on traditional theories where individuals as a leader were focused.

3.3

Brief summary of the organizations

Nestle Pakistan Limited has been selected for the present research activity and the leaders working in this organization at various designations like General Managers, Senior Managers, Managers, Deputy Managers, Assistant managers, Officers, and Supervisors, in respect of their role to support the working of their followers. Moreover, study will also try to find changes in the behavior of employees which were cause by leadership. The style of leadership which will be under discussion is transactional style of leadership. 3.4 Context and rationale

Robert Blake and Jane Mouton (1964) presented their research about the behavior of the leadership. In this theory, there are two types of leadership behavior, which are being discussed. according to the first style, there are leaders which are task oriented and they have less care for the employees, however, in contrast there are some other leaders which care for their workforce and prefer their satisfaction and think that if they are satisfied that work in a better way for the organization. On y-axis of this grid Concern level with reference to people is discussed and on the x-axis concern level with reference to task is highlighted. Between these axes five styles of leadership are discussed with reference to both concerns.

According to this theory, the leadership style that has concerns about employees as well as tasks Team Leader is being preferred by Blake and Mouton. Continuous learning in the organizations like Nestle Pakistan can help the leaders in understanding their role, in evaluating their leadership style and its impact on the performance of employees. All this will lead to further success of organization.

3.4.1

Reasons for the research

The main reason behind this research activity is to explore all three significant issues: i) motivation is linked with actions which are physically done by workers, ii) it is based on feelings of workers and iii) it is not related to any one else the workers. All these issues are associated with the leadership of any organization and which can impact on the behaviors, motivation and loyalty of their followers. The main focus of leaders should be to get the desired output from their followers as organizations like Nestle could not accomplish their goals all alone without the help of leaders. Motivation done by leaders play the main role in getting that desired output according to the objectives of the organization as traditional style of getting output like ordering workers are no more workable in this present world. Leaders work as a team leader and help and support others in their work which motivates them towards their work.

Leaders at Nestle may get assistance from the Managerial Grid Theories in improving their leadership skills and making them more fit to the situations which they face while working for the organization. There cannot be a universally applicable style of leadership; however, leaders need to make changes in their styles depending on the situation and nature of workforce with which they are working. 3.5 Aims

To discover if leadership is practiced properly in an organization. 3.6 Objectives To identify factors that motivates employees at Nestle Pakistan. To discover the leadership style to motivating employees at Nestle. To evaluate the effectiveness of a specific leadership style to motivating employees. Literature Review

4.

A transformational leader describe his aims and objectives in a way that he successfully made up the minds of followers so that they could highlight themselves as a member of team and understand their role in the team towards achievement of goals and work efficiently for the team (Larsson, 1999). There are some features of the personality of transformational leaders which are being discussed by Avolio & Bass (2002) that include determination, you-attitude in respect of followers, confidence and interpersonal conflicts. Leader with transformational leadership style may have following four types of attitudes: i. Encouraging Motivation: Transformational leaders with this kind of attitude set a high target to be achieved by their followers by acting themselves as an example and motivate their followers in achievements of these targets by providing them full support. Logical stimulus: According this attitude of leaders, they provide their followers an opportunity to understand their issues with reference to a recent viewpoint and with increase level of information. Personal Attention: Having this kind of attitude leaders pay attention towards particular followers by assisting them in their work and providing them required support to perform their obligations. Idealized Leadership: Leaders behave in a way that they become the role model for their followers and they start idealizing them while performing their jobs.

ii.

iii.

iv.

With the help of transformational style of leadership, leaders motivate their followers in way that they start taking initiatives regarding their jobs and they are provided with the freedom they require to perform their obligations, all this increases their loyalty towards their leaders and organization and enhance their confidence. However, in case of transactional style of leadership, leaders try to provide all that what is demanded by their followers and in return motivate them to provide all that what is needed by organization, so it can be regarded as a process of exchange. Employers provide incentives in shape of salaries and bonuses to get their work done by their employees and in the same way political leaders help their followers by providing them financial assistance of sorting out their problems like unemployment for the sake of vote. So, through this style of leadership leaders provide their followers different kind of benefits in exchange of their efforts towards achievement of objectives of the organization. There are four different kinds of attitudes that transactional leaders could have while working practically with their followers: i. Managing actively: Leaders use this kind of behavior when there is a need to accomplish tasks by following certain standards and they evaluate the performance of their followers in accordance with those standards and try to minimize any kind of variances in this connection. Managing Passively: Under this kind of behavior leaders behave strictly in case of bad performances and panelize their followers so that they could achieve their targets according to the pre-described standards. Linking Benefits with the Performance: Leaders link the rewards to be paid to their followers with the accomplishment of tasks to be achieved by them in a specified manner. Laissez-faire Leadership: According to this kind of behavior leaders behave in way that he should be contacted only if there is fire in the factory and remain restricted to their offices only and does not play participative role.

ii.

iii.

iv.

Many leaders use transactional style of leadership for the achievement of targets and goals in light of objectives of the organization (Avolio & Bass, 2002). According to Bass (2000) most of the leaders use both style of leadership depending on the nature of job to be done by them and workforce they have to deal with. The main target under both these style of leadership is effectively accomplished goals and objectives of the organization. Transformational leaders observe the changes in the internal and external environment of the organization and try to bring changes in the working habits of their followers (Larsson, 1999). The impact of both styles of leadership was being observed by Bass (2000) and he provide following rankings: i. Transformational leaders. ii. Leaders who link rewards with the performances. iii. Leaders who manage actively.

iv. v.

Leaders who manage passively. Laissez-faire Leaders.

There is a short coming in the transformational style of leadership which was noticed by Larsson (1999), according to him it is not discussed with reference to this style of leadership that how a follower will move through various levels in the hierarchy so this may impact positively on his motivation. There are many researches that prove in their work that transformational style of leadership has positive association with the level of job satisfaction which employees get from their jobs (Dunham-Taylor, 2000, Shieh et al., 2001). Same kind of association was observed by Shieh et al. (2001) in case of leaders who link rewards with the performance. There is a positive association in the transactional and transformation style of leadership with the satisfaction that employees derive from their job Al-Dmour & AlAwamleh (2002). Leadership behaviors where leaders focus on inspiring their followers by their motivation was discussed by Price & Weiss (2000) in his research work and consider that it is positively associated with the job satisfaction. There are other researchers as well like Al-Dmour & Al-Awamleh (2002) who find that transformational style of leaders have positive impacts on the job satisfaction and employees remain motivated towards their job. There are positive impact of transformational leadership on freedom of workers, their perception about the job and their satisfaction as it has been found through the research work conducted by Brossoit (2001). Transformational leaders in reality transform the targets of their followers and take them towards the higher levels in their career (Sparks & Schenk, 2001). According to Catalano (2003) leaders in aerospace industry use same styles of leadership like transformational and transactional styles as these styles are used by other leaders who belong to other different industries. 5. Methodologies

This segment will provide information about the methods and techniques that has been used to explore the impact of leadership on employee motivation: A case study of Nestle Pakistan Limited. This study will discuss various alternative methods like quantitative method which are available for research at first, and then there will be discussions on the initiatives taken to select a specific method. The design of research will also be discussed here. Researcher will develop a survey questionnaire and responses will be measured against a selected rating scale (1. strongly disagree, 2. Disagree, 3. Neither agreed nor disagree, 4. Agree, and 5 strongly agree) from the officers of Nestle Pakistan Limited. The questionnaire have attached as appendix 2.

As discussed earlier that this research will be based on a survey questionnaire and data will be collected using sampling technique by the researcher as it is convenient considering the time and funds constraints attached with the research. All these collected facts will be analyzed with the help of simple percentages and will be presented for better understanding in shape of tables and figures along with interpretations which will help in further findings, discussions, conclusions and recommendations. In research, the main concepts are observed in the basis of rationality. As quantitative data is being collected for this research, so researcher will adopt positivism philosophy for the present research. The data collection in this research is based on quantitative approach. Inductive reasoning will be applied by the researcher so to create a theory based on all these research activities. The strategy of present study is based the methods and techniques that are being suggested by Saunders et al., (2007). Researcher will collect data by using survey questionnaire technique which will be assisted by interview and face to face interactions. All the secondary facts and figures are being collected from various sources like internet, books, articles, periodicals, annual reports, newspapers and other relevant material. Most of the questions in the questionnaire are closed-ended which will require responses to show the degree of agreement or disagreement with the questions. Researcher will conduct this research considering the easiness of the participants and he will take their time as per their desire. For instance, in some case where enough time is available she would like to have information face to face otherwise she will collect these on telephone. All the questions will be targeting the main issue of this research i.e. the impact of leadership on employee motivation: A case study of Nestle Pakistan Limited. In order to ensure the accuracy of the results, responses of participants will be recorded with the help of audios and then these will be written in a page for further analysis. Because the sample size is not too large it is for that reason validity and reliability of the data could not be ensured. However, researcher will try to cover the objectives of this research with the help of questions and responses against questions in an unbiased manner. 5.1 Chosen methodology

Researcher had selected quantitative method and interpretivism for this research. 5.2 Justification of chosen methodology

Considering the strengths and weaknesses, researcher had selected quantitative methods for this present research which she considers is a better alternative to understand relationship between employees performance, motivation and leadership styles. Firstly, this research will be based on the cross-sectional research methods (Bryman, et al., 2007). According to this methods data for the purpose of research is collected with the help of different techniques but all collections takes place simultaneously.

Descriptive analysis will be used secondly in this research, where tables and figures will be made to describe the collected facts and figures in way that is more understandable and interpretable (Bryman, et al., 2007). This study will also highlight the grouping of participants on the basis of their demographic features like sex, age, education and income groups. 5.3 Limitations of chosen methodology

The data for this present study will be collected from a few individuals who will be selected as respondents of this study and researcher will try to develop a link between dependent and independent variables of this research. However, comparisons cannot be made systematically as there is a wide variety of demographic features exist in the sample of this research (Learning Higher, 2008). For solving issues regarding data collection sampling techniques have been applied where all the participants can be involved in the sample. All the members of the population are listed according to this method so that they could be contacted easily depending on their selection like all the members of the population take part in a pool where there participation is necessary (Saunders, et al., 2007). Sampling method is cheap and it becomes easy for the researchers to collect facts and figures with the help of this method, moreover, samples are selected considering that these have all those features which exist in the population so that these could represent population properly (Aneshensel, 2002).

6. 6.1

Research design Data collection

Leaders on Nestle; Pakistan like General Managers and others will be targeted to collect data for the purpose of this study and this will be collected with the help of survey questionnaire. As the facts will be directly collected from the participants who belong to the organization, this will ensure their reliability and validity. Due to time and financial limitations sampling technique of non-probability sampling will be applied in this research. In this type of sampling technique all the units of the population does not have equal changes for being selected in the sample. All the selections under this technique are based on some suppositions or criteria which have been specified by the researchers for selection in the sample. Under this technique there are greater chances of exclusion bias and population is depicted through samples to a certain extent (Lindlof, et al., 2002). Researcher will review the literature and research articles of previous researcher in order to get secondary facts and figures for this research. Then researcher will compare these facts with the primary facts and figures collected through survey.

6.2

Sources of Data

Primary information and data for the purpose of this research will be collected from Nestle Pakistan Limited. However, it order access secondary facts, research articles, reports, periodicals, academic books and journals will be observed. 6.3 Data analysis

Once that data will be collected with the help of survey questionnaire, it will be analyzed to observe the impact of leadership on employee motivation and results will be compared with the theories presented in the literature review. 6.4 Gantt chart as Time Schedule and study plan 1-2 Introduction and background Review of Literature Research methodology design Data collection through survey questionnaire & field work Analysis of survey questionnaire, findings, and discussion on findings Drawn Conclusion and give recommendations for further improvements First draft Editing Final draft as well as CD writing etc Times in weeks 3-5 6-7 8-10 11-12

Activities for dissertation

7.

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9. 9.1

Appendices Appendix 1

Hypothesis Ho H1 H2 Leadership has positive impact on employee motivation in Nestle Pk Ltd. Leadership does not have any impact on employee motivation in Nestle Pk Ltd Leadership has negative impact on employee motivation in Nestle Pk Ltd

9.2

Appendix 2

Survey Questionnaire

1.

Leaders' intrinsic process motivation most of related to appealing leadership behaviors

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 2. Leaders' intrinsic process motivation most of related to transformational leadership behaviors

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 3. Idealized leadership, this is the behaviour that arouses followers to feel a powerful identification

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree

15

5. Strongly agree 4. Idealized leadership, this is the behaviour that arouses followers to feel a strong emotions toward the leader

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 5. Inspirational motivation is a leadership behaviour that models high values as an example

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 6. Inspirational motivation is promotes powerful symbols to arouse greater effort and a feeling of belonging

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 7. How motivation systematically encouraged by leadership?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 8. How does reward programs impact on pay complaints, turnover, absenteeism & performance problems?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 16

4. Agree 5. Strongly agree 9. How does reward programs impact on competitiveness, customer relations, financial performance and innovation in Nestle Pakistan Limited?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 10. Do reward programs impact on work environment and collaboration?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 11. What is intangible impact rewards on employee motivation?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 12. How leadership impact on employee engagement?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 13. How do incentives impact on employee engagement?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree

17

4. Agree 5. Strongly agree 14. What is the base-pay-benefits impact on employee engagement?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 15. Does employee involvement strategy positive impact on the design of reward programs?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 16. Does supervisors involvement positively impact on the design of reward programs?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 17. Does employee involvement positively impact on the implementation of reward programs?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 18. Does supervisors involvement positively impact on the implementation of reward programs?

1. Strongly disagree

18

2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 19. Does Employee involvement positively impact on the assessment or evaluation of reward programs?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 20. How does supervisors involvement positively impact on the assessment or evaluation of reward programs?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 21. Do you think that conducting of frequency employee opinion survey positively impact on employees?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 22. How do you rate the effectiveness of employee opinion survey in bringing positive change and action plans in Nestle Pakistan Limited?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 23. Does the leader serves as a role model on environmental issues by sharing his/her environmental values and beliefs, talking about the importance of 19

protecting nature, and taking actions that demonstrate commitment to environmental issues? 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 24. Does the leader inspire employees by presenting a positive image of a sustainable future, talking enthusiastically about what the Nestle and employees must do to create this future, and displaying confidence that environmental goals will be met?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 25. Does the leader encourage innovative thinking about environmental issues by encouraging employees to utilize multiple perspectives and to generate new ideas?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 26. Does the leader assess each employees capacity to address environmental issues and provides individualized training, coaching, and learning opportunities?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 27. What reward strategies are effective in engaging employees?

1. Strongly disagree

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2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 28. What is the role of Nestle Organizations effectiveness in fostering high levels of employee motivation?

1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree

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