1

A RESEARCH PROPOSAL

ON

ANALYSIS OF IMPACT OF TRANSFORMATIONAL LEADERSHIP STYLE ON EMPLOYEES JOB

SATISFICATION IN HONGSHI SHIVAM CEMENT PRIVATE LIMITED

Submitted by: Narinder Pandey

Roll No. : 78341069

Course: Masters in Business Administration

Subject: Organizational Behaviour (MGHRM 522)

Submitted To: Dr. Pushpa Maharjan

Submission Date: 03 March, 2022

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Contents
List of Figures............................................................................................................................................................................. 3
1. INTRODUCTION.................................................................................................................................................................. 4
1.1. BACKGROUND............................................................................................................................................................. 4
1.2. PROBLEM STATEMENT..............................................................................................................................................4
1.3. OBJECTIVES.................................................................................................................................................................. 5
1.4. RATIONALE.................................................................................................................................................................. 5
2. LITERATURE REVIEW.......................................................................................................................................................5
2.1. LEADERSHIP................................................................................................................................................................. 5
2.2. LEADERSHIP STYLES.................................................................................................................................................5
2.3. TRANSFORMATIONAL LEADERSHIP......................................................................................................................6
2.4. COMPONENTS OF TRANSFORMATIONAL LEADERSHIP.....................................................................................6
2.5. RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND JOB SATISFACTION.......................7
3. STUDY DESIGN................................................................................................................................................................... 8
3.1. SAMPLE AND DATA COLLECTION..........................................................................................................................8
3.2. DATA VALIDATION AND RELIABILITY..................................................................................................................9
3.3. CONCEPTUAL FRAMEWORK..................................................................................................................................10
3.4. REGRESSION AND CORRELATIOIN ANALYSIS...................................................................................................10
3.5. METHOD OF ANALYSIS............................................................................................................................................10
3.6. TIMEFRAME DESIGN................................................................................................................................................11
Bibliography............................................................................................................................................................................. 12
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List of Figures
Figure 1: Cronbach's Alpha Values..............................................................................................................................9
Figure 2: Conceptual Framework of Analysis............................................................................................................10
Figure 3: Flowchart for Methods of Analysis.............................................................................................................11
Figure 4: Time Frame for research activities using Gantt chart.................................................................................11
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1. INTRODUCTION
1.1. BACKGROUND
Leadership style is a strategy that an organization can undertake to influence the performance of the employee
positively, and alternatively the performance of the organization. An organization’s ability to influence employee
performance not only lies with the leadership style but also with support for employee performance,
communication and organizational culture (Khoja, 2016). Various studies on different levels were done till now to
show the impact of leadership styles on employees personal performance. The purpose of this study is to analyze,
how the Transformational leadership would impact on job satisfaction of employee. For this study, the highest
cement production plant of Nepal, Hongshi Shivam Cement Pvt. Ltd. located at Sardi, Dumkibas of Nawalparasi
district has been taken. Out of total 396 employees working in the company, 218 employees are directly engaged in
production field while rests of them are in administration and sales department. Due to the time limit of the study
and to avoid hectic process of data manipulation, only 40 employees will be subjected to the study. The main aim
of this research is to carry out the analysis that how transformational leadership style and job satisfaction of
employees are interrelated. As we know, improper leadership style is the root cause of failure of the team and
organization itself. This study eventually will shed lights on how the attributes of transformational leadership styles
are affecting the job satisfaction of employee’s working in this organization.

Keywords: leadership styles, correlation, transformational leadership

1.2. PROBLEM STATEMENT

Impact of leadership style on job satisfaction of employees has been a context of analysis for many theorists.
Various past studies and researches have been done to analyze how employee’s satisfaction with their job affects
their personal performance and organizational productivity. In 2012, Arjun Kumar Shrestha, in his study of
“Leadership Styles, Subordinates’ Satisfaction with the Leader and Perceived Effectiveness” which was done
among 115 employees working in a Nepali telecommunication company found that transformational leadership is
positively related with outcomes and is the stronger predictor of employee’s satisfaction with the leader, leader
effectiveness and work-unit effectiveness than transactional leadership. Hongshi Shivam Cement organization has
implemented transformational leadership style among its employees. The effectiveness of this leadership style
among its subordinates hasn’t been studied yet, however upon addressing following two questions, the contribution
of this leadership style on job satisfaction among employees can be studied properly.

1. What is the impact of transformational leadership style on employee’s job satisfaction?

2. How the different attributes of transformational leadership relates with job satisfaction of employees?
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1.3. OBJECTIVES
 To analyse the impact of transformational leadership style on employees job satisfaction in the context of
Hongshi Shivam Cement Pvt. Ltd.
 To determine relation between different attributes of transformation leadership and employees job
satisfaction using various statistical tools.
1.4. RATIONALE
The degree to which the leaders can influence their subordinates to work together in a team for the achievement of
organisational targets is strongly dependent on their leadership style.
In transformational leadership, leaders work with their subordinates focusing on the enhancement of the
motivation, morale, and job performance of followers by using different techniques like individual consideration of
employee, increasing sense of belongingness of employee to the project /organization and intellectual stimulation.
Different attributes have been shown to affect organizational learning and job satisfaction among employees to
different extent. The main reason behind the purposed study is to determine the impact of transformation type of
leadership style on job satisfaction of employees. Moreover, different attributes of transformational leadership
correlated with job satisfaction of employees will also be studied in this research.
2. LITERATURE REVIEW
2.1. LEADERSHIP
Leadership is a process to influence others, and leadership occurs in groups - involve in achieving common goals
and purpose (Northouse, 2010). Therefore, Northouse (Northouse, 2010, p. 3) defined leadership as a process
whereby an individual influences a group of individuals to achieve a common goal. This is very similar to the
definition given by Robbins (Robbins, 2006) “leadership is the ability to influence a group to achieve the desired
goal set by a leader”. In contrast, more generally leadership is the ability of an individual to utilize the influence of
an organization or situation to achieve challenging goals (Ivancevich, 2008).

2.2. LEADERSHIP STYLES

Dubrin (Dubrin, 2006) defines leadership style as the typical pattern of behavior that a leader uses to influence his
or her employees to achieve organizational goals. Leadership style is the manner in which a leader provides
direction, implements plans and motivates people, and their approach to each of the functions (Jooste, 2009, p. 33).
The leader that guides and supervises production staff in an organization has influence over productivity, morale
and job satisfaction among all workers. A manager or supervisor uses a leadership style that is a product of his
personality. Leadership styles must also work well with the employee’s skill levels and independence (Luanne,
2021). Authoritarian, Laissez-Faire, Democratic, Transactional and Transformational are some of the types of
leadership that have been used in different organization (Luanne, 2021).
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2.3. TRANSFORMATIONAL LEADERSHIP
Transformational leadership is a type of leadership which creates valuable and positive change in the followers
with the end goal of developing followers into leaders. Enacted in its authentic form, transformational leadership
enhances the motivation, morale and performance of followers through a variety of mechanisms. These include
connecting the follower's sense of identity and self to the mission and the collective identity of the organization;
being a role model for followers that inspires them; challenging followers to take greater ownership for their work,
and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that
optimize their performance. (Burns, 1978)

Burns (1978) (Burns, 1978) has defined leadership as a reciprocal process whereby persons with certain motives
and values mobilize people to realize goals with the use of various economic, political and other resources. In
1985, Bernard Bass presented a formal theory for transformational leadership. Since that time, Bass and others
have created models and measurements to assess transformational leadership and its impact on a variety of
performance factors (Bass, 1990 and Avolio, 1995) cited in (Ash, 1997).
Transformational leaders go beyond rewards. They create and communicate a vision, empower employees to
perform beyond expectation (Bass and Avolio, 1994) cited in (Singh, Kavita, 2008). Such leaders provide personal
attention, promote development through individualized consideration, enable new ways of working, encourage
novel enable new ways of working, encourage novel problem solving behaviors in workers through intellectual
stimulation (Mirkamli, 2011).

2.4. COMPONENTS OF TRANSFORMATIONAL LEADERSHIP

Transformational leaders always give extra effort among colleagues and followers rather than simply setting up
easy exchanges or agreements. They behave in methods to accomplish superior outcome by retaining one or extra
of the four core components of transformational leadership. These four components are:

I. Idealized Influence (II): Transformational leaders perform in behavior that permits them stand as role
models for their followers. These leaders influence their followers to do their work more efficiently. There
are two aspects of idealized influence: the leader’s behaviors and the fundamentals that are attributed by
followers to the leader and additional associates.
II. Inspirational Motivation (IM): This attribute concerned with the motivating nature of the transformation
leader.
III. Intellectual Stimulation (IS): Intellectual stimulation is defined as having a leader who encourages
innovation and creativity, as well as critical thinking and problem-solving. Intellectual stimulation involves
arousing followers' thoughts and imagination, as well as stimulating their ability to identify and solve
problems creatively.
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IV. Individualized Consideration (IC): Every member is considered to be an important part of the team. Leader
plays a crucial role in enhancement of every team member’s skills, job satisfaction, and sense of
belongingness on the basis of individual consideration. (Yusof, 2014)

2.5. RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND JOB SATISFACTION

Transformational leaders do extra alongside colleagues [10].
And followers than set up easy exchanges or agreements. Literally, idealized influence leadership and
They behave in methods to accomplish superior aftermath inspirational motivational is a joined solitary factor of
By retaining one or extra of the four core components of charismatic-inspirational leadership. The charismatic-
Transformational leadership. Inspirational factor is comparable to the behaviors
The components of transformational leadership have delineated in charismatic leadership theory [11].
Evolved as refinements have been made in both the
Conceptualization and measurement of transformational Intellectual Stimulation (IS): To be innovative and
Leadership to some extent. Theoretically, leadership is creative by questioning assumptions, reframing
Charismatic and followers pursue to recognize alongside setbacks and approaching aged situations in new
The head and emulate him or2.5 RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND
JOB SATISFACTION
A review of relevant literature reveals that there have been many researches which indicated their own relationship
between transformational leadership and job satisfaction. Some of them are:

 In 2010, Bodla and Nawaz , in their study (Nawaz & Bodla, 2010), which was carried out among the
faculty members of higher education institutes and universities, found a positive relationship between
transformational leadership and job satisfaction.
 In 2010, Gill et al., (Gill, 2010) also found positive relationships between employees perceived
transformational leadership used by managers and employees’ perceived job satisfaction among Indian
restaurant employees A total of 218 restaurant industry employees from the Punjab area of India were
surveyed during this study.
 In 2011, Mohammad et al. (Mohammad, 2011) , in their study which aimed at identifying the relationship
and job satisfaction of registered nurses at Jordanian private hospitals also found a positive result.
Intellectual stimulation dimension was the strongest relationship between job satisfaction and
transformational leadership.
 In 2011, Seyyed Mohammad Mirkamli, Fatemeh Narenji, Thani Farnoosh Alami, conducted a research
(Mirkamli, 2011) among randomly selected 120 employees of an automotive company SAIPA Co.
Research data after collection using the questionnaire were analyzed and results showed that idealized
influence (behavior) as one of the dimensions of transformational leadership was the most important
predictor of organizational learning.
 In 2012, Shurbagi and Zahari (Zahari, 2012) conducted a study of the impact of organizational culture on
the relationship between transformational leadership and job satisfaction in National Oil Corporation of
Libya, found a positive result. The data were collected with the help of MLQ and processed through SSPS.
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 Another researcher, Shibru and Darshan also found a positive relationship between transformational
leadership and subordinate job satisfaction in their studies of leather companies in Ethiopia (Shibru, 2011).
This study included 145 valid participants from ten sampled leather companies who responded to the
survey MLQ questionnaires.
 In 2012, Arjun Kumar Shrestha, in his study of “Leadership Styles, Subordinates’ Satisfaction with the
Leader and Perceived Effectiveness” found that transformational leadership is positively related with
outcomes and is the stronger predictor of employee’s satisfaction with the leader, leader effectiveness and
work-unit effectiveness than transactional leadership. Bass and Avolio’s multifactor leadership
questionnaire (MLQ) 5X was used to measure leadership styles and employee’s satisfaction with the leader.
The sample consisted of 115 employees working in Nepal Telecommunication Company. (Shrestha, 2012)
Based on the above literature review following hypothesis are assumed:
H1 - there is a positive relationship between idealized influence and job satisfaction.
H2 - there is a positive relation between individual motivation and job satisfaction.
H3 - there is a positive relation between individual stimulation and job satisfaction.
H4 - there is a positive relation between individual consideration and job satisfaction.
3. STUDY DESIGN
Quantitative study design model will be carried out for the research purpose i.e. a systemic investigation of relation
between transformational leadership style and personal performance of employees will be studied by using
quantitative study design model. Various investigations of gathered quantifiable data from employees will be done
by performing statistical methods. Statistical tools including regression and correlation analysis between dependent
variable (personal performance) and independent variable (transformational leadership) will be carried out.

3.1. SAMPLE AND DATA COLLECTION

There have been around 400 employees currently working in Hongshi Shivam Cement Company, out of which 40
employees will be selected for this research based on simple random sampling as statistical sample members. To
fulfil our purpose of this research - To analyse the transformational leadership, the primary type of data will be
collected as below:

 Primary data for independent variable transformational leadership will be collected using the 5x
Multifactor Leadership Questionnaire (MLQ), which is one of the most widely used and tested measures of
transformational leadership. The MLQ 5x is used extensively to measure leadership practices, particularly
transformational leadership. The MLQ 5x measures transformational leadership considering these five
subscales: Idealized influence (behavioural), Idealized influence (attributes), Inspirational motivation,
Intellectual stimulation and Individual consideration which in totality indicates the composite
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transformational leadership score. The 20 items represented by these subscales employ a five-point scale
ranging from “rarely or never” (= 0) to “very frequently” (= 4) (Mirkamali, 2011).
 Primary data for dependent variable employee’s job satisfaction will be gathered using Herzberg’s (1959)
5x questionnaire method which comprised five dimensions: nature of work, growth, recognition, success
and responsibility, which consisted of 20 questions. The 20 items represented by these subscales employ a
five-point scale ranging from “rarely or never” (= 0) to “very frequently” (= 4). (Mirkamli, 2011)

Herzberg’s tool had two sections: Motivational factor (satisfactory) and health factors. However, only the
first section will be dealt in this Study.

3.2. DATA VALIDATION AND RELIABILITY

To measure the internal consistency of collected data, a statistical tool known as Cronbach’s alpha (α) coefficient
of reliability will be used. Cronbach’s alpha tests to see if multiple-question Likert scale surveys are reliable. These
questions measure latent variables - hidden or unobservable variables like: a person’s conscientiousness, neurosis
or openness. These are very difficult to measure in real life. Cronbach’s alpha will tell you how closely related a set
of test items are as a group.
The formula for Cronbach’s alpha is:

Where:

 N = the number of items.

 c̄ = average covariance between item-pairs.

 v̄ = average variance.
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Figure 1: Cronbach's Alpha Values

(Stephanie, 2021)

3.3. CONCEPTUAL FRAMEWORK

This section of research will include the relation between the variables under study. The impact of various
moderating variables like age, gender, academics qualification, prior work experience, attitude etc of leader will
not be considered during the study. Dependent variable i.e. employees job satisfaction is being expressed
interrelated to the independent variable transformational leadership which has been further divided into four
subscales.

Transformational leadership

1. Idealized influence Employees Job Satisfaction

2. Inspirational motivation
3. Intellectual stimulation
4. Individual consideration

Independent Variable Dependent Variable

Figure 2: Conceptual Framework of Analysis

3.4. REGRESSION AND CORRELATIOIN ANALYSIS

The regression analysis is widely used statistical tool to determine the degree of relationship between dependent
and independent variable. It can be utilized to assess the strength of the relationship between variables and for
modeling the future relationship between them. Gathered data from the questionnaire will be exported to SSPS
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(Statistical Package for the Social Science) software for the calculation of following regression factors to the
significance level of 0.05:

 Correlation Factor (r): it shows how the dependent and independent variable are correlated with each other. Its
value ranges from -1 to 1.
 Coefficient of Determination (R2): it shows how much variability in dependent variable is explained by the
change in independent variable. Its value ranges from 0 to 1. Generally, it is represented in terms of percentage.
Greater the coefficient of determination, higher the variability in dependent variable explained by the change in
independent variable.

3.5. METHOD OF ANALYSIS

Descriptive statistical data analysis will be used as a method to interpret the gathered quantifiable primary data
from the employees on the basis of response to the transformational leadership questionnaires and job satisfaction
questionnaires. The internal consistency of the collected data will be validated using cronbachs alpha formula. At
last, the regression and correlation analysis will be carried out in order to find the relationship between various
attributes of transformational leadership style and job satisfaction of employees. The use of SSPS (Statistical
Package for the Social Sciences) will be carried out in order to process the gathered data in efficient manner.
Different stages of analysis for this research have been shown in adjacent flow diagram.

Sample and data collection - Quantitative and primary data

analysis method

Data validation and reliability check – cronbach method of

reliability analysis

Relation between dependent and independent variable- regression and

correlation analysis

Figure 3: Flowchart for Methods of Analysis

3.6. TIMEFRAME DESIGN

Different steps to be followed during the research period indicating their approximate duration are plotted in Gantt chart.
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Final project report submission 24-Mar 10

Regression and correaltion analysis 20-Mar 4

Data Validation 17-Mar 3

Data Processing 14-Mar 3

Sample and data collection 09-Mar 5

18-Feb 28-Feb 10-Mar 20-Mar 30-Mar 09-Apr

START DATE Duration

Figure 4: Time Frame for research activities using Gantt chart

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