ob leadership cabral

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METs Institute Of Computer Science Page 1

METs Institute OfComputer Science

ORGANISATIONAL BEHAVIOUR

PROJECT ON LEADERSHIP

SUBMITTED TO: PROF. CABRAL

A PROJECT ON Orbit Financial Services Pvt. Ltd.

SUBMITTED BY

KSHITIJ SHETH (PG12048)

CLASS: PGDM-eBusiness


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TABLE OF CONTENTS

SR. NO. TOPIC PAGE NO.

1 Acknowledgement

2 Abstract

3

Objective

4 Methodology

5 Company Details

6 Key Products

7 Sample Questionnaire

8 Survey Analysis

9 Data Analysis (Pie Chart)

10 Conclusion

11 Recommendation

12 Bibliography 12


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ACKNOWLEDGEMENT

I would like to convey my sincere thanks and heartfelt gratitude,

towards our dear and respected coordinator Mr. V. V. Naik and Prof. Darryl

Cabral for giving us this opportunity to present this report. Presenting report

will definitely boost our confidence and help us enhance our communication

skills.

We would also like to thank Mr. Bhushan Sheth and Mr. Bharat

Dhruv for giving us their support and able guidance from time to time.


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ABSTRACT

Leadership is the ability to persuade others to work specified goals. It is also viewed as a process

of influencing the subordinates so that they contribute enthusiastically to the attainment of

organizational objectives. It is the leader who clarifies the objectives of the group he is leading

and creates the sustain enthusiasm among them for achieving organizational objectives.

The survey was only for the learning activity rather than doing actual research. The main

objective was to learn that people at all the level of the organization do have some leadership

quality which will develop as and when they grow in their organization.

The Method adopted to do the study was a random questionnaire consisting 16 questions which

was filled by the executives, managers and business head of the organization.

The employees are goal oriented leaders and the company should focus on employees by giving

them chance to participate in giving the inputs about the task handled and suggestions if any

changes can be done. Implementing it or not it totally depends on the leader of the group.


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SUBJECT COVERED

The Managerial Grid is the only leadership theory which talks about the best leadership style.

Moreover the grid though created in the 1960s is said to be contemporary and useful.

Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of leadership styles through

a managerial grid (sometimes called leadership grid). The grid depicted two dimensions of leader

behaviour, concern for people (accommodating peoples needs and giving them priority) on y-

axis and concern for production (keeping tight schedules) on x-axis, with each dimension

ranging from low (1) to high (9), thus creating 81 different positions in which the leaders style

may fall. (See figure 1).


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The five resulting leadership styles are as follows:

1. Impoverished Management (1, 1): Managers with this approach are low on both thedimensions and exercise minimum effort to get the work done from subordinates. The

leader has low concern for employee satisfaction and work deadlines and as a result

disharmony and disorganization prevail within the organization. The leaders are termedineffective wherein their action is merely aimed at preserving job and seniority.

2. Task management (9, 1): Also called dictatorial or perish style. Here leaders are moreconcerned about production and have less concern for people. The style is based on

theory X of McGregor. The employees needs are not taken care of and they are simply ameans to an end. The leader believes that efficiency can result only through proper

organization of work systems and through elimination of people wherever possible. Such

a style can definitely increase the output of organization in short run but due to the strictpolicies and procedures, high labor turnover is inevitable.

3. Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader triesto maintain a balance between goals of company and the needs of people. The leader does

not push the boundaries of achievement resulting in average performance for

organization. Here neither employee nor production needs are fully met.

4. Country Club (1, 9): This is a collegial style characterized by low task and high peopleorientation where the leader gives thoughtful attention to the needs of people thus

providing them with a friendly and comfortable environment. The leader feels that such atreatment with employees will lead to self-motivation and will find people working hard

on their own. However, a low focus on tasks can hamper production and lead to

questionable results.

5. Team Management (9, 9): Characterized by high people and task focus, the style is basedon the theory Y of McGregor and has been termed as most effective style according to

Blake and Mouton. The leader feels that empowerment, commitment, trust, and respectare the key elements in creating a team atmosphere which will automatically result in

high employee satisfaction and production.


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OBJECTIVE

The objective of this study is to find out the leadership quality in the people working in Orbit. It

is about how people posses the leadership quality. The purpose of the study was to find out that

people at different level posses the leadership quality. This survey was developed for a learning

activity rather than research, thus it has not been tested for reliability or validity. However, in

order for it to work in a learning situation, it has to be believable to the learners.

Leadership is activity by which people become aware of ways and to develop new values and

goals which are in greater accord with their current capacities and ultimate potentials.
http://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Leadership


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METHODOLOGY

The sample of study is 10 employees, who are working under functional heads of operations,

marketing, human resources, and finance departments. The subject community has all the

characteristics of the type needed for in-depth study of this topic. The survey questionnaire

consisted of 16 questions and all of them were multiple choice questions. This survey

questionnaire had to be filled by various executives, manager and business heads of Orbit.

Once the sample size was estimated, the survey was conducted in Orbit and then the results were

tabulated and statistical analysis were done.


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Company Profile :

Orbit is an independent, unbiased financial advisory company with a client base of over 3000

investors. Its endeavor is to choose the best of breed products from across more than 900 mutual

fund schemes, life and general insurance schemes, fixed deposit schemes to find the one best

suited for your financial goals. As a policy we give equal importance to all our clients

irrespective of their investment value.

We are today serving all types of clients right from Do it yourself investors who know what

they want, to investors who are looking for a second opinion on their selection, to investors who

want to rely on an Expert Financial Planner who will be their Financial Doctor and will work

with them towards achieving their life time financial goals.


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KEY PRODUCTS

Overview Of Services:

Mutual Fund Investments Asset allocation and Investment proposal Systematic Investment Plans (SIPs) Equity Investments Fixed Deposit & Debt Products Portfolio Review Comprehensive Financial Planning Review of Financial Plans Structured Mutual Fund PMS

Value Added Services:

SMS Email Monthly Bulletin Horizon Online

Orbit has now moved to a fee based advisory services and financial planning based

business model where we strive to offer need based advice to our clients. Following arethe various types of services offered, pickup that is best suited to you.1. Transaction Services

2. Advisory Services

3. Financial Planning Services

4. Direct Equity Services5. Equity PMS Services

1. Transaction Services:If you are not a very frequent investor or you pretty much know where you want to

invest, this would be right package for you. Our transaction services come with complete

pre and post sales services:

Application Handling: (Purchase, Switch and Redemption) i.e. Collection ofapplication forms and submitting to principles.

Filling up of application forms Help to get KYC (Know Your Client) Correspondence with principal companies Change in address Change in bank account Non-receipt of dividend / interest / investment documents, etc Monthly Orbit Bulletin Horizon keeping you informed about latest financial

product offering and market update.

2. Advisory Services:Your financial situation and market is changing continuously, it helps to review your


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financial plans progress. This service is suitable for all investors who have a diversified

portfolio and want the dedicated attention of an expert to work with you to continuouslyreview your asset allocation and reshuffle your portfolio based on buy/sell/hold advice

from our expert team. Our expert team:

Reviews existing investments and portfolio

Advices on selection of investment options for building your portfolio Monitors investments with periodic recommendations on review Reviews Action plans and implementation of recommendation made. Provides consolidated portfolio statement to view all your mutual fund

investments across different fund houses.

3. Financial Planning Services:

The importance of financial planning can not be ignored in these times of volatile market

and economic instability. Nuclear families, increasing cost of living, education andmedical expenses, uncertain retirement benefits, low return on deposits and grater life

expectancy levels just highlight the need to plan your finances even more.Planning is the first step in securing your familys future and creating wealth. We offerunbiased and goal oriented advice to help you create your financial plan. Our experts

prepare, present and implement your financial plan to put you on track for achieving your

life goals like home purchase, childrens education, marriage planning, retirementplanning.

4. Direct Equity Services

These services are related to Shares, Debentures, Gold ETF etc.


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SAMPLE QUESTIONNAIRE USED FOR THE

SURVEY

Below is a list of statements about leadership behavior. Read each one carefully, then, using the

following scale, decide the extent to which it actually applies to you. For best results, answer astruthfully as possible.

Try to relate the answers to your actual recent behavior. There are no right and wrong answers.

0 never 1 sometimes 2 more than half the time 3 occasionally 4 very rarely 5 always

1. I encourage my team to participate when it comes decision making time and I try toimplement their ideas and suggestions.

2. Nothing is more important than accomplishing a goal or task.3. I closely monitor the schedule to ensure a task or project will be completed in time.4. I enjoy coaching people on new tasks and procedures.5. The more challenging a task is, the more I enjoy it.6. I encourage my employees to be creative about their job.7. When seeing a complex task through to completion, I ensure that every detail is

accounted for.

8. I find it easy to carry out several complicated tasks at the same time.9. I enjoy reading articles, books, and journals about training, leadership, and psychology;

and then putting what I have read into action and then implementing the new procedures I

have learned.

10.When correcting mistakes, I do not worry about jeopardizing relationships.11.I manage my time very efficiently.12.Breaking large projects into small manageable tasks is second nature to me.13.Nothing is more important than building a great team.14.I honor other people's boundaries.15.Counseling my employees to improve their performance or behavior is second nature to

me.

16.I enjoy analyzing problems


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STEP 1: Setting the Hypothesis

H0 = Most managers fall in the centre of the grid i.e. 0 = 5.0 (approximation)

H1 = Managers occupy positions away from the centre i.e. 1 = 5.0

TWO TAILED TEST

STEP 2 : Setting up Degrees of Freedom & Level of Significance

Degree of Freedom = n-1 (where n is the sample size)

= 10-1

= 9

Level of significance (L.O.S.) = 5%

Tabulated = 2.262

Step 3 : Setting up the test statistic

T= X- /S/n1/2

Where X- Mean

- Population parameter

S- STD Deviation

n- Sample size

STEP 4 : Calculations


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Sample statistic (xi) Deviation from Mean(x1X)2

6.8 0.01

7.6 0.49

7.1 0.04

6.7 0.01

6.9 0.00

6.3 0.36

6.6 0.09

6.6 0.09

6.6 0.09

7.3 0.16

xi = 69.1 (x1X)2

= 1.79

Mean (X) = xi /n = 69.1 /10 = 6.9

Standard Deviation = [(x1X)2/n-1]

= [ 1.79/10-1]

= 0.1988

CALCUALTION OF TEST STATISTIC

T= X- /S/n1/2

= 6.915.0/ 0.1988/(10)1/2


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= 3.0222

Step 5 : Decision Making

Since Calculated lies in the region of rejection,H0 stands rejected and we conclude that most

managers from the sample have a leadership style that falls away from the centre of the grid

(2)Analysis on basis of managerial grid (See Attached Graphs)

M a t r i x S e c t i o n

The final scores were plotted on the graph below by drawing a horizontal line from the

approximate people score (vertical axis) to the right of the matrix, and drawing a vertical line

from the approximate task score on the horizontal axis to the top of the matrix. Then, draw two

lines from each dot until they intersect. The area of intersection is the leadership dimension that

managers operate out of.


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E x a m p l e

The above sample shows score of 4 in the people section and a score of 6 in the task section. The quad where the two lines

intersect is the leadership style, in this case -- Authoritarian section.

T h e R e s u l t s

This chart will give an idea of the leadership style:

o Impoverished (1,1 to 4,4): weak on both tasks and people skillso Authoritarian (people - 1 to 4 and task - 5 to 9): strong on tasks, weak on people skillso Socialite (people - 5 to 9 and task 1-4): strong on people skills, weak on taskso Team Leadership(6,6 to 9,9): strong on both tasks and and people skillso Middle-of-the-Road (5,5): in the middle of the chart, but with more experience and skills can display good team leadership
http://www.nwlink.com/~donclark/leader/team_leadership.htmlhttp://www.nwlink.com/~donclark/leader/team_leadership.htmlhttp://www.nwlink.com/~donclark/leader/team_leadership.html


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DATA ANAYSIS

ANALYSIS AND CO-RELATION

Two methods were used:

(1) Hypothesis testing (T-test)

(2) Analysis on basis of managerial grid (See Attached Graphs)

(1)ANALYSIS ON BASIS OF T-test

In order to test the contemporary nature of the grid and since the study uses a restricted

but representative sample size a T-test is used

For the purpose of the test the average of concern for people and task has been used to

determine sample mean

Illustration: Concern for people + Concern for task

STEP 1: Setting the Hypothesis

H0 = Most managers fall in the centre of the grid i.e. 0 = 5.0 (approximation)

H1 = Managers occupy positions away from the centre i.e. 1 = 5.0

TWO TAILED TEST

STEP 2 : Setting up Degrees of Freedom & Level of Significance

Degree of Freedom = n-1 (where n is the sample size)

= 10-1

= 9

Level of significance (L.O.S.) = 5%

Tabulated = 2.262

Step 3 : Setting up the test statistic


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T= X- /S/n1/2

Where X- Mean

- Population parameter

S- STD Deviation

n- Sample size

STEP 4 : Calculations

Sample statistic (xi) Deviation from Mean(x1X)2

6.8 0.01

7.6 0.49

7.1 0.04

6.7 0.01

6.9 0.00

6.3 0.36

6.6 0.09

6.6 0.09

6.6 0.09

7.3 0.16

xi = 69.1 (x1X)2

= 1.79


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Mean (X) = xi /n = 69.1 /10 = 6.9

Standard Deviation = [(x1X)2/n-1]

= [ 1.79/10-1]

= 0.1988

CALCUALTION OF TEST STATISTIC

T= X- /S/n1/2

= 6.915.0/ 0.1988/(10)1/2

= 3.0222

Step 5 : Decision Making

Since Calculated lies in the region of rejection,H0 stands rejected and we conclude that most

managers from the sample have a leadership style that falls away from the centre of the grid

(2)Analysis on basis of managerial grid (See Attached Graphs)

M a t r i x S e c t i o n

The final scores were plotted on the graph below by drawing a horizontal line from the

approximate people score (vertical axis) to the right of the matrix, and drawing a vertical line

from the approximate task score on the horizontal axis to the top of the matrix. Then, draw two

lines from each dot until they intersect. The area of intersection is the leadership dimension that

managers operate out of.


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E x a m p l e

The above sample shows score of 4 in the people section and a score of 6 in the task section. The quad where the two lines

intersect is the leadership style, in this case -- Authoritarian section.


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T h e R e s u l t s

This chart will give an idea of the leadership style:

o Impoverished (1,1 to 4,4): weak on both tasks and people skillso Authoritarian (people - 1 to 4 and task - 5 to 9): strong on tasks, weak on people skillso Socialite (people - 5 to 9 and task 1-4): strong on people skills, weak on taskso Team Leadership(6,6 to 9,9): strong on both tasks and and people skillso Middle-of-the-Road (5,5): in the middle of the chart, but with more experience and skills can display good

team leadership

FINDINGS

Manager Department Work

experienc

e

Management

Style

Factors responsible

Mr. Bharat

Dhruv

Financial Services 17 years Middle of the

road

Revamp of IDBI,recruitment of

a younger& dynamic

workforce, more target

orientation, increased levels of

competition.

Mrs. Hiren

Shah

Mutual Fund 6 years Team leadership

style

Increasing competition in

business, places emphasis on

inviting commitment to a goal,

tactfulness & curt

Mr.

Devsingh

Sahani

Brokerage 8 years Middle of the

Road(but more

emphasis on

people)

Team members retained for

longer periods, business flows

in easily, focuses more on

relationship with subs and

peers
http://www.nwlink.com/~donclark/leader/team_leadership.htmlhttp://www.nwlink.com/~donclark/leader/team_leadership.htmlhttp://www.nwlink.com/~donclark/leader/team_leadership.html


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CONCLUSION

Most managers who were part of the sample occupied positions away from the centre ofthe grid as evident from Hypothesis testing

This was confirmed by a managerial grid analysis and by identifying certain personalitytraits, nature of the job & other factors influencing leadership styles

The earlier notion that managers from public sector organizations were impoverished orfollowed a country club style was found to be a misconception as per the study

An interesting finding was that with increase in experience as well growth in thehierarchy of an organization leadership styles tend to vary

Most lower level managers(3-6 years experience) have a task oriented leadership stylewhile middle level managers have a styles ranging from middle of the road to team

management style(7-15 years Experience)


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RECOMMENDATIONS

All the employees must be given a chance to give their inputs in any decision making so that it

will boost their morale. The manager may then choose to use or ignore the information received.

But if the information used by the manager, employee would feel as the positive impact and will

focus more on their work which will lead to motivation and better performance.

Also the employees can be informed about conditions affecting their jobs must encourage

expressing their ideas, making suggestions and taking actions.


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BIBLIOGRAPHY

1. Organizational BehaviorKeith Davis2. Online search from Google3. www.Orbitfin.com4. Ashwathapa K., Human Resource Management (third edition)5. Chhabra. , T. N. Human Resource Management, ninth edition
http://www.orbitfin.com/http://www.orbitfin.com/http://www.orbitfin.com/

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