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PROPOSAL

The impact of leadership on employee

motivation: A case study of Nestle’

Pakistan Limited

South Thames College

University of Cumbria

i



List of Contents

1. Title....................................................................................................................1

2. INTRODUCTION.............................................................................................1

3. RESEARCH PROPOSAL.................................................................................2

3.1 Research questions.............................................................................................2

3.2 Background theory.............................................................................................2

3.3 Brief summary of the organizations...................................................................4

3.4 Context and rationale.........................................................................................4

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

3.5 Aims...................................................................................................................5

3.6 Objectives..........................................................................................................5

4. LITERATURE REVIEW..................................................................................5

5. METHODOLOGIES.........................................................................................7

5.1 Chosen methodology...........................................................................................8

5.2 Justification of chosen methodology....................................................................8

5.3 Limitations of chosen methodology.....................................................................9

6. Research Design.................................................................................................9

6.1 Data collection....................................................................................................96.2 Sources of Data.................................................................................................10

6.3 Data analysis.....................................................................................................10

6.4 Gantt chart as Time Schedule and study plan.....................................................10

7. REFERENCES................................................................................................11

8. BIBLIOGRAPHY............................................................................................13

9. APPENDICES.................................................................................................15

9.1 Appendix 1.......................................................................................................15

9.2 Appendix 2.......................................................................................................15

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.

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3. RESEARCH PROPOSAL

3.1 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

Great Man Theories

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 merelyassociated 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.

Trait Theories

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.

Behaviourist Theories In these theory actual actions of the leaderswas the base of theory rather then the

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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.

Situational Leadership

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.

Contingency Theory

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.

Transactional Theory

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 accomplishtheir goals as well as the objectives of the

organization.

Transformational Theory

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 anddissemination 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.

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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 orientedand 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 themtowards their work.

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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.

4. Literature Review

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.

ii. 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.

iii. 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.

iv. 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.

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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.

ii. 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.

iii. 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.

iv. 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.

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.

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iv. Leaders who manage passively.

v. 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 sothis 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 & Al-

Awamleh (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 likequantitative 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.

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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 varioussources 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 employee’s 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.

8



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 whereall 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. Research design

6.1 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.

9



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

Activities for dissertation Times in weeks1-2 3-5 6-7 8-10 11-12

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 improvementsFirst draft

Editing

Final draft as well as CD writing etc

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9. Appendices

9.1 Appendix 1

Hypothesis

Ho Leadership has positive impact on employee motivation in Nestle Pk Ltd.

H1 Leadership does not have any impact on employee motivation in Nestle Pk Ltd

H2 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


2. Disagree

3. Neither agree nor disagree4. Agree

5. Strongly agree

3. Idealized leadership, this is the behaviour that arouses followers to feel a

powerful identification


2. Disagree

3. Neither agree nor disagree4. Agree

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5. Strongly agree

4. Idealized leadership, this is the behaviour that arouses followers to feel a

strong emotions toward the leader


2. Disagree


4. Agree

5. Strongly agree

5. Inspirational motivation is a leadership behaviour that models high

values as an example


2. Disagree


4. Agree

5. Strongly agree

6. Inspirational motivation is promotes powerful symbols to arouse greater

effort and a feeling of belonging

1. Strongly disagree2. Disagree


4. Agree

5. Strongly agree

7. How motivation systematically encouraged by leadership?


2. Disagree3. Neither agree nor disagree

4. Agree

5. Strongly agree

8. How does reward programs impact on pay complaints, turnover,

absenteeism & performance problems?


2. Disagree3. Neither agree nor disagree

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4. Agree

5. Strongly agree

9. How does reward programs impact on competitiveness, customer

relations, financial performance and innovation in Nestle’ PakistanLimited?


2. Disagree


4. Agree

5. Strongly agree

10. Do reward programs impact on work environment and collaboration?


2. Disagree


4. Agree

5. Strongly agree

11. What is intangible impact rewards on employee motivation?


2. Disagree


4. Agree

5. Strongly agree

12. How leadership impact on employee engagement?


2. Disagree


4. Agree

5. Strongly agree

13. How do incentives impact on employee engagement?


2. Disagree


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4. Agree

5. Strongly agree

14. What is the base-pay-benefits impact on employee engagement?


2. Disagree


4. Agree

5. Strongly agree

15. Does employee involvement strategy positive impact on the design of

reward programs?


2. Disagree


4. Agree

5. Strongly agree

16. Does supervisors’ involvement positively impact on the design of reward

programs?


2. Disagree


4. Agree

5. Strongly agree

17. Does employee involvement positively impact on the implementation of

reward programs?


2. Disagree


4. Agree

5. Strongly agree

18. Does supervisors’ involvement positively impact on the implementation of

reward programs?


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2. Disagree


4. Agree

5. Strongly agree

19. Does Employee involvement positively impact on the assessment or

evaluation of reward programs?


2. Disagree


4. Agree

5. Strongly agree

20. How does supervisors’ involvement positively impact on the assessment or

evaluation of reward programs?


2. Disagree


4. Agree

5. Strongly agree

21. Do you think that conducting of frequency employee opinion survey

positively impact on employees?


2. 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?


2. 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

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protecting nature, and taking actions that demonstrate commitment to

environmental issues?


2. 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 disagree2. 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?


2. Disagree


4. Agree

5. Strongly agree

26. Does the leader assess each employee’s capacity to address environmental

issues and provides individualized training, coaching, and learning

opportunities?


2. Disagree


4. Agree

5. Strongly agree

27. What reward strategies are effective in engaging employees?


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2. Disagree


4. Agree

5. Strongly agree

28. What is the role of Nestle’ Organization’s effectiveness in fostering high

levels of employee motivation?


2. Disagree


4. Agree

5. Strongly agree

revised farwa proposal=24!06!12

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