International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online), INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) Volume

e 4, Issue 4, July-August (2013)

ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 4, July-August (2013), pp. 149-155 IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2013): 6.9071 (Calculated by GISI) www.jifactor.com

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A STUDY ON THE LEADERSHIP BEHAVIOR OF BANK BRANCH MANAGERS (NCR, INDIA) AND ITS RELATIONSHIP TO SUBORDINATES JOB SATISFACTION
Dr. Abhinanda Gautam Associate Professor, IIMT Group of Colleges Meerut, India Ms. Reeta Malla Assistant Professor, IIMT Group of Colleges Meerut, India

ABSTRACT Leadership is one of the most complex and multifaceted phenomenon, which has been baffling the social and behavioral scientists for long. However, one of the widely accepted views of leadership is that it is a process of influencing the behavior of an individual or a group for accomplishment of desired goals in a given situation. Management often attempts to enhance employees job satisfaction and channelize it towards achievement of organizational goals. Researchers have tried to understand the relationship between leadership behavior and job satisfaction. Job satisfaction is usually taken as the individual attitude towards specific aspects of the total work situation. Situational leadership model of Hersey and Blanchard (1974) is used to analyze the leadership behavior of bank managers and its relationship with job satisfaction. Using the LEAD instrument, data was collected from one hundred and forty middle level managers belonging to various departments of the company. This paper is an attempt to understand and find out the impact of leadership behavior on performance and job satisfaction of followers and in Private Sector Banks and Public Sector Banks in India. Key words: - Leadership, Banks, Job, and Job- Satisfaction INTRODUCTION In banking sector, successful leadership endows with higher quality and more efficient services; it offers a sense of cohesiveness, personal development and higher levels of contentment, among the employees and subordinates. And it gives an embracing sense of direction and vision, and association with the environment, a healthy mechanism, for innovation and creativity, and a resource for stimulating, the organizational culture. The business background of Public Sector Banks has made a swift paradigm in the last few years. Alterations in the regulatory framework, mounting customer expectations, changes in the
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013)

employee demography and modifications in technology have emerged as key drivers of transformation for the Public Sector Banks. Recruiting, training and developing the best existing talent and growing the employees to become the future leaders is a vital aspect, which will floor the way for the Indian banking industry to achieve a world class level. Existing ways of leadership development in PSUs need to be aligned and reinforced. A dynamic business environment and competition from the private sector demands that PSU banks adopt cutting edge learning interventions. The growth of private banking sector, along with tailored services, has created a bottle-neck implied competition in this sector. This competition has made the service gap wider as private banks presents competitive services to their internal and external customers. The circumstances has created a push for to the bank policy makers to categorize the underlying grounds and brought them into consideration the job satisfaction issue. It has been further visualized that managers in banking sector play the key role in influencing their services through executing policy that has appeal to their customers. In such situation, job satisfaction of bank employees becomes an important issue that has to be taken care of in order to achieve ultimate goals of the banking sector in India. REVIEW OF LITERATURE Despite much debate and disagreement concerning how leadership should be defined, there is an uneasy agreement among writers and researchers that at its core leadership has something to do with influencing others. So for example, Yukl (2002), an often cited writer in the field of organization studies, concludes that: Most definitions of leadership reflect the assumption that it involves a process whereby intentional influence is exerted by one person over other people to guide, structure, and facilitate activities and relationships in a group or organization. (Yukl, 2002:2) As Alan Bryman (1986) argues however, even this loose notion of a social influence process is not without its problems since it is unclear how one is able to differentiate leadership from other social influence processes in group and organizational contexts. Likewise, how does one distinguish the concept of leadership from such concepts as power and authority, which one could argue also, involve complex social influence processes? Bryman and others have also raised methodological concerns such as how the researcher is able to identify and distinguish groups of followers from those who lead them, and whether leadership necessarily implies the setting and achievement of goals and objectives lay down by the leader. In a recent review of leadership theory, Northouse (2004) identified four common themes in current conceptions of leadership. These were that leadership is a process, that it involves influence, that it occurs in a group context, and that it involves the achievement of goals. Job satisfaction can be defined also as the extent to which a worker is contented with the rewards he or she gets out of his or her job, particularly in terms of intrinsic motivation (Statt, 2004). The term job satisfaction refers to the attitude and feelings people have about their work. Positive and favorable attitudes towards the job indicate job satisfaction. Negative and unfavorable attitudes towards the job indicate job dissatisfaction (Armstrong, 2006). Job satisfaction is a workers sense of achievement and success on the job. It is generally perceived to be directly linked to productivity as well as to personal wellbeing. Job satisfaction implies doing a job one enjoys, doing it well and being rewarded for ones efforts. Job satisfaction further implies enthusiasm and happiness with ones work. Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment (Kaliski, 2007).

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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013)

OBJECTIVES 1. To study the leadership behavior of manager of selected branches of banks under study 2. To study the influence of leadership behavior of branch managers and the job satisfaction of subordinates. HYPOTHESIZES Based on review literature hypothesis were formulated for this study. There will be correlation between leadership style adaptability and effectiveness with subordinate job satisfaction. a) There will be correlation between leadership style adaptability / effectiveness with job area segment of subordinate job satisfaction. b) There will be correlation between leadership style adaptability / effectiveness with management area segment of subordinate job satisfaction c) There will be correlation between leadership style adaptability / effectiveness with personal adjustment segment of subordinate job satisfaction d) There will be correlation between leadership adaptability / effectiveness with social relations area segment of subordinate job satisfaction. RESEARCH METHODOLOGY The methodology of the study is based on the primary as well as secondary data. The study depends mainly on the primary data collected through a well-framed and structured questionnaire to elicit the well-considered opinions of the respondents. The study is confined to a few selected Public and New Private Sector Banks in National Capital Region of India. The researcher has covered Gurgaon, Delhi, Noida, Faridabad, taken 8 Public sector banks and 5 new private sector banks located in NCR, India. VARIABLES FOR THE STUDY In present study, a co relational design has been used. In correctional studies, observations relevant to two or more variables are made for each of the samples of persona of groups. In this study, variables related to leadership styles adaptability / effectiveness is independent, where as variables of job satisfaction are dependent variables. The degree of direction of relationship among those observations is then determined by the use of statistical methods. A. Independent Variable: Categorization: Leadership Style effectiveness

Public and Private Sector Banks

B. Dependent Variables: 1. Job Satisfaction in relation to: a. Job b. Management c. Personal Adjustment d. Social Relations

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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013)

Sample Size and Selection It includes branches situated in the other cities. Research Sample of 81 branch managers and their 210 immediate subordinates was drawn from branches of middle and senior management levels. It may be pointed out that the subordinate levels, the responses from immediate juniors of branch managers who are themselves in the management cadre of the bank were taken for the purpose of the study. RESEARCH TOOLS EMPLOYED To measure the leadership styles effectiveness, Leader Adaptability and Style Inventory/ Leader Effectiveness and Adaptability Description (LASI/LEAD) questionnaire (Hersey Blanchard, 1974) was administered to the branch managers and their 2-3 immediate junior managers. The questionnaire has 12 situations, each with four alternatives. In each of the twelve situations category, respondents were expected to give their responses in the form of a choice of one or four alternatives available. Table 1.1. TOTAL SCORES OF THE SD INVENTORY JOB SATISFACTION CLASSIFICATION SCORES (OUT OF 80) HIGHLY SATISFIED MODERATELY SATISFIED DISSATISFIED 44 AND ABOVE 38-43 37 AND BELOW

Table 1.2. NF NORMS FOR SD EMPLOYEES INVENTORY- AREA WISE Classification Job Area Management Social Relations Personal Area (Out of 20) Adjustment (Out of 20) (Out of 20) 12 and above 9-11 Moderately Satisfied 8 and below Dissatisfied 4 and below 8 and below 8 and below 11 and above 5-10 11 and above 9-10 12 and above 9-11

Highly Satisfied

SCORING PATTERN In the present study, two questionnaires were used and the scoring of these questionnaires also differs. The responses of LASI/ LEAD developed by Hersey and Blanchard (1977), was used for assessing leadership style and effectiveness. It consisted of twelve situations and each situation had four alternative actions out of which the respondent was to choose only one action which he thought to be appropriate.
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 4, July-August (2013)

JOB SATISFACTION Job satisfaction has been operationally defined as a summation of employees feelings in four important areas. Two of these are directly connected with job and management and may be called on the job factors; and other two-personal adjustment and social relations may be called of the job factors (Pestonjee, 1973) Table 1.3 shows the total scores of job satisfaction of the immediate junior managers. Table 1.3. TOTAL SCORES OF JOB SATISFACTION OF SUBORDINATES
CLASSIFICATION HIGHLY SATISFIED (44 AND ABOVE) MODERATELY SATISFIED (38-43) DISSATISFIED (37 AND BELOW) TOTAL PUBLIC SECTOR BANKS 81 (55.10%) 32 (21.77%) 34(23.13%) 147 PRIVATE SECTOR BANKS 25 (39.68%) 14(22.22%) 24(38.10%) 63 TOTAL 106 (50.48%) 46(21.9%) 58(27.62%) 210

Table 1.4. SCORES OF PARAMETERS OF JOB SATISFACTION

CLASSIFICATION HIGHLY SATISFIED (44 AND ABOVE) MODERATELY SATISFIED (38-43) DISSATISFIED (37 AND BELOW) TOTAL HIGHLY SATISFIED (44 AND ABOVE) MODERATELY SATISFIED (38-43) DISSATISFIED (37 AND BELOW) TOTAL HIGHLY SATISFIED (44 AND ABOVE) MODERATELY SATISFIED (38-43) DISSATISFIED (37 AND BELOW) TOTAL HIGHLY SATISFIED (44 AND ABOVE) MODERATELY SATISFIED (38-43) DISSATISFIED (37 AND BELOW) TOTAL PARAMETERS PUBLIC SECTOR BANKS 77 (52.38%) 27 (18.36%) 43(29.25%) 147 83(56.46%) MANAGEMENT AREA SCORE 20 (13.60%) 44(29.93%) 147 PERSONAL ADJUSTMENT AREA SCORE 89(60.54%) 34(23.12%) 24(16.32%) 147 SOCIAL RELATIONS AREA SCORE 74(50.34%) 44(29.93%) 29(19.73%) 147 PRIVATE SECTOR BANKS 22 (34.92%) 13(20.63%) 28(44.44%) 63 17(26.98%) 13(20.63%) 33(52.38%) 63 25 (39.68%) 19(30.15%) 19(30.15%) 63 35(55.5%) 11(17.46%) 17(26.99%) 63 TOTAL 99 (47.14%) 40(19.04%) 71(27.62%) 210 100(47.61%) 33(15.71%) 77(36.66%) 210 114 (54.28%) 53(25.23%) 43(20.47%) 210 109(51.9%) 55(26.19%) 46(21.9%) 210

JOB AREA SCORE

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LIMITATIONS OF THE STUDY 1) This study was limited by respondents' knowledge and honesty about information related to leadership roles / behavior in Human Recourse Management. 2) All respondents were full-time leaders / managers in public and private institutions. No part-time individual completed the Leader Behavior Description 3) The results of the study were based upon perceptions of leaders and their interactive individuals within National capital Region, India. 4) The study cannot account for personal attributes contributing towards leadership. 5) The measurement of leadership behavior / role was based upon perceptions and was a limiting factor. 6) This study was limited by the normal problems related to leaders' behaviors associated with HRM departments and staff. Table 1.5. CO-RELATIONSHIPS BETWEEN LEADER EFFECTIVENESS AND DIFFERENT AREAS OF JOB SATISFACTION: CORRELATING (r) and t TEST VALUES (t) for LEADER EFFECTIVENESS and DIFFERENT AREAS OF JOB SATISFACTION LE (Job Area) BANKS R t LE (Management Area) r T LE (Personal Adjustment) R t LE (Social Relations) r T

Private Sector 0.33 1.56 0.14 0.63 -0.15 -0.68 -0.32 -1.51 Banks n=22; d=20 Public Sector 0.24 1.87 0.53 4.72 -0.20 -1.54 0.13 .99 Banks n=59; d=57 0.26 2.39 0.36 3.43 -0.18 -1.63 -0.04 -0.36 Total n=81; d=79 t values when d=20, 2.09 at 5% and 2.84 at 1% ; t values when d=57, 2.00 at 5% and 2.66 at 1%; t values when d=79, 1.96 at 5% and 2.58 at 1%. LE stands for Leadership Effectiveness CONCLUSION It may be concluded that leader effectiveness and management area being highly and significantly correlated need to be strengthened in order to improve job satisfaction. It is interesting to note that the data r and t relating to private sector banks indicated a positive co-relationship which was not significant but the same data in public sector banks indicated a positive corelationship between the two, highly significant at 5% and 1% level of significance. The correlation between leader effectiveness and personal adjustment area of job satisfaction, and correlation between leader effectiveness and social relation area of job satisfaction was found to be negative but not significant. It may, therefore, be said that leader effectiveness in branches have no significant negative effect on personal adjustment factors like emotional health etc. and social relation factors like social activities of the junior managers in public and private sector banks.

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