IMPACT OF MOTIVATIONAL TOOLS TO CREATE GREAT LEADERSHIP IN MULTINATIONAL CORPORATION`S (A study on MNC`s working in India since 2001) (A case

study pro India)

Synopsis of the Thesis to be submitted in fulfillment of the requirement for the Degree of DOCTOR OF PHILOSOPHY In MANAGEMENT

By Varun Kumar Registration No: NO33112865

Under the guidance of Dr. R.K.Sharma

BHAGWANT UNIVERSITY, AJMER, RAJASTHAN, INDIA.

TABLE OF CONTENTS

Sr. No
1 2 3 4 5 6 7 8 9 Introduction

TOPIC

Page No.
2 4 9 10 11 12 13 14 15

Review of Existing Literature Need of the study Objective of the study Hypothesis and Statistical Tools Method of Data Collection Research Methodology Proposed Chapetrisation References and Bibliography

IMPACT OF MOTIVATIONAL TOOLS TO CREATE GREAT LEADERSHIP IN MULTINATIONAL CORPORATION`S. (A study on MNC`s working in India since 2001

Producers and managers are important, but leaders are vital to lasting organizational success (Stephen covey, management consultant) Where the vision is one year; cultivate flower. Where the vision is ten year, cultivate trees. Where the vision is eternity, cultivate people. (Oriental saying)

INTRODUCTION Human beings are the most precious part of the organization. In the organization, effective utilization of the capacity of human resources depends upon management. Management can get the results from the people in the organization two ways: (1) by exercise of authority vested mit, or (2) by winning support of the people. Out of these, the second method is better as it has a lasting effect over the peoples motivation. However, it is only possible when manager becomes their leader in the real sense to influence their behaviors in desire direction. This leadership is an essential ingredient for successful organization. The successful organization has one major attribute thats sets it apart from unsuccessful that is dynamic and effective leadership. Leadership is not merely the personal quality or characteristics acquired by a person but it is much more than thats, i.e. his relationship with his followers and others. The leader organizes the efforts of his follower and directs their activities towards the attainment of organizational objectives. Leadership is, therefore, regarded as the process of influencing the activities of an individual towards goal achievement in a given situation. Hersey and Blanchard in the form of the following equation have explained this process: Lf (I, f, s) That is, leadership is a function of the leader (I), the followers (f) and other situatuational variables (s). The person who exercise this influences is a leader whether he is a manager in a formal organization or an informal leader in an informal group or the head of a family. Thus leadership is the process influencing the behavior, attitudes, activities and efforts of an individual or a group for achieving common goals. Leadership exists in every organization whether formal or informal. It may be anywhere and in every situation: where someone tries to influence the behavior of others, there is a leadership. Simply we can say that leadership is basically a personal quality of character in a man which influences the behavior of others. This quality motivates people to be with the leaders.
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CONCEPT OF MOTIVATIONAL TOOL AND ITS IMPECTS ON LEADERS

After employee are hired and trained, it is important to motivate them to get the desired efforts from them to achieve organizational ol5jective. Motivation process starts with a physiological or psychological deficiency or need that activates behaviors or a drive that is aimed at a goal or incentive Simply, motivation is a process to improve or encourage the employee to willingness to do work. In the first stage, it is the important to identify the need deficiency of employee, if any. Need deficiency centers around extrinsic and intrinsic need. Extrinsic needs are those which are related to material and tangible gains. On the other hand intrinsic need are those which are related to mental satisfaction and are abstract in nature, like increased status, challenges, sense of belongingness etc. Identification of need deficiency is possible through direct supervision of employee behavior and through a survey using structured questionnaire response. In the second phase of motivational process, organization try to identify appropriate strategy to close the perceived need gap of employees. There are many innovative ways to close such need gaps without much improving the budget. Leadership is the process of influencing of others to work willingly and enthusiastically for achieving predetermined goals. It has proved that the targets responses to use of power very along a continuum ranging from resistance to commitment. Any type of compliance tending towards resistance is unwillingly and that tending towards commitment is willingly and enthusiastically. In an organization, managers try to govern leadership skill of people by providing suitable incentives. Incentives are the objects, which are supposed to satisfy need and improve the leadership skill. In management literature, the concept of incentive is taken in botti broad and narrow ways. In the broad sense, incentives include all things, which are used to motivate people to increase their performance. Thus it covers both financial and non-financial rewards. An incentive scheme is a plan or program to motivate individual for good or create a effective leadership skill. By Burak and Smith. Leadership style: 1. Directive: The leader gives subordinate specific order and makes it clear what is expected of them, his focus is on planning, organizing, coordinating and controlling the activities of the subordinates. Supportive: the leader shows friendly behavior to the employee, he shows his concern for their needs and welfare creates pleasant organizational climate. Participative: the leader makes the decision with active participation of the employees, share information with them and seeks suggestions from them. Achievement-oriented: the leader sets challenging goals, seeks improvement of performance by displaying confidence in the abilities of the subordinates.

2. 3. 4.

REVIEW OF EXISTING LITERATURE

FOLLOWING REASERCHER HAVE WORKED ON MOTIVATION: Frederick W. Tayler (1856-1917): father of scientific management (1911) observed that prosperity of management and workforce are interdependent. People are inherently capable of doing hard work but they show such qualities irregularly. Elton w. mayo (1880-1949) his associates through a series of experiment, know as Hawthorne experiment (western electric Co. U.S.A., 1937-32) established that work satisfaction and hence performance is basically not economic. It depends more on working condition and attitudes, communications etc. Abraham Maslow (1908-1970) though his need hierarchy theory established that motivation of people arises from level a hierarchy of needs. Maslows need hierarchy theory divides human needs into five distinct category as under physiological, satisfy, belongingness and love, self esteem and lastly self actualization. Fredrick Herzberg (1957), extending the work of Maslow, he has classified the factors in to two categories (a) motivational factors (b) hygiene or maintenance factors.herzberg maintained six motivational factors and ten hygiene factors. Richard Hackmen & Greg Oldham (1975) developed a job characteristics model on Herzbergs two factor theory, showing a good job design can lead to internal motivation of the employees and contribute to better job performance. Clayton Alderfer (1972) of Yale University developed the ERG theory based on empirical research. The name ERG has been derived from existence, relationship, and growth. Simply ERG, consider only three need hierarchies. David McClelland (1976) through his twenty year study at Harvard university documented difference in need of the people in three important area i.e. (a) achievements need (b) affiliation need (c) power need. Dougles McGregor (1960), he proposed two distinct view and assumption about human behavior, negotiable behavior group was categorized by him under theory x, and positive behavior group people was categorized under theory y. PROCESS THEORY OF MOTVATION: Victor H. Vroom (1964) who formulated an expectancy theory, as an alternative to context models for work motivation. The theory identified relationship among variable, which effect individual behavior in a dynamic environment. Motivational Force (MF) = Expectancy x Instrumentality x Valence James Stacy Adams (1965) contribution is much discussed in the literature on motivation. This theory based on effect of work environment on motivation called equity theory. Laymen w. porter and Edward W. Lawler (1968), based on Vrooms expectancy model, observed that performance leads to satisfaction contrary to our belief that satisfaction leads to performance called performance satisfaction theory Edwin lock (1968), considered two cognitive determinants of behavior, values and goals .emotion and designs represent the form of value and value judgments its called goal setting theory

Theory Z is a name applied to three distinctly different psychological theories. One was developed by Abraham H. Maslow in his paper Theory Z and the other is Dr. William Ouchi's so-called "Japanese Management" style popularized during the Asian economic boom of the 1980s. For Ouchi, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.

Miscellaneous theory of motivation H.A. Murray (1938), discussed about manifest need theory, according this theory Murray does not suggest a hierarchical order to various types of needs. RW. White (1959) competence motive theory relates motivation the desire of employees for mastery over physical and social environments (CORNELL STUDY) S. Schachters affiliation motivation theory! (1959) Relating motivation to the strong need of affiliation. The first study in India, is by Bose (1947) on industrial worker and that has proved the way for other researcher to investigate into the perceived important of job factor to worker. Gangulis study (1964), on first line supervisor (n=44) has ranked incentive adequate income, promotional opportunity, job security, and sympathetic treatment fro superior as the important job factor vis-a-is motivation. Sawalapurkar and others study (1968), on middles level managers (N=30), has ranked nine job factor in the following order of important, job content, opportunity for advancement, job security , base, company , working condition and grievance redress. Raos stuy(1970) on bank manager (n=60), with a view to testing the Herzbergs two factor theory, ha found promotion, company policies and salary on the dissatisfaction scale. Bhattacharya study (1970) , on manager (n20), has shown lack of participation in goal-setting, inadequacy of pay, inadequate ob, authority and lack of opportunity given to help people on the dissatisfaction scales. Sharmas study (1981), on administration in Delhi (=67), has found power motive as the main guiding force for motivation. Sharmas study (1982) , on supervision (n3378), drawing samples from 50,manufecturig organization both in the public sector and private-sector ha obtained score values for different factor that influence motivation. Neelamegham and Vaids study (1968), on motivation of the sales force (n1 16). has found highest need deficiencies with respect to prospect of promotion and recognition for good woric

REVIEW OF EXISTING LITERATURE ON LEADERSHIP

The challenges to achieve a successful leader: Leadership has probably been written about, formally researched and informally discussed more than any other single topic. Despite all the attention given to it, leadership still remains pretty much of black box or unexplainable phenomenon. It is know to exist and to have tremendous influence on human performance, but its inner working and specific dimension can not be precisely spelled out. Many of the research studies, particularly by behavioral scientists, have been carried on to find out the answer of the question: What makes a leader effective? Is his success due to his personality, or his behavior, or the type of follower he has, or the situation in which he works, or a combination of all these? These researchers however could not give a satisfactory answer of the question. Instead, their researches have resulted in various theories or approaches on leadership, the prominent among these being trait theory, behavioral theory, and situational theory, besides, age-old theory of leadership known as great man theory or scientist has started attracting attention recently. Each of these theories has its own contribution, limitation, assumption and framework of analysis. In this section, we shall discuss these theories so that a background can be provided to the study of leadership styles which leader may adopt to influence the behavior of their followers. TRAIT THEORY Trait is defined as relatively enduring quality of an individual. The trait approach seeks to determine what makes a successful leader from the leaders own personal characteristics. From the very beginning, people have emphasized that a particular individual was a successful leader because of his certain qualities or characteristics. Trait approach leadership studies were quite popular between 1930 and 1950. The method of study was to select leaders of eminence and their characteristics were studied. It was the hypothesis that the persons having certain trait could become successful leaders. Various trait theories have suggested these traits in a successful leader: (1) physical features (2) intelligence (3) self- confidence (4) sociability (5) dominance (6) will (7) surgency i.e. talkative (8) alertness etc. The current research of leadership traits suggests that some factor do help differentiate leaders from non-leaders: the most important traits are a high level of personal drive, desire to lead, personal integrity, and self-confidence. Implication of the theory This theory has two very important implications. First, the theory emphasizes that a leader requires some traits and qualities to he effective. Second, many of these qualities may be developed in individual through training and development programmed. BEHAVIOURAL THEORY Behavioral theory of leadership emphasizes that strong leadership is the result of effective role behavior. Leadership is shown by a persons act more than by his trait. Researcher exploring leadership role have come to the conclusion that to operate effectively, groups need someone to perform two major functions; task-related functions and group maintenance function. An
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individual who is able to perform both roles successfully would be an effective leader. Implication of the theory Behavior theory of leadership has some important implications for managers. They can shape their behavior, which appears to be functional and discard the behavior, which appears to be dysfunctional. Researchers who have taken behavioral theory for analyzing leadership behavior (known as leadership style) have prescribed various leadership styles, which may be applied in managing the people in organization. SITUATIONAL THEORY Situational leadership approach was applied, for the first time, in I 920in the armed forces of Germany with the objective to get good general under different situations. The prime attention in situational theory of leadership is given to the situation in which leadership is exercised. Therefore, effectiveness of leadership will be affected by the factor associated with the leader and factor associated with the situation. The various factors affecting leadership effectiveness may broadly be classified into two major categories: leaders behavior and situation factor. The combinations of both these factors determine leadership effectiveness. Implication of the theory Situational theory has wide implication for managers in the sense that it offers clues why a manager who is successful in one situation, fails when there is change in the situation. Therefore, the managers may do better by adopting management practices including leadership. which match with the situational variables.

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Leadership Styles versus Motivation

Leadership style influence level of motivation. However, throughout a lifetime, mans motivation is influenced by changing ambitions and/or leadership style he works under or socializes with. Command-and-control leadership drains off ambition while worker responsibility increases ambition.

Leadership Style versus Motivation

Leadership Style Motivation Type
Self motivated Limited supervision Worker with decision Team motivated making responsibility Creativity Independent Achiever Thrives on change Goal motivated Mixed styles Reward motivated Peer motivated Authority motivated Opportunity Materialism To be like others Follows policy Personality type and efficiency depends on leader's skill and/or the work environment he's created.

Motivation is Based on:

Personality Type
Leader of ideas or people.

Efficiency

High

Recognition motivated Social status

High level of supervision Command-andcontrol Threat, fear motivated Reacts to force

Status quo Dependency Resist change

Low

Self-motivated or visionaries will not accept authority controlled environments. They will find a way to escape if trapped. In a team-motivated environment, dependency types will become inspired and strive to be acceptable with independent thinking coworkers. Associates influence the level of individual motivation.

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NEED OF THE STUDY

It is with above references, Researcher thinks that as of now, Leadership skill as an intangible product. We cannot buy but we can create it self Leadership is a continuous process of behaviors; it is not one-shot activity. To build a large number of motivational tools to improve the no. of successful leader and also improve their skills. To be able to meet high leadership skill standard. Leadership may be seen in term of relationship between a leader and his followers (individual cr groups) which area out of their functioning for common goal. To explain that, leadership is the part of management or simply leadership is different from the management.

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OBJECTIVE OF THE STUDY

1. 2. 3. 4. 5.

To study the challenges & trends in changing scenario of motivational tools for create successful or effective leaders. To study the techniques for making an effective leaders. To analysis the motivational tools of selected M.N.C regarding leadership. To suggest effective motivation model for improving efficiency and productivity of leadership. To analysis the all leadership qualities.

Above objective will be pursued considering the changing patter in changing environment. This study concentrates particularly on. Motivation method of M.N.C.

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HYPOTHESIS: The following hypothesis has been formulated: 1. 2. In the present scenario, the impact of the motivation on leadership skill job will be positive. In the present scenario, provide the all-motivational tools to the executive to build a successful leader.

STATISCAL TOOLS: To rest the given hypothesis and presentation of survey finding. The appropriate statistical techniques will be used and software programmed like SPSS may be used for the purpose.

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PROCEDURE OF COLLECTION OF DATA Source of data would be: 1. Primary data. 2. Secondary sources. Primary: Primary data would be collected from corporate office, zonal office and divisional office and branches. Structured questionnaire and personal interview will constitute primary source of data collection will distributed to the top-level and middle level management of the companies and of course lower levels. Information will also be collected from the experts in the field of human resources management. Secondary: Primary data will be supported by secondary sources like journal and magazines and also included accents of times of India & other journal published by multinational companies. I .e. international bulletin paper presented seminar and conferences; publication etc. data would also be collected from their websites. Pilot survey: before finalizing the questionnaire, one pilot survey of 10 samples will be conducted in order to preview the human resources strategies adopted by the MNC under study.

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RESEARCH METHODOLOGY

RESEARCH DESIGN. This study, being exploratory in nature, will have detailed survey of the samples taken from selected multinational companies, to make the study more meaningful and concrete, research has selected multinational companies and private ltd. Company which have got approval from government. Researcher has selected following MNC to study motivation strategy for making effective leaders. AMERICAN EXPRESS INFO VISION IC ICI PRUDENIAL MAX NEW LIFE SAPIENT CON VERGYS AVIVA TATA TELESER VICES. The above private companies have been selected on the bases on approval from the government to run business in India. PERIOD OF STUDY: post privatization era (2001-2011) Sample Design: For the study, team leaders will be selected from the regional, zonal and head office of the selected companies. Area of study- Delhi and NCR (Gurgaon and Noida) Sample size- 200

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PROPOSED CHAPTERISATION

Chapter 1. Chapter 2. Chapter 3. Chapter 4. Chapter 5. Chapter 6. Chapter 7.

Introduction Review of literature Motivational tools for leadership Leadership qualities: A conceptual framework. Effect of motivational tools. Analysis and finding. Suggested Motivational tools and conclusion.

Appendix and index. Bibliography.

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References:

Abraham H.Maslow, motivation and personality, New York: harper &row, 1954. Dougluas Mcgregor, the human side of enterprise, New York: McGraw-hill, 1967. Peter f. drucker, how to be an employee, psychology today, march, 1968. Fredrick Herzberg, Bernard Mauser and Barbara synderman, the motivation to work, network: john Wiley, 1959. David C.Mccelland, the achievement motive, New York: Appleton-century- croft, 1953. Clayton p. Alderfer, existence, relatedness and growth: human needs in organization setting, New York: free press, 1972. Victor h. vroorn, work and motivation, New York: john Wiley, 1964. J.G hunt and J.W. Kill, the new look in motivation theory for organization research., human organization , summer ,1969. page_104. L.W. Porter and E.E.Lawler. managerial attitude and performance, Homewood. Richard d. Irwin, 1968. J. Stacy Adams toward an understanding of Inequity journal of abnormal and social psychology. November 1963. William g. Ouchi. theory z.: how American busncss can meet the Japanese challenge, reading. mass: Addison-wesley. 1981. Adair J. (1993), Effective Leadership, how to develop leadership skills, London, How to books. Thornely N. and Lees D. (1993), Leadership, the Art of Motivation, London, Random House, Century Busine

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BIBLIOGRAPHY

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Robert Tannenbaum et al, leadership and organization: a behavior science approach, New York: McGrew-hilI, 1961. Gorge R. Terry, principles of management, Homewood 3: Racherd D. Irwin, 1988, (page412) Barnard keys and Thomas case, how to become an influential manager academy of management executive, November 1990. (Page-38 to 51) Abraham Zelezink, manager and leader: are they different? Harvard business review, march-aprail 1992, (page: 126-135) John P. Kotter a fore for change: how leadership differs from management new York: free press 1990 Stephen covey, yin or yang the economic times, aprail2 1, 2000, (page 1-2) Robertj. house, a 1976 theory of charismatic leadership in J.G. Hunt and L.L. Larson (eds), leadership: the cutting age, Carbondale: southern Illinois university press 1977. Bernard m. bass, from transactional leadership to transformational leadership: learning to share the vision organizational dynamics winter I 990(pg 19-31) Eugene e. jenning, the antomy of leadership personal management quarterly, autum 1961. Robertj. house and mery 1. baetz. leadership: some empirical generalization and new research direction in berry m. staw, (ed) research in organizational behavior, Greenwich, coon: jai press, 1979 (pg 348-3 54) A.G. Jago and victor H. vroom. hierarchical level and leadership style organizational behavior and human performance, no.18 1977 (pg 131-145) Robert tannenbaum and warrant h. Schmidt. how to choose a leadership pattern Harvard business review, march-aprail, 1958, {pg 95-101) Daniel katz, productivity, supervision and moral in office situation, Ann Arbor: survey research center, university of Michigan, 1950. Ralph m. stogdil, personal factors associates with leadership: a survey of the literature, journal of psychology, January 1 948,(page 35-71)
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11. 12.

13. 14.

15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25

E.E. Ghiselli, exploration in managerial talents, pacific palisade: good year, 1971. Shelly a. Kirkpatrick and Edwin A. Locke. Leadership: do traits matter? academy of management executive, November 1 990,(pg 38-51) Anderson consulting. competing on human capital . reproduce partly in the economics times June 11, 1 999(pg 1-4) Rogerm, Stogdill and Alvin E. Coons, leader behavior: its description and measurement, Ohio: the Ohio state University, 1957. R.R. Blake and J.S. Mouton: the managerial grid: gulf publishing, 1964. W.J. Reddin, managerial effectiveness, New York: MeGrew-hill, 1970. Fred e. fiedler, a theory of leadership effectiveness, New York: McGrew-hill, 1967. James L. Gibson, John M., Ivancevich and James H. Donnally, organization: behavior, structure, process, Dallas: business publication, 1989,(pg 216) Paul heresy and Kenneth H. Blenchard, management of organizational behavior, Englewood, cliffs: prentice-hill, 1988. Alastaire Roberston, leadership development: no smoke and mirrors the economics times, march 31 ,2000.(pg-3) Dougless McGregor, the human side of enterprise, New York: McGrew-hill, 1967.

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