Impacts of Leadership on Employee Engagement and Wellbeing

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Impact of Leadership on the Engagement and Wellbeing of Employees: A Case Study of
Industrial Credit and Investment Corporation of India (ICICI) Bank
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EXECUTIVE SUMMARY
Studies have found that employee engagement has a substantial effect on job satisfaction and
workers’ devotion to the institution. This survey purposes to examine the impacts of
leadership on workers’ engagement using of a multinational ICICI bank in India as a case
study. The specific questions that the research purposed to answer include: What influence
does leadership have on the worker’s beliefs regarding the company and their job settings?
Does leadership impact the worker’s feelings regarding the company and work engagement?
What is the impact of leadership on the worker’s organizational citizenship Behaviour
(OCB)?
The research adopted a descriptive research design with the population of target comprising
of 169 employees at the ICICI bank branch located in Vinukonda, which is in Guntur
District. Five levels of strata were established namely team leaders, supervisors, credit
officers, bank tellers and relationship officers with each stratum being made up of 30% of the
potential population. 51 participants were chosen and a questionnaire administered to them
for gathering data, with the help of stratified random sampling, Descriptive and inferential
methods of data analysis were used with the help of SPSS software. The significance of each
variable in relation to the study variables was determined using a multivariate regression
model.
The findings of the survey show that leadership affects the beliefs of the workers about the
company and the work condition to a great level (mean score of 3.68). Leadership also
impacts the workers’ feelings regarding the company and work engagement at a greater level
(mean score of 3.70). Additionally, leadership impacts organizational citizenship behaviour at

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a greater degree with an average score of 4.03. Therefore, the survey concludes that
leadership significantly affects workers’ engagement and wellbeing.
The research recommends the need for developing an entrenched training programme to
positively influence employees’ beliefs on the institution and work conditions. The
management should also adopt the most appropriate leadership style such as transformational
and authentic leadership styles.

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Table of Contents
EXECUTIVE SUMMARY...................................................................................................................2
LIST OF FIGURES...............................................................................................................................6
LIST OF TABLES................................................................................................................................7
1.0 INTRODUCTION...........................................................................................................................8
1.1 Background Information..............................................................................................................8
1.2 Problem Space.............................................................................................................................8
1.3 Study Aim....................................................................................................................................9
1.4 Research Questions......................................................................................................................9
1.5 Industry Partner Overview...........................................................................................................9
1.6 Implication of the Research.......................................................................................................10
1.7 Structure of Report....................................................................................................................10
2.0 LITERATURE REVIEW..............................................................................................................11
2.1 Introduction...............................................................................................................................11
2.2 The Impacts of Leadership on the Worker’s beliefs regarding the company and work settings.11
2.2.1 Psychological Situations Associated to Workers’ Engagement and Wellbeing..................11
2.3 The impact of Leadership on the Worker’s Feelings regarding the Company and Work
Engagement.....................................................................................................................................13
2.3.1 Organizational Commitment...............................................................................................13
2.3.2 Organizational Justice.........................................................................................................13
2.3.3 Organizational Settings.......................................................................................................14
2.3.4 Leadership Practices...........................................................................................................15
2.4 The Impacts of Leadership on the Worker’s OCB.....................................................................15
2.4.1 Organizational Citizenship Behavior (OCB).......................................................................15
3.0 METHODS....................................................................................................................................18
3.1 Introduction...............................................................................................................................18
3.2 Research Design........................................................................................................................18
3.3 Sampling Design and Population...............................................................................................18
3.3.1 Population...........................................................................................................................18
3.3.2 Sampling Design.................................................................................................................18
3.4 Methods of Data Collection.......................................................................................................20
3.5 Procedure of Research...............................................................................................................20
3.6 Methods of Data Analysis..........................................................................................................20

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4.0 RESEARCH FINDINGS...............................................................................................................22
4.1 Introduction...............................................................................................................................22
4.1.1 Rate of Response................................................................................................................22
4.2 Demographic Characteristics.....................................................................................................22
4.2.1 Gender of Participants........................................................................................................22
4.2.2 Period Employed in the Company......................................................................................23
4.2.3 Departmental units..............................................................................................................23
4.2.4 Age of Participants.............................................................................................................24
4.3 Worker’s Beliefs regarding the Company and their Work Environment...................................25
4.4 Worker’s Feelings regarding the Company and Work Engagement..........................................26
4.5 Worker’s OCB...........................................................................................................................26
4.6 Regression Analysis of the Outcomes........................................................................................27
5.0 DISCUSSION...............................................................................................................................31
5.1 Introduction...............................................................................................................................31
5.2 DISCUSSION...............................................................................................................................31
5.2.1 Workers Beliefs regarding the Company and their Work environment..............................31
5.2.2 Workers Feelings regarding the Company and Work Obligation........................................32
5.2.3 Workers’ Organizational Citizenship Behaviour................................................................34
5.3 RECOMMENDATIONS...............................................................................................................35
5.3 LIMITATIONS.............................................................................................................................37
5.4 CONCLUSIONS...........................................................................................................................38
References...........................................................................................................................................41
Appendices..........................................................................................................................................48
Appendix 1: Questionnaire..............................................................................................................48

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LIST OF FIGURES
Figure 2.1: Conceptual Framework..........................................................................................18
Figure 4.2: Period Employed in the Company........................................................................24
Departmental units...................................................................................................................25
Figure 4.4: Age of Participants................................................................................................26

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LIST OF TABLES
Table 3.1 Sample Distribution.................................................................................................20
Table 4.1 Rate of Response.....................................................................................................23
Table 4.2: Gender of participants.............................................................................................23
Table 4.3 Staff Beliefs regarding the Company and their Work Environment........................26
Table 4.4: Staff feelings regarding the company and work engagement................................27
Table 4.5 Worker’s Organizational Citizenship Behaviour.....................................................28
Table 4.6 Model Summary.......................................................................................................28
Table 4.8: ANOVA..................................................................................................................29
Table 4.9: Coefficients Outcomes............................................................................................30

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1.0 INTRODUCTION
1.1 Background Information
It is a consensus across organizations that the current generation requires more competence
and profitability than any other generation in the past, even as enterprises endeavour to
improve their output and competitiveness (Kompaso and Sridevi, 2010). As a result of
globalization, organizations are modifying their administrative structures so as to compete in
the global economy (Batista-Taran et al., 2009). A highly engaged personnel is an indication
of a progressive enterprise irrespective of its size, physical location and financial
performance (Cataldo, 2011). The benefits of engagement are to the organization and to the
employee in terms of improved zeal, physical health, and joy (Kouzes and Posner, 2016).
Studies have also indicated that employee engagement and wellbeing are directly related to
profitability, customer satisfaction and loyalty, all of which are critical in the banking
industry (Andrew and Sofian, 2012).
Employee engagement is an issue that is of great emphasis for the leadership in business
because they perceive it as a significant aspect impacting the efficiency, invention, and
competitiveness of the organization (Karanges et al., 2015). Additionally, it is the
management that establishes the link between the organization and its workforce,
consequently the association between the leader and the personnel is often the “deal breaker”
with regard to engagement and wellbeing of the staff (Swarnalatha and Prasanna, 2013).
1.2 Problem Space
Workers’ engagement is a comparatively a new are of study but it research has demonstrated
its substantial influence on employee engagement and wellbeing (Rasheed, Khan, and
Ramzan, 2013). Breevaart et al. (2014) indicated that successful leadership was a determinant
in workforce engagement and welfare. Studies have examined employee engagement from