Professional Qualification in Human Resource Management

BS/FO/140
PROFESSIONAL QUALIFICATION IN HUMAN
RESOURCE MANAGEMENT
RESEARCH PROJECT REPORT
A STUDY ON THE IMPACT OF LEADERSHIP STYLES ON
EMPLOYEE PERFORMANCE AT THE COLOMBO
INTERNATIONAL NAUTICAL AND ENGINEERING COLLEGE
(WITH SPECIAL REFERENCE TO NON-EXECUTIVE GRADE)
THIS RESEARCH PROJECT REPORT IS SUBMITTED AS A
PARTIAL FULFILLMENT OF THE PROFESSIONAL
QUALIFICATION IN HUMAN RESOURCE MANAGEMENT IN THE
CHARTERED INSTITUTE OF PERSONNEL MANAGEMENT SRI
LANKA (INC.)
NAME :
INDEX NUMBER :
RESEARCH PROJECT NUMBER :
DATE OF SUBMISSION:
THE CHARTERED INSTITUTE OF PERSONNEL
MANAGEMENT SRI LANKA (INC.)

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DECLARATION
I certify that this project does not incorporate without acknowledgement, any material
previously submitted for a degree or a diploma in any university, and to the best of my
knowledge and belief, does not contain any material previously published or written by
another person, except where due reference is made to it in the text.
........................

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ACKNOWLEDGEMENT
First of all, I owe my deepest gratitude to my parents for the guidance and encouragement
from the day I started my studies at IPM.
Secondly, I am heartily thankful to my research supervisor, , whose encouragement,
guidance and support from the initial to the final level enabled me to develop an
understanding of the subject. This project would not have been realistic without supervisor’s
able hands, guidance and the motivations provided to me.
I would also like to thank the IPM for providing me with necessary resources to complete
this report.
A special thank of mine goes to my company CINEC Maritime Campus who helped out in
completing the assignment, where they all exchanged their own interesting ideas, thoughts
and made this possible to complete my assignment with all accurate information.
Finally, I would like to thank my family and friends for their immense support and guidance
given to complete this project successfully.
Key Words – Leadership, Leadership styles, Employee performance, Transactional
leadership, Transformational leadership, Situational leadership, Effectiveness, Efficiency.

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ABSTRACT
According to Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and motivates
it towards goals”. The effect of leadership styles on the employee performance are important
concerns of a manager to induce the subordinates to work with confidence and zeal.
The objective of this study was to determine the effect of leadership styles on the employee
performance at CINEC.
This study used a descriptive survey. The population of this study consisted 200 employees at
CINEC and therefore carried out a census survey. The study used both primary and
secondary data. The primary data was collected using structured questionnaires and interview
guide. Data presentation was done using pie charts and frequency tables. The inferential
statistic regression and correlation was done to establish the effect of leadership styles on the
employee performance at CINEC.
The study concluded that the leadership style impacted positively on employee performance
of CINEC. Further it reveals that the Situational leadership is the best fit for the organization.
But on the other hand, the analysis reveals that qualities of transactional and transformational
leadership also needed to achieve the company goal to survive in the ever-changing
competitive business environment. The study further provides recommendation and
suggestions to the organization and future researchers. This study mainly recommends
CINEC to revamp the existing Leadership of the Organization in order to meet high
employee performance with best fit leadership style which is flexible to the emerging volatile
business needs.

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Table of Contents
DECLARATION......................................................................................................................I
ACKNOWLEDGEMENT.......................................................................................................II
ABSTRACT.............................................................................................................................III
CHAPTER I: INTRODUCTION.......................................................................................................1
1.0 Title of the Report......................................................................................................................1
1.1 Introduction to the Chapter......................................................................................................1
1.2 Introduction to the Company...................................................................................................2
1.2.1 Vision...........................................................................................................................................2
1.2.2 Mission.........................................................................................................................................2
1.2.3 Corporate Objectives of the Company.........................................................................................3
1.3 Background of the Study...........................................................................................................3
1.4 Employee Performance.............................................................................................................5
1.4.1 Human Resources Department of the CINEC.............................................................................5
1.5 Problem Statement.....................................................................................................................6
1.6 Significance of the Study...........................................................................................................7
1.7 Problem Justification.................................................................................................................8
1.8 Practical Relevance of the Study..............................................................................................8
1.9 Objectives of the Study............................................................................................................10
1.10 Chapter Summary...................................................................................................................10
CHAPTER II: LITERATURE REVIEW.......................................................................................11
2.0 Introduction to Literature Review.........................................................................................11
2.1 The Concept of the Study........................................................................................................11
2.2 Concept of the Leadership......................................................................................................11
2.3 Leadership Theories................................................................................................................14
2.3.1 Trait Theory...............................................................................................................................14
2.3.2 Behavioral Theory.....................................................................................................................14
2.3.3 The Rise of Contingency Theories............................................................................................15
2.3.4 Charismatic leadership theories.................................................................................................16
2.4 Leadership Styles.....................................................................................................................21
2.5 Employee Performance...........................................................................................................21
2.6 Impact of Leadership Styles on Employee Performance.....................................................22
2.7 Chapter Summary...................................................................................................................23

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CHAPTER III: RESEARCH METHODOLOGIES......................................................................24
3.0 Introduction to Chapter..........................................................................................................24
3.1 Over View of Research............................................................................................................25
3.2 Research Philosophy...............................................................................................................25
3.3 Conceptual Framework..........................................................................................................27
3.4 Hypothesis................................................................................................................................28
3.5 Research Approach.................................................................................................................28
3.6 Methodological Choice............................................................................................................29
3.7 Research Strategy....................................................................................................................30
3.8 Data Collection and Technique..............................................................................................31
3.9 Population and Sample...........................................................................................................31
3.10 Pilot Survey..............................................................................................................................32
3.11 Limitations of the Research Methodology............................................................................33
3.12 Ethical Approaches to Research............................................................................................33
3.13 Chapter Summary...................................................................................................................33
CHAPTER IV: FINDINGS AND ANALYSIS...............................................................................35
4.1 Introduction to Data Analysis................................................................................................35
4.2 Methods of Data Analysis.......................................................................................................35
4.3 Methods of Hypothesis Testing..............................................................................................35
4.4 Presentation of the Findings...................................................................................................36
4.4.1 Demographics Information....................................................................................................36
4.4.2 Gender Distribution...............................................................................................................36
4.4.3 Civil Status Distribution........................................................................................................37
4.4.4 Age Distribution....................................................................................................................37
4.4.5 Distribution Based on Service Years at CINEC....................................................................38
4.4.6 Education Level of the Employees........................................................................................40
4.5 Data Analysis of each Independent Variable........................................................................41
4.5.1 Transactional Leadership......................................................................................................41
4.5.2 Question 01 – Concerns about Performance Level...............................................................41
4.5.3 Question 02 – Concerns about Achievement........................................................................42
4.5.4 Question 03 - Concerns about Target and Time....................................................................43
4.5.5 Transformational Leadership................................................................................................44
4.5.6 Question 06 – Leader helps to grow......................................................................................44

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4.5.7 Question 07 – Clarity of Command......................................................................................45
4.5.8 Question 08 – Helps Employees to be Creative and Innovative...........................................46
4.5.9 Situational Leadership Relationship......................................................................................47
4.5.10 Question 11 – Frequently Analysing the Progress of Employees.........................................47
4.5.11 Question 12 – Leader Helps to Achieve the Goals...............................................................48
4.5.12 Question 13 – Leader Provides Freedom to Decide..............................................................49
4.5.13 Employee Performance.......................................................................................................49
4.5.14 Question 16 – Relationship of Leader and Employee Performance.....................................50
4.5.15 Question 17 – Leader Motivates Employees.........................................................................50
4.5.16 Question 18 – Leader Considers the Final Outcome.............................................................51
4.6 Correlation Analysis................................................................................................................52
4.6.1 Transactional Leadership Vs Employee Performance..........................................................53
4.6.2 Transformational Leadership Vs Employee Performance....................................................53
4.6.3 Situational Leadership Vs Employee Performance...............................................................54
4.7 Hypothesis Testing..................................................................................................................55
4.7.1 Simple Linear Regression Analysis......................................................................................55
4.7.2 Relationship Between Transactional Leadership and Employee Performance.....................55
4.7.3 Relationship Between Transformational Leadership and Employee Performance..............57
4.7.4 Relationship Between Situational Leadership and Employee Performance.........................60
4.8 Analysis of Each Independent Variable Through the Close Ended Questions.................62
4.8.1 Question 04 – Effective Communication of the Leader........................................................62
4.8.2 Question 09 – Leader Helps to Develop Employees.............................................................63
4.8.3 Question 14 – Decision of the Leader Vs Employee Performances.....................................63
4.9 Qualitative Analysis Using the Open-ended Questions........................................................64
4.9.1 Transactional Leadership......................................................................................................65
4.9.2 Transformational Leadership................................................................................................65
4.9.3 Situational Leadership...........................................................................................................66
4.9.4 Employee Performance.........................................................................................................67
4.10 Qualitative Analysis Using the Interview Questions............................................................68
4.10.1 Transactional Leadership......................................................................................................68
4.10.2 Transformational Leadership................................................................................................69
4.10.3 Situational Leadership...........................................................................................................69
4.10.4 Employee Performance.........................................................................................................70

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e
4.11 Research Finding.....................................................................................................................71
4.11.1 Demographic Information.....................................................................................................71
4.11.2 Pearson Correlation Analysis................................................................................................71
4.11.3 Linear Regression Analysis...................................................................................................72
4.11.4 Coefficients Analysis............................................................................................................72
4.12 Chapter Summary...................................................................................................................73
CHAPTER V: CONCLUSION AND RECOMMENDATIONS........................................74
5.0 Introduction to the Chapter...................................................................................................74
5.1 Conclusion................................................................................................................................74
5.2 Recommendations for the organization................................................................................78
5.3 Recommendations for the Future Study...............................................................................80
REFERENCES.......................................................................................................................81
APPENDICES........................................................................................................................84