The Impact of Leadership Style of Managers on the Motivation of Employees of the Hotel Sector in Sri Lanka

K.P.D. Karunanayake
(FGS/PGDHRM/2007/32) Department of Human Resources Management Faculty of Commerce and Management Studies University of Kelaniya

Title

The Impact of Leadership Style of Managers on the Motivation of Employees of the Hotel Sector in Sri Lanka

Background of the Study

Establishment of Tourist Board 1966 Rapid growth in tourist arrivals in 1960s and 70s Highest number recorded in the recent past is 566,202 - in 2004 6th highest foreign exchange earner - 37,506 million in 2009 Direct employment - 52,071 in 2009
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Background of the Study

Success depends on the quality of the service provided to the customer Employee motivation leads to employee job satisfaction Motivated employees take extra effort to satisfy the customer Standard of the hotel is judged by many things friendliness, alertness, attitude, etc Departmental managers knowledge on motivation is a key factor
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Background of the Study

There are four key factors of employee motivation
Leadership style Rewards and recognitions Organizational climate The nature of work

The most direct path and quickest cure Leadership style (Patricia Weber )
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Statement of the Problem

What are the leadership styles exist within the leaders. How to categorize leaders as per the leadership style What are the leadership styles which contribute for motivation of employees? What are the leadership styles which contribute for de-motivation of employees?
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Purpose / Objective of the Study

Impact of leadership styles to the motivation Identify supportive leadership styles and non-supportive leadership styles for motivation To discover the most suitable leadership style as a motivator.

Significance of the Study

Managers apply their own leadership style Not enough professional institutes Lesser management related training Promotion based on seniority Findings a guideline for practitioners in the hotel industry

Conceptual Framework
Autocratic Leadership Style Level of Motivation

Democratic

Laissez-Faire

Independent Variables:

Autocratic Leadership Style Democratic Leadership Style Laissez-Faire Leadership Style Level of Motivation
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Dependent Variable:

Research Questions & Hypothesis

Research Questions
1. What is the relationship between supportive leadership style and motivation 2. What is the relationship between non-supportive leadership style and motivation

Hypothesis H1 There is a positive relationship between the supportive leadership style and Motivation H2 Higher the level of managers supportive leadership style, higher will be the motivation of employees.
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Methodology
Population Data Collection Sample Data Analysis

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Literature Review
Mainly focused on Leadership and Motivation Leadership
Leadership & Management

Leader
one who creates the most effective change in group performance (Cattell, 1951)

Leadership
ability to make the most out of the available resources Ference (2001)
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Leadership Style
Leadership style can be categorized into five main types:
1. Trait Theory What type of person makes a good leader? 2. Behavioral Theories What does a good leader do?
1. Ohio State Studies 2. University of Michigan Studies 3. Kurt Lewins Leadership Framework Autocratic Democratic Laissez-Faire 4. The Managerial Grid 5. Scandinavian Studies
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Leadership Style
3. Contingency Theories How does the situation influence good leadership?
1. 2. 3. 4. 5. 6. Fiedlers Contingency Theory Cognitive Resource Theory Hersey and Blanchards Situational Theory Leader Member Exchange Theory Path Goal theory Leader Participation Theory

4. Power Based Theories What is the source of the leader's power?

1. 2. 3. 4. Reward Expert Referent Coercive
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Leadership Style
5. Other Leadership Theories and Modern Theories
1. 2. 3. 4. Charismatic leadership Transactional Leadership Transformational Leadership Visionary Leader

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Motivation
The processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal (Robbins 2003) Process of Motivation
Establish Goals Need Attain Goal Take Action

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Motivation
Two main broad categories of motivation
intrinsic motivation extrinsic motivation

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Motivation
1. Instrumentality Theory based on the rewards and punishments 2. Content Theories goal achievement behavior
1. 2. Maslow's hierarchy of needs theory Alderfer's ERG theory

3. Process Theories focuses on psychological process

1. 2. 3. expectations (expectancy theory) goal achievement (goal theory) feelings about equity (equity theory)
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Motivation
4. Other Theories
1. 2. 3. 4. Herzbergs Motivation - Hygiene Theory McGregors Theory X & Y McClellands Theory of Needs Reinforcement Theory

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Operational Framework

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Methodology
Applied research - it concentrates a specific problem in the organization The research based - hypothesis testing
also called hypotheticodeductive method

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Data Presentation and Analysis

Questionnaire - Likert scale Response Strongly agree Agree Neutral Disagree Strongly Disagree Marks 5 4 3 2 1

Data analysis Excel for personal data SPSS for other questions
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Summarized data for personal questions

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Correlation Analysis
Pearson Correlation Coefficient was calculated in order to find out relationship between two variables of the sample

Leadership style
Autocratic Democratic Laissez-Faire Leadership

Motivation
-.375 .681 .319
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Coefficient of Determination
Explains how much of the variability of a factor can be caused or explained by its relationship to another factor (R2)

Leadership style
Autocratic Democratic Laissez-Faire Leadership All three leadership styles

Motivation
.140 .464 .102 .488
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Conclusion
Independent variables (Autocratic Leadership Style, Democratic Leadership Style and Laissez-Faire Leadership Style) significantly correlate with the Motivation Most significant positive effect of 0.681 Democratic Leadership style Autocratic Leadership Style has a negative correlation with -0.375 Democratic Leadership style - supportive leadership style Autocratic Leadership Style - contribute for de-motivation

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Conclusion
H1 - There is a positive relationship between the supportive leadership style and Motivation H2 - Higher the level of managers supportive leadership style, higher will be the motivation of employees. R square value (0.488) for all the three leadership styles together it shows that leadership style indicates 49% variation explained by regression Finding of this research further proves the findings of Lewin, Llippit and White's (1939) experiments
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Recommendations
Democratic leadership style highly contribute for the motivation - improve Autocratic leadership style demotivate employees reduce For further research incorporate
rewards and recognition organizational climate the nature of work
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