LEADERSHIP STYLE AND ITS EFFECTS ON ORGANIZATIONAL COMMITMENT AND JOB SATISFACTION OF EMPLOYEES IN ABBOTT HEALTHCARE PVT.LTD.

By, ANIT DATTA M.PHIL 3RD TERM

PHARMACEUTICAL INDUSTRY IN NEPAL

APPON (Association of Pharmaceutical Producers of Nepal) was established in the year 1990A.D to facilitate, and improve the service of Pharmaceutical companies in coordination with different government bodies, medical fraternity and Pharmaceutical business houses. In Nepal there are more than 300 Pharmaceuticals companies are doing business. Among them 55 are Nepali pharmaceuticals companies, more than 200 Indian pharmaceuticals companies and rest are the companies from third countries.

The National Drug Policy 1995 has directed all the government ministries to include drug industry as a priority sector in Nepal. But even after a decade, domestic industries feel that they are not getting enough attention from the government.

RESEARCH AIM AND OBJECTIVES

The main aim of the study is to recognize the role of managerial leadership and how it helps to make employees satisfaction in the medicine or pharmaceutical business in Nepal. The study must give the essential ideas regarding the role of managerial leadership with motivating employees with the help of the three core objectives.

First is to identify the various needs and interest of the employees that are usually value most to them. Second is to determine if there are any existing substitutes and the level of its effectiveness. And third is to discover the various actions, techniques and method in employees satisfaction.

The study examines the following questions:

1. What is the relationship between managerial quality and leadership behavior and the employees self reported behaviors of extra effort and satisfaction? 2. How the relationship between the managerial quality and leadership behavior that motivate the employees in self reported behaviors of extra effort and satisfaction?

LITERATURE REVIEW

Leadership is indentified by researchers in the manner that fits their perspectives of the leadership and contains the factors of interest to the researcher (Yuki, 2002). Stogdill (1974) reviewed that trait studies of leadership conducted during these years and concluded that having a specific set of traits would not cause an individual to become a leader and leadership traits differ in various organizational situations.

Mintzberg (1983) proposed a Power Theory that examines the internal and external power in an organization. Power in organizations is the control over technical skills, knowledge or resources and administrators must learn to tap into organizational power system of authority, expertise, ideology, and politics.

COMPANY PROFILE

Abbott Healthcare Pvt. Limited global, broad-based health care company devoted to discovering new medicines, new technologies and new ways to manage health. The Abbott is one of the leading MNCs originated from Chicago, USA. It has expanded its services to 132 countries around the world. The Company is represented as No.1 Pharmaceutical Company in India as well as in Nepal. Abbott Healthcare Pvt. Ltd. manufactures, sells and distributes health care products. Abbott Healthcare Pvt. Ltd. operates as a subsidiary of Abbott Laboratories (Chicago, USA). The company has approx 50 NRS Crores annual turnovers in Nepal. The company is only trading in Nepal as per National drug policy, Drug Act and trade policy of Nepal. The company is registered to the DDA (Department of Drug Administration, Nepal) in 1987 A.D.

METHODOLOGY

The methodology employed in the investigation of the relationship between leadership styles and the commitment of employees to Abbott healthcare Pvt. Ltd. is the Multifactor Leadership Questionnaire( MLQ), Organizational Commitment Questionnaire(OCQ) and Job satisfaction Questionnaire(JSQ).

The report includes: Full descriptions of the various leadership styles Scale and item level information at all rater levels A narrative of the leader's style Agreement levels along ratings Expected leadership outcomes Tips for building leadership competency Suggestions for interpreting the report.

SUMMARY OF LEADERSHIP STYLES AS MEASURED BY THE MLQ

Leadership is the ability to influence individuals or groups toward the achievement of goals. Leadership, as a process, shapes the goals of a group or organization, motivates behavior toward the achievement of those goals, and helps define group or organizational culture. Leadership is a dynamic or changing process in the sense that, while influence is always present, the persons exercising that influence may change. If leadership is to be pro-active, it requires vision. This vision is a shared image of a desirable objective, shaped and defined by the leader and the followers. However, vision itself is not enough. In order to get others -- followers -- to move in the direction of the desired goal (the vision), the leader must also be able to communicate that vision and the followers must be motivated to follow. Ideally, the followers will internalize and fulfill this shared vision.

PROFILE OF THE SAMPLES

1. MALE 24 2. FEMALE- 6 3. TOTAL - 30 4. AGE - 24 YRS TO 35 YRS 5. OCCUPATION - MARKETTING AND SALES 6. EXPERIENCE - 2 TO 12 YRS

CORNBACHS ALPHA RELIABILITY COEFFICIENTS SCORES FOR THE MLQ

In this study, Cronbachs Alpha reliability coefficients are calculated to estimate the reliability of the MLQ instruments. The average Cronbachs Alpha reliability coefficients for the MLQ instrument is .902,which is very good. The results obtained in calculations indicate reasonably high Alphas and that the MLQ factors generally are reliable. Therefore, for this research, the MLQ instrument is a reliable measure of transformational leadership, transactional leadership and laissez faire leadership.

CRONBACHS ALPHA RELIABILITY COEFFICIENT SCORES FOR THE OCQ

Cronbachs

alpha coefficients were calculated in order to assess the reliability of the OCQ instrument for this research.

The

Cronbachs alpha reliability coefficients for the OCQ are given calculated gives the average Cronbachs alpha reliability coefficient for the OCQ instrument is 0.901,which is good.

CRONBACHS ALPHA RELIABILITY COEFFICIENT SCORES FOR THE JOB SATISFACTION QUESTIONNAIRE

The results for JSQ indicate reasonably high Alphas and that the Job Satisfaction Questionnaire factors generally are reliable
Therefore, for this research, the job satisfaction instrument is a measure of job satisfaction for the Organization.

RESULTS OF THE CORRELATION ANALYSIS

As mentioned previously, the hypotheses of the study are concerned with establishing a relationship between leadership style and employee commitment. The relationship between leadership style and organizational commitment was investigated using two-tailed Pearson analysis. This provided correlation coefficients which indicated the strength and direction of linear relationship. The p-value indicated the probability of this relationships significance. Devore and Peck (1993) provided a guideline for assessing resultant correlation coefficients as follows: coefficients less than 0.5 represent a weak relationship, coefficients greater than 0.5, but less than 0.8, represent a moderate relationship and coefficients greater than 0.8 represent a strong relationship.

FINDINGS ON COMPARISON OF LEADERSHIP STYLES AND ORGANIZATIONAL COMMITMENTS

The relationships between the different leadership styles, the amount of organizational commitment which a staff member will devote to his or her organization has been highly weighted in the direction of the transformational leader.

The success of failure of an organization depends largely on the quality of its management and leadership people, however, the highly involved, inspirational leader may not be the optimal solution for all circumstances.
Taking stock of the leaders that exists in an organization, and utilizing their skills in positions for which they are suited is the first step in developing the leadership management potential of any organization, and for this purpose, the MLQ is of great

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