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Leadership style, Job satisfaction and
Employee Job performance of Managerial and
Non Managerial Employees
This is the final viva presentation of the research paper submitted by Viraj
Goonewardena for the Master of Business Administration (MBA) of the Rajarata
University of Sri Lanka
Some Data & Figures removed for ethical reasons.
Leadership style, Job satisfaction and
Employee Job performance of Managerial
and Non Managerial Employees
By: Viraj Goonewardena
- Case Study of Sumithra Group of Companies -
Introduction
Apparel Sector
Textile / apparel sector is one of the highest income generating industries in
Sri Lanka. According to the Central Bank of Sri Lanka (CBSL) report 2015, the
export income generated by the textile industry is over USD 4.8 billion
and provides employment to over 15% of the country’s labor force.
Performance of apparel manufacturing sector is very important for Sri
Lankan economy.
About Sumithra Group
• Leading apparel manufacturer established in 1984
• BOI approved company with an annual export value of over USD 30Mn
• Sumithra Group has,
• Around 4000 employees
• 4 Manufacturing plants and a head office
The Background
Year Nittabuwa Polgahawela Hasalaka Weerakatiya
2013 DataRemoved DataRemoved DataRemoved DataRemoved
2014 DataRemoved DataRemoved DataRemoved DataRemoved
2015 DataRemoved DataRemoved DataRemoved DataRemoved
2016 DataRemoved DataRemoved DataRemoved DataRemoved
Plan to performance efficiency
It is not possible to meet 100% efficiency in the apparel sector; therefore the industry excepted
efficiency level is 70% or above for medium scale apparel companies.
Research Gap
• Very little research were found on how the leadership style and job
satisfaction effect the job performance in Sri Lanka, especially in the
medium scale apparel sector
• No research has been done in Sumithra Group
The Problem Statement
• What is the relationship of employee job performance from
leadership style and job satisfaction in the Sumithra Group of
Companies?
Research Questions
1. Is there a significant relationship between leadership style and employee job performance of the
Sumithra Group of Companies?
2. Is there a significant relationship between job satisfaction and employee job performance of the
Sumithra Group of Companies?
3. What leadership style has significant relationship with employee job performance of Sumithra Group of
companies?
4. What dimension of Job satisfaction has significant relationship with employee Job performance of
Sumithra Group of Companies?
5. Is the leadership style has a higher impact than job satisfaction on employee job performance of
Sumithra group of companies?
Objectives of the Study
1. To examine the probable significant relationship between leadership style and the
employee job performance of the Sumithra Group of Companies
2. To examine the probable significant relationship between job satisfaction and the
employee job performance of the Sumithra Group of Companies
3. To examine which leadership style has significant relationship with employee job
performance of Sumithra Group of companies.
4. To examine which dimension of job satisfaction has significant relationship with
employee Job performance of Sumithra Group of Companies.
5. To study whether the leadership style has a higher impact on employee job
performance than the job satisfaction
Research Hypotheses
• H1: There is a significant relationship between leadership style and
employee job performance in the Sumithra Group of Sri Lanka
• H1(a): There is a significant relationship between autocratic leadership style and
the employee job performance of the Sumithra Group of Companies
• H1(b): There is a significant relationship between democratic leadership style
and the employee job performance of the Sumithra Group of Companies
• H1(c): There is a significant relationship between laissez-faire leadership style
and the employee job performance of the Sumithra Group of Companies
Research Hypotheses
• H2: There is a significant relationship between job satisfaction and
employee job Performance in the Sumithra Group of Sri Lanka
• H2(a): There is a significant relationship between work itself and the
employee job performance of the Sumithra Group of Companies
• H2(b): There is a significant relationship between pay and the employee
job performance of the Sumithra Group of Companies
• H2(c): There is a significant relationship between supervision and the
employee job performance of the Sumithra Group of Companies
Research Hypotheses
• H2(d): There is a significant relationship between co-workers and the
employee job performance of the Sumithra Group of Companies
• H2(e): There is a significant relationship between working conditions and
the employee job performance of the Sumithra Group of Companies
• H3: Leadership style has a higher impact on the job performance
than the job satisfaction
Significance
• Findings of these results will directly help the management of the Sumithra Group to take
strategic decision
• Finding will help management to decide the most suitable management style for the
organization
• Improve the job satisfaction of employees, specially by focusing on the areas that employees
satisfaction is lacking behind.
• It will help other researchers to conduct further studies in this area in the apparel sector
who is the highest foreign income generator for the county
• Outcome of this research will help the policy makers to develop their strategies for the
apparel industry in a different manner
Scope of the Research
• This research focused on the employees of the four manufacturing
plants of the Sumithra Group and the Head office in Wattala
• This research was conducted in a live natural environment and will give
the employees to freely answer
• Considered worker level staff, supervisors and managers were taken
for the sample
Limitations
• This research was a perceptual research where the 100% accurate data from HR
department and work-study department will not be taken in to consideration
• Due to time limitation this research is limited to Work itself, Pay, Supervision, Co-
workers and the Working Conditions as dimensions of the Job Satisfaction and three
leadership styles were taken
• This study focus only on the impact made by the Leadership Style and Job Satisfaction
on the Job Performance. Other intervening variables are not considered and this study
does not consider the relationship between the Leadership style on Job satisfaction
Conceptual Framework
Conceptualization
Variable /
Dimension
Definition Source
Leadership Style “Leadership as the process of influencing and supporting others to
work enthusiastically towards achieving the objectives”
Armstrong
(2002)
Autocratic “autocratic style is embedded in leaders who have full
organizational power and authority for decision making without
sharing it with their subordinates”
Kavanaugh and
Ninemeier (201)
Democratic “democratic style implies that leaders share their authority of
decision making with employees and delegate”
Kavanaugh and
Ninemeier (2001)
Laissez-Faire “where leaders give their employees most of the authority over
decision making”
Kavanaugh and
Ninemeier (2001)
Conceptualization
Job Satisfaction ““a pleasurable or positive emotional state resulting from one’s job or job
experiences”
Locke (1976)
Working-Condition “employees prefer physical surroundings that are secure, clean, comfortable and with
a minimum standard of distraction”
Robbins (2005)
Responsibility Granting additional authority to employees in their activity, giving them enough job
freedom and power so that they feel they ‘own’ the results are ways of giving them
responsibility
Robbins (2005)
Work it-self employees believe that the task they are doing is important, meaningful and how
their work is essential to the overall processes
Robbins (2005)
Recognition Timely, informal or formal acknowledgementof a persons or teams’ behavior, effort
or business results that support the organization’s goals and values
Harrison (2011)
Pay The payment or compensation received for the service rendered or employment www.investopedia.com/
Performance “The effectiveness of employees’ behavior that effects to achieve the
organizational objectives”
Motowidlo (2003)
Operationalization
• Job performance
• Source: Cox & Nkomo (1986), same questioner used by Dr. Dinoka
Perera (USJP), with her email approval
• Number of Questions:
Performance Traits: 6 questions
Task: 6 question
Behavior: 5 questions
Operationalization
• Job Satisfaction
• Source: Weiss,etal.(1967), same questioner used by Dr. Dinoka Perera
(USJP), with her email approval
• Number of Questions:
Work itself: 5 questions
Pay: 5 question
Supervision: 4 questions
Co-workers: 5 question
Working Condition: 4 questions
Operationalization
• Leadership Style
• Source: California Department of Public Health
• Number of Questions:
Autocratic Leadership style: 6 questions
Democratic Leadership style: 5 question
laissez-faire leadership Style: 6 questions
Questionnaire
• Self administrated, 5 point Likert scale with four sections
• •Section A collected the respondent’s demographic data which consists of gender, age,
ethnicity, marital status, highest education background, monthly income level and the
duration that respondent has worked in Sumithra.
• •Section B contained questions capture the leadership style shown by their direct
supervisors and/or Manager
• •Section C contained questions to captures the dimension of the job satisfaction
• •Section D contained questions with regard to their performance covering the areas namely
Traits, behavior and results
Criteria for Hypothesis Accept / Reject
Hypotheses Accept Criteria Reject Criteria
H1: There is a significant relationship between leadership style and
employee job performance in the Sumithra Group of Sri Lanka
If Correlation Value
> = to +0.1 or <= to -0.1
If Correlation Value between
-0.09 to +0.09
H1(a): There is a significant relationship between autocratic leadership
style and the employee job performance of the Sumithra Group
If Correlation Value
> = to +0.1 or <= to -0.1
If Correlation Value between
-0.09 to +0.09
H1(b): There is a significant relationship between democratic leadership
style and the employee job performance of the Sumithra Group
If Correlation Value
> = to +0.1 or <= to -0.1
If Correlation Value between
-0.09 to +0.09
H1(c): There is a significant relationship between laissez-faire leadership
style and the employee job performance of the Sumithra Group
If Correlation Value
> = to +0.1 or <= to -0.1
If Correlation Value between
-0.09 to +0.09
Criteria for Hypothesis Accept / Reject
H2: There is a significant relationship between
job satisfaction and employee job Performance
in the Sumithra Group of Sri Lanka
If Correlation Value
> = +0.1 or <= to -0.1
If Correlation Value
between
-0.09 to +0.09
H2(a): There is a significant relationship between
work itself and the employee job performance of
the Sumithra Group of Companies
If Correlation Value
> = +0.1 or <= to -0.1
If Correlation Value
between
-0.09 to +0.09
H2(b): There is a significant relationship between
pay and the employee job performance of the
Sumithra Group of Companies
If Correlation Value
> = +0.1 or <= to -0.1
If Correlation Value
between
-0.09 to +0.09
H2(c): There is a significant relationship between
supervision and the employee job performance of
the Sumithra Group of Companies
If Correlation Value
> = +0.1 or <= to -0.1
If Correlation Value
between
-0.09 to +0.09
Criteria for Hypothesis Accept / Reject
H2(d): There is a significant relationship between
co-workers and the employee job performance of
the Sumithra Group of Companies
If Correlation Value
> = +0.1 or <= to -0.1
If Correlation Value
between
-0.09 to +0.09
H2(e): There is a significant relationship between
working conditions and the employee job
performance of the Sumithra Group of Companies
If Correlation Value
> = +0.1 or <= to -0.1
If Correlation Value
between
-0.09 to +0.09
H3: Leadership style has a higher impact on the
job performance than the job satisfaction
If the “t” value of the
leadership style is higher than
“t” value of job satisfaction
If the “t” value of the job
satisfaction is higher than
“t” value of leadership
style
Questionnaire Administration
Number of active employees in the each location was taken from the MIS, selected
employees covering 10% or more from each department
Researcher visited the location personally and met the employees taken for the sample
individually or in groups
Explained about the purpose & how the confidentiality will be maintained
A letter was given stating this is only for academic purpose
At the end of the day visited each department personally and the respondents were ask to
put their answered questioner to the sealed box
Safely transported to the researcher’s residence in Colombo, kept under lock and key until
the data entry part is done
Sampling –Nittabuwa & Polgahawela
SumithraNittabuwa
SumithraPolgahawela
Dept. Name No. of Emp. Sample %
Training Line 26 3 12%
Packing 13 2 15%
Transport 4 1 25%
Production 496 50 10%
Stores 18 3 17%
Building Maintenance 25 4 16%
Work Study 7 3 43%
Cutting 53 6 11%
Planning & Coordination 7 1 14%
Central Processing 35 4 11%
Management 13 2 15%
HR & Administration 7 1 14%
Machinery Maintenance 10 1 10%
Garment Engineering 7 1 14%
Quality Assurance 9 1 11%
Finishing 113 11 10%
Jumpers 17 2 12%
Health & Safety 2 1 50%
Ironing 31 3 10%
Total 893 100 11%
Dept. Name No. of Emp Sample %
Training Line 5 2 40%
Packing 76 8 11%
Transport 6 2 33%
Quality Assuarence 70 8 11%
Production 525 55 10%
Stores 18 2 11%
Building Maintenance 21 2 10%
Work Study 9 2 22%
Machinery Maintenance 9 1 11%
Cutting 53 6 11%
Canteen 5 1 20%
Planning & Coordination 3 3 100%
Embroider Plant 63 7 11%
Management 12 2 17%
HR & Administration 5 2 40%
Garment Engineering 11 2 18%
Finishing 47 5 11%
Jumpers 30 4 13%
IT 2 1 50%
Health & Safety 3 2 67%
Ironing 23 3 13%
Sampling –Weerakatiya & Hasalaka
SumithraWeerakatiya
SumithraHasalaka
Dept. Name No. of Emp. Sample %
Packing 22 3 14%
Transport 8 1 13%
Production 320 50 16%
Stores 18 3 17%
Building Maintenance 18 3 17%
Work Study 5 1 20%
Cutting 50 8 16%
Canteen 2 1 50%
Planning & Coordination 5 1 20%
Management 8 2 25%
HR & Administration 4 1 25%
Machinery Maintenance 8 2 25%
Garment Engineering 4 1 25%
Quality Assurance 4 1 25%
Finishing 110 13 12%
Jumpers 15 3 20%
Health & Safety 2 1 50%
Ironing 35 5 14%
Total 638 100 16%
Dept. Name No. of Emp Sample %
Building Maintenance 8 2 25%
Canteen 6 1 17%
Central Processing 52 5 10%
Cutting 70 8 11%
Finishing 151 16 11%
Garment Engineering 11 2 18%
Health & Safety 3 1 33%
HR & Administration 7 1 14%
IT Department 2 2 100%
Ironing 24 3 13%
Jumpers 24 3 13%
Machinery Maintenance 11 2 18%
Management 11 2 18%
Packing 107 11 10%
Planning & Coordination 7 2 29%
Quality Assurance 16 2 13%
Recorders 6 1 17%
Stores 19 3 16%
Production 680 75 11%
Training-Line 57 6 11%
Transport 6 1 17%
Workstudy 10 1 10%
Total 1288 150 12%
Sampling – Sumithra Wattala & SummerySumithraHeadOffice-Wattala
Population: All employees of Sumithra including
worker level staff, supervisors & managers
Sampling Type: Stratified Random Sampling
Dept. Name No for Emp. Sample %
Accounts 14 5 36%
Central Ware House 16 6 38%
Commercial 10 4 40%
Drivers - Head Office 7 3 43%
Embroider Plant 6 3 50%
Human Resource 1 1 100%
I.T. 8 8 100%
Main Stores - Head Office 14 6 43%
Maintenance 3 1 33%
Manager 9 4 44%
Merchandizing 28 11 39%
Office Assistant 6 2 33%
Planning 1 1 100%
Product Development Center 63 21 33%
Purchasing 2 2 100%
Quality Assurance 3 1 33%
Receptionist/Secretary 1 1 100%
Total 192 80 42%
SumithraGroupSummery
Response Rate: 83%
Location No. of Active
Employees as at 1st
November 2016
No. Employees
considered for the
Sample
Number of
Respondents
Response Rate
Wattala 192 80 67 84%
Nittabuwa 893 100 90 90%
Polgahawela 996 120 93 78%
Hasalaka 638 100 78 78%
Weerakatiya 1,288 150 127 85%
Total 4,007 550 455 83%
Results and Findings
Results and Findings Demographic Data
Duration Frequency Percentage
Less than 6months DataRemoved DataRemoved
6months to 1 year DataRemoved DataRemoved
1year to 3 years DataRemoved DataRemoved
more than 3 years DataRemoved DataRemoved
Total DataRemoved DataRemoved
Employees’ number of years in Sumithra
Age Frequency Percent
Less than 18 DataRemoved DataRemoved
18yrs to 21yrs DataRemoved DataRemoved
21yrs to 25yrs DataRemoved DataRemoved
25yrs to 30yrs DataRemoved DataRemoved
More than 30yrs DataRemoved DataRemoved
Total DataRemoved DataRemoved
Employees’ Age
Education Level Frequency Percent
Up to O/L DataRemoved DataRemoved
Up to A/L DataRemoved DataRemoved
A/L Pass DataRemoved DataRemoved
Diploma Holder DataRemoved DataRemoved
Graduate DataRemoved DataRemoved
Total DataRemoved DataRemoved
Gender Frequency Percent
Female DataRemoved DataRemoved
Male DataRemoved DataRemoved
Total DataRemoved DataRemoved
Employees’ Gender
Employees’ Education Level
Results and Findings
Section Number of Question Corn Batch Alpha Value
B – Leadership style 18 0.782
C – Employee Job performance 17 0.865
D –Job Satisfaction 22 0.879
Reliability Test Results
Results and Findings
Job
perfor
mance
Autocratic
Democratic
Laissez-fair
Work
Pay
Supervision
Co-worker
Workcondition
Jobsatisfaction
Leadershipstyle
Job
performance
1
Autocratic .407 1
Democratic .556 .503 1
Laissez-fair .344 .215 .277 1
Work .296 .132 .330 .164 1
Pay .404 .200 .310 .166 .173 1
Supervision .570 .267 .453 .231 .444 .495 1
Co-worker .460 .155 .330 .219 .110 .207 .420 1
Work
condition
.488 .250 .349 .285 .206 .549 .617 .326 1
Job
satisfaction
.629 .290 .500 .300 .516 .750 .854 .545 .797 1
Leadership .585 .744 .789 .699 .281 .301 .425 .318 .398 .489 1
Results and Findings
Variable
Relationship towards Emp. JP Descriptive Statistics
Correlation (r) Significance Mean ( x̅ ) St. Deviation
Emp. JP 1 - 2.141 0.0803
Leadership style 0.585 .000 3.101 0.27792
Autocratic 0.407 .000 3.427 0.12179
Democratic 0.556 .000 3.279 0.37078
Laissez-fair 0.344 .000 2.597 0.44225
Job satisfaction 0.629 .000 3.012 0.1917
Work 0.296 .002 3.563 0.70605
Pay 0.404 .000 2.592 0.04376
Supervision 0.57 .000 2.245 0.86855
Co-worker 0.46 .000 3.845 0.66481
Work condition 0.488 .000 2.817 0.58565
Results and Findings
R R Square Adjusted R Square
.721a .519 .511
According to Regression Analysis 52% of the employee Job performance explained by the
Leadership style and Job Satisfaction.
Regression Analysis
Results and Findings
B value Coefficient β t value Sig.
Constant 0.698
Job Satisfaction 0.518 0.451 11.761 0.000
Leadership Style 0.432 0.366 9.547 0.000
Coefficient Value of the Model
Results and Findings - Summary
Hypotheses Accept / Reject
H1: There is a significant relationship between leadership style and employee job
performance in the Sumithra Group of Sri Lanka
Accept
H1(a): There is a significant relationship between autocratic leadership style and the
employee job performance of the Sumithra Group of Companies
Accept
H1(b): There is a significant relationship between democratic leadership style and
the employee job performance of the Sumithra Group of Companies
Accept
H1(c): There is a significant relationship between laissez-faire leadership style and
the employee job performance of the Sumithra Group of Companies
Accept
Results and Findings - Summary
Hypotheses Accept / Reject
H2: There is a significant relationship between job satisfaction and employee job
Performance in the Sumithra Group of Sri Lanka
Accept
H2(a): There is a significant relationship between work itself and the employee job
performance of the Sumithra Group of Companies
Accept
H2(b): There is a significant relationship between pay and the employee job
performance of the Sumithra Group of Companies
Accept
H2(c): There is a significant relationship between supervision and the employee job
performance of the Sumithra Group of Companies
Accept
Results and Findings - Summary
Hypotheses Accept / Reject
H2(d): There is a significant relationship between co-workers and the employee job
performance of the Sumithra Group of Companies
Accept
H2(e): There is a significant relationship between working conditions and the
employee job performance of the Sumithra Group of Companies
Accept
H3: Leadership style has a higher impact on the job performance than the job
satisfaction
Reject
One (H3) hypothesis were rejected out of 11 hypotheses
Conclusion
• A positive significant relationship was found between job
satisfaction and employee job performance.
• This finding was consistent with prior research
• Gamage (2012)
• Carroll, Keflas and Watson (1964)
Conclusion
• All five dimensions of job satisfaction also has a significant positive
relationship towards employee job performance.
• The highest correlation toward employee job performance exist
between supervision and the employee job performance.
• Second highest correlation value was between working condition
and employee job performance.
Conclusion
• Above findings were consistent with
• Hettiarachchi (2014)
• Robbins (2001)
• Hussin (2011)
• Naharuddin & Sadegi (2013)
• Boyce, Veith, Newsham, Myer & Humnter (2013)
Conclusion
• Level of job satisfaction in the Sumithra Group is in average level. level of co-workers
shows a higher level in the organization and level of supervision is low. All other
dimensions had average level in the Sumithra group.
• The level of leadership style in the Sumithra group is average level.
• Results of this study indicate that there is a positive significant relationship between
leadership style and employee job performance.
Conclusion
• This finding is consistent with the earlier studies done by the following researchers.
• Wang. 2005
• Goleman, Boyatzis, & McKee (2002)
• Cummings and Schwab, 1973
• Hellriegel, Jackson, Slocum, Staude, Amos, Klopper, Louw and Oosthuizen, 2004
• Ehrhart, 2004.
• Wang et al. (2005)
Conclusion
• The democratic leadership style had the highest relationship towards employee job
performance. This is consist with the findings of the Lewin(1939)
• While autocratic leadership style had the next highest relationship towards employee
job performance, the laissez-faire showed the lowest relationship towards the
employee job performance. This is consistent with the findings of Lewin (1939)
• As per the study the 52% of the employee job performance is explained by job
satisfaction and the leadership style.
Recommendations
• It is recommended that the Management of Sumithra Group encourages its Managers and
Supervisors to practice more on Democratic leadership style and help Managers and Supervisors
who are more on to Autocratic and Laissez-fire to transform their leadership style on to
Democratic
• It is recommended that the HR department should conduct trainings and seminars for Managers
and the Supervisory level staff to identify their leadership style and make them understand the
importance of democratic leadership style in order to improve performance
• The Management of the Sumithra Group should further improve on Work Environment such as
lighting, noise level etc. to increase Job performance of the employees of Sumithra Group as the
work condition shows a significant positive correlation towards employee job performance
Recommendations for Future Studies
• This research is based on one medium scale apparel sector organization. Where future
research could be done covering several medium scale apparel sector Organizations.
Large scale and small scale apparel sector Organizations also could be considered for
future studies
• This study was focused on Autocratic, Democratic and Laissez-Fair leadership styles
where as another study could be done on other type of leadership styles such as
transformational and transactional.
• This study was perceptual base, it would be more accurate if the actual figures such as
attendance, conflicts, warning letters issues, actual performance (output), defects rate
etc. can be taken in to consideration for future studies.
Recommendations for Future Studies
• This study had only five dimensions for Job Satisfaction where further research could be
done considering other dimensions or more dimensions of job satisfaction.
• This study did not consider any intermediate variables, where the finding could vary.
• It is recommended that researches could conduct similar studies for other industries as
well as consider different districts and regions.
• This study considered only leadership style and job satisfaction which explains 52% of
the employee job satisfaction of the Sumithra Group. Where some other research could
be done by considering other factors which could explain 48% of the employee job
performance.
Thank You!

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Leadershi style, job satisfaction and employee performance publish

  • 1. Leadership style, Job satisfaction and Employee Job performance of Managerial and Non Managerial Employees This is the final viva presentation of the research paper submitted by Viraj Goonewardena for the Master of Business Administration (MBA) of the Rajarata University of Sri Lanka Some Data & Figures removed for ethical reasons.
  • 2. Leadership style, Job satisfaction and Employee Job performance of Managerial and Non Managerial Employees By: Viraj Goonewardena - Case Study of Sumithra Group of Companies -
  • 4. Apparel Sector Textile / apparel sector is one of the highest income generating industries in Sri Lanka. According to the Central Bank of Sri Lanka (CBSL) report 2015, the export income generated by the textile industry is over USD 4.8 billion and provides employment to over 15% of the country’s labor force. Performance of apparel manufacturing sector is very important for Sri Lankan economy.
  • 5. About Sumithra Group • Leading apparel manufacturer established in 1984 • BOI approved company with an annual export value of over USD 30Mn • Sumithra Group has, • Around 4000 employees • 4 Manufacturing plants and a head office
  • 6. The Background Year Nittabuwa Polgahawela Hasalaka Weerakatiya 2013 DataRemoved DataRemoved DataRemoved DataRemoved 2014 DataRemoved DataRemoved DataRemoved DataRemoved 2015 DataRemoved DataRemoved DataRemoved DataRemoved 2016 DataRemoved DataRemoved DataRemoved DataRemoved Plan to performance efficiency It is not possible to meet 100% efficiency in the apparel sector; therefore the industry excepted efficiency level is 70% or above for medium scale apparel companies.
  • 7. Research Gap • Very little research were found on how the leadership style and job satisfaction effect the job performance in Sri Lanka, especially in the medium scale apparel sector • No research has been done in Sumithra Group
  • 8. The Problem Statement • What is the relationship of employee job performance from leadership style and job satisfaction in the Sumithra Group of Companies?
  • 9. Research Questions 1. Is there a significant relationship between leadership style and employee job performance of the Sumithra Group of Companies? 2. Is there a significant relationship between job satisfaction and employee job performance of the Sumithra Group of Companies? 3. What leadership style has significant relationship with employee job performance of Sumithra Group of companies? 4. What dimension of Job satisfaction has significant relationship with employee Job performance of Sumithra Group of Companies? 5. Is the leadership style has a higher impact than job satisfaction on employee job performance of Sumithra group of companies?
  • 10. Objectives of the Study 1. To examine the probable significant relationship between leadership style and the employee job performance of the Sumithra Group of Companies 2. To examine the probable significant relationship between job satisfaction and the employee job performance of the Sumithra Group of Companies 3. To examine which leadership style has significant relationship with employee job performance of Sumithra Group of companies. 4. To examine which dimension of job satisfaction has significant relationship with employee Job performance of Sumithra Group of Companies. 5. To study whether the leadership style has a higher impact on employee job performance than the job satisfaction
  • 11. Research Hypotheses • H1: There is a significant relationship between leadership style and employee job performance in the Sumithra Group of Sri Lanka • H1(a): There is a significant relationship between autocratic leadership style and the employee job performance of the Sumithra Group of Companies • H1(b): There is a significant relationship between democratic leadership style and the employee job performance of the Sumithra Group of Companies • H1(c): There is a significant relationship between laissez-faire leadership style and the employee job performance of the Sumithra Group of Companies
  • 12. Research Hypotheses • H2: There is a significant relationship between job satisfaction and employee job Performance in the Sumithra Group of Sri Lanka • H2(a): There is a significant relationship between work itself and the employee job performance of the Sumithra Group of Companies • H2(b): There is a significant relationship between pay and the employee job performance of the Sumithra Group of Companies • H2(c): There is a significant relationship between supervision and the employee job performance of the Sumithra Group of Companies
  • 13. Research Hypotheses • H2(d): There is a significant relationship between co-workers and the employee job performance of the Sumithra Group of Companies • H2(e): There is a significant relationship between working conditions and the employee job performance of the Sumithra Group of Companies • H3: Leadership style has a higher impact on the job performance than the job satisfaction
  • 14. Significance • Findings of these results will directly help the management of the Sumithra Group to take strategic decision • Finding will help management to decide the most suitable management style for the organization • Improve the job satisfaction of employees, specially by focusing on the areas that employees satisfaction is lacking behind. • It will help other researchers to conduct further studies in this area in the apparel sector who is the highest foreign income generator for the county • Outcome of this research will help the policy makers to develop their strategies for the apparel industry in a different manner
  • 15. Scope of the Research • This research focused on the employees of the four manufacturing plants of the Sumithra Group and the Head office in Wattala • This research was conducted in a live natural environment and will give the employees to freely answer • Considered worker level staff, supervisors and managers were taken for the sample
  • 16. Limitations • This research was a perceptual research where the 100% accurate data from HR department and work-study department will not be taken in to consideration • Due to time limitation this research is limited to Work itself, Pay, Supervision, Co- workers and the Working Conditions as dimensions of the Job Satisfaction and three leadership styles were taken • This study focus only on the impact made by the Leadership Style and Job Satisfaction on the Job Performance. Other intervening variables are not considered and this study does not consider the relationship between the Leadership style on Job satisfaction
  • 18. Conceptualization Variable / Dimension Definition Source Leadership Style “Leadership as the process of influencing and supporting others to work enthusiastically towards achieving the objectives” Armstrong (2002) Autocratic “autocratic style is embedded in leaders who have full organizational power and authority for decision making without sharing it with their subordinates” Kavanaugh and Ninemeier (201) Democratic “democratic style implies that leaders share their authority of decision making with employees and delegate” Kavanaugh and Ninemeier (2001) Laissez-Faire “where leaders give their employees most of the authority over decision making” Kavanaugh and Ninemeier (2001)
  • 19. Conceptualization Job Satisfaction ““a pleasurable or positive emotional state resulting from one’s job or job experiences” Locke (1976) Working-Condition “employees prefer physical surroundings that are secure, clean, comfortable and with a minimum standard of distraction” Robbins (2005) Responsibility Granting additional authority to employees in their activity, giving them enough job freedom and power so that they feel they ‘own’ the results are ways of giving them responsibility Robbins (2005) Work it-self employees believe that the task they are doing is important, meaningful and how their work is essential to the overall processes Robbins (2005) Recognition Timely, informal or formal acknowledgementof a persons or teams’ behavior, effort or business results that support the organization’s goals and values Harrison (2011) Pay The payment or compensation received for the service rendered or employment www.investopedia.com/ Performance “The effectiveness of employees’ behavior that effects to achieve the organizational objectives” Motowidlo (2003)
  • 20. Operationalization • Job performance • Source: Cox & Nkomo (1986), same questioner used by Dr. Dinoka Perera (USJP), with her email approval • Number of Questions: Performance Traits: 6 questions Task: 6 question Behavior: 5 questions
  • 21. Operationalization • Job Satisfaction • Source: Weiss,etal.(1967), same questioner used by Dr. Dinoka Perera (USJP), with her email approval • Number of Questions: Work itself: 5 questions Pay: 5 question Supervision: 4 questions Co-workers: 5 question Working Condition: 4 questions
  • 22. Operationalization • Leadership Style • Source: California Department of Public Health • Number of Questions: Autocratic Leadership style: 6 questions Democratic Leadership style: 5 question laissez-faire leadership Style: 6 questions
  • 23. Questionnaire • Self administrated, 5 point Likert scale with four sections • •Section A collected the respondent’s demographic data which consists of gender, age, ethnicity, marital status, highest education background, monthly income level and the duration that respondent has worked in Sumithra. • •Section B contained questions capture the leadership style shown by their direct supervisors and/or Manager • •Section C contained questions to captures the dimension of the job satisfaction • •Section D contained questions with regard to their performance covering the areas namely Traits, behavior and results
  • 24. Criteria for Hypothesis Accept / Reject Hypotheses Accept Criteria Reject Criteria H1: There is a significant relationship between leadership style and employee job performance in the Sumithra Group of Sri Lanka If Correlation Value > = to +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H1(a): There is a significant relationship between autocratic leadership style and the employee job performance of the Sumithra Group If Correlation Value > = to +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H1(b): There is a significant relationship between democratic leadership style and the employee job performance of the Sumithra Group If Correlation Value > = to +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H1(c): There is a significant relationship between laissez-faire leadership style and the employee job performance of the Sumithra Group If Correlation Value > = to +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09
  • 25. Criteria for Hypothesis Accept / Reject H2: There is a significant relationship between job satisfaction and employee job Performance in the Sumithra Group of Sri Lanka If Correlation Value > = +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H2(a): There is a significant relationship between work itself and the employee job performance of the Sumithra Group of Companies If Correlation Value > = +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H2(b): There is a significant relationship between pay and the employee job performance of the Sumithra Group of Companies If Correlation Value > = +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H2(c): There is a significant relationship between supervision and the employee job performance of the Sumithra Group of Companies If Correlation Value > = +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09
  • 26. Criteria for Hypothesis Accept / Reject H2(d): There is a significant relationship between co-workers and the employee job performance of the Sumithra Group of Companies If Correlation Value > = +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H2(e): There is a significant relationship between working conditions and the employee job performance of the Sumithra Group of Companies If Correlation Value > = +0.1 or <= to -0.1 If Correlation Value between -0.09 to +0.09 H3: Leadership style has a higher impact on the job performance than the job satisfaction If the “t” value of the leadership style is higher than “t” value of job satisfaction If the “t” value of the job satisfaction is higher than “t” value of leadership style
  • 27. Questionnaire Administration Number of active employees in the each location was taken from the MIS, selected employees covering 10% or more from each department Researcher visited the location personally and met the employees taken for the sample individually or in groups Explained about the purpose & how the confidentiality will be maintained A letter was given stating this is only for academic purpose At the end of the day visited each department personally and the respondents were ask to put their answered questioner to the sealed box Safely transported to the researcher’s residence in Colombo, kept under lock and key until the data entry part is done
  • 28. Sampling –Nittabuwa & Polgahawela SumithraNittabuwa SumithraPolgahawela Dept. Name No. of Emp. Sample % Training Line 26 3 12% Packing 13 2 15% Transport 4 1 25% Production 496 50 10% Stores 18 3 17% Building Maintenance 25 4 16% Work Study 7 3 43% Cutting 53 6 11% Planning & Coordination 7 1 14% Central Processing 35 4 11% Management 13 2 15% HR & Administration 7 1 14% Machinery Maintenance 10 1 10% Garment Engineering 7 1 14% Quality Assurance 9 1 11% Finishing 113 11 10% Jumpers 17 2 12% Health & Safety 2 1 50% Ironing 31 3 10% Total 893 100 11% Dept. Name No. of Emp Sample % Training Line 5 2 40% Packing 76 8 11% Transport 6 2 33% Quality Assuarence 70 8 11% Production 525 55 10% Stores 18 2 11% Building Maintenance 21 2 10% Work Study 9 2 22% Machinery Maintenance 9 1 11% Cutting 53 6 11% Canteen 5 1 20% Planning & Coordination 3 3 100% Embroider Plant 63 7 11% Management 12 2 17% HR & Administration 5 2 40% Garment Engineering 11 2 18% Finishing 47 5 11% Jumpers 30 4 13% IT 2 1 50% Health & Safety 3 2 67% Ironing 23 3 13%
  • 29. Sampling –Weerakatiya & Hasalaka SumithraWeerakatiya SumithraHasalaka Dept. Name No. of Emp. Sample % Packing 22 3 14% Transport 8 1 13% Production 320 50 16% Stores 18 3 17% Building Maintenance 18 3 17% Work Study 5 1 20% Cutting 50 8 16% Canteen 2 1 50% Planning & Coordination 5 1 20% Management 8 2 25% HR & Administration 4 1 25% Machinery Maintenance 8 2 25% Garment Engineering 4 1 25% Quality Assurance 4 1 25% Finishing 110 13 12% Jumpers 15 3 20% Health & Safety 2 1 50% Ironing 35 5 14% Total 638 100 16% Dept. Name No. of Emp Sample % Building Maintenance 8 2 25% Canteen 6 1 17% Central Processing 52 5 10% Cutting 70 8 11% Finishing 151 16 11% Garment Engineering 11 2 18% Health & Safety 3 1 33% HR & Administration 7 1 14% IT Department 2 2 100% Ironing 24 3 13% Jumpers 24 3 13% Machinery Maintenance 11 2 18% Management 11 2 18% Packing 107 11 10% Planning & Coordination 7 2 29% Quality Assurance 16 2 13% Recorders 6 1 17% Stores 19 3 16% Production 680 75 11% Training-Line 57 6 11% Transport 6 1 17% Workstudy 10 1 10% Total 1288 150 12%
  • 30. Sampling – Sumithra Wattala & SummerySumithraHeadOffice-Wattala Population: All employees of Sumithra including worker level staff, supervisors & managers Sampling Type: Stratified Random Sampling Dept. Name No for Emp. Sample % Accounts 14 5 36% Central Ware House 16 6 38% Commercial 10 4 40% Drivers - Head Office 7 3 43% Embroider Plant 6 3 50% Human Resource 1 1 100% I.T. 8 8 100% Main Stores - Head Office 14 6 43% Maintenance 3 1 33% Manager 9 4 44% Merchandizing 28 11 39% Office Assistant 6 2 33% Planning 1 1 100% Product Development Center 63 21 33% Purchasing 2 2 100% Quality Assurance 3 1 33% Receptionist/Secretary 1 1 100% Total 192 80 42%
  • 31. SumithraGroupSummery Response Rate: 83% Location No. of Active Employees as at 1st November 2016 No. Employees considered for the Sample Number of Respondents Response Rate Wattala 192 80 67 84% Nittabuwa 893 100 90 90% Polgahawela 996 120 93 78% Hasalaka 638 100 78 78% Weerakatiya 1,288 150 127 85% Total 4,007 550 455 83% Results and Findings
  • 32. Results and Findings Demographic Data Duration Frequency Percentage Less than 6months DataRemoved DataRemoved 6months to 1 year DataRemoved DataRemoved 1year to 3 years DataRemoved DataRemoved more than 3 years DataRemoved DataRemoved Total DataRemoved DataRemoved Employees’ number of years in Sumithra Age Frequency Percent Less than 18 DataRemoved DataRemoved 18yrs to 21yrs DataRemoved DataRemoved 21yrs to 25yrs DataRemoved DataRemoved 25yrs to 30yrs DataRemoved DataRemoved More than 30yrs DataRemoved DataRemoved Total DataRemoved DataRemoved Employees’ Age Education Level Frequency Percent Up to O/L DataRemoved DataRemoved Up to A/L DataRemoved DataRemoved A/L Pass DataRemoved DataRemoved Diploma Holder DataRemoved DataRemoved Graduate DataRemoved DataRemoved Total DataRemoved DataRemoved Gender Frequency Percent Female DataRemoved DataRemoved Male DataRemoved DataRemoved Total DataRemoved DataRemoved Employees’ Gender Employees’ Education Level
  • 33. Results and Findings Section Number of Question Corn Batch Alpha Value B – Leadership style 18 0.782 C – Employee Job performance 17 0.865 D –Job Satisfaction 22 0.879 Reliability Test Results
  • 34. Results and Findings Job perfor mance Autocratic Democratic Laissez-fair Work Pay Supervision Co-worker Workcondition Jobsatisfaction Leadershipstyle Job performance 1 Autocratic .407 1 Democratic .556 .503 1 Laissez-fair .344 .215 .277 1 Work .296 .132 .330 .164 1 Pay .404 .200 .310 .166 .173 1 Supervision .570 .267 .453 .231 .444 .495 1 Co-worker .460 .155 .330 .219 .110 .207 .420 1 Work condition .488 .250 .349 .285 .206 .549 .617 .326 1 Job satisfaction .629 .290 .500 .300 .516 .750 .854 .545 .797 1 Leadership .585 .744 .789 .699 .281 .301 .425 .318 .398 .489 1
  • 35. Results and Findings Variable Relationship towards Emp. JP Descriptive Statistics Correlation (r) Significance Mean ( x̅ ) St. Deviation Emp. JP 1 - 2.141 0.0803 Leadership style 0.585 .000 3.101 0.27792 Autocratic 0.407 .000 3.427 0.12179 Democratic 0.556 .000 3.279 0.37078 Laissez-fair 0.344 .000 2.597 0.44225 Job satisfaction 0.629 .000 3.012 0.1917 Work 0.296 .002 3.563 0.70605 Pay 0.404 .000 2.592 0.04376 Supervision 0.57 .000 2.245 0.86855 Co-worker 0.46 .000 3.845 0.66481 Work condition 0.488 .000 2.817 0.58565
  • 36. Results and Findings R R Square Adjusted R Square .721a .519 .511 According to Regression Analysis 52% of the employee Job performance explained by the Leadership style and Job Satisfaction. Regression Analysis
  • 37. Results and Findings B value Coefficient β t value Sig. Constant 0.698 Job Satisfaction 0.518 0.451 11.761 0.000 Leadership Style 0.432 0.366 9.547 0.000 Coefficient Value of the Model
  • 38. Results and Findings - Summary Hypotheses Accept / Reject H1: There is a significant relationship between leadership style and employee job performance in the Sumithra Group of Sri Lanka Accept H1(a): There is a significant relationship between autocratic leadership style and the employee job performance of the Sumithra Group of Companies Accept H1(b): There is a significant relationship between democratic leadership style and the employee job performance of the Sumithra Group of Companies Accept H1(c): There is a significant relationship between laissez-faire leadership style and the employee job performance of the Sumithra Group of Companies Accept
  • 39. Results and Findings - Summary Hypotheses Accept / Reject H2: There is a significant relationship between job satisfaction and employee job Performance in the Sumithra Group of Sri Lanka Accept H2(a): There is a significant relationship between work itself and the employee job performance of the Sumithra Group of Companies Accept H2(b): There is a significant relationship between pay and the employee job performance of the Sumithra Group of Companies Accept H2(c): There is a significant relationship between supervision and the employee job performance of the Sumithra Group of Companies Accept
  • 40. Results and Findings - Summary Hypotheses Accept / Reject H2(d): There is a significant relationship between co-workers and the employee job performance of the Sumithra Group of Companies Accept H2(e): There is a significant relationship between working conditions and the employee job performance of the Sumithra Group of Companies Accept H3: Leadership style has a higher impact on the job performance than the job satisfaction Reject One (H3) hypothesis were rejected out of 11 hypotheses
  • 41. Conclusion • A positive significant relationship was found between job satisfaction and employee job performance. • This finding was consistent with prior research • Gamage (2012) • Carroll, Keflas and Watson (1964)
  • 42. Conclusion • All five dimensions of job satisfaction also has a significant positive relationship towards employee job performance. • The highest correlation toward employee job performance exist between supervision and the employee job performance. • Second highest correlation value was between working condition and employee job performance.
  • 43. Conclusion • Above findings were consistent with • Hettiarachchi (2014) • Robbins (2001) • Hussin (2011) • Naharuddin & Sadegi (2013) • Boyce, Veith, Newsham, Myer & Humnter (2013)
  • 44. Conclusion • Level of job satisfaction in the Sumithra Group is in average level. level of co-workers shows a higher level in the organization and level of supervision is low. All other dimensions had average level in the Sumithra group. • The level of leadership style in the Sumithra group is average level. • Results of this study indicate that there is a positive significant relationship between leadership style and employee job performance.
  • 45. Conclusion • This finding is consistent with the earlier studies done by the following researchers. • Wang. 2005 • Goleman, Boyatzis, & McKee (2002) • Cummings and Schwab, 1973 • Hellriegel, Jackson, Slocum, Staude, Amos, Klopper, Louw and Oosthuizen, 2004 • Ehrhart, 2004. • Wang et al. (2005)
  • 46. Conclusion • The democratic leadership style had the highest relationship towards employee job performance. This is consist with the findings of the Lewin(1939) • While autocratic leadership style had the next highest relationship towards employee job performance, the laissez-faire showed the lowest relationship towards the employee job performance. This is consistent with the findings of Lewin (1939) • As per the study the 52% of the employee job performance is explained by job satisfaction and the leadership style.
  • 47. Recommendations • It is recommended that the Management of Sumithra Group encourages its Managers and Supervisors to practice more on Democratic leadership style and help Managers and Supervisors who are more on to Autocratic and Laissez-fire to transform their leadership style on to Democratic • It is recommended that the HR department should conduct trainings and seminars for Managers and the Supervisory level staff to identify their leadership style and make them understand the importance of democratic leadership style in order to improve performance • The Management of the Sumithra Group should further improve on Work Environment such as lighting, noise level etc. to increase Job performance of the employees of Sumithra Group as the work condition shows a significant positive correlation towards employee job performance
  • 48. Recommendations for Future Studies • This research is based on one medium scale apparel sector organization. Where future research could be done covering several medium scale apparel sector Organizations. Large scale and small scale apparel sector Organizations also could be considered for future studies • This study was focused on Autocratic, Democratic and Laissez-Fair leadership styles where as another study could be done on other type of leadership styles such as transformational and transactional. • This study was perceptual base, it would be more accurate if the actual figures such as attendance, conflicts, warning letters issues, actual performance (output), defects rate etc. can be taken in to consideration for future studies.
  • 49. Recommendations for Future Studies • This study had only five dimensions for Job Satisfaction where further research could be done considering other dimensions or more dimensions of job satisfaction. • This study did not consider any intermediate variables, where the finding could vary. • It is recommended that researches could conduct similar studies for other industries as well as consider different districts and regions. • This study considered only leadership style and job satisfaction which explains 52% of the employee job satisfaction of the Sumithra Group. Where some other research could be done by considering other factors which could explain 48% of the employee job performance.