LEADERSHIP STYLE AND THEIR IMPACT ON ORGANISATION PERFORMANCE:

CASE STUDY OF SHREE RENUKA SUGARs .LTD.

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LEADERSHIP STYLE AND THEIR IMPACT ON ORGANISATION PERFORMANCE:
CASE STUDY OF SHREE RENUKA SUGARs .LTD.

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LEADERSHIP STYLE AND THEIR IMPACT ON ORGANISATION PERFORMANCE:
CASE STUDY OF SHREE RENUKA SUGARs .LTD.

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 LEADERSHIP STYLE AND THEIR IMPACT ON ORGANISATION PERFORMANCE:
CASE STUDY OF SHREE RENUKA SUGARs .LTD.

CHAPTER - I

INTRODUCTION

1.1 INTRODUCTION:

Leadership is a mutual social power system in which leaders and superiors affect one another
to accomplish corporate objectives. Leadership is a vital leadership function that requires the
potential to inspire a set of people towards a common objective. Leadership centers onto the

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growth, expectations and capacity building of followers. Leadership has a direct cause-effect
relationship on organizations and their performance. Leaders determine values, culture,
tolerance for change, and motivation for employees. A style of leadership is the method that
managers use to practice their leadership role. It is seen as a specific behavior employed by a
leader in a company to empower staff to achieve the organization's set of goals leadership style
is the manner in which a director or boss wants to behave with his or her staff or colleagues
and the manner in which they exercise the leadership role. It indicates that style or conduct of
leadership has an effect on job satisfaction and the willingness and purpose of an employee to
quit an organization or not. It is worth noting that the right leadership style practiced in a given
point in time, regardless of low pay,, could still inspire an employee to offer his / her best in
the company. The global sourcing market in India continues to grow at a higher pace compared
to the IT-BPM industry. India is the leading sourcing destination across the world, accounting
for approximately 55% market share of the US$ 200-250 billion global services sourcing
business in 2019-20. India's rankings improved four places to 46th position in the 2021 edition
of the Global Innovation Index (GII). The IT industry accounted for 8% of India's GDP in 2020.
According to STPI (Software Technology Park of India), software exports by the IT companies
connected to it, stood at Rs. 1.20 lakh crore (US$ 16.29 billion) in the first quarter of FY22.
The role of leadership in an organization is crucial in terms of creating a vision, mission,
determination and establishment of objectives, designing strategies, policies, and methods to
achieve the organizational objectives effectively and efficiently along with directing and
coordinating the efforts and organizational activities. Unfortunately, some companies do not
take account of the leadership style adopted by their managers. Based on this premise, our
project aims to explore the relationship between leadership style and organizational
performance in Shakal Company.

1.2 NEEDS OF THIS STUDY:

O The reason behind choosing these leadership styles is the fact that they are the most practiced
leadership styles throughout the globe, and if any new ideology is developed through the
research.
O It can improve these leadership styles further and bring further success to organizations.

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O Therefore, the survey was designed to focus on these three leadership styles. only this
research is to determine the impact of autocratic leadership style, democratic leadership style,
and participative leadership style on the organizational performance"

1.3 LITERATURE REVIEW

Leadership can be defined in different ways that it is hard to come up with a single working
definition. Leadership is not just a person or group of people in a high position, it is a very
important factor for any organization or group. Leadership is a process in which leader is
indulged in various activities to achieve any goal. Leadership is a communication process of
leader and individuals. It also for Italian restaurants refers to the behavior/ attitude of a leader
to collect and direct the individuals towards any goal. So, the success of a company or
individual depends mostly on the extent and quality of leadership.

Leadership has been a topic of study for social scientists for much of the twentieth century, yet
there has been no consensually agreed-upon definition of it (Jyoti & Bhau, 2015; Sofi &
Devanadhen, 2015; Xu & Wang, 2008; Bass, 1990). Many authors have studied this
phenomenon, and some have argued that there is no conscious definition of what leadership is,
no dominant paradigm for studying it, and little agreement regarding the best strategies for
developing and exercising it (Bennis, 2007; Hackman & Wageman, 2007; Vroom & Jago,
2007). However, Ngodo (2008) views leadership as a form of direction in which a person can
give to a group of people he steers affairs in such a way that will influence the behavior of
another individual, or group. Ngodo (2008) perceives leadership to be a reciprocal process of
social influence, in which leaders and subordinates influence each other in order to achieve
organizational goals. Sun (2002) defines leadership as the process of influencing people so that
they make an effort by their own will and enthusiasm towards obtaining the group’s goals.

Leadership is a critical management skill, involving the ability to encourage a group of people
towards a common goal. Leadership focuses on the development of followers, their needs and
building their capacity (Klein et al., 2013). It is imperative for managers occupying leadership
positions to focus on the development of value system of employees, their motivational level
and moralities with the development of their skills (Uchenwamgbe, 2013; Ismail et al., 2009).
This approach will essentially help followers achieve their goals as they work in the
organizational setting. As posited by Khan et al. (2014), followers will be encouraged to be
expressive and adaptive to new and improved practices and changes in the environment.

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Michael (2010) leadership has a direct cause-effect relationship upon organizations and their
success. Leaders determine values, culture, change tolerance and employee motivation. They
shape institutional strategies including their execution and effectiveness. It should be stressed
that leaders can be found at any level of an institution and are not exclusive to management.
Successful leaders do, however, have one thing in common. They influence those around them
in order to reap maximum benefit from the organization’s resources, including its most vital
and expensive human resources/capital. This success can only be achieved and probably
sustained in organizations where appropriate leadership style or styles are employed at a given
time. Leadership is also a process which involves the use of non-coercive influence to shape a
group or organizational goals, motivate behaviour towards achieving the goals as well as define
the group’s culture

(Northouse, 2009)
.
Despite the variations in the definitions, there are at least three important implications of these
definitions. Firstly, leadership is a process engaged in by certain individuals (leaders). It is an
ongoing activity in an organization. Secondly, it involves other people in the form of
subordinates or employees who by their willingness are influenced by the leader. Therefore,
the subordinates formalize the leader’s authority by making leadership process possible.
Thirdly, the aim of leadership is the accomplishment of a goal and objectives. A seemingly
endless variety of definitions have been developed, and there is a common thread which runs
through all the definitions and that is the concept of influence. Leaders therefore influence
others to help accomplish group and organizational objectives. However, it should be noted
that the use of appropriate leadership style at a given time is a conduit for organizational
success.

Leadership style is the most dominant factors that impact employees’ attitudes and behaviours
including organizational commitment. Leadership can be defined as the capacity to impact a
group of employees’ decision, behaviour, recognition of the goal, and work with confidence
and zeal (Adair, 2002). Leader is required to develop the future vision, to motivate the
organizational members, and to achieve the visions and to improve the performance
(Adair, 2002). According to Adair (2002) leadership is the ability to encourage others to seek
out and defined objectives enthusiastically. It is the human factor which binds a group
together and to improve their performance and to direct them towards goals

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(Koudri,1999). Also it was suggested that leadership is to deal and cope with change, focus on
the long-term and the big picture, not always keep to save him/herself to take risks, and
concentrating on people and their values, not just only the bottom-line

Since leadership is one of the key issues that organization faces and attributes to its success
and failures, a vast majority of literature , in the past, have focus on examining the impact of
leadership and its effects on employee performance or organizational performance. The similar
significant number of studies also has done over in Malaysia. The table below shows some of
the key researches done on Malaysian context in examining the impact of leadership and its
impact on employee performance.

Leadership style is viewed as a combination of different characteristics, traits and behaviors

that are used by leaders for interacting with their subordinates. (Mitonga-Monga & Coetzee,
2012). Mitonga-Monga and Coetzee (2012) consider leadership as the pattern associated with
managerial behavior, which is designed to integrate the organizational or personal interest and
effects for achieving particular objectives.

Harris et al (2007) also postulated that leadership style can be defined as the kind of relationship
that is used by an individual so as to make people work together for a common goal or objective.
According to modern leadership styles, leadership styles can be categorized as follows: (1)
transformational leadership style, (2) transactional leadership style, (3) culture-based
leadership, (4) charismatic leadership, and (5) visionary leadership (Harris, et al., 2007).

The basic structure of an organization is comprised of petencies different departments in which

the employees work as the basic units with different capacities. In this structure, the main
responsibility of the leadership is to strengthen the moral values and working capacity of its
workforce that ultimately leads to increase in output graph of the organization (Avolio & Bass,
2004). The employees, in the presence of inspiring leadership, may not feel isolated from the
central authority which keeps them intact and resultantly they work with integrity and utmost
commitment. At macroscopic level, leadership is both a research area and a practical skill
(King, Johnson & Vugt, 2009). On the part of the researchers, the current research highlights
different leadership styles in the different circumstances in various spheres of life. On the part

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of individual level, it encompasses the abilities, leading capacity, skills, and experience of a
person or group of persons (Tahir, Abdullah, Ali & Daud, 2014). While exercising the
authority, the leadership seeks the participation of the employees with all their dedication and
sense of ownership through the power of mobilization, motivation and communication in the
organization (Chandra & Priyono, 2016).

The present study tries to examine to what extent the relationship of the leadership styles and
employees' performance is affected by the transformational and transactional leadership and
which style successfully impacted upon the employees' level of performance. At the same time,
it analyzed the impact of transactional leadership in relationship with employees' performance.
The transactional leader, following his/her style by implementing rules and regulations,
institutes writ of authority, assigns and focuses upon certain goals and directs the employees to
achieve the pre-determined tasks (Avolio & Bass, 2004). In using the transactional style, the
leader focuses on contingent reward and on management by exception. Research indicates that
when contingent reinforcement is used, followers believe that accomplishing objectives will
result in their receiving desired rewards. Using management by exception, the leader does not
play any substantial role unless objectives are not being accomplished (Orji et al.).

Eileen Y. Chou (2013) explains in his paper about the leadership that, there's a tendency to
assume that, leaders to be encouraging, magnanimous, and optimistic. But in the last decade,
across borders and sectors, there have been an increasing number of leaders better known for a
style that more vitriolic, punitive, and negative. The subsequent research into how positive or
negative rhetoric effects of the perception of someone's leadership shows that although people
may think they want our leaders to be cheerleaders, and instinctively tend to empower
naysayers instead.
Dalai Lama (2014) shares his observations in an article on leadership and describes how our
"strong focus on material development and accumulating wealth has led us to neglect our basic
human need for kindness and care". He offers leaders three recommendations. First, to be
mindful: "When we're under the sway of anger or attachment, we're limited in our ability to
take a full and realistic view of the situation". Also, to be selfless: "Once you have a genuine
39 sense of concern for others, there's no room for cheating, bullying, or
exploitation; instead of being honest, truthful, and transparent in their conduct."

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➤ Juliet Bourke, Andrea Espedido (2015) says in his article that companies increasingly rely
on diverse, multidisciplinary teams that combine the collective capabilities of women and men,
people of different cultural heritage. and younger and older workers. But simply throwing a
mix of people together doesn't guarantee high performance; it requires inclusive leadership.
leadership that assures that all team members feel they are treated respectfully and fairly, are
valued and sense that they belong, and are confident and inspired. Research involving 3,500
ratings by employees of 450 leaders found that inclusive leaders share six behaviors and those
leaders often overestimates how inclusive they really are. These are the behaviors: visible
commitment, humility, awareness of bias, curiosity about others, cultural intelligence, and
effective collaboration.

Scott D. Anthony, Bernard C. Kümmerli (2016) depicted about leadership. in his paper that
teams are often misaligned on strategy, even though they don't seem to be on the surface. The
problem is that in team meetings, people tend to publicly agree with the company's direction
(agreed-upon strategy say digital transformation the seeming agreement turns into active
resistance. Few are willing to spare the needed resources. One solution is anonymous realtime
particularly if the boss is present). But when it comes time to allocate resources to a new digital
polling. By having team membersvotein real-time, differences of opinion are readily revealed.
This then can lead to focused discussion and consensus building.

Jennifer Porter, (2017) has explored in his article that of Great leaders are great learners. Their
never-ending pursuit of information pushes them to constantly improve and sets them apart
from the rest. Feedback serves acrucial role in this process, but getting and learning from it isn't
always easy .If you want to get the 40 feedback that is necessary to improve your leadership,
there are a few steps you can take. First, build and maintain apsychologically safe environment.
Sharing feedback is often interpersonally risky. To increase the likelihood of your colleagues
taking that risk with you. show them that their honesty is valued.

Rasmus Hougaard, Jacqueline Carter, Vince Brewerton (2018) explores in his study that, about
human beings, are all driven by basic needs for meaning, happiness, human connectedness, and
a desire to contribute positively to others. And leaders that truly understand these needs, and
lead in a way that enables these 42 intrinsic motivations, have the keys to enable strong loyalty,
 LEADERSHIP STYLE AND THEIR IMPACT ON ORGANISATION PERFORMANCE:
CASE STUDY OF SHREE RENUKA SUGARs .LTD.

engagement, and performance. As leaders, one must be humans before managers. This includes
being personal, or asking oneself a simple question

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before making decisions If anyone's child or parent or good friend worked here, would they
appreciate this; being self-aware, so anyone can better able to understand and empathize with
the people you lead; being selfless; and, most of all, being compassionate

Doris kearnsgoodwin (2018), in her most recent book, Leadership in Turbulent Times,
Goodwin examines the careers of Abraham Lincoln, Theodore Roosevelt, Franklin Roosevelt,
and Lyndon Johnson, illustrating how their skills and strengths enabled them to lead the United
States through periods of great upheaval. In this article she looks at Lincoln's pivotal decision
to issue the Emancipation Proclamation-which required the support of his cabinet, the army,
and the American people. Possessed of a powerful emotional intelligence, he was able to
mediate among factions and sustain the spirits of his countrymen. Among the powerful lessons
Lincoln's leadership embodied: Acknowledge when failed policies demand a change in
direction. Anticipate contending viewpoints. Set an example. Refuse to let past resentments
fester. Protect colleagues from blame. Establish trust.

➤ Eric garton (2019) depicts in his survey that less than half of respondents say they agree or
strongly agree that their leaders are inspiring. Even fewer feel that their leaders foster
engagement or commitment and model the culture and values of the corporation. But real
breakthroughs in performance. come from employees who feel inspired by their leaders and
their organizations. A new study to uncover what makes a leader inspirational reveals some
surprising results: there are many different attributes, 33 in all, that inspire people, but you need
only one of these to double your chance of being an inspirational leader; inspirational leaders
have behavioral "spikes" that are relevant to how the company creates value; and leaders who
both inspire people and generate results disrupt established behaviors in their organizations.

Scott D. Anthony, Evan I. Schwartz (2020) study reveals that companies that claim to be
transforming seem to be everywhere. But stories of successful change efforts are exceptionally
rare. A study of S&P 500 and Global 500 firms reveals that those leading the most successful
transformations creating new offerings and business models to push into new-growth markets
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share five common characteristics and strategies: Transformational CEOs tend to be "insider
outsiders;".

Rasmushougaard, Jacqueline carter (2021) paper explains that to truly engage other human
beings and create meaningful connections, people need to silence our inner voices and be

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fully present and being more mindful can help. This requires discipline to stay on task not
letting them is affected by nagging challenges or distracted by mental chatter. And it requires
skill to have the mental ability to stay laser focused and present.

1.4 OBJECTIVES
The major objective of this study was to determine the impact of leadership style in
organization performance, the study was undertaken:
1. To find out if effective leadership will lead to the attainment of the organizational goal.
2. Determine how leadership style will motivate employee.
3. To analyse the impact of leadership on organization growth and development .
4. To ascertain how leader are improving work place effectiveness.
5. To determine why most leaders are incompetent in their skills.

1.5 RESEARCH METHODOLOGY

This study employs a mixed –methods approach, utilizing both primary and secondary data to
achieve a comprehensive understanding of the research topic
DATA COLLECTION:
o PRIMARY DATA: primary data was collected through structured questionnaires
administered during physical visit to respondents working in the relevant industry. The
questionnaire was designed to gather quantitative data on demographic, job roles, and
perceptions related to the industry. Respondents were approached in their workplace
setting to enhance participation and ensure clarity in responses. A total of 60 completed
questionnaires were collected, providing insight into the demographics and engagement
levels of the workforce

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o SECONDARY DATA: secondary data was gathered from annual reports of the
industry. These reports provided essential background information, including industry
trends, financial performance, and key challenges faced by organization. This data was
analyzed to contextualize the finding from the primary research and to compare them
with established benchmarks and historical trends within the industry. o SAMPLE
SIZE: 60

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1.6 LIMITATION OF STUDY
The following limitation are inherited in the study
• The sample of 60 respondents may not represent the entire workforce.
• Selection bias may arise from choosing respondents during physical visits.
• Response bias could occur, leading to socially desirable answers.
• Reliance on self-reported data may introduce inaccuracies.

CONCLUSION:
Hey all seem to stress that success demand that a leader adopts the style of leadership
appropriate to the organization at a given situation. A style that will suits the situation and
welcome by most of the members of the organization is assumed to be the best.

Finally, it has been recognized in the world that "leadership" supplement the machines of
organizational set up; it provides the variable software for puling entire establishment along.

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1.7 CHAPTER SCHEME:
The work is dividend into the five chapters those chapters are arranged sequential order and
they are as follows.

Chapter -1: Introduction

This chapter covers the introduction, review of literature, needs for the study, objectives of
the study, methodology, limitation of the study.

Chapter -2 Company profile:

The second chapter is the profile of which include history of the company, information
of the company vision, mission, goals, business segments, manufacturing facilities, research
and development, sustainability initiaves, financial performance, leadership and management
team, awards and recognition oh the company.

Chapter -3 Theoretical framework

The third chapter deals with introduction of concepts meaning, definition, importance,
objectives, types of leader, good quality of leader, types of leadership styles, impact of
leadership style.

Chapter- 4 Data Analysis and Interpretation:

The forth chapter is concerting of the analysis and interpretation of data relating to the
various data collected regarding the leadership styles.

Chapter- 5 Findings suggestions and conclusion

The final chapter is conclusion which is oriented to words the findings and suggestions
of the study.

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