A STUDY OF THE RELATIONSHIP BETWEEN LEADERSHIP …...CERTIFICATE This is to certify that the dissertation entitles “A study of the Relationship between Leadership Styles and Employee

A STUDY OF THE RELATIONSHIP BETWEEN LEADERSHIP

STYLES AND EMPLOYEE COMMITMENT: AN EMPIRICAL

STUDY OF PRIVATE UN-AIDED B-SCHOOLS OF

MAHARASHTRA.

Dissertation Submitted to the Padmashree Dr. D. Y. Patil University’s,

Department of Business Management

In partial fulfilment of the requirements for the award of the Degree of

DOCTOR OF PHILOSOPHY

IN

BUSINESS MANAGEMENT

Submitted by

MS. PRIYADARSINI KHASTAGIR PODDAR

(Enrolment Number: DYP-Ph.D. - 09001)

RESEARCH GUIDE

PROF. DR. PRADIP MANJREKAR

DEAN

PADMASHREE DR. D.Y.PATIL UNIVERSITY’S,

DEPARTMENT OF BUSINESS MANAGEMENT,

Sector 4, Plot No. 10,

CBD Belapur, Navi Mumbai- 400614

November,2012

A Study of the Relationship between Leadership

Styles and Employee Commitment: An Empirical

Study of Private Un-Aided B-Schools of Maharashtra

DECLARATION

I hereby declare that dissertation entitled, “A study of the Relationship between

Leadership Styles and Employee Commitment: An Empirical Study of Private

Un-aided B-Schools of Maharashtra.” submitted for the Award of the Degree of

Doctor of Philosophy in Business Management at the Padmashree Dr. D.Y.Patil

University’s Department of Business Management, Navi Mumbai is my original work

and the dissertation has not formed the basis for the award of any degree, associate

ship, fellowship or any other similar titles. This study contains research work which is

based on totally personal work and view point of the researcher and no other body

should be held responsible for the same.

Place: Navi Mumbai (Ms.Priyadarsini Khastagir Poddar)

Date: 12th

November’2012 Signature of the Candidate

CERTIFICATE

This is to certify that the dissertation entitles “A study of the Relationship between

Leadership Styles and Employee Commitment: An Empirical Study of Private

Un-aided B-Schools of Maharashtra”, is a bonafide research work carried out by

Ms.Priyadarsini Khastagir Poddar, student of Doctor of Philosophy(Business

Management), at Padmashree Dr. D. Y. Patil University’s Department of Business

Management, Navi Mumbai during the year 2009-2012, in partial fulfilment of the

requirements for the award of the Degree of Doctor of Philosophy in Business

Management and that the dissertation has not formed the basis for the award

previously of any degree, diploma, associate ship, fellowship or any other similar title

of any University or Institution.

Prof. Dr.Pradip Manjrekar Prof. Dr.R.Gopal

Dean & Ph.D. Research Guide Director & HOD

Dept. of Business Management Dept. of Business Management

Padmashree Dr. D.Y. Patil Padmashree Dr. D.Y.Patil

University, Navi Mumbai University, Navi Mumbai

Place: Navi Mumbai

Date:

This Thesis Is Dedicated To My Parents

ACKNOWLEDGEMENT

I am indebted to the Padmashree Dr. D.Y. Patil University, Department of Business

Management, which has provided me with the opportunity to carry out the Doctorate

program.

This dissertation or research study would not have been possible if the Director and

Head of the Department of Business Management of Padmashree. Dr.D.Y.Patil

University, Dr.R.Gopal did not provide me with his constant encouragement,

suggestions, constructive comments, and motivations .His blessings lead to the

completion of the final dissertation.

My sincere thanks and appreciations extended to my guide, Head of the Department

of Business Management of Padmashree Dr.D.Y.Patil University, Dr. Pradip

Manjrekar. His constant inspiration shaped me to a better researcher.

I would also like to thank Dr.A.K.Sengupta, Chairman of Higher Education Forum for

his valuable peer review of my research paper based on the pilot study of my research

work.

In addition, I extend my heartfelt gratitude to all the 47 Directors, all over

Maharashtra for allowing me to collect data from their academic faculties, as well as I

thank all my respondents.

Finally, the blessings of my parents, Late Sri Sitanath Khastagir and Late Smt

Sunanda Khastagir and support and motivation from my husband Mr. Nilanjan Poddar

and my two sons Aryaman and Shauryaman lead to the completion of this research

study .I would also like to express my thanks and appreciation to my sister Tinku

Bhattacharya.

(Ms.Priyadarsini Khastagir Poddar)

Signature of the Candidate

I

TABLE OF CONTENTS

Chapter No. Title Page No. Preliminary Cover Page

Title

Declaration

Certificate

Acknowledgement

Table of Contents I

List of Tables V

List of Figures XIV

List of abbreviations XV

Executive Summary XVI

Chapter – 1 Introduction 1

1.1 Introduction & Background of Leadership Style 2

1.2 Leadership Styles and Employee Commitment 4

1.3 Employee Commitment 5

1.4 The Determinants of Employee Commitment 6

1.5 Affective Commitment 7

1.6 Business School Management Education in India 9

Chapter – 2

Review Of The Literature 14

2.1 Leadership 15

2.2 Leadership Style Theories 17

2.3 Situational Leadership Style Theories 24

2.4 Recent Theories of Leadership Style 27

2.5 Transformational Leadership Style and Employee

Commitment

35

2.6 Summary of Leadership Style Theories 35

2.7 Theoretical Framework on Leadership Style 36

2.8 Leadership styles within academic institutions 38

2.9 Employee Commitment 40

2.10 Conceptualization of Commitment 51

2.11 Dimensions of Employee Commitment 52

2.12 Antecedents of Employee Commitments 56

II

2.13 Employee Commitment within Academic Institution 60

2.14 Literature review on Education Sector with emphasis over

B-Schools.

64

2.15 Research Gap 111

Chapter 3 Education System In India 112

3.1 Introduction To The Education System In India 113

3.2 Structure Of Educational System In India. 114

3.3 Accreditation 119

3.4 Administration of Education 121

3.5 Types of Colleges 121

3.6 Universities: The Organisational Framework 126

3.7 The People Who Manage the Universities 142

3.8 Conclusion 147

Chapter 4 An Overview of the B-Schools of Maharashtra

149

4.1 Introduction to Business Management Education:

150

4.2 Present Situation of Business Management Education in

Maharashtra.

152

4.3 Growth and Meaning of Un-Aided Private B-Schools of

Maharashtra

153

4.4 Norms & Requirements in Private un-aided B-Schools of

Maharashtra as laid down by All India Institute of Technical

Education.

157

4.5 Conclusion 171

Chapter-5 Objectives, Hypothesis And Research Methodology 173

III

5.1 Statement of Research Problem: 174

5.2 Research Questions 175

5.3 Scope of the Study: 175

5.4 Purpose of the Study 175

5.5 Objectives 176

5.6 Statement of Hypothesis 177

5.7 Population and Sample Selection 181

5.8 Sampling Design 182

5.9 Data Source 182

5.10 Pilot Study 184

5.11 Data Collection for the Main Research Study 184

5.12 Measurement of the Data 186

5.13 Reliability of the Study Instrument 192

5.14 Data Analysis Tools 193

5.15 Interpretation and Report Writing 193

5.16 Limitation of the Study 193

Chapter-6 Research Findings 195

6.1 Introduction 196

6.2 Pilot Study Report 196

6.3 Description of Respondent‟s Characteristics 220

6.4 Statistical Results 225

6.5 Testing the Expectations and Hypotheses 230

6.6 Testing the expectations: 231

6.7 Testing the Hypothesis 235

IV

Chapter-7 Discussions And Conclusions 267

7.1 Discussion 268

7.2 Conclusion 280

Chapter 8 Recommendations And Suggestions 283

8.1 Recommendations 284

8.2 Suggestions 286

Bibliography 288

Annexure I 309

Annexure II 321

V

List of Tables

Table

No

Content

Page

No. 1 Dimensions of Employee Commitment within

Multidimensional Models

48

2 Bifurcations of Universities in India 153

3 Number of Private Un-Aided B-Schools of Maharashtra as

per Directorate of Technical Education, Maharashtra State,

with the total number of private un-aided B-schools in the

regions of the research study.

157

4 4(i) gives the intake in the B-Schools of Maharashtra

4(ii) shows the seats available for allotment under CAP for

un-aided private B-Schools in Maharashtra.

159

160

5 5-(i) Gives the Norms for Cadre Ratio (PG) in B-Schools of

Maharashtra.

5-(ii) Gives the essential and desirable Facilities in B-

Schools of Maharashtra

5-(iii) Gives the evaluation guidelines for the teaching and

learning process.

5-(iv) Gives the evaluation guidelines for the teaching and

non-teaching staff of private un-aided B-Schools of

Maharashtra.

163

163

166

168

6 Area vies Collection of the Research Data 186

7 7-(i) shows frequency distribution of respondents by Age. 199

VI

7-(ii) Frequency distribution of Respondent‟s Educational

Level

7-(iii) shows frequency distribution of respondents by

Marital Status.

7-(iv) shows frequency distribution of respondents by

Occupational Status.

7-(v) shows frequency distribution of respondents by Salary

(Monthly income)

7-(vi) shows frequency distribution of respondents by

Length of service.

7-(vii) shows frequency distribution of respondents by

Gender.

200

200

201

201

202

203

8 8(i-a) Correlations of Transformational leadership styles

(perceived) with organizational commitment.

8(i-b) Correlations of Transformational leadership styles

(expected) with organizational commitment.

8(ii-a) Correlations of Transactional leadership styles

(perceived) with organizational commitment.

8(ii-b) Correlations of Transactional leadership styles

(expected) with organizational commitment.

8(iii-a) Pearson‟s Co-relation results of transformational

leadership style and transactional Leadership style on

employee commitment as perceived by the academic

employees of B-schools.

204

205

206

206

207

VII

8(iii-b) Pearson‟s Co-relation results of transformational

leadership style and transactional Leadership style on

employee commitment as expected by the academic

employees of B-schools.

8(iv-a) Correlation of Laissez –Faire Leadership style

(Observed) with Organizational commitment of employees.

8 (iv-b) Correlation of Laissez –Faire Leadership styles

(Expected) with Organizational commitment of employees.

8v (a & b) ANOVA shows relationship between age and

level of organizational commitment of private B-Schools

academic faculties of Navi Mumbai.

8(vi) ANOVA shows relationship between Education and



8(vii-a, b) shows relationship between Length of service and



8(viii-a, b), shows relationship between occupational status

and level of organizational commitment of private B-

Schools academic faculties of Navi Mumbai.

8 (ix-a, b), shows relationship between pay (salary) and



8 (x-a, b), shows relationship between marital status and


208

209

210

211

212

213

214

215

VIII


8 (xi-a, b), shows relationship between gender and level of

organizational commitment of private B-Schools academic

faculties of Navi Mumbai.

216

217

9 9-(i). Frequency Distribution of Respondents by Age.

9-(ii) Frequency distribution of Respondent‟s Educational

Level

9-(iii) shows frequency distribution of respondents by

Marital Status.

9-(iv) shows frequency distribution of respondents by

Occupational Status.

9-(v) shows frequency distribution of respondents by Salary

(Monthly income)

9-(vi) shows frequency distribution of respondents by

Length of service.

9-(vii) shows frequency distribution of respondents by

Gender.

9-(viii) shows frequency distribution of respondents by

Internal promotion taken place within the particular time

span.

221

221

222

223

223

224

224

225

10 10-(i). Intercorrelations Among the MLQ Scales and

Organizational Commitment Measure.

10-(ii).Range (%), Mean, Median, and Standard Deviation

of all the Variables

227

229

11 11 – (i). Frequency Distribution of Respondents by their 231

IX

Level of Organizational Commitment.

11 – (ii). Frequency Distribution of Heads/Deans/Directors

According to Their Transactional Characteristics as

Perceived by their sub-ordinate Academic Faculties.

11 – (iii). Frequency Distribution of Transactional

Heads/Deans/Directors According to Their Characteristics

as Expected by their Sub-Ordinate Academic Faculties.

11–(iv). Frequency Distribution of Heads/Deans/Directors

According to Their Transformational Characteristics as

Perceived by their sub-ordinate Academic Faculties.

11–(v). Frequency Distribution of Heads/Deans/Directors

According to Their Transformational Characteristics as

Expected by their Sub-Ordinate Academic Faculties.

233

233

234

235

12 12 (i) shows Regression analysis of Transformational

leadership styles (OBSERVED „OBS‟ or perceived “P”) on

employee commitment.

12(ii) shows Regression analysis of Transformational

leadership styles (Expected “Exp”) on employee

commitment.

12(iii) Correlations of Transformational leadership styles

(Observed „Obs‟/Expected „Exp‟) with employee

commitment.

12 (iv) Correlations of Transformational leadership styles

(Observed „Obs‟) with employee commitment.

12 (v) Correlations of Transformational leadership styles

237

237

238

239

240

X

(Expected „Exp‟) with employee commitment.

12(vi) Correlations of Transformational leadership styles

(with GAP between observed „OBS‟/expected „EXP‟) with

organizational commitment.

240

13 13 (i) shows Regression analysis of Transactional leadership

styles (Observed „Obs‟ Or Perceived “P”) on employee

commitment.

13 (ii) shows Regression analysis of Transactional

leadership styles (Expected „Exp‟) on employee

commitment.

13(iii) Correlations of Transactional leadership styles

(Observed „Obs‟/Expected „Exp‟) on employee

commitment.

13(iv) Correlations of Transactional leadership styles

(Expected „Exp‟) on employee commitment.

13(v) Correlations of Transactional leadership styles

(Observed „Obs‟) on employee commitment.

13(vi) Correlations of Transformational leadership styles

(with GAP between observed „OBS‟/expected „EXP‟) on


242

242

244

245

245

246

14 14(i) shows the Regression Analysis between

Transformational Leadership (OBS), Transactional

Leadership (OBS), on Employee Commitment.

14(ii) shows the Regression Analysis between

247

248

XI

Transformational Leadership (EXP), Transactional

Leadership (EXP), on Employee Commitment.

15 15(i) shows the Regression Analysis between Laissez-Faire

Leadership (OBS), and Employee Commitment.

15(ii) shows the Regression Analysis between Laissez –

Faire Leadership (EXP),) on Employee Commitment.

15(iii) Correlations of Laissez – Faire leadership styles

(Observed „Obs‟ Or Perceived) with organizational

commitment.

15(iv) Correlations of Laissez – Faire styles (Expected

„Exp‟) with organizational commitment.

15(v) Correlations of Laissez – Faire styles (with GAP

between observed „OBS‟/expected „EXP‟) with


249

250

251

251

252

16 Correlations of Transformational/ Transactional leadership

styles (with GAP between observed „OBS‟/expected „EXP‟)

with organizational commitment.

253

17 17(i) shows Regression analysis of Transformational and

Transactional leadership styles (OBSERVED „OBS‟ or

perceived “P”) on employee commitment.

17(ii) shows Regression analysis of Transformational /

Transactional leadership styles (Expected “Exp”) on


256

256

18 18-(i). Correlation Results of the Level of Education on

Employee Commitment.

257

XII

18-(ii). Regression Results of the Level of Education on


257

19 19-(i). Correlation Results of the Age on Employee

Commitment.

19-(ii). Regression Results of the Age on Employee

Commitment.

258

259

20 20-(i). Correlation Results of the Occupational Status on


20-(ii). Regression Results of the Occupational status on


260

260

21 21-(i). Correlation Results of the Salary (Monthly In-Come)

on Employee Commitment.

21-(ii). Regression Results of the Salary (Monthly In-Come)

on Employee Commitment.

261

261

22 22-(i). Correlation Results of the Marital Status on


22-(ii). Regression Results of the Marital Status on


22-(iii). Mean Difference of the Marital Status on Employee

Commitment.

262

262

263

23 23-(i). Correlation Results of the Gender on Employee

Commitment.

23-(ii). Regression Results of the Gender on Employee

Commitment.

23-(iii). Mean Difference of the Gender on Employee

263

263

264

XIII

Commitment.

24 24-(i). ANOVA for the Internal Promotions on Employee

Commitment.

24-(ii). Regression Results of the Internal Promotions on


24-(iii). Mean Difference of the Internal Promotion on


265

265

265

25 Regression Results of all the Independent Variables on

Employee Commitment

266

XIV

List of Figures

Figure No. Content

Pg.No

1 Predictors and Outcomes of Affective Employee

Commitment

9

2 The Managerial Grid (adopted from Blake and

Mouton, 1975).

23

3 Model of Theoretical Framework on Leadership

Styles

37

4 General Model of Workplace Commitments

52

5 Hypothesized Antecedents and Outcomes of

Employee Commitment

57

6 Structure of Indian Education System.

114

XV

List of Abbreviations

HCM High Commitment Management

Strategies

OSU Ohio State University

LPC Least-Preferred Co-worker

MLQ Multifactor Leadership Questionnaire

MBE Management By Exception

B.C. Before Christ

PEG Pride, Enjoyment and Growth

OD Organization Development

OCTAPACE Openness, Confrontation, Trust,

Authenticity, Pro Activity, Autonomy,

Collaboration And Experimentation

OCQ Organizational Commitment

Questionnaire

ECQ Employee Commitment Questionnaire

MCom Master of Commerce

MA Master of Arts

OHU Other than Home University

ME Master in Engineering

CAP Centralised Admission Process

XVI

Executive Summary

The purpose of this study was threefold: first, to investigate the effects of

transformational, transactional and laissez-faire leadership styles upon organizational

commitment of employees; second, to determine the gap between the perceived and

expected leadership styles of the heads/directors and deans of the private un-aided B-

Schools of Maharashtra and its impact on employee commitment; and third, to

explore the relationship between selected demographic variables and employee

commitment.

The Objectives of the study were as follows:

1) To study the relationship between the Transformational, Transactional and

Laissez-Faire Leadership Styles of the Heads/Directors and the level of commitment

among the academic faculties of private un-aided B-Schools of Maharashtra.

2) To study the impact of Transformational Leadership Style on the academic

faculties of the selected B-Schools of Maharashtra in comparison to the Transactional

and Laissez-Faire leadership styles of the Heads/Directors.

3) To study the differences in Leadership Styles of HOD/Directors as observed and

expected by the academic faculties of the private un-aided select B-schools of

Maharashtra.

4) To determine the effects of age, level of education, marital status, gender,

educational qualifications and job-related variables (Occupational status, salary and

length of service, internal promotions) on the level of commitment of the private un-

aided selected B-School‟s academic faculties of Maharashtra.

5) To study the level of commitment among the academic faculties of the private

un-aided select B- Schools of Maharashtra.

XVII

Statement of Hypothesis:

H01: The Transformational Leadership Style (as observed and expected) of the Heads

of the Departments has no positive impact on the level of employees‟ commitment of

private un-aided B-Schools of Maharashtra.


of the Departments/Directors has a positive impact on the level of employees‟

commitment of private un-aided B-Schools of Maharashtra.

H02: The Transactional Leadership Style (as observed and expected) of the Heads of

the Departments/Directors has no positive impact on the level of employees‟


H12 : The Transactional Leadership Style (as observed and expected) of the Heads of

the Departments/Directors has a positive impact on the level of employees‟



of the Departments/Directors of private un-aided B-Schools of Maharashtra will not

have a greater impact on the level of employees‟ commitment compared to the

Transactional Leadership Style.

H13 : The Transformational Leadership Style (as observed and expected) of the Heads

of the Departments/Directors of private un-aided B-Schools of Maharashtra will have

a greater impact on the level of employees‟ commitment compared to the


XVIII

H04: The Laissez-Faire Leadership Style of the Heads of the Departments/Directors

has no negative impact on the level of employees‟ commitment of private un-aided B-

Schools of Maharashtra.


has a negative impact on the level of employees‟ commitment of private un-aided B-


H05: There is no difference between the expected and observed leadership styles of the

Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra on

the level of employee‟s organizational commitment.

H15: There is difference between the expected and observed leadership styles of the


employee‟s organizational commitment.

H06: Together the Transformational and Transactional Leadership Styles of the Heads


have a greater impact on the employee‟s commitment level, rather than either of the

two separately.

H16 : Together the Transformational and Transactional Leadership Styles of the Heads


a greater impact on the employee‟s commitment level, rather than either of the two

separately.

H07 : There will be no positive relationship with the level of education and the level of

employees‟ commitment of private un-aided B-Schools of Maharashtra.

XIX

H17 : There will be a positive relationship with the level of education and the level of


H08 : There will be no positive relationship with the age and the level of employees‟


H18: There will be a positive relationship with the age and the level of employees‟


H09: There will be no positive relationship between occupational status and the level

of employees‟ commitment of private un-aided B-Schools of Maharashtra.

H19: There will be a positive relationship between occupational status and the level of


H010: There will be no positive relationship between pay (salary) and the level of

employees of private un-aided B-Schools of Maharashtra.

H110: There will be a positive relationship between pay (salary) and the level of


H011: Married Employees of private un-aided B-Schools of Maharashtra will not be

more committed to their organization than single, divorced and widowed employees.

H111 : Married Employees of private un-aided B-Schools of Maharashtra will be more

committed to their organization than single, divorced and widowed employees.

H012: Male gender of private un-aided B-Schools of Maharashtra will not be more

committed to their organization than the female gender.

H112: Male gender of private un-aided B-Schools of Maharashtra will be more


XX

H013: Employees undergoing internal promotions of private un-aided B-Schools of

Maharashtra will not be more committed to their organization.


Maharashtra will be more committed to their organization.

Scope of the Study:

The study is restricted to the level of academic faculties of private un-aided B-Schools

of Maharashtra. It could be extended to the lower levels, concerning the non-teaching

staffs of the private un-aided B-Schools as well as to the higher levels where the

Deans and Directors could judge the leadership styles followed by the trustees. The

study could also be extended to other states of India and globally too.

Research Methodology:

Sampling Design:

This study was conducted in Navi-Mumbai, Mumbai, Pune, Nasik, Aurangabad area

of Maharashtra. The targeted population for the study was the full-time academic

faculties of private un-aided B-Schools of Maharashtra area. There are altogether 390

B-schools in Maharashtra according to DTE Report 2010-2011.The study has been

conducted in 47 B-Schools of the above mentioned regions of Maharashtra. The total

number of sample is 570 academic faculties of selected un-aided private B-Schools of

Maharashtra.

Data Source:

Descriptive Survey:

XXI

Review of literature and other available information from various published and

unpublished reports, journals, and periodicals, books, newspapers, etc. (including

databases like EBSCO, Pro-quest, and others).

Field Survey:

Research Tool:

The research instrument used for collecting primary data was questionnaire. The

Questionnaires used for the final data collection were close ended questionnaires.

Different Questionnaires used for different variables of the study were as follows:

1. Questionnaire for employee commitment.

2. Questionnaire for demographic details.

3. Questionnaire for Leadership Styles - (i) Transformational; (ii) Transactional; (iii)

Laissez-Faire.

Pilot Study:

A total of 150 questionnaires were distributed among the academic faculties of private

un-aided B-Schools of Navi-Mumbai area, out of which 91respondent‟s instruments

were analysed. The final questionnaire had been moderated based on the pilot study.

The reliability test of the questionnaire was made and was found to be good.

Data Collection:

The data for this study were collected through a questionnaire administered to all the

employees of private unaided B-Schools of Maharashtra. The number of completed

and returned questionnaires was 570. Descriptive statistics, Correlational statistics,

XXII

simple and multiple regression analysis, one way analysis of variance (ANOVA), and

Cronbach‟s alpha were used to analyze the data.

Tabulation and Statistical Analysis of Data:

The responses observed from each of the items in the instrument used for primary

data collection were scored and tabulated into a master sheet. The statistical tools used

included Co-relation, Regression technique, Multiple Regression, Anova; Descriptive

Statistics has been applied to draw logical conclusions. The analysis was done using

Statistical Package of Social sciences (SPSS: Version 17).

Interpretation and Report Writing:

The analysed data were finally interpreted to draw the conclusions and reported with

the objective of the study in view.

Major Findings:

The questionnaire used for the study of the respondent‟s characteristics included 8

items. All the respondents were Dean and Academic faculties of B-Schools of

Maharashtra. They were asked about their age, education, marital status, occupational

status, salary (monthly income), and length of services, gender, and internal

promotion. The questionnaire used for the testing of Hypothesis consists of three sets:

1) Employee Commitment 2) Leadership Styles as observed by the employees 3)

Leadership Styles as Expected by the employees from their immediate Heads.

The Hypotheses of this study addressed the field of Leadership and Employee

Commitment and the relationship between the demographic factors and employee

commitment. In the current study there were 13 hypothesis tested. To test this

hypothesis, some appropriate statistical tools such as frequency analysis, analysis of

XXIII

variance (ANOVA), and Pearson‟s correlation techniques, regression techniques,

multiple regression techniques are used. The findings are discussed below:

Transformational Leadership Style: Transformational leadership as “expected” by

the employees of the organisation are found to be positively and significantly

correlated with the employee commitment.

Transformational leadership styles as “observed” by the employees of the

organisation are found to be positively co-related and highly significant with the


Transactional Leadership Style: Transactional Leadership Style as “expected” by

the employees of the organisation are found to be positively co-related but not

significant with employee commitment.

Transactional leadership styles as “observed” by the employees of the organisation

are found to be positively correlated and highly significant with employee

commitment.

Laissez-Faire Leadership Style : Laissez – Faire Leadership style as “expected” by

the employees of the organisation are found to be negatively correlated and highly

significant with employee commitment.

Laissez – Faire Leadership style as “observed” by the employees of the organisation

are found to be negatively correlated and highly significant with employee

commitment.

Demographic Details:

Age: Age of the employees of the organisation is positively co- related with employee

XXIV

commitment.

Education: Educational qualifications of the employees of the organisation are

positively co-related with employee commitment.

Marital Status: Married employees of the private un-aided B-Schools of Maharashtra

are found to be more committed than the un-married employees.

Occupational Status: Occupational status of the employees of the organisation is

positively co-related with employee commitment.

Monthly Income: Salary of the employees of the organisation is positively and

significantly co-related with employee commitment.

Length of Service: Experience of the employees of the organisation is positively and

significantly co-related with employee commitment.

Gender: Gender of the employees of the organisation is positively co-related with

employee commitment. Male gender is found to be more committed than the female

gender.

Internal Promotion: Internal Promotion is positively and significantly co-related

with employee commitment.

Analysis:

As organizations strive to improve, there is a pressing need to understand the factors

that may directly or indirectly impact individual‟s behaviours in organizations. This

study was concerned with two important issues in the field of organizational

behaviour, organizational commitment and leadership. The literature revealed that

both subjects were considered as major contributors to the success of any

XXV

organization, public or private. Based on the findings of the present study, the

researcher developed the following conclusions:

1. The findings of this study indicated that transactional and transformational

leadership styles positively impacted the level of employee commitment of the

academic faculties of the B-Schools of Maharashtra. Additionally, the findings

showed that the organizational commitment of individuals was negatively

affected by the laissez-faire leadership style. Thus, in terms of organizational

commitment, these results provide support for the cross-cultural applicability

of Bass‟s augmentation theory of leadership, which postulates that successful

leaders are both transformational and transactional. Bass (1996) stated that „

although the model of transformational or transactional leadership may have

needs for adjustments and fine-tuning as we move across cultures, particularly

into non-Western, overall, it holds up as having a lot of universal potential”.

Furthermore, consistent with Bass‟s theory that stressed that successful leaders

are more transformational, the findings of this study demonstrated that the

academic faculties of the B-Schools of Maharashtra keeps an expectation from

their Heads of the Departments and Directors to be more transactional in

nature while dealing their sub-ordinates and confirmed that sub-ordinates of

transformational leaders were more committed to the organization than those

who were under transactional leaders.

2. The results revealed that the majority of the academic faculties of the B-

Schools of Maharashtra were found to be committed to the organization.

3. The majority of the academic faculties of the B-Schools of Maharashtra

perceived/observed their leaders or Heads of the Departments/Directors to

exhibit transformational and transactional characteristics, but keeps an

XXVI

expectation from their Heads to whom they report to be more transformational

in nature and follow contingent reward as well as management by exception-

active when concerning transactional leadership. Management by exception –

passive was not accepted by the B-School academic employees.

4. Consistent with early research studies, the demographic variables of age,

education, monthly income, marital status i.e., married employees had

significant positive impacts on employee commitment. The result also shows

that length of service, internal promotion, occupational status are positively

related to employee commitment but the statistical results are not significant.

The result also shows that both male and female employees are positively

related to employee commitment but their statistical findings showed no

significant difference.

The analysis of this study indicated that the level of employee commitment of the

academic faculties of the B-Schools of Maharashtra was relatively high. With regard

to leadership styles, the results showed that the transformational leadership style had

the greatest positive effect on the employee commitment, followed by the

transactional leadership style, and while the laissez-faire leadership style had a

negative impact on employee commitment to their organization as perceived or

observed by the employees of the B-School. Whereas in the leadership style expected

by the B-School employees, it is found that the employees expect their Leader to

follow transformational leadership style only, while the Laissez-Faire Leadership

style remains the same as the perceived leadership style.

In addition, the relationship between the employee commitment of the employees and

some selected demographic variables was examined. The findings indicated that age,

XXVII

monthly income, internal promotion and length of service had a significant positive

effect on the level of the employee commitment. The findings also indicated that

married employees were found to be more committed to their organization compared

to single, divorced, or widowed employees.

Limitation of the Study:

The study is limited to the state of Maharashtra and that too specifically with Navi-

Mumbai, Mumbai, Pune, Nasik and Aurangabad only. In future with a longer span of

time, similar studies can be carried out in the other states of the country and even

globally. Also, in future few more parameters related to leadership style and employee

commitment may be identified and subsequently, the study may be carried out on

those identified parameters.

Suggestions:

It is suggestive that the Heads of the departments or the Directors under whose

leadership the academic faculties of the private un-aided B-schools of Maharashtra

are working should be more transformational and transactional in nature while dealing

with the academic faculties.

It is even more suggestive that the Heads or the directors should be more

transformational in their leadership styles. They should be more co-operative and

participative in nature. Though they are expected to be transactional in their

leadership styles but they should not devote much time over finding mistakes in their

sub-ordinate faculties.

The Heads and the Directors should not avoid or delay in taking decisions .They

should be more punctual by nature and should not delay in responding to urgent

XXVIII

questions. They should not be absent when needed and should not wait for things to

go wrong before taking actions. Their steady involvement in all the important issues

and problems should be there.

For newly joined faculties orientation programs should be conducted.

Regular communications should be there between the management and highly

educated faculties.

Regular increments as per the HR of the institutions should be there. Whenever new

openings are there, internal candidates should be considered first for the promotions.

Inspirational and motivational training programmes should be there for the faculties.

For good academic achievements or feedback from the students or conducting

National and International seminars or for resource generation for the institute, the

faculties should be rewarded and awarded.

Employees who are working for a considerable period of time and the senior

employees should be given more importance and should be involved in the decision–

making process. Their wisdom and experience can be beneficial to the organisation.

1

CHAPTER 1

INTRODUCTION

2

CHAPTER 1

INTRODUCTION

1.1 Introduction & Background

Many authors have associated leader‘s characteristics with the development of

employee commitment (Bennis and Goldsmith, 1994; Bennis and Townsend, 1995;

Kerfoot, 1998). Bennis and Goldsmith (1994) and Bennis and Townsend (1995),

believe that vision, empathy, consistency and integrity in a leader could foster

development of trust and thereby enhancing the commitment of the employees to their

organization. They also indicate that leaders generate and sustain trust by acting in

ways that produce constancy, congruity, reliability and integrity. Kerfoot (1998) adds

to these availability and accessibility, communicating with candour and a willingness

to invest in employees.

The topic of this study is concerned with two important aspects of organizational

behaviour which address leadership and employee commitment. Leadership has been

viewed by academicians and practitioners as the most important topic within the

realm of organizational behaviour (Rahim 1981). In fact it is considered to be an

essential aspect of successful management. Furthermore it has been argued that

without leadership, successful management cannot be possible (Steers, 1981).

Employee commitment, at the same time, has attracted attention from scholars and

practitioners (Mowday et al, 1982). According to Buchanan (1974A), employee

commitment is no less than a precondition for successful organisation.

In the United States and other developed countries some research has focused on the

study of leadership styles and on the study of organizational commitment among

3

employees. Within this body of research, however, very few studies have been

devoted to examining the relationships between leadership styles and employee

commitment.

The importance of leadership refers to the fact that the success of an organisation is

heavily dependent on the quality of its leaders. These leaders play a major role in

making decisions that determine organizational goals and how these goals can be

accomplished. Their actions are important in influencing the behaviour and potential

of the organization‘s members (Williams, 1978). The drive to globalize implies that

global organizations need managers with a global outlook. Next generation managers

must work effectively with diverse constituencies within and outside their

organizations. Not only is the workforce becoming more diverse by gender, age,

ethnicity, and cultural background, but leaders also must deal with bewilderingly

dispersed and diverse stakeholders – locally, nationally, and globally. These factors

are combining to produce an environment that is rich in leadership challenges (Meena

Surie Wilson and Emily Hoole, 2011, Vikalp).

Employee commitment is a complex concept. Researchers have debated the nature of

this concept and empirical studies have examined the links between both commitment

and other outcomes, and commitment and the antecedents of management and

supervision styles.

This study was designed to investigate the relationships between leadership styles and

employee commitment among the private un-aided B-Schools of Maharashtra.

Therefore, it is necessary to include background information about the state of

Maharashtra and its Higher Education Systems, especially the academic institutions

pertaining to the B-schools. The data for this study were collected by administering

surveys to the academic faculties of private un-aided B-Schools of Maharashtra.

4

1.2 Concept of Leadership Styles and Employee Commitment

Effective Leadership Style enhances Employee Commitment to a greater extent. Kahn

(1990) recognizes the impact of management style, suggesting that a supportive

management style positively affects level of engagement. Kahn (1990) describes this

as a supportive manager as one who allows trial and error, and creates varying

degrees of openness in the environment. This research aims to specifically focus on

Transactional Leadership and Transformational Leadership and Laissez -Faire

Leadership Styles. The instrument of data collection is designed accordingly.

Leadership style ―refers to the pattern or constellation of leadership behaviours that

characterize a given leader‖ (Williams, 1978, p.217).

Transformational Leadership Style is a leadership style that strives to elevate the

desires of individual followers for achievement and self – development, while also

promoting the development of the group and organization (Bass & Avolio, 1990).

Transformational leaders are those who motivate followers to do more than originally

was expected (Bass, 1985).

Transactional leadership Style is a type of leadership based on an exchange process

between leaders and followers (Burns, 1978). Transactional leaders focus on the

clarification of task requirements and the specification of contingent rewards (Bass,

1990).

Employee commitment has been defined as ―the strength of an individual‘s

identification with and involvement in a particular organization‖ (Porter et al. 1974).

Laissez –Faire Leadership style represents a style used by leaders who try to avoid

responsibility and decision-making (Bass, 1997).

5

1.3 Employee Commitment

Gallie and White (1993) measured employee commitment to paid work from a 1990

survey and found that it was relatively high in the workforce as a whole and appeared

to have increased compared with 15 years earlier. There was little difference between

men and women. Only one third of employees exhibited high involvement in their

current job, usually called task commitment. A recent consultancy Report by AON

(2000) claimed, from a survey of 1570 workers, that 39 per cent of UK workers were

committed to continuing in their jobs, usually called continuance commitment.

Other studies have fiercely debated the gender differences in employee commitment.

Hakim‘s1993 division of British women into the full time committed workers and the

part time uncommitted workers have been debated extensively, although a further

third adaptive group have been added (Hakim, 2000). While there are clearly

attitudinal and some behavioural differences between women who work full or part

time, there are many determinants of women‘s orientations to work, over and above

their hours. Age, life cycle, occupations, education, work history and other attitudes

distinguish between women‘s attitudes towards work (Healy, 1999; Dex, 1988). AON

(2000) found that UK women exhibited more commitment than men did to continue

in their jobs. Commitment was also higher in the following groups; among married

people; the middle age groups; and those living outside London; in higher-grade

occupations, especially in teaching and health professions; with longer job tenure; in

the private sector; and in organizations with 1000 to 5000 employees.

The many research studies that have focussed on work commitment have served to

uncover the complexity of this concept to the extent that authors have characterised it

as having no stable meaning (Becker, 1964), elusive (Guest, 1992) and pluralist

(Coopey and Hartley, 1991; Morrow, 1983). Morrow identified 25 forms of

6

commitment although they were able to be reduced to 5 main foci; a value, career,

job, organisation or union focus. The focus of our interest is in organisational

commitment. Even under this heading there are alternative angles on employee

commitment; for example, task commitment (to see the job through), and continuance

commitment (to stay in the organisation), normative or affective commitment

(feelings of loyalty or shared values with the organisation), financial commitment (to

the material rewards), or temporal commitment (to a certain amount or work)

1.4 The Determinants of Employee Commitment

Gallie and White (1993) found that employee commitment was related to personal

characteristics that they called external factors (beliefs, sense of success) and internal

organizational factors including the structure and policies of the organization. Internal

factors that were found to improve commitment included:

the opportunities for personal development;

the higher the extent to which employees felt their skills were utilized;

the greater the access to training;

the greater the extent the organization was seen as a caring employer; and

the existence of teamwork as a form of supervision.

Cohen (1995) and others have also found that so-called non-work domains, the

amounts of outside ties, the organization‘s support for non-work, as well as personal

coping strategies, had significant effects on a sample of nurses‘ organizational

commitment. There are elements of these studies, therefore, that suggest indirectly

that work-life balance policies may be related to employee commitment. There has

been a growing consideration, through econometrics studies, of the assumptions

underlying the high commitment management theories. In these theories, the more

people centered focus of high commitment management strategies (HCM), viewing

7

employees as an asset, has been argued to lead to an increase in employee

commitment. As noted earlier, employee commitment has been viewed as an

intermediate outcome, on the way to improvements in business performance (Huselid,

1995). As Guest et al (2000) note, however, few studies have examined both of these

relationships together and shown the intermediary effects on commitment. Criticisms

have also been made by other researchers that the ‗commitment‘ element was left as

an unexplored ‗black box‘ (Becker et al, 1995; Purcell et al, 1999). Employee

commitment has typically been viewed as the relative strength of an individual‘s

identification with the involvement in an organization as well as his or her willingness

to exert effort and remain in the organization. Commitment as outcome has been

related to leadership (Walumbwa, Orwa, Wang, and Lawler, 2005). One of the aims

of this study is to determine how employee‘s perceptions and expectations of

leadership styles followed by their Heads influence their commitment, and the

meaning of the study will therefore be explained with reference to Meyer and Allen‘s

conceptualisation of organisational commitment.

1.5 Affective Commitment

This research study focuses on affective commitment which is defined as the

employee's positive emotional attachment to the organization. An employee who is

affectively committed strongly identifies with the goals of the organization and

desires to remain a part of the organization. This employee commits to the

organization because he/she "wants to". In developing this concept, Meyer and Allen

drew largely on Mowday, Porter, and Steers's (1982) concept of commitment, which

in turn drew on earlier work by Kanter (1968). According to Nyengane, (2007)

although the relationship is not strong, there is a positive relationship between the

transformational leadership behaviours and commitment. This suggests that,

8

leadership behaviours which involve building trust, inspiring a shared vision,

encouraging creativity and emphasizing development is somewhat positively related

to employee commitment. For affective commitment, the study suggests that these

leadership behaviours are positively related to how employees feel about wanting to

stay with the company. Therefore, using transformational leadership style will

encourage employees to commit highly with their work. Another findings by Viator

and Ralph (2001) is transformational leadership is directly and positively associated

with role clarity, job satisfaction and affective organizational commitment, and

indirectly associated with job performance, across all three functional areas.

Therefore, it is strong that transformational leadership will give a direct impact to the

employee‘s commitment. The significance of mechanisms used by transformational

leaders to influence the followers towards motivation and organizational commitment

is addressed.

A selected organizational characteristic and other selected personal and work

experience characteristics explained affective organizational commitment among the

academic employees of private un-aided B-Scholl‘s of Maharashtra. Personal

characteristics were gender, age, and length of service (organizational tenure),

monthly income, internal promotion, occupational status and marital status within the

private un-aided B-Schools of Maharashtra. The Leadership styles followed by the

Heads of the Departments/Deans/Directors of the private un-aided B-Schools of

Maharashtra were also perceived. These variables (Figure 1) were examined to

determine the extent to which they explained affective organizational commitment,

the dependent variable.

9

AFFECTIVE

ORGANIZATIONAL

COMMITMENT

Predictors and Outcomes of Affective Employee Commitment

PREDICTORS OUTCOMES

OUTCOMES

Figure 1. Source: Adapted from Chelte & Tausky, (1987).

1.6 Business School Management Education in India with emphasis on

Maharashtra.

India's education system is divided into different levels such as pre-primary level,

primary level, elementary education, secondary education, undergraduate level and

postgraduate level.

India's higher education system is the third largest in the world, after China and the

United States. The main governing body at the tertiary level is the University Grants

Attendance

Employee

Performance

Internal

Promotion Decreased

Turnover

Monthly

INcome

Age

Gender

Length of

Service

Occupationa

l Status

Marital Status

Transformational & Transactional Leadership

Styles

http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/University_Grants_Commission_(India)


10

Commission (India), which enforces its standards, advises the government, and helps

coordinate between the centre and the state. Accreditation for higher learning is

overseen by 12 autonomous institutions established by the University Grants

Commission. In India, education system is reformed. In future, India will be one of

the largest education hubs.

As of 2009, India has 20 central universities, 215 state universities, 100 deemed

universities, 5 institutions established and functioning under the State Act, and 33

institutes which are of national importance Other institutions include 16000 colleges,

including 1800 exclusive women's colleges, functioning under these universities and

institutions. The emphasis in the tertiary level of education lies on science and

technology. Indian educational institutions by 2004 consisted of a large number of

technology institutes. Distance learning is also a feature of the Indian higher

education system.

Management education in India has come a long way. The history of management

education in India goes back to the pre-Independence era. The first college level

business school in the country was founded in 1913 in Mumbai and was soon

followed by another in Delhi in 1920. These business colleges imparted basic skills

about the principles of trade and commerce to clerks and supervisors from fields as

diverse as banking, transport, and accounting. (Indian Management, Sept 2004). The

first Business School in India was Indian Institute of Social Welfare and Business

Management, Kolkata, which was established in 1953. The All India Institute of

Management and Labour welfare and the department of management, Delhi

University followed suit in 1968.




11

A number of universities set up their MBA programme in 1960s. The IIMs were

patterned on the recommendation of Dean Robbins of the University of California,

which was invited by the planning commission. The first IIM was set up in 1961 at

Kolkata followed by IIMs at Ahmadabad in 1961, Bangalore in 1971 and Lucknow in

1974 and in the late 1990s at Indore and Calicut. The flagship management education

programme, MBA, is widely popular as it offers quick gateway to the riches and to

the top echelon of corporate world. Indian Business School varies widely in terms of

the calibre of the faculties, quality of curriculum and infrastructure, and placement

record. A few of the schools including the Indian Institutes of Management have built

up a reputation of high quality education and their graduates compete successfully for

global placement opportunities. Regarding syllabus content, management schools

over the world have been modifying their curricula. Growing globalisation of business

has led to greater international focus in the curriculum incorporating courses on global

leadership, diversity management, managing across cultures, etc. Moving a little away

from the basic business, compared to some other disciplines wherein knowledge

generation and its dissemination through education sets the direction for application

of knowledge in the field, management as a discipline has been a lot more reactive to

its environment. Much greater emphasis is needed especially in India on basic and

applied research for management education to lead practice.

For bolstering their position good management schools in the country need to keep

the Global best Schools as their loadstars. Blessed with exceptionally bright students,

dedicated faculty, and staff, and a formidable reputation for professionalism, IIMs

have the potential to emerge as global leaders in setting new aspirations for

management education, and showing the way to achieve them. And they need

complete autonomy in determining their salary structures, raising funds etc. It is their

12

autonomy which has brought IIMs this far .For raising management education in the

country to the next level, it is vital that this autonomy of IIMs is protected and

enhanced.

The education sector has changed a lot and as such numerous educational colleges

have come up in the recent times. In respect of colleges, one can come across various

kinds like government, self-financing, aided and unaided colleges. It is with the

advent of globalization that aided and unaided colleges have now dominated the

education sector. When talking of aided and unaided colleges, there are many

differences between them.

One of the main differences between aided and unaided B-Schools is with regard to

funds. A B-School that gets aid from the government is termed as aided B-School

whereas a B-School that does not get any funds or aid from the government is called

as unaided B-School While aided B-School get support from the government, unaided

B-School do not get any support from the government side. The aided B-Schools get

grants from the government for various purposes like infrastructure development,

academic activities.

Another major difference that can be seen between aided and unaided B-School is in

the fee structure. The unaided B-School charges heavy fees from the students whereas

the aided B-School only charges the fees stipulated by the government.

While the government pays the teachers of the aided B-School it is the management

that pays the salary of the unaided B-School teachers. The teachers in aided B-

Schools are protected whereas the teachers have no protection in unaided B-Schools.

http://www.differencebetween.net/miscellaneous/difference-between-globalization-and-capitalism/

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13

In terms of autonomy, the unaided B-Schools have great autonomy when compared

to aided B-Schools. This is because the unaided B-Schools, unlike the aided ones, do

not have any liability. Though private managements run these two sectors of colleges,

the unaided colleges have more freedom and liberty than the aided colleges.

The early 90's saw the boom of founding new management schools, most of them in

private sector. In the last three years alone 400 Business Schools came into existence.

Few Business Schools have also established collaboration with some western

Universities. India management institutions produce over 30, 000 full-time MBAs and

10,000 part-time MBAs every year. Many business schools are also running MBA

equivalent program such as distance Post Graduate Diploma in Management

(PGDM), Masters in International business (MIB) etc. Even some of the leading

business houses are establishing their own business schools like Infosys, Birla‘s etc.

Management education gives a holistic picture to the students about how to manage

the four ‗M‘s of any organization i.e. money, material, man and machine. Whether the

knowledge about management principles is obtained through formal study programs

at Universities or internally through on the job training or through external seminars

or programs, it is of the utmost importance for any person in any job in life; even for

the self-employed, entrepreneurs.

In Maharashtra there are nine Universities spread all over Maharashtra with

sanctioned intake capacity for MMS courses around 150000. The number of students

passing MMS / MBA CET is almost 70000, who compete for these seats and about

800 Management schools. Graduates from any discipline (Arts, Science, Commerce,

Engineering, Computer Science and Information Technology) can pursue MMS

PROGRAMME provided they pass any of the CETs: MH – CET, CAT, MAT.

Students are admitted as per the guidelines prepared by DTE in this regard.

14

CHAPTER 2

REVIEW OF THE LITERATURE

15

CHAPTER 2

REVIEW OF THE LITERATURE

2.1 Leadership

Leadership is a universal human phenomenon. The study of Leadership is not a new

phenomenon, but it is an ancient art. The old civilizations of Egypt and Rome showed

examples of leadership practices. Regardless of the culture, leadership occurs

universally among all people (Bass, 1981). From ancient to modern times, scholars,

military generals, politicians, and more casual observers have been interested in

leadership. Leadership styles have been studied extensively; perspectives on

leadership have been written and revised. Despite all these efforts, the issue of

leadership effectiveness is still far from settled (Gordon, 1982).

Even though the word leadership has been used since the beginning of the 19th

century (Stogdill, 1974), there continues to be the absence of a comprehensive

approach to assess cause and effect of successful leadership (Taylor and Rosenbach,

1989).Burns (1978) described this situation by asserting that ―Leadership is one of the

most observed and least understood phenomena on earth‖ (p.2).In fact, the concept of

leadership has been defined by various scholars in almost as many ways. Stogdill

(1974) noted this ambiguity when he observed that ―there are almost as many

different definitions of leadership as there are persons who have attempted to define

the concept‖ (p.7). This proliferation of definitions for leadership is primarily due to

the complexity and elusiveness of the concept. Lassey (1976) described this

complexity by observing that ―there is no clear-cut agreement on the meaning of

Leadership for all circumstances‖ (p.15). In an attempt to resolve the discrepancy of

16

definitions, Chemers (1997) developed what he believed to be an umbrella definition

of Leadership that would earn the acceptance of a majority of theorists and

researchers. Chemer‘s definition describes leadership as ―a process of social influence

in which one person is able to enlist the aid and support of others in the

accomplishment of common task‖.

In the literature, leadership has been a subject of interest since the 18th

century.

However according to Chemers (1997), leadership had not been scientifically studied

until the early 20th

century .Bass (1981) contended that early theorists attempted to

identify leadership through a theoretical approach. He continued with this analysis to

suggest that researchers failed to develop sufficient theories because they could not

consider the interactions between individuals and situational variables. Bass compared

early researchers on leadership to their recent counter parts, concluding that the

former tried to develop comprehensive theories with theoretical bases and not on

empirical research.

In considering the differences between a manager and leader, many scholars agree to

differences, but widely disagree on what the differences are. Schon (1986) argued that

leadership and management are not synonymous terms. It is possible, Schon argued,

to be a leader without being a manager and also to be a manager without being a

leader. Davis and Newstrom (1985) viewed leadership as a part of management. They

argued that managers are concerned with planning and organizing activities while

leaders are involved in influencing others to enthusiastically pursue defined objectives

(p. 158). In this same vein Battern (1989) distinguished between a manager and a

leader by saying that managers push and direct while leaders pull and expect. Bass

(1985) argued that leadership is not only management nor is management only

leadership. According to Schon (1986), managers are generally expected not only top

17

manage, but also to lead. He suggested that they should be criticized if they fail to do

both. Davis and Newstorm (1985) suggested that excellent managers are also

expected to exhibit strong leadership qualities. Finally, Hunt (1991) asserted that the

difference between a manager and a leader is very similar to the

transformational/transactional leadership differences which will be discussed in detail

in subsequent sections.

2.2 Leadership Style Theories

In studying leadership, scholars and theorists have developed many different theories

and approaches in their attempts to explain leadership. It has been noted that until the

20th

century, research on leadership was not based on scientific inquiry (Chemers,

1997).The following sections include a review of the most popular theories and

approaches to leadership.

2.2.1The Great Man Theory

Early research on leadership attempted to identify those traits which differentiated

great persons in history from the general masses (Stogdill, 1974). The concern of 18th

and 19th

century philosophers focused on great men rather than on situations

(Spotts,1964).The Great Man Theory assumes that leaders are endowed with unique

qualities not to be found among the masses (Jabati,1997). It also assumes that ―leaders

are born, not made‖ (Kolb et al., p.239). This theoretical perspective is considered to

be the simplest, oldest, and most widely held notion of effective leadership. The

theory ignores the past achievements of an organization and magnifies the greatness

of executives in the organization. In other words, the theory implies that the success

of an organization depends entirely on the greatness of its executives ( Smith,

1946).According to this theory, it could be assumed that history was shaped solely

18

through the efforts of great men such as Moses, Churchchill, and Lenin( Bass ,1981).

In his study of 14 nations over a long period of time, Woods (1913) mentioned the

influence of the man in the making of a nation. He postulated that the man shaped the

nation in accordance with his abilities. The Great Man Theory, like others, is not

without weaknesses. Among other critics, Smith (1964) criticized the theory in

several ways. First, he asserted that great leaders do not have universal traits in

common. Second, he asserted that different traits are demanded and valued by

different societies. Smith argued further that in the same society, different

organizations demand different traits and that within an organization different

department would demand different traits.

2.2.2Trait Theory

During the first half of the 20th

century, trait theory was considered to be the

dominant theory of leadership (Chemers, 1997; Gordon, 1981).The trait approach

sought to determine the personal, psychological, and physical traits of strong leaders.

The theory held that if leaders were endowed with superior traits or characteristics

that differentiated them from their followers, it should be possible for these traits or

characteristics to be isolated (Bass, 1981).

In a classic review of the literature on leadership, Stogdill (1948) reviewed 124

studies of leadership traits. The purpose of the review was to examine the relationship

between the traits approach and effective leadership. As a result, Stogdill found that

there were some characteristics (intelligence, physical, social background, personality,

and task-related characteristics) that could be used to distinguish leaders from non-

leaders. His results revealed little or no link between other characteristics and

effective leaders. They also led to Stogdill to the realization of the importance of

19

situational variables in determining effective leadership. In general, Stogdill‘s

conclusion did not support the study of trait theory as the sole approach to leadership

research. He concluded that:

A person does not become a leader by virtue of the possession of some combination of

traits, but the pattern of personal characteristics of the leader must bear some

relevant relationship to the characteristics, activities, and goals of the followers.

Thus, leadership must be conceived in terms of the interaction of variables which are

in constant flux and change. The persistence of individual patterns of human

behaviour in the face of constant situational change appears to be the primary

obstacle encountered not only in the practice of leadership, but in the selection and

placement of leaders. (pp. 63-64).

The work of Stogdill and other researchers weakened the argument that trait theory is

a complete explanation of leadership. Hollander and Julian (1969) also criticized trait

theory because of its failure to determine the most important traits that could be

associated with effective leadership. In their argument, they also posited that

leadership effectiveness is not totally dependent on personality factors and that many

other factors, including situational factors, are also important. Gordon (1981)

summarized numerous studies that placed emphasis on leadership traits, citing their

inability to totally explain leadership success. Goulder (1950) reduced the downfall of

the trait approach to two key factors. First, leadership traits that were common to all

good leaders could not be identified. Secondly, it could not be documented that

leaders possess a set of characteristics that are not also possessed by followers.

The numerous shortcomings of the trait approach led many researchers to try to find a

better explanation of leadership ability (Griffin, 1990). Consequently, in the early

20

1950s, researchers had changed their focus from studying the personal characteristics

of leaders to the study of leader‘s observable behaviours (Schermerhorn et al.,

1982).Even so; this shift in the focus of research did not lead to the complete demise

of the trait theory school. The theory is still considered and applied in research in the

1990s (Bryman, 1996).

2.2.3 Behavioural Theory

During the 1950s, once researchers observed that the trait theory was not an adequate

approach to explain leadership effectiveness, they started to focus on behavioural

traits of leaders. Specifically, they began to focus on ―what the leader does and how

he or she does it‖ (Ivancevich et al., 1977, p. 277). This approach assumed that

successful leaders with a particular style of behaviour were expected to be fruitful for

leading persons and groups toward the achievement of specific goals, which

consequently led to high productivity and morale (Ansari, 1990). The behavioural

approach simply aimed to identify certain kinds of behaviours that leader‘s exhibit

and to determine the effects of such behaviours on subordinates. A composite of these

behaviours is referred to as leadership style. Ultimately, researchers were able to

isolate two contrasting styles of the behaviours of leaders, variously called initiating

structure versus consideration, autocratic versus democratic, task-oriented versus

socio-emotional, or production-cantered versus employee- centred( Trice et al.,

1993).

Robbins (1994) observed that behavioural style was the focus of a number of studies

in the decade of the 1950s. The following sections include reviews of the more

popular studies that were conducted at Ohio State University and the University of

Michigan. The Managerial Grid developed by Blake and Mouton is also included.

21

2.2.3.1The Ohio State University Studies

By the late 1940s, some of the most widely known studies had been conducted by

researchers at Ohio State University (OSU). The purpose of their studies was to

determine the types of behaviours leaders display and to determine the effects of

leadership style on work-group performance and satisfaction (Fleishman, 1957). At

the beginning, researchers developed a list of more than 1,000 leadership behaviours.

By using statistical analyses, this list was eventually narrowed into two categories,

initiating structure and consideration (Robbins, 1994).Initiating structure refers to the

behaviour that is concerned with defining and organizing the work, work relationships

and goals. Consideration refers to the behaviour that is concerned with mutual trust,

respect, and rapport between the leader and his subordinates. A leader of the

consideration category was described as one who frequently takes care of the needs of

subordinates. A leader of the consideration category was described as one who

frequently takes care of the needs of subordinates. A leader of the consideration

category was described as one who frequently takes care of the needs of subordinates.

A leader in the initiating category was described as one who was frequently

concerned with structure, task, and routine (Reitz, 1981).

In these studies of the behaviours of leaders, researchers at OSU could not adequately

identify the most effective leadership style. Moreover, the belief that a high

consideration and a high initiating structure lead to effective leadership could not be

proved true in all studies. The results varied, and no single style emerged as the best.

As a result, this approach also received much criticism from researchers in the field.

However, despite obvious weaknesses, the importance of these efforts should not be

diminished. The contributions of OSU provided significant building blocks in the

evolution of a theory that allowed for describing the behaviours of leaders. Indeed,

22

these studies served as the foundation upon which later research was built (Ivancevich

et al., 1977).

2.2.3.2 University of Michigan Studies

At the same time that the OSU researchers were conducting studies in leadership,

other studies on the same topic were in progress at the University of Michigan (UM).

The studies at UM sought to identify styles of leadership that resulted in increased

work-group performance and satisfaction. Similar to OSU, the UM‘s researchers

developed two distinct styles of leadership labelled as production-centred and

employee-centered leadership styles (Ansari, 1990).

The Michigan studies revealed that leaders with a production-centered leadership

style emphasized close supervision, legitimate and coercive power, routine, and

performance. This style was viewed as similar to the OSU dimension of initiating

structure. Leaders with an employee-centered leadership style were described as more

concerned about their subordinates as people. These leaders recognized the needs of

followers, such as welfare, advancement, and growth. Similarly, the OSU dimension

of consideration described like behaviours (Ivancevich et al., 1977).University of

Michigan researchers concluded that the employee-oriented leadership style would

lead to higher productivity and higher job satisfaction and that the production-

oriented leadership style would lead to lower productivity and lower job satisfaction

(Robbins,1994). As with their precursors, these studies were not above criticism. Hill

(1973) proposed that there was evidence to support the idea that the behaviour of a

leader varied from situation to situation. From these studies, another branch of

leadership research emerged-situational theories.

23

2.2.3.3 Managerial Grid

Another influential behavioural approach to leadership/management is the Managerial

Grid developed by Blake and Mouton (1964). This model focuses on task

(production) and employee (people) orientations of managers, as well as combinations

between the two extremes. A grid with concern for production on the horizontal axis

and concern for people on the vertical axis plots five basic management/leadership

styles (see Figure 2). The first number refers to a leader's production or task

orientation and the second, to people or employee orientation. It was proposed that

‗Team Management‘ - a high concern for both employees and production - is the most

effective type of leadership behaviour.

Figure 2: The Managerial Grid (Blake and Mouton, 1964)

24

2.3 Situational Leadership Style Theories

In the 1960s, behavioural theories were found to be insufficient approaches for

studying leadership (Ivancevich et al., 1977). By this time, researchers had come to

recognize that situational factors such as characteristics of leaders and subordinates,

the nature of the task, and group characteristics must be considered in the study of

leadership effectiveness (Ansari, 1990). The implication was that the determination of

successful leadership behaviour depended on the situation (Schermerhorn et al.,

1982). Situational or contingency theories held that there was no universal leadership

behaviour that could be applied to all situations. The current review will highlight the

main contingency theories: Fiedler‘s Contingency Theory, Path-Goal Theory, and the

Vroom-Yetton Model.

2.3.1 Fiedler‟s Contingency Theory

The first comprehensive contingency leadership theory was developed by Fred

Fiedler. The basic tenet of the theory is that group effectiveness is dependent upon the

proper match between the leader‘s personality or style and the demands of the

situation. The model further suggested that task-oriented and employee-oriented were

the two major styles of leadership. To determine whether the leader was task-oriented

or employee oriented, Fiedler developed an instrument called the Least-Preferred Co-

worker (LPC) Questionnaire (Fiedler, 1967). To arrive at an LPC score, the leader is

asked to think of the person with whom he or she has worked least well in

accomplishing some task, using a series of bipolar adjectives rated on an 8-point scale

(e.g., friendly-unfriendly, pleasant-unpleasant). A high LPC leader who describes his

least preferred co-worker in relatively positive concepts is people-motivated. A low

LPC leader who uses relatively negative concepts is task-motivated (Siegel & Lane,

25

1982). According to Fiedler, leaders who are characterized as task-oriented will be

effective in favourable and unfavourable situations. Also, Fiedler assumes that

employee-oriented leaders will be more effective in situations of moderate

favourability than in situations at either extreme. Favourableness was defined by

Fiedler as the degree to which the situation enabled the leader to exert influence over

his group. According to this definition, situational favourableness consists of three

elements: (1) affective leader-member relations, which refers to the degree of personal

relationship between the leader and group members; (2) task structure, which refers to

the extent to which the task requirements are clear and spelled out; and (3) leader

position power, which refers to the degree to which the leader has authority to reward

or to punish followers (Fiedler, 1967). Bryman (1996) pointed out that Fiedler viewed

these elements as changeable and viewed a person‘s personality as an unchangeable

factor. Therefore, the theory resolved that the work situation must be changed to fit

the leader rather than the opposite.

Although many researchers considered the work of Fiedler as a major contribution to

leadership studies, the theory faced criticism (Behling & Schriesheim, 1976).For one

thing, the validity of the model was questioned. The inconsistency between the results

and the model was noted (Bryman, 1986).

2.3.2 Path-Goal Theory

Path- Goal theory is a contingency model of leadership developed by Robert House

and based on the works of the expectancy theory of motivation and on the work of the

OSU group. This theory was promoted as an approach that could explain how a leader

might successfully enhance the satisfaction and performance of his subordinates. The

26

term path-goal is used to indicate the role of a leader in making an effective link

between the follower‘s personal goals and the work goals (House, 1971).

The theory was built upon two propositions. The first proposition was that the

behaviour of the leader would be acceptable and satisfying to subordinates to the

extent that the subordinates perceived it as either an immediate source of satisfaction

or as an instrumental source to future satisfaction. The second proposition was that the

behaviour of the leader would be motivational to the extent that (a) it made the

satisfaction of subordinates contingent upon effective performance and (b) that it

complemented the work environment of subordinates by providing guidance, clear

direction, support, and reward for effective performance. For the purpose of testing

these propositions, House devised four types of leader behaviour: (a) directive, (b)

supportive, (c) achievement-oriented, and (d) participative. According to House, the

use of any of these types of leadership would be situation-dependent.

2.3.3 The Vroom –Yetton Model

Vroom and Yetton (1973) developed a model that was designed to help a leader

through a rational process to choose an appropriate leadership style that fits with a

given situation. The basic premise of the model is that the degree to which the leader

should share decision- making power with subordinates depends on the situation. The

model identified five leadership styles, each of which reflects a behavioural option for

the leader:

AI: The leader makes the decision alone.

AII: The leader asks for information from subordinates but makes the decision alone.

Subordinates may or may not be informed about the situation.

27

CI: The leader shares the situation with the individual. The leader asks subordinates

for information and evaluation, but the leader alone makes the decision.

CII: The leader and subordinates meet as a group to discuss the situation, but the

leader makes the decision.

GII: The leader and subordinates meet as a group to discuss the situation, and the

group (which includes the leader) makes the decision.

Vroom and Yetton (1973) argued that the ultimate effectiveness of decisions could be

judged on the following factors: (1) the quality or rationality of the decision, (2) the

acceptance of the decision by employees, and (3) the amount of time required to make

the decision. The model has been criticized as complex and cumbersome (Field,

1979). However, the work of Vroom and Yetton has been supported by some

researchers and considered as a useful approach of leadership (Landy, 1985;

Schermerhorn, Jr., 1982).

2.4 Recent Theories of Leadership Styles

A new theory of leadership emerged in the 1970s. Transactional and Transformational

leadership styles were first introduced by Burns (1978). A few years later, Bass

(1985) expanded the theory and came up with the Multifactor Leadership

Questionnaire (MLQ). The full range of leadership models that was introduced by

Avolio and Bass (1991) gave more advancement to the theory. This theoretical model

included three styles of leadership: (a) transactional, (b) transformational, and (c)

Laissez- Faire. According to Hartog et al. (1997), Bass‘s theory or the new leadership

approach ―integrates ideas from trait, style, and contingency approaches of leadership

and also incorporates and builds on work of sociologists such as Weber (1947) and

28

political scientists such as Burns (1978)‖(P.19).The three styles of leadership

mentioned above are essential elements in this research and are discussed in greater

detail below.

2.4.1Transactional and Transformational leadership Styles

In distinguishing between transactional and transformational leadership.Burns (1978)

noted that transactional leadership refers to a type of leadership that is based on an

exchange relationship between leader and follower.Burns felt that this exchange could

take different economic, political, or psychological forms. Such leadership, he argued,

does not bring leaders and followers together to pursue higher purposes. According to

Bass (1990), transactional focus on the clarification of task requirements and the

specification of contingent rewards. Transformational leaders interact with their

followers in such a way that both leader and followers raise each other to higher

levels of motivation and morality (Burns, 1978).In Leadership and Performance

beyond Expectations, Bass (1985) expanded the theory of transactional and

transformational leadership. While Burns (1978) had focused on the application of the

theory in political setting, Bass (1985) was concerned with its application to business

organisations. According to Bass (1985), transformational leaders are those who

motivate followers to do more than originally was expected. That could be achieved,

Bass argued,through anyone of the following steps: (1) increasing followers

awareness and consciousness of the importance of designated outcomes and the steps

that lead to these outcomes, (2) encouraging followers to transcend their own self

interests , and (3) expanding or altering followers needs and wants according to

Maslow‘s Hierarchy of Needs .In distinguishing between the Burns and Bass theories

of transformational leadership ,Carlson and Perrewe (1995) stated that:

29

“The main difference between these two theories was that Burns restricts this type of

leadership only to leaders who appeal to positive moral values. On the other hand,

Bass argues that a transformational leader is one who increases commitment

regardless of the final effect on the follower. Regardless, when transformational

leadership is enacted, members of organisations no longer seek merely self interest,

but that which is beneficial to the organisation as a whole.”(p.832)

Fiedler and House (1988) proposed that transformational theories seek to address the

actions of leaders that cause followers to change their values, needs, goals, and

aspirations. In making the distinction between transactional and transformational

leadership forms, Burns (1978) viewed these leadership forms as independent

dimensions. In other words, Burns (1978) viewed Transactional and Transformational

forms of leadership as polar constructs while Bass (1985) viewed them as

complementary constructs. Bass viewed successful leaders as both transactional and

transformational who differ in degrees. In his conclusion, Bass expressed the notion

that ―to be transactional is the easy way out; to be transformational is the more

difficult path to pursue‖ (p.26)

Transactional behaviours involve structuring performance environment to assist

subordinates in achieving organizational objectives and receiving rewards, while

transformational behaviours focus on creating changes in followers` values, self-

perceptions, and psychological needs (Fein et al, 2010). Generally speaking, studies

conducted on transactional and transformational leadership have added important

value into the nature of leadership effectiveness.

In this content, the researcher should differentiate between two concepts: transactional

leadership and transformational leadership. In fact transactional leadership is a

30

process in which the relationship leader-follower is reduced to simple exchange of a

certain quantity of work for an adequate price. Contrary to this, transformational

leadership is far more complex process, the realization of which requires more

visionary and more inspiring figures (Bowditch and Buono, 1990).

Different empirical studies have been conducted to support the effects or

transformational leaders‘ behaviours. A previous study showed that transformational

leadership is positively related to employee satisfaction and to job performance (Bass,

1995). Ozaralli (2003) found that transformational leadership contributes to the

prediction of subordinates‘ self-reported empowerment. Transformational leadership

enhances organizational citizenship behaviours (Koh et al, 1995) and employees‘

commitment (Barling et al, 1996). In addition, transformational leadership mediates

the relationship between leaders‘ emotional intelligence and group cohesiveness

(Wang and Huang, 2009).

2.4.2 Transactional Leadership Style Dimensions

Bass (1989) suggested that transactional leadership involves two distinct dimensions:

(1) the use of contingent rewards, which implies that leaders reward followers in

exchange for attaining the specified performance levels; and (2) management by

exception (MBE), which has the dimensions of Active and Passive. In Active MBE,

leaders monitor their follower‘s performances and take corrective actions as

necessary. In Passive MBE, leaders do not intervene until mistakes or problems occur,

then leaders take corrective actions.

2.4.3 Transformational Leadership Style Dimensions

31

In 1995, a new version of the Multi-factor Leadership Questionnaire (MLQ) was

developed to measure transactional, transformational, and laissez-faire styles of

leadership. For this version, Bass and Avolio (1995) listed five dimensions that refer

to transformational leadership characteristics. The term ‗transformational leadership‘

was first coined by Downton [20], and then emerged as an important approach to

leadership research by Burns [9]. Based on these early works, several theories of

transformational leadership [6, 10] were generated to advance this new leadership

concept. These works broadened the traditional concept of leadership as a relationship

of economic exchange that offers rewards or compensation for a desired behaviour by

viewing leadership as a change process and by exploring the impact of leader

behaviour on followers‘ values, beliefs and higher-order needs [11]. Specifically,

Bass [6] described transformational leadership as leader behaviours that stimulate and

inspire followers to achieve extraordinary outcomes by raising the level of motivation

and morality in both themselves and their followers. Transformational leaders are

effective in promoting organizational commitment by aligning goals and values of the

follower, the group, the leader, and the organization [10, 12, and 21]. Its strong,

positive effects on followers‘ attributes and commitment will then motivate followers

to reach their fullest potential and exceed expected performance [11]. Bass and his

colleagues further conceptualized transformational leadership into four components:

idealized influence; inspirational motivation; intellectual stimulation; and

individualized consideration. Each of the components helps build followers‘

commitment in different ways [6, 19, and 22]. The following texts discuss these

components and their impact on followers‘ organization commitment in detail.

2.4.3.1 Idealized influence, also called charisma, describes transformational leaders

who behave as role models for their followers. Followers usually perceive these

32

leaders as having extraordinary capability, persistence and determination, as well as

high standards of moral and ethical conduct. They deeply admire, respect and trust

these leaders, and thus identify with leaders‘ goals, interests and values [19, 21].

2.4.3.2 Inspirational motivation occurs when leaders motivate and inspire those

around them by providing challenges and meaning to their work. They provide

visions of what is possible and how to attain these goals. More specifically, these

leaders get followers involved in envisioning the future, and then they promote

positive expectations about what needs to be done and demonstrate commitment to

the shared vision[19]. With this dimension, leaders are able to promote followers‘

emotional commitment and excitement to a mission [11].

2.4.3.3 Intellectual stimulation encourages followers to be creative and innovative. In

practice, transformational leaders help others to think about old problems in new

ways, and to continuously question and develop their own beliefs, assumptions and

values. These leaders also jointly work with their followers to deal with problems in

innovative ways. The pride in actions of all those involved and joint success in

overcoming obstacles will reinforce organizational commitment of followers [11, 19].

2.4.3.4 Individualized consideration means understanding and sharing others‘

concern and developmental needs, and treating each individual follower uniquely.

Leaders act as coaches and advisors to not only identify and satisfy each individual

follower‘s current needs, but also to attempt to expand and elevate the needs in order

to assist followers become fully actualized. By emphasizing on followers‘ personal

career needs and providing them with a sense of increased competence to carry out

duties, leaders could further enhance followers‘ commitment [10, 11]. A number of

studies have empirically validated the positive effects of transformational leadership

on followers‘ organizational commitment. For example, transformational leadership

33

was found to be significantly related to organizational commitment and organizational

citizenship behaviour in a study of 864 teachers in Singapore [15]. Rai and Sinha [23]

conducted a test of 261 middle managers from public banking sector in India, and

identified that managers‘ score on transformational leadership accounted for

significant amounts of variances in their commitment to the organizations. In a similar

vein, positive relationships between all components of transformational leadership

and followers‘ commitment were also identified with a total of124 manager from

banking and food industries in U.S. [14]. 124 managers from banking and food

industries in U.S. [14] in the context of family business, however, little empirical

evidence has been provided to support the positive relationship between

transformational leadership and followers‘ organizational commitment [16].

Transformational leaders have charisma, inspiration and intellectual simulation,

inspiration and intellectual simulation (Conger, 1999). Charisma generates the pride,

faith and respect that leaders encourage their workers to have in themselves, their

leaders and their technological organization, while inspiration is the ability to

motivate followers through communication of high-technological expectations

(Garcia-Morales, Matias-Reche and Hurtado- Torres, 2008). Intellectual simulation

refers to the leaders‘ behaviour that leads to promoting employees' intelligence,

knowledge and learning so that they can be innovative.

Transformational leaders have charisma, inspiration and intellectual simulation,

inspiration and intellectual simulation (Conger, 1999). Charisma generates the pride,

faith and respect that leaders encourage their workers to have in themselves, their

leaders and their technological organization, while inspiration is the ability to

motivate followers through communication of high-technological expectations

(Garcia-Morales, Matias-Reche and Hurtado- Torres, 2008). Intellectual simulation

34

refers to the leaders‘ behaviour that leads to promoting employees' intelligence,

knowledge and learning so that they can be innovative.

Transformational leader raises aspiration and shifts people and organizational systems

into new, high-performance patterns. The presence of transformational leadership is

reflected in followers who are enthusiastic about the leader and her or his ideas

(Schermerhorn, 2008). Furthermore, transformational leaders inspire their followers

to think more than their own aims and interests and to focus on greater team,

organizational, national, and also global objectives (Jandaghi et al, 2009).

While transactional and transformational leaders were described as active leaders

(Yammarino & Bass, 1990), laissez- faire leaders were viewed as inactive. Laissez-

faire leaders are characterized by avoiding responsibility and decision–making.

Although such a style under certain conditions (for example, with a group of scientists

or college professors) will be effective (Sutermeister, 1969; Williams, 1978), it was

thought that this particular style of leadership indicated, in fact, the absence of

leadership. Therefore, this type of leadership was considered to be an inappropriate

way to lead (Hartlog et al., 1997).

2.4.4 Laissez-Faire Leadership Style

While transactional and transformational leaders were described as active leaders

(Yammarino & Bass, 1990), laissez-faire leaders were viewed as inactive. Laissez-

faire leaders are characterized by avoiding responsibility and decision–making.

Although such a style under certain conditions (for example, with a group of scientists

or college professors) will be effective (Sutermeister, 1969; Williams, 1978), it was

thought that this particular style of leadership indicated, in fact, the absence of

leadership. Therefore, this type of leadership was considered to be an inappropriate

way to lead (Hartlog et al., 1997).

35

2.5 Transformational Leadership Style and Employee Commitment

Organization will be higher, Lio (1995) concluded that ―workers‘ organizational

commitment is significantly correlated to their perceived job security‖ (p.241).

Management styles can influence the commitment level of employees. Koopman

(1991) studied how leadership styles affected employees and found those employees

who favoured their manager‘s style also favoured the organization more. Though

there was no direct connect between commitments, it could be argued that this would

then affect their levels of commitment to the organization. Nierhoff et al (1990) found

that the ―overall management culture and style driven by the top management actions

are strongly related to the degree of employee commitment‖ (p. 344). These

correlations bring to light the importance of having strong managers and their roles in

the overall organization.

Eisenberger et al (1990) discuss that those employee‘s who feel that they are cared for

by their organization and managers also have not only higher levels of commitment,

but that they are more conscious about their responsibilities, have greater involvement

in the organization, and are more innovative. Managers and organizations must

reward and support their employees for the work that they do because this perceived

support allows for more trust in the organization.

2.6 Summary of Leadership Style Theories

Since the 18th

century, leadership has been a subject of interest. However, the field of

leadership had not been scientifically studied until the early 20th

century. Early

research on leadership attempted to identify leadership through a theoretical approach.

The Great Man Theory assumes that leaders are endowed with unique qualities not to

be found among the masses. The trait theory, which was considered to be the

36

dominate theory of leadership during the first half of the 20th

century, sought to

determine the personal, psychological, and physical traits of strong leaders. During

the 1950s, the theoretical approach was abandoned due to its inability to explain

leadership effectiveness. As a result, the behavioural theory represented by the studies

of Ohio State University and the University of Michigan had taken place. The

behavioural approach simply aimed to identify certain kinds of behaviours that

leader‘s exhibit and to determine the effects of such behaviours on subordinates. In

the 1960s, leadership researchers focused their attention on the situational factors and

their effects on leadership effectiveness. Situational or contingency theories held that

there was no universal leadership behaviour that could be applied to all situations. The

full range of leadership that included three styles (transformational, transactional, and

laissez-faire) is a recent development in the field. This approach integrated ideas from

trait, behavioural, and situational theories and built on these. Transformational leaders

inspire followers to rise above self-interest for the greater good of the group and to do

more than originally was expected. Transactional leaders focus on the clarification of

task requirements and the specification of contingent rewards.

2.7 Theoretical Framework on Leadership Style

The broad fields of this research are Transformational and Transactional leadership.

The transformational leadership has five dimensions or factors that build the subject

and transactional leadership has 3 dimensions or factors that build the subject .(The

five factors of transformational leadership styles are: Idealized influence {attributes

and behaviours}, inspirational motivation, intellectual stimulation, encourage

innovative thinking and individualized consideration). (The three factors of

transactional leadership are: MBE-A: Management-By-Exception: Active, MBE-P:

Management-By-Exception: Passive and CR: Contingent Reward).

37

The dependent variable ―employee commitment‖ relies on the factors of

transformational and transactional leadership, which are the independent variables in

the Research Study. In today‘s competitive world, it is difficult for organization to

compete or even to survive without satisfying the most valued asset of the

organization and deriving commitment of the employees towards their Leader and

organization. Since yet more emphasis has been given to the outcome of

transformational and transactional leadership and less to the demographic variables

which plays the role of another set of independent variables. Hence, investigation of

subordinate‘s commitment with the leader and in turn towards the organization from

the perspectives of these two leadership styles is central to this research.

Model of theoretical framework on Leadership Styles

Figure 3. Source: Based on the concepts of Bass and Riggio, 2006

Transformational

Leadership Style

Transactional

Leadership

Style

Factors

IA

IB

IM

IS

IC

IS

IC

Determinants

Builds Trust

Acts with Integrity

Inspires others

Innovative thinking

Coaches’ people

EMPLOYEE

COMMITMENT

Factors

MBE-P

MBE-A

CR

CR

Determinants

Passive/Avoidant

Active

Close monitoring of

behaviours and

actively setting

standards.

38

2.8 Leadership styles within academic institutions:

According to Bryman (1992), transformational form of leadership has only recently

become the subject of systematic inquiry in educational contexts, although it has been

studied extensively within business settings. The studies of leadership within an

educational context are important for several reasons. Educational institutions,

especially Higher Education Institutions, which use public funds, are under scrutiny

and are pressurized to produce value for money performance (Bess and

Goldman,2001; Pounder 2001). Expectations are that these institutions should operate

as ―business units‖ making profit. This has led to a tendency to transfer commercial

business models into the educational arena.

As Bess and Goldman (2001) have put it, a new managerial culture, which promotes

economic efficiency and bottom line results, dominates both policy and practice often

overriding most concerns for social goals, quality of teaching and research and

internal human relations, is being adopted in higher education. As a result leaders

within academic institutions struggle to respond to business interests as secondary to

academic freedom.

As a sub-discipline or content area of leadership studies, educational leadership is still

in its infancy. Most of the empirical studies conducted have been done in schools with

a limited number of studies concentrating on higher education (Brown & Moshavi,

2002). While it is acknowledged that the organizational cultural legacies and

leadership within schools and higher education institutions may be different, Bess and

Goldman (2001) point out that professor and teachers have much in common. Both do

work with a significant cognitive and intellectual content, and have substantial

independence and autonomy where they work closely with students and associates

39

with their own peers. Professors and teachers enjoy a tenure system that provides job

security and a buffer that characterizes their profession and the leadership context.

Based on Bess and Goldman‘s (2001) arguments, it is assumed that the common goal

of education pursued by both types of institution might allow for comparisons or

generalizations from one to another.

Educational leadership researchers have drawn selectively from the broader

perspectives or approach to leadership and concentrated mainly on transformational

and charismatic leadership. A review of the literature indicates a limited number of

papers focusing on the efficacy of transformational and transactional leadership in the

context of higher education. In a study of principals of 89 high schools, Koh, Steers

and Telborg (1995), found that transformational leadership behaviours hold an

additive effect on outcomes such as satisfaction and effectiveness. In a more recent

study of 440 university faculty members, Brown and Moshavi (2002) showed that the

idealized influence or charisma factor of transformational leadership was significantly

predictive of desired organizational outcomes. Using the MLQ, they found that the

aggregated measure of transformational leadership is significantly related to the

faculty‘s satisfaction, their perceptions of their organization‘s effectiveness and their

willingness to give extra effort.

Other authors who also believed that leadership is essential in educational institutions

include Rowley (1997) argues that the type of leadership exercised in academic

institutions, which is academic leadership, is unique to higher education. He indicates

that this leadership extends beyond the organization into the wider community served

by higher education and is central to academic excellence. Such Leadership is

important in managers at all levels in higher education and is not only vested in top

management.

40

Ogshabemi (2001) looked at the level of satisfaction that academics derive from the

behaviour of their line managers. Line managers in higher education could be of head

of the department, a dean of a faculty, director of a school or unit or the Vice

chancellor of the institution. He found that approximately half (52.4%) of university

teachers are satisfied with the behaviour of their line managers while about a third

(34.4%) is dissatisfied. Through regression analysis, he found that the age and the

length of service in higher education were important in explaining an academic‘s

satisfaction or dis-satisfaction with the behaviour of their line managers.

The literature review of leadership in academic institution indicates that leadership is

as essential as it is in other organizations and that it has an influence on employee‘s

work attitudes.

2.9 Employee Commitment:

No organizations in today‘s competitive world can perform at peak levels unless each

employee is committed to the organisation‘s objectives and work as an effective team

member. It is no longer good enough to have employees who come to work faithfully

everyday and do their jobs independently. Employees now have to think like

entrepreneurs while working in teams, and have to prove their worth. However they

also want to be a part of successful organisation which provides a good income and

the opportunity for development and secured employment.

In the past, organizations secured the loyalty of their employees by guaranteeing job

security. However many organizations have responded to competitive pressures by

downsizing, restructuring and transformation and thus created a less secure

organizational climate. A growing number of employees therefore feel that they are

victims of broken promises. One of the challenges facing modern organizations

41

involves maintaining employee commitment in the current business environment.

These organizations can achieve by developing a new ―work contract‖. In today‘s

workplace, employees face more ambiguity in their daily activities and decreased job

security (Bergmann, Lester, De Meuse and Grahn, 2000). With no assurance of

continued employment, workers have now raised their expectations in other areas. For

instance, the employees expect employer to demonstrate their commitment in terms of

pleasant working conditions, access to training and development, provision of a safe

working environment and a balance between work and employee‘s commitment

outside the workplace.

Organizations are faced with ever increasing competition and as they prepare for new

challenges, one of the key components of survival is maintaining and upgrading the

organization‘s ability to use human resources effectively and efficiently. According to

Katz (1964), employee behaviour essential for organizational effectiveness includes

employee‘s (1) entering and remaining with the organisation, (2) carrying out specific

role requirements and (3) engaging in innovative and spontaneous activity that goes

beyond role prescriptions. The appointment of good workers is thus critical, but of

even greater significance is the organisation‘s ability to create a committed workforce.

Hence the need for managers to understand the concept of commitment – what it is

how it operates, and most importantly, which behaviours are displayed by employees

committed to the organisation?

The importance of employee commitment is quite evident if one considers prior

research into the relationship between commitment and job satisfaction (Bateman and

Organ, 1983), trust in and loyalty to the leader (Deluga, 1994) and perception of

supervisor‘s fairness (Nierhoff & Moorman 1993). It is an important concept in the

management and behavioural sciences. It is concerned with the relationship between

42

an organization and its employees. The roots of organizational commitment of

employees go back to the human relations movement of the early to mid-20th

century.

At that time, the concept was reflected in focusing on the feelings and behaviours

among employees toward the organizations they worked for (Baruch, 1998).

The importance of organizational commitment of employees refers to its presumed

relationship with important organizational outcomes such as turnover, absenteeism,

and performance (Mowday, Porter, & Steers, 1982). Committed employees are

expected to identify with and to feel loyal toward their organization; to feel the

importance of the agency‘s values, goals, and mission; and also to feel that their job

responsibilities are compatible with their personal values and ethics (Romzak, 1990).

It has been reported that ―Organizational commitment should be of great interest to

managers, because employees with strong commitment tend to be highly productive

and loyal, while those with low levels tend to have higher incidence of turnover,

absenteeism, stress-related health claims, and other workplace problems‖ (Ward &

Davis, 1995, p.35). In addition to all of this, committed employees are thought to act

without basing their actions on any calculation of what they have invested.

Committed employees are also thought to believe that the values they share with the

organization will provide them with a sense of personal satisfaction (Romzek,

1990).Buchanan (1974a) viewed commitment as ―no less than a precondition for

successful social organization‖ (p.340). In general, for both individuals and agencies,

employee commitment is believed to be a positive factor (Romzek, 1990).

Many authors associate the development of organisational commitment with

variables such as the personal characteristics of the employee, organisational

characteristics and work characteristics (Mowday et al.,1979; Nijhof et al., 1992).The

influence of personal characteristics on organisational commitment has been

43

extensively studied with the focus on demographic variables such as age, gender,

occupational status, length of service, salary, internal promotion period, marital status,

educational level,( Nijhof et al .,1992). The organisational characteristics that have

been studied include leadership and management style and various Demographic

details. In our attempt to understand organisational commitment, we need to

understand how these various variables fit together and lead to the development of

organisational commitment.

In the literature, there is no universal definition of organizational commitment of

employees. Researchers with different theoretical perspectives have defined the

concept of employee commitment in various ways. Buchanan (1974b) observed that

there is little consensus about the definition of commitment or its measurement.

Morrow (1983) reviewed the literature on commitment that has been written since

1965 and found more than 25 employee commitment concepts and measures.

Grouping these concepts and measures, Morrow discerned five distinct types:

commitment to work, the organization, the job, the career, and the union. The present

study was concerned with only commitment to the organization.

Organizational researchers agree that a consensus has not yet been reached over the

definition of organizational commitment of employees (Scholl, 1981; Benkhoff,

1997a; Mowday 1998; Suliman and Isles, 2000a, 2000b; Zangaro, 2001). Scholl

(1981) indicates that the way employee commitment is defined depends on the

approach to commitment that one is adhering to. Accordingly employee commitment

is defined either as an employee attitude or as force that binds an employee to an

organization. According to Suliman and Isles (2000a), there are currently four main

approaches to the conceptualization and exploring organizational commitment. There

44

is the attitudinal approach, the behavioural approach, the normative approach and the

multi-dimensional approach.

Mowday et al. (1979) pointed out that most researchers‘ defined organizational

commitment in terms of either a behavioural perspective or an attitudinal perspective.

Alpander (1990) distinguished between the attitudinal and behavioural approaches to

commitment and described how commitment has been viewed differently from the

two perspectives. The former, Alpander (1990) argued, views commitment as an

internal state, but the latter views it as ―the state of being bound to the organization by

personal investment‖ (p.53). Mowday et al. (1982) proposed that a cyclical

relationship exists between the two types in which commitment attitudes lead to

committing behaviours which, in turn, reinforce commitment attitudes. An important

observation is that, throughout the literature, commitment has been viewed as a more

active and positive attitude toward the organization from both perspectives (Johnston

et al., 1990).This study focused on employee commitment as an attitude.

The attitudinal approach views commitment largely as an employee attitude or more

specifically as a set of behavioural intentions. The most widely accepted attitudinal

conceptualization of organizational commitment is that by Porter and his colleagues

who define organizational commitment is that by Porter and his colleagues who

define organizational commitment as the relative strength of an individual‘s

identification with and involvement in a particular organization (Mowday et al.,

1979).They mention three characteristics of employee commitment: (1) a strong

belief in and acceptance of the organization‘s goals and values, (2) A willingness to

exert a considerable effort on behalf of the organization and (3) a strong intent or

desire to remain with the organization. Within this approach, the factors associated

with commitment include positive work experiences; personal characteristics and job

45

characteristics while the outcomes include increased performance, reduced

absenteeism and reduced employee turnover.

The second approach refers to organizational commitment of employee‘s behaviour

(Suliman and Isles, 2000b; Zangaro, 2001). The focus of research according to the

behavioural approach is on the overt manifestations of commitment. The Behavioural

approach emphasizes the view that an employee continues his/her employment with

an organization because investments such as time spent in the organization,

friendships formed within the organization and pension benefits, tie the employee to

the organization. Thus an employee become committed to an organization because of

―sunk costs‖ that is too costly to lose. Becker‘s (1960) side bet theory forms the

foundation of this approach. According to him employee commitment is continued

association with an organization that occurs because of an employee‘s decision after

evaluating the costs of leaving the organization. He emphasizes that this commitment

only happens once the employee has recognised the cost associated with

discontinuing his association with the organization. In a similar vein, Kanter (1968)

defined organizational commitment as ―profit‖ associated with continued participation

and a ―cost‖ associated with leaving. That is, an employee stands to either profit or

lose depending on whether he/she chooses to remain with the organization. Whereas

the attitudinal approach uses the concept of commitment to explain performance and

membership, the behavioural school uses the concept of ―investments‖ as ―a force that

ties employees to organizations‖, to explain organizational commitment (Scholl,

1981).

The Normative approach is the third approach, which argues that congruency between

employee goals and values and organizational aims make the employee feel obligated

to his/her organization (Becker, Randall, & Reigel 1995).From this point of view,

46

organizational commitment has been defined as ―the totality of internalized normative

pressures to act in a way which meets organizational goals and interests‖ (Weiner,

1982).

The last approach, the multidimensional approach, is relatively new. It assumes that

organizational commitment is more complex that emotional attachment, perceived

costs or moral obligations. This approach suggests that organizational commitment

develops because of the interaction of all these three components. Several studies

according to Suliman and Isles (2000b) have contributed to this new

conceptualization of organizational commitment. They credit Kelman (1958) as the

earliest contributor to the multidimensional approach. Elman lay down the foundation

for the multidimensional approach when he linked compliance, identification and

internalisation to attitudinal change. Another earlier contributor is Etzioni (1961) who,

as cited by Zangaro (2001), describe organizational commitment in terms of three

dimensions; moral involvement, calculative involvement and alimentative

involvement, with each of these dimensions representing an individual‘s response to

organizational powers. Moral involvement is defined as a positive orientation based

on an employee‘s internalisation and identification with organisational goals.

Calculative involvement is defined as either a negative or a positive orientation of low

intensity that develops due to an employee receiving inducements from the

organization that match his/her contributions. Alienative involvement on the other

hand is described as a negative attachment to the organization. In this situation,

individuals perceive a lack of control or of the ability to change their environment and

therefore remain in the organization only because they feel they have no other

options. Etzioni‘s three dimensions incorporate the attitudinal, behavioural and

normative aspects of organizational commitments of employees.

47

O‘Reilly and Chatman (1986) also support the notion that organizational commitment

should be seen as the multi-dimensional construct. They developed their multi-

dimensional approach based on the assumption that commitment represents an

attitude toward the organization, and the fact that various mechanisms can lead to

attitudes development of attitudes. Taking Kelman‘s (1958) work as their basis, they

argue that commitment could take three distinct forms that they called compliance,

identification and internalisation. They believed that compliance would occur when

attitudes and corresponding behaviours are adopted in order to gain specific rewards.

Identification would occur when an individual accepts influence to establish or

maintain a satisfying relationship. Lastly, internalization would occur when the

attitudes and behaviours that one is encouraged to adopt are congruent with one‘s own

values.

The most popular multi-dimensional approach to employee commitment is that of

Meyer and his colleagues. In 1984, Meyer and Allen, based on Becker‘s side-bet

theory, introduced the dimension of continuance commitment to the already existing

dimension of affective commitment. As a result, organizational commitment of

employees was regarded as a bi-dimensional concept that included an attitudinal

aspect as well as behavioural aspect. In 1990 Allen and Meyer added a third

component, normative commitment to their two dimensions of organizational

commitment. They proposed that commitment as a psychological attachment may

take the following three forms: the affective, continuance and normative forms.

Meyer and Allen (1984) defined affective commitment as ―an employee‘s emotional

attachment to, identification with, and involvement in the organization‖, continuance

commitment as ―commitment based on the costs that employees associate with

leaving the organization‖, and normative commitment as ―an employee‘s feelings of

48

obligation to remain with the organization‖. Each of these three dimensions represents

a possible description of an individual‘s attachment to an organization.

Inverson and Buttibeig (1999) examined the multidimensionality of employee

commitment. Based on a sample of 505 Australian male fire fighters; they found that

four dimensions that are affective, normative, low perceived alternatives, and high

personal sacrifice, best represent organizational commitment.

Meyer and Herscovitch (2001) have pointed out that there are differences in the

dimensions, forms or components of commitment that have been described in the

different multi-dimensional conceptualizations of organizational commitment. They

attribute these differences to the different motives and strategies involved in the

development of these multidimensional frameworks. These included attempts to

account for empirical findings (Angle & Perry 1981), distinguished among earlier one

dimensional conceptualizations (Allen and Meyer, 1990; Jaros, Koehler & Sincich,

1993), ground commitment within an established theoretical context (O‘ Reilly and

Chatman, 1986), or some combination of these (Mayer & Schoorman 1992). Meyer

and Herscovitch (2001) have tabulated these different dimensions for easier

comparison as shown in Table.1

Table 1. Dimensions of Employee Commitment within Multidimensional Models

1 Angle & Perry(1981)

Value Commitment

Commitment to stay

―Commitment to support the goals of the

organizations‖.

―Commitment to retain their Organizational

membership‖.

2 O‘Reilly and Chapman

(1986)

Compliance

―Instrumental involvement for specific extrinsic

rewards‖.

―Attachment based on desire for affiliation with the

49

Identification

Internalization

organization‖.

―Involvement predicted on congruence between

individual and organizational values‖.

3 Penley and Gould (1988)

Moral

Calculative

Alienative

―Acceptance of and identification with

organizational goals‖.

―A commitment to an organization which is based

on the employee‘s receiving inducements to match

contributions‖.

―Organizational attachment which results when an

employee no longer perceives that there are

rewards commensurate with investments; yet

he/she remains due to environmental pressures‖.

4 Meyer and Allen (1991)

Affective

Continuance

Normative

―The employee‘s emotional attachment to,

identification with and involvement in the

organization‖.

―An awareness of the costs associated with leaving

the organization‖.

―A feeling of obligation to continue employment.‖

5 Mayer and

Schoorman(1992)

Value

Continuance

―A believe in and acceptance of organizational

goals and values and a willingness to exert

considerable effort on behalf of the organization‖

―The desire to remain a member of the

organization‖.

6 Jaros et al.(1993)

Affective

Continuance

Moral

―The degree to which an individual experiences a

sense of being locked in place because of the high

costs of leaving‖.

―The degree to which an individual is

psychologically attached to an employing

organization through internalization of its goals,

values and missions‖.

50

Mowday et al. (1979) pointed out that most researchers defined employee

commitment in terms of either a behavioural perspective or an attitudinal perspective.

Alpander (1990) distinguished between the attitudinal and behavioural approaches to

commitment and described how commitment has been viewed differently from the

two perspectives. The former, Alpander (1990) argued, views commitment as an

internal state, but the latter view it as ―the state of being bound to the organization by

personal investment‖ (p.53). Mowday et al. (1982) proposed that a cyclical

relationship exists between the two types in which commitment attitudes lead to

committing behaviours which, in turn, reinforce commitment attitudes. An important

observation is that, throughout the literature, commitment has been viewed as a more

active and positive attitude toward the organization from both perspectives (Johnston

et al., 1990). This study focused on employee commitment as an attitude.

One of the aims of this study is to determine how employee‘s perceptions and

expectations of Leadership Styles followed by their Heads influence their

commitment, and the meaning of the concept will therefore be explained with

reference to Meyer and Allen‘s one of the three component‘s conceptualisation of

organisational commitment. The importance of employee commitment, the factors

affecting it and how organisations should build employee commitment will also be

discussed.

Organisational commitment researchers can be divided into two major camps, those

who view organizational commitment as an attitude and those who view it as

behaviour (Meyer & Allen 1991; Jaros et al., 1993). Meyer and Allen (1991) regard

attitudinal commitment as the way people feel and think about their organisations,

while behavioural commitment reflects the way individuals have become locked into

the organisation. The attitudinal approach regards commitment as an employee

51

attitude that reflects the nature and quality of the linkage between an employee and an

organisation (Meyer and Allen, 1991).

2.10 Conceptualization of Commitment

O‘Reilly and Chatman (1986) developed their multi-dimensional framework on the

basis of the assumption that commitment represents an attitude towards the

organization. According to these authors, commitment takes on three distinct forms,

which they labelled compliance, identification and internalisation.

Compliance occurs when attitudes and corresponding behaviours were adopted in

order to gain specific rewards .Identification occurs when an individual accepts

influence to establish or maintain a satisfying relationship. Finally internalization

occurs when influence is accepted because the attitudes and behaviours one is being

encouraged to adopt are congruent with existing values. Employees thus become

committed to organizations with which they share values. Figure 4 provides a

schematic representation of a general model of workplace commitment.

P.T.O

52

GENERAL MODEL OF WORKPLACE COMMITTMENT.

EMPLOYEE BEHAVIOUR

Figure 4. Source: Adapted from Meyer & Herscovitch (2001: 320)

In conclusion, employee commitment is defined as an individual‘s identification with

and involvement in a particular organization. It is characterized by a strong belief in

and acceptance of the organization‘s goals and values, a willingness to exert

considerable effort on its behalf, and a strong desire to maintain membership of it.

2.11 Dimensions of Employee Commitment

Among the proponents of attitudinal approach, researchers have started to view

employee commitment as a multi dimensional concept that has different factors

associated with it, outcomes and implications for human resources management

(Meyer and Allen, 1997). Meyer and his colleagues (Allen and Meyer, 1990; Meyer

COMMITMENT

Affective(Desire) -Bases (identity

relevance,shared values,personal

involvment)

Continuance(cost) -Bases(Investment ,lack

of alternatives)

Normative(Obligation) - Bases(Internalizations of orms,psychological contract,benefits and

reciprocity norms)

53

and Allen, 1991; Meyer and Allen 1997; Meyer and Herscovitch, 2001) have been at

the forefront of the multi-dimensional approach. Their three component model of

organisational commitment incorporates affective, continuance, and normative as the

three dimensions of organisational commitment.

2.11.1 Affective Commitment

Allen and Meyer (1990) refer to affective commitment as the employee‘s emotional

attachment to, identification with, and involvement in the organisation. Affective

commitment involves three aspects: (1) the formation of an emotional attachment to

an organization, (2) identification with, (3) and the desire to maintain organisational

membership. Allen and Meyer (1990) argue that an individual will develop emotional

attachment when he/she identifies with the goals of the organisation and is willing to

assist the organisation in achieving these goals. They further explain that

identification with an organisation happens when the employees own values are

congruent with the organisational values and the employee is able to internalise the

values and goals of the organisation. With this, there is a psychological identification

with and a pride of association with the organisation.

Jaros et al. (1993) suggest that affective commitment is the most widely discussed

form of psychological attachment to an employing organisation. This could probably

be because affective commitment is associated with desirable organisational outcome.

Meyer and Herscovitch (2001) report that affective commitment has been found to

correlate with a wide range of outcomes such as turnover, absenteeism, job

performance and organisational citizenship behaviour.

54

2.11.2 Continuance Commitment

The next dimension of employee commitment is continuance commitment (Allen and

Meyer, 1990) which is based on Becker‘s (1960) side bet theory. The theory speaks of

that as an individual remains in the employment of an organisation for longer periods;

they accumulate an investment, which becomes costly to lose the longer the

individual is attached to the organisation. These investments includes time, job,

efforts, organisational specific skills that might not be transferable or greater cost of

leaving the organisation that discourage them from seeking alternative employment,

work friendships and political deals.

Allen and Meyer (1990) describe continuance commitment as a form of psychological

attachment to an employing organisation that reflects the employee‘s perception of

the loss he/she would suffer if they were to leave the organisation. They explain that

continuance commitment involves awareness on the employee‘s part of the costs

associated with leaving the organisation. This then forms the employee‘s primary link

to the organisation and his/her decision to remain with the organisation is an effort to

retain the benefits accrued.

Romzek (1990) describes this type of attachment as a transactional attachment. He

argues that employees calculate their investment in the organisation based on what

they have put into the organisation and what they stand to gain if they remain with the

organisation. For example, an individual might choose not to change employers

because of the time and money tied up in an organisation‘s retirement plan. Such an

employee would feel that he/she stands to lose too much if he/she were to leave the

organisation.

55

In addition to the fear of losing investments, individuals develop continuance

commitment because of a perceived lack of alternatives. Allen and Meyer (1990) and

Meyer and Allen (1991) argue that such an individual‘s commitment to the

organisation would be based on his/her perceptions of employment options outside

the organisation. This occurs when an employee starts to believe that his/her skills are

not marketable or that he does not have the skill required to complete for the positions

in the field. Such an employee would feel tied to the organisation. People who work

in environments where the skills and training they get are very industry specific can

possibly develop such commitment. As a result, the employee feels compelled to

commit to the organisation because of the monetary, social, psychological and other

costs associated with leaving the organisation. Unlike affective commitment which

involves emotional attachment, continuance commitment reflects a calculation of the

costs of leaving versus the benefits of staying.

2.11.3 Normative Commitment

The third dimension of employee‘s commitment in an organization is normative

commitment, which reflects a feeling of obligation to continue employment.

Employees with a high level of Normative Commitment feel they ought to remain

with the organisation (Allen and Meyer, 1990). Researchers have overlooked this

view of employee commitment as relatively few studies explicitly address normative

commitment. Randall and Cote (1990) Allen and Meyer (1990) and O‘Reilly,

Chatman, Caldwell (1991) are some of the few who have attempted to differentiate

normative commitment from the other commitments of the employee‘s organisational

commitment.

56

(Randall and Cote) regard normative commitment in terms of the moral obligation the

employee develops after the organisation has invested in him/her. They argue that

when an employee starts to feel that the organisation has spent either too much time

or money developing and training him/her, such an employee might feel an obligation

to stay with the organisation. For example, an employee whose organisation paid his

tuition while he/she is improving qualifications might believe that he or she can

reimburse the organisation by continuing to work for it. In general normative

commitment is most likely when individuals find it difficult to reciprocate the

organisation‘s investment in them.

2.12 Antecedents of employee commitments

The concept of employee commitment has been conceptualized and measured in

different ways by many researchers. Many researchers on the topic of employee

commitment have used many different variables as possible antecedents of

commitment and have assigned these variables to categories (Mowday et al., 1982).

Steers (1977) proposed a dichotomy that he believed explains antecedents and

outcomes of organisational commitment. The argument associated with antecedents

was built heavily on previous research. Steer‘s view was that the antecedents of

commitment were the three categories of personal characteristics, role-related

characteristics, and work experiences. Mowday et al. (1982), in their review of

empirical studies conducted on the topic of organisational commitment, found that

most of the studies of this nature were correlation. Mowday et al., extended the model

proposed by Steers (1977) and came up with another model. As shown in the given

figure 5 below, the new model included four categories of antecedents of

organisational commitment: personal characteristics, role-related characteristics,

structural characteristics, and work experiences.

57

Figure 5. Hypothesized Antecedents and Outcomes of Employee Commitment

(adapted from Mowday et al. 1982).

2.12.1 Personal Characteristics

Many studies were concerned with the effects of various personal characteristics on

employee commitment (Angle Perry, 1981; Hrebiniak, 1974; Mowday et al., 1982).

The effects of age, educational level, tenure, gender, race, and other personality

factors on the level of organizational commitment of employees were examined in

such studies. For example, various researchers have found a positive impact of age

and tenure on the level of commitment. The logic behind this, positive relationship is

that when the individual gets older and remains with an organization longer, the

individual‘s opportunities for alternative employment tend to decrease, thereby

enhancing the employee‘s commitment to the organization (Meyer &Allen, 1984;

Mowday et al., 1982). In contrast to age and tenure, education has been found to be

Personal

characteristics

Role-related

characteristics

Structured

characteristics

Work

experiences

Outcomes

Desire to remain

Intent to remain

Attendance

Retention

Job effort

Employee

Commitment

58

inversely related to commitment (Mathieu & Zajac, 1990; Mowday et al., 1982;

Steers, 1977). It can be assumed that employees with higher levels of education may

have higher expectations which makes it difficult for an organization to meet such

expectations and results in less committed employees (Steers,1977). Marital status

and gender also have effects upon organizational commitment of employees.

Kawakubo (1987) and Lincoln & Kalleberg (1990) argued that marital status was

found to be a significant factor in employee commitment. According to Kawakubo, it

was found that married and separated persons were committed to organizations more

than were single persons. The logic behind that could be that married and separated

persons have more responsibilities than single persons (Lincoln &Kalleberg,

1990).With respect to gender, Angle and Perry (1981) and Mathieu and Zajac (1990)

found that females were more strongly committed to their organizations than were

males.

2.12.2 Role Related Characteristics

Mowday et al. (1982) were concerned with the relationship between job

characteristics and commitment: job scope or challenge, role conflict, and role

ambiguity. They indicated that increased job scope would lead to an increase in

commitment. Regarding role conflict and role ambiguity, Mowday et al. reported that

where there is role ambiguity and role conflict, and role ambiguity. They indicated

that increased job scope would lead to an increase in commitment. Regarding role

conflict and role ambiguity, Mowday et al. Reported that where there is role

ambiguity and role conflict, employee commitment tended to decrease. Austin and

Gammon (1983) reviewed the literature on the work experiences of academic

administrators and the link to employee commitment. They found that compensation

is critical to commitment. They stated that, ―If administrators feel that they are not

59

valued for their contributions and are not rewarded to at least some reasonable degree,

their commitment may be threatened‖ (p.61). Occupational status has also been

identified as a significant factor in occupational commitment. Wiener and Vardi

(1980) found that employees who occupy managerial positions tend to be more

committed to their organizations than those who do not occupy managerial positions.

They contended that this is due to the difference in prestige and pay among the two

groups.

2.12.3 Structural Characteristics

Within the body of literature on organizational commitment of employees, researchers

have investigated the influence of structural characteristics on commitment. Stevens

et al. (1978) found that organization size, span of control, union, presence, and

centralization of authority were not related to commitment. Later, Morris and Steers

(1980) conducted a study to determine what effects of structural characteristics such

as formalization, functional dependence, supervisory span of control, span of

subordination, decentralization, and work group size had on commitment. They found

commitment to be positively related to employee participation, decentralization,

functional dependence, and formalization. When individuals participate at every level

in the organization, their ego involvement is enhanced which eventually leads to

increased commitment. Employees who experience greater decentralization, greater

dependence on the work of others, and greater formality of written rules and

procedures were reported to be more committed to their organizations than employees

experiencing these factors to a lesser degree (Mowday et al., 1982).

60

2.12.4 Work Experiences

Work experience is viewed as a major socializing force and important antecedent of

commitment. This category of antecedents related to employee commitment

represents the nature and quality of an employee‘s work experiences that occur during

his or her tenure with the organization (Steers, 1977). In the literature, several work

experiences variables were found to be related to employee commitment (Mowday et

al., 1982). For example, organizational dependability which has been defined as ―the

extent to which employees felt the organization could be counted upon to look after

employees‘ interest‖ (p.34) was found to have a significant and positive effect on

organizational commitment of employees (Steers, 1977). In addition, research by

Buchanan (1974) found that when employees feel that their co-workers maintain

positive attitudes toward the organization, their organizational commitment increases.

2.13 Employee Commitment within Academic Institution

Many studies were conducted to determine the organisational commitment of both

educators and administrator in academic institutions and both of them shows

organisational commitment. In a survey of general and special academicians,

Billingsley and Cross (1992) determined the predictors of teacher‘s commitment.

Their cross- validated regression results suggested that work-related variables such as

leadership support, role conflict, role ambiguity, and stress are the best predictors of

commitment of academicians. They concluded that increasing administrative support

and principal‘s behaviour such as feedback , encouragement , acknowledgement , use

of participative decision making and collaborative problem solving are important in

building a committed and satisfied teaching staff.

61

(Chiefo,1991;Billingsley & Cross 1992; Richards ,Arkyod ,& O‘Brien,1993; Raju and

Srivastava, 1994; Thornhill et al.,1996; Borchers and Teahen ,2001;Richards,O‘ Brien

& Arkyod, 2000;Wolverton ,Montez,Guillory and Gmelch,2001).Chieffo (1991)

found that mid-level administrators in higher education are fairly committed to their

organizations largely because they are proud of what they are doing and the

autonomy of their work. Her results also showed a significant correlation between

leadership behaviours (.60 to .70, p < .0001) such as, vision, influence orientation,

people orientation, motivational orientation and values orientation, and organizational

commitment. She also positively linked factors such as participation in decision

making meetings and the organizational structure with higher levels of employee

commitment.

In a study of the factors related to the employee commitment of college and

University auditors, Colbert and kwon (2000), found that organizational

characteristics such as organizational dependability (R2 = 1.75, p< .01), and

instrumental communication (R2

= 2.09, p <. 01) were significantly related to

employee commitment. They also found a significant positive relationship between

organizational commitment and organizational tenure (R2 = 2.06, p< .05), and skill

variety (R2 = 1.51, p< .01).

Wolverton et al., (2001) found that organizational commitment of Deans seemed to

increase with Age (t=2.46, p < .05), number of years in the position (t = 3.00, p < .05),

and the level of overall job satisfaction (t=2.69, p < .05). They also found that if

Deans believed they worked for Universities that exhibited high academic quality (t =

2.88, p < .01) and good environment quality (t = 4.19, p < .01) they tended to be more

committed to the organization. In addition, they found that deans who were inside

62

hires also seemed more committed to their Universities than those who were brought

in from outside.

Celep (1992) tried to determine the level of organisational commitment of teachers

with regard to the commitment to the school, to teaching work, to work group and to

the teaching profession. Teacher‘s commitment to the school was tested with such

factors as exerting efforts on behalf of the school, among others. His results indicated

a direct relationship between the teacher‘s organisational commitment and having

proper pride to belong to the school (t=7.13,p<.01 ) and work group (t= 13.25, p <

.05).

The interest in the commitment of educators has extended to the study of

organizational commitment of part-time faculty. In a study of 479 full-time and part

time academics at two mid-western universities, Borchers and Teahen (2001) found

that the level of organizational commitment does not vary significantly between

faculty members who are part-time on ground, part- time on-line, full-time on –

ground and full-time on line. These findings indicate that despite employment status

educators are equally committed to their organization.

Thornhill et al. (1996) have showed that communication with employees is

significantly related to the organisational commitment of higher education

institutions. They found that communication in terms of information flow down the

organisation, information flow up the organisation and leadership or management

style were important in the context of Higher Education of the employees, who

believed that management made a positive effort to keep staff well informed, 68%

indicated that they felt part of the institution, 88% reported that it was a good place to

work and 85% reported that their organisation had a great future.

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In a study to explore the ability of extrinsic and intrinsic work related rewards to

predict the employee commitment to health occupations educators, Richards et al.,

(1993) found that two intrinsic and one extrinsic work related rewards significantly

predicted organizational commitment. Significance involvement and general working

conditions were significant at the 0.1 level with standardized beta weights of .2411,

.2135, and .1591, respectively. Similar results were found by Richards et al (2002)

when they predicted the organizational commitment of marketing education teachers.

They found that six of the eight work related rewards entered the stepwise Multiple

Regression. The variables that were significant at the .01 level were supervision

(.2188), significance (.2158), involvement (.2137), promotion (.1592), and co-workers

(.1258)

From this analysis of studies of organisational commitment within academic

institutions, it can be seen that the development of commitment is dependent on

several personal and organisational factors such as Leadership, management policies

and practices.

The idea that organizational commitment is important for the realization of

organizational goals and professional goals of educational institutions has remained

un-tapped by researchers. Organizational Commitment research can possibly provide

practical results for academic institutions by providing insights into the commitment

profiles of their professional employees. From the employing organization‘s stand

point, it is useful to identify which factors motivate academic‘s desire to remain with

the organization.

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2.14 Literature Review on Education Sector with Emphasis over B-Schools.

The present education system in India mainly comprises of primary education,

secondary education, senior secondary education and higher education. Elementary

education consists of eight years of education. Each of secondary and senior

secondary education consists of two years of education. Higher education in India

starts after passing the higher secondary education or the 12th standard.

India has a long history of higher education. The early Gurukul system of education

flourished in the Vedic and Upnishadic periods in India, and a huge university was set

up at Takshashila in the sixth century BC which was situated at the place now called

Taxila, in Pakistan. Two other universities, namely Nalanda and Vikramshila, were

established in the fourth and fifth centuries AD, respectively (Dogra and Gulati,

2006). The modern higher education system was established in the mid-1850s when

the first three universities were set up in 1857 under British rule. The thrust of

development then was mainly on a liberal arts education. The rate of development

was slow, as in a period of 90 years only 18 universities were established in India.

Most of these followed the model of the three original universities at Bombay,

Calcutta and Madras. When India became independent of Britain in 1947, it had 20

universities and 500 colleges located in different parts of the country. The present

higher education system is the second largest in the world and is perhaps the most

complex in terms of the geographical area covered and the profile of students and

teachers, in terms of their linguistic, social, cultural and economic background. The

number of state and central universities rose from 133 (at the end of the Ninth Five

Year Plan from 1997-2002), to 206 in March 2005, to 339 during the Tenth Five Year

Plan (up to December 2006), and in 2007 it reached 378. Thus, between 1950

and2007, universities in the country increased from 20 to 378, colleges from 500 to18,

65

064 and teachers from 15,000 to 480,000. The number of students enrolled in higher

education too has increased from 100,000 in 1950, to over 11.2 million in

2005(Thorat, 2007). By 2008, India has 413 universities – 251 of which are state

universities, 24 central universities, 100 ―deemed‖ universities (i.e. they do not offer

degrees themselves, but are affiliated to larger universities for awarding degrees), five

are institutions established under State Legislation and there are 33 institutes of

national importance established by Act of Parliament. In addition, there are now20,

677 colleges including 2,166 that are women-only colleges. At the beginning of the

academic year 2007-2008, the total number of students enrolled in the universities and

colleges in India was 116.13 lakhs (11.6 million), of which about 40 per cent were

women. This has, in turn, enhanced access to higher education, as the enrolment ratio

has increased from less than 1 per cent in 1950 to about 10 per cent in 2008. These

developments notwithstanding, the gross enrolment ratio (GER) in relative terms

compares quite poorly with 60 per cent in the USA and Canada, to over 40 per cent in

several European countries and more than 20 per cent in many developed and

developing countries. The Planning Commission, (Government of India) is also

targeting a GER from10 per cent in 2006 to 15 per cent by 2015 (Government of India

Planning Commission, 2006). Such a substantial increase in enrolment would require

a multi-pronged strategy. In order to ensure that the facilities for higher education are

available in enough quantity for all who aspire to it, the federal government decided

to establish more universities in the Eleventh Five Year Plan (2007-2012). Some

announcements have already been made in this regard. These include the

establishment of 30 new central universities and a new Indian Institute of Technology

and Indian Institute of Management. Besides, capacity increase will also have to be

attempted by strengthening and increasing the intake capacity of existing colleges and

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the universities through an increase in places on existing courses as well as by

introducing new courses. The Government of India has set up the National

Knowledge Commission (NKC) to seek ideas on how it can modernise and expand its

educational institutions and make them worthy of world-class status. According to its

website (http://knowledge commission.gov.in/), the NKC is: A high-level advisory

body to the Prime Minister of India, with the objective of transforming India into a

knowledge society. It covers sectors ranging from education to e- governance in the

five focus areas of the knowledge paradigm:

Access – easy access to knowledge.

Concepts – all levels and forms of education.

Creation – effective creation of knowledge.

Applications of knowledge systems.

Services like e-governance.

The NKC has suggested the setting up of 1,500 universities by 2015. The Chairman of

NKC (Mr Sam Pitroda) has also suggested setting up an Indian Institute of Library

and Information Science to boost the research and development of library systems in

India. (http://knowledgecommission.gov.in/downloads/recommendations/Libraries

LetterPM.pdf).

2.14.1 UGC-Infonet Digital Library Consortium:

Background:

The UGC-Infonet Digital Library Consortium was initiated in 2004. The UGC funds

all state, ―deemed‖ and central universities excluding those covering engineering,

medicine and agriculture which are funded by other agencies. Unlike many other

Consortia, members‘ libraries access scholarly journals without paying the

subscription from their library budget. The entire subscription cost is paid to the

http://knowledgecommission.gov.in/downloads/recommendations/Libraries%20LetterPM.pdf



67

publisher by INFLIBNET as agreed in a deal finalised by the National Steering

Committee (NSC). In essence, the funding for this consortium is top-sliced from UGC

funds and offers high quality publishers/aggregators to the academic community,

comprising faculty, staff, researchers and students. In terms of the number of users, it

is the largest consortium in India and by 2007, 179 universities, as well as several

thousand colleges affiliated to these universities, qualified for gaining access to the e-

resources. About 100 universities are currently (mid-2008) members of the

consortium. The consortiums a trend-setter in a thoughtfully adopted e-only model

without any links to the current print holdings by its member universities. There is no

formal membership structure of the consortium. All academic institutions that come

under the purview of the UGC are members of this consortium. Keeping in view the

large number of universities, it is planned to implement the new system in various

phases as described later. The consortium can take credit for investing significant time

in the evaluation of resources for selection and obtaining the best pricing terms and

models from the publishers. Before extending the access, INFLIBNET is ensuring

network connectivity to these institutions in another major project called UGC-

Infonet.

The entire programme is carried out with a systematic approach. The universities and

resources were classified under three different categories. In the first phase (2004), 50

of the larger universities were given access to scholarly journals from 16 major

publishers, subsequently in 2005 another 50 universities were included and

subscriptions to more resources were taken out. In the third phase, there are 70 more

universities. (Prem Chand and Jagdish Arora, 2008).

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2.14.2 Institutional Development:

The quality of education and innovation in the system depends primarily on the

institution. (Ishwar Dayal, 2002) The needed areas of development are discussed at

three levels:

The University System

The Support Systems at Macro Level (The Academic Content, Faculty

Development, The Monitoring System, Support for Research, National Testing

Service) needs to be supported by Government/AICTE/UGC.

Development Approaches at Institutional Level

Institutional development as discussed by Ishwar Dayal rests on two distinct but

related areas which are as follows:

• The administrative arrangements and the institutional leadership; and

• The approaches to institutional development.

In his article “Towards an Educated India: Innovations in education”, in the

Free Press Journal, Dr. R. Gopal expressed that to make the B-School pass outs

of India employable, the teaching methodologies adapted by the B-School

faculties should be innovative in nature to make them industry – fit. Dr. Gopal

stated that, ‗Specific innovations in the areas of teaching pedagogy will be of

great use. Some of these areas could be conduct of one week 'appreciation'

programme at the beginning of the session, involving the students in creating

posters specific to social needs for instance, anti ragging poster competition,

debates, etc, reverse teaching, guest lectures, case studies, live projects, industrial

visits - national and international, use of select films to stimulate the mind for

discussions, organising socially involved projects like blood donation camps,

celebrating festivals with members of an old age homes, children's homes etc,

69

strengthening the hands of mahila groups and self-help groups, etc., Guest

lectures given to students by industry experts could be another way to let them

know the ways of corporate world and culture, involving senior leaders from

industries in the governing council of institution, live-projects in conjunction

with industry personnel etc., can aim to raise the educational bar and make the

students employable.

2.14.3 Knowledge Management in Higher Education Institutions:

Knowledge management (KM) is an essential consideration in higher educational

institutions (HEIs) to ensure that knowledge flows efficiently between the people and

processes. The practical implications of KM initiatives in HEIs include the

enhancement in the overall effectiveness and efficiency. A KM system should be

integrated into the institution‘s processes and work environment. Significant work has

been done in the area of KM in higher educational system and many new

requirements have been proposed by different people in this field.

Kidwell, et al.(2000, pp. 28-33) discussed why KM is vital to higher education

systems and how an institution wide approach to KM can lead to exponential

improvements in knowledge sharing – both explicit and tacit and the subsequent surge

benefits. The work deals with the benefits of various knowledge management

applications on educational institution processes such as research, curriculum

development, student and alumni services, administrative services and strategic

planning.

Ranjan and Khalil (2007,pp. 15-25) have argued that in order to build and develop a

robust and thriving knowledge environment the institutes need to look beyond

technology and develop the overall culture of accessing, collaborating and managing

knowledge.

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Yeh (2005,pp.35-42) presented the KM multi-modelling framework to propose four

organizational strategies for higher education – culture, leadership, technology and

measurement and three academic KM strategies – individual, institutional and

network.

Nagad and Amin (2006, pp.60-65) concluded that effective KM may require

significant change in culture and value, organizational structures and reward systems.

In order to apply KM, knowledge and expertise must be readily accessible,

understandable and retrievable.

Sedziuviene, Vveinhardt, J.(2009, pp. 79-90) concluded that to create a KM system

in higher educational institutions it is necessary to point out the valuable knowledge,

to create a methodology for receiving, transforming and consolidating knowledge, to

activate and optimize the process of knowledge formation, transmission and

evaluation, to perform spread of knowledge among the staff and students, to

constantly perform knowledge monitoring and make decisions accordingly and to

generate new knowledge and new technologies for knowledge transmission.

Rowley (2000, pp. 325-333) in the study on KM in higher education said that KM

challenges lie in the creation of a knowledge environment and the recognition of

knowledge as intellectual capital. Effective KM in higher education requires

significant change in the culture and values, organizational structures and reward

systems.

HEIs in India are facing the pressures for enhanced performance for the reasons

argued by Ashish and Arun (2006) and others –

1 Increasing competition among higher educational institutions

2 Growing awareness about alternate opportunities and value for money among

the students and parents

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3 Accountability to stakeholders and the accreditation and affiliating bodies

4 Increasing industry demands as employers for recruitments of graduates and

Post graduates

5. Industry expectations for industry-institution partnerships.

In view of the pressures from the stakeholders and the present scenario in HEIs it

becomes pertinent to look for solutions which will make an impact on the existing

systems. A blend of KM and IT techniques can offer an appropriate tool to meet this

challenge (Kumar and Kumar, 2005).

Large number of organizations have implemented KM principles and methods in their

routine activities for enhanced collaborating of knowledge on inter and intra

organizational platforms. However HEIs have not taken much interest in introducing

KM approaches even though from the academic learning point of view KM by its

nature is essential for HEIs (Ranjan and Khalil, 2007). Today HEIs behave like

educational markets. They have to adjust themselves and develop strategies to

respond rapidly to the increasing demands of stakeholders and market pressures.

A KM approach in HEIs is a conscious integration of all human resources and

academic and administrative processes for the acquisition, structuring and sharing of

institutional knowledge. Emphasis is required on sharing of knowledge at the

institutional level and not the individual level (Ranjan and Khalil, 2007)

Higher educational institutions create knowledge during their academic and

administrative processes. Knowledge is created at various levels in different forms

and is required at each level in a different form. The processes of teaching,

examination, evaluation, admissions, counselling, training and placement and research

and consultancy result in numerous beneficial experiences and studies which may be

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defined as knowledge in the context of higher educational institutions (Ranjan and

Khalil, 2007).

Knowledge Acquisition – It is the mechanism through which knowledge is gathered

and stored from the members of the institution and other resources (Schwartz, et al.,

2000). According to Tiwana (2000), knowledge acquisition is the development and

creation of insights, skills and relationships supported by information technology.

Knowledge acquisition consists of codifying explicit knowledge, modulating tacit

knowledge to explicit knowledge and codifying the explicit knowledge and acquiring

tacit knowledge in the form of explicit Meta knowledge i.e. knowledge about

knowledge. The explicit Meta knowledge about tacit knowledge contains information

about ―who knows what‖ and about how to contact the experts. The purpose of

codification is to make it easy to organize, locate, share, store and use knowledge

(Davenport and Prusak, 1998).

Knowledge may be created and acquired, but if not organized and structured, the

organization will not be able to take action on that knowledge or actualize all of its

potential value (O‘Leary, n.d.). This will result into limited use of the institutional

knowledge and its impact on the institution. Knowledge has to be structured into a

form which can be used directly in the institutional processes and functions to ―fit‖

into the institution‘s way of doing things.

Institutions need to put the knowledge into specific forms viz. documents, databases,

pictures, graphs, rules, case based reasoning (CBR) and frequently asked questions

(FAQs). It includes organizing, indexing and formatting the acquired knowledge

(Schwartz, et al., 2000) for reuse and leverages it in other ways and makes it broadly

available in the institution.

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The knowledge is transformed into appropriate form as used and sought for by the

stakeholders and stored in knowledge bases called knowledge repositories. A

knowledge repository is a structured collection of the knowledge generated in an

organization. The value of organizational knowledge increases when it is available in

storage repositories for present and future use (Jasimuddin, 2005). The knowledge

repository ensures the availability of related knowledge quickly and efficiently at the

same place. According to Natali and Falbo (n.d.), the primary requirement of the

knowledge repository is to prevent the loss of knowledge and enhance accessibility to

organizational knowledge in the form of a centralized well structured resource.

Knowledge Dissemination – The stored knowledge, if not transferred for further use

within the organization, leads to wastage of organizational resources (Jasimuddin,

2005). According to Schwartz, et al. (2000), knowledge dissemination constitutes

retrieval of the relevant knowledge for use at the right time. It supports the flow of

knowledge in the institution. Knowledge dissemination can be pull based or push

based as either the user can search for the required knowledge or the knowledge

management system can offer knowledge that seems relevant for the user‘s task

(Abecker, et al., 1998). Proactive knowledge dissemination becomes particularly

important when users are not motivated to look for information, are too busy or

unaware that relevant knowledge exists or are ignorant of the need for information in

the first place (Natali and Falbo, n.d.).

The practical implications of IT based KM initiatives in HEIs imply that the

framework should be useful to the institutions in many ways namely –

Enhanced ability to develop strategic plans

Enhanced quality of programs and processes by identifying and leveraging best

practices

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Enhanced ability to monitor and sustain ongoing change (Petrides, 2004)

Enhanced faculty development efforts

Improved teaching learning processes

Improved effectiveness and efficiency of administrative services

Improved sharing of internal and external information to minimize redundant

efforts

Reduced effort and turnaround time for actions

Reduced operational costs

To gain user acceptance, a knowledge management system must be integrated into the

organization‘s process, allowing collecting and storing relevant knowledge as it is

generated in the processes and functions of the organization (Natali and Falbo, n.d.).

Consequently it should also be integrated to the existing work environment (Abecker,

et al., 1998).

2.14.4 Data Envelopment Analysis in Higher Education:

Management studies originally established in the USA were adopted in Europe in

the1960s. Since then it has gathered a global acceptability. Large numbers of

management schools are operating around the globe and they encounter a strong

competition for students. Management is an area where the individuals are developed

within the area of management. The aim of MBA programme is to prepare their

graduates for managerial roles, help them to acquire a better understanding of the

industrial and business world and enriching them with relevant skills and

competencies for their careers. In other words it is generally agreed that management

education adds value to a student. However, in management education what kinds of

values are added has not been resolved in a widely accepted manner.

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In his article „ Towards an Educated India: Academia – Industry Partnership”,

(2010) in the Free Press Journal , Dr. R.Gopal expressed that extremely dynamic

business world, and the rapidly developing knowledge based services economy

have put in an increased demand for professionals to merge the business

effectively. This is precisely the reason why amongst the various fields of

knowledge, the desire for acquiring management qualifications is growing

rapidly both amongst the fresh graduates and working executives. It is in this

context that the proposal corporate- academic tie up becomes crucial.

Boyatzis and Renio (1989) indicate some positive attributes gained from MBA

studies. Espey and Batchelor (1987) report how the company gained from the students

carrying out projects and writing reports relating to the needs of the company, thus

making the graduates better managers. Yet despite all the rhetoric, few signs of

substantive change are evident in most of the B-schools. Fiekers et al. (2000)

discussed how to benchmark the postgraduate admission process in their paper. Wan

Endut et al. (2000) discussed the benchmarking process of higher educational

institute. Shaw and Green (2002) and Laugharne (2002) discussed the benchmarking

process of academic process and the PhD programme respectively.

Data envelopment analysis employs mathematical programming to obtain ex post

facto evaluation of the relative efficiency of management accomplishments, however

they may have been planned and evaluated (Banker et al., 1984). The aim of a central

unit is to allocate resources in such a way that the overall goals of the organization are

satisfied as well as possible, or specifically, the amount of the total outputs of the

units will be maximized (Korhonen and Syrjanen, 2004). DEA model is used to

evaluate the relative efficiency of a group or units of decision-making units (DMUs)

in their use of multiple inputs to produce multiple outputs where the form of

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production is neither known nor specified as in the case of parametric approach

(Shammari and Salimi, 1998). As a consequence, the DEA efficiency score for a

specific decision making unit (DMU) is not defined by an absolute standard, but it is

defined relative to the other DMUs in the specific data set under consideration. Farrell

(1957) is known as the pioneer to develop DEA to solve the problem, which requires

careful measurement but also has a limitation of combining the measurements of

multiple units to measure the overall performance. Later on Charnes et al. (1978)

generalized Farnell‘s framework and popularised the concept. Berger et al. (1997) and

Seiford (1996) confirmed of DEA application in previous research and other DEA

works that contain more than 1,000 DEA contributors in the past two decades

(Sueyoshi, 1999). The two most frequently applied models used in DEA are the CCR

model – after Charnes et al. (1978) and the BCC model – after Banker et al. (1984).

The basic difference between these two models is the returns to scale (RTS). While

the latter takes into account the effect of variable returns- to- scale (VRS), the former

restricts DMUs to operate with constant returns- to- scale (CRS). Charnes et al.

(1978) developed DEA to evaluate the efficiency of public sector non-profit

organizations. DEA aims to measure how efficiently a DMU uses the resource

available to generate a set of outputs and DMUs can include manufacturing units,

departments of big organizations such as universities, schools, bank branches,

hospitals, power plants, police stations, tax offices, defence bases, a set of firms or

even practising individuals like medical practitioners etc.

In India, the existing monitoring organization All India Council for Technical

Education (AICTE) is responsible for evaluating the performance of the institutions

through the process of accreditation. The evaluation process is based on a set of

broad-based criteria and these criteria serves to assess the principal feature on the

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institutional activities and programme effectiveness. Emphasis is given on entry

qualification, intake of the students, duration of the course, structure of the

programme, examination rules and regulations, infrastructure norms like computer

facilities, library, teaching aids, etc. However, these norms and rules do not help to

measure the performance of any institutions. Harris (1994) presented a generic

approach to higher education. Primarily, a customer oriented approach where the

service to students is promoted through training and development. Secondly, a staff

focus approach which tries to enhance the contribution of all the member of staff to

the effectiveness of the institute and finally focus on service agreement. This

definition reflects the unique characteristic of the education. An education process

involves input, output and several others factors. Education process is a multi

dimensional activity and only one indicator cannot assess it. Leaving the few top

institutions in India, rest of them can be categorised into private and government

owned B-schools. Since intake of these colleges is not of high quality and the

objective of the management is to make quick money by spending least. Therefore,

the focus on quality value addition becomes a necessary step. A performance measure

helps in monitoring strategic achievements and controlling the strategic movements of

the institutions as it is strongly related to objectives of the institutions. There are very

few papers available in the literature for measuring the performance of the

management institutions. Haksever and Muragishi (1998), Dreher et al. (1985),

Hamlen and Southwick (1989) studied the quality and value of management

education.

(Roma Mitra Debnath, 2009) attempts to measure the efficiency of 20 B-Schools

quantitatively and rank them. It has been argued in her paper that efficiency can be

measured by using the inputs and outputs which are intangible in nature. Although

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some of the management schools are analysed in the paper, however the paper

focused on the measurement of the value in management education. Many institutes

are being able to charge a high fee for their management programme. However they

are not able to maintain their status and rank in the various rankings. The paper tried

to answer the question. The result draws to a clear and specific conclusion that an

efficient institute is able to use all its resources in an optimum way to produce the

maximum output.

2.14.5 Financing Higher Education in India:

It is unambiguous that Policy of the Government of India now encourages

augmentation of resources for covering a larger portion of cost of higher education.

Recent policy changes in India often favour to divert resources from higher to primary

level of education and favours for full cost recovery from students even in public

higher education institutions. Cost recovery measures comprising of increase in fees,

student loans currently operated by commercial banks and privatisation will

exacerbate inequality in the society. Indeed, there seems to be a nexus between the

present student loan scheme and full cost recovery. Increasing reliance on student

fees, student loans and privatisation without considering the low-income groups may

produce regressive effects in the society. Under the deep waves of globalisation and

competition, important economic rationale for government funding especially for

higher education is neglected. Public support for higher education remains essential to

ensure a balanced achievement of educational and social missions, apart from

surviving in the knowledge-based society. It is essential that funding sources must be

diversified but cost-sharing with students has social and political limits, and excessive

commercialization of higher education should be forbidden (P. Geetha Rani).

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Dunn and Bradstreet one of the leading consulting houses had elicited

Dr.Gopal‟s views on the Indian Education (2011) especially w.r.t B - schools. He

expressed that the institutes should be freed from the concept of “fix the fees”

and the institutes should be allowed / encouraged to charge whatever fees they

want. In the long run, each B School would stabilize at its own level of fees – the

market will automatically regulate the fees for ever institute.

Knowledge is the driving force in the rapidly changing globalised economy and

society. Quantity and quality of highly specialized human resources determine their

competence in the global market. Emergence of knowledge as driving factor results in

both challenges and opportunities. It is now well recognised that the growth of the

global economy has increased opportunities for those countries with good levels of

education and vice versa (Carnoy, 1999; Tilak, 2001; Stewart, 1996; Ilon, 1994).

Though the higher education system and the pattern of financing higher education

vary a great deal across countries in terms of their size and strength and degree of

diversification of higher education institutions, yet they all face a severe financial

crisis in the public finances available for higher education. With macro economic

reforms resulting in severe cuts on the education budget on the one hand, hand, the

government directs the shift of resources from higher to primary accomplishing the

long cherished goal of universal elementary education on the other education. It can

be noticed from the approach paper to the Tenth Five-year Plan and Tenth plan

document that, ―Since budget resources are limited, and such resources as are

available, need to be allocated to expanding primary education, it is important to

recognise that the universities must make greater efforts to supplement resources from

the government‖ (Government of India, 2001, 2002-2007).

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In a federal polity like India, education being concurrent subject since 1976, the

commitment of the centre equally at all levels of education is important. In secondary

education, centres‘ share of expenditure is minimal ranging around 5 per cent.

However, federal role in elementary education is on the rise since the middle of

1980s.Whereas for the Higher Education As a result of all these efforts and initiatives

by the federal government, the flow of plan transfers from central to states in

elementary education have improved since the late 1980s. It is to be realised that

while primary education is fundamental to the nation, higher education determines its

economic and technological progress in the globalised era, which are the necessary

and sufficient conditions for growth and development respectively. Even for very low

enrolment ratios in higher education in India, it is increasingly realised that public

budgets cannot adequately fund higher education, particularly when sectors of mass

education are starved of even bare needs. Hence, the resources from higher education

are being diverted to the development of primary education. But it is stressed that

while it is mandatory that the nation achieves universal elementary education and total

literacy, it cannot at the same time afford to relegate to a neglected position to achieve

global standards in higher education (UGC, 1993). The funds for higher education in

India come mainly from three different sources, viz. government, fee income from

students and other sources of income from philanthropy industry, sale of publications,

etc. Higher education has been largely a state funded activity with about three-

quarters of the total expenditure being borne by government. The relative shares of

non-government sources such as fees and voluntary contributions have been

declining. Only 7 per cent of the population in the age group 17 to 24 attended higher

educational institutions in India, as against 92 per cent of the eligible age-group

population attending higher educational institutions in USA, 52 per cent in UK and 45

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per cent in Japan. Even for these very low enrolment ratios in India, it is being

increasingly realised that public budgets cannot adequately fund higher education,

particularly when sectors of mass education are starved of even bare needs. Hence, in

the recent decade, the need for experimentation with several alternatives such as

student fees, student loans, graduate tax and privatization is intensified. In the eighth

plan it financially self-supporting higher education has been advocated that

―expansion of higher education in an equitable and cost-effective manner, in the

process, making the higher education system financially self-supporting‖

(Government of India, 1992). The approach paper to the Ninth Five-year Plan says,

―Emphasis will be placed on consolidation and optimal utilisation of the existing

infrastructure through institutional networking and through open university system.

Grants-in-aid will be linked to performance criteria to improve quality and inject

accountability. Fees will be restructured on unit cost criteria and paying capacity of

the beneficiaries. Additional resources will be generated by involving industry and

commerce and through contribution from community‖ (Government of India, 1997,

pp.82).

Distinct signals from the government towards hike in fees and shift of resources from

higher to primary education can be noticed from the approach paper to the Tenth

Five-year Plan, ―Since budget resources are limited, and such resources as are

available, need to be allocated to expanding primary education, it is important to

recognise that the 7 universities must make greater efforts to supplement resources

from the government. University fees are unrealistically low and in many universities

have not been raised in decades. A substantial hike in university fees is essential

(emphasis added)‖ (Government of India, 2001, pp.37). The Tenth Five-year Plan

document as well notes that it is important to recognise that the universities must

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make greater efforts to supplement resources apart from the government (Government

of India, 2002-2007, p.17).


Dr.Gopal‟s views on the Indian Education especially w.r.t B - Schools. He

expressed that there are a large number of opportunities for the Indian Business

School. The market for B Schools is quite large and is growing rapidly perhaps

at double digit rate. Consequently one can see a large amount of competition –

what with new B Schools proliferating at every nook and corner. This will

automatically spur the Indian B Schools to innovate – introduce new course and

new program, new methods of pedagogy, use of simulation techniques, increase

the institute industry interaction, research papers and so on. The key area of

success is the need for the Indian B Schools to transform themselves from a mere

teaching/ coaching class to a full fledged Business University/Business School.

(S.J.Dhopte, 2011)

It should be noted that higher education institutions play an important role in setting

the academic standard for primary and secondary education. They are responsible for

not only providing the specialised human capital in order to corner the gains from

globalisation, but also for research and development, training inside the country,

provide policy advise, etc. It is to be realized that ‗Higher Education is no longer a

luxury; it is essential to national, social and economic development‘ (UNESCO,

2000).

The adverse impact of economic reforms reflects upon various revenue

diversifications measures such as hike in student fees, student loan programmes

operated by commercial banks and privatisation. Various revenue-raising measures

take place in the form of:

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A. raising tuition fee as a significant source of revenue for the support of instructional

cost

B. full cost recovery of other fees such as institutionally provided room and board

C. Sale

It needs to be noted that the maximum income that can be raised from fees is on an

average around 25 per cent of the total recurring expenditure in a span of ten years.

Further, it is important to notice that self-financing courses are short term in nature

and heavy reliance on them will have repercussions on the equity, balance and quality

of education system in the long run. This will also lead to lack of teachers and

researchers in pure and basic disciplines in the near future as it is being experienced in

United Kingdom. Increasing reliance on student fees, student loans and privatisation

without considering the low-income groups may produce regressive effects in the

society. Hence, an alternative student loan scheme specifically for the weaker sections

should be evolved. Such a programme must be flexible enough to suit their

requirements, which may involve government guaranteed loans, subsidised interest

rates, liberal terms of repayment, waivers for those students with less future incomes,

etc, in addition to a strong student support system. Effective financial management at

institutional level is mandatory. It is essential that funding sources must be diversified

but cost-sharing with students has social and political limits, and excessive

commercialization of higher education should be forbidden (P. Geetha Rani, National

Institute of Educational Planning and Administration).

Many research studies show that the benefits of higher education are largely

appropriated by the students belonging to the upper and middle income groups, and

those who belonged to the forward communities. Thus, the benefits of liberal

government grants/subsidies are largely cornered by the already rich sections of

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society, whereas the tax receipts, particularly from the indirect taxes - the stable tax

resources of state – used to finance higher education expenses mainly fell on the

lower income groups. It can be safely stated that the higher education of privileged

sections of society is liberally financed out of the revenue extracted from the poor and

such a policy is bound to be perpetuating educational and income inequalities in the

society (Psacharopoulos, 1994; World Bank, 1994; Psacharopoulos, 1997; Mingat and

Tan, 1986; Jimenez, 1987, 1994; World Bank, 2000).

However, the debate of increasing grants/subsidies on one hand or rightsizing/ no

grants/subsidies to higher education on the other hand has been intensified recently

(Hinchiffe, 1993).

2.14.6 Cost of Education: Studies Related to India:

The cost of education has attracted researchers‘ attention at the very early stage.

These studies deal with the national education sector as well as that of the individual

states of the country. Day‘s study (1963) focuses mainly on the costs of education.

For this, he prepared a detailed list of items of expenditure on education and grouped

these into six categories: (i) direct expenditure; (ii) meals and tiffin; (iii) students‘

health service; (iv) training of teachers; (v) administration and inspections; and (vi)

transport services. During the pilot enquiry on the provision of public education, the

planning division of the Indian Statistical Institute collected some data on the cost of

education for the period 1963 in Madhya gram, an urbanized village in the district of

24 Parganas (West Bengal); ten km away from the Calcutta city. The study presented

data on the cost of secondary education, which was collected from five schools in the

area. It gives the detailed analysis of receipts and payments, income and expenditure,

etc. A consolidated list of assets has been prepared for estimating the depreciation.

The main purpose of the study was to estimate the cost of education of each unit of

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product. Panchamukhi (1965) measures the public expenditure on education in India.

The study estimated the total cost of education for the period 1950-51 to 1959-60 and

concluded that total cost of education constituted 6.2 per cent of GNP in 1959-60. The

study also calculated the various components of private and institutional costs of

education, foregone earnings for males and females, village and town pupil

separately. The study estimated that foregone earnings constituted major proportion of

total factor cost of education. The total cost of education was found to stand between5

per cent and 6.5 per cent of national income in 1960-61 and not 2.5 per cent of

institutional cost alone. Pandit (1969) measures the unit cost of education and

efficiency of educational expenditure. The study divides the total cost of education

into three categories such as institutional cost, students‘ cost and opportunity cost.

Dutt (1969) tries to measure the recurring unit cost of education in Haryana on the

basis of sampled 28 colleges of which 24 colleges were private and four were

government owned. It found main factors affecting the unit cost of education: age of

the college; student enrolments; average pay of teacher; and ratio of non-teacher to

total teachers. Among all the four component of unit cost of education, salary

emerged as the main component. For measuring of all the four variables, regression

and correlation analysis were carried out. Regression analysis reveals separate results

both for the private and all colleges together. In the case of private colleges, only

enrolment and age of the college had a negative impact on unit cost, and average pay

of the teacher and ratio of non-teacher to the total cost had a positive impact. On the

other hand, correlation analysis of all colleges suggests that, if other variables remain

constant, student enrolment was found to be significantly correlated with unit cost

followed by average pay of teacher. Neither age of the college nor ratio of non teacher

to total cost have significant impact. One thing which is very much clear in the study

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is that the cost of education of state and private women colleges was more than their

income from all sources. However, in other private colleges, their total income from

all sources was more than that of their cost of education.

The study by Shah (1969) analyzes the unit cost of higher education. The study has

divided the cost of education into two main components: (a) social cost, (b)

opportunity cost. Social cost is again divided into student cost and institutional cost.

In student cost, he points out the possibility of double counting in fee and scholarship

because at one time it is the income of the institution and at the same time it is also

the part of institutional cost. Further, he also feels that there is different unit cost of

education of hostellers and day-scholars. Institutional cost can be divided into two

parts, recurring cost and non-recurring cost. In non-recurring cost, the main

components of cost are capital (land on rent and building) and equipment and in

recurring cost they are divisible and non-divisible. He also points out the

complications of calculating unit cost due to the administrative organization. The

study suggests that the recurring cost and expenditure should be done very carefully

Sharma (1969) highlights the significance of unit costs in the planning process. The

study takes into account the nature and different types of unit costs required at

different levels of education with special reference to Indian conditions, the nature of

available statistics, their coverage gap and their limitations. A method has been

developed to measure the cost per student at different levels. Various suggestions

were available for improvements in the methodology for the estimation of costs, etc.

Rao (1969) puts the main attention on the analysis of the various concept of the cost

of education, particularly the higher education, in the developing countries like India.

He discussed the economic aspect of the education. In order to study the cost of

education, he adopted several approaches. In one approach, the main component was

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the cost borne by the students. In other approach it is divided into three parts: (i)

institutional cost, (ii) student‘s cost and (iii) opportunity cost. Kulkarni‘s study (1969)

also estimates the unit cost of education from the period1962-66 at current prices. It

shows that the change in pupil-teacher ratio affects the unit cost of education. The

decline in pupil-teacher ratio increases the work load of the teachers during the period

which also leads the teachers to leave the profession. Another study by Shah (1969)

analyzes the unit cost of elementary education under two components: tuition and

non-tuition expenditure. It was found that Non-tuition expenditure of poor students is

low as compared to the rich students. This paper points out that there are disparities in

the educational standard of private and municipal schools. It suggests that this gap can

be reduced only either by reducing the burden of tuition cost or improving the quality

of teaching. The study concludes that educational expenditure at constant prices

increased at a lower rate as compared to current prices.

Pandit (1972), in his study, described the social and private cost of the resources used

in the educational process. This was the first study in India where the capital cost of

education has been measured by calculating the stock of physical capital. The study

also analyzed the share of direct cost and opportunity cost in the total private cost, and

found that the share of direct cost (tuition and non-tuition) in the total private cost had

declined, while the share of opportunity (income foregone) cost had risen. It shows

that the students‘ contribution is becoming more and more prominent in the private

cost of education. As far as institutional cost is concerned, per unit current cost had

risen while the capital cost remained constant. Thus, increase in the social cost and

that of the share of private cost in the social cost indicated the increasing participation

of private sector in education.

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Kamat (1973) made a detailed study of arts, science, commerce and technical

education. It also compares the unit recurring cost of education at various levels in the

University of Poona and found that unit recurring cost of science education is more

than the arts and commerce education. In commerce, arts and science degree courses

the unit costs were about Rs 1200, Rs. 1500 and Rs. 1800 respectively. The cost of

science courses was higher due to the cost of laboratories and equipments. Similarly,

cost of PG courses was four or five times more than degree courses. The cost of

technical and professional education like the engineering and medicine at the degree

level was four or five times higher than that of the general higher education. Kamat

made a very good attempt of comparing the cost of general higher and professional

education. This is one of the best analyses of the unit recurring cost of higher

education. Chalam (1978) analyzed the cost of education in colleges of Andhra

University. The study calculated the institutional and private cost in the colleges. And,

it was observed that institutional cost per student was almost double in the science

faculty as compare to the arts. The comparative study of cost in both faculties has

proved that major component of costs in science faculty was related with the common

services. In arts, however, the teaching cost was the major component of unit cost.

Similarly, private cost of former is less and social cost is more and private

expenditure of the students was mostly influenced by socio-economic background of

the students. Ramanujan (1979), while making a comparative study of the per student

cost in the institution of Jammu and Kashmir found that more than 80 per cent of the

total expenditure of university is consumed by salaries and very less was spent on

library and laboratories.

Prakash (1978) has developed a detailed methodology for the calculation of the unit

cost of education. Moreover, he has developed input-output models of education with

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an application to the Indian data. He has made estimates of cost of higher education in

the country. He has tried to develop the educational deflators by using various inputs

and their prices over the time. In the case of education, no separate educational

deflators are available and most of the time the consumer price index or income

implicit deflators are used. He identified various determinates of cost of education and

developed the cost of education function. Among others, the major determinants were

the academic costs, particularly the salary level, structure of providing basic

instructions, research guidance and supervision. The availability of public resources

helps in reduction of educational costs by the process of subsidization of institutional

cost of service providers. Tilak (1979) on the basis of data on higher education in

India relating to the year 1975-76, computed the unit cost of education by various

components for the different states/union territories in India. It is also attempted to

formulate a cost function with an objective of explaining differences in unit cost

between different states/union territories. The wide differences have been found in

unit cost of different type of higher education such as general, professional and other

types. Similar differences are also found in the analysis of component-wise unit cost

among different states/union territories as well as for different types of education. In

the general education, the average salary of the teacher varies between Rs. 19,546 in

Lakshadweep and Rs.975.64 in Tamil Nadu. The student-teacher ratio ranges from 61

in U.P. to 6 in Sikkim and Pondicherry. The size of institution varies between 64 in

Tamil Nadu and 2,387 in U.P. Similar picture emerged in the case of professional

education. The average salary of the teacher in Chandigarh was more than Rs. 30,000

and Rs. 3,871 in Mizoram. The student-teacher ratio varies between 6 in Mizoram and

Pondicherry compared to 35 in Meghalaya. The range in size is also quite big the

lowest figure was 30 in Mizoram with 803 in Chandigarh. Wider inequalities persist

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in the case of other education. In West Bengal, average salary of the teacher was Rs.

1990.50 while Rs. 716 in Manipal.

Sharma (1980) in order to assess the cost and efficiency in Indian university system,

made a unit cost study of the universities located in Delhi. The study also compared

per unit cost of general and professional courses for the period 1974-75 to1976-77.

The per unit current cost was estimated under the four heads: teaching; student

welfare; supporting services; and examination, and the capital cost were classified

into four categories: buildings; equipments; libraries; and others. The study concluded

that operating cost per student in affiliating universities was higher compared to that

of residential universities. Subrahmanyam (1982) by studying the expenditure and

financing pattern of Andhra University, shows that on the expenditure side, major

proportion was consumed by the teaching departments(between 40 per cent and 69

per cent). Further, in per pupil cost, larger differences were found in the non-tuition

components of the cost (general administration 20 per cent to 30 per cent, library 2.58

per cent to 9.12 per cent) rather than in the tuition cost among the students belonging

to the different income strata‘s of the society.

The study done by George (1982) measured the private and social costs of higher

education in Tamil Nadu for the period 1960-76. He found that private expenditure on

professional education was higher than that of general education. He also points out

that the poor communities lagged behind than the urban based families who were

enjoying the maximum benefits of higher education. Gupta (1982) and Shah (1987)

estimated private costs of college education and found that among the main

components of private cost, fee consisted of a very small proportion of the total

private cost.

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Todaro (1985) discussed the issues of demand for and supply of education and

concluded that private costs of education are inversely related to the demand for

education. Private costs are high at low level of education because of the low

government subsidies. Nair (1990), in his study, described the various types of costs

and their return in the case of higher education. In the case of private cost of

education, the study estimated the average per year expenditure on higher education

in Kerala and showed that tuition fees accounted for minor proportion in the

postgraduate courses during 1985-86.

Rajkumari (1986) presents the vital points in the theoretical reconstruction of cost and

benefit analysis of college education. In cost analysis, the three main components

were student cost, institutional cost and opportunity cost. In the institutional cost

(excluding value of college buildings), mainly three headings were undertaken. They

were: (i) maintenance expenditure; (ii) non-recurring expenditure; and (iii) students-

fund expenditure. After detailed analysis of cost of college education, it was noted

that average cost of all the three attributes were different. The behaviour of cost per

institution for all the colleges on different attributes was also in different order.

Taking all colleges together, the institutional cost has increased by 47 per cent during

the study period. The study also shows that among the total cost, opportunity cost has

made a big contribution, followed by student cost, and institutional cost.

Ramachandran (1987) attempted to analyze the problems of higher education in India

with special reference to the Kerala state for the period 1952-75. The study revealed

huge growth in students‘ enrolment, number of institutions and expenditures during

the study period. But the growth of expenditure was found to be higher as compared

to enrolment and institutions. The bulk of public expenditure on higher education was

spent on development and maintenance of arts and science colleges in Kerala, and the

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salary constituted the largest component in the total cost of education. While

analyzing the cost of education, Kiranmayi (1989) studies the role of organizational

structure, financial management and their weaknesses in the universities. It discussed

the pattern of income and expenditure of the universities and suggested that there was

an urgent need to evaluate their financial management. Ramamurthy (1989), in his

study, tried to analyze in the case of Delhi University the impact of introducing

computer system on its financial management. For this, the study take into account

the financial performance, resource allocation, per student cost of different

departments and percentage of expenditure of different heads. It indicates the

possibility of better cost management in the university system.

Sharma (1992) gives the state-wise detailed analysis of recurring and nonrecurring

expenditure of the central, deemed and state universities for higher general institutions

from the period 1982-85. The study reveals the income pattern, budgeting and

accounting of finances of the university level institutions in India. And, he suggested

following recommendations: (i) the universities should be given financial autonomy;

(ii), the heads of departments should be delegated adequate financial powers; and (iii)

the universities must prepare an accounts for themselves.

Dutt (1995) analyzed the cost of education of 12 colleges affiliated to the Delhi

University for the period 1976-77 and 1987-88. It was found that educational

expenditure as a proportion to income has risen from 1.26 per cent in 1950-51 to 3.30

per cent in 1992-93, but in total plan outlay, it declined from 7.8 per cent in the First

Five Year Plan (1951-56) to 4.5 per cent during the Sixth Five Year Plan (1980-85),

while the plan-wise expenditure on the university education rose from 9 per cent in

the First Five Year Plan to 19 per cent in Sixth Five Year Plan (1980-85). The average

cost per student was worked out to be Rs. 4,994. Christo‘ study (1996) held that the

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cost of medical education in a self-financing college, without any government

subsidy, was about Rs.2.25 lakh per annum. Similarly, the average cost of medical

education at the Manipal Academy of Higher Education, for the year 1993-94 to1996-

97, was about Rs. 1.60 lakh per annum for the post-graduate degrees and diplomas.

Regarding the public, private and social costs of higher education on per unit basis,

Salim‘s study (1997) is of worth quoting. It also enquires about the extent of

government subsidization of higher education to the students according to their

socioeconomic backgrounds with special reference to Kerala. This review revealed

very interesting results regarding the cost estimates of higher education courses. The

results show that during 1989-90, per student capital cost of engineering education

was more than two-and-a half times higher than that of the general education.

During1976-90, per pupil capital cost had declined marginally in the case of

engineering education, while it increased in the case of general education, in spite of

the steady rise in enrolment of students. Further, unit capital cost of government

engineering college was higher than that of the private engineering college whereas

that of the government art and science college is low in relation to its counterpart in

the private sector. Among the various components of the unit capital cost, during

1989-90, the buildings and equipments together constituted almost 75 per cent of the

cost of engineering colleges and 65 per cent of arts and science colleges. Over the

period of fourteen years, per pupil share of equipments and books had increased in the

engineering colleges, while it was the share of buildings and books which rose in the

general education colleges. Over this period, salary remained as the major component

in pushing up the recurring cost of education. Almost 66 per cent of the recurring cost

of technical education and 61 per cent of general education was taken by this item.

Regarding the estimation of private cost, according to the socio-economic background

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of the students, it was found that total private cost of engineering education was 21

per cent higher than that of general education. Interestingly, out of the total private

cost, almost 50 per cent in the technical education and 61 per cent in the general

education was allocated to incidental items of expenditure. Across the different

components of academic costs, the college fee, private tuition and books expenditure

earmarked for hostel expenses, travel and clothing. Further all students particularly

played a significant role. In the case of incidental expenses, the largest share was the

substantially reduced the costs borne by their households. PG engineering students

received considerable amount of money by way of subsidies surprisingly, the net

private cost of engineering education, which gives larger private benefits, was

considerably lower than that of the general education. Finally, a regression analysis of

factors influencing private cost of higher education showed household income as the

major determinant. The estimates of social cost revealed that only about one-fifth of

the social cost of engineering education was borne by the students, while nearly one-

half of the social cost of general education was incurred by them. The remaining part

of the social cost was borne by the government/institution. The contribution of fees in

the institutional cost was only marginal and moreover, it was declining over the time

period.

Heggade (1998) studied the resource allocation and pattern of expenditure on

education in Karnataka state during 1981-90. It also measured the institutional cost of

higher education and studied the management as well organizational problem of

higher education in the state. Sood (2003), while estimating recurring cost of

education, concludes that teachers cost account more than 90 per cent of recurring

cost of school level education in India. In his study, Kumar (2004) measures the

private cost of MBBS course in Kerala in 2000. It showed that pre-admission

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expenditure was Rs. 8,817 per student and the average post-admission annual private

expenditure Rs. 13,703 including the hostel expenses. Further, the study shows that,

the share of private cost was just 12.3 per cent in the total cost. However, institutional

cost shares a whooping proportion of 87.70 per cent. The study also shows that major

section of the students comes from the high income strata. And fees charged from

students form only a minor component of private educational expenses of medical and

para - medical courses in Kerala. Nearly, 90 per cent of the cost was incurred on non-

fee expenses.

Garg (1985) argued that the unit cost is most often expressed in terms of per student

enrolled, but these can be expressed in other definable units such as per student

graduated. The main classification of educational costs by the incidence of burden

was (a) institutional costs which is sum of (i) current or recurring or operating costs

and (ii) capital costs; (b) household or private costs which include (i) net tuition costs,

i.e. fee paid minus financial aid received by a student and (ii) non-tuition costs; (c)

social costs which is sum of (i) institutional costs (current costs and capital costs), (ii)

private costs (non-tuition costs) and (iii) earning foregone. The major components of

recurring costs in the study were: teachers‘ cost, non-teaching cost, consumable

material cost, scholarships, and maintenance cost of infrastructure (playgrounds,

repair and maintenance of capital assets, durables, unspecified items or

miscellaneous) and organization of literary activities, recreation and cultural

activities. The components of capital costs were the buildings and other capital

installation, equipments apparatus, teaching aids, library books, periodicals,

newspapers, etc. However, the private costs consisted of the tuition cost, non-tuition

cost (it includes: additional cost of living in hostels, uniform cost, transport cost) and

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opportunity cost. This was the first study which calculated per unit cost of higher

education both at the institutional and private levels in Punjab. The main conclusions

of study were: (i) unit cost of education both at current and capital level had shown an

upward trend; (ii) science departments had higher unit cost than that of others; (iii

salary component constituted the major proportion of recurring cost in each

department; (iv) subsidization of unit costs from public funds had increased over a

periods of time; (v) economic status of university students was better than that of

affiliated colleges; and (vi) demand for higher education was high from the

households belonged to the administrative and professional services. Another

significant study produced by Ghuman, Singh and Brar (2005) measures per unit

recurring cost of higher education (general and professional) for Punjab. It measures

the unit cost, financing and recovery of colleges and university level higher education.

The study shows that there has been a strong growth of private initiative in higher

education particularly in the professional higher education. It found that overall per

unit recurring cost in the case of general higher education was Rs. 13,508 during

2004-05. Per unit recurring cost was higher in the urban areas colleges (Rs. 13,506)

compared to the rural areas colleges (Rs. 10,118). However, ownership-wise, its level

was the highest in the aided private colleges (Rs. 14,600), followed by the

government colleges (Rs. 12,053), and the lowest in the unaided private colleges (Rs.

10,118). Component-wise, teachers‘ cost dominates across the ownership and

locational categories. However, administrative cost was the second highest

component of recurring cost, where it constituted between 18.16 per cent and33.22

per cent of unit recurring cost. In professional education, per unit overall recurring

cost was Rs. 1, 17,555. Out of this, teachers‘ cost was Rs. 56,967 (48.50 per cent) and

other costs Rs. 60,488 (51.49 per cent). Thus, like the general education, teachers‘

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cost and administrative cost constituted the substantial proportion of recurring cost

across all the trades/courses of professional education in Punjab. The analysis of cost

recovery of general and professional education in Punjab shows that its level was

quite higher in the professional education than that of the general education. The share

of total receipts in recurring cost was 95.72 per cent in general education, and 134.27

per cent in professional education. Moreover, fees and funds alone constituted 77.38

per cent of recurring cost of general education, and 97.34 per cent in professional

education.)

2.14.7 International trends and private higher education in India:

Of late, the debate initiated around the neo-liberal themes of privatization,

deregulation, denationalization made its inroads into the realm of higher education

with the advent of new political economy based on ―economic politics‖ applied to

―political markets‖.( Asha Gupta)

Higher education is not an exception to these trends worldwide (Gupta, 2007). With

the emergence of knowledge based and technology driven economies, we find a surge

in the demand for highly skilled and technologically competent workforce.

Worldwide 84 million students attend regular higher education institutions and about

66 million adults, including the working adults, attend some form of continuing

education and training under Life Long Learning program. Whereas the demand for

higher education is constantly rising, likely to be 160 million by 2025, the state

support in terms of funding per student as unit, is declining (Glakas, 2003). We find

shifts in expenditure from the state to the market and from the market to the

household. In some cases, household is spending up to 33 per cent on higher

education as it is seen as an embodiment of personal growth, social and global

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mobility and political and economic power. It has already become a US $3.2 trillion

enterprise in itself. For example (Glakas, 2003):

Worldwide 84 million students attend 20,000 colleges and universities.

A total of 66 million adults and more than 50 per cent of the working people

participate in some form of continuing education now.

Higher education constitutes a US$3.2 trillion market.

The entire developing world has only 15 per cent of the share.

The global demand for higher education is likely to reach 160 million by

2025.

India and China will be the two biggest countries seeking higher education.

Demand is growing at the rate of 20 per cent per annum in India.

Higher education is no longer elitist. It has become more accessible now.

There is an increase in the role of household, private and corporate sector in

higher education.

We find a surge in online and for-profit private higher education.

In 2000, global IT companies certified 1.6 million students worldwide with

2.4 million certificates in information technology itself.

Higher education is no longer seen as solely state-funded socio-political priority but

also as a service and trade in the wake of changing nature of the labour market and

technological innovations. There is a surge in online and for-profit private in the wake

of massification of higher education consumption due to the hyper-mobility in the

wake of globalization and need for trained personnel having the ability of working

comfortably in multi-cultural, multi-lingual and multi-ethnic settings(Asha

Gupta,2008).

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In his article „ Towards an Educated India: Academia – Industry Partnership”,

in the Free Press Journal, Dr. R.Gopal expressed that extremely dynamic

business world, and the rapidly developing knowledge based services economy

have put in an increased demand for professionals to merge the business

effectively. This is precisely the reason why amongst the various fields of

knowledge, the desire for acquiring management qualifications is growing

rapidly both amongst the fresh graduates and working executives. It is in this

context that the proposal corporate- academic tie up becomes crucial.

International Trends:

Whereas some studies have been carried out on the need for higher education reforms,

in general and privatization, in particular, not much has been published on the

mushroom growth of private higher education during the last three decades except

some studies such as Private Prometheus: Private Higher Education and Development

and Private Higher Education: A Global Revolution by P.G. Altbach, Higher

Education and State in Latin America: Private Challenges to Public Domain and the

Unanticipated Explosion: Private Higher Education‘s Global Surge by Daniel C.

Levy, Private Higher Education in Malaysia by M.N. Lee, Minban Education in China

by F. Yan, Private Higher Education in Post-communist Countries: In Search of

Legitimacy by S. Slantcheva, Private Sectors in Higher Education by R.L. Geiger,

Earnings from Learning: the Rise of for-Profit Universities by Breneman, Pusser and

Turner, Rethinking Public-Private Mix in Higher Education by Z. Gilani et al.

2.14.8 Private Higher Education in India:

India has a long tradition of private higher education dating back to the Gurukul

system 700 to 500 years before Christ. India has the reputation of having ―medieval

cosmopolitan universities‖, especially at Taxila and Nalanda 2000 years ago and at

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Vikramshila during the fourth and fifth centuries (Joshi, 1998), catching the attention

of all those who had keen interest in diverse cultures and ―knowledge for the sake of

knowledge‖. During colonial rule, it imbibed the British system of higher education

and values. The first three universities, modelled on the University of London, were

set up in 1857 at Mumbai, Chennai and Kolkata. The British Parliament was

persuaded to authorize an expenditure of£10,000 annually to promote English

literature, knowledge and science among the inhabitants of the British territories in

India as early as 1813 (Mukherjee, 1971, quoted from Chitnis and Altbach, 1993, p.

376). Some of the institutions were also set up by foreign missionaries, such as, the St

Stephens College in Delhi, Presidency College in Kolkata, St Joseph‘s College in

Trichi, St Xavier‘s College in Chennai, etc. The main motive of such missionaries

was to promote Christianity and western culture on the one hand and prepare Indian

nationals for government employment, on the other. The Muslims too started Dar-al-

ulum at Deoband in 1887 (Rudolph and Rudolph, 1972, p. 19). The prime objective

behind such private initiatives was social transformation and not economic gains. At

the time of independence in 1947, India inherited 20 universities and 496 colleges

with 237,546 students (Basu, 2001, p. 171) and the private sector and the households

played a substantial role in supporting higher education. During 1950-1951, the share

of Indian government in higher education was just 49.4 per cent. It rose to

approximately 80 per cent in early 1980s (Tilak, 1999, p. 129). The private sector

comprised 57 per cent of the total higher education system by the 1980s and up to 75

per cent by 1990s (Patrinos, 2002). A private university could be established through

a central or a state act by a sponsoring body, such as, a society registered under the

Societies Registration Act of 1860, or a public trust or a company under section 25 of

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Company‘s Act of 1956. Though there were many private colleges prior to

independence, there was not a single private university per se. Even today only 350

universities have the power to accord degrees and the rest are affiliated to them

(Agarwal, 2006, p. 4645).

International trends and private higher education in India:

Of late, the debate initiated around the neo-liberal themes of privatization,

deregulation, and denationalization made its inroads into the realm of higher

education with the advent of new political economy based on ―economic politics‖

applied to ―political markets‖.( Asha Gupta)

Higher education is not an exception to these trends worldwide (Gupta, 2007). With

the emergence of knowledge based and technology driven economies, we find a surge

in the demand for highly skilled and technologically competent workforce.

Worldwide 84 million students attend regular higher education institutions and

about66 million adults, including the working adults, attend some form of continuing

education and training under Life Long Learning program. Whereas the demand for

higher education is constantly rising, likely to be 160 million by 2025, the state

support in terms of funding per student as unit, is declining (Glakas, 2003). We find

shifts in expenditure from the state to the market and from the market to the

household. In some cases, household is spending up to 33 per cent on higher

education as it is seen as an embodiment of personal growth, social and global

mobility and political and economic power. It has already become a US $3.2 trillion

enterprise in itself. For example (Glakas, 2003):

Worldwide 84 million students attend 20,000 colleges and universities.

A total of 66 million adults and more than 50 per cent of the working people

participate in some form of continuing education now.

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Higher education constitutes a US$3.2 trillion market.

The entire developing world has only 15 per cent of the share.

The global demand for higher education is likely to reach 160 million by 2025.

India and China will be the two biggest countries seeking higher education.

Demand is growing at the rate of 20 per cent per annum in India.

Higher education is no longer elitist. It has become more accessible now.

There is an increase in the role of household, private and corporate sector in

higher education.

We find a surge in online and for-profit private higher education.

In 2000, global IT companies certified 1.6 million students worldwide with

2.4 million certificates in information technology itself.

Higher education is no longer seen as solely state-funded socio-political priority but

also as a service and trade in the wake of changing nature of the labour market and

technological innovations. There is a surge in online and for-profit private in the wake

of massification of higher education consumption due to the hyper-mobility in the

wake of globalization and need for trained personnel having the ability of working

comfortably in multi-cultural, multi-lingual and multi-ethnic settings(Asha

Gupta,2008).

In his article „Measuring Effectiveness of Management Education in B School –

Caring out Niche, creating Competitive Advantage “ Published in a journal

Edutech, Dr. R. Gopal stated, the need to satisfy consumers in any commercial

enterprise is obvious , more so in today‟s context. One doubts whether there is

any need to establish, the importance of creating „Customer Centric

Organization, Well, there is, Customer‟s satisfaction is true not only for any

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organization, but also for provider of management education – the Business

School (B-School).

International Trends:

Whereas some studies have been carried out on the need for higher education reforms,

in general and privatization, in particular, not much has been published on the

mushroom growth of private higher education during the last three decades except

some studies such as Private Prometheus: Private Higher Education and Development

and Private Higher Education: A Global Revolution by P.G. Altbach, Higher

Education and State in Latin America: Private Challenges to Public Domain and the

Unanticipated Explosion: Private Higher Education‘s Global Surge by Daniel C.

Levy, Private Higher Education in Malaysia by M.N. Lee, Minban Education in China

by F. Yan, Private Higher Education in Post-communist Countries: In Search of

Legitimacy by S. Slantcheva, Private Sectors in Higher Education by R.L. Geiger,

Earnings from Learning: the Rise of for-Profit Universities by Breneman, Pusser and

Turner, Rethinking Public-Private Mix in Higher Education by Z. Gilani et al.

Private Higher Education in India:

India has a long tradition of private higher education dating back to the Gurukul

system 700 to 500 years before Christ. India has the reputation of having ―medieval

cosmopolitan universities‖, especially at Taxila and Nalanda 2000 years ago and at

Vikramshila during the fourth and fifth centuries (Joshi, 1998), catching the attention

of all those who had keen interest in diverse cultures and ―knowledge for the sake of

knowledge‖. During colonial rule, it imbibed the British system of higher education

and values. The first three universities, modelled on the University of London, were

set up in 1857 at Mumbai, Chennai and Kolkata. The British Parliament was

persuaded to authorize an expenditure of£10,000 annually to promote English

104

literature, knowledge and science among the inhabitants of the British territories in

India as early as 1813 (Mukherjee, 1971, quoted from Chitnis and Altbach, 1993, p.

376). Some of the institutions were also set up by foreign missionaries, such as, the St

Stephens College in Delhi, Presidency College in Kolkata, St Joseph‘s College in

Trichi, St Xavier‘s College in Chennai, etc. The main motive of such missionaries

was to promote Christianity and western culture on the one hand and prepare Indian

nationals for government employment, on the other. The Muslims too started Dar-al-

ulum at Deoband in 1887 (Rudolph and Rudolph, 1972, p. 19). The prime objective

behind such private initiatives was social transformation and not economic gains. At

the time of independence in 1947, India inherited 20 universities and 496 colleges

with 237,546 students (Basu, 2001, p. 171) and the private sector and the households

played a substantial role in supporting higher education. During 1950-1951, the share

of Indian government in higher education was just 49.4 per cent. It rose to

approximately 80 per cent in early 1980s (Tilak, 1999, p. 129). A private university

could be established through a central or a state act by a sponsoring body, such as, a

society registered under the Societies Registration Act of 1860, or a public trust or a

company under section 25 of the Company‘s Act of 1956. Though there were many

private colleges prior to independence, there was not a single private university per se.

Even today only 350 universities have the power to accord degrees and the rest are

affiliated to them (Agarwal, 2006, p. 4645).

2.14.9 Faculty Retention:

Teacher attrition has been a topic in the Education literature for many years. It has

been claimed that teacher attrition is a major problem in our schools and that between

20% and 50% of beginning teachers decide to leave the profession in the first three to

five years (Ewing, 2001; Ewing & Smith, 2002). Teaching is usually considered a

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vocation, one involving a long term career path. Manuel (2003, p. 142) states that

teaching isn‗t usually a ―drop in, drop out or revolving door type profession.

Huberman as early as 1989 established that those who leave the profession usually do

so in the first five years of entering the profession. For beginning teachers, how they

survive the first year, if they do, can be a significant factor in decisions about

remaining in or leaving the profession (Lang, 1999). For example, a 2003 Victorian

Department of Education and Training Report reported that in the United States, a

third of teachers leave the profession within three years and almost half within five

years. In Britain, a 2003 survey by the University of Buckingham found that 30 per

cent of British teachers who left teaching that year had been in the profession for less

than five years (Hogan, 2007). The problem of faculty turnover has afflicted all

disciplines, particularly in the last ten to twenty years. The market for Ph.D.s outside

academia has grown along with the dispersion of knowledge-based activity

throughout the economy (Bowen and Schuster, 1986). Those with advanced degrees

have proven their employability in a variety of fields. Considering that professors are

paid roughly 25 to 30% less than similarly educated professionals, there is cause to

worry that an increasing number of faculty will leave for the private sector (Bell,

2001). The benchmark study of faculty mobility was conducted by Caplow and

McGee and published in 1958 as ‗The Academic Marketplace‘. Thirty years later,

Burke replicated their study, producing ‗The New Academic Marketplace‘ in 1988.

Burke found that the market for professors had become radically different over those

three decades. Beginning teachers are leaving their jobs at an alarming rate that harms

both the school, especially urban ones, and student performance (Ingersoll & Smith,

2003; Howard, 2003). Remaining employees are often forced to shoulder increased

workloads without a rise in pay. Heightened turnover often has a demoralizing effect

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on those who remain, as well as a negative effect on prospective employees. More

concretely, high turnover is associated with low job satisfaction, poor productivity,

and high stress among employees (Olsen, 1993).

In his article “Towards an Educated India: Sustainable Strategies for a B-School

in India”, in the Free Press Journal, Dr. R. Gopal expressed that faculty is the

back bone of any B-School. Faculty shortages are the order of the day inspite of

the 6th pay commission. Today commitment and loyalty from the faculty

towards the student and the organization lacks. Co-creation of the faculty, 360

degree faculty feedback, treating the faculty as family members by celebrating

their Birthdays and picnic etc., could retain the faculty pool.‟

In the research paper, Does Academic Leaders Influence Staffs‟ Commitment to

Service Quality in Malaysia?, Raemah Abdullah Hashim from University of

Management and Technology and Rosli Mahmood from University Utara Malaysia―

discussed the relationship between leadership style of transformational and the

commitment to service quality among academic staffs in public and private Malaysian

Universities. It has been argued that excellent service quality performance is one of

the key factors in building niche and having competitive edge that separates one from

its competitors nationally and globally. Total useable questionnaires were 387 with a

response rate of 36 percent. The result revealed that there is a significant relationship

between transformational leadership style and commitment to service quality among

academic staff at the Malaysian universities. This study implies to the policy makers

and academic leaders at the universities that they should focus in developing their

academic staff, by tapping their potentials, inspiring them, promoting collaboration,

motivating and reinforcing positive attitudes towards commitment to service quality.

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Nienhuis (1994) describes faculty as mobile, loyal to the discipline rather than the

institution. Considering the indications of an upward swing in both components, it is

safe to assume that faculty turnover is causing greater problems for many

administrators. Faculty who leave voluntarily tend to be characterized by a high

achievement orientation (Barnhart, 1995) Bowen and Schuster‗s American

Professors: A National Resource Imperilled, combining several studies, reports a 4%

annual rate of attrition in early 1980s. Their definition of attrition, distinct from

turnover, indicates the number of faculty who leave academia each year for reasons

other than retirement. This figure does not include those faculties who departed for

other postsecondary institutions; the rate of turnover as defined here must have been

higher than the 4% attrition rate. Based on their studies, Bowen and Schuster

predicted that attrition (not turnover) might average 4% per year into the late 1990s

and might even reach 6% by 2000. They added that if faculty positions become less

economically attractive compared to positions in private industry, the rate of attrition

could rise substantially. Though faculty salaries do lag considerably behind those of

industry, a fairly large supply of PhDs in most fields has made faculty positions

highly prized, thus potentially reducing turnover. Chairpersons wishing to retain

faculty are aware that they cannot simply throw money at dissatisfied employees.

Salary does not always provide adequate recognition or ensure contentment

(Nienhuis, 1994). One study found that higher compensation levels increased the

retention of assistant and associate professors, but had no effect on retaining full

professors (Gill et al., 1992). The same study reported that six of the top seven

reasons for departing were intangible benefits such as research opportunities.

Naturally, faculty compare not only their salaries to those in other professions, but to

other professors, in and outside of their institutions. Universities and college

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administrators must be keenly aware of the salary and benefits packages offered by

comparable institutions, but they must also watch out for disparities between and

especially within their own departments. Serious morale and collegiality problems are

posed when salary ranges are wide, and especially if junior faculty is paid higher than

senior faculty. One study found that 27% of universities had used this particular tactic

in an effort to recruit rising stars (Gill et al., 1992). In general, some research suggests

that perceived equity of pay may be a more important determinant of commitment and

satisfaction than basic level of pay (Mowday et al., 1982). Administrators should

watch for this issue of fairness and not the simple economic bottom line. There is also

non-salary incentives that can help recruit and retain faculty without raising salaries.

One is to speed up the tenure clock. The promise of lifetime job security is certainly

alluring, and can compensate for lower pay.


Dr.Gopal‟s views on the Indian Education especially w.r.t B- Schools. He

expressed that every faculty should be encouraged to attend Faculty

Development Programs, write research papers, and attend conferences. Faculty

should be encouraged to enrol him / her for the PhD program and incentives

given-like reduction in teaching load. Feedback should be taken from the

students on a periodically basis and this must be communicated to the faculty

concerned. This helps in improving the quality of teaching. Consultancy and

Management Development programs should also be encouraged by the Institute.

(S.J.Dhopte, 2011)

In addition to early promotion, institutions can offer more generous research

allowances, more frequent leaves of absence, and reduced teaching loads (Bowen &

Sosa, 1989). While each of these tactics has economic consequences, a careful

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combination of incentives and salary can end up saving money and retaining more

faculties. Also, empirically, programs of communication intervention can improve job

satisfaction, which directly supports the link between communication and job

satisfaction. The crux of the teaching profession lies in communication, and

communication is a significant and integral component of teacher job satisfaction

(Miller et al., 1988), but one major gap is the paucity of research directly dealing with

how communication variables affect teacher job satisfaction. Teacher job satisfaction

is often cited and rendered important in both research on teacher attrition and teacher

retention (Roach, 1991; Voke, 2002; Stockard & Lehman, 2004). First, some

researchers and scholars tried to understand the high teacher turnover rate among

beginning teachers by investigating the reasons and causes behind both teacher

retention and teacher attrition (Connolly, 2000; Ingersoll, 2003; Ingersoll & Smith,

2003; Howard, 2003; Inman & Marlow, 2004; Heller, 2004; Stockard & Lehman,

2004). Moreover, teacher job satisfaction is frequently associated with burnout, work

quality and professionalism. Some scholars have focused exclusively on burnout in

the teaching profession (Ebeling, 1983; Starnaman & Miller, 1992; Evan, 1999; Ven

Der Doef & Maes, 2002). Researchers try conducting model tests and examine

hypotheses of communication, burnout, organizational stressors and outcomes, and

they discover that role stressors, workloads, work assessments, and professionalism

influence teachers‘ perceptions and attitudes towards their job satisfaction. There are

many other ways institutions can actively seek to retain more faculty members. One is

to address quality of life issues more thoroughly, which could mean providing

assistance with housing or sponsoring faculty clubs. Collegiality is an often-

overlooked part of the turnover equation, although majorities of the faculty who leave

voluntarily cite personal factors such as relationships with colleagues as reasons for

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their departure (Johnsrud & Heck, 1994). Other strategies that have met with success

include spousal hire programs, formalized training programs for department chairs,

formal mentoring programs for all probationary faculties, and explicitly written

guidelines for tenure (Harigan, 1999).An oft-missing component of graduate

education is preparation for the day-to-day life of the professor. That is, graduate

students learn to be scholars, with little attention given to the other tasks a professor

must complete. Increased attention to this matter in graduate training, along with

orientation programs for new faculty, should make professors expectations for their

careers more realistic, and reduce their interest in changing jobs. High levels of stress

characterize the early years of academic appointment, but through the efforts of

colleagues and superiors, they can be reduced. Deans, chairs, and senior faculty need

to perceive support of new faculty as an investment in the success of the individual,

the department, and the institution (Olsen, 1993).

Recruiting top faculty is a major challenge for both newer schools and established

institutions. Even though the demand for business education has been growing

steadily over the last decade, the production of PhD-trained faculty has not risen to

satisfy that demand. On the contrary, it has been declining, making it increasingly

difficult for business schools to increase their faculty to meet the demand for business

programs. Presently, the biggest challenge faced by technical educational institutions

in India is the acute shortage of qualified and competent faculties (Times News

Network, 2006). The genesis of this lies in rapid mushrooming of technical

institutions on account of surging demand of technically trained manpower by fast

growing industrial sector of Indian economy; and abysmally low number of PhDs

/Fellows in technical disciplines from premier institutions opting for the teaching

careers on account of possibility of higher incomes from the non-academic career

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options (Rosenfield & Jones, 1988). Further the problem of faculty shortage has been

accentuated due to the entry of foreign universities in the India post to enactment of

provisions of GATS Agreement to education sector in India in April 2005. This has

resulted in a scenario where technical institutions in India are competing with each

other to attract & retain for them the best available faculty talent. While most higher

education institutions, especially professional institutes and colleges are able to

develop the needed skills in students for success in the working world, experience

shows that the management of upcoming technical and management institutions has

failed to be just and fair in the treatment of their faculties. (Rachit gupta*; Hemant

Chauhan**; Palki setia***, 2011) Teacher job satisfaction is often cited and rendered

important in both research on teacher attrition and teacher retention (Roach, 1991;

Voke, 2002; Stockard & Lehman, 2004). Hence it is required to manage talents and

make them feel belonging and valuable towards institution. Lynn (2002) supported

the idea that educational leaders should provide professional learning and growth

opportunities in order to motivate teachers and to enhance their performance so that

business schools can strategically manufacture the quality products in this competitive

era of today and teacher could excel in their expertise areas.

2.15 Research Gap

The study is one of its kinds. The mentioned literature of leadership styles within

academic sector and employee commitment within academic institutions as well as

the thorough literature on the education sector as given in the research study itself is

the evidence that no literature was found on the relationship between leadership styles

and employee commitment, especially in the academic sector of the Indian Sub-

continent.

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CHAPTER 3

EDUCATION SYSTEM IN INDIA

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CHAPTER 3

EDUCATION SYSTEM IN INDIA

3.1 Introduction to the Education System in India:

India is one of the world‘s oldest civilisations, dating back to 2,500 B.C. Aryan tribes

from the northwest invaded the country in about 1,500 B.C.; their merger with the

earlier Dravidian century and Turkish in the twelfth century were followed by those

of European traders, beginning in the late fifteenth century. By the nineteenth century,

Great Britain had assumed political control of virtually all Indian lands. Mohandas

Gandhi and Jawaharlal Nehru helped end British colonialism through non-violent

resistance. India achieved independence in1947. The Republic of India was

established in 1947 and comprises 32 states and Union Territories, the latter

controlled by the central government. The country covers about 3.3 million square

kilometres with a population of 1.029 billion and dominates southern Asia. It is

slightly larger than one-third the size of the United States. India is home to 17% of the

world‘s total population, accommodated in an area that is 2.4% of the world‘s total

area. India has the world‘s twelfth largest economy and the third largest in Asia

behind Japan and China, with a total GDP of around $570 billion. Services, industry

and agriculture account for50.7%, 26.6% and 22.7% of GDP respectively. The United

States is India‘s largest trading partner. Bilateral trade in 2003 was $18.1 billion.

There are some 16 official major languages and 844 dialects. Among these languages,

English enjoys associate status, but is the most important language for national,

political, and commercial communication. Hindi is the national language and primary

tongue of30% of the people. The other official languages are Bengali, Telugu,

Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese,

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Kashmiri, Sindhi, and Sanskrit. Hindustani is a popular variant of Hindi/Urdu spoken

widely throughout northern India but is not an official language. Hinduism (80.5%),

Islam (13.4%), Christianity (2.3%), Sikh (1.9%) are the major religions in the country.

The literacy rate is 52% (of the total population of age 15 or older).

3.2 STRUCTURE OF EDUCATIONAL SYSTEM IN INDIA:

Figure 6. Source: Adapted from Dogra, S. and Gulati, Anjli (2006).

Indian Education System comprises stages called Nursery, Primary, Secondary, and

Higher Secondary, Graduation & Post Graduation. Some students go in different

stream after Secondary for 3 Years Technical education called Polytechnics.

There are broadly four stages of pre-university school education in India. Names

given by the different State Governments might differ:

1. Lower Primary (class 1-5)

2. Upper Primary (class 6-8)

3. Secondary (class 9-10), and

4. Higher Secondary (class 11-12).

Lower Primary and Upper Primary together are named ‗Middle School‘; Middle

School and Secondary together are named high school. Overall, schooling lasts 12

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years, following the "10+2 pattern". However, there are considerable differences

between the various states in terms of the organizational patters within these first 10

years of schooling. The government is committed to ensuring universal elementary

education (primary and upper primary) education for all children aged 6-14 years of

age.

Primary school includes children of ages six to eleven, organized into classes one

through five. Upper Primary and Secondary school pupils aged eleven through fifteen

are organized into classes six through ten, and higher secondary school students ages

sixteen through seventeen are enrolled in classes eleven through twelve. In some

places there is a concept called Middle/ Upper Primary schools for classes between

six to eight. In such cases, classes nine to twelve are classified under high school

category. Higher Education in India provides an opportunity to specialize in a field

and includes technical schools (such as the Indian Institutes of Technology), colleges,

and universities. In India, the main types of schools are those controlled by:

• The state government boards like SSC, in which the vast majority of Indian School-

children are enrolled,

• The Central Board of Secondary Education (CBSE) board,

• The Council for the Indian School Certificate Examinations (CISCE) board,

• National Open School and

• "International schools." These schools mimic the schools in the West in pattern and

syllabi and are considerably more expensive than regular schools. The exams

conducted have the syllabus of anyone of the above-mentioned Councils or Boards.

Overall, according to the latest Government Survey undertaken by NUEPA (DISE,

2005-6), there are 1,124,033 schools.

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3.2.1 Pre-primary Education:

Pre-primary education in India is not a fundamental right, with a very low percentage

of children receiving preschool educational facilities. The largest source of provision

is the so called Integrated Child Development Services (or ICDS); however, the

preschool component in the same remains weak. In the absence of significant

government provisions, private sector (reaching to the relatively richer section of

society) has opened schools. Provisions in these kindergartens are divided into two

stages- lower kindergarten (LKG) and upper kindergarten (UKG). Typically, an LKG

class would comprise children3 to 4 years of age, and the UKG class would comprise

children 4 to 5 years of age. After finishing upper kindergarten, a child enters Class 1

(or, Standard 1) of primary school. Often kindergarten is an integral part of regular

schools. Younger children are also put into a special Toddler/Nursery group at the age

of 2–2½. It is run as part of the kindergarten. However, crèches and other early care

facilities for the underprivileged sections of society are extremely limited in number.

There are some organized players with standardized curriculums such as the

Shemrock Preschools which cover a very small share of the population. Overall, the

% enrolment is pre-primary classes to total enrolment (primary) is 11.22 (DISE, 2005-

06).

3.2.2 Elementary Education

During the eighth five-year plan, the target of "universalizing" elementary education

was divided into three broad parameters: Universal Access, Universal Retention and

Universal Achievement i.e., making education accessible to children, making sure that

they continue education and finally, achieving goals. As a result of education

programs, by the end of 2000, 94% of India's rural population had primary schools

within one km and 84% had upper primary schools within 3 km. Special efforts were

117

made to enrol SC/ST and girls. The enrolment in primary and upper-primary schools

has gone up considerably since the first five-year plan. So has the number of primary

and upper primary schools. In 1950-51, only 3.1 million students had enrolled for

primary education. In 1997-98, this figure was 39.5 million. The number of primary

and upper primary schools was 0.223 million in 1950-51. This figure was 0.775

million in 1996-97. In 2002/2003, an estimated 82% of children in the age group of 6-

14 were enrolled in school. The Government of India aims to increase this to 100% by

the end of the decade. To achieve this Government launched Sarva Shiksha Abhiyan.

The strategies adopted by the Government to check drop-out rate are:

• Creating parental awareness

• Community mobilization

• Economic incentives

• Minimum Levels of Learning (MLL)

• District Primary Education Programme (DPEP)

• National Programme of Nutritional Support to Primary Education (Mid-day

Meals Scheme)

• The 86th Constitutional Amendment Act was passed by the parliament to make

The Right to Elementary Education a fundamental right and a fundamental duty.

• National Elementary Education Mission

• A National Committee of State Education Ministers has been set up with the

Minister of Human Resource Development as the Chairperson of the committee.

• Media publicity and advocacy plans.

• Sarva Shiksha Abhiyan

However, the poor infrastructure of schools has resulted in fairly high dropout rates.

Thus, according to the DISE 2005-6 data 9.54% of the schools remain single

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classroom schools and 10.45% schools lack classrooms. The average pupil teacher

ratio for the country is 1:36, with significant variations to the upper end and 8.39%

schools are single teacher schools and 5.30% schools have more than 100 children for

each teacher; 30.87% schools lack female teachers. Only 10.73% schools have a

computer. While the education system has undoubtedly undergone significant

progress, a lot still needs to be done to enhance the learning of children from

scheduled caste (or Dalit) families, scheduled and primitive tribes and religious

minorities. Girls' enrolment continues to lag behind that of boys.

3.2.3 Non-graduation market

While availability of primary and upper primary schools has been to a considerable

extent been created, access to higher education (especially in rural areas) remains a

major issue in rural areas (especially for girls). Government high schools are usually

taught in the regional language, although some (especially urban) schools are English

medium. These institutions are heavily subsidised. Study materials (such as textbooks,

notebooks and stationary) are sometime but not always subsidised. Government

schools follow the state curriculum. There are also a number of private schools

providing secondary education. These schools usually either follow the State or

national curriculum. Some top schools provide international qualifications and offer

an alternative international qualification, such as the IB program or A Levels.

Indian Education System comprises stages called Nursery, Primary, Secondary, and

Higher Secondary, Graduation & Post Graduation. Some students go in different

stream after Secondary for 3 Years Technical education called Polytechnics. Higher

Education in India provides an opportunity to specialize in a field and includes

technical schools (such as the Indian Institutes of Technology), colleges, and

universities. (Rachit Gupta*; Hemant Chauhan**; Palki Setia***, 2011)

119

3.2.4 Higher Education

Higher education in India has evolved in distinct and divergent streams with each

stream monitored by an apex body, indirectly controlled by the Ministry of Human

Resource Development and funded by the state governments. Most universities are

administered by the States, however, there are 18 important universities called Central

Universities, which are maintained by the Union Government. The increased funding

of the central universities gives them an advantage over state competitors. The Indian

Institutes of Technology were placed 50th in the world and 2nd in the field of

Engineering (next only to MIT) by Times Higher World University Rankings

although they did not appear in the Shanghai Jiao Tong University Academic Ranking

of World Universities. The National Law School of India University is highly

regarded, with some of its students being awarded Rhodes Scholarships to Oxford

University, and the All India Institute of Medical Sciences is consistently rated the top

medical school in the country. Indian School of Business, Hyderabad and the Indian

Institutes of Management (IIMs) are the top management institutes in India. The

private sector is strong in Indian higher education. This has been partly as a result of

the decision by the Government to divert spending to the goal of universalisation of

elementary education.

3.3 Accreditation

Accreditations for universities in India are required by law unless it was created

through an act of Parliament. Without accreditation, the government notes "these fake

institutions have no legal entity to call themselves as University/Vishwvidyalaya and

Academic/employment purposes." to award ‗degree‘ which are not treated as valid for

The University Grants Commission Act 1956 explains, "the right of conferring or

granting degrees shall be exercised only by a University established or incorporated

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by or under a Central Act , or a State Act, or an Institution deemed to be University or

an institution specially empowered by an Act of the Parliament to confer or grant

degrees. Thus, any institution which has not been created by an enactment of

Parliament or a State Legislature or has not been granted the status of a Deemed to be

University is not entitled to award a degree."

Accreditation for higher learning is overseen by autonomous institutions established

by the University Grants Commission:

• All India Council for Technical Education (AICTE)

• Distance Education Council (DEC)

• Indian Council of Agricultural Research (ICAR)

• Bar Council of India (BCI)

• National Assessment and Accreditation Council (NAAC)

• National Council for Teacher Education (NCTE)

• Rehabilitation Council of India (RCI)

• Medical Council of India (MCI)

• Pharmacy Council of India (PCI)

• Indian Nursing Council (INC)

• Dental Council of India (DCI)

• Central Council of Homeopathy (CCH)

• Central Council of Indian Medicine (CC)

Higher education in India quantitatively ranks third in the world after China and the

US. There are around 16,000 colleges, 100 deemed universities, 20 central

universities and 215 state universities.

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3.4 Administration of Education

The central and the state governments have joint responsibility for education, with

freedom for the state governments to organise education within the national

framework of education. Educational policy planning is under the overall charge of

the central Ministry of Human Resource Development which includes the Department

of Elementary Education and Literacy and the Department of Secondary and Higher

Education. The Ministry is guided by the Central Advisory Board of Education

(CABE) which is the national level advisory body. The education ministers of all the

different states are members of the board. The National Council of Education

Research and Training (NCERT) (1961) defines the National Frame Curriculum for

classes I - XII. It also functions as a resource centre in the field of school development

and teacher education. State Councils of Educational Research and Training (SCERT)

are the principal research and development institutions in all the states. At secondary

level, school boards at state level affiliate schools and set examination standards in

accordance with the national framework. The Central Board of Secondary Education

(CBSE) and Council for Indian School Certificate Examinations (CISCE) cover all

India besides the National Institute of Open Schooling (NIOS).

3.5 Types of Colleges:

Colleges were mainly established by the governments or private trusts or societies. A

government college is one directly established by a state government. It functions like

any their government department. The expenditure of the college is met directly by

the government, through appropriations voted by the legislature; all the personnel

working in the college, including teachers, are government employees. All their terms

and conditions of service are the same as those applicable to the civil service

(recruitment, promotion, and retirement and staff benefits. Perhaps, the major

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departure from the regular civil servants is that teachers in government colleges have

vacations. A private college is established by a Trust or a Society registered under the

relevant laws in the country. This registration is essential to give the college a legal

status. The management of the college then vests in the Trustees, or the governing

body of the society. The Trust Deed or the Memorandum of Association of the society

would provide for the composition of the Board of Trustees or the Governing body,

and the manner of administering the college and its properties. The promoters (the

Trust/Society) make the initial investments (land, buildings, equipment and staff) and

generally seek some support from the concerned state government for maintaining the

college in later years, as education remains a state responsibility (the notion here is

that private initiatives are only to supplement the state efforts). There is a third

category of colleges, called the University Colleges. These are established and

maintained by the universities themselves either on their own campuses or elsewhere

in their jurisdiction. Such university colleges will have a management scheme decided

by the university which appoints a Managing Committee or a Governing Body. For all

practical purposes, these colleges are integral parts of the university which provides

the funding and controls its work though they have a technically differentiated

management structure. These colleges are also known as constituent colleges.

3.5.1 Colleges and the Universities:

Almost one hundred and sixty years ago, the British said that the purpose of

establishing universities in India was to encourage education in European languages

and science by conferring degrees on those who have shown evidence of having

pursued a course of study in an affiliated institution and passed the required

examination. It is unfortunate that this notion of passing an examination and securing

a degree continues to dominate the psyche of many Indian students who enrol in

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colleges. It is this relationship between the university and the college is what is known

as 'affiliation'. Most Indian Universities require the fulfilment of the following

conditions for affiliation:

The college should have a legal status (the management should be by a

Government, or a registered Trust or Society).

It should be providing instruction for courses of study prescribed by the

University.

It should have the infrastructure and staff to organise and conduct

teaching according to the standards prescribed by the university.

Teachers should have qualifications laid down by the university.

The management should undertake to meet all the expenditure required for

the maintenance of the college.

There could be a long list of these conditions going into minute details of several

requirements. It is the fulfilment of these requirements that earns for the college the

status of affiliation. And once affiliated, all that the college has to do is to teach the

courses prescribed by the university according to the syllabi set by it. After

completing the prescribed period of study, the college can present the students at the

university held examinations, and those who qualify will get the degrees. In this

scheme, teachers in colleges have not initiative left to them to decide what to teach

and how. This situation often leads to lack of enthusiasm in teaching and indifferent

teacher-student interaction. These in turn have serious consequences for the quality of

education.

3.5.2 Autonomous colleges:

It was to remedy some of these inadequacies of the affiliating system that a proposal

to convert several colleges into autonomous institutions was seriously canvassed in

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the National Policy on Education 1986. The substance of this proposal was a

transformation of the existing university - college relationship in which colleges could

take up a lot more initiative while maintaining their affiliated status. The proposal

involved: the university concerned declares selected colleges as autonomous colleges

after satisfying itself about the record of its performance, its commitment to quality,

teachers' qualifications and attainments, the quality of management and its capacity to

raise resources; on such declaration, the college would be free to prescribe its own

courses of study, design the curricula, determine the teaching methods and practices,

hold its own examinations and decide its own evaluation systems; the university

concerned will award the degrees. The response to this scheme was less than

enthusiastic. Though it was envisaged that about 500 colleges would become

autonomous during the period up to 1990, the figure has reached 150 marks at the end

of 1999. The reasons for this tardy progress are:

college teachers see the proposal as a device to break their collective strength

by separating the managements of several colleges from the existing unified

management structure of the affiliating university;

teachers and employees feel that the managements of colleges (government

and private) will become arbitrary as they will go out of the governing

discipline of the university;

teachers apprehend an increase in their workload with no corresponding

benefits;

students fear that their load will also increase as they will have more to learn;

Some universities are reluctant to lose their more prestigious institutions from

their hold.

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Whatever the reasons, the fact remains that a necessary and innovative reform which

would have brought the college' teachers centre stage in higher education is

languishing for want of support from those for whom it was designed and developed.

Managing higher education institutions in India is just like a junction, how to show

the path to the future nation builder of our country. There are very hue and cry

situations/difficulties in present Indian higher education about what to do and what

not to do. It becomes so sensitive that it creates conflict in inter and intra management

of higher education institutions. In recent years there have been debates and

controversies regarding management of higher education institutions so as to improve

their efficiency. And this has attracted the attention of academics and researchers in

the field of higher education. One cannot use a single parameter to identify the best

way of managing an institution of higher learning effectively and efficiently. However

researchers have identified a set of principles for the above mentioned purpose. We

very often use the word ―organization‖ and ―institution‖ we must however, make

distinction between the two. While an organization is both a system of consciously

coordinated activities and a rational instrument engineered to do a job, an institution is

a responsive, adaptive organism which is the natural product of social needs and

pressures. An organization is an artificially created system which strives to maximise

the attainment of objectives and of efficiency in management. The organization, in

this sense, continues to be outside the culture of the society in which it functions. An

institution is ―infused with values‖ and it comes to symbolise the community‘s

aspirations. If we look into this definition of an institution there will be general

consensus that any institution of higher learning, be it a college or university, has to

play a very broad spectrum of societal role. Hence, before building up the argument

on the managerial components of higher education institutions, we must not forget

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these fundamental aspects. (A Report: Management of Higher Education: Institutional

Level)

3.6 Universities: The Organisational Framework:

The birth of the modern university took place in India in 1857. For almost half a

century, the main functions that universities performed were to grant affiliation to

colleges, to hold examinations and to award degrees. It was only in 1904 that Indian

universities (there were only four of them) were given the power to establish

departments of teaching, appoint teachers and provide for the instruction of students

directly enrolled by them. It meant that the number of new colleges seeking affiliation

came down; it also paved the way for the establishment of new teaching universities.

Some of these new universities at Dacca, Aligarh, Banaras, Rangoon, Patna and

Nagpur were established as teaching and residential universities. This was soon

followed by similar universities set up by several princely states that comprised

British India before independence. Around the same period, a number of institutions,

founded primarily to promote a nationalist system of higher education (as against the

modern university modelled on the British pattern) also came up in several parts of

the country. These institutions functioned outside the formal structure of the

university system during the British period, and were co-opted into the formal system

after independence.

The constitutional dispensation did not permit the central government to establish

universities till it was revised in1977. Nevertheless, it was inevitable that certain

special institutions were required to be set up by the central government, and a chain

of new institutions called 'Institutions of National Importance' were soon set up. The

Indian Institutes of Technology, the All India Institute of Medical Sciences, etc. come

in this category, adding to the variations in structures.

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3.6.1 Structure of universities:

India has central and state universities, unitary, federal and affiliating universities,

institutions of national importance, institutions deemed to be universities and open

universities. The typical pattern, however, is of a state university with major financial

support from a state government and support for its developmental programmes from

the central government via the University Grants Commission (UGC) or the AICTE.

On a functional basis, institutions of higher education consist of multi-faculty

universities, single faculty universities (e.g. agricultural, technological and medical

universities,) and institutions of national importance like IITs, AIIMs, etc. in addition

to institutions deemed to be universities (BITS, IISc) and specialized universities like

women's universities, language universities, Ayurveda universities, etc. The

institutions of higher learning existing at present in India fall into the following broad

categories: Universities established under Acts of Parliament and state legislatures are

generally known as Central Universities and State Universities respectively (there are

only 15 Central Universities in India in 1999). Almost all these Universities are either

affiliating-cum-teaching or only teaching universities. They are also called federal or

unitary universities. Besides general universities which are engaged in teaching and

research in all the traditional disciplines, there are universities devoted to clusters of

specialised disciplines like agriculture, medicine, technology, languages and law. The

pattern and structure of governance of most of these universities are similar; the

management responsibility vesting with an Executive Council (also known as

syndicate or Board of Management) and the academic responsibility vesting with the

Academic Council (also known as Senate or Academic Senate). Following are the

different types of universities functioning in India on the basis of their structural

patterns.

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3.6.1.1. Affiliating universities

The affiliating types of universities have a number of colleges affiliated to a single

university after satisfying the conditions laid down by the universities. The majority

of Indian universities are primarily of the affiliating type. In the affiliating system, the

university concerned prescribes the courses of study, holds the examinations and

awards the degree while all the teaching is done by the colleges. The university has

very little to do with appointment of teachers, and the adrninistration of day-to-day

academic functioning of the colleges. All it does is to periodically review the facilities

available to them on the basis of which affiliation is renewed; the major

preoccupation of the affiliating university continues to be conducting examinations.

The teachers in the affiliated colleges have very little say in the framing of courses for

long, such universities remained only affiliating and examining bodies with no

teaching and research The University Act of 1904 made provision for teaching in the

universities as well as the appointment of the teachers by the university. Thus the

model of teaching and affiliating universities emerged at the beginning of this

century. This model accommodated not only the affiliation of colleges but also

teaching students in the university departments and its constituent colleges. Research

has also been an important activity of this type of universities. With the multiplication

of the number of universities, it became necessary to assign to each of them specific

temporal limits so that there are no jurisdictional conflicts in the matter of granting

affiliation to colleges. This statutory assignment of jurisdiction (normally a group of

districts) really meant that colleges located in those areas did not have any choice in

seeking affiliation to a university. Their affiliation to the university in whose

jurisdiction they were located became compulsory. In the case of universities which

were purely teaching this problem did not arise as their operations did not go beyond

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the campuses on which they were functioning. Nevertheless, their legislation still

defined a jurisdiction, corresponding to the campus area, so that the territorial limits

within which the universities can exercise their authority and perform their functions

are clearly specified.

3.6.1.2 Unitary Universities:

These are of relatively recent origin in India; they are modelled after the European

universities or their more contemporary counterparts in the United States. They are

essentially teaching campuses where post graduate studies and research or sometimes

undergraduate as well as post graduate classes are held. It directly controls all aspects

of curriculum transaction, including curriculum planning, teaching and examinations.

A typical unitary university comprises of several schools or faculties, each of which,

in turn comprises several departments. The school, faculty and departments are not

loose administrative units. They are more academic than administrative organs.

All the teachers are appointed by the university, and they have greater representation

on the university bodies and serve much greater role in shaping the academic

decisions of the university. It is much easier in such universities to introduce

innovative changes in terms of courses and other curricular and examination practices.

It must, however be admitted that although these universities have, perhaps,

responded to a large extent to the need for attaining excellence, their response to the

demand for access for a greater number of students, has not been as impressive as in

the affiliating universities.

3.6.1.3 Federal Universities:

These universities do not affiliate colleges; instead they have constituent colleges,

whose academic as well as administrative functions are clearly the responsibility of

the university. The university controls the design of courses, selection of teachers, and

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supervision of teaching activities and conduct of examination in constituent colleges.

Teachers in the constituent colleges have greater representation on the university

bodies in comparison with those in affiliated colleges. With the pressure of the

number of colleges, this model has over time become ineffective. For example, Delhi

University used to be largely a federal university, but now it has a more complicated

structure with both constituent as well as affiliated colleges in addition to its post

graduate campuses.

3.6.2 Universities according to role functions:

The functional types of the universities in India:

3.6.2.1 Agricultural Universities:

‗Soon after independence, Indian policy makers recognised the need for

modernisation of the agricultural sector. This essentially meant creating an

infrastructure for preparation of trained professionals in the field and for generating

new and vital technologies related to agriculture through research and development

and for making this know how accessible to farmers. Creation of agricultural

universities was primarily to institutionalize the response to the demands on Indian

higher education. The first agricultural university was the GB Pant University of

Agriculture and Technology at Pant Nagar, Uttar Pradesh. At present, 27 agricultural

Universities provide education at undergraduate and postgraduate levels and

undertake research in agricultural and veterinary sciences. In fact extension work is

increasingly being considered as the legitimate responsibility of the university in

India, and credit for this should go mainly to the model set by the agricultural

universities. The Indian Council of Agricultural Research (ICAR) does most of the

funding for these universities. Most agricultural universities are single campus

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institutions, though in some cases there is more than one campus. Some of them have

agricultural and veterinary colleges affiliated to them.

3.6.2.2 Technological Universities

These again are universities specialising in a single faculty area of engineering and

technology. The genesis of this category of universities is in the conversion of

established colleges of engineering into autonomous institutions. The first of its kind

was established in 1949 when the prestigious Thomson College of Engineering

(established in 1857) was raised to the status of a full-fledged university called the

University of Roorkee in Uttar Pradesh. In more recent times, and especially in the

last three decades, some state governments took the initiative in setting up exclusive

technological affiliated institutions of different universities within their states. They

also organised their teaching programmes. The States of Andhra Pradesh and Tamil

Nadu pioneered this movement and several others followed this example. Some of

these technological universities are among the best in the country in teaching and

research.

3.6.2.3 Medical Universities

As in the case of technological universities, the establishment of medical universities

also followed a similar pattern. To begin with, such universities were established

primarily to bring together all the medical colleges in a state affiliated to different

universities under one umbrella. Such universities were also established first in Tamil

Nadu and then in Andhra Pradesh.

3.6.2.4 Deemed Universities

Section 3 of the UGC ACT provides that an institution of higher education other than

a university which is doing work of very high standard can be declared as an

institution deemed to be a university. This provision in the UGC Act enabled the

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central government to notify, on the recommendations of the UGC, several

institutions which had made significant contributions to Education and research

outside the established university system, as institutions deemed to be universities,

these institutions were required to redesign their academic and executive management

structures to conform to the pattern of the formal universities. Such institutions enjoy

the academic status and privileges of the university and are able to strengthen

activities in the field of their specialization. Some of the prestigious institutions like

the Indian Institute of Science, Bangalore, the Birla Institute of Technology and

Science, Pilani, the Tata Institute of Social Sciences, Mumbai, the Gujarat

Vidyapeeth, Ahmedabad, and the Central Institute of English and Foreign Languages,

Hyderabad are institutions deemed to be universities. There were as many as 39 such

institutions in 1996.

3.6.2.5 Open Universities

With the purpose of democratising higher education and making it widely accessible

especially to those sections of the society which had had no opportunities for higher

education due to socio-economic or geo-demographic reasons or who had missed

higher education to enter the world of work early in life, a few open universities have

been established since the eighties. Andhra Pradesh Open University was the first of

its kind to be established in India. At the national level the Indira Gandhi National

Open University (IGNOU) was established in 1985. We shall take a detailed look at

these universities later in this course.

3.6.2.6 Institutions of National Importance

The primary responsibility for education was that of the states. Only the state could

establish universities; the centre did not have the power to do so. However, the centre

had the explicit responsibility to establish and maintain institutions and facilities

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which were of national importance. In pursuance of this power, the central

government established, under Acts of Parliament the five Indian institutes of

Technology as centres of excellence in engineering and technology education. Two

similar institutions were set up in medical education, the All India Institute of Medical

Sciences in New Delhi and the Post-Graduate Institute of Medical Education and

Research in Chandigarh. Another major institution in this category is the Indian

Statistical Institute at Calcutta. The total number of such institutions in the country is

only 12. All these are highly specialised centres with state-of- the-art facilities and

high quality expertise. Most of them are devoted to education and research and admit

students on the basis of all India selection. The Acts empower them to award their

own degrees. Most of them are funded directly by the central government and have a

governance structure comparable to that of the universities though their Governing

Bodies have a fair proportion of people nominated by the government on them.

3.6.3 Governance of Universities:

The experience of universities in the country varies depending upon the type of the

university, the period for which it has been in existence and whether it has been under

the control of the union government or a state government. One thing, however, is

common to all Indian universities and that is, that they have all been established under

legislation, central or state, and that they are all intended to function as autonomous

institutions. In addition to the state- established universities, there is another category,

namely, those which are ‗deemed to be universities'. There are quite a number of

them. They do not belong to a uniform pattern and their governance structure also

varies from institution to institution.

Briefly stated, autonomy of a university is its freedom to organize and administer its

affairs as a corporate body in accordance with the law by which it is established. The

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autonomous character of the university is reflected in its internal management, the

freedom with which it can decide its policies and programmes, appoint its personnel,

(both teaching and non-teaching), determine their relationship with one another and

facilitate their smooth functioning with a view to realizing their objectives.

Obviously, a university exists primarily for its students and scholars and, through

them and their work, for the society at large. It provides them learning opportunities

in a variety of ways through teachers in the classrooms, books in the libraries and

laboratories, opportunities of interaction with other students in seminars, experimental

facilities in the field or in the tutorials, group projects or in numerous other forums

and activities based in hostels, clubs and associations. An important source of learning

is actual experience of social and environmental realities first hand, investigation of

phenomena and situations and actual participation in activities of a creative and

developmental nature.

The university should have facilities, structures, management, and above all,

programmes available in sufficient variety so that each student can learn according to

his or her inclination, aptitude and need. It is only thus that the student can get the

best out of the university and the nation gets sustenance from its human resource

developed through the university system.

The concept of education and hence of educational institutions has undergone a great

change in recent years. Education is no longer just creation and dissemination of

knowledge. Education also has social concerns, and must grapple with the problems

of contemporary life outside its immediate areas of concern. Students and institutions

have to be involved in study, work and services related to national development which

have come to be called the third dimension of education. Research and creative

activities of the students and institutions are channelled for tackling specific problems

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of regional and national development. This new concept has great potential for

making education an investment rather than merely a social service. It should be able

to attract far more funds for its programmes and to pay back to society hands or lay

dividends through not only human resources development, but also participation and

intervention in the whole process of socio-economic and cultural development.

Through its linkages with research institutions, industry, agriculture, and the

government, the university should be in a position to enrich academic programmes

and offer a variety of services to the society.

3.6.4 Constitution of Universities:

Since the university is a creation of the legislature and legislation is always the

preserve of the government of the day, it is for the governments to decide what all

should go into the legislation when establishing a university. It is these provisions in

the Act that will ultimately determine the nature and extent of autonomy that a

university will enjoy. It should be emphasised again that autonomy is not a legal or

constitutional concept. It is the Committee on Governance of Universities said in

1971 "an ethical and an academic concept". This concept does not question the

sovereignty of the legislature to make laws or to discuss and determine the nature and

structure of universities, as well as their right and their obligations.

University autonomy does not suggest that universities are a state within a state, and a

law unto themselves. The university cannot claim autonomy as a matter of privilege,

but as a condition necessary for it to discharge its duties and obligations. The two

conditions on which university autonomy is predicated are (i) autonomy within the

university, and (ii) autonomy in relation to agencies and authorities external to it,

particularly the government. Much will depend on how the decision-making bodies of

the university are constituted and what their composition is. At this point, it is

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important to remember a major, and perhaps, a unique feature of the functions

associated with the management of universities.

Universities fall into two categories, namely, (i) functions and processes associated

with the administration of the institution, and (ii) the teaching- functions (which

management' and administration of personnel, finance, infrastructure), the second

category is all in the realm of academic management (curriculum design, instructional

system, teaching, student assessment). This latter category of functions does not

always lend itself to conventional styles and methods of management.

These two distinctive types of managerial functions are reflected in the governance

structure of universities. Every university has two important decision-making bodies.

The Executive Council (Board of Management or Syndicate) is the principal

executive body dealing with all the functions of the first category, and the Academic

council (in some cases called the Senate) is the principal academic body, taking all the

decisions in areas falling in the second category. This duality in the decision-making

processes is the unique feature of university management.

It does not follow that the broad areas of concern assigned to these two bodies are

mutually exclusive, and that there are no overlaps between them. Further, the decision

taken by one body may have implications for the other. For instance, if the Academic

Council were to decide to launch an entirely new programme, the Executive Council

will have to arrange for personnel, finances and infrastructure. On the other hand, if

the Executive Council finds that due to shortage of resources, some of the current

programmes require to be reviewed, the Academic Council will have to look at the

issues. In other words, it is necessary for the health of the university that the two

bodies function organically, with mutual respect and co-ordination though in practice

it is not unusual to see conflicts arising between the two. It is inherent in the nature of

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functions of the universities that there is always some tension between the academics

and the administrators, sometimes also institutionalised in terms of the conflicts

between the Executive and Academic Councils. Normally, while prescribing the

specify the composition and functions of these two bodies, the legislation also takes

care to matters on which, and the manner in which, either body consults the other.

However, since execution of any decision requiring funds, people and facilities is in

the domain of the Executive Council, this body is perceived to have an edge over the

Academic Council in terms of power and authority. With this understanding of a

significant complexity in the structure and pattern of governance of universities, we

shall now proceed to take a close look at the institution of these bodies, the functions

they perform and the power they exercise.

3.6.4.1 The executive council:

The Executive Council (also called Syndicate or Board of Management) is the

authority that takes all executive decisions and implements them. All administrative

and financial powers are exercised by this body. Generally the Executive Council

consists of the Vice-Chancellor as its Chairman, a Pro- Vice-Chancellor, two Deans,

three or four representatives of teachers, two or three representatives (generally

Heads) of colleges or institutions affiliated to the university, three or four nominees of

the government, and two or three members of the Senate who are external members.

There could be minor variations in this broad pattern of composition from university

to university. The significant point is that it has the majority of its members from

within the university, and an adequate representation of interests from outside. The

internal and external representation is generally in the ratio of 3:2 with the total

membership ranging between 15 and 20. The important functions of the Executive

Council are: making statutes and ordinances which govern the conduct of all the sub-

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systems of the university, control of the finances and properties, management of

personnel (recruitment, promotion, conditions of service, welfare), supervision over

the management of institutions/colleges affiliated to the university redressal of

grievances of teachers, staff and students. It should be noted however that the power

of legislation (rule-making) in all academic matters can be exercised only after

consulting the Academic Council and its views are obtained.

3.6.4.2 The academic council:

The Academic Council is the principal academic authority of the university. All

decisions on programmes, courses, teaching methods, evaluation systems, academic

standards, creation of new departments, etc fall within the purview of the Academic

Council. However, as we have said in the previous section, the scheme of university

management envisages a sharing of powers and authority between the External

Council and the Academic Council, with the former enjoying a slight edge over the

latter. The Academic Council is essentially a body comprising the academics of the

university. It is chaired by the Vice-Chancellor and consists of the Pro-Vice-

chancellor(s), all Deans, all Heads of Departments, representatives of the Heads of

affiliated institutions and colleges, and representatives of all categories of teachers

both from the Department and the affiliated institutions, and in several cases also of

representatives of students. Depending upon the 250 members where the number of

teachers is large, representation is provided normally through the method of election,

and where the number of teachers is small, a system of nomination or rotation is

followed: The important functions of the Academic Council are: 'laying down the

academic policies of the university; supervision of the academic policies and giving

directions on methods of instruction, evaluation of research and improvements in

academic standards; inter-faculty coordination for joint projects, programmes, etc.;

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recommending statutes/ordinances concerning academic matters like establishment of

departments, laboratories, research centres, committees for admission and

examination, qualification of teachers, award of degrees, diplomas and other

qualifications, conduct of examinations, institution of scholarships and fellowships,

student fees, etc. Generally, the universities will also have a set of academic

regulations that provide for procedures to be followed in various matters like

admission, examination, declaration of results, etc. These regulations are also framed

by the Academic Council. To the extent statutes/ordinances/regulations are internal

legislations, they require the approval of the Executive Council. As knowledge

expands, and the number of disciplines and specialisations within them multiply, it

becomes difficult for large bodies like the Academic Council to usefully devote

attention to all the academic problems of all the disciplines. As a measure of

decentralisation of the academic decision - making processes, most universities have

constituted faculties or schools to take care of these problems leaving the Academic

Council only to exercise a broad supervisory function. The Faculties/Schools

generally comprise related or cognate departments and subjects and function with a

broad measure of autonomy. Usually, a Faculty/School consists of the discipline or

subjects assigned to it by the Academic Council and consists of the Dean, all

Professors in the Faculty, all Heads of Departments, representatives of different

categories of teachers (Readers and Lectures), representatives of teacher from other

faculties, and a small number of external experts. The major functions of the

Faculty/School are: coordination of teaching and research in the departments assigned

to the faculty; promotion of inter-disciplinary teaching and research; prescribing

courses of study and their syllabi; appointment of Boards of Studies and Committees

for undertaking research projects; recommending the scheme of examinations and the

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methods of assessment of student performance. The Faculties consisting of the

members mentioned above generally function as the Boards of Studies in the

concerned disciplines. Wherever new programmes and courses are proposed, the

recommendations of the Faculty/School go to the Academic Council for approval

ratification. In that sense, the Faculty/School should be considered as a sub-system of

the Academic Council with no independent authority or power of its own.

3.6.4.3 The court (senate):

The structure of governance described above is the pattern that has emerged in the last

three decades or so in India. Prior to that, most universities in the country had a Court

(for Central Universities) and Senate (for State Universities). This body was the

complexity in the functioning supreme authority of a university. It worked in the older

days, but with the growing of universities, there has been a review and reformulation

of the composition, functions and powers of this body. Traditionally, the Court Senate

consisted of a cross section of the academic community (teachers, administrations and

students) and representatives of different sections of the general community outside

the university (legislators, civil servants, representatives of business/industry, the

learned professions, former students, and so on). All decisions taken by organs of the

university were subject to ratification by this body. Over a period of time, this practice

became difficult to follow as Court's ratification of all decisions could not be taken for

granted. Where the Courts disapproved decisions, friction followed and the smooth

functioning of the university became impossible. Nevertheless, the significance of

such a body, consisting as it does, of a cross section of the larger society and members

of the university community were not lost sight of. After all, a university existed for

the society, and the needs, requirements and aspirations of that society should find

fulfilment in the activities of the university. A body like the court (senate) did

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precisely that: on the one hand, it reflected the society's expectations through the

member‘s opportunity to the university community to inform the general society

about its policies, programmes and problems. This function of building bridges, of

reviewing programmes and policies on the basis of informed views and making them

responsive to social needs was considered a vital function for the management of the

university.

In recognition of this role, the Court (Senate) in later legislations were designated as a

'deliberative' body reviewing policies and programmes, making suggestions for

improvements and development, and to express views on the overall performance of

the university on the basis of its annual performance reports. With this major change

in its powers and functions, the Court (Senate) continues to be a body provided in the

Acts of most Universities in the country. Their composition as indicated above also

remains more or less unchanged. With this change in the functions and powers of the

Court (Senate), it is no more saddled with the burden of having to over-rule decisions

of the university. For that reason, some of the more recent legislations have altogether

dispensed with the provision to constitute a Court (Senate) for universities established

under them.

3.6.4.4 Finance committee:

All universities have Finance Committees which prepare the budget, set the ceilings

of expenditure and manage the university fund. It decides on investment of funds

which are not required for immediate expenditure, considers and recommends

purchases of equipment and stores, construction of buildings, considers and makes

recommendations on the annual accounts, and so on. The Finance Committee of a

University is not an independent decision-making body. It can only make

recommendations on financial matters to the Executive Council which alone can take

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decisions on them. Some Acts provide that certain matters which involve continuing

financial commitments like creation of new positions and revision of pay scales

should not be considered by the Executive Council unless the Finance Committee has

considered them in the first place, and made its recommendations. The Finance

Committee is chaired by the Vice-Chancellor. But its most important members are the

nominees (mostly officers) of the government which provide the finances. There are,

in addition, one or two members of the Executive Council and one or two external

members on the Finance Committee. In actual practice, however, the nominees of the

funding agencies play a dominant role in the proceedings of the Finance Committee.

3.7 The People Who Manage the Universities:

In the previous sections, we have looked at the corporate structure of the university,

and the powers and functions of its decision-making bodies; by their very nature,

these bodies cannot be expected to run the day-to-day affairs of the university and to

remain responsible and accountable for all that it does. This responsibility vests with

the officers of the university. We shall now consider who these people are, how they

are appointed and what functions they perform in the management of the university.

3.7.1 The Visitor Chancellor:

We have seen in the previous unit that the state performs a broad supervisory function

over the universities it has set up. However, in the exercise of this supervisory

function, an effort is made to distance the political executive from the university

management. This objective is achieved by vesting the supervisory function with the

Head of State, President of India in the case of Central Universities and Governors of

States in the case of State Universities. The University legislations make these

provisions. The Visitor Chancellor performs the following functions:

appointment of the Visitor Chancellor,

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nomination of the specified number of members on the Executive Council of

Syndicate,

approval/disapproval of statutes and ordinances or amendments to them,

institution of inquiries into mismanagement, if any

adjudication of appeals against the decisions of the university which are

perceived to be in violation of the university law.

These functions are vested in an authority outside the university to ensure objectivity

and fairness in their performance. Distancing the political executive from the

processes associated with the performance of these functions strengthens this view.

Nevertheless, to the extent that the Head of State has to perform his or her functions

on the advice of the Council of 94. Ministers, the distance remains more symbolic

than real. At any rate the Visitor Chancellor cannot be conceived as officers of the

university in the sense that they belong to the category of people who manage the

universities. Then, who are the real managers? We shall now turn to them.

3.7.2 The Chancellor

The Central Universities have a statutory office of Chancellor who is the head of the

University. An eminent person in public life is appointed to this office by the Visitor

on the recommendation of the Executive Council. He presides over the meetings of

the court and the convocations of the university. He is not vested with any other

functions or powers. The State Universities do not have a corresponding statutory

office. The Governor, who is the Chancellor, also performs these roles. To that extent,

he is deemed to be an officer of the university. This duality in the role of the

Chancellor's office in State Universities has often caused considerable ambiguity and

confusion.

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3.7.3 The Vice-Chancellor

The vice-chancellor is the administrative and academic head (Chief Executive

Officer) of the university. He/she is actually a scholar administrator. He or she is the

keeper of the university's conscience, as mentioned in the University Education

Commission Report 1948-49. And as stated by the Kothari Commission (1964-68),

he/she should be committed to the universities pursuit of scholarship and of truth. He

or she has a crucial role to play in the successful functioning of the university. The

term of appointment of a vice- chancellor is generally for a period of three years in

most of the state universities and five years in central universities. In a few states, it is

four years. It is seldom that a Vice Chancellor gets a second term. The main functions

of a vice-chancellor of a university are the following:

The vice-chancellor is ex-officio the Chairman of the Executive Council

(Syndicate or Board of Management) and the Academic Council as well as the

Finance Committee and other statutory bodies like Planning Board and

Selection Committees.

As the Chief Executive, he or she is responsible for ensuring that the

university functions in accordance with the provisions of the Act, statutes,

ordinances, and regulations.

He she is responsible for ensuring discipline among teachers, staff and

students.

In an emergency, he she can exercise any power of any authority and report

the matter to the authority concerned for ratification of the decision.

He she can delegate his powers to other officers.

The vice-chancellor of Indian universities is appointed by the Visitor/Chancellor from

a panel of names recommended by a Committee of eminent persons specially

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constituted for this purpose. These committees normally have three members - two

nominated by the Execution Council, and one by the Visitor Chancellor. The

Committee recommends a panel of three or more persons from whom the Visitor

Chancellor selects one. Generally, the person to be appointed is recommended by the

Government to the Visitor Chancellor.

3.7.4 The Pro-Vice-Chancellor / Rector

The Pro-Vice-Chancellor/Rector is the second level executive officer in a

university, who is appointed by the Executive council on the recommendations of the

vice-chancellor. In most cases he or she is selected from amongst the senior

Professors of the University though appointments from outside the university are also

possible. He or she exercises the powers and performs the duties that are prescribed

by the university or delegated by the vice-chancellor. The term of office of the

PVC/Rector is generally laid down by the Executive Council. It is normally three

years and is co-terminus with the term of office of the vice-chancellor. The Rector is

expected to share the responsibilities of the vice-chancellor in the areas assigned to

him/her. He/she also officiates for the vice-chancellor when the latter is either away

from the headquarters on official business or on leave. Hence, the prime function of

the Rector is a kind of partnership with the vice-chancellor to ensure the effective

functioning of the university.

3.7.5 The Deans

Dean of Faculty is the Head of the faculty and is responsible to the Vice- Chancellor

for the organisation of the teaching and research programmes as well as maintenance

of the standards of teaching, research and extension functions in the faculty. A Dean

is normally appointed from among the Professors in the Departments that comprise

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the faculty for a period of 2-3 years through a system of rotation according to

seniority.

3.7.6 The Registrar

The position of Registrar who is the head of the administrative wing of a university is

a key position. He leads the university's civil service, is the custodian of all university

records, and represents the university in all its dealings with the outside world. He is

ex-officio, the Secretary of all the statutory bodies of the university, issues notices for

their meetings, prepares the agenda, and also the minutes of the meetings. These key

functions of the Registrar enable him/her to occupy a position of pre-eminence in the

university management. He is privy to all discussions at the meetings of the various

bodies, and has easy and quick access to all records which together96 make him /her

most knowledgeable person as far as the university management is concerned. For

that reason, he/she is in a position to render useful advice to the vice-chancellor and

members of various authorities. The Registrar is normally appointed by the Executive

Council (Syndicate) on the recommendation of a Selection Committee presided over

by the vice- chancellor. Once appointed, he/she holds office till retirement. However,

in recent times, appointment to this office is also being made for short tenures of 5

years at a time. Although this method of appointment continues to be in vogue in

several universities, the State Governments in some cases have taken over the

responsibility for appointment of Registrars. Where, in a state, there are several

universities, a system of transfer of the Register from one university to another is also

in vogue.

3.7.7 The Finance Officer:

The Finance Officer is the manager of the University's funds and properties. The

financial management practices in the universities in India were traditionally confined

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to judiciously managing the expenditure since the largest single source of income was

95% of the total income. This required proper preparation of the grants given by the

government almost 90- budget, setting the ceilings for every item of expenditure, and

ensuring that the expenditure did not exceed the ceilings. The pre-occupation of

university Finance Departments was thus more on accounting and monitoring the

observance of procedures than mobilising resources and managing the finances. Since

the Finance Officer was a key functionary in university management, and was

responsible mainly for managing government funds, an officer from the government

used to be appointed on deputation to this position by the universities. In recent times,

some state governments have taken it upon themselves to appoint the finance officer

who then was not an employee of the university. Though this practice amounted to the

university's loss of the freedom of choice of its Finance Officer, given the dependence

on the state for funds, it had to go by the wishes of the government. (Annual Report,

Ministry of Human Resource Development, 2006-2007).

3.8 Conclusion:

There is no clear consensus on the overarching purpose of higher education with it

being a ―contested issue because [it] underpins academic values‖ (Watty, 2006: 26).

Kapur and Crowley (2008: 87) point out: ―Indeed, what is striking about higher

education is the weakness of the analytical frameworks on even the most fundamental

questions: what is the purpose of higher education? To train people for a labour force

or train a labour force that is in turn trainable by employers? To create a middle class?

Is the goal of higher education to provide a ladder for social mobility or create

national elites? To influence and mould the minds of young people‖? The answer, ―all

of the above‖, merely shifts the analytical burden.‖ The foundational principles of

higher education in the United States (US) were related to ―public benefits and civic

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virtues, in addition to the economic gains achievable by individual students‖. The

founders of Yale University in the early eighteenth century saw their task as preparing

youth for public employment in the church and the state. Thomas Jefferson in

establishing the University of Virginia saw his task as training America‘s aristocracy

for national positions of leadership (Bloom, Hartely and Rosovsky, 2007). Research

undertaken by UNESCO poses the question: ―Is the role of universities limited to

technical skills or do they have a role in shaping and modelling behaviour to shape

particular student attitudes?‖ (Burnett, 2007: 288) Heuser (2007) answers

affirmatively. He believes that whilst there will be variation between different higher

education institutes, all of them should place a priority on forming the ―professional

and attitudinal values‖ of students whilst they are pursuing higher education. Barnett

(2009a and 2009b cited in Watty, 2006) refers to dominant and marginal perceptions

of higher education. The dominant perceptions are those that are systems-based with

an external purpose focussed on the provision of skilled people for the labour market;

whilst marginal perceptions look at the internal purpose of the education process

focussing on the development of individual students‘ attitude, values and behaviour.

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CHAPTER-4

AN OVERVIEW OF THE PRIVATE UN-AIDED B-

SCHOOLS OF MAHARASHTRA

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CHAPTER-4

AN OVERVIEW OF THE PRIVATE UN-AIDED B-SCHOOLS OF

MAHARASHTRA

4.1 Introduction to Business Management Education:

Indian business management educational landscape as well as the global has become

increasingly turbulent. Competition is much stronger than before; more b-schools are

joining the market. Changing management education landscape, nationally and

globally, has encouraged the development of a market culture among business

schools. B-schools are now in a position where they have to compete for scarce

resources such as finances. To survive in this competitive environment, institutions

must have an advantage. This means that a business management institution must

provide its target market with more value than its competitors.

In a churning global marketplace, understanding the fundamental connections

between business, the environment, and society has become essential. The roles and

responsibilities of business as a global force are becoming more urgent and complex,

and concepts related to societal responsibility and sustainability are gaining

recognition as essential elements in business management. Increasing complexity and

interdependence require new approaches. Companies need integrative management

tools that help embed environmental, social, and integrative management tools that

help embed environmental, social, and governance concerns into their strategic

thinking and daily operations. They need support as they internalize and integrate

these issues into the core of businesses, engage in dialogue with stakeholders, and

report their conduct. They require talented and ethical leaders who can not only

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advance organizational goals and fulfil legal and fiduciary obligations to shareholders,

but who are also prepared to deal with the broader impact and potential of business as

a positive global force in society. Any meaningful and lasting change in the conduct

of corporations toward societal responsibility and sustainability must involve the

institutions that most directly act as drivers of business behaviour, especially

academia. Academic institutions help shape the attitudes and behaviour of business

leaders through business education, research, management development programs,

training, and other pervasive, but less tangible, activities, such as the spread and

advocacy of new values and ideas. Through these means, academic institutions have

the potential to generate a wave of positive change, thereby helping to ensure a world

where both enterprises and societies can flourish. The Management programmes help

aspiring managers to become effective decision makers in their fields through up

gradation of knowledge and managerial skills. The programme broadens the overall

perspective of the students so that they can become catalysts for change. It develops

conceptual, interpersonal and management awareness for implementation of new

structures and strategies. It also improves managerial effectiveness and prepares

managers for more senior positions. Management education trains candidates to

resolve conflicting business issues, asked to take management decisions and see the

business effects of such decisions, soon thereafter. Candidates learn to win and in

seeking to win they imbibe new forms of competitive behaviour that are ideal for

today‘s highly chaotic business conditions. The competition urges students to learn

willingly and enhance the pace of learning. The excitement of managing a company

from top downwards ensures that the learning elements are retained with candidates

longer. Management education is specifically designed to develop the business

decision- making skills of managers. Conflicting situations induce the students to take

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decisions under predetermined criteria. These situations closely resemble business

events and are indistinguishable from real life events. For the candidates, the objective

of learning is to understand complex business situations and solve problems. They

learn to take operative and strategic decisions. Competition enhances their abilities

not merely to survive, but also to emerge as leader, for their organisations. A major

learning gain is that they learn to cooperate with each other and work in teams.

Besides integrating subjects the use of simulation demonstrates the complexity of

business in terms of the dynamic interactions between functions, products and

markets. The pedagogy of Management education provides an opportunity to test

understanding and organise knowledge in a competing environment. In the era of

Globalization, students of Management will have to develop skills of quick learning

and equally quick decision making. As Managers, one will be exposed to business

without physical boundaries of the nations.

4.2 Present Situation of Business Management Education in Maharashtra

Today managers are in great demand in every sector of economy. Maharashtra needs

a huge reservoir each year of people who are trained for business and for management

and demands is to last for coming years. But it is matter of concern whether the

demand is for what they have been taught. In management education, quality has

become a necessity. To make Maharashtra an intellectual capital of the world, we

have to create a dynamic environment, which can encourage superior quality

management education colleges and effort should be made to breathe life into

management education.

P.T.O

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4.3 Growth and Meaning of Un-Aided Private B-Schools of Maharashtra:

Universities

Higher education in India has evolved in distinct and divergent streams with each

stream monitored by an apex body, indirectly controlled by the Ministry of Human

Resource Development and funded by the state governments. In India, most

universities and nearly all research institutions are public. There are some private

undergraduate colleges (mostly engineering schools) and the majority of these are

affiliated to a public university. Few others private colleges are partially-aided by the

state and central governments.

Table: 2 Bifurcations of Universities in India

TYPES OF INSTITUTIONS

NUMBER

NUMBER

State Universities 243

State Private Universities 53

Central Universities 40

Deemed Universities 130

Institutions of National Importance

(Under Acts of Parliament)

33

Institutions establishes under State

legislations

5

Total 504

Other Colleges 25,951

SOURCE: MHRD Annual Report, 2009-10

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As of March 2009, there are 504 higher education institutions and 25,951 other

colleges in India. Most of these educational institutions need recognition by a

competent body / regulatory authority that are supported by the Government of India,

State Governments or by Societies. The universities of India can be classified in

various categories like Central Universities, State Universities, Deemed Universities,

Private Universities, Agricultural universities, National Institutes of Importance and

Open Universities. Out of which 243 institutions are State Universities; 53 institutions

are State Private Universities; 40 Central Universities; 130 are the Deemed

Universities; Under Acts of Parliament 33 are Institutions of National Importance

while 5 institutions are established under State legislations. Since the State

Governments establish and plan for the colleges and universities in the states and the

Central Government does it for the Central Universities, it is essential that there is

adequate cooperation between the State Governments and the Central Government in

the field of higher education. The Central Advisory Board of Education (CABE) has

therefore been constituted to assist in the functioning of the two Governments and

ensure that parity is maintained. (Dhopte, 2011)

Regulatory System

The University Grants Commission of India (UGC) is a body of the central

government that provides support to the government-recognized universities and

colleges with funds. The University Grants Commission of India provides recognition

to the universities in India.

The All India Council for Technical Education (AICTE) is a body that is involved

in the systematic planning and organized development of the technical education

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system in the country. Presently there are a total of 1,346 engineering colleges all over

India, which have been approved by the All India Council of Technical Education.

Other Statutory Authorities like BCI, MCI, DGCA, ICAR, VCI etc. are catering

specific specialized areas. These agencies issue licenses, regulate standards, conduct

inspections and control curriculums.

The Director General of Employment and Training (DGET) under Ministry of

labour & employment is granting affiliation to ITIs and ITCs. NCVT is granting

affiliation to trades/units of ITIs/ITCs.

At present, educational institutions in India can be set up only by trusts, societies or

companies. Under Section 25 of the Companies Act 1956, the government is

planning to permit corporate houses to set up higher educational institutions — like

multi-disciplinary universities and colleges — by floating a separate not-for-profit

entity. A not-for-profit entity is one that does not distribute its surplus funds to owners

or shareholders. It, instead, reinvests these in the institute. Many private universities

in India have been set up under Section 25 of the Companies Act. However, deemed

universities are not covered by the Act. Section 25 of the Act, on the other hand,

comes under the Central Board of Direct Taxes, thus reinforcing the control of the

Centre and not the state over the manner in which the institutions are run and

financed.

The private sector is strong in Indian higher education. This has been partly as a

result of the decision by the Government to divert spending to the goal of

universalisation of elementary education. State universities and colleges are funded by

the respective states. There are also some other sources of funding. Self-financed or

private universities are not common in India although many colleges are financed by

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non-governmental sources. Only universities established or incorporated by or under a

Central Act, Provincial Act or State Act, an institution deemed to be a University

under Section 3 of the University Grants Commission Act or an institution specially

empowered by an Act of Parliament have the right to confer degrees in India.

A business school is normally a university-level institution that teaches topics such

as accounting, finance, marketing, organizational behaviour, strategic planning,

quantitative methods, etc. These include schools of "business", "business

administration", and "management". It must also make students aware of application

software such as ERP, POS, Simulation, SCM & logistics. In addition to this they

must also get to learn of the actual running of an enterprise. A business School is an

entity by itself and cannot be run as a department of a technical school now. Business

school must have a branding and that can come from the quality of teaching and their

richness. The alumni bring prestige to the school. Placement is a sequel to quality of

teaching staff and education provided in the school.

The education sector has changed a lot and as such numerous b-schools have come up

in the recent times. In respect of colleges, one can come across various kinds like

government, self-financing, aided and unaided B-Schools. It is with the advent of

globalization that aided and unaided B-Schools have now dominated the education

sector.

“Un-aided Management Institute‖ means an institute which is run by a private

management without the support of any grants from the State or the Central

Government.

The growth of industries in the Country, just after independence, also demanded the

need for qualified professionals in other fields, such as Business Management,

http://www.differencebetween.net/miscellaneous/difference-between-globalization-and-capitalism/

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Architecture, Hotel Management, Pharmacy etc. Although the diverse elements of

Management such as Commerce, Economics, Finance, Psychology and Industrial

Sociology were being taught for a long time, the need for Management Education in a

formal way was felt in India only in the fifties. The Government of India decided in

1954 to set up a Board of Management Studies under AICTE to formulate standards

and promote Management Education. Other major initiatives taken in Management

Education include: setting up of the Administrative Staff College of India at

Hyderabad in the late fifties, National Productivity Council and Indian Institution of

Management in the early sixties. Architecture was covered under the Architects‟ Act,

1972‖. Subsequently, for better coordination of the Professional Courses, Architecture

Education was also placed under the purview of AICTE.

Table No. 3. Shows Number of Private Un-Aided B-Schools of Maharashtra as

per Directorate of Technical Education, Maharashtra State, with the total

number of private un-aided B-schools in the regions of the research study.

Category Maharashtra MUMBAI

PUNE NASHIK AURANGABAD

Number of

Private

Un-Aided

B-Schools

375 75 173 35 23

Source: Director of Technical Education, Maharashtra State, Mumbai (2010-

2011)

4.4. Norms & Requirements in Private un-aided B-Schools of Maharashtra as

laid down by All India Institute of Technical Education.

All India Council for Technical Education (AICTE) was set-up in November 1945 as

a national level Apex Advisory Body to conduct survey on the facilities on technical

education and to promote development in the country in a coordinated and integrated

manner. And to ensure the same, as stipulated in, the National Policy of Education

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(1986), AICTE be vested with statutory authority for planning, formulation and

maintenance of norms and standards, quality assurance through accreditation, funding

in priority areas, monitoring and evaluation, maintaining parity of certification and

awards and ensuring coordinated and integrated development and management of

technical education in the country.

The purview of AICTE (the Council) covers programmes of technical education

including training and research in Engineering, Technology, Architecture, Town

Planning, Management, Pharmacy, Applied Arts and Crafts, Hotel Management and

Catering Technology etc. at different levels.

4.4.1. Approved Nomenclature of Post Graduate (PG) in Management Courses

The list (Refer: Annexure II) covers approved nomenclature for the current academic

year. If any Institution / University wish to propose any new course, prior

concurrence, by the Council for the same shall be necessary. For such concurrence,

Technical Institution, with due endorsement by the Registrar of affiliating

University/Board shall submit detailed syllabus content and its nomenclature to the

Council. Provided that if any Institution wishes to propose any new Course, prior

concurrence, as the case may be, by the Council for the same shall be necessary.

For such concurrence, Registrar of such affiliating University / board or Technical

Institute, with due endorsement by the Registrar of affiliating University / Board shall

submit detailed syllabus content and its nomenclature to the Council.

The Technical Institutions shall follow Norms for Intake & Number of Courses /

Divisions in the Technical Institution at Post Graduate Degree Program, Diploma

Programs, Post Diploma Programs and Post Graduate Diploma Programs level as

given below in Table.

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Table4 (i) gives the intake in the B-Schools of Maharashtra

Intake per

Division

Maximum number of PG courses and /or divisions

allowed in the New Technical campus (Single shift

working)

Division/s

Intake

Management 60 2 1

4.4.2 Admission Procedure of Private Un-Aided B-Schools of Maharashtra

Admission to first year of two year full time post graduate degree courses in

Management namely Master of Business Administration (MBA)/Master of

Management Studies (MMS)/ Post Graduate Diploma Course in Business

Management (PGDBM)/ Post Graduate Diploma Course in Management (PGDM).

The institutes which qualify for the admission process as per these rules are:

• Approved by All India Council for Technical Education (AICTE), New Delhi.

• Recognised by the Government of Maharashtra.

• Affiliated to any one of the ten Non Agricultural/Non Technological Universities in

Maharashtra state.

Following are the types of Institutes in the Maharashtra state covered by these rules;

a) All Government Management Institutes

b) All University Departments of Management

c) All University Managed Management Institutes

d) All Unaided Management Institutes and/or its Association who have given consent

to participate in the CAP rounds conducted by the State Government.

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The admission to the courses MBA/MMS is centralized and is covered under

Centralized Admission Process (CAP) carried out by the Competent Authority of the

State of Maharashtra. Admission Process (CAP) carried out by the Competent

Authority of the State of Maharashtra, the same centralized admission process as that

of MBA/MMS course.

4.4.2.1 Seats available for Admission through CAP

Table No. 4(ii) shows the seats available for allotment under CAP for un-aided

private B-Schools in Maharashtra.

Sr.No Types of the Institute Seats available under CAP

(% of *sanctioned intake)

1 Un-Aided /Stand alone Non-Minority Institute 80%

2 Un-aided/Stand alone Minority Institute The exact distribution of seats

available for website before

submission of option forms of

Centralized Admission

Process.

*―Sanctioned intake‖ means the number of seats sanctioned for admission to first year

of the course as per the State Government resolution with reference to the AICTE‘s

approval.

Types of Seats under CAP:

There are two types of Seats under CAP a) Maharashtra Seats and b) All India Seats.

Here we will be discussing only about Maharashtra seats.

Maharashtra Seats: These seats are further divided as follows,

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1. Home University (HU) seats: Certain percentage of seats of every institute is

reserved for Home University i.e. for the University under the jurisdiction of which

that institute is located. Home University seats are available for allotment through

CAP only for the Maharashtra candidates having their Home University status as of

that University.

2. Other than Home University (OHU) Seats: Certain percentage of seats of every

Institute is reserved for Other Universities i.e. for the Universities other than the

University under the jurisdiction of which that institute is located. Such seats are

called as OHU seats. OHU seats of an Institute are available for allotment through

CAP only for the Maharashtra candidates belonging to Universities in Maharashtra

State other than the University under the jurisdiction of which that institute is located.

Candidates can opt for the seat of any other University (excluding his/her home

university) under this provision of OHU seats.

Statutory reservations for candidates belonging to backward class categories as per

the relevant rules and resolutions of the Government of Maharashtra will be

applicable for admissions against the Maharashtra seats available only to the

candidates of backward class categories belonging to Maharashtra State. In Unaided

Minority Institutes, there is no reservation for backward class category candidates;

however reservation for backward class candidates can be implemented under CAP

provided that the management of the institute gives the written consent.

4.4.2.2 Eligibility Criteria:

Basic Qualification: In order to secure admission to first year of two-year full time

MBA/MMS/PGDBM/PGDM course, the candidate should fulfil the following

eligibility criteria:

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Passed with minimum of 50% marks in aggregate* ( 45% in case of candidates of

backward class categories belonging to Maharashtra State only) in any Full Time

Bachelor‘s degree of minimum three years duration in any discipline recognised by

the Association of Indian Universities

OR

Appeared** for the final year examination of any Full Time Bachelor‘s degree of

minimum three years duration in any discipline recognised by the Association of

Indian Universities. Such candidates can be considered for provisional admission

subject to passing the Degree exam with minimum of 50% marks in aggregate* (45%

in case of candidates of backward class categories belonging to Maharashtra State

only).

Eligibility Criteria for admission to Maharashtra State candidates

1. Candidate should be an Indian National and should possess basic qualification.

2. Scored 30 or more marks in the MAH-MBA/MMS-CET 2010 and appeared for the

GD & PI conducted by the Competent Authority of the Maharashtra State for the

academic year 2010-11.

4.4.2.3 Assignment of merit number:

Merit Number:

Maharashtra State Seats: Each Maharashtra State candidate who has secured 30

marks or more in the MAH-MBA/MMS-CET 2010 and appeared for the GD &

PI will be assigned a State level Merit Number, a Home University area Merit

number, Category merit no. (As applicable) etc.

4.4.2.4 Age limit:

There is no age limit for admission to first year of two year post graduate course in

Management viz. MBA / MMS / PGDBM / PGDM.

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4.4.3 Norms for Land requirement and Building Space for B-Schools of

Maharashtra (ANNXURE-II)

4.4.5 Norms for Faculty Requirements in B-Schools of Maharashtra:

Availability of Principal/Director/Dean and faculty with respect to the qualification,

experience and eligibility norms prescribed by the AICTE.

Table 5(i) gives the Norms for Cadre Ratio (PG) in B-Schools of Maharashtra

Faculty :

Student

ratio

Principal

/

Director

Professor Associate

Professor

Assistant

Professor

Total

MBA/PGDM 1:15 1 S -1

15xR

S x2

15xR

S x6

15xR

S

15

A. S= Sum of number of students at all years, *R= (1+2), #R =(1+2+6)

4.4.6 Other essential and desired facilities in B-Schools of Maharashtra:

Table 5(ii) gives the essential and desirable Facilities in B-Schools of

Maharashtra

1 Language Laboratory:

The Language Laboratory is used for language

tutorials. These are attended by students who

voluntarily opt for Remedial English classes.

Lessons and exercises are recorded on a weekly

basis so that the students are exposed to a

variety of listening and speaking drills. This

especially benefits students who are deficient in

Essential

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English and also aims at confidence-building

for interviews and competitive examinations.

The Language Laboratory sessions also include

word games, quizzes, extemporary speaking,

debates, skits etc. These sessions are

complemented by online learning sessions

which take place in the Multipurpose Computer

Lab. This Lab shall have 25 Computers For

every 1000 students.

2 Potable Water supply and outlets for drinking

water at strategic locations

Essential

3 Electric Supply Essential

4 Backup Electric Supply Desirable

5 Sewage Disposal Essential

6 Telephone and FAX Essential

7 Vehicle Parking Essential

8 Institution web site Essential

9 Barrier Free Built Environment for disabled

and elderly persons including availability of

specially designed toilets for ladies and gents

separately. Barrier Free Built Environment for

disabled and elderly persons by CPWD,

Ministry of Urban Affairs & Employment,

India.

Essential

10 Safety provisions including fire and other Essential

165

calamities

11 General Insurance provided for assets against

fire, burglary and other calamities

Essential

12 All weather approach road Essential

13 General Notice Board and Departmental Notice

Boards

Essential

14 Hostels, Playground, Gymnasium Essential

15 First aid, Medical and Counselling Facilities Essential

16 Public announcement system at strategic

locations for general announcements/paging

and announcements in emergency.

Desirable

17 Enterprise Resource Planning (ERP) Software

for Student-Institution-Parent interaction

Essential

18 Transport Desirable

19 Post, Banking Facility / ATM Desirable

20 CCTV Security System Desirable

21 LCD (or similar) projectors in classrooms Desirable

22 Group Insurance to be provided for the

employees

Desirable

23 Insurance for students Desirable

24 Staff Quarters Desirable

4.4.7 Academic and good governance parameters in B-Schools of Maharashtra.

(Refer: Annexure II)

4.4.8 Teaching and Learning Processes

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Table No.5 (iii) gives the evaluation guidelines for the teaching and learning

process.

Item

No.

Item Description-

Teaching and Learning

Processes

Evaluation Guidelines

Academic process i Published time-table with sufficient hours for

Lectures, labs, self-learning and extra-curricular

activities.

ii. Published schedule in academic calendar for

Assignments/mid a semester tests, distribution

of corrected scripts.

iii. Monitoring of Attendance,

Tutorial classes/

remedial classes/

mentoring

i. Tutorial classes to address personal

level doubts, size of tutorial classes

ii. Remedial classes and additional

make-up tests to help academically

weaker students

iii. Mentoring system to help at individual

levels

Teaching evaluation

process : Feedback

system

i. Evaluation criterion and process for feedback

evaluation

ii. Feedback analysis and reward/corrective

measures taken, if any

iii. Feedback mechanism from alumni, parents

and industry, if any

167

Self Learning and

Learning beyond

syllabus

i Flexibility in academics with scope for self

learning- provisions for advanced level and

reading courses.

ii. Generation of self-learning facilities, and

availability of materials for learning beyond

prescribed curriculum

iii. scope and mentoring mechanisms for

learning beyond prescribed curriculum

Career guidance,

Training, placement

and Entrepreneurship

cell

i. Assessment : Effectiveness, Efficiency and

Productivity

ii.Career guidance services including

counselling for higher studies

iii. Training and placement facility with

training and placement officer (TPO), industry

interaction for training/internship/placement.

iv. Entrepreneurship cell and incubation facility

Co-curricular and

extracurricular

activities

i.Co-curricular and extra-curricular activities,

e.g., NCC/ NSS, cultural activities etc.

ii. Sports grounds, facilities and qualified sports

instructors

4.4.9 Quality of Faculty & Supporting Technical Staff in B-Schools of

Maharashtra

168

Table No.5 (iv) gives the evaluation guidelines for the teaching and non-teaching

staff of private un-aided B-Schools of Maharashtra.

Item

No.

Item

Description

Evaluation Guidelines

Performance

Appraisal

i. Evaluation of Teachers by Authorities

ii. Feedback mechanism and Evaluation of

Teachers by Students

iii. Online and web based regular feed back

mechanism

iv. Mid course corrections

v. Analysis of feedback and implementation of

corrective measures

Faculty

Development

Initiatives

i. Organization participation in seminars/

conferences etc.

ii. Research Grant

iii. Career path

iv. Whether sabbatical provided

v. Other service benefit

vi. Whether faculty adequately provided financial

and administrative and Professional development

allowances / support

vii. International conferences

viii. Reward /recognition for journal publication /

patents

ix. Support for quality improvement programme and

higher studies

Faculty Retention i. Rate of attrition

ii. Percentage of faculty with beginning of

University

iii. Percentage of faculty joined within one year

iv. % vacancy against required faculty

Faculty Research i. Number of faculty members having publications

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Publications in the relevant field

ii. Faculty Research Publications in number

iii. Quality of the research papers published in the

past 3 years.

iv. Impact factor of the journals

v. Citation of the papers and H-Index

The research papers considered are those (i) which

can be located on Internet and/or are included in hard-

copy volumes/ proceedings, published by well known

publishers, and (ii) the faculty member's affiliation, in

the published paper is of the current institution.

Faculty

Intellectual

Property Rights

(IPR)

i. Number of patents filed

ii.IPR\Patents granted IPR includes awarded

national/international patents, books and copyrights.

Faculty R & D

Consultancy Work

&

Testing

i. Number of R&D Projects sanctioned

ii. The amount of the funds and/or the contributions

made.

iii. Joint collaborative research projects with other

institutes

iv. Participation in nationally co ordinate projects

v. Amount of consultancy & Testing earned

vi. Rules for distribution

Faculty Exposure

to other

institutions

and Industry

i. Interaction with a well known Institution abroad,

ii. Interaction with Institution of Eminence in India

or National Research Labs, industry

iii. Interaction with State Level Institutions and

others.

iv. MOUs with reputed institutions/ organizations

Technical Support

Staff

i. Availability of adequate and qualified technical

supporting staff for programme specific labs

ii. Incentives, skill-up gradation and professional

advancement

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iii. Online and web based regular feedback

mechanism

iv. Mid course corrections.

4.4.10. Revision of Pay Scales of Teachers and equivalent cadre in Degree/

Diploma Level Technical Education as per AICTE Scheme (6th Pay

Commission)

All India Council for Technical Education has revised the pay structure of teachers

and librarians in degree and diploma level technical education as per the 6th pay

commission recommendation vide its notification. The scheme announced by the All

India Council for Technical Education is extended to related Universities, University

Department and University affiliated Professional Degree level and Maharashtra State

Board of Technical Education, provided State Government wishes to adopt and

implement the scheme. It is also essential to ensure quality up-gradation of technical

education through close monitoring of teachers performance in these institutes. The

scheme announced by All India Council for Technical Education(as well as B-

Schools of Maharashtra) for the revision of pay scales of teachers, Librarians and

equivalent cadres in Government and Non-Government aided and un-aided Post

Graduate Degree level institutions conducting professional courses and devising

quality norms for teachers was under consideration of Government.

4.4.11. Action against ragging in B-Schools of Maharashtra:

Maharashtra Prohibition of Ragging Act 1999 and its amendments which may be

published from time to time. The Act is in effect from 15th May, 1999 has the

following provisions for Action against Ragging:

a) Ragging within or outside of any educational institution is prohibited.

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b) Whosoever directly or indirectly commits, participates in, abets, or propagates

ragging within or outside any educational institution shall, on conviction, be punished

with imprisonment for a term up to 2 years and / or penalty, which may extend to ten

thousand rupees.

c) Any student convicted of an offence of ragging shall be dismissed from the

educational institution and such student shall not be admitted in any other educational

institution for a period of five years from the date of order of such dismissal.

d) Whenever any student or, as the case may be, the parent or guardian or a teacher of

an educational institution complaints, in writing, of ragging to the head of the

educational institution, the head of the educational institution shall, without prejudice

to the foregoing provisions, within seven days of the receipt of the complaint, enquire

into the matter mentioned in the complaint and if, prima facie, it is found true,

suspend the student who is accused of the offence, and shall, immediately forward the

complaint to the police station having jurisdiction over the area in which the

educational institution is situated, for further action. Where, on enquiry by the head of

the educational institution, it is found that there is no substance, prima facie, in the

complaint received; he / she shall intimate the fact, in writing, to the complainant. The

decision of the head of the educational institution shall be final.

e) If the Head of the educational institution fails or neglects to act in the manner

specified in section ―d‖ above when a complaint of ragging is made, such person shall

be deemed to have abetted the offence and shall, on conviction, be punished as

provided for in section ―b‖ above.

4.5 Conclusion:

The State of Maharashtra is one of the prosperous States with a developed Industrial

network and rich agricultural production, the state has a high perceptive income. Each

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B - School has its 'benchmarks' and unique culture which have evolved over a period

of time which has helped in the grooming and training process of students. That is

why TISS has its own eminent position amongst the B- Schools; ISB offering one

year programme has emerged as one amongst the best B-Schools, though unapproved

and the honourable HRD Minister presided over their convocation. It is the market

forces and the competition among the Schools, which will enhance the quality

standards. It is the spirit in the minds of the educationists to innovate and excel which

will accelerate the quality standards in management education and not the enforced

laws which are framed arbitrarily. It is high time that true leaders are brought in at

helm of affairs so that the conflicts, the confusions and uncertainty amongst the B-

Schools are eliminated as concerning the present area of research study. Control

system has never succeeded in the long run.

The mindset of the nation can be aptly described from the words of what Anna Hazare

said recently in Delhi, "There is no faith left in politicians and bureaucrats and it is

time that people be allowed to decide what they want".

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CHAPTER-V

OBJECTIVES, HYPOTHESIS AND RESEARCH

METHODOLOGY

174

CHAPTER-V

OBJECTIVES, HYPOTHESIS AND RESEARCH

METHODOLOGY

5.1 Statement of Research Problem:

The concept of leadership (Kotter, 1988) and organisational commitment (Mathies &

Zajac, 1990; Mowday, Porter, & Steers, 1982; Steers, 1977) have been key areas of

research for theorists and researchers in the field of organizational behaviour for

decades. However, the roles of leadership and organizational commitment have not

been clearly articulated or documented.

There is a widespread notion that if employees are not committed to their

organization, the success of the organisation is at risk. Despite the importance of the

subjects of leadership and employee commitment to any organization, the two

subjects have been almost neglected by researchers in India. In reviewing the

Literature, the researcher did not find any study that examined the relationship

between leadership and employee commitment in the Indian setting. Therefore the

researcher focused on both these areas – leadership styles and employee commitment.

It also investigated the relationship between these variables and determined the effects

of selected demographic factors upon the level of commitment among the academic

faculties of the private un-aided B- Schools of Maharashtra. In doing so, this study

will contribute to the literature in the field of organizational behaviour, in general, and

leadership and organizational commitment in particular.

175

5.2 Research Questions:

1) To what extent are faculties of private unaided B-Schools of Maharashtra

committed to their organizations?

2) What Leadership characteristics do Deans/Directors of private un-aided B-

Schools of Maharashtra possess as interpreted by the faculties under them?

3) What are the effects of the Dean‘s and Director‘s perceived leadership

characteristics on the level of employee‘s organizational commitment?

4) Is there a difference in the level of commitment among academic faculties on

the basis of demographic and job related variables?

5) Is there a difference of Leadership styles perceived and expected by the

academic faculties from their respective Deans and Directors?

5.3 Scope of the Study:

The study is restricted to the level of academic faculties of private un-aided B-Schools

of Maharashtra. It could be extended to the lower levels, concerning the non-teaching

staffs of the private un-aided B-Schools as well as to the higher levels where the

Deans and Directors could judge the leadership styles followed by the trustees. The

study could also be extended to other states of India and globally too.

5.4 Purpose of the Study:

The results of the study would help the Heads and the Directors of the B-Schools to

determine the types of leadership styles to adopt in order to induce and maintain trust

and organizational commitment from their employees.

This study examined the relationship of each of the three leadership styles identified

by Bass and Avolio (1985) with the level of employee commitment among the

176

academic faculties of the B-schools of Maharashtra. Specifically the aims of the study

were as follows:

1) To study the level of commitment among the academic faculties of the B- Schools

of Maharashtra.

2) To study the relationships between the transformational, transactional, and laissez-

faire leadership styles and the level of employee commitment among the academic

faculties of the private unaided B-Schools of Maharashtra.

3) To study the difference between employees expected leadership style from their

superiors and as observed by them in their superiors.

4) To study the effects of age, level of education, marital status, and job-related

variables (internal promotion, occupational status, salary, and length of service) on the

level of commitment of the academic faculties of private un-aided B-schools of

Maharashtra.

5) To study the impact of transformational leadership style on the academic faculties

of the B-Schools of Maharashtra in comparison to the other two leadership styles.

5.5 Objectives:

The research objectives were:

1) To study the relationship between the Transformational, Transactional and

Laissez-Faire Leadership Styles of the Heads/Directors and the level of commitment

among the academic faculties of private un-aided B-Schools of Maharashtra.

2) To study the impact of Transformational Leadership Style on the academic

faculties of the selected private un-aided B-Schools of Maharashtra in comparison to

the Transactional and Laissez-Faire leadership styles.

177

3) To study the differences in Leadership Styles of HOD/Directors as observed and

expected by the academic faculties of the private un-aided select B-schools of

Maharashtra.

4) To determine the effects of age, level of education, marital status, gender,

educational qualifications and job-related variables (Occupational status, salary and

length of service, internal promotions) on the level of commitment of the private un-

aided selected B-School‘s academic faculties of Maharashtra.

5) To study the level of commitment among the academic faculties of the private

un-aided select B- Schools of Maharashtra.

5.6 Statement of Hypothesis:


of the Departments has no positive impact on the level of employees‘ commitment of



of the Departments/Directors has a positive impact on the level of employees‘



the Departments/Directors has no positive impact on the level of employees‘


H12 : The Transactional Leadership Style (as observed and expected) of the Heads of

the Departments/Directors has a positive impact on the level of employees‘


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have a greater impact on the level of employees‘ commitment compared to the


H13 : The Transformational Leadership Style (as observed and expected) of the Heads


a greater impact on the level of employees‘ commitment compared to the



has no negative impact on the level of employees‘ commitment of private un-aided B-



has a negative impact on the level of employees‘ commitment of private un-aided B-


H05: There is no difference between the expected and observed leadership styles of the


the level of employee‘s organizational commitment.

H15: There is difference between the expected and observed leadership styles of the


employee‘s organizational commitment.

H06: Together the Transformational and Transactional Leadership Styles of the Heads


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have a greater impact on the employee‘s commitment level, rather than either of the

two separately.

H16 : Together the Transformational and Transactional Leadership Styles of the Heads


a greater impact on the employee‘s commitment level, rather than either of the two

separately.

H07 : There will be no positive relationship with the level of education and the level of

employees‘ commitment of private un-aided B-Schools of Maharashtra.

H17 : There will be a positive relationship with the level of education and the level of


H08 : There will be no positive relationship with the age and the level of employees‘


H18: There will be a positive relationship with the age and the level of employees‘


H09: There will be no positive relationship between occupational status and the level

of employees‘ commitment of private un-aided B-Schools of Maharashtra.

H19: There will be a positive relationship between occupational status and the level of


H010: There will be no positive relationship between pay (salary) and the level of

employees of private un-aided B-Schools of Maharashtra.

H110: There will be a positive relationship between pay (salary) and the level of


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H011: Married Employees of private un-aided B-Schools of Maharashtra will not be

more committed to their organization than single, divorced and widowed employees.

H111 : Married Employees of private un-aided B-Schools of Maharashtra will be more

committed to their organization than single, divorced and widowed employees.

H012: Male gender of private un-aided B-Schools of Maharashtra will not be more


H112: Male gender of private un-aided B-Schools of Maharashtra will be more



Maharashtra will not be more committed to their organization.


Maharashtra will be more committed to their organization.

The major purpose of this study was to examine the effects of the leadership styles of

the Heads and the Directors of the private un-aided B-Schools of Maharashtra

(transformational, transactional and/or laissez – faire) as perceived by their academic

faculties on the level of organizational commitment of employees. Another purpose

was to determine the level of organizational commitment and the prevailing

leadership style among the B-School employees. The final purpose was to examine

the effects of a number of relevant variables (satisfaction with the leader, age, level of

education, marital status, occupational status, salary, length of employment and

internal promotion) on the level of organizational commitment. This chapter presents

a detailed description of the population and sample selection, measurement, data

collection, and data analysis tools.

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5.7 Population and Sample Selection

This study was conducted in Maharashtra, India. The targeted population for the study

was the full-time academic faculties of private un-aided B-Schools of Maharashtra

who are subjected to the field of education. The official number of the academic

faculties of the B- Schools of Maharashtra were approximately 4950.There are some

reasons behind the selection of the academic faculties of the B-Schools of

Maharashtra as the subjects for the current study. First, the researcher had time

limitations which prevented the inclusion of other academic faculties of B-Schools

belonging to other states of the country. Second, the academic faculties who are

supposed to be building the future managers for the corporate and industrial sector

represent the pillar of the modern business world. These academicians can bring in

change in shaping the future business world through their researches and imparting

their knowledge to the future managers which might percolates through the system for

the betterment of future business world. Third, B-Schools from the last two decades

turn out to be the most important academic qualification for holding managerial

position in corporate sector. Students from all streams be it Engineering, Commerce,

Arts, Science take up management course to hold managerial position in their service

life. Employers also preferred candidates having management degrees for managerial

positions. Fourth, since the researcher had previously worked for one of the private

un-aided B-Schools of Navi Mumbai, it was more attractive subject of interest to her

than any other sector. Lastly, so far no study was made in Indian sub-continent in the

academic sector, subject to leadership and employee commitment.

182

5.8 Sampling Design:

This study was conducted in Navi-Mumbai, Mumbai, Pune, Nasik, Aurangabad area

of Maharashtra. The targeted population for the study was the full-time academic

faculties of private un-aided B-Schools of Navi-Mumbai area. There are altogether

390 B-schools in the Maharashtra according to DTE Report 2010-2011.The study has

been conducted in 47 B-Schools of the above mentioned regions of Maharashtra.

Sample Size: According to formula – SS = Z2 *

(P) * (1 – p)

C2

Where –Z = Z value (e.g., 1.96 for 95% confidence)

P = Percentage picking a choice, expressed as decimal (.5 used for sample size

needed)

C = Confidence interval expressed as decimal (e.g., .04 = + 4)

Total Population is 4590 academic faculties of b – schools of Maharashtra.

Total number of sample is 570 academic faculties of b – schools of Maharashtra.

5.9 Data Source:

5.9.1 Descriptive Survey:

Review of literature and other available information from various published and

unpublished reports, journals, and periodicals, books, newspapers, etc. (including

databases like EBSCO, Pro-quest, and others).

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5.9.2 Field Survey:

5.9.2.1 Research Tool:

The research instrument used for collecting primary data was questionnaire. The

Questionnaires used for the final data collection were close ended questionnaires.

Different Questionnaires used for different variables of the study were as follows:

5.9.2.1 Questionnaire for employee commitment.

Questionnaire for demographic details: Age; Educational Qualifications; Marital

Status; Occupational Status; Monthly Income(Salary);Length of Service; Gender;

Internal Promotion..

5.9.2.2 Questionnaire for Leadership Styles:

(a) Transformational

(b) Transactional

(c) Laissez-Faire.

The following are the criteria‘s for Multi factor leadership questionnaire for

Transformational leadership style:

Builds Trust (IA- Idealized Attributes) -Transformational

Acts with Integrity (IB- Idealized Behaviours) -Transformational

Inspires Others (IM- Inspirational Motivation) -Transformational

Encourages Innovative-Transformational

Thinking (IS- Intellectual Stimulation) –Transformational

Coaches People (IC- Individual Consideration) 5-TransformationalI'

The following are the criteria‘s for Multi factor leadership questionnaire for:

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Transactional leadership style: 2.10

Rewards Achievement –Transactional

(CR- Contingent reward) - Transactional

Monitors Mistakes Transactional

(MBE-A: Management-By-Exception: Active )Transactional

(MBE-P: Management-By-Exception: Passive) - Transactional

Avoids Involvement –Laissez Faire (LF)

5.10 Pilot Study:

A total of 150 questionnaires were distributed among the academic faculties of private

un-aided B-Schools of Navi-Mumbai area, out of which 91respondent‘s instruments

were analysed. The final questionnaire had been moderated based on the pilot study.

The reliability test of the questionnaire was made and was found to be good.(For

Reliability Test refer Annexure II).

5.11 Data Collection for the Main Research Study

Data Collection began after the approval has been acquired from the dissertation

committee particularly from Dr.R.Gopal (Director of the Department of Business

Management) and Dr.Pradip Manjrekar (Dean of Business Management

Department, Padmashree Dr.D.Y.Patil University). In Maharashtra where the study

was conducted, the researcher seek permission from the directors of each B-schools

before conducting the data collection by distributing the questionnaire among the

academic faculties of the departments of each of the private un-aided B- Schools. The

questionnaire was validated and the reliability of the questionnaire was measured too.

Each questionnaire included a cover letter containing statements assuring the

185

respondent of anonymity and confidentiality. The letter also included clear and

specific directions to fill up the instrument of the study.

To help solicit the sample and prevent management intervention, the researcher

distributed and collected the entire questionnaire herself. The department helped the

researcher by providing her the necessary information needed in the data collection.

Some of the B-Schools also assigned an office for the researcher which facilitated the

process of distributing and collecting the questionnaire. The researcher also explained

the purpose and benefit of the study and encouraged the respondents to complete the

questionnaire.

Before distributing any questionnaire, the researcher met with the Heads/Director of

the departments of the selected B-Schools of Maharashtra and explained the

distribution and collection plan. To obtain a high response rate and more accurate

results, the researcher requested that each department head allow her to distribute the

questionnaire to all the academic faculties. It should be noted that a small percentage

of the targeted population did not participate in the study for various reason. For

example, the employees who were on vacation or participating in training or

MDP/FDP programmes outside the college were absent during the study. In addition a

few faculties refused to participate and answer the questionnaire. Departments Heads

left while the survey was conducted and were not present when they were returned to

the researcher.

Within a year 850 questionnaires were distributed out of which 690 were returned

back. 120 questionnaires were excluded because they were incomplete. Hence the

final number of completed questionnaire was 570.

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Given below is the bifurcation of the data collected from different geographical

regions of Maharashtra in tabular form:

Table 6: Area vies Collection of the Research Data

Sr.No. Geographical regions of

Maharashtra.

Strength of B-School‘s Academic

Faculties.

1. Aurangabad 100

2. Nasik 60

3. Pune 130

4. Mumbai 145

5. Navi-Mumbai 135

5.12 Measurement of the Data

The questionnaire used in this study is in two separate sets to measure the variables

and test the hypotheses. The first set consisted of three major parts which is meant to

be filled up by the supervisors and the second set consisted of four major parts which

is meant to be filled up by the subordinate employees working under the leadership of

the supervisor/Head/Director of the department. The first part of the supervisor‘s

instrument dealt with organisational commitment (15 items). The second part was

composed of items concerning leadership styles (30 items). The third part included

eight questions regarding demographic backgrounds about the respondents such as

age, education, marital status, occupational status, salary, length of services, gender,

internal promotion.

187

5.12.1 Organizational Commitment of Employees

Organizational commitment of employees was measured using the organisational

commitment questionnaire (OCQ)developed by Porter and his associates in 1974.This

instrument was designed to measure the relative ―strength of an individual‘s

identification with and involvement in a particular organisation‖(Pg.604). According

to this definition, organizational commitment could be characterized by at least three

factors: (1) a strong belief in and acceptance of the organization‘s goals and values;

(2) a willingness to invest considerable effort on behalf of the organization; and (3) a

strong desire to maintain membership in the organization (Mowday et al.1982). The

OCQ consists of 15 items, and each item was measured on a seven point Likert scale,

ranging from 1 (strongly disagree) to 7(strongly agree). To reduce response bias, six

items(item 3,7,9,11,12 and 15)in the instrument were negatively phrased and reverse

scored. To arrive at a summary indicator of employee commitment, scores for all

items are were summed and divided by 15. The higher the score, the greater the

individual‘s commitment to the organization.

Mowday et al. (1982) reported the results of the administration of the OCQ to 2,563

employees working in a wide variety of jobs in nine different types of organizations.

The results indicated that the questionnaire showed sufficient validity and reliability.

Reliability has been defined as ―a matter of whether a particular technique, applied

repeatedly to the same object, would yield the same result each time‖ (Babbie 1995.

P.124). Validity ―refers to the extent to which an empirical measure adequately

reflects the real meaning of the concept under consideration‖ (p.127). Many

researchers suggested using the OCQ. For example, Morrow (1983) supported the use

of the OCQ and argued that the questionnaire has received substantial support

regarding its reliability and validity. Mowday et al. (1979) conducted a study using

188

the OCQ. Their results showed a consistently high coefficient alpha, ranging from .82

to .93. They added that the questionnaire has demonstrated good psychometric

properties and has been widely used by researchers. It has been used in at least 100

published studies, of which 17 were international in scope (Mathieu & Zajac, 1990).

Further, the popularity of the questionnaire led Reichers (1985) to suggest that the

ECQ has become the approach to Organizational commitment.

5.12.2 Leadership Styles

Leadership styles were measured using the latest version of the Multifactor

Leadership Questionnaire (MLQ)(Form -5x-short)developed by Bass and Avolio

(1995). This questionnaire (MLQ),which has been tested and revised over the years, is

often used to measure transformational, transactional and Leissez-faire Leadership

style. The central thesis of the MLQ is derived from Bass‘s (1985) augmentation

theory of transactional and transformational leadership. According to Bass and Avolio

(1990), transformational leadership is a leadership style that strives to elevate the

desires of individual followers for achievement and self-development, while also

promoting the development of the group and organization. Further, transformational

leadership ―goes beyond exchanging inducements for desired performance by

developing, intellectually stimulating, and inspiring followers to transcend their own

self-interests for higher collective purpose, mission, or vision‖(Howell &

Avolio,1993,p.891).With regard to transactional and laissez-faire leadership styles,

Burns (1978) viewed transactional as a type of leadership based on an exchange

process between leaders and followers. Laissez-faire leadership represents a style

used by leaders who try to avoid responsibility and decision-making (Bass, 1997).

189

In developing the MLQ (Form-5x), Bass and Avolio (1995) wanted to create a survey

instrument that could adequately explain the ‗full range‘ of leadership styles, which

includes highly transformational leaders at one end to those which are highly avoidant

at the other end. In addition, the development of the MLQ (Form-5x) occurred as a

response to criticisms of the old version of the MLQ (MLQ Form-5R) raised by

several scholars. According to Bass and Avolio (1995), over the last four years, the

MLQ (Form-5x) has been used in about 200 research programs, master theses, and

doctoral dissertations around the world. They also stated that the instrument has been

into German, French, Spanish, Arabic, Chinese, Hebrew, and Korean for use in

different research projects.

In the present study, employees were asked to rate their immediate supervisors (Head

of the department / Director of the institute). It has been found that in many of the B-

schools in spite of the designated HOD of the department, the employees are found to

be directly reporting to the Director of the institute. The questionnaires for

measurement were taken into account as per the applicability. This set of

questionnaire which is meant for the sub-ordinate employees were having two sets of

MLQ. One set defining the Observed Leadership style of the Director and the other

set defining the expected leadership style from the director by the employees.

Therefore, the MLQ rater form (5x-short) was used to measure the transformational,

transactional and Leissez-faire leadership style as followed and as perceived and

expected by the employees. In addition to measuring these characteristics, the MLQ

Rater Form (5X-Short) was used to assess employees level of satisfaction with the

leadership behaviour exhibited by their supervisors. The current study included only

30 items relating to 10 scales out of 45 items relating to 12 scales of MLQ. The scales

related to Transformational Leadership were idealized influence (attributed), idealized

190

influence (behaviour), inspirational motivation, intellectual stimulation, and

individual consideration. Contingent rewards, management exception (active),

management by exception (passive), were associated with Transactional Leadership

scales. The remaining two scales indicated laissez –faire leadership and satisfaction

with leader. While all the leadership style scale has four items, satisfaction with the

leader scale has only two items. Each item was rated on a Five point frequency scale

ranging from 1 (not at all) to 5 (frequently, if not always). The MLQ scores are the

average score from the items on the scale. The score can be derived by summing the

items and dividing by the number of items that make up the scale.

The validity and reliability of the MLQ have been empirically established. Based on

the results of nine studies conducted on various organizations and using the

experimental form of the MLQ (5X), the questionnaire showed a satisfactory level of

internal consistency. Further, the reliability for the total items and for each leadership

factor scale ranged from .74 to .94 (Bass & Avolio, 1995) and exceeded the standard

reliability cut-off of.70 recommended by Fornell and Larcker (1981). In general, the

MLQ (5x-Short) ―appears to be an adequate test with good construct validity,

adequate reliability, and a good research base‖ (Jabati, p.39).

5.12.3 Age

This variable was measured by asking the respondent to choose the category for his

age range. Three categories were included. The first category was 20-29 years, the

second category was 30-39 years, the third category was 40years and above.

P.T.O

191

5.12.4 Level of Education

Level of education was measured by asking the respondent to select the category that

indicated his educational level. There were four categories, ranging from graduation

through various streams (BA/BCom/BSc/BE), Master Degree (MA/MCom/MSc/ME

along with MABA/MMS to a doctorate degree.

5.12.5 Marital Status

Marital status was measured by asking the respondents to mark the category that

described their situation. Married (Coded 1), divorced (coded 2), single (coded 3), and

widowed (Coded 4) were the categories to choose among. (See Annexure-II).

5.12.6 Occupational Level

This variable was measured by asking the respondent to select the category that

indicated his occupational position. The occupational level scale consisted of four

categories. The first category (coded 1) included the lecturers, the second category

(coded 2) included the Assistant Professor, the third category included the Associate

Professors and the fourth category included the professors. (See Annexure-II).

5.12.7 Salary

Salary (monthly income) was measured by asking the respondents to select the

category that reflected their salary range. The salaries were broken into five

categories. The first category (coded 1) included salaries above 45K,the second

category included salaries ranging from 35-44K,the third category included salaries

ranging from 25-34 K, and the fourth category included salaries between 15-24

K.(See Annexure-II)

192

5.12.8 Length of Service

Length of service was measured by asking the respondents to select the category that

indicated the number of years of their employment in the B-Schools they were

currently in service. The categories were coded as follows: 1 = Upto 5 years, 2 = 6 to

10 years and 3 = more than 10 years.

5.12.9 Gender

Gender was measured by asking the respondents to select the category that indicated

the male and female status of the respondents. The first category (coded 1) included

the male and the second category (coded 2) included the female.

5.12.10 Internal Promotion

Internal promotion was measured by asking the respondents to select the category that

reflected their internal promotion. The period of the internal promotion of the

respondents were broken into three categories which indicated the promotion taken

place within the time span of the respondent‘s career in a particular institute. The first

category (coded 1) indicated the period ranging from 0-2 years, the second category

indicated the period ranging from 3-6years, the third category included the period

ranging from 7-10 years.

5.13 Reliability of the Study Instrument

In this study, reliability tests were performed to assess the internal consistency of each

measure. Cronbach‘s Alpha coefficients were reported as follows: .83 for the

Organizational Commitment Questionnaire, .91 for the MLQ Leadership Style

Questionnaire. (Refer Annexure-IIA)

193

5.14 Data Analysis Tools

To analyze the collected data and test the expectations and hypotheses, the Statistical

Package for Social Sciences (SPSS: Version 17 &20) for Windows 2007 was utilized.

A number of Statistical tools were used. These included descriptive statistics to

describe different characteristics of the respondents. Simple individual regression

analysis was utilized to analyze the relationships between the dependent variable

(organizational commitment) and each of the selected independent variables. Multiple

regression analysis was used to determine the magnitude of the relationship between

the dependent variable (organizational commitment) and all the independent variables

used in the study Correlational statistics were used to describe and explore the

relationships between all the variables used in the study. Finally, one way analysis of

variance (ANOVA) was performed to test the differences in the level of

organizational commitment among groups on the basis of the employee‘s

demographic details such as age, educational qualifications, marital status,

occupational status, monthly income salary, length of service, gender, internal

promotion.

5.15 Interpretation and Report Writing:

The analysed data were finally interpreted to draw the conclusions and reported with

the objective of the study in view.

5.16 Limitation of the Study:

The study is limited to the state of Maharashtra and that too specifically with Navi-

Mumbai, Mumbai, Pune, Nasik and Aurangabad only. In future with a longer span of

time, similar studies can be carried out in the other states of the country and even

194

globally. Also, in future few more parameters related to leadership style and employee

commitment may be identified and subsequently, the study may be carried out on

those identified parameters.

195

CHAPTER-6

RESEARCH FINDINGS

196

CHAPTER-6

RESEARCH FINDINGS

6.1 Introduction

This chapter presents the results of the study. It is divided into four sections. The first

section includes the pilot study report. The second section includes a description of

the respondent‘s characteristics of the main research study. The third section contains

statistical results of the correlation analyses of the items in the two instruments used,

the Multifactor Leadership Questionnaire (MLQ) Rater Form (5x-Short) developed by

Bass and Avolio (1995), and the Employee Commitment Questionnaire (ECQ)

developed by Porter and his associates (1974). Also, the third section includes the

range, mean, median, and standard deviation of all the scales used in the current

study. Results of the expectations and hypotheses testing and the complete regression

model are presented in the fourth section.

6.2 Pilot Study Report

A total of 150 questionnaires were distributed as mentioned earlier among the

academic faculties of private un-aided B-Schools of Navi-Mumbai area, out of which

91respondent‘s instruments were analysed. The final questionnaire had been

moderated based on the pilot study. The reliability test of the questionnaire was made

and was found to be good.

6.2.1 Population and Sample Selection of Pilot Study:

This study was conducted in Navi-Mumbai area of Maharashtra. The targeted

population for the study was the full-time academic faculties of B-Schools of Navi-

197

Mumbai area. There are altogether 15 B-schools in the Navi-Mumbai area. A Total

sample size of 110 academic faculties was studied out of 6 – B-Schools of Navi

Mumbai. The names of the B-School of Navi –Mumbai under study are as follows:

1. Padmashree D.Y.Patil University, Department of Business Management,CBD,

Belapur

2. Bharti Vidyapeeth's Institute of Management Studies & Research, Navi

Mumbai

3. Agnel Charities Agnel Seva Sangha's Fr. C. Rodrigues Institute of

Management Studies, Navi Mumbai

4. NCRD's Sterling Institute of Management Studies, Navi Mumbai.

5. Gahlot Institute of Management Studies and Research, Navi Mumbai

6. SIES College of Management Studies, Nerul

6.2.2 Data Collection:

Data Collection began after the approval has been acquired from the dissertation

committee particularly from Dr.R.Gopal (director of the department of business

Management) and Dr.Pradip Manjrekar (Dean of Business management

department, Padmashree Dr.D.Y.Patil University). In Navi-Mumbai area where the

study was conducted, the researcher took permission from the directors of each B-

schools before conducting the data collection by distributing the questionnaire among

the academic faculties of the departments of each of the B- Schools. The

questionnaire was validated and the reliability of the questionnaire was measured too.

Each questionnaire included a cover letter containing statements assuring the

respondent of anonymity and confidentiality. The letter also included clear and

specific directions to fill up the instrument of the study.

198

Within a two months time 150 questionnaires were distributed out of which 130 were

returned back .Thirty one questionnaire were excluded because they were incomplete.

Hence the final number of completed questionnaire was 91.

6.2.3 Measurement of the Data:

The questionnaire used in this study is in two separate sets to measure the variables

and test the hypotheses. The first set consisted of three major parts which is meant to

be filled up by the supervisors and the second set consisted of four major parts which

is meant to be filled up by the subordinate employees working under the leadership of

the supervisor/Head/Director of the department. The first part of the supervisor‘s

instrument dealt with organisational commitment (15 items). The second part was

composed of items concerning leadership styles (36 items). The third part included

eight questions regarding demographic backgrounds about the respondents such as

age, education, marital status, occupational status, salary, length of services, gender,

internal promotion.

6.2.4 Results

Description of respondent‟s characteristics with Hypotheses testing result:

The questionnaire used for this study included 8 items concerning the respondent‘s

characteristics. All the respondents were Dean and Academic faculties of B-Schools

of Navi Mumbai. They were asked about their age, education, marital status,

occupational status, salary (monthly income), and length of services, gender, and

internal promotion.

6.2.4.1 AGE:

The age range of the respondents are 20-50years and above.

199

The table 7-(i) shows the frequency distribution and the percentage of the respondents

by age. It shows that 30 respondents are between the ages 20-29 and 39 respondents

are between the ages 30-39 and 14 respondents are between the age 40-49 years and 8

respondents are above 50years of age. It indicates that the plurality of the respondents

(42.9%) are between the age 30-39years and the lowest number of respondents (8.8%)

were aged 50 and above. It also reveals that 33% of the respondents are between the

ages 20-29 years and 15.4% respondents are between 40-49 years.

Table 7-(i) shows frequency distribution of respondents by Age.

AGE Frequency Percent

20-29 Years 30 33.0

30 - 39 Years 39 42.9

40 - 49 Years 14 15.4

50 and above 8 8.8

Total 91 100.0

6.2.4.2 EDUCATION:

Based on table 7-(ii), the frequency distribution of the respondents by education. It

shows that there are 70 academic faculties with master degrees and 21 are with

doctoral degree. The table also indicates that 76.9% of the academic faculties are with

master‘s degree and 23.1% are with doctoral degree.

200

Table 7-(ii) Frequency distribution of Respondent‟s Educational Level

EDUCATION

Frequency Percent

Master Degree 70 76.9

Doctorate 21 23.1

Total 91 100.0

6.2.4.3 MARITAL STATUS:

Based on table 7-(iii), shows the frequency distribution of the respondents by their

marital status. It shows that there are 66 academic faculties, that is the majority of the

respondents(72.5%) who are married and 25 respondents (27.5%) are un-married i.e.

,single, none are divorced and widowed.

Table 7-(iii) shows frequency distribution of respondents by Marital Status.

Marital

Status

Frequency Percent

Married 66 72.5

Single 25 27.5

Total 91 100.0

6.2.4.4 OCCUPATIONAL STATUS:

Table 7(iv) shows frequency distribution of respondents by their occupational status.

Table 7(iv) shows that the pluralities of respondents (53.8%) are in the middle level

category that is the Assistant Professors, followed by 15.4% of respondents who are

201

lecturers; 11% are Sr.Lecturer and 9.9% are the Head of the Departments and 3.3%

are Directors.

Table 7-(iv) shows frequency distribution of respondents by Occupational Status.

Frequency Percent

Director 3 3.3

Head of the

Department 9 9.9

Professor 6 6.6

Asst.Professor 49 53.8

Sr.Lecturer 10 11.0

Lecturer 14 15.4

Total 91 100.0

6.2.4.5 SALARY (MONTHLY INCOME):

Respondents are asked about their monthly income or salary. The respondents are

asked to choose the category indicating their monthly income. Table 7(v) indicates

that the majority of respondents (73.9%) falls within low to middle income group that

is between 15-44K per month, only 22% of the respondents had middle high and high

salaries.

Table 7-(v) shows frequency distribution of respondents by Salary (Monthly

income)

Frequency Percent

1 lakh 4 4.4

80-90 6 6.6

202

55-65 2 2.2

45—55 8 8.8

35-44 27 29.7

25-34 26 28.6

15-24 16 17.6

Total 89 97.8

Missing System 2 2.2

Total 91 100.0

6.2.4.6 LENGTH OF SERVICE

Respondents were asked to report how long they are worked in their present institute.

The respondents were asked to select the category that indicates the number of years

they had spent working in the institute. As shown in table 7(vi), many respondents

(about 52.8%) have been employed less than 5 years in any B-schools of Navi

Mumbai, the period between less than 1-5 years. The table also shows that 17.6% of

the respondents have worked between 11-15 years. The remaining 6.6% of the

respondents have worked between 16-30 years and 1% has worked more than 30

years.

Table 7-(vi) shows frequency distribution of respondents by Length of service.

Frequency Percent

Less than 1 year 6 6.6

1- 5 Years 42 46.2

6-10 Years 20 22.0

11-15 Years 16 17.6

16-20 Years 2 2.2

21-25 Years 2 2.2

203

26-30years 2 2.2

More than 30 Year 1 1.1

Total 91 100.0

6.2.4.7 GENDER:

Table 7-(vii) shows that 58.2% of the respondents are females in the B-schools of

Navi Mumbai and 41.8% of the respondents are Males in the B-schools of Navi

Mumbai.

Table 7-(vii) shows frequency distribution of respondents by Gender.

Frequency Percent

Male 38 41.8

Female 53 58.2

Total 91 100.0

6.2.5 Hypotheses Testing:

The Hypotheses of this study addressed the field of Leadership and organizational

commitment .In the current study there were 10 hypothesis tested. To test this

hypothesis, some appropriate statistical tools such as frequency analysis, Analysis of

variance (ANOVA), and Pearson‘s correlation techniques are used.

Testing the Hypothesis:

5.10.5.1 Hypothesis 1: The Transformational Leadership style of the director of B-

schools of Navi Mumbai has a positive impact on the level of Organizational

commitment of employees. As shown in table 8(i-a), the Pearson‘s correlation,

204

indicated that there was a positive relationship between the transformational

leadership style (perceived by employees in their immediate superior) of the

Director/HOD of the B-schools of Navi Mumbai and organizational commitment of

employees at a significant level (level of confidence at .05). These results were

consistent with the hypotheses therefore the hypotheses was accepted.

Table 8(i-a) Correlations of Transformational leadership styles (perceived) with


Builds Trust (IA) -

Transformational

Pearson‘s correlation

Significant(2-tailed)

N

.242

.021

91

IM(inspires others)

IM(Transformational

Leadership)



N

.247(*)

.018

91

IS (encourages

innovative-

transformational

thinking)

IS(Transformational

Leadership)



N

.253(*)

.016

91

IC(coaches people)

IC(Transformational

Leadership)



N

.232(*)

.027

91

* Correlation is significant at the 0.05 level (2-tailed).

As shown in table 8(i-b), the Pearson‘s correlation, indicated that there was a positive

relationship between the transformational leadership style (expected by employees in

their immediate superior) of the Director/HOD of the B-schools of Navi Mumbai and

organizational commitment of employees at a significant level (level of confidence at

205

.05) These results were consistent with the hypotheses therefore the hypotheses was

accepted.

Table 8(i-b) Correlations of Transformational leadership styles (expected) with


Encourages Innovative-

Transformational Thinking

(IS) -Transformational

(Expected)



N

.194(*)

.037

91

Coaches People (IC) 5-

Transformational

(Expected)



N

.209(*)

.027

91


6.2.5.2 Hypotheses 2: The transactional leadership style of the director of B-schools

of Navi Mumbai has a positive impact on the level of Organizational commitment of

employees.

As shown in table 8(ii-a), concerning the relationship between transactional

leadership style of the director of B-schools of Navi Mumbai and organizational

commitment level of the academic faculties working under him, the Pearson

correlation result demonstrated that the relationship between the two variables are

positive and significant also (level of confidence at.05).The results were consistent

with the hypotheses therefore the hypotheses was supported.

Pearson’s Co-relation results of transactional Leadership style on employee

commitment.

206

Table 8(ii-a) Correlations of Transactional leadership styles (observed) with


CR Rewards Achievement

–Transactional (CR) –

Contingent reward

Transactional



N

.239(*)

.023

91


As shown in table 8(ii-b), concerning the relationship between transactional

leadership style of the director of B-schools of Navi Mumbai and organizational

commitment level of the academic faculties working under him, the Pearson

correlation result demonstrated that the relationship between the two variables are

positive and significant also (level of confidence at.05). The results were consistent


Table 8(ii-b) Correlations of Transactional leadership styles (expected) with


Rewards Achievement –

Transactional (CR) –

Contingent reward

Transactional (Expected)



N

.225(*)

.019

91

MBE-Active Transactional Pearson‘s correlation


N

.211(*)

.026

91


Hypotheses 3: The transformational leadership style (observed/expected) of the

director of B-schools of Navi Mumbai will have a greater impact on the

organizational commitment level of employees compared to transactional leadership

207

style. To examine this hypothesis, a correlation analysis was performed. As shown in

table 8(iii)The correlation result indicated that the transformational leadership of the

director of B-schools of Navi Mumbai had a significant positive relationship with the

organizational level of employees greater than the relationship between the

transactional leadership of the director of B-schools of Navi Mumbai and the

organizational commitment level of employees. These results were consistent with

the hypotheses therefore the hypotheses was accepted.

Table (8iii-a) Pearson‟s Co-relation results of transformational leadership style

and transactional Leadership style on employee commitment as perceived by the

academic employees of B-schools.

IM(inspires others)

IM(Transformational

Leadership)



N

.247(*)

.018

91

IS (encourages

innovative-

transformational

thinking)

IS(Transformational

Leadership)



N

.253(*)

.016

91

IC(coaches people)

IC(Transformational

Leadership)



N

.232(*)

.027

91

CR Rewards

Achievement –


Contingent reward

Transactional

Pearson‘s

correlation


N

.239(*)

.023

91

** Correlation is significant at the confidence level of .05(2-tailed)

208

The transformational leadership style (expected by the employees in their immediate

supervisor) of the director of B-schools of Navi Mumbai will have a greater impact on

the organizational commitment level of employees compared to transactional

leadership style.

To examine this hypothesis, a correlation analysis was performed. As shown in table

8(iii-b)The correlation result indicated that both the transformational and transactional

leadership styles of the director of B-schools of Navi Mumbai had a significant

positive relationship with the organizational commitment level of employees. These

results were not consistent with the hypotheses therefore the hypotheses was rejected.

Table (8iii-b) Pearson‟s Co-relation results of transformational leadership style and

transactional Leadership style on employee commitment as expected by the

academic employees of B-schools.


Transformational Thinking

(IS) -Transformational

(Expected)



N

.194(*)

.037

91


Transformational

(Expected)



N

.209(*)

.027

91

Rewards Achievement –


Contingent reward




N

.225(*)

.019

91

MBE-Active Transactional Pearson‘s correlation


N

.211(*)

.026

91

209

6.2.5.4 Hypotheses 4: The laissez-faire leadership style of the director of B-schools of

Navi Mumbai has a negative impact on the level of Organizational commitment of

employees.

To test these hypotheses correlations were conducted. The results of the correlation

analyses revealed that the laissez –faire leadership style (Observed) of the Director of

B-schools had a no significant negative relationship with the level of organizational

commitment of employees as shown in Table 8(iv) but the result shows that Laissez –

Faire Leadership style has a negative impact on the level of Organizational

commitment of employees but statistically it is not significant. These results were not

consistent with the hypotheses therefore the hypotheses was rejected.

Table 8(iv-a) Correlation of Laissez –Faire Leadership style (Observed) with

Organizational commitment of employees.

Avoids Involve –Leissez

Faire (Perceived)

Pearson Correlation

-.069

Sig. (1-tailed)

.264

N 86


To test this hypothesis correlation were conducted. The results of the correlation

analyses revealed that the laissez –faire leadership style (Expected) of the Director of

B-schools had no significant negative relationship with the level of organizational

commitment of employees as shown in Table 8(iv). These results were not consistent

with the hypotheses therefore the hypotheses was rejected.

210

Table 8(iv-b) Correlation of Laissez –Faire Leadership style (Expected) with

Organizational commitment of employees.

Avoids Involve –Leissez

Faire (Expected)

Pearson Correlation .071

Sig. (1-tailed) .257

N 86

6.2.5.5 Hypotheses 5: There will be a positive relationship between age and the level

of organizational commitment of employees.

According to the result obtained from the correlation analysis there was no significant

positive relationship between age and employees organizational commitment. As

shown in Table 8(v), the results revealed that based on Age, there was no significant

difference (F=2.079, p=.109) in the level of organizational commitment between

employees. But there is a positive relationship between the age and the level of

organizational commitment of employees. Age of employees between 30-39years

(mean=69.74) showed a higher level of commitment to the organization than age

between 20-29(mean=69.60), age between 40-49(mean=63.21), and age above 50

(mean=67.38).But the level of significance (0.109) is close to the level of confidence

0.05. These results were not consistent with the hypotheses therefore the hypotheses

was rejected.

P.T.O

211

Table 8v (a&b) ANOVA shows relationship between age and level of organizational

commitment of private B-Schools academic faculties of Navi Mumbai.

N Mean

Std.

Deviation

Std.

Error

95% Confidence

Interval for Mean Minimum Maximum

Lower

Bound

Upper

Bound

2. 20-29

Years 30 69.60 8.406 1.535 66.46 72.74 52 88

3. 30 - 39

Years 39 69.74 8.756 1.402 66.91 72.58 53 87

4. 40 - 49

Years 14 63.21 11.470 3.066 56.59 69.84 27 75

5. 50 and

above 8 67.38 6.232 2.203 62.16 72.59 60 77

Total 91 68.48 9.094 .953 66.59 70.38 27 88

Table 8(v-b):

Sum of

Squares Df

Mean

Square F Sig.

Between

Groups 497.857 3 165.952 2.079 .109

Within Groups 6944.868 87 79.826

Total 7442.725 90

6.2.5.6 Hypothesis 6: There will be a negative relationship between the level of

education and the level of organizational commitment of employees.

Correlation result revealed that the level of education had no statistically significant

negative relationship. There is no significant difference at the level of confidence of

212

0.05. The correlation result as shown in Table-8(vi) indicated that employee‘s

education had no significant negative relationship with the level of organizational

commitment of academic faculties of B-Schools of Navi Mumbai. These results were

not consistent with the hypotheses therefore the hypotheses was rejected.

Table 8(vi) ANOVA shows relationship between Education and level of

organizational commitment of private B-Schools academic faculties of Navi

Mumbai.

p3q2

EDUCATION N Mean

Std.

Deviation

Std.

Error

Mean

OC_Scr 2.Master

Degree 70 68.99 7.888 .943

3. Doctorate 21 66.81 12.396 2.705

6.2.5.7 Hypothesis 7: There will be a positive relationship between the length of

service and the level of organizational commitment of employees.

Correlation results indicated that the length of service was positively correlated with

the level of organizational commitment of academic faculties of the B-Schools of

Navi Mumbai but there is no significant difference at the level of confidence0.05 as

shown in table 8-(vii). So, the hypotheses is rejected. Length of service of employees

between 6-10 years (mean=79.88) showed the higher level of organizational

commitment than service up to 5years (mean=76.60) and service above 10 years

(mean=73.60).

213

Table 8(vii-a, b) shows relationship between Length of service and level of


Mumbai.

Table 8(vii -a) ANOVA

Sum of

Squares df

Mean

Square F Sig.

Organizational

Commitment

Score

(Employees)

Between

Groups 374.699 2 187.349

1.303 .277

Within

Groups 11938.057 83 143.832

Total 12312.756 85

Table8 (viib) One-way

N Mean

Organizational

Commitment Score

(Employees)

48 76.6042

18 79.8889

20 73.6000

86 76.5930

6.2.5.8 Hypothesis 8:There will be a positive relationship between occupational

status and the level of organizational commitment of employees.

According to the results of correlation analysis, the variable of occupational status

was found to be positively co-related with the level of organizational commitment as

shown in table 8(viii-a,b), but this correlation was not statistically significant. So, the

214

hypothesis was rejected. Organizational commitment is higher among Directors

(mean=72.33) than any other.

Table 8 (viii-a, b), shows relationship between occupational status and level of


Mumbai.

8(viii-a): Descriptive

Table 8 (viii-b) ANOVA- One-way

Sum of

Squares Df

Mean

Square F Sig.

Between

Groups 118.511 5 23.702 .275 .926

Within Groups 7324.214 85 86.167

Total 7442.725 90

N Mean

Std.

Deviation

Std.

Error

95% Confidence


Lower

Bound

Upper

Bound

Director 3 72.33 4.509 2.603 61.13 83.53 68 77

Head of the

Department 9 70.67 9.950 3.317 63.02 78.31 53 87

Professor 6 68.67 14.528 5.931 53.42 83.91 52 87

Asst.Professor 49 67.71 9.186 1.312 65.08 70.35 27 88

Sr.Lecturer 10 68.50 7.246 2.291 63.32 73.68 57 81

Lecturer 14 68.86 8.384 2.241 64.02 73.70 53 84

Total 91 68.48 9.094 .953 66.59 70.38 27 88

215

6.2.5.9 Hypothesis 9: There will be a positive relationship between pay (salary) and

the level of organizational commitment of employees.

The findings of the correlation analysis indicated that monthly income had a positive

relationship with the level of organizational commitment of the academic employees

of private B-Schools of Navi Mumbai and the relationship was significant as shown in

Table 8(ix-a,b). This result was consistent with the Hypotheses. The Hypotheses was

accepted.

Table 8(ix-a, b), shows relationship between pay (salary) and level of


Mumbai.

Table 8(ix-a) Descriptives

N Mean

Std.

Deviation Std. Error

95% Confidence


Lower

Bound

Upper

Bound

1.1 lakh 4 70.00 6.782 3.391 59.21 80.79 62 77

2. 80-90 6 63.83 4.665 1.905 58.94 68.73 58 68

3. 55-65 2 44.00 24.042 17.000 -172.01 260.01 27 61

4.45-55 8 67.63 4.534 1.603 63.83 71.42 63 77

5.35-44 27 68.26 5.835 1.123 65.95 70.57 56 79

6.25-34 26 65.81 8.574 1.682 62.34 69.27 52 82

7.15-24 16 77.88 7.284 1.821 73.99 81.76 69 88

Total 89 68.45 9.189 .974 66.51 70.39 27 88

216

Table8 (ix-b) ANOVA

Sum of

Squares Df

Mean

Square F Sig.

Between

Groups 2942.340 6 490.390 8.961 .000

Within Groups 4487.682 82 54.728

Total 7430.022 88

6.2.5.10 Hypothesis 10: Single Employees will be more committed to their

organization than married employees.

To examine this hypothesis an Anova was performed. As shown in table 8(x-a) and

8(x-b), the result revealed that based on marital status, there was no significant

difference (F=1.479 and p=.228) in the level of organizational commitment between

the academic employees of the private B-Schools of Navi – Mumbai. Single

employees (mean=70.36) showed a higher level of commitment towards organization

than married employees (67.77) but this correlation was not statistically significant.

So the hypothesis was rejected.

Table 8(x-a, b), shows relationship between marital status and level of


Mumbai.

N Mean

Std.

Deviation Std. Error

95% Confidence


Lower Bound

Upper

Bound

Married 66 67.77 9.283 1.143 65.49 70.05 27 87

Single 25 70.36 8.465 1.693 66.87 73.85 53 88

Total 91 68.48 9.094 .953 66.59 70.38 27 88

217

Table8(x-b) ANOVA

Sum of

Squares Df

Mean

Square F Sig.

Between

Groups 121.374 1 121.374 1.475 .228

Within Groups 7321.351 89 82.262

Total 7442.725 90

6.2.5.11 Hypothesis 11: Female Gender will be more committed to their organization

than the Male Gender.

To examine this hypothesis an Anova was performed. As shown in table 8(xi-a) and

8(xi-b), the result revealed that based on gender, there was no significant difference

(F=.746 and p=.390) in the level of organizational commitment between the academic

employees of the private B-Schools of Navi – Mumbai. This result was not consistent

with the Hypotheses. The Hypotheses was rejected. Male gender showed

(mean=69.55) higher level of organizational commitment than the female counterparts

(mean=67.72)

Table 8 (xi-a, b), shows relationship between gender and level of organizational

commitment of private B-Schools academic faculties of Navi Mumbai.

Table 8 (xi-a) T-Test

Group Statistics:

p3q7

Gender N Mean

Std.

Deviation

Std.

Error

Mean

EC_Scr Male 38 69.55 9.543 1.548

Female 53 67.72 8.769 1.205

218

Table 8(xi-b) Independent Samples Test

6.2.6 Conclusion:

Consistent with what this study hypothesized, the results revealed that both

transformational and transactional leadership styles had a positive impact on the level

of organizational commitment of employees. These findings support the results of

other scholarly studies. Bass and Avolio (1994) stated that both transformational and

transactional leadership style enhance the level of commitment to the organization

among employees. In other research, the positive relationship between

transformational leadership style and the level of organizational commitment was

emphasized.(Bateman & Strasser,1984;Bycio et al.,1995;Michael &

Sector,1982;Morris and Sherman,1981). The effects of both styles on organizational

commitment were consistent with Bass‘s augmentation theory of leadership. Bass‘s

augmentation theory of leadership postulates that successful leaders are both

Levene's Test

for Equality

of Variances t-test for Equality of Means

F Sig. t df

Sig.

(2-

tailed)

Mea

n

Diffe

rence

Std.

Error

Differen

ce

95% Confidence

Interval of the

Difference

Lower Upper

OC_Scr Equal

variance

s

assumed

.746 .390 .949 89 .345 1.83

6 1.934 -2.007 5.679

Equal

variance

s not

assumed

.936 75.638 .352 1.83

6 1.961 -2.071 5.743

219

transformational and transactional .Based on this theory transformational and

transactional leadership styles should have positive effects on level of organizational

commitment of employees and this is what this study demonstrated. The findings

showed that transformational and transactional leadership styles positively affected

organisational commitment. The results also indicated that transformational

leadership styles had a greater impact on the level of organizational commitment of

employees compared to transactional leadership style. This could be attributed to two

factors; first, the transformational leadership focuses more on the human side of

individuals and second, the transformational leadership component s may be more in

practice among the educational institutes than other service industries. In relation to

this, Carlson and Perrewe (1995) stated that, ―When transformational leadership is

enacted, members of organization no longer seek merely self interest, but that which

is beneficial to the organization as a whole‖ (P.832).

The findings of this study revealed that there was a significant positive relationship

between pay (salary) and the level of organizational commitment of employees. A

logical explanation for such a relationship is that pay or monthly income is one of the

most important factors that examines employees attitude towards their organization.

This finding supports previous research studies (AL-Khatany, 1998; Angle and Perry,

1983; Becker, 1960). An explanation of this finding could be that since money being

one of the main criteria to keep one committed to the service and reduce attrition and

the raising expenses due to consumerism, the monthly income (salary) plays a major

in maintaining the organizational commitment of the employees. Individuals satisfied

with their salaries are likely to develop more positive attitudes toward their

organization including organizational commitment.

220

To conclude, the complete model demonstrated the importance of this study through

its explanation of more of the total variation in the level of organizational

commitment of B-schools employees of Navi- Mumbai. In addition the model

suggested that the most committed employee is the one who is older, is educated with

the degree which just satisfy the UGC norms with no higher doctoral degrees, is in

higher grade, has a higher salary, has served longer, is married, and works under a

leader who is more transformational, more transactional, less laissez- Faire, and uses

leadership methods that satisfy followers.

6.3 Description of Respondent‟s Characteristics of the main Research Study

The questionnaire used for this study included seven items concerning the

respondent‘s characteristics. All the respondents were academic faculties of B-

Schools of Maharashtra. They were asked about their age, education, marital status,

occupational status, salary (monthly income), length of service and internal

promotional period.

6.3.1Age

The age range of the respondents was from 20 to 50 years and above. Table 9-(i)

shows the frequency and percentages of the respondents by age. It indicates that the

plurality of respondents (58.6%) were between the ages of 20 and 29, and the lowest

numbers of respondents (9.3%) were aged 40 or above. It also reveals that 32.1% 0f

the respondents were between the ages of 30 and 39.

221

Table 9-(i).Frequency Distribution of Respondents by Age.

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 2 20-29

Years 334 58.6 58.6 58.6

3 30 - 39

Years 183 32.1 32.1 90.7

4 40 &

above 53 9.3 9.3 100.0

Total 570 100.0 100.0

6.3.2Education

Based on table 9-(ii), the frequency distribution of the respondents by education. It

shows that there are 32 Academic faculties with their master degree in MBA/MMS

and their graduation in BA/BCom/BSc /BE, 114 academic faculties with their master

degree in MBA/MMS after their master degree acquired in either MA/MCom/MSc

/ME and 340 respondents mentioned about their master degree in MBA/MMS only.84

respondents out of 570 academic faculties from private un-aided B-Schools of

Maharashtra are with doctoral degree. The table also indicates that 85.2% of the

academic faculties are with master‘s degree and 14.7% are with doctoral degree. A

total of 486 academic faculties of the private un-aided B-Schools of Maharashtra are

either with MBA or with MMS degree.

Table 9-(ii) Frequency distribution of Respondent‟s Educational Level

Frequency Percent

Valid

Percent

Cumulative

Percent Vali

d 1 BA/BCom/BSc

/BE 32 5.6 5.6 5.6

2 MA/MCom/MSc

/ME 114 20.0 20.0 25.6

3 Master

Degree/MBA/MMS 340 59.6 59.6 85.3

4 Doctorate 84 14.7 14.7 100.0 Total 570 100.0 100.0

222

6.3.3Marital Status

Based on table 9 (iii), which shows the frequency distribution of the respondents by

their marital status. It shows that 424 of the respondents of the private un-aided B-

Schools of Maharashtra were married and 143 of the respondents were un-married. A

very low score of 3 respondents were divorced and none are widow. In other words it

states that 74.4% of the population from whom the data were collected are married,

25.1% are un-married and 5% are divorced.

Table 9-(iii) shows frequency distribution of respondents by Marital Status.

Frequency Percent

Valid

Percent

Cumulative

Percent Valid 1

Married 424 74.4 74.4 74.4

2 Single 143 25.1 25.1 99.5 3

Divorced 3 .5 .5 100.0

Total 570 100.0 100.0

6.3.4 Occupational Status

Table 9(iv) shows frequency distribution of respondents by their occupational status.

Table 9(iv) in detail shows that the pluralities of respondents (51.6%) are in the

middle level category, that is the Assistant Professors, followed by 29.5.% of

respondents who are lecturers;111.4% are Associate Professors and 7.5% belong to

the Professor category. In other words, the majority of the respondents i.e., 294 of the

population of the academic faculties of private un-aided B-Schools of Maharashtra

belong to the category of Assistant Professor, 168 were Lecturer, 65 of them were

Associate Professors and 43 of them were Professors.

223

Table 9-(iv) shows frequency distribution of respondents by Occupational Status.

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Lecturer 168 29.5 29.5 29.5

2 Assistant

Professor 294 51.6 51.6 81.1

3 Associate

Professor 65 11.4 11.4 92.5

4 Professor 43 7.5 7.5 100.0

Total 570 100.0 100.0

6.3.5 Salary (Monthly Income)

Respondents are asked about their monthly income or salary. The respondents are

asked to choose the category indicating their monthly income. Table 9(v) indicates

that the majority of respondents (76.3%) falls in high income group that is 45K per

month and above, 15.8%% of the respondents falls within 35k-44k per month, 4.9%

falls within the earning of 25k-34k per month and a very low percentage of 3% falls

within 15k-24k as their monthly income. In other words 435 respondents gets a

monthly salary above 45k per month,90 respondents gets within 35k-44k per month

as their salary,28 respondents gets a salary within 25k-34k per month, and only 17

respondents gets salary within 15k-24k per month.

Table 9-(v) shows frequency distribution of respondents by Salary (Monthly

income)

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 45 k and

above 435 76.3 76.3 76.3

2 35-44 k 90 15.8 15.8 92.1

3 25-34 k 28 4.9 4.9 97.0

4 15-24k 17 3.0 3.0 100.0

Total 570 100.0 100.0

224

6.3.6 Length of Service

Respondents were asked to report how long they worked in their present institute. The

respondents were asked to select the category that indicates the number of years they

had spent working in the institute. As shown in table 9(vi), many respondents (324)

about 56.8% have been employed up to 5 years in private un-aided B-schools of

Maharashtra, The table also shows that 31.8%% of the (181) respondents have

worked for 6-10 years. The remaining 11.4% of the (65) respondents have worked for

10years and above in the currently employed private un-aided B-Schools of

Maharashtra.

Table 9-(vi) shows frequency distribution of respondents by Length of service.

Frequency Percent

Valid

Percent

Cumulative

Percent Valid 1 Upto 5 yrs 324 56.8 56.8 56.8 2 6-10 yrs. 181 31.8 31.8 88.6 3 10+ 65 11.4 11.4 100.0 Total 570 100.0 100.0

6.3.7 Gender

Table 9-(vii) shows that 44.7% of the respondents are males in the private un-aided B-

Schools of Maharashtra of the study and 55.3. % of the respondents was Females in

the private un-aided B-Schools of Maharashtra. In other words out of the 570

respondent‘s data analysed for the study, 255 were males and 315 were females

working in the private un-aided B-Schools of Maharashtra as the academic faculty .

Table 9-(vii) shows frequency distribution of respondents by Gender.

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Male 255 44.7 44.7 44.7

2

Female 315 55.3 55.3 100.0

Total 570 100.0 100.0

225

6.3.8 Internal Promotion

Table 9-(viii) shows that 52.8% of the academic faculties have experienced internal

promotion within a period of 0-2 years in their currently pursued employment in the

private un-aided B-Schools of Maharashtra,13.3% have experienced internal

promotion within the time span of 3-6years and .7% have experienced internal

promotion within the time span of 7-10years.In other words 301 academic faculties

had promotion within 0-2years,76 employees within 3-6years and 4 faculties within 7-

10years of service in the currently employed private un-aided B-School of

Maharashtra.

Table 9-(viii) shows frequency distribution of respondents by internal promotion

taken place within the particular time span.

Frequency Percent

Valid

Percent

Cumulative

Percent

Vali

d

1 0-2 years 301 52.8 79.0 79.0

2 3-6 years 76 13.3 19.9 99.0

3 7 - 10 years 4 .7 1.0 100.0

Total 381 66.8 100.0

Mis

sing

System 189 33.2

Total 570 100.0

6.4 Statistical Results

In order to examine the validity of using regression techniques in this study, the

correlations among the independent variables were computed. The results of the

present study indicated that all independent variables of the Multifactor Leadership

Questionnaire (MLQ) and Organizational Commitment Questionnaire utilized in this

study did not reach the level of correlation of .8.According to Lewis – Beck (1980),

multicollinearity is not a problem if the highest correlation among independent

variables is less than .8. In addition, correlation analysis among all the sub-scales of

226

MLQ and the organizational commitment scale were performed. The results are

presented in Table 10-(i). As might be expected, the correlations provide support for

the validity of the measures of organizational commitment, transactional leadership,

transformational leadership, and laissez – faire leadership. Transactional leadership,

transformational leadership correlate positively and significantly with organizational

commitment, and organizational commitment correlates negatively and significantly

with laissez – faire leadership. It is clear from table 10 (i) that the correlation between

the transactional and transformational scale is high (.816**

) and significant at the .01

level. This finding was consistent with previous studies. According to Bass and

Avolio (1995), highly positive correlations between the transformational scales and

transactional leadership were expected. Bass and Avolio (1995) mentioned three

reasons for this phenomenon. They note:

First both transactional and transformational leadership represent active,

positive, forms of leadership. Second, leaders have been shown in repeated

investigation to be both transactional and transformational. Third, as Shamir

(1995) argues, the consistent honouring of transactional agreements builds trust,

dependability, and perceptions of consistency with leaders by followers, which

are each a basis for transformational leadership. (p.11)

Overall, the results suggested that the data were appropriate for regression techniques.

227

Table 10-(i).Interco-relations Among the MLQ Scales and Organizational

Commitment Measure.

Correlations

Avoids

Involve –

Leissez Faire

Transactional

Leadership

Transformational

Leadership

Avoids Involve –

Leissez Faire

Pearson

Correlation 1 .167

** -.120

**

Sig. (2-tailed) .000 .008

N 568 505 495

Transactional

Leadership

Pearson

Correlation .167

** 1 .816

**

Sig. (2-tailed) .000 .000

N 505 507 490

Transformational

Leadership

Pearson

Correlation -.120

** .816

** 1

Sig. (2-tailed) .008 .000

N 495 490 496

OC_SCR

Pearson

Correlation -.141

** .063 .093

*

Sig. (2-tailed) .001 .154 .038

N 568 507 496

228

Correlations

EC_SCR

Avoids Involve –Leissez Faire

Pearson

Correlation -.141


N 568

Transactional Leadership

Pearson

Correlation .063

**


N 507

Transformational Leadership

Pearson

Correlation .093

**


N 496

OC_SCR

Pearson

Correlation 1

**

Sig. (2-tailed)

N 570

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

In addition, Table 10- (ii) shows the range, mean, median, and standard deviation of

all the scales used in this study. As shown in the table, the range indicates the lowest

and highest score for each variable. The mean represents the most common average or

measure of central tendency calculated by dividing the sum of the scores in a set by

the number of scores. The median is the measure of central tendency corresponding to

the middle point in a distribution of scores. Standard deviation (SD) as defined by

229

Gall et al. (1996) is ―A measure of the extent to which the scores in a distribution

deviate from their mean‖ (p.770).

The transactional leadership scale consisted of 08 items representing three subscales,

contingent rewards, and management by exception (active), and management by

exception (passive). The scoring range in the instrument for this variable was between

one and five. Therefore, the lowest score for transactional would be 8 and the highest

score would be 40. Specifically; the Heads/Deans/Directors of the private un-aided B-

Schools of Maharashtra were categorized based on their percentage scores as follows:

Between 0 and 20 they were not transactional, between 21 and 40 they were rarely

transactional, between 41 and 60 they were little transactional, between 61 and 80

they were fairly transactional and between 81 and 100 the leaders were highly

transactional.

Table 10-(ii).Range (%), Mean, Median, and Standard Deviation of all the

Variables

Commitment

Transfor

mational

(Exp)

Transactiona

l (Exp)

Transfor

mational

(P)

Transacti

onal (P)

N

Valid 570 570 570 570 570

Mean 63.3860 83.8070 57.7827 72.4759 54.8709

Median 64.4444 85.0000 58.3333 73.7500 55.5556

Std. Deviation 13.06520 11.71606 8.65627 15.24665 12.69931

Range 83.33(15-

105)

58.75(18

-90) 69.44(8-40) 83.75 88.89

Since the transformational leadership scale consisted of 18 items scored between one

and five, the range was between 18-90 (as shown in Table 10-(ii).The higher the

percentage score ,the more transformational the Heads/Deans/Directors, and the

lower score, the less transformational the Heads/Deans/Directors. Specifically

230

according to their percentage scores, the Heads/Deans/Directors were characterized as

follows: Between 0 and 20 they were not transformational, between 21 and 40 they

were rarely transformational, between 41 and 60 they were little transformational,

between 61 and 80 they were fairly transformational and between 81 and 100 the

leaders were highly transformational.

The laissez – faire leadership scale consisted of four items with each item having a

score between one and five. Therefore, the range for this style was between 4 and

20.The higher the score, the more laissez-faire the Head of the Institute, and the lower

the score the less laissez-faire the Head/Dean/Director. Finally, the scale that

measured organizational commitment was made up of 15 statements. Each statement

had a score of between 1 and 7. Therefore, the range was between 15 and 105.The

employees who had a score less than33 were considered to be less committed to the

institute. Those who had a score between 34-66 are moderately committed to the

institute. And the academic faculties of the private un-aided B-Schools of

Maharashtra who had a score above 66 were considered to be highly committed to the

Institute.

6.5 Testing the Expectations and Hypotheses of the main Research Study

The research expectations and hypotheses of this study addressed the field of

leadership and employee commitment. This section deals with testing these

expectations and hypotheses. In the current study, there were 4 expectations and 13

hypotheses tested. To test these expectations and hypotheses, some appropriate

statistical tools such as frequency analysis, Correlation Analysis, Analysis of Variance

(ANOVA), and simple individual regression techniques were used.

231

6.6 Testing the expectations:

6.6.1 Expectations 1: The majority of the academic faculties of the private un-aided

B-Schools of Maharashtra will be found to be un-committed to their organization.

The level of organizational commitment ranges between 15 and 105. To determine the

respondent‘s commitment to their organization, the frequency analysis was utilized,

and three cut-off scores were used. Employees having a score from 15 to 52 were

considered to be uncommitted, while employees with a score between 68 and 105

were considered to be committed. The employees who had scores between 53 and 67

were considered to be neutral; that is, neither uncommitted nor committed to the

organization. According to the Table11 (i), the majority of employees (70-.2% were

found to be committed to their organization. The table also reveals that 24.6% of the

employees were found to be neutral, and 5.3% were found to be un-committed to their

organization.

Table 11(i). Frequency Distribution of Respondents by their Level of

Organizational Commitment.

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Uncommitted

(15-52) 30 5.3 5.3 5.3

2 Neutral (53-67) 140 24.6 24.6 29.8

3 Committed (68-

105) 400 70.2 70.2 100.0

Total 570 100.0 100.0

Thus, the expectation was rejected.

6.6.2 Expectation 2: The majority of the Heads/Deans/Directors of the private

un-aided B-Schools of Maharashtra as perceived or observed and expected by

232

their academic faculties do not follow transactional leadership styles.

To examine this expectation, frequency analysis and five cut-off scores were used.

The scoring range in the instrument for this variable was between one and five.

Therefore, the lowest score for transactional would be 8 and the highest score would

be 40.Specifically; the Heads/Deans/Directors of the private un-aided B-Schools of

Maharashtra were categorized based on their percentage scores as follows:

Heads/Deans/Directors having a score between 0 and 20 were considered non-

transactional leaders, with a score between 21 and 40 they were considered rarely

transactional, and Heads/Deans/Directors having a score between 41 and 60 were

considered to be little transactional. The rest of the Heads/Deans/Directors who had

scores between 61 and 80 were considered fairly transactional and between 81 and

100 the leaders were considered highly transactional. From Table 11- (ii), it is clear

that the majority of respondents (about 60.9%) perceived their Heads/Deans/Directors

to be little transactional. About 26.5% of the respondents perceived their

Heads/Deans/Directors to be Transactional in their leadership style with their

subordinates. Only 3% of the respondents perceived their Heads to be highly

transaction in their leadership style. The rest of the Heads/Deans/Directors were

perceived to be Non-Transactional by 1.2% of the respondents, and rarely

transactional by 8.4% of the respondents. Thus the expectation was partially rejected.

233

Table 11(ii). Frequency Distribution of Heads/Deans/Directors According to

Their Transactional Characteristics as Perceived by their sub-ordinate

Academic Faculties.

Frequency Percent Not Transactional 7 1.2 Rarely 48 8.4 Little 347 60.9 Transactional 151 26.5 Highly Transactional 17 3.0 Total 570 100.0

From Table 11 – (iii), it is clear that the majority of respondents (about 64%)

perceived their Heads/Deans/Directors to be little transactional. About 32.6% of the

respondents perceived their Heads/Deans/Directors to be Transactional in their

leadership style with their subordinates. Only 6% of the respondents perceived their

Heads to be highly transaction in their leadership style. The rest of the

Heads/Deans/Directors were perceived to be Non-Transactional by .2% of the

respondents, and rarely transactional by 2.1% of the respondents. Thus the

expectation was partially accepted.

Table 11(iii). Frequency Distribution of Heads/Deans/Directors According to

their Transactional Characteristics as Expected by their Sub-Ordinate Academic

Faculties.

Frequency Percent

Not Transactional 1 .2

Rarely 12 2.1

Little 365 64.0

Transactional 186 32.6

Highly Transactional 6 1.1

Total 570 100.0

234

6.6.3 Expectation 3: The majority of the Heads/Deans/Directors of the private

un-aided B-Schools of Maharashtra as perceived or observed and expected by

their academic faculties follow transformational leadership styles.

The results as shown in Table 11 – (iv& v) reveal, on the one hand, that a plurality

(about 47.2%) perceived/observed and (about 61.9%) expected their immediate

supervisor as transformational and highly transformational respectively. On the other

hand, (about 31.4%) perceived/observed and (about 34.4%) expected their immediate

supervisors to be Highly Transformational and Transformation in their leadership

respectively. Respondents who reported that their Heads/Deans/Directors are little

transformational as in both perceived and expected were 18.1% and 3.7%

respectively. Respondents who perceived/observed that their Heads/Deans/Directors

are rarely transformational totalled 3.0%, while .4% rated their

Heads/Deans/Directors as Not-Transformational. The score expected by the

respondents for rarely and not Transformational was nil.

P.T.O

235

Table 11(iv). Frequency Distribution of Heads/Deans/Directors According to

Their Transformational Characteristics as Perceived by their sub-ordinate

Academic Faculties.

Frequency Percent

Not Transformational 2 .4

Rarely 17 3.0

Little 103 18.1

Transformational 269 47.2

Highly


Total 570 100.0

Table 11(v). Frequency Distribution of Heads/Deans/Directors According to

their Transformational Characteristics as Expected by their Sub-Ordinate

Academic Faculties.

Frequency Percent Little 21 3.7 Transformational 196 34.4 Highly Transformational 353 61.9 Total 570 100.0

6.7 Testing the Hypothesis

The Hypotheses of this study addressed the field of Leadership and employee

commitment. In the current study there were 13 hypothesis tested. To test this

hypothesis, some appropriate statistical tools such as frequency analysis, Analysis of

variance (ANOVA), and Pearson‘s correlation techniques and regression techniques

were used.

P.T.O

236

Hypothesis Testing 1

6.7.1 H11: The Transformational Leadership Style (as observed and expected) of the

Heads of the Departments/Directors has a positive impact on the level of employees‟


As shown in Table 12-(i), the regression coefficient (B) indicated that there was a

positive relationship between the transformational leadership style of the

dean/director/heads as perceived or observed by the academic faculties of private un-

aided B-Schools of Maharashtra and organizational commitment of employees at a

significant level (t=4.516, p=.000). For each increment in one standard deviation unit

of the level of the transformational leadership Dean‘s/head‘s/director‘s style, the

expected value of the level of employee‘s organizational commitment increases by a

standard deviation of .186. The results were consistent with the hypothesis. Therefore,

the hypothesis was accepted.

But according to Table 12-(ii) , the regression coefficient (B) indicated that there was

a positive relationship between the transformational leadership style of the

dean/director/heads as expected by the academic faculties of private un-aided B-

Schools of Maharashtra and organizational commitment of employees at a significant

level (t=1.978, p=.048). For each increment in one standard deviation unit of the level

of the transformational leadership Dean‘s/head‘s/director‘s style, the expected value

of the level of employee‘s organizational commitment increases by a standard

deviation of .083.The result confirm the hypothesis, therefore the hypothesis gets

accepted.

P.T.O

237

Table 12 (i) shows Regression analysis of Transformational leadership styles

(OBSERVED „OBS‟ or perceived “P”) on employee commitment.

Coefficients (a)

Mod

el

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

1 (Constant) 51.823 2.616 19.808 .000

Transformational

(P) .160 .035 .186 4.516 .000

R=.186

R SQUARE=.035

Dependent Variable: Employee Commitment

Table 12(ii) shows Regression analysis of Transformational leadership styles

(Expected “Exp”) on employee commitment.

Coefficients (a)

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

1 (Constant) 55.655 3.946 14.104 .000

Transformational

(Exp) .092 .047 .083 1.978 .048


Correlation Analysis with Explanation

As shown in table 12(iii), the Pearson‘s correlation, indicated that there was a

positive relationship between the transformational leadership style

(perceived/observed by employees in their immediate superior) of the Director/HOD

of the B-schools of Maharashtra and employee commitment of the academic faculties

of the B-Schools of Maharashtra at a highly significant level of **.166(** Correlation

238

is significant at the 0.01 level (2-tailed). These results were consistent with the

hypotheses therefore the hypotheses was accepted.

Similarly shown in table 12(iii), the Pearson‘s correlation, indicated that there was a

positive relationship between the transformational leadership style (expected by

employees in their immediate superior) of the Director/HOD of the B-schools of

Maharashtra and employee commitment of the academic faculties of the B-Schools of

Maharashtra at a significant level of *.094(* Correlation is significant at the 0.5 level

(2-tailed). These results were consistent with the hypotheses therefore the hypotheses

was accepted.

Table 12(iii) Correlations of Transformational leadership styles (OBSERVED

„OBS‟/EXPECTED „EXP‟) with employee commitment.

Ec_Score

Employee

Commitment

EXP_Tf_ld EXP-

Transformational

Leadership

Pearson

Correlation .094(*)


N 494

OBS_Tf_ld

Transformational

Leadership

Pearson

Correlation .166(**)


N 446


** Correlation is significant at the 0.01 level (2-tailed).

As shown in table 12(iv, v, vi), the Pearson‘s correlation, indicated that there was a

positive relationship between the transformational leadership style

(observed/expected by employees in their immediate superior) of the Director/HOD

of the B-schools of Maharashtra and employee commitment of the academic faculties

239

of the B-Schools of Maharashtra at a highly significant level of .177(**)/.097(*)

respectively. These results were consistent with the hypotheses .Therefore the

hypotheses was accepted. The Correlations with the Gap shown between the

Transformational Leadership Style observed and expected by the employees of

private un-aided B-Schools of Maharashtra from their immediate supervisors

indicates a positive correlation of leadership style and employee commitment with the

Gap between the observed and expected leadership styles of the directors rated by the

academic faculties is significant at .092(*) for build trust(IA),.097(*) Acts With

Integrity (IB), .059Inspires Others (IM), .071(*) Encourages Innovative- Thinking

(IS),and .111(**)Coaches People (IC).

Table 12 (iv) Correlations of Transformational leadership styles (OBSERVED

„OBS‟) with employee commitment.

Commitment

Builds Trust (IA) -Transformational

(Perceived)

Pearson



N 570

Acts With Integrity (IB) -

Transformational (Perceived)

Pearson



N 570

Inspires Others (IM) -Transformational

(Perceived)

Pearson



N 570


Transformational Thinking (IS) -


Pearson

Correlation .095(*)


N 570



Pearson



N 570

240

Table 12 (v) Correlations of Transformational leadership styles (EXPECTED

„EXP‟) with employee commitment.

Commitment


(Expected)

Pearson

Correlation .097(*)


N 570

Acts With Integrity (IB) -Transformational

(Expected)

Pearson

Correlation .070(*)


N 570


(Expected)

Pearson



N 570


Thinking (IS) -Transformational

(Expected)

Pearson

Correlation .015


N 570

Coaches People (IC) 5-Transformational

(Expected)

Pearson

Correlation .049


N 570

Table 12 (vi) Correlations of Transformational leadership styles (with GAP between

observed „OBS‟/expected „EXP‟) with organizational commitment.

Commitment

Builds Trust (IA) -Transformational (Gap) Pearson

Correlation .092(*)


N 570

Acts With Integrity (IB) -Transformational

(Gap)

Pearson

Correlation .097(*)


N 570


(Gap)

Pearson

Correlation .059

241


N 570


Thinking (IS) -Transformational (Gap)

Pearson

Correlation .071(*)


N 570


(Gap)

Pearson



N 570



the Departments/Directors has a positive impact on the level of employees‟


Concerning the relationship between transactional leadership style (perceived or

observed by employees in their immediate superior) of the Directors/Deans/Heads of

the Departments and the employee commitment level of the academic faculties of the

B-Schools of Maharashtra, the regression results demonstrated that the relationship

between the two variables was positive (B=.154) and significant (t=2.884, p=.004), as

indicated in Table 13(i) below. For each increment in one standard deviation unit of

the transactional leadership style of the Directors/Deans/Heads of the Departments,

the expected value in the level of organizational commitment of employees increases

by a standard deviation of .154.The results were consistent with the hypothesis.

Therefore, the hypothesis was supported and accepted.

But, the relationship between transactional leadership style (expected by the

academic faculties in their immediate superiors) of the Directors/Deans/Heads of the

Departments and the employee commitment level of the academic faculties of the B-

Schools of Maharashtra, the regression results demonstrated that the relationship

between the two variables was positive (B=.010) but not significant (t=.182, p=.856),

242

as indicated in Table 13(ii) below. For each increment in one standard deviation unit

of the transactional leadership style of the Directors/Deans/Heads of the Departments,

the expected value in the level of organizational commitment of employees‘ increases

by a standard deviation of .010. The results were not consistent with the hypothesis.

Therefore, the hypothesis was not supported and thereby rejected.

Table 13 (i) shows Regression analysis of Transactional leadership styles

(OBSERVED „OBS‟ or perceived “P”) on employee commitment.

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B

Std.

Error

1 (Constant) 63.174 3.080 20.509 .000

OBS_Ts_ld

Transactional

Leadership

.402 .139 .154 2.884 .004

R= .154

R SQUARE =0.024

Dependent Variable: EC_SCORE Employee Commitment

Table 13 (ii) shows Regression analysis of Transactional leadership styles

(Expected „EXP‟) on employee commitment.

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B

Std.

Error

1 (Constant) 63.174 3.080 20.509 .000

EXP_Ts_ld EXP-

Transactional

Leadership

.016 .088 .010 .182 .856

R = .010

R SQUARE = .0001

243

Correlation Analysis for Transactional Leadership Styles:

As shown in table 13(iii), concerning the relationship between transactional

leadership style(perceived/observed by employees in their immediate superior) of

the director of B-schools of Maharashtra and employee commitment level of the

academic faculties working under him, the Pearson correlation result demonstrated

that the relationship between the two variables are positively correlated and highly

significant .132(**) at the level of confidence .01(2 tailed).The results were consistent


Similarly as shown in table 13(iii), the Pearson‘s correlation, indicated that there was

a positive relationship between the transactional leadership style (expected by

employees in their immediate superior) of the Director/HOD of the B-schools of


Maharashtra are positively correlated but not significant .063(* Correlation is

significant at the 0.5 level (2-tailed). Therefore it shows that Transactional Leadership

Style was positively correlated with employee commitment but there is no significant

difference. Therefore the hypothesis was partially accepted.

P.T.O

244

Table 13(iii) Correlations of Transactional leadership styles (OBSERVED

„OBS‟/EXPECTED „EXP‟) on employee commitment.

OC_SCORE

Organizational

Commitment

EXP_Ts_ld EXP-

Transactional

Leadership

Pearson

Correlation .063


N 507

OBS_Ts_ld

Transactional

Leadership

Pearson



N 388

N



As shown in table 13(iv, v, vi), the Pearson‘s correlation, indicated that there was a

positive relationship between the transactional leadership style (observed/expected

by employees in their immediate superior) of the Director/HOD of the B-schools of


Maharashtra at a significant level of .132(**)/.063 respectively. These results were

consistent with the hypotheses. Therefore, the hypotheses were accepted. The

Correlations with the Gap shown between the Transactional Leadership Style

observed and expected by the employees of private un-aided B-Schools of

Maharashtra from their immediate supervisors indicates a positive correlation of

leadership style and employee commitment with the Gap between the observed and

expected leadership styles of the Directors/Deans/Heads of the Departments rated by

the academic faculties is significant with .162(**) for Contingent

245

Reward(CR),.110(**) Management By Exception(Active) (MBE-A), **correlation is

significant at the level of (0.01) and *Correlation (0.05) is significant at the level of

(0.01). But Employee Commitment is negatively significant with -.087(*)

Management by Exception-Passive (MBE-P) of Transactional Leadership Style

followed by the supervisors.

Table 13(iv) Correlations of Transactional leadership styles (EXPECTED „EXP‟)

on employee commitment.

Rewards Achievement –Transactional (CR)

– Contingent reward Transactional

(Expected)

Pearson

Correlation .029


N 570

MBE-A Transactional (Expected) Pearson

Correlation .060


N 570

Fights Fires (MBE-P) MBE- Transactional

(Expected)

Pearson

Correlation -.053


N 570



Table 13(v) Correlations of Transactional leadership styles (OBSERVED „OBS‟)

on employee commitment.


(CR) – Contingent reward

Transactional (Perceived)

Pearson



N 570

MBE-A Transactional (Perceived) Pearson



N 570

Fights Fires (MBE-P) MBE-


Pearson

Correlation -.132(**)


N 570



246

Table 13(vi) Correlations of Transformational leadership styles (with GAP between

observed „OBS‟/expected „EXP‟) on employee commitment.


(CR) – Contingent reward Transactional

(Gap)

Pearson



N 570

MBE-A Transactional (Gap) Pearson



N 570

Fights Fires (MBE-P) MBE- Transactional

(Gap)

Pearson

Correlation -.087(*)


N 570


**Correlation is significant at the 0.01 level (1-tailed).

Hypotheses Testing 3

6.7.3 H13 : The Transformational Leadership Style (as observed and expected) of

the Heads of the Departments/Directors of private un-aided B-Schools of

Maharashtra will have a greater impact on the level of employees‟ commitment

compared to the Transactional Leadership Style.

To examine this hypothesis a correlation analysis was performed. As shown in Table

14-(i),the correlation results indicated that the transformational leadership

style(observed by the academic faculties) followed by the Directors/Deans/Heads of

the Departments had a significant positive relationship (r = .166,p = .000) with the

organizational level of employees greater than the relationship between the

transactional leadership style of the Directors/Deans/Heads of the Departments of the

private un-aided B-Schools of Maharashtra and the employee commitment of the

academic faculties working under them (r = .131,p=.010). Furthermore, the regression

analyses as mentioned earlier in Tables 12(i) and 13(i) showed that the

247

transformational leadership style of the Directors/Deans/Heads of the Departments

had a greater significant impact (Beta = .186) on the organizational commitment of

employees compared to the significant impact of transactional leadership of the

Directors/Deans/Heads of the Departments(Beta = .154).These results were consistent

with the hypothesis. Hence, the hypothesis was accepted.

Similarly, as shown in Table 14-(ii),the correlation results indicated that the

transformational leadership style(expected by the academic faculties) followed by the

Directors/Deans/Heads of the Departments had a significant positive relationship (r =

.094,p = .037) with the organizational level of employees greater than the relationship

between the transactional leadership style of the Directors/Deans/Heads of the

Departments of the private un-aided B-Schools of Maharashtra and the organizational

commitment of the academic faculties working under them (r =

.065,p=.146).Furthermore, the correlation analyses as mentioned earlier ,showed that

the transformational leadership style of the Directors/Deans/Heads of the Departments

had a greater significant impact (Beta = .094) on the organizational commitment of

employees compared to the significant impact of transactional leadership of the

Directors/Deans/Heads of the Departments( Beta = .065). These results were

consistent with the hypothesis. Hence, the hypothesis was accepted.

Table 14(i) shows the Regression Analysis between Transformational Leadership

(OBS), Transactional Leadership (OBS), on Employee Commitment.

Variables Employee Commitment

Transformational Leadership .166(**)

Transactional Leadership .131(*)



248

Table 14(ii) shows the Regression Analysis between Transformational Leadership

(EXP), Transactional Leadership (EXP), on Employee Commitment.

Variables Employee Commitment

Transformational Leadership .094(*)

Transactional Leadership .065



6.7.4H14: The Laissez-Faire Leadership Style of the Heads of the

Departments/Directors has a negative impact on the level of employees‟


To test this hypothesis, both correlations and regression analyses were conducted. The

results of the regression analysis revealed that the laissez-faire leadership style of the

Directors/Deans/Heads of the Departments of the private un-aided B-Schools of

Maharashtra(as perceived or observed by the respondents, the academic faculties)

had a significant negative relationship with the level of organizational commitment of

employees ( r= -.106, p = .011). Likewise, the results of regression analysis indicated

that the regression coefficient (B) demonstrated that the variable of laissez-faire

leadership style of the Directors/Deans/Heads of the Departments had a significant

negative effect on the level of employee commitment of the academic faculties of the

B-Schools of Maharashtra as shown in Table 15(i).For each increment in one standard

deviation unit of the laissez-faire leadership style of the Directors/Deans/Heads of the

Departments, the expected value in the level of employee commitment decreases by a

standard deviation of -.106.The results were consistent with the hypothesis. Therefore,


249

On the other hand, the Laissez-Faire Leadership styles of the immediate supervisors

as expected by the B-School‘s academic Faculties were found to have a significant

negative relationship with the level of organizational commitment of employees ( r= -

.121, p = .004), just as it had been found in the findings of the perceived or observed

Laissez –Faire Leadership style. The results of regression analysis indicated that the

regression coefficient (B) demonstrated that the variable of laissez-faire leadership

style of the Directors/Deans/Heads of the Departments had a significant negative

effect on the level of employee commitment of the academic faculties of the B-

Schools of Maharashtra as shown in Table 15(ii). For each increment in one standard

deviation unit of the laissez-faire leadership style of the Directors/Deans/Heads of the

Departments, the expected value in the level of employee commitment decreases by a

standard deviation of -.121.The results were consistent with the hypothesis. Therefore,


Table 15(i) shows the Regression Analysis between Laissez-Faire Leadership

(OBS), and Employee Commitment.

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

1 (Constant) 64.065 .592 108.290 .000

Avoids Involve –

Leissez Faire (Perceived

or observed)

-.060 .024 -.106 -2.547 .011

R=-.106

R Square=.011


250

Table 15(ii) shows the Regression Analysis between Laissez – Faire Leadership

(EXP),) and Employee Commitment.

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

1 (Constant) 64.065 .592 108.290 .000

Avoids Involve –

Leissez Faire

(Expected)

-.104 .036 -.121 -2.912 .004

R=-.121

R SQUARE=.015


Correlation Analysis for Laissez-Faire Leadership Styles:

As shown in table 15(iii), concerning the relationship between Laissez-Faire

leadership style(perceived/observed by employees in their immediate superior) of

the director of B-schools of Maharashtra and employee commitment level of the

academic faculties working under him, the Pearson correlation result demonstrated

that the relationship between the two variables are negatively correlated and highly

significant -.146(**) at the level of confidence of 0.01(2 tailed).The results were

consistent with the hypotheses therefore the hypotheses was accepted.

Similarly as shown in table 15(iv), the Pearson‘s correlation, indicated that there was

a negative relationship between the Leissez-Faire leadership style (expected by

employees in their immediate superior) of the Director/HOD of the private un-aided

B-schools of Maharashtra and employee commitment of the academic faculties and

are highly significant -.121(**) (* Correlation is significant at the 0.01 level {2-

tailed}). Therefore it shows that Laissez - Faire Leadership Style was negatively

251

correlated with employee commitment and there is significant difference. Therefore


Table 15(iii) Correlations of Leissez-Faire leadership styles (OBSERVED „OBS‟ or

Perceived) with organizational commitment.

Avoids Involve –Leissez Faire

(Perceived/Observed)

Pearson Correlation -.146(**)


N 570



Table 15(iv) Correlations of Leissez-Faire leadership styles (EXPECTED „EXP‟)

with organizational commitment.

Avoids Involve –Leissez Faire (Expected) Pearson

Correlation -.121(**)


N 570



Correlations – With Gap between Expected and observed Laissez-Faire

Leadership Style:

As shown in table 15(iii and iv), the Pearson‘s correlation, indicated that there was a

negative relationship between the Laissez-Faire leadership style (observed/expected

by employees in their immediate superior) of the Director/HOD of the B-schools of


Maharashtra at a significant difference of -.146(**)/ -.121(**) respectively. These

results were consistent with the hypotheses. Therefore, the hypotheses were accepted.

The Correlations with the Gap shown between the Laissez-Faire Leadership Style

252


Maharashtra from their immediate supervisors indicates a negative correlation of



the academic faculties is not having a significant difference (.067).

Table 15(v) Correlations of Leissez-Faire leadership styles (with GAP between

observed „OBS‟/expected „EXP‟) with organizational commitment.

Avoids Involve –Leissez Faire (Gap) Pearson

Correlation -.063


N 570




6.7.5 H15: There is difference (GAP) between the expected and observed leadership

styles of the Heads of the Departments/Directors of private un-aided B-Schools of

Maharashtra on employee‟s organizational commitment.

The Correlations with the Gap shown between the Transformational Leadership Style




expected leadership styles of the directors rated by the academic faculties is

significant at .092(*) for build trust(IA),.097(*) Acts With Integrity (IB), .059Inspires

Others (IM), .071(*) Encourages Innovative- Thinking (IS),and .111(**)Coaches

People (IC).

253

The Correlations with the Gap shown between the Transactional Leadership Style





the academic faculties is significant with .162(**) for Contingent

Reward(CR),.110(**) Management By Exception(Active) (MBE-A), **correlation is

significant at the level of (0.01) and *Correlation (0.05) is significant at the level of

(0.01). But Employee Commitment is negatively significant with -.087(*)

Management by Exception-Passive (MBE-P) of Transactional Leadership Style

followed by the supervisors.

The Correlations with the Gap shown between the Laissez-Faire Leadership Style


Maharashtra from their immediate supervisors indicates a negative correlation of



the academic faculties is not having a significant difference (.067).

Table 16 Correlations of Transformational/ Transactional leadership styles (with

GAP between observed „OBS‟/expected „EXP‟) with organizational commitment.

Commitment


(Gap)

Pearson

Correlation .092(*)


N 570

Acts With Integrity (IB) -

Transformational (Gap)

Pearson

Correlation .097(*)


254

N 570


(Gap)

Pearson

Correlation .059


N 570


Transformational Thinking (IS) -

Transformational (Gap)

Pearson

Correlation .071(*)


N 570


(Gap)

Pearson



N 570


(CR) – Contingent reward Transactional

(Gap)

Pearson



N 570

MBE-A Transactional (Gap) Pearson



N 570

Fights Fires (MBE-P) MBE-

Transactional (Gap)

Pearson

Correlation -.087(*)


N 570

Avoids Involve –Leissez Faire (Gap) Pearson

Correlation -.063


N 570




6.7.6 H16: Together the Transformational and Transactional Leadership Styles of

the Heads of the Departments/Directors of private un-aided B-Schools of

Maharashtra will have a greater impact on the employee‟s commitment level, rather

than either of the two separately.

Table 12-(i) and 13-(i) showed the results of regressing transformational and

transactional leadership styles (as observed ‗OBS‘ by the academic faculties) of

255

Heads of the Departments/Directors/Deans of the private un-aided B-Schools of

Maharashtra on the organizational level of employees separately. Table 12-(i)

indicated that the R2 was 0.035 and Table 13-(i) showed that R

2 was 0.024. This

means that the transformational leadership style of the Deans/Directors/Heads of the

Departments explained approximately 03.5% of the total variation in the level of

organizational commitment and transactional leadership style of the

Deans/Directors/Heads of the Departments explained approximately 02.4% of the

total variation in the level of organizational commitment of employees. In addition,

Table 17-(i) presents the results of regressing together the transformational and

transactional leadership styles on the organizational commitment level of employees.

According to the table, R2 was 0.116. This means that, together, the two styles

explained approximately 11.6% of the total variation in the organizational

commitment level of employees. Thus, together, the transformational and

transactional leadership styles of Deans/Directors/Heads of the Departments had a

greater impact on the level of the organizational commitment of employees, rather

than either of the two separately. Therefore, the hypothesis was supported.

Similar explanation can be given for the results of regressing transformational and

transactional leadership styles (as Expected ‗EXP‘ by the academic faculties) of

Heads of the Departments/Directors/Deans of the private un-aided B-Schools of

Maharashtra on the organizational level of employees separately. Table 17-(ii)

presents the results of regressing together the transformational and transactional

leadership styles on the organizational commitment level of employees. According to

the table, R2 was 0.009. This means that, together, the two styles explained

approximately 9% of the total variation in the organizational commitment level of

employees. Thus, together, the transformational and transactional leadership styles of

256

Deans/Directors/Heads of the Departments had a greater impact on the level of the

organizational commitment of employees, rather than either of the two separately.

Therefore, the hypothesis was supported.

Table 17(i) shows Regression analysis of Transformational and Transactional

leadership styles (OBSERVED „OBS‟ or perceived “P”) on employee commitment.

Variable

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

(Constant) 51.823 2.616 19.808 .000

Transformational (P

or OBS) .160 .035 .186 4.516 .000

(Constant) 63.174 3.080 20.509 .000

Transactional

Leadership(P or

OBS)

.402 .139 .154 2.884 .004

R=0.34

R Square=0.116

Dependent Variable: EC_SCORE Employee Commitment

Table 17(ii) shows Regression analysis of Transformational and Transactional

leadership styles (Expected “Exp”) on employee commitment.

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

1 (Constant) 55.655 3.946 14.104 .000

Transformational

(Exp) .092 .047 .083 1.978 .048

1 (Constant) 63.174 3.080 20.509 .000

Transactional

Leadership(Exp) .016 .088 .010 .182 .856

R=0.093

R Square= .009


257


6.7.7 H17: There will be a positive relationship with the level of education and the

level of employees‟ commitment of private un-aided B-Schools of Maharashtra.

Correlation results revealed that the level of education has a statistically non-

significant negative relationship (z =-1.572, p=.117) with the level of organizational

commitment of employees. In addition, as shown in Table 18-(ii) below, the

regression results demonstrated that the educational level of employees had a

statistically significant positive effect on their level of commitment toward the

organization (t = 3.555, p= .000). For each increment in one standard deviation unit of

education, the expected value in the level of organizational commitment of employees

increased by a standard deviation of .148.These findings were consistent with the

hypotheses. Therefore, the hypothesis was confirmed.

Table 18-(i). Correlation Results of the Level of Education on Employee

Commitment.

t-test for Equality of Means

t df

Sig. (2-

tailed)

Commitment -1.572 242.372 .117

Table 18-(ii). Regression Results of the Level of Education on Employee

Commitment.

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B Std. Error

1 (Constant) 65.343 1.952 33.479 .000

p3q2

EDUCATION 2.369 .666 .148 3.555 .000

R = .148

R 2

=.022.

A Dependent Variable: EC_SCORE Employee Commitment of Employees

258


6.7.8 H18: There will be a positive relationship with the age and the level of


According to the results obtained from the regression and correlation analyses, there

was a significant positive relationship between employee‘s age and their level of

organizational commitment. The correlation results indicated that employee‘s age had

a significant positive relationship (F = 7.952, p=0.01) with the level of organizational

commitment of employees. As shown in Table 19-(ii), the regression results revealed

that the regression coefficient (B) demonstrated that the employee‘s age had a

statistically significant effect on the level of organizational commitment of

employees. For each increment in one standard deviation unit of the employee‘s age,

the expected value in the level of organizational commitment of employee‘s increases

by a standard deviation of .141.These findings supported the hypothesis that

employee‘s age will have a positive relationship with the level of organizational

commitment of employees. Thus, the hypothesis was accepted.

Table 19-(i). Correlation Results of the Age on Employee Commitment.

Sum of Squares df

Mean

Square F Sig.

Commitment Between

Groups 3928.367 3 1309.456 7.952 .000

Within

Groups 93199.683 566 164.664

Total 97128.051 569

P.T.O

259

Table 19-(ii). Regression Results of the Age on Employee Commitment.

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B Std. Error

1 (Constan

t) 68.084 1.272 53.535 .000

p3q1

AGE

1.740 .513 .141 3.389

.001

R = .141

R2 = .02/.019

Dependent Variable: EC_SCORE Employee Commitment.


6.7.9 H19: There will be a positive relationship between occupational status and the

level of employees‟ commitment of private un-aided B-Schools of Maharashtra.

According to the results of correlation analysis, the variable of occupational status

found to be positively correlated with the level of employee commitment (r= .071),

but this correlation was not statistically significant (p >0.05, i.e., p=.007). Also the

regression analysis, as shown in Table 20-(ii) below, confirmed that the occupational

status of employees had a positive effect on their level of organizational commitment

of employees. But this effect was not statistically significant ( t = .414, p = .679). For

each increment in one standard deviation unit of the occupational status, the expected

value in the level of organizational commitment of employees increases by a standard

deviation of .017. These findings were inconsistent with the hypothesis. Thus, the

hypothesis was rejected.

P.T.O

260

Table 20-(i). Correlation Results of the Occupational Status on Employee

Commitment.

Sum of

Squares df

Mean

Square F Sig.

Between

Groups 1692.244 2 846.122 5.023 .007

Within Groups 95334.574 566 168.436

Total 97026.818 568

Table 20-(ii). Regression Results of the Occupational status on Employee

Commitment.

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B

Std.

Error

1 (Constant) 71.715 .966 74.261 .000

p3q4

Occupational

Status

.140 .339 .017 .414 .679

R = .017

A Dependent Variable: EC_SCORE Employee Commitment


6.7.10 H110: There will be a positive relationship between pay (salary) and the level

of employees‟ commitment of private un-aided B-Schools of Maharashtra.

The findings of the correlation analysis indicated that monthly income had a positive

relationship with the level of organizational commitment of employees (r = .000), and

this relationship was significant (p> 0.05). In addition, the regression results, as

shown in Table 21-(ii), demonstrated that monthly income of employees had a

261

positive effect on their level of organizational commitment. But this effect was not

statistically significant (t = -2.859, p = .004). For each increment in one standard

deviation unit of salary, the expected value in the level of organizational commitment

increases by a standard deviation of -.119. These results were consistent with the

hypothesis. Therefore, the hypothesis was accepted.

Table 21-(i). Correlation Results of the Salary (Monthly In-Come) on Employee

Commitment.

ANOVA

Sum of Squares df Mean Square F Sig.

Commitment Between

Groups 3510.020 3 1170.007 7.074 .000

Within

Groups 93618.031 566 165.403

Total 97128.051 569

Table 21-(ii). Regression Results of the Salary (Monthly In-Come) on Employee

Commitment.

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B

Std.

Error

1 (Constant) 75.268 1.226 61.372 .000

p3q5

Monthly

Income

Salary

-.928 .325 -.119 -2.859 .004

A Dependent Variable: EC_SCORE Employee Commitment

262


6.7.11 H111: Married Employees of private un-aided B-Schools of Maharashtra will

be more committed to their organization than single, divorced and widowed

employees.

To examine this hypothesis, an ANOVA was performed. As shown in Table 22-(i),

the results revealed that based on marital status, there was a significant difference (F =

.014, p = 0.014) in the level of organizational commitment between employees.

Married employees (mean = 64.1210) showed a higher level of commitment to the

single (mean = 61.0256). Thus, the hypothesis was confirmed and accepted.

Table 22-(i). Correlation Results of the Marital Status on Employee

Commitment.


t df Sig. (2-tailed)

Commitment 2.468 567 .014

Table 22-(ii). Regression Results of the Marital Status on Employee

Commitment.

Mode

l

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B

Std.

Error

1 (Constant) 77.173 1.458 52.918 .000

p3q3 Marital

Status -4.055 1.089 -.154 -3.725 .000

A Dependent Variable: OC_SCORE Organizational Commitment

263

Table 22-(iii). Mean Difference of the Marital Status on Employee Commitment.

Marital

Status N Mean

Std.

Deviation

Std. Error

Mean

Commitment Married 426 64.1210 12.80612 .62046

Single 143 61.0256 13.48123 1.12736

Hypothesis Testing12

6.7.12 H112: Male gender of private un-aided B-Schools of Maharashtra will be

more committed to their organization than the female gender.

To examine this hypothesis, a correlation analysis was performed. As shown in Table

23(i) this results revealed that based on the gender of the employees of private un-

aided B-Schools of Maharashtra, there was no significant difference.(F=

1.081,p=0.280) in the level of organizational commitment between employees. Male

gender (mean =64.0436) showed a higher level of commitment to the organization

than their corresponding female gender (mean= 62.8536) but there is no statistically

significant difference. Therefore, the hypothesis was rejected.

Table 23-(i). Correlation Results of the Gender on Employee Commitment.


t df

Sig. (2-

tailed)

Commitment 1.081 568 .280

Table 23-(ii). Regression Results of the Gender on Employee Commitment.

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta B

Std.

Error

1 (Constant) 73.746 1.628 45.288 .000

p3q7

Gender -1.087 .999 -.046 -1.089 .277

264

A Dependent Variable: OC_SCORE Organizational Commitment

Table 23-(iii). Mean Difference of the Gender on Employee Commitment.

Gender N Mean

Std.

Deviation

Std. Error

Mean

Commitment Male 255 64.0436 13.56764 .84964

Female 315 62.8536 12.64054 .71221


6.7.13 H113: Employees undergoing internal promotions of private un-aided B-

Schools of Maharashtra will be more committed to their organization.

To examine this hypothesis, an ANOVA was performed. In addition, the regression

results, as shown in Table 24-(ii), demonstrated that internal promotions of employees

had a positive effect on their level of organizational commitment. But this effect was

not statistically significant (t = .554, p = .580). For each increment in one standard

deviation unit of promotion, the expected value in the level of organizational

commitment increases by a standard deviation of .028.This result was not consistent

with the hypothesis.). Internal Promotion within zero to two years of internal

promotion (mean =63.9694) showed a higher level of commitment to the organization

than internal promotion within three to six years (mean= 63.3099) and internal

promotion within seven to ten years of promotion (mean = 51.4620) showed a lower

level of commitment. Thus, the hypothesis was not confirmed as it is not statistically

significant according to regression analysis. But the hypothesis was confirmed as it is

statistically significant according to correlation analysis. So, it can be stated that the

hypothesis was accepted.

265

Table 24-(i). ANOVA for the Internal Promotions on Employee Commitment.

Sum of

Squares df

Mean

Square F Sig.

Commitment Between

Groups 2840.818 2 1420.409 8.517 .000

Within

Groups 94225.498 565 166.771

Total 97066.317 567

Table 24-(ii). Regression Results of the Internal Promotions on Employee

Commitment.

Table 24-(iii). Mean Difference of the Internal Promotion on Employee

Commitment.

Promotion N Mean

Commitment 0-2 years 407 63.9694

3-6 142 63.3099

7-10 19 51.4620

Total 568 63.3862

To conclude this section, it is appropriate to include the results of the complete

regression model, the multiple regressions of all the independent variables used in the

study on the dependent variable (employee commitment). Based on the values of the

variables in the model, the estimated level of employee commitment when all non-

Coefficientsa

71.904 1.729 41.583 .000

.739 1.333 .028 .554 .580

(Constant)

P3Q8 Internal

promotion taken place

w ithin the time span

Model

1

B Std. Error

Unstandardized

Coeff icients

Beta

Standardized

Coeff icients

t Sig.

Dependent Variable: OC_SCRa.

266

dummy variables are at their mean values is 77.469.Coefficient values for each

dummy show the change in the level of commitment for those categories.

Table 25.Regression Results of all the Independent Variables on Employee

Commitment

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std.

Error

Beta

1

(Constant) 40.522 7.270 5.574 .000

AGE 1.490 1.872 .077 .796 .427

EDUCATION -1.608 1.114 -.109 -1.444 .151

Marital Status .584 1.825 .023 .320 .749

Occupational

Status 1.949 1.112 .160 1.754 .081

Monthly

Income Salary 6.955 3.025 .176 2.299 .023

Length of

service 5.375 1.798 .288 2.989 .003

Gender .980 1.302 .049 .753 .453

Internal

promotion

taken place

within the time

span

-.868 1.658 -.035 -.524 .601

Transactional

Leadership .369 .214 .137 1.719 .087

Transformation

al Leadership .124 .079 .136 1.568 .119

NLF1 -.338 .186 -.131 -1.813

.071

R2=.

24

8

F=5.52

6

SIG=.

000

Dependent Variable: EC_SCR

267

CHAPTER-7

DISCUSSIONS AND CONCLUSIONS

268

CHAPTER-7

DISCUSSIONS AND CONCLUSIONS

This chapter is divided into two sections. Discussions, conclusions, and limitations.

The discussion section provides an explanation of the results and clarifies how they

are related to the literature. The second section is concerned with providing

meaningful conclusions derived from the study findings.

7.1 Discussion

The research questions for this study include the following:

7.1.1 Research Questions:

1) To what extent are faculties of private unaided B-Schools of Maharashtra

committed to their organizations?

2) What Leadership characteristics do Deans/Directors of private un-aided B-

Schools of Maharashtra possess as interpreted by the faculties under them?

3) What are the effects of the Dean‘s and Director‘s perceived leadership

characteristics on the level of employee‘s organizational commitment?

4) Is there a difference in the level of commitment among academic faculties on

the basis of demographic and job related variables?

5) Is there a difference of Leadership styles perceived and expected by the

academic faculties from their respective Deans and Directors?

To answer these questions, a thorough and detailed review of the literature on

leadership and employee commitment was conducted. Based on the review of the

literature, 4 expectations and 12 hypotheses were derived and tested by the researcher.

269

Before discussing the results of testing the expectations and hypotheses, some

comments should be made regarding the characteristics of the respondents. The

findings of this study indicated that a plurality of respondents were between the ages

of 20 and 29 (58.6%), held Masters Degree MMS and MBA (85.2%), among it 5.6%

with graduation in BA/B.COM/BSc/B.E. and 20.0% with masters degree MMS/MBA

with another masters degree M.A/M.E./MSc, were married (74.4%), were employed

as Assistant Professors (51.6%), were in the middle and higher income category

(76.3%), and had worked between 1 and 5 years of service in private un-aided B-

Schools of Maharashtra ( 56.8%)., were of the gender female(55.3%), and have

experienced internal promotions in their present organization within 1 and 2 years

(52.8%).The relationships between the answers of the majority on the eight

demographic items are logically accepted.

With regard to testing the research expectations and hypotheses, the results indicated

that only one expectation was supported, while three were rejected. The results also

indicated that eleven while two were rejected.

The findings of this study revealed that the majority of private un-aided B-School‘s

employees (70.2%) of Maharashtra were found to be committed to the organization,

while the remaining percentage were found either neutral or uncommitted. The

highest score for the category of employee commitment was 105 and the lowest score

was 68.These results were consistent with the hypothesis that the majority of the

employees of the private un- aided B-Schools of Maharashtra were found to be highly

committed to their organization. One explanation of this result could be that the

majority of the B-School employees are well paid and have family responsibility and

are belonging to the female gender category, that positively affect their level of

commitment to the organization. Another explanation of this could be that less

270

number of doctoral degrees was found among the B-Schools academic facilitates were

relatively low in number. Very high levels of education negatively affect the level of

commitment of employees. Steers (1977) argued that employees with higher levels of

education may have higher expectations which make it difficult for an organization to

meet such expectations and results in less committed employees. Another explanation

of this could be that private sector employees are more committed to their

organization than their counterparts in the private sector. Buchanan (1974a) also

observed that public managers are ―less involved, less loyal, and display weaker

identification with the aims of their agencies than business executives‖ (p.345).

The results of the study showed that the majority of the private un-aided B-School‘s

academic faculties observed their Heads of the Departments as transformational and

transactional. This result was also consistent with what the study hypothesized.

However, the findings indicated that the score for Head of the Departments

categorized as transactional was 45.2% and the score for Head of the Departments

categorized as transformational was about 63.1%. This implied the prevalence of

transactional and transformational leadership characteristics among the majority of

Heads of the Departments in private un-aided B-Schools of Maharashtra. (The highest

score for the category transactional leadership style was 40 and the lowest score was

20, the highest score for the category transformational leadership style was 90 and the

lowest score was 54). But the expectation of the academic faculties of B-Schools

slightly varies in transformational leadership (The highest score for the category

transformational leadership style was 90 and the lowest score was 61). The literature

revealed that transactional leadership is a type of leadership that is based on an

exchange relationship between leader and follower. The transactional leaders focus on

the clarification of task requirements and the specification of contingent rewards

271

(Bass, 1990).Whereas the Transformational leaders transform the needs, aspirations,

and values of followers from a focus on self-interest to a focus on collective interest.

They practice trust building to create strong commitment to a common mission. They

generate emotion, energy, and excitement that cause followers to make significant

personal sacrifices in the interest of the mission, and to perform above and beyond the

call of duty. (Lussier /Achua, 2008).One reason behind this could be that academic

faculties of private un-aided B-Schools in Maharashtra number more in Female

gender (55.3%) than their male counterparts (44.7%).In female gender emotive

factors and emotional attachment are more sensitive than male gender.

Transformational leadership has been found to be positively related to organizational

commitment and job-satisfaction. And as found from the result of the study the

commitment level (70.2%) is quite high among the academic faculties of the B-

Schools of Maharashtra. Therefore the result confirms the earlier studies and

definitions of transformational leadership style too and also indicated that the majority

of the respondents viewed their Head of the departments as transformational. This

finding support the hypothesis that the majority of the academic faculties of the B-

Schools of Maharashtra perceive their managers to be significantly transformational

as well as transactional in their leadership style and keeps an expectation from their

Head of the departments to be more transformational than transactional. The result

also shows that the Head of the departments are not following Laissez –Faire

Leadership style. Both the expected and observed leadership style findings of the

respondents show that Laissez-faire leadership style has. Thereby we find that the

findings support Hypothesis 1, 3, 4, 5&6. The findings confirms the earlier literature

too that it describes a process of positive influence that changes and transforms

individuals, organizations, and communities. Transformational leaders influence their

272

constituencies to make the shift from focus on self-interests to a focus on collective

interests. They understand the importance of trust building as a means to creating a

high commitment to mission-driven outcomes. Effective transformational leaders use

their charisma and power to inspire and motivate followers to trust and follow their

example. They generate excitement and energy by focusing on the future

(Lussier/Achua, 2008). The present research study have revealed that transformational

leadership has been found to be positively related to organizational commitment and

in turn work outcomes. The research data showed that the respondents i.e., the

academic faculties of private un-aided B-Schools of Maharashtra observed/perceived

their immediate Heads of the Departments/Directors to whom they report, with the

following findings of transformational leadership style:

a) Build Trust(IA) [.000(**)]

b) Acts with Integrity(IB)[.000(**)]

c) Inspires other (IM) [.000(**)]

d) Encourages Innovative thinking(IS)[.012(*)]

e) Couches people(IC)[.000(**)]

For the above data: ** Correlation is significant at the 0.01 level (1-tailed).


The research data showed that the respondents i.e., the academic faculties of private

un-aided B-Schools of Maharashtra expected from their immediate Heads of the

Departments/Directors to whom they report, with the following findings of

transformational leadership style:

a) Build Trust(IA) [.010(*)]

b) Acts with Integrity(IB)[.047(*)]

273

c) Inspires other (IM) [.004(**)]

d) Encourages Innovative thinking(IS)[.362]

e) Couches people/Individual consideration(IC)[.122]

Transactional Leadership seeks to maintain stability within an organization through

regular economic and social exchanges that achieve specific goals for both the leaders

and their followers. Burns indicated that the transactional leaders influence followers

by transactions of exchange in which rewards such as pay, promotions, or status are

exchanged for work. Bass maintains that transactional leadership revolves around the

leader-follower exchange, in which the leader rewards the follower for specific

behaviours and performance that meets with the leader‘s expectations, and punishes

or criticizes behaviour or performance that does not meet expectation. The research

data showed that the respondents i.e., the academic faculties of private un-aided B-

Schools of Maharashtra observed/perceived their immediate Heads of the


transactional leadership style:

a) Contingent Reward (CR) [.000(**)]

b) Management By Exception-Active(MBE-A) [.000(**)]

c) Fights Fire-Management By Exception-Passive (MBE-P) [.001(**)]



The research data showed that the respondents i.e., the academic faculties of private

un-aided B-Schools of Maharashtra expected their immediate Heads of the



274

a) Contingent Reward (CR) [.249]

b) Management By Exception-Active(MBE-A) [.077]

c) Fights Fire-Management By Exception-Passive (MBE-P) [.103]



From the above data it is understood that the academic faculties of the B-Schools of

Maharashtra do not want their Heads of the Departments and the Directors to whom

they report to follow transactional leadership style.

The research data also showed that the respondents i.e., the academic faculties of

private un-aided B-Schools of Maharashtra GAP between the perceived and

observed leadership styles of their immediate Heads of the Departments/Directors

to whom they report, with the following findings of transformational as well as


a) Build Trust(IA) [.014(*)]

b) Acts with Integrity(IB)[.011(*)]

c) Inspires other (IM) [.081]

d) Encourages Innovative thinking(IS)[.045(*)]

e) Couches people(IC)[.004(**)]

f) Contingent Reward (CR) [.000(**)]

g) Management By Exception-Active(MBE-A) [.004(**)]

h) Fights Fire-Management By Exception-Passive (MBE-P) [.019(*)]



So, it‘s understood from the above given data that the academic faculties observe their

275

Heads/Directors to be both transactional and transformational. But their expectation is

more towards transformational leaders than transactional. Despite these differences, it

is worth mentioning that effective leaders exhibit both transactional and

transformational leadership skills in appropriate situations. Along these lines, one

study proposed that a manager‘s perceptions of organizational context and personality

variables would influence or constrain his or her utilization of transformational and

transactional leadership behaviours (S.L.Shivers-Blackwell, 2004 /J.E.Bono and

T.A.Judge, 2004). A meta-analytic test of the relative validity of transformational and

transactional leadership styles revealed that both are valid approaches for achieving

organizational objectives,(B.M. Bass ,B.J.Avolio,D.I.Jung,and Y.Berson,2003) with

transformational leadership showing the highest overall relations and transactional or

contingent reward leadership a close second.(T.Judge and R.Piccolo,2004)

In other research study comparing transformational, transactional, and laissez-faire

leadership styles between women and men, it was found that female leaders were

more transformational than male leaders, and also engaged in more of the contingent

reward behaviours that are a component of transactional leadership. Male leaders

were generally more likely to manifest the other aspects of transactional leadership

(active and passive management by exception) and laissez-faire leadership (A.H.

Eagly, M.C. Johannesen Schmidt, and M.L.V.Engen, 2003).

Consistent with what this study hypothesized, the results revealed that both

Transformational and Transactional Leadership Styles had a positive impact on the

level of organizational commitment of employees. An explanation for this result could

be that B-School Faculties value the transformational and Transactional leadership

styles because they are consistent with the academic values and cultures. These

findings support the other scholarly studies. Bass and Avolio (1994) stated that both

276

transformational and transactional leadership styles enhance the level of commitment

to the organization among employees. Further, it has been found that the level of

organizational commitment of employees was positively related to the initiating and

consideration structure behaviours(which are similar to transactional and

transformational leadership styles, respectively)of their immediate managers(Brief et

al.,1976;Morris & Sherman,1981).In other research, the positive relationship between

transformational leadership style and the level of organizational commitment was

emphasized(Bateman & Strasser,1984;Bycio et al.,1995;Carlson &

Perrewe,1995;Michael & Sector,1982;Morris Sherman,1981). The effects of both

styles on organizational commitment were consistent with Bass‘s augmentation

theory of leadership. Bass‘s augmentation theory of leadership postulates that

successful leaders are both transformational and transactional. Based on this theory,

transformational and transactional leadership styles should have positive effects on

the level of organizational commitment of employees and this is what this study

demonstrated. The findings showed that transformational and transactional leadership

styles positively affected organizational commitment. The results also indicated that

transformational leadership had a greater impact on the level of organizational

commitment of employees compared to transactional leadership. This could be

attributed to two factors; first, the transformational leadership focuses more on the

human side of individuals. In relation to this, Carlson and Perrewe (1995) stated that,

―When transformational leadership is enacted, members of organizations no longer

seek merely self-interest, but that which is beneficial to the organization as a whole‖

(p.832)

The findings of this study revealed that there was a significant positive relationship

between the age of employees and their organizational commitment level. An

277

explanation of this finding could be that when employees get older, their alternative

employment opportunities become limited. As a result, they are likely to develop

more positive attitudes toward their organization including organizational

commitment. This finding was consistent with the literature (Angle & Perry, 1981;

Hrebiniak, 1974; Lee, 1971; Mathieu & Zajac, 1990).Mowday et al. (1982) and

Meyer and Allen (1984) indicated that when the individual gets older and remains

with an organization longer, the individual‘s opportunities for alternative employment

tend to decrease, thereby enhancing the employee‘s commitment to the organization.

With respect to the relationship between education and the level of organizational

commitment of employees, the results demonstrated that there was a positive

relationship between the two variables but is not statistically significant. To explain

this relationship, we can say that more educated employees often have higher

expectations which may be met with in academic institution, since the promotion is

based on academic developments and not only performance based. Though previous

literature and research study conducted in public organization in Saudi Arabia

confirms that highly qualified employees adversely affects employee‘s level of

commitment toward their organization(Faisal Homoud A-Ammaj,2000). In relation to

this, Mowday et al.(1982),Steers (1977),Mathieu and Zajac (1990), and AL-Kahtany

(1998) found education to be inversely related to commitment. But with respect to B-

School‘s academic faculties of Maharashtra it is not inversely related but positively

related but not statistically significant.

As predicted, the results of this study showed that there was a significant and positive

relationship between the length of service of employees and employee commitment.

This finding was consistent with previous studies (AL-Kahtany, 1998; Angle & Perry,

1981; Hrebiniak, 1974; Lee, 1971; Mathieu and Zajac, 1990). One explanation for this

278

finding can be that when employees stay longer with an employer; their alternative

employment opportunities become limited. This positively affects the employee‘s

attitudes toward the employer and consequently enhances their organizational

commitment. It may also be that the longer one is in an organization, the more

acclimated they become to the norms and values that constitute part of the

organizational culture.

With regard to occupational status, the results indicated that occupational status was

positively related with employee commitment but is not statistically significant. In

other research, it has been found that a positive relationship between occupational

status and employee commitment exists (AL-Kahtany, 1998; Wiener & Vardi, 1980).

This positive relationship is due to the fact that employees who occupy top-level or

heading the department have more pay and prestige. As a result, employees tend to be

more committed.

Additionally, the results indicated that there was a positive relationship between

monthly income (salary) and employee commitment. And this effect was statistically

significant at .05 levels; it was significant at .10 levels. A logical explanation for such

a relationship is that pay or monthly income is one of the most important factors that

assess employee‘s attitudes toward their organization. This finding supports previous

research studies (AL-Kahtany, 198; Angle & Perry, 1983; Becker, 1960).

In testing the hypothesis based on marital status, the findings clearly showed that

married employees were found to be more committed than single, divorced, or

widowed employees. This result of this finding was statistically significant and was

positively related to employee commitment. This result is consistent with the

literature (Kawakubo, 1987; Lincoln & Kalleberg, 1990). To explain this, one may

279

say that married employees often have big responsibilities for their families which

force them to be more committed than others. For instance, it is more cost incurring

and risk taking for a married employee who has family responsibility upon him to

leave his employer without alternative employment or income than a single employee.

These responsibilities force married employees to be more committed to their

employing organizations.

In testing the hypothesis based on gender classification, the findings clearly showed

that there is a positive relation of both the gender with employee commitment, but the

result of the findings was not statistically significant. The hypothesis demands that

male gender will be more committed to their organizations than their female

counterparts‘. Since the frequency and the strength of the female employees are more

in the academic faculties of the B-Schools of Maharashtra, It could be said that the

number of female employees along with their male counterparts are committed to

their organizations. Gender, as a topic in organizational commitment literature, has

been approached from both the gender-model and the job model (Aven, Parker, &

McEvoy, 1993). The gender approach to the study of women and organizational

commitment was described as one where the basic belief was that, "women accept

family roles as a chief source of their identity and fulfilment, leading to a different

orientation to work for men, for whom work is paramount" (Loscocco, 1990, p. 155).

In contrast, proponents of the job-model view concerning the study of organizational

commitment and women indicated that there were no differences in the work attitudes

of women and men, and that work attitudes of both sexes developed in similar ways

(Loscocco).

In testing the final hypothesis, the findings clearly showed that employees who had

undergone internal promotion within 0-6 years are more committed to their

280

organization than the rest. The explanation of this could be the simple psychology of

employees‘ ambition to be promoted keeps their commitment to their employer. The

descriptive statistics showed that employee(63.9694) undergo internal promotion

within a span of 0-2years and employee(63.3099) undergo internal promotion within

a span of 3-6years,and (51.4620)employees undergo internal promotion within a span

of 7-10years. The correlation result shows that internal promotion is statistically

significant with employee commitment. It should be noted here that the findings of

the overall regression results indicated that the result was not statistically significant.

To explain this, it could be that the existence of multicollinearity between some

variables led to incorrect results.

To summarize the result it could be suggested that the most committed employee is

the one who is older, educated, has a high monthly income, has served the

organization for a considerable period of time, is married, male, and undergoes early

promotions, and works under a leader who is more of transformational, transactional

too but less laissez-faire in following the leadership styles with an expectation of their

Leaders to be more and more Transformational in nature.

7.2 CONCLUSION

As organizations strive to improve, there is a pressing need to understand the factors

that may directly or indirectly impact individual‘s behaviours in organizations. This

study was concerned with two important issues in the field of organizational

behaviour, organizational commitment and leadership. The literature revealed that

both subjects were considered as major contributors to the success of any

organization, public or private. Based on the findings of the present study, the

researcher developed the following conclusions:

281

1. The findings of this study indicated that transactional and transformational

leadership styles positively impacted the level of employee commitment of the

academic faculties of the B-Schools of Maharashtra. Additionally, the findings

showed that the organizational commitment of individuals was negatively

affected by the laissez-faire leadership style. Thus, in terms of organizational

commitment, these results provide support for the cross-cultural applicability

of Bass‘s augmentation theory of leadership, which postulates that successful

leaders are both transformational and transactional. Bass (1996) stated that ‗

although the model of transformational or transactional leadership may have

needs for adjustments and fine-tuning as we move across cultures, particularly

into non-Western, overall, it holds up as having a lot of universal

potential‖(p.754). Furthermore, consistent with Bass‘s theory that stressed that

successful leaders are more transformational, the findings of this study

demonstrated that the academic faculties of the B-Schools of Maharashtra

keeps an expectation from their Heads of the Departments and Directors to be

more transactional in nature while dealing their sub-ordinates and confirmed

that sub-ordinates of transformational leaders were more committed to the

organization than those who were under transactional leaders.

2. The results revealed that the majority of the academic faculties of the B-

Schools of Maharashtra were found to be committed to the organization.

3. The majority of the academic faculties of the B-Schools of Maharashtra

perceived/observed their leaders or Heads of the Departments/Directors to

exhibit transformational and transactional characteristics, but keeps an

expectation from their Heads to whom they report to be more transformational

in nature and follow contingent reward as well as management by exception-

282

active when concerning transactional leadership. Management by exception –

passive was not accepted by the B-School academic employees.

4. Consistent with early research studies, the demographic variables of age,

education, monthly income, marital status i.e., married employees had

significant positive impacts on employee commitment. The result also shows

that length of service, internal promotion, occupational status are positively

related to employee commitment but the statistical results are not significant.

The result also shows that both male and female employees are positively

related to employee commitment but their statistical findings showed no

significant difference.

283

CHAPTER 8

RECOMMENDATIONS AND SUGGESTIONS

284

CHAPTER 8

RECOMMENDATIONS AND SUGGESTIONS

8.1 Recommendations:

Based on the results of the research findings, it could be said that, to enhance

employee‘s organizational commitment, leaders or Heads of the Departments have to

utilize both Transformational and Transactional Leadership Styles.

If employees are highly committed, they are expected to be highly productive and

loyal to their employing organization. However, the results of the study show that the

academic faculties of the private un-aided B-Schools are moderately committed to

their organisation. This result carries with it an important implication that the

organization may achieve its goals with the committed employees. Buchanan (1974a)

argued that employee commitment is no less than a precondition for successful

organizations. In addition, the literature demonstrated that organizational commitment

of employees is positively related to job performance and tenure with the

organization, and negatively with turnover, absenteeism, and tardiness. Therefore, the

Heads of the Departments or the Directors of the B-Schools of Maharashtra, leaders

and managers and those who are responsible for the developments of the employees

working under their leadership must pay close attention to their styles of dealing

people and enhance their skills for better job-performance and productivity and their

quality of teaching or working.

Heads and Directors of the institutes who hold the leadership position should follow

both transformational and transactional leadership styles as the findings demonstrated

that the employee‘s level of organisational commitment was having positive impact

285

by transformational and transactional leadership style.

Leaders who avoid responsibilities and making decisions are not appreciated by their

employees as the result of the research shows that the Laissez-Faire style had a

negative impact on the employee commitment. Therefore, it is recommended that

Heads should be more active in taking responsibilities and actively taking part in

decision–making process.

The findings also indicated that the maximum positive contribution to employee

commitment came from the behaviours associated with transformational leadership. It

implies that a high level of organisational commitment of employees would be a

result of having Deans and Directors of the B-Schools who are both transformational

and transactional, but who display more transformational characteristics.

Orientation programs should be applied. Such programs will provide new employees

with a general background about the organisation, its mission, its values, and its

policies.

Communications between management and highly educated employees should take

place.

Regular increments and special increments for the deserving candidates should be

implemented. Rewards and award giving ceremony should be held on annual

occasions to motivate and inspire aspiring employees too.

Experienced employees and employees who are in service to the organisation for a

considerable period of time should be given importance and not taken for granted.

Their advice and contributions can be pertinent to the achievement of the

organisational goals.

286

Internal promotional system should be there in terms of the employee‘s performance

and interpersonal communication skills. Institutions should provide a supportive work

environment, which creates a mutually beneficial environment.

Institutions should demonstrate their commitment to the employees by providing

comprehensive training, sharing information, provide for the development and growth

of employees within the organisation.

8.2 Suggestions:

It is suggestive that the Heads of the departments or the Directors under whose

leadership the academic faculties of the private un-aided B-schools of Maharashtra

are working should be more transformational and transactional in nature while dealing

with the academic faculties.

It is even more suggestive that the Heads or the directors should be more

transformational in their leadership styles. They should be more co-operative and

participative in nature. Though they are expected to be transactional in their

leadership styles but they should not devote much time over finding mistakes in their

sub-ordinate faculties.

The Heads and the Directors should not avoid or delay in taking decisions. They

should be more punctual by nature and should not delay in responding to urgent

questions. They should not be absent when needed and should not wait for things to

go wrong before taking actions. Their steady involvement in all the important issues

and problems should be there.

For newly joined faculties orientation programs should be conducted.

Regular communications should be there between the management and highly

287

educated faculties.

Regular increments as per the HR of the institutions should be there. Whenever new

openings are there, internal candidates should be considered first for the promotions.

Inspirational and motivational training programmes should be there for the faculties.

For good academic achievements or feedback from the students or conducting

National and International seminars or for resource generation for the institute, the

faculties should be rewarded and awarded.

Employees who are working for a considerable period of time and the senior

employees should be given more importance and should be involved in the decision–

making process. Their wisdom and experience can be beneficial to the organisation.

288

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309

ANNEXURE-I

QUESTIONNAIRES

310

ANNEXURE-I

QUESTIONNAIRE-1

PART – I

This part contains statements containing concerning general information about the

participant. Please read the following statements and check (If reply is through e-mail

then kindly state YES or NO) the category that best describes your situation. (Name

of Institution: )

1) Age :

------------20-29

------------30-39

-----------40+

2) Education :( Type the qualification achieved for, eg. BA-MBA /MMS)

-----------BA/BCom/BSc /BE

-----------MA/MCom/MSc /ME

-----------Master Degree/MBA/MMS

----------Doctorate

3) Marital Status:

-----------Married

-----------Single

-----------Divorced

-----------Widowed

4) Occupational status

------------Lecturer

-----------Assistant Professor

-----------Associate Professor

-----------Professor

311

5) Monthly income salary

----------45 k and above

----------35-44 k

----------25-34 k

---------15-24k

6) Length of Service

-----------Up to 5 Years

----------6-10years

----------more than 10years

7) Gender

----------Male

----------Female

8) Internal promotion taken place within the time span

----------0-2 years

---------3-6 years

--------7 – 10 years

312

QUESTIONNAIRE-2

PART – II

Employee Commitment Questionnaire

Employee Commitment Survey-OCQ

You are being asked to participate in a survey to provide the state of Maharashtra with

information that will help to improve the working environment for employees.

Participation in this survey is voluntary and confidentially is assured. No individual

data will be reported.

The following statements concern how you feel about the department where you

work. Please indicate the extent of your agreement or disagreement with each

statement by circling a number from 1 to 7.If answering by way of e-mail then

kindly RATE your answer by choosing from 1-7 ,any number as per your rating,

for e.g., „3‟ under the column Rate. Please do not put your name on this

questionnaire.

1 2 3 4 5 6 7

strongly

disagree

Disagree somewhat

disagree

Neutral Somewhat

agree

Agree Strongly

agree

Employee Commitment Questionnaire 1 2 3 4 5 6 7

RATE

1 I am willing to put a great deal of effort beyond

that normally expected in order to help this

organization be successful

313

2 I talk high about this organization to my friends

as a great organization to work for

3 I feel very little loyalty to this organization

4 I would accept almost any type of job

assignment in order to keep working for this

organisation.

5 I find that my values and organization‘s values

are very similar

6 I am proud to tell others that I am part of this

organization.

7 I could just as well be working for a different

organization as long as the type of work was

similar

8 This organization really inspires the very best

in me in the way of job performance

9 It would take very little changes in my present

circumstances to cause me to leave this

organization

10 I am extremely glad that I choose this

organization to work for over others ,I was

considering at the time I joined

11 There is too much to be gained by sticking to

this organization indefinitely.

12 I find it easy to agree with this organization‘s

policies on important matters relating to its

314

employees.

13 I really care about the fate of this organization.

14 For me, this is the best of all possible

organizations for which to work.

15 Deciding to work for this organization was a

right decision on my part.

315

QUESTIONNAIRE-3

PART – III

Head of the Department/Director: M / F - ------------- (Please circle the

appropriate response, if by way of e-mail then kindly state M/F in the blank

space provided)

This questionnaire is to describe the leadership style of your Head of the Department

(or the person you report to), as you perceive/observe it. Please answer all items on

this sheet. If an item is irrelevant, or if you are unsure or do not know the answer,

leave the answer blank. Please answer this question anonymously.

Thirty descriptive statements are listed on the following pages. Judge how frequently

each statement fits the person you are describing. Use the following rating scale by

circling your desired option for rating. If answering by way of e-mail, then kindly

rate your answer by stating the number you prefer to rate your immediate

leader to whom you report, for e.g., „4‟ under your rating column and state

his/her designation in the blank space provided in the table given below.

Not at all Once in a

while

Sometimes Fairly often Frequently,

if not always

0 1 2 3 4

Leadership style preferred by you:

Your designation : YOUR

RATING

1 Instil pride in me for being associated with 0 1 2 3 4

316

him/her

2 Go beyond self interest for the good of the

group

0 1 2 3 4

3 Act in ways that build others respect for him/her 0 1 2 3 4

4 Display a sense of power and confidence 0 1 2 3 4

5 Talk about his/her most important values and

beliefs

0 1 2 3 4

6 Specify the importance of having a strong sense

of purpose

0 1 2 3 4

7 Consider the moral and ethical consequences of

decisions

0 1 2 3 4

8 Emphasize the importance of having a collective

sense of mission

0 1 2 3 4

9 Talks optimistically about the future 0 1 2 3 4

10 Talks enthusiastically about what needs to be

accomplished

0 1 2 3 4

11 Articulate a compelling vision of the future 0 1 2 3 4

12 Express confidence that goals will be achieved 0 1 2 3 4

13 Seeks different perspectives when solving

problem

0 1 2 3 4

14 Suggest new ways of looking at how to

complete assignments

0 1 2 3 4

15 Spend time teaching and coaching sub-ordinates 0 1 2 3 4

16 Treat each faculty as an individual rather than 0 1 2 3 4

317

just as a member of the group

17 Consider each faculty as having different needs,

abilities and aspirations from others.

0 1 2 3 4

18 Help each faculty to develop their strengths 0 1 2 3 4

19 Discuss in specific terms who is responsible for

achieving performance targets

0 1 2 3 4

20 Make clear what one can expect to receive when

performance goals are achieved

0 1 2 3 4

21 Express satisfaction when expectations are met 0 1 2 3 4

22 Focus attention on irregularities, mistakes,

exception and deviations from standards

0 1 2 3 4

23 Concentrate his/her full attention on dealing

with complaints and failures

0 1 2 3 4

24 Direct his/her attention towards failures to meet

standards

0 1 2 3 4

25 Fail to interfere until problems become serious 0 1 2 3 4

26 Wait for things to go wrong before taking action 0 1 2 3 4

27 Avoid getting involved when important issues

arise

0 1 2 3 4

28 He/she is absent when needed 0 1 2 3 4

29 Avoid making decisions 0 1 2 3 4

30 Delay responding to urgent questions 0 1 2 3 4

318

QUESTIONNAIRE-4

PART – IV

Multifactor Leadership Questionnaire (MLQ)

Head of the Department/Director: M / F - ------------- (Please circle the

appropriate response, if by way of e-mail then kindly state M/F in the blank

space provided)

This questionnaire is to describe the leadership style of your Head of the Department

(or the person you report to), as you expect it. Please answer all items on this sheet. If

an item is irrelevant, or if you are unsure or do not know the answer, leave the answer

blank. Please answer this question anonymously.

Thirty descriptive statements are listed on the following pages. Judge how frequently

each statement fits the person you are describing. Use the following rating scale by

circling your desired option for rating. If answering by way of e-mail, then kindly

rate your answer by stating the number you prefer to rate your immediate

leader to whom you report, for e.g., „4‟ under your rating column and state

his/her designation in the blank space provided in the table given below.

Not at all Once in a

while

Sometimes Fairly often Frequently,

if not always

0 1 2 3 4

319

Leadership style followed by my immediate supervisor

Designation of the person you report to --- YOUR

RATING

1 Instil pride in me for being associated with

him/her

0 1 2 3 4

2 Go beyond self interest for the good of the

group

0 1 2 3 4

3 Act in ways that build others respect for him/her 0 1 2 3 4

4 Display a sense of power and confidence 0 1 2 3 4

5 Talk about his/her most important values and

beliefs

0 1 2 3 4

6 Specify the importance of having a strong sense

of purpose

0 1 2 3 4

7 Consider the moral and ethical consequences of

decisions

0 1 2 3 4

8 Emphasize the importance of having a collective

sense of mission

0 1 2 3 4

9 Talks optimistically about the future 0 1 2 3 4

10 Talks enthusiastically about what needs to be

accomplished

0 1 2 3 4

11 Articulate a compelling vision of the future 0 1 2 3 4

12 Express confidence that goals will be achieved 0 1 2 3 4

13 Seeks different perspectives when solving

problem

0 1 2 3 4

14 Suggest new ways of looking at how to

complete assignments

0 1 2 3 4

320

15 Spend time teaching and coaching sub-ordinates 0 1 2 3 4

16 Treat each faculty as an individual rather than

just as a member of the group

0 1 2 3 4

17 Consider each faculty as having different needs,

abilities and aspirations from others.

0 1 2 3 4

18 Help each faculty to develop their strengths 0 1 2 3 4

19 Discuss in specific terms who is responsible for

achieving performance targets

0 1 2 3 4

20 Make clear what one can expect to receive when

performance goals are achieved

0 1 2 3 4

21 Express satisfaction when expectations are met 0 1 2 3 4

22 Focus attention on irregularities, mistakes,

exception and deviations from standards

0 1 2 3 4

23 Concentrate his/her full attention on dealing

with complaints and failures

0 1 2 3 4

24 Direct his/her attention towards failures to meet

standards

0 1 2 3 4

25 Fail to interfere until problems become serious 0 1 2 3 4

26 Wait for things to go wrong before taking action 0 1 2 3 4

27 Avoid getting involved when important issues

arise

0 1 2 3 4

28 He/she is absent when needed 0 1 2 3 4

29 Avoid making decisions 0 1 2 3 4

30 Delay responding to urgent questions 0 1 2 3 4

321

ANNEXURE-II

Tables and Graphs

322

ANNEXURE-II

Tables and Graphs

A.1.1Reliability - Expected

Reliability Statistics

Cronbach's

Alpha

Cronbach's Alpha

Based on Standardized

Items

N of

Items

.817 .826 30

Summary Item Statistics

Mean Minimum

Maxim

um Range

Maximum

/ Minimum

Varianc

e

No. of

Items

Inter-Item

Correlatio

ns

.137 -.363 .694 1.057 -1.915 .081 30

The covariance matrix is calculated and used in the analysis.

Item-Total Statistics

Scale

Mean if

Item

Deleted

Scale

Variance if

Item

Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if

Item

Deleted

Exq1 78.49 73.509 .533 . .804

Exq2 78.47 73.459 .535 . .804

Exq3 78.49 74.243 .498 . .806

Exq4 78.75 76.245 .293 . .813

Exq5 78.77 75.811 .325 . .812

Exq6 78.46 73.064 .560 . .803

Exq7 78.44 73.403 .562 . .803

Exq8 78.39 74.010 .529 . .805

Exq9 78.37 73.752 .527 . .805

Exq10 78.36 73.936 .548 . .804

Exq11 78.44 72.869 .579 . .802

Exq12 78.40 72.988 .629 . .802

Exq13 78.55 72.702 .591 . .802

Exq14 78.59 74.087 .479 . .806

Exq15 78.57 71.817 .583 . .801

Exq16 78.52 72.725 .578 . .802

Exq17 78.59 73.725 .303 . .815

Exq18 78.59 74.544 .459 . .807

Exq19 78.37 73.590 .535 . .804

323

Exq20 78.37 74.022 .530 . .805

Exq21 78.30 74.130 .511 . .806

Exq22 78.83 77.647 .190 . .817

Exq23 78.86 76.946 .234 . .815

Exq24 78.94 77.996 .165 . .818

Exq25 81.37 82.905 -.179 . .835

Exq26 81.55 82.512 -.169 . .831

Exq27 81.61 83.093 -.223 . .831

Exq28 81.63 82.067 -.150 . .827

Exq29 81.62 82.302 -.162 . .829

Exq30 81.58 82.718 -.189 . .830

A.1.2. Reliability - Observed


Cronbach's

Alpha

Cronbach's Alpha

Based on

Standardized Items

N of

Items

.867 .874 30


Mean

Minimu

m

Maxim

um Range

Maximu

m /

Minimu

m

Varianc

e

No. of

Items

Inter-Item

Correlations .188 -.303 .794 1.097 -2.621 .069 30


Item-Total Statistics

Scale

Mean if

Item

Deleted

Scale

Variance if

Item

Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlatio

n

Cronbach's

Alpha if

Item

Deleted

Mlq1 71.30 161.414 .566 .579 .858

Mlq2 71.23 163.291 .528 .603 .859

Mlq3 71.17 164.723 .542 .490 .860

Mlq4 70.87 167.445 .384 .466 .863

Mlq5 70.90 166.488 .401 .533 .863

Mlq6 70.95 164.561 .484 .539 .861

Mlq7 71.13 163.974 .517 .527 .860

Mlq8 71.10 163.974 .507 .544 .860

Mlq9 71.01 165.346 .511 .514 .860

324

Mlq10 71.03 165.027 .500 .550 .860

Mlq11 70.94 162.367 .555 .634 .859

Mlq12 70.86 163.965 .455 .458 .861

Mlq13 71.22 163.265 .541 .541 .859

Mlq14 71.23 160.928 .563 .550 .858

Mlq15 71.39 159.347 .583 .563 .857

Mlq16 71.28 162.639 .554 .539 .859

Mlq17 71.27 160.884 .589 .640 .858

Mlq18 71.26 161.510 .570 .614 .858

Mlq19 71.11 161.221 .574 .581 .858

Mlq20 71.20 160.868 .620 .572 .857

Mlq21 71.22 160.203 .594 .521 .857

Mlq22 71.16 167.984 .328 .463 .864

Mlq23 71.18 168.075 .328 .530 .864

Mlq24 71.32 167.392 .320 .457 .865

Mlq25 73.01 176.302 -.028 .524 .875

Mlq26 73.19 175.858 -.004 .655 .873

Mlq27 73.34 174.787 .034 .673 .872

Mlq28 73.25 173.997 .059 .577 .872

Mlq29 73.37 175.477 .010 .746 .873

Mlq30 73.32 176.268 -.020 .691 .874

A.1.3. Reliability - Employee Commitment


Cronbach's

Alpha

Cronbach's Alpha

Based on Standardized

Items

N of

Items

.804 .821 15


Mean Minimum

Maximu

m Range

Maximu

m /

Minimu

m

Varianc

e

N of

Items

Inter-Item

Correlations .234 -.234 .806 1.040 -3.442 .049 15


325

Scale

Mean if

Item

Deleted

Scale

Variance

if Item

Deleted

Correcte

d Item-

Total

Correlat

ion

Squared

Multiple

Correlati

on

Cronbac

h's

Alpha if

Item

Deleted

I am willing to put a great deal of effort

beyond that normally expected in order to

help this organization be successful

70.4396 133.471 .432 .474 .794

I talk high about this organization to my

friends as a great organization to work for 70.9780 122.488 .678 .711 .776

recp1q3 71.4945 132.075 .157 .373 .820

I would accept almost any type of job

assignment in order to keep working for this

organisation.

72.3626 117.900 .498 .453 .786

I find that my values and organization's

values are very similar 71.6923 122.304 .637 .541 .777

I am proud to tell others that I am part of this

organization. 70.8242 121.213 .742 .776 .772

I could just as well be working for a different

organization as long as the type of work was

similar

72.4945 145.431 -.089 .233 .826

This organization really inspires the very best

in me in the way of job performance 71.4176 122.246 .567 .450 .781

It would take very little changes in my

present circumstances to cause me to leave

this organization

72.8132 139.287 .063 .158 .819

I am extremely glad that I choose this

organization to work for over others ,I was

considering at the time I joined

71.3956 122.397 .633 .529 .777

recp1q11 71.9011 124.490 .498 .493 .786

recp1q12 72.4505 126.139 .447 .403 .790

I really care about the fate of this

organization. 70.9890 135.100 .206 .252 .807

326

Split Half Reliability

Cronbach's

Alpha

Part 1 Value .694

N of Items 8(a)

Part 2 Value .665

N of Items 7(b)

Total N of Items 15

Correlation Between Forms .644

Spearman-

Brown

Coefficient

Equal Length .784

Unequal Length .784

Guttmann Split-Half Coefficient .778

A .The items are: I am willing to put a great deal of effort beyond that normally

expected in order to help this organization be successful , I talk high about this

organization to my friends as a great organization to work for, recp1q3, I would

accept almost any type of job assignment in order to keep working for this

organisation., I find that my values and organization's values are very similar, I am

proud to tell others that I am part of this organization., I could just as well be working

for a different organization as long as the type of work was similar, This organization

really inspires the very best in me in the way of job performance.

B. The items are: It would take very little changes in my present circumstances to

For me, this is the best of all possible

organizations for which to work. 71.7363 118.441 .702 .624 .771

recp1q15 70.8571 130.724 .405 .393 .794

327

cause me to leave this organization, I am extremely glad that I choose this

organization to work for over others, I was considering at the time I joined, recp1q11,

recp1q12, I really care about the fate of this organization., For me, this is the best of

all possible organizations for which to work., recp1q15.

A 1.4 Frequency Table with Graphical Representation

a) AGE

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 2 20-29 Years 334 58.6 58.6 58.6

3 30 - 39

Years 183 32.1 32.1 90.7

4 40 & above 53 9.3 9.3 100.0

Total 570 100.0 100.0

b) EDUCATION

Frequency Percent

Valid

Percent

Cumulative

Percent

Val

id

1 BA/BCom/BSc

/BE 32 5.6 5.6 5.6

2 MA/MCom/MSc

/ME 114 20.0 20.0 25.6

3 Master

Degree/MBA/MMS 340 59.6 59.6 85.3

4 Doctorate 84 14.7 14.7 100.0 Total 570 100.0 100.0

59%

32%

9%

Agewise Distribution

20-29 Years 30 - 39 Years 40 & above

328

c) Marital Status

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1

Married 424 74.4 74.4 74.4

2 Single 143 25.1 25.1 99.5

3

Divorced 3 .5 .5 100.0

Total 570 100.0 100.0

d) Occupational Status

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Lecturer 168 29.5 29.5 29.5

2 Assistant

Professor 294 51.6 51.6 81.1

3 Associate

Professor 65 11.4 11.4 92.5

4 Professor 43 7.5 7.5 100.0 Total 570 100.0 100.0

Married74%

Single25%

Divorced1%

Marital Status

329

e) Monthly Income Salary

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 45 k and

above 435 76.3 76.3 76.3

2 35-44 k 90 15.8 15.8 92.1

3 25-34 k 28 4.9 4.9 97.0

4 15-24k 17 3.0 3.0 100.0

Total 570 100.0 100.0

Lecturer Assistant Professor

Associate Professor

Professor

29.5

51.6

11.47.5

Occupational Status

45 k and above

35-44 k 25-34 k 15-24k

76.3

15.8

4.9 3

Monthly Income Salary

330

f) Length of service

Frequency Percent Valid Percent

Cumulative

Percent

Vali

d

1 Upto 5 yrs 324 56.8 56.8 56.8

2 6-10 yrs. 181 31.8 31.8 88.6

3 10+ 65 11.4 11.4 100.0

Total 570 100.0 100.0

g) Gender

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Male 255 44.7 44.7 44.7

2

Female 315 55.3 55.3 100.0

Total 570 100.0 100.0

57%32%

11%

Length of service

Upto 5 yrs 6-10 yrs. 10+ yrs

331

h) Internal promotion taken place within the time span

Frequency Percent

Valid

Percent

Cumulative

Percent Valid 1 0-2 years 301 52.8 79.0 79.0 2 3-6 years 76 13.3 19.9 99.0 3 7 - 10 years 4 .7 1.0 100.0 Total 381 66.8 100.0 Missi

ng System 189 33.2

Total 570 100.0

Male45%

Female55%

Gender

0-2 years

3-6 years

7 - 10 years

79

19.9

1

Internal promotion taken place within the time span

332

i) Level of Organisational Commitment

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Uncommitted

(15-52) 30 5.3 5.3 5.3

2 Neutral (53-67) 140 24.6 24.6 29.8

3 Committed (68-

105) 400 70.2 70.2 100.0

Total 570 100.0 100.0

j) Level of Transactional leadership Style(Perceived)

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid 1 Not Transactional 33 5.8 6.5 6.5

2 Rarely

Transactional 40 7.0 7.9 14.4

3 Little


4 Transactional 229 40.2 45.2 97.2

5 Highly


Total 507 88.9 100.0

Missin

g

System 63 11.1

Total 570 100.0

Uncomitted (15-52)5%

Neutral (53-67)25%

Committed (68-105)70%

Level of Organisational Commitment

333

k) Level of Transactional leadership Style(Expected)

Frequency Percent

Not Transactional 1 .2

Rarely 12 2.1

Little 365 64.0

Transactional 186 32.6

Highly Transactional 6 1.1

Total 570 100.0

1%

8%

61%

27%

3%


Not Transactional Rarely Little Transactional Highly Transactional

0% 2%

64%

33%

1%


Not Transactional Rarely Little Transactional Highly Transactional

334

l) Level of Transformation leadership Style(Perceived)

Frequency Percent

Not Transformational 2 .4

Rarely 17 3.0

Little 103 18.1


Highly


Total 570 100.0

1% 3%

18%

47%

31%


Not Transformational Rarely Little Transformational Highly Transformational

335

m) Level of Transformation leadership Style(Expected)

Frequency Percent

Little 21 3.7


Highly Transformational 353 61.9

Total 570 100.0

A.1.5 Tables and data related to the norms of Private Un-aided B-Schools of

Maharashtra.

The following are the list of approved nomenclature of courses at Post Graduate

Degree Program, in Management.

MASTERS IN ADMINISTRATIVE MANAGEMENT

MASTERS IN BUSINESS ADMINISTRATION

MASTERS IN BUSINESS ADMINISTRATION (BUSINESS ECONOMICS)

MASTERS IN BUSINESS ADMINISTRATION (ENVIRONMENT)

4%

34%

62%

Transformational (Exp)

Little Transformational Highly Transformational

336

MASTERS IN BUSINESS ADMINISTRATION (EXECUTIVE)

MASTERS IN BUSINESS ADMINISTRATION (FINANCE

MANAGEMENT)

MASTERS IN BUSINESS ADMINISTRATION (FINANCE MARKETING

AND HUMAN RESOURCE MANAGEMENT)

MASTERS IN BUSINESS ADMINISTRATION (FINANCE MARKETING)

MASTERS IN BUSINESS ADMINISTRATION (FINANCE)

MASTERS IN BUSINESS ADMINISTRATION (FINANCIAL

ADMINISTRATION)

MASTERS IN BUSINESS ADMINISTRATION (GENERAL

MANAGEMENT)

MASTERS IN BUSINESS ADMINISTRATION (HUMAN RESOURCE

DEVELOPMENT)

MASTERS IN BUSINESS ADMINISTRATION (HUMAN RESOURCE

MANAGEMENT)

MASTERS IN BUSINESS ADMINISTRATION (INFORMATION

TECHNOLOGY)

MASTERS IN BUSINESS ADMINISTRATION (INTERNATIONAL

BUSINESS)

MASTERS IN BUSINESS ADMINISTRATION (MARKETING AND

FINANCE)

MASTERS IN BUSINESS ADMINISTRATION (MARKETING

MANAGEMENT)

MASTERS IN BUSINESS ADMINISTRATION (MARKETING)

MASTERS IN BUSINESS ADMINISTRATION (TEXTILES)

337

MASTERS IN BUSINESS ADMINISTRATION (TOURISM

MANAGEMENT)

MASTERS IN BUSINESS MANAGEMENT

MASTERS IN BUSINESS SYSTEMS

MASTERS IN CORPORATE MANAGEMENT

MASTERS IN ENGINEERING AND MANAGEMENT

MASTERS IN FINANCIAL AND PERSONNEL MANAGEMENT

MASTERS IN FINANCIAL MANAGEMENT

MASTERS IN HUMAN RESOURCE DEVELOPMENT AND

MANAGEMENT

MASTERS IN HUMAN RESOURCE MANAGEMENT

MASTERS IN INDUSTRIAL MANAGEMENT

MASTERS IN INDUSTRIAL RELATIONS AND PERSONNEL

MANAGEMENT

MASTERS IN MANAGEMENT STUDIES

MASTERS IN MATERIALS MANAGEMENT

MASTERS IN PERSONNEL MANAGEMENT

MASTERS IN PUBLIC SERVICE MANAGEMENT

MHMCT (FOOD AND BEVERAGE MANAGEMENT)

MHMCT (HOSPITALITY AND TOURISM ADMINISTRATION)

338

Norms for Land requirement and Building Space for B-Schools of Maharashtra

Table below shows the Land Requirements for Management Institutions

Land Area requirement in Acres

Other than Rural places

(Competent Authority to certify that

the place is not located in a rural area)

Rural Places as defined by

Competent Authority

Stand alone Post Graduate Programs

Stand alone Post Graduate

Programs

Management

0.50 1.00

Table below states the strength of students against per acre of land available for


Program

Number of students generally allowed

per acre land available when FSI = 1

Management

300

Land area shall cover hostel facilities, if any

Land shall be in one continuous piece.

Considering hilly nature of land in North Eastern States, land may be made

available in 3 pieces which are not away from each other by more than 1 Km

339

Built-up-Area Requirements

The Institution area is divided in, Instructional area (INA, carpet area in sq. m.),

Administrative area (ADA, carpet area in sq. m.), Amenities area (AMA, carpet area

in sq. m.).

Circulation area (CIA) is equal to 0.25 (INA+ADA+AMA).

Total built up area in sq. m. is equal to (INA+ADA+AMA) + (CIA).

Norms for the building space for B-Schools of Maharashtra.

Table below gives the measurement of building space for Management

Institutions.

a The Institution area is divided in, Instructional area (INA, carpet area in sq.

m.), Administrative area (ADA, carpet area in sq. m.), Amenities area

(AMA, carpet area in sq. m.).

b Circulation area (CIA) is equal to 0.25 X (INA+ADA+AMA).

c Total built up area in sq. m. is equal to (INA+ADA+AMA) + (CIA).

d Universities are required to show the proof for availability of total built up

area in each category before the Expert Visiting Committee.

Instructional Area (Carpet Area) in sqm for B-School

Table below gives the measurement of Instructional area in Management

Institutions

Number

of

Divisions

UG

(Class of

60)

Duration

of course

in Yrs

Class

Rooms(C)

Tutorial

Rooms(D)

Computer

Centre

Library

&

Reading

Room

Seminar

Halls

(E)

Total

requirement

(Sum of

column 3 to

8)

requirement

per

student

(T/60)

1 2 3 4 5 6 7 8 9

Carpet

Area

in sqm

per

room

66 33 150 100 132

340

1.Classrooms, Tutorial rooms and Laboratories required for 2nd (and 3rd) year may

be added progressively to achieve total number as stated2 Round off fraction in

calculation to the next integer

Norms for Infrastructure facilities in B-Schools of Maharashtra:

Table below gives the list of computers, software, internet and printers required

in any B-Schools of Maharashtra.

Number

of PCs to

students

ratio

(Min 20

PCs)

Legal

System

Software

Legal

Applica

tion

Softwa

re

LAN &

Internet

Mail

Server

&

Client

Internet

Mbps /

intake of 24

students

with

Bandwidth

Contention

of 1:1

Min 1

Mbps

Printers

including

Colour

Printer

(% of

total no

of PC's)

Manage-

ment

PG/ 1:2 10 10 All Desired 02 10%

Utilization of Open Source Software may be encouraged

Secured Wi Fi facility is highly recommended

Purchase of most recent hardware is desired.

Library, Administrative offices and Faculty members be provided with

exclusive computing

Number

of

rooms

required

for

new

Technical

Entity

A Y C=A D=C/4 1 1 1

Total

Number

of rooms

A Y C=AxY D=C/4 1 1 E=C/4

341

Facilities along with LAN and Internet over and above the requirement meant

for students

Adequate number of software licenses is required

Central Xeroxing facility for students is preferred

Table below gives the list of books, journals and library facilities required in any

B-Schools of Maharashtra.

Program Total

number

of

Divisions

Titles Volumes National

Journals

International

Journals

MBA /

PGDM /

MCA

(PG)

B 100/50 500xB/500xB 12xB desirable

B= Number of divisions at I year+ Number of II Year direct division.

Mandatory Subscription of e-journals for all Institutions conducting

program in Management.

Publisher Subjects E-Content Annual Subscription

Price Per Institute

EBSCO Management Business Source Elite

e-journal Collection(

1802 e-journals &

magazines) (2011)

US$ 3500

342

Academic and good governance parameters in B-Schools of Maharashtra.

Table below gives the academic and governance parameters of B-Schools of

Maharashtra.

Item

No.

Item

Description

Evaluation

Guidelines

Organization and Governance, Resources, Institutional Support,

Development and Planning

1 Organization, Governance and

Transparency.

I Governing body, administrative setup

and functions of various bodies;

ii. Defined rules, procedures, recruitment

and promotional policies etc.;

iii. Decentralization in working and

grievance redressal system;

iv. Transparency and availability of

Correct/unambiguous information.

2 Budget allocation,

utilization and

financial practices

I Adequacy of budget allocation;

ii. Utilization of allocated funds;

iii. Publicly available the detailed audited

statements of all the receipts and

expenditures

Documents

A STUDY OF THE RELATIONSHIP BETWEEN LEADERSHIP …...CERTIFICATE This is to certify that the dissertation entitles “A study of the Relationship between Leadership Styles and Employee