Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Review Article: 2022 Vol: 26 Issue: 5

Development of A Template for Placing the Managers based on their Leadership Styles In Banking Sector

Susan Chirayath, ICFAI University

Citation Information: Chirayath, S. (2022). Development of a template for placing the managers based on their leadership styles in banking sector. Academy of Marketing Studies Journal, 26(4), 1-13.

Abstract

The present study was undertaken with the objective of developing a template / tool for: understanding current leadership styles which prevail in the banking sector; for illustrating the relationship between the goal communication by the leader and the consequent stress on the subordinates and for illustrating the relationship that the leader has with the subordinates and the consequent stress on the subordinates. In this descriptive, analytical study the variables that have been considered are based on leadership. For this the twelve styles of transactional leadership has been considered. They are Supportive, Rescuing, Normative, Prescriptive, Problem-Solving, Task-Obsessive, Innovation, Bohemian, Assertive, Aggressive, Resilient and Sulking. The population of the study consisted of 83 leaders in the regional office of the selected public sector bank and its branches. In communication of the goal by the leader, the factors that have been taken are goal’s importance, the specificity of the goal, the challenging goal, the execution of the goal, the concern for execution, the appreciation by the leader and the timely communication of the goal. The stress factors that have been considered are leader’s behaviour, not proper explanation, mental and physical stress, burdening of ‘not proper goal communication’ and inability to balance between work and family life. The study revealed that many of the officers exhibited the nature of ‘High Relationship and High Stress’.

Keywords

Template, Leadership Style, Bohemian, Resilient, Sulking.

Introduction

According to Drucker (2006), leadership is the lifting of man’s visions to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations. Executive leadership is the act of influencing the subordinates through offering intellectually stimulating and intrinsically rewarding assignments for the accomplishment of goals; both organisational and personal. The good leadership results in performance by followers without coercion or in other words through self-motivation. Good business leaders help their subordinates to evaluate themselves and find out the truth in them for their good and for the good of the organisation. As a result, executives are prepared to face the challenges in their job positively without being much prone to occupational stress and balance their work and life.

Review of Literature

Intagliata et al. (2006) conducted in-depth analyses of 1,500 individuals, from entry-level professionals to senior leaders and concluded that past performance isn’t always the sole measure of what someone can really do. The most effective leaders also know how to “push” — drive for results by telling people what to do and holding them accountable Folkman (2022). This view is in consonance with the argument of Rahbi et al. (2017) that leadership is an important perception that influences and motivates individuals and teams. According to Klingborg et al., (2014), leadership ideas have evolved so that newer characteristics of leaders include being a team builder; possessing creative and strategic thinking skills; demonstrating honesty and integrity; and having the ability to motivate others to action. Considering the leadership style from the point of view of employees, situation factors and goals of the organization is emphasised by Vesterinen et al. (2012). Hanson & Ford (2010) discussed that the highly complex networks between bureaucratic organizational structures and leadership conventions interactively and mutually support the acceleration of organizational outcomes that lead to successful team motivation. Rajagopal (2009) in his study concentrated on the senior level, middle level and junior level managers found that both the line and staff managers have consultative style. Singh & Singh (2009) believes that more the increase in positive stress, more the satisfaction among managers. Moore & Forster (2009) conclude that the leadership style that has to be adopted should be androgynous for sustained leadership in the organizational development. Inbavanan (2009) explains that the key behind a person to move forward is controlling the self, which means that the ability to lead our self would only reflect the way we would lead others. Srivastav (2009a) indicates that if one would make a self-effort to cope up with the problems then it would be easier to balance between the organizational and non- organizational roles. Fernandes & Mekoth (2009) found that, personal inadequacy was not a cause of stress based on gender but was found to exist among all the employees irrespective of gender. Chirayath (2007) opines that lack of clarification of the work, job insecurity, over workload, sufficient training not given to the work specifications and conflict with the superiors lead to stress among employees. Work overload, lack of mutual understanding with the boss, unequal job distribution, work environment, underutilization of the talent, lack of work satisfaction, no reward for better output and poor work system lead to work related stress in executives, says Chirayath (2006a). Much stress is experienced by the employees because of job insecurity when the factories are closed down and this was revealed in the study conducted by Chirayath (2006b) among female cashew workers who are in the non-executive level of management Srivastav (2009b).

Significance of the Study

Any organization’s power and stepping forward rest in the hands of the leaders, be it industrial or service sector organisation. These leaders need to set as an example to be followed by their subordinates. But the individual traits of the leaders differ in many aspects. This need to be set in tune to the functioning of the organization to set a mark in the society, so that they would be in a position to set benchmarking standards of leading in the forefront on all issues of governance. This would drive the other organizations to follow it and naturally the society of organizations would lead in the right path Srivastav (2007a).

Keeping the above facts in mind, the present study has been carried out in the banking sector; the driving forces of the nation’s economy. It is they who lend, who earn, who save the nation’s main wealth. Banks play a major role in laying the proper road map from nuclear family to the large ones. They provide ways of investments and saving for the future. This would function in normal pace and with proper ethical standards only by the governance of proper leaders. The styles of these leaders play a vital role in driving the organization to the proper goals laid down by the organization itself as well as the nation Srivastav (2007b).

The study is carried out to understand the leaders’ styles and to analyse the deficiencies of the existing leaders. This would help them to improvise on their leadership behaviour. The main factor that causes stress among the subordinates is that, the leaders are unplanned and there is improper communication with the subordinates. They are not clear with the goals laid down but they order the subordinates to do the same. This is the main cause for the stress in the work environment and to the subordinates Vries K de (2004). This leads to unnecessary tensions which beyond a limit would lead to psycho somatic diseases.

The interpersonal relationship is strained between the leaders and the subordinates when things go beyond a limit. This is the major factor for stress. The study is carried out to identify these factors and suggest ways of improvement. Human relations are perhaps the most important factor to determine the productivity of employees of any organisation. Thus the importance of the study lies in knowing the leadership styles as well as identifying the behavioural factors of the leaders that causes stress in the subordinates.

Objective of the study

The study was undertaken with the objective of developing a template / tool for:

1. Understanding current leadership styles which prevail in the banking sector

2. For illustrating the relationship between the goal communication by the leader and the consequent stress on the subordinates.

3. For illustrating the relationship that the leader has with the subordinates and the consequent stress on the Subordinates

Design of the Study

The present study is a descriptive analytical study. The variables that have been considered in this study are based on leadership. For this the twelve styles of transactional leadership has been considered. They are Supportive, Rescuing, Normative, Prescriptive, Problem-Solving, Task-Obsessive, Innovation, Bohemian, Assertive, Aggressive, Resilient and Sulking Table 1.

Table 1 List of Variables Used and Tools Employed
S.NO. NAME OF THE VARIABLES TOOL USED
  LEADERSHIP VARIABLES  
1. Supportive Tsi-m
2. Rescuing Tsi-m
3. Normative Tsi-m
4. Prescriptive Tsi-m
5. Problem-solving Tsi-m
6. Task-obsessive Tsi-m
7. Innovative Tsi-m
8. Bohemian Tsi-m
9. Assertive Tsi-m
10. Aggressive Tsi-m
11. Resilient Tsi-m

Sample

The population of the study consisted of 83 leaders in the Regional Office of the selected public sector bank and its branches. The methodology that has been adopted here is census sampling as each and every unit of the population was covered in the study. Out of 83 questionnaires given to the leaders of the bank, 60 data sheets were found appropriate and suitable for further analysis. Thus the sample consisted of 60 leaders from Regional Office and six branches of bank in the study area. There were 45 (75%) male leaders and 15 (25%) female leaders. The description of the various details of the leaders is in the Table 2.

Table 2 Description of the Sample
SAMPLE NUMBER PERCENTAGE
GENDER: Male Female 45 15 75% 25%
MARITAL STATUS: Single Married 14 46 23.3 76.7
LENGTH OF SERVICE: <1 1-10 11-20 20-30 >30 10 7 7 16 20 16.7 11.7 11.7 26.7 33.3
EDUCATIONAL QUALIFICATION: UG PG 38 22 63.3 36.7

Tools used

The following tool was utilized for the present study:

Transactional Styles Inventory- Managers (TSI-M) Pareek (2002)

Description of TSI-M

The TSI-M is composed of 36 likert type items which the leaders of the organization use to describe the leadership styles of the self Vries (2004).

Reliability of TSI-M

The reliability coefficients (with an interval of four weeks) with several groups have been found to range between 0.71 and 0.94 for the different styles. All these were significant at 0.01 levels. Guttman split-half, equal and unequal length Spearman-Brown for a sample of health administrators was found to be 0.89 respectively.

Validity of TSI-M

The validity of the instrument was tested by correlating TSI-M scores with ego gram scores. Predictions were made for the correlations of the five ego state scores on the ego gram with the styles scores. Four correlations were in the predicted directions. On the whole, the correlation data provides evidence of the validity of the instrument for training purposes.

Administration of TSI-M

The questionnaire was administered individually to all the leaders personally in the Regional Office and the branches. The time taken to fill in the questionnaire is around 20-30 minutes.

The purpose of the questionnaire was to get the details of the different styles of the leaders and also to suggest the possible ways of improvement Nirenberg (2004). This is essential for further study. The scale against which the respondents indicated the extent, to which each statement characterizes his /her leadership style, is defined by the following five categories:

1. Rarely or never

2. Occasionally

3. Sometimes

4. Often

5. Always

In order to get the desired results, all the leaders were administered the questionnaire.

Scoring of the Tool

1. The responses for the items in each row are added, and the total is written in the first blank. So, there would be a total of 12.

2. The totals of twelve rows represent 12 styles of transaction. In the lower portion of the answer sheet the dominant style (DS) and the back- up style (BS) are represented.

3. Against DS the name of the style with the highest score is written among the twelve rows.

4. Against BS, the name of the style with the next highest score is represented.

Data Relating to Transactional Styles

The raw scores on the twelve transactional styles were collected from the Officers of the Bank and are codified in the software SPSS 20.0 (Statistical Package for Social Sciences). The raw score that was collected especially for the transactional styles had thirty-six variables. It has been added up and separate variables of the transactional styles are formed and the mean value of the score has been entered for each respondent.

The Objective of Template Formulation

For the understanding of the leadership behaviours that exist in the selected bank for the present study, two templates have been specially developed for the Bank. This is based on the Goal communication by the leader to the subordinates and the relationships that exist between the leader and the subordinates. Both these aspects are basically done in relation to the stress level of the subordinates. The templates are illustrated below:

1. The first template illustrates the relationship between the goal communication by the leader and the consequent stress on the subordinates.

2. The second template illustrates the relationship that the leader has with the subordinates and the consequent stress on the subordinates Figure 1.

Figure 1 Template- Leadership 1 Goal Communication

This template is divided into four quadrants. They are:

➢ LOW GOAL, HIGH STRESS

➢ HIGH GOAL, HIGH STRESS

➢ LOW GOAL, LOW STRESS

➢ HIGH GOAL, LOW STRESS

These quadrants are explained below

Low Goal, High Stress

This quadrant would fit in the leadership behavior where the goal that is being communicated by the leader is not right. That is, the leader is not mindful of the impact that the subordinates would exhibit. And naturally, the subordinates are in a position where they will not be able to carry out the assigned duty properly as they are not aware of the outcome. This would naturally lead to higher stress in them because of the leadership behavior.

High Goal, High Stress

This quadrant would fit in the leadership behavior where the leader would basically not exhibit the behavior of communicating the goal before time. This would result in the subordinates being more stressed as they would be pressurized to do more task within a short period of time. So, they are highly stressed out because of this leadership behaviour Kothari (2004).

Low Goal, Low Stress

This quadrant would hold the leaders with their behavior being not communicating the goal to the subordinates properly and the result is that he is also not mindful of the outcome of the goal that is to be fulfilled. By this behavior of the leader there is much less stress on the subordinates. The outcome is not expected by the leader. This is not a proper behavior as the whole operations would lag behind and would not contribute to the goals of the organization Spreier et al. (2006).

High Goal, Low Stress

This quadrant is the apt and the right quadrant where the leaders should fit in. The leader who has this behavior would basically be more planned beforehand and there would be proper guidance given to the subordinates for them to achieve the goal that is being communicated. So, naturally the subordinates are less stressed as they are properly guided by their leader. This behavior is necessary for any leader to be successful Figure 2.

Figure 2 Template- Leadership (2) - Interpersonal Relationship

This template is divided into four quadrants. They are:

➢ LOW RELATIONSHIP, HIGH STRESS

➢ HIGH RELATIONSHIP, HIGH STRESS

➢ LOW RELATIONSHIP, LOW STRESS

➢ HIGH RELATIONSHIP, LOW STRESS

These quadrants are basically formed with respect to the transactional styles of the leaders as the styles depict the relationship that the leader has on the subordinates. The related transactional styles with respect to the stress of the subordinates are put in the same quadrants. These quadrants are explained below:

Low Relationship, High Stress

This quadrant holds the leader who has low relationship with the subordinates and naturally there would be more stress on the subordinates. The transactional styles that would fit into this kind of behavior are PRESCRIPTIVE, TASK- OBSESSIVE AND SULKING Styles.

Prescriptive Style

The leader with this style of behavior is basically concerned of creating rules and norms of behavior. They generally impose them on the subordinates. They are not much concerned about helping the subordinates in the different norms of behavior. So, the subordinates are more stressed and not naturally concerned about the relationship Mishra et al. (2008).

Task- Obsessive Style

The leaders are task-masters. They are much concerned about the work and the task given. The leader expects them to function as computers. He is insensitive to the emotional needs and other personal problems. This makes the subordinates to be stressed more and the relationship is strained Shiva & Roy (2008).

Sulking Style

The leaders of this style are introverts and keep the negative aspects to themselves and avoid meeting others. They do not confront the problem but avoid. This style makes the subordinates more stressed and there is strained relationship Krishna & Prasad (2002).

High Relationship, High Stress

This quadrant would hold the leader who has high relationship with the subordinates and naturally his expectation would be more from the subordinates. This would generally result in high stress for the subordinates. The transactional styles that fit into this quadrant are PROBLEM-SOLVING AND INNOVATIVE Sheila (2005).

Problem-Solving Style

This behavior that is being exhibited by the leader is much concerned about solving the problem and they involve the subordinates and solve them. This style makes them to be involved more and naturally is relationship oriented and this basically causes much stress to the subordinates as the expectation increases Gupta & Adhikari (2008).

Innovative Style

The leaders are more enthusiastic and are always creative. They also create the enthusiastic mood in others. This makes the subordinates to be more creative. So, there is high relationship and also the subordinates are more stressed out to find and create more ideas Rahbi Al Dana et al. (2017).

Low Relationship, Low Stress

This quadrant would basically hold the leader who has low relationship with the subordinates and would also not be bothered about the work. The subordinates are also not much concerned about this leader and naturally there is low stress for them. The transactional styles that fit into this quadrant are BOHEMIAN AND AGGRESSIVE Ongori & Agolla (2008).

Bohemian Style

This leader is more creative. He is unmindful of the idea being executed and such leaders are nonconformists. This makes the leader to be less relationship oriented and also the subordinates are not easily stressed Klingborg Donald et al. (2006).

Aggressive Style

The leaders with this style are basically fighters. This makes them to fight for everything as they think it would make them to achieve everything. Because of this nature the subordinates are basically unmindful of this attitude and are less stressed and also the relationship with the subordinates is less Giri & santra (2008).

High Relationship, Low Stress

This quadrant is the apt quadrant for any leader to be successful. The leader exhibits the character where there is high relationship with the subordinates and the stress exhibited by the subordinates would be less because the behavior of the leader makes them more comfortable and he is easily approachable for the work that is being carried out and as a result there is much less stress for the subordinates. The transactional styles that fit into this quadrant are RESCUING, SUPPORTIVE, NORMATIVE, ASSERTIVE AND RESILIENT Heifetz & Linsky (2002).

Rescuing Style

This style of leadership basically is a dependency relationship in which the manager, trainer, or consultant perceives that the main role as rescuing the subordinate. This relationship basically would make the subordinate to be less stressed and is dependent on the leader for all decision making aspects Lather et al. (2009).

Supportive Style

This style is exhibited by the leaders where they act as coaches and the subordinates are free to look on their leaders in times of need. This makes the subordinates to be less stressed and the leaders basically have good relationship with the subordinates and they have empathy to the subordinates Mehta & Kaur (2009).

Normative Style

The leaders are basically concerned by having proper norms of behavior for the subordinates and they make them understand for proper developing the norms of behavior. This style of behavior basically makes them to develop different ways of approaching the problem. This makes them to have a good and proper relationship with the subordinates and naturally they are stress- free Lord et al. (2002).

Assertive Style

The leader of this behavior, basically confront the problem for the subordinates and they respect the feelings of the subordinates. This makes them to coordinate the various issues concerned and is relationship oriented. The subordinates are naturally stress-free.

Resilient Style

The leader of this style basically, exhibits the nature of adaptability. They learn from the subordinates and accept the ideas of others. This makes the subordinates to be open and make them more creative. So, this style of leadership basically has the orientation of creating a stress free environment and is relationship oriented.

Transactional Style Scoring

The transactional style that has been adopted was scored according to the key and the dominant style and the back-up style of each respondent was identified. Then later on the template fitting process was done Ready (2004) Figure 3.

Figure 3 Template- Leadership (2) Interpersonal Relationship (Dominant Style)

Template Fitting

In finding the people who had fit themselves in the template, it is done by the scoring based on the respondents’ responses. Each individual is found to exhibit more than one dominant style. The respondents have been fit into the template based on each dominant style they exhibit. So, naturally they fall into more than one quadrant. The optimum quadrant is the quadrant which represents high relationship and low stress. But it is found that not all people exhibit this nature. Maximum styles of the respondents fall into the quadrant of High relationship and High Stress. Even others fall into the other two quadrants. This shows that the respondents are not very clear of their style and in adopting the particular style for progress.

The respondents should definitely need to understand this and change themselves as they need to fall into the optimum quadrant where they would exhibit a High Relationship and Low Stress Figure 4.

Figure 4 Template- Leadership (2) Interpersonal Relationship(Back-Up Style)

The above template fits the same set of respondents into the quadrants. Here the back-up style is being taken into consideration. Here, maximum of the respondents are into the right quadrant. But this should be reversed, where the respondents should have these characteristics as their dominant style.

Major Findings of the Study

1. Many of the officers exhibit the nature of ‘High Relationship and High Stress’. This has to be considered. Their work need to be rightly scheduled for them to reduce the stress level. The Leader- Subordinate relationship is on the right track, but when there is proper communication of the task earlier, then the stress could be managed with ease. This would definitely help the organization in the long run.

2. There is significant association between the aggressive and sulking styles of the female officers and the stress exerted by the subordinates.

3. There is significant association between the supporting, rescuing, prescriptive, problem-solving, task- obsessive, assertive, aggressive, resilient and sulking styles of the male officers and the stress exerted by the subordinates.

4. There is significant difference between the communication of the goal by the leaders and the stress exerted by the subordinates.

Suggestions for Further Research

The present study on the leadership behavior and its impact on the stress is not conclusive. The relationship styles alone are considered here. This situation calls for further research in this area:

1. This study is conducted only in district. More studies could be conducted by extending to all branches of the Bank in the state to get an overall picture of the leadership behavior.

2. Extensive studies could be carried out considering the other leadership styles like transformational and so on.

3. The leaders and the subordinates could be asked to suggest various other causes of stress and that could be included in the study.

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Received: 22-Jun-2022, Manuscript No. AMSJ-22-12219; Editor assigned: 24-Jun-2022, PreQC No. AMSJ-22-12219(PQ); Reviewed: 08-Jul-2022, QC No. AMSJ-22-12219; Revised: 15-Jul-2022, Manuscript No. AMSJ-22-12219(R); Published: 18-Jul-2022

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