Topic: Leadership Style in Banking Sector

Presented By;

Name: Priyanshi R Talesra

Std: TYBBI

Roll No: 61

Submitted to Nikita Shah

As an assignment of Research Methodology under Mumbai

University , semester 5, 2019-2020.

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INDEX
1. Certification……………………….3
2. Introduction……………………….4
3. Review of Literature………………………5
4. Research Methodology………………….7
(a) Problem Statement
(b) Objective
(c) Hypothesis
(d) Sampling
i. Population/ universal
ii. Sample size
iii. Sampling method
(e) Limitation
5. Primary data
a) Analysis…………………… 8
b) Interpretation…………..11
6. Hypothesis Rectification……………12
7. Bibliography………………………………12
8. Annexures……………………..13

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 1. Certification

This is to certify that this project has been made by

Priyanshi R Talesra of class TYBBI

On the topic Leadership Style In Banking Sector under

the guidance of Nikita Shah ma’am.

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2. Introduction
The position of companies and business activities is difficult in nowadays’ dynamic
and variable world. Requirements of the market are top efficiency, optimal
adaptation in a perspective. The performance of a company becomes currently
very topical theme. Its content includes all corporate activities that need to be
cohered to get a result with a functional and prosperous company with long term
perspective.
Leadership as community mobilization, initiation and motivation of executives’
involvement and their development. In the current period, banks are in the center
of attention. According to the public general, the most significant part of crisis
origination is attributed to banks. On European politicians discuss about need to
regulate the bank managers’ income and additional taxation of banks.
At the same time, conditions for the credit risk management of the banking sector
are getting worse because of the adverse economic development.
Leadership style is broadly perceived as a basic driving factor in the success or
disappointment of an organization; in line with this leader ship must be
adequately managed to the advantage of an organization for it to achieve success
in its organization and operation. There is no doubt saying that the success of
every organization in both its organizational management and business
operations depends generally on the nature of its labor force; and the proper
ability to lead this labor force towards attainment of the organization’s goal. From
the forgoing, the labor force of an organization is seen as the foundation upon
which an organization lies and relies. For this reason, it is important for every
lender to engage the right leadership style to provide everything necessary to
make or keep employees satisfied in their job performance and to administer the
organization towards achieving its operational goals.

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3. Review of Literature
3.1 Transactional leadership then again is leadership style that involves engaging
subordinates self-interest by establishing trade relationship with them.
Transactional leaders are those who sought to persuade followers by engaging
their self-interests. As per Avolio and Bass transactional leadership involves
unexpected prize, administration-by-exception (active) and management-by-
exception (passive).
3.2 It is basically a trade process in the middle of leaders and followers in which
efforts by followers is traded foe specific rewards. In this kind of leadership, the
pioneer tries to acquire assertion from followers on what must be done and the
prize for the accomplishment of the tasks.
3.3 Profitability management of banks under the deregulated environment with
some financial parameters of the major four bank groups i.e. public sector banks,
old private sector banks, new private sector banks and foreign banks, profitability
has decline in the deregulated environment. He emphasized to make the banking
sector competitive in the deregulated environment. They should prefer non-
interest income sources.
3.4 Singla (2008) examines that how financial management plays a crucial role
industrialists growth of banking.it is concerned with examining the profitability
position of the selected sixteen banks of banker index for a period of six years.
The study reveals that the profitability position was reasonable during the period
of study when compared with previous years. Strong capital position and balance
sheet place. Banks are in better position to deal with and absorb the economic
constant over a period of time.
3.5 Wahab (2001) has analyzed the performance of the commercial banks under
reforms. He also highlighted the major issues need to be considered for further
improvement. He concluded that reforms have produced favorable 42 effects on
performance of commercial banks in general but still there are some distortions
like low priority sector advances, low profitability etc. that needs to be reformed
again.

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3.6 Ram Mohan TT(2003), in his paper ‘long run performance of public & private
sector banks stock’ has made an attempt to compare the three categories of
banks- Public, Private & Foreign- using physical quantities of inputs & outputs, &
comparing the revenue maximization efficiency of banks during 1992-2000. The
findings show that PSBs perform significantly better than private sector banks but
not differently from foreign banks. The conclusion points to a convergence in
performance between public & private sector banks in the past-reform era, using
financial measures of performance.
3.7 Agarwal R (1983) in her study showed that the leaders were not rigid in their
approach. They choose their leadership styles in accordance with the needs of
specific situations. The leader’s concern was both for the task and for establishing
cordial relationships with his subordinates. The worker’s perception was identical
in this area and points to the suitability of the small sized banking units as the
model for future expansion.
3.8 Management of Exception(Passive) is basically an exchange relationship
where Leaders implicitly believe and trust their subordinates in doing their tasks
to a satisfactorily level of standard; however, they do not inspire their
subordinates to achieve beyond what is originally stated.
3.9 Management by Exception(Active) is a leadership behaviour that involves
actively taking action when irregularities happen in organizations. Transactional
leaders using active style are characterized by high energy level, and are
optimistic on organizational success high energy level, and are optimistic on
organizational success.
3.10 The focal point of study made by Das, in his book Banking Reforms in Lead
Bank Scheme, was a critical evaluation of the lead bank scheme in 35 the light of
banking sector reforms. Das in this book observed that high level of NPAs, large
number of un-remunerative branches, low productivity, overstaff & archaic
methods of operation have affected the profitability of public sector banks. He
sincerely felt that the whole banking sector in India is to be revolutionized to cope
with the changing dimensions of the satellite one world one world. Further, he
felt that the backward areas should be given more funds for investments in
priority sector & more people should be brought under its coverage & the
procedures of extending credit should be simplified & there should be least cost.

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4. Research Methodology
a) Problem Statement
Leadership style in banking sector
b) Objectives
1. To study relationship between managerial positions in the
hierarchy and their leadership style.
2. To study the personality traits of bank managers affect the
leadership styles followed.
3. To identify employees’ competency levels as enhanced by the
training and development implemented.
c) Hypothesis
1. Ho(Null Hypothesis): Female respondent does not influence
their perception as to leadership style in book.
2. H1(Alternative Hypothesis): Female respondent does influence
their perception as to leadership style in bank.
d) Sampling
1. Universal/Population:
Total target population is 25 respondents, target area Mumbai.
2. Sample size
Total sample=25
Sample were collected from the area of Mumbai
3. Sampling method
Method used for sampling is survey method(simple random
method)
e) Limitation
1. Inadequate banking facilities
2. Increased expenditure
3. Lowered efficiency & profits
4. Political & administrative interference

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5.Primary Data Collection
a) Analysis
 Gender
Figure1

From the finding we can summarize that 52% responses are of females and 48%
responses are of males.
 Your experience of working in the Bank?
Figure2

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From the findings we can summarize that 36% responses are of the experience
between 5-10 years.
 What factors do you look for in a manager?
Figure 3

From the finding we can summarize that 36% responses that employees looks the
factor for manager is approachability.
 Rate/Rank your boss on the following:
a) Risk management, b) Crisis management, c) Investment
option, d) management option, e) approachability, f)
profitability
Figure 4

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From the finding we can summarize that the employees rate/ranks to their bosses
is as per their willingness the most rate/rank is 3 for all the 6 options.
 According to you are female bosses more capable than male
bosses?
Figure 5

From the finding we summarize that 60% employees feel that female bosses are
more capable then male boss.

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b)Interpretation
 From the findings we can summarize that employees feel that
improvement in leadership style in banking sector will help in
more profitability.
 Form the survey we got to know that employees feel that female
bosses are more capable than male bosses in this sector.
 Even we got to know that employees look in a manager most
precisely approachability factor.
 In rating/ ranking the managers, employees have their different
opinions. They have provided different rates/ ranks to the given
options.
 There are female respondent more than male respondent in the
survey performed.
 Experience of employees between 5-10years is more in the banks
as compared to experience of above15 years.
 In short, leadership style is important in banking sector to gain
more profitability and better performance level.

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6.Hypothesis Verification
From the entire survey we can say that the we can accept alternate
hypothesis(H1) and reject null hypothesis(Ho).

7. Bibliography
 A study on style of banking sector.(n.d). Retrieved from
academia.edu:
http://www.academia.edu/5450812/A_STUDY_ON_CHOICE_OF_L
EADERSHIP_STYLE_IN_SELECT_BANKS_A_RESEARCH_STUDY_INTR
ODUCTION
 Banking in India. (n.d.). Retrieved from Wikipedia:
http://en.wikipedia.org/wiki/Banking_in_India
 Review of literature. (n.d). Retrieved from shodhganga:
http://shodhgang.inflibnet.ac.in/bitstream/10603/3712/10/10_ch
apter%203.pdf

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8.Annexures
Questionnaire format for employees
5. Gender :
 Male  Female
6. Experience of working in the banking sector:
 0-5  5-10  10-15  Above
years years years 15 years

7. Rate/ rank your boss on the following :

 Risk management:
 1  2  3  4  5
 Crisis management:
 1  2  3  4  5
 Investment option:
 1  2  3  4  5
 Management of branch:
 1  2  3  4  5
 Approachability:
 1  2  3  4  5
 Profitability:
 1  2  3  4  5
8. What factors do you look for in a manager?
 Risk  Approachabilit  Management  Job security
management y skill
9. According to you are female bosses more capable then male
bosses?
 Yes  No  Maybe

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