A Study

On

“The Impact of Leadership on

Employees’ Performance at
Indian Oil Corporation Pvt Ltd.”

Submitted in the partial fulfilment of the degree

Of the requirements of ARKA JAIN UNIVERSITY
for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
for the session 2018-21

Submitted By, Faculty Mentor,

Name: Shubhangi Verma Name: Abhishekh Upadhyay
Enrollment No: AJU/181157 Designation: Assistant Professor
 Certificate of Approval

The summer internship report of ‘Shubhangi Verma’ titled “A study on impact of leadership on employees’

performance is approved in quality and form and has been found fit for the partial fulfilment of the

requirements of ARKA Jain University for the award of degree of Bachelor of Administration.

Approval of the Program coordinator, Approval of the Dean

Department of BBA, School of Commerce and
School of Commerce and Management Management
ARKA JAIN UNIVERSITY   ARKA JAIN UNIVERSITY
 Certificate of Faculty Mentor

This is to certify that Shubhangi Verma, AJU/181157, a student of BBA (2018-21), has undertaken the
Summer Internship Project titled “Title of the Project”, for the partial fulfilment of the requirements of
ARKA JAIN University for the award of the degree of Bachelor of Business Administration, under my
supervision.
To the best of my knowledge, this project is the record of authentic work carried out during the academic
year (2018-21) and has not been submitted anywhere else for the award of any Certificate/ Degree/ Diploma
etc.

Signature
Mr. Abhishekh Upadhyay
Assistant Professor
ARKA JAIN UNIVERSITY
 Declaration

Shubhangi Verma, hereby declare that the project titled “A Study on the Impact of Leadership on Employees

Performance at Indian Oil Corporation Pvt. Ltd.”, has been carried out by me during my ‘SUMMER

INTERNSHIP’ and is hereby submitted in the partial fulfilment of the requirements of ARKA JAIN

University for the award of the degree of Bachelor of Business Administration.

To the best of my knowledge, the project undertaken, has been carried out by me and is my own

work. The contents of this report are original and this report has been submitted to ARKA JAIN University,

Jamshedpur and it has not been submitted elsewhere for the award of any Certificate/Diploma/degree etc.

Name of the Student Shubhangi Verma

University Enrollment No. AJU/181157
Course and Batch No. BBA 2018-21
 Acknowledgement

I take this opportunity to thank my faculty mentor Abhishekh Upadhyay, assistant professor, ARKA JAIN
University, for his valuable guidance, closely supervising this work over with helpful suggestions, which
helped me to complete the report properly and present.
More importantly, his valuable advice and support helped me to put some creative efforts on my project. He/
she has really been an inspiration and driving force for me and has constantly enriched my raw ideas with
his/ her vast experience and knowledge.
Specially, I would also like to give my special thanks to my parents whose blessings and love enabled me to
complete this work properly as well.

Name of the Student : Shubhangi Verma

University Enrolment No : AJU/181157
B.B.A. - 2018-21.
 Executive Summary

Leadership and the different associated styles have an immense impact on how employees perform and grow,

to lead positive organisational outcomes. The purpose of this project is to study the impact of leadership on

employees performance. A survey was conducted by administering questionnaires to 15 employees of

marketing domain at Indian Oil Corporation ltd, Gamharia, Jharkhand. A five-point Likert scale

questionnaire was used to determine the impact of leadership on employee performance. The study followed

the positivist paradigm which provided an objective reality against which claims were compared and truth

was ascertained. In this descriptive study, the goal has been to discover the pattern of cause and effect, which

can predict phenomenon. As a part of the descriptive research methodology, data collected has been

subjected to the thinking process in terms of ordered reasoning. A quantitative research approach has been

used to analyze the hypothesized relationships.

CONTENTS

Chapter number Chapter name Page no

1. Introduction 07

2. Review of literature 08

3. Project objectives 17

4. Research Methodology 18

5. Data analysis and interpretation 19

6. Findings and recommendations 40

7. Conclusion 44

8. Bibliography 45
 CHAPTER I. INTRODUCTION

Indian Oil Corporation Limited (IOCL), is an Indian public sector oil and gas company

headquartered in New Delhi. It is the largest commercial oil company in the country,

with a net profit of ₹19,106 crore (US$2.848 billion) for the financial the year 2016–

17. It is ranked 1st in Fortune India 500 list for year 2016 and 117th in Fortune Global

500 list of world's largest companies in the year 2019.As of 31 March 2017 IndianOil's

employee strength is 33,135, out of which 16,545 are in the officer cadre. It is India's

largest downstream oil company, with a workforce of more than 33,000 employees, a

turnover of ₹5,06,428 crore and a net profit of ₹21,346 crore in 2017–18. IndianOil's

business interests overlap the entire hydrocarbon value-chain, including refining,

pipeline transportation, marketing of petroleum products, exploration and production

of crude oil, natural gas and petrochemicals.

CHAPTER II. REVIEW OF LITERATURE

2.1 INTRODUCTION
Leadership is one of the major research topics in the corporate and academic sector and has made tremendous
progress in uncovering some of the enduring mysteries associated with leadership. In the coming decades, the
research on leadership will be most existing in the history of mankind. Over the years, researchers and
practitioners have developed a belief that leadership is an adaptable developmental process and with constant
development in the area of research it has seldom disagreed which was derived before it. These include
whether leaders are born or made? How have followers impacted the successful leaders? Can charismatic
leaders be the game changers by building and destroying societies and what will be the impact on leaders
through technology on the performance of group and individuals. Pro-aristocracy thinkers have postulated
that leadership depends on one's "blue blood" or genes. Monarchy takes an extreme view of the same idea,
and may prop up its assertions against the claims of mere aristocrats by invoking divine sanction (see the
divine right of kings). On the other hand, more democratically inclined theorists have pointed to examples of
meritocratic leaders, such as the Napoleonic marshals profiting from careers open to talent. In the
autocratic/paternalistic strain of thought, traditionalists recall the role of leadership of the Roman pater
families. Feminist thinking, on the other hand, may object to such models as patriarchal and posit against
them "emotionally attuned, responsive, and consensual empathetic guidance, which is sometimes associated
[by whom?] with matriarchies". "Comparable to the Roman tradition, the views of Confucianism on 'right
living' relate very much to the ideal of the (male) scholar-leader and his benevolent rule, buttressed by a
tradition of filial piety.” Prior to the 19th century, the concept of leadership had less relevance than today -
society expected and obtained traditional deference and obedience to lords, kings, master-craftsmen and
slave-masters. Historically, industrialization, opposition to the ancient regime and the phasing out of chattel
slavery meant that some newly-developing organizations (nation-state republics, commercial corporations)
evolved a need for a new paradigm with which to characterize elected politicians and job-granting employers
- thus the development and theorizing of the idea of "leadership". The functional relationship between leaders
and followers may remain, but acceptable (perhaps euphemistic) terminology has changed. From the 19th
century too, the elaboration of anarchist thought called the whole concept of leadership into question. One
response to this denial of elitism came with Leninism - Lenin (1870-1924) demanded an élite group of
disciplined cadres to act as the vanguard of a socialist revolution, bringing into existence the dictatorship of
the proletariat. Other historical views of leadership have addressed the seeming contrasts between secular and
religious leadership. The doctrines of Caesaro-papism have recurred and had their detractors over several
centuries. Christian thinking on leadership has often emphasized stewardship of divinely-provided resources
—human and material—and their deployment in accordance with a Divine plan. Compare servant leadership.
A review of the literature suggests that leadership was discussed way back in the Egyptian and Arabian
civilization. During the twentieth century, there has been substantial effort put in by researchers and
practitioners to classify different dimensions of leadership. Thus creating an impact among organizational
and social researchers to explore
and understand structured research on leadership to understand leadership theories on trait, behavior, styles,
and development of leaders. The history of leadership theory started with leadership traits, which makes the
difference to the functioning and approach of the leader towards his followers. This approach dominated
research up to the late 1940’s. But further researches have proven that traits do not always predict leadership
effectiveness, and so researchers have shifted to look at the behavior, style, and development of the leader
and its effectiveness. The type of leadership applied in functions, situations, contexts, culture, working
environment, new laws and regulations, information overload, organizational complexities and psycho-socio
developments remarkably impact the leadership concept thereby, making it commensurate to the changing
organizational dynamics. It means that leadership literature reveals that with a passage of time the theories
have been modified and refined by researchers and practitioners and none of the theories is irrelevant.

2.2 LEADERSHIP
The word leader comes from the Old English word ‘leaden’ meaning ‘to go before as a guide’. It was first
used in English in the 14th century to describe a person in charge, and then various other uses came about
later. Use of the word leader in reference to an opinion article in a British newspaper is from 1837. Leader is
an integral part of work and social life. In any situation, when people want to accomplish some goal, a leader
is required. People have to be guided to contribute to goals with zeal and confidence. Zeal is ardour
earnestness and intensity in the execution of work; confidence reflects experience and technical ability. The
ability to influence the behaviour of others is known as leadership. Leaders exploit human potential and
transform it into output. According to Koontz and Weihrich, Leadership is ,"influence, that is, the art or
process of influencing people so that they will strive willingly and enthusiastically towards the achievement
of group goals.” Thus, we can say that Leadership is the process by which a person influences others to
accomplish an objective and directs the organization to make it cohesive and coherent. It is the ability to
build self confidence and zeal among people and create an urge to be led. It inspires confidence and support
among group members to achieve the organizational goals. According to John C. Maxwell, “A leader is the
one who knows the way, goes the way, and shows the way.” A leader is the one who conducts, acts as a
guide to others in action or opinion, one who takes the lead in any enterprise or movement, one who is
‘followed' by disciples or adherents, the most eminent member of a profession, a person of eminent position
and influence. “Leadership is a matter of intelligence, trustworthiness, humaneness, courage, and discipline.
Reliance on intelligence alone results in rebelliousness. Exercise of humaneness alone results in weakness.
Fixation on trust results in folly. Dependence on the strength of courage results in violence. Excessive
discipline and sternness in command result in cruelty. When one has all five virtues together, each
appropriate to its function, then one can be a leader”( Jia Lin, in commentary on  Sun-Tzu, Art of War). The
effectiveness of leadership began at few of the centers in Iowa 1930, Michigan and Ohio states during 1940’s
and 1950’s. (Avolio, Bruce J., Reichard, Rebecca J., Hannah, Sean T., Walumbwa, Fred O., & Chan, Adrian.
2009).The first research studies concentrating on the leader were by Tannenbaum & Massarik in 1957
(Almohaimeed, Saleh,2014). Fisher (1985) & Chowdhury (2014) “Leadership is probably the most written
about the social phenomenon of all time” and express with grief that it is still not well understood due to its
complexity, defined by the number of variables associated with the concept of leadership, variables that
encompass the entire social process. Over the years, researchers on the leadership focused on personality and
traits of leaders, Situational and Contingencies factors that affected leadership and behavior styles,
transformational, charismatic and transactional leadership. At the end of the twentieth century, attempts were
made to look at various models of leadership to integrate and into a broader framework called “full range
theory of leadership” (Avolio, 1999& Avolio.et.al., 2009). Leadership is one of the terms that researchers
have attempted to understand or define it. Today leadership is the most studied and least understood topic,
since we assume that it’s a life’s phenomenon which is complex and mysterious (Almohaimeed, Saleh.
(2014). Since the early 20th century, leadership has constantly been redefined by a number of leadership
theories having been proposed based on different theoretical perspectives by various researchers. There is no
specific or single definition for leadership and it’s a complex as various literature and research studies on
leadership are varied and there is no definition that is accepted universally. Most definitions have a common
theme of directing a group towards a goal. Shastri, Shashi Mishra & Sinha (2010) & Keskes (2014) define
leadership as “the relationship between an individual and a group based on common interest and they behave
as per the directions of the leader”. According to Yukl (1994), “leadership is the process of influencing
followers”. Leaders play an important role in the attainment of organizational goals by creating a climate that
would influence employee’s attitudes, motivation, and behavior. Cole (2005) & Chowdhury (2014)define
leadership as a “dynamic process whereby one man influences other to contribute voluntarily to the
realization and attainment of the objectives towards the common goal”. Aspiration, values of the group that is
representing the essence of leadership is to help a group or an organization to attain sustainable development
and growth. Harper (2012): Malik, S. Z., Saleem, M., & Naeem. R (2016) Leadership brings in the required
change to influence learning and development of required skills, performance and creates a platform for
individual growth in an organization. Aldoory and Toth (2004) & Men, R. L. (2010) despite the extensive
research on the construct of leadership in the disciplines of management, business, and marketing, a scholarly
discourse on leadership is lacking in public relations. Leadership is all about taking ownership and
accountability aimed at achieving the end objective by applying the available resources and ensuring a
cohesive organization where an individual influences a group to achieve the common objective
(Amanchukwu, R. N., Stanley, J. G., & Ololube, N. P. (2015). It appears that leadership interventions do
have an impact on a variety of outcomes. Yet, leadership interventions appear to differ in terms of their
impact based on the theoretical focus of the leadership models.

2.3 LEADERSHIP THEORIES

Numerous explanations, classifications, and definitions about leadership theories, exist in the contemporary
literature. Many researchers and practitioners have developed a consensus that the progression of thinking
over the years has developed a belief that leadership is a flexible developmental process, with each new piece
of research building on and seldom completely disregarding that which was derived before it. In studying
leadership, scholars and theorists have developed many different theories and approaches in their attempts to
explain leadership. Leadership theories are schools of thought brought forward to explain how and why
certain individuals become leaders. The theories emphasize the traits and behaviors that individuals can adopt
to boost their own leadership abilities. Many leadership theories have evolved over the last 90 years. They
are as follows:-
A. Great-Man Theory
The effort toward explorations for common traits of leadership is protracted over centuries as most cultures
need heroes to define their successes and to justify their failures. In 1847, Thomas Carlyle stated in the best
interests of the heroes that “universal history, the history of what man has accomplished in this world, is at
the bottom of the history of the great men who have worked here”. Carlyle claimed in his “great man theory”
that leaders are born and that only those men who are endowed with heroic potentials could ever become the
leaders. He opined that the leaders are born with just the right traits and abilities for leading – charisma,
intellect, confidence, communication skills, and social skills. The theory suggests that the ability to lead is
inherent – that the best leaders are born, not made. It defines leaders as valiant, mythic, and ordained to rise
to leadership when the situation arises. The term “Great Man” was adopted at the time because leadership
was reserved for males, particularly in military leadership.

B. Trait Theory
The early theorists opined that born leaders were endowed with certain physical traits and personality
characteristics which distinguished them from non-leaders. Trait theories ignored the assumptions about
whether leadership traits were genetic or acquired. Jenkins identified two traits; emergent traits (those which
are heavily dependent upon heredity) as height, intelligence, attractiveness, and self-confidence and
effectiveness traits (based on experience or learning), including charisma, as fundamental component of
leadership. Max Weber termed charisma as “the greatest revolutionary force, capable of producing a
completely new orientation through followers and complete personal devotion to leaders they perceived as
endowed with almost magical supernatural, superhuman qualities and powers”. This initial focus on
intellectual, physical and personality traits that distinguished non-leaders from leaders portended a research
that maintained that only minor variances exist between followers and leaders. The failure in detecting the
traits which every single effective leader had in common, resulted in development of trait theory, as an
inaccessible component, falling into disfavor. In the late 1940s, scholars studied the traits of military and
non-military leaders respectively and exposed the significance of certain traits developing at certain times.

C. Contingency Theories
The theories of contingency recommends that no leadership style is precise as a stand-alone as the leadership
style used is reliant upon the factors such as the quality, situation of the followers or a number of other
variables. “According to this theory, there is no single right way to lead because the internal and external
dimensions of the environment require the leader to adapt to that particular situation”. In most cases, leaders
do not change only the dynamics and environment, employees within the organization change. In a common
sense, the theories of contingency are a category of behavioral theory that challenges that there is no one
finest way of leading/organizing and that the style of leadership that is operative in some circumstances may
not be effective in others. Contingency theorists assumed that the leader was the focus of leader-subordinate
relationship; situational theorists opined that the subordinates played a pivotal role in defining the
relationship. Though, the situational leadership stays to emphasis mostly upon the leader, it creates the
significance of the focus into group dynamic. “These studies of the relationships between groups and their
leaders have led to some of our modern theories of group dynamics and leadership”. The theory of situational
leadership proposes that style of leadership should be accorded with the maturity of the subordinates (Bass,
1997). “The situational leadership model, first introduced in 1969, theorized that there was no unsurpassed
way to lead and those leaders, to be effective, must be able to adapt to the situation and transform their
leadership style between task-oriented and relationship-oriented.” Hence, Contingency theories of leadership
focus on particular variables related to the environment that might determine which particular style of
leadership is best suited for the situation. According to this theory, no leadership style is best in all situations.
Leadership researchers White and Hodgson suggest that truly effective leadership is not just about the
qualities of the leader, it is about striking the right balance between behaviors, needs, and context.Good
leaders are able to assess the needs of their followers, take stock of the situation, and then adjust their
behaviors accordingly. Success depends on a number of variables including the leadership style, qualities of
the followers, and aspects of the situation.

D. Situational theories
The Situational Theory is similar to the Contingency Theory as it also proposes that no one leadership style
supersedes others. As its name suggests, the theory implies that leadership depends on the situation at hand.
Put simply, leaders should always correspond their leadership to the respective situation by assessing certain
variables such as the type of task, nature of followers, and more. As proposed by US professor Paul Hersey
and leadership guru Ken Blanchard, the situational theory blends two key elements: the leadership style and
the followers’ maturity levels. Hersey and Blanchard classified maturity into four different degrees:
M1 – Team members do not possess the motivation or tactical skills to complete necessary jobs.
M2 – Team members are willing and ambitious to achieve something, but they lack the necessary ability.
M3 – Team members possess the skills and capacity to accomplish tasks, but they’re not willing to take
accountability.
M4 – Team members possess all the right talents and are motivated to complete projects.
According to situational theory, a leader exercises a particular form of leadership based on the maturity level
of his or her team. Situational theories propose that leaders choose the best course of action based upon
situational variables.

E. Behavioral Theories
Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Consider it
the flip-side of the Great Man theories. Rooted in behaviorism, this leadership theory focuses on the actions
of leaders, not on mental qualities or internal states. According to this theory, people can learn to become
leaders through teaching and observation. Behavioral theories of leadership focus heavily on the actions of a
leader—this theory suggests that the best predictor of leadership success is viewing how a leader acts. Action
rather than qualities are the focal points of behavioral learning theory. Patterns of behavior are observed and
categorized as “styles of leadership” in this theory. Some of the styles of leadership include task-oriented
leaders, people-oriented leaders, country club leaders, status-quo leaders, dictatorial leaders, and more. At the
end of the day, the actions and actual behaviors of a leader are what defines success in this theory. Feidler &
House (1994) identified two additional leadership styles focusing effectiveness of the leadership. These
researchers opined that consideration (concern for people and relationship behaviors) and commencing
structure (concern for production and task behaviors) were very vital variables. The consideration is referred
to the amount of confidence and rapport, a leader engenders in his subordinates. Whereas, initiating structure,
on the other hand, reflects the extent, to which the leader structures, directs and defines his/her own and the
subordinates‟ roles as they have the participatory role toward organizational performance, profit and
accomplishment of the mission. Different researchers proposed that three types of leaders, they were;
autocratic, democratic and laissez-faire. Without involving subordinates, the autocratic leader makes
decisions, laissez-faire leader lets subordinates make the decision and hence takes no real leadership role
other than assuming the position and the democratic leader accesses his subordinates then takes his decision.
“He further assumed that all leaders could fit into one of these three categories”.

F. Process leadership theory

Additional leadership theories with a process focus include servant leadership, leaming organizations,
principal centered leadership and charismatic leadership, with others emerging every year. Greenleaf
introduced servant leadership in the early 1970s. A resurgence of the discussion of servant leadership was
noted in the early 1990s. Servant leaders were encouraged to be focused to the anxieties of the followers and
the leader should sympathize with them take-care of and nurture them. The leadership was imparted on a
person who was by nature a servant.“The servant leader focuses on the needs of the follower and helps them
to become more autonomous freer and knowledgeable”. The servant leader is also more concerned with the
“have-nots” and recognizes them as equal (Greenleaf, 1996). The leaders in leading organizations are to be
the steward (servant) of the vision of the organization and not a servant of the people within the organization.
Leaders in learning organizations clarify and nurture the vision and consider it to be greater than one-self.
The leader aligns themselves or their vision with others in the organization or community at large. These
process leadership theories and others that have emerged often suggest that the work of leaders is to
contribute to the well-being of others with a focus on some form of social responsibility. There appears to be
a clear evolution in the study of leadership. Leadership theory has moved from birth traits and rights, to
acquired traits and styles, to situational and relationship types of leadership, to the function of groups and
group processes and, currently, to the interaction of the group members with an emphasis on personal and
organizational function of groups and group processes and, currently, to the interaction of the group members
with an emphasis on personal and organizational moral improvements (Yammarino, 1999).
D. Transactional theory
Transactional leadership focuses on results, conforms to the existing structure of an organization and
measures success according to that organization's system of rewards and penalties. Transactional leaders
have formal authority and positions of responsibility in an organization. This type of leader is responsible for
maintaining routine by managing individual performance and facilitating group performance. Max Weber, a
20th-century German sociologist, made an extensive study of leadership styles and divided them into three
categories: traditional, charismatic and rational-legal, or bureaucratic. In 1947, Weber was the first to
describe rational-legal leadership — the style that would come to be known as transactional leadership — as
"the exercise of control on the basis of knowledge. “Transactional leadership theory is based on the idea that
managers give employees something they want in exchange for getting something they want. It posits that
workers are not self-motivated and require structure, instruction and monitoring in order to complete tasks
correctly and on time. Transactional leaders sets the criteria for their workers according to previously defined
requirements. Performance reviews are the most common way to judge employee performance.
Transactional, or managerial, leaders work best with employees who know their jobs and are motivated by
the reward-penalty system. The status quo of an organization is maintained through transactional leadership.
The transactional leadership style was widely used after World War II in the United States. This was a time
when the government concentrated on rebuilding and required a high level of structure to maintain national
stability. Political scientist James McGregor Burns was one of the most prominent authors to advance
Weber's theories. In his 1978 book "Leadership," Burns argued that both transactional and transformational
leaders must be moral and have a higher purpose. In Burns's model, transactional leaders espouse honesty,
fairness, responsibility, and honoring commitments.

E. Transformational theory

Transformational leadership distinguishes itself from the rest of the previous and contemporary theories, on
the basis of its alignment to a greater good as it entails involvement of the followers in processes or activities
related to personal factor towards the organization and a course that will yield certain superior social
dividend. The transformational leaders raise the motivation and morality of both the follower and the leader
(House & Shamir, 1993). It is considered that the transformational leaders “engage in interactions with
followers based on common values, beliefs and goals”. This impacts the performance leading to the
attainment of goal. As per Bass, transformational leader, “attempts to induce followers to reorder their needs
by transcending self-interests and strive for higher order needs". This theory conform the Maslow (1954)
higher order needs theory. Transformational leadership is a course that changes and approach targets on
beliefs, values and attitudes that enlighten leaders‟ practices and the capacity to lead change. The literature
suggests that followers and leaders set aside personal interests for the benefit of the group. The leader is then
asked to focus on followers’ needs and input in order to transform everyone into a leader by empowering and
motivating them (House & Aditya, 1997). Emphasis from the previously defined leadership theories, the
ethical extents of leadership further differentiates the transformational leadership. The transformational
leaders are considered by their capability to identify the need for change, gain the agreement and
commitment of others, create a vision that guides change and embed the change (MacGregor Bums, 2003).
These types of leaders treat subordinates individually and pursue to develop their consciousness, morals and
skills by providing significance to their work and challenge. These leaders produce an appearance of
convincing and encouraged vision of the future. They are “visionary leaders who seek to appeal to their
followers‟ better nature and move them toward higher and more universal needs and purposes” (MacGregor
Bums, 2003).

2.4 LEADERSHIP STYLES

Leadership styles are the behavioral patterns that a leader adopts to influence the behavior of his followers,
i.e. the way he gives directions to his subordinates and motivates them to accomplish the given objectives. It
is a leaders method of providing direction, implementing plans, and motivating people. Various authors have
proposed identifying many different leadership styles as exhibited by leaders in the political, business or
other fields. Studies on leadership style are conducted in the military field, expressing an approach that
stresses a holistic view of leadership, including how a leader's physical presence determines how others
perceive that leader. The factors of physical presence in this context include military bearing, physical
fitness, confidence, and resilience. The leader's intellectual capacity helps to conceptualize solutions and to
acquire knowledge to do the job. A leader's conceptual abilities apply agility, judgment, innovation,
interpersonal tact, and domain knowledge. Domain knowledge encompasses tactical and technical knowledge
as well as cultural and geopolitical awareness. Daniel Goleman (2000) in his article "Leadership that Gets
Results" talks about six styles of leadership.

Autocratic leadership style

The autocratic leadership style particularly emphasises the distinction between authoritarian leaders and
their followers. These types of leaders make sure to create only a distinct professional relationship. They
regard direct supervision as fundamental in maintaining a successful environment and
followership. Authoritarian leadership styles often follow the vision of those that are in control, and may not
necessarily be compatible with those that are being led. Authoritarian leaders focus on efficiency, potentially
seeing other styles, such as a democratic style, as a hindrance on progress. Examples of authoritarian
leadership: a police officer directing traffic, a teacher ordering a student to do their assignment, and a
supervisor instructing a subordinate to clean a workstation. All of these positions require a distinct set of
characteristics that give the leader the position to get things in order or to get a point across. Authoritarian
traits include: setting goals individually, engaging primarily in one-way and downward communication,
controlling discussion with followers, and dominating interactions. Several studies have confirmed a
relationship between bullying, on the one hand, and an autocratic leadership and an authoritarian way of
settling conflicts or dealing with disagreements, on the other. An authoritarian style of leadership may create
a climate of fear, leaving little or no room for dialogue, and where subordinates may regard complaining as
futile. As such, authoritarian styles have sometimes been associated with reduced group-member satisfaction
relative to more democratic leadership styles.

Democratic leadership style

The democratic leadership style consists of the leader sharing the decision-making abilities with group

members by promoting the interests of the group members and by practicing social equality. The boundaries
of democratic participation tend to be circumscribed by the organization or the group needs and the
instrumental value of people's attributes (skills, attitudes, etc.). The democratic style encompasses the notion
that everyone, by virtue of their human status, should play a part in the group's decisions. However, the
democratic style of leadership still requires guidance and control by a specific leader. The democratic style
demands the leader to make decisions on who should be called upon within the group and who is given the
right to participate in, make, and vote on decisions. Research has found that this leadership style is one of the
most effective and creates higher productivity, better contributions from group members, and increased group
morale. Democratic leadership can lead to better ideas and more creative solutions to problems because
group members are encouraged to share their thoughts and ideas. While democratic leadership is one of the
most effective leadership styles, it does have some potential downsides. In situations where roles are unclear
or time is of the essence, democratic leadership can lead to communication failures and uncompleted
projects. Democratic leadership works best in situations where group members are skilled and eager to share
their knowledge. It is also important to have plenty of time to allow people to contribute, develop a plan, and
then vote on the best course of action.

Laissez-faire leadership style

The laissez-faire leadership style is where all the rights and power to make decisions is fully given to the
followers. This was first described by Lewin, Lippitt, and White in 1939, along with the autocratic leadership
and the democratic leadership styles. Laissez-faire leaders allow followers to have complete freedom to make
decisions concerning the completion of their work. It allows followers a self-rule, while at the same time
offering guidance and support when requested. The laissez-faire leader using guided freedom provides the
followers with all materials necessary to accomplish their goals, but does not directly participate in decision
making unless the followers request their assistance. This leadership style has been associated with lower
productivity than both autocratic and democratic styles of leadership and with lower group member
satisfaction than democratic leadership. Some researchers have suggested that laissez-faire leadership can
actually be considered non-leadership or leadership avoidance.

Transactional leadership style

Transactional leaders focus their leadership on motivating followers through a system of rewards and
punishments. There are two factors which form the basis for this system, Contingent Reward and
management-by-exception. Contingent reward provides rewards, materialistic or psychological, for effort and
recognizes good performance Management-by-exception allows the leader to maintain the status quo. The
leader intervenes when subordinates do not meet acceptable performance levels and initiates corrective action
to improve performance. Management by exception helps reduce the workload of managers being that they
are only called-in when workers deviate from course. This type of leader identifies the needs of their
followers and gives rewards to satisfy those needs in exchange for a certain level of performance.
Transactional leaders focus on increasing the efficiency of established routines and procedures. They are
more concerned with following existing rules than with making changes to the organization. A transactional
leader establishes and standardizes practices that will help the organization reach: maturity, goal-setting,
efficiency of operations and increasing productivity. Transactional leadership presents a form of strategic
leadership that is important for the organization's development. Transactional leadership is essential for team
innovativeness.
Transformational leadership style

Advocates of transformational leadership portray the transformational leader as a type of person not limited
by followers' perception. The main objective is to work to change or transform their
followers' needs and redirect their thinking. Leaders who follow the transformation style of leading,
challenge and inspire their followers with a sense of purpose and excitement. Transformational leaders also
create a vision of what they aspire to be, and communicate this idea to others (their followers). Schultz and
Schultz identify three characteristics of a transformational leader:

-Charismatic leadership has a broad field of knowledge, has a self-promoting personality, high/great energy
level, and willing to take risk and use irregular strategies in order to stimulate their followers to think
independently.

-Individualized consideration.
-Intellectual stimulation
CHAPTER III. PROJECT OBJECTIVES

“To study the impact of leadership on employees performance at Indian Oil

Corporation pvt ltd.”
CHAPTER IV. RESEARCH METHODOLOGY

This chapter primarily outlines the overall research methodology. Detailed development of hypotheses,
sampling procedure used for this survey and sources of data will be described. The validly to the
methodology is supported by a survey of 15 employees of Indian Oil Corporation pvt ltd, that is designed to
replicate the approach, and confirm the findings.

Research Design
Data collection: Two methods were used to collect the data, namely primary and secondary data. Primary
data for this survey was obtained by means of a survey questionnaire. Quantitative approach was used in the
survey questionnaire. Secondary data collection was used to gather information through findings by past
researchers using the qualitative approach. Journal sources and books related to this topic provides
exploratory information that is used for this research.
Sample area: Indian Oil Corporation pvt Ltd, gamharia, Jharkhand.

Sample Design
 Sample unit: Marketing.
 Sample size: 15 employees.
 Sample area: Indian Oil Corporation pvt Ltd, gamharia, Jharkhand.
 Sampling technique: Simple random sampling.

Methodology used: Surveys.

Problem Statement
The employees does not trust their leader.

Hypotheses
 H0 Even if the leader will take full responsibility for the consequences of his actions,
the employees will not trust him.
 H1 If the leader will take full responsibility for the consequences of his actions then
the employees will trust him.
CHAPTER V. DATA ANALYSIS AND INTERPRETATION

The present chapter contains analysis and Interpretation of data. A Questionnaire

was distributed among 15 employees of Indian Oil Corporation ltd, gamharia
(Marketing Domain).
Your leader guides, counsels and coaches you whenever required.

Total no of employees-15

Opinions Number of employees

Strongly Agree 2
Agree 9
Neutral 2
Disagree 2
Strongly Disagree 0

Interpretation-
13.3% of the employees strongly agrees that their leaders guides, counsels and coaches them whenever
required. Where as, 60% of the employees agrees, 13.3% is neutral and 13.3% of the employees disagrees
with the same.

You are motivated at work.

Total number of employees: 15

 Opinion Number of employees

Strongly Agree 3
Agree 4
Neutral 4
Disagree 4
Strongly Disagree 0

Interpretation:
20% of the employees strongly agrees that they are motivated at work. Whereas, 26.7% are neutral, 26.7%
disagrees and 26.7% strongly disagrees with the same.

You are resistant towards organizational change.

 Total number of employees: 15

Opinion Number of employees

Strongly Agree 0
Agree 2
Neutral 2
Disagree 6
Strongly disagree 5

Interpretation: 13.3% of the employees agrees that they are resistant towards organizational change.
Whereas, 13.3% are neutral, 40% disagrees and 33.3% of the employees strongly disagrees with the same.

You trust your leader.

 Total number of employees: 15

Opinion Number of employees

Strongly Agree 2
Agree 3
Neutral 4
Disagree 5
Strongly Disagree 1

Interpretation: 13.3% of the employees strongly agrees that they trust their leader. 20% of the employees
agrees, 26.7% are neutral, 33.3% disagrees and 6.7% of the employees strongly disagrees with the same.

You like to work in a team.

 Total number of employees:15

Opinion Number of employees

Strongly Agree 2
Agree 4
Neutral 4
Disagree 4
Strongly Disagree 1

Interpretation: 13.3% of the employees strongly agrees that they like to work in a team. Whereas, 26.7%
agrees, 26.7% are neutral, 26.7% disagrees and 13.3% of the employees strongly disagree with the same.

Your leader manages to solve individual and group conflicts.

 Total number of employees: 15

Opinion Number of employees

Strongly Agree 1
Agree 4
Neutral 4
Disagree 5
Strongly Disagree 1

Interpretation: 6.7% of the employees strongly agrees that the leader manages to resolve individual and
group conflicts, 26.7% agrees, 26.7% are neutral, 33.3% disagrees and 6.7% of the employees strongly
disagrees with the same.
In complex situations, your leader allows you to work on problems on
your own.

Total number of employees: 15

Opinion Number of employees
Strongly Agree 1
Agree 7
Neutral 2
Disagree 4
Strongly Disagree 1

Interpretation: 6.7% of the employees strongly agrees that in complex situations, their leader allows them
to work on problems on their own. Whereas, 46.7% agrees, 13.3% are neutral, 26.7% disagrees and 6.7% of
the employees strongly disagrees with the same.
Your leader provides you with the feedback on your performance and
guides you continuously to improve your skills.
Total number of employees:15
Opinion Number of employees
Strongly Agree 0
Agree 7
Neutral 5
Disagree 3
Strongly Disagree 0

Interpretation: 46.7% of the employees agrees that their leader provides them with the feedback on their
performance and guides them continuously to improve their skills. Whereas, 33.3% are neutral and 20% of
the employees disagrees with the same.
Your leader takes full responsibility for the consequences of his
actions.
Total number of employees:15
Opinion Number of employees
Strongly Agree 3
Agree 5
Neutral 3
Disagree 4
Strongly Disagree 0
Interpretation: 20% of the employees strongly agrees that their leader takes full responsibility for the
consequences of his actions. Where as, 33.3% agrees, 20% are neutral and 26.7% of the employees
disagrees with same.

Your leader allows you and your peers to be a part of the decision making
process.
Total number of employees:15
Opinion Number of employees
Strongly Agree 5
Agree 6
Neutral 2
Disagree 2
Strongly Disagree 0

Interpretation: 33.3% of the employees strongly agrees that their leader allows them to be a part of the
decision making process. Whereas, 40% agrees, 13.3% are neutral and 13.3% of the employees disagrees
with same.

Significance Testing
In order to check the level of significance between the hypothesis framed and the actual findings, I used
Pearson correlation coefficient. 33.3% of the employees agrees that their leaders take full responsibility for
the consequences of his actions. Whereas, 33.3% of the employees disagrees that they trust their leader.
Although, the coefficient of correlation between the two is 0.67612. Thus, we can say that they have a
moderate positive correlation. Hence, H1 is accepted.
CHAPTER VI. FINDINGS AND RECOMMENDATIONS

6.1 FINDINGS
 There is an inverse relationship between involvement of the employees in the decision making
process and resistance towards organisational change: While I was doing the analysis, I came
across some really amazing facts. One of them is that there is an inverse relationship between the
involvement of the employees in the decision making process and resistance towards organisational
change. The coefficient of correlation between them is -0.70833. Since the value is negative, it
clearly states that there is an inverse relationship between the two. Promoting decision-making
ability of employees, enhances their morale and knowledge of environmental variables. Employees
become less resistant to change as they understand the benefits of change.
 The leader is giving psychological support to their employees: Since 13.3% of the employees
strongly agrees and 60% of the employees agrees that their leader is guiding, counselling and
coaching them whenever required, we can say that the leaders are making their employees realise
their capabilities and is guiding, counselling and coaching them whenever necessary. This promotes
morale of employees and healthy interaction amongst members of the group. This also develops
disciplined thinking in the organisation, productivity, growth and stability.

 The employees are not resistant towards organizational change: 13.3% of the employees agrees
that they are resistant towards organizational change. Whereas, 13.3% are neutral, 40% disagrees and
33.3% of the employees strongly disagrees with the same.

 The employees does not trust the leader: 13.3% of the employees strongly agrees that they trust
their leader. 20% of the employees agrees, 26.7% are neutral, 33.3% disagrees and 6.7% of the
employees strongly disagrees with the same.

 The leader failed to build team spirit amongst its employees: 13.3% of the employees strongly
agrees that they like to work in a team. Whereas, 26.7% agrees, 26.7% are neutral, 26.7% disagrees
and 13.3% of the employees strongly disagrees with the same.

 In complex situations, the leader allows its employees to work on problems on their own: 6.7%
of the employees strongly agrees that in complex situations, their leader allows them to work on
problems on their own. Whereas, 46.7% agrees, 13.3% are neutral, 26.7% disagrees and 6.7% of the
employees strongly disagrees with the same.

 The leader gives feedback to the employees and guides them continuously which helps them to
improve their skills: 46.7% of the employees agrees that their leader provides them with the
feedback on their performance and guides them continuously to improve their skills. Whereas, 33.3%
are neutral and 20% of the employees disagrees with the same.

 The leader takes full responsibility for the consequences of his actions: 20% of the employees
strongly agrees that their leader takes full responsibility for the consequences of his actions. Where
as, 33.3% agrees, 20% are neutral and 26.7% of the employees disagrees with same.

 The leader allows its employees to be a part of the decision making process: 33.3% of the
employees strongly agrees that their leader allows them to be a part of the decision making process.
Whereas, 40% agrees, 13.3% are neutral and 13.3% of the employees disagrees with same.
6.2 RECOMMENDATIONS

 The leader should build team spirit-6.7% of the employees strongly disagrees that they like to work
in team as well as 26.7% disagrees with the same. Therefore, the leader should develop team spirit
amongst followers to work collectively and coordinate their activities and organizational activities.

 The leaders should maintain discipline- 6.7% of the employees strongly disagrees and 33.3% of the
employees disagrees with the fact that their leader manages to resolve individual and group conflicts.
Therefore, the leaders should develop understanding amongst followers and resolve individual and
group conflicts and harmonise individual goals with organisational goals.

 The leader should try to build trust with their employees- Since 6.7% of the employees strongly
disagrees and 33.3% of the employees disagrees that they trust their leader, the leader should
understand what employees need to know and communicate facts while being considerate of their
effort and sensitive to their feelings. Showing support and understanding for your team members,
even when mistakes are made will increase their commitment to team goals. Communication will
improve and ideas will flow more freely which in turn will increase creativity and productivity. 
CHAPTER VII. CONCLUSION

Leadership has crucial role in the success of the organizational potential and performance. It is viewed as the

process of guiding, teaching motivating and directing the activities of others towards attaining goal. The data

so collected has been analysed in different chapters and conclusions have been drawn. Majority of the study

suggests that the impact of leadership on employees performance at Indian Oil Corporation pvt ltd was

positive. However, the leader should create an impression of trustworthiness as Employees that trust their

leader work effectively and have a high level of commitment. The leader should always keep their employees

motivated and encourage team work. Motivated employees can lead to increased productivity and allow an

organisation to achieve higher levels of output.

BIBLIOGRAPHY

 Leadership and management development, Author- Kavin Dalton.

 Principles of management, Author- Neeru Vasishth and Vibhuti Vasishth

 https://www.investopedia.com/terms/l/leadership.asp

 https://www.leadershipissues.org/the-root-of-

leadership/#:~:text=Leadership%20is%20as%20old%20as,the

%20position%20of%20a%20leader).&text=Lead%20or%20leader

%20does%20not%20have%20a%20Latin%20or%20Greek

%20derivation

 https://en.m.wikipedia.org/wiki/Leadership

 https://www.macmillandictionaryblog.com/leader