Leadership, motivation, and peak performance

CNERGYICO

Group members:
Azmat Ullah baig
Ali Hassan
Huzaifa alia bid
Usman zafar

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Table of Contents
Acknowledgement...........................................................................................................................1
Abstract............................................................................................................................................1
Introduction.....................................................................................................................................2
Background......................................................................................................................................3
Literature review.............................................................................................................................3
Influence of leadership on job satisfaction.................................................................................3
Influence of leadership on motivation........................................................................................4
Influence of leadership on employees’ performance.................................................................4
Employee Motivation..................................................................................................................5
Extrinsic motivation.....................................................................................................................5
intrinsic motivation......................................................................................................................5
Theories on Employee Motivation..............................................................................................6
Maslow hierarchy of need...........................................................................................................6
• Physiological needs...........................................................................................................7
• Security or Safety Needs:..................................................................................................7
• Social Needs:.....................................................................................................................7
• Esteem needs:...................................................................................................................7
• Self- Fulfilment (Self-actualization....................................................................................7
Conclusion........................................................................................................................................7
Reference.........................................................................................................................................9
Acknowledgement
This project would not have been possible without the exceptional support of our teacher,
SARA SANAULLAH. Her enthusiasm, knowledge and thorough attention to detail have been an
inspiration. We would like to express gratitude to or teacher SARA SANAULLAH who gave us the
excellent opportunity to do this wonderful project on the topic (Leadership, motivation, and
peak performance), which also helped us in doing a lot of Research and we came to know about
so many new things I am thankful to her.

In addition to, we would also like to thank individuals and cnergyico for their support and
guidance throughout our project We could not have imagined having a better guidance in our
project and the opportunity to learn from them.

Finally, I would also like to thank my group members who helped me a lot in finalizing this
project within the limited period.

Abstract
This study investigates the relationship between leadership style and the motivational needs of
the follower. The research examines the leader-follower relationship to review the
compatibility of leadership style with the motivational needs of the followers. Compatible
relationships create individual peak performance and collective organizational reciprocity,
resulting in an organization that functions at optimal levels of organizational effectiveness.
Performance in an organization is influenced by compatible relationships between the
leadership’s style and the motivational needs of follower’s Effective employee motivation needs
leaders who are able to formulate visions of incentive programs and who have positive
influence on employees. Leaders are able to analyze the environment regarding the level of
motivation, barriers to motivation and are able to develop an effective motivation system. A
motivation system refers to a system illustrating basic motives, motivation preferences,
intentions and priorities, incentives being applied and their effects. When managing work
performance, it is important to bear in mind that the primary purpose of all businesses is to
maximize profits. There are two basic ways of making a profit, related both to input and output.
The study addresses, in particular employee motivation. Employee work performance is
connected to job-related competence, objective working conditions in an organization and
employee motivation. The purpose of this project is to findings highlighted areas that
cnergyico’s has been used in order to enhance employee performance. Healthy and positive
working environment have been found to enhance performance. The findings stated that how
motivation and leadership can encourage employee’s productivity and relax their mind. What
necessary actions have been taken to ensure employees will be constantly motivated at the
workplace.

Introduction
Cnergyico is Pakistan’s leading petroleum company engaged in the businesses of oil refining,
petroleum marketing, and petroleum logistics. Headquartered in Karachi, we are serving our
mission to fulfill Pakistan's energy demand

Cnergyico has Pakistan's largest refining capacity of 155,000 barrels a day, converting crude oil
into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy
Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed
Diesel and Furnace Oil.

We take pride in having the largest capacity crude oil storage tanks in the country. Our
petroleum distribution network supports movement of petroleum products and provide greater
economies of scale.Our marketing network supports retail outlets in more than 80 cities all over
Pakistan and is an emerging leader in oil marketing sector of our economy.
Our diverse and highly skilled workforce consists of approximately 800 dedicated employees
shared among Cnergyico companies.

At Cnergyico, people, their skills, and ideas are fundamental to the company’s ability to prosper
and grow. Attracting the right people, maximizing their contribution to the business, and
rewarding their performance are all vital to the company’s success. Cnergyico is committed in
investing in human capital, offer competitive employment terms and provide safe and
congenial working environment where people enjoy what they do and are motivated to
achieve, while supporting the diverse needs of the individual. Cnergyico provides a structured
framework for managing a culture of sustainable performance and accountability. The
remuneration strategy incorporates a mix of fixed and variable remuneration that is flexible and
market-competitive
Background
The extent to which employees are motivated in their work depends on how well those
employees are able to provide output in their job. Motivation is expected to have a positive
effect on quality performance. Employees who are characterized by a prominent level of
motivation show a higher work and life satisfaction. Having a prominent level of motivation is
therefore in itself valuable for employees and a decrease in motivation might affect employees
negatively. The motivation leads to prominent level of initiative and creativity from the
employee and where monitoring is difficult, motivation is therefore extremely important for
ensuring high quality performance.

Employee motivation, however, is a common concern for many managers. Unmotivated

employees typically spend little or no effort completing required work, often do the bare
minimum without a desire to deliver quality outcomes and regularly avoid workplace functions
or gatherings. Without any spark of creativity, they are less motivated to perform. The tricky
part of motivation is that every employee has a different trigger that will get them inspired and
employers need to work hard to identify ways to motivate each person based on their personal
wants and needs

Literature review

Influence of leadership on job satisfaction

The importance of leadership to job satisfaction assessment was based on the opinions
expressed by who contended that job satisfaction is always related to the attitude of workers
on the job. The attitude took place in cognitive and behavioral aspects. The cognitive aspect of
job satisfaction is the trust of workers on the job and the job situation. On the job worker
behavior tendency is observed when the job is done, when employees continue to survive in
his position, or when the employee works regularly and is disciplined.

Results of evaluating the effect of leadership on job satisfaction can be evidenced by the
value of the path coefficient estimate which showed a positive and statistically significant
impact., Shahab and Nisa (2014), and Mihalcea (2013) who stated that leadership has a
significant effect on job satisfaction.
Influence of leadership on motivation

Motivation in this research is reflected through employees’ feedback, task orientation,

utilization of time, trusting the leader, and awards. Winandi (2002) and Robbins (1998) stated
that motivation is self-motivation that drives individual employee to achieve organizational
goals. As for leadership, it was referred to, in the field, based on several indicators including
direction, relationships, influence, control and exemplary. Some of the respondents have
mentioned both concepts

(Motivation and leadership) from the application point of view. Results assessed by
respondents showed that leadership is described most by one indicator namely direction which
had the highest average scores followed by other indicators like influence, exemplary, control
and relationships. However, based on the results of evaluating the value of the loading
estimate, the biggest contribution to leadership is the indicator of influence.

Influence of leadership on employees’ performance

Employees’ performance review in this study focuses on the level of achievement of the
totality of the work. Reported literature forms the basis for assessing and measuring the
performance concept in this research. For example, Moeheriono (2009) defined performance
as an overview of the level of achievement of the implementation of a program of activities or
policies in realizing the goals, objectives, vision, and mission of the organization that poured
through strategic planning of an organization. Mangkunagara (2002) suggested that
employee’s performance can be interpreted as an employees’ work performance which results
in quality and quantity of work achieved by a workforce in performing their duties in
accordance with the responsibilities assigned to him. Hypothesis testing results showed that
leadership effects on performance can be evidenced by the estimated value of the path
coefficient which showed a positive and statistically significant impact. That is, the better the
model of leadership applied, the performance of employees will increase.
Employee Motivation

As per the study of Mikkelsen et al. (2017), “the motivation concept referred to internal factors
that impel action and to external factors that can function as inducements to action”. They
further suggested that direction, intensity, and duration are the three-action influenced by
motivation. Thus, understanding different employees’ motivational style will help to explain and
predict the affect, cognition, and behavior patterns that are displayed by different employee
(Hsiung & Tsai, 2017). Kanfer et al. (2017) argued that some simple words like goals, incentives,
needs, aims, wishes, wants or desires are included in motivation. According to Cameron and
Green (2019) the inner force which gives energy to the individuals for the accomplishment of
organizational and personal goals is known as motivation. Hence, work motivation has been
referred as the process that contributes to the initiation and maintaining goal-directed
performance (Larsson et al., 2018). The importance of achievement motivation in work is seen
as focusing on intrinsic motivation, the level of the “motivational state in which individuals is
attracted to and energized by the task itself might be obtained (Beal, 2017). This was supported
by Jacoby (2018) who suggested that people can be motivated by the nature of work itself.
According to the Cameron and Green (2019) the acquisition of abilities and skills of people can
be affected by the motivation. Thus, through proficiency and performance goals, motivation will
prompt a focus on self rather than on task (Durodolu, 2016).

Extrinsic motivation
The people who have extrinsic motivation are the one who never interested in doing any odd
jobs, but they get ready just for the sake of getting some extra incentives such as wages or
promotion, some praises, and appreciations (Larsson et al., 2018). Extrinsic motivation is
classified into two categories: compensation and punishment. For compensation, it can be salary,
bonuses, goods, money, and an appraisal. Punishment might include fines, blame, judgment, and
many others. This side of extrinsic motivation is usually mistaken to be negative, but it has quite
a lot of positivity. Either way, extrinsic motivation comes from someone or something else
outside of the person being motivated.

intrinsic motivation
the people with intrinsic motivation are internally motivated or are self-motivated people, and
for the performing their job well they just do not need extra praise wage or any other rewards.
They actually enjoy doing the challenging jobs and complete their targets efficiently (Jacoby,
2018). Examples include exploring opportunities for personal development for the pleasure of
being competent in a task or setting the standards to become a role model or mentor.
Whatever you take on, you do it for personal accomplishment and gratification.

Though the best form of motivation is intrinsic one because it has long term and strong effects
on employees because according to the (Vanek, 2017) the intrinsic motivation cannot be
imposed by the management on employee as it is inherited in employees. According to another
study of Froese et al. (2016), the turnover intention of the employees is also depending on
effects of individual background. Through the motivation the employee turnover can be
decreased.

Theories on Employee Motivation

Many theories have been propounded to examine the factors that contribute to employee
motivation in organizations. These theories are important because they provide explanations to
the reasons why employees are motivated, therefore, if properly applied, could lead to having
better motivated employees which may lead to increased productivity in organizations

The earliest motivation theories include, among others, Abraham Maslow’s hierarchy of need
theory (Maslow, 1954); Homans (1950), Fredrick Herzberg’s two-factor theory (Herzberg et al.,
1959), and B.F. Skinner’s reinforcement theory (Skinner, 1953). According to Armstrong (2010),
these theories have led to the understanding of motivation and are underpinned by motivation
theory classified as Instrumentality theory, Content theory and Process theory.

According to Armstrong (2010), in understanding and applying motivation theory, the aim is to
obtain added value through people in the sense that the value of their output exceeds the cost
of generating it, and it can be achieved through unrestricted effort which is a key component in
organisational performance.
Maslow hierarchy of need
Maslow (1954) identified that employees had five levels of needs and those human needs are in
the form of a hierarchy ascending from the lowest to the highest. Maslow emphasizes that no
need can be fully gratified and that when a need is satisfied, it ceases to be a motivator. This
makes a person seeks a higher level of need

Maslow theorized that the lower-level needs have to be satisfied before the next higher-level
need would motivate an employee (Armstrong, 2010). In Maslow’s conclusion, in order to meet
the needs of an employee, the employer had to understand the hierarchy of the need to which
the employee belongs. According to Maslow (1954), listed from the lowest level of needs to the
top are categorized as follows:

• Physiological needs: These are needs that focus on sustaining human life
such as the need for oxygen, food, water, and sex. Maslow stated that until these basic
needs are satisfied to a considerable extent, no other motivating factor can operate
(Armstrong, 2010).

• Security or Safety Needs: These are the next in hierarchy and focus on
being free of physical danger and the fear of losing a job, property, food or shelter as
well as protection against emotional disappointment.

• Social Needs: These are the needs that deal with the social aspect of man
such as the need to belong and be accepted by others. It is the need for love, affection
and acceptance as belonging to a group.

• Esteem needs: Maslow identified that as soon as people satisfy the need to
belong and be accepted by others, the next higher level of need is the need to be held
in high esteem by themselves and others. It goes on to state that these kinds of need
produce satisfaction through power, prestige, status, and self-confidence. It includes
internal esteem factors such as self-respect, autonomy, achievements, and external
factors such as status, recognition, and attention.

• Self- Fulfilment (Self-actualization): This is the highest need in the

hierarchy. It is the drive to become what one is capable of becoming, to maximize one’s
full potential and to accomplish something. It includes needs such as growth, achieving
one’s potential and self-fulfillment.

According to Maslow (1954), once a need has been satisfied, it no longer acts as a strong
motivator and the need at the highest level becomes the “motivator”. Maslow also sets out a
distinction crucial for new employment-motivation theories
1. What kind of leadership style majorly used at CNERGYICO and why?

Ans: Democratic leadership style is a style which majorly used in this company because with
a democratic leadership style, everyone is given the opportunity to participate, ideas are
exchanged freely, and discussion is encouraged. While this process tends to focus on group
equality and the free flow of ideas, the democratic leader is still there to offer guidance and
control.

The democratic leader is also charged with deciding who is in the group and who gets to
contribute to the decisions being made. Research has found that the democratic leadership
style is one of the most effective types and leads to higher productivity, better contributions
from group members, and increased group morale.

2. How managers at CNERGYICO make sure that their employees perform best of their
abilities

Ans: Managers make sure that their employees perform best of their abilities by following
means:

• Clear expectations.
• Make sure performance appraisals are consistent.
• Make employee development a priority.
• Take steps toward improving morale.
• Empower employees to do their jobs well.
• Utilize the right technologies.
3. How can you define the role of leadership in CNERGYICO success?

Ans: leadership role in said company is to influence employees by following ways:

• Influence of leadership on job satisfaction

• Influence of leadership on motivation
• Influence of leadership on employees’ performance

4. Is there is any reward system for employees (if any) what types of reward

Ans: The reward system is a strength both financial and progression and to improve the
performance of the firm. The factors are:

• training
 • international coaching
• house training
• External training to boost performance.
• Non-financial rewards are through appreciation, awards, certificate etc.
5. Advancement is being made to enhance the performance of employee.

Ans: leadership effects on performance can be evidenced by the estimated value of

the path coefficient which showed a positive and statistically significant impact. That is,
the better the model of leadership applied, the performance of employees will increase.

6. How do you keep your team motivated despite conflicts and obstacles?

Ans: To hire for leadership and to fulfill the goals and motivate rest of the employees to fulfill
the company’s mission and vision which is according to company’s interest and the employees.

7. What leadership traits managers at CNERGYICO should have?

Ans: The qualities & traits the managers should have followed:

• Challenging accepting wider ambitions

• Adding value in your own self by extending the boundaries and breaking the box.
8. How do you keep your employees motivated, so they can enjoy their job every day
that they come to work?

Ans: managers keep their employees motivated by following ways :

• Pay competitively.
• Give them the tools they need to do their job well.
• Show how their role connects with the company’s purpose and goals.
• Enhance their career with learning, development and experiences.
• Recognize their achievements and demonstrated values.

Conclusion
(1) Leadership, Employee Motivation, and performance is vital in the management of
employee within the company. Leadership is a crucial factor in making an organization
successful, leadership is an art of influencing people to perform the tasks assigned effectively,
willingly, and competently. Motivation is vital for not only employee confidence, but also for
the companies bottom-line. It is not just a substance of finding right workforce but motivating
them will always do their best. Managers at cnergyico must continue to support the employees
who are performing well and for employees whose performance is less, for the sustainable
growth of the organization.

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