A-study-of-the-relationship-between-leadership-styles-and-employee-commitment-an-empirical-study-of-private-un-aided-b-schools-of-maharashtra-priyadarshini-poddar.pdf

A STUDY OF THE RELATIONSHIP BETWEEN LEADERSHIP STYLES AND EMPLOYEE COMMITMENT: AN EMPIRICAL STUDY OF PRIVATE UN-AIDED B-SCHOOLS OF MAHARASHTRA. Dissertation Submitted to the Padmashree Dr. D. Y. Patil University’s, Department of Business Management In partial fulfilment of the requirements for the award of the Degree of

DOCTOR OF PHILOSOPHY IN BUSINESS MANAGEMENT

Submitted by MS. PRIYADARSINI KHASTAGIR PODDAR (Enrolment Number: DYP-Ph.D. - 09001)

RESEARCH GUIDE PROF. DR. PRADIP MANJREKAR DEAN PADMASHREE DR. D.Y.PATIL UNIVERSITY’S, DEPARTMENT OF BUSINESS MANAGEMENT, Sector 4, Plot No. 10, CBD Belapur, Navi Mumbai- 400614

November,2012

A Study of the Relationship between Leadership Styles and Employee Commitment: An Empirical Study of Private Un-Aided B-Schools of Maharashtra

DECLARATION I hereby declare that dissertation entitled, “A study of the Relationship between Leadership Styles and Employee Commitment: An Empirical Study of Private Un-aided B-Schools of Maharashtra.” submitted for the Award of the Degree of Doctor of Philosophy in Business Management at the Padmashree Dr. D.Y.Patil University’s Department of Business Management, Navi Mumbai is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles. This study contains research work which is based on totally personal work and view point of the researcher and no other body should be held responsible for the same.

Place: Navi Mumbai Date: 12th November’2012

(Ms.Priyadarsini Khastagir Poddar) Signature of the Candidate

CERTIFICATE This is to certify that the dissertation entitles “A study of the Relationship between Leadership Styles and Employee Commitment: An Empirical Study of Private Un-aided B-Schools of Maharashtra”, is a bonafide research work carried out by Ms.Priyadarsini Khastagir Poddar, student of Doctor of Philosophy(Business Management), at Padmashree Dr. D. Y. Patil University’s Department of Business Management, Navi Mumbai during the year 2009-2012, in partial fulfilment of the requirements for the award of the Degree of Doctor of Philosophy in Business Management and that the dissertation has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title of any University or Institution.

Prof. Dr.Pradip Manjrekar

Prof. Dr.R.Gopal

Dean & Ph.D. Research Guide

Director & HOD

Dept. of Business Management

Dept. of Business Management

Padmashree Dr. D.Y. Patil

Padmashree Dr. D.Y.Patil

University, Navi Mumbai

University, Navi Mumbai

Place: Navi Mumbai Date:

This Thesis Is Dedicated To My Parents

ACKNOWLEDGEMENT I am indebted to the Padmashree Dr. D.Y. Patil University, Department of Business Management, which has provided me with the opportunity to carry out the Doctorate program. This dissertation or research study would not have been possible if the Director and Head of the Department of Business Management of Padmashree. Dr.D.Y.Patil University, Dr.R.Gopal did not provide me with his constant encouragement, suggestions, constructive comments, and motivations .His blessings lead to the completion of the final dissertation. My sincere thanks and appreciations extended to my guide, Head of the Department of Business Management of Padmashree Dr.D.Y.Patil University, Dr. Pradip Manjrekar. His constant inspiration shaped me to a better researcher. I would also like to thank Dr.A.K.Sengupta, Chairman of Higher Education Forum for his valuable peer review of my research paper based on the pilot study of my research work. In addition, I extend my heartfelt gratitude to all the 47 Directors, all over Maharashtra for allowing me to collect data from their academic faculties, as well as I thank all my respondents. Finally, the blessings of my parents, Late Sri Sitanath Khastagir and Late Smt Sunanda Khastagir and support and motivation from my husband Mr. Nilanjan Poddar and my two sons Aryaman and Shauryaman lead to the completion of this research study .I would also like to express my thanks and appreciation to my sister Tinku Bhattacharya. (Ms.Priyadarsini Khastagir Poddar) Signature of the Candidate

TABLE OF CONTENTS Chapter No.

Title

Preliminary

Page No. Cover Page Title Declaration Certificate Acknowledgement Table of Contents List of Tables List of Figures List of abbreviations Executive Summary Introduction

Chapter – 1

I V XIV XV XVI 1

1.1

Introduction & Background of Leadership Style

2

1.2

Leadership Styles and Employee Commitment

4

1.3 1.4 1.5 1.6 Chapter – 2

Employee Commitment The Determinants of Employee Commitment Affective Commitment Business School Management Education in India Review Of The Literature

5 6 7 9 14

2.1

Leadership

15

2.2

Leadership Style Theories

17

2.3

Situational Leadership Style Theories

24

2.4

Recent Theories of Leadership Style

27

2.5 2.6

Transformational Leadership Style Commitment Summary of Leadership Style Theories

2.7

Theoretical Framework on Leadership Style

36

2.8

Leadership styles within academic institutions

38

2.9

Employee Commitment

40

2.10

Conceptualization of Commitment

51

2.11

Dimensions of Employee Commitment

52

2.12

Antecedents of Employee Commitments

56

and

Employee 35 35

I

2.13

Employee Commitment within Academic Institution

60

2.14

Literature review on Education Sector with emphasis over 64 B-Schools.

2.15

Research Gap

Chapter 3

111 Education System In India

112

3.1

Introduction To The Education System In India

113

3.2

Structure Of Educational System In India.

114

3.3

Accreditation

119

3.4

Administration of Education

121

3.5

Types of Colleges

121

3.6

Universities: The Organisational Framework

126

3.7

The People Who Manage the Universities

142

3.8

Conclusion

147

Chapter 4

An Overview of the B-Schools of Maharashtra

149

4.1

Introduction to Business Management Education:

150

4.2

Present Situation of Business Management Education in 152 Maharashtra.

4.3

Growth and Meaning of Un-Aided Private B-Schools of 153 Maharashtra

4.4

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

157

Maharashtra as laid down by All India Institute of Technical Education. 4.5 Chapter-5

Conclusion Objectives, Hypothesis And Research Methodology

171 173

II

5.1

Statement of Research Problem:

174

5.2

Research Questions

175

5.3

Scope of the Study:

175

5.4

Purpose of the Study

175

5.5

Objectives

176

5.6

Statement of Hypothesis

177

5.7

Population and Sample Selection

181

5.8

Sampling Design

182

5.9

Data Source

182

5.10

Pilot Study

184

5.11

Data Collection for the Main Research Study

184

5.12

Measurement of the Data

186

5.13

Reliability of the Study Instrument

192

5.14

Data Analysis Tools

193

5.15

Interpretation and Report Writing

193

5.16

Limitation of the Study

193

Chapter-6

Research Findings

195

6.1

Introduction

196

6.2

Pilot Study Report

196

6.3

Description of Respondent‟s Characteristics

220

6.4

Statistical Results

225

6.5

Testing the Expectations and Hypotheses

230

6.6

Testing the expectations:

231

6.7

Testing the Hypothesis

235

III

Chapter-7

Discussions And Conclusions

267

7.1

Discussion

268

7.2

Conclusion

280 Recommendations And Suggestions

283

8.1

Recommendations

284

8.2

Suggestions

286

Bibliography

288

Annexure I

309

Annexure II

321

Chapter 8

IV

List of Tables Table No

Content

1

Dimensions

Page No. of

Employee

Commitment

within 48

Multidimensional Models 2

Bifurcations of Universities in India

153

3

Number of Private Un-Aided B-Schools of Maharashtra as 157 per Directorate of Technical Education, Maharashtra State, with the total number of private un-aided B-schools in the regions of the research study.

4

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

159

4(ii) shows the seats available for allotment under CAP for 160 un-aided private B-Schools in Maharashtra.

5

5-(i) Gives the Norms for Cadre Ratio (PG) in B-Schools of 163 Maharashtra. 5-(ii) Gives the essential and desirable Facilities in B- 163 Schools of Maharashtra 5-(iii) Gives the evaluation guidelines for the teaching and 166 learning process. 5-(iv) Gives the evaluation guidelines for the teaching and 168 non-teaching staff of private un-aided B-Schools of Maharashtra.

6

Area vies Collection of the Research Data

186

7

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

199 V

7-(ii) Frequency distribution of Respondent‟s Educational 200 Level 7-(iii) shows frequency distribution of respondents by 200 Marital Status. 7-(iv) shows frequency distribution of respondents by 201 Occupational Status. 7-(v) shows frequency distribution of respondents by Salary 201 (Monthly income) 7-(vi) shows frequency distribution of respondents by 202 Length of service. 7-(vii) shows frequency distribution of respondents by 203 Gender.

8

8(i-a) Correlations of Transformational leadership styles 204 (perceived) with organizational commitment. 8(i-b) Correlations of Transformational leadership styles 205 (expected) with organizational commitment. 8(ii-a) Correlations of Transactional leadership styles 206 (perceived) with organizational commitment. 8(ii-b) Correlations of Transactional leadership styles 206 (expected) with organizational commitment. 8(iii-a) Pearson‟s Co-relation results of transformational 207 leadership style and transactional Leadership style on employee commitment as perceived by the academic employees of B-schools.

VI

8(iii-b) Pearson‟s Co-relation results of transformational 208 leadership style and transactional Leadership style on employee commitment as expected by the academic employees of B-schools. 8(iv-a) Correlation of Laissez –Faire Leadership style 209 (Observed) with Organizational commitment of employees. 8 (iv-b) Correlation of Laissez –Faire Leadership styles (Expected) with Organizational commitment of employees.

210

8v (a & b) ANOVA shows relationship between age and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai.

211

8(vi) ANOVA shows relationship between Education and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai.

212

8(vii-a, b) shows relationship between Length of service and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai.

213

8(viii-a, b), shows relationship between occupational status and level of organizational commitment of private BSchools academic faculties of Navi Mumbai.

214

8 (ix-a, b), shows relationship between pay (salary) and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai.

215

8 (x-a, b), shows relationship between marital status and level of organizational commitment of private B-Schools

VII

academic faculties of Navi Mumbai.

216

8 (xi-a, b), shows relationship between gender and level of organizational commitment of private B-Schools academic

9

faculties of Navi Mumbai.

217

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

221

9-(ii) Frequency distribution of Respondent‟s Educational 221 Level 9-(iii) shows frequency distribution of respondents by 222 Marital Status. 9-(iv) shows frequency distribution of respondents by 223 Occupational Status. 9-(v) shows frequency distribution of respondents by Salary 223 (Monthly income) 9-(vi) shows frequency distribution of respondents by 224 Length of service. 9-(vii) shows frequency distribution of respondents by 224 Gender. 9-(viii) shows frequency distribution of respondents by 225 Internal promotion taken place within the particular time span. 10

10-(i). Intercorrelations Among the MLQ Scales and 227 Organizational Commitment Measure. 10-(ii).Range (%), Mean, Median, and Standard Deviation 229 of all the Variables

11

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

VIII

Level of Organizational Commitment. 11 – (ii). Frequency Distribution of Heads/Deans/Directors 233 According to

Their

Transactional

Characteristics

as

Perceived by their sub-ordinate Academic Faculties. 11 – (iii). Frequency Distribution of Transactional 233 Heads/Deans/Directors According to Their Characteristics as Expected by their Sub-Ordinate Academic Faculties. 11–(iv). Frequency Distribution of Heads/Deans/Directors 234 According to Their Transformational Characteristics as Perceived by their sub-ordinate Academic Faculties. 11–(v). Frequency Distribution of Heads/Deans/Directors 235 According to Their Transformational Characteristics as Expected by their Sub-Ordinate Academic Faculties. 12

12 (i) shows Regression analysis of Transformational 237 leadership styles (OBSERVED „OBS‟ or perceived “P”) on employee commitment. 12(ii) shows Regression analysis of Transformational 237 leadership

styles

(Expected

“Exp”)

on

employee

commitment. 12(iii) Correlations of Transformational leadership styles 238 (Observed

„Obs‟/Expected

„Exp‟)

with

employee

commitment. 12 (iv) Correlations of Transformational leadership styles 239 (Observed „Obs‟) with employee commitment. 12 (v) Correlations of Transformational leadership styles 240

IX

(Expected „Exp‟) with employee commitment. 12(vi) Correlations of Transformational leadership styles 240 (with GAP between observed „OBS‟/expected „EXP‟) with organizational commitment.

13

13 (i) shows Regression analysis of Transactional leadership 242 styles (Observed „Obs‟ Or Perceived “P”) on employee commitment. 13 (ii) shows Regression analysis of Transactional 242 leadership

styles

(Expected

„Exp‟)

on

employee

commitment. 13(iii) Correlations of Transactional leadership styles 244 (Observed

„Obs‟/Expected

„Exp‟)

on

employee

commitment. 13(iv) Correlations of Transactional leadership styles 245 (Expected „Exp‟) on employee commitment. 13(v) Correlations of Transactional leadership styles 245 (Observed „Obs‟) on employee commitment. 13(vi) Correlations of Transformational leadership styles 246 (with GAP between observed „OBS‟/expected „EXP‟) on employee commitment.

14

14(i)

shows

Transformational

the

Regression

Leadership

Analysis

(OBS),

between 247

Transactional

Leadership (OBS), on Employee Commitment. 14(ii)

shows

the

Regression

Analysis

between 248

X

Transformational

Leadership

(EXP),

Transactional

Leadership (EXP), on Employee Commitment. 15

15(i) shows the Regression Analysis between Laissez-Faire 249 Leadership (OBS), and Employee Commitment. 15(ii) shows the Regression Analysis between Laissez – 250 Faire Leadership (EXP),) on Employee Commitment. 15(iii) Correlations of Laissez – Faire leadership styles 251 (Observed

„Obs‟

Or

Perceived)

with

organizational

commitment. 15(iv) Correlations of Laissez – Faire styles (Expected 251 „Exp‟) with organizational commitment. 15(v) Correlations of Laissez – Faire styles (with GAP 252 between

observed

„OBS‟/expected

„EXP‟)

with

organizational commitment. 16

Correlations of Transformational/ Transactional leadership 253 styles (with GAP between observed „OBS‟/expected „EXP‟) with organizational commitment.

17

17(i) shows Regression analysis of Transformational and 256 Transactional leadership styles (OBSERVED „OBS‟ or perceived “P”) on employee commitment. 17(ii) shows Regression analysis of Transformational / 256 Transactional leadership styles (Expected “Exp”) on employee commitment.

18

18-(i). Correlation Results of the Level of Education on 257 Employee Commitment.

XI

18-(ii). Regression Results of the Level of Education on 257 Employee Commitment. 19

19-(i). Correlation Results of the Age on Employee 258 Commitment. 19-(ii). Regression Results of the Age on Employee 259 Commitment.

20

20-(i). Correlation Results of the Occupational Status on 260 Employee Commitment. 20-(ii). Regression Results of the Occupational status on 260 Employee Commitment.

21

21-(i). Correlation Results of the Salary (Monthly In-Come) 261 on Employee Commitment. 21-(ii). Regression Results of the Salary (Monthly In-Come) 261 on Employee Commitment.

22

22-(i). Correlation Results of the Marital Status on 262 Employee Commitment. 22-(ii). Regression Results of the Marital Status on 262 Employee Commitment. 22-(iii). Mean Difference of the Marital Status on Employee 263 Commitment.

23

23-(i). Correlation Results of the Gender on Employee 263 Commitment. 23-(ii). Regression Results of the Gender on Employee 263 Commitment. 23-(iii). Mean Difference of the Gender on Employee 264

XII

Commitment. 24

24-(i). ANOVA for the Internal Promotions on Employee 265 Commitment. 24-(ii). Regression Results of the Internal Promotions on 265 Employee Commitment. 24-(iii). Mean Difference of the Internal Promotion on 265 Employee Commitment.

25

Regression Results of all the Independent Variables on 266 Employee Commitment

XIII

List of Figures

Figure No. 1

Content

Pg.No

Predictors and Outcomes of Affective Employee 9 Commitment

2

The Managerial Grid (adopted from Blake and 23 Mouton, 1975).

3

Model of Theoretical Framework on Leadership

37

Styles 4

General Model of Workplace Commitments

5

Hypothesized

Antecedents

and

Outcomes

52 of 57

Employee Commitment 6

Structure of Indian Education System.

114

XIV

List of Abbreviations HCM

High

Commitment

Management

Strategies OSU

Ohio State University

LPC

Least-Preferred Co-worker

MLQ

Multifactor Leadership Questionnaire

MBE

Management By Exception

B.C.

Before Christ

PEG

Pride, Enjoyment and Growth

OD

Organization Development

OCTAPACE

Openness,

Confrontation,

Trust,

Authenticity, Pro Activity, Autonomy, Collaboration And Experimentation OCQ

Organizational

Commitment

Questionnaire ECQ

Employee Commitment Questionnaire

MCom

Master of Commerce

MA

Master of Arts

OHU

Other than Home University

ME

Master in Engineering

CAP

Centralised Admission Process

XV

Executive Summary The purpose of this study was threefold: first, to investigate the effects of transformational, transactional and laissez-faire leadership styles upon organizational commitment of employees; second, to determine the gap between the perceived and expected leadership styles of the heads/directors and deans of the private un-aided BSchools of Maharashtra and its impact on employee commitment; and third, to explore the relationship between selected demographic variables and employee commitment. The Objectives of the study were as follows: 1)

To study the relationship between the Transformational, Transactional and

Laissez-Faire Leadership Styles of the Heads/Directors and the level of commitment among the academic faculties of private un-aided B-Schools of Maharashtra. 2) To study the impact of Transformational Leadership Style on the academic faculties of the selected B-Schools of Maharashtra in comparison to the Transactional and Laissez-Faire leadership styles of the Heads/Directors. 3) To study the differences in Leadership Styles of HOD/Directors as observed and expected by the academic faculties of the private un-aided select B-schools of Maharashtra. 4) To determine the effects of age, level of education, marital status, gender, educational qualifications and job-related variables (Occupational status, salary and length of service, internal promotions) on the level of commitment of the private unaided selected B-School‟s academic faculties of Maharashtra. 5)

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

un-aided select B- Schools of Maharashtra. XVI

Statement of Hypothesis: H01: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments has no positive impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H11: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors has a positive impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H02: The Transactional Leadership Style (as observed and expected) of the Heads of the Departments/Directors has no positive impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H12 : The Transactional Leadership Style (as observed and expected) of the Heads of the Departments/Directors has a positive impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H03: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will not have a greater impact on the level of employees‟ commitment compared to the Transactional Leadership Style. H13 : The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will have a greater impact on the level of employees‟ commitment compared to the Transactional Leadership Style.

XVII

H04: The Laissez-Faire Leadership Style of the Heads of the Departments/Directors has no negative impact on the level of employees‟ commitment of private un-aided BSchools of Maharashtra. H14: The Laissez-Faire Leadership Style of the Heads of the Departments/Directors has a negative impact on the level of employees‟ commitment of private un-aided BSchools of Maharashtra. H05: There is no difference between the expected and observed leadership styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra on the level of employee‟s organizational commitment. H15: There is difference between the expected and observed leadership styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra on employee‟s organizational commitment. H06: Together the Transformational and Transactional Leadership Styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will not have a greater impact on the employee‟s commitment level, rather than either of the two separately. H16 : Together the Transformational and Transactional Leadership Styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will have a greater impact on the employee‟s commitment level, rather than either of the two separately. H07 : There will be no positive relationship with the level of education and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra.

XVIII

H17 : There will be a positive relationship with the level of education and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H08 : There will be no positive relationship with the age and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H18: There will be a positive relationship with the age and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H09: There will be no positive relationship between occupational status and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H19: There will be a positive relationship between occupational status and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H010: There will be no positive relationship between pay (salary) and the level of employees of private un-aided B-Schools of Maharashtra. H110: There will be a positive relationship between pay (salary) and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. H011: Married Employees of private un-aided B-Schools of Maharashtra will not be more committed to their organization than single, divorced and widowed employees. H111 : Married Employees of private un-aided B-Schools of Maharashtra will be more committed to their organization than single, divorced and widowed employees. H012: Male gender of private un-aided B-Schools of Maharashtra will not be more committed to their organization than the female gender. H112: Male gender of private un-aided B-Schools of Maharashtra will be more committed to their organization than the female gender. XIX

H013: Employees undergoing internal promotions of private un-aided B-Schools of Maharashtra will not be more committed to their organization. H113: Employees undergoing internal promotions of private un-aided B-Schools of Maharashtra will be more committed to their organization. Scope of the Study: The study is restricted to the level of academic faculties of private un-aided B-Schools of Maharashtra. It could be extended to the lower levels, concerning the non-teaching staffs of the private un-aided B-Schools as well as to the higher levels where the Deans and Directors could judge the leadership styles followed by the trustees. The study could also be extended to other states of India and globally too. Research Methodology: Sampling Design: This study was conducted in Navi-Mumbai, Mumbai, Pune, Nasik, Aurangabad area of Maharashtra. The targeted population for the study was the full-time academic faculties of private un-aided B-Schools of Maharashtra area. There are altogether 390 B-schools in Maharashtra according to DTE Report 2010-2011.The study has been conducted in 47 B-Schools of the above mentioned regions of Maharashtra. The total number of sample is 570 academic faculties of selected un-aided private B-Schools of Maharashtra. Data Source: Descriptive Survey:

XX

Review of literature and other available information from various published and unpublished reports, journals, and periodicals, books, newspapers, etc. (including databases like EBSCO, Pro-quest, and others). Field Survey: Research Tool: The research instrument used for collecting primary data was questionnaire. The Questionnaires used for the final data collection were close ended questionnaires. Different Questionnaires used for different variables of the study were as follows: 1. Questionnaire for employee commitment. 2. Questionnaire for demographic details. 3. Questionnaire for Leadership Styles - (i) Transformational; (ii) Transactional; (iii) Laissez-Faire. Pilot Study: A total of 150 questionnaires were distributed among the academic faculties of private un-aided B-Schools of Navi-Mumbai area, out of which 91respondent‟s instruments were analysed. The final questionnaire had been moderated based on the pilot study. The reliability test of the questionnaire was made and was found to be good. Data Collection: The data for this study were collected through a questionnaire administered to all the employees of private unaided B-Schools of Maharashtra. The number of completed and returned questionnaires was 570. Descriptive statistics, Correlational statistics,

XXI

simple and multiple regression analysis, one way analysis of variance (ANOVA), and Cronbach‟s alpha were used to analyze the data. Tabulation and Statistical Analysis of Data: The responses observed from each of the items in the instrument used for primary data collection were scored and tabulated into a master sheet. The statistical tools used included Co-relation, Regression technique, Multiple Regression, Anova; Descriptive Statistics has been applied to draw logical conclusions. The analysis was done using Statistical Package of Social sciences (SPSS: Version 17). Interpretation and Report Writing: The analysed data were finally interpreted to draw the conclusions and reported with the objective of the study in view. Major Findings: The questionnaire used for the study of the respondent‟s characteristics included 8 items. All the respondents were Dean and Academic faculties of B-Schools of Maharashtra. They were asked about their age, education, marital status, occupational status, salary (monthly income), and length of services, gender, and internal promotion. The questionnaire used for the testing of Hypothesis consists of three sets: 1) Employee Commitment 2) Leadership Styles as observed by the employees 3) Leadership Styles as Expected by the employees from their immediate Heads. The Hypotheses of this study addressed the field of Leadership and Employee Commitment and the relationship between the demographic factors and employee commitment. In the current study there were 13 hypothesis tested. To test this hypothesis, some appropriate statistical tools such as frequency analysis, analysis of XXII

variance (ANOVA), and Pearson‟s correlation techniques, regression techniques, multiple regression techniques are used. The findings are discussed below: Transformational Leadership Style: Transformational leadership as “expected” by the employees of the organisation are found to be positively and significantly correlated with the employee commitment. Transformational leadership styles as “observed” by the employees of the organisation are found to be positively co-related and highly significant with the employee commitment. Transactional Leadership Style: Transactional Leadership Style as “expected” by the employees of the organisation are found to be positively co-related but not significant with employee commitment. Transactional leadership styles as “observed” by the employees of the organisation are found to be positively correlated and highly significant with employee commitment. Laissez-Faire Leadership Style : Laissez – Faire Leadership style as “expected” by the employees of the organisation are found to be negatively correlated and highly significant with employee commitment. Laissez – Faire Leadership style as “observed” by the employees of the organisation are found to be negatively correlated and highly significant with employee commitment. Demographic Details: Age: Age of the employees of the organisation is positively co- related with employee

XXIII

commitment. Education: Educational qualifications of the employees of the organisation are positively co-related with employee commitment. Marital Status: Married employees of the private un-aided B-Schools of Maharashtra are found to be more committed than the un-married employees. Occupational Status: Occupational status of the employees of the organisation is positively co-related with employee commitment. Monthly Income: Salary of the employees of the organisation is positively and significantly co-related with employee commitment. Length of Service: Experience of the employees of the organisation is positively and significantly co-related with employee commitment. Gender: Gender of the employees of the organisation is positively co-related with employee commitment. Male gender is found to be more committed than the female gender. Internal Promotion: Internal Promotion is positively and significantly co-related with employee commitment. Analysis: As organizations strive to improve, there is a pressing need to understand the factors that may directly or indirectly impact individual‟s behaviours in organizations. This study was concerned with two important issues in the field of organizational behaviour, organizational commitment and leadership. The literature revealed that both subjects were considered as major contributors to the success of any XXIV

organization, public or private. Based on the findings of the present study, the researcher developed the following conclusions: 1. The findings of this study indicated that transactional and transformational leadership styles positively impacted the level of employee commitment of the academic faculties of the B-Schools of Maharashtra. Additionally, the findings showed that the organizational commitment of individuals was negatively affected by the laissez-faire leadership style. Thus, in terms of organizational commitment, these results provide support for the cross-cultural applicability of Bass‟s augmentation theory of leadership, which postulates that successful leaders are both transformational and transactional. Bass (1996) stated that „ although the model of transformational or transactional leadership may have needs for adjustments and fine-tuning as we move across cultures, particularly into non-Western, overall, it holds up as having a lot of universal potential”. Furthermore, consistent with Bass‟s theory that stressed that successful leaders are more transformational, the findings of this study demonstrated that the academic faculties of the B-Schools of Maharashtra keeps an expectation from their Heads of the Departments and Directors to be more transactional in nature while dealing their sub-ordinates and confirmed that sub-ordinates of transformational leaders were more committed to the organization than those who were under transactional leaders. 2. The results revealed that the majority of the academic faculties of the BSchools of Maharashtra were found to be committed to the organization. 3. The majority of the academic faculties of the B-Schools of Maharashtra perceived/observed their leaders or Heads of the Departments/Directors to exhibit transformational and transactional characteristics, but

keeps an XXV

expectation from their Heads to whom they report to be more transformational in nature and follow contingent reward as well as management by exceptionactive when concerning transactional leadership. Management by exception – passive was not accepted by the B-School academic employees. 4. Consistent with early research studies, the demographic variables of age, education, monthly income, marital status i.e., married employees had significant positive impacts on employee commitment. The result also shows that length of service, internal promotion, occupational status are positively related to employee commitment but the statistical results are not significant. The result also shows that both male and female employees are positively related to employee commitment but their statistical findings showed no significant difference.

The analysis of this study indicated that the level of employee commitment of the academic faculties of the B-Schools of Maharashtra was relatively high. With regard to leadership styles, the results showed that the transformational leadership style had the greatest positive effect on the employee commitment, followed by the transactional leadership style, and while the laissez-faire leadership style had a negative impact on employee commitment to their organization as perceived or observed by the employees of the B-School. Whereas in the leadership style expected by the B-School employees, it is found that the employees expect their Leader to follow transformational leadership style only, while the Laissez-Faire Leadership style remains the same as the perceived leadership style. In addition, the relationship between the employee commitment of the employees and some selected demographic variables was examined. The findings indicated that age,

XXVI

monthly income, internal promotion and length of service had a significant positive effect on the level of the employee commitment. The findings also indicated that married employees were found to be more committed to their organization compared to single, divorced, or widowed employees. Limitation of the Study: The study is limited to the state of Maharashtra and that too specifically with NaviMumbai, Mumbai, Pune, Nasik and Aurangabad only. In future with a longer span of time, similar studies can be carried out in the other states of the country and even globally. Also, in future few more parameters related to leadership style and employee commitment may be identified and subsequently, the study may be carried out on those identified parameters. Suggestions: It is suggestive that the Heads of the departments or the Directors under whose leadership the academic faculties of the private un-aided B-schools of Maharashtra are working should be more transformational and transactional in nature while dealing with the academic faculties. It is even more suggestive that the Heads or the directors should be more transformational in their leadership styles. They should be more co-operative and participative in nature. Though they are expected to be transactional in their leadership styles but they should not devote much time over finding mistakes in their sub-ordinate faculties. The Heads and the Directors should not avoid or delay in taking decisions .They should be more punctual by nature and should not delay in responding to urgent

XXVII

questions. They should not be absent when needed and should not wait for things to go wrong before taking actions. Their steady involvement in all the important issues and problems should be there. For newly joined faculties orientation programs should be conducted. Regular communications should be there between the management and highly educated faculties. Regular increments as per the HR of the institutions should be there. Whenever new openings are there, internal candidates should be considered first for the promotions. Inspirational and motivational training programmes should be there for the faculties. For good academic achievements or feedback from the students or conducting National and International seminars or for resource generation for the institute, the faculties should be rewarded and awarded. Employees who are working for a considerable period of time and the senior employees should be given more importance and should be involved in the decision– making process. Their wisdom and experience can be beneficial to the organisation.

XXVIII

CHAPTER 1 INTRODUCTION

1

CHAPTER 1 INTRODUCTION 1.1 Introduction & Background Many authors have associated leader‘s characteristics with the development of employee commitment (Bennis and Goldsmith, 1994; Bennis and Townsend, 1995; Kerfoot, 1998). Bennis and Goldsmith (1994) and Bennis and Townsend (1995), believe that vision, empathy, consistency and integrity in a leader could foster development of trust and thereby enhancing the commitment of the employees to their organization. They also indicate that leaders generate and sustain trust by acting in ways that produce constancy, congruity, reliability and integrity. Kerfoot (1998) adds to these availability and accessibility, communicating with candour and a willingness to invest in employees. The topic of this study is concerned with two important aspects of organizational behaviour which address leadership and employee commitment. Leadership has been viewed by academicians and practitioners as the most important topic within the realm of organizational behaviour (Rahim 1981). In fact it is considered to be an essential aspect of successful management. Furthermore it has been argued that without leadership, successful management cannot be possible (Steers, 1981). Employee commitment, at the same time, has attracted attention from scholars and practitioners (Mowday et al, 1982). According to Buchanan (1974A), employee commitment is no less than a precondition for successful organisation. In the United States and other developed countries some research has focused on the study of leadership styles and on the study of organizational commitment among 2

employees. Within this body of research, however, very few studies have been devoted to examining the relationships between leadership styles and employee commitment. The importance of leadership refers to the fact that the success of an organisation is heavily dependent on the quality of its leaders. These leaders play a major role in making decisions that determine organizational goals and how these goals can be accomplished. Their actions are important in influencing the behaviour and potential of the organization‘s members (Williams, 1978). The drive to globalize implies that global organizations need managers with a global outlook. Next generation managers must work effectively with diverse constituencies within and outside their organizations. Not only is the workforce becoming more diverse by gender, age, ethnicity, and cultural background, but leaders also must deal with bewilderingly dispersed and diverse stakeholders – locally, nationally, and globally. These factors are combining to produce an environment that is rich in leadership challenges (Meena Surie Wilson and Emily Hoole, 2011, Vikalp). Employee commitment is a complex concept. Researchers have debated the nature of this concept and empirical studies have examined the links between both commitment and other outcomes, and commitment and the antecedents of management and supervision styles. This study was designed to investigate the relationships between leadership styles and employee commitment among the private un-aided B-Schools of Maharashtra. Therefore, it is necessary to include background information about the state of Maharashtra and its Higher Education Systems, especially the academic institutions pertaining to the B-schools. The data for this study were collected by administering surveys to the academic faculties of private un-aided B-Schools of Maharashtra. 3

1.2 Concept of Leadership Styles and Employee Commitment Effective Leadership Style enhances Employee Commitment to a greater extent. Kahn (1990) recognizes the impact of management style, suggesting that a supportive management style positively affects level of engagement. Kahn (1990) describes this as a supportive manager as one who allows trial and error, and creates varying degrees of openness in the environment. This research aims to specifically focus on Transactional Leadership and Transformational Leadership and Laissez -Faire Leadership Styles. The instrument of data collection is designed accordingly. Leadership style ―refers to the pattern or constellation of leadership behaviours that characterize a given leader‖ (Williams, 1978, p.217). Transformational Leadership Style is a leadership style that strives to elevate the desires of individual followers for achievement and self – development, while also promoting the development of the group and organization (Bass & Avolio, 1990). Transformational leaders are those who motivate followers to do more than originally was expected (Bass, 1985). Transactional leadership Style is a type of leadership based on an exchange process between leaders and followers (Burns, 1978). Transactional leaders focus on the clarification of task requirements and the specification of contingent rewards (Bass, 1990). Employee commitment has been defined as ―the strength of an individual‘s identification with and involvement in a particular organization‖ (Porter et al. 1974). Laissez –Faire Leadership style represents a style used by leaders who try to avoid responsibility and decision-making (Bass, 1997).

4

1.3 Employee Commitment Gallie and White (1993) measured employee commitment to paid work from a 1990 survey and found that it was relatively high in the workforce as a whole and appeared to have increased compared with 15 years earlier. There was little difference between men and women. Only one third of employees exhibited high involvement in their current job, usually called task commitment. A recent consultancy Report by AON (2000) claimed, from a survey of 1570 workers, that 39 per cent of UK workers were committed to continuing in their jobs, usually called continuance commitment. Other studies have fiercely debated the gender differences in employee commitment. Hakim‘s1993 division of British women into the full time committed workers and the part time uncommitted workers have been debated extensively, although a further third adaptive group have been added (Hakim, 2000). While there are clearly attitudinal and some behavioural differences between women who work full or part time, there are many determinants of women‘s orientations to work, over and above their hours. Age, life cycle, occupations, education, work history and other attitudes distinguish between women‘s attitudes towards work (Healy, 1999; Dex, 1988). AON (2000) found that UK women exhibited more commitment than men did to continue in their jobs. Commitment was also higher in the following groups; among married people; the middle age groups; and those living outside London; in higher-grade occupations, especially in teaching and health professions; with longer job tenure; in the private sector; and in organizations with 1000 to 5000 employees. The many research studies that have focussed on work commitment have served to uncover the complexity of this concept to the extent that authors have characterised it as having no stable meaning (Becker, 1964), elusive (Guest, 1992) and pluralist (Coopey and Hartley, 1991; Morrow, 1983). Morrow identified 25 forms of 5

commitment although they were able to be reduced to 5 main foci; a value, career, job, organisation or union focus. The focus of our interest is in organisational commitment. Even under this heading there are alternative angles on employee commitment; for example, task commitment (to see the job through), and continuance commitment (to stay in the organisation), normative or affective commitment (feelings of loyalty or shared values with the organisation), financial commitment (to the material rewards), or temporal commitment (to a certain amount or work) 1.4 The Determinants of Employee Commitment Gallie and White (1993) found that employee commitment was related to personal characteristics that they called external factors (beliefs, sense of success) and internal organizational factors including the structure and policies of the organization. Internal factors that were found to improve commitment included: the opportunities for personal development; the higher the extent to which employees felt their skills were utilized; the greater the access to training; the greater the extent the organization was seen as a caring employer; and the existence of teamwork as a form of supervision. Cohen (1995) and others have also found that so-called non-work domains, the amounts of outside ties, the organization‘s support for non-work, as well as personal coping strategies, had significant effects on a sample of nurses‘ organizational commitment. There are elements of these studies, therefore, that suggest indirectly that work-life balance policies may be related to employee commitment. There has been a growing consideration, through econometrics studies, of the assumptions underlying the high commitment management theories. In these theories, the more people centered focus of high commitment management strategies (HCM), viewing 6

employees as an asset, has been argued to lead to an increase in employee commitment. As noted earlier, employee commitment has been viewed as an intermediate outcome, on the way to improvements in business performance (Huselid, 1995). As Guest et al (2000) note, however, few studies have examined both of these relationships together and shown the intermediary effects on commitment. Criticisms have also been made by other researchers that the ‗commitment‘ element was left as an unexplored ‗black box‘ (Becker et al, 1995; Purcell et al, 1999). Employee commitment has typically been viewed as the relative strength of an individual‘s identification with the involvement in an organization as well as his or her willingness to exert effort and remain in the organization. Commitment as outcome has been related to leadership (Walumbwa, Orwa, Wang, and Lawler, 2005). One of the aims of this study is to determine how employee‘s perceptions and expectations of leadership styles followed by their Heads

influence their commitment, and the

meaning of the study will therefore be explained with reference to Meyer and Allen‘s conceptualisation of organisational commitment. 1.5 Affective Commitment This research study focuses on affective commitment which is defined as the employee's positive emotional attachment to the organization. An employee who is affectively committed strongly identifies with the goals of the organization and desires to remain a part of the organization. This employee commits to the organization because he/she "wants to". In developing this concept, Meyer and Allen drew largely on Mowday, Porter, and Steers's (1982) concept of commitment, which in turn drew on earlier work by Kanter (1968). According to Nyengane, (2007) although the relationship is not strong, there is a positive relationship between the transformational leadership behaviours and commitment. This suggests that, 7

leadership behaviours which involve building trust, inspiring a shared vision, encouraging creativity and emphasizing development is somewhat positively related to employee commitment. For affective commitment, the study suggests that these leadership behaviours are positively related to how employees feel about wanting to stay with the company. Therefore, using transformational leadership style will encourage employees to commit highly with their work. Another findings by Viator and Ralph (2001) is transformational leadership is directly and positively associated with role clarity, job satisfaction and affective organizational commitment, and indirectly associated with job performance, across all three functional areas. Therefore, it is strong that transformational leadership will give a direct impact to the employee‘s commitment. The significance of mechanisms used by transformational leaders to influence the followers towards motivation and organizational commitment is addressed. A selected organizational characteristic and other selected personal and work experience characteristics explained affective organizational commitment among the academic employees of private un-aided B-Scholl‘s of Maharashtra. Personal characteristics were gender, age, and length of service (organizational tenure), monthly income, internal promotion, occupational status and marital status within the private un-aided B-Schools of Maharashtra. The Leadership styles followed by the Heads of the Departments/Deans/Directors of the private un-aided B-Schools of Maharashtra were also perceived. These variables (Figure 1) were examined to determine the extent to which they explained affective organizational commitment, the dependent variable.

8

Predictors and Outcomes of Affective Employee Commitment PREDICTORS OUTCOMES Age

OUTCOMES

Gender

Attendance

Length of Service

Occupationa l Status

AFFECTIVE ORGANIZATIONAL COMMITMENT

Employee Performance

Marital Status

Internal Promotion

Decreased Turnover

Monthly INcome

Transformational & Transactional Leadership Styles

Figure 1. Source: Adapted from Chelte & Tausky, (1987). 1.6 Business School Management Education in India with emphasis on Maharashtra. India's education system is divided into different levels such as pre-primary level, primary level, elementary education, secondary education, undergraduate level and postgraduate level. India's higher education system is the third largest in the world, after China and the United States. The main governing body at the tertiary level is the University Grants 9

Commission (India), which enforces its standards, advises the government, and helps coordinate between the centre and the state. Accreditation for higher learning is overseen by 12 autonomous institutions established by the University Grants Commission. In India, education system is reformed. In future, India will be one of the largest education hubs. As of 2009, India has 20 central universities, 215 state universities, 100 deemed universities, 5 institutions established and functioning under the State Act, and 33 institutes which are of national importance Other institutions include 16000 colleges, including 1800 exclusive women's colleges, functioning under these universities and institutions. The emphasis in the tertiary level of education lies on science and technology. Indian educational institutions by 2004 consisted of a large number of technology institutes. Distance learning is also a feature of the Indian higher education system. Management education in India has come a long way. The history of management education in India goes back to the pre-Independence era. The first college level business school in the country was founded in 1913 in Mumbai and was soon followed by another in Delhi in 1920. These business colleges imparted basic skills about the principles of trade and commerce to clerks and supervisors from fields as diverse as banking, transport, and accounting. (Indian Management, Sept 2004). The first Business School in India was Indian Institute of Social Welfare and Business Management, Kolkata, which was established in 1953. The All India Institute of Management and Labour welfare and the department of management, Delhi University followed suit in 1968.

10

A number of universities set up their MBA programme in 1960s. The IIMs were patterned on the recommendation of Dean Robbins of the University of California, which was invited by the planning commission. The first IIM was set up in 1961 at Kolkata followed by IIMs at Ahmadabad in 1961, Bangalore in 1971 and Lucknow in 1974 and in the late 1990s at Indore and Calicut. The flagship management education programme, MBA, is widely popular as it offers quick gateway to the riches and to the top echelon of corporate world. Indian Business School varies widely in terms of the calibre of the faculties, quality of curriculum and infrastructure, and placement record. A few of the schools including the Indian Institutes of Management have built up a reputation of high quality education and their graduates compete successfully for global placement opportunities. Regarding syllabus content, management schools over the world have been modifying their curricula. Growing globalisation of business has led to greater international focus in the curriculum incorporating courses on global leadership, diversity management, managing across cultures, etc. Moving a little away from the basic business, compared to some other disciplines wherein knowledge generation and its dissemination through education sets the direction for application of knowledge in the field, management as a discipline has been a lot more reactive to its environment. Much greater emphasis is needed especially in India on basic and applied research for management education to lead practice. For bolstering their position good management schools in the country need to keep the Global best Schools as their loadstars. Blessed with exceptionally bright students, dedicated faculty, and staff, and a formidable reputation for professionalism, IIMs have the potential to emerge as global leaders in setting new aspirations for management education, and showing the way to achieve them. And they need complete autonomy in determining their salary structures, raising funds etc. It is their 11

autonomy which has brought IIMs this far .For raising management education in the country to the next level, it is vital that this autonomy of IIMs is protected and enhanced.

The education sector has changed a lot and as such numerous educational colleges have come up in the recent times. In respect of colleges, one can come across various kinds like government, self-financing, aided and unaided colleges. It is with the advent of globalization that aided and unaided colleges have now dominated the education sector. When talking of aided and unaided colleges, there are many differences between them.

One of the main differences between aided and unaided B-Schools is with regard to funds. A B-School that gets aid from the government is termed as aided B-School whereas a B-School that does not get any funds or aid from the government is called as unaided B-School While aided B-School get support from the government, unaided B-School do not get any support from the government side. The aided B-Schools get grants from the government for various purposes like infrastructure development, academic activities.

Another major difference that can be seen between aided and unaided B-School is in the fee structure. The unaided B-School charges heavy fees from the students whereas the aided B-School only charges the fees stipulated by the government.

While the government pays the teachers of the aided B-School it is the management that pays the salary of the unaided B-School teachers. The teachers in aided BSchools are protected whereas the teachers have no protection in unaided B-Schools.

12

In terms of autonomy, the unaided B-Schools have great autonomy when compared to aided B-Schools. This is because the unaided B-Schools, unlike the aided ones, do not have any liability. Though private managements run these two sectors of colleges, the unaided colleges have more freedom and liberty than the aided colleges.

The early 90's saw the boom of founding new management schools, most of them in private sector. In the last three years alone 400 Business Schools came into existence. Few Business Schools have also established collaboration with some western Universities. India management institutions produce over 30, 000 full-time MBAs and 10,000 part-time MBAs every year. Many business schools are also running MBA equivalent program such as distance Post Graduate Diploma in Management (PGDM), Masters in International business (MIB) etc. Even some of the leading business houses are establishing their own business schools like Infosys, Birla‘s etc. Management education gives a holistic picture to the students about how to manage the four ‗M‘s of any organization i.e. money, material, man and machine. Whether the knowledge about management principles is obtained through formal study programs at Universities or internally through on the job training or through external seminars or programs, it is of the utmost importance for any person in any job in life; even for the self-employed, entrepreneurs. In Maharashtra there are nine Universities spread all over Maharashtra with sanctioned intake capacity for MMS courses around 150000. The number of students passing MMS / MBA CET is almost 70000, who compete for these seats and about 800 Management schools. Graduates from any discipline (Arts, Science, Commerce, Engineering, Computer Science and Information Technology) can pursue MMS PROGRAMME provided they pass any of the CETs: MH – CET, CAT, MAT. Students are admitted as per the guidelines prepared by DTE in this regard. 13

CHAPTER 2 REVIEW OF THE LITERATURE

14

CHAPTER 2 REVIEW OF THE LITERATURE 2.1 Leadership Leadership is a universal human phenomenon. The study of Leadership is not a new phenomenon, but it is an ancient art. The old civilizations of Egypt and Rome showed examples of leadership practices. Regardless of the culture, leadership occurs universally among all people (Bass, 1981). From ancient to modern times, scholars, military generals, politicians, and more casual observers have been interested in leadership. Leadership styles have been studied extensively; perspectives on leadership have been written and revised. Despite all these efforts, the issue of leadership effectiveness is still far from settled (Gordon, 1982). Even though the word leadership has been used since the beginning of the 19th century (Stogdill, 1974), there continues to be the absence of a comprehensive approach to assess cause and effect of successful leadership (Taylor and Rosenbach, 1989).Burns (1978) described this situation by asserting that ―Leadership is one of the most observed and least understood phenomena on earth‖ (p.2).In fact, the concept of leadership has been defined by various scholars in almost as many ways. Stogdill (1974) noted this ambiguity when he observed that ―there are almost as many different definitions of leadership as there are persons who have attempted to define the concept‖ (p.7). This proliferation of definitions for leadership is primarily due to the complexity and elusiveness of the concept. Lassey (1976) described this complexity by observing that ―there is no clear-cut agreement on the meaning of Leadership for all circumstances‖ (p.15). In an attempt to resolve the discrepancy of

15

definitions, Chemers (1997) developed what he believed to be an umbrella definition of Leadership that would earn the acceptance of a majority of theorists and researchers. Chemer‘s definition describes leadership as ―a process of social influence in which one person is able to enlist the aid and support of others in the accomplishment of common task‖. In the literature, leadership has been a subject of interest since the 18th century. However according to Chemers (1997), leadership had not been scientifically studied until the early 20th century .Bass (1981) contended that early theorists attempted to identify leadership through a theoretical approach. He continued with this analysis to suggest that researchers failed to develop sufficient theories because they could not consider the interactions between individuals and situational variables. Bass compared early researchers on leadership to their recent counter parts, concluding that the former tried to develop comprehensive theories with theoretical bases and not on empirical research. In considering the differences between a manager and leader, many scholars agree to differences, but widely disagree on what the differences are. Schon (1986) argued that leadership and management are not synonymous terms. It is possible, Schon argued, to be a leader without being a manager and also to be a manager without being a leader. Davis and Newstrom (1985) viewed leadership as a part of management. They argued that managers are concerned with planning and organizing activities while leaders are involved in influencing others to enthusiastically pursue defined objectives (p. 158). In this same vein Battern (1989) distinguished between a manager and a leader by saying that managers push and direct while leaders pull and expect. Bass (1985) argued that leadership is not only management nor is management only leadership. According to Schon (1986), managers are generally expected not only top 16

manage, but also to lead. He suggested that they should be criticized if they fail to do both. Davis and Newstorm (1985) suggested that excellent managers are also expected to exhibit strong leadership qualities. Finally, Hunt (1991) asserted that the difference

between

a

manager

and

a

leader

is

very

similar

to

the

transformational/transactional leadership differences which will be discussed in detail in subsequent sections. 2.2 Leadership Style Theories In studying leadership, scholars and theorists have developed many different theories and approaches in their attempts to explain leadership. It has been noted that until the 20th century, research on leadership was not based on scientific inquiry (Chemers, 1997).The following sections include a review of the most popular theories and approaches to leadership. 2.2.1The Great Man Theory Early research on leadership attempted to identify those traits which differentiated great persons in history from the general masses (Stogdill, 1974). The concern of 18th and 19th century philosophers focused on great men rather than on situations (Spotts,1964).The Great Man Theory assumes that leaders are endowed with unique qualities not to be found among the masses (Jabati,1997). It also assumes that ―leaders are born, not made‖ (Kolb et al., p.239). This theoretical perspective is considered to be the simplest, oldest, and most widely held notion of effective leadership. The theory ignores the past achievements of an organization and magnifies the greatness of executives in the organization. In other words, the theory implies that the success of an organization depends entirely on the greatness of its executives ( Smith, 1946).According to this theory, it could be assumed that history was shaped solely 17

through the efforts of great men such as Moses, Churchchill, and Lenin( Bass ,1981). In his study of 14 nations over a long period of time, Woods (1913) mentioned the influence of the man in the making of a nation. He postulated that the man shaped the nation in accordance with his abilities. The Great Man Theory, like others, is not without weaknesses. Among other critics, Smith (1964) criticized the theory in several ways. First, he asserted that great leaders do not have universal traits in common. Second, he asserted that different traits are demanded and valued by different societies. Smith argued further that in the same society, different organizations demand different traits and that within an organization different department would demand different traits. 2.2.2Trait Theory During the first

half of the 20th century, trait theory was considered to be the

dominant theory of leadership (Chemers, 1997; Gordon, 1981).The trait approach sought to determine the personal, psychological, and physical traits of strong leaders. The theory held that if leaders were endowed with superior traits or characteristics that differentiated them from their followers, it should be possible for these traits or characteristics to be isolated (Bass, 1981). In a classic review of the literature on leadership, Stogdill (1948) reviewed 124 studies of leadership traits. The purpose of the review was to examine the relationship between the traits approach and effective leadership. As a result, Stogdill found that there were some characteristics (intelligence, physical, social background, personality, and task-related characteristics) that could be used to distinguish leaders from nonleaders. His results revealed little or no link between other characteristics and effective leaders. They also led to Stogdill to the realization of the importance of

18

situational variables in determining effective leadership. In general, Stogdill‘s conclusion did not support the study of trait theory as the sole approach to leadership research. He concluded that: A person does not become a leader by virtue of the possession of some combination of traits, but the pattern of personal characteristics of the leader must bear some relevant relationship to the characteristics, activities, and goals of the followers. Thus, leadership must be conceived in terms of the interaction of variables which are in constant flux and change. The persistence of individual patterns of human behaviour in the face of constant situational change appears to be the primary obstacle encountered not only in the practice of leadership, but in the selection and placement of leaders. (pp. 63-64). The work of Stogdill and other researchers weakened the argument that trait theory is a complete explanation of leadership. Hollander and Julian (1969) also criticized trait theory because of its failure to determine the most important traits that could be associated with effective leadership. In their argument, they also posited that leadership effectiveness is not totally dependent on personality factors and that many other factors, including situational factors, are also important. Gordon (1981) summarized numerous studies that placed emphasis on leadership traits, citing their inability to totally explain leadership success. Goulder (1950) reduced the downfall of the trait approach to two key factors. First, leadership traits that were common to all good leaders could not be identified. Secondly, it could not be documented that leaders possess a set of characteristics that are not also possessed by followers. The numerous shortcomings of the trait approach led many researchers to try to find a better explanation of leadership ability (Griffin, 1990). Consequently, in the early

19

1950s, researchers had changed their focus from studying the personal characteristics of leaders to the study of leader‘s observable behaviours (Schermerhorn et al., 1982).Even so; this shift in the focus of research did not lead to the complete demise of the trait theory school. The theory is still considered and applied in research in the 1990s (Bryman, 1996). 2.2.3 Behavioural Theory During the 1950s, once researchers observed that the trait theory was not an adequate approach to explain leadership effectiveness, they started to focus on behavioural traits of leaders. Specifically, they began to focus on ―what the leader does and how he or she does it‖ (Ivancevich et al., 1977, p. 277). This approach assumed that successful leaders with a particular style of behaviour were expected to be fruitful for leading persons and groups toward the achievement of specific goals, which consequently led to high productivity and morale (Ansari, 1990). The behavioural approach simply aimed to identify certain kinds of behaviours that leader‘s exhibit and to determine the effects of such behaviours on subordinates. A composite of these behaviours is referred to as leadership style. Ultimately, researchers were able to isolate two contrasting styles of the behaviours of leaders, variously called initiating structure versus consideration, autocratic versus democratic, task-oriented versus socio-emotional, or production-cantered versus employee- centred( Trice et al., 1993). Robbins (1994) observed that behavioural style was the focus of a number of studies in the decade of the 1950s. The following sections include reviews of the more popular studies that were conducted at Ohio State University and the University of Michigan. The Managerial Grid developed by Blake and Mouton is also included.

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2.2.3.1The Ohio State University Studies By the late 1940s, some of the most widely known studies had been conducted by researchers at Ohio State University (OSU). The purpose of their studies was to determine the types of behaviours leaders display and to determine the effects of leadership style on work-group performance and satisfaction (Fleishman, 1957). At the beginning, researchers developed a list of more than 1,000 leadership behaviours. By using statistical analyses, this list was eventually narrowed into two categories, initiating structure and consideration (Robbins, 1994).Initiating structure refers to the behaviour that is concerned with defining and organizing the work, work relationships and goals. Consideration refers to the behaviour that is concerned with mutual trust, respect, and rapport between the leader and his subordinates. A leader of the consideration category was described as one who frequently takes care of the needs of subordinates. A leader of the consideration category was described as one who frequently takes care of the needs of subordinates. A leader of the consideration category was described as one who frequently takes care of the needs of subordinates. A leader in the initiating category was described as one who was frequently concerned with structure, task, and routine (Reitz, 1981). In these studies of the behaviours of leaders, researchers at OSU could not adequately identify the most effective leadership style. Moreover, the belief that a high consideration and a high initiating structure lead to effective leadership could not be proved true in all studies. The results varied, and no single style emerged as the best. As a result, this approach also received much criticism from researchers in the field. However, despite obvious weaknesses, the importance of these efforts should not be diminished. The contributions of OSU provided significant building blocks in the evolution of a theory that allowed for describing the behaviours of leaders. Indeed, 21

these studies served as the foundation upon which later research was built (Ivancevich et al., 1977). 2.2.3.2 University of Michigan Studies At the same time that the OSU researchers were conducting studies in leadership, other studies on the same topic were in progress at the University of Michigan (UM). The studies at UM sought to identify styles of leadership that resulted in increased work-group performance and satisfaction. Similar to OSU, the UM‘s researchers developed two distinct styles of leadership labelled as production-centred and employee-centered leadership styles (Ansari, 1990). The Michigan studies revealed that leaders with a production-centered leadership style emphasized close supervision, legitimate and coercive power, routine, and performance. This style was viewed as similar to the OSU dimension of initiating structure. Leaders with an employee-centered leadership style were described as more concerned about their subordinates as people. These leaders recognized the needs of followers, such as welfare, advancement, and growth. Similarly, the OSU dimension of consideration described like behaviours (Ivancevich et al., 1977).University of Michigan researchers concluded that the employee-oriented leadership style would lead to higher productivity and higher job satisfaction and that the productionoriented leadership style would lead to lower productivity and lower job satisfaction (Robbins,1994). As with their precursors, these studies were not above criticism. Hill (1973) proposed that there was evidence to support the idea that the behaviour of a leader varied from situation to situation. From these studies, another branch of leadership research emerged-situational theories.

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2.2.3.3 Managerial Grid Another influential behavioural approach to leadership/management is the Managerial Grid developed by Blake and Mouton (1964). This model focuses on task (production) and employee (people) orientations of managers, as well as combinations between the two extremes. A grid with concern for production on the horizontal axis and concern for people on the vertical axis plots five basic management/leadership styles (see Figure 2). The first number refers to a leader's production or task orientation and the second, to people or employee orientation. It was proposed that ‗Team Management‘ - a high concern for both employees and production - is the most effective type of leadership behaviour.

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

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2.3 Situational Leadership Style Theories In the 1960s, behavioural theories were found to be insufficient approaches for studying leadership (Ivancevich et al., 1977). By this time, researchers had come to recognize that situational factors such as characteristics of leaders and subordinates, the nature of the task, and group characteristics must be considered in the study of leadership effectiveness (Ansari, 1990). The implication was that the determination of successful leadership behaviour depended on the situation (Schermerhorn et al., 1982). Situational or contingency theories held that there was no universal leadership behaviour that could be applied to all situations. The current review will highlight the main contingency theories: Fiedler‘s Contingency Theory, Path-Goal Theory, and the Vroom-Yetton Model. 2.3.1 Fiedler‟s Contingency Theory The first comprehensive contingency leadership theory was developed by Fred Fiedler. The basic tenet of the theory is that group effectiveness is dependent upon the proper match between the leader‘s personality or style and the demands of the situation. The model further suggested that task-oriented and employee-oriented were the two major styles of leadership. To determine whether the leader was task-oriented or employee oriented, Fiedler developed an instrument called the Least-Preferred Coworker (LPC) Questionnaire (Fiedler, 1967). To arrive at an LPC score, the leader is asked to think of the person with whom he or she has worked least well in accomplishing some task, using a series of bipolar adjectives rated on an 8-point scale (e.g., friendly-unfriendly, pleasant-unpleasant). A high LPC leader who describes his least preferred co-worker in relatively positive concepts is people-motivated. A low LPC leader who uses relatively negative concepts is task-motivated (Siegel & Lane,

24

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

favourable and

unfavourable situations. Also, Fiedler assumes that

employee-oriented leaders will be more effective in situations of moderate favourability than in situations at either extreme. Favourableness was defined by Fiedler as the degree to which the situation enabled the leader to exert influence over his group. According to this definition, situational favourableness consists of three elements: (1) affective leader-member relations, which refers to the degree of personal relationship between the leader and group members; (2) task structure, which refers to the extent to which the task requirements are clear and spelled out; and (3) leader position power, which refers to the degree to which the leader has authority to reward or to punish followers (Fiedler, 1967). Bryman (1996) pointed out that Fiedler viewed these elements as changeable and viewed a person‘s personality as an unchangeable factor. Therefore, the theory resolved that the work situation must be changed to fit the leader rather than the opposite. Although many researchers considered the work of Fiedler as a major contribution to leadership studies, the theory faced criticism (Behling & Schriesheim, 1976).For one thing, the validity of the model was questioned. The inconsistency between the results and the model was noted (Bryman, 1986). 2.3.2 Path-Goal Theory Path- Goal theory is a contingency model of leadership developed by Robert House and based on the works of the expectancy theory of motivation and on the work of the OSU group. This theory was promoted as an approach that could explain how a leader might successfully enhance the satisfaction and performance of his subordinates. The

25

term path-goal is used to indicate the role of a leader in making an effective link between the follower‘s personal goals and the work goals (House, 1971). The theory was built upon two propositions. The first proposition was that the behaviour of the leader would be acceptable and satisfying to subordinates to the extent that the subordinates perceived it as either an immediate source of satisfaction or as an instrumental source to future satisfaction. The second proposition was that the behaviour of the leader would be motivational to the extent that (a) it made the satisfaction of subordinates contingent upon effective performance and (b) that it complemented the work environment of subordinates by providing guidance, clear direction, support, and reward for effective performance. For the purpose of testing these propositions, House devised four types of leader behaviour: (a) directive, (b) supportive, (c) achievement-oriented, and (d) participative. According to House, the use of any of these types of leadership would be situation-dependent. 2.3.3 The Vroom –Yetton Model Vroom and Yetton (1973) developed a model that was designed to help a leader through a rational process to choose an appropriate leadership style that fits with a given situation. The basic premise of the model is that the degree to which the leader should share decision- making power with subordinates depends on the situation. The model identified five leadership styles, each of which reflects a behavioural option for the leader: AI:

The leader makes the decision alone.

AII: The leader asks for information from subordinates but makes the decision alone. Subordinates may or may not be informed about the situation.

26

CI:

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

for information and evaluation, but the leader alone makes the decision. CII: The leader and subordinates meet as a group to discuss the situation, but the leader makes the decision. GII: The leader and subordinates meet as a group to discuss the situation, and the group (which includes the leader) makes the decision. Vroom and Yetton (1973) argued that the ultimate effectiveness of decisions could be judged on the following factors: (1) the quality or rationality of the decision, (2) the acceptance of the decision by employees, and (3) the amount of time required to make the decision. The model has been criticized as complex and cumbersome (Field, 1979). However, the work of Vroom and Yetton has been supported by some researchers and considered as a useful approach of leadership (Landy, 1985; Schermerhorn, Jr., 1982). 2.4 Recent Theories of Leadership Styles A new theory of leadership emerged in the 1970s. Transactional and Transformational leadership styles were first introduced by Burns (1978). A few years later, Bass (1985) expanded the theory and came up with the Multifactor Leadership Questionnaire (MLQ). The full range of leadership models that was introduced by Avolio and Bass (1991) gave more advancement to the theory. This theoretical model included three styles of leadership: (a) transactional, (b) transformational, and (c) Laissez- Faire. According to Hartog et al. (1997), Bass‘s theory or the new leadership approach ―integrates ideas from trait, style, and contingency approaches of leadership and also incorporates and builds on work of sociologists such as Weber (1947) and

27

political scientists such as Burns (1978)‖(P.19).The three styles of leadership mentioned above are essential elements in this research and are discussed in greater detail below. 2.4.1Transactional and Transformational leadership Styles In distinguishing between transactional and transformational leadership.Burns (1978) noted that transactional leadership refers to a type of leadership that is based on an exchange relationship between leader and follower.Burns felt that this exchange could take different economic, political, or psychological forms. Such leadership, he argued, does not bring leaders and followers together to pursue higher purposes. According to Bass (1990), transactional focus on the clarification of task requirements and the specification of contingent rewards. Transformational leaders interact with their followers in such a way that both leader and followers raise each other to higher levels of motivation and morality (Burns, 1978).In Leadership and Performance beyond Expectations, Bass (1985) expanded the theory of transactional and transformational leadership. While Burns (1978) had focused on the application of the theory in political setting, Bass (1985) was concerned with its application to business organisations. According to Bass (1985), transformational leaders are those who motivate followers to do more than originally was expected. That could be achieved, Bass argued,through anyone of the following steps: (1) increasing followers awareness and consciousness of the importance of designated outcomes and the steps that lead to these outcomes, (2) encouraging followers to transcend their own self interests , and (3) expanding or altering followers needs and wants according to Maslow‘s Hierarchy of Needs .In distinguishing between the Burns and Bass theories of transformational leadership ,Carlson and Perrewe (1995) stated that:

28

“The main difference between these two theories was that Burns restricts this type of leadership only to leaders who appeal to positive moral values. On the other hand, Bass argues that a transformational leader is one who increases commitment regardless of the final effect on the follower. Regardless, when transformational leadership is enacted, members of organisations no longer seek merely self interest, but that which is beneficial to the organisation as a whole.”(p.832) Fiedler and House (1988) proposed that transformational theories seek to address the actions of leaders that cause followers to change their values, needs, goals, and aspirations. In making the distinction between transactional and transformational leadership forms, Burns (1978) viewed these leadership forms as independent dimensions. In other words, Burns (1978) viewed Transactional and Transformational forms of leadership as polar constructs while Bass (1985) viewed them as complementary constructs. Bass viewed successful leaders as both transactional and transformational who differ in degrees. In his conclusion, Bass expressed the notion that ―to be transactional is the easy way out; to be transformational is the more difficult path to pursue‖ (p.26) Transactional behaviours involve structuring performance environment to assist subordinates in achieving organizational objectives and receiving rewards, while transformational behaviours focus on creating changes in followers` values, selfperceptions, and psychological needs (Fein et al, 2010). Generally speaking, studies conducted on transactional and transformational leadership have added important value into the nature of leadership effectiveness. In this content, the researcher should differentiate between two concepts: transactional leadership and transformational leadership. In fact transactional leadership is a

29

process in which the relationship leader-follower is reduced to simple exchange of a certain quantity of work for an adequate price. Contrary to this, transformational leadership is far more complex process, the realization of which requires more visionary and more inspiring figures (Bowditch and Buono, 1990). Different empirical studies have been conducted to support the effects or transformational leaders‘ behaviours. A previous study showed that transformational leadership is positively related to employee satisfaction and to job performance (Bass, 1995). Ozaralli (2003) found that transformational leadership contributes to the prediction of subordinates‘ self-reported empowerment. Transformational leadership enhances organizational citizenship behaviours (Koh et al, 1995) and employees‘ commitment (Barling et al, 1996). In addition, transformational leadership mediates the relationship between leaders‘ emotional intelligence and group cohesiveness (Wang and Huang, 2009). 2.4.2 Transactional Leadership Style Dimensions Bass (1989) suggested that transactional leadership involves two distinct dimensions: (1) the use of contingent rewards, which implies that leaders reward followers in exchange for attaining the specified performance levels; and (2) management by exception (MBE), which has the dimensions of Active and Passive. In Active MBE, leaders monitor their follower‘s performances and take corrective actions as necessary. In Passive MBE, leaders do not intervene until mistakes or problems occur, then leaders take corrective actions. 2.4.3 Transformational Leadership Style Dimensions

30

In 1995, a new version of the Multi-factor Leadership Questionnaire (MLQ) was developed to measure transactional, transformational, and laissez-faire styles of leadership. For this version, Bass and Avolio (1995) listed five dimensions that refer to transformational leadership characteristics. The term ‗transformational leadership‘ was first coined by Downton [20], and then emerged as an important approach to leadership research by Burns [9]. Based on these early works, several theories of transformational leadership [6, 10] were generated to advance this new leadership concept. These works broadened the traditional concept of leadership as a relationship of economic exchange that offers rewards or compensation for a desired behaviour by viewing leadership as a change process and by exploring the impact of leader behaviour on followers‘ values, beliefs and higher-order needs [11]. Specifically, Bass [6] described transformational leadership as leader behaviours that stimulate and inspire followers to achieve extraordinary outcomes by raising the level of motivation and morality in both themselves and their followers. Transformational leaders are effective in promoting organizational commitment by aligning goals and values of the follower, the group, the leader, and the organization [10, 12, and 21]. Its strong, positive effects on followers‘ attributes and commitment will then motivate followers to reach their fullest potential and exceed expected performance [11]. Bass and his colleagues further conceptualized transformational leadership into four components: idealized

influence;

inspirational

motivation;

intellectual

stimulation;

and

individualized consideration. Each of the components helps build followers‘ commitment in different ways [6, 19, and 22]. The following texts discuss these components and their impact on followers‘ organization commitment in detail. 2.4.3.1 Idealized influence, also called charisma, describes transformational leaders who behave as role models for their followers. Followers usually perceive these 31

leaders as having extraordinary capability, persistence and determination, as well as high standards of moral and ethical conduct. They deeply admire, respect and trust these leaders, and thus identify with leaders‘ goals, interests and values [19, 21]. 2.4.3.2 Inspirational motivation occurs when leaders motivate and inspire those around them by providing challenges and meaning to their work. They provide visions of what is possible and how to attain these goals. More specifically, these leaders get followers involved in envisioning the future, and then they promote positive expectations about what needs to be done and demonstrate commitment to the shared vision[19]. With this dimension, leaders are able to promote followers‘ emotional commitment and excitement to a mission [11]. 2.4.3.3 Intellectual stimulation encourages followers to be creative and innovative. In practice, transformational leaders help others to think about old problems in new ways, and to continuously question and develop their own beliefs, assumptions and values. These leaders also jointly work with their followers to deal with problems in innovative ways. The pride in actions of all those involved and joint success in overcoming obstacles will reinforce organizational commitment of followers [11, 19]. 2.4.3.4 Individualized consideration means understanding and sharing others‘ concern and developmental needs, and treating each individual follower uniquely. Leaders act as coaches and advisors to not only identify and satisfy each individual follower‘s current needs, but also to attempt to expand and elevate the needs in order to assist followers become fully actualized. By emphasizing on followers‘ personal career needs and providing them with a sense of increased competence to carry out duties, leaders could further enhance followers‘ commitment [10, 11]. A number of studies have empirically validated the positive effects of transformational leadership on followers‘ organizational commitment. For example, transformational leadership

32

was found to be significantly related to organizational commitment and organizational citizenship behaviour in a study of 864 teachers in Singapore [15]. Rai and Sinha [23] conducted a test of 261 middle managers from public banking sector in India, and identified that managers‘ score on transformational leadership accounted for significant amounts of variances in their commitment to the organizations. In a similar vein, positive relationships between all components of transformational leadership and followers‘ commitment were also identified with a total of124 manager from banking and food industries in U.S. [14]. 124 managers from banking and food industries in U.S. [14] in the context of family business, however, little empirical evidence has been provided to support the positive relationship between transformational leadership and followers‘ organizational commitment [16]. Transformational leaders have charisma, inspiration and intellectual simulation, inspiration and intellectual simulation (Conger, 1999). Charisma generates the pride, faith and respect that leaders encourage their workers to have in themselves, their leaders and their technological organization, while inspiration is the ability to motivate followers through communication of high-technological expectations (Garcia-Morales, Matias-Reche and Hurtado- Torres, 2008). Intellectual simulation refers to the leaders‘ behaviour that leads to promoting employees' intelligence, knowledge and learning so that they can be innovative. Transformational leaders have charisma, inspiration and intellectual simulation, inspiration and intellectual simulation (Conger, 1999). Charisma generates the pride, faith and respect that leaders encourage their workers to have in themselves, their leaders and their technological organization, while inspiration is the ability to motivate followers through communication of high-technological expectations (Garcia-Morales, Matias-Reche and Hurtado- Torres, 2008). Intellectual simulation

33

refers to the leaders‘ behaviour that leads to promoting employees' intelligence, knowledge and learning so that they can be innovative. Transformational leader raises aspiration and shifts people and organizational systems into new, high-performance patterns. The presence of transformational leadership is reflected in followers who are enthusiastic about the leader and her or his ideas (Schermerhorn, 2008). Furthermore, transformational leaders inspire their followers to think more than their own aims and interests and to focus on greater team, organizational, national, and also global objectives (Jandaghi et al, 2009). While transactional and transformational leaders were described as active leaders (Yammarino & Bass, 1990), laissez- faire leaders were viewed as inactive. Laissezfaire leaders are characterized by avoiding responsibility and decision–making. Although such a style under certain conditions (for example, with a group of scientists or college professors) will be effective (Sutermeister, 1969; Williams, 1978), it was thought that this particular style of leadership indicated, in fact, the absence of leadership. Therefore, this type of leadership was considered to be an inappropriate way to lead (Hartlog et al., 1997). 2.4.4 Laissez-Faire Leadership Style While transactional and transformational leaders were described as active leaders (Yammarino & Bass, 1990), laissez-faire leaders were viewed as inactive. Laissezfaire leaders are characterized by avoiding responsibility and decision–making. Although such a style under certain conditions (for example, with a group of scientists or college professors) will be effective (Sutermeister, 1969; Williams, 1978), it was thought that this particular style of leadership indicated, in fact, the absence of leadership. Therefore, this type of leadership was considered to be an inappropriate way to lead (Hartlog et al., 1997). 34

2.5 Transformational Leadership Style and Employee Commitment Organization will be higher, Lio (1995) concluded that ―workers‘ organizational commitment is significantly correlated to their perceived job security‖ (p.241). Management styles can influence the commitment level of employees. Koopman (1991) studied how leadership styles affected employees and found those employees who favoured their manager‘s style also favoured the organization more. Though there was no direct connect between commitments, it could be argued that this would then affect their levels of commitment to the organization. Nierhoff et al (1990) found that the ―overall management culture and style driven by the top management actions are strongly related to the degree of employee commitment‖ (p. 344). These correlations bring to light the importance of having strong managers and their roles in the overall organization. Eisenberger et al (1990) discuss that those employee‘s who feel that they are cared for by their organization and managers also have not only higher levels of commitment, but that they are more conscious about their responsibilities, have greater involvement in the organization, and are more innovative. Managers and organizations must reward and support their employees for the work that they do because this perceived support allows for more trust in the organization. 2.6 Summary of Leadership Style Theories Since the 18th century, leadership has been a subject of interest. However, the field of leadership had not been scientifically studied until the early 20th century. Early research on leadership attempted to identify leadership through a theoretical approach. The Great Man Theory assumes that leaders are endowed with unique qualities not to be found among the masses. The trait theory, which was considered to be the 35

dominate theory of leadership during the first half of the 20th century, sought to determine the personal, psychological, and physical traits of strong leaders. During the 1950s, the theoretical approach was abandoned due to its inability to explain leadership effectiveness. As a result, the behavioural theory represented by the studies of Ohio State University and the University of Michigan had taken place. The behavioural approach simply aimed to identify certain kinds of behaviours that leader‘s exhibit and to determine the effects of such behaviours on subordinates. In the 1960s, leadership researchers focused their attention on the situational factors and their effects on leadership effectiveness. Situational or contingency theories held that there was no universal leadership behaviour that could be applied to all situations. The full range of leadership that included three styles (transformational, transactional, and laissez-faire) is a recent development in the field. This approach integrated ideas from trait, behavioural, and situational theories and built on these. Transformational leaders inspire followers to rise above self-interest for the greater good of the group and to do more than originally was expected. Transactional leaders focus on the clarification of task requirements and the specification of contingent rewards. 2.7 Theoretical Framework on Leadership Style The broad fields of this research are Transformational and Transactional leadership. The transformational leadership has five dimensions or factors that build the subject and transactional leadership has 3 dimensions or factors that build the subject .(The five factors of transformational leadership styles are: Idealized influence {attributes and behaviours}, inspirational motivation, intellectual stimulation, encourage innovative thinking and individualized consideration). (The three factors of transactional leadership are: MBE-A: Management-By-Exception: Active, MBE-P: Management-By-Exception: Passive and CR: Contingent Reward). 36

The dependent variable ―employee commitment‖ relies on the factors of transformational and transactional leadership, which are the independent variables in the Research Study. In today‘s competitive world, it is difficult for organization to compete or even to survive without satisfying the most valued asset of the organization and deriving commitment of the employees towards their Leader and organization. Since yet more emphasis has been given to the outcome of transformational and transactional leadership and less to the demographic variables which plays the role of another set of independent variables. Hence, investigation of subordinate‘s commitment with the leader and in turn towards the organization from the perspectives of these two leadership styles is central to this research. Model of theoretical framework on Leadership Styles

Factors

Transformational Leadership Style

Determinants

IA

Builds Trust

IB

Acts with Integrity

IM

Inspires others

IS

Innovative thinking

IC

Coaches’ people

EMPLOYEE COMMITMENT

Determinants

Transactional Leadership Style

Factors IS MBE-P IC MBE-A CR

Passive/Avoidant Active Close monitoring of behaviours and actively setting standards.

CR

Figure 3. Source: Based on the concepts of Bass and Riggio, 2006

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2.8 Leadership styles within academic institutions: According to Bryman (1992), transformational form of leadership has only recently become the subject of systematic inquiry in educational contexts, although it has been studied extensively within business settings. The studies of leadership within an educational context are important for several reasons. Educational institutions, especially Higher Education Institutions, which use public funds, are under scrutiny and are pressurized to produce value for money performance (Bess and Goldman,2001; Pounder 2001). Expectations are that these institutions should operate as ―business units‖ making profit. This has led to a tendency to transfer commercial business models into the educational arena. As Bess and Goldman (2001) have put it, a new managerial culture, which promotes economic efficiency and bottom line results, dominates both policy and practice often overriding most concerns for social goals, quality of teaching and research and internal human relations, is being adopted in higher education. As a result leaders within academic institutions struggle to respond to business interests as secondary to academic freedom. As a sub-discipline or content area of leadership studies, educational leadership is still in its infancy. Most of the empirical studies conducted have been done in schools with a limited number of studies concentrating on higher education (Brown & Moshavi, 2002). While it is acknowledged that the organizational cultural legacies and leadership within schools and higher education institutions may be different, Bess and Goldman (2001) point out that professor and teachers have much in common. Both do work with a significant cognitive and intellectual content, and have substantial independence and autonomy where they work closely with students and associates

38

with their own peers. Professors and teachers enjoy a tenure system that provides job security and a buffer that characterizes their profession and the leadership context. Based on Bess and Goldman‘s (2001) arguments, it is assumed that the common goal of education pursued by both types of institution might allow for comparisons or generalizations from one to another. Educational leadership researchers have drawn selectively from the broader perspectives or approach to leadership and concentrated mainly on transformational and charismatic leadership. A review of the literature indicates a limited number of papers focusing on the efficacy of transformational and transactional leadership in the context of higher education. In a study of principals of 89 high schools, Koh, Steers and Telborg (1995), found that transformational leadership behaviours hold an additive effect on outcomes such as satisfaction and effectiveness. In a more recent study of 440 university faculty members, Brown and Moshavi (2002) showed that the idealized influence or charisma factor of transformational leadership was significantly predictive of desired organizational outcomes. Using the MLQ, they found that the aggregated measure of transformational leadership is significantly related to the faculty‘s satisfaction, their perceptions of their organization‘s effectiveness and their willingness to give extra effort. Other authors who also believed that leadership is essential in educational institutions include Rowley (1997) argues that the type of leadership exercised in academic institutions, which is academic leadership, is unique to higher education. He indicates that this leadership extends beyond the organization into the wider community served by higher education and is central to academic excellence. Such Leadership is important in managers at all levels in higher education and is not only vested in top management. 39

Ogshabemi (2001) looked at the level of satisfaction that academics derive from the behaviour of their line managers. Line managers in higher education could be of head of the department, a dean of a faculty, director of a school or unit or the Vice chancellor of the institution. He found that approximately half (52.4%) of university teachers are satisfied with the behaviour of their line managers while about a third (34.4%) is dissatisfied. Through regression analysis, he found that the age and the length of service in higher education were important in explaining an academic‘s satisfaction or dis-satisfaction with the behaviour of their line managers. The literature review of leadership in academic institution indicates that leadership is as essential as it is in other organizations and that it has an influence on employee‘s work attitudes. 2.9 Employee Commitment: No organizations in today‘s competitive world can perform at peak levels unless each employee is committed to the organisation‘s objectives and work as an effective team member. It is no longer good enough to have employees who come to work faithfully everyday and do their jobs independently. Employees now have to think like entrepreneurs while working in teams, and have to prove their worth. However they also want to be a part of successful organisation which provides a good income and the opportunity for development and secured employment. In the past, organizations secured the loyalty of their employees by guaranteeing job security. However many organizations have responded to competitive pressures by downsizing, restructuring and transformation and thus created a less secure organizational climate. A growing number of employees therefore feel that they are victims of broken promises. One of the challenges facing modern organizations 40

involves maintaining employee commitment in the current business environment. These organizations can achieve by developing a new ―work contract‖. In today‘s workplace, employees face more ambiguity in their daily activities and decreased job security (Bergmann, Lester, De Meuse and Grahn, 2000). With no assurance of continued employment, workers have now raised their expectations in other areas. For instance, the employees expect employer to demonstrate their commitment in terms of pleasant working conditions, access to training and development, provision of a safe working environment and a balance between work and employee‘s commitment outside the workplace. Organizations are faced with ever increasing competition and as they prepare for new challenges, one of the key components of survival is maintaining and upgrading the organization‘s ability to use human resources effectively and efficiently. According to Katz (1964), employee behaviour essential for organizational effectiveness includes employee‘s (1) entering and remaining with the organisation, (2) carrying out specific role requirements and (3) engaging in innovative and spontaneous activity that goes beyond role prescriptions. The appointment of good workers is thus critical, but of even greater significance is the organisation‘s ability to create a committed workforce. Hence the need for managers to understand the concept of commitment – what it is how it operates, and most importantly, which behaviours are displayed by employees committed to the organisation? The importance of employee commitment is quite evident if one considers prior research into the relationship between commitment and job satisfaction (Bateman and Organ, 1983), trust in and loyalty to the leader (Deluga, 1994) and perception of supervisor‘s fairness (Nierhoff & Moorman 1993). It is an important concept in the management and behavioural sciences. It is concerned with the relationship between 41

an organization and its employees. The roots of organizational commitment of employees go back to the human relations movement of the early to mid-20th century. At that time, the concept was reflected in focusing on the feelings and behaviours among employees toward the organizations they worked for (Baruch, 1998). The importance of organizational commitment of employees refers to its presumed relationship with important organizational outcomes such as turnover, absenteeism, and performance (Mowday, Porter, & Steers, 1982). Committed employees are expected to identify with and to feel loyal toward their organization; to feel the importance of the agency‘s values, goals, and mission; and also to feel that their job responsibilities are compatible with their personal values and ethics (Romzak, 1990). It has been reported that ―Organizational commitment should be of great interest to managers, because employees with strong commitment tend to be highly productive and loyal, while those with low levels tend to have higher incidence of turnover, absenteeism, stress-related health claims, and other workplace problems‖ (Ward & Davis, 1995, p.35). In addition to all of this, committed employees are thought to act without basing their actions on any calculation of what they have invested. Committed employees are also thought to believe that the values they share with the organization will provide them with a sense of personal satisfaction (Romzek, 1990).Buchanan (1974a) viewed commitment as ―no less than a precondition for successful social organization‖ (p.340). In general, for both individuals and agencies, employee commitment is believed to be a positive factor (Romzek, 1990). Many authors associate the development of organisational commitment

with

variables such as the personal characteristics of the employee, organisational characteristics and work characteristics (Mowday et al.,1979; Nijhof et al., 1992).The influence of personal characteristics

on organisational commitment

has been 42

extensively studied with the focus on demographic variables such as age, gender, occupational status, length of service, salary, internal promotion period, marital status, educational level,( Nijhof et al .,1992). The organisational characteristics that have been studied include leadership and management style and various Demographic details. In our attempt to understand organisational commitment, we need to understand how these various variables fit together and lead to the development of organisational commitment. In the literature, there is no universal definition of organizational commitment of employees. Researchers with different theoretical perspectives have defined the concept of employee commitment in various ways. Buchanan (1974b) observed that there is little consensus about the definition of commitment or its measurement. Morrow (1983) reviewed the literature on commitment that has been written since 1965 and found more than 25 employee commitment concepts and measures. Grouping these concepts and measures, Morrow discerned five distinct types: commitment to work, the organization, the job, the career, and the union. The present study was concerned with only commitment to the organization. Organizational researchers agree that a consensus has not yet been reached over the definition of organizational commitment of employees (Scholl, 1981; Benkhoff, 1997a; Mowday 1998; Suliman and Isles, 2000a, 2000b; Zangaro, 2001). Scholl (1981) indicates that the way employee commitment is defined depends on the approach to commitment that one is adhering to. Accordingly employee commitment is defined either as an employee attitude or as force that binds an employee to an organization. According to Suliman and Isles (2000a), there are currently four main approaches to the conceptualization and exploring organizational commitment. There

43

is the attitudinal approach, the behavioural approach, the normative approach and the multi-dimensional approach. Mowday et al. (1979) pointed out that most researchers‘ defined organizational commitment in terms of either a behavioural perspective or an attitudinal perspective. Alpander (1990) distinguished between the attitudinal and behavioural approaches to commitment and described how commitment has been viewed differently from the two perspectives. The former, Alpander (1990) argued, views commitment as an internal state, but the latter views it as ―the state of being bound to the organization by personal investment‖ (p.53). Mowday et al. (1982) proposed that a cyclical relationship exists between the two types in which commitment attitudes lead to committing behaviours which, in turn, reinforce commitment attitudes. An important observation is that, throughout the literature, commitment has been viewed as a more active and positive attitude toward the organization from both perspectives (Johnston et al., 1990).This study focused on employee commitment as an attitude. The attitudinal approach views commitment largely as an employee attitude or more specifically as a set of behavioural intentions. The most widely accepted attitudinal conceptualization of organizational commitment is that by Porter and his colleagues who define organizational commitment is that by Porter and his colleagues who define organizational commitment as the relative strength of an individual‘s identification with and involvement in a particular organization (Mowday et al., 1979).They mention three characteristics of employee commitment: (1) a strong belief in and acceptance of the organization‘s goals and values, (2) A willingness to exert a considerable effort on behalf of the organization and (3) a strong intent or desire to remain with the organization. Within this approach, the factors associated with commitment include positive work experiences; personal characteristics and job 44

characteristics while the outcomes include increased performance, reduced absenteeism and reduced employee turnover. The second approach refers to organizational commitment of employee‘s behaviour (Suliman and Isles, 2000b; Zangaro, 2001). The focus of research according to the behavioural approach is on the overt manifestations of commitment. The Behavioural approach emphasizes the view that an employee continues his/her employment with an organization because investments such as time spent in the organization, friendships formed within the organization and pension benefits, tie the employee to the organization. Thus an employee become committed to an organization because of ―sunk costs‖ that is too costly to lose. Becker‘s (1960) side bet theory forms the foundation of this approach. According to him employee commitment is continued association with an organization that occurs because of an employee‘s decision after evaluating the costs of leaving the organization. He emphasizes that this commitment only happens once the employee has recognised the cost associated with discontinuing his association with the organization. In a similar vein, Kanter (1968) defined organizational commitment as ―profit‖ associated with continued participation and a ―cost‖ associated with leaving. That is, an employee stands to either profit or lose depending on whether he/she chooses to remain with the organization. Whereas the attitudinal approach uses the concept of commitment to explain performance and membership, the behavioural school uses the concept of ―investments‖ as ―a force that ties employees to organizations‖, to explain organizational commitment (Scholl, 1981). The Normative approach is the third approach, which argues that congruency between employee goals and values and organizational aims make the employee feel obligated to his/her organization (Becker, Randall, & Reigel 1995).From this point of view, 45

organizational commitment has been defined as ―the totality of internalized normative pressures to act in a way which meets organizational goals and interests‖ (Weiner, 1982). The last approach, the multidimensional approach, is relatively new. It assumes that organizational commitment is more complex that emotional attachment, perceived costs or moral obligations. This approach suggests that organizational commitment develops because of the interaction of all these three components. Several studies according to Suliman and Isles (2000b) have contributed to this new conceptualization of organizational commitment. They credit Kelman (1958) as the earliest contributor to the multidimensional approach. Elman lay down the foundation for the multidimensional approach when he linked compliance, identification and internalisation to attitudinal change. Another earlier contributor is Etzioni (1961) who, as cited by Zangaro (2001), describe organizational commitment in terms of three dimensions;

moral

involvement,

calculative

involvement

and

alimentative

involvement, with each of these dimensions representing an individual‘s response to organizational powers. Moral involvement is defined as a positive orientation based on an employee‘s internalisation and identification with organisational goals. Calculative involvement is defined as either a negative or a positive orientation of low intensity that develops due to an employee receiving inducements from the organization that match his/her contributions. Alienative involvement on the other hand is described as a negative attachment to the organization. In this situation, individuals perceive a lack of control or of the ability to change their environment and therefore remain in the organization only because they feel they have no other options. Etzioni‘s three dimensions incorporate the attitudinal, behavioural and normative aspects of organizational commitments of employees. 46

O‘Reilly and Chatman (1986) also support the notion that organizational commitment should be seen as the multi-dimensional construct. They developed their multidimensional approach based on the assumption that commitment represents an attitude toward the organization, and the fact that various mechanisms can lead to attitudes development of attitudes. Taking Kelman‘s (1958) work as their basis, they argue that commitment could take three distinct forms that they called compliance, identification and internalisation. They believed that compliance would occur when attitudes and corresponding behaviours are adopted in order to gain specific rewards. Identification would occur when an individual accepts influence to establish or maintain a satisfying relationship. Lastly, internalization would occur when the attitudes and behaviours that one is encouraged to adopt are congruent with one‘s own values. The most popular multi-dimensional approach to employee commitment is that of Meyer and his colleagues. In 1984, Meyer and Allen, based on Becker‘s side-bet theory, introduced the dimension of continuance commitment to the already existing dimension of affective commitment. As a result, organizational commitment of employees was regarded as a bi-dimensional concept that included an attitudinal aspect as well as behavioural aspect. In 1990 Allen and Meyer added a third component, normative commitment to their two dimensions of organizational commitment. They proposed that commitment as a psychological attachment may take the following three forms: the affective, continuance and normative forms. Meyer and Allen (1984) defined affective commitment as ―an employee‘s emotional attachment to, identification with, and involvement in the organization‖, continuance commitment as ―commitment based on the costs that employees associate with leaving the organization‖, and normative commitment as ―an employee‘s feelings of 47

obligation to remain with the organization‖. Each of these three dimensions represents a possible description of an individual‘s attachment to an organization. Inverson and Buttibeig (1999) examined the multidimensionality of employee commitment. Based on a sample of 505 Australian male fire fighters; they found that four dimensions that are affective, normative, low perceived alternatives, and high personal sacrifice, best represent organizational commitment. Meyer and Herscovitch (2001) have pointed out that there are differences in the dimensions, forms or components of commitment that have been described in the different multi-dimensional conceptualizations of organizational commitment. They attribute these differences to the different motives and strategies involved in the development of these multidimensional frameworks. These included attempts to account for empirical findings (Angle & Perry 1981), distinguished among earlier one dimensional conceptualizations (Allen and Meyer, 1990; Jaros, Koehler & Sincich, 1993), ground commitment within an established theoretical context (O‘ Reilly and Chatman, 1986), or some combination of these (Mayer & Schoorman 1992). Meyer and Herscovitch (2001) have tabulated these different dimensions for easier comparison as shown in Table.1 Table 1. Dimensions of Employee Commitment within Multidimensional Models 1

Angle & Perry(1981)

―Commitment to support the goals of the

Value Commitment

organizations‖.

Commitment to stay

―Commitment

to

retain

their

Organizational

membership‖. 2

O‘Reilly

and

Chapman ―Instrumental involvement for specific extrinsic

(1986)

rewards‖.

Compliance

―Attachment based on desire for affiliation with the

48

Identification

organization‖.

Internalization

―Involvement predicted on congruence between individual and organizational values‖.

3

Penley and Gould (1988)

―Acceptance

of

and

Moral

organizational goals‖.

Calculative

―A commitment to an organization which is based

Alienative

on the employee‘s receiving inducements to match

identification

with

contributions‖. ―Organizational attachment which results when an employee no longer perceives that there are rewards commensurate with investments; yet he/she remains due to environmental pressures‖. 4

Meyer and Allen (1991)

―The

employee‘s

Affective

identification

Continuance

organization‖.

Normative

―An awareness of the costs associated with leaving

emotional

with

and

attachment

involvement

in

to, the

the organization‖. ―A feeling of obligation to continue employment.‖ 5

Mayer

and ―A believe in and acceptance of organizational

Schoorman(1992)

goals and values and a willingness to exert

Value

considerable effort on behalf of the organization‖

Continuance

―The desire to

remain a member of the

organization‖. 6

Jaros et al.(1993)

―The degree to which an individual experiences a

Affective

sense of being locked in place because of the high

Continuance

costs of leaving‖.

Moral

―The

degree

psychologically

to

which

attached

an to

individual an

is

employing

organization through internalization of its goals, values and missions‖.

49

Mowday et al. (1979) pointed out that most researchers defined employee commitment in terms of either a behavioural perspective or an attitudinal perspective. Alpander (1990) distinguished between the attitudinal and behavioural approaches to commitment and described how commitment has been viewed differently from the two perspectives. The former, Alpander (1990) argued, views commitment as an internal state, but the latter view it as ―the state of being bound to the organization by personal investment‖ (p.53). Mowday et al. (1982) proposed that a cyclical relationship exists between the two types in which commitment attitudes lead to committing behaviours which, in turn, reinforce commitment attitudes. An important observation is that, throughout the literature, commitment has been viewed as a more active and positive attitude toward the organization from both perspectives (Johnston et al., 1990). This study focused on employee commitment as an attitude. One of the aims of this study is to determine how employee‘s perceptions and expectations of Leadership Styles followed by their Heads

influence their

commitment, and the meaning of the concept will therefore be explained with reference to Meyer and Allen‘s one of the three component‘s conceptualisation of organisational commitment. The importance of employee commitment, the factors affecting it and how organisations should build employee commitment will also be discussed. Organisational commitment researchers can be divided into two major camps, those who view organizational commitment as an attitude and those who view it as behaviour (Meyer & Allen 1991; Jaros et al., 1993). Meyer and Allen (1991) regard attitudinal commitment as the way people feel and think about their organisations, while behavioural commitment reflects the way individuals have become locked into the organisation. The attitudinal approach regards commitment as an employee 50

attitude that reflects the nature and quality of the linkage between an employee and an organisation (Meyer and Allen, 1991). 2.10 Conceptualization of Commitment O‘Reilly and Chatman (1986) developed their multi-dimensional framework on the basis of the assumption that commitment represents an attitude towards the organization. According to these authors, commitment takes on three distinct forms, which they labelled compliance, identification and internalisation. Compliance occurs when attitudes and corresponding behaviours were adopted in order to gain specific rewards .Identification occurs when an individual accepts influence to establish or maintain a satisfying relationship. Finally internalization occurs when influence is accepted because the attitudes and behaviours one is being encouraged to adopt are congruent with existing values. Employees thus become committed to organizations with which they share values. Figure 4 provides a schematic representation of a general model of workplace commitment.

P.T.O

51

GENERAL MODEL OF WORKPLACE COMMITTMENT.

COMMITMENT

Affective(Desire) Bases (identity relevance,shared values,personal involvment)

Normative(Obligation) - Bases(Internalizations Continuance(cost) Bases(Investment ,lack of orms,psychological contract,benefits and of alternatives) reciprocity norms)

EMPLOYEE BEHAVIOUR Figure 4. Source: Adapted from Meyer & Herscovitch (2001: 320) In conclusion, employee commitment is defined as an individual‘s identification with and involvement in a particular organization. It is characterized by a strong belief in and acceptance of the organization‘s goals and values, a willingness to exert considerable effort on its behalf, and a strong desire to maintain membership of it. 2.11 Dimensions of Employee Commitment Among the proponents of attitudinal approach, researchers have started to view employee commitment as a multi dimensional concept that has different factors associated with it, outcomes and implications for human resources management (Meyer and Allen, 1997). Meyer and his colleagues (Allen and Meyer, 1990; Meyer 52

and Allen, 1991; Meyer and Allen 1997; Meyer and Herscovitch, 2001) have been at the forefront of the multi-dimensional approach. Their three component model of organisational commitment incorporates affective, continuance, and normative as the three dimensions of organisational commitment. 2.11.1 Affective Commitment Allen and Meyer (1990) refer to affective commitment as the employee‘s emotional attachment to, identification with, and involvement in the organisation. Affective commitment involves three aspects: (1) the formation of an emotional attachment to an organization, (2) identification with, (3) and the desire to maintain organisational membership. Allen and Meyer (1990) argue that an individual will develop emotional attachment when he/she identifies with the goals of the organisation and is willing to assist the organisation in achieving these goals. They further explain that identification with an organisation happens when the employees own values are congruent with the organisational values and the employee is able to internalise the values and goals of the organisation. With this, there is a psychological identification with and a pride of association with the organisation. Jaros et al. (1993) suggest that affective commitment is the most widely discussed form of psychological attachment to an employing organisation. This could probably be because affective commitment is associated with desirable organisational outcome. Meyer and Herscovitch (2001) report that affective commitment has been found to correlate with a wide range of outcomes such as turnover, absenteeism, job performance and organisational citizenship behaviour.

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2.11.2 Continuance Commitment The next dimension of employee commitment is continuance commitment (Allen and Meyer, 1990) which is based on Becker‘s (1960) side bet theory. The theory speaks of that as an individual remains in the employment of an organisation for longer periods; they accumulate an investment, which becomes costly to lose the longer the individual is attached to the organisation. These investments includes time, job, efforts, organisational specific skills that might not be transferable or greater cost of leaving the organisation that discourage them from seeking alternative employment, work friendships and political deals. Allen and Meyer (1990) describe continuance commitment as a form of psychological attachment to an employing organisation that reflects the employee‘s perception of the loss he/she would suffer if they were to leave the organisation. They explain that continuance commitment involves awareness on the employee‘s part of the costs associated with leaving the organisation. This then forms the employee‘s primary link to the organisation and his/her decision to remain with the organisation is an effort to retain the benefits accrued. Romzek (1990) describes this type of attachment as a transactional attachment. He argues that employees calculate their investment in the organisation based on what they have put into the organisation and what they stand to gain if they remain with the organisation. For example, an individual might choose not to change employers because of the time and money tied up in an organisation‘s retirement plan. Such an employee would feel that he/she stands to lose too much if he/she were to leave the organisation.

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In addition to the fear of losing investments, individuals develop continuance commitment because of a perceived lack of alternatives. Allen and Meyer (1990) and Meyer and Allen (1991) argue that such an individual‘s commitment to the organisation would be based on his/her perceptions of employment options outside the organisation. This occurs when an employee starts to believe that his/her skills are not marketable or that he does not have the skill required to complete for the positions in the field. Such an employee would feel tied to the organisation. People who work in environments where the skills and training they get are very industry specific can possibly develop such commitment. As a result, the employee feels compelled to commit to the organisation because of the monetary, social, psychological and other costs associated with leaving the organisation. Unlike affective commitment which involves emotional attachment, continuance commitment reflects a calculation of the costs of leaving versus the benefits of staying. 2.11.3 Normative Commitment The third dimension of employee‘s commitment in an organization is normative commitment, which reflects a feeling of obligation to continue employment. Employees with a high level of Normative Commitment feel they ought to remain with the organisation (Allen and Meyer, 1990). Researchers have overlooked this view of employee commitment as relatively few studies explicitly address normative commitment. Randall and Cote (1990) Allen and Meyer (1990) and O‘Reilly, Chatman, Caldwell (1991) are some of the few who have attempted to differentiate normative commitment from the other commitments of the employee‘s organisational commitment.

55

(Randall and Cote) regard normative commitment in terms of the moral obligation the employee develops after the organisation has invested in him/her. They argue that when an employee starts to feel that the organisation has spent either too much time or money developing and training him/her, such an employee might feel an obligation to stay with the organisation. For example, an employee whose organisation paid his tuition while he/she is improving qualifications might believe that he or she can reimburse the organisation by continuing to work for it. In general normative commitment is most likely when individuals find it difficult to reciprocate the organisation‘s investment in them. 2.12 Antecedents of employee commitments The concept of employee commitment has been conceptualized and measured in different ways by many researchers. Many researchers on the topic of employee commitment have used many different variables as possible antecedents of commitment and have assigned these variables to categories (Mowday et al., 1982). Steers (1977) proposed a dichotomy that he believed explains antecedents and outcomes of organisational commitment. The argument associated with antecedents was built heavily on previous research. Steer‘s view was that the antecedents of commitment were the three categories of personal characteristics, role-related characteristics, and work experiences. Mowday et al. (1982), in their review of empirical studies conducted on the topic of organisational commitment, found that most of the studies of this nature were correlation. Mowday et al., extended the model proposed by Steers (1977) and came up with another model. As shown in the given figure 5 below, the new model included four categories of antecedents of organisational commitment: personal characteristics, role-related characteristics, structural characteristics, and work experiences. 56

Personal characteristics

Outcomes

Role-related characteristics

Structured characteristics

Desire to remain Employee

Intent to remain

Commitment

Attendance Retention Job effort

Work experiences

Figure 5. Hypothesized Antecedents and Outcomes of Employee Commitment (adapted from Mowday et al. 1982). 2.12.1 Personal Characteristics Many studies were concerned with the effects of various personal characteristics on employee commitment (Angle Perry, 1981; Hrebiniak, 1974; Mowday et al., 1982). The effects of age, educational level, tenure, gender, race, and other personality factors on the level of organizational commitment of employees were examined in such studies. For example, various researchers have found a positive impact of age and tenure on the level of commitment. The logic behind this, positive relationship is that when the individual gets older and remains with an organization longer, the individual‘s opportunities for alternative employment tend to decrease, thereby enhancing the employee‘s commitment to the organization (Meyer &Allen, 1984; Mowday et al., 1982). In contrast to age and tenure, education has been found to be 57

inversely related to commitment (Mathieu & Zajac, 1990; Mowday et al., 1982; Steers, 1977). It can be assumed that employees with higher levels of education may have higher expectations which makes it difficult for an organization to meet such expectations and results in less committed employees (Steers,1977). Marital status and gender also have effects upon organizational commitment of employees. Kawakubo (1987) and Lincoln & Kalleberg (1990) argued that marital status was found to be a significant factor in employee commitment. According to Kawakubo, it was found that married and separated persons were committed to organizations more than were single persons. The logic behind that could be that married and separated persons have more responsibilities than single persons (Lincoln &Kalleberg, 1990).With respect to gender, Angle and Perry (1981) and Mathieu and Zajac (1990) found that females were more strongly committed to their organizations than were males. 2.12.2 Role Related Characteristics Mowday et al. (1982) were concerned with the relationship between job characteristics and commitment: job scope or challenge, role conflict, and role ambiguity. They indicated that increased job scope would lead to an increase in commitment. Regarding role conflict and role ambiguity, Mowday et al. reported that where there is role ambiguity and role conflict, and role ambiguity. They indicated that increased job scope would lead to an increase in commitment. Regarding role conflict and role ambiguity, Mowday et al. Reported that where there is role ambiguity and role conflict, employee commitment tended to decrease. Austin and Gammon (1983) reviewed the literature on the work experiences of academic administrators and the link to employee commitment. They found that compensation is critical to commitment. They stated that, ―If administrators feel that they are not 58

valued for their contributions and are not rewarded to at least some reasonable degree, their commitment may be threatened‖ (p.61). Occupational status has also been identified as a significant factor in occupational commitment. Wiener and Vardi (1980) found that employees who occupy managerial positions tend to be more committed to their organizations than those who do not occupy managerial positions. They contended that this is due to the difference in prestige and pay among the two groups. 2.12.3 Structural Characteristics Within the body of literature on organizational commitment of employees, researchers have investigated the influence of structural characteristics on commitment. Stevens et al. (1978) found that organization size, span of control, union, presence, and centralization of authority were not related to commitment. Later, Morris and Steers (1980) conducted a study to determine what effects of structural characteristics such as formalization, functional dependence, supervisory span of control, span of subordination, decentralization, and work group size had on commitment. They found commitment to be positively related to employee participation, decentralization, functional dependence, and formalization. When individuals participate at every level in the organization, their ego involvement is enhanced which eventually leads to increased commitment. Employees who experience greater decentralization, greater dependence on the work of others, and greater formality of written rules and procedures were reported to be more committed to their organizations than employees experiencing these factors to a lesser degree (Mowday et al., 1982).

59

2.12.4 Work Experiences Work experience is viewed as a major socializing force and important antecedent of commitment. This category of antecedents related to employee commitment represents the nature and quality of an employee‘s work experiences that occur during his or her tenure with the organization (Steers, 1977). In the literature, several work experiences variables were found to be related to employee commitment (Mowday et al., 1982). For example, organizational dependability which has been defined as ―the extent to which employees felt the organization could be counted upon to look after employees‘ interest‖ (p.34) was found to have a significant and positive effect on organizational commitment of employees (Steers, 1977). In addition, research by Buchanan (1974) found that when employees feel that their co-workers maintain positive attitudes toward the organization, their organizational commitment increases. 2.13 Employee Commitment within Academic Institution Many studies were conducted to determine the organisational commitment of both educators and administrator in academic institutions and both of them shows organisational commitment. In a survey of general and special academicians, Billingsley and Cross (1992) determined the predictors of teacher‘s commitment. Their cross- validated regression results suggested that work-related variables such as leadership support, role conflict, role ambiguity, and stress are the best predictors of commitment of academicians. They concluded that increasing administrative support and principal‘s behaviour such as feedback , encouragement , acknowledgement , use of participative decision making and collaborative problem solving are important in building a committed and satisfied teaching staff.

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(Chiefo,1991;Billingsley & Cross 1992; Richards ,Arkyod ,& O‘Brien,1993; Raju and Srivastava, 1994; Thornhill et al.,1996; Borchers and Teahen ,2001;Richards,O‘ Brien & Arkyod, 2000;Wolverton ,Montez,Guillory and Gmelch,2001).Chieffo (1991) found that mid-level administrators in higher education are fairly committed to their organizations largely because they are proud of

what they are doing and the

autonomy of their work. Her results also showed a significant correlation between leadership behaviours (.60 to .70, p < .0001) such as, vision, influence orientation, people orientation, motivational orientation and values orientation, and organizational commitment. She also positively linked factors such as participation in decision making meetings and the organizational structure with higher levels of employee commitment. In a study of the factors related to the employee commitment of college and University auditors, Colbert and kwon (2000), found that organizational characteristics such as organizational dependability (R2 = 1.75, p< .01), and instrumental communication (R2 = 2.09, p <. 01) were significantly related to employee commitment. They also found a significant positive relationship between organizational commitment and organizational tenure (R2 = 2.06, p< .05), and skill variety (R2 = 1.51, p< .01). Wolverton et al., (2001) found that organizational commitment of Deans seemed to increase with Age (t=2.46, p < .05), number of years in the position (t = 3.00, p < .05), and the level of overall job satisfaction (t=2.69, p < .05). They also found that if Deans believed they worked for Universities that exhibited high academic quality (t = 2.88, p < .01) and good environment quality (t = 4.19, p < .01) they tended to be more committed to the organization. In addition, they found that deans who were inside

61

hires also seemed more committed to their Universities than those who were brought in from outside. Celep (1992) tried to determine the level of organisational commitment of teachers with regard to the commitment to the school, to teaching work, to work group and to the teaching profession. Teacher‘s commitment to the school was tested with such factors as exerting efforts on behalf of the school, among others. His results indicated a direct relationship between the teacher‘s organisational commitment and having proper pride to belong to the school (t=7.13,p<.01 ) and work group (t= 13.25, p < .05). The interest in the commitment of educators has extended to the study of organizational commitment of part-time faculty. In a study of 479 full-time and part time academics at two mid-western universities, Borchers and Teahen (2001) found that the level of organizational commitment does not vary significantly between faculty members who are part-time on ground, part- time on-line, full-time on – ground and full-time on line. These findings indicate that despite employment status educators are equally committed to their organization. Thornhill et al. (1996) have showed that communication with employees is significantly related to the organisational commitment of higher education institutions. They found that communication in terms of information flow down the organisation, information flow up the organisation and leadership or management style were important in the context of Higher Education of the employees, who believed that management made a positive effort to keep staff well informed, 68% indicated that they felt part of the institution, 88% reported that it was a good place to work and 85% reported that their organisation had a great future.

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In a study to explore the ability of extrinsic and intrinsic work related rewards to predict the employee commitment to health occupations educators, Richards et al., (1993) found that two intrinsic and one extrinsic work related rewards significantly predicted organizational commitment. Significance involvement and general working conditions were significant at the 0.1 level with standardized beta weights of .2411, .2135, and .1591, respectively. Similar results were found by Richards et al (2002) when they predicted the organizational commitment of marketing education teachers. They found that six of the eight work related rewards entered the stepwise Multiple Regression. The variables that were significant at the .01 level were supervision (.2188), significance (.2158), involvement (.2137), promotion (.1592), and co-workers (.1258) From this analysis of studies of organisational commitment within academic institutions, it can be seen that the development of commitment is dependent on several personal and organisational factors such as Leadership, management policies and practices. The idea that organizational commitment is important for the realization of organizational goals and professional goals of educational institutions has remained un-tapped by researchers. Organizational Commitment research can possibly provide practical results for academic institutions by providing insights into the commitment profiles of their professional employees. From the employing organization‘s stand point, it is useful to identify which factors motivate academic‘s desire to remain with the organization.

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2.14 Literature Review on Education Sector with Emphasis over B-Schools. The present education system in India mainly comprises of primary education, secondary education, senior secondary education and higher education. Elementary education consists of eight years of education. Each of secondary and senior secondary education consists of two years of education. Higher education in India starts after passing the higher secondary education or the 12th standard. India has a long history of higher education. The early Gurukul system of education flourished in the Vedic and Upnishadic periods in India, and a huge university was set up at Takshashila in the sixth century BC which was situated at the place now called Taxila, in Pakistan. Two other universities, namely Nalanda and Vikramshila, were established in the fourth and fifth centuries AD, respectively (Dogra and Gulati, 2006). The modern higher education system was established in the mid-1850s when the first three universities were set up in 1857 under British rule. The thrust of development then was mainly on a liberal arts education. The rate of development was slow, as in a period of 90 years only 18 universities were established in India. Most of these followed the model of the three original universities at Bombay, Calcutta and Madras. When India became independent of Britain in 1947, it had 20 universities and 500 colleges located in different parts of the country. The present higher education system is the second largest in the world and is perhaps the most complex in terms of the geographical area covered and the profile of students and teachers, in terms of their linguistic, social, cultural and economic background. The number of state and central universities rose from 133 (at the end of the Ninth Five Year Plan from 1997-2002), to 206 in March 2005, to 339 during the Tenth Five Year Plan (up to December 2006), and in 2007 it reached 378. Thus, between 1950 and2007, universities in the country increased from 20 to 378, colleges from 500 to18, 64

064 and teachers from 15,000 to 480,000. The number of students enrolled in higher education too has increased from 100,000 in 1950, to over 11.2 million in 2005(Thorat, 2007). By 2008, India has 413 universities – 251 of which are state universities, 24 central universities, 100 ―deemed‖ universities (i.e. they do not offer degrees themselves, but are affiliated to larger universities for awarding degrees), five are institutions established under State Legislation and there are 33 institutes of national importance established by Act of Parliament. In addition, there are now20, 677 colleges including 2,166 that are women-only colleges. At the beginning of the academic year 2007-2008, the total number of students enrolled in the universities and colleges in India was 116.13 lakhs (11.6 million), of which about 40 per cent were women. This has, in turn, enhanced access to higher education, as the enrolment ratio has increased from less than 1 per cent in 1950 to about 10 per cent in 2008. These developments notwithstanding, the gross enrolment ratio (GER) in relative terms compares quite poorly with 60 per cent in the USA and Canada, to over 40 per cent in several European countries and more than 20 per cent in many developed and developing countries. The Planning Commission, (Government of India) is also targeting a GER from10 per cent in 2006 to 15 per cent by 2015 (Government of India Planning Commission, 2006). Such a substantial increase in enrolment would require a multi-pronged strategy. In order to ensure that the facilities for higher education are available in enough quantity for all who aspire to it, the federal government decided to establish more universities in the Eleventh Five Year Plan (2007-2012). Some announcements have already been made in this regard. These include the establishment of 30 new central universities and a new Indian Institute of Technology and Indian Institute of Management. Besides, capacity increase will also have to be attempted by strengthening and increasing the intake capacity of existing colleges and

65

the universities through an increase in places on existing courses as well as by introducing new courses. The Government of India has set up the National Knowledge Commission (NKC) to seek ideas on how it can modernise and expand its educational institutions and make them worthy of world-class status. According to its website (http://knowledge commission.gov.in/), the NKC is: A high-level advisory body to the Prime Minister of India, with the objective of transforming India into a knowledge society. It covers sectors ranging from education to e- governance in the five focus areas of the knowledge paradigm: Access – easy access to knowledge. Concepts – all levels and forms of education. Creation – effective creation of knowledge. Applications of knowledge systems. Services like e-governance. The NKC has suggested the setting up of 1,500 universities by 2015. The Chairman of NKC (Mr Sam Pitroda) has also suggested setting up an Indian Institute of Library and Information Science to boost the research and development of library systems in India.

(http://knowledgecommission.gov.in/downloads/recommendations/Libraries

LetterPM.pdf). 2.14.1 UGC-Infonet Digital Library Consortium: Background: The UGC-Infonet Digital Library Consortium was initiated in 2004. The UGC funds all state, ―deemed‖ and central universities excluding those covering engineering, medicine and agriculture which are funded by other agencies. Unlike many other Consortia, members‘ libraries access scholarly journals without paying the subscription from their library budget. The entire subscription cost is paid to the 66

publisher by INFLIBNET as agreed in a deal finalised by the National Steering Committee (NSC). In essence, the funding for this consortium is top-sliced from UGC funds and offers high quality publishers/aggregators to the academic community, comprising faculty, staff, researchers and students. In terms of the number of users, it is the largest consortium in India and by 2007, 179 universities, as well as several thousand colleges affiliated to these universities, qualified for gaining access to the eresources. About 100 universities are currently (mid-2008) members of the consortium. The consortiums a trend-setter in a thoughtfully adopted e-only model without any links to the current print holdings by its member universities. There is no formal membership structure of the consortium. All academic institutions that come under the purview of the UGC are members of this consortium. Keeping in view the large number of universities, it is planned to implement the new system in various phases as described later. The consortium can take credit for investing significant time in the evaluation of resources for selection and obtaining the best pricing terms and models from the publishers. Before extending the access, INFLIBNET is ensuring network connectivity to these institutions in another major project called UGCInfonet. The entire programme is carried out with a systematic approach. The universities and resources were classified under three different categories. In the first phase (2004), 50 of the larger universities were given access to scholarly journals from 16 major publishers, subsequently in 2005 another 50 universities were included and subscriptions to more resources were taken out. In the third phase, there are 70 more universities. (Prem Chand and Jagdish Arora, 2008).

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2.14.2 Institutional Development: The quality of education and innovation in the system depends primarily on the institution. (Ishwar Dayal, 2002) The needed areas of development are discussed at three levels: The University System The Support Systems at Macro Level (The Academic Content, Faculty Development, The Monitoring System, Support for Research, National Testing Service) needs to be supported by Government/AICTE/UGC. Development Approaches at Institutional Level Institutional development as discussed by Ishwar Dayal rests on two distinct but related areas which are as follows: • The administrative arrangements and the institutional leadership; and • The approaches to institutional development. In his article “Towards an Educated India: Innovations in education”, in the Free Press Journal, Dr. R. Gopal expressed that to make the B-School pass outs of India employable, the teaching methodologies adapted by the B-School faculties should be innovative in nature to make them industry – fit. Dr. Gopal stated that, ‗Specific innovations in the areas of teaching pedagogy will be of great use. Some of these areas could be conduct of one week 'appreciation' programme at the beginning of the session, involving the students in creating posters specific to social needs for instance, anti ragging poster competition, debates, etc, reverse teaching, guest lectures, case studies, live projects, industrial visits - national and international, use of select films to stimulate the mind for discussions, organising socially involved projects like blood donation camps, celebrating festivals with members of an old age homes, children's homes etc,

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strengthening the hands of mahila groups and self-help groups, etc., Guest lectures given to students by industry experts could be another way to let them know the ways of corporate world and culture, involving senior leaders from industries in the governing council of institution, live-projects in conjunction with industry personnel etc., can aim to raise the educational bar and make the students employable. 2.14.3 Knowledge Management in Higher Education Institutions: Knowledge management (KM) is an essential consideration in higher educational institutions (HEIs) to ensure that knowledge flows efficiently between the people and processes. The practical implications of KM initiatives in HEIs include the enhancement in the overall effectiveness and efficiency. A KM system should be integrated into the institution‘s processes and work environment. Significant work has been done in the area of KM in higher educational system and many new requirements have been proposed by different people in this field. Kidwell, et al.(2000, pp. 28-33) discussed why KM is vital to higher education systems and how an institution wide approach to KM can lead to exponential improvements in knowledge sharing – both explicit and tacit and the subsequent surge benefits. The work deals with the benefits of various knowledge management applications on educational institution processes such as research, curriculum development, student and alumni services, administrative services and strategic planning. Ranjan and Khalil (2007,pp. 15-25) have argued that in order to build and develop a robust and thriving knowledge environment the institutes need to look beyond technology and develop the overall culture of accessing, collaborating and managing knowledge.

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Yeh (2005,pp.35-42) presented the KM multi-modelling framework to propose four organizational strategies for higher education – culture, leadership, technology and measurement and three academic KM strategies – individual, institutional and network. Nagad and Amin (2006, pp.60-65) concluded that effective KM may require significant change in culture and value, organizational structures and reward systems. In order to apply KM, knowledge and expertise must be readily accessible, understandable and retrievable. Sedziuviene, Vveinhardt, J.(2009, pp. 79-90) concluded that to create a KM system in higher educational institutions it is necessary to point out the valuable knowledge, to create a methodology for receiving, transforming and consolidating knowledge, to activate and optimize the process of knowledge formation, transmission and evaluation, to perform spread of knowledge among the staff and students, to constantly perform knowledge monitoring and make decisions accordingly and to generate new knowledge and new technologies for knowledge transmission. Rowley (2000, pp. 325-333) in the study on KM in higher education said that KM challenges lie in the creation of a knowledge environment and the recognition of knowledge as intellectual capital. Effective KM in higher education requires significant change in the culture and values, organizational structures and reward systems. HEIs in India are facing the pressures for enhanced performance for the reasons argued by Ashish and Arun (2006) and others – 1 Increasing competition among higher educational institutions 2 Growing awareness about alternate opportunities and value for money among the students and parents

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3 Accountability to stakeholders and the accreditation and affiliating bodies 4 Increasing industry demands as employers for recruitments of graduates and Post graduates 5. Industry expectations for industry-institution partnerships. In view of the pressures from the stakeholders and the present scenario in HEIs it becomes pertinent to look for solutions which will make an impact on the existing systems. A blend of KM and IT techniques can offer an appropriate tool to meet this challenge (Kumar and Kumar, 2005). Large number of organizations have implemented KM principles and methods in their routine activities for enhanced collaborating of knowledge on inter and intra organizational platforms. However HEIs have not taken much interest in introducing KM approaches even though from the academic learning point of view KM by its nature is essential for HEIs (Ranjan and Khalil, 2007). Today HEIs behave like educational markets. They have to adjust themselves and develop strategies to respond rapidly to the increasing demands of stakeholders and market pressures. A KM approach in HEIs is a conscious integration of all human resources and academic and administrative processes for the acquisition, structuring and sharing of institutional knowledge. Emphasis is required on sharing of knowledge at the institutional level and not the individual level (Ranjan and Khalil, 2007) Higher educational institutions create knowledge during their academic and administrative processes. Knowledge is created at various levels in different forms and is required at each level in a different form. The processes of teaching, examination, evaluation, admissions, counselling, training and placement and research and consultancy result in numerous beneficial experiences and studies which may be

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defined as knowledge in the context of higher educational institutions (Ranjan and Khalil, 2007). Knowledge Acquisition – It is the mechanism through which knowledge is gathered and stored from the members of the institution and other resources (Schwartz, et al., 2000). According to Tiwana (2000), knowledge acquisition is the development and creation of insights, skills and relationships supported by information technology. Knowledge acquisition consists of codifying explicit knowledge, modulating tacit knowledge to explicit knowledge and codifying the explicit knowledge and acquiring tacit knowledge in the form of explicit Meta knowledge i.e. knowledge about knowledge. The explicit Meta knowledge about tacit knowledge contains information about ―who knows what‖ and about how to contact the experts. The purpose of codification is to make it easy to organize, locate, share, store and use knowledge (Davenport and Prusak, 1998). Knowledge may be created and acquired, but if not organized and structured, the organization will not be able to take action on that knowledge or actualize all of its potential value (O‘Leary, n.d.). This will result into limited use of the institutional knowledge and its impact on the institution. Knowledge has to be structured into a form which can be used directly in the institutional processes and functions to ―fit‖ into the institution‘s way of doing things. Institutions need to put the knowledge into specific forms viz. documents, databases, pictures, graphs, rules, case based reasoning (CBR) and frequently asked questions (FAQs). It includes organizing, indexing and formatting the acquired knowledge (Schwartz, et al., 2000) for reuse and leverages it in other ways and makes it broadly available in the institution.

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The knowledge is transformed into appropriate form as used and sought for by the stakeholders and stored in knowledge bases called knowledge repositories. A knowledge repository is a structured collection of the knowledge generated in an organization. The value of organizational knowledge increases when it is available in storage repositories for present and future use (Jasimuddin, 2005). The knowledge repository ensures the availability of related knowledge quickly and efficiently at the same place. According to Natali and Falbo (n.d.), the primary requirement of the knowledge repository is to prevent the loss of knowledge and enhance accessibility to organizational knowledge in the form of a centralized well structured resource. Knowledge Dissemination – The stored knowledge, if not transferred for further use within the organization, leads to wastage of organizational resources (Jasimuddin, 2005). According to Schwartz, et al. (2000), knowledge dissemination constitutes retrieval of the relevant knowledge for use at the right time. It supports the flow of knowledge in the institution. Knowledge dissemination can be pull based or push based as either the user can search for the required knowledge or the knowledge management system can offer knowledge that seems relevant for the user‘s task (Abecker, et al., 1998). Proactive knowledge dissemination becomes particularly important when users are not motivated to look for information, are too busy or unaware that relevant knowledge exists or are ignorant of the need for information in the first place (Natali and Falbo, n.d.). The practical implications of IT based KM initiatives in HEIs imply that the framework should be useful to the institutions in many ways namely –  Enhanced ability to develop strategic plans  Enhanced quality of programs and processes by identifying and leveraging best practices

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 Enhanced ability to monitor and sustain ongoing change (Petrides, 2004)  Enhanced faculty development efforts  Improved teaching learning processes  Improved effectiveness and efficiency of administrative services  Improved sharing of internal and external information to minimize redundant efforts  Reduced effort and turnaround time for actions  Reduced operational costs To gain user acceptance, a knowledge management system must be integrated into the organization‘s process, allowing collecting and storing relevant knowledge as it is generated in the processes and functions of the organization (Natali and Falbo, n.d.). Consequently it should also be integrated to the existing work environment (Abecker, et al., 1998). 2.14.4 Data Envelopment Analysis in Higher Education: Management studies originally established in the USA were adopted in Europe in the1960s. Since then it has gathered a global acceptability. Large numbers of management schools are operating around the globe and they encounter a strong competition for students. Management is an area where the individuals are developed within the area of management. The aim of MBA programme is to prepare their graduates for managerial roles, help them to acquire a better understanding of the industrial and business world and enriching them with relevant skills and competencies for their careers. In other words it is generally agreed that management education adds value to a student. However, in management education what kinds of values are added has not been resolved in a widely accepted manner.

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In his article „ Towards an Educated India: Academia – Industry Partnership”, (2010) in the Free Press Journal , Dr. R.Gopal expressed that extremely dynamic business world, and the rapidly developing knowledge based services economy have put in an increased demand

for professionals to merge the business

effectively. This is precisely the reason why amongst the various fields of knowledge, the desire for acquiring management qualifications is growing rapidly both amongst the fresh graduates and working executives. It is in this context that the proposal corporate- academic tie up becomes crucial. Boyatzis and Renio (1989) indicate some positive attributes gained from MBA studies. Espey and Batchelor (1987) report how the company gained from the students carrying out projects and writing reports relating to the needs of the company, thus making the graduates better managers. Yet despite all the rhetoric, few signs of substantive change are evident in most of the B-schools. Fiekers et al. (2000) discussed how to benchmark the postgraduate admission process in their paper. Wan Endut et al. (2000) discussed the benchmarking process of higher educational institute. Shaw and Green (2002) and Laugharne (2002) discussed the benchmarking process of academic process and the PhD programme respectively. Data envelopment analysis employs mathematical programming to obtain ex post facto evaluation of the relative efficiency of management accomplishments, however they may have been planned and evaluated (Banker et al., 1984). The aim of a central unit is to allocate resources in such a way that the overall goals of the organization are satisfied as well as possible, or specifically, the amount of the total outputs of the units will be maximized (Korhonen and Syrjanen, 2004). DEA model is used to evaluate the relative efficiency of a group or units of decision-making units (DMUs) in their use of multiple inputs to produce multiple outputs where the form of

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production is neither known nor specified as in the case of parametric approach (Shammari and Salimi, 1998). As a consequence, the DEA efficiency score for a specific decision making unit (DMU) is not defined by an absolute standard, but it is defined relative to the other DMUs in the specific data set under consideration. Farrell (1957) is known as the pioneer to develop DEA to solve the problem, which requires careful measurement but also has a limitation of combining the measurements of multiple units to measure the overall performance. Later on Charnes et al. (1978) generalized Farnell‘s framework and popularised the concept. Berger et al. (1997) and Seiford (1996) confirmed of DEA application in previous research and other DEA works that contain more than 1,000 DEA contributors in the past two decades (Sueyoshi, 1999). The two most frequently applied models used in DEA are the CCR model – after Charnes et al. (1978) and the BCC model – after Banker et al. (1984). The basic difference between these two models is the returns to scale (RTS). While the latter takes into account the effect of variable returns- to- scale (VRS), the former restricts DMUs to operate with constant returns- to- scale (CRS). Charnes et al. (1978) developed DEA to evaluate the efficiency of public sector non-profit organizations. DEA aims to measure how efficiently a DMU uses the resource available to generate a set of outputs and DMUs can include manufacturing units, departments of big organizations such as universities, schools, bank branches, hospitals, power plants, police stations, tax offices, defence bases, a set of firms or even practising individuals like medical practitioners etc. In India, the existing monitoring organization All India Council for Technical Education (AICTE) is responsible for evaluating the performance of the institutions through the process of accreditation. The evaluation process is based on a set of broad-based criteria and these criteria serves to assess the principal feature on the

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institutional activities and programme effectiveness. Emphasis is given on entry qualification, intake of the students, duration of the course, structure of the programme, examination rules and regulations, infrastructure norms like computer facilities, library, teaching aids, etc. However, these norms and rules do not help to measure the performance of any institutions. Harris (1994) presented a generic approach to higher education. Primarily, a customer oriented approach where the service to students is promoted through training and development. Secondly, a staff focus approach which tries to enhance the contribution of all the member of staff to the effectiveness of the institute and finally focus on service agreement. This definition reflects the unique characteristic of the education. An education process involves input, output and several others factors. Education process is a multi dimensional activity and only one indicator cannot assess it. Leaving the few top institutions in India, rest of them can be categorised into private and government owned B-schools. Since intake of these colleges is not of high quality and the objective of the management is to make quick money by spending least. Therefore, the focus on quality value addition becomes a necessary step. A performance measure helps in monitoring strategic achievements and controlling the strategic movements of the institutions as it is strongly related to objectives of the institutions. There are very few papers available in the literature for measuring the performance of the management institutions. Haksever and Muragishi (1998), Dreher et al. (1985), Hamlen and Southwick (1989) studied the quality and value of management education. (Roma Mitra Debnath, 2009) attempts to measure the efficiency of 20 B-Schools quantitatively and rank them. It has been argued in her paper that efficiency can be measured by using the inputs and outputs which are intangible in nature. Although

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some of the management schools are analysed in the paper, however the paper focused on the measurement of the value in management education. Many institutes are being able to charge a high fee for their management programme. However they are not able to maintain their status and rank in the various rankings. The paper tried to answer the question. The result draws to a clear and specific conclusion that an efficient institute is able to use all its resources in an optimum way to produce the maximum output. 2.14.5 Financing Higher Education in India: It is unambiguous that Policy of the Government of India now encourages augmentation of resources for covering a larger portion of cost of higher education. Recent policy changes in India often favour to divert resources from higher to primary level of education and favours for full cost recovery from students even in public higher education institutions. Cost recovery measures comprising of increase in fees, student loans currently operated by commercial banks and privatisation will exacerbate inequality in the society. Indeed, there seems to be a nexus between the present student loan scheme and full cost recovery. Increasing reliance on student fees, student loans and privatisation without considering the low-income groups may produce regressive effects in the society. Under the deep waves of globalisation and competition, important economic rationale for government funding especially for higher education is neglected. Public support for higher education remains essential to ensure a balanced achievement of educational and social missions, apart from surviving in the knowledge-based society. It is essential that funding sources must be diversified but cost-sharing with students has social and political limits, and excessive commercialization of higher education should be forbidden (P. Geetha Rani).

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Dunn and Bradstreet one of the leading consulting houses had elicited Dr.Gopal‟s views on the Indian Education (2011) especially w.r.t B - schools. He expressed that the institutes should be freed from the concept of “fix the fees” and the institutes should be allowed / encouraged to charge whatever fees they want. In the long run, each B School would stabilize at its own level of fees – the market will automatically regulate the fees for ever institute. Knowledge is the driving force in the rapidly changing globalised economy and society. Quantity and quality of highly specialized human resources determine their competence in the global market. Emergence of knowledge as driving factor results in both challenges and opportunities. It is now well recognised that the growth of the global economy has increased opportunities for those countries with good levels of education and vice versa (Carnoy, 1999; Tilak, 2001; Stewart, 1996; Ilon, 1994). Though the higher education system and the pattern of financing higher education vary a great deal across countries in terms of their size and strength and degree of diversification of higher education institutions, yet they all face a severe financial crisis in the public finances available for higher education. With macro economic reforms resulting in severe cuts on the education budget on the one hand, hand, the government directs the shift of resources from higher to primary accomplishing the long cherished goal of universal elementary education on the other education. It can be noticed from the approach paper to the Tenth Five-year Plan and Tenth plan document that, ―Since budget resources are limited, and such resources as are available, need to be allocated to expanding primary education, it is important to recognise that the universities must make greater efforts to supplement resources from the government‖ (Government of India, 2001, 2002-2007).

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In a federal polity like India, education being concurrent subject since 1976, the commitment of the centre equally at all levels of education is important. In secondary education, centres‘ share of expenditure is minimal ranging around 5 per cent. However, federal role in elementary education is on the rise since the middle of 1980s.Whereas for the Higher Education As a result of all these efforts and initiatives by the federal government, the flow of plan transfers from central to states in elementary education have improved since the late 1980s. It is to be realised that while primary education is fundamental to the nation, higher education determines its economic and technological progress in the globalised era, which are the necessary and sufficient conditions for growth and development respectively. Even for very low enrolment ratios in higher education in India, it is increasingly realised that public budgets cannot adequately fund higher education, particularly when sectors of mass education are starved of even bare needs. Hence, the resources from higher education are being diverted to the development of primary education. But it is stressed that while it is mandatory that the nation achieves universal elementary education and total literacy, it cannot at the same time afford to relegate to a neglected position to achieve global standards in higher education (UGC, 1993). The funds for higher education in India come mainly from three different sources, viz. government, fee income from students and other sources of income from philanthropy industry, sale of publications, etc. Higher education has been largely a state funded activity with about threequarters of the total expenditure being borne by government. The relative shares of non-government sources such as fees and voluntary contributions have been declining. Only 7 per cent of the population in the age group 17 to 24 attended higher educational institutions in India, as against 92 per cent of the eligible age-group population attending higher educational institutions in USA, 52 per cent in UK and 45

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per cent in Japan. Even for these very low enrolment ratios in India, it is being increasingly realised that public budgets cannot adequately fund higher education, particularly when sectors of mass education are starved of even bare needs. Hence, in the recent decade, the need for experimentation with several alternatives such as student fees, student loans, graduate tax and privatization is intensified. In the eighth plan it financially self-supporting higher education has been advocated that ―expansion of higher education in an equitable and cost-effective manner, in the process,

making

the

higher

education

system

financially self-supporting‖

(Government of India, 1992). The approach paper to the Ninth Five-year Plan says, ―Emphasis will be placed on consolidation and optimal utilisation of the existing infrastructure through institutional networking and through open university system. Grants-in-aid will be linked to performance criteria to improve quality and inject accountability. Fees will be restructured on unit cost criteria and paying capacity of the beneficiaries. Additional resources will be generated by involving industry and commerce and through contribution from community‖ (Government of India, 1997, pp.82). Distinct signals from the government towards hike in fees and shift of resources from higher to primary education can be noticed from the approach paper to the Tenth Five-year Plan, ―Since budget resources are limited, and such resources as are available, need to be allocated to expanding primary education, it is important to recognise that the 7 universities must make greater efforts to supplement resources from the government. University fees are unrealistically low and in many universities have not been raised in decades. A substantial hike in university fees is essential (emphasis added)‖ (Government of India, 2001, pp.37). The Tenth Five-year Plan document as well notes that it is important to recognise that the universities must

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make greater efforts to supplement resources apart from the government (Government of India, 2002-2007, p.17). Dunn and Bradstreet one of the leading consulting houses had elicited Dr.Gopal‟s views on the Indian Education especially w.r.t B - Schools. He expressed that there are a large number of opportunities for the Indian Business School. The market for B Schools is quite large and is growing rapidly perhaps at double digit rate. Consequently one can see a large amount of competition – what with new B Schools proliferating at every nook and corner. This will automatically spur the Indian B Schools to innovate – introduce new course and new program, new methods of pedagogy, use of simulation techniques, increase the institute industry interaction, research papers and so on. The key area of success is the need for the Indian B Schools to transform themselves from a mere teaching/ coaching class to a full fledged Business University/Business School. (S.J.Dhopte, 2011) It should be noted that higher education institutions play an important role in setting the academic standard for primary and secondary education. They are responsible for not only providing the specialised human capital in order to corner the gains from globalisation, but also for research and development, training inside the country, provide policy advise, etc. It is to be realized that ‗Higher Education is no longer a luxury; it is essential to national, social and economic development‘ (UNESCO, 2000). The adverse impact of economic reforms reflects upon various revenue diversifications measures such as hike in student fees, student loan programmes operated by commercial banks and privatisation. Various revenue-raising measures take place in the form of:

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A. raising tuition fee as a significant source of revenue for the support of instructional cost B. full cost recovery of other fees such as institutionally provided room and board C. Sale It needs to be noted that the maximum income that can be raised from fees is on an average around 25 per cent of the total recurring expenditure in a span of ten years. Further, it is important to notice that self-financing courses are short term in nature and heavy reliance on them will have repercussions on the equity, balance and quality of education system in the long run. This will also lead to lack of teachers and researchers in pure and basic disciplines in the near future as it is being experienced in United Kingdom. Increasing reliance on student fees, student loans and privatisation without considering the low-income groups may produce regressive effects in the society. Hence, an alternative student loan scheme specifically for the weaker sections should be evolved. Such a programme must be flexible enough to suit their requirements, which may involve government guaranteed loans, subsidised interest rates, liberal terms of repayment, waivers for those students with less future incomes, etc, in addition to a strong student support system. Effective financial management at institutional level is mandatory. It is essential that funding sources must be diversified but cost-sharing with students has social and political limits, and excessive commercialization of higher education should be forbidden (P. Geetha Rani, National Institute of Educational Planning and Administration). Many research studies show that the benefits of higher education are largely appropriated by the students belonging to the upper and middle income groups, and those who belonged to the forward communities. Thus, the benefits of liberal government grants/subsidies are largely cornered by the already rich sections of

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society, whereas the tax receipts, particularly from the indirect taxes - the stable tax resources of state – used to finance higher education expenses mainly fell on the lower income groups. It can be safely stated that the higher education of privileged sections of society is liberally financed out of the revenue extracted from the poor and such a policy is bound to be perpetuating educational and income inequalities in the society (Psacharopoulos, 1994; World Bank, 1994; Psacharopoulos, 1997; Mingat and Tan, 1986; Jimenez, 1987, 1994; World Bank, 2000). However, the debate of increasing grants/subsidies on one hand or rightsizing/ no grants/subsidies to higher education on the other hand has been intensified recently (Hinchiffe, 1993). 2.14.6 Cost of Education: Studies Related to India: The cost of education has attracted researchers‘ attention at the very early stage. These studies deal with the national education sector as well as that of the individual states of the country. Day‘s study (1963) focuses mainly on the costs of education. For this, he prepared a detailed list of items of expenditure on education and grouped these into six categories: (i) direct expenditure; (ii) meals and tiffin; (iii) students‘ health service; (iv) training of teachers; (v) administration and inspections; and (vi) transport services. During the pilot enquiry on the provision of public education, the planning division of the Indian Statistical Institute collected some data on the cost of education for the period 1963 in Madhya gram, an urbanized village in the district of 24 Parganas (West Bengal); ten km away from the Calcutta city. The study presented data on the cost of secondary education, which was collected from five schools in the area. It gives the detailed analysis of receipts and payments, income and expenditure, etc. A consolidated list of assets has been prepared for estimating the depreciation. The main purpose of the study was to estimate the cost of education of each unit of

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product. Panchamukhi (1965) measures the public expenditure on education in India. The study estimated the total cost of education for the period 1950-51 to 1959-60 and concluded that total cost of education constituted 6.2 per cent of GNP in 1959-60. The study also calculated the various components of private and institutional costs of education, foregone earnings for males and females, village and town pupil separately. The study estimated that foregone earnings constituted major proportion of total factor cost of education. The total cost of education was found to stand between5 per cent and 6.5 per cent of national income in 1960-61 and not 2.5 per cent of institutional cost alone. Pandit (1969) measures the unit cost of education and efficiency of educational expenditure. The study divides the total cost of education into three categories such as institutional cost, students‘ cost and opportunity cost. Dutt (1969) tries to measure the recurring unit cost of education in Haryana on the basis of sampled 28 colleges of which 24 colleges were private and four were government owned. It found main factors affecting the unit cost of education: age of the college; student enrolments; average pay of teacher; and ratio of non-teacher to total teachers. Among all the four component of unit cost of education, salary emerged as the main component. For measuring of all the four variables, regression and correlation analysis were carried out. Regression analysis reveals separate results both for the private and all colleges together. In the case of private colleges, only enrolment and age of the college had a negative impact on unit cost, and average pay of the teacher and ratio of non-teacher to the total cost had a positive impact. On the other hand, correlation analysis of all colleges suggests that, if other variables remain constant, student enrolment was found to be significantly correlated with unit cost followed by average pay of teacher. Neither age of the college nor ratio of non teacher to total cost have significant impact. One thing which is very much clear in the study

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is that the cost of education of state and private women colleges was more than their income from all sources. However, in other private colleges, their total income from all sources was more than that of their cost of education. The study by Shah (1969) analyzes the unit cost of higher education. The study has divided the cost of education into two main components: (a) social cost, (b) opportunity cost. Social cost is again divided into student cost and institutional cost. In student cost, he points out the possibility of double counting in fee and scholarship because at one time it is the income of the institution and at the same time it is also the part of institutional cost. Further, he also feels that there is different unit cost of education of hostellers and day-scholars. Institutional cost can be divided into two parts, recurring cost and non-recurring cost. In non-recurring cost, the main components of cost are capital (land on rent and building) and equipment and in recurring cost they are divisible and non-divisible. He also points out the complications of calculating unit cost due to the administrative organization. The study suggests that the recurring cost and expenditure should be done very carefully Sharma (1969) highlights the significance of unit costs in the planning process. The study takes into account the nature and different types of unit costs required at different levels of education with special reference to Indian conditions, the nature of available statistics, their coverage gap and their limitations. A method has been developed to measure the cost per student at different levels. Various suggestions were available for improvements in the methodology for the estimation of costs, etc. Rao (1969) puts the main attention on the analysis of the various concept of the cost of education, particularly the higher education, in the developing countries like India. He discussed the economic aspect of the education. In order to study the cost of education, he adopted several approaches. In one approach, the main component was

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the cost borne by the students. In other approach it is divided into three parts: (i) institutional cost, (ii) student‘s cost and (iii) opportunity cost. Kulkarni‘s study (1969) also estimates the unit cost of education from the period1962-66 at current prices. It shows that the change in pupil-teacher ratio affects the unit cost of education. The decline in pupil-teacher ratio increases the work load of the teachers during the period which also leads the teachers to leave the profession. Another study by Shah (1969) analyzes the unit cost of elementary education under two components: tuition and non-tuition expenditure. It was found that Non-tuition expenditure of poor students is low as compared to the rich students. This paper points out that there are disparities in the educational standard of private and municipal schools. It suggests that this gap can be reduced only either by reducing the burden of tuition cost or improving the quality of teaching. The study concludes that educational expenditure at constant prices increased at a lower rate as compared to current prices. Pandit (1972), in his study, described the social and private cost of the resources used in the educational process. This was the first study in India where the capital cost of education has been measured by calculating the stock of physical capital. The study also analyzed the share of direct cost and opportunity cost in the total private cost, and found that the share of direct cost (tuition and non-tuition) in the total private cost had declined, while the share of opportunity (income foregone) cost had risen. It shows that the students‘ contribution is becoming more and more prominent in the private cost of education. As far as institutional cost is concerned, per unit current cost had risen while the capital cost remained constant. Thus, increase in the social cost and that of the share of private cost in the social cost indicated the increasing participation of private sector in education.

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Kamat (1973) made a detailed study of arts, science, commerce and technical education. It also compares the unit recurring cost of education at various levels in the University of Poona and found that unit recurring cost of science education is more than the arts and commerce education. In commerce, arts and science degree courses the unit costs were about Rs 1200, Rs. 1500 and Rs. 1800 respectively. The cost of science courses was higher due to the cost of laboratories and equipments. Similarly, cost of PG courses was four or five times more than degree courses. The cost of technical and professional education like the engineering and medicine at the degree level was four or five times higher than that of the general higher education. Kamat made a very good attempt of comparing the cost of general higher and professional education. This is one of the best analyses of the unit recurring cost of higher education. Chalam (1978) analyzed the cost of education in colleges of Andhra University. The study calculated the institutional and private cost in the colleges. And, it was observed that institutional cost per student was almost double in the science faculty as compare to the arts. The comparative study of cost in both faculties has proved that major component of costs in science faculty was related with the common services. In arts, however, the teaching cost was the major component of unit cost. Similarly, private cost of former is less and social cost is more and private expenditure of the students was mostly influenced by socio-economic background of the students. Ramanujan (1979), while making a comparative study of the per student cost in the institution of Jammu and Kashmir found that more than 80 per cent of the total expenditure of university is consumed by salaries and very less was spent on library and laboratories. Prakash (1978) has developed a detailed methodology for the calculation of the unit cost of education. Moreover, he has developed input-output models of education with

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an application to the Indian data. He has made estimates of cost of higher education in the country. He has tried to develop the educational deflators by using various inputs and their prices over the time. In the case of education, no separate educational deflators are available and most of the time the consumer price index or income implicit deflators are used. He identified various determinates of cost of education and developed the cost of education function. Among others, the major determinants were the academic costs, particularly the salary level, structure of providing basic instructions, research guidance and supervision. The availability of public resources helps in reduction of educational costs by the process of subsidization of institutional cost of service providers. Tilak (1979) on the basis of data on higher education in India relating to the year 1975-76, computed the unit cost of education by various components for the different states/union territories in India. It is also attempted to formulate a cost function with an objective of explaining differences in unit cost between different states/union territories. The wide differences have been found in unit cost of different type of higher education such as general, professional and other types. Similar differences are also found in the analysis of component-wise unit cost among different states/union territories as well as for different types of education. In the general education, the average salary of the teacher varies between Rs. 19,546 in Lakshadweep and Rs.975.64 in Tamil Nadu. The student-teacher ratio ranges from 61 in U.P. to 6 in Sikkim and Pondicherry. The size of institution varies between 64 in Tamil Nadu and 2,387 in U.P. Similar picture emerged in the case of professional education. The average salary of the teacher in Chandigarh was more than Rs. 30,000 and Rs. 3,871 in Mizoram. The student-teacher ratio varies between 6 in Mizoram and Pondicherry compared to 35 in Meghalaya. The range in size is also quite big the lowest figure was 30 in Mizoram with 803 in Chandigarh. Wider inequalities persist

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in the case of other education. In West Bengal, average salary of the teacher was Rs. 1990.50 while Rs. 716 in Manipal. Sharma (1980) in order to assess the cost and efficiency in Indian university system, made a unit cost study of the universities located in Delhi. The study also compared per unit cost of general and professional courses for the period 1974-75 to1976-77. The per unit current cost was estimated under the four heads: teaching; student welfare; supporting services; and examination, and the capital cost were classified into four categories: buildings; equipments; libraries; and others. The study concluded that operating cost per student in affiliating universities was higher compared to that of residential universities. Subrahmanyam (1982) by studying the expenditure and financing pattern of Andhra University, shows that on the expenditure side, major proportion was consumed by the teaching departments(between 40 per cent and 69 per cent). Further, in per pupil cost, larger differences were found in the non-tuition components of the cost (general administration 20 per cent to 30 per cent, library 2.58 per cent to 9.12 per cent) rather than in the tuition cost among the students belonging to the different income strata‘s of the society. The study done by George (1982) measured the private and social costs of higher education in Tamil Nadu for the period 1960-76. He found that private expenditure on professional education was higher than that of general education. He also points out that the poor communities lagged behind than the urban based families who were enjoying the maximum benefits of higher education. Gupta (1982) and Shah (1987) estimated private costs of college education and found that among the main components of private cost, fee consisted of a very small proportion of the total private cost.

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Todaro (1985) discussed the issues of demand for and supply of education and concluded that private costs of education are inversely related to the demand for education. Private costs are high at low level of education because of the low government subsidies. Nair (1990), in his study, described the various types of costs and their return in the case of higher education. In the case of private cost of education, the study estimated the average per year expenditure on higher education in Kerala and showed that tuition fees accounted for minor proportion in the postgraduate courses during 1985-86. Rajkumari (1986) presents the vital points in the theoretical reconstruction of cost and benefit analysis of college education. In cost analysis, the three main components were student cost, institutional cost and opportunity cost. In the institutional cost (excluding value of college buildings), mainly three headings were undertaken. They were: (i) maintenance expenditure; (ii) non-recurring expenditure; and (iii) studentsfund expenditure. After detailed analysis of cost of college education, it was noted that average cost of all the three attributes were different. The behaviour of cost per institution for all the colleges on different attributes was also in different order. Taking all colleges together, the institutional cost has increased by 47 per cent during the study period. The study also shows that among the total cost, opportunity cost has made a big contribution, followed by student cost, and institutional cost. Ramachandran (1987) attempted to analyze the problems of higher education in India with special reference to the Kerala state for the period 1952-75. The study revealed huge growth in students‘ enrolment, number of institutions and expenditures during the study period. But the growth of expenditure was found to be higher as compared to enrolment and institutions. The bulk of public expenditure on higher education was spent on development and maintenance of arts and science colleges in Kerala, and the

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salary constituted the largest component in the total cost of education. While analyzing the cost of education, Kiranmayi (1989) studies the role of organizational structure, financial management and their weaknesses in the universities. It discussed the pattern of income and expenditure of the universities and suggested that there was an urgent need to evaluate their financial management. Ramamurthy (1989), in his study, tried to analyze in the case of Delhi University the impact of introducing computer system on its financial management. For this, the study take into account the financial performance, resource allocation, per student cost of different departments and percentage of expenditure of different heads. It indicates the possibility of better cost management in the university system. Sharma (1992) gives the state-wise detailed analysis of recurring and nonrecurring expenditure of the central, deemed and state universities for higher general institutions from the period 1982-85. The study reveals the income pattern, budgeting and accounting of finances of the university level institutions in India. And, he suggested following recommendations: (i) the universities should be given financial autonomy; (ii), the heads of departments should be delegated adequate financial powers; and (iii) the universities must prepare an accounts for themselves. Dutt (1995) analyzed the cost of education of 12 colleges affiliated to the Delhi University for the period 1976-77 and 1987-88. It was found that educational expenditure as a proportion to income has risen from 1.26 per cent in 1950-51 to 3.30 per cent in 1992-93, but in total plan outlay, it declined from 7.8 per cent in the First Five Year Plan (1951-56) to 4.5 per cent during the Sixth Five Year Plan (1980-85), while the plan-wise expenditure on the university education rose from 9 per cent in the First Five Year Plan to 19 per cent in Sixth Five Year Plan (1980-85). The average cost per student was worked out to be Rs. 4,994. Christo‘ study (1996) held that the

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cost of medical education in a self-financing college, without any government subsidy, was about Rs.2.25 lakh per annum. Similarly, the average cost of medical education at the Manipal Academy of Higher Education, for the year 1993-94 to199697, was about Rs. 1.60 lakh per annum for the post-graduate degrees and diplomas. Regarding the public, private and social costs of higher education on per unit basis, Salim‘s study (1997) is of worth quoting. It also enquires about the extent of government subsidization of higher education to the students according to their socioeconomic backgrounds with special reference to Kerala. This review revealed very interesting results regarding the cost estimates of higher education courses. The results show that during 1989-90, per student capital cost of engineering education was more than two-and-a half times higher than that of the general education. During1976-90, per pupil capital cost had declined marginally in the case of engineering education, while it increased in the case of general education, in spite of the steady rise in enrolment of students. Further, unit capital cost of government engineering college was higher than that of the private engineering college whereas that of the government art and science college is low in relation to its counterpart in the private sector. Among the various components of the unit capital cost, during 1989-90, the buildings and equipments together constituted almost 75 per cent of the cost of engineering colleges and 65 per cent of arts and science colleges. Over the period of fourteen years, per pupil share of equipments and books had increased in the engineering colleges, while it was the share of buildings and books which rose in the general education colleges. Over this period, salary remained as the major component in pushing up the recurring cost of education. Almost 66 per cent of the recurring cost of technical education and 61 per cent of general education was taken by this item. Regarding the estimation of private cost, according to the socio-economic background

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of the students, it was found that total private cost of engineering education was 21 per cent higher than that of general education. Interestingly, out of the total private cost, almost 50 per cent in the technical education and 61 per cent in the general education was allocated to incidental items of expenditure. Across the different components of academic costs, the college fee, private tuition and books expenditure earmarked for hostel expenses, travel and clothing. Further all students particularly played a significant role. In the case of incidental expenses, the largest share was the substantially reduced the costs borne by their households. PG engineering students received considerable amount of money by way of subsidies surprisingly, the net private cost of engineering education, which gives larger private benefits, was considerably lower than that of the general education. Finally, a regression analysis of factors influencing private cost of higher education showed household income as the major determinant. The estimates of social cost revealed that only about one-fifth of the social cost of engineering education was borne by the students, while nearly onehalf of the social cost of general education was incurred by them. The remaining part of the social cost was borne by the government/institution. The contribution of fees in the institutional cost was only marginal and moreover, it was declining over the time period. Heggade (1998) studied the resource allocation and pattern of expenditure on education in Karnataka state during 1981-90. It also measured the institutional cost of higher education and studied the management as well organizational problem of higher education in the state. Sood (2003), while estimating recurring cost of education, concludes that teachers cost account more than 90 per cent of recurring cost of school level education in India. In his study, Kumar (2004) measures the private cost of MBBS course in Kerala in 2000. It showed that pre-admission

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expenditure was Rs. 8,817 per student and the average post-admission annual private expenditure Rs. 13,703 including the hostel expenses. Further, the study shows that, the share of private cost was just 12.3 per cent in the total cost. However, institutional cost shares a whooping proportion of 87.70 per cent. The study also shows that major section of the students comes from the high income strata. And fees charged from students form only a minor component of private educational expenses of medical and para - medical courses in Kerala. Nearly, 90 per cent of the cost was incurred on nonfee expenses. Garg (1985) argued that the unit cost is most often expressed in terms of per student enrolled, but these can be expressed in other definable units such as per student graduated. The main classification of educational costs by the incidence of burden was (a) institutional costs which is sum of (i) current or recurring or operating costs and (ii) capital costs; (b) household or private costs which include (i) net tuition costs, i.e. fee paid minus financial aid received by a student and (ii) non-tuition costs; (c) social costs which is sum of (i) institutional costs (current costs and capital costs), (ii) private costs (non-tuition costs) and (iii) earning foregone. The major components of recurring costs in the study were: teachers‘ cost, non-teaching cost, consumable material cost, scholarships, and maintenance cost of infrastructure (playgrounds, repair and maintenance of capital assets, durables, unspecified items or miscellaneous) and organization of literary activities, recreation and cultural activities. The components of capital costs were the buildings and other capital installation, equipments apparatus, teaching aids, library books, periodicals, newspapers, etc. However, the private costs consisted of the tuition cost, non-tuition cost (it includes: additional cost of living in hostels, uniform cost, transport cost) and

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opportunity cost. This was the first study which calculated per unit cost of higher education both at the institutional and private levels in Punjab. The main conclusions of study were: (i) unit cost of education both at current and capital level had shown an upward trend; (ii) science departments had higher unit cost than that of others; (iii salary component constituted the major proportion of recurring cost in each department; (iv) subsidization of unit costs from public funds had increased over a periods of time; (v) economic status of university students was better than that of affiliated colleges; and (vi) demand for higher education was high from the households belonged to the administrative and professional services. Another significant study produced by Ghuman, Singh and Brar (2005) measures per unit recurring cost of higher education (general and professional) for Punjab. It measures the unit cost, financing and recovery of colleges and university level higher education. The study shows that there has been a strong growth of private initiative in higher education particularly in the professional higher education. It found that overall per unit recurring cost in the case of general higher education was Rs. 13,508 during 2004-05. Per unit recurring cost was higher in the urban areas colleges (Rs. 13,506) compared to the rural areas colleges (Rs. 10,118). However, ownership-wise, its level was the highest in the aided private colleges (Rs. 14,600), followed by the government colleges (Rs. 12,053), and the lowest in the unaided private colleges (Rs. 10,118). Component-wise, teachers‘ cost dominates across the ownership and locational categories. However, administrative cost was the second highest component of recurring cost, where it constituted between 18.16 per cent and33.22 per cent of unit recurring cost. In professional education, per unit overall recurring cost was Rs. 1, 17,555. Out of this, teachers‘ cost was Rs. 56,967 (48.50 per cent) and other costs Rs. 60,488 (51.49 per cent). Thus, like the general education, teachers‘

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cost and administrative cost constituted the substantial proportion of recurring cost across all the trades/courses of professional education in Punjab. The analysis of cost recovery of general and professional education in Punjab shows that its level was quite higher in the professional education than that of the general education. The share of total receipts in recurring cost was 95.72 per cent in general education, and 134.27 per cent in professional education. Moreover, fees and funds alone constituted 77.38 per cent of recurring cost of general education, and 97.34 per cent in professional education.) 2.14.7 International trends and private higher education in India: Of late, the debate initiated around the neo-liberal themes of privatization, deregulation, denationalization made its inroads into the realm of higher education with the advent of new political economy based on ―economic politics‖ applied to ―political markets‖.( Asha Gupta) Higher education is not an exception to these trends worldwide (Gupta, 2007). With the emergence of knowledge based and technology driven economies, we find a surge in the demand for highly skilled and technologically competent workforce. Worldwide 84 million students attend regular higher education institutions and about 66 million adults, including the working adults, attend some form of continuing education and training under Life Long Learning program. Whereas the demand for higher education is constantly rising, likely to be 160 million by 2025, the state support in terms of funding per student as unit, is declining (Glakas, 2003). We find shifts in expenditure from the state to the market and from the market to the household. In some cases, household is spending up to 33 per cent on higher education as it is seen as an embodiment of personal growth, social and global

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mobility and political and economic power. It has already become a US $3.2 trillion enterprise in itself. For example (Glakas, 2003): Worldwide 84 million students attend 20,000 colleges and universities. A total of 66 million adults and more than 50 per cent of the working people participate in some form of continuing education now. Higher education constitutes a US$3.2 trillion market. The entire developing world has only 15 per cent of the share. The global demand for higher education is likely to reach 160 million by 2025. India and China will be the two biggest countries seeking higher education. Demand is growing at the rate of 20 per cent per annum in India. Higher education is no longer elitist. It has become more accessible now. There is an increase in the role of household, private and corporate sector in higher education. We find a surge in online and for-profit private higher education. In 2000, global IT companies certified 1.6 million students worldwide with 2.4 million certificates in information technology itself. Higher education is no longer seen as solely state-funded socio-political priority but also as a service and trade in the wake of changing nature of the labour market and technological innovations. There is a surge in online and for-profit private in the wake of massification of higher education consumption due to the hyper-mobility in the wake of globalization and need for trained personnel having the ability of working comfortably

in

multi-cultural,

multi-lingual

and

multi-ethnic

settings(Asha

Gupta,2008).

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In his article „ Towards an Educated India: Academia – Industry Partnership”, in the Free Press Journal, Dr. R.Gopal expressed that extremely dynamic business world, and the rapidly developing knowledge based services economy have put in an increased demand

for professionals to merge the business

effectively. This is precisely the reason why amongst the various fields of knowledge, the desire for acquiring management qualifications is growing rapidly both amongst the fresh graduates and working executives. It is in this context that the proposal corporate- academic tie up becomes crucial. International Trends: Whereas some studies have been carried out on the need for higher education reforms, in general and privatization, in particular, not much has been published on the mushroom growth of private higher education during the last three decades except some studies such as Private Prometheus: Private Higher Education and Development and Private Higher Education: A Global Revolution by P.G. Altbach, Higher Education and State in Latin America: Private Challenges to Public Domain and the Unanticipated Explosion: Private Higher Education‘s Global Surge by Daniel C. Levy, Private Higher Education in Malaysia by M.N. Lee, Minban Education in China by F. Yan, Private Higher Education in Post-communist Countries: In Search of Legitimacy by S. Slantcheva, Private Sectors in Higher Education by R.L. Geiger, Earnings from Learning: the Rise of for-Profit Universities by Breneman, Pusser and Turner, Rethinking Public-Private Mix in Higher Education by Z. Gilani et al. 2.14.8 Private Higher Education in India: India has a long tradition of private higher education dating back to the Gurukul system 700 to 500 years before Christ. India has the reputation of having ―medieval cosmopolitan universities‖, especially at Taxila and Nalanda 2000 years ago and at

99

Vikramshila during the fourth and fifth centuries (Joshi, 1998), catching the attention of all those who had keen interest in diverse cultures and ―knowledge for the sake of knowledge‖. During colonial rule, it imbibed the British system of higher education and values. The first three universities, modelled on the University of London, were set up in 1857 at Mumbai, Chennai and Kolkata. The British Parliament was persuaded to authorize an expenditure of£10,000 annually to promote English literature, knowledge and science among the inhabitants of the British territories in India as early as 1813 (Mukherjee, 1971, quoted from Chitnis and Altbach, 1993, p. 376). Some of the institutions were also set up by foreign missionaries, such as, the St Stephens College in Delhi, Presidency College in Kolkata, St Joseph‘s College in Trichi, St Xavier‘s College in Chennai, etc. The main motive of such missionaries was to promote Christianity and western culture on the one hand and prepare Indian nationals for government employment, on the other. The Muslims too started Dar-alulum at Deoband in 1887 (Rudolph and Rudolph, 1972, p. 19). The prime objective behind such private initiatives was social transformation and not economic gains. At the time of independence in 1947, India inherited 20 universities and 496 colleges with 237,546 students (Basu, 2001, p. 171) and the private sector and the households played a substantial role in supporting higher education. During 1950-1951, the share of Indian government in higher education was just 49.4 per cent. It rose to approximately 80 per cent in early 1980s (Tilak, 1999, p. 129). The private sector comprised 57 per cent of the total higher education system by the 1980s and up to 75 per cent by 1990s (Patrinos, 2002). A private university could be established through a central or a state act by a sponsoring body, such as, a society registered under the Societies Registration Act of 1860, or a public trust or a company under section 25 of

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Company‘s Act of 1956. Though there were many private colleges prior to independence, there was not a single private university per se. Even today only 350 universities have the power to accord degrees and the rest are affiliated to them (Agarwal, 2006, p. 4645). International trends and private higher education in India: Of late, the debate initiated around the neo-liberal themes of privatization, deregulation, and denationalization made its inroads into the realm of higher education with the advent of new political economy based on ―economic politics‖ applied to ―political markets‖.( Asha Gupta) Higher education is not an exception to these trends worldwide (Gupta, 2007). With the emergence of knowledge based and technology driven economies, we find a surge in the demand for highly skilled and technologically competent workforce. Worldwide 84 million students attend regular higher education institutions and about66 million adults, including the working adults, attend some form of continuing education and training under Life Long Learning program. Whereas the demand for higher education is constantly rising, likely to be 160 million by 2025, the state support in terms of funding per student as unit, is declining (Glakas, 2003). We find shifts in expenditure from the state to the market and from the market to the household. In some cases, household is spending up to 33 per cent on higher education as it is seen as an embodiment of personal growth, social and global mobility and political and economic power. It has already become a US $3.2 trillion enterprise in itself. For example (Glakas, 2003): 

Worldwide 84 million students attend 20,000 colleges and universities.



A total of 66 million adults and more than 50 per cent of the working people participate in some form of continuing education now.

101



Higher education constitutes a US$3.2 trillion market.



The entire developing world has only 15 per cent of the share.



The global demand for higher education is likely to reach 160 million by 2025.



India and China will be the two biggest countries seeking higher education.



Demand is growing at the rate of 20 per cent per annum in India.



Higher education is no longer elitist. It has become more accessible now.



There is an increase in the role of household, private and corporate sector in higher education.



We find a surge in online and for-profit private higher education.



In 2000, global IT companies certified 1.6 million students worldwide with 2.4 million certificates in information technology itself.

Higher education is no longer seen as solely state-funded socio-political priority but also as a service and trade in the wake of changing nature of the labour market and technological innovations. There is a surge in online and for-profit private in the wake of massification of higher education consumption due to the hyper-mobility in the wake of globalization and need for trained personnel having the ability of working comfortably

in

multi-cultural,

multi-lingual

and

multi-ethnic

settings(Asha

Gupta,2008). In his article „Measuring Effectiveness of Management Education in B School – Caring out Niche, creating Competitive Advantage “ Published in a journal Edutech, Dr. R. Gopal stated, the need to satisfy consumers in any commercial enterprise is obvious , more so in today‟s context. One doubts whether there is any need to establish, the importance of creating „Customer Centric Organization, Well, there is, Customer‟s satisfaction is true not only for any

102

organization, but also for provider of management education – the Business School (B-School). International Trends: Whereas some studies have been carried out on the need for higher education reforms, in general and privatization, in particular, not much has been published on the mushroom growth of private higher education during the last three decades except some studies such as Private Prometheus: Private Higher Education and Development and Private Higher Education: A Global Revolution by P.G. Altbach, Higher Education and State in Latin America: Private Challenges to Public Domain and the Unanticipated Explosion: Private Higher Education‘s Global Surge by Daniel C. Levy, Private Higher Education in Malaysia by M.N. Lee, Minban Education in China by F. Yan, Private Higher Education in Post-communist Countries: In Search of Legitimacy by S. Slantcheva, Private Sectors in Higher Education by R.L. Geiger, Earnings from Learning: the Rise of for-Profit Universities by Breneman, Pusser and Turner, Rethinking Public-Private Mix in Higher Education by Z. Gilani et al. Private Higher Education in India: India has a long tradition of private higher education dating back to the Gurukul system 700 to 500 years before Christ. India has the reputation of having ―medieval cosmopolitan universities‖, especially at Taxila and Nalanda 2000 years ago and at Vikramshila during the fourth and fifth centuries (Joshi, 1998), catching the attention of all those who had keen interest in diverse cultures and ―knowledge for the sake of knowledge‖. During colonial rule, it imbibed the British system of higher education and values. The first three universities, modelled on the University of London, were set up in 1857 at Mumbai, Chennai and Kolkata. The British Parliament was persuaded to authorize an expenditure of£10,000 annually to promote English

103

literature, knowledge and science among the inhabitants of the British territories in India as early as 1813 (Mukherjee, 1971, quoted from Chitnis and Altbach, 1993, p. 376). Some of the institutions were also set up by foreign missionaries, such as, the St Stephens College in Delhi, Presidency College in Kolkata, St Joseph‘s College in Trichi, St Xavier‘s College in Chennai, etc. The main motive of such missionaries was to promote Christianity and western culture on the one hand and prepare Indian nationals for government employment, on the other. The Muslims too started Dar-alulum at Deoband in 1887 (Rudolph and Rudolph, 1972, p. 19). The prime objective behind such private initiatives was social transformation and not economic gains. At the time of independence in 1947, India inherited 20 universities and 496 colleges with 237,546 students (Basu, 2001, p. 171) and the private sector and the households played a substantial role in supporting higher education. During 1950-1951, the share of Indian government in higher education was just 49.4 per cent. It rose to approximately 80 per cent in early 1980s (Tilak, 1999, p. 129). A private university could be established through a central or a state act by a sponsoring body, such as, a society registered under the Societies Registration Act of 1860, or a public trust or a company under section 25 of the Company‘s Act of 1956. Though there were many private colleges prior to independence, there was not a single private university per se. Even today only 350 universities have the power to accord degrees and the rest are affiliated to them (Agarwal, 2006, p. 4645). 2.14.9 Faculty Retention: Teacher attrition has been a topic in the Education literature for many years. It has been claimed that teacher attrition is a major problem in our schools and that between 20% and 50% of beginning teachers decide to leave the profession in the first three to five years (Ewing, 2001; Ewing & Smith, 2002). Teaching is usually considered a

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vocation, one involving a long term career path. Manuel (2003, p. 142) states that teaching isn‗t usually a ―drop in, drop out or revolving door type profession. Huberman as early as 1989 established that those who leave the profession usually do so in the first five years of entering the profession. For beginning teachers, how they survive the first year, if they do, can be a significant factor in decisions about remaining in or leaving the profession (Lang, 1999). For example, a 2003 Victorian Department of Education and Training Report reported that in the United States, a third of teachers leave the profession within three years and almost half within five years. In Britain, a 2003 survey by the University of Buckingham found that 30 per cent of British teachers who left teaching that year had been in the profession for less than five years (Hogan, 2007). The problem of faculty turnover has afflicted all disciplines, particularly in the last ten to twenty years. The market for Ph.D.s outside academia has grown along with the dispersion of knowledge-based activity throughout the economy (Bowen and Schuster, 1986). Those with advanced degrees have proven their employability in a variety of fields. Considering that professors are paid roughly 25 to 30% less than similarly educated professionals, there is cause to worry that an increasing number of faculty will leave for the private sector (Bell, 2001). The benchmark study of faculty mobility was conducted by Caplow and McGee and published in 1958 as ‗The Academic Marketplace‘. Thirty years later, Burke replicated their study, producing ‗The New Academic Marketplace‘ in 1988. Burke found that the market for professors had become radically different over those three decades. Beginning teachers are leaving their jobs at an alarming rate that harms both the school, especially urban ones, and student performance (Ingersoll & Smith, 2003; Howard, 2003). Remaining employees are often forced to shoulder increased workloads without a rise in pay. Heightened turnover often has a demoralizing effect

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on those who remain, as well as a negative effect on prospective employees. More concretely, high turnover is associated with low job satisfaction, poor productivity, and high stress among employees (Olsen, 1993). In his article “Towards an Educated India: Sustainable Strategies for a B-School in India”, in the Free Press Journal, Dr. R. Gopal expressed that faculty is the back bone of any B-School. Faculty shortages are the order of the day inspite of the 6th pay commission. Today commitment and loyalty from the faculty towards the student and the organization lacks. Co-creation of the faculty, 360 degree faculty feedback, treating the faculty as family members by celebrating their Birthdays and picnic etc., could retain the faculty pool.‟ In the research paper, Does Academic Leaders Influence Staffs‟ Commitment to Service Quality in Malaysia?, Raemah Abdullah Hashim from University of Management and Technology and Rosli Mahmood from University Utara Malaysia― discussed the relationship between leadership style of transformational and the commitment to service quality among academic staffs in public and private Malaysian Universities. It has been argued that excellent service quality performance is one of the key factors in building niche and having competitive edge that separates one from its competitors nationally and globally. Total useable questionnaires were 387 with a response rate of 36 percent. The result revealed that there is a significant relationship between transformational leadership style and commitment to service quality among academic staff at the Malaysian universities. This study implies to the policy makers and academic leaders at the universities that they should focus in developing their academic staff, by tapping their potentials, inspiring them, promoting collaboration, motivating and reinforcing positive attitudes towards commitment to service quality.

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Nienhuis (1994) describes faculty as mobile, loyal to the discipline rather than the institution. Considering the indications of an upward swing in both components, it is safe to assume that faculty turnover is causing greater problems for many administrators. Faculty who leave voluntarily tend to be characterized by a high achievement orientation (Barnhart, 1995) Bowen and Schuster‗s American Professors: A National Resource Imperilled, combining several studies, reports a 4% annual rate of attrition in early 1980s. Their definition of attrition, distinct from turnover, indicates the number of faculty who leave academia each year for reasons other than retirement. This figure does not include those faculties who departed for other postsecondary institutions; the rate of turnover as defined here must have been higher than the 4% attrition rate. Based on their studies, Bowen and Schuster predicted that attrition (not turnover) might average 4% per year into the late 1990s and might even reach 6% by 2000. They added that if faculty positions become less economically attractive compared to positions in private industry, the rate of attrition could rise substantially. Though faculty salaries do lag considerably behind those of industry, a fairly large supply of PhDs in most fields has made faculty positions highly prized, thus potentially reducing turnover. Chairpersons wishing to retain faculty are aware that they cannot simply throw money at dissatisfied employees. Salary does not always provide adequate recognition or ensure contentment (Nienhuis, 1994). One study found that higher compensation levels increased the retention of assistant and associate professors, but had no effect on retaining full professors (Gill et al., 1992). The same study reported that six of the top seven reasons for departing were intangible benefits such as research opportunities. Naturally, faculty compare not only their salaries to those in other professions, but to other professors, in and outside of their institutions. Universities and college

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administrators must be keenly aware of the salary and benefits packages offered by comparable institutions, but they must also watch out for disparities between and especially within their own departments. Serious morale and collegiality problems are posed when salary ranges are wide, and especially if junior faculty is paid higher than senior faculty. One study found that 27% of universities had used this particular tactic in an effort to recruit rising stars (Gill et al., 1992). In general, some research suggests that perceived equity of pay may be a more important determinant of commitment and satisfaction than basic level of pay (Mowday et al., 1982). Administrators should watch for this issue of fairness and not the simple economic bottom line. There is also non-salary incentives that can help recruit and retain faculty without raising salaries. One is to speed up the tenure clock. The promise of lifetime job security is certainly alluring, and can compensate for lower pay. Dunn and Bradstreet one of the leading consulting houses had elicited Dr.Gopal‟s views on the Indian Education especially w.r.t B- Schools. He expressed that every faculty should be encouraged to attend Faculty Development Programs, write research papers, and attend conferences. Faculty should be encouraged to enrol him / her for the PhD program and incentives given-like reduction in teaching load. Feedback should be taken from the students on a periodically basis and this must be communicated to the faculty concerned. This helps in improving the quality of teaching. Consultancy and Management Development programs should also be encouraged by the Institute. (S.J.Dhopte, 2011) In addition to early promotion, institutions can offer more generous research allowances, more frequent leaves of absence, and reduced teaching loads (Bowen & Sosa, 1989). While each of these tactics has economic consequences, a careful

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combination of incentives and salary can end up saving money and retaining more faculties. Also, empirically, programs of communication intervention can improve job satisfaction, which directly supports the link between communication and job satisfaction. The crux of the teaching profession lies in communication, and communication is a significant and integral component of teacher job satisfaction (Miller et al., 1988), but one major gap is the paucity of research directly dealing with how communication variables affect teacher job satisfaction. Teacher job satisfaction is often cited and rendered important in both research on teacher attrition and teacher retention (Roach, 1991; Voke, 2002; Stockard & Lehman, 2004). First, some researchers and scholars tried to understand the high teacher turnover rate among beginning teachers by investigating the reasons and causes behind both teacher retention and teacher attrition (Connolly, 2000; Ingersoll, 2003; Ingersoll & Smith, 2003; Howard, 2003; Inman & Marlow, 2004; Heller, 2004; Stockard & Lehman, 2004). Moreover, teacher job satisfaction is frequently associated with burnout, work quality and professionalism. Some scholars have focused exclusively on burnout in the teaching profession (Ebeling, 1983; Starnaman & Miller, 1992; Evan, 1999; Ven Der Doef & Maes, 2002). Researchers try conducting model tests and examine hypotheses of communication, burnout, organizational stressors and outcomes, and they discover that role stressors, workloads, work assessments, and professionalism influence teachers‘ perceptions and attitudes towards their job satisfaction. There are many other ways institutions can actively seek to retain more faculty members. One is to address quality of life issues more thoroughly, which could mean providing assistance with housing or sponsoring faculty clubs. Collegiality is an oftenoverlooked part of the turnover equation, although majorities of the faculty who leave voluntarily cite personal factors such as relationships with colleagues as reasons for

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their departure (Johnsrud & Heck, 1994). Other strategies that have met with success include spousal hire programs, formalized training programs for department chairs, formal mentoring programs for all probationary faculties, and explicitly written guidelines for tenure (Harigan, 1999).An oft-missing component of graduate education is preparation for the day-to-day life of the professor. That is, graduate students learn to be scholars, with little attention given to the other tasks a professor must complete. Increased attention to this matter in graduate training, along with orientation programs for new faculty, should make professors expectations for their careers more realistic, and reduce their interest in changing jobs. High levels of stress characterize the early years of academic appointment, but through the efforts of colleagues and superiors, they can be reduced. Deans, chairs, and senior faculty need to perceive support of new faculty as an investment in the success of the individual, the department, and the institution (Olsen, 1993). Recruiting top faculty is a major challenge for both newer schools and established institutions. Even though the demand for business education has been growing steadily over the last decade, the production of PhD-trained faculty has not risen to satisfy that demand. On the contrary, it has been declining, making it increasingly difficult for business schools to increase their faculty to meet the demand for business programs. Presently, the biggest challenge faced by technical educational institutions in India is the acute shortage of qualified and competent faculties (Times News Network, 2006). The genesis of this lies in rapid mushrooming of technical institutions on account of surging demand of technically trained manpower by fast growing industrial sector of Indian economy; and abysmally low number of PhDs /Fellows in technical disciplines from premier institutions opting for the teaching careers on account of possibility of higher incomes from the non-academic career

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options (Rosenfield & Jones, 1988). Further the problem of faculty shortage has been accentuated due to the entry of foreign universities in the India post to enactment of provisions of GATS Agreement to education sector in India in April 2005. This has resulted in a scenario where technical institutions in India are competing with each other to attract & retain for them the best available faculty talent. While most higher education institutions, especially professional institutes and colleges are able to develop the needed skills in students for success in the working world, experience shows that the management of upcoming technical and management institutions has failed to be just and fair in the treatment of their faculties. (Rachit gupta*; Hemant Chauhan**; Palki setia***, 2011) Teacher job satisfaction is often cited and rendered important in both research on teacher attrition and teacher retention (Roach, 1991; Voke, 2002; Stockard & Lehman, 2004). Hence it is required to manage talents and make them feel belonging and valuable towards institution. Lynn (2002) supported the idea that educational leaders should provide professional learning and growth opportunities in order to motivate teachers and to enhance their performance so that business schools can strategically manufacture the quality products in this competitive era of today and teacher could excel in their expertise areas. 2.15 Research Gap The study is one of its kinds. The mentioned literature of leadership styles within academic sector and employee commitment within academic institutions as well as the thorough literature on the education sector as given in the research study itself is the evidence that no literature was found on the relationship between leadership styles and employee commitment, especially in the academic sector of the Indian Subcontinent.

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CHAPTER 3 EDUCATION SYSTEM IN INDIA

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CHAPTER 3 EDUCATION SYSTEM IN INDIA 3.1 Introduction to the Education System in India: India is one of the world‘s oldest civilisations, dating back to 2,500 B.C. Aryan tribes from the northwest invaded the country in about 1,500 B.C.; their merger with the earlier Dravidian century and Turkish in the twelfth century were followed by those of European traders, beginning in the late fifteenth century. By the nineteenth century, Great Britain had assumed political control of virtually all Indian lands. Mohandas Gandhi and Jawaharlal Nehru helped end British colonialism through non-violent resistance. India achieved independence in1947. The Republic of India was established in 1947 and comprises 32 states and Union Territories, the latter controlled by the central government. The country covers about 3.3 million square kilometres with a population of 1.029 billion and dominates southern Asia. It is slightly larger than one-third the size of the United States. India is home to 17% of the world‘s total population, accommodated in an area that is 2.4% of the world‘s total area. India has the world‘s twelfth largest economy and the third largest in Asia behind Japan and China, with a total GDP of around $570 billion. Services, industry and agriculture account for50.7%, 26.6% and 22.7% of GDP respectively. The United States is India‘s largest trading partner. Bilateral trade in 2003 was $18.1 billion. There are some 16 official major languages and 844 dialects. Among these languages, English enjoys associate status, but is the most important language for national, political, and commercial communication. Hindi is the national language and primary tongue of30% of the people. The other official languages are Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, 113

Kashmiri, Sindhi, and Sanskrit. Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language. Hinduism (80.5%), Islam (13.4%), Christianity (2.3%), Sikh (1.9%) are the major religions in the country. The literacy rate is 52% (of the total population of age 15 or older). 3.2 STRUCTURE OF EDUCATIONAL SYSTEM IN INDIA:

Figure 6. Source: Adapted from Dogra, S. and Gulati, Anjli (2006). Indian Education System comprises stages called Nursery, Primary, Secondary, and Higher Secondary, Graduation & Post Graduation. Some students go in different stream after Secondary for 3 Years Technical education called Polytechnics. There are broadly four stages of pre-university school education in India. Names given by the different State Governments might differ: 1. Lower Primary (class 1-5) 2. Upper Primary (class 6-8) 3. Secondary (class 9-10), and 4. Higher Secondary (class 11-12). Lower Primary and Upper Primary together are named ‗Middle School‘; Middle School and Secondary together are named high school. Overall, schooling lasts 12 114

years, following the "10+2 pattern". However, there are considerable differences between the various states in terms of the organizational patters within these first 10 years of schooling. The government is committed to ensuring universal elementary education (primary and upper primary) education for all children aged 6-14 years of age. Primary school includes children of ages six to eleven, organized into classes one through five. Upper Primary and Secondary school pupils aged eleven through fifteen are organized into classes six through ten, and higher secondary school students ages sixteen through seventeen are enrolled in classes eleven through twelve. In some places there is a concept called Middle/ Upper Primary schools for classes between six to eight. In such cases, classes nine to twelve are classified under high school category. Higher Education in India provides an opportunity to specialize in a field and includes technical schools (such as the Indian Institutes of Technology), colleges, and universities. In India, the main types of schools are those controlled by: • The state government boards like SSC, in which the vast majority of Indian Schoolchildren are enrolled, • The Central Board of Secondary Education (CBSE) board, • The Council for the Indian School Certificate Examinations (CISCE) board, • National Open School and • "International schools." These schools mimic the schools in the West in pattern and syllabi and are considerably more expensive than regular schools. The exams conducted have the syllabus of anyone of the above-mentioned Councils or Boards. Overall, according to the latest Government Survey undertaken by NUEPA (DISE, 2005-6), there are 1,124,033 schools.

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3.2.1 Pre-primary Education: Pre-primary education in India is not a fundamental right, with a very low percentage of children receiving preschool educational facilities. The largest source of provision is the so called Integrated Child Development Services (or ICDS); however, the preschool component in the same remains weak. In the absence of significant government provisions, private sector (reaching to the relatively richer section of society) has opened schools. Provisions in these kindergartens are divided into two stages- lower kindergarten (LKG) and upper kindergarten (UKG). Typically, an LKG class would comprise children3 to 4 years of age, and the UKG class would comprise children 4 to 5 years of age. After finishing upper kindergarten, a child enters Class 1 (or, Standard 1) of primary school. Often kindergarten is an integral part of regular schools. Younger children are also put into a special Toddler/Nursery group at the age of 2–2½. It is run as part of the kindergarten. However, crèches and other early care facilities for the underprivileged sections of society are extremely limited in number. There are some organized players with standardized curriculums such as the Shemrock Preschools which cover a very small share of the population. Overall, the % enrolment is pre-primary classes to total enrolment (primary) is 11.22 (DISE, 200506). 3.2.2 Elementary Education During the eighth five-year plan, the target of "universalizing" elementary education was divided into three broad parameters: Universal Access, Universal Retention and Universal Achievement i.e., making education accessible to children, making sure that they continue education and finally, achieving goals. As a result of education programs, by the end of 2000, 94% of India's rural population had primary schools within one km and 84% had upper primary schools within 3 km. Special efforts were

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made to enrol SC/ST and girls. The enrolment in primary and upper-primary schools has gone up considerably since the first five-year plan. So has the number of primary and upper primary schools. In 1950-51, only 3.1 million students had enrolled for primary education. In 1997-98, this figure was 39.5 million. The number of primary and upper primary schools was 0.223 million in 1950-51. This figure was 0.775 million in 1996-97. In 2002/2003, an estimated 82% of children in the age group of 614 were enrolled in school. The Government of India aims to increase this to 100% by the end of the decade. To achieve this Government launched Sarva Shiksha Abhiyan. The strategies adopted by the Government to check drop-out rate are: • Creating parental awareness • Community mobilization • Economic incentives • Minimum Levels of Learning (MLL) • District Primary Education Programme (DPEP) • National Programme of Nutritional Support to Primary Education (Mid-day Meals Scheme) • The 86th Constitutional Amendment Act was passed by the parliament to make The Right to Elementary Education a fundamental right and a fundamental duty. • National Elementary Education Mission • A National Committee of State Education Ministers has been set up with the Minister of Human Resource Development as the Chairperson of the committee. • Media publicity and advocacy plans. • Sarva Shiksha Abhiyan However, the poor infrastructure of schools has resulted in fairly high dropout rates. Thus, according to the DISE 2005-6 data 9.54% of the schools remain single

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classroom schools and 10.45% schools lack classrooms. The average pupil teacher ratio for the country is 1:36, with significant variations to the upper end and 8.39% schools are single teacher schools and 5.30% schools have more than 100 children for each teacher; 30.87% schools lack female teachers. Only 10.73% schools have a computer. While the education system has undoubtedly undergone significant progress, a lot still needs to be done to enhance the learning of children from scheduled caste (or Dalit) families, scheduled and primitive tribes and religious minorities. Girls' enrolment continues to lag behind that of boys. 3.2.3 Non-graduation market While availability of primary and upper primary schools has been to a considerable extent been created, access to higher education (especially in rural areas) remains a major issue in rural areas (especially for girls). Government high schools are usually taught in the regional language, although some (especially urban) schools are English medium. These institutions are heavily subsidised. Study materials (such as textbooks, notebooks and stationary) are sometime but not always subsidised. Government schools follow the state curriculum. There are also a number of private schools providing secondary education. These schools usually either follow the State or national curriculum. Some top schools provide international qualifications and offer an alternative international qualification, such as the IB program or A Levels. Indian Education System comprises stages called Nursery, Primary, Secondary, and Higher Secondary, Graduation & Post Graduation. Some students go in different stream after Secondary for 3 Years Technical education called Polytechnics. Higher Education in India provides an opportunity to specialize in a field and includes technical schools (such as the Indian Institutes of Technology), colleges, and universities. (Rachit Gupta*; Hemant Chauhan**; Palki Setia***, 2011)

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3.2.4 Higher Education Higher education in India has evolved in distinct and divergent streams with each stream monitored by an apex body, indirectly controlled by the Ministry of Human Resource Development and funded by the state governments. Most universities are administered by the States, however, there are 18 important universities called Central Universities, which are maintained by the Union Government. The increased funding of the central universities gives them an advantage over state competitors. The Indian Institutes of Technology were placed 50th in the world and 2nd in the field of Engineering (next only to MIT) by Times Higher World University Rankings although they did not appear in the Shanghai Jiao Tong University Academic Ranking of World Universities. The National Law School of India University is highly regarded, with some of its students being awarded Rhodes Scholarships to Oxford University, and the All India Institute of Medical Sciences is consistently rated the top medical school in the country. Indian School of Business, Hyderabad and the Indian Institutes of Management (IIMs) are the top management institutes in India. The private sector is strong in Indian higher education. This has been partly as a result of the decision by the Government to divert spending to the goal of universalisation of elementary education. 3.3 Accreditation Accreditations for universities in India are required by law unless it was created through an act of Parliament. Without accreditation, the government notes "these fake institutions have no legal entity to call themselves as University/Vishwvidyalaya and Academic/employment purposes." to award ‗degree‘ which are not treated as valid for The University Grants Commission Act 1956 explains, "the right of conferring or granting degrees shall be exercised only by a University established or incorporated

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by or under a Central Act , or a State Act, or an Institution deemed to be University or an institution specially empowered by an Act of the Parliament to confer or grant degrees. Thus, any institution which has not been created by an enactment of Parliament or a State Legislature or has not been granted the status of a Deemed to be University is not entitled to award a degree." Accreditation for higher learning is overseen by autonomous institutions established by the University Grants Commission: • All India Council for Technical Education (AICTE) • Distance Education Council (DEC) • Indian Council of Agricultural Research (ICAR) • Bar Council of India (BCI) • National Assessment and Accreditation Council (NAAC) • National Council for Teacher Education (NCTE) • Rehabilitation Council of India (RCI) • Medical Council of India (MCI) • Pharmacy Council of India (PCI) • Indian Nursing Council (INC) • Dental Council of India (DCI) • Central Council of Homeopathy (CCH) • Central Council of Indian Medicine (CC) Higher education in India quantitatively ranks third in the world after China and the US. There are around 16,000 colleges, 100 deemed universities, 20 central universities and 215 state universities.

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3.4 Administration of Education The central and the state governments have joint responsibility for education, with freedom for the state governments to organise education within the national framework of education. Educational policy planning is under the overall charge of the central Ministry of Human Resource Development which includes the Department of Elementary Education and Literacy and the Department of Secondary and Higher Education. The Ministry is guided by the Central Advisory Board of Education (CABE) which is the national level advisory body. The education ministers of all the different states are members of the board. The National Council of Education Research and Training (NCERT) (1961) defines the National Frame Curriculum for classes I - XII. It also functions as a resource centre in the field of school development and teacher education. State Councils of Educational Research and Training (SCERT) are the principal research and development institutions in all the states. At secondary level, school boards at state level affiliate schools and set examination standards in accordance with the national framework. The Central Board of Secondary Education (CBSE) and Council for Indian School Certificate Examinations (CISCE) cover all India besides the National Institute of Open Schooling (NIOS). 3.5 Types of Colleges: Colleges were mainly established by the governments or private trusts or societies. A government college is one directly established by a state government. It functions like any their government department. The expenditure of the college is met directly by the government, through appropriations voted by the legislature; all the personnel working in the college, including teachers, are government employees. All their terms and conditions of service are the same as those applicable to the civil service (recruitment, promotion, and retirement and staff benefits. Perhaps, the major 121

departure from the regular civil servants is that teachers in government colleges have vacations. A private college is established by a Trust or a Society registered under the relevant laws in the country. This registration is essential to give the college a legal status. The management of the college then vests in the Trustees, or the governing body of the society. The Trust Deed or the Memorandum of Association of the society would provide for the composition of the Board of Trustees or the Governing body, and the manner of administering the college and its properties. The promoters (the Trust/Society) make the initial investments (land, buildings, equipment and staff) and generally seek some support from the concerned state government for maintaining the college in later years, as education remains a state responsibility (the notion here is that private initiatives are only to supplement the state efforts). There is a third category of colleges, called the University Colleges. These are established and maintained by the universities themselves either on their own campuses or elsewhere in their jurisdiction. Such university colleges will have a management scheme decided by the university which appoints a Managing Committee or a Governing Body. For all practical purposes, these colleges are integral parts of the university which provides the funding and controls its work though they have a technically differentiated management structure. These colleges are also known as constituent colleges. 3.5.1 Colleges and the Universities: Almost one hundred and sixty years ago, the British said that the purpose of establishing universities in India was to encourage education in European languages and science by conferring degrees on those who have shown evidence of having pursued a course of study in an affiliated institution and passed the required examination. It is unfortunate that this notion of passing an examination and securing a degree continues to dominate the psyche of many Indian students who enrol in

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colleges. It is this relationship between the university and the college is what is known as 'affiliation'. Most Indian Universities require the fulfilment of the following conditions for affiliation: The college should have a legal status (the management should be by a Government, or a registered Trust or Society). It should be providing instruction for courses of study prescribed by the University. It should have the infrastructure and staff to organise and conduct teaching according to the standards prescribed by the university. Teachers should have qualifications laid down by the university. The management should undertake to meet all the expenditure required for the maintenance of the college. There could be a long list of these conditions going into minute details of several requirements. It is the fulfilment of these requirements that earns for the college the status of affiliation. And once affiliated, all that the college has to do is to teach the courses prescribed by the university according to the syllabi set by it. After completing the prescribed period of study, the college can present the students at the university held examinations, and those who qualify will get the degrees. In this scheme, teachers in colleges have not initiative left to them to decide what to teach and how. This situation often leads to lack of enthusiasm in teaching and indifferent teacher-student interaction. These in turn have serious consequences for the quality of education. 3.5.2 Autonomous colleges: It was to remedy some of these inadequacies of the affiliating system that a proposal to convert several colleges into autonomous institutions was seriously canvassed in 123

the National Policy on Education 1986. The substance of this proposal was a transformation of the existing university - college relationship in which colleges could take up a lot more initiative while maintaining their affiliated status. The proposal involved: the university concerned declares selected colleges as autonomous colleges after satisfying itself about the record of its performance, its commitment to quality, teachers' qualifications and attainments, the quality of management and its capacity to raise resources; on such declaration, the college would be free to prescribe its own courses of study, design the curricula, determine the teaching methods and practices, hold its own examinations and decide its own evaluation systems; the university concerned will award the degrees. The response to this scheme was less than enthusiastic. Though it was envisaged that about 500 colleges would become autonomous during the period up to 1990, the figure has reached 150 marks at the end of 1999. The reasons for this tardy progress are: college teachers see the proposal as a device to break their collective strength by separating the managements of several colleges from the existing unified management structure of the affiliating university; teachers and employees feel that the managements of colleges (government and private) will become arbitrary as they will go out of the governing discipline of the university; teachers apprehend an increase in their workload with no corresponding benefits; students fear that their load will also increase as they will have more to learn; Some universities are reluctant to lose their more prestigious institutions from their hold.

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Whatever the reasons, the fact remains that a necessary and innovative reform which would have brought the college' teachers centre stage in higher education is languishing for want of support from those for whom it was designed and developed. Managing higher education institutions in India is just like a junction, how to show the path to the future nation builder of our country. There are very hue and cry situations/difficulties in present Indian higher education about what to do and what not to do. It becomes so sensitive that it creates conflict in inter and intra management of higher education institutions. In recent years there have been debates and controversies regarding management of higher education institutions so as to improve their efficiency. And this has attracted the attention of academics and researchers in the field of higher education. One cannot use a single parameter to identify the best way of managing an institution of higher learning effectively and efficiently. However researchers have identified a set of principles for the above mentioned purpose. We very often use the word ―organization‖ and ―institution‖ we must however, make distinction between the two. While an organization is both a system of consciously coordinated activities and a rational instrument engineered to do a job, an institution is a responsive, adaptive organism which is the natural product of social needs and pressures. An organization is an artificially created system which strives to maximise the attainment of objectives and of efficiency in management. The organization, in this sense, continues to be outside the culture of the society in which it functions. An institution is ―infused with values‖ and it comes to symbolise the community‘s aspirations. If we look into this definition of an institution there will be general consensus that any institution of higher learning, be it a college or university, has to play a very broad spectrum of societal role. Hence, before building up the argument on the managerial components of higher education institutions, we must not forget

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these fundamental aspects. (A Report: Management of Higher Education: Institutional Level) 3.6 Universities: The Organisational Framework: The birth of the modern university took place in India in 1857. For almost half a century, the main functions that universities performed were to grant affiliation to colleges, to hold examinations and to award degrees. It was only in 1904 that Indian universities (there were only four of them) were given the power to establish departments of teaching, appoint teachers and provide for the instruction of students directly enrolled by them. It meant that the number of new colleges seeking affiliation came down; it also paved the way for the establishment of new teaching universities. Some of these new universities at Dacca, Aligarh, Banaras, Rangoon, Patna and Nagpur were established as teaching and residential universities. This was soon followed by similar universities set up by several princely states that comprised British India before independence. Around the same period, a number of institutions, founded primarily to promote a nationalist system of higher education (as against the modern university modelled on the British pattern) also came up in several parts of the country. These institutions functioned outside the formal structure of the university system during the British period, and were co-opted into the formal system after independence. The constitutional dispensation did not permit the central government to establish universities till it was revised in1977. Nevertheless, it was inevitable that certain special institutions were required to be set up by the central government, and a chain of new institutions called 'Institutions of National Importance' were soon set up. The Indian Institutes of Technology, the All India Institute of Medical Sciences, etc. come in this category, adding to the variations in structures.

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3.6.1 Structure of universities: India has central and state universities, unitary, federal and affiliating universities, institutions of national importance, institutions deemed to be universities and open universities. The typical pattern, however, is of a state university with major financial support from a state government and support for its developmental programmes from the central government via the University Grants Commission (UGC) or the AICTE. On a functional basis, institutions of higher education consist of multi-faculty universities, single faculty universities (e.g. agricultural, technological and medical universities,) and institutions of national importance like IITs, AIIMs, etc. in addition to institutions deemed to be universities (BITS, IISc) and specialized universities like women's universities, language universities, Ayurveda universities, etc. The institutions of higher learning existing at present in India fall into the following broad categories: Universities established under Acts of Parliament and state legislatures are generally known as Central Universities and State Universities respectively (there are only 15 Central Universities in India in 1999). Almost all these Universities are either affiliating-cum-teaching or only teaching universities. They are also called federal or unitary universities. Besides general universities which are engaged in teaching and research in all the traditional disciplines, there are universities devoted to clusters of specialised disciplines like agriculture, medicine, technology, languages and law. The pattern and structure of governance of most of these universities are similar; the management responsibility vesting with an Executive Council (also known as syndicate or Board of Management) and the academic responsibility vesting with the Academic Council (also known as Senate or Academic Senate). Following are the different types of universities functioning in India on the basis of their structural patterns.

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3.6.1.1. Affiliating universities The affiliating types of universities have a number of colleges affiliated to a single university after satisfying the conditions laid down by the universities. The majority of Indian universities are primarily of the affiliating type. In the affiliating system, the university concerned prescribes the courses of study, holds the examinations and awards the degree while all the teaching is done by the colleges. The university has very little to do with appointment of teachers, and the adrninistration of day-to-day academic functioning of the colleges. All it does is to periodically review the facilities available to them on the basis of which affiliation is renewed; the major preoccupation of the affiliating university continues to be conducting examinations. The teachers in the affiliated colleges have very little say in the framing of courses for long, such universities remained only affiliating and examining bodies with no teaching and research The University Act of 1904 made provision for teaching in the universities as well as the appointment of the teachers by the university. Thus the model of teaching and affiliating universities emerged at the beginning of this century. This model accommodated not only the affiliation of colleges but also teaching students in the university departments and its constituent colleges. Research has also been an important activity of this type of universities. With the multiplication of the number of universities, it became necessary to assign to each of them specific temporal limits so that there are no jurisdictional conflicts in the matter of granting affiliation to colleges. This statutory assignment of jurisdiction (normally a group of districts) really meant that colleges located in those areas did not have any choice in seeking affiliation to a university. Their affiliation to the university in whose jurisdiction they were located became compulsory. In the case of universities which were purely teaching this problem did not arise as their operations did not go beyond

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the campuses on which they were functioning. Nevertheless, their legislation still defined a jurisdiction, corresponding to the campus area, so that the territorial limits within which the universities can exercise their authority and perform their functions are clearly specified. 3.6.1.2 Unitary Universities: These are of relatively recent origin in India; they are modelled after the European universities or their more contemporary counterparts in the United States. They are essentially teaching campuses where post graduate studies and research or sometimes undergraduate as well as post graduate classes are held. It directly controls all aspects of curriculum transaction, including curriculum planning, teaching and examinations. A typical unitary university comprises of several schools or faculties, each of which, in turn comprises several departments. The school, faculty and departments are not loose administrative units. They are more academic than administrative organs. All the teachers are appointed by the university, and they have greater representation on the university bodies and serve much greater role in shaping the academic decisions of the university. It is much easier in such universities to introduce innovative changes in terms of courses and other curricular and examination practices. It must, however be admitted that although these universities have, perhaps, responded to a large extent to the need for attaining excellence, their response to the demand for access for a greater number of students, has not been as impressive as in the affiliating universities. 3.6.1.3 Federal Universities: These universities do not affiliate colleges; instead they have constituent colleges, whose academic as well as administrative functions are clearly the responsibility of the university. The university controls the design of courses, selection of teachers, and

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supervision of teaching activities and conduct of examination in constituent colleges. Teachers in the constituent colleges have greater representation on the university bodies in comparison with those in affiliated colleges. With the pressure of the number of colleges, this model has over time become ineffective. For example, Delhi University used to be largely a federal university, but now it has a more complicated structure with both constituent as well as affiliated colleges in addition to its post graduate campuses. 3.6.2 Universities according to role functions: The functional types of the universities in India: 3.6.2.1 Agricultural Universities: ‗Soon after independence, Indian policy makers recognised the need for modernisation of the agricultural sector. This essentially meant creating an infrastructure for preparation of trained professionals in the field and for generating new and vital technologies related to agriculture through research and development and for making this know how accessible to farmers. Creation of agricultural universities was primarily to institutionalize the response to the demands on Indian higher education. The first agricultural university was the GB Pant University of Agriculture and Technology at Pant Nagar, Uttar Pradesh. At present, 27 agricultural Universities provide education at undergraduate and postgraduate levels and undertake research in agricultural and veterinary sciences. In fact extension work is increasingly being considered as the legitimate responsibility of the university in India, and credit for this should go mainly to the model set by the agricultural universities. The Indian Council of Agricultural Research (ICAR) does most of the funding for these universities. Most agricultural universities are single campus

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institutions, though in some cases there is more than one campus. Some of them have agricultural and veterinary colleges affiliated to them. 3.6.2.2 Technological Universities These again are universities specialising in a single faculty area of engineering and technology. The genesis of this category of universities is in the conversion of established colleges of engineering into autonomous institutions. The first of its kind was established in 1949 when the prestigious Thomson College of Engineering (established in 1857) was raised to the status of a full-fledged university called the University of Roorkee in Uttar Pradesh. In more recent times, and especially in the last three decades, some state governments took the initiative in setting up exclusive technological affiliated institutions of different universities within their states. They also organised their teaching programmes. The States of Andhra Pradesh and Tamil Nadu pioneered this movement and several others followed this example. Some of these technological universities are among the best in the country in teaching and research. 3.6.2.3 Medical Universities As in the case of technological universities, the establishment of medical universities also followed a similar pattern. To begin with, such universities were established primarily to bring together all the medical colleges in a state affiliated to different universities under one umbrella. Such universities were also established first in Tamil Nadu and then in Andhra Pradesh. 3.6.2.4 Deemed Universities Section 3 of the UGC ACT provides that an institution of higher education other than a university which is doing work of very high standard can be declared as an institution deemed to be a university. This provision in the UGC Act enabled the

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central government to notify, on the recommendations of the UGC, several institutions which had made significant contributions to Education and research outside the established university system, as institutions deemed to be universities, these institutions were required to redesign their academic and executive management structures to conform to the pattern of the formal universities. Such institutions enjoy the academic status and privileges of the university and are able to strengthen activities in the field of their specialization. Some of the prestigious institutions like the Indian Institute of Science, Bangalore, the Birla Institute of Technology and Science, Pilani, the Tata Institute of Social Sciences, Mumbai, the Gujarat Vidyapeeth, Ahmedabad, and the Central Institute of English and Foreign Languages, Hyderabad are institutions deemed to be universities. There were as many as 39 such institutions in 1996. 3.6.2.5 Open Universities With the purpose of democratising higher education and making it widely accessible especially to those sections of the society which had had no opportunities for higher education due to socio-economic or geo-demographic reasons or who had missed higher education to enter the world of work early in life, a few open universities have been established since the eighties. Andhra Pradesh Open University was the first of its kind to be established in India. At the national level the Indira Gandhi National Open University (IGNOU) was established in 1985. We shall take a detailed look at these universities later in this course. 3.6.2.6 Institutions of National Importance The primary responsibility for education was that of the states. Only the state could establish universities; the centre did not have the power to do so. However, the centre had the explicit responsibility to establish and maintain institutions and facilities 132

which were of national importance. In pursuance of this power, the central government established, under Acts of Parliament the five Indian institutes of Technology as centres of excellence in engineering and technology education. Two similar institutions were set up in medical education, the All India Institute of Medical Sciences in New Delhi and the Post-Graduate Institute of Medical Education and Research in Chandigarh. Another major institution in this category is the Indian Statistical Institute at Calcutta. The total number of such institutions in the country is only 12. All these are highly specialised centres with state-of- the-art facilities and high quality expertise. Most of them are devoted to education and research and admit students on the basis of all India selection. The Acts empower them to award their own degrees. Most of them are funded directly by the central government and have a governance structure comparable to that of the universities though their Governing Bodies have a fair proportion of people nominated by the government on them. 3.6.3 Governance of Universities: The experience of universities in the country varies depending upon the type of the university, the period for which it has been in existence and whether it has been under the control of the union government or a state government. One thing, however, is common to all Indian universities and that is, that they have all been established under legislation, central or state, and that they are all intended to function as autonomous institutions. In addition to the state- established universities, there is another category, namely, those which are ‗deemed to be universities'. There are quite a number of them. They do not belong to a uniform pattern and their governance structure also varies from institution to institution. Briefly stated, autonomy of a university is its freedom to organize and administer its affairs as a corporate body in accordance with the law by which it is established. The

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autonomous character of the university is reflected in its internal management, the freedom with which it can decide its policies and programmes, appoint its personnel, (both teaching and non-teaching), determine their relationship with one another and facilitate their smooth functioning with a view to realizing their objectives. Obviously, a university exists primarily for its students and scholars and, through them and their work, for the society at large. It provides them learning opportunities in a variety of ways through teachers in the class- rooms, books in the libraries and laboratories, opportunities of interaction with other students in seminars, experimental facilities in the field or in the tutorials, group projects or in numerous other forums and activities based in hostels, clubs and associations. An important source of learning is actual experience of social and environmental realities first hand, investigation of phenomena and situations and actual participation in activities of a creative and developmental nature. The university should have facilities, structures, management, and above all, programmes available in sufficient variety so that each student can learn according to his or her inclination, aptitude and need. It is only thus that the student can get the best out of the university and the nation gets sustenance from its human resource developed through the university system. The concept of education and hence of educational institutions has undergone a great change in recent years. Education is no longer just creation and dissemination of knowledge. Education also has social concerns, and must grapple with the problems of contemporary life outside its immediate areas of concern. Students and institutions have to be involved in study, work and services related to national development which have come to be called the third dimension of education. Research and creative activities of the students and institutions are channelled for tackling specific problems

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of regional and national development. This new concept has great potential for making education an investment rather than merely a social service. It should be able to attract far more funds for its programmes and to pay back to society hands or lay dividends through not only human resources development, but also participation and intervention in the whole process of socio-economic and cultural development. Through its linkages with research institutions, industry, agriculture, and the government, the university should be in a position to enrich academic programmes and offer a variety of services to the society. 3.6.4 Constitution of Universities: Since the university is a creation of the legislature and legislation is always the preserve of the government of the day, it is for the governments to decide what all should go into the legislation when establishing a university. It is these provisions in the Act that will ultimately determine the nature and extent of autonomy that a university will enjoy. It should be emphasised again that autonomy is not a legal or constitutional concept. It is the Committee on Governance of Universities said in 1971 "an ethical and an academic concept". This concept does not question the sovereignty of the legislature to make laws or to discuss and determine the nature and structure of universities, as well as their right and their obligations. University autonomy does not suggest that universities are a state within a state, and a law unto themselves. The university cannot claim autonomy as a matter of privilege, but as a condition necessary for it to discharge its duties and obligations. The two conditions on which university autonomy is predicated are (i) autonomy within the university, and (ii) autonomy in relation to agencies and authorities external to it, particularly the government. Much will depend on how the decision-making bodies of the university are constituted and what their composition is. At this point, it is

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important to remember a major, and perhaps, a unique feature of the functions associated with the management of universities. Universities fall into two categories, namely, (i) functions and processes associated with the administration of the institution, and (ii) the teaching- functions (which management' and administration of personnel, finance, infrastructure), the second category is all in the realm of academic management (curriculum design, instructional system, teaching, student assessment). This latter category of functions does not always lend itself to conventional styles and methods of management. These two distinctive types of managerial functions are reflected in the governance structure of universities. Every university has two important decision-making bodies. The Executive Council (Board of Management or Syndicate) is the principal executive body dealing with all the functions of the first category, and the Academic council (in some cases called the Senate) is the principal academic body, taking all the decisions in areas falling in the second category. This duality in the decision-making processes is the unique feature of university management. It does not follow that the broad areas of concern assigned to these two bodies are mutually exclusive, and that there are no overlaps between them. Further, the decision taken by one body may have implications for the other. For instance, if the Academic Council were to decide to launch an entirely new programme, the Executive Council will have to arrange for personnel, finances and infrastructure. On the other hand, if the Executive Council finds that due to shortage of resources, some of the current programmes require to be reviewed, the Academic Council will have to look at the issues. In other words, it is necessary for the health of the university that the two bodies function organically, with mutual respect and co-ordination though in practice it is not unusual to see conflicts arising between the two. It is inherent in the nature of

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functions of the universities that there is always some tension between the academics and the administrators, sometimes also institutionalised in terms of the conflicts between the Executive and Academic Councils. Normally, while prescribing the specify the composition and functions of these two bodies, the legislation also takes care to matters on which, and the manner in which, either body consults the other. However, since execution of any decision requiring funds, people and facilities is in the domain of the Executive Council, this body is perceived to have an edge over the Academic Council in terms of power and authority. With this understanding of a significant complexity in the structure and pattern of governance of universities, we shall now proceed to take a close look at the institution of these bodies, the functions they perform and the power they exercise. 3.6.4.1 The executive council: The Executive Council (also called Syndicate or Board of Management) is the authority that takes all executive decisions and implements them. All administrative and financial powers are exercised by this body. Generally the Executive Council consists of the Vice-Chancellor as its Chairman, a Pro- Vice-Chancellor, two Deans, three or four representatives of teachers, two or three representatives (generally Heads) of colleges or institutions affiliated to the university, three or four nominees of the government, and two or three members of the Senate who are external members. There could be minor variations in this broad pattern of composition from university to university. The significant point is that it has the majority of its members from within the university, and an adequate representation of interests from outside. The internal and external representation is generally in the ratio of 3:2 with the total membership ranging between 15 and 20. The important functions of the Executive Council are: making statutes and ordinances which govern the conduct of all the sub-

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systems of the university, control of the finances and properties, management of personnel (recruitment, promotion, conditions of service, welfare), supervision over the management of institutions/colleges affiliated to the university redressal of grievances of teachers, staff and students. It should be noted however that the power of legislation (rule-making) in all academic matters can be exercised only after consulting the Academic Council and its views are obtained. 3.6.4.2 The academic council: The Academic Council is the principal academic authority of the university. All decisions on programmes, courses, teaching methods, evaluation systems, academic standards, creation of new departments, etc fall within the purview of the Academic Council. However, as we have said in the previous section, the scheme of university management envisages a sharing of powers and authority between the External Council and the Academic Council, with the former enjoying a slight edge over the latter. The Academic Council is essentially a body comprising the academics of the university. It is chaired by the Vice-Chancellor and consists of the Pro-Vicechancellor(s), all Deans, all Heads of Departments, representatives of the Heads of affiliated institutions and colleges, and representatives of all categories of teachers both from the Department and the affiliated institutions, and in several cases also of representatives of students. Depending upon the 250 members where the number of teachers is large, representation is provided normally through the method of election, and where the number of teachers is small, a system of nomination or rotation is followed: The important functions of the Academic Council are: 'laying down the academic policies of the university; supervision of the academic policies and giving directions on methods of instruction, evaluation of research and improvements in academic standards; inter-faculty coordination for joint projects, programmes, etc.;

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recommending statutes/ordinances concerning academic matters like establishment of departments, laboratories, research centres, committees for admission and examination, qualification of teachers, award of degrees, diplomas and other qualifications, conduct of examinations, institution of scholarships and fellowships, student fees, etc. Generally, the universities will also have a set of academic regulations that provide for procedures to be followed in various matters like admission, examination, declaration of results, etc. These regulations are also framed by the Academic Council. To the extent statutes/ordinances/regulations are internal legislations, they require the approval of the Executive Council. As knowledge expands, and the number of disciplines and specialisations within them multiply, it becomes difficult for large bodies like the Academic Council to usefully devote attention to all the academic problems of all the disciplines. As a measure of decentralisation of the academic decision - making processes, most universities have constituted faculties or schools to take care of these problems leaving the Academic Council only to exercise a broad supervisory function. The Faculties/Schools generally comprise related or cognate departments and subjects and function with a broad measure of autonomy. Usually, a Faculty/School consists of the discipline or subjects assigned to it by the Academic Council and consists of the Dean, all Professors in the Faculty, all Heads of Departments, representatives of different categories of teachers (Readers and Lectures), representatives of teacher from other faculties, and a small number of external experts. The major functions of the Faculty/School are: coordination of teaching and research in the departments assigned to the faculty; promotion of inter-disciplinary teaching and research; prescribing courses of study and their syllabi; appointment of Boards of Studies and Committees for undertaking research projects; recommending the scheme of examinations and the

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methods of assessment of student performance. The Faculties consisting of the members mentioned above generally function as the Boards of Studies in the concerned disciplines. Wherever new programmes and courses are proposed, the recommendations of the Faculty/School go to the Academic Council for approval ratification. In that sense, the Faculty/School should be considered as a sub-system of the Academic Council with no independent authority or power of its own. 3.6.4.3 The court (senate): The structure of governance described above is the pattern that has emerged in the last three decades or so in India. Prior to that, most universities in the country had a Court (for Central Universities) and Senate (for State Universities). This body was the complexity in the functioning supreme authority of a university. It worked in the older days, but with the growing of universities, there has been a review and reformulation of the composition, functions and powers of this body. Traditionally, the Court Senate consisted of a cross section of the academic community (teachers, administrations and students) and representatives of different sections of the general community outside the university (legislators, civil servants, representatives of business/industry, the learned professions, former students, and so on). All decisions taken by organs of the university were subject to ratification by this body. Over a period of time, this practice became difficult to follow as Court's ratification of all decisions could not be taken for granted. Where the Courts disapproved decisions, friction followed and the smooth functioning of the university became impossible. Nevertheless, the significance of such a body, consisting as it does, of a cross section of the larger society and members of the university community were not lost sight of. After all, a university existed for the society, and the needs, requirements and aspirations of that society should find fulfilment in the activities of the university. A body like the court (senate) did

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precisely that: on the one hand, it reflected the society's expectations through the member‘s opportunity to the university community to inform the general society about its policies, programmes and problems. This function of building bridges, of reviewing programmes and policies on the basis of informed views and making them responsive to social needs was considered a vital function for the management of the university. In recognition of this role, the Court (Senate) in later legislations were designated as a 'deliberative' body reviewing policies and programmes, making suggestions for improvements and development, and to express views on the overall performance of the university on the basis of its annual performance reports. With this major change in its powers and functions, the Court (Senate) continues to be a body provided in the Acts of most Universities in the country. Their composition as indicated above also remains more or less unchanged. With this change in the functions and powers of the Court (Senate), it is no more saddled with the burden of having to over-rule decisions of the university. For that reason, some of the more recent legislations have altogether dispensed with the provision to constitute a Court (Senate) for universities established under them. 3.6.4.4 Finance committee: All universities have Finance Committees which prepare the budget, set the ceilings of expenditure and manage the university fund. It decides on investment of funds which are not required for immediate expenditure, considers and recommends purchases of equipment and stores, construction of buildings, considers and makes recommendations on the annual accounts, and so on. The Finance Committee of a University is not an independent decision-making body. It can only make recommendations on financial matters to the Executive Council which alone can take

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decisions on them. Some Acts provide that certain matters which involve continuing financial commitments like creation of new positions and revision of pay scales should not be considered by the Executive Council unless the Finance Committee has considered them in the first place, and made its recommendations. The Finance Committee is chaired by the Vice-Chancellor. But its most important members are the nominees (mostly officers) of the government which provide the finances. There are, in addition, one or two members of the Executive Council and one or two external members on the Finance Committee. In actual practice, however, the nominees of the funding agencies play a dominant role in the proceedings of the Finance Committee. 3.7 The People Who Manage the Universities: In the previous sections, we have looked at the corporate structure of the university, and the powers and functions of its decision-making bodies; by their very nature, these bodies cannot be expected to run the day-to-day affairs of the university and to remain responsible and accountable for all that it does. This responsibility vests with the officers of the university. We shall now consider who these people are, how they are appointed and what functions they perform in the management of the university. 3.7.1 The Visitor Chancellor: We have seen in the previous unit that the state performs a broad supervisory function over the universities it has set up. However, in the exercise of this supervisory function, an effort is made to distance the political executive from the university management. This objective is achieved by vesting the supervisory function with the Head of State, President of India in the case of Central Universities and Governors of States in the case of State Universities. The University legislations make these provisions. The Visitor Chancellor performs the following functions: appointment of the Visitor Chancellor,

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nomination of the specified number of members on the Executive Council of Syndicate, approval/disapproval of statutes and ordinances or amendments to them, institution of inquiries into mismanagement, if any adjudication of appeals against the decisions of the university which are perceived to be in violation of the university law. These functions are vested in an authority outside the university to ensure objectivity and fairness in their performance. Distancing the political executive from the processes associated with the performance of these functions strengthens this view. Nevertheless, to the extent that the Head of State has to perform his or her functions on the advice of the Council of 94. Ministers, the distance remains more symbolic than real. At any rate the Visitor Chancellor cannot be conceived as officers of the university in the sense that they belong to the category of people who manage the universities. Then, who are the real managers? We shall now turn to them. 3.7.2 The Chancellor The Central Universities have a statutory office of Chancellor who is the head of the University. An eminent person in public life is appointed to this office by the Visitor on the recommendation of the Executive Council. He presides over the meetings of the court and the convocations of the university. He is not vested with any other functions or powers. The State Universities do not have a corresponding statutory office. The Governor, who is the Chancellor, also performs these roles. To that extent, he is deemed to be an officer of the university. This duality in the role of the Chancellor's office in State Universities has often caused considerable ambiguity and confusion.

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3.7.3 The Vice-Chancellor The vice-chancellor is the administrative and academic head (Chief Executive Officer) of the university. He/she is actually a scholar administrator. He or she is the keeper of the university's conscience, as mentioned in the University Education Commission Report 1948-49. And as stated by the Kothari Commission (1964-68), he/she should be committed to the universities pursuit of scholarship and of truth. He or she has a crucial role to play in the successful functioning of the university. The term of appointment of a vice- chancellor is generally for a period of three years in most of the state universities and five years in central universities. In a few states, it is four years. It is seldom that a Vice Chancellor gets a second term. The main functions of a vice-chancellor of a university are the following: The vice-chancellor is ex-officio the Chairman of the Executive Council (Syndicate or Board of Management) and the Academic Council as well as the Finance Committee and other statutory bodies like Planning Board and Selection Committees. As the Chief Executive, he or she is responsible for ensuring that the university functions in accordance with the provisions of the Act, statutes, ordinances, and regulations. He she is responsible for ensuring discipline among teachers, staff and students. In an emergency, he she can exercise any power of any authority and report the matter to the authority concerned for ratification of the decision. He she can delegate his powers to other officers. The vice-chancellor of Indian universities is appointed by the Visitor/Chancellor from a panel of names recommended by a Committee of eminent persons specially 144

constituted for this purpose. These committees normally have three members - two nominated by the Execution Council, and one by the Visitor Chancellor. The Committee recommends a panel of three or more persons from whom the Visitor Chancellor selects one. Generally, the person to be appointed is recommended by the Government to the Visitor Chancellor. 3.7.4 The Pro-Vice-Chancellor / Rector The Pro-Vice-Chancellor/Rector is the second level executive officer in a university, who is appointed by the Executive council on the recommendations of the vice-chancellor. In most cases he or she is selected from amongst the senior Professors of the University though appointments from outside the university are also possible. He or she exercises the powers and performs the duties that are prescribed by the university or delegated by the vice-chancellor. The term of office of the PVC/Rector is generally laid down by the Executive Council. It is normally three years and is co-terminus with the term of office of the vice-chancellor. The Rector is expected to share the responsibilities of the vice-chancellor in the areas assigned to him/her. He/she also officiates for the vice-chancellor when the latter is either away from the headquarters on official business or on leave. Hence, the prime function of the Rector is a kind of partnership with the vice-chancellor to ensure the effective functioning of the university. 3.7.5 The Deans Dean of Faculty is the Head of the faculty and is responsible to the Vice- Chancellor for the organisation of the teaching and research programmes as well as maintenance of the standards of teaching, research and extension functions in the faculty. A Dean is normally appointed from among the Professors in the Departments that comprise

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the faculty for a period of 2-3 years through a system of rotation according to seniority. 3.7.6 The Registrar The position of Registrar who is the head of the administrative wing of a university is a key position. He leads the university's civil service, is the custodian of all university records, and represents the university in all its dealings with the outside world. He is ex-officio, the Secretary of all the statutory bodies of the university, issues notices for their meetings, prepares the agenda, and also the minutes of the meetings. These key functions of the Registrar enable him/her to occupy a position of pre-eminence in the university management. He is privy to all discussions at the meetings of the various bodies, and has easy and quick access to all records which together96 make him /her most knowledgeable person as far as the university management is concerned. For that reason, he/she is in a position to render useful advice to the vice-chancellor and members of various authorities. The Registrar is normally appointed by the Executive Council (Syndicate) on the recommendation of a Selection Committee presided over by the vice- chancellor. Once appointed, he/she holds office till retirement. However, in recent times, appointment to this office is also being made for short tenures of 5 years at a time. Although this method of appointment continues to be in vogue in several universities, the State Governments in some cases have taken over the responsibility for appointment of Registrars. Where, in a state, there are several universities, a system of transfer of the Register from one university to another is also in vogue. 3.7.7 The Finance Officer: The Finance Officer is the manager of the University's funds and properties. The financial management practices in the universities in India were traditionally confined

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to judiciously managing the expenditure since the largest single source of income was 95% of the total income. This required proper preparation of the grants given by the government almost 90- budget, setting the ceilings for every item of expenditure, and ensuring that the expenditure did not exceed the ceilings. The pre-occupation of university Finance Departments was thus more on accounting and monitoring the observance of procedures than mobilising resources and managing the finances. Since the Finance Officer was a key functionary in university management, and was responsible mainly for managing government funds, an officer from the government used to be appointed on deputation to this position by the universities. In recent times, some state governments have taken it upon themselves to appoint the finance officer who then was not an employee of the university. Though this practice amounted to the university's loss of the freedom of choice of its Finance Officer, given the dependence on the state for funds, it had to go by the wishes of the government. (Annual Report, Ministry of Human Resource Development, 2006-2007). 3.8 Conclusion: There is no clear consensus on the overarching purpose of higher education with it being a ―contested issue because [it] underpins academic values‖ (Watty, 2006: 26). Kapur and Crowley (2008: 87) point out: ―Indeed, what is striking about higher education is the weakness of the analytical frameworks on even the most fundamental questions: what is the purpose of higher education? To train people for a labour force or train a labour force that is in turn trainable by employers? To create a middle class? Is the goal of higher education to provide a ladder for social mobility or create national elites? To influence and mould the minds of young people‖? The answer, ―all of the above‖, merely shifts the analytical burden.‖ The foundational principles of higher education in the United States (US) were related to ―public benefits and civic

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virtues, in addition to the economic gains achievable by individual students‖. The founders of Yale University in the early eighteenth century saw their task as preparing youth for public employment in the church and the state. Thomas Jefferson in establishing the University of Virginia saw his task as training America‘s aristocracy for national positions of leadership (Bloom, Hartely and Rosovsky, 2007). Research undertaken by UNESCO poses the question: ―Is the role of universities limited to technical skills or do they have a role in shaping and modelling behaviour to shape particular student attitudes?‖ (Burnett, 2007: 288) Heuser (2007) answers affirmatively. He believes that whilst there will be variation between different higher education institutes, all of them should place a priority on forming the ―professional and attitudinal values‖ of students whilst they are pursuing higher education. Barnett (2009a and 2009b cited in Watty, 2006) refers to dominant and marginal perceptions of higher education. The dominant perceptions are those that are systems-based with an external purpose focussed on the provision of skilled people for the labour market; whilst marginal perceptions look at the internal purpose of the education process focussing on the development of individual students‘ attitude, values and behaviour.

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CHAPTER-4 AN OVERVIEW OF THE PRIVATE UN-AIDED BSCHOOLS OF MAHARASHTRA

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CHAPTER-4 AN OVERVIEW OF THE PRIVATE UN-AIDED B-SCHOOLS OF MAHARASHTRA 4.1 Introduction to Business Management Education: Indian business management educational landscape as well as the global has become increasingly turbulent. Competition is much stronger than before; more b-schools are joining the market. Changing management education landscape, nationally and globally, has encouraged the development of a market culture among business schools. B-schools are now in a position where they have to compete for scarce resources such as finances. To survive in this competitive environment, institutions must have an advantage. This means that a business management institution must provide its target market with more value than its competitors. In a churning global marketplace, understanding the fundamental connections between business, the environment, and society has become essential. The roles and responsibilities of business as a global force are becoming more urgent and complex, and concepts related to societal responsibility and sustainability are gaining recognition as essential elements in business management. Increasing complexity and interdependence require new approaches. Companies need integrative management tools that help embed environmental, social, and integrative management tools that help embed environmental, social, and governance concerns into their strategic thinking and daily operations. They need support as they internalize and integrate these issues into the core of businesses, engage in dialogue with stakeholders, and report their conduct. They require talented and ethical leaders who can not only

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advance organizational goals and fulfil legal and fiduciary obligations to shareholders, but who are also prepared to deal with the broader impact and potential of business as a positive global force in society. Any meaningful and lasting change in the conduct of corporations toward societal responsibility and sustainability must involve the institutions that most directly act as drivers of business behaviour, especially academia. Academic institutions help shape the attitudes and behaviour of business leaders through business education, research, management development programs, training, and other pervasive, but less tangible, activities, such as the spread and advocacy of new values and ideas. Through these means, academic institutions have the potential to generate a wave of positive change, thereby helping to ensure a world where both enterprises and societies can flourish. The Management programmes help aspiring managers to become effective decision makers in their fields through up gradation of knowledge and managerial skills. The programme broadens the overall perspective of the students so that they can become catalysts for change. It develops conceptual, interpersonal and management awareness for implementation of new structures and strategies. It also improves managerial effectiveness and prepares managers for more senior positions. Management education trains candidates to resolve conflicting business issues, asked to take management decisions and see the business effects of such decisions, soon thereafter. Candidates learn to win and in seeking to win they imbibe new forms of competitive behaviour that are ideal for today‘s highly chaotic business conditions. The competition urges students to learn willingly and enhance the pace of learning. The excitement of managing a company from top downwards ensures that the learning elements are retained with candidates longer. Management education is specifically designed to develop the business decision- making skills of managers. Conflicting situations induce the students to take

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decisions under predetermined criteria. These situations closely resemble business events and are indistinguishable from real life events. For the candidates, the objective of learning is to understand complex business situations and solve problems. They learn to take operative and strategic decisions. Competition enhances their abilities not merely to survive, but also to emerge as leader, for their organisations. A major learning gain is that they learn to cooperate with each other and work in teams. Besides integrating subjects the use of simulation demonstrates the complexity of business in terms of the dynamic interactions between functions, products and markets. The pedagogy of Management education provides an opportunity to test understanding and organise knowledge in a competing environment. In the era of Globalization, students of Management will have to develop skills of quick learning and equally quick decision making. As Managers, one will be exposed to business without physical boundaries of the nations. 4.2 Present Situation of Business Management Education in Maharashtra Today managers are in great demand in every sector of economy. Maharashtra needs a huge reservoir each year of people who are trained for business and for management and demands is to last for coming years. But it is matter of concern whether the demand is for what they have been taught. In management education, quality has become a necessity. To make Maharashtra an intellectual capital of the world, we have to create a dynamic environment, which can encourage superior quality management education colleges and effort should be made to breathe life into management education.

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4.3 Growth and Meaning of Un-Aided Private B-Schools of Maharashtra: Universities Higher education in India has evolved in distinct and divergent streams with each stream monitored by an apex body, indirectly controlled by the Ministry of Human Resource Development and funded by the state governments. In India, most universities and nearly all research institutions are public. There are some private undergraduate colleges (mostly engineering schools) and the majority of these are affiliated to a public university. Few others private colleges are partially-aided by the state and central governments. Table: 2 Bifurcations of Universities in India TYPES OF INSTITUTIONS

NUMBER

NUMBER State Universities

243

State Private Universities

53

Central Universities

40

Deemed Universities

130

Institutions of National Importance

33

(Under Acts of Parliament) Institutions establishes under State

5

legislations Total Other Colleges

504 25,951

SOURCE: MHRD Annual Report, 2009-10

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As of March 2009, there are 504 higher education institutions and 25,951 other colleges in India. Most of these educational institutions need recognition by a competent body / regulatory authority that are supported by the Government of India, State Governments or by Societies. The universities of India can be classified in various categories like Central Universities, State Universities, Deemed Universities, Private Universities, Agricultural universities, National Institutes of Importance and Open Universities. Out of which 243 institutions are State Universities; 53 institutions are State Private Universities; 40 Central Universities; 130 are the Deemed Universities; Under Acts of Parliament 33 are Institutions of National Importance while 5 institutions are established under State legislations. Since the State Governments establish and plan for the colleges and universities in the states and the Central Government does it for the Central Universities, it is essential that there is adequate cooperation between the State Governments and the Central Government in the field of higher education. The Central Advisory Board of Education (CABE) has therefore been constituted to assist in the functioning of the two Governments and ensure that parity is maintained. (Dhopte, 2011) Regulatory System The University Grants Commission of India (UGC) is a body of the central government that provides support to the government-recognized universities and colleges with funds. The University Grants Commission of India provides recognition to the universities in India. The All India Council for Technical Education (AICTE) is a body that is involved in the systematic planning and organized development of the technical education

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system in the country. Presently there are a total of 1,346 engineering colleges all over India, which have been approved by the All India Council of Technical Education. Other Statutory Authorities like BCI, MCI, DGCA, ICAR, VCI etc. are catering specific specialized areas. These agencies issue licenses, regulate standards, conduct inspections and control curriculums. The Director General of Employment and Training (DGET) under Ministry of labour & employment is granting affiliation to ITIs and ITCs. NCVT is granting affiliation to trades/units of ITIs/ITCs. At present, educational institutions in India can be set up only by trusts, societies or companies. Under Section 25 of the Companies Act 1956, the government is planning to permit corporate houses to set up higher educational institutions — like multi-disciplinary universities and colleges — by floating a separate not-for-profit entity. A not-for-profit entity is one that does not distribute its surplus funds to owners or shareholders. It, instead, reinvests these in the institute. Many private universities in India have been set up under Section 25 of the Companies Act. However, deemed universities are not covered by the Act. Section 25 of the Act, on the other hand, comes under the Central Board of Direct Taxes, thus reinforcing the control of the Centre and not the state over the manner in which the institutions are run and financed. The private sector is strong in Indian higher education. This has been partly as a result of the decision by the Government to divert spending to the goal of universalisation of elementary education. State universities and colleges are funded by the respective states. There are also some other sources of funding. Self-financed or private universities are not common in India although many colleges are financed by 155

non-governmental sources. Only universities established or incorporated by or under a Central Act, Provincial Act or State Act, an institution deemed to be a University under Section 3 of the University Grants Commission Act or an institution specially empowered by an Act of Parliament have the right to confer degrees in India. A business school is normally a university-level institution that teaches topics such as accounting, finance, marketing, organizational behaviour, strategic planning, quantitative methods, etc. These include schools of "business", "business administration", and "management". It must also make students aware of application software such as ERP, POS, Simulation, SCM & logistics. In addition to this they must also get to learn of the actual running of an enterprise. A business School is an entity by itself and cannot be run as a department of a technical school now. Business school must have a branding and that can come from the quality of teaching and their richness. The alumni bring prestige to the school. Placement is a sequel to quality of teaching staff and education provided in the school. The education sector has changed a lot and as such numerous b-schools have come up in the recent times. In respect of colleges, one can come across various kinds like government, self-financing, aided and unaided B-Schools. It is with the advent of globalization that aided and unaided B-Schools have now dominated the education sector. “Un-aided Management Institute‖ means an institute which is run by a private management without the support of any grants from the State or the Central Government.

The growth of industries in the Country, just after independence, also demanded the need for qualified professionals in other fields, such as Business Management, 156

Architecture, Hotel Management, Pharmacy etc. Although the diverse elements of Management such as Commerce, Economics, Finance, Psychology and Industrial Sociology were being taught for a long time, the need for Management Education in a formal way was felt in India only in the fifties. The Government of India decided in 1954 to set up a Board of Management Studies under AICTE to formulate standards and promote Management Education. Other major initiatives taken in Management Education include: setting up of the Administrative Staff College of India at Hyderabad in the late fifties, National Productivity Council and Indian Institution of Management in the early sixties. Architecture was covered under the Architects‟ Act, 1972‖. Subsequently, for better coordination of the Professional Courses, Architecture Education was also placed under the purview of AICTE. Table No. 3. Shows Number of Private Un-Aided B-Schools of Maharashtra as per Directorate of Technical Education, Maharashtra State, with the total number of private un-aided B-schools in the regions of the research study. Category

Maharashtra

MUMBAI PUNE

NASHIK

AURANGABAD

Number of 375 75 173 35 23 Private Un-Aided B-Schools Source: Director of Technical Education, Maharashtra State, Mumbai (20102011) 4.4. Norms & Requirements in Private un-aided B-Schools of Maharashtra as laid down by All India Institute of Technical Education. All India Council for Technical Education (AICTE) was set-up in November 1945 as a national level Apex Advisory Body to conduct survey on the facilities on technical education and to promote development in the country in a coordinated and integrated manner. And to ensure the same, as stipulated in, the National Policy of Education 157

(1986), AICTE be vested with statutory authority for planning, formulation and maintenance of norms and standards, quality assurance through accreditation, funding in priority areas, monitoring and evaluation, maintaining parity of certification and awards and ensuring coordinated and integrated development and management of technical education in the country.

The purview of AICTE (the Council) covers programmes of technical education including training and research in Engineering, Technology, Architecture, Town Planning, Management, Pharmacy, Applied Arts and Crafts, Hotel Management and Catering Technology etc. at different levels.

4.4.1. Approved Nomenclature of Post Graduate (PG) in Management Courses The list (Refer: Annexure II) covers approved nomenclature for the current academic year. If any Institution / University wish to propose any new course, prior concurrence, by the Council for the same shall be necessary. For such concurrence, Technical Institution, with due endorsement by the Registrar of affiliating University/Board shall submit detailed syllabus content and its nomenclature to the Council. Provided that if any Institution wishes to propose any new Course, prior concurrence, as the case may be, by the Council for the same shall be necessary.

For such concurrence, Registrar of such affiliating University / board or Technical Institute, with due endorsement by the Registrar of affiliating University / Board shall submit detailed syllabus content and its nomenclature to the Council. The Technical Institutions shall follow Norms for Intake & Number of Courses / Divisions in the Technical Institution at Post Graduate Degree Program, Diploma Programs, Post Diploma Programs and Post Graduate Diploma Programs level as given below in Table. 158

Table4 (i) gives the intake in the B-Schools of Maharashtra Intake per

Maximum number of PG courses and /or divisions

Division

allowed in the New Technical campus (Single shift working)

Management

60

Division/s

Intake

2

1

4.4.2 Admission Procedure of Private Un-Aided B-Schools of Maharashtra Admission to first year of two year full time post graduate degree courses in Management namely Master of Business Administration (MBA)/Master of Management Studies (MMS)/ Post Graduate Diploma Course in Business Management (PGDBM)/ Post Graduate Diploma Course in Management (PGDM). The institutes which qualify for the admission process as per these rules are: • Approved by All India Council for Technical Education (AICTE), New Delhi. • Recognised by the Government of Maharashtra. • Affiliated to any one of the ten Non Agricultural/Non Technological Universities in Maharashtra state. Following are the types of Institutes in the Maharashtra state covered by these rules; a) All Government Management Institutes b) All University Departments of Management c) All University Managed Management Institutes d) All Unaided Management Institutes and/or its Association who have given consent to participate in the CAP rounds conducted by the State Government.

159

The admission to the courses MBA/MMS is centralized and is covered under Centralized Admission Process (CAP) carried out by the Competent Authority of the State of Maharashtra. Admission Process (CAP) carried out by the Competent Authority of the State of Maharashtra, the same centralized admission process as that of MBA/MMS course.

4.4.2.1 Seats available for Admission through CAP Table No. 4(ii) shows the seats available for allotment under CAP for un-aided private B-Schools in Maharashtra. Sr.No

Types of the Institute

Seats available under CAP (% of *sanctioned intake)

1

Un-Aided /Stand alone Non-Minority Institute 80%

2

Un-aided/Stand alone Minority Institute

The exact distribution of seats available for website before submission of option forms of Centralized Admission Process.

*

―Sanctioned intake‖ means the number of seats sanctioned for admission to first year

of the course as per the State Government resolution with reference to the AICTE‘s approval. Types of Seats under CAP: There are two types of Seats under CAP a) Maharashtra Seats and b) All India Seats. Here we will be discussing only about Maharashtra seats. Maharashtra Seats: These seats are further divided as follows,

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1. Home University (HU) seats: Certain percentage of seats of every institute is reserved for Home University i.e. for the University under the jurisdiction of which that institute is located. Home University seats are available for allotment through CAP only for the Maharashtra candidates having their Home University status as of that University. 2. Other than Home University (OHU) Seats: Certain percentage of seats of every Institute is reserved for Other Universities i.e. for the Universities other than the University under the jurisdiction of which that institute is located. Such seats are called as OHU seats. OHU seats of an Institute are available for allotment through CAP only for the Maharashtra candidates belonging to Universities in Maharashtra State other than the University under the jurisdiction of which that institute is located. Candidates can opt for the seat of any other University (excluding his/her home university) under this provision of OHU seats. Statutory reservations for candidates belonging to backward class categories as per the relevant rules and resolutions of the Government of Maharashtra will be applicable for admissions against the Maharashtra seats available only to the candidates of backward class categories belonging to Maharashtra State. In Unaided Minority Institutes, there is no reservation for backward class category candidates; however reservation for backward class candidates can be implemented under CAP provided that the management of the institute gives the written consent. 4.4.2.2 Eligibility Criteria: Basic Qualification: In order to secure admission to first year of two-year full time MBA/MMS/PGDBM/PGDM course, the candidate should fulfil the following eligibility criteria:

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Passed with minimum of 50% marks in aggregate* ( 45% in case of candidates of backward class categories belonging to Maharashtra State only) in any Full Time Bachelor‘s degree of minimum three years duration in any discipline recognised by the Association of Indian Universities OR Appeared** for the final year examination of any Full Time Bachelor‘s degree of minimum three years duration in any discipline recognised by the Association of Indian Universities. Such candidates can be considered for provisional admission subject to passing the Degree exam with minimum of 50% marks in aggregate* (45% in case of candidates of backward class categories belonging to Maharashtra State only). Eligibility Criteria for admission to Maharashtra State candidates 1. Candidate should be an Indian National and should possess basic qualification. 2. Scored 30 or more marks in the MAH-MBA/MMS-CET 2010 and appeared for the GD & PI conducted by the Competent Authority of the Maharashtra State for the academic year 2010-11. 4.4.2.3 Assignment of merit number: Merit Number: Maharashtra State Seats: Each Maharashtra State candidate who has secured 30 marks or more in the MAH-MBA/MMS-CET 2010 and appeared for the GD & PI will be assigned a State level Merit Number, a Home University area Merit number, Category merit no. (As applicable) etc. 4.4.2.4 Age limit: There is no age limit for admission to first year of two year post graduate course in Management viz. MBA / MMS / PGDBM / PGDM.

162

4.4.3 Norms for Land requirement and Building Space for B-Schools of Maharashtra (ANNXURE-II) 4.4.5 Norms for Faculty Requirements in B-Schools of Maharashtra:

Availability of Principal/Director/Dean and faculty with respect to the qualification, experience and eligibility norms prescribed by the AICTE. Table 5(i) gives the Norms for Cadre Ratio (PG) in B-Schools of Maharashtra Faculty :

Principal

Student

/

ratio

Director

MBA/PGDM 1:15

1

Professor

S 15xR

A.

-1

Associate

Assistant

Total

Professor

Professor

S x2

S x6

S

15xR

15xR

15

S= Sum of number of students at all years, *R= (1+2), #R =(1+2+6)

4.4.6 Other essential and desired facilities in B-Schools of Maharashtra: Table 5(ii) gives the essential and desirable Facilities in B-Schools of Maharashtra

1

Language Laboratory:

Essential

The Language Laboratory is used for language tutorials. These are attended by students who voluntarily opt for Remedial English classes. Lessons and exercises are recorded on a weekly basis so that the students are exposed to a variety of listening and speaking drills. This especially benefits students who are deficient in

163

English and also aims at confidence-building for interviews and competitive examinations. The Language Laboratory sessions also include word games, quizzes, extemporary speaking, debates,

skits

etc.

These

sessions

are

complemented by online learning sessions which take place in the Multipurpose Computer Lab. This Lab shall have 25 Computers For every 1000 students. 2

Potable Water supply and outlets for drinking

Essential

water at strategic locations 3

Electric Supply

Essential

4

Backup Electric Supply

Desirable

5

Sewage Disposal

Essential

6

Telephone and FAX

Essential

7

Vehicle Parking

Essential

8

Institution web site

Essential

9

Barrier Free Built Environment for disabled

Essential

and elderly persons including availability of specially designed toilets for ladies and gents separately. Barrier Free Built Environment for disabled and elderly persons by CPWD, Ministry of Urban Affairs & Employment, India. 10

Safety provisions including fire and other

Essential 164

calamities 11

General Insurance provided for assets against

Essential

fire, burglary and other calamities 12

All weather approach road

Essential

13

General Notice Board and Departmental Notice

Essential

Boards 14

Hostels, Playground, Gymnasium

Essential

15

First aid, Medical and Counselling Facilities

Essential

16

Public announcement system at strategic

Desirable

locations for general announcements/paging and announcements in emergency. 17

Enterprise Resource Planning (ERP) Software

Essential

for Student-Institution-Parent interaction 18

Transport

Desirable

19

Post, Banking Facility / ATM

Desirable

20

CCTV Security System

Desirable

21

LCD (or similar) projectors in classrooms

Desirable

22

Group Insurance to be provided for the

Desirable

employees 23

Insurance for students

Desirable

24

Staff Quarters

Desirable

4.4.7 Academic and good governance parameters in B-Schools of Maharashtra. (Refer: Annexure II) 4.4.8 Teaching and Learning Processes 165

Table No.5 (iii) gives the evaluation guidelines for the teaching and learning process. Item

Item Description-

No.

Teaching and Learning

Evaluation Guidelines

Processes Academic process

i Published time-table with sufficient hours for Lectures, labs, self-learning and extra-curricular activities. ii. Published schedule in academic calendar for Assignments/mid a semester tests, distribution of corrected scripts. iii. Monitoring of Attendance,

Tutorial classes/

i.

Tutorial classes to address personal

remedial classes/ mentoring

level doubts, size of tutorial classes ii.

Remedial classes and additional make-up tests to help academically weaker students

iii.

Mentoring system to help at individual

levels Teaching evaluation

i. Evaluation criterion and process for feedback

process : Feedback

evaluation

system

ii. Feedback analysis and reward/corrective measures taken, if any iii. Feedback mechanism from alumni, parents and industry, if any

166

Self Learning and

i Flexibility in academics with scope for self

Learning beyond

learning- provisions for advanced level and

syllabus

reading courses. ii. Generation of self-learning facilities, and availability of materials for learning beyond prescribed curriculum iii. scope and mentoring mechanisms for learning beyond prescribed curriculum

Career guidance,

i. Assessment : Effectiveness, Efficiency and

Training, placement

Productivity

and Entrepreneurship

ii.Career

cell

counselling for higher studies

guidance

services

including

iii. Training and placement facility with training and placement officer (TPO), industry interaction for training/internship/placement. iv. Entrepreneurship cell and incubation facility Co-curricular and

i.Co-curricular and extra-curricular activities,

extracurricular

e.g., NCC/ NSS, cultural activities etc.

activities

ii. Sports grounds, facilities and qualified sports instructors

4.4.9 Quality of Faculty & Supporting Technical Staff in B-Schools of Maharashtra

167

Table No.5 (iv) gives the evaluation guidelines for the teaching and non-teaching staff of private un-aided B-Schools of Maharashtra. Item

Item

No.

Description

Evaluation Guidelines

Performance

i. Evaluation of Teachers by Authorities

Appraisal

ii. Feedback mechanism and Evaluation of Teachers by Students iii. Online and web based regular feed back mechanism iv. Mid course corrections v. Analysis of feedback and implementation of corrective measures

Faculty Development

i. Organization participation in seminars/ conferences etc. ii. Research Grant

Initiatives

iii. Career path iv. Whether sabbatical provided v. Other service benefit vi. Whether faculty adequately provided financial and administrative and Professional development allowances / support vii. International conferences viii. Reward /recognition for journal publication / patents ix. Support for quality improvement programme and higher studies

Faculty Retention

i. Rate of attrition ii. Percentage of faculty with beginning of University iii. Percentage of faculty joined within one year iv. % vacancy against required faculty

Faculty Research

i. Number of faculty members having publications

168

Publications

in the relevant field ii. Faculty Research Publications in number iii. Quality of the research papers published in the past 3 years. iv. Impact factor of the journals v. Citation of the papers and H-Index The research papers considered are those (i) which can be located on Internet and/or are included in hardcopy volumes/ proceedings, published by well known publishers, and (ii) the faculty member's affiliation, in the published paper is of the current institution.

Faculty

i. Number of patents filed

Intellectual

ii.IPR\Patents

Property Rights

national/international patents, books and copyrights.

granted

IPR

includes

awarded

(IPR) Faculty R & D

i. Number of R&D Projects sanctioned

Consultancy Work ii. The amount of the funds and/or the contributions &

made.

Testing

iii. Joint collaborative research projects with other institutes iv. Participation in nationally co ordinate projects v. Amount of consultancy & Testing earned vi. Rules for distribution

Faculty Exposure

i. Interaction with a well known Institution abroad,

to other

ii. Interaction with Institution of Eminence in India

institutions

or National Research Labs, industry

and Industry

iii. Interaction with State Level Institutions and others. iv. MOUs with reputed institutions/ organizations

Technical Support

i. Availability of adequate and qualified technical

Staff

supporting staff for programme specific labs ii. Incentives, skill-up gradation and professional advancement

169

iii. Online and web based regular feedback mechanism iv. Mid course corrections.

4.4.10. Revision of Pay Scales of Teachers and equivalent cadre in Degree/ Diploma Level Technical Education as per AICTE Scheme (6th Pay Commission) All India Council for Technical Education has revised the pay structure of teachers and librarians in degree and diploma level technical education as per the 6th pay commission recommendation vide its notification. The scheme announced by the All India Council for Technical Education is extended to related Universities, University Department and University affiliated Professional Degree level and Maharashtra State Board of Technical Education, provided State Government wishes to adopt and implement the scheme. It is also essential to ensure quality up-gradation of technical education through close monitoring of teachers performance in these institutes. The scheme announced by All India Council for Technical Education(as well as BSchools of Maharashtra) for the revision of pay scales of teachers, Librarians and equivalent cadres in Government and Non-Government aided and un-aided Post Graduate Degree level institutions conducting professional courses and devising quality norms for teachers was under consideration of Government. 4.4.11. Action against ragging in B-Schools of Maharashtra: Maharashtra Prohibition of Ragging Act 1999 and its amendments which may be published from time to time. The Act is in effect from 15th May, 1999 has the following provisions for Action against Ragging: a) Ragging within or outside of any educational institution is prohibited.

170

b) Whosoever directly or indirectly commits, participates in, abets, or propagates ragging within or outside any educational institution shall, on conviction, be punished with imprisonment for a term up to 2 years and / or penalty, which may extend to ten thousand rupees. c) Any student convicted of an offence of ragging shall be dismissed from the educational institution and such student shall not be admitted in any other educational institution for a period of five years from the date of order of such dismissal. d) Whenever any student or, as the case may be, the parent or guardian or a teacher of an educational institution complaints, in writing, of ragging to the head of the educational institution, the head of the educational institution shall, without prejudice to the foregoing provisions, within seven days of the receipt of the complaint, enquire into the matter mentioned in the complaint and if, prima facie, it is found true, suspend the student who is accused of the offence, and shall, immediately forward the complaint to the police station having jurisdiction over the area in which the educational institution is situated, for further action. Where, on enquiry by the head of the educational institution, it is found that there is no substance, prima facie, in the complaint received; he / she shall intimate the fact, in writing, to the complainant. The decision of the head of the educational institution shall be final. e) If the Head of the educational institution fails or neglects to act in the manner specified in section ―d‖ above when a complaint of ragging is made, such person shall be deemed to have abetted the offence and shall, on conviction, be punished as provided for in section ―b‖ above. 4.5 Conclusion: The State of Maharashtra is one of the prosperous States with a developed Industrial network and rich agricultural production, the state has a high perceptive income. Each

171

B - School has its 'benchmarks' and unique culture which have evolved over a period of time which has helped in the grooming and training process of students. That is why TISS has its own eminent position amongst the B- Schools; ISB offering one year programme has emerged as one amongst the best B-Schools, though unapproved and the honourable HRD Minister presided over their convocation. It is the market forces and the competition among the Schools, which will enhance the quality standards. It is the spirit in the minds of the educationists to innovate and excel which will accelerate the quality standards in management education and not the enforced laws which are framed arbitrarily. It is high time that true leaders are brought in at helm of affairs so that the conflicts, the confusions and uncertainty amongst the BSchools are eliminated as concerning the present area of research study. Control system has never succeeded in the long run. The mindset of the nation can be aptly described from the words of what Anna Hazare said recently in Delhi, "There is no faith left in politicians and bureaucrats and it is time

that

people

be

allowed

to

decide

what

they

want".

172

CHAPTER-V OBJECTIVES, HYPOTHESIS AND RESEARCH METHODOLOGY

173

CHAPTER-V OBJECTIVES, HYPOTHESIS AND RESEARCH METHODOLOGY 5.1 Statement of Research Problem: The concept of leadership (Kotter, 1988) and organisational commitment (Mathies & Zajac, 1990; Mowday, Porter, & Steers, 1982; Steers, 1977) have been key areas of research for theorists and researchers in the field of organizational behaviour for decades. However, the roles of leadership and organizational commitment have not been clearly articulated or documented. There is a widespread notion that if employees are not committed to their organization, the success of the organisation is at risk. Despite the importance of the subjects of leadership and employee commitment to any organization, the two subjects have been almost neglected by researchers in India. In reviewing the Literature, the researcher did not find any study that examined the relationship between leadership and employee commitment in the Indian setting. Therefore the researcher focused on both these areas – leadership styles and employee commitment. It also investigated the relationship between these variables and determined the effects of selected demographic factors upon the level of commitment among the academic faculties of the private un-aided B- Schools of Maharashtra. In doing so, this study will contribute to the literature in the field of organizational behaviour, in general, and leadership and organizational commitment in particular.

174

5.2 Research Questions: 1) To what extent are faculties of private unaided B-Schools of Maharashtra committed to their organizations? 2) What Leadership characteristics do Deans/Directors of private un-aided BSchools of Maharashtra possess as interpreted by the faculties under them? 3) What are the effects of the Dean‘s and Director‘s perceived leadership characteristics on the level of employee‘s organizational commitment? 4) Is there a difference in the level of commitment among academic faculties on the basis of demographic and job related variables? 5) Is there a difference of Leadership styles perceived and expected by the academic faculties from their respective Deans and Directors? 5.3 Scope of the Study: The study is restricted to the level of academic faculties of private un-aided B-Schools of Maharashtra. It could be extended to the lower levels, concerning the non-teaching staffs of the private un-aided B-Schools as well as to the higher levels where the Deans and Directors could judge the leadership styles followed by the trustees. The study could also be extended to other states of India and globally too. 5.4 Purpose of the Study: The results of the study would help the Heads and the Directors of the B-Schools to determine the types of leadership styles to adopt in order to induce and maintain trust and organizational commitment from their employees. This study examined the relationship of each of the three leadership styles identified by Bass and Avolio (1985) with the level of employee commitment among the

175

academic faculties of the B-schools of Maharashtra. Specifically the aims of the study were as follows: 1) To study the level of commitment among the academic faculties of the B- Schools of Maharashtra. 2) To study the relationships between the transformational, transactional, and laissezfaire leadership styles and the level of employee commitment among the academic faculties of the private unaided B-Schools of Maharashtra. 3) To study the difference between employees expected leadership style from their superiors and as observed by them in their superiors. 4) To study the effects of age, level of education, marital status, and job-related variables (internal promotion, occupational status, salary, and length of service) on the level of commitment of the academic faculties of private un-aided B-schools of Maharashtra. 5) To study the impact of transformational leadership style on the academic faculties of the B-Schools of Maharashtra in comparison to the other two leadership styles. 5.5 Objectives: The research objectives were: 1)

To study the relationship between the Transformational, Transactional and

Laissez-Faire Leadership Styles of the Heads/Directors and the level of commitment among the academic faculties of private un-aided B-Schools of Maharashtra. 2) To study the impact of Transformational Leadership Style on the academic faculties of the selected private un-aided B-Schools of Maharashtra in comparison to the Transactional and Laissez-Faire leadership styles. 176

3) To study the differences in Leadership Styles of HOD/Directors as observed and expected by the academic faculties of the private un-aided select B-schools of Maharashtra. 4) To determine the effects of age, level of education, marital status, gender, educational qualifications and job-related variables (Occupational status, salary and length of service, internal promotions) on the level of commitment of the private unaided selected B-School‘s academic faculties of Maharashtra. 5)

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

un-aided select B- Schools of Maharashtra. 5.6 Statement of Hypothesis: H01: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments has no positive impact on the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H11: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors has a positive impact on the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H02: The Transactional Leadership Style (as observed and expected) of the Heads of the Departments/Directors has no positive impact on the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H12 : The Transactional Leadership Style (as observed and expected) of the Heads of the Departments/Directors has a positive impact on the level of employees‘ commitment of private un-aided B-Schools of Maharashtra.

177

H03: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will not have a greater impact on the level of employees‘ commitment compared to the Transactional Leadership Style. H13 : The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will have a greater impact on the level of employees‘ commitment compared to the Transactional Leadership Style. H04: The Laissez-Faire Leadership Style of the Heads of the Departments/Directors has no negative impact on the level of employees‘ commitment of private un-aided BSchools of Maharashtra. H14: The Laissez-Faire Leadership Style of the Heads of the Departments/Directors has a negative impact on the level of employees‘ commitment of private un-aided BSchools of Maharashtra. H05: There is no difference between the expected and observed leadership styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra on the level of employee‘s organizational commitment. H15: There is difference between the expected and observed leadership styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra on employee‘s organizational commitment. H06: Together the Transformational and Transactional Leadership Styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will not

178

have a greater impact on the employee‘s commitment level, rather than either of the two separately. H16 : Together the Transformational and Transactional Leadership Styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will have a greater impact on the employee‘s commitment level, rather than either of the two separately. H07 : There will be no positive relationship with the level of education and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H17 : There will be a positive relationship with the level of education and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H08 : There will be no positive relationship with the age and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H18: There will be a positive relationship with the age and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H09: There will be no positive relationship between occupational status and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H19: There will be a positive relationship between occupational status and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. H010: There will be no positive relationship between pay (salary) and the level of employees of private un-aided B-Schools of Maharashtra. H110: There will be a positive relationship between pay (salary) and the level of employees‘ commitment of private un-aided B-Schools of Maharashtra. 179

H011: Married Employees of private un-aided B-Schools of Maharashtra will not be more committed to their organization than single, divorced and widowed employees. H111 : Married Employees of private un-aided B-Schools of Maharashtra will be more committed to their organization than single, divorced and widowed employees. H012: Male gender of private un-aided B-Schools of Maharashtra will not be more committed to their organization than the female gender. H112: Male gender of private un-aided B-Schools of Maharashtra will be more committed to their organization than the female gender. H013: Employees undergoing internal promotions of private un-aided B-Schools of Maharashtra will not be more committed to their organization. H113: Employees undergoing internal promotions of private un-aided B-Schools of Maharashtra will be more committed to their organization. The major purpose of this study was to examine the effects of the leadership styles of the Heads and the Directors of the private un-aided B-Schools of Maharashtra (transformational, transactional and/or laissez – faire) as perceived by their academic faculties on the level of organizational commitment of employees. Another purpose was to determine the level of organizational commitment and the prevailing leadership style among the B-School employees. The final purpose was to examine the effects of a number of relevant variables (satisfaction with the leader, age, level of education, marital status, occupational status, salary, length of employment and internal promotion) on the level of organizational commitment. This chapter presents a detailed description of the population and sample selection, measurement, data collection, and data analysis tools. 180

5.7 Population and Sample Selection This study was conducted in Maharashtra, India. The targeted population for the study was the full-time academic faculties of private un-aided B-Schools of Maharashtra who are subjected to the field of education. The official number of the academic faculties of the B- Schools of Maharashtra were approximately 4950.There are some reasons behind the selection of the academic faculties of the B-Schools of Maharashtra as the subjects for the current study. First, the researcher had time limitations which prevented the inclusion of other academic faculties of B-Schools belonging to other states of the country. Second, the academic faculties who are supposed to be building the future managers for the corporate and industrial sector represent the pillar of the modern business world. These academicians can bring in change in shaping the future business world through their researches and imparting their knowledge to the future managers which might percolates through the system for the betterment of future business world. Third, B-Schools from the last two decades turn out to be the most important academic qualification for holding managerial position in corporate sector. Students from all streams be it Engineering, Commerce, Arts, Science take up management course to hold managerial position in their service life. Employers also preferred candidates having management degrees for managerial positions. Fourth, since the researcher had previously worked for one of the private un-aided B-Schools of Navi Mumbai, it was more attractive subject of interest to her than any other sector. Lastly, so far no study was made in Indian sub-continent in the academic sector, subject to leadership and employee commitment.

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5.8 Sampling Design: This study was conducted in Navi-Mumbai, Mumbai, Pune, Nasik, Aurangabad area of Maharashtra. The targeted population for the study was the full-time academic faculties of private un-aided B-Schools of Navi-Mumbai area. There are altogether 390 B-schools in the Maharashtra according to DTE Report 2010-2011.The study has been conducted in 47 B-Schools of the above mentioned regions of Maharashtra. Sample Size: According to formula – SS = Z2 * (P) * (1 – p) C2 Where –Z = Z value (e.g., 1.96 for 95% confidence) P = Percentage picking a choice, expressed as decimal (.5 used for sample size needed) C = Confidence interval expressed as decimal (e.g., .04 = + 4) Total Population is 4590 academic faculties of b – schools of Maharashtra. Total number of sample is 570 academic faculties of b – schools of Maharashtra. 5.9 Data Source: 5.9.1 Descriptive Survey: Review of literature and other available information from various published and unpublished reports, journals, and periodicals, books, newspapers, etc. (including databases like EBSCO, Pro-quest, and others).

182

5.9.2 Field Survey: 5.9.2.1 Research Tool: The research instrument used for collecting primary data was questionnaire. The Questionnaires used for the final data collection were close ended questionnaires. Different Questionnaires used for different variables of the study were as follows: 5.9.2.1 Questionnaire for employee commitment. Questionnaire for demographic details: Age; Educational Qualifications; Marital Status; Occupational Status; Monthly Income(Salary);Length of Service; Gender; Internal Promotion.. 5.9.2.2 Questionnaire for Leadership Styles: (a) Transformational (b) Transactional (c) Laissez-Faire. The following are the criteria‘s for Multi factor leadership questionnaire for Transformational leadership style:  Builds Trust (IA- Idealized Attributes) -Transformational  Acts with Integrity (IB- Idealized Behaviours) -Transformational  Inspires Others (IM- Inspirational Motivation) -Transformational  Encourages Innovative-Transformational  Thinking (IS- Intellectual Stimulation) –Transformational  Coaches People (IC- Individual Consideration) 5-TransformationalI' The following are the criteria‘s for Multi factor leadership questionnaire for:

183

Transactional leadership style: 2.10  Rewards Achievement –Transactional  (CR- Contingent reward) - Transactional  Monitors Mistakes Transactional  (MBE-A: Management-By-Exception: Active )Transactional  (MBE-P: Management-By-Exception: Passive) - Transactional  Avoids Involvement –Laissez Faire (LF) 5.10 Pilot Study: A total of 150 questionnaires were distributed among the academic faculties of private un-aided B-Schools of Navi-Mumbai area, out of which 91respondent‘s instruments were analysed. The final questionnaire had been moderated based on the pilot study. The reliability test of the questionnaire was made and was found to be good.(For Reliability Test refer Annexure II). 5.11 Data Collection for the Main Research Study Data Collection began after the approval has been acquired from the dissertation committee particularly from Dr.R.Gopal (Director of the Department of Business Management) and Dr.Pradip Manjrekar (Dean of Business Management Department, Padmashree Dr.D.Y.Patil University). In Maharashtra where the study was conducted, the researcher seek permission from the directors of each B-schools before conducting the data collection by distributing the questionnaire among the academic faculties of the departments of each of the private un-aided B- Schools. The questionnaire was validated and the reliability of the questionnaire was measured too. Each questionnaire included a cover letter containing statements assuring the

184

respondent of anonymity and confidentiality. The letter also included clear and specific directions to fill up the instrument of the study. To help solicit the sample and prevent management intervention, the researcher distributed and collected the entire questionnaire herself. The department helped the researcher by providing her the necessary information needed in the data collection. Some of the B-Schools also assigned an office for the researcher which facilitated the process of distributing and collecting the questionnaire. The researcher also explained the purpose and benefit of the study and encouraged the respondents to complete the questionnaire. Before distributing any questionnaire, the researcher met with the Heads/Director of the departments of the selected B-Schools of Maharashtra and explained the distribution and collection plan. To obtain a high response rate and more accurate results, the researcher requested that each department head allow her to distribute the questionnaire to all the academic faculties. It should be noted that a small percentage of the targeted population did not participate in the study for various reason. For example, the employees who were on vacation or participating in training or MDP/FDP programmes outside the college were absent during the study. In addition a few faculties refused to participate and answer the questionnaire. Departments Heads left while the survey was conducted and were not present when they were returned to the researcher. Within a year 850 questionnaires were distributed out of which 690 were returned back. 120 questionnaires were excluded because they were incomplete. Hence the final number of completed questionnaire was 570.

185

Given below is the bifurcation of the data collected from different geographical regions of Maharashtra in tabular form: Table 6: Area vies Collection of the Research Data Sr.No.

Geographical

regions

Maharashtra.

of Strength

of

B-School‘s Academic

Faculties.

1.

Aurangabad

100

2.

Nasik

60

3.

Pune

130

4.

Mumbai

145

5.

Navi-Mumbai

135

5.12 Measurement of the Data The questionnaire used in this study is in two separate sets to measure the variables and test the hypotheses. The first set consisted of three major parts which is meant to be filled up by the supervisors and the second set consisted of four major parts which is meant to be filled up by the subordinate employees working under the leadership of the supervisor/Head/Director of the department. The first part of the supervisor‘s instrument dealt with organisational commitment (15 items). The second part was composed of items concerning leadership styles (30 items). The third part included eight questions regarding demographic backgrounds about the respondents such as age, education, marital status, occupational status, salary, length of services, gender, internal promotion.

186

5.12.1 Organizational Commitment of Employees Organizational commitment of employees was measured using the organisational commitment questionnaire (OCQ)developed by Porter and his associates in 1974.This instrument was designed to measure the relative ―strength of an individual‘s identification with and involvement in a particular organisation‖(Pg.604). According to this definition, organizational commitment could be characterized by at least three factors: (1) a strong belief in and acceptance of the organization‘s goals and values; (2) a willingness to invest considerable effort on behalf of the organization; and (3) a strong desire to maintain membership in the organization (Mowday et al.1982). The OCQ consists of 15 items, and each item was measured on a seven point Likert scale, ranging from 1 (strongly disagree) to 7(strongly agree). To reduce response bias, six items(item 3,7,9,11,12 and 15)in the instrument were negatively phrased and reverse scored. To arrive at a summary indicator of employee commitment, scores for all items are were summed and divided by 15. The higher the score, the greater the individual‘s commitment to the organization. Mowday et al. (1982) reported the results of the administration of the OCQ to 2,563 employees working in a wide variety of jobs in nine different types of organizations. The results indicated that the questionnaire showed sufficient validity and reliability. Reliability has been defined as ―a matter of whether a particular technique, applied repeatedly to the same object, would yield the same result each time‖ (Babbie 1995. P.124). Validity ―refers to the extent to which an empirical measure adequately reflects the real meaning of the concept under consideration‖ (p.127). Many researchers suggested using the OCQ. For example, Morrow (1983) supported the use of the OCQ and argued that the questionnaire has received substantial support regarding its reliability and validity. Mowday et al. (1979) conducted a study using 187

the OCQ. Their results showed a consistently high coefficient alpha, ranging from .82 to .93. They added that the questionnaire has demonstrated good psychometric properties and has been widely used by researchers. It has been used in at least 100 published studies, of which 17 were international in scope (Mathieu & Zajac, 1990). Further, the popularity of the questionnaire led Reichers (1985) to suggest that the ECQ has become the approach to Organizational commitment. 5.12.2 Leadership Styles Leadership styles were measured using the latest version of the Multifactor Leadership Questionnaire (MLQ)(Form -5x-short)developed by Bass and Avolio (1995). This questionnaire (MLQ),which has been tested and revised over the years, is often used to measure transformational, transactional and Leissez-faire Leadership style. The central thesis of the MLQ is derived from Bass‘s (1985) augmentation theory of transactional and transformational leadership. According to Bass and Avolio (1990), transformational leadership is a leadership style that strives to elevate the desires of individual followers for achievement and self-development, while also promoting the development of the group and organization. Further, transformational leadership ―goes beyond exchanging inducements for desired performance by developing, intellectually stimulating, and inspiring followers to transcend their own self-interests for higher collective purpose, mission, or vision‖(Howell & Avolio,1993,p.891).With regard to transactional and laissez-faire leadership styles, Burns (1978) viewed transactional as a type of leadership based on an exchange process between leaders and followers. Laissez-faire leadership represents a style used by leaders who try to avoid responsibility and decision-making (Bass, 1997).

188

In developing the MLQ (Form-5x), Bass and Avolio (1995) wanted to create a survey instrument that could adequately explain the ‗full range‘ of leadership styles, which includes highly transformational leaders at one end to those which are highly avoidant at the other end. In addition, the development of the MLQ (Form-5x) occurred as a response to criticisms of the old version of the MLQ (MLQ Form-5R) raised by several scholars. According to Bass and Avolio (1995), over the last four years, the MLQ (Form-5x) has been used in about 200 research programs, master theses, and doctoral dissertations around the world. They also stated that the instrument has been into German, French, Spanish, Arabic, Chinese, Hebrew, and Korean for use in different research projects. In the present study, employees were asked to rate their immediate supervisors (Head of the department / Director of the institute). It has been found that in many of the Bschools in spite of the designated HOD of the department, the employees are found to be directly reporting to the Director of the institute. The questionnaires for measurement were taken into account as per the applicability. This set of questionnaire which is meant for the sub-ordinate employees were having two sets of MLQ. One set defining the Observed Leadership style of the Director and the other set defining the expected leadership style from the director by the employees. Therefore, the MLQ rater form (5x-short) was used to measure the transformational, transactional and Leissez-faire leadership style as followed and as perceived and expected by the employees. In addition to measuring these characteristics, the MLQ Rater Form (5X-Short) was used to assess employees level of satisfaction with the leadership behaviour exhibited by their supervisors. The current study included only 30 items relating to 10 scales out of 45 items relating to 12 scales of MLQ. The scales related to Transformational Leadership were idealized influence (attributed), idealized 189

influence (behaviour), inspirational motivation, intellectual stimulation, and individual consideration. Contingent rewards, management exception (active), management by exception (passive), were associated with Transactional Leadership scales. The remaining two scales indicated laissez –faire leadership and satisfaction with leader. While all the leadership style scale has four items, satisfaction with the leader scale has only two items. Each item was rated on a Five point frequency scale ranging from 1 (not at all) to 5 (frequently, if not always). The MLQ scores are the average score from the items on the scale. The score can be derived by summing the items and dividing by the number of items that make up the scale. The validity and reliability of the MLQ have been empirically established. Based on the results of nine studies conducted on various organizations and using the experimental form of the MLQ (5X), the questionnaire showed a satisfactory level of internal consistency. Further, the reliability for the total items and for each leadership factor scale ranged from .74 to .94 (Bass & Avolio, 1995) and exceeded the standard reliability cut-off of.70 recommended by Fornell and Larcker (1981). In general, the MLQ (5x-Short) ―appears to be an adequate test with good construct validity, adequate reliability, and a good research base‖ (Jabati, p.39). 5.12.3 Age This variable was measured by asking the respondent to choose the category for his age range. Three categories were included. The first category was 20-29 years, the second category was 30-39 years, the third category was 40years and above.

P.T.O

190

5.12.4 Level of Education Level of education was measured by asking the respondent to select the category that indicated his educational level. There were four categories, ranging from graduation through various streams (BA/BCom/BSc/BE), Master Degree (MA/MCom/MSc/ME along with MABA/MMS to a doctorate degree. 5.12.5 Marital Status Marital status was measured by asking the respondents to mark the category that described their situation. Married (Coded 1), divorced (coded 2), single (coded 3), and widowed (Coded 4) were the categories to choose among. (See Annexure-II). 5.12.6 Occupational Level This variable was measured by asking the respondent to select the category that indicated his occupational position. The occupational level scale consisted of four categories. The first category (coded 1) included the lecturers, the second category (coded 2) included the Assistant Professor, the third category included the Associate Professors and the fourth category included the professors. (See Annexure-II). 5.12.7 Salary Salary (monthly income) was measured by asking the respondents to select the category that reflected their salary range. The salaries were broken into five categories. The first category (coded 1) included salaries above 45K,the second category included salaries ranging from 35-44K,the third category included salaries ranging from 25-34 K, and the fourth category included salaries between 15-24 K.(See Annexure-II)

191

5.12.8 Length of Service Length of service was measured by asking the respondents to select the category that indicated the number of years of their employment in the B-Schools they were currently in service. The categories were coded as follows: 1 = Upto 5 years, 2 = 6 to 10 years and 3 = more than 10 years. 5.12.9 Gender Gender was measured by asking the respondents to select the category that indicated the male and female status of the respondents. The first category (coded 1) included the male and the second category (coded 2) included the female. 5.12.10 Internal Promotion Internal promotion was measured by asking the respondents to select the category that reflected their internal promotion. The period of the internal promotion of the respondents were broken into three categories which indicated the promotion taken place within the time span of the respondent‘s career in a particular institute. The first category (coded 1) indicated the period ranging from 0-2 years, the second category indicated the period ranging from 3-6years, the third category included the period ranging from 7-10 years. 5.13 Reliability of the Study Instrument In this study, reliability tests were performed to assess the internal consistency of each measure. Cronbach‘s Alpha coefficients were reported as follows: .83 for the Organizational Commitment Questionnaire, .91 for the MLQ Leadership Style Questionnaire. (Refer Annexure-IIA)

192

5.14 Data Analysis Tools To analyze the collected data and test the expectations and hypotheses, the Statistical Package for Social Sciences (SPSS: Version 17 &20) for Windows 2007 was utilized. A number of Statistical tools were used. These included descriptive statistics to describe different characteristics of the respondents. Simple individual regression analysis was utilized to analyze the relationships between the dependent variable (organizational commitment) and each of the selected independent variables. Multiple regression analysis was used to determine the magnitude of the relationship between the dependent variable (organizational commitment) and all the independent variables used in the study Correlational statistics were used to describe and explore the relationships between all the variables used in the study. Finally, one way analysis of variance (ANOVA) was performed to test the differences in the level of organizational commitment among groups on the basis of the employee‘s demographic details such as age, educational qualifications, marital status, occupational status, monthly income salary, length of service, gender, internal promotion. 5.15 Interpretation and Report Writing: The analysed data were finally interpreted to draw the conclusions and reported with the objective of the study in view. 5.16 Limitation of the Study: The study is limited to the state of Maharashtra and that too specifically with NaviMumbai, Mumbai, Pune, Nasik and Aurangabad only. In future with a longer span of time, similar studies can be carried out in the other states of the country and even

193

globally. Also, in future few more parameters related to leadership style and employee commitment may be identified and subsequently, the study may be carried out on those identified parameters.

194

CHAPTER-6 RESEARCH FINDINGS

195

CHAPTER-6 RESEARCH FINDINGS 6.1 Introduction This chapter presents the results of the study. It is divided into four sections. The first section includes the pilot study report. The second section includes a description of the respondent‘s characteristics of the main research study. The third section contains statistical results of the correlation analyses of the items in the two instruments used, the Multifactor Leadership Questionnaire (MLQ) Rater Form (5x-Short) developed by Bass and Avolio (1995), and the Employee Commitment Questionnaire (ECQ) developed by Porter and his associates (1974). Also, the third section includes the range, mean, median, and standard deviation of all the scales used in the current study. Results of the expectations and hypotheses testing and the complete regression model are presented in the fourth section. 6.2 Pilot Study Report A total of 150 questionnaires were distributed as mentioned earlier among the academic faculties of private un-aided B-Schools of Navi-Mumbai area, out of which 91respondent‘s instruments were analysed. The final questionnaire had been moderated based on the pilot study. The reliability test of the questionnaire was made and was found to be good. 6.2.1 Population and Sample Selection of Pilot Study: This study was conducted in Navi-Mumbai area of Maharashtra. The targeted population for the study was the full-time academic faculties of B-Schools of Navi-

196

Mumbai area. There are altogether 15 B-schools in the Navi-Mumbai area. A Total sample size of 110 academic faculties was studied out of 6 – B-Schools of Navi Mumbai. The names of the B-School of Navi –Mumbai under study are as follows: 1. Padmashree D.Y.Patil University, Department of Business Management,CBD, Belapur 2. Bharti Vidyapeeth's Institute of Management Studies & Research, Navi Mumbai 3. Agnel Charities Agnel Seva Sangha's Fr. C. Rodrigues Institute of Management Studies, Navi Mumbai 4. NCRD's Sterling Institute of Management Studies, Navi Mumbai. 5. Gahlot Institute of Management Studies and Research, Navi Mumbai 6. SIES College of Management Studies, Nerul 6.2.2 Data Collection: Data Collection began after the approval has been acquired from the dissertation committee particularly from Dr.R.Gopal (director of the department of business Management) and Dr.Pradip Manjrekar (Dean of Business management department, Padmashree Dr.D.Y.Patil University). In Navi-Mumbai area where the study was conducted, the researcher took permission from the directors of each Bschools before conducting the data collection by distributing the questionnaire among the academic faculties of the departments of each of the B- Schools. The questionnaire was validated and the reliability of the questionnaire was measured too. Each questionnaire included a cover letter containing statements assuring the respondent of anonymity and confidentiality. The letter also included clear and specific directions to fill up the instrument of the study.

197

Within a two months time 150 questionnaires were distributed out of which 130 were returned back .Thirty one questionnaire were excluded because they were incomplete. Hence the final number of completed questionnaire was 91. 6.2.3 Measurement of the Data: The questionnaire used in this study is in two separate sets to measure the variables and test the hypotheses. The first set consisted of three major parts which is meant to be filled up by the supervisors and the second set consisted of four major parts which is meant to be filled up by the subordinate employees working under the leadership of the supervisor/Head/Director of the department. The first part of the supervisor‘s instrument dealt with organisational commitment (15 items). The second part was composed of items concerning leadership styles (36 items). The third part included eight questions regarding demographic backgrounds about the respondents such as age, education, marital status, occupational status, salary, length of services, gender, internal promotion. 6.2.4 Results Description of respondent‟s characteristics with Hypotheses testing result: The questionnaire used for this study included 8 items concerning the respondent‘s characteristics. All the respondents were Dean and Academic faculties of B-Schools of Navi Mumbai. They were asked about their age, education, marital status, occupational status, salary (monthly income), and length of services, gender, and internal promotion. 6.2.4.1 AGE: The age range of the respondents are 20-50years and above. 198

The table 7-(i) shows the frequency distribution and the percentage of the respondents by age. It shows that 30 respondents are between the ages 20-29 and 39 respondents are between the ages 30-39 and 14 respondents are between the age 40-49 years and 8 respondents are above 50years of age. It indicates that the plurality of the respondents (42.9%) are between the age 30-39years and the lowest number of respondents (8.8%) were aged 50 and above. It also reveals that 33% of the respondents are between the ages 20-29 years and 15.4% respondents are between 40-49 years. Table 7-(i) shows frequency distribution of respondents by Age. AGE 20-29 Years 30 - 39 Years 40 - 49 Years 50 and above Total

Frequency Percent 30

33.0

39

42.9

14

15.4

8

8.8

91

100.0

6.2.4.2 EDUCATION: Based on table 7-(ii), the frequency distribution of the respondents by education. It shows that there are 70 academic faculties with master degrees and 21 are with doctoral degree. The table also indicates that 76.9% of the academic faculties are with master‘s degree and 23.1% are with doctoral degree.

199

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

Master Degree Doctorate Total

Frequency

Percent

70

76.9

21

23.1

91

100.0

6.2.4.3 MARITAL STATUS: Based on table 7-(iii), shows the frequency distribution of the respondents by their marital status. It shows that there are 66 academic faculties, that is the majority of the respondents(72.5%) who are married and 25 respondents (27.5%) are un-married i.e. ,single, none are divorced and widowed. Table 7-(iii) shows frequency distribution of respondents by Marital Status. Marital Status Frequency

Percent

Married

66

72.5

Single

25

27.5

Total

91

100.0

6.2.4.4 OCCUPATIONAL STATUS: Table 7(iv) shows frequency distribution of respondents by their occupational status. Table 7(iv) shows that the pluralities of respondents (53.8%) are in the middle level category that is the Assistant Professors, followed by 15.4% of respondents who are 200

lecturers; 11% are Sr.Lecturer and 9.9% are the Head of the Departments and 3.3% are Directors. Table 7-(iv) shows frequency distribution of respondents by Occupational Status. Frequency

Percent

Director

3

3.3

Head of the Department

9

9.9

Professor

6

6.6

Asst.Professor

49

53.8

Sr.Lecturer

10

11.0

Lecturer

14

15.4

Total

91

100.0

6.2.4.5 SALARY (MONTHLY INCOME): Respondents are asked about their monthly income or salary. The respondents are asked to choose the category indicating their monthly income. Table 7(v) indicates that the majority of respondents (73.9%) falls within low to middle income group that is between 15-44K per month, only 22% of the respondents had middle high and high salaries. Table 7-(v) shows frequency distribution of respondents by Salary (Monthly income) Frequency

Percent

1 lakh

4

4.4

80-90

6

6.6

201

Missing

55-65

2

2.2

45—55

8

8.8

35-44

27

29.7

25-34

26

28.6

15-24

16

17.6

Total

89

97.8

System

2

2.2

91

100.0

Total

6.2.4.6 LENGTH OF SERVICE Respondents were asked to report how long they are worked in their present institute. The respondents were asked to select the category that indicates the number of years they had spent working in the institute. As shown in table 7(vi), many respondents (about 52.8%) have been employed less than 5 years in any B-schools of Navi Mumbai, the period between less than 1-5 years. The table also shows that 17.6% of the respondents have worked between 11-15 years. The remaining 6.6% of the respondents have worked between 16-30 years and 1% has worked more than 30 years. Table 7-(vi) shows frequency distribution of respondents by Length of service. Frequency

Percent

Less than 1 year

6

6.6

1- 5 Years

42

46.2

6-10 Years

20

22.0

11-15 Years

16

17.6

16-20 Years

2

2.2

21-25 Years

2

2.2 202

26-30years

2

2.2

More than 30 Year

1

1.1

Total

91

100.0

6.2.4.7 GENDER: Table 7-(vii) shows that 58.2% of the respondents are females in the B-schools of Navi Mumbai and 41.8% of the respondents are Males in the B-schools of Navi Mumbai. Table 7-(vii) shows frequency distribution of respondents by Gender. Frequency

Percent

Male

38

41.8

Female

53

58.2

Total

91

100.0

6.2.5 Hypotheses Testing: The Hypotheses of this study addressed the field of Leadership and organizational commitment .In the current study there were 10 hypothesis tested. To test this hypothesis, some appropriate statistical tools such as frequency analysis, Analysis of variance (ANOVA), and Pearson‘s correlation techniques are used. Testing the Hypothesis: 5.10.5.1 Hypothesis 1: The Transformational Leadership style of the director of Bschools of Navi Mumbai has a positive impact on the level of Organizational commitment of employees. As shown in table 8(i-a), the Pearson‘s correlation, 203

indicated that there was a positive relationship between the transformational leadership style (perceived by employees in their immediate superior) of the Director/HOD of the B-schools of Navi Mumbai and organizational commitment of employees at a significant level (level of confidence at .05). These results were consistent with the hypotheses therefore the hypotheses was accepted. Table 8(i-a) Correlations of Transformational leadership styles (perceived) with organizational commitment. Builds Trust (IA) - Pearson‘s correlation Transformational

.242

Significant(2-tailed)

.021

N

91

IM(inspires others)

Pearson‘s correlation

.247(*)

IM(Transformational

Significant(2-tailed)

.018

Leadership)

N

91

IS

(encourages Pearson‘s correlation

.253(*)

innovative-

Significant(2-tailed)

.016

transformational

N

91

IC(coaches people)

Pearson‘s correlation

.232(*)

IC(Transformational

Significant(2-tailed)

.027

Leadership)

N

91

thinking) IS(Transformational Leadership)

* Correlation is significant at the 0.05 level (2-tailed). As shown in table 8(i-b), the Pearson‘s correlation, indicated that there was a positive relationship between the transformational leadership style (expected by employees in their immediate superior) of the Director/HOD of the B-schools of Navi Mumbai and organizational commitment of employees at a significant level (level of confidence at

204

.05) These results were consistent with the hypotheses therefore the hypotheses was accepted. Table 8(i-b) Correlations of Transformational leadership styles (expected) with organizational commitment. Encourages

Innovative- Pearson‘s correlation

Transformational Thinking Significant(2-tailed) (IS)

-Transformational N

(Expected)

.194(*) .037 91

Coaches People (IC) 5- Pearson‘s correlation

.209(*)

Transformational

Significant(2-tailed)

.027

(Expected)

N

91

* Correlation is significant at the 0.05 level (2-tailed). 6.2.5.2 Hypotheses 2: The transactional leadership style of the director of B-schools of Navi Mumbai has a positive impact on the level of Organizational commitment of employees. As shown in table 8(ii-a), concerning the relationship between transactional leadership style of the director of B-schools of Navi Mumbai and organizational commitment level of the academic faculties working under him, the Pearson correlation result demonstrated that the relationship between the two variables are positive and significant also (level of confidence at.05).The results were consistent with the hypotheses therefore the hypotheses was supported. Pearson’s Co-relation results of transactional Leadership style on employee commitment.

205

Table 8(ii-a) Correlations of Transactional leadership styles (observed) with employee commitment. CR Rewards Achievement Pearson‘s correlation –Transactional Contingent

(CR)

– Significant(2-tailed)

reward N

Transactional

.239(*) .023 91

* Correlation is significant at the 0.05 level (2-tailed). As shown in table 8(ii-b), concerning the relationship between transactional leadership style of the director of B-schools of Navi Mumbai and organizational commitment level of the academic faculties working under him, the Pearson correlation result demonstrated that the relationship between the two variables are positive and significant also (level of confidence at.05). The results were consistent with the hypotheses therefore the hypotheses was supported. Table 8(ii-b) Correlations of Transactional leadership styles (expected) with employee commitment. Rewards Achievement – Pearson‘s correlation Transactional Contingent

(CR)

– Significant(2-tailed)

reward N

Transactional (Expected) MBE-Active Transactional

.225(*) .019 91

Pearson‘s correlation

.211(*)

Significant(2-tailed)

.026

N

91

* Correlation is significant at the 0.05 level (2-tailed). Hypotheses 3: The transformational leadership style (observed/expected) of the director of B-schools of Navi Mumbai will have a greater impact on the organizational commitment level of employees compared to transactional leadership 206

style. To examine this hypothesis, a correlation analysis was performed. As shown in table 8(iii)The correlation result indicated that the transformational leadership of the director of B-schools of Navi Mumbai had a significant positive relationship with the organizational level of employees greater than the relationship between the transactional leadership of the director of B-schools of Navi Mumbai and the organizational commitment level of employees. These results were consistent with the hypotheses therefore the hypotheses was accepted. Table (8iii-a) Pearson‟s Co-relation results of transformational leadership style and transactional Leadership style on employee commitment as perceived by the academic employees of B-schools. IM(inspires others)

Pearson‘s correlation

.247(*)

IM(Transformational

Significant(2-tailed)

.018

Leadership)

N

91

(encourages Pearson‘s correlation

IS

.253(*)

innovative-

Significant(2-tailed)

.016

transformational

N

91

IC(coaches people)

Pearson‘s correlation

.232(*)

IC(Transformational

Significant(2-tailed)

.027

Leadership)

N

91

thinking) IS(Transformational Leadership)

Rewards Pearson‘s

CR Achievement

– correlation

.239(*)

Transactional (CR) – Significant(2-tailed)

.023

Contingent

91

reward N

Transactional ** Correlation is significant at the confidence level of .05(2-tailed)

207

The transformational leadership style (expected by the employees in their immediate supervisor) of the director of B-schools of Navi Mumbai will have a greater impact on the organizational commitment level of employees compared to transactional leadership style. To examine this hypothesis, a correlation analysis was performed. As shown in table 8(iii-b)The correlation result indicated that both the transformational and transactional leadership styles of the director of B-schools of Navi Mumbai had a significant positive relationship with the organizational commitment level of employees. These results were not consistent with the hypotheses therefore the hypotheses was rejected. Table (8iii-b) Pearson‟s Co-relation results of transformational leadership style and transactional Leadership style on employee commitment as expected by the academic employees of B-schools.

Encourages

Innovative- Pearson‘s correlation

Transformational Thinking Significant(2-tailed) (IS)

.194(*) .037

-Transformational N

(Expected)

91

Coaches People (IC) 5- Pearson‘s correlation

.209(*)

Transformational

Significant(2-tailed)

.027

(Expected)

N 91

Rewards Achievement – Pearson‘s correlation Transactional Contingent

(CR)

– Significant(2-tailed)

.225(*) .019

reward N

Transactional (Expected) MBE-Active Transactional

91 Pearson‘s correlation

.211(*)

Significant(2-tailed)

.026

N 91 208

6.2.5.4 Hypotheses 4: The laissez-faire leadership style of the director of B-schools of Navi Mumbai has a negative impact on the level of Organizational commitment of employees. To test these hypotheses correlations were conducted. The results of the correlation analyses revealed that the laissez –faire leadership style (Observed) of the Director of B-schools had a no significant negative relationship with the level of organizational commitment of employees as shown in Table 8(iv) but the result shows that Laissez – Faire Leadership style has a negative impact on the level of Organizational commitment of employees but statistically it is not significant. These results were not consistent with the hypotheses therefore the hypotheses was rejected. Table 8(iv-a) Correlation of Laissez –Faire Leadership style (Observed) with Organizational commitment of employees. Avoids Involve –Leissez Pearson Correlation Faire (Perceived) Sig. (1-tailed)

-.069

.264

N

86

* Correlation is significant at the 0.05 level (1-tailed). To test this hypothesis correlation were conducted. The results of the correlation analyses revealed that the laissez –faire leadership style (Expected) of the Director of B-schools had no significant negative relationship with the level of organizational commitment of employees as shown in Table 8(iv). These results were not consistent with the hypotheses therefore the hypotheses was rejected.

209

Table 8(iv-b) Correlation of Laissez –Faire Leadership style (Expected) with Organizational commitment of employees. Avoids Involve –Leissez Pearson Correlation Faire (Expected)

.071

Sig. (1-tailed)

.257

N

86

6.2.5.5 Hypotheses 5: There will be a positive relationship between age and the level of organizational commitment of employees. According to the result obtained from the correlation analysis there was no significant positive relationship between age and employees organizational commitment. As shown in Table 8(v), the results revealed that based on Age, there was no significant difference (F=2.079, p=.109) in the level of organizational commitment between employees. But there is a positive relationship between the age and the level of organizational commitment of employees. Age of employees between 30-39years (mean=69.74) showed a higher level of commitment to the organization than age between 20-29(mean=69.60), age between 40-49(mean=63.21), and age above 50 (mean=67.38).But the level of significance (0.109) is close to the level of confidence 0.05. These results were not consistent with the hypotheses therefore the hypotheses was rejected.

P.T.O

210

Table 8v (a&b) ANOVA shows relationship between age and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai.

N

2.

20-29

Years 3. 30 - 39 Years 4. 40 - 49 Years 5. 50 and above Total

Mean

Std.

Std.

95%

Confidence

Deviation

Error

Interval for Mean Lower

Upper

Bound

Bound

Minimum

Maximum

30

69.60

8.406

1.535

66.46

72.74

52

88

39

69.74

8.756

1.402

66.91

72.58

53

87

14

63.21

11.470

3.066

56.59

69.84

27

75

8

67.38

6.232

2.203

62.16

72.59

60

77

91

68.48

9.094

.953

66.59

70.38

27

88

Table 8(v-b):

Sum

Between Groups

of

Mean

Squares

Df

Square

F

Sig.

497.857

3

165.952

2.079

.109

Within Groups 6944.868 87 Total

79.826

7442.725 90

6.2.5.6 Hypothesis 6: There will be a negative relationship between the level of education and the level of organizational commitment of employees. Correlation result revealed that the level of education had no statistically significant negative relationship. There is no significant difference at the level of confidence of 211

0.05. The correlation result as shown in Table-8(vi) indicated that employee‘s education had no significant negative relationship with the level of organizational commitment of academic faculties of B-Schools of Navi Mumbai. These results were not consistent with the hypotheses therefore the hypotheses was rejected. Table 8(vi) ANOVA shows relationship between Education and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai. Std. p3q2 EDUCATION OC_Scr

2.Master Degree 3. Doctorate

Std.

Error

N

Mean

Deviation

Mean

70

68.99

7.888

.943

21

66.81

12.396

2.705

6.2.5.7 Hypothesis 7: There will be a positive relationship between the length of service and the level of organizational commitment of employees. Correlation results indicated that the length of service was positively correlated with the level of organizational commitment of academic faculties of the B-Schools of Navi Mumbai but there is no significant difference at the level of confidence0.05 as shown in table 8-(vii). So, the hypotheses is rejected. Length of service of employees between 6-10 years (mean=79.88) showed the higher level of organizational commitment than service up to 5years (mean=76.60) and service above 10 years (mean=73.60).

212

Table 8(vii-a, b) shows relationship between Length of service and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai. Table 8(vii -a) ANOVA Sum

Organizational Between Commitment

Groups

Score

Within

(Employees)

Groups Total

of

Mean

Squares

df

Square

374.699

2

187.349

11938.057

83

143.832

12312.756

85

F

Sig.

1.303

.277

Table8 (viib) One-way

N

Mean

Organizational Commitment

Score 48

76.6042

18

79.8889

20

73.6000

86

76.5930

(Employees)

6.2.5.8 Hypothesis 8:There will be a positive relationship between occupational status and the level of organizational commitment of employees. According to the results of correlation analysis, the variable of occupational status was found to be positively co-related with the level of organizational commitment as shown in table 8(viii-a,b), but this correlation was not statistically significant. So, the

213

hypothesis was rejected. Organizational commitment is higher among Directors (mean=72.33) than any other. Table 8 (viii-a, b), shows relationship between occupational status and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai. 8(viii-a): Descriptive

N

Director

Mean

Std.

Std.

95%

Confidence

Deviation

Error

Interval for Mean Lower

Upper

Bound

Bound

Minimum

Maximum

3

72.33

4.509

2.603

61.13

83.53

68

77

9

70.67

9.950

3.317

63.02

78.31

53

87

Professor

6

68.67

14.528

5.931

53.42

83.91

52

87

Asst.Professor

49 67.71

9.186

1.312

65.08

70.35

27

88

Sr.Lecturer

10 68.50

7.246

2.291

63.32

73.68

57

81

Lecturer

14 68.86

8.384

2.241

64.02

73.70

53

84

Total

91 68.48

9.094

.953

66.59

70.38

27

88

Head

of

the

Department

Table 8 (viii-b) ANOVA- One-way Sum

Between Groups

of

Mean

Squares

Df

Square

F

Sig.

118.511

5

23.702

.275

.926

Within Groups 7324.214 85 Total

86.167

7442.725 90

214

6.2.5.9 Hypothesis 9: There will be a positive relationship between pay (salary) and the level of organizational commitment of employees. The findings of the correlation analysis indicated that monthly income had a positive relationship with the level of organizational commitment of the academic employees of private B-Schools of Navi Mumbai and the relationship was significant as shown in Table 8(ix-a,b). This result was consistent with the Hypotheses. The Hypotheses was accepted. Table 8(ix-a, b), shows relationship between pay (salary) and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai. Table 8(ix-a) Descriptives Std. N

1.1 lakh

Mean

Deviation

95%

Confidence

Std. Error Interval for Mean Lower

Upper

Bound

Bound

Minimum

Maximum

4

70.00

6.782

3.391

59.21

80.79

62

77

2. 80-90 6

63.83

4.665

1.905

58.94

68.73

58

68

3. 55-65 2

44.00

24.042

17.000

-172.01

260.01

27

61

4.45-55

8

67.63

4.534

1.603

63.83

71.42

63

77

5.35-44

27

68.26

5.835

1.123

65.95

70.57

56

79

6.25-34

26

65.81

8.574

1.682

62.34

69.27

52

82

7.15-24

16

77.88

7.284

1.821

73.99

81.76

69

88

Total

89

68.45

9.189

.974

66.51

70.39

27

88

215

Table8 (ix-b) ANOVA Sum

of

Squares Between Groups

Mean Df

2942.340 6

Within Groups 4487.682 82 Total

Square

F

Sig.

490.390

8.961

.000

54.728

7430.022 88

6.2.5.10 Hypothesis 10: Single Employees will be more committed to their organization than married employees. To examine this hypothesis an Anova was performed. As shown in table 8(x-a) and 8(x-b), the result revealed that based on marital status, there was no significant difference (F=1.479 and p=.228) in the level of organizational commitment between the academic employees of the private B-Schools of Navi – Mumbai. Single employees (mean=70.36) showed a higher level of commitment towards organization than married employees (67.77) but this correlation was not statistically significant. So the hypothesis was rejected. Table 8(x-a, b), shows relationship between marital status and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai.

Married Single Total

N

Mean

Std. Deviation

66 25 91

67.77 70.36 68.48

9.283 8.465 9.094

95% Confidence Std. Error Interval for Mean Upper Lower Bound Bound 1.143 65.49 70.05 1.693 66.87 73.85 .953 66.59 70.38

Minimum

Maximum

27 53 27

87 88 88

216

Table8(x-b) ANOVA Sum

of

Mean

Squares

Df

Square

F

Sig.

121.374

1

121.374

1.475

.228

Within Groups 7321.351

89

82.262

Total

90

Between Groups

7442.725

6.2.5.11 Hypothesis 11: Female Gender will be more committed to their organization than the Male Gender. To examine this hypothesis an Anova was performed. As shown in table 8(xi-a) and 8(xi-b), the result revealed that based on gender, there was no significant difference (F=.746 and p=.390) in the level of organizational commitment between the academic employees of the private B-Schools of Navi – Mumbai. This result was not consistent with the Hypotheses. The Hypotheses was rejected. Male gender showed (mean=69.55) higher level of organizational commitment than the female counterparts (mean=67.72) Table 8 (xi-a, b), shows relationship between gender and level of organizational commitment of private B-Schools academic faculties of Navi Mumbai. Table 8 (xi-a) T-Test Group Statistics: Std. p3q7

EC_Scr

Std.

Error

Gender

N

Mean

Deviation

Mean

Male

38

69.55

9.543

1.548

Female

53

67.72

8.769

1.205

217

Table 8(xi-b) Independent Samples Test

Levene's Test for Equality of Variances t-test for Equality of Means Mea Sig. n (2Diffe F Sig. t df tailed) rence

OC_Scr

Equal variance .746 s assumed Equal variance s not assumed

.390 .949

.936

Std. Error 95% Confidence Differen Interval of the ce Difference Lower

Upper

.345

1.83 6

1.934

-2.007

5.679

75.638 .352

1.83 6

1.961

-2.071

5.743

89

6.2.6 Conclusion: Consistent with what this study hypothesized, the results revealed that both transformational and transactional leadership styles had a positive impact on the level of organizational commitment of employees. These findings support the results of other scholarly studies. Bass and Avolio (1994) stated that both transformational and transactional leadership style enhance the level of commitment to the organization among

employees.

In

other

research,

the

positive

relationship

between

transformational leadership style and the level of organizational commitment was emphasized.(Bateman

&

Strasser,1984;Bycio

et

al.,1995;Michael

&

Sector,1982;Morris and Sherman,1981). The effects of both styles on organizational commitment were consistent with Bass‘s augmentation theory of leadership. Bass‘s augmentation theory of leadership postulates that successful leaders are both 218

transformational and transactional .Based on this theory transformational and transactional leadership styles should have positive effects on level of organizational commitment of employees and this is what this study demonstrated. The findings showed that transformational and transactional leadership styles positively affected organisational commitment. The results also indicated that transformational leadership styles had a greater impact on the level of organizational commitment of employees compared to transactional leadership style. This could be attributed to two factors; first, the transformational leadership focuses more on the human side of individuals and second, the transformational leadership component s may be more in practice among the educational institutes than other service industries. In relation to this, Carlson and Perrewe (1995) stated that, ―When transformational leadership is enacted, members of organization no longer seek merely self interest, but that which is beneficial to the organization as a whole‖ (P.832). The findings of this study revealed that there was a significant positive relationship between pay (salary) and the level of organizational commitment of employees. A logical explanation for such a relationship is that pay or monthly income is one of the most important factors that examines employees attitude towards their organization. This finding supports previous research studies (AL-Khatany, 1998; Angle and Perry, 1983; Becker, 1960). An explanation of this finding could be that since money being one of the main criteria to keep one committed to the service and reduce attrition and the raising expenses due to consumerism, the monthly income (salary) plays a major in maintaining the organizational commitment of the employees. Individuals satisfied with their salaries are likely to develop more positive attitudes toward their organization including organizational commitment.

219

To conclude, the complete model demonstrated the importance of this study through its explanation of more of the total variation in the level of organizational commitment of B-schools employees of Navi- Mumbai. In addition the model suggested that the most committed employee is the one who is older, is educated with the degree which just satisfy the UGC norms with no higher doctoral degrees, is in higher grade, has a higher salary, has served longer, is married, and works under a leader who is more transformational, more transactional, less laissez- Faire, and uses leadership methods that satisfy followers. 6.3 Description of Respondent‟s Characteristics of the main Research Study The questionnaire used for this study included seven items concerning the respondent‘s characteristics. All the respondents were academic faculties of BSchools of Maharashtra. They were asked about their age, education, marital status, occupational status, salary (monthly income), length of service and internal promotional period. 6.3.1Age The age range of the respondents was from 20 to 50 years and above. Table 9-(i) shows the frequency and percentages of the respondents by age. It indicates that the plurality of respondents (58.6%) were between the ages of 20 and 29, and the lowest numbers of respondents (9.3%) were aged 40 or above. It also reveals that 32.1% 0f the respondents were between the ages of 30 and 39.

220

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

Frequency Valid 2 20-29 Years 3 30 - 39 Years 4 40 & above Total

Valid Percent

Percent

Cumulative Percent

334

58.6

58.6

58.6

183

32.1

32.1

90.7

53

9.3

9.3

100.0

570

100.0

100.0

6.3.2Education Based on table 9-(ii), the frequency distribution of the respondents by education. It shows that there are 32 Academic faculties with their master degree in MBA/MMS and their graduation in BA/BCom/BSc /BE, 114 academic faculties with their master degree in MBA/MMS after their master degree acquired in either MA/MCom/MSc /ME and 340 respondents mentioned about their master degree in MBA/MMS only.84 respondents out of 570 academic faculties from private un-aided B-Schools of Maharashtra are with doctoral degree. The table also indicates that 85.2% of the academic faculties are with master‘s degree and 14.7% are with doctoral degree. A total of 486 academic faculties of the private un-aided B-Schools of Maharashtra are either with MBA or with MMS degree. Table 9-(ii) Frequency distribution of Respondent‟s Educational Level

Frequency Vali d

1 BA/BCom/BSc /BE 2 MA/MCom/MSc /ME 3 Master Degree/MBA/MMS 4 Doctorate Total

Percent

Valid Percent

Cumulative Percent

32

5.6

5.6

5.6

114

20.0

20.0

25.6

340

59.6

59.6

85.3

84 570

14.7 100.0

14.7 100.0

100.0

221

6.3.3Marital Status Based on table 9 (iii), which shows the frequency distribution of the respondents by their marital status. It shows that 424 of the respondents of the private un-aided BSchools of Maharashtra were married and 143 of the respondents were un-married. A very low score of 3 respondents were divorced and none are widow. In other words it states that 74.4% of the population from whom the data were collected are married, 25.1% are un-married and 5% are divorced.

Table 9-(iii) shows frequency distribution of respondents by Marital Status.

Frequency Valid

1 Married 2 Single 3 Divorced Total

Percent

Valid Percent

Cumulative Percent

424

74.4

74.4

74.4

143

25.1

25.1

99.5

3

.5

.5

100.0

570

100.0

100.0

6.3.4 Occupational Status Table 9(iv) shows frequency distribution of respondents by their occupational status. Table 9(iv) in detail shows that the pluralities of respondents (51.6%) are in the middle level category, that is the Assistant Professors, followed by 29.5.% of respondents who are lecturers;111.4% are Associate Professors and 7.5% belong to the Professor category. In other words, the majority of the respondents i.e., 294 of the population of the academic faculties of private un-aided B-Schools of Maharashtra belong to the category of Assistant Professor, 168 were Lecturer, 65 of them were Associate Professors and 43 of them were Professors.

222

Table 9-(iv) shows frequency distribution of respondents by Occupational Status.

Valid

1 Lecturer 2 Assistant Professor 3 Associate Professor 4 Professor Total

Frequency 168

Percent 29.5

Valid Percent 29.5

Cumulative Percent 29.5

294

51.6

51.6

81.1

65

11.4

11.4

92.5

43 570

7.5 100.0

7.5 100.0

100.0

6.3.5 Salary (Monthly Income) Respondents are asked about their monthly income or salary. The respondents are asked to choose the category indicating their monthly income. Table 9(v) indicates that the majority of respondents (76.3%) falls in high income group that is 45K per month and above, 15.8%% of the respondents falls within 35k-44k per month, 4.9% falls within the earning of 25k-34k per month and a very low percentage of 3% falls within 15k-24k as their monthly income. In other words 435 respondents gets a monthly salary above 45k per month,90 respondents gets within 35k-44k per month as their salary,28 respondents gets a salary within 25k-34k per month, and only 17 respondents gets salary within 15k-24k per month. Table 9-(v) shows frequency distribution of respondents by Salary (Monthly income)

Frequency Valid

1 45 k and above 2 35-44 k 3 25-34 k 4 15-24k Total

Percent

Valid Percent

Cumulative Percent

435

76.3

76.3

76.3

90 28 17 570

15.8 4.9 3.0 100.0

15.8 4.9 3.0 100.0

92.1 97.0 100.0

223

6.3.6 Length of Service Respondents were asked to report how long they worked in their present institute. The respondents were asked to select the category that indicates the number of years they had spent working in the institute. As shown in table 9(vi), many respondents (324) about 56.8% have been employed up to 5 years in private un-aided B-schools of Maharashtra, The table also shows that 31.8%% of the (181) respondents have worked for 6-10 years. The remaining 11.4% of the (65) respondents have worked for 10years and above in the currently employed private un-aided B-Schools of Maharashtra. Table 9-(vi) shows frequency distribution of respondents by Length of service.

Valid

1 Upto 5 yrs 2 6-10 yrs. 3 10+ Total

Frequency 324 181 65 570

Percent 56.8 31.8 11.4 100.0

Valid Percent 56.8 31.8 11.4 100.0

Cumulative Percent 56.8 88.6 100.0

6.3.7 Gender Table 9-(vii) shows that 44.7% of the respondents are males in the private un-aided BSchools of Maharashtra of the study and 55.3. % of the respondents was Females in the private un-aided B-Schools of Maharashtra. In other words out of the 570 respondent‘s data analysed for the study, 255 were males and 315 were females working in the private un-aided B-Schools of Maharashtra as the academic faculty . Table 9-(vii) shows frequency distribution of respondents by Gender.

Valid 1 Male 2 Female Total

Frequency 255

Percent 44.7

Valid Percent 44.7

315

55.3

55.3

570

100.0

100.0

Cumulative Percent 44.7 100.0

224

6.3.8 Internal Promotion Table 9-(viii) shows that 52.8% of the academic faculties have experienced internal promotion within a period of 0-2 years in their currently pursued employment in the private un-aided B-Schools of Maharashtra,13.3% have experienced internal promotion within the time span of 3-6years and .7% have experienced internal promotion within the time span of 7-10years.In other words 301 academic faculties had promotion within 0-2years,76 employees within 3-6years and 4 faculties within 710years of service in the currently employed private un-aided B-School of Maharashtra. Table 9-(viii) shows frequency distribution of respondents by internal promotion taken place within the particular time span.

Frequency Vali 1 0-2 years d 2 3-6 years 3 7 - 10 years Total Mis System sing Total

Percent

Valid Percent

Cumulative Percent

301

52.8

79.0

79.0

76 4 381

13.3 .7 66.8

19.9 1.0 100.0

99.0 100.0

189

33.2

570

100.0

6.4 Statistical Results In order to examine the validity of using regression techniques in this study, the correlations among the independent variables were computed. The results of the present study indicated that all independent variables of the Multifactor Leadership Questionnaire (MLQ) and Organizational Commitment Questionnaire utilized in this study did not reach the level of correlation of .8.According to Lewis – Beck (1980), multicollinearity is not a problem if the highest correlation among independent variables is less than .8. In addition, correlation analysis among all the sub-scales of 225

MLQ and the organizational commitment scale were performed. The results are presented in Table 10-(i). As might be expected, the correlations provide support for the validity of the measures of organizational commitment, transactional leadership, transformational leadership, and laissez – faire leadership. Transactional leadership, transformational leadership correlate positively and significantly with organizational commitment, and organizational commitment correlates negatively and significantly with laissez – faire leadership. It is clear from table 10 (i) that the correlation between the transactional and transformational scale is high (.816**) and significant at the .01 level. This finding was consistent with previous studies. According to Bass and Avolio (1995), highly positive correlations between the transformational scales and transactional leadership were expected. Bass and Avolio (1995) mentioned three reasons for this phenomenon. They note: First both transactional and transformational leadership represent active, positive, forms of leadership. Second, leaders have been shown in repeated investigation to be both transactional and transformational. Third, as Shamir (1995) argues, the consistent honouring of transactional agreements builds trust, dependability, and perceptions of consistency with leaders by followers, which are each a basis for transformational leadership. (p.11) Overall, the results suggested that the data were appropriate for regression techniques.

226

Table 10-(i).Interco-relations Among the MLQ Scales and Organizational Commitment Measure. Correlations Avoids Involve – Leissez Faire

Avoids Involve – Leissez Faire

Pearson Correlation

Transactional Leadership

Transformational Leadership

Pearson Correlation

-.120**

.000

.008

568

505

495

.167**

1

.816**

Sig. (2-tailed)

.000

N

505

507

490

-.120**

.816**

1

Sig. (2-tailed)

.008

.000

N

495

490

496

-.141**

.063

.093*

Sig. (2-tailed)

.001

.154

.038

N

568

507

496

Pearson Correlation

Pearson Correlation OC_SCR

Transformational Leadership

.167**

1

Sig. (2-tailed) N

Transactional Leadership

.000

227

Correlations EC_SCR Pearson Correlation Avoids Involve –Leissez Faire

Sig. (2-tailed)

.001

N

568

Pearson Correlation Transactional Leadership

.154

N

507 .093**

Sig. (2-tailed)

.038

N

496

Pearson Correlation OC_SCR

.063**

Sig. (2-tailed)

Pearson Correlation Transformational Leadership

-.141

1**

Sig. (2-tailed) N

570

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). In addition, Table 10- (ii) shows the range, mean, median, and standard deviation of all the scales used in this study. As shown in the table, the range indicates the lowest and highest score for each variable. The mean represents the most common average or measure of central tendency calculated by dividing the sum of the scores in a set by the number of scores. The median is the measure of central tendency corresponding to the middle point in a distribution of scores. Standard deviation (SD) as defined by 228

Gall et al. (1996) is ―A measure of the extent to which the scores in a distribution deviate from their mean‖ (p.770). The transactional leadership scale consisted of 08 items representing three subscales, contingent rewards, and management by exception (active), and management by exception (passive). The scoring range in the instrument for this variable was between one and five. Therefore, the lowest score for transactional would be 8 and the highest score would be 40. Specifically; the Heads/Deans/Directors of the private un-aided BSchools of Maharashtra were categorized based on their percentage scores as follows: Between 0 and 20 they were not transactional, between 21 and 40 they were rarely transactional, between 41 and 60 they were little transactional, between 61 and 80 they were fairly transactional and between 81 and 100 the leaders were highly transactional. Table 10-(ii).Range (%), Mean, Median, and Standard Deviation of all the Variables

Commitment N Valid Mean Median Std. Deviation Range

Transfor mational Transactiona (Exp) l (Exp)

570

570

570

63.3860 83.8070 64.4444 85.0000 13.06520 11.71606 83.33(15- 58.75(18 105) -90)

57.7827 58.3333 8.65627 69.44(8-40)

Transfor mational (P)

Transacti onal (P)

570

570

72.4759 54.8709 73.7500 55.5556 15.24665 12.69931 83.75

88.89

Since the transformational leadership scale consisted of 18 items scored between one and five, the range was between 18-90 (as shown in Table 10-(ii).The higher the percentage score ,the more transformational

the Heads/Deans/Directors, and the

lower score, the less transformational the Heads/Deans/Directors. Specifically 229

according to their percentage scores, the Heads/Deans/Directors were characterized as follows: Between 0 and 20 they were not transformational, between 21 and 40 they were rarely transformational, between 41 and 60 they were little transformational, between 61 and 80 they were fairly transformational and between 81 and 100 the leaders were highly transformational. The laissez – faire leadership scale consisted of four items with each item having a score between one and five. Therefore, the range for this style was between 4 and 20.The higher the score, the more laissez-faire the Head of the Institute, and the lower the score the less laissez-faire the Head/Dean/Director. Finally, the scale that measured organizational commitment was made up of 15 statements. Each statement had a score of between 1 and 7. Therefore, the range was between 15 and 105.The employees who had a score less than33 were considered to be less committed to the institute. Those who had a score between 34-66 are moderately committed to the institute. And the academic faculties of the private un-aided B-Schools of Maharashtra who had a score above 66 were considered to be highly committed to the Institute. 6.5 Testing the Expectations and Hypotheses of the main Research Study The research expectations and hypotheses of this study addressed the field of leadership and employee commitment. This section deals with testing these expectations and hypotheses. In the current study, there were 4 expectations and 13 hypotheses tested. To test these expectations and hypotheses, some appropriate statistical tools such as frequency analysis, Correlation Analysis, Analysis of Variance (ANOVA), and simple individual regression techniques were used.

230

6.6 Testing the expectations: 6.6.1 Expectations 1: The majority of the academic faculties of the private un-aided B-Schools of Maharashtra will be found to be un-committed to their organization. The level of organizational commitment ranges between 15 and 105. To determine the respondent‘s commitment to their organization, the frequency analysis was utilized, and three cut-off scores were used. Employees having a score from 15 to 52 were considered to be uncommitted, while employees with a score between 68 and 105 were considered to be committed. The employees who had scores between 53 and 67 were considered to be neutral; that is, neither uncommitted nor committed to the organization. According to the Table11 (i), the majority of employees (70-.2% were found to be committed to their organization. The table also reveals that 24.6% of the employees were found to be neutral, and 5.3% were found to be un-committed to their organization. Table 11(i). Frequency Distribution of Respondents by their Level of Organizational Commitment.

Frequency Valid 1 Uncommitted (15-52) 2 Neutral (53-67) 3 Committed (68105) Total

Percent

Valid Percent

Cumulative Percent

30

5.3

5.3

5.3

140

24.6

24.6

29.8

400

70.2

70.2

100.0

570

100.0

100.0

Thus, the expectation was rejected. 6.6.2 Expectation 2: The majority of the Heads/Deans/Directors of the private un-aided B-Schools of Maharashtra as perceived or observed and expected by

231

their academic faculties do not follow transactional leadership styles. To examine this expectation, frequency analysis and five cut-off scores were used. The scoring range in the instrument for this variable was between one and five. Therefore, the lowest score for transactional would be 8 and the highest score would be 40.Specifically; the Heads/Deans/Directors of the private un-aided B-Schools of Maharashtra were categorized based on their percentage scores as follows: Heads/Deans/Directors having a score between 0 and 20 were considered nontransactional leaders, with a score between 21 and 40 they were considered rarely transactional, and Heads/Deans/Directors having a score between 41 and 60 were considered to be little transactional. The rest of the Heads/Deans/Directors who had scores between 61 and 80 were considered fairly transactional and between 81 and 100 the leaders were considered highly transactional. From Table 11- (ii), it is clear that the majority of respondents (about 60.9%) perceived their Heads/Deans/Directors to be little transactional. About 26.5% of the respondents perceived their Heads/Deans/Directors to be Transactional in their leadership style with their subordinates. Only 3% of the respondents perceived their Heads to be highly transaction in their leadership style. The rest of the Heads/Deans/Directors were perceived to be Non-Transactional by 1.2% of the respondents, and rarely transactional by 8.4% of the respondents. Thus the expectation was partially rejected.

232

Table 11(ii). Frequency Distribution of Heads/Deans/Directors According to Their Transactional Characteristics as Perceived by their sub-ordinate Academic Faculties.

Not Transactional Rarely Little Transactional Highly Transactional Total

Frequency 7 48 347 151 17 570

Percent 1.2 8.4 60.9 26.5 3.0 100.0

From Table 11 – (iii), it is clear that the majority of respondents (about 64%) perceived their Heads/Deans/Directors to be little transactional. About 32.6% of the respondents perceived their Heads/Deans/Directors to be Transactional in their leadership style with their subordinates. Only 6% of the respondents perceived their Heads to be highly transaction in their leadership style. The rest of the Heads/Deans/Directors were perceived to be Non-Transactional by .2% of the respondents, and rarely transactional by 2.1% of the respondents. Thus the expectation was partially accepted. Table 11(iii). Frequency Distribution of Heads/Deans/Directors According to their Transactional Characteristics as Expected by their Sub-Ordinate Academic Faculties.

Not Transactional Rarely Little Transactional Highly Transactional Total

Frequency 1 12 365 186 6 570

Percent .2 2.1 64.0 32.6 1.1 100.0

233

6.6.3 Expectation 3: The majority of the Heads/Deans/Directors of the private un-aided B-Schools of Maharashtra as perceived or observed and expected by their academic faculties follow transformational leadership styles. The results as shown in Table 11 – (iv& v) reveal, on the one hand, that a plurality (about 47.2%) perceived/observed and (about 61.9%) expected their immediate supervisor as transformational and highly transformational respectively. On the other hand, (about 31.4%) perceived/observed and (about 34.4%) expected their immediate supervisors to be Highly Transformational and Transformation in their leadership respectively. Respondents who reported that their Heads/Deans/Directors are little transformational as in both perceived and expected were 18.1% and 3.7% respectively. Respondents who perceived/observed that their Heads/Deans/Directors are

rarely

transformational

totalled

3.0%,

while

.4%

rated

their

Heads/Deans/Directors as Not-Transformational. The score expected by the respondents for rarely and not Transformational was nil.

P.T.O 234

Table 11(iv). Frequency Distribution of Heads/Deans/Directors According to Their Transformational Characteristics as Perceived by their sub-ordinate Academic Faculties.

Not Transformational Rarely Little Transformational Highly Transformational Total

Frequency 2 17 103 269

Percent .4 3.0 18.1 47.2

179

31.4

570

100.0

Table 11(v). Frequency Distribution of Heads/Deans/Directors According to their Transformational Characteristics as Expected by their Sub-Ordinate Academic Faculties.

Little Transformational Highly Transformational Total

Frequency 21 196 353 570

Percent 3.7 34.4 61.9 100.0

6.7 Testing the Hypothesis The Hypotheses of this study addressed the field of Leadership and employee commitment. In the current study there were 13 hypothesis tested. To test this hypothesis, some appropriate statistical tools such as frequency analysis, Analysis of variance (ANOVA), and Pearson‘s correlation techniques and regression techniques were used.

P.T.O 235

Hypothesis Testing 1 6.7.1 H11: The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors has a positive impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. As shown in Table 12-(i), the regression coefficient (B) indicated that there was a positive relationship between the transformational leadership style of the dean/director/heads as perceived or observed by the academic faculties of private unaided B-Schools of Maharashtra and organizational commitment of employees at a significant level (t=4.516, p=.000). For each increment in one standard deviation unit of the level of the transformational leadership Dean‘s/head‘s/director‘s style, the expected value of the level of employee‘s organizational commitment increases by a standard deviation of .186. The results were consistent with the hypothesis. Therefore, the hypothesis was accepted. But according to Table 12-(ii) , the regression coefficient (B) indicated that there was a

positive relationship between the transformational leadership style of the

dean/director/heads as expected by the academic faculties of private un-aided BSchools of Maharashtra and organizational commitment of employees at a significant level (t=1.978, p=.048). For each increment in one standard deviation unit of the level of the transformational leadership Dean‘s/head‘s/director‘s style, the expected value of the level of employee‘s organizational commitment increases by a standard deviation of .083.The result confirm the hypothesis, therefore the hypothesis gets accepted.

P.T.O 236

Table 12 (i) shows Regression analysis of Transformational leadership styles (OBSERVED „OBS‟ or perceived “P”) on employee commitment. Coefficients (a) Mod el

1

(Constant) Transformational (P)

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 51.823 2.616 .160

.035

t

.186

Sig.

19.808

.000

4.516

.000

R=.186 R SQUARE=.035 Dependent Variable: Employee Commitment Table 12(ii) shows Regression analysis of Transformational leadership styles (Expected “Exp”) on employee commitment. Coefficients (a) Mode l

1

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 55.655 3.946

14.104

.000

.083

1.978

.048

(Constant) Transformational .092 .047 (Exp) Dependent Variable: Employee Commitment

t

Sig.

Correlation Analysis with Explanation As shown in table 12(iii), the Pearson‘s correlation, indicated that there was a positive

relationship

between

the

transformational

leadership

style

(perceived/observed by employees in their immediate superior) of the Director/HOD of the B-schools of Maharashtra and employee commitment of the academic faculties of the B-Schools of Maharashtra at a highly significant level of **.166(** Correlation

237

is significant at the 0.01 level (2-tailed). These results were consistent with the hypotheses therefore the hypotheses was accepted. Similarly shown in table 12(iii), the Pearson‘s correlation, indicated that there was a positive relationship between the transformational leadership style (expected by employees in their immediate superior) of the Director/HOD of the B-schools of Maharashtra and employee commitment of the academic faculties of the B-Schools of Maharashtra at a significant level of *.094(* Correlation is significant at the 0.5 level (2-tailed). These results were consistent with the hypotheses therefore the hypotheses was accepted. Table 12(iii) Correlations of Transformational leadership styles (OBSERVED „OBS‟/EXPECTED „EXP‟) with employee commitment.

Ec_Score Employee Commitment EXP_Tf_ld EXPTransformational Leadership

OBS_Tf_ld Transformational Leadership

Pearson Correlation

.094(*)

Sig. (2-tailed)

.037

N

494

Pearson Correlation

.166(**)

Sig. (2-tailed) N * Correlation is significant at the 0.05 level (2-tailed).

.000 446

** Correlation is significant at the 0.01 level (2-tailed). As shown in table 12(iv, v, vi), the Pearson‘s correlation, indicated that there was a positive

relationship

between

the

transformational

leadership

style

(observed/expected by employees in their immediate superior) of the Director/HOD of the B-schools of Maharashtra and employee commitment of the academic faculties 238

of the B-Schools of Maharashtra at a highly significant level of .177(**)/.097(*) respectively. These results were consistent with the hypotheses .Therefore the hypotheses was accepted. The Correlations with the Gap shown between the Transformational Leadership Style observed and expected by the employees of private un-aided B-Schools of Maharashtra from their immediate supervisors indicates a positive correlation of leadership style and employee commitment with the Gap between the observed and expected leadership styles of the directors rated by the academic faculties is significant at .092(*) for build trust(IA),.097(*) Acts With Integrity (IB), .059Inspires Others (IM), .071(*) Encourages Innovative- Thinking (IS),and .111(**)Coaches People (IC). Table 12 (iv) Correlations of Transformational leadership styles (OBSERVED „OBS‟) with employee commitment.

Commitment Builds Trust (IA) -Transformational (Perceived)

Acts With Integrity (IB) Transformational (Perceived)

Inspires Others (IM) -Transformational (Perceived)

Encourages InnovativeTransformational Thinking (IS) Transformational (Perceived)

Coaches People (IC) 5Transformational (Perceived)

Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N

.177(**) .000 570 .161(**) .000 570 .152(**) .000 570 .095(*) .012 570 .169(**) .000 570 239

Table 12 (v) Correlations of Transformational leadership styles (EXPECTED „EXP‟) with employee commitment.

Commitment Builds Trust (IA) -Transformational (Expected)

Acts With Integrity (IB) -Transformational (Expected)

Inspires Others (IM) -Transformational (Expected)

Encourages Innovative-Transformational Thinking (IS) -Transformational (Expected)

Coaches People (IC) 5-Transformational (Expected)

Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N Pearson Correlation

.097(*) .010 570 .070(*) .047 570 .112(**) .004 570 .015

Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N

.362 570 .049 .122 570

Table 12 (vi) Correlations of Transformational leadership styles (with GAP between observed „OBS‟/expected „EXP‟) with organizational commitment.

Commitment Builds Trust (IA) -Transformational (Gap) Pearson Correlation Sig. (1-tailed) N Acts With Integrity (IB) -Transformational Pearson (Gap) Correlation Sig. (1-tailed) N Inspires Others (IM) -Transformational Pearson (Gap) Correlation

.092(*) .014 570 .097(*) .011 570 .059 240

Encourages Innovative-Transformational Thinking (IS) -Transformational (Gap)

Coaches People (IC) 5-Transformational (Gap)

Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed) N

.081 570 .071(*) .045 570 .111(**) .004 570

Hypothesis Testing 2 H12: The Transactional Leadership Style (as observed and expected) of the Heads of the Departments/Directors has a positive impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. Concerning the relationship between transactional leadership style (perceived or observed by employees in their immediate superior) of the Directors/Deans/Heads of the Departments and the employee commitment level of the academic faculties of the B-Schools of Maharashtra, the regression results demonstrated that the relationship between the two variables was positive (B=.154) and significant (t=2.884, p=.004), as indicated in Table 13(i) below. For each increment in one standard deviation unit of the transactional leadership style of the Directors/Deans/Heads of the Departments, the expected value in the level of organizational commitment of employees increases by a standard deviation of .154.The results were consistent with the hypothesis. Therefore, the hypothesis was supported and accepted. But, the relationship between transactional leadership style (expected by the academic faculties in their immediate superiors) of the Directors/Deans/Heads of the Departments and the employee commitment level of the academic faculties of the BSchools of Maharashtra, the regression results demonstrated that the relationship between the two variables was positive (B=.010) but not significant (t=.182, p=.856), 241

as indicated in Table 13(ii) below. For each increment in one standard deviation unit of the transactional leadership style of the Directors/Deans/Heads of the Departments, the expected value in the level of organizational commitment of employees‘ increases by a standard deviation of .010. The results were not consistent with the hypothesis. Therefore, the hypothesis was not supported and thereby rejected. Table 13 (i) shows Regression analysis of Transactional leadership styles (OBSERVED „OBS‟ or perceived “P”) on employee commitment.

Mode l 1 (Constant) OBS_Ts_ld Transactional Leadership

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 63.174 3.080 .402

.139

.154

t B 20.509

Sig. Std. Error .000

2.884

.004

R= .154 R SQUARE =0.024 Dependent Variable: EC_SCORE Employee Commitment

Table 13 (ii) shows Regression analysis of Transactional leadership styles (Expected „EXP‟) on employee commitment.

Mode l 1 (Constant) EXP_Ts_ld EXPTransactional Leadership

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 63.174 3.080 .016

.088

.010

t B 20.509

Sig. Std. Error .000

.182

.856

R = .010 R SQUARE = .0001

242

Correlation Analysis for Transactional Leadership Styles: As shown in table 13(iii), concerning the relationship between transactional leadership style(perceived/observed by employees in their immediate superior) of the director of B-schools of Maharashtra and employee commitment level of the academic faculties working under him, the Pearson correlation result demonstrated that the relationship between the two variables are positively correlated and highly significant .132(**) at the level of confidence .01(2 tailed).The results were consistent with the hypotheses therefore the hypotheses was supported. Similarly as shown in table 13(iii), the Pearson‘s correlation, indicated that there was a positive relationship between the transactional leadership style (expected by employees in their immediate superior) of the Director/HOD of the B-schools of Maharashtra and employee commitment of the academic faculties of the B-Schools of Maharashtra are positively correlated but not significant .063(* Correlation is significant at the 0.5 level (2-tailed). Therefore it shows that Transactional Leadership Style was positively correlated with employee commitment but there is no significant difference. Therefore the hypothesis was partially accepted.

P.T.O

243

Table 13(iii) Correlations of Transactional leadership styles (OBSERVED „OBS‟/EXPECTED „EXP‟) on employee commitment.

OC_SCORE Organizational Commitment EXP_Ts_ld EXPTransactional Leadership

OBS_Ts_ld Transactional Leadership

Pearson Correlation

.063

Sig. (2-tailed) N Pearson Correlation

.154 507 .132(**)

Sig. (2-tailed) N

.009 388

N * Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed). As shown in table 13(iv, v, vi), the Pearson‘s correlation, indicated that there was a positive relationship between the transactional leadership style (observed/expected by employees in their immediate superior) of the Director/HOD of the B-schools of Maharashtra and employee commitment of the academic faculties of the B-Schools of Maharashtra at a significant level of .132(**)/.063 respectively. These results were consistent with the hypotheses. Therefore, the hypotheses were accepted. The Correlations with the Gap shown between the Transactional Leadership Style observed and expected by the employees of private un-aided B-Schools of Maharashtra from their immediate supervisors indicates a positive correlation of leadership style and employee commitment with the Gap between the observed and expected leadership styles of the Directors/Deans/Heads of the Departments rated by the

academic

faculties

is

significant

with

.162(**)

for

Contingent

244

Reward(CR),.110(**) Management By Exception(Active) (MBE-A), **correlation is significant at the level of (0.01) and *Correlation (0.05) is significant at the level of (0.01). But Employee Commitment is negatively significant with -.087(*) Management by Exception-Passive (MBE-P) of Transactional Leadership Style followed by the supervisors. Table 13(iv) Correlations of Transactional leadership styles (EXPECTED „EXP‟) on employee commitment. Rewards Achievement –Transactional (CR) Pearson – Contingent reward Transactional Correlation (Expected) Sig. (1-tailed) N MBE-A Transactional (Expected) Pearson Correlation Sig. (1-tailed) N Fights Fires (MBE-P) MBE- Transactional Pearson (Expected) Correlation Sig. (1-tailed) N ** Correlation is significant at the 0.01 level (1-tailed).

.029 .249 570 .060 .077 570 -.053 .103 570

* Correlation is significant at the 0.05 level (1-tailed). Table 13(v) Correlations of Transactional leadership styles (OBSERVED „OBS‟) on employee commitment. Rewards Achievement –Transactional (CR) – Contingent reward Transactional (Perceived)

Pearson Correlation

Sig. (1-tailed) N MBE-A Transactional (Perceived) Pearson Correlation Sig. (1-tailed) N Fights Fires (MBE-P) MBEPearson Transactional (Perceived) Correlation Sig. (1-tailed) N ** Correlation is significant at the 0.01 level (1-tailed).

.206(**) .000 570 .173(**) .000 570 -.132(**) .001 570

* Correlation is significant at the 0.05 level (1-tailed). 245

Table 13(vi) Correlations of Transformational leadership styles (with GAP between observed „OBS‟/expected „EXP‟) on employee commitment. Rewards Achievement –Transactional (CR) – Contingent reward Transactional (Gap)

Pearson Correlation

Sig. (1-tailed) N MBE-A Transactional (Gap) Pearson Correlation Sig. (1-tailed) N Fights Fires (MBE-P) MBE- Transactional Pearson (Gap) Correlation Sig. (1-tailed) N * Correlation is significant at the 0.05 level (1-tailed).

.162(**) .000 570 .110(**) .004 570 -.087(*) .019 570

**Correlation is significant at the 0.01 level (1-tailed). Hypotheses Testing 3 6.7.3 H13 : The Transformational Leadership Style (as observed and expected) of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will have a greater impact on the level of employees‟ commitment compared to the Transactional Leadership Style. To examine this hypothesis a correlation analysis was performed. As shown in Table 14-(i),the correlation results indicated that the transformational leadership style(observed by the academic faculties) followed by the Directors/Deans/Heads of the Departments had a significant positive relationship (r = .166,p = .000) with the organizational level of employees greater than the relationship between the transactional leadership style of the Directors/Deans/Heads of the Departments of the private un-aided B-Schools of Maharashtra and the employee commitment of the academic faculties working under them (r = .131,p=.010). Furthermore, the regression analyses as mentioned earlier in Tables 12(i) and 13(i) showed that the 246

transformational leadership style of the Directors/Deans/Heads of the Departments had a greater significant impact (Beta = .186) on the organizational commitment of employees compared to the significant impact of transactional leadership of the Directors/Deans/Heads of the Departments(Beta = .154).These results were consistent with the hypothesis. Hence, the hypothesis was accepted. Similarly, as shown in Table 14-(ii),the correlation results indicated that the transformational leadership style(expected by the academic faculties) followed by the Directors/Deans/Heads of the Departments had a significant positive relationship (r = .094,p = .037) with the organizational level of employees greater than the relationship between the transactional leadership style of the Directors/Deans/Heads of the Departments of the private un-aided B-Schools of Maharashtra and the organizational commitment

of

the

academic

faculties

working

under

them

(r

=

.065,p=.146).Furthermore, the correlation analyses as mentioned earlier ,showed that the transformational leadership style of the Directors/Deans/Heads of the Departments had a greater significant impact (Beta = .094) on the organizational commitment of employees compared to the significant impact of transactional leadership of the Directors/Deans/Heads of the Departments( Beta = .065). These results were consistent with the hypothesis. Hence, the hypothesis was accepted. Table 14(i) shows the Regression Analysis between Transformational Leadership (OBS), Transactional Leadership (OBS), on Employee Commitment. Variables

Employee Commitment

Transformational Leadership

.166(**)

Transactional Leadership

.131(*)

* Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed). 247

Table 14(ii) shows the Regression Analysis between Transformational Leadership (EXP), Transactional Leadership (EXP), on Employee Commitment. Variables

Employee Commitment

Transformational Leadership

.094(*)

Transactional Leadership

.065

* Correlation is significant at the 0.05 level (2-tailed). Hypothesis Testing 4 6.7.4H14:

The

Laissez-Faire

Leadership

Style

of

the

Heads

of

the

Departments/Directors has a negative impact on the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. To test this hypothesis, both correlations and regression analyses were conducted. The results of the regression analysis revealed that the laissez-faire leadership style of the Directors/Deans/Heads of the Departments of the private un-aided B-Schools of Maharashtra(as perceived or observed by the respondents, the academic faculties) had a significant negative relationship with the level of organizational commitment of employees ( r= -.106, p = .011). Likewise, the results of regression analysis indicated that the regression coefficient (B) demonstrated that the variable of laissez-faire leadership style of the Directors/Deans/Heads of the Departments had a significant negative effect on the level of employee commitment of the academic faculties of the B-Schools of Maharashtra as shown in Table 15(i).For each increment in one standard deviation unit of the laissez-faire leadership style of the Directors/Deans/Heads of the Departments, the expected value in the level of employee commitment decreases by a standard deviation of -.106.The results were consistent with the hypothesis. Therefore, the hypothesis was accepted. 248

On the other hand, the Laissez-Faire Leadership styles of the immediate supervisors as expected by the B-School‘s academic Faculties were found to have a significant negative relationship with the level of organizational commitment of employees ( r= .121, p = .004), just as it had been found in the findings of the perceived or observed Laissez –Faire Leadership style. The results of regression analysis indicated that the regression coefficient (B) demonstrated that the variable of laissez-faire leadership style of the Directors/Deans/Heads of the Departments had a significant negative effect on the level of employee commitment of the academic faculties of the BSchools of Maharashtra as shown in Table 15(ii). For each increment in one standard deviation unit of the laissez-faire leadership style of the Directors/Deans/Heads of the Departments, the expected value in the level of employee commitment decreases by a standard deviation of -.121.The results were consistent with the hypothesis. Therefore, the hypothesis was accepted. Table 15(i) shows the Regression Analysis between Laissez-Faire Leadership (OBS), and Employee Commitment.

Model

1

(Constant) Avoids Involve – Leissez Faire (Perceived or observed)

Unstandardized Coefficients Std. B Error 64.065 .592 -.060

.024

Standardized Coefficients

t

Sig.

Beta

-.106

108.290

.000

-2.547

.011

R=-.106 R Square=.011 Dependent Variable: Employee Commitment

249

Table 15(ii) shows the Regression Analysis between Laissez – Faire Leadership (EXP),) and Employee Commitment.

Model

1

(Constant) Avoids Involve – Leissez Faire (Expected)

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 64.065 .592 -.104

.036

-.121

t

Sig.

108.290

.000

-2.912

.004

R=-.121 R SQUARE=.015 Dependent Variable: Employee Commitment Correlation Analysis for Laissez-Faire Leadership Styles: As shown in table 15(iii), concerning the relationship between Laissez-Faire leadership style(perceived/observed by employees in their immediate superior) of the director of B-schools of Maharashtra and employee commitment level of the academic faculties working under him, the Pearson correlation result demonstrated that the relationship between the two variables are negatively correlated and highly significant -.146(**) at the level of confidence of 0.01(2 tailed).The results were consistent with the hypotheses therefore the hypotheses was accepted. Similarly as shown in table 15(iv), the Pearson‘s correlation, indicated that there was a negative relationship between the Leissez-Faire leadership style (expected by employees in their immediate superior) of the Director/HOD of the private un-aided B-schools of Maharashtra and employee commitment of the academic faculties and are highly significant -.121(**) (* Correlation is significant at the 0.01 level {2tailed}). Therefore it shows that Laissez - Faire Leadership Style was negatively

250

correlated with employee commitment and there is significant difference. Therefore the hypothesis was accepted. Table 15(iii) Correlations of Leissez-Faire leadership styles (OBSERVED „OBS‟ or Perceived) with organizational commitment.

Avoids Involve –Leissez Faire (Perceived/Observed)

Pearson Correlation

Sig. (1-tailed) N ** Correlation is significant at the 0.01 level (1-tailed).

-.146(**) .000 570

* Correlation is significant at the 0.05 level (1-tailed).

Table 15(iv) Correlations of Leissez-Faire leadership styles (EXPECTED „EXP‟) with organizational commitment. Avoids Involve –Leissez Faire (Expected)

Pearson Correlation Sig. (1-tailed) N ** Correlation is significant at the 0.01 level (1-tailed).

-.121(**) .002 570

* Correlation is significant at the 0.05 level (1-tailed). Correlations – With Gap between Expected and observed Laissez-Faire Leadership Style: As shown in table 15(iii and iv), the Pearson‘s correlation, indicated that there was a negative relationship between the Laissez-Faire leadership style (observed/expected by employees in their immediate superior) of the Director/HOD of the B-schools of Maharashtra and employee commitment of the academic faculties of the B-Schools of Maharashtra at a significant difference of -.146(**)/ -.121(**) respectively. These results were consistent with the hypotheses. Therefore, the hypotheses were accepted. The Correlations with the Gap shown between the Laissez-Faire Leadership Style

251

observed and expected by the employees of private un-aided B-Schools of Maharashtra from their immediate supervisors indicates a negative correlation of leadership style and employee commitment with the Gap between the observed and expected leadership styles of the Directors/Deans/Heads of the Departments rated by the academic faculties is not having a significant difference (.067).

Table 15(v) Correlations of Leissez-Faire leadership styles (with GAP between observed „OBS‟/expected „EXP‟) with organizational commitment.

Avoids Involve –Leissez Faire (Gap)

Pearson Correlation Sig. (1-tailed) N * Correlation is significant at the 0.05 level (1-tailed).

-.063 .067 570

** Correlation is significant at the 0.01 level (1-tailed). Hypothesis Testing 5 6.7.5 H15: There is difference (GAP) between the expected and observed leadership styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra on employee‟s organizational commitment. The Correlations with the Gap shown between the Transformational Leadership Style observed and expected by the employees of private un-aided B-Schools of Maharashtra from their immediate supervisors indicates a positive correlation of leadership style and employee commitment with the Gap between the observed and expected leadership styles of the directors rated by the academic faculties is significant at .092(*) for build trust(IA),.097(*) Acts With Integrity (IB), .059Inspires Others (IM), .071(*) Encourages Innovative- Thinking (IS),and .111(**)Coaches People (IC).

252

The Correlations with the Gap shown between the Transactional Leadership Style observed and expected by the employees of private un-aided B-Schools of Maharashtra from their immediate supervisors indicates a positive correlation of leadership style and employee commitment with the Gap between the observed and expected leadership styles of the Directors/Deans/Heads of the Departments rated by the

academic

faculties

is

significant

with

.162(**)

for

Contingent

Reward(CR),.110(**) Management By Exception(Active) (MBE-A), **correlation is significant at the level of (0.01) and *Correlation (0.05) is significant at the level of (0.01). But Employee Commitment is negatively significant with -.087(*) Management by Exception-Passive (MBE-P) of Transactional Leadership Style followed by the supervisors. The Correlations with the Gap shown between the Laissez-Faire Leadership Style observed and expected by the employees of private un-aided B-Schools of Maharashtra from their immediate supervisors indicates a negative correlation of leadership style and employee commitment with the Gap between the observed and expected leadership styles of the Directors/Deans/Heads of the Departments rated by the academic faculties is not having a significant difference (.067).

Table 16 Correlations of Transformational/ Transactional leadership styles (with GAP between observed „OBS‟/expected „EXP‟) with organizational commitment.

Commitment Builds Trust (IA) -Transformational (Gap)

Acts With Integrity (IB) Transformational (Gap)

Pearson Correlation Sig. (1-tailed) N Pearson Correlation Sig. (1-tailed)

.092(*) .014 570 .097(*) .011 253

Inspires Others (IM) -Transformational (Gap)

Encourages InnovativeTransformational Thinking (IS) Transformational (Gap)

N Pearson Correlation Sig. (1-tailed) N Pearson Correlation

Sig. (1-tailed) N Coaches People (IC) 5-Transformational Pearson (Gap) Correlation Sig. (1-tailed) N Rewards Achievement –Transactional Pearson (CR) – Contingent reward Transactional Correlation (Gap) Sig. (1-tailed) N MBE-A Transactional (Gap) Pearson Correlation Sig. (1-tailed) N Fights Fires (MBE-P) MBEPearson Transactional (Gap) Correlation Sig. (1-tailed) N Avoids Involve –Leissez Faire (Gap) Pearson Correlation Sig. (1-tailed) N * Correlation is significant at the 0.05 level (1-tailed).

570 .059 .081 570 .071(*) .045 570 .111(**) .004 570 .162(**) .000 570 .110(**) .004 570 -.087(*) .019 570 -.063 .067 570

** Correlation is significant at the 0.01 level (1-tailed). Hypothesis Testing 6 6.7.6 H16: Together the Transformational and Transactional Leadership Styles of the Heads of the Departments/Directors of private un-aided B-Schools of Maharashtra will have a greater impact on the employee‟s commitment level, rather than either of the two separately. Table 12-(i) and 13-(i) showed the results of regressing transformational and transactional leadership styles (as observed ‗OBS‘ by the academic faculties) of 254

Heads of the Departments/Directors/Deans of the private un-aided B-Schools of Maharashtra on the organizational level of employees separately. Table 12-(i) indicated that the R2 was 0.035 and Table 13-(i) showed that R2 was 0.024. This means that the transformational leadership style of the Deans/Directors/Heads of the Departments explained approximately 03.5% of the total variation in the level of organizational

commitment

and

transactional

leadership

style

of

the

Deans/Directors/Heads of the Departments explained approximately 02.4% of the total variation in the level of organizational commitment of employees. In addition, Table 17-(i) presents the results of regressing together the transformational and transactional leadership styles on the organizational commitment level of employees. According to the table, R2 was 0.116. This means that, together, the two styles explained approximately 11.6% of the total variation in the organizational commitment level of employees. Thus, together, the transformational and transactional leadership styles of Deans/Directors/Heads of the Departments had a greater impact on the level of the organizational commitment of employees, rather than either of the two separately. Therefore, the hypothesis was supported. Similar explanation can be given for the results of regressing transformational and transactional leadership styles (as Expected ‗EXP‘ by the academic faculties) of Heads of the Departments/Directors/Deans of the private un-aided B-Schools of Maharashtra on the organizational level of employees separately. Table 17-(ii) presents the results of regressing together the transformational and transactional leadership styles on the organizational commitment level of employees. According to the table, R2 was 0.009. This means that, together, the two styles explained approximately 9% of the total variation in the organizational commitment level of employees. Thus, together, the transformational and transactional leadership styles of 255

Deans/Directors/Heads of the Departments had a greater impact on the level of the organizational commitment of employees, rather than either of the two separately. Therefore, the hypothesis was supported. Table 17(i) shows Regression analysis of Transformational and Transactional leadership styles (OBSERVED „OBS‟ or perceived “P”) on employee commitment.

Variable

(Constant) Transformational (P or OBS) (Constant)

Unstandardized Coefficients Std. B Error 51.823 2.616 .160

.035

63.174

3.080

.402

.139

Transactional Leadership(P or OBS)

Standardized Coefficients

t

Sig.

Beta .186

.154

19.808

.000

4.516

.000

20.509

.000

2.884

.004

R=0.34 R Square=0.116 Dependent Variable: EC_SCORE Employee Commitment Table 17(ii) shows Regression analysis of Transformational and Transactional leadership styles (Expected “Exp”) on employee commitment. Mode l

1

1

(Constant) Transformational (Exp) (Constant) Transactional Leadership(Exp)

Unstandardized Coefficients Std. B Error 55.655 3.946 .092

.047

63.174

3.080

.016

.088

Standardized Coefficients

t

Sig.

Beta .083

.010

14.104

.000

1.978

.048

20.509

.000

.182

.856

R=0.093 R Square= .009 Dependent Variable: Employee Commitment 256

Hypothesis Testing 7 6.7.7 H17: There will be a positive relationship with the level of education and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. Correlation results revealed that the level of education has a statistically nonsignificant negative relationship (z =-1.572, p=.117) with the level of organizational commitment of employees. In addition, as shown in Table 18-(ii) below, the regression results demonstrated that the educational level of employees had a statistically significant positive effect on their level of commitment toward the organization (t = 3.555, p= .000). For each increment in one standard deviation unit of education, the expected value in the level of organizational commitment of employees increased by a standard deviation of .148.These findings were consistent with the hypotheses. Therefore, the hypothesis was confirmed. Table 18-(i). Correlation Results of the Level of Education on Employee Commitment. t-test for Equality of Means Sig. (2t df tailed) -1.572 242.372 .117

Commitment

Table 18-(ii). Regression Results of the Level of Education on Employee Commitment. Mode l

1

(Constant) p3q2 EDUCATION

Unstandardized Coefficients Std. B Error 65.343 1.952 2.369

.666

Standardized Coefficients Beta .148

t

Sig.

B 33.479

Std. Error .000

3.555

.000 R = .148 R 2 =.022.

A Dependent Variable: EC_SCORE Employee Commitment of Employees 257

Hypothesis Testing 8 6.7.8 H18: There will be a positive relationship with the age and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. According to the results obtained from the regression and correlation analyses, there was a significant positive relationship between employee‘s age and their level of organizational commitment. The correlation results indicated that employee‘s age had a significant positive relationship (F = 7.952, p=0.01) with the level of organizational commitment of employees. As shown in Table 19-(ii), the regression results revealed that the regression coefficient (B) demonstrated that the employee‘s age had a statistically significant effect on the level of organizational commitment of employees. For each increment in one standard deviation unit of the employee‘s age, the expected value in the level of organizational commitment of employee‘s increases by a standard deviation of .141.These findings supported the hypothesis that employee‘s age will have a positive relationship with the level of organizational commitment of employees. Thus, the hypothesis was accepted. Table 19-(i). Correlation Results of the Age on Employee Commitment.

Sum of Squares Commitment

Between Groups Within Groups Total

Mean Square

df

3928.367

3

1309.456

93199.683

566

164.664

97128.051

569

F

Sig.

7.952

.000

P.T.O

258

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

Unstandardized Coefficients Std. B Error

Model

1

(Constan t) p3q1 AGE

68.084

Standardized Coefficients

t

Sig.

Beta

B

Std. Error

1.272

53.535

.000 .001

1.740

.513

.141

3.389

R = .141 R2 = .02/.019

Dependent Variable: EC_SCORE Employee Commitment. Hypothesis Testing 9 6.7.9 H19: There will be a positive relationship between occupational status and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. According to the results of correlation analysis, the variable of occupational status found to be positively correlated with the level of employee commitment (r= .071), but this correlation was not statistically significant (p >0.05, i.e., p=.007). Also the regression analysis, as shown in Table 20-(ii) below, confirmed that the occupational status of employees had a positive effect on their level of organizational commitment of employees. But this effect was not statistically significant ( t = .414, p = .679). For each increment in one standard deviation unit of the occupational status, the expected value in the level of organizational commitment of employees increases by a standard deviation of .017. These findings were inconsistent with the hypothesis. Thus, the hypothesis was rejected.

P.T.O

259

Table 20-(i). Correlation Results of the Occupational Status on Employee Commitment. Sum of Squares Between Groups Within Groups Total

Mean Square

df

1692.244

2

846.122

95334.574 97026.818

566 568

168.436

F

Sig.

5.023

.007

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

Mode l 1 (Constant) p3q4 Occupational Status

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 71.715 .966 .140

.339

.017

t B 74.261

Sig. Std. Error .000

.414

.679 R = .017

A Dependent Variable: EC_SCORE Employee Commitment

Hypothesis Testing 10 6.7.10 H110: There will be a positive relationship between pay (salary) and the level of employees‟ commitment of private un-aided B-Schools of Maharashtra. The findings of the correlation analysis indicated that monthly income had a positive relationship with the level of organizational commitment of employees (r = .000), and this relationship was significant (p> 0.05). In addition, the regression results, as shown in Table 21-(ii), demonstrated that monthly income of employees had a 260

positive effect on their level of organizational commitment. But this effect was not statistically significant (t = -2.859, p = .004). For each increment in one standard deviation unit of salary, the expected value in the level of organizational commitment increases by a standard deviation of -.119. These results were consistent with the hypothesis. Therefore, the hypothesis was accepted.

Table 21-(i). Correlation Results of the Salary (Monthly In-Come) on Employee Commitment. ANOVA Sum of Squares Commitment Between Groups Within Groups Total

df

Mean Square

3510.020

3

1170.007

93618.031

566

165.403

97128.051

569

F

Sig.

7.074

Table 21-(ii). Regression Results of the Salary (Monthly In-Come) on Employee Commitment.

Model

1

Unstandardized Coefficients Std. B Error 75.268 1.226

Standardized Coefficients Beta

(Constant) p3q5 Monthly -.928 .325 -.119 Income Salary A Dependent Variable: EC_SCORE Employee Commitment

t B 61.372

Sig. Std. Error .000

-2.859

.004

261

.000

Hypothesis Testing 11 6.7.11 H111: Married Employees of private un-aided B-Schools of Maharashtra will be more committed to their organization than single, divorced and widowed employees. To examine this hypothesis, an ANOVA was performed. As shown in Table 22-(i), the results revealed that based on marital status, there was a significant difference (F = .014, p = 0.014) in the level of organizational commitment between employees. Married employees (mean = 64.1210) showed a higher level of commitment to the single (mean = 61.0256). Thus, the hypothesis was confirmed and accepted. Table 22-(i). Correlation Results of the Marital Status on Employee Commitment.

t-test for Equality of Means

Commitment

t 2.468

df 567

Sig. (2-tailed) .014

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

Unstandardized Standardized Coefficients Coefficients Std. B Error Beta 77.173 1.458

Mode l 1 (Constant) p3q3 Marital -4.055 1.089 -.154 Status A Dependent Variable: OC_SCORE Organizational Commitment

t B 52.918

Sig. Std. Error .000

-3.725

.000

262

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

Commitment

Marital Status Married Single

N 426 143

Mean 64.1210 61.0256

Std. Deviation 12.80612 13.48123

Std. Error Mean .62046 1.12736

Hypothesis Testing12 6.7.12 H112: Male gender of private un-aided B-Schools of Maharashtra will be more committed to their organization than the female gender. To examine this hypothesis, a correlation analysis was performed. As shown in Table 23(i) this results revealed that based on the gender of the employees of private unaided B-Schools of Maharashtra, there was no significant difference.(F= 1.081,p=0.280) in the level of organizational commitment between employees. Male gender (mean =64.0436) showed a higher level of commitment to the organization than their corresponding female gender (mean= 62.8536) but there is no statistically significant difference. Therefore, the hypothesis was rejected. Table 23-(i). Correlation Results of the Gender on Employee Commitment.

Commitment

t-test for Equality of Means Sig. (2t df tailed) 1.081 568 .280

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

Model

1

(Constant) p3q7 Gender

Unstandardized Coefficients Std. B Error 73.746 1.628 -1.087

.999

Standardized Coefficients Beta -.046

t B 45.288

Sig. Std. Error .000

-1.089

.277 263

A Dependent Variable: OC_SCORE Organizational Commitment Table 23-(iii). Mean Difference of the Gender on Employee Commitment.

Commitment

Gender Male Female

N 255 315

Mean 64.0436 62.8536

Std. Deviation 13.56764 12.64054

Std. Error Mean .84964 .71221

Hypothesis Testing 13 6.7.13 H113: Employees undergoing internal promotions of private un-aided BSchools of Maharashtra will be more committed to their organization. To examine this hypothesis, an ANOVA was performed. In addition, the regression results, as shown in Table 24-(ii), demonstrated that internal promotions of employees had a positive effect on their level of organizational commitment. But this effect was not statistically significant (t = .554, p = .580). For each increment in one standard deviation unit of promotion, the expected value in the level of organizational commitment increases by a standard deviation of .028.This result was not consistent with the hypothesis.). Internal Promotion within zero to two years of internal promotion (mean =63.9694) showed a higher level of commitment to the organization than internal promotion within three to six years (mean= 63.3099) and internal promotion within seven to ten years of promotion (mean = 51.4620) showed a lower level of commitment. Thus, the hypothesis was not confirmed as it is not statistically significant according to regression analysis. But the hypothesis was confirmed as it is statistically significant according to correlation analysis. So, it can be stated that the hypothesis was accepted.

264

Table 24-(i). ANOVA for the Internal Promotions on Employee Commitment. Sum of Squares Commitment

Between Groups Within Groups Total

Mean Square

df

2840.818

2

1420.409

94225.498

565

166.771

97066.317

567

F

Sig.

8.517

.000

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

Coe fficientsa

Model 1

Unstandardiz ed Coef f icients B Std. Error 71.904 1.729

(Cons tant) P3Q8 Internal promotion taken plac e w ithin the time span

.739

Standardized Coef f icients Beta

1.333

.028

t 41.583

Sig. .000

.554

.580

a. Dependent Variable: OC_SCR

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

Promotion Commitment

0-2 years 3-6 7-10 Total

N 407 142 19 568

Mean 63.9694 63.3099 51.4620 63.3862

To conclude this section, it is appropriate to include the results of the complete regression model, the multiple regressions of all the independent variables used in the study on the dependent variable (employee commitment). Based on the values of the variables in the model, the estimated level of employee commitment when all non-

265

dummy variables are at their mean values is 77.469.Coefficient values for each dummy show the change in the level of commitment for those categories. Table 25.Regression Results of all the Independent Variables on Employee Commitment Model Unstandardized Standardized t Sig. Coefficients Coefficients B Std. Beta Error (Constant) 40.522 7.270 5.574 .000 AGE 1.490 1.872 .077 .796 .427 EDUCATION -1.608 1.114 -.109 -1.444 .151 Marital Status .584 1.825 .023 .320 .749 Occupational 1.949 1.112 .160 1.754 .081 Status Monthly 6.955 3.025 .176 2.299 .023 Income Salary Length of 5.375 1.798 .288 2.989 .003 service Gender .980 1.302 .049 .753 .453 Internal promotion taken place -.868 1.658 -.035 -.524 .601 within the time 1 span Transactional .369 .214 .137 1.719 .087 Leadership Transformation .124 .079 .136 1.568 .119 al Leadership .071

NLF1

-.338

.186

R2=.24 8 -.131 -1.813 F=5.52 6 SIG=. 000

Dependent Variable: EC_SCR

266

CHAPTER-7 DISCUSSIONS AND CONCLUSIONS

267

CHAPTER-7 DISCUSSIONS AND CONCLUSIONS This chapter is divided into two sections. Discussions, conclusions, and limitations. The discussion section provides an explanation of the results and clarifies how they are related to the literature. The second section is concerned with providing meaningful conclusions derived from the study findings. 7.1 Discussion The research questions for this study include the following: 7.1.1 Research Questions: 1) To what extent are faculties of private unaided B-Schools of Maharashtra committed to their organizations? 2) What Leadership characteristics do Deans/Directors of private un-aided BSchools of Maharashtra possess as interpreted by the faculties under them? 3) What are the effects of the Dean‘s and Director‘s perceived leadership characteristics on the level of employee‘s organizational commitment? 4) Is there a difference in the level of commitment among academic faculties on the basis of demographic and job related variables? 5) Is there a difference of Leadership styles perceived and expected by the academic faculties from their respective Deans and Directors? To answer these questions, a thorough and detailed review of the literature on leadership and employee commitment was conducted. Based on the review of the literature, 4 expectations and 12 hypotheses were derived and tested by the researcher.

268

Before discussing the results of testing the expectations and hypotheses, some comments should be made regarding the characteristics of the respondents. The findings of this study indicated that a plurality of respondents were between the ages of 20 and 29 (58.6%), held Masters Degree MMS and MBA (85.2%), among it 5.6% with graduation in BA/B.COM/BSc/B.E. and 20.0% with masters degree MMS/MBA with another masters degree M.A/M.E./MSc, were married (74.4%), were employed as Assistant Professors (51.6%), were in the middle and higher income category (76.3%), and had worked between 1 and 5 years of service in private un-aided BSchools of Maharashtra ( 56.8%)., were of the gender female(55.3%), and have experienced internal promotions in their present organization within 1 and 2 years (52.8%).The relationships between the answers of the majority on the eight demographic items are logically accepted. With regard to testing the research expectations and hypotheses, the results indicated that only one expectation was supported, while three were rejected. The results also indicated that eleven while two were rejected. The findings of this study revealed that the majority of private un-aided B-School‘s employees (70.2%) of Maharashtra were found to be committed to the organization, while the remaining percentage were found either neutral or uncommitted. The highest score for the category of employee commitment was 105 and the lowest score was 68.These results were consistent with the hypothesis that the majority of the employees of the private un- aided B-Schools of Maharashtra were found to be highly committed to their organization. One explanation of this result could be that the majority of the B-School employees are well paid and have family responsibility and are belonging to the female gender category, that positively affect their level of commitment to the organization. Another explanation of this could be that less 269

number of doctoral degrees was found among the B-Schools academic facilitates were relatively low in number. Very high levels of education negatively affect the level of commitment of employees. Steers (1977) argued that employees with higher levels of education may have higher expectations which make it difficult for an organization to meet such expectations and results in less committed employees. Another explanation of this could be that private sector employees are more committed to their organization than their counterparts in the private sector. Buchanan (1974a) also observed that public managers are ―less involved, less loyal, and display weaker identification with the aims of their agencies than business executives‖ (p.345). The results of the study showed that the majority of the private un-aided B-School‘s academic faculties observed their Heads of the Departments as transformational and transactional. This result was also consistent with what the study hypothesized. However, the findings indicated that the score for Head of the Departments categorized as transactional was 45.2% and the score for Head of the Departments categorized as transformational was about 63.1%. This implied the prevalence of transactional and transformational leadership characteristics among the majority of Heads of the Departments in private un-aided B-Schools of Maharashtra. (The highest score for the category transactional leadership style was 40 and the lowest score was 20, the highest score for the category transformational leadership style was 90 and the lowest score was 54). But the expectation of the academic faculties of B-Schools slightly varies in transformational leadership (The highest score for the category transformational leadership style was 90 and the lowest score was 61). The literature revealed that transactional leadership is a type of leadership that is based on an exchange relationship between leader and follower. The transactional leaders focus on the clarification of task requirements and the specification of contingent rewards 270

(Bass, 1990).Whereas the Transformational leaders transform the needs, aspirations, and values of followers from a focus on self-interest to a focus on collective interest. They practice trust building to create strong commitment to a common mission. They generate emotion, energy, and excitement that cause followers to make significant personal sacrifices in the interest of the mission, and to perform above and beyond the call of duty. (Lussier /Achua, 2008).One reason behind this could be that academic faculties of private un-aided B-Schools in Maharashtra number more in Female gender (55.3%) than their male counterparts (44.7%).In female gender emotive factors and emotional attachment are more sensitive than male gender. Transformational leadership has been found to be positively related to organizational commitment and job-satisfaction. And as found from the result of the study the commitment level (70.2%) is quite high among the academic faculties of the BSchools of Maharashtra. Therefore the result confirms the earlier studies and definitions of transformational leadership style too and also indicated that the majority of the respondents viewed their Head of the departments as transformational. This finding support the hypothesis that the majority of the academic faculties of the BSchools of Maharashtra perceive their managers to be significantly transformational as well as transactional in their leadership style and keeps an expectation from their Head of the departments to be more transformational than transactional. The result also shows that the Head of the departments are not following Laissez –Faire Leadership style. Both the expected and observed leadership style findings of the respondents show that Laissez-faire leadership style has. Thereby we find that the findings support Hypothesis 1, 3, 4, 5&6. The findings confirms the earlier literature too that it describes a process of positive influence that changes and transforms individuals, organizations, and communities. Transformational leaders influence their

271

constituencies to make the shift from focus on self-interests to a focus on collective interests. They understand the importance of trust building as a means to creating a high commitment to mission-driven outcomes. Effective transformational leaders use their charisma and power to inspire and motivate followers to trust and follow their example. They generate excitement and energy by focusing on the future (Lussier/Achua, 2008). The present research study have revealed that transformational leadership has been found to be positively related to organizational commitment and in turn work outcomes. The research data showed that the respondents i.e., the academic faculties of private un-aided B-Schools of Maharashtra observed/perceived their immediate Heads of the Departments/Directors to whom they report, with the following findings of transformational leadership style: a) Build Trust(IA) [.000(**)] b) Acts with Integrity(IB)[.000(**)] c) Inspires other (IM) [.000(**)] d) Encourages Innovative thinking(IS)[.012(*)] e) Couches people(IC)[.000(**)] For the above data: ** Correlation is significant at the 0.01 level (1-tailed). * Correlation is significant at the 0.05 level (1-tailed). The research data showed that the respondents i.e., the academic faculties of private un-aided B-Schools of Maharashtra expected from their immediate Heads of the Departments/Directors to whom they report, with the following findings of transformational leadership style: a) Build Trust(IA) [.010(*)] b) Acts with Integrity(IB)[.047(*)]

272

c) Inspires other (IM) [.004(**)] d) Encourages Innovative thinking(IS)[.362] e) Couches people/Individual consideration(IC)[.122] Transactional Leadership seeks to maintain stability within an organization through regular economic and social exchanges that achieve specific goals for both the leaders and their followers. Burns indicated that the transactional leaders influence followers by transactions of exchange in which rewards such as pay, promotions, or status are exchanged for work. Bass maintains that transactional leadership revolves around the leader-follower exchange, in which the leader rewards the follower for specific behaviours and performance that meets with the leader‘s expectations, and punishes or criticizes behaviour or performance that does not meet expectation. The research data showed that the respondents i.e., the academic faculties of private un-aided BSchools of Maharashtra observed/perceived their immediate Heads of the Departments/Directors to whom they report, with the following findings of transactional leadership style: a) Contingent Reward (CR) [.000(**)] b) Management By Exception-Active(MBE-A) [.000(**)] c) Fights Fire-Management By Exception-Passive (MBE-P) [.001(**)] For the above data: ** Correlation is significant at the 0.01 level (1-tailed). * Correlation is significant at the 0.05 level (1-tailed). The research data showed that the respondents i.e., the academic faculties of private un-aided B-Schools of Maharashtra expected their immediate Heads of the Departments/Directors to whom they report, with the following findings of transactional leadership style:

273

a) Contingent Reward (CR) [.249] b) Management By Exception-Active(MBE-A) [.077] c) Fights Fire-Management By Exception-Passive (MBE-P) [.103] For the above data: ** Correlation is significant at the 0.01 level (1-tailed). * Correlation is significant at the 0.05 level (1-tailed). From the above data it is understood that the academic faculties of the B-Schools of Maharashtra do not want their Heads of the Departments and the Directors to whom they report to follow transactional leadership style. The research data also showed that the respondents i.e., the academic faculties of private un-aided B-Schools of Maharashtra GAP between the perceived and observed leadership styles of their immediate Heads of the Departments/Directors to whom they report, with the following findings of transformational as well as transactional leadership style: a) Build Trust(IA) [.014(*)] b) Acts with Integrity(IB)[.011(*)] c) Inspires other (IM) [.081] d) Encourages Innovative thinking(IS)[.045(*)] e) Couches people(IC)[.004(**)] f) Contingent Reward (CR) [.000(**)] g) Management By Exception-Active(MBE-A) [.004(**)] h) Fights Fire-Management By Exception-Passive (MBE-P) [.019(*)] For the above data: ** Correlation is significant at the 0.01 level (1-tailed). * Correlation is significant at the 0.05 level (1-tailed). So, it‘s understood from the above given data that the academic faculties observe their

274

Heads/Directors to be both transactional and transformational. But their expectation is more towards transformational leaders than transactional. Despite these differences, it is worth mentioning that effective leaders exhibit both transactional and transformational leadership skills in appropriate situations. Along these lines, one study proposed that a manager‘s perceptions of organizational context and personality variables would influence or constrain his or her utilization of transformational and transactional leadership behaviours (S.L.Shivers-Blackwell, 2004 /J.E.Bono and T.A.Judge, 2004). A meta-analytic test of the relative validity of transformational and transactional leadership styles revealed that both are valid approaches for achieving organizational objectives,(B.M. Bass ,B.J.Avolio,D.I.Jung,and Y.Berson,2003) with transformational leadership showing the highest overall relations and transactional or contingent reward leadership a close second.(T.Judge and R.Piccolo,2004) In other research study comparing transformational, transactional, and laissez-faire leadership styles between women and men, it was found that female leaders were more transformational than male leaders, and also engaged in more of the contingent reward behaviours that are a component of transactional leadership. Male leaders were generally more likely to manifest the other aspects of transactional leadership (active and passive management by exception) and laissez-faire leadership (A.H. Eagly, M.C. Johannesen Schmidt, and M.L.V.Engen, 2003). Consistent with what this study hypothesized, the results revealed that both Transformational and Transactional Leadership Styles had a positive impact on the level of organizational commitment of employees. An explanation for this result could be that B-School Faculties value the transformational and Transactional leadership styles because they are consistent with the academic values and cultures. These findings support the other scholarly studies. Bass and Avolio (1994) stated that both 275

transformational and transactional leadership styles enhance the level of commitment to the organization among employees. Further, it has been found that the level of organizational commitment of employees was positively related to the initiating and consideration

structure

behaviours(which

are

similar

to

transactional

and

transformational leadership styles, respectively)of their immediate managers(Brief et al.,1976;Morris & Sherman,1981).In other research, the positive relationship between transformational leadership style and the level of organizational commitment was emphasized(Bateman

&

Strasser,1984;Bycio

et

al.,1995;Carlson

&

Perrewe,1995;Michael & Sector,1982;Morris Sherman,1981). The effects of both styles on organizational commitment were consistent with Bass‘s augmentation theory of leadership. Bass‘s augmentation theory of leadership postulates that successful leaders are both transformational and transactional. Based on this theory, transformational and transactional leadership styles should have positive effects on the level of organizational commitment of employees and this is what this study demonstrated. The findings showed that transformational and transactional leadership styles positively affected organizational commitment. The results also indicated that transformational leadership had a greater impact on the level of organizational commitment of employees compared to transactional leadership. This could be attributed to two factors; first, the transformational leadership focuses more on the human side of individuals. In relation to this, Carlson and Perrewe (1995) stated that, ―When transformational leadership is enacted, members of organizations no longer seek merely self-interest, but that which is beneficial to the organization as a whole‖ (p.832) The findings of this study revealed that there was a significant positive relationship between the age of employees and their organizational commitment level. An 276

explanation of this finding could be that when employees get older, their alternative employment opportunities become limited. As a result, they are likely to develop more positive attitudes toward their organization including organizational commitment. This finding was consistent with the literature (Angle & Perry, 1981; Hrebiniak, 1974; Lee, 1971; Mathieu & Zajac, 1990).Mowday et al. (1982) and Meyer and Allen (1984) indicated that when the individual gets older and remains with an organization longer, the individual‘s opportunities for alternative employment tend to decrease, thereby enhancing the employee‘s commitment to the organization. With respect to the relationship between education and the level of organizational commitment of employees, the results demonstrated that there was a positive relationship between the two variables but is not statistically significant. To explain this relationship, we can say that more educated employees often have higher expectations which may be met with in academic institution, since the promotion is based on academic developments and not only performance based. Though previous literature and research study conducted in public organization in Saudi Arabia confirms that highly qualified employees adversely affects employee‘s level of commitment toward their organization(Faisal Homoud A-Ammaj,2000). In relation to this, Mowday et al.(1982),Steers (1977),Mathieu and Zajac (1990), and AL-Kahtany (1998) found education to be inversely related to commitment. But with respect to BSchool‘s academic faculties of Maharashtra it is not inversely related but positively related but not statistically significant. As predicted, the results of this study showed that there was a significant and positive relationship between the length of service of employees and employee commitment. This finding was consistent with previous studies (AL-Kahtany, 1998; Angle & Perry, 1981; Hrebiniak, 1974; Lee, 1971; Mathieu and Zajac, 1990). One explanation for this 277

finding can be that when employees stay longer with an employer; their alternative employment opportunities become limited. This positively affects the employee‘s attitudes toward the employer and consequently enhances their organizational commitment. It may also be that the longer one is in an organization, the more acclimated they become to the norms and values that constitute part of the organizational culture. With regard to occupational status, the results indicated that occupational status was positively related with employee commitment but is not statistically significant. In other research, it has been found that a positive relationship between occupational status and employee commitment exists (AL-Kahtany, 1998; Wiener & Vardi, 1980). This positive relationship is due to the fact that employees who occupy top-level or heading the department have more pay and prestige. As a result, employees tend to be more committed. Additionally, the results indicated that there was a positive relationship between monthly income (salary) and employee commitment. And this effect was statistically significant at .05 levels; it was significant at .10 levels. A logical explanation for such a relationship is that pay or monthly income is one of the most important factors that assess employee‘s attitudes toward their organization. This finding supports previous research studies (AL-Kahtany, 198; Angle & Perry, 1983; Becker, 1960). In testing the hypothesis based on marital status, the findings clearly showed that married employees were found to be more committed than single, divorced, or widowed employees. This result of this finding was statistically significant and was positively related to employee commitment. This result is consistent with the literature (Kawakubo, 1987; Lincoln & Kalleberg, 1990). To explain this, one may

278

say that married employees often have big responsibilities for their families which force them to be more committed than others. For instance, it is more cost incurring and risk taking for a married employee who has family responsibility upon him to leave his employer without alternative employment or income than a single employee. These responsibilities force married employees to be more committed to their employing organizations. In testing the hypothesis based on gender classification, the findings clearly showed that there is a positive relation of both the gender with employee commitment, but the result of the findings was not statistically significant. The hypothesis demands that male gender will be more committed to their organizations than their female counterparts‘. Since the frequency and the strength of the female employees are more in the academic faculties of the B-Schools of Maharashtra, It could be said that the number of female employees along with their male counterparts are committed to their organizations. Gender, as a topic in organizational commitment literature, has been approached from both the gender-model and the job model (Aven, Parker, & McEvoy, 1993). The gender approach to the study of women and organizational commitment was described as one where the basic belief was that, "women accept family roles as a chief source of their identity and fulfilment, leading to a different orientation to work for men, for whom work is paramount" (Loscocco, 1990, p. 155). In contrast, proponents of the job-model view concerning the study of organizational commitment and women indicated that there were no differences in the work attitudes of women and men, and that work attitudes of both sexes developed in similar ways (Loscocco). In testing the final hypothesis, the findings clearly showed that employees who had undergone internal promotion within 0-6 years are more committed to their 279

organization than the rest. The explanation of this could be the simple psychology of employees‘ ambition to be promoted keeps their commitment to their employer. The descriptive statistics showed that employee(63.9694) undergo internal promotion within a span of 0-2years and employee(63.3099) undergo internal promotion within a span of 3-6years,and (51.4620)employees undergo internal promotion within a span of 7-10years. The correlation result shows that internal promotion is statistically significant with employee commitment. It should be noted here that the findings of the overall regression results indicated that the result was not statistically significant. To explain this, it could be that the existence of multicollinearity between some variables led to incorrect results. To summarize the result it could be suggested that the most committed employee is the one who is older, educated, has a high monthly income, has served the organization for a considerable period of time, is married, male, and undergoes early promotions, and works under a leader who is more of transformational, transactional too but less laissez-faire in following the leadership styles with an expectation of their Leaders to be more and more Transformational in nature. 7.2 CONCLUSION As organizations strive to improve, there is a pressing need to understand the factors that may directly or indirectly impact individual‘s behaviours in organizations. This study was concerned with two important issues in the field of organizational behaviour, organizational commitment and leadership. The literature revealed that both subjects were considered as major contributors to the success of any organization, public or private. Based on the findings of the present study, the researcher developed the following conclusions:

280

1. The findings of this study indicated that transactional and transformational leadership styles positively impacted the level of employee commitment of the academic faculties of the B-Schools of Maharashtra. Additionally, the findings showed that the organizational commitment of individuals was negatively affected by the laissez-faire leadership style. Thus, in terms of organizational commitment, these results provide support for the cross-cultural applicability of Bass‘s augmentation theory of leadership, which postulates that successful leaders are both transformational and transactional. Bass (1996) stated that ‗ although the model of transformational or transactional leadership may have needs for adjustments and fine-tuning as we move across cultures, particularly into non-Western, overall, it holds up as having a lot of universal potential‖(p.754). Furthermore, consistent with Bass‘s theory that stressed that successful leaders are more transformational, the findings of this study demonstrated that the academic faculties of the B-Schools of Maharashtra keeps an expectation from their Heads of the Departments and Directors to be more transactional in nature while dealing their sub-ordinates and confirmed that sub-ordinates of transformational leaders were more committed to the organization than those who were under transactional leaders. 2. The results revealed that the majority of the academic faculties of the BSchools of Maharashtra were found to be committed to the organization. 3. The majority of the academic faculties of the B-Schools of Maharashtra perceived/observed their leaders or Heads of the Departments/Directors to exhibit transformational and transactional characteristics, but

keeps an

expectation from their Heads to whom they report to be more transformational in nature and follow contingent reward as well as management by exception-

281

active when concerning transactional leadership. Management by exception – passive was not accepted by the B-School academic employees. 4. Consistent with early research studies, the demographic variables of age, education, monthly income, marital status i.e., married employees had significant positive impacts on employee commitment. The result also shows that length of service, internal promotion, occupational status are positively related to employee commitment but the statistical results are not significant. The result also shows that both male and female employees are positively related to employee commitment but their statistical findings showed no significant difference.

282

CHAPTER 8 RECOMMENDATIONS AND SUGGESTIONS

283

CHAPTER 8 RECOMMENDATIONS AND SUGGESTIONS 8.1 Recommendations: Based on the results of the research findings, it could be said that, to enhance employee‘s organizational commitment, leaders or Heads of the Departments have to utilize both Transformational and Transactional Leadership Styles. If employees are highly committed, they are expected to be highly productive and loyal to their employing organization. However, the results of the study show that the academic faculties of the private un-aided B-Schools are moderately committed to their organisation. This result carries with it an important implication that the organization may achieve its goals with the committed employees. Buchanan (1974a) argued that employee commitment is no less than a precondition for successful organizations. In addition, the literature demonstrated that organizational commitment of employees is positively related to job performance and tenure with the organization, and negatively with turnover, absenteeism, and tardiness. Therefore, the Heads of the Departments or the Directors of the B-Schools of Maharashtra, leaders and managers and those who are responsible for the developments of the employees working under their leadership must pay close attention to their styles of dealing people and enhance their skills for better job-performance and productivity and their quality of teaching or working. Heads and Directors of the institutes who hold the leadership position should follow both transformational and transactional leadership styles as the findings demonstrated that the employee‘s level of organisational commitment was having positive impact 284

by transformational and transactional leadership style. Leaders who avoid responsibilities and making decisions are not appreciated by their employees as the result of the research shows that the Laissez-Faire style had a negative impact on the employee commitment. Therefore, it is recommended that Heads should be more active in taking responsibilities and actively taking part in decision–making process. The findings also indicated that the maximum positive contribution to employee commitment came from the behaviours associated with transformational leadership. It implies that a high level of organisational commitment of employees would be a result of having Deans and Directors of the B-Schools who are both transformational and transactional, but who display more transformational characteristics. Orientation programs should be applied. Such programs will provide new employees with a general background about the organisation, its mission, its values, and its policies. Communications between management and highly educated employees should take place. Regular increments and special increments for the deserving candidates should be implemented. Rewards and award giving ceremony should be held on annual occasions to motivate and inspire aspiring employees too. Experienced employees and employees who are in service to the organisation for a considerable period of time should be given importance and not taken for granted. Their advice and contributions can be pertinent to the achievement of the organisational goals. 285

Internal promotional system should be there in terms of the employee‘s performance and interpersonal communication skills. Institutions should provide a supportive work environment, which creates a mutually beneficial environment. Institutions should demonstrate their commitment to the employees by providing comprehensive training, sharing information, provide for the development and growth of employees within the organisation. 8.2 Suggestions: It is suggestive that the Heads of the departments or the Directors under whose leadership the academic faculties of the private un-aided B-schools of Maharashtra are working should be more transformational and transactional in nature while dealing with the academic faculties. It is even more suggestive that the Heads or the directors should be more transformational in their leadership styles. They should be more co-operative and participative in nature. Though they are expected to be transactional in their leadership styles but they should not devote much time over finding mistakes in their sub-ordinate faculties. The Heads and the Directors should not avoid or delay in taking decisions. They should be more punctual by nature and should not delay in responding to urgent questions. They should not be absent when needed and should not wait for things to go wrong before taking actions. Their steady involvement in all the important issues and problems should be there. For newly joined faculties orientation programs should be conducted. Regular communications should be there between the management and highly 286

educated faculties. Regular increments as per the HR of the institutions should be there. Whenever new openings are there, internal candidates should be considered first for the promotions. Inspirational and motivational training programmes should be there for the faculties. For good academic achievements or feedback from the students or conducting National and International seminars or for resource generation for the institute, the faculties should be rewarded and awarded. Employees who are working for a considerable period of time and the senior employees should be given more importance and should be involved in the decision– making process. Their wisdom and experience can be beneficial to the organisation.

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ANNEXURE-I QUESTIONNAIRES

309

ANNEXURE-I QUESTIONNAIRE-1 PART – I This part contains statements containing concerning general information about the participant. Please read the following statements and check (If reply is through e-mail then kindly state YES or NO) the category that best describes your situation. (Name of Institution:

)

1) Age : ------------20-29 ------------30-39 -----------40+ 2) Education :( Type the qualification achieved for, eg. BA-MBA /MMS) -----------BA/BCom/BSc /BE -----------MA/MCom/MSc /ME -----------Master Degree/MBA/MMS ----------Doctorate 3) Marital Status: -----------Married -----------Single -----------Divorced -----------Widowed 4) Occupational status ------------Lecturer -----------Assistant Professor -----------Associate Professor -----------Professor 310

5) Monthly income salary ----------45 k and above ----------35-44 k ----------25-34 k ---------15-24k

6) Length of Service -----------Up to 5 Years ----------6-10years ----------more than 10years

7) Gender ----------Male ----------Female 8) Internal promotion taken place within the time span ----------0-2 years ---------3-6 years --------7 – 10 years

311

QUESTIONNAIRE-2 PART – II Employee Commitment Questionnaire Employee Commitment Survey-OCQ You are being asked to participate in a survey to provide the state of Maharashtra with information that will help to improve the working environment for employees. Participation in this survey is voluntary and confidentially is assured. No individual data will be reported. The following statements concern how you feel about the department where you work. Please indicate the extent of your agreement or disagreement with each statement by circling a number from 1 to 7.If answering by way of e-mail then kindly RATE your answer by choosing from 1-7 ,any number as per your rating, for e.g., „3‟ under the column Rate.

Please do not put your name on this

questionnaire. 1

2

3

4

5

6

7

strongly

Disagree

somewhat

Neutral

Somewhat

Agree

Strongly

disagree

disagree

Employee Commitment Questionnaire

1

agree

1

2

agree

3

4

5

6

7

I am willing to put a great deal of effort beyond that normally expected in order to help this organization be successful

312

RATE

2

I talk high about this organization to my friends as a great organization to work for

3

I feel very little loyalty to this organization

4

I would accept almost any type of job assignment in order to keep working for this organisation.

5

I find that my values and organization‘s values are very similar

6

I am proud to tell others that I am part of this organization.

7

I could just as well be working for a different organization as long as the type of work was similar

8

This organization really inspires the very best in me in the way of job performance

9

It would take very little changes in my present circumstances to cause me to leave this organization

10 I am extremely glad that I choose this organization to work for over others ,I was considering at the time I joined 11 There is too much to be gained by sticking to this organization indefinitely. 12

I find it easy to agree with this organization‘s policies on important matters relating to its 313

employees. 13 I really care about the fate of this organization. 14 For me, this is the best of all possible organizations for which to work. 15 Deciding to work for this organization was a right decision on my part.

314

QUESTIONNAIRE-3 PART – III

Head of the Department/Director:

M / F - ------------- (Please circle the

appropriate response, if by way of e-mail then kindly state M/F in the blank space provided) This questionnaire is to describe the leadership style of your Head of the Department (or the person you report to), as you perceive/observe it. Please answer all items on this sheet. If an item is irrelevant, or if you are unsure or do not know the answer, leave the answer blank. Please answer this question anonymously. Thirty descriptive statements are listed on the following pages. Judge how frequently each statement fits the person you are describing. Use the following rating scale by circling your desired option for rating. If answering by way of e-mail, then kindly rate your answer by stating the number you prefer to rate your immediate leader to whom you report, for e.g., „4‟ under your rating column and state his/her designation in the blank space provided in the table given below.

Not at all

Once in a

Sometimes

Fairly often

Frequently,

while 0

1

if not always 2

3

4

Leadership style preferred by you: YOUR

Your designation :

RATING 1

Instil pride in me for being associated with

0

1

2

3

4

315

him/her 2

Go beyond self interest for the good of the

0

1

2

3

4

group 3

Act in ways that build others respect for him/her

0

1

2

3

4

4

Display a sense of power and confidence

0

1

2

3

4

5

Talk about his/her most important values and

0

1

2

3

4

0

1

2

3

4

0

1

2

3

4

Emphasize the importance of having a collective 0

1

2

3

4

0

1

2

3

4

0

1

2

3

4

11 Articulate a compelling vision of the future

0

1

2

3

4

12 Express confidence that goals will be achieved

0

1

2

3

4

13 Seeks different perspectives when solving

0

1

2

3

4

0

1

2

3

4

15 Spend time teaching and coaching sub-ordinates

0

1

2

3

4

16 Treat each faculty as an individual rather than

0

1

2

3

4

beliefs 6

Specify the importance of having a strong sense of purpose

7

Consider the moral and ethical consequences of decisions

8

sense of mission 9

Talks optimistically about the future

10 Talks enthusiastically about what needs to be accomplished

problem 14 Suggest new ways of looking at how to complete assignments

316

just as a member of the group 17 Consider each faculty as having different needs,

0

1

2

3

4

18 Help each faculty to develop their strengths

0

1

2

3

4

19 Discuss in specific terms who is responsible for

0

1

2

3

4

20 Make clear what one can expect to receive when 0

1

2

3

4

abilities and aspirations from others.

achieving performance targets

performance goals are achieved 21 Express satisfaction when expectations are met

0

1

2

3

4

22 Focus attention on irregularities, mistakes,

0

1

2

3

4

0

1

2

3

4

0

1

2

3

4

25 Fail to interfere until problems become serious

0

1

2

3

4

26 Wait for things to go wrong before taking action

0

1

2

3

4

27 Avoid getting involved when important issues

0

1

2

3

4

28 He/she is absent when needed

0

1

2

3

4

29 Avoid making decisions

0

1

2

3

4

30 Delay responding to urgent questions

0

1

2

3

4

exception and deviations from standards 23 Concentrate his/her full attention on dealing with complaints and failures 24 Direct his/her attention towards failures to meet standards

arise

317

QUESTIONNAIRE-4 PART – IV Multifactor Leadership Questionnaire (MLQ)

Head of the Department/Director:

M / F - ------------- (Please circle the

appropriate response, if by way of e-mail then kindly state M/F in the blank space provided) This questionnaire is to describe the leadership style of your Head of the Department (or the person you report to), as you expect it. Please answer all items on this sheet. If an item is irrelevant, or if you are unsure or do not know the answer, leave the answer blank. Please answer this question anonymously. Thirty descriptive statements are listed on the following pages. Judge how frequently each statement fits the person you are describing. Use the following rating scale by circling your desired option for rating. If answering by way of e-mail, then kindly rate your answer by stating the number you prefer to rate your immediate leader to whom you report, for e.g., „4‟ under your rating column and state his/her designation in the blank space provided in the table given below.

Not at all

Once in a

Sometimes

Fairly often

while 0

1

Frequently, if not always

2

3

4

318

Leadership style followed by my immediate supervisor YOUR RATING

Designation of the person you report to --1 2

Instil pride in me for being associated with him/her Go beyond self interest for the good of the

0

1

2

3

4

0

1

2

3

4

group 3

Act in ways that build others respect for him/her

0

1

2

3

4

4

Display a sense of power and confidence

0

1

2

3

4

5

Talk about his/her most important values and

0

1

2

3

4

0

1

2

3

4

0

1

2

3

4

Emphasize the importance of having a collective 0

1

2

3

4

0

1

2

3

4

0

1

2

3

4

11 Articulate a compelling vision of the future

0

1

2

3

4

12 Express confidence that goals will be achieved

0

1

2

3

4

13 Seeks different perspectives when solving

0

1

2

3

4

0

1

2

3

4

beliefs 6

Specify the importance of having a strong sense of purpose

7

Consider the moral and ethical consequences of decisions

8

sense of mission 9

Talks optimistically about the future

10 Talks enthusiastically about what needs to be accomplished

problem 14 Suggest new ways of looking at how to complete assignments

319

15 Spend time teaching and coaching sub-ordinates

0

1

2

3

4

16 Treat each faculty as an individual rather than

0

1

2

3

4

0

1

2

3

4

18 Help each faculty to develop their strengths

0

1

2

3

4

19 Discuss in specific terms who is responsible for

0

1

2

3

4

20 Make clear what one can expect to receive when 0

1

2

3

4

just as a member of the group 17 Consider each faculty as having different needs, abilities and aspirations from others.

achieving performance targets

performance goals are achieved 21 Express satisfaction when expectations are met

0

1

2

3

4

22 Focus attention on irregularities, mistakes,

0

1

2

3

4

0

1

2

3

4

0

1

2

3

4

25 Fail to interfere until problems become serious

0

1

2

3

4

26 Wait for things to go wrong before taking action

0

1

2

3

4

27 Avoid getting involved when important issues

0

1

2

3

4

28 He/she is absent when needed

0

1

2

3

4

29 Avoid making decisions

0

1

2

3

4

30 Delay responding to urgent questions

0

1

2

3

4

exception and deviations from standards 23 Concentrate his/her full attention on dealing with complaints and failures 24 Direct his/her attention towards failures to meet standards

arise

320

ANNEXURE-II Tables and Graphs

321

ANNEXURE-II Tables and Graphs A.1.1Reliability - Expected Reliability Statistics

Cronbach's Alpha Cronbach's Based on Standardized Alpha Items .817 .826

N of Items 30

Summary Item Statistics Maxim um

Mean Minimum Range Inter-Item Correlatio .137 -.363 .694 1.057 ns The covariance matrix is calculated and used in the analysis.

Maximum Varianc / Minimum e -1.915

No. of Items

.081

Item-Total Statistics

Exq1 Exq2 Exq3 Exq4 Exq5 Exq6 Exq7 Exq8 Exq9 Exq10 Exq11 Exq12 Exq13 Exq14 Exq15 Exq16 Exq17 Exq18 Exq19

Scale Scale Cronbach's Mean if Variance if Corrected Squared Alpha if Item Item Item-Total Multiple Item Deleted Deleted Correlation Correlation Deleted 78.49 73.509 .533 . .804 78.47 73.459 .535 . .804 78.49 74.243 .498 . .806 78.75 76.245 .293 . .813 78.77 75.811 .325 . .812 78.46 73.064 .560 . .803 78.44 73.403 .562 . .803 78.39 74.010 .529 . .805 78.37 73.752 .527 . .805 78.36 73.936 .548 . .804 78.44 72.869 .579 . .802 78.40 72.988 .629 . .802 78.55 72.702 .591 . .802 78.59 74.087 .479 . .806 78.57 71.817 .583 . .801 78.52 72.725 .578 . .802 78.59 73.725 .303 . .815 78.59 74.544 .459 . .807 78.37 73.590 .535 . .804 322

30

Exq20 Exq21 Exq22 Exq23 Exq24 Exq25 Exq26 Exq27 Exq28 Exq29 Exq30

78.37 78.30 78.83 78.86 78.94 81.37 81.55 81.61 81.63 81.62 81.58

74.022 74.130 77.647 76.946 77.996 82.905 82.512 83.093 82.067 82.302 82.718

.530 .511 .190 .234 .165 -.179 -.169 -.223 -.150 -.162 -.189

. . . . . . . . . . .

.805 .806 .817 .815 .818 .835 .831 .831 .827 .829 .830

A.1.2. Reliability - Observed Reliability Statistics

Cronbach's Alpha .867

Cronbach's Alpha Based on Standardized Items .874

N of Items 30

Summary Item Statistics

Mean

Minimu m

Maxim um

Range

Maximu m/ Minimu m

Varianc e

-2.621

.069

Inter-Item .188 -.303 .794 1.097 Correlations The covariance matrix is calculated and used in the analysis.

No. of Items

Item-Total Statistics

Mlq1 Mlq2 Mlq3 Mlq4 Mlq5 Mlq6 Mlq7 Mlq8 Mlq9

Scale Scale Mean if Variance if Item Item Deleted Deleted 71.30 161.414 71.23 163.291 71.17 164.723 70.87 167.445 70.90 166.488 70.95 164.561 71.13 163.974 71.10 163.974 71.01 165.346

Corrected Item-Total Correlation .566 .528 .542 .384 .401 .484 .517 .507 .511

Squared Multiple Correlatio n .579 .603 .490 .466 .533 .539 .527 .544 .514

Cronbach's Alpha if Item Deleted .858 .859 .860 .863 .863 .861 .860 .860 .860 323

30

Mlq10 Mlq11 Mlq12 Mlq13 Mlq14 Mlq15 Mlq16 Mlq17 Mlq18 Mlq19 Mlq20 Mlq21 Mlq22 Mlq23 Mlq24 Mlq25 Mlq26 Mlq27 Mlq28 Mlq29 Mlq30

71.03 70.94 70.86 71.22 71.23 71.39 71.28 71.27 71.26 71.11 71.20 71.22 71.16 71.18 71.32 73.01 73.19 73.34 73.25 73.37 73.32

165.027 162.367 163.965 163.265 160.928 159.347 162.639 160.884 161.510 161.221 160.868 160.203 167.984 168.075 167.392 176.302 175.858 174.787 173.997 175.477 176.268

.500 .555 .455 .541 .563 .583 .554 .589 .570 .574 .620 .594 .328 .328 .320 -.028 -.004 .034 .059 .010 -.020

.550 .634 .458 .541 .550 .563 .539 .640 .614 .581 .572 .521 .463 .530 .457 .524 .655 .673 .577 .746 .691

.860 .859 .861 .859 .858 .857 .859 .858 .858 .858 .857 .857 .864 .864 .865 .875 .873 .872 .872 .873 .874

A.1.3. Reliability - Employee Commitment Reliability Statistics

Cronbach's Alpha

Cronbach's Alpha Based on Standardized Items

.804

.821

N of Items 15

Summary Item Statistics

Mean Inter-Item Correlations

.234

Minimum -.234

Maximu m .806

Range 1.040

Maximu m/ Minimu m

Varianc e

-3.442

.049

N of Items 15

The covariance matrix is calculated and used in the analysis.

324

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Correcte Cronbac d Item- Squared h's Total Multiple Alpha if Correlat Correlati Item ion on Deleted

I am willing to put a great deal of effort beyond that normally expected in order to help this organization be successful

70.4396

133.471

.432

.474

.794

I talk high about this organization to my friends as a great organization to work for

70.9780

122.488

.678

.711

.776

recp1q3

71.4945

132.075

.157

.373

.820

I would accept almost any type of job assignment in order to keep working for this organisation.

72.3626

117.900

.498

.453

.786

I find that my values and organization's values are very similar

71.6923

122.304

.637

.541

.777

I am proud to tell others that I am part of this organization.

70.8242

121.213

.742

.776

.772

I could just as well be working for a different organization as long as the type of work was similar

72.4945

145.431

-.089

.233

.826

This organization really inspires the very best in me in the way of job performance

71.4176

122.246

.567

.450

.781

It would take very little changes in my present circumstances to cause me to leave this organization

72.8132

139.287

.063

.158

.819

I am extremely glad that I choose this organization to work for over others ,I was considering at the time I joined

71.3956

122.397

.633

.529

.777

recp1q11

71.9011

124.490

.498

.493

.786

recp1q12

72.4505

126.139

.447

.403

.790

I really care about the fate of this organization.

70.9890

135.100

.206

.252

.807

325

For me, this is the best of all possible organizations for which to work.

71.7363

118.441

.702

.624

.771

recp1q15

70.8571

130.724

.405

.393

.794

Split Half Reliability

Cronbach's Alpha

Part 1

Part 2

Total N of Items

Value

.694

N of Items

8(a)

Value

.665

N of Items

7(b) 15

Correlation Between Forms

.644

SpearmanBrown Coefficient

Equal Length

.784

Unequal Length

.784

Guttmann Split-Half Coefficient

.778

A .The items are: I am willing to put a great deal of effort beyond that normally expected in order to help this organization be successful , I talk high about this organization to my friends as a great organization to work for, recp1q3, I would accept almost any type of job assignment in order to keep working for this organisation., I find that my values and organization's values are very similar, I am proud to tell others that I am part of this organization., I could just as well be working for a different organization as long as the type of work was similar, This organization really inspires the very best in me in the way of job performance. B. The items are: It would take very little changes in my present circumstances to

326

cause me to leave this organization, I am extremely glad that I choose this organization to work for over others, I was considering at the time I joined, recp1q11, recp1q12, I really care about the fate of this organization., For me, this is the best of all possible organizations for which to work., recp1q15.

A 1.4 Frequency Table with Graphical Representation a) AGE

Valid 2 20-29 Years 3 30 - 39 Years 4 40 & above Total

Frequency 334

Percent 58.6

Valid Percent 58.6

Cumulative Percent 58.6

183

32.1

32.1

90.7

53 570

9.3 100.0

9.3 100.0

100.0

Agewise Distribution 20-29 Years

30 - 39 Years

40 & above

9% 32% 59%

b) EDUCATION Frequency Val 1 BA/BCom/BSc id /BE 2 MA/MCom/MSc /ME 3 Master Degree/MBA/MMS 4 Doctorate Total

Percent

Valid Percent

Cumulative Percent

32

5.6

5.6

5.6

114

20.0

20.0

25.6

340

59.6

59.6

85.3

84

14.7

14.7

100.0

570

100.0

100.0

327

c) Marital Status Frequency Valid 1 Married 2 Single 3 Divorced Total

Percent

Valid Percent

Cumulative Percent

424

74.4

74.4

74.4

143

25.1

25.1

99.5

3

.5

.5

100.0

570

100.0

100.0

Divorced 1%

Marital Status Single 25%

Married 74%

d) Occupational Status

Valid

1 Lecturer 2 Assistant Professor 3 Associate Professor 4 Professor Total

Frequency 168

Percent 29.5

Valid Percent 29.5

294

51.6

51.6

81.1

65

11.4

11.4

92.5 100.0

43

7.5

7.5

570

100.0

100.0

Cumulative Percent 29.5

328

Occupational Status 51.6

29.5 11.4

Lecturer

Assistant Professor

7.5

Associate Professor

Professor

e) Monthly Income Salary Frequency Valid

1 45 k and above 2 35-44 k 3 25-34 k 4 15-24k Total

Percent

Valid Percent

Cumulative Percent

435

76.3

76.3

76.3

90 28 17 570

15.8 4.9 3.0 100.0

15.8 4.9 3.0 100.0

92.1 97.0 100.0

Monthly Income Salary 76.3

15.8 4.9

45 k and above

35-44 k

25-34 k

3

15-24k

329

f)

Length of service Frequency

Vali 1 Upto 5 yrs d 2 6-10 yrs. 3 10+ Total

Percent

Valid Percent

Cumulative Percent

324

56.8

56.8

56.8

181 65 570

31.8 11.4 100.0

31.8 11.4 100.0

88.6 100.0

Length of service Upto 5 yrs

6-10 yrs.

10+ yrs

11% 32%

57%

g) Gender

Valid 1 Male 2 Female Total

Frequency 255

Percent 44.7

Valid Percent 44.7

Cumulative Percent 44.7

315

55.3

55.3

100.0

570

100.0

100.0

330

Gender

Male 45% Female 55%

h) Internal promotion taken place within the time span

Valid

Missi ng

Frequency 301 76 4 381 189 570

1 0-2 years 2 3-6 years 3 7 - 10 years Total System

Total

Percent 52.8 13.3 .7 66.8 33.2 100.0

Valid Percent 79.0 19.9 1.0 100.0

Cumulative Percent 79.0 99.0 100.0

Internal promotion taken place within the time span

7 - 10 years

3-6 years

0-2 years

1

19.9

79

331

i)

Level of Organisational Commitment

Frequency Valid 1 Uncommitted (15-52) 2 Neutral (53-67) 3 Committed (68105) Total

Valid Percent

Percent

Cumulative Percent

30

5.3

5.3

5.3

140

24.6

24.6

29.8

400

70.2

70.2

100.0

570

100.0

100.0

Level of Organisational Commitment Uncomitted (15-52) 5%

Neutral (53-67) 25%

Committed (68-105) 70%

j) Level of Transactional leadership Style(Perceived)

Valid

Missin g Total

1 Not Transactional 2 Rarely Transactional 3 Little Transactional 4 Transactional 5 Highly Transactional Total System

Frequency 33

Percent 5.8

Valid Percent 6.5

Cumulative Percent 6.5

40

7.0

7.9

14.4

191

33.5

37.7

52.1

229

40.2

45.2

97.2

14

2.5

2.8

100.0

507

88.9

100.0

63

11.1

570

100.0

332

Transactional (Perceived) Not Transactional

Rarely

Little

Transactional

Highly Transactional

3% 1% 8% 27%

61%

k) Level of Transactional leadership Style(Expected) Frequency Not Transactional Rarely Little Transactional Highly Transactional Total

Percent

1 12 365 186 6 570

.2 2.1 64.0 32.6 1.1 100.0

Transactional (Expected) Not Transactional

Rarely

Little

Transactional

Highly Transactional

1% 0% 2% 33%

64%

333

l) Level of Transformation leadership Style(Perceived)

Frequency Not Transformational Rarely Little Transformational Highly Transformational Total

Percent

2 17 103 269

.4 3.0 18.1 47.2

179

31.4

570

100.0

Transformational (Perceived) Not Transformational

Rarely

Little

Transformational

Highly Transformational

1% 3% 31%

18%

47%

334

m)

Level of Transformation leadership Style(Expected)

Little Transformational Highly Transformational Total

Frequency 21 196 353 570

Percent 3.7 34.4 61.9 100.0

Transformational (Exp) Little

Transformational

Highly Transformational

4% 34% 62%

A.1.5 Tables and data related to the norms of Private Un-aided B-Schools of Maharashtra.

The following are the list of approved nomenclature of courses at Post Graduate Degree Program, in Management.

MASTERS IN ADMINISTRATIVE MANAGEMENT MASTERS IN BUSINESS ADMINISTRATION MASTERS IN BUSINESS ADMINISTRATION (BUSINESS ECONOMICS) MASTERS IN BUSINESS ADMINISTRATION (ENVIRONMENT) 335

MASTERS IN BUSINESS ADMINISTRATION (EXECUTIVE) MASTERS

IN

BUSINESS

ADMINISTRATION

(FINANCE

MANAGEMENT) MASTERS IN BUSINESS ADMINISTRATION (FINANCE MARKETING AND HUMAN RESOURCE MANAGEMENT) MASTERS IN BUSINESS ADMINISTRATION (FINANCE MARKETING) MASTERS IN BUSINESS ADMINISTRATION (FINANCE) MASTERS

IN

BUSINESS

ADMINISTRATION

(FINANCIAL

ADMINISTRATION) MASTERS

IN

BUSINESS

ADMINISTRATION

(GENERAL

MANAGEMENT) MASTERS IN BUSINESS ADMINISTRATION (HUMAN RESOURCE DEVELOPMENT) MASTERS IN BUSINESS ADMINISTRATION (HUMAN RESOURCE MANAGEMENT) MASTERS

IN

BUSINESS

ADMINISTRATION

(INFORMATION

TECHNOLOGY) MASTERS

IN

BUSINESS

ADMINISTRATION

(INTERNATIONAL

BUSINESS) MASTERS IN BUSINESS ADMINISTRATION (MARKETING AND FINANCE) MASTERS

IN

BUSINESS

ADMINISTRATION

(MARKETING

MANAGEMENT) MASTERS IN BUSINESS ADMINISTRATION (MARKETING) MASTERS IN BUSINESS ADMINISTRATION (TEXTILES)

336

MASTERS

IN

BUSINESS

ADMINISTRATION

(TOURISM

MANAGEMENT) MASTERS IN BUSINESS MANAGEMENT MASTERS IN BUSINESS SYSTEMS MASTERS IN CORPORATE MANAGEMENT MASTERS IN ENGINEERING AND MANAGEMENT MASTERS IN FINANCIAL AND PERSONNEL MANAGEMENT MASTERS IN FINANCIAL MANAGEMENT MASTERS

IN

HUMAN

RESOURCE

DEVELOPMENT

AND

MANAGEMENT MASTERS IN HUMAN RESOURCE MANAGEMENT MASTERS IN INDUSTRIAL MANAGEMENT MASTERS

IN

INDUSTRIAL

RELATIONS

AND

PERSONNEL

MANAGEMENT MASTERS IN MANAGEMENT STUDIES MASTERS IN MATERIALS MANAGEMENT MASTERS IN PERSONNEL MANAGEMENT MASTERS IN PUBLIC SERVICE MANAGEMENT MHMCT (FOOD AND BEVERAGE MANAGEMENT) MHMCT (HOSPITALITY AND TOURISM ADMINISTRATION)

337

Norms for Land requirement and Building Space for B-Schools of Maharashtra Table below shows the Land Requirements for Management Institutions Land Area requirement in Acres

Other than Rural places

Rural Places as defined by

(Competent Authority to certify that

Competent Authority

the place is not located in a rural area) Stand alone Post Graduate Programs

Stand alone Post Graduate Programs

Management

0.50

1.00

Table below states the strength of students against per acre of land available for private un-aided B-Schools of Maharashtra. Program

Number of students generally allowed per acre land available when FSI = 1

Management

300

Land area shall cover hostel facilities, if any Land shall be in one continuous piece. Considering hilly nature of land in North Eastern States, land may be made available in 3 pieces which are not away from each other by more than 1 Km 338

Built-up-Area Requirements The Institution area is divided in, Instructional area (INA, carpet area in sq. m.), Administrative area (ADA, carpet area in sq. m.), Amenities area (AMA, carpet area in sq. m.). Circulation area (CIA) is equal to 0.25 (INA+ADA+AMA). Total built up area in sq. m. is equal to (INA+ADA+AMA) + (CIA). Norms for the building space for B-Schools of Maharashtra. Table below gives the measurement of building space for Management Institutions. a Institution area is divided in, Instructional area (INA, carpet area in sq. The

m.), Administrative area (ADA, carpet area in sq. m.), Amenities area (AMA, carpet area in sq. m.). b

Circulation area (CIA) is equal to 0.25 X (INA+ADA+AMA).

c

Total built up area in sq. m. is equal to (INA+ADA+AMA) + (CIA).

d Universities are required to show the proof for availability of total built up

area in each category before the Expert Visiting Committee.

Instructional Area (Carpet Area) in sqm for B-School Table below gives the measurement of Instructional area in Management Institutions

Carpet Area in sqm per room

Number of Divisions UG (Class of 60)

Duration of course in Yrs

Class Rooms(C)

Tutorial Rooms(D)

Computer Centre

Library & Reading Room

Seminar Halls (E)

Total requirement (Sum of column 3 to 8)

requirement per student (T/60)

1

2

3 66

4 33

5 150

6 100

7 132

8

9

339

Number of rooms required for new Technical Entity Total Number of rooms

A

Y

C=A

D=C/4

1

1

1

A

Y

C=AxY

D=C/4

1

1

E=C/4

1.Classrooms, Tutorial rooms and Laboratories required for 2nd (and 3rd) year may be added progressively to achieve total number as stated2 Round off fraction in calculation to the next integer Norms for Infrastructure facilities in B-Schools of Maharashtra: Table below gives the list of computers, software, internet and printers required in any B-Schools of Maharashtra. Number of PCs to students ratio (Min 20 PCs)

Legal System Software

Legal LAN & Applica Internet tion Softwa re

Mail Server & Client

Internet Mbps / intake of 24 students with Bandwidth Contention of 1:1 Min 1

Printers including Colour Printer (% of total no of PC's)

Mbps Manage-

PG/ 1:2

10

10

All

Desired

02

10%

ment

Utilization of Open Source Software may be encouraged Secured Wi Fi facility is highly recommended Purchase of most recent hardware is desired. Library, Administrative offices and Faculty members be provided with exclusive computing 340

Facilities along with LAN and Internet over and above the requirement meant for students Adequate number of software licenses is required Central Xeroxing facility for students is preferred

Table below gives the list of books, journals and library facilities required in any B-Schools of Maharashtra.

Program

MBA / PGDM / MCA

Total number of Divisions

Titles

B

100/50

Volumes

500xB/500xB

National

International

Journals

Journals

12xB

desirable

(PG)

B= Number of divisions at I year+ Number of II Year direct division. Mandatory Subscription of e-journals for all Institutions conducting program in Management. Publisher

EBSCO

Subjects

Management

E-Content

Business Source Elite e-journal Collection( 1802 e-journals & magazines) (2011)

Annual Subscription Price Per Institute

US$ 3500

341

Academic and good governance parameters in B-Schools of Maharashtra. Table below gives the academic and governance parameters of B-Schools of Maharashtra. Item

Item

Evaluation

No.

Description

Guidelines

Organization and Governance, Resources, Institutional Support, Development and Planning 1

Organization, Governance and

I Governing body, administrative setup

Transparency.

and functions of various bodies; ii. Defined rules, procedures, recruitment and promotional policies etc.; iii. Decentralization in working and grievance redressal system; iv. Transparency and availability of Correct/unambiguous information.

2

Budget allocation,

I Adequacy of budget allocation;

utilization and

ii. Utilization of allocated funds;

financial practices

iii. Publicly available the detailed audited statements

of

all

the

receipts

and

expenditures

342