Top Banner
A STUDY ON LEADERSHIP STYLES AND CORPORATE CULTURE PREFERENCES(With special reference to Oil and Natural Gas Corporation (ONGC), Rajahmundry Asset, Rajahmundry) In partial fulfillment of the requirements for the award of the Degree of Master of Business Administration Submitted by Sudeep Kumar. Dirsipam (Register No: 08A81E0044) Under the guidance of Mr.B.Ravi Kanth PGDBM , M.Sc (Applied Psychology) Sr. Asst. Professor SRI VASAVI ENGINEERING COLLEGE
115

A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Apr 07, 2015

Download

Documents

SUDEEP KUMAR

This Project involved in studying the Leadership styles and Corporate Culture preferences of ONGC, Rajahmundry
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

A STUDY ON

“LEADERSHIP STYLES AND CORPORATE CULTURE PREFERENCES”

(With special reference to Oil and Natural Gas Corporation (ONGC), Rajahmundry Asset, Rajahmundry)

In partial fulfillment of the requirements for the award of the Degree of

Master of Business AdministrationSubmitted by

Sudeep Kumar. Dirsipam(Register No: 08A81E0044)

Under the guidance of

Mr.B.Ravi Kanth PGDBM, M.Sc (Applied Psychology)

Sr. Asst. Professor

SRI VASAVI ENGINEERING COLLEGE

(Affiliated to Jawaharlal Nehru Technological University, Kakinada)

DEPARTMENT OF MANAGEMENT STUDIES

Page 2: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Pedatadepalli, Tadepalligudem, West Godavari.

2008-2010

SRI VASAVI ENGINEERING COLLEGE

(Affiliated to Jawaharlal Nehru Technological University, Kakinada)

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project work titled “LEADERSHIP

STYLES AND CORPORATE CULTURE PREFERENCES”

submitted by SUDEEP KUMAR DIRSIPAM examined and adjudged

sufficient as partial fulfillment for the award of the degree of Master

of Business Administration, by Jawaharlal Nehru Technological

University, Kakinada from SRI VASAVI ENGINEERING COLLEGE,

Tadepalligudem.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

Page 3: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

INTERNAL EXAMINER EXTERNAL EXAMINER

ACKNOWLEDGEMENTS

I am thankful to Sri. A.V.Bhaskara Rao, Principal, Sri Vasavi Engineering College, for providing a good environment for my Learning and development in entire course period.

I am deeply indebted to Sri.V.Kiran Kumar, Head of the Department, Department of Management Studies, for his support and guidance in doing this project and for entire course period.

My sincere thanks to Sri.Ashok Kumar.Bunga, Dy.General Manager, Human Resources, ONGC, Rajahmundry for giving me an opportunity to do my project work in ONGC, Rajahmundry.

I am extremely grateful to Sri.M.Ganeshan, Manager (HR)-IR, ONGC, Rajahmundry, for guiding me all through the project in spite of his busy schedule.

My heart felt thanks to Sri.B.Ravi kanth, Sr. Asst. Professor, Department of Management Studies, Sri.Vasavi Engineering College, for his constant support and able guidance and Illuminating advices helped me in bringing out this project.

I also thank Sri.S.Krishna Murty, Asst. Professor, Department of Management studies, Sri.Vasavi Engineering College, for his constructive advices in doing this project.

Finally, I would like to thank all my family and classmates, for their support without whom this project would be a distant reality.

Page 4: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

DECLARATION

I hereby declare that this project work entitled “Leadership styles and Corporate Culture Preferences” is an original and bonafied work done by me. This project is being submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration at Sri Vasavi Engineering College, Pedatadepalli, Tadepalligudem.

The context of this report is based on the information collected by me during the project tenure at Oil and Natural Gas Corporation, Rajahmundry Asset, Rajahmundry.

Place:Date: (Sudeep Kumar.D)

Page 5: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

aStudy On

SUDEEP KUMAR.DIRSIPAM

Leadership styles & Corporate Culture preferences

Page 6: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

CONTENTS

I .INTRODUCTION ---------------- ---------------------------------------- 1 - 10

Brief about HRD climate in Indian organizations ………………….... Statement of the problem ………………………………………..….... Purpose of the Study ………………………………………………..... Objectives of the study ……………………………………………..… Scope of the study …………………………………………..…………..….. Limitations ………………………………………………………..….. Research methodology ……………………………………………..…

II.PROFILE OF THE STUDY -------------------------------------------------

Overview of the Industry …………………………………………….. Company profile ……………………………………………..……….

III.DATA ANALYSIS & INTERPRETATION ------------------------------

IV. FINDINGS & SUGGESTIONS ------------------------------------------

CONCLUSIONS ------------------------------------------------------------

SUMMARY ----------------------------------------------------------------

Scope for further research ……………………….......………………..

BIBILOGRAPHY -----------------------------------------------------------

QUESTIONNAIRE ---------------------------------------------------------

LIST OF TABLES

Page 7: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table no Name of the Table Page no

1Table Showing HRD components, Applications & contexts

2Table Showing Man power summary of Rajahmundry asset

3 Table Showing Facilitating leadership style4 Table Showing Delegating leadership style5 Table Showing Coaching leadership style6 Table Showing Directing leadership style7 Table Showing Response culture8 Table Showing Relationship culture9 Table Showing Performance culture

10 Table Showing Control culture

11Table Showing Corporate culture preferences for facilitating leadership

12Table Showing Corporate culture preferences for Delegating leadership

13Table Showing Corporate culture preferences for Coaching leadership

14Table Showing Corporate culture preferences for Directing leadership

15Table Showing Distribution table for leadership styles and corporate culture preferences

16

Table Showing Distribution of Leadership style scores between Graduates and Post Graduates employees in ONGC

17 Table Showing Expected values for leadership styles

18Table Showing Table showing Calculation of Chi-Square for leadership styles

19

Table Showing Distribution of Corporate culture preference scores between Graduates and Post Graduates employees

20Table Showing Expected values for Corporate culture preferences

21Table showing Calculation of Chi-Square for Corporate culture preferences

LIST OF GRAPHS

Page 8: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph no Name of the Graph Page no1 Graph showing facilitating leadership2 Graph showing Delegating leadership3 Graph showing Coaching leadership4 Graph showing Directing leadership5 Graph showing Response culture6 Graph showing Relationship culture7 Graph showing Performance culture8 Graph showing Control culture

9Graph showing Corporate culture preferences for

facilitating leadership

10Graph showing Corporate culture preferences for

Delegating leadership

11Graph showing Corporate culture preferences for

Coaching leadership

12Graph showing Corporate culture preferences for

Directing leadership

Page 9: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The logo projects the new corporate image of ONGC as a multinational company and a leader in the oil and gas business.The colours of the Sun and Earth will reflect from Vasudhara the main symbol of the ONGC Logo and depict the fifty year transformation of the company from a directorate to a total energy company. The changeover to a new logo symbolizes the glowing future of the company where a new work culture, competitive spirit and a sense of modernity prevails in every area.The Vasudhara symbol (the name of the first well on Ankleshwar field, given by Pandit Jawaharlal Nehru on May 14, 1960), depicts the image of a flowing well, (Vasudhara -flow of wealth), which is vibrant, full of life and active all the time. In the existing logo, the "Vasudhara" symbol was blocked with a semi-circle on the top, thus restricting the flow. This

Page 10: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

restriction has been removed so that the flow lines are open representing flow of wealth and bounty.

Chapter-1

INTRODUCTION

Page 11: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

BR IEF ABOUTBR IEF ABOUT

HRD CL IMATE INHRD CL IMATE IN

IND IANIND IAN

Page 12: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

ORGAN IZAT IONSORGAN IZAT IONS

Human Resources Development is a framework for the expansion of human capital

within an organization. Human Resources Development is a combination of Training

and Education that ensures the continual improvement and growth of both the

individual and the organization.

Human Resource Development (HRD) is the framework for helping employee’s

develop their personal and organizational skills, knowledge, and abilities. HRD includes

such opportunities as employee training, employee career development, performance

management and development, coaching, mentoring, succession planning, key

employee identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing the most

superior workforce so that the organization and individual employees can accomplish

their work goals in service to customers.

HRD is the process of helping people to acquire competencies. In an organizational

context HRD “…is a process of by which the employees of an organization are helped

in a continuous and planned way to:

Acquire or sharpen capabilities required to perform various functions associated

with their present or expected future roles.

Develop their general capabilities as individuals and discover and exploit their

inner potential for their own and/or organizational development purposes

Page 13: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Develop an organizational culture in which supervisor-subordinate relationships

team work, and collaboration among sub-units are strong and contribute to the

professional well-being, motivation, and pride of employees.”

HRD process is facilitated by mechanisms like performance appraisal, training,

organizational development, feedback and counseling, career development,

potential development, job rotation, and rewards.

Human Resources Development is the medium that drives the process between training

and learning. HRD is not a defined object, but a series of organized processes, “with a

specific learning objective” (Nadler, 1984), HRD is the structure that allows for

individual development, potentially satisfying the organization's goals. The

development of the individual will benefit both the individual and the organization. The

HRD framework views employees, as an asset to the enterprise whose value will be

enhanced by development, “Its primary focus is on growth and employee development,

it emphasizes developing individual potential and skills” (Elwood, Holton and Trott

1996). A successful HRD program will prepare the individual to undertake a higher

level of work, “organized learning over a given period of time, to provide the possibility

of performance change” (Nadler 1984).

Human Resources Development can be defined simply as developing the most

important section of any business its human resource by, “attaining or upgrading the

skills and attitudes of employees at all levels in order to maximize the effectiveness of

the enterprise” (Kelly 2001). The people within an organization are its human resource.

HRD from a business perspective is not entirely focused on the individual’s growth and

development, “development occurs to enhance the organization's value, not solely for

individual improvement. Individual education and development is a tool and a means to

an end, not the end goal itself”.

The term Human resource development has been in popular use for over two decades

although it is a relatively new area of management practice an inquiry. In common with

Page 14: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

other general management practices, it is set against a background of turbulence and

change in organizational life, changes in business environments, work processes and

organizational cultures, with drive a need for successful change management strategies.

HRD is a process of developing und unleashing expertise for the purpose of improving

individual, team, work process, and organizational system performance.

An overview of HRD Practices: Trends

The centre for HRD at XLRI, Jamshedpur surveyed the practices of 53 public and

private sector organizations (Rao and Abraham1985). From this survey

1. About 32% of them had a formally stated policy focusing on HRD. Another

59% did not have a formally stated HRD policy byut claimed to emphasize it. It

is only 9% of organizations that there was no formally or informally known

HRD policy.

2. About 89% of the organizations surveyed had personnel policies that emphasize

continuous development of their employees.

3. In 30% of these organizations there is a separate HRD department and another

38% of them the HRD function is a part of the personnel function with specially

designated persons to look after it.

4. About 26% of the organizations reported to have fully development oriented

performance appraisal systems and another 62% reported to have appraisals that

have development as one of the main objectives.

5. Some form of identification of tasks and targets jointly by the appraiser and

appraise, performance review discussions to help appraise recognize his

strengths and weaknesses, appraisal feedback to appraise for improvement, self-

appraisal, identification of development needs, potential appraisal, and

Page 15: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

identification of factors affecting performance seem to characterize about 70%

of the appraisal systems.

6. About 55% of them had a definite training policy. For example, one of the

organizations surveyed had a policy that all the executives should be trained in

all areas of general management. In 64% of them there is a separate training

department.

7. Fifty percent of the organizations reported that they have someone to look after

OD activities although 44% of them only had undertaken some OD activity or

the other by the time of the survey. In most of these organizations the OD

activity was focused on team building and role clarity exercises. About 36% of

them reported using OD for developing a work organization, 26% for

interpersonal sensitivity and personal growth and 15% on stress management.

8. About 80% of the organizations required their executives to counsel their

subordinates at least once-a-year although a large number of them encourage

more frequent counseling sessions.

9. In some of these organizations the top management’s commitment, supportive

personnel policies, a positive organizational culture, training, and HRE systems

and staff are considered as facilitating HRD.

Table – 1HRD COMPONENTS, APPLICATIONS AND CONTEXTS

HUMAN RESOURCE DEVELOPMENT

Training and developmentOrganizational development

(PRIMARY COMPONENTS OF HRD)

Intellectual and social capital, Work force developmentHRM, organizational effectiveness,

Leadership & strategy, Work system design, Change mgt,Process Improvement, career development,

Quality improvement

(APPLICATIONS AND CONTEXTS OF HRD)

Page 16: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Source: Secondary data collected from

http://humanresources.about.com/od/glossaryh/f/hr_development.htm

LEADERSHIP Leadership is an abstract quality in a human being to induce others to do whatever they

are directed to do with zeal and confidence. It is a quality or ability of an individual to

persuade others to seek defined objectives enthusiastically. The leader is a force of the

organization that designs, executes, coordinates, and controls all the functions of an

organization, i.e. planning, executing, organizing, directing, and controlling.

Leadership inspires; creates confidence; helps the team mates to give their maximum

for the attainment of objectives. In a business organization, managers at all levels, by

whatever name called, are leaders because they all have subordinates whose efforts are

canalized in a definite direction. A leader gives a company the life which creates the

products and innovations that it sells. Effective leaders develop a team of effective

employees, subordinates or followers, and they together develop a more effective

organization.

Peter.F.Drucker considers leadership as a human characteristic which lifts a man’s

vision to higher sights; raises and builds his performance to higher standards, and builds

Page 17: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

man’s personality beyond its normal limits. Leadership is an important abstract quality

of the leader that sets apart a successful organization from an unsuccessful one.

Leadership is, therefore, regarded as the process of influencing the activities of an

individual towards goal achievement in a given situation.

This process has been explained by Hersey and Blanchard in the form of the following

equation:

L=f (l, f, s)

Leadership is a function of leader (l), the followers (f) and other situational variables(s).

LEADERSHIP DEFINITIONS

Leadership is Inter-Personal influence exercised in a situation and directed

through communication process, towards the attainment of a specialized goal

and goals.

---- Robert Tannehbaum

Leadership is that combination of qualities by the possession of which one able

to get something done by others, chiefly because, through his influence, they

become willing to do so.

---- Ordway Tead

Leadership is the ability to secure desirable actions from a group of followers

voluntarily without the use of coercion.

---- Alford and Beatty

Page 18: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Leadership is the ability to persuade others to seek defined objectives

enthusiastically. It is the human factor which binds a group together and

motivates it towards goals.

---- Davis

LEADERSHIP THEORIES

Different authorities and different researchers have viewed leadership differently. Some

emphasized the personal qualities of a leader, while other emphasized the behavior of

the leader. Still others viewed leadership as situational. Thus, the researches conducted

by behavior scientists have led to important theories of leadership. They are:

The Great man theory:The Great man theory:

This theory holds that leaders are born not made. Successful leaders, accordingly, are

said to possess certain qualities that separate them form the crowd”

Trait theories:Trait theories:

Trait is defined as relatively enduring quality of an individual. The trait approach seeks

to determine ‘what makes a successful leader’ from the leader’s own personal

characteristics. A review of various research studies has been presented by Stogdill.

According to him, various trait theories have suggested these traits in a successful

leader: (i) Physical and constitutional factors, (ii) intelligence, (iii) self-confidence, (iv)

sociability,(v)will,(vi) dominance and (vii) surgency. Trait theories were quite popular

between 1930 and 1950.

Behavioral theories:Behavioral theories:

Since the Trait theories failed to establish the relationship between traits and effective

leadership researchers turned their attention to the behavioral aspects of leaders as a

result there are different contributions from different researchers. Different leadership

behaviors identified are:

Page 19: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Initiating structure: It refers to the extent to which a leader defines his own as well as

the subordinate’s tasks and get there tasks accomplished on time.

1. Consideration: It refers to the extent to which the leader cares for his subordinates,

respects their ideas and feelings and establishes work relations characterized by

mutual trust and respect.

2. Employee-oriented leader: One who focuses on relationships.

3. Production-oriented leader: One who emphasizes tasks and goals, and getting work

done.

Contingency theories:Contingency theories:

Contingency theories involve the belief that leadership style is contingent upon the

particular situation and leaders should adapt their styles appropriate to the situation.

LEADERSHIP STYLES

1. Facilitating:1. Facilitating:

This is a more flexible leadership style in which the leader allows the team

members to be a part of almost every process starting from the role-delegation,

goal setting, problem solving as well as the evaluation and overview. The leader

acts more like a facilitator who inspires the team to reach their goal, by giving

them a nudge every now and then.

The leader tries to inculcate a sense of individual responsibility within every

individual and hence creates an effective team that can function with minimum

supervision.

Involve staff in making the decisions which will affect their work

Make staff feel free to ask questions and discuss important concerns.

Hold frequent staff meetings

Page 20: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Help staff locate and support their own developmental activities.

Listens to staff problems and concerns without criticizing or judging.

2. Delegating:2. Delegating:

The Delegating Leadership Style was first described by Paul Hersey and

Kenneth Blanchard in the late 1960s. The Delegating leader is willing to turn

over responsibility for decision making and problem solving to the followers. In

addition, the followers will decide if the leader will be involved in task

completion. The delegating leadership style is most appropriate when the

followers are comfortable taking responsibility and have the experience to

accomplish the necessary tasks.

Delegate broad responsibilities to staff and expect them to handle the details.

Expect staff to find and correct their own errors.

3. Coaching:3. Coaching:

This leadership style involves more mutual interaction of the leader and the

team. In this style, the leader sets the goals and identifies the problems; however

the leader consults with his team members and encourages a healthy dialogue to

facilitate exchange of ideas that can be beneficial for the team as a whole. The

leader usually arrives at the decisions after having consulted the team members.

This style of leadership displays more respect for individual opinions since the

leader is more considerate towards the team members.

The leader tends to encourage and appreciate the efforts of his team and

constantly provides encouragement for the team by inculcating a sense of team

spirit. The leader evaluates the performance of the leaders

Represents management’s position in a convincing manner

Page 21: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Try to motivate with monetary and non-monetary rewards

Sell staff in their won ability to do the job

Praise staff for their good work

Provide staff with a lot of feedback on how they are doing

4. Directing:4. Directing:

The Directing Leadership Style was first described by Paul Hersey and Kenneth

Blanchard in the late 1960s.  The Directing leader clearly provides specific

instructions, defines the roles and tasks of the 'follower', and closely supervises

task accomplishment.  Decisions are made by the leader and announced to the

followers, so communication style is largely one-way.

The directing leadership style is most appropriate when the followers are

inexperienced.  For example when there is a large flow of new personnel into

the organization, the directing leader should be very explicit in directing

subordinates.

Provide detailed instructions

Give staff specific goals and objectives

Check frequently with staff to keep them on track

Demonstrate the steps involved in doing the job

CORPORATE CULTURE Corporate culture is the total sum of the values, customs, traditions, and meanings that

make a company unique. Corporate culture is often called "the character of an

Page 22: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

organization", since it embodies the vision of the company’s founders. The values of a

corporate culture influence the ethical standards within a corporation, as well as

managerial behavior.

One of the principle problems in studying organizational culture stems from the

ontological status of the concept itself (Jones, 1983). Organizational researchers have

utilized a wide variety of culture definitions, but most empirical work has centered on

the view of culture as an enduring, autonomous phenomenon that can be isolated for

analysis and inter-organization comparison (Alexander, 1990). The intricate and

complex nature of OC has led to differences and controversies about the definition,

dimensions, measurement (Cameron and Quinn, 1999) and the context of organizational

culture. However, there is some consensus that organizational culture is holistic,

historically determined, and socially constructed, and involves beliefs and behavior,

exists at a variety of levels, and manifests itself in a wide range of features of

organizational life (Hofstede, Neuijen, Ohayv, & Sanders, 1990; Pettigrew, 1990).

Culture is expressed and transmitted through artifacts, stories, myths and symbols

(Martin, 1982; Siehl and Martin, 1981; Wilkins, 1980; Pettigrew, 1979). Underlying

these symbolic vehicles are patterns of basic assumptions (Schien, 1981, 1983; Dyer,

1982); a set of shared understandings, interpretations or perspectives (Van Maanen,

1983; Louis, 1983) and expectations (Schwartz, Davis, 1981).

Broadly, two schools of thought exist about organizational culture whether it represents

something an organization ‘is’ or ‘has’. Accordingly, researchers have analyzed the

concept of OC, both as a root metaphor, i.e. organizations as expressive forms, and

manifestations of human consciousness (Cameron 1999; Smircich, 1983); and as an

attribute, i.e. possessed by an organization and observable; and even as property

(Linstead, 2001). This is because some researchers are concerned by what appears to

them to be more fundamental issues of meaning and the processes by which

organizational life is possible which is in line with the view that an organization ‘is’

culture; while others give high priority to the principles of prediction, generalizability,

causality, and control drawing from the view that an organization ‘has’ culture

Page 23: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

(Smircich, 1983). Both approaches share the conception of organizations as organisms;

existing within an environment that presents imperatives for behavior. However,

literature is less sanguine about the reciprocal evolution of culture through behavior.

Further, culture has been generally accepted to be a phenomenon which is enduring and

relatively stable, which is why organizations across the world need external change

agents to affect the cultural change intervention.

Senior management may try to determine a corporate culture. They may wish to impose

corporate values and standards of behavior that specifically reflect the objectives of the

organization. In addition, there will also be an extant internal culture within the

workforce. Work-groups within the organization have their own behavioral quirks and

interactions which, to an extent, affect the whole system. Roger Harrison's four-culture

typology, and adapted by Charles Handy, suggests that unlike organizational culture,

corporate culture can be 'imported'. Corporate culture is something that is very hard to

change and employees need time to get used to the new way of organizing. For

companies with a very strong and specific culture it will be even harder to change.

Corporate culture is the concept that organizations have to build upon to survive and

support themselves. The right corporate equation would be an optimal combination of

people and culture. It can make the difference between remarkable success and failure.

An ideal culture is change-adept and has an incredible ability to evolve and progress

with changing times.

Corporate culture is created naturally and automatically. Every time people come

together with a shared purpose, culture is created. This group of people could be a

family, neighborhood, project team, or company. Culture is automatically created out of

the combined thoughts, energies, and attitudes of the people in the group.

Corporate culture refers to the shared values, attitudes, standards, and beliefs that

characterize members of an organization and define its nature. Corporate culture is

rooted in an organization's goals, strategies, structure, and approaches to labor. As such,

it is an essential component in any business's ultimate success or failure. "[It] is an

Page 24: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

unwritten value-set that management communicates directly or indirectly that all

employees know and work under," stated John O'Malley in Birmingham Business

Journal. "It is the underlying soul and guiding force within an organization that creates

attitude alliance, or employee loyalty. A winning corporate culture is the environmental

keystone for maintaining the highest levels of employee satisfaction, customer loyalty,

and profitability."

Every company has a culture, though not every culture is beneficial in helping a

company reach its goals. A healthy corporate culture is one in which employees are

encouraged to work together to ensure the success of the overall business. Developing

and maintaining a healthy corporate culture can be particularly problematic for

entrepreneurs, as the authoritarian practices that helped establish a small business often

must be exchanged for participatory management strategies that allow it to grow.

The corporate culture energy field determines a company's dress code, work

environment, work hours, rules for getting ahead and getting promoted, how the

business world is viewed, what is valued, who is valued, and much more.

Every company or organizations has numerous corporate cultures. For example, the

marketing department and the engineering department may have very different

corporate cultures which are both influenced by the overall organizational corporate

culture. Many times these two sub-cultures clash.

Culture shows up in both visible and invisible ways. Some expressions of corporate

culture are easy to observe. You can see the dress code, work environment, perks, and

titles in a company. This is the surface layer of culture. These are only some of the

visible manifestations of a culture.

Surface Layer of Corporate Culture (Visible Expressions):

(i) Dress Code (ii) Work Environment (iii) Benefits

(iv) Perks (v) Conversations (vi) Work/Life

Page 25: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Balance

(vii) Titles & Job Descriptions

(viii) Organizational Structure

(ix) Relationships

The far more powerful aspects of corporate culture are invisible. The cultural core is

composed of the beliefs, values, standards, paradigms, worldviews, moods, internal

conversations, and private conversations of the people that are part of the group. This is

the foundation for all actions and decisions within a team, department, or organization.

Core Layer of Corporate Culture (Invisible Manifestations):

(i) Values (ii) Invisible Rules (iii) Moods and Emotions

(iv) Attitudes (v) Beliefs (vi) Worldviews

(vii) Standards (viii) Paradigms (ix) Assumptions

(x)Unconscious terpretations (xi) Private Conversations (with self or confidants)

Business leaders often assume that their company's vision, values, and strategic

priorities are synonymous with their company's culture. Unfortunately, too often, the

vision, values, and strategic priorities may only be words hanging on a plaque on the

wall.

Corporate culture is actually the container for the vision, mission and values. It is not

synonymous with them. In a thriving profitable company, employees will embody the

values, vision, and strategic priorities of their company.

Corporate Culture Preference Scale testing the following four cultures were examined;

1. Control Culture:1. Control Culture:

This culture values the role of senior executives to lead the organization. Its goal is to

keep everyone aligned and under control.

Page 26: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

2. Performance Culture:2. Performance Culture:

This culture values individual and organizational performance and strives for

effectiveness and efficiency.

3. Relationship Culture:3. Relationship Culture:

This culture values nurturing and well-being. It considers open communication,

fairness, teamwork, and sharing vital parts of organizational life.

4. Response Culture4. Response Culture:

This culture values its ability to keep in tune with the external environment, including

being competitive and realizing opportunities.

STATEMENT OF THE PROBLEM In the present days some of the Public sector companies are not

performing Vis –a -Vis to the corporate level, one of the reasons I

assumed might be Leadership style and difference in Corporate

Culture preferences among employees. This assumption provoked me

to take up this study.

PURPOSE OF THE STUDY

Page 27: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The purpose of the study is to understand the Leadership Styles and

Corporate Culture Preferences of the employees in ONGC.

OBJECTIVES OF THE STUDY 1. The primary objective of the study is to understand the dynamics

of Leadership Styles and Corporate Culture preferences of

employees in ONGC, Rajahmundry Asset.

2. To study specifically Leadership Styles of Graduates and Post

graduates in ONGC, Rajahmundry Asset.

3. To study specifically the Corporate Culture Preferences among

Graduates and Post Graduates in ONGC, Rajahmundry Asset.

4. To offer suggestions based on research findings and conclusions.

SCOPE OF THE STUDY The Scope of research is limited to ONGC, Rajahmundry asset. The

survey is conducted in the following departments only i)Human

resources, ii) Electrical, iii) Security, iv) Materials

management, v) Production, vi) Internal Audit, vii) Finance viii)

Vigilance ix) Logistics, x) Geology, xi) HSE

LIMITATIONS The study of the topic in the organization may have many limitations,

which may give inaccurate results. Some of these are;

Page 28: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The employees may respond in-correctly to the questionnaire

prepared.

The recorded data may have typo errors.

The findings may not represent the entire population.

The respondents may bias their opinions or average their

opinions

HYPOTHESIS STATEMENT 1. To find out whether there is any significant relationship between

Graduates and Post graduates in their leadership styles.

Null Hypothesis:

1.1. There is no significant relationship between Graduates and Post graduates in their leadership styles.

2. To find out whether there is any significant relationship between Graduates and Post graduates in their Corporate Culture preferences.

Null Hypothesis:

2.1. There is no significant relationship between Graduates and Post graduates in their Corporate Culture preferences.

Page 29: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY
Page 30: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

RESEARCHRESEARCH METHODOLOGYMETHODOLOGY

Data collection methods:The type of data that is used in the study is collected from different sources such as;

Primary data

Secondary data

Employees

Questionnaire

Primary data:Primary data:

The data is collected from the discussions with the concerned officers and staff of the

Organization.

Page 31: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Secondary data:Secondary data:

The secondary data is collected from the Published records (Human resource manual of

ONGC, Profile of Rajahmundry asset) and reports (Annual reports) of the company,

further magazines and the text books of Human resource management and from the

official website of the company and other internet sources. The secondary data which is

used is appropriately quoted on Bibliography.

Employees:Employees:

The data is collected from employees of ONGC, Rajahmundry.

Tools:Tools:

Leadership styles questionnaire by Paul Hersey and Kenneth Blanchard and Corporate

culture preference scale Questionnaire designed by Steven.L.McShane is used for

current study.

Sample:Data were collected from 185 employees of ONGC, Rajahmundry. The sample size

consists of employees from various departments. Employees who are having some

number of subordinates working under them are selected for the questionnaire

administration. Employees from Manager Level to Chief Manager Level are considered

for the survey in order to compare the survey results between Graduate and Post

Graduate employees.

Statistical tool (Chi – Square (χ2) :

The statistical tool used by me to analyze the project is Chi-square ( χ2 )

Page 32: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The Chi- square test is an important non-parametric known as a distribution-free

test. No rigid assumptions are necessary in regard to the type of population

distribution as is necessary for Normal Distribution except those stated above in

regard to the nature of sample observations and the nature of events to which

these observations are related.

It is not necessary to have the values of the parameters like the µ or σ of a

population distribution because it is based on the degree of freedom only.

This is simpler to understand as less Mathematical details are involved.

This can be used in simple ranking of values and, therefore, useful where data is

not exactly measured.

Chapter-2

Page 33: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

PROFILES IN THE STUDY

Page 34: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

OVERV IEW OF THEOVERV IEW OF THE

INDUSTRYINDUSTRY

Page 35: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Oil and gas industry is the most important sector in any economy since it caters to a

wide range of industries including petrochemicals, fertilizers, automobiles etc. In

current scenario this is one section in economy which is really hot and boiling sector

with crude oil at $146 per barrel and raring to cross $200 per barrel. This sector is

suddenly giving sleepless nights to all the major economies of the world. It is also

responsible for increase in inflation throughout the world.

The major oil consumers are US and China with India at sixth position the irony is that

none of these countries is major producer of oil so they have to rely on other countries

like OPEC, Russia for their needs. OPEC (organization of petroleum exporting

countries) has 11 member countries and they together account for 40% of total oil

production in the world and they have the market share of around 78% in potential

crude reserves. OPEC is the largest exporter of oil so it directly impacts the price of

crude oil in the market. The whole oil sector is divided in to two categories

Upstream – It involves exploration and production of crude oil with limited crude

reserves on the earth.

Downstream – It involves the refining and transportation of oil. The major companies

in this field are Shell, BP, and IOCL etc

The oil and gas sector in India presents a significant opportunity for investors and is

exhibited to demonstrate robust growth in line with the growth of the Indian economy.

The New Exploration Licensing Policy (NELP), conceived to address the increasing

demand supply gap of energy in India, has proved to be successful in attracting the

interest of both domestic and some foreign players. The success of Cairn India and

Reliance Industries Limited in their Indian operations has underscored this. Other

segments such as Refining, LNG and Gas Distribution etc. are also seeing some action.

India is now surplus in refining capacity and aims to establish itself as a refining hub.

Page 36: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The Petroleum and Natural Gas Regulatory Board aims to make available Piped Natural

Gas (PNG) and Compressed Natural Gas (CNG) in new cities across the country,

besides facilitating the construction of infrastructure to transport natural gas to demand

centers. The lack of available supplies has so far hindered the growth of this segment. In

addition, some gas-based power plants have been operating at low load factors, owing

to the shortage of fuel. The increased availability of hydrocarbons from domestic

sources is thus perceived as necessary to sustain the rapid growth of the Indian

economy.

Two major events last year, the commencement of production of natural gas from

Reliance Industries Ltd's (RIL), Krishna Godavari (KG) fields and the scheduled

commencement of production of crude oil from Cairn India Ltd's fields later this year

have provided a major boost to the domestic oil and gas sector in India and have meant

that upstream activities have received major attention over the past years.

Given India's targeted GDP growth, India's fuel needs are likely to expand at a

substantial rate. India's per-capita consumption of energy and electricity is well below

that of industrialized nations and the word average, meaning that there is scope for rapid

expansion. At the same time, India already imports over 70 percent of its crude oil

requirements, with its oil import bill being close to USD 90 billion in 2008-09.

Given this context, particularly the high import dependence, the New Exploration

Licensing Policy (NELP) was envisaged in 1997 (and operationalized in 1999) by the

MoPNG, as part of its Hydrocarbon Vision 2025, a landmark 25-year planning

document.

Page 37: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Apart from this,

India is Ninth largest crude oil importer in the world.

India ranks sixth in refining capacity in the world with capacity at 2.5 million

barrels of oil per day which is 3 per cent of the world’s refining capacity.

India met 75 per cent of its crude oil demand through imports. The domestic

production of crude oil has been in the range of 32-34 MMT over the past few

years. About 60 per cent of it’s crude imports are from the Middle East.

India has 26 sedimentary basins with an area of 3.14 million square km and

Prognosticated reserves of 28 billion tonne of oil equivalent of gas. The Country

is relatively unexplored with only 18 per cent of area extensively explored Only

25 per cent of the prognosticated reserves have been established till date.

Post 2000, India witnessed some world class discoveries. RIL struck gas in the

offshore Krishna Godavari (KG) Basin on the East coast of India with estimated

reserves of 14 tcf in 2002 (world’s biggest gas discovery of 2002) and Cairn

Energy Plc. discovered oil onshore in Rajasthan (Western region of India) in

2004 with estimated production capability of 100000 barrels per day (4.9

MMTPA).

The national oil companies (NOCs), Oil & Natural Gas Corporation Ltd.

(ONGC) and Oil India Ltd. (OIL) dominate upstream segment with 80 per cent

contribution of oil & natural gas production of India. Other major players of this

segment are RIL, British Gas, Cairn Energy and Niko Resources.

India has a total of 18 refineries with Indian Oil (Indian Oil Corporation Ltd.)

currently owning the maximum refining capacity. Besides being the largest

refinery in India in terms of refining capacity, RIL’s Jamnagar refinery is the

biggest grassroots refinery in the world and is the third largest in the world.

Page 38: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Finally the major players in Indian oil and gas Industry are:

Bharat Petroleum Corporation Limited

Chennai Petroleum Corporation Limited

Gas Authority of India Limited

Hindustan Petroleum Corporation Limited

Indian Oil Corporation Limited

Oil and Natural Gas Corporation Limited

Reliance Petroleum Limited

Page 39: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

COMPANYCOMPANY

PROF I LEPROF I LE

Page 40: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Oil and Natural Gas Corporation Limited (ONGC) (incorporated on 23 June 1993)

is an Indian public sector petroleum company. It is a Fortune Global 500 company

ranked 152nd, and contributes 77% of India's crude oil production and 81% of India's

natural gas production. It is the highest profit making corporation in India. It was set up

as a commission on 14 August 1956. Indian government holds 74.14% equity stake in

this company.

ONGC is one of Asia's largest and most active companies involved in exploration and

production of oil. It is involved in exploring for and exploiting hydrocarbons in 26

sedimentary basins of India. It produces about 30% of India's crude oil requirement. It

owns and operates more than 11,000 kilometers of pipelines in India. Until recently

(March 2007) it was the largest company in terms of market cap in India.

HistoryIn August 1960, the Oil and Natural Gas Commission was formed. Raised from mere

Directorate status to Commission, it had enhanced powers. In 1959, these powers were

further enhanced by converting the commission into a statutory body by an Act of

Indian Parliament.

1960-2007

Since its foundation stone was laid, ONGC is transforming India’s view towards Oil

and Natural Gas by emulating the country’s limited upstream capabilities into a large

viable playing field. ONGC, since 1959, has made its presence noted in most parts of

India and in overseas territories. ONGC found new resources in Assam and also

established the new oil province in Cambay basin (Gujarat). In 1970 with the discovery

of Bombay High (now known as Mumbai High), ONGC went offshore. With this

discovery and subsequent discovery of huge oil fields in the Western offshore, a total of

5 billion tones of hydrocarbon present in the country was discovered. The most

Page 41: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

important contribution of ONGC, however, is its self-reliance and development of core

competence in exploration and production activities at a globally competitive level.

Post-1990

Post 1990, the liberalized economic policy was brought into effect; subsequently partial

disinvestments of government equity in Public Sector Undertakings were sought. As a

result, ONGC was re-organized as a limited company and after conversion of business

of the erstwhile Oil & Natural Gas Commission to that of Oil and Natural Gas

Corporation Ltd in 1993, 2 percent of shares through competitive bidding were

disinvested. Further expansion of equity was done by 2 percent share offering to ONGC

employees. Another big leap was taken in March 1999, when ONGC, Indian Oil

Corporation (IOC) and Gas Authority of India Ltd.(GAIL) agreed to have cross holding

in each other’s stock. Consequently the Government sold off 10 per cent of its share

holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding

in ONGC came down to 84.11 per cent.

In 2002-03 ONGC took over Mangalore Refinery and Petrochemicals Limited (MRPL)

from Birla Group and announced its entrance into retailing business. ONGC also went

to global fields through its subsidiary, ONGC Videsh Ltd. (OVL).

In 2009, ONGC discovered a massive oil field, with up to 1 billion barrel reserves of

heavy crude, in the Persian Gulf off the coast of Iran. Additionally, ONGC also signed a

deal with Iran to invest US$3 billion to extract 1.1 billion cubic feet of natural gas from

the Farzad B gas field.

VISIONTo be a world class Oil & Gas Company Integrated in energy business with dominant

Indian leadership and global presence.

Page 42: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

MISSION

WORLD CLASS

Dedicated to excellence by leveraging competitive advantages in R&D and

technology with involved people.

Imbibe high standards of business ethics and organizational values.

Abiding commitment to health, safety and environment to enrich quality of

community life.

Foster a culture of trust, openness and mutual concern to make working a

stimulating & challenging experience for our people.

Strive for customer delight through quality products and services.

INTEGRATED IN ENERGY BUSINESS

Focus on domestic and international Oil & Gas exploration and production

business opportunities.

Provide value linkages in other sectors of energy business.

Create growth opportunities and maximize shareholder value.

DOMINANT INDIAN LEADERSHIP

Retain dominant position in Indian Petroleum sector and enhance India’s energy

availability.

HR VisionTo attain Organizational excellence by developing and inspiring, the true potential

of company’s human capital and providing opportunities for growth, well being and

enrichment.

Page 43: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

HR MissionTo create a value and knowledge based organization by inculcating a culture of

learning, innovation and team working and aligning business priorities with

aspiration of employees leading to a development of an empowered, responsive and

competent human capital.

HR Objectives

To develop and sustain core values.

To develop business leaders for tomorrow.

To provide job contentment through empowerment, accountability and

responsibility.

To build and upgrade competencies through virtual learning, opportunities for

growth and providing challenges in the job.

To foster a climate of creativity, innovation and enthusiasm.

To enhance the quality of life of employees and their family.

To inculcate higher understanding of ‘Service’ to a greater cause.

Oil and Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company,

having a market share of above 80% in India's Crude Oil and Natural Gas Exploration

and Production.

ONGC is committed to its vision of an energy secure nation and the ONGCians work

tirelessly to make this vision a reality, Team ONGC toils day and night in difficult

situations and rough terrain, often putting their very lives in jeopardy. Dense forests

and inhospitable climate fail to discourage the dedicated ‘Energy soldiers’ of the

country. Whether on Rigs or on oil platforms or in the fields, these courageous people

are the backbone of the economic prosperity of the nation. Let us salute all ONGCians

who risk their lifetime and again and commit themselves to serve the nation.

Page 44: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Performance: 2008-2009 Highest level of Initial In-place hydrocarbons volume in last two decades from

domestic field;

Highest accretion of Ultimate reserves in last 18 years from domestic fields;

Turn over and Net Worth recorded new highs;

The highest profit making company in the country, in Private and Public sector;

The Net Profit of Rs. 16,126 crore, marginally lower than the previous year

(16,701 crore), was despite supporting downstream oil PSU’s with the highest

ever of subsidy discount of Rs. 28,225 crore. (Against Rs.22, 001 crore in

FY’08).

Corporate recognitions and Awards

Global:

ONGC is the only company form India to figure in the elite list of 40 companies,

out of Fortune Global 500 companies list of 2009 based on “Return on

Revenue” and “Return on Assets.”

ONGC occupies 152nd rank in the Forbes Global 2000 list 2009 of the world’s

biggest companies 46 notches higher than last year’s rank of 198 th, based on the

sales, profit, assets and market capitalization.

ONGC has been ranked as the most valuable Indian PSU based on market

capitalization.

ONCG has been ranked as No.1 Blue Chip company of India in the Finance

Asia 100 List of 2009 with highest aggregate net profit for the period 2006 –

2008; No.10 among Asia companies.

ONGC - 3rd Largest E & P Company in the world

Page 45: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Ranked 23rd among the Global Publicly – listed energy companies as per “PFC

Energy 50” list.

National:

Most valuable Indian PSU – “Business Today”

Ranked 3rd in the Business World Real 500 survey list of the Indian companies

on the sum of total assets and total income of a company

Secured three out of eight Petrofed Awards 2008, instituted by Petroleum

Federation on India for performance during 2007-08

“Enterprise Excellence Award” in recognition of excellent corporate

performance instituted by Indian Institution of Industrial Engineers – May 2008

Awarded the first Dalal street Investment Journal(DSIJ) PSU Award 2009 for

the category Highest Profit making Enterprise for the FY’2007-08

(March – 2009)

ONGC and MRPL have won six “Oil industry safety Awards” of the year

2008-09

ONGC has been conferred with the Golden Peacock award for Corporate

Governance by the World council of corporate Governance, London- October

‘09

ONGC bagged the coveted Gold Award in the Oil and Gas category of the

“Dainik Bhaskar India Pride” Awards for Excellence in PSU’s –

10 October 2009.

Page 46: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

RA JAHMUNDRYRA JAHMUNDRY

Page 47: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

ASSETASSET

Rajahmundry Asset and KG Basin, erstwhile KG Project, is a major work centre in

Southern Region of ONGC. The KG basin covering an area of 28000 Sq. Km on land

and 24000 Sq.Km offshore is unique on in the sense that the hydrocarbons are

discovered in the geologically oldest (250 Million years) to youngest (5 Million years)

sediments and also from both on land and offshore parts of the basin. The basin has

unconventional reservoirs of fractured volcanic rocks like basalt in Razole,

Mummidivaram and of Limestones in Kaikalur. Its Geological and Geophysical surveys

were initiated in the year 1959 and 1960 respectively.

First exploratory drilling commenced in the basin at Narsapur – 1 in 1979. First off

shore well G-1 -1 was drilled in 1980 at a water depth of 250m produced oil. It has

deepest onland well at Bhavadevarapalli – 1 (5001m) and deepest offshore well at GS-

11-1 (4611m). Maximum pressure gradient recorded at 2.1 MWE in Tatipaka – 1 with

3450 m and BHT recorded at 1870 in Amalapuram – 1. Oil production and on land

commercial production of gas started in 1988.

The following are the salient features of the Rajahmundry Asset.

Rajahmundry Asset is operating and handling production both in onshore as

well as in Offshore.

Rajahmundry Asset is the only Asset in ONGC that manages operations in both

upstream and downstream sector.

Tatipaka Mini Refinery (ISO14001) is the first of its kind in ONGC, which is

operating in this Asset.

During the last five years, oil and gas production has increased by 4.5 times and

2 times respectively.

Page 48: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Fourteen production installations have been identified for obtaining ISO 14001

certification during the year till now.

Rajahmundry Asset is maintaining BS&W<0.07% against a target of 1%.

Reconciliation losses are brought down to less than 1%.

Achieved record VAP production 92080MT during 05-06 against a target of

80000 MT.

QHSE certification has been obtained for all rigs. E-1400-17 Rig is the best in

Performance in similar type of rigs for entire ONGC.

Received Greentech Safety Excellence Award for Tatipaka Refinery.

Wings of the Work center:Wings of the Work center:

1. Administrative Office - Godavari Bhavan, Rajahmundry.

2. Dowleshwaram Workshop (6 Km).

3. Narsapur Sub-office (90 Km).

4. Kakinada Offshore Supply Base (60 Km).

5. Vizag Liaison Office (201 Km).

6. Hyderabad Marketing Division (501 Km).

7. Tatipaka Refinery (90 Km).

8. Field – 7 Rigs and 19 Installations.

Page 49: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table - 2

MAN POWER SUMMARY OF RAJAHMUNDRY ASSET

EXECUTIVE CATEGORY

CLASS – IE1 197E2 179E3 122E4 244E5 217E6 43E7 9E8 1E9 2TOTAL 1014

CLASS – IICLASS – II 154TOTAL 154

UNIONISED CATEGORY OF EMPLOYEES

CLASS – IIIA1 1A2 12A3 3A4 31TOTAL(ASSISTANT) 47

S1 37S2 19S3 5TOTAL (SUPERVISORY) 61

CLASS – IVW1 25

Page 50: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

(as – on – date)

Source: Primary data collected from external guide

W2 129W3 1W4 1W5 7W6 5TOTAL 168

TOTAL(C1+C2+C3+C4) 1444

DEPARTMENTSThe Departments in the ONGC are acknowledged as services. There are mainly seven

services in the Rajahmundry asset. They are again divided into different sub –services

based on their work.

They are:

1. Engineering services

2. Drilling services

3. Logging services

4. Well services

5. Support services

6. Surface team

7. Sub – surface team

Page 51: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Chapter-3

DATA ANALYSIS

&

Page 52: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

INTERPRETATION

Initially, the study is conducted to understand how many of the sample employees

belong to different leadership styles. For the purpose of the study, a leadership

questionnaire is administered to identify the leadership styles among sample employees;

Upon further analysis the following information is analyzed from the questionnaire;

Page 53: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 1

Page 54: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY
Page 55: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 2

Page 56: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 3

Page 57: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph - 4

Page 58: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

In the second phase of questionnaire administration, the respondents were given a

questionnaire to understand from them their preferences of corporate culture. For the

purpose of the study,

Upon further analysis the following information is analyzed from the questionnaire; the following are the results that were observed;

Graph – 5

Page 59: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table - 8

Page 60: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 6

Page 61: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 7

Page 62: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table - 10

Page 63: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 8

Page 64: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table - 11

Page 65: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Corporate culture preferences for Facilitating Leadership:

Interpretation:

From the above table it is implicit that out of 185 respondents, 25% of them

prefer Relationship Culture and 75% of them prefer Response culture under

facilitating leadership.

Graph – 9

Page 66: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY
Page 67: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table - 12

Corporate culture preferences for Delegating Leadership

Interpretation:

From the above table it is implicit that out of 185 respondents, 70% of them

prefer Response Culture, 20% of them prefer Relationship culture and 10% of

them prefer Performance culture under Delegating leadership.

Page 68: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 10

Page 69: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table - 13

Corporate culture preferences for Coaching Leadership Source: Primary data collected through questionnaire

Interpretation:

From the above table it is implicit that out of 185 respondents, 50% of them

prefer Relationship Culture, 22% of them prefer Responsive culture and 14% of

them prefer Performance culture and 14% of them prefer Control culture under

Coaching leadership.

Page 70: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Graph – 11

Page 71: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Table – 14

Page 72: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Corporate culture preferences for Directing Leader

Interpretation:

From the above table it is implicit that out of 185 respondents, 56% of them

prefer Relationship Culture, 22% of them prefer Control culture and 11% of

them prefer Performance culture and 11% of them prefer Performance culture

under Directing leadership

Graph – 12

Page 73: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY
Page 74: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Chapter-4

FINDINGS

&

SUGGESTIONS

Page 75: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Objective OneObjective One

The primary objective of the study is to understand the dynamics of leadership styles

and Corporate Culture preferences of employees in ONGC, Rajahmundry Asset.

A total of 185 employees were surveyed. Findings and analysis of the data are

presented follows. Results are arranged and presented by research objective and include

objectives.

Table – 15

Distribution table of Leadership styles and Corporate culture preferences

Objective twoObjective two

Objective two of the study is to study specifically leadership styles of Graduates and

Post graduates in ONGC, Rajahmundry Asset as measured by the questionnaire

designed by Paul Hersey and Kenneth Blanchard. Scores for all respondents were

calculated on their response sheet. Table.18 illustrates the distribution of respondents.

Hypothesis statement:

There is no significant relationship between Graduates and Post graduates in their

leadership styles.

Page 76: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The following data is analyzed to find “The significant relationship between Graduates

and Post Graduates” for the above mentioned Leadership styles.

Table – 16

Findings: The Chi-Square distribution for 3 degrees of freedom, the table value at 5%

level of significance is 7.815. The calculated value is 5.8659. As the calculated

value is less than the table value and hence null hypothesis is accepted.

It is interesting to find that Coaching leadership style is predominant in ONGC

employees.

Objective threeObjective three

Objective three of the study is to study specifically Corporate Culture preferences of

Graduates and Post graduates in ONGC, Rajahmundry Asset as measured by the

questionnaire designed by Steven.L.McShane. Scores for all respondents were

calculated on their response sheet. Table.21 illustrates the distribution of respondents.

Hypothesis statement:

There is no significant relationship between Graduates and Postgraduates in their

Corporate Culture preferences.

The following are the results that were analyzed with reference to find “The significant

relationship between Graduates and Post Graduates” for the above mentioned Corporate

Culture preferences.

Page 77: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

FINDINGS: The Chi-Square distribution for 3 degrees of freedom, the table value at 5%

level of significance is 7.815. The calculated value is 8.2351. As the calculated

value more than the table value; hence the null Hypothesis is rejected. This

means that there is a significant relationship that exists between the Corporate

Culture preferences among the Graduate and Post graduate employees of

ONGC, Rajahmundry.

It is interesting to find that that Relationship culture is predominant among all

Corporate Culture preferences.

SUGGESTIONS

The leadership style and Communication style must be congruent so as to

acquire the best output from the employees.

The Management has to further investigate whether the leadership style is

consistent to the company goals and objectives.

Is the existing or predominant corporate culture is consistent with the company

goals should further be investigated by the management.

Page 78: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

CONCLUSIONS

Page 79: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

CONCLUSIONS

The predominant leadership style that is being observed among ONGC –

Rajahmundry Asset employees is “COACHING LEADERSHIP STYLE”.

The predominant Corporate culture that is preferred by Employees in ONGC ,

Rajahmundry is “Relationship culture”

There is no significant relation between the leadership styles among the

Graduates and Post graduates in ONGC.

There is significant relation between the Corporate culture preferences among

the Graduates and Post graduates in ONGC, Rajahmundry

Page 80: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

SUMMARY

Page 81: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

As a part of my course curriculum, I underwent summer project in ONGC Rajahmundry asset, Rajahmundry. The Purpose of doing the project is to understand Leadership styles and corporate culture preferences of ONGC employees. In order to achieve the above purpose three objectives were designed:

The primary objective of the study is to understand the dynamics of leadership

styles and Corporate Culture preferences of employees in ONGC, Rajahmundry

Asset.

To study specifically leadership styles of Graduates and Post graduates in ONGC, Rajahmundry Asset.

To study specifically the Corporate Culture preferences among Graduates and Post Graduates in ONGC, Rajahmundry Asset.

To offer suggestions based on research findings and conclusions.

The research finding offered gives to conclude that Coaching leadership style is pre-dominant in ONGC, Rajahmundry asset. Also, Relationship culture is most preferred by employees of ONGC, Rajahmundry asset.

Basing on the above research findings the following suggestions were offered:

The leadership style and Communication style must be congruent so as to acquire the best output from employees.

The Management has to further investigate whether the leadership style is consistent to the company goals and objectives.

Is the existing or predominant corporate culture is consistent with the company goals should further be investigated by the management.

The conclusions that are drawn from the above study are:

Page 82: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

The predominant leadership style that is being observed among ONGC –

Rajahmundry Asset employees is “COACHING LEADERSHIP STYLE”.

The predominant Corporate Culture that is preferred by Employees in ONGC,

Rajahmundry is “Relationship culture.”

There is no significant relation between the leadership styles among the

Graduates and Post graduates in ONGC.

There is significant relation between the Corporate culture preferences among

the Employees in ONGC, Rajahmundry

Some learning points for me that are being observed from and while doing the project

are:

1. The Process and definite procedure to communicate with subordinates and

superiors.

2. The process of handling and maintaining relations with the employees.

3. The importance of being on time and doing every task in time.

4. The kind of response that needs to be given in time of need when there is

urgency.

5. The systematic procedures that followed considering the protocol and position

of the employee.

SCOPE FOR FURTHER RESEARCH

The present study is conducted in ONGC, Rajahmundry asset the results of the study cannot be conclusive of other Assets located at different parts of the country.

Similar research can be conducted at other assets to examine the Leadership styles& Corporate Culture preferences of the employees.

Page 83: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

Another study can also be conducted to understand the Impact of the corporate culture preferences of employees on leadership styles and vice versa.

Page 84: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

B IBL IOGRAPHYB IBL IOGRAPHY

1. Richard A. Swanson, Elwood F. Holton, Foundations of Human Resource Development, Book Published by Berrett – Koehler Publishers, 3-4

2. V.S.P.Rao, Management theory and Practice. Excel books. Leading, Chapter 6,182-183,187

3. C.Appa rao, K.Sivaramakrishna. Organizational Behavior, Excel books, Leadership Theories and styles, Chapter 14,264-271

4. L.M.Prasad. (1994). Principles & Practice of Management. Leadership, Leadership theories, Chapter 25. 582-587

5. Steven.L.McShane, Mary Ann Glinow, Radha sharma (2008), Organizational Behavior,Mc Graw Hill, 4th edition, Corporate culture preferences, Copyright2000Steven.L.McShane. 518.

6. Oil and Natural gas history, Profile, vision, Mission Retrieved on April 15, 2010

www.ongcindia.com

7. What Is Human Resource Development (HRD), By, About.com Guide.Retrieved on June 8, 2010, http://humanresources.about.com/od/glossaryh/f/hr_development.htm

8. Directing Leadership Style, Career dictionary, Retrieved on June 7.2010.http://www.money-zine.com/Definitions/Career-Dictionary/Directing-Leadership-Style/

9. Effective Leadership Styles An article that talks about effective leadership styles and the various characteristics associated with each leadership style. By Uttara Manohar, Retrieved on June 7, 2010. http://www.buzzle.com/articles/effective-leadership-styles.html

10. Want to work with me? The ideal corporate culture by BINDU SRIDHAR Retrieved on June 7,2010 http://www.thehindu.com/jobs/0401/2004011400341000.htm

Page 85: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

11. Definition of Corporate Culture By Debra Thorsen Retrieved on June 4, 2010 http://ezinearticles.com/?Definition-of-Corporate-Culture&id=99997

12. Indian Economy : Oil & Gas Industry in India, Retrieved on April 20 , 2010

http://www.iloveindia.com/economy-of-india/oil-gas-industry.html

13. Indian Oil & Gas Industry Retrieved on April 20, 2010. http://www.bharatbook.com/bookdetail.asp?bookid=5788&publisher

14. Petrochemical Industry, Retrieved on April 20, 2010.

http://business.mapsofindia.com/petrochemical/

15. Industry > Oil & Gas, Retrieved on April 20, 2010. http://www.ibef.org/industry/oilandgas.aspx

Page 86: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

QUEST IONNA IREQUEST IONNA IRE

SRI VASAVI ENGINEERING COLLEGE

(Affiliated to Jawaharlal Nehru Technological University, Kakinada)

DEPARTMENT OF MANAGEMENT STUDIES

A STUDY ON “Leadership Styles & Corporate culture preference”

With special reference to Oil &Natural Gas Corporation,

RAJAHMUNDRY

Dear respondents,

I am Sudeep Kumar, Pursing MBA 2nd Year from Sri Vasavi Engineering College, Tadepalligudem.

As a Part of the academic program I have to submit a project report in the specialization of HR. Therefore, I have selected a project “Leadership Styles & Corporate Culture Preferences” with special reference to ONGC.

Page 87: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

I request you to please spare your valuable time and respond to all the questions in the enclosed Questionnaire, your response will help me in bringing out a practical and meaningful report. The data furnished by you will be used for academic purpose only and strict secrecy will be maintained. I take this opportunity to thank you for your response.

SUDEEP KUMAR.D

Questionnaire

A STUDY ON “ Leadership Styles & Corporate culture preference”

With special reference to ONGC, RAJAHMUNDRY

Name: _______________________ Present Designation: _________________________

Department: _____________________ Qualification: ___________________________

Total experience: _____________________ Experience in ONGC:________________

Gender: ______________________________

Please use the following marking scale:

1. to almost no extent2. to a slight extent3. to a moderate extent4. to a great extent5. to a very great extent

Page 88: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

1 I check staff’s work on a regular basis to assess their progress and learning.

1 2 3 4 5

2I hold periodic meetings to show support for company policy and mission.

1 2 3 4 5

3I appoint staff into task groups to action policies affecting them.

1 2 3 4 5

4I provide staff with clear responsibilities and allow them to decide how to accomplish them.

1 2 3 4 5

5I make sure staff are aware of, and understand, all company policies and procedures.

1 2 3 4 5

6I 88rganizat staff’s achievements with encouragement and support.

1 2 3 4 5

7I discuss any organisational or policy changes with staff prior to taking action.

1 2 3 4 5

8I discuss the 88rganization’s strategic mission with staff.

1 2 3 4 5

9I demonstrate each Staff the task involved in doing the job.

1 2 3 4 5

10 I meet staff regularly to discuss their needs. 1 2 3 4 5

11I avoid making judgments or premature evaluation of ideas or suggestions.

1 2 3 4 5

12I ask staff to think ahead and develop long-term plans for their areas.

1 2 3 4 5

13I set down performance standards for each aspect of my staff’s job.

1 2 3 4 5

14I explain the benefits of achieving their work goals to staff.

1 2 3 4 5

15I explain the benefits of achieving their work goals to staff.

1 2 3 4 5

16I emphasize the importance of quality and I allow my staff to establish the control standards.

1 2 3 4 5

17I have a system that staff report back to me after completing each step of their work.

1 2 3 4 5

18I hold regular meetings to discuss work status. 1 2 3 4 5

19I provide staff with the time and resources to pursue their own developmental objectives.

1 2 3 4 5

Page 89: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

20I expect staff to create their own goals and objectives and submit them to me in finished form.

1 2 3 4 5

21I try to assign work in small, easily controlled units.

1 2 3 4 5

22 I focus on opportunities and not problems. 1 2 3 4 5

23I avoid evaluating problems and concerns as they are discussed.

1 2 3 4 5

24

I ensure that information systems are timely and accurate and that information is fed directly to staff.

1 2 3 4 5

Source: Leadership styles questionnaire by Paul Hersey and Kenneth Blanchard

COPORATE CULTURE PREFERENCE SCALE

Please tick your choice

I would prefer to work in an Organization:

1) a. Where employees work well together in teams orb. That produces highly respected products

2) a. Where top management maintains a sense of order in the workplace orb. Where the organization listens to customers and responds quickly to their needs.

3) a. Where employees are treated fairly orb. Where employees continuously search for ways to work more efficiently

4) a. Where employees adapt quickly to new work requirements orb. Where corporate leaders work hard to keep employees happy

5) a. Where senior executives receive special benefits not available to other employees

Page 90: A STUDY ON LEADERSHIP STYLES AND COPORATE CULTURE PREFERENCES IN ONGC,RAJAHMUNDRY

orb. Where employees are proud when the organization achieves its performance goals

6) a. Where employees who perform the best get paid the most orb. Where senior executives are respected

7) a. Where everyone gets their jobs done like clockwork orb. That is on top of innovations in the industry

8) a. Where employees receive assistance to overcome any problems orb. Where employees abide by company rules

9) a. That is always experimenting with new ideas in the market place orb. That expects everyone to put in 110 percent for peak performance

10) a. That quickly benefits from market opportunities orb. Where employees are always kept informed about what’s happening in the organization.

11) a. That can quickly respond to competitive threats orb. Where most decisions are made by the top executives.

12) a. Where management keeps everything under control orb. Where employees care for each other.

Source: Copyright2000, Steven.L.Mcshane