A Relational Study on Leadership Support, Reward Allocation, Organisational Culture and Employee Work Effort

A Relational Study on Leadership
Support, Reward Allocation,
Organisational Culture and Employee
Work Effort In Context Of Opsonin
Pharma Limited In Bangladesh

1. INTERNSHIP
PRESENTATION
[Autumn-2006]
Presented by:
Md. Mostafizur Rahman
ID# 0220178
Presentation date:
December 14, 2006
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2. Title of Internship Report
A RELATIONAL STUDY ON LEADERSHIP
SUPPORT, REWARD ALLOCATION,
ORGANIZATION CULTURE, AND EMPLOYEE
WORK EFFORT IN CONTEXT OF OPSONIN
PHARMA LIMITED IN BANGLADESH
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3. ABOUT OPSONIN PHARMA
Opsonin Pharma Limited is one of the largest
Pharmaceutical manufacturing and marketing company
in Bangladesh. Established in 1996, Opsonin has been
active in this field for last 50 years and is currently
placed among the top line pharmaceutical company in
terms of turnover. Opsonin is an ISO certified company.
Over the years the company achieved excellent growth
in both revenue and market share and is widely
recognized for the quality products and services.
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4. PROBLEM STATEMENT
Leadership support, reward allocation, and organization
culture are very important to achieve the best
performance from employees. In most of the cases,
pharmaceutical companies are able to fulfill only one or
two of those.
Favorable leadership support from the superiors, an
effective reward policy, and good organization culture
can satisfy an employee. In the long run the company
becomes benefited.
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5. DEFINITIONS OF VARIABLES
 Leadership Support
Leadership support is defined as the degree of
consideration and support employees receive
from their supervisor (Netemeyer et al., 1997).
 Reward Allocation
Rewards refer to the intrinsic and extrinsic benefits
that workers receive from their jobs (Herzberg, 1996).
Rewards can be a reinforcement to continuously
motivate and increase commitment from workers to
be environmentally responsible.
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6. DEFINITIONS OF VARIABLES
 Organization Culture
Organization culture refers to the deep structure
of organizations, which is rooted in the values,
beliefs, and assumptions held by organizational
members (Denison, 1996).
 Employee Work Effort
Effort as the amount or expenditure of energy put
into a behavior or series of behaviors. Employees’
work effort is likely to positively influence their
job satisfaction (Locke et al., 1981).
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7. OPERATIONAL DEFINITIONS
Leadership Support defined by Netemyer
et al. (1997)
Reward Allocation defined by Netemyer
et al. (1997)
Organization Culture defined by Devenport
et al. (1998)
Employee Work Effort defined by Brown &
Leigh (1996)
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8. RESEARCH QUESTIONS
1)Is there a significant relationship between leadership
support and employee work effort in the context of
Opsonin Pharma Limited in Bangladesh?
2) Is there a significant relationship between reward
allocation and employee work effort in the context of
Opsonin Pharma Limited in Bangladesh?
3)Is there a significant relationship between
organization culture and employee work effort in the
context of Opsonin Pharma Limited in Bangladesh?
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9. RESEARCH HYPOTHESES
|1| There is a significant relationship between
leadership support and employee work effort in
context of Opsonin Pharma Limited in Bangladesh.
|2| There is a significant relationship between reward
allocation and employee work effort in context of
Opsonin Pharma Limited in Bangladesh.
|3| There is a significant relationship between
organization culture and employee work effort in
context of Opsonin Pharma Limited in Bangladesh.
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10. CONCEPTUAL FRAMEWORK
Leadership Support
Reward Allocation
Organization Culture
Employee Work Effort
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11. SAMPLING METHOD
The researcher used non-probability convenience
sampling technique and decided to gather data by
distribution questionnaires over 100 employees
whose are working in the Dhaka depot of Opsonin
Pharma Limited.
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12. SURVEY INSTRUMENT
The Psychometric Properties of the Scale items were assessed using
Cronbach’s Coefficient Alpha.
The questionnaire section consists of 15 questions. But one question
was eliminated from organization culture due to poor reliability. All
questions had 5-point likert scales ranging from 1 to 5.
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13. DATA ANALYSIS
 After collecting the data, Pearson’s correlational
matrix for the variables was prepared and the
researcher looked for significant correlations. The
researchers used descriptive, correlations, and
regressions to test the strength of associations
between the studied variables.
 The Statistical Package for Social Science (SPSS)
version 12.0 software was employed to analyze
the data collected from the actual survey.
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14. FINDINGS FROM
QUESTIONNAIRE
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15. RELIABILITY AND DESCRIPTIVE
STATISTICS OF THE INSTRUMENTS
Scale No. of Items Alpha Mean SD
Leadership Support 4 0.72 4.24 0.66
Reward Allocation 4 0.66 4.25 0.55
Organization Culture 3 0.65 4.33 0.58
Employee Work 4 0.70 4.42 0.50
Effort
n=100
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16. CORRELATION ANALYSIS
Variables Lead_Supp. Rew_Alloc. Org_Cul. Emp_Wo_Eff.
Leadership ___________ .29** .22* .59**
Support
Reward __________ .22* .49**
Allocation
Organization ___________ .26**
Culture
Employee __________
Work Effort
*p<.05, **p<0.1, ***p<0.001
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17. REGRESSION ANALYSIS
Stepwise Regression on Employee Work Effort
Variables B SEB β R
2
∆ R
2

Step 1 0.344
Leadership Support 0.440 0.061 0.5 87***
Step 2 0.456 0.112
Leadership Support 0.363 0.059 0.484***
Reward Allocation 0.315 0.071 0.349***
*p<.05, **p<0.1, ***p<0.001
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18. RECOMMENDATIONS
Leadership support is the key factor in improving the performance
level of employees. Therefore, the superiors need to show
cooperation, appreciation, and friendly attitude towards their
subordinates.
The result of this research show that reward allocation has a
significant effect on employees’ work activity. So, Opsonin should
ensure providing fair amounts of incentives or promotions to satisfy
the employees.
A Company’s sound and efficient organization culture can boost
employees’ work level. So, Opsonin should create a friendly, and fair
working environment for its employees.
Finally, Opsonin should focus on effective leadership support, fair
reward allocation, and a congenial organization culture to earn the
best efforts out of the employees.
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19. CONCLUSION
The researcher proves the relationship between
employee work effort (DV) and leadership
support, reward allocation, and organization
culture (IVs). This relationship provides
significant inside to enhance the quality of
employee work effort. An organization like
Opsonin can become a successful in ensuring
adequate employee work efforts if it pays
favorable attention to the above variables.
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20. Thank You For Your
Attention !!!
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