THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEES’ PERFORMANCE IN AN ORGANIZATION

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  • Name: THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEES’ PERFORMANCE IN AN ORGANIZATION
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ABSTRACT

The purpose of the study is to examine the impact of leadership style on employees’ performance. The research has reviewed the contributions of some authors on the research topic, this made up the literature review. The researcher also selected 7up Bottling Company, Ibadan as a case study. The sampled size used by the researcher for the study was 50. 50 questionnaires were distributed to the organisations and the 50 questionnaires were properly filled and returned for the data analysis. After the analysis, it was found out that leadership style has significant impact on employees’ performance and organizational growth. Based on the findings, it was recommended that 7up Bottling Company should adopt transactional leadership style but strategise to transit to transformational leadership style as their enterprises develop, grow and mature. A leader needs proper encouragement and consideration to raise the eager of his subordinates for future vision and accomplishment of mutual goal. Leaders should make his subordinates see things as he sees them. Workers’ welfare should be a paramount issue of concern to top management.

 

TABLE OF CONTENTS

Title page                                                                                                                   i

Certification                                                                                                              ii

Dedication                                                                                                                 iii

Acknowledgement                                                                                                   iv

Abstract                                                                                                                     v

Table of contents                                                                                                     vi

CHAPTER ONE

1.0       Introduction                                                                                                  1

1.1       Background of the Study                                                                             1

1.2       Statement of the Study                                                                                3

1.3       Objectives of the study                                                                                4

1.4       Research Questions                                                                                     5

1.5       Statement of Hypotheses                                                                            5

1.6       Significance of the Study                                                                            6

1.7       Scope of the Study                                                                                       6

1.8       Limitations of the Study                                                                              6

1.9       Definition of Terms                                                                                      7

CHAPTER TWO

2.0       Literature Review                                                                                         9

2.1       Concept of Leadership                                                                                9

2.2       Types of Leadership Styles Identified Are                                               11

2.3       Theories of Leadership                                                                               15

2.4       Transformational Leadership                                                                     16

2.5       Transactional Leadership                                                                            18

2.6       Job Performance                                                                                           19

2.7       Leadership Style and Performance                                                            28

 

 

CHAPTER THREE

3.0       Research Methodology                                                                               32

3.1       Research Design                                                                                           32

3.2       Population of Study                                                                                     32

3.3       Sample and Sampling Technique                                                              33

3.4       Research Instrument                                                                                    33

3.5       Method of Data Collection                                                                         33

3.6       Method of Data Analysis                                                                            34

CHAPTER FOUR

4.0       Presentation and Analysis of Data                                                             35

4.1       Questionnaire Results                                                                                 35

4.2       Data Analysis and Interpretation                                                               39

CHAPTER FIVE

5.0       Summary, Conclusion And Recommendation                                         53

5.1       Summary of Findings                                                                                  53

5.2       Recommendations                                                                                       54

5.3       Conclusion                                                                                                    54

Reference

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Leadership is an important area in management that occupies of central position in our everyday life.  It involves the still of leading and dealing with people.  One thing among human group is that there is always a leader otherwise the group cannot live to achieve its purpose.

The success in leading a group is contingent upon both leaders ability to held power effectively and the existence of an opportunistic situation.  The problems which result within organizational members disagree on both the nature of the goals of which people aspire, and the art of leadership.  Leadership according to Olusoji (2012) refers to behaviour undertaken within the context of an organization that influence the ways in which other organizational members behave.  It could be observed that leadership and management envisages deeply into what the organization can achieve if the quality of recognition is accorded to them.  Leadership has been propounded to include the source of influence that are built into position in an organizational hierarchy.  These include organizational sanctioned rewards and punishment authority and also export power.  It could be seen however that subordinates within the organization, though not all seen to enjoy the influence that exist all over the above organizational hierarchy provided by them in the organization.

Leadership is very essential in organization because achievements and results occur vis-à-vis the tracts being projected by leader.  Leadership includes the ultimate source of power but has the positive ability in persuading other individual and to be innovative in decision making.  Problems are sound to occur within every noted organization.  Decision making is found to generate conflicts in whatever they are doing to achieve organizational goal.  In the light, the notions of leadership act are these which help a given organization in meeting those stated objectives (Barelas, 2010).

In general terms, the act of controlling other people consist of uncertainty reduction which entails making the kind choice that permits the organization to proceed towards its objectives despite various kind of internal and external challenges. Dennis (2008) opines that in the society today, not only the presence of reward (positive and negative) or the incentive appraisal could induce productivity but the feeling of belongingness.  Further expressions like, is it my father’s work?  “They can dismiss me, I don’t care”, “why should I kill myself for them”?  There are some of the uncountable expressions often used by Nigeria workers to show that attitude to work.  Whenever any of these expression are heard, one will readily know that something is wrong somewhere in the entire system, so meaningful economics development, growth and self reliance would not be obtained where unsuitable leadership style is in place, therefore, how far an organization succeeds in achieving its goals depends to a large extent on how the management and workers relationship are handled in the organization, and this effect workers psychological expectation.

In the light of the foregoing, this study aim is to look at the leadership style, the organization should adopt to attain better performance.  The research will also try to examine the philosophy of leadership and its functional relationship with employees performance in an organization.  Therefore, to discover more means of finding a lasting solution to the numerous problems facing leadership styles on employees performance.  The increasing force of competition have awakened the minds of organizational management to develop and acquire new technique and mechanism to increase the level of organizational efficiency and effectiveness.  This task requires resources of the organization involved in production namely – money, material and labour which need to be confirmed appropriately for effective performance.

 

 

1.2       Statement of the Problem

Leadership style has become a very crucial area of management. Improper leadership qualities within the organization have a negative impact on the subordinates as well as the achievement of the organization objectives.

The reasons for poor productivity in manufacturing organisations have become a very important subject of study in the face of the deteriorating economic situation in the country.  It is important to note that many companies are going out of business in the Nigeria for the reasons of low productivity and can be addressed if workers are appropriately directed.  Sequel to the above employment situation in the country has been threatened because of firms that are going out of business in the manufacturing organisation, due to lack of employees performance.  The continuous experience of strike, lock out, picketing and conformation in the public sector, which disrupts services to the public and also affect employees’ performance in the industry.  This is another place of concern to the people as it adversely affects the economy.  Then, one can ask to what extent do the theories of leadership style developed by western management scholar apply to Nigeria environment are the theories relevant to Nigeria context?  The study is set out to investigate the effect of different leadership styles in manufacturing firm in order to determine its distinct impact on the employees performance.  The study will also evaluate the factor of leadership like, intelligence, initiative and imagination, in this case organization with the view to calculating their contribution to attaining organization objective.  It will inquire to ascertain the cost favourable leadership laissez-faire used in the case of organization to determine its influence and management employees. The study also includes to investigate the relationship (positive or negative) between leadership and its effect on employees performance.  The study will try to correlate the leadership styles to employees’ performance in an organization in Nigeria to decide the trend and influence of leadership styles on the employees’ performance.

1.3       Objectives of the Study

The main aim of the study is to examine the impact of leadership styles on employee’s performance.  Other specific objectives are:

  1. To examine the nature of leadership styles as it affects employees performance in an organisation.
  2. To examine the influence of leadership Style on organizational growth
  3. To examine the influence of leadership style on the turnover intention of employees
  4. To identify the problems associated with leader-employees relationship in the business environment.

 

1.4       Research Questions

The study would examine the following questions:

  1. To what extent does leadership style influence employees’ performance?
  2. To what extent does leadership style influence organizational growth?
  3. To what extent does leadership style influence turnover intention of employees?
  4. What are the factors that hinder cordial leader-employees relationship?

 

1.5       Research Hypotheses

Hypothesis One

Ho: Leadership Style has no significant effect on employees’ performance

Hi: Leadership Style has significance effect on employees’ performance

Hypothesis Two

Ho: Leadership Style has no significant effect on the organizational growth

Hi: Leadership Style has significance effect on the organizational growth

Hypothesis Three

Ho: Leadership Style has no significant effect on Turnover Intention of employees

Hi: Leadership Style has significant effect on Turnover Intention of employees

 

 

 

1.6       Significance of the Study

The significance of the study is basically a definite scope which will help elicit all the problems and effects of each different leadership styles.  Also, it will assist in highlighting how management employees react under stereotyped conditions.

In addition, all the mentioned and determined efforts, problem and solution will be critically studied so as to provide basis for possible recommendations to today’s manager who may be willing to employ a particular leadership styles.  It will proffer suggestions on situation that will require certain leadership style to succeed.

Finally, the research will assist future researchers in carrying out their study.

 

1.7       Scope of the Study:

The study will focus on the impact of leadership styles on employees performance.  It is limited to the staff of 7up Bottling Company, Asejire, Ibadan, Ibadan.

1.8       Limitations of the Study

On the course of this research, the following problems were encountered, like short time frame, financing problem, scarcity of information or data, etc. this is due to mainly, the wide scope of this study which emphasizes on a complex institution like Nigeria. Now, the implication is that the short time frame mapped out for this research work posed a problem of assessing these programs as whole, but that doesn’t threat the authentication and quality of this work.

1.9       Definitions of Operational Terms

Business: Bamikefa (2009), define business as coming together of group of people to exchange goods or services there is no poverty that can overtake a diligent person

Employee: An employee is a person who works for somebody or a company in return for wages.

Job Satisfaction: Job satisfaction is a result of employee’s perception of how well their job provides those things that are viewed as important.

Leadership Style: Leadership means persuasion on others to enthusiastically chase for certain target.

Motivation:-  This is the creation of stimuli, incentives and working environment which enable people to perform to the best of their ability in pursuit of organizational success.

Organization:-  Herbert Sinyou (2009), define as an exchange system in which inducement are exchange for work. He saw management as a process of rational decision making that influence the behaviour of member between the organizations.

Performance: The results of activities of an organization or investment over a given period of time.

1.10    Historical Background of 7UP Bottling Company

The Seven-Up bottling company Plc is one of the largest independent manufacturer and distributor of the well-known and widely consumed brands of soft drinks in Nigeria. Our brands are Pepsi, 7UP, Mirinda, Teem and Mountain Dew, which we produce and market in all our present 9 manufacturing plants. We also market our products through our over 200 distribution centres that we also call depots spread over the nooks and crane of Nigeria. Our workforce is currently in the neighbourhood of 3500 employees.

A Lebanese Mohammed El-khalil who came to Nigeria for the very first time in 1926 founded the company. Mohammed is the father of the company’s current chairman Faysal El-Khalil. The company metamorphosed from a very successful transport business [El-Khalil Transport] in a bid to diversify the then largest transport company in the entire West of Africa. On October 1st 1960, the exact day our great country Nigeria won her independents, Nigerians also experienced the birth of a soft drink giant as the first bottle of 7Up rolled out from our factory located in Ijora. Since then, our company continued to grow in the leap and the bound. In the late 80s, we established two more plants in Ibadan and Ikeja. In the early 1990s when Pepsi International took over 7Up international, we again got great opportunities to introduce the Pepsi brand to the Nigeria people. As at today, the company has its Headquarters in Beirut and operational base in three African countries; Nigeria, Tanzania and Ghana.

Vision

To become the most admired and innovative company in Nigeria

Mission

Inspire and refreshes a youthful lifestyle.