ABSTRACT
The research study examines leader’s behavior on employee’s performance in a manufacturing company. Thus, survey research design was adopted and as such one hundred and fifty (150) questionnaires were administered to the respondents at Flour Mills of Nigeria plc while one hundred and thirty (130) were fully completed and returned. Indeed, simple percentage was adopted to analyze the responses of the questionnaire while Pearson Correlation Coefficient was adopted to test the hypotheses formulated. However, it was found that there is significant relationship between leadership style and employee performance and also that there is significant relationship between leadership style and employees job satisfaction. It is therefore recommended that leaders at all level in the organization should recognize their performing subordinate in the organization it can also serve as a tool of motivating their action.
TABLE OF CONTENT
TITLE PAGES
CERTIFICATION I
DEDICATION II
ACKNOWLEDGEMENT III
ABSTRACT IV
TABLE OF CONTENTS V
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND INFORMATION OF THE STUDY 1
1.2 STATEMENT OF RESEARCH PROBLEM 5
1.3 SCOPE OF THE STUDY 6
1.4 OBJECTIVES OF THE STUDY 6
1.5 RESEARCH QUESTIONS 6
1.6 RESEARCH HYPOTHESES 6
1.7 SIGNIFICANCE OF THE STUDY 7
1.8 DEFINITION OF TERMS 7
REFERENCE 10
CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION 12
2.2 CONCEPTUAL FRAMEWORK OF THE STUDY 13
2.3 THEORETICAL REVIEW OF THE STUDY 19
2.4 EMPIRICAL REVIEW OF OTHER RELATED DETAILS 33
2.5 SUMMARY OF LITERATURE REVIEW 37
2.6 GAP IN THE REVIEW OF RELATED REVIEW 39
REFERENCE 40
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION 46
3.2 RESEARCH DESIGN 46
3.3 DESCRIPTION OF STUDY POPULATION 46
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUE 47
3.5 SOURCES OF DATA 47
3.6 DATA COLLECTION INSTRUMENT AND DESIGN 47
3.7 SCORING (CODING) OF RESEARCH INSTRUMENT 48
3.7 STANDARDIZATION (RELIABILITY AND VALIDITY)
OF RESEARCH INSTRUMENT 48
3.8 DATA ANALYSIS TECHNIQUE 48
REFERENCE 49
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION 50
4.2 RESULT OF ANALYSIS 51
4.3 TEST OF HYPOTHESES 57
4.4 DISCUSSION OF FINDINGS 59
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS 60
5.2 CONCLUSIONS 60
5.3 RECOMMENDATIONS 61
5.4 SUGGESTIONS FOR FURTHER STUDIES 62
BIBLIOGRAPHY 65
QUESTIONNAIRE 71
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
The concept and definition of leadership and style may differ from one person, or situation, to the other. The word “Leadership‟ has been used in various aspects of human endeavor such as politics, businesses, academics, social works, etc. Previous views about leadership show it as personal ability. Messick and Kramer (2004) argued that the degree to which the individual exhibits leadership traits depends not only on his characteristics and personal abilities, but also on the characteristics of the situation and environment in which he finds himself. Since human beings could become members of an organization in other to achieve certain personal objectives, the extent to which they are active members depends on how they are convinced that their membership will enable them to achieve their predetermined objectives. Therefore, an individual will support an organization if he believes that through it his personal objectives and goals could be met. If not, the person’s interest will decline.
The business environment is changing completely as a result of major societal forces, Technological advances, globalization, deregulation, consumer awareness and competition discharge their duty on organizational performances and creating new behaviors and challenges. Although many factors may influence the performance of an organization, there can be little doubt that the quality of leadership available to it will be one of the most critical determinants of ultimate success. Leadership issues have severally reverberated in the domain of organizational discourse. This is because of its significance in attaining organizations’ goals and objectives. Organizations are set up to achieve some set goals. In order to achieve these goals and objectives, the human factor is of utmost importance. Top on the human factor list is the leader. A leader influences organizational members to contribute efforts willingly towards the accomplishment of pre-determined goals and objectives.
Nwokocha, (2014) argues that the objective of any organization is to attain a set goal and leaders play a determinant role to organizational efficiency. Polychronious (2009) opines that leaders in today’s turbulent business environment strive to design and implement a variety of processes; team – based tasks, and projects. In that case, he stressed that a leader has to provide the followers what is needed to keep them on the job, make them productive and proceed towards realizing the organizations’ vision. Unfortunately over time, this synergy eludes the organizations, thereby constituting challenges to employees’ performance and retention, and the overall actualization of business objectives. The study will examine the effect of leadership behavior on employee performance.
The importance of leadership in organizations cannot be over emphasized. There are various theories and research concerning leadership because of its importance in all kinds of group action. Leadership today is increasingly associated with the concept of team work, getting along with other people, stimulating and creating a vision which others can identify rather than command and control. Leadership is a special type of influential activity. It may be seen in effect in all kinds of social situations, and it is especially apparent where the situation demands that people work together towards common goals. In Organizations, leadership is a managerial activity the purpose of which is to direct the employees in one immediate chain of command toward the accomplishment of work goals. Leadership represents a combination of behaviors exhibited by one who occupies an elected, appointed, or designated position of influence in a social system. Leadership behaviour is therefore officially sanctioned either formally or informally and the leader is looked to for guidance and direction by those who recognize in his or her power.
Employees are the most important assets in organizations, which without, the goals andobjectives may not be attained. Several studies have been conducted on the roles that goodleaders can play in achieving increased employee job performance. A good leadership mayplay a mediating role in the relationship between organizational culture and employeeoutcomes and an atmosphere for good leadership to flourish; which will ultimately lead toincreased employees‟ job performance Toor&Ofori (2009). Leadership behaviour plays a very important role in enhancing employee job satisfaction, work motivation and work performance. Good leadership behaviour accelerates the development of most organizations.Scholars and practitioners suggest that effective leadership behaviours can facilitate the improvement of performance when organizations face challenges (Avery 2008). On the other hand, employee performance is an important building block of an organization and factors which lay the foundation for high performance must be analyzed by the organizations. Since every organization cannot progress by depending on one or two individuals‟ effort, it is a collective effort of all the members of the organization.
In the recent past years, leadership has engaged as a new effective approach for managing the employees and organization at large. The traditional concept of personnel administration has gradually replaced with the human resource management. This give importance to the strategic integration of new leadership styles into effective management of employees and to improve the employee performance. Obiwuru, Okwu, Akpa & Nwankwere,(2011) assert that “The effective leader must be a good diagnostician and adopt style to meet the demands of the situation in which they operate. Different leadership styles are used that fit to employees on the basis of amount of directions, empowerment, and decision making power. An administrative phenomenon reflects the contingency of leadership behavior or style, situation and performance criteria have been left to suffocate on their own. As a result, employee performance was affected due to lack of proper direction and application of strategic style in managing daily duties. In past, previous study investigated performance phenomena and how it was affected by various variables such as: Leadership, and with its different leadership styles such as participative, autocratic, and democratic.
The term leadership therefore can be defined as the ability to lead, direct and organize a group (Umar & Aina, 2014). It is a process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2007).Certo, (2002) defines leadership as “the process of directing the behavior of others towards the accomplishments of some objective”. Cole (2002) sees leadership as a dynamic process at work in a group whereby one individual over a particular period of time, and in a particular organizational context, influences the other group members to commit themselves freely to the achievement of group tasks or goals. However, good leaders must understand that positive relationships with all organizational stakeholders are the gold standard for all organizational efforts. Good quality relationships built on respect and trust are the most important determinants of organizational success. Leadership is the exercise of influence in a social situation in which the followers’ (influences) attribute leadership qualities to the leader (influencer). Leaders are leaders because other people view them as such. It must be noted that not all leaders are effective managers and not all managers are effective leaders. In other words, leadership has been described as a process of persuasion where the leader act as an example for a group in order to motivate and induce the group to pursue the objectives of the leader and the organization.
1.2 STATEMENT OF PROBLEM
Consequently, one of the most compelling challenges facing today’s organizations is leadership. Numerous studies have proved that leadership in its totality is key to the success of any organisation which is dependent on the performance of its resources especially the human resource. It has been found through studies that connection between leadership style and employee performance is strategically significant to the success of an organization. Employee performance includes executing defined duties, meeting deadlines, employee competency, and effectiveness and efficiency in doing work. Various organizations need strong leadership styles/behaviour that stimulates the employee performance on which the performance of an organization is dependent upon. Furthermore, some researchers are of the opinion that the most common problems affecting organizational performance in Nigeria businesses and other institutions are poor attitude to work among the workforce, inefficiency and ineffectiveness of leaders in most places. Recent studies have shown that the perception of most employees is that there is a need of a leader who should not only have to lead people but also be effective. So, they need an effective leader who can lead the people toward the changes and performance improvement. In view of the above contending issues, it will be necessary to examine leadership behaviour/style on the performance of employees in the organization. Therefore, this study will be investigating the following.
– The impact of leadership on the performance of employees.
– How does a different leadership style contribute to the performance of employees and firm?
- How does leader’s effectiveness change performance.
1.3 OBJECTIVE OF THE STUDY
The objective of this study is to examine or investigate the following;
- To determine the leadership styles that contributes to employee’s performance.
- To ascertain the significance of leadership style on performance of employees.
- To determine the relationship between leadership style and employee job satisfaction.
- To recommend to the industry and similar organizations, the various leadership styles that they should adopt to achieve a sustainable competitive edge.
1.4 RESEARCH QUESTIONS
- What leadership styles contribute to employee performance?
- What is the significance of leadership style on employee’s performance?
- What is the relationship between leadership style and employees job satisfaction?
- What recommendation can be proffer to the industry and similar organizations on leadership styles to achieve a sustainable competitive edge?
1.5 HYPOTHESES
The following hypotheses will be tested;
Hypothesis one
Ho: There is nosignificant relationship between leadership style and employee performance.
Hi: There is significant relationship between leadership style and employee performance.
Hypothesis two
Ho: There is no significant relationship between leadership style and employees job satisfaction.
Hi: There is significant relationship between leadership style and employees job satisfaction
Hypothesis three
Ho: There are no recommendations to organizations on how leadership styles can achieve a sustainable competitive edge
Hi: There are recommendations to organizations on how leadership styles can achieve a sustainable competitive edge
1.6 SIGNIFICANCE OF THE STUDY
It is the researchers hope and expectation that this study will complement similar researches undertaken and serve as a useful reference for academic purposes. It is aimed that this study will help leaders to understand the importance of involving workers in the decision making process, because it is considered as an important factor that boosts employee’s morale towards performance in order to secure the future of an organization.
Indeed, at the end of this study leadership in various organizations would be enlightened on the importance of motivating employees in order to serve as an impediment towards achieving organization’s goal and objectives.
1.7 SCOPE OF THE STUDY
The study aimed to ascertain the examination of leader’sbehaviuor on employee’s performance in Flour Mills of Nigeria Plc in its Lagos Office. Indeed, the focus shall be on both junior and senior staff’s categories in order to sample their various opinions so as to make comparison in the area of inquiry.
- LIMITATION OF THE STUDY
There is no doubt a study of this nature would not have its own inadequacies, some of the limitation to this study was inadequate time, resource constraint, fear of the unknown by the respondents to attend to the questionnaire and lack of accessibility to some valuable information among others.
1.9 DEFINITION OF TERMS
Leadership: This is the process by which a person exerts influence over people and inspires, motivates, and directs their activities to help achieve group or organizational goals.
Leader: A person who influences a group of people towards the achievement of a goal. A person that holds a dominant or superior position within a group, and is able to exercise a high degree of control or influence over others.
Employee: A person who is employed to help an organization attain its set goals and objective and who is rewarded for his/her mental and physical contribution towards the attainment of the set goals and objectives.
Performance: This is referred to the measure of applied efforts to productive activities to achieving pre-determined goals.
Behaviour: The way in which one acts or conducts oneself, especially towards others. The range of actions and mannerism made by an individual, in conducting selfwith others or environment.
Style: Characteristics or elements combined and expressed in a particular (often unique) and consistent manner.
Organisation: Is defined as the bringing together of both human and non-human resources to achieve a predetermined goal and objective.
Goal: The overall objectives, purpose and mission of a business that have been established by its management and communicated to its employees.
Objectives: Is referred to as intended plan of action needed to be performed in other to achieve the pre-determined goal of an organization.
Motivation: This refers to psychological process that gives behaviour purpose and direction.
Morale: State of confidence, enthusiasm, determination etc of a person or group of persons towards the company and their work situation.
Job satisfaction: Contentment (or lack of it) arising out of interplay of employee’s positive and negative feelings toward his or her work.
REFERENCES
Abdulahi, A. & Hussein, O. (2013);The effect of leadership behaviour on staff performance in Somalia. Somalia:Savap international. www.savap.org.pk
Anwar, S., Haide, N. &Iqbal N. (2015); Effect of leadership style on employee performance. Pakistan: Arabian Journal of Business andManagement Review.
Avery, C. (2008); Missing Links in understanding the Relationship between leadership and Organizational Performance.https://solution.mckingesy.com.
Certo, S. C. (2002); Modern Management, (9th Ed.). New Delhi: Prentice Hall.
Cole, G. A. (2002); Personnel and Human Resources Management. (5th Ed.). London: Book-Power.
John, E. (2012);Effective leadership on organizational performance.University of Nigeria, Nsukka, Enugu, Nigeria.
Messick, D. M. & Kramer, R. M. (2004); The Psychology of Leadership: New Perspectives and Research. Lawrence Erlbaum Associates, Publishers. New Jersey.
Muogbo, U.S. (2013);The impact of employee motivation on organization performance. Nigeria: The International Journal of Engineering and Science.
Northouse, P.G. (2007); Leadership Theory and Practice.Pastoral Psychology, 56 (4), 403-411.
Nwokocha, I. (2014); Sustainable Managerial Strategies for Employee Retention in Two Private Sector.
Obiwuru, T. C., Okwu, A. T, Akpa, V. O. & Nwankwere, I. A. (2011);Effects of Leadership Style on Organizational Performance: A Survey of Selected Small Scale Enterprises in Ikosi-Ketu Council Development Area of Lagos State, Nigeria. Australian Journal of Business and Management Research.1 (7), 100-111.
Polychronious, P. (2009); Relationship between Emotional Intelligence and Transformational Leadership of Supervisors.The Impact on Team Effectiveness.Team Performance Management, 15 (7/8), 343-356.
Umar, D.M. & Aina, O.K. (2014);Management of leadership style: An approach to organizational performance and effectiveness in Nigeria. Nigeria: International Journal of Humanities Social Sciences and Education.
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