THE IMPACT OF LEADERSHIP STYLES ON ORGANIZATIONAL PERFORMANCE
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TITLE PAGE
THE IMPACT OF LEADERSHIP STYLES ON ORGANIZATIONAL PERFORMANCE
BY
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EE/H2013/01430
DEPARTMENT OF ----
SCHOOL OF ---
INSTITUTE OF ---
DECEMBER,2018
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This is to certify that the research work, "the impact of leadership styles on organizational performance" by ---, Reg. No. EE/H2007/01430 submitted in partial fulfillment of the requirement award of a Higher National Diploma on --- has been approved.
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DEDICATION
This project is dedicated to Almighty God for his protection, kindness, strength over my life throughout the period and also to my --- for his financial support and moral care towards me.Also to my mentor --- for her academic advice she often gives to me. May Almighty God shield them from the peril of this world and bless their entire endeavour Amen.
ACKNOWLEDGEMENT
The successful completion of this project work could not have been a reality without the encouragement of my --- and other people. My immensely appreciation goes to my humble and able supervisor mr. --- for his kindness in supervising this project.
My warmest gratitude goes to my parents for their moral, spiritual and financial support throughout my study in this institution.
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This work has investigated the effects of leadership style on organizational performance in small scale enterprises. The major objective was to determine effect of leadership styles on performance in small scale enterprises. Transformational and transactional leadership styles were considered in this study. Transformational leadership behaviours and performance/outcome considered relevant in the study were charisma, inspirational motivation and intellectual stimulation/individual consideration; and effectiveness, extra effort and satisfaction, respectively. Transactional leadership bahaviours and performance/outcome variables were constructive/contingent reward and corrective/management by exception; and effort, productivity and loyalty/commitment, respectively. The study followed a survey design, and employed evaluative quantitative analysis method. Analysis was based on primary data generated through a structured Multifactor Leadership Questionnaire (MLQ) administered on respondents. Responses to research statements were scaled and converted to quantitative data via code manual developed for the study to enable segmentation of the data responses into dependent and independent variables based on leadership behaviours and associated performance variables. OLS multiple regression models were specified, estimated and evaluated. The result showed that while transactional leadership style had significant positive effect on performance, transformational leadership style had positive but insignificant effect on performance. The study concluded that transactional leadership style was more appropriate in inducing performance in small scale enterprises than transformational leadership style and, therefore, recommended transactional leadership style for the small enterprises with inbuilt strategies for transition to transformational leadership style as the enterprises developed, grew and matured.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the study
1.2 Statement of the problem
1.3 Aim and objectives of the study
1.4 Significance of the study
1.5 Research questions
1.6 Scope of the study
1.7 Limitation of the study
1.8 Study plan
1.9 Definitions of key terms
CHAPTER TWO
2.1 Definition of Leadership and Leadership Style
2.2 Leadership Theories
2.2.1 Great Man/Traits Approach to Leadership
2.2.2 Behavioural Approach to Leadership
2.2.3 situational Approach to Leadership
2.2.4 Fielders Contingency Approach to Leadership
2.3 Leadership Styles and Behaviour
2.3.1 Leadership Styles Based on the use of Authority
2.3.2 Likert’s Four System
2.3.3 Managerial Grid
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Historical Background of PHCN PLC
3.2 Research Hypothesis
3.3 Methods of Data Collection
3.4 Population and Sample Size
3.5 Sampling Techniques
3.6 Methods of Data Analysis
CHAPTER FOUR: DATA PRESENTATION ANALYSIS
4.1 Demographic Characteristics Analysis
4.2 Leadership Styles Analysis
CHAPTER FIVE
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The performance of any enterprise or the life spans of an organization, whether large or small is directly proportional to the finality of its leadership. In the light of fact, an organization or community will only succeed, towards the achievement of a group goal, only if the reign of a leader exists. Thus; a leader is someone who has the ability to inspire, motivate and use power effectively and in a responsible manner towards the achievement of a goal considering this, leadership can simply be define as the act or process of influencing people, so that they will strive willingly and enthusiastically towards the achievement of a group goals.
Yusuf (2001) argues that the ability of any organization to achieve its desire goals and objectives depends on the nature of its leadership. However empirical evidence has tends to show that leadership plays very significant roles in effective and efficiency of any organization. Ogunsan 91985) and Ochia (1987) admitted in their study that leadership skill were very effective in enhancing performance. Hence, leadership has a significant managerial factors and ingredients in the success of any organization.
Ingredient of Leadership
A. The ability to use power effectively and in a responsible manner.
B. The ability to inspire
C. The ability to comprehend that human being has different motivational forces at different time and in different situation.
D. The ability to act in a manner that will develop a climate conducive to responding to and arousing motivation.
Thus, the move a leader understand what motivate their subordinate and how these motivation operate the better the actualization of a group goal, David Mann (1985) sees styles of leadership as some of the basic requirement for achieving good management, administration and good leadership. Leadership styles may be defined as a designing pattern of behaviour used in integrating both the organization and personal interest in achieving the organization aim and objectives. Furthermore, these styles of leadership are many but three are commonly in used in most establishment; free vein leadership style, autocratic leadership style and democratic leadership style. It is generally believed that good leadership style will increase organizational performance, lower unit cost, high morale sustain and improve management- labour relationship (Nwachukwu 1988).
- Statement to the Study
Over the year, scholar have extensively research on the effective leadership styles in an organization. Prominent among then are Stodgill, Fieldler Likert, Blade and Monton, Tennenbaum and so forth.
Leadership have been seen involving a variety of styles, ranging from one that is highly boos-centered to that is highly subordinate with suggestion that no one style is always right and another is not always wrong in the context of business and services industries to achieve goals. More so, for manager or leader at appropriate leadership styles in an establishment, some situational factors need to be considered. These include position power, task structure and leader member relations.
1.3 Aim and Objectives of the Study
The aim of this research is to examine critically the impact of leadership style on organizational performance.
The objectives of this study are as follows:
1. To explain what is meant by leadership style
2. To describe various types of leadership style
3. To examine how leadership styles can improve organizational performance and create good leader member relations.
4. To make recommendations as to how leadership style can exercise positive impact on organizational performance.
1.4 Significance of the Study
The importance of the research study is:
1. It helps to identify leadership style to be put forth by the manager in the organization, to ensure high moral and high performance among the staff of PHCN Plc Ilorin.
2. The study identifies the advantages and disadvantages associated with different leadership styles under particular condition.
3. Finally, it point out how motivational forces affects the performance of staff.
1.5 Research Questions
It is unlikely that a leadership style that worked yesterday would be successful in today’s administration. Considering this 3 major questions’ what, where & how are being asked.
- What is the current situation of the organization? What leadership style is in use? What changes are expected by adopting a new leadership style?
- Where are we taking the organization? How much growth do we need? What is the targeted goal? What are the social objectives of the organization?
- How can we get there from here? This is the important part of question, as it proffer the leadership style to be adopted which in turn give solution to the above other question asked.
- Task structure – how does a task structure affect the subordinate performance?
- What are the impact of highly based – centered and their subordinate?
- The effect of the degree of freedom granted to subordinate by their leader.
The following research questions are set out purpose of this study.
- Scope of the Study
This research examines the impact of leadership style on organizational performance of power Holding Company of Nigeria (PHCN) formally NEPA, Ilorin between the period of 1999 to 2007 with strict emphasis on administration, marking and distribution section of the organization, as they are the major focus on the achievement of the organization goals.
1.7 Limitation of the Study
There are certain limitations encountered in the course of carrying out this research they include.
1. Lukewarm attitude of the officials of PHCN in responding to the questionnaire.
2. Fears of espionage as all vital information are classified as “TOP SECRET” because of government protocol.
3. Improper filling of questionnaire by the respondents
4. Long delays in getting back the filled questionnaire from the respondent as a result of busy schedule at work.
It should be noted, however that the limitations outlined above does not in anyway in validate this research as sufficient data was obtained through insider friend and good human relation, therefore the research is still valid.
The work is organized as follows: chapter one discuses the introductory part of the work, chapter two presents the literature review of the study, chapter three describes the methods applied, chapter four discusses the results of the work, chapter five summarizes the research outcomes and the recommendations.
- 9 Key Terms
1. Autocratic: A leader who has complete power and expecting complete obedience.
2. Amalgamation: To combine or join together
3. Benevolent: Doing good or being kindliness
4. Boss: A manager or leader in Chief
5. Consultative: A state of meeting with someone to exchange idea and opinions (Discussion)
6. Decentralized: The process of moving power/decision making away from a single large group to other small local group.
7. Democratic: Ruling or leading people through decision by
their group or people.
8. Dogmatic: Act of being stubborn and forcing opinion on others.
9. Enterprise: A business
10. Exploitative: To make use of something selfishly.
11. Goal: Anything aimed a t or wished for
12. Impoverished: To make something poor or lesion in quality
13. Leader: One who shows way on direct or guide or persuade
14. Leadership: Ability to lead
15. Manager: Someone in charge of a business
16. Motivation: To cause someone to act in a certain way
17. Non Coercive: To cause someone to act in a certain way
18. Organization: A group of people working together for a purpose.
19. Participative: To have a share or take part.
20. Style: Manner of acting
21. Subordinate: Someone lowers in rank
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CHAPTER THREE: The complete chapter three of "the impact of leadership styles on organizational performance" is available. Order full work to download. Chapter three of "the impact of leadership styles on organizational performance" consists of the methodology. In this chapter all the method used in carrying out this work was discussed.
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