An Examination Of Leadership Styles Adopted By Small Scale Business Managers

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


This study aims at the leadership styles adopted by managers of small scale business Enugu state with particular reference to Nicodo Industries Ltd Emene Enugu Urban metropolis.

In accomplishing the aim of this study, the researcher surveyed a particular small scale business in Enugu urban and sampled the opinions of managers in order to get information on the following .

Distribution of sex managers in small scale industry, capital information of small scale industry, leadership styles been adopted by managers, number of labour force employed, the growth of their business compared by the managers.

Problems encountered by managers in performing their task, grievance and law.

They are tackled by managers and motivation as criteria for high employee’s performance. In seeking and getting the required information of this study, questionnaire and personal interview were used.

The researcher also reviewed the related literature of what authors opined about the leadership styles of small scale managers. The majority o the respondents believes that the styles they are now adopting.

The researcher concluded that owners /managers of these business want to adopt the best form of leadership in order to succeed and remain in business.

The researcher recommended the adoption of a new leadership styles called Auto-Democratic to actualize both long run and short-run plans of any business unit. Also the government should help to train managers/ owners on the new managerial skills for effectiveness and efficiency

Chapter One

1.0 Introduction

1.1 Background Of The Study

Organizations are established bearing in mind a number of reasons. They are either established as charity organisation or as business Organizations. The activities of charity Organizations are philanthropic in nature in which case, their main objectives is non-profit oriented. On the other hand, organisation which are into business may be set up either by government, individuals or a combination of the efforts of both, but whether government owned or individually owned, their objective is mainly profit-oriented. These business Organizations are established to provide goods and or services either on large scale or small scale. The profit aspect to setting up business is assumed to be an ultimate objective out of a host of other objectives.

The success in achieving the set objective in nay organisation is strongly attributed to the functions activities or contribution made by the management in terms of the leadership.

Leadership is an important concept in any organisation and it is viewed from different perspectives by different people as a result of the different notions held, with regards to this concept, different approaches are being applied its study and consequently different styles adopted in its practicability.

The researcher are particularly concerned about the examination of these different leadership styles adopted by management in order to achieve the objectives of the organisation especially in small scale business. Too many leadership styles exist which are adopted by business managers all through the globle. According to Lawin, leadership can be characterized as autocratic, participative and laisse fair.

The problem as to the particular style that should be adopted inversely in industries so as to achieve growth and efficiency has been crucial to management.

According to Douglas Mc gregor, he stated that “the situational approach to leadership should result and one major conclusion for present day management and provide a heterogeneous supply of human resources from which individuals can be selected to fill a variety, but unpredictable needs”

The study of leadership style adopted by small scale business managers present a contribution to the search t the improvement of management guards especially in Enugu Metropolis and in Nigeria as a whole. The style adopted by the manager will enhance the leader followers relationship existing between the management and staff. This relationship thus, affects general performance as well as output in the enterprise. Managers in every organisation always want the best performance out of workers, but in the country lack the knowledge of knowing which style to adopt in order to achieve their aim. Where they have such knowledge, they are indecisive as to which style to adopt.

This study, therefore has set for itself a task of enlisting and critically examining the various leadership styles adopted by small scale business managers in Enugu metropolis with a view of guiding the small scale business manager in their choice of a style that will suit their business must, and thereafter achieve effectiveness and efficiency.

1.2 Statement Of Problems

Is the leadership styles adopted by the manager, effective in achievement of the Organizations objective?

  1. It is such questions as above that led to this work prior to this study, I observed such situations where the styles are effective whereas in other they are not, most after, the various Organizations
  2. To ascertain why the leadership styles adopted by various small scale industries in Enugu metropolis are ineffective in achieving their organizational objectives.
  3. To determine if employees, job performance will be improved by their workers leadership style.
  4. To find out if some managers in their leadership recognizes or shows confidence in their workers potentialities.
  5. To verify the extent an employer can choose his workers and the type of leadership to adopt.
  6. To find out why there is inadequate workforce in the organisation.

1.3 Purpose Of The Study

  1. The purpose of this study is to critically examine how the leadership style of managers of small scale business in Enugu urban metropolis effect the efficiency and effectiveness of such small scale enterprises with the view to achieving the organizations belief.
  2. To examine the leadership styles adopted by the managers in an organisation to profit managers, their subordinates and infact the entire society in appreciating and coming to terms with the new reality and on the side of leader or owners of business.
  3. To find out why some managers do not understand what leadership is all about, those that know have no misconception of the idea of leadership.
  4. Moreover to know the types of workers he has and type of leadership style he will adopt in order to suit the workers for effective production.
  5. To ascertain this, without subordinates there won’t be ;leaders, so the study of leadership styles in small scale industries will go a long way to enhance good support between owners and workers.

On this basic, this study has become seriously important in order to ascertain which of the leadership styles is best for small scale enterprises.

1.4 Significance Of The Study

Significantly, a research usually is geared towards discovering hidden, doubtful, unknown and necessary knowledge. In this regard, this study has exposed a lot of management practices and leadership styles which are recommended for effective leadership especially in small scale business. It has exposed a lot more leadership styles that are not peculiar to Nigerian scene, but which can still be practiced effectively in Nigerian business world.

This study will help small scale managers see the secret of those sales. It will also been of immense help to any person pattern of small scale business with regards to leadership.

1.5 Scope Of The Study

This study examine the leadership styles adopted in small scale industries using Enugu metropolis involving a survey of Nicodo industries Emene Enugu within the small scale business.

1.6 Research Hypothesis

  1. The leadership styles adopted by the welfare makes an effectiveness of the workers (Ho)
  2. The leadership styles adopted in the various industries promote inter-personal communication within them (Ho).
  3. The leadership style in the small scale business promote the motivation of workers (Ho)

1.7 Research Questions

  1. What type of leadership styles do your organisation adopt ?
  2. Do you consider your employees as been happy with the type of leadership styles adopted ?
  3. What type of communication system do your organisation adopt ?
  4. What types of leadership style should be able to be used to manager the resources at its disposal ?
  5. Do you see motivation by leaders a must for industrial harmony and growth.

1.8 Definition Of Terms

1. Autocratic

This leadership in which production is emphasized even at the expense of the human considerations:

2. Laissez – Faire

The leadership takes a passive starle towards the problems of the group or the organisation.

3. Participative

The leadership that claims to demonstrate democracy to the group, but is in reality international autocratic.

4. Organisation

A group of persons working together for a common purpose and good.

5. Management

A group of persons that gathered together of the smooth running of the affairs of the organisation

6. Leadership

As enter personal influence exercised in situation and directed through the communication process towards the attainment of a specified goal or goals.

7. Exploitation

They are the people who engage in adventures of act (i e the brilliant achievement for the success the organizational goals.

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