The Impact Of Leadership Style On Organizational Effectiveness

Project and Seminar material for Public Administration

The Impact Of Leadership Style On Organizational Effectiveness


The continued success enjoyed by many organizations is derived from a balanced that are achieved in terms of goals of both the employees and the management of the organization through effective leadership. The major purpose of this study is to determine the impact of leadership qualities on growth and development of an organizations. Specially the private sector. In order to accomplish this objectives, research questions were formulated and data collected through the use of questionnaires that were distributed to staff of Grimard Hospital, Anyigba. The data analyzed using statistical techniques such as percentage and chi-square that were interpreted. In work organizations. The quality of management i.e top management often determine the quality of work output and margin of profit. When management of any organization harnesses the potential of available manpower in such a way that organizational effectiveness are achieved and sustained through effective leadership obviously, she utilizes leadership principles but different leadership styles are required for different leadership styles are required for different work situations and sometimes, they vary with the nature of ownership of organization.

Chapter One


1.1 Background to the Study

Leadership is important in management function that involves harnessing of human and material resources for the attainment of organizational goals. Leadership has been viewed by many authors as a process whereby an individual exerts influence upon others in an organizational context. Bowlers and Seashore (1996) enumerated the basic functions of leadership to include; Support enhancing others feelings of self-esteem and support Facilitating of interaction such that group members develop close and mutually satisfying relationship. Goal emphasis for high performance and achievements. Work facilitation such that targets are easily achieved through such activities as scheduling, coordination, planning and the effective application of knowledge and prudent utilization of resources. It is expected therefore that in every organization, there should be a leader who will in addition to planning, organizing and coordinating work. Mobilize inspire and utilize available human and material resources optimally for effective organizational growth and development. Leadership often emerges in a social context in that it does not exist in a vaccum but a phenomenon for people and by the people.

The objectives of leadership are products of clear vision and its actions are dictated by great focus and a sense of mission. The way and manner leadership is conducted in any given situation depends on the interplay of such factors as individual personality, work demand and the exercise of the environment. The extent to which any of these factor dominates ones behaviour determines to a large extent the person accumulation of natural or situational leadership traits. Several arguments have been raised over time about the relationship between leadership and employees attitude. However, most scholars caution against tendencies to propose a cause effect relationship because of the confounding of the interview variables. For instance, leadership characteristics determines leadership behaviour and consequently the attitude of subordinates towards him and the work situatin. Katz (1949). And in the view of Mlonick (1991), Democratic leaders tend to affect employees more positively than authoritative leaders, while authoritative leaders tend to achieve production targets than the former.

However, Petz (1952) theorized that what matters in the leader subordinate relationship is not just the imposing attributes or the leader but also the enduring characteristics of subordinates. He also advocated the principles of reciprocal influence and integration, according to him, subordinates expect their supervisor to exercise upward influence when dealing with problem, which affect workers themselves, but when this is perceived as being limited, they develop unfavourably reactions. Consequently, this wills throat the attainment of organizational objectives and effectiveness. However, organizational effectiveness depends to a great extent on the ways the various group in the organizational hierarchy are structured and integrated. Effective management should therefore develop effective group membership to which they owe loyalty. That is why effective leadership is necessary in ay organization of all the activities that will promote productivity as organizational effectiveness is to a large extend measured by its productivity.

1.2 Statement of the Problem

Leadership is considered as the bane of development in Nigeria organization. In political circle for instance, the problem of leadership is described with despicable terms as corruption, ineptitude, red-tapism and nepotism etc.

There is no gain saying the face that most of the socio-economic maladies which the nation face currently are product of poor management and bad or ineffective leadership. For over a decade now, the world bank has reported consistently in her annual bulletin and publication that Nigeria ranks amongst the six poorest nations of the world despite her abundant, human and natural resources.

In addition, capacity utilization of Nigeria industrial organization has been at a very low level since 1983, and many industries have since folded up.

This is an apparent failure on the part of those in leadership positions which the organizations operate and design practical and effective response strategies to cope with the prevailing situation the obvious conclusion in that they have serious leadership problems.

Many organizations which could have been economically viable are folding up even now and some which are surviving could hardly meet their targeted maximum production level even when such organizations have their required financial banking, enough raw materials and human resources. Therefore, leadership remain the problem militating against the growth and development of such organization. To curb this menace, there is need for an effective leader to effectively put those resources to proper use for maximum result.

Government organization never really get extinct by virtue of their ownership structure. This is not the case with private organizations which may be devastated to the point of folding up due to numerous problems amongst which is leadership. Their survival capacity is much less the former.

It should be noted that when leadership creates abundant work environment, moral drops, production decrease and the prospects for survival diminish.

Most of the studies conducted in Nigeria have focused on the relationship between motivation and productivity (e.g. Egwu 1991), but have rarely contemplates on the relations between leadership and organizational effectiveness.

Meanwhile, in most organization, the quality of management is often measured by the quality of work output and margin of profit. However, different leadership styles are required for different work situations and sometimes, they vary in the nature of ownership.

Leadership is to harness the potential of available manpower and material resources in such a way that organizational objective are achieved and sustained.

Grimard Hospital is a services, profit oriented organization owned by catholic mission. Not much has been done to examine the services function and the profit making motive of the organization. Hence, very little is known of how leadership influence it.

The current study therefore intends to examine the impact of leadership on the performance of this private sector organization.

1.3 Research Questions

What is the perception of staff in Grimard Hospital about effective leadership and its impact on organizational effectiveness?

Are there gender and education differences in perception of effectiveness of leadership in Grimard Hospital.

1.4 Objectives of the Study

This study, apart from being a requirement of Kogi State Polytechnic in partial fulfillment for the award of HND, is also intended to satisfy their task of those seeking knowledge and also shows the importance of leadership towards the achievement of organizational goals and objectives.

The overall conceptual framework of the project is to identify the environment in which the organization operates, the outcome of the work environment and how the leadership activities contribute to the advancement of those outcomes.

It will also appraise the different leadership theories in relation to employees and organization objectives, as well as a determine perception of the supervisory management cadre in private sector organization about effective leadership. It is obvious that the primary objectives of ever organization to provide consumers with goods and services at the right time, place and price so as to satisfy them. hence, effectiveness and efficiency are the watchwords.

A lot of problems are being faced in an organization some of which has been identified by the researcher with regard to this organizational leadership activities.

In the final analysis, this write up will reveal that democratic leaders tend to effect employees more positively than authoritative leaders tend to achieve production target better than democratic leaders.

However, organization should ensure an effective leader with well equipped and trained staff to manage the affairs of the firms so as to attain organizational effectiveness.

1.5 Research Hypothesis

Bowen et al (1980) define hypothesis as a guess or a statement of conjecture showing the relationship between two or more variables in the population under certain conditions.

Hypothesis I:
  • Ho: Effective leadership does not contribute to effectiveness and productivity in the private sector organization.
  • Hi: Effective leadership contributes to organizational effectiveness and productivity in the private sector organization.
Hypothesis II
  • Ho: Effective consultation before decision making does not ensure effective leadership
  • Hi: Effective consultation before decision making ensure effective leadership?

1.6 Scope and Limitation of the Study

The study was designed to cover Grimard Hospital, Anyigba, a caring and service organization among other private sectors. The subject of the study is the impact of leadership on organizational effectiveness.

Constraint encountered in the course of this study includes times as the researcher had little time to gather sufficient information.

The problem of some staff not ready to respond to some questions especially during interview also contribute to some set backs.

The inconvenience and difficulties in combining lecturers and research work.

1.7 Significance of the Study

The significance of this study is that, it will serve as an instrument for harnessing the impact of leadership in the achievement of organization effectiveness and objectives in the private sector i.e. Grimard Hospital, Anyigba.

The outcome of this research would

  1. Identify aspects of the Nigeria work life that need to be influence by planned and exceptive management
  2. Highlight qualities that show effective leadership and are critical to growth and development of private sector enterprise in Nigeria.
  3. Indicate the means by which the management of private sector organizations should be enhanced and made effective through good leadership

1.8 Definition of Terms


The act or process of influencing people to strive willingly and enthusiastically toward the accomplishment of group. Nwachukwu (1988)


The process of designing and maintaining and environment in which individuals work together in group to accomplish efficiently and effectively selected aims and objectives. Ogbadu (2002)


Ability to work well without wasting time and resources Yulk (1998)


Strong impression or effect of leadership on organization effectiveness. Morgan (1982)


A structure process in which peoples interact for objective on an enterprise itself. Koontz (1994)


Efficiency in the accomplishment of objectives.


An action or achievement considered in relation to how successful it is


A leader is a person who leads a group of people while leadership is the state or position of being a leader.


Registered nurse


Consultative of participation


Please derive from doing one’s job


A person who is in charge of running a business, a shop/store or a seminar organization or part of one: a bank manager, hotel manager etc.


Individual unique way of exhibiting his or her action.

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This study has focused on the impact of leadership styles on organizational performance. The focus was on only six types of leadership styles- transformational, transactional, democratic, charismatic, bureaucratic, and autocratic. The transformational, autocratic and democratic leadership styles were found to have a positive influence on organizational performance, whereas, the transactional, charismatic and bureaucratic leadership styles were found to have a negative impact on the organizational performance in the organizations taken for study. This study reveals that organizational performance is associated with the leadership style and they have both a positive and a negative impact on the performance. It is important for a leadership style to offer opportunities to employees, offer a sense of belonging along with allowing them to participate in the decision -making. In this context, it is recommended that organizations should focus on using the transformational and democratic leadership styles in the organizations so as to improve the organizational performance.

This report mainly focused on the common three styles of leadership which are autocratic leadership, democratic leadership as well as laissez faire style of leadership. The democratic leadership deems best compared to the other two styles as it will aid in enhancing the performance of the employees and the organization as a whole. The autocratic is the least effective as it might demotivate employees and reduce the productivity and performance of the organization. This report showed the styles of leadership as well as the impacts on the organization. It is crucial that managers that adopt the leadership style should contribute to the well-being of the employees as well as provide opportunities and allow them to be involved in decision-making. In this context, leadership styles play a significant role in the organizational performance and it is merely up to the managers to adopt the right one.

To have an impact on the organization through leadership development, these development programs require to be upheld in organizations by ongoing, reflective practices with objective setting and review that are connected to the leadership role and the organizational strategy though literature reflects on lack of universal robust evaluation of leadership development programs, especially those that fail to identify the effectiveness of long-term outcomes on the investment made. In today’s global scenario, the important aspect of a leadership style and leadership development is to stimulate, motivate, empower and direct the follower’s/group members by being sympathetic to achieve the organizational objectives by being a visionary, having big-picture thinking, flexible and who initiates change.

This study has provided deep insights of the impact of leadership styles on the organizational performance. It, however, has some limitations such as that only quantitative data has been used. This has significantly reduced the scope and applicability of the research. Therefore, the future researches should focus on using relevant research methods, along with qualitative methods, for determining the relationship between leadership style and organizational performance.

There are various ways to adopt good leadership styles in a working environment. The best leadership style that could be seen from the three common styles that were discussed is the democratic leadership. In the current working environment, most organizations adopt the democratic leadership style as it aids the organization in meeting its goals and objectives. As the organization’s strength relies heavily on democratic leadership style, it is suggested that the company’s leadership strive to get more out of this leadership style in its operations. In this diverse working environment, it is also suggested that the company adopt certain leadership styles where appropriate throughout order for the organization to grow in strength in its industry. Because there is no “one size fits all” leadership style, it is also advised that management try to use different techniques and approaches as the circumstance can require people to work harder to achieve organizational objectives and further improve performance. Apart from that, the organization’s top management must make efforts to identify the critical factors impacting organizational members’ success and the possible actions (training, motivation and performance assessment) to be implemented to resolve them. The combination leadership styles should be implemented by corporate managers, but with due regard for the circumstance and complexity of the role entrusted to their employees.

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