The Impact Of Leadership Styles On Organizational Performance (A Case Study Of Power Holding Company Nigeria PHCN)

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The Impact Of Leadership Styles On Organizational Performance (A Case Study Of Power Holding Company Nigeria PHCN)


This research work examines the impact of leadership style on organizational performance of power Holding Company of Nigeria (PHCN) Plc, Ilorin between the period of 1999-2007 with strict emphasis on administration, marking and distribution section of the organization. The study identifies the advantages and disadvantages associated with different leadership styles under particular condition. The product moment correlation coefficient was used in this study to describe the relationship between leadership styles and organizational performance in the company and to confirm the level of which leadership styles contribute to the level. Also, r2 co-efficient of determination was also used to find the degree of leadership styles contribution. In view of the above, it is clear that effective styles contribute tremendously to the improvement of organization performance and set goals in the PHCN Plc.

Chapter One


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

  1. The ability to use power effectively and in a responsible manner.
  2. The ability to inspire
  3. The ability to comprehend that human being has different motivational forces at different time and in different situation.
  4. 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).

1.2 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.

  1. What is the current situation of the organization? What leadership style is in use? What changes are expected by adopting a new leadership style?
  2. 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?
  3. 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.
  4. Task structure – how does a task structure affect the subordinate performance?
  5. What are the impact of highly based – centered and their subordinate?
  6. The effect of the degree of freedom granted to subordinate by their leader.

The following research questions are set out purpose of this study.

1.6 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.

1.7 Study Plan

This research project is divided into five chapters. Chapter one is the introduction, which consists of the background, research problems, aim and objectives, significance, research questions, scope, limitations, study plan and definition of terms.

Chapter two is the literature review, which comprised of definitions of leadership and leadership styles, leadership theories and leadership styles and behaviours.

1.8 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

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

The chapter one of this research work makes an attempt to study and know such factors that determine prevailing leadership styles in the organization. Furthermore, It aimed at contributing to verify related views in this field of study.

Chapter two of the research work takes a look at the review of relevant publishing literature in the areas of leadership theories and researches and leadership styles and how it affects organizational performance in the organization concern.

In chapter three, sources of data collection, samples and sample frame and method of data analysis was discussed, Question are was administered to the staff workers of PHCN Plc. Ilorin. Each of these questionnaires comprises fourteen questions do signed purposely to obtain. Information on leadership styles in the PHCN Plc Ilorin and its impact on performance. Hence these questionnaire were administered to 180 respondents of the company and only 160 completed questionnaire were returned and used for the research work analysis.

Importantly, in this chapter also, effort was made to trace the historical background of the case study through company diary, journal, and newspapers information.

Chapter four of the research embodied responses from the questionnaire completed and funding based on the contest of time and demand of this work. Also, in the chapter, tables were used in analyzing some question on the questionnaire and common made after each of the table for easy comprehensive meaningful correlation technique were also used to analyze and show relationship between leadership styles and organization performance.

5.2 Conclusion

Having completed the research work on the impact of leadership styles on organizational performance, A case study of PI-ICN Plc, one can therefore conclude that leadership styles had a moderate relationship with the organizational performance in the organization and that employer perform their work effectively and efficiently. As the study may disclose further, leadership style had become management tool for achieving organization set goals. Therefore, leadership training programmes should be a continue.

5.3 Recommendations

In view of the above, it is clear that effective styles contribute tremendously to the improvement of organization performance and set goals in the PHCN Plc, Ilorin. In a nutshell, the following recommendations are made resulting from the study, which will be of great important, and benefits not only to the staff of PHCN Plc. As a corporate organization but other business corporation in Nigeria as human relations, commitment, hardworking, effective communication with subordinates, competence, participative in decision making are very important tools that can encourage workers to put his/her lots to the greater performance and other set goals.

Leader should at all time strive to understand the complete social, political, cultural and economic (external) environment of their administration in order to exploit it to the advantages of the economy.

Leaders should therefore encourage subordinates to work under good physical working conditions and safety. This has an important chance of motivating staff to work hard and satisfactorily, discourage absenteeism, lateness to work and undue excuse for non-performances.

Leader should take it upon them to make sure that bureaucratic nature is lesser to some extent so as to achieve high performances level and curb delay associating with quick render of services.

In appointing nominating leader to a particular position, management should ensure that such a person (leader) has unsustainable integrity, respect and he/she is also committed, hardworking, trustworthy, understanding, nature and achievement-oriented among other traits.

Management should at all time organize for and send most of their staff to leadership training programmers, seminar, workshop, symposium, conference etc for easy leadership succession and to boost workers morale in the company.

Besides, it is however believe that Power Holding Company of Nigeria (PHCN PLC) and other cooperate business organization will found these recommendation very useful.

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