Impact Of Transformational Leadership Style On Employee Productivity In Private Firms In Akwa Ibom State

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Impact Of Transformational Leadership Style On Employee Productivity In Private Firms In Akwa Ibom State


Abstract


This study was carried out to examine the impact of transformational leadership style on employee productivity in private firms in Akwa Ibom State. The study was specifically carried out to determine whether there is a significant relationship between transformational leadership style and employee productivity, ascertain the effect of transformational leadership on employee effectiveness, determine the effect of transformational leadership on employee commitment, and ascertain the effect of transformational leadership on employee overall productivity. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of staff of some selected private firms in Akwa Ibom State. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. While the hypotheses were tested using Pearson correlation statistical tool, SPSS v23. The result of the findings reveals that there is a significant relationship between transformational leadership style and employee productivity. The study also revealed that transformational leadership has a positive effect on employee overall productivity. Therefore, it is recommended that transformational leadership should be taught to all people at all levels of organization to have a positive impact on the overall performance. To mention but a few.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

The importance of leadership in achieving optimum organizational performance cannot be overstated. Leadership and its style has been identified as one of the numerous factors that can enhance or impede employee productivity. The terms “leadership” and “leadership styles” have been used in a variety of contexts, with varying definitions. Ogbeidi (2012) defines leadership as a group of people who lead and direct the activities of a group toward a common goal. It refers to the ability to direct, organize, and lead a group. While Cole (2002) views leadership as a dynamic process at work in a group in which one individual influences the other group members to freely commit themselves to the achievement of group tasks or goals over a period of time and in a specific organizational context. According to Stogdill (1948), leadership style is a method and capability used by leaders to achieve organizational goals, and it has an impact on all organizational activities. According to Fiedler (1969), leadership style refers to a type of relationship in which someone uses his rights and methods to get a group of people to work together on a common goal. However, the most popular approach to explaining leaders’ influence on organizational performance is transformational leadership style. We must distinguish transformational leadership from transactional leadership in order to comprehend it. Transactional leadership is based on an exchange process in which the leader gives out rewards for desired behavior and punishes/punishes for undesirable behavior. These rewards could include salary increases, promotions, and additional benefits, whereas the sanctions/punishments could include pay cuts, demotions, and terminations. Transformational leadership, on the other hand, goes beyond contract fulfillment to motivate employees/followers to go above and beyond, resulting in positive change in the employees or followers. Though, across cultures, several studies on transformational leadership style have shown a consistent relationship with various performance indicators (Rejas, Ponce, Almonte and Ponce,2006). However, in comparison to other parts of the world, Nigeria has had relatively few studies on the subject. The goal of this study is to investigate transformational leadership style and employee productivity in the Nigerian workplace, based on this consideration.


1.2 Statement of the Problem

Within the organization, transformational leaders can influence employee creativity and bring about organizational innovation in a variety of ways. First, they define and structure the work, in which employees and leaders collaborate to determine goals, objectives, and problems, as well as provide solutions (Ogbeidi,2012). Second, organizational leaders are the key sources of organizational culture impacts. They have the responsibility of not only guiding, coaching, and supporting the workforce, but also of creating an organizational climate and culture that fosters employee productivity. However, transformative leadership styles are hampered by a variety of circumstances, all of which will be investigated in this research (Fieldler,1969).


1.3 Objectives of the Study

Generally, this study seek to examine impact of transformational leadership style on employee productivity in private firms in Akwa Ibom State. Specific objectives are stated below.

  1. Determine whether there is a significant relationship between transformational leadership style and employee productivity.
  2. Ascertain the effect of transformational leadership on employee effectiveness.
  3. Determine the effect of transformational leadership on employee commitment.
  4. Ascertain the effect of transformational leadership on employee overall productivity.

1.4. Research Questions

  1. Is there any significant relationship between transformational leadership style and employee productivity?
  2. What is the effect of transformational leadership on employee effectiveness?
  3. Does transformational leadership has a significant effect on employee commitment?
  4. What is the effect of transformational leadership on employee overall productivity?

1.5 Research Hypotheses

  • Ho: There is no significant relationship between transformational leadership style and employee productivity.
  • Ha: There is a significant relationship between transformational leadership style and employee productivity.

1.6 Significance of the Study

This study on transformational leadership style and employee productivity in manufacturing companies will be of immense benefit to managements, employees and to all actors in the organizations as whole. This study will enable managers to know the types of leadership style to adopt in their effort to achieve organizational set goals as well us how the style will influence commitment, performance and productivity in their organization.

Also, this study is important/essential because it will enable the organizations to know the style of leadership preferred by their employee. It will help the leaders to have a better understanding of their employees and know the best leadership style to adopt in order to effectively influence or motivate their subordinates.

This study will also be of importance to other organization especially those having problems with leadership. They can draw lessons from the recommendations of this study to enhance the qualities and styles of their leaders.

This study well serve as a stepping-stone to any individual who may be willing to go into business, but for the fear of how to make an effective and efficient use of human resources that they employ.

This study will further serve as a bench-mark to scholars, researchers and students who may wish to carry out further research on this topic or related domain in the future.


1.7 Scope of the Study

This study is structured to generally examine the impact of transformational leadership style on employee productivity in private firms in Akwa Ibom State. However, the study will be delimited to some selected private firms in Akwa Ibom State.


1.8 Limitation of the Study

There is bound to be problems in the course of carrying out any research. The ability of the researcher to minimize the problems will go a long way to improve the quality of the work. Also, time and financial constraints posed a lot of limitations to this study. Finally, the work is limited to some selected private firms in Akwa Ibom State. The inability of this study to cover all the private firms in Akwa Ibom State and other states of the federation posed as a limited to this study.


1.9 Definition of Terms

Organization:

A structured process in which people interact to attain an objective.

Leader:

A person who influence and direct the affairs of others.

Leadership Style:

A leadership style refers to a leader’s characteristic behaviors when directing, motivating, guiding, and managing groups of people

Employee:

An employee is simply refers to someone employed by an employer in an organization to work under another person known as the manager or the supervisor officer.

Performance:

This is the accomplished or to do a certain piece of work to the degree which is intended according to the organizational goals.

Employee Productivity:

Is a measure of how much work an employee delivers within a specific time. It can also be used to quantify the output of a group or team. To measure anything, you have to have predetermined standards and timeframes.


1.10 Organizations of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the impact of transformational leadership style on employee productivity in private firms in Akwa Ibom State. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine the impact of transformational leadership style on employee productivity in private firms in Akwa Ibom State. The study was specifically carried out to determine whether there is a significant relationship between transformational leadership style and employee productivity, ascertain the effect of transformational leadership on employee effectiveness, determine the effect of transformational leadership on employee commitment, and ascertain the effect of transformational leadership on employee overall productivity.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent were staff of some selected private firms in Akwa Ibom State.


5.3 Conclusions

Based on the findings of this study, the researcher concluded that;

  1. There is a significant relationship between transformational leadership style and employee productivity.
  2. Transformational leadership has a positive effect on employee effectiveness.
  3. Transformational leadership has a significant effect on employee commitment.
  4. Transformational leadership has a positive effect on employee overall productivity.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

  1. Transformational leadership should be taught to all people at all levels of organization to have a positive impact on the overall performance.
  2. There should be effective communication between management and other employees within the organization.
  3. It is suggested that managers to be trained to use both styles of leadership and along with the increasing need for new skills and competencies of leadership as a result of changes in community, leadership training program is more important than ever.
  4. Employees motivation should be boosted at all cost to promote productivity.
  5. Reward and punishment should be done in a fair manner to all employees.
  6. Proper methods of training and development should be devised to promote employees career growth.
  7. Teamwork among employees should be enhanced to ensure cohesiveness among employees and management.

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Frequently Asked Questions


Does transformational leadership improve employee motivation?

Among the various styles of leadership styles, transformational leadership has gained more popularity and attention, perhaps due to its productive, supportive and innovative nature. Literature on transformational leadership has identified significant positive impacts on employee motivation.

What are the disadvantages of transformational leadership style?

As pointed out above, transformational leadership style encourages employees to work at peak levels while bringing them into contact with one another. Much of this contact, however, may be counterproductive for the employee and may result in demoralization.

What is the impact of leadership style on performance?

Another study by Basit et al. (2017) investigated the impact of leadership style (democratic, autocratic, and laissez-faire) on the performance of employees and found that the most significant value associated with the performance of employees was democratic leadership style, and then the laissez-faire leadership style.

What is the philosophy of transformational leadership?

The philosophical approach to this style of leadership involves empowering employees and increasing their organizational commitment (Bushra et al. 2011). As such, transformational leaders articulate a vision that empowers employees and engages them to contribute to the organization. 

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