An Investigation Into The Relationship Between Leadership Styles And Organisational Performance
An Investigation Into The Relationship Between Leadership Styles And Organisational Performance
Abstract
This work is an investigation into the relationship between leadership style and organizational performance a case study of Apaco form Nigeria Limited in Delta State. The work was guided by research questions, objectives and hypotheses. Descriptive research method is adopted and data were collected through questionnaire. The major activity of this work were directed by the hypothesis formulated in chapter one. The findings of this study pointed out that a serious relationship exists between leadership style and employees performance in the organization. The conclusion of this study, from the findings shows that leadership style is one of the several factors that affect employees’ performance in the organization. The following recommendations are made by the researcher. There should be training for manager and employees on some principles that are very important for effective productivity. And also those employees should be effectively motivated. Management should also create enabling environment and rules for both leaders and subordinates to carry out activities together as this will give all employee sense of belonging.
Chapter One
Introduction
1.1 Background of the Study
Leadership is a fascinating concept in which philosophers, historians, psychologists, sociologists, politicians, and all kinds of executives, have shown much interest. It is considered as one of the key functions of management and, as such, has been a subject of considerable research. According to Igboeli, (1990:151), leadership may be defined as a process by which people are directed, guided and influenced in achieving group goals. A leader is a person who is central in a group goals interaction. According to Ile, (1999, 208), a leaders is one who influences his or her followers or group to achieve an objective in a given situation. The followers may be his or her superiors or peers as well as the subordinates of the leader. It is the willingness of people to follow that makes a person a leader. Moreover, people tend to follow those whom they perceive as providing a means of achieving their own desires, wants and needs.
By the nature of their position, managers are placed in a leadership position in organizations to influence the behaviour of the formal work group. Their effectiveness can be measured by the accomplishment of the group vis-à-vis the organizational goals and objectives. Leadership consists of two types – formal and informal. Formal leaders are appointed to their leadership positions while informal leaders are selected by the group. Each type of leader relies on a different source of authority to influence members. A manager, who relies exclusively on his formal authority to influence group members, falls into the formal leadership category.
According to Ile, (1999:217) there are some important implications in the concept of leadership, for instance, leadership involves others. In other words, leadership involves followers. The followers may be superiors, or peers, as well as the subordinates by their willingness to follow, accept directions from the leader, group members help define the leader’s status and make the leadership process possible. Thus, leadership demands followership. Leadership involves unequal distribution of power between leaders and group members. This is implied that group members are not powerless; they can and do shape group activities in a number of ways. Leadership involves ability to use difference forms of power to influence followers’ behaviours in a number of ways. According to Appleby, (1981:117) leadership also involves the acceptance of responsibility for the achievement of the group objectives. Because of this, it is therefore, essential for trust and cooperation from both sides to be in evidence all the time.
Therefore, without leadership, an organization is but a muddle of men and machines. In other words, without leadership, an organization would be comprised of uncoordinated groups of people lacking unity and direction.
1.2 Statement of Research Problem
The role of organisational leaders in facilitating optimum or high performance in work organisations cannot be over emphasised. A number of studies that have examined the relationship between leadership styles and organisational performance had indicated that leadership behaviour and organisational performance are significantly related (Bass, 1990; Collins and Porras, 1996; Manz and Sims, 1991; Sarros and Woodman, 1993). But some studies have also provided evidence that leadership styles may have a positive correlation or negative correlation with organisational performance, depending on the variables used by various researchers (Goleman, 2000; Vigoda-Gadot, 2007, Wang, Chich-Jen, Shieh, and Mei-Ling, 2010).
For instance, certain studies have focused on what is generally called the Full Range Leadership Development theoretical model. This model includes: laissez-faire or no leadership style; transactional leadership style which is based on passive and active aspects; and transformational leadership style which is based on personal relationships, intellectual challenge, inspirational motivation and behavioural charisma. These three styles have been commonly applied by researchers to the study of leadership and organisational performance (Avolio and Bass, 1991; Bass, 1985; Bass and Avolio, 1993; Geyer and Styrer, 1998; Lowe, Kroeck, and Sivasubramaniam, 1996; Mackenzie, Podssakoff, and Rich, 2001; Parry, 2003; Pillai, Schrieshim, and Williams 1999). These three categories create a hierarchical sequence of leadership styles according to the extent of activity that the leader expresses in his/her actions and according to the extent of its effectiveness. In this model, transformational leadership ranks as the most effective style, followed by transactional leadership and then the laissez-faire style in descending order of effectiveness. The basic assumption of the Full Range Leadership Development model is that in every leader all styles can be found. Other studies on the link between leadership and organisational performance indicate that a stronger relationship exist between transformational leadership and performance than between transactional leadership and performance. Transactional leadership and performance was found to have a lower correlation than transformational leadership and performance (Den Hertog, Van Muijen and Koopman, 1997; Vigoda-Gadot, 2007).
On the other hand, the relationship between transformational leadership and organisation performance is positive and strong. However, the question arises as to whether or not these research outcomes on the relationship between various leadership styles and organisational performance is universally valid. As such, there is the need to test these research results in the Nigerian work environment.
In a nutshell the research problem is: What is the actual relationship between the various leadership styles and organisational performance in the Nigerian work context.
1.3 Research Question
In order to effectively address the above problem, this study will seek to provide answers to the following research questions:
- What is the relationship between various leadership styles and organisational performance?
- What is the impact of various leadership styles on organisational performance?
- How can higher organisational performance be achieved through the employment of appropriate leadership behaviour in work situations?
1.4 Objectives of the Study
Main Objective is to investigate the relationship between various leadership styles and organisational performance.
Subsidiary Objectives
- To assess the impact of various leadership styles on organisational performance.
- To examine the concepts of leadership and organisational performance.
- To make appropriate recommendations towards better organisational performance through the employment of appropriate leadership styles.
1.5 Hypotheses
Hypothesis 1:
Transformational leadership style tends to have a positive relationship with organisational performance
Hypothesis 2:
Transactional leadership style is likely to be positively related to organisational performance.
1.6 Significance of the Study
This study is significant in that it would investigate the relationship between various leadership styles and organisational performance in the Nigerian work environment. By so doing it is hoped that results in this study will serve as a seed for which further research can be developed in the following ways. Firstly, this research is extremely important to leaders/managers of Akwa Ibom Water Company Limited and it is not limited to the case study alone but to other organisations that desires optimal organisational performance, this is because it may help them to understand and implement appropriate leadership style to increase the performance of the employees/followers which will in turn enhance organisational performance. Secondly, this study’s contributions is not restricted only to leadership and human resource management theoretical literatures but also to the fields of Public Administration, Public Sector Management, New Public Management, Business Administration, Organisational Behaviour, Organisational Leadership and so on.
Research and experience have shown that leadership is a major challenge to optimum organisational performance. Provision of adequate funds and creation of enabling environment for an organisation may yield little or no result, without appropriate leadership style(s) that engenders optimum organisational performance. This study will therefore be of practical value to individual entrepreneurs and organisational leaders in various spheres of life.
To the government, the study will provide the focus for leadership development studies to be introduced as a course in our higher institutions and a training programme for government ministries, departments and agencies.
Through the findings of the present study, the leaders and managers in the organisation under study will become more knowledgeable about the impact of various leadership styles on organisational performance and the appropriate leadership style(s) that will engender optimum organisational performance.
It is also crucial to undertake this study, since its finding will be useful for confirming, rejecting or modifying existing findings and studies on the relationship between leadership styles and organisational performance.
Chapter Five
Summary, Conclusion and Recommendation
5.1 Summary
This work is an investigation into the relationship between leadership style and organizational performance a case study of Apaco form Nigeria Limited in Delta State. The work was guided by research questions, objectives and hypotheses. Descriptive research method is adopted and data were collected through questionnaire. The major activity of this work were directed by the hypothesis formulated in chapter one. The findings of this study pointed out that a serious relationship exists between leadership style and employees performance in the organization. The conclusion of this study, from the findings shows that leadership style is one of the several factors that affect employees’ performance in the organization. The following recommendations are made by the researcher. There should be training for manager and employees on some principles that are very important for effective productivity. And also those employees should be effectively motivated. Management should also create enabling environment and rules for both leaders and subordinates to carry out activities together as this will give all employee sense of belonging.
5.2 Conclusion and Recommendation
This research work has shown that for any organization to survive, appropriate impact of leadership on the employee must be followed. It is hoped that the presentation of’ leadership in this project will contribute to the better understanding of the need for adopting of Democratic, participative leadership in an organization, which will enhance organizational effectiveness. It was inferred that democratic or participative types of leadership is the best of all the leadership styles because of the benefits that will be derived from it by the employees amid the overall result to the organisation as a whole. The study also shows that it is necessary to effect changes in impact of leadership when the need arises in an organisation in order to enhance performance. Furthermore when there is good leadership. There will be corporate behaviour by the employee, targets will be met and ultimately there will be satisfaction on the part of the employee and the employers.
Based on the above conclusion, the research is recommending the following action for improvement.
- For effective leadership style, leader should use the combinations of the leadership styles. For there is no best style depends on the situation that confronts the leader.
- The organizations should try and employ more degree holders to handle some leadership position rather than employing non degree holders and claim they are experienced yet they cannot apply some of the management principles.
- There should be training for managers and employees on some principles that are important for effective productivity.
- Employees should be effectively motivated, economic rewards must not be offered alone, but recognition and opportunities for realizing various individual goal and aspirations must be created.
- Top management should create enabling environment and rules for both leaders and subordinates to carry out activities together as this will give all employee/members sense of belonging and hence increases in productivity.
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