IMPACT OF EFFECTIVE LEADERSHIP STYLE IN STIMULATING EMPLOYEE JOB PERFORMANCE
ABSTRACT
Nowadays, organizations are operating in highly competitive environment. Effective leadership style requires for managing the organization successfully. The organizational success depends on its leadership styles and effectiveness of its employees. The effectiveness of individual employee’ performance depends on the leader/supervisor. Effective leader can enhance the individual employee performance through proper leadership style and retain high performance and talent employees within the company because he knows that high performance employees are unique resources of the organization. Based on the culture and nature of organization, leaders are applied suitable leadership styles. The behavior of leader is very importance to improve job performance and retain skillful employees for longer period in the organization. According to the problems or situations they face, leader needs to apply proper leadership styles. In some situations, employees leave the manager, not the organization. However, there are some other factors such as job satisfaction, flexible working environment, work life balance, work environment and career development opportunities. This paper identifies the impact of autocratic, democratic and laissez - faire leadership style on retention and job performance of employees. The purpose of this research was to investigate how leadership styles impact on employee retention and job performance. In this study, three main variables consist in conceptual framework. They are independent variables (autocratic leadership style, democratic leadership style and laissez -faire leadership style), intervening variable (retention) and dependent variable (individual employee performance). A sample of 150 respondents has been randomly selected from the D.G Fashion Garment (Pvt) Ltd., of Sri Lanka. Sample was selected by using simple random method and primary data was collected through structured questionnaires. Respondents were asked to indicate their preference on five point Likert scale. Data analysis was conducted by using Statistical Package for Social Sciences (SPSS 13.0) by using the statistical technique such as Cronbach alpha, mean, mode, variance, standard deviation, correlation and regression analysis. Graphs and tables were also used for data presentation.
TABLE OF CONTENTS
TITLE PAGE - ii
DECLARATION - iii
CERTIFICATION -
DEDICATION - v
ACKNOWLEDGEMENTS - vi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study - - 1
1.2 Statement of Problem - - 8
1.3 Objective of the Study - 10
1.4 Research Questions- - - - 11
1.5 Statement of the Hypothesis 12
1.6 Significance of Study - 13
1.7 Scope of the Study - - 14
1.8 Definition of Key Terms - 15
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction - - - - 18
2.2 Conceptual Framework - - 33
2.3 Theoretical Framework - - 45
2.4 Empirical Review - - - 50
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design -- 56
3.2 Population of the Study - 57
3.3 Sample Size - -- 57
3.4Sampling Technique - 58
3.5 Method of Data Collection - 58
3.6 Technique for Data Analysis - 59
3.7 Model Specification and Variable Definition -59
3.8 Measurement of Variables - - 59
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Data - -- 60
4.2 Discussion of Findings - - 79
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary - - 80
5.2 Conclusion - -- 80
5.3 Recommendations - 93
References - - 95
Appendix - - 98
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
Every organization becomes what it is largely because of her leader. This explains why in any organization, there are usually individuals responsible for organizing or directing the affairs and activities of such organization. One of the most durable contributions of administrative theorist is the study of management as a set of functions. In this regard, managing employee’s welfare and services would really help in boosting employee’s morale in any organization or institution with the effect of good leadership styles; and this is why leadership is considered as one of management functions. Leadership is a factor in the managerial function of directing (Akpala, 2000). Other factors in the managerial function of directing are motivation and communication.
These individual are usually people who have the ability to lead the other people in an organization to work towards the realization of the goals and objectives of the organization in order to move the organization forward.
Leadership according to Nwachukwu is a social influencing process for the attainment of goals.
Allen and Robert also define leadership as a process where one person exerts social influence over the members of a group. A leader then, is a person with power over the others who exercises the powers for the purpose of influencing their behaviour.
Leadership is a part of management, which deals with influencing activities of individuals and their efforts towards goal achievement in a given situation. The impact of effective leadership style should not be neglected because it leads to cooperation among employees and leaders in the organization.It also brings about mutual relationship between employees and leaders in the organization. Leadership is the ability of an individual to influence others to work beyond ordinary level to achieve a goal or objectives. Leadership is generally defined as influence, the process of influencing people so that they will strive willingly towards the achievement of group goals. To lead is to conduct, guide and direct. Leaders do not stand behind a group to produce. They place themselves before the group as to facilitate progress and inspire the group to accomplish organizational goals. A pertinent example is that of the orchestra leader whose function is to produce co-ordinate sound and correct tempo, through integrate effort of the instrumentalists.
Leadership has an effect on the performance of any organization. It affects both employee’s morale and productivity of the organization. For a leader to lead efficiently he needs to understand his followers and the situation in the organization. The situational variable which influence the effectiveness of a given leadership style are characteristics of followers and the task, organizational climate, power available to the leader and leader follower relationship.
An organization is set up with primary objective of optimally utilizing its available human and/or material resources to ensure that the total receipt of the organization in terms of revenue exceeds its total expenditure or payment. The role of human resources in an organization cannot be over emphasized. The pre determined goals and objectives of an organization cannot be accomplished in the absence of the positive morale and total commitment of the human resources other wise known as employee’s. This commitment and dedication is usually transformed into high level of productivity and thereafter the actualization or realization of the corporate objective of the organization.
It is pertinent to note here that the wealth of a nation is hinged on human resources. Therefore, capital and natural resources are passive factors of production while the active factors constitute the human resources who accumulate capital, exploit natural resources (material resources), build socio-economic and political organization and also carry forward national development. This means that for an organization to progress and the nation develop, the human resources base must be ultimately utilized and/or managed. It should be noted that human factors of production and its management is equally difficult considering its morale towards production.
According to Bottomore (2003), he stated that when employee’s work under severe debilitating, unsafe and degrading surrounding/environment for long hours and for a very poor remuneration/pay, there arise a followership of suffering. This suffering if sustained produces a brotherhood of understanding, which thereafter leads to class consciousness. This class-consciousness culminated necessarily in service from employers, which evolved into trade unionism. The pathetic and harsh environmental work place which people are subjected to is not commensurable with their level of Human Resource Performance.
It also brings about greater productivity and the attainment of set goals objectives.
A leader must possess the following characteristics.
i. He must be friendly with his employees
ii. He must be willing to accept responsibilities.
iii. He must be able to plan for the future.
iv. He must be socially active by participating in group function etc.
When leaders possesses some of these characteristics in dealing with their employees, the researcher believe employees will work in harmony and peace towards the attainment of organizational goals.
1.1 HISTORICAL BACKGROUND
Access Bank of Nigeria Plc was established in 1917 as a colonial bank with its first branch in Lagos in 1925. Barclays Bank acquired the colonial bank which resulted in change of the bank’s naira to Earclays Bank (Dominil Colorial and Overseas). By the enactment of the 1972 and 1977 in Nigeria enterprise promotion Act, Earclays Bank International disposed its shares to Nigeria in 1979. In compliance with the companies and Allied matter Act, 1990, it assumed the name Access Bank of Nigeria Plc.
The Access Bank Plc, Warri branch is headed by Benin City, and was established on Friday July, 24th 1998 by a representative of Delta State Government.
The bank was open with 7 (seven) staffs whom were Mr. Benson Almual, A.A. Akiu and Ologho as the first customer.
The fundamental purpose of the bank is to provide financial services. It provides shorts term loans to business and customers in order to increase the grassroot economic and social development for both individuals and organizations of rural and urban areas.
1.2 STATEMENT OF PROBLEM
One of the most and least understood variables of management is leadership. For centuries, scholars have been speculating on the nature of leadership. Only in the recent years have researchers conducted systematic investigation that yield useful insights into dimension of leading (Nwachukwu 2005). However, there is still an increasing difficulty to establish the fact that leaders achieve the desired result at when needed. The quality of leadership style shape the behaviour of their employee’s at all level. It tends to evaluate their job and their organization according to the kind of leaderships morale their bosses exhibit.
Theoretically, in appropriate usage some style of leadership leads to employee’s negative morale to work, for instance, absenteeism, conflicts, indifference to work ethics. All these are some of the problems found out in the case study. Thus, it is therefore argued that to achieve organizational predetermined goals that management should display good leadership morale that could motivates the employee’s. But most organization does not take this into practice which has become a problem.
The concept of effective leadership style in stimulating employee’s job performance is primarily concerned with mutual relationship between employees, leaders and the willingness of employees to put in their best effort, so that the desire goal of organization can be achieved.
However, poor leadership style often leads to poor job performance as most leaders lack the managerial power, as their emphasis are often towards forcing their will on employees.
Finance is another problem encountered in effective leadership style. Inconsistency in government policies also constitutes another problem to effective leadership style.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study are as follows:
1. To identify the various leadership styles and their impact on Human Resource performance.
2. For people to understand leadership process as an important phenomenon in an organization.
3. To look at the problems associated with leadership process in an organization and provide solution to such problems by way of recommendation.
1.4 SIGNIFICANCE OF THE STUDY
i. This study is aimed at discovering the content of effective leadership style on employees of Access Bank Plc Warri.
ii. It is intended to explore the kind or relationship existing among leaders and employees with a view of correcting disputes.
iii. The study will find ways of achieving the best result in terms of services rendered to customers.
v. The study also intend to contribute to existing knowledge in the area of Human Resource performance and enhance stimulating further studies on the topic, since improvements are made everyday, that can lead to formulation of policies by the government.
1.5 RESEARCH QUESTIONS
i. Does leadership have any impact on Human Resource performance?
ii. Do employees take part in decision making process of the organization?
iii. Does inconsistency in government policies affect leadership style?
iv. Do leaders have mutual relationship with employees?
1.6 RESEARCH HYPOTHESES
i. H0: Leadership style has no impact on Human Resource performance.
Hi: Leadership style has impact on Human Resource performance.
ii. H0: Employees do not take part in the decision making process.
Hi: Employees do take part in the decision making process.
iii. H0: Inconsistency in government policies does not affect the leadership style.
Hi: Inconsistency in government policies does affect the leadership style.
iv. H0: Leaders do not have mutual relationship with employees.
Hi: Leaders do have mutual relationship with employees.
1.7 SCOPE OF THE STUDY
The study covers an area of Delta State private sector, particularly, Access Bank Plc, Warri.
It is concern with the impact of effective leadership style in stimulating employee’s job performance, for the advancement of organizational set goals.
1.8 LIMITATION OF THE STUDY
In the course of carrying out this study a lot of problems were encountered.
Financial problem: the researcher was not financially fit and as a result, the researcher could not find it easy in moving from one place to another.
Another problem encountered was the inability to convince the management of the organization that the aim of the research was merely for academic purpose. Some management staff refused to disclose some fact and data useful for the study. This also posed some problem in writing this project.
Also some received the questionnaire but refused to fill them. A study of this magnitude should not be limited to a short period of time.
1.9 DEFINITION OF TERMS
i. Leader: A leader is a person who directs the behaviour of group members and gives instruction on how a task is to be done.
ii. Leadership: Is the process of influencing the activities of organized group toward goal setting and goal achievement.
iii. Employee: Is a person employed to work under a leader and is being directed and organized by a leader.
iv. Objective: Is the aim an organization wants to achieve.
v. Organization: This means two or more people getting together for a purpose.
vi. Relationship: The way two or more people are connected.
vii. Cooperation: The willingness to be helpful and do what you are asked to do.
viii. Managerial Power: The power of directing Human Resource to work toward achievement of good.
ix. Responsibility: A duty placed on someone.
x. Resources: Materials need for the effective running of an organization which is either in human or raw material form.
xi. Productivity: The rate at which a worker or company produces goods, and the amount produced.
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