Impact of effective leadership styles on organizational growth(a case of Kebbi home savings and loans ltd B/Kebbi)

Table of Contents

COVER PAGE…………………………………….………………………………………………………………….............i

APPROVAL PAGE……….…………………………………………………………………………………………………ii

CERTIFICATION………………………..………………………………………………………………………………….iii

ABSTACT…………………………..……………………………………………………………………………………………iv

ACKNOWLEDGEMENT……………..…………………………………………………………………………………..v

DECLARATION…………………………….………………………………………………………………………………...vi

TABLE OF CONTENTS………………………………..………………………………………………………………..vii

CHAPTER ONE

1.0 INTRODUCTION.............................................................................................................5

1.1 BACKGROUND TO THE STUDY....................................................................................5

1.2 STATEMENT OF THE PROBLEM..................................................................................6

1.3 OBJECTIVE OF THE STUDY..........................................................................................6

1.4 RESEARCH QUESTION..................................................................................................6

1.5 SIGNIFICANCE OF THE STUDY.....................................................................................6

1.6 SCOPE OF THE STUDY..................................................................................................6

1.7 LIMITATIONS OF THE STUDY.......................................................................................7

1.8 DEFINATION OF TERMS................................................................................................7

CHAPTER TWO

2.0 LITERATURE REVIEW................................................................................................8

2.1 RELATIONSHIP BETWEEN LEADERS PERFORMANCE AND ORGANIZATIONAL PERFORMANCES.............................................................................................................9

2.2 THEORIES OF LEADERSHIP.....................................................................................10

2.3 TRANSACTIONAL LEADERSHIP..............................................................................11

2.4 TRANSFORMATIONAL LEADERSHIP......................................................................11

2.5  LEADERSHIP SKILLS...............................................................................................12

2.6  WORK PERFORMANCE...........................................................................................13

CHAPTER 3 

3.0 RESEARCH DESIGN ...........................................................................….........................14

3.1 AREA OF STUDY............................................................................................................ 14

3.2 POPULATION AND SAMPLE........................................................................................ 14 

3.3 RESEARCH INSTRUMENT.............................................................................................14

3.4 PROCEDURE FOR DATA COLLECTION.........................................................................15

CHAPTER FOUR

4.0 DATA ANALYSIS AND PRESENTATION........................................................................16

CHAPTER FIVE 

5.0  SUMMARY.......................................................................................................................17

5.1 CONCLUSION..................................................................................................................18

5.2 RECOMMENDATION.......................................................................................................19

REFERENCE.....................................................................................................................20

Appendix.......................................................................................................................... 21

CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The concept and definition of leadership and style may differ from one person, or situation, to the other. The word “leadership” has been used in various aspects of human endeavor such as political, business, academic, social works, etc previous views about leadership show it as personal ability. Messick and Kramer (2004) argued that the degree to which the individual exhibits leadership traits depend not only on his characteristics and personal abilities, but also on the characteristics of the situation and environment in which he finds him. Since human beings could become members of an organization in other to achieve certain personal objectives, the extent to which they one active member depends on how they are convinced that their membership will enable them to achieve their predetermined objective. Therefore, on individual will support an organization if he believes that through it his personal objectives and goals could be met, if not the personal interest will decline. Leadership style in an organization is one of the factors that play significance role in enhancing or retarding the interest and commitment of the individuals in organization. Thus Glanz (2002) emphasis the need of a manager to find his leadership style. Among the objectives of any small enterprise one profit making and attainment of maturity and liquidity status. In the pursuit of these objectives, enterprises allocate scarce resources to competing ends. In the process they provide employment, provide goods and services, purchase goods and services and thus, contribute to the growth of the society and economy at large.

Unamaka (1998) observes that in most Nigeria small scale setting, the effectiveness of this process is greatly determined by the availability and access to personnel, finance, machinery, raw material and possibility of making their goods and services available to their immediate community and the nation at large. The extent to which members of an organization contribute in harnessing the resources of the organization equally depends on how well the managers (leaders) of the organization understand and adopt appropriate leadership style in performing their roles as manager and leaders. Thus, efficiently in resources mobilization allocation, utilization and enhancement of organizational performance depends, to a large extent, on leadership. On leadership style, among other factors. Akpala (1998) identifies attitude to work leadership style and motivation as some of the factors that exert negative on organization performances in Nigeria. Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) in 2008, reports that most small and medium scale business in Nigeria died before their fifth anniversary. Ashibogwa (2008) notes that one of the reasons for this high failure is lack market research to confirm demand and assess situation of proposed offering as well as maintaining high level of customer patronage inappropriate leadership style could be one of the reasons for high failure of small enterprise.

1.2   STATEMENT OF THE PROBLEM

To evaluate how leadership style impact productivity.

To determine the various types of leadership applied in the organization.

To ascertain the relationship between leadership and employee expectation.

1.3   PURPOSE OF STUDY

To know what would be the impact of management and staff relationship to organization productivity.

To know how leadership style affect productivity.

To know the extent works will perform well allow to participate in decision making.

1.4   RESEARCH QUESTIONS

This research work intends to answer the following questions

How does leadership style affect productivity?

What is the various leadership style applied in the organization?

What are the factors that affect the style of leadership a manager adopts?

1.5   STATEMENT OF THE HYPOTHESIS

H: The leadership style practiced in an organization has a relationship with employees’ expectations.

Hi: The leadership style practiced in organization does not have a relationship with employees’ expectation.

1.6   SIGNIFICANCE OF THE STUDY

This study is important because it will be useful in the following ways:-

The management, it will help them to renew their leadership style and apply the most appropriate one. For scholars, it will provide a basic for further research.

 

1.7   LIMITATIONS OF THE STUDY

This study is limited to the impact of effective leadership styles on organizational 

growth(a case of Kebbi home savings and loans ltd B/Kebbi).It entails some limitation 

especially in the field of data collection. The study is restricted to only Kebbi home savings and loans ltd B/Kebbi. 

1.8   DEFINITION OF TERMS

Employees: A person employed for wages or salary, especially at nonexecutive level. 

Leadership: The action of leading a group of people or an organization, or the ability to do this. 

Subordinate: A person under the authority or control of another within an organization. 

Performance: The action or process of performing a task or function. 

CHAPTER TWO

2.0  REVIEW OF RELATED LITERATURE

In the literature, leadership has been identified as an important subject in the field of organizational behavior. Leadership is one with the most dynamic effects during individual and organizational interaction. In other words, ability of management to execute “collaborated effort” depends on leadership capability. Lee and Chuang (2009), explain that the excellent leader not only inspires subordinates potential to enhance efficiency but also meets their requirements in the process of achieving organizational goals. Stogdill(1957), defined leadership as the individual behavior to guide a group to achieve the common target. Fry (2003), explains leadership as use of leading strategy to offer inspiring motive and to enhance the staff’s potential for growth and development. Several reasons indicate that there should be a relationship between leadership style and organizational performance. The first is that today’s intensive and dynamic markets feature innovation-based competition, price/performance rivalry, decreasing returns, and the creative destruction of existing competencies (Santora et al., 1999; Venkataraman, 1997). Studies have suggested that effective leadership behaviours can facilitate the improvement of performance when organizations face these new challenges (McGrath and MacMillan, 2000; Teece, Pisano and Shuen, 1997). On the other hand, organizational performance refers to ability of an enterprise to achieve such objectives as high profit, quality product, large market share, good financial results, and survival at pre-determined time using relevant strategy for action (Koontz and Donnell, 1993). Organizational performance can also be used to view how an enterprise is doing in terms of level of profit, market share and product quality in relation to other enterprises in the same industry. Consequently, it is a reflection of productivity of members of an enterprise measured in terms of revenue, profit, growth, development and expansion of the organization.

Mehra, Smith, Dixon and Robertson (2006) argue that when some organizations seek efficient ways to enable them outperform others, a longstanding approach is to focus on the effects of leadership. Team leaders are believed to play a pivotal role in shaping collective norms, helping teams cope with their environments, and coordinating collective action. This leader-centered perspective has provided valuable insights into the relationship between leadership and team performance (Guzzo and Dickson, 1996). Some studies have exploredthe strategic role of leadership to investigate how to employ leadership paradigms and use leadership behaviour to improve organizational performance (Judge, Bono, Ilies, and Gerhardt, 2002; Judge and Piccolo, 2004;Keller, 2006; McGrath and MacMillan, 2000; Meyer and Heppard, 2000; Purcell, Kinnie, Hutchinson and Dickson, 2004; Yukl, 2002). This is because intangible assets such as leadership styles, cultureskill and competence, and motivation are seen increasingly as key sources of strength in those firms that can combine people and processes and organizational performance (Purcell et al., 2004). 

Previous studies led the expectation that leadership paradigms will have direct effects on customer satisfaction, staff satisfaction, and financial performance. In general, however, the effects of leadership on organizational performance have not been well studied, according to House and Aditya‟s review (1997), who criticised leadership studies for focusing excessively on superior-subordinate relationships to the exclusion of several other functions that leaders perform, and to the exclusion of organizational and environmental variables that are crucial to mediate the leadership-performance relationship. Another problem with existing studies on leadership is that the results depend on the level of analysis. House and Aditya (1997), distinguished between micro-level research that focuses on the leader in relation to the subordinates and immediate superiors, and macro-level research that focuses on the total organization and its environment. Other scholars have also suggested that leaders and their leadership style influence both their subordinates and organizational outcomes (Tarabishy, Solomon, Fernald, and Sashkin, 2005).           Fenwick and Gayle (2008), in their study of the missing links in understanding the relationship between leadership and organizational performance conclude that despite a hypothesised leadership-performance relationship suggested by some researchers, current findings are inconclusive and difficult to interpret.From this review of related literature, it is evident that although some scholars believe that leadership enhancesorganizational performance while others contradict this, different concepts of leadership have been employed in different studies, making direct comparisons virtually impossible. Gaps and unanswered questions remain. Consequently, the current study is intended to re-examine the proposed leadership-performance relationship and, thus, contribute meaningfully to the body of growing literature and knowledge in this area of study.

2.1 RELATIONSHIP BETWEEN LEADERS PERFORMANCE AND ORGANIZATIONAL PERFORMANCES

There is a considerable impact of the leadership styles on organizational performance. The leadership style influences the culture of the organization which, in turn, influences the organizational performance. Klienet al (2013) proved this fact by using four factor theory of leadership along with the data collected from 2,662 employees working in 311 organizations. The organizational culture and performance are related to the type of leadership style (Klein, et al., 2013). 

2.2   THEORIES OF LEADERSHIP

Among the various theories of leadership and motivation relating to effective organizational change management, perhaps the most prominent is the transformational-transactional theory of leadership. As explained in Saowalux and Peng (2007), Burns (1978), conceptualizes two factors to differentiate “ordinary” from “extraordinary” leadership: transactional and transformational leadership. Transactional leadership is based on conventional exchange relationship in which followers‟ compliance (effort, productivity, and loyalty) is exchanged for expected rewards. In contrast, transformational (extraordinary) leaders raise followers‟ consciousness levels about the importance and value of designated outcomes and ways of achieving them. They also motivate followers to transcend their own immediate self-interest for the sake of the mission and vision of the organization.

2.3    TRANSACTIONAL LEADERSHIP

Transactional leadership involves an exchange process that results in follower compliance with leader request but not likely to generate enthusiasm and commitment to task objective. The leader focuses on having internal actors perform the tasks required for the organization to reach its desired goals (Boehnke et al, 2003). The objective of the transactional leader is to ensure that the path to goal attainment is clearly understood by the internal actors, to remove potential barrier within the system, and to motivate the actors to achieve the predetermined goals (House and Aditya, 1997).

2.4   TRANSFORMATIONAL LEADERSHIP

The difference between transformational and transactional leadership lies in the way of motivating others. Transformational leaders’ behavior originates in the personal values and beliefs of the leader and motivates subordinates to do more than expect (Bass, 1985). Burns (1978), identified transformational leadership as a process where, “one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and moral Skills

2.5   LEADERSHIP SKILLS

The outcomes from leadership quality consist of three measurable factors:-

Effectiveness (reflects the leader’s efficacy in achieving organizational outcomes, objectives, goals and subordinates needs in their job)

Satisfaction (reflects the degrees to which subordinates are satisfied with their Leader’ s behavior and the leader works with others in a satisfactory way)

Extra Effort (reflects the degrees to which the leader can increase Subordinates’ desire to succeed and subordinates exert effort higher than their normal rate)

2.6   WORK PERFORMANCE

The success of any work is usually stated in terms of meeting three major objectives: completion on time, completion within budget, completion at the desired level of quality or technical specification [Tukel and Rom. 2001: Xiao and Proverbs, 2003).

The framework of this study is guided by the various leadership theories abound in literature. These range from the trait theories that emphasize certain personal qualities and characteristics as basis for successful leadership; style theories that put emphasis essentially on a leader’s behavior at work: contingency theories that emphasize settings which include characteristics of the employees, the nature of the task they perform, and characteristics of the organization: to the theory of distributed readership, which emphasizes what one does and not who one is, as the basis for successful leadership. The theories argue that leadership at all levels matters and must be drawn from, not just be added to individuals and groups in organizations, from the foregoing, it is obvious that while some scholars believe that leadership enhances organizational performance while others contradict this, different concepts of leadership have been employed in different studies, making direct comparisons virtually impossible.