LEADERSHIP STYLE AND IT’S IMPACT ON ORGANIZATIONAL PERFORMANCE

Abstract

This project is designed to investigate leadership styles and its impact on organizational performance. The objective of this study is to determine whether workers are satisfied with his/her boss leadership style and if it leads to effective performance. In carrying out this study, the primary and secondary sources of data were employed. The primary source of data was questionnaire while the secondary data were textbooks, journal and the internet. The simple random sampling method was used to select respondents for the study and the simple percentage and chi-square were used in analyzing and testing the validity of data presented. It was found out among others from this study that there is a positive relationship between employee’s satisfaction and leadership styles that encourages employee’s participation in decision making in the organization. Based on the findings, it was therefore concluded that the leadership styles employed by leader will determine the performance of the employees. Based on the findings and conclusion of the study, it was therefore recommended among others that organization should create opportunity for workers training and development and leaders should show equity and fairness in dealing with employee.

TABLE OF CONTENTS

Title Page i

Certification ii

Dedication iii

Acknowledgement iv

Abstract v

Chapter One: Introduction

Background to the Study 1

Statement of the Research Problems 2

Research Questions 3

Research Hypotheses 4

Purpose pf the Study 5

Scope of the Study 5

Significance of the Study 6

Limitation of the Study 7

Definition of Terms

Chapter Two: Literature Review

Introduction to the Study 8

Qualities of a good Leader 8

Leadership Sources of Power 10

Various Theories of Leadership 11

Leadership Style 16

Effect of Leadership on Employees Performance 17

Summary of the Chapter 19

Chapter Three: Research Methodology

3.1 Introduction 21

3.2 Research Design 21

3.3 Population of the Study 21

3.4 Sample/Sampling Techniques 22

3.5 Instrument of Data Collection 22

3.6 Method of Data Collection 23

3.7 Method of Data Analysis 23

Chapter Four: Data Presentation, Analysis, Interpretation and Discussion

Presentation of Data 25

Analysis of Data 26

Test of Hypothesis/Interpretation of Data 38

Discussion of Findings 48

Chapter Five: Summary, Conclusion and Recommendations

Summary 51

Conclusion 52

Recommendations 52

References 54

Appendices 56

CHAPTER ONE

INTRODUCTION

Guinness Nigeria Plc, a subsidiary of the prestigious Diageo Plc, of the United Kingdom, was incorporated in 1967 with the building of a brewery in Ikeja the heart of Lagos. The brewery was the first outside Ireland and Britain. Other breweries were later opened over time in 1974, the Benin City brewery was established and Ogha brewery in 1982.

Leadership style as an aspect of management is very vital for the success of any organization. The quality of leadership can affect the behavior of the subordinates toward the achievement of the organization’s objectives. This is so because it is the leaders that carry out the planning, directing, coordinating and controlling of all activities in the organization in order to ensure that goals and objectives are achieved. Thus, when subordinates see their leaders in bad light, such perception will affect their performance and if the subordinates are satisfied with leader’s style, they will be effective in their duties.

It is in view of the above that the researcher chose this topic which investigates the impact of leadership style on organization performance through the survey of Guinness Nigeria Plc, Benin City.

STATEMENT OF RESEARCH PROBLEM

Workers in an organization have some needs to satisfy and the way they are made to satisfy these needs in the work place can affect the performance of the workers leadership of an organization is sometimes blind to certain things that induce the objectives of the organization. The style of leadership adopted by the leaders can greatly affect the performance of workers, especially in such leadership style, helps the subordinate in achieving their objective in the organization.

Thus, the leadership style of satisfaction with the leadership styles of his boss in meeting his needs can have impact on his performance in the organization.

However, leaders find it difficult to postulate their kind of styles to the workers and the organization in order to increase their organizational performance. Also, the rate of illiteracy also hinder the organizational performance.

The following questions are relevant for proper understanding of the study.

Does a worker’s satisfaction with his/her boss leadership style lead to effective performance?

How can leadership style geared towards the needs of employees motivate them to perform?

Does worker perception of their leader fairness leads to higher performance?

Does leadership style that allows workers to participate in the decision affecting them motivate them to higher performance?

Hypothesis I

Ho: A worker’s satisfaction with his/her boss leadership style will not lead to effective performance.

Hi: A worker’s satisfaction with his/her boss leadership style will lead to effective performance.

Hypothesis II

Ho: Leadership geared towards the needs of employees will not motivate them to perform.

Hi: Leadership geared towards the needs of employees will motivate them to perform.

Hypothesis III

Ho: Workers perception of their leadership fairness in dealing with subordinates will not lead to higher performance.

Hi: Workers perception of their leadership fairness in dealing with subordinates will lead to higher performance.

Hypothesis IV

Ho: Leadership style that allow workers to participate in decision affecting them will not lead them to higher performance.

Hi: Leadership style that allow workers to participate in decision affecting them will lead them to higher performance.

The study is aimed at attaining the following purposes:

To ascertain whether a particular style of leadership motivates workers to perform better.

To find out how leadership has affected subordinates performance in an organization.

To determine if there is any relationship between leadership and worker’s performance in an organization.

This study is limited to Guinness Nigeria Plc, Benin City. Respondents are expected to be drawn from the different categories of worker in all the departments in the organization. Issues covered in this study are the theories of leadership, types of leadership and the effect of leadership on worker’s performance.

SIGNIFICANCE OF THE STUDY

This study will enable the leadership of Guinness Nigeria Plc to see the impact which leadership style has on their employees or subordinates.

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

This research work will also be of relevance to individuals most especially students in the field of business studies as it will enlighten them on how to become efficient leaders.

Lastly, it is of great significant to the researcher because it has broadened his knowledge on the importance of leadership in an organization.

The following constraints were encountered in this study.

Lack of Current and Reliable Data: This was as a result of respondents withholding information because they are not willing to disclose organization’s strategy.

Lack of Access to Organization’s Document and Employees: It was not easy task to seek the views of employees in this busy schedules and getting access to document.

1.9 Definition of Terms

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

ii. Satisfaction: This are the contentment or pleasure a worker drives from his work.

iii. Leader: A person who influence and direct the affairs of others.