Leadership Style and Employee Performance of Selected Manufacturing Firms in Lagos State, Nigeria: A Case Study of Guinness Nigeria Plc and Fan Milk Nigeria Plc
OBJECTIVES OF THE STUDY
The main objective of this study is to examine the influence of leadership style on organization performance. The subsidiary objectives include the following:
- To find out the relationship between leadership styles and organizational performance.
- To assess the effect of the response of leadership style to high-performance variables in promoting maximization of the organization’s objectives.
- To find out the effect of subordinates’ perceptions of their managers’ leadership style on their relationship with management.
- To examine the extent to which the size of an organization influences managers’ leadership style.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
This section of the research looked at all of the accessible and related literature. From both a theoretical and empirical standpoint, it attempted to gain insight into leadership style and its impact on staff performance. The conceptual framework was depicted in the end.
The Concept of leader and Leadership
Leadership and leader defined
Because leadership is complicated, and it is researched in a variety of ways, there is no common definition of leadership.
The use of non-coercive and symbolic influence to direct and coordinate the activities of members of an organized group toward the achievement of collective objectives is known as leadership. Wagner and Hollenbeck (2010) (Wagner and Hollenbeck, 2010) (Wagner and Hollenbeck, 2010).
The Handbook of Leadership, an important source of leadership theory and research, describes leadership as a group’s interaction. Leaders are change agents, those whose actions have a greater impact on others than other people’s actions have on them. When one group member influences the motivation or abilities of others in the group, this is referred to as leadership. The concept of leadership says that it entails the use of power and that it may be applied to any interpersonal interaction. The necessity of being a change agent and being able to influence followers’ behavior and performance is a second aspect in the definition. Finally, the term emphasizes achieving objectives. Individual, collective, and organizational goals may all be addressed by a successful leader.
The sole definition of a leader, according to management expert Peter Drucker, is someone who has followers. “Leadership is influence – nothing more, nothing less,” says John C Maxwell. According to John W. Gardner, leadership is the process of persuasion and example by which an individual (or leadership team) motivates a group to behave in accordance with the leader’s purpose, or the shared goals of everyone.
Leadership happens when one person persuades others to achieve predefined goals. It is also the capacity of a superior to influence the behavior of a subordinate or group and persuade them to do a certain action (Chester Bernard)
Leadership is the act of persuading and guiding others in such a way that they will obey, respect, and cooperate loyally in the pursuit of common goals. (Bernard Chester), The art of encouraging a group of individuals to work together to achieve a shared objective is known as leadership. Effective leaders are those who boost their company’s bottom lines. Leadership is connected to performance in business.
A winning combination of personal attributes and the capacity to think and act as a leader, a person who controls the actions of others for the benefit of everyone, is leadership. Even if they are the only person they are guiding is themselves, anyone can be a leader (Debral and James, 1994).
- Leadership is the act of persuading and guiding others in such a way that they will obey, respect, and cooperate loyally in the pursuit of common goals. (Bernard Chester), Leadership is the art of persuading a group of people to take action toward a common goal. Yukl (2003) offers the following definitions of leadership:
- An individual’s action in leading the activities of a group toward a common purpose (Hemphill & Coons, 1957)
- The significant increase above and beyond mechanical adherence to the organization’s usual directions (Katz & Kahn, 1978)
- Used when people deploy institutional, political, psychological, and other resources in order to stimulate, engage, and gratify followers’ motivations (Burns, 1978)
- The process of directing an organized group’s efforts toward a common purpose (Burns, 1978)
- The process of directing an organized group’s efforts toward a common purpose (Rauch &Behling, 1984)
- A method of providing collective effort a goal (meaningful direction) and for voluntary effort to be exerted in order to attain that objective (Jacobs & Jaques, 1990)
- The capacity to move outside of one’s society and initiate adaptive evolutionary change processes (Schein, 1992)
- The process of making meaning of what people are doing together in order for them to comprehend and commit to it (Drath & Palus, 1994)
- It’s about defining visions that embody principles and creating an atmosphere that allows things to happen (Richards & Engle, 1986)
- An individual’s capacity to influence, motivate, and empower others to contribute to the organization’s performance and success. (House et al., 1999).
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
This section of the research looked into the data collection techniques and their reasons. It covers the following topics: research methodology, research design, study area, population, sample size and selection techniques, data collecting instruments and procedures, data management, data processing, data analysis, and variable scope.
Research Design
The approach to be used for gathering relevant data and conducting objective and cost-effective analysis is known as research design. It’s the conceptual framework that lays out the techniques and processes for gathering and evaluating data and ensuring that it’s relevant to addressing an issue (Mark et. al, 2009). Explanatory and descriptive research approaches were utilized to maximize the study’s efficiency and generate maximum information.
Similarly, this research employed a mix of quantitative and qualitative methods. The qualitative technique is employed to describe the in-depth significance of the built facts, as well as the close connection between the explored situational restrictions and the inquiry’s shape. A quantitative approach was also used to measure the fundamental connection between empirical observation and mathematical expression of attributes for a systematic investigation of the study’s determinants and quantitative properties, phenomena, and their relationships, as well as to measure the fundamental connection between empirical observation and mathematical expression of attributes. (Kothari, 2004; Mark et. al, 2009).
Population and Sampling Techniques
Research Population
The study’s participants include Manufacturing firms employees, managers, and supervisors. Manufacturing firms has a total workforce of 545 people. Due to the difficulties of geographical accessibility of the organizations’ field locations, as well as the high cost and time requirements, it is hard to study the whole population. And this is due to the fact that the offices contain all of the many jobs that make up the companies. Project office staff in the company were removed due to the aforementioned factors, and only those stationed in Lagos State would be considered. A total of 144 Lagos State employees will be used as the target demographic from whom sample populations will be recruited.
CHAPTER FOUR
RESULTS AND DISCUSSIONS
This chapter presents firsthand information that was collected mainly via questionnaires. The findings are presented, analyzed and interpreted using different diagrammatic as well as descriptive statics tools.
Response Rate
Out of 106 questionnaires distributed, out of which all 101 were valid responses. As discussed in chapter three, the sample size for the research was106. This represents 95.28 % of the sample which was more than adequate for data analysis.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter deals with the summary of the major findings of the study, conclusions reached, and recommendations forwarded on the basis of the conclusions.
Summary of Findings
The study’s goal was to look at the impact of leadership style on organizational performance using the Manufacturing firms as an example. Three research questions prompted the study: what leadership styles are utilized in the chosen firm, how employees view their performance, and what influence does leadership style have on employee performance.
In this study, an explanatory research design was employed to sample 106 individuals from a study population of 144 Manufacturing firms employees using stratified sampling procedures. The primary data from the sample was collected using a standardized questionnaire. The leadership style assessment was taken from www.sagepub.com. The performance of employees was evaluated on a scale of one to ten (Pradhan and Xavie). The information gathered from the respondents was evaluated using descriptive and statistical methods, and the results were presented in the form of tables and charts. Pearson’s Correlation and Regression analysis were performed to determine the association between leadership styles and employee performance. The following are the primary conclusions of the study based on these dimensions;.
Conclusions
The goal of this study was to see how different leadership styles affected employee performance at The Manufacturing firms. The goal of the study was to see how the three types of leadership styles, democratic, autocratic, and laissez-faire, affected the task and context performance of the employees. According to the literature, the manager’s leadership style has a significant impact on staff performance. In order to address the three research questions that this study attempted to answer, the researcher drew the following conclusions based on a synthesis of the findings of this study.
Manufacturing firms employs democratic, authoritarian, and laissez-faire leadership styles, according to the research. This finding backs up contingency theories, which say that there is no one-size-fits-all approach to leadership and that each leadership style should be tailored to the circumstances. The survey also indicated that managers primarily used democratic leadership style, followed by laissez-faire leadership style. Supervisors include workers in decision-making and encourage them to take on more responsibility by communicating with them often and supportively.
In terms of employee performance, the findings indicated that the three firms under investigation had high levels of employee performance. Employees are kind, hardworking, and passionate. They do their given tasks, fulfill deadlines, and maintain excellent work standards in order to satisfy their department’s objectives.
Democratic leadership style has a favorable impact on employee performance, as indicated in the research summary. This suggests that when a democratic method is used, employee performance improves. This outcome was in line with previous research (Basit, et al (2017); Ojokuku et al. (2012)).
The findings of this study also suggest that autocratic leadership has a negligible detrimental impact on employee performance. This contradicted the findings of other studies (Anyango (2015) and Belete (2015)).
Employee performance is positively influenced by laissez-faire leadership, implying that when laissez-faire leadership is used, employee performance will improve. This was also supported by the findings of previous investigations (Basit et al., 2017). When employees understand their tasks and have good analytical skills, and their supervisors have high confidence in them, a laissez-faire leadership style is more acceptable.
The majority of staff are excellent performers. This means that the work is of extraordinary quality, with significant contributions deserving of particular acknowledgment. And the remainder of them operate with minimal supervision and routinely deliver high-quality work. Furthermore, the more experienced leadership style combines the three approaches depending on the scenario. Furthermore, these leaders reflect a hybrid leadership style component of leadership growth. Based on the outcomes of the study, it can be inferred that leaders should adopt a more democratic leadership style in order to achieve the maximum levels of employee performance.
Recommendations
In light of the conclusions of this study, Manufacturing firms executives are employing the appropriate mix and application of democratic, autocratic, and laissez-faire leadership styles. The researcher advises that the correct features of the three leadership styles be continued to be applied in order to get the greatest results, depending on the scenario.
- It is a simple reality that businesses require highly qualified leaders who can guide employees to achieve the organization’s objectives. According to this study’s conclusions, a laissez-faire leadership style has a stronger impact on staff performance. It is advised to use a more laissez-faire leadership style to maintain the spirit of a high-performing team.
- The primary goal of this study was to look at the impact of leadership style on employee performance. The favorable relationship between leadership styles and performance aids in increasing organizational productivity. Organizations require highly qualified leaders to guide their people through everyday operations and achieve corporate objectives.
- The adoption of the correct combination and application of the three leadership styles was unavoidable in light of the findings of this study. Managers at the firms advised that the correct qualities of the three leadership styles be continued to be applied in order to get the best results, depending on the scenario.
- It is a simple reality that businesses require highly qualified leaders who can guide employees to achieve the organization’s objectives. Leaders and supervisors should be aware of what is essential to their subordinates and the business as a whole, and encourage people to think creatively about the possibilities and difficulties they face. Supervisors should have their own goals and plans for developing followers, working in groups, and championing teamwork spirit. According to the conclusions of this study, democratic leadership has a positive impact on employee performance. It is suggested that more democratic leadership styles be used in order to maintain the spirit of a high-performing team.
- Staff performance will suffer as a result of the supervisor’s assertive leadership style, which will reduce employee performance. As a result, they should aim to steer clear of this leadership style. Supervisors, on the other hand, should set clear expectations for their subordinates and set goals and criteria for them to meet.
- Organizations can provide specific training programs or professional mentorship for supervisors and leaders. To get the most out of such programs and make leadership styles more successful, the leadership training program may be tailored to meet the needs of both employees and organizations.
- Supervisors should clarify expectations and provide goals and standards to be achieved for the followers. They should not wait until the problems become more serious and then act/ take action they should monitor performance on timely basis. Whenever a problem arises, supervisors should try to intervene into the issues as soon as possible.
- Supervisors should not make decisions without inviting suggestions from subordinates.
- Employees should also be allowed to make their own decision independently without the intervention of their supervisors
- The managers are highly recommended to take time and discuss with their subordinates, accept their feedbacks and comments and react on it
- Rewards and punishments should not be necessarily used as a means of motivation.
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