The Impact of Leadership Style on Employee Performance of SME’s in Nigeria a Case Study of Total Facilities Management Limited in Abuja
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To Identify the dominant leadership style(s) used by Total Facilities Management Limited in Abuja.
- To Examine the relationship between leadership style and employee performance in Total Facilities Management Limited in Abuja.
- To Assess the factors that influence the choice of leadership style in Total Facilities Management Limited in Abuja.
- To Evaluate the effectiveness of the leadership style(s) used by Total Facilities Management Limited in Abuja in enhancing employee performance.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
INTRODUCTION
Leadership, as Kotler (1990) argues, is more of establishing direction, aligning people, and motivating and inspiring others. Leadership is concerned with long-term outcomes and future goals of the organizations. Leadership is more about people and less about tasks. Leaders often put many of these skills and interests to good use but often to better effect because they focus on areas such as discovering solutions (not problems), managing changings, excelling in spite of organizational structure, and inspiring personnel to achieve their goals. Leaders achieve objectives through energized and excited subordinates who share their passion, vision, and direction. Good leaders feel comfortable challenging the status quo and finding efficient as well as long-term solutions to challenges. Good leaders develop through a never-ending process of self-analysis, and the utilization of education, training, and experience to improve. The best leaders are continually working and studying to improve their leadership skills (Clharehbaghi and Mcmanus, 2003). Gil et al. (2005) present a different perspective. They view that both leaders and managers employ a mix of leadership and management behaviors appears much closer to reality so that they must combine the necessary skills to direct day-to-day affairs effectively (a role traditionally associated with management) while at the same time anticipating and managing change (leadership main role). This leads to a simple understanding that managers of contemporary and future organization can not just rely on their management and technical skills which are usually referred to as hard skills (Koh and Low, 2008). They will have to be more conversant with soft or leadership skills. To be successful in the modern business world, managers will have to find a balance between their management and leadership abilities so that they can not only fulfill the performance criteria but also can create a harmony within their team to build successful and futuristic organizations. This debate does not at all aim to prove that managers are not better than leaders or that only leadership qualities are the ultimate solution to modern business challenges. The authors argue that management alone is not an answer. Managers should tie the management with leadership so that they can enjoy the benefits of both worlds. McCuen (1999) asserts that leadership consists of the knowledge and skills that the individual possesses and employs to persuade others to enthusiastically work toward the completion of the plan of action that the leader has established. According to Goffee and Jones (2000), effective leadership requires “being you with skill”. Thamhain (2004) takes a distinct stand and argues that effective team leaders are social architects who recognize the interaction of organizational and behavioral variables and can cultivate a climate of active participation, accountability and result- orientation. Leadership in organizations requires sophisticated skills in leadership, administration, organization, and technical expertise (Thor and Ogunlana, 2006). Mullins (2007) argued that leadership is at its best when the vision is strategic, the voice persuasive and the results tangible. In the study of leadership, an exact definition is not essential but guiding concepts are needed. The concepts should be general enough to apply to many situations, but specific enough to have tangible implications for what we do. According to Peretomode and Peretomode (2001) leadership is the ability of a person in a group to persuade, inspire or influence the attitudes, behaviours and actions of others or the activities of the organized group so that the group members can work cooperative and enthusiastically towards goal achievement, as David, (1967) points out, leadership is the human factors, which binds a group together. It also motivates the group towards goals. Management such as planning, organizing and decision-making are “dormant cocoons” until the leader triggers the power of motivation in people and guides them toward goals. Leadership, therefore, is not an end in itself but a means to an end – a means to motivate workers to increase productivity and help them gain increased employee job satisfaction. Guest (1996) leadership is about influencing behaviour of others. Otusanya (2004) in his article, examined Stodgill observation in leadership that; leadership has been defined in terms of traits, behaviour, influence, interaction patterns, role relationships and occupation of an administrative position. Leadership according to Cole (1996:51) is a dynamic process in a group whereby one individual influences the others to contribute voluntarily to the achievement of group task in a given situation.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
It is important to ascertain that the objective of this study was to ascertain The Impact of Leadership Style on Employee Performance of Sme’s in Nigeria a Case Study of Total Facilities Management Limited in Abuja. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the Impact of Leadership Style on Employee Performance of Sme’s in Nigeria
Summary
This study was on The Impact of Leadership Style on Employee Performance of Sme’s in Nigeria a Case Study of Total Facilities Management Limited in Abuja. Three objectives were raised which included: To Identify the dominant leadership style(s) used by Total Facilities Management Limited in Abuja, to Examine the relationship between leadership style and employee performance in Total Facilities Management Limited in Abuja, to Assess the factors that influence the choice of leadership style in Total Facilities Management Limited in Abuja and to Evaluate the effectiveness of the leadership style(s) used by Total Facilities Management Limited in Abuja in enhancing employee performance. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected from Total Facilities Management Limited in Abuja. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In conclusion, the study on the impact of leadership style on employee performance in SMEs in Nigeria, with a case study of Total Facilities Management Limited in Abuja has revealed valuable insights. The study found that leadership style has a significant impact on employee performance in SMEs in Nigeria. Transformational leadership was found to have a positive impact on employee performance, while autocratic leadership had a negative impact.
The study also found that other factors such as employee motivation, job satisfaction, and organizational culture played a significant role in employee performance. The study recommended that SMEs in Nigeria should adopt a transformational leadership style that encourages employee empowerment, provides opportunities for growth and development, and fosters a positive organizational culture.
Furthermore, the study recommended that SMEs in Nigeria should invest in employee training and development programs to enhance employee skills and knowledge, which would increase their job satisfaction and motivation levels. This, in turn, would lead to improved employee performance and organizational productivity.
Recommendation
Based on the findings of the study on the impact of leadership style on employee performance in SMEs in Nigeria, with a case study of Total Facilities Management Limited in Abuja, the following recommendations are proposed:
- Adopt a Transformational Leadership Style: SMEs in Nigeria should adopt a transformational leadership style that encourages employee empowerment, provides opportunities for growth and development, and fosters a positive organizational culture. This leadership style has been found to have a positive impact on employee performance.
- Invest in Employee Training and Development Programs: SMEs in Nigeria should invest in employee training and development programs to enhance employee skills and knowledge, which would increase their job satisfaction and motivation levels. This, in turn, would lead to improved employee performance and organizational productivity.
- Foster a Positive Organizational Culture: SMEs in Nigeria should foster a positive organizational culture that promotes teamwork, communication, and mutual respect. This will create a conducive work environment that enhances employee motivation and job satisfaction
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