The Role of Leadership in Banking Performance
CHAPTERS ONE
Objective of the study
The objectives of the study are;
- To ascertain the relationship between leadership and banking performance
- To ascertain the role of leadership in banking profitability
- To ascertain whether leadership influences employee performance
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
A review of the leadership literature reveals an evolving series of „school of thought‟ from „Great Man‟ and „Trait‟ theories to „Transformational‟ leadership. Whist early theories tend to focus upon the characteristics and behaviours of successful leaders, later theories begin to consider the role of followers and the contextual nature of leadership. Great Man theories are based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term „man‟ was intentional since until the latter part of the twentieth century leadership was thought of as a concept which is primarily male, military and Western. This led to the next school of Trait Theories. Trait theories are associated with leadership that exist in abundance and continue to be produced. The theory assumes that human beings are born with inherited traits and the right combination of traits makes them a leader. They draw on virtually all adjectives in the dictionary which describe some positive or virtuous human attribute, from ambition to zest for life. Behaviourist theories concentrate on what leaders actually do rather than on their qualities. Different patterns of behaviour are observed and categorized as „style of leadership‟. This area has probably attracted more attention from practicing managers. Situational leadership sees leadership as specific to the situation in which it is being exercise. Whilst some situations may require an autocratic style, others may need a more participative approach. This is most practicable for bank management especially in this period of financial squeeze and global meltdown. It also suggests leadership styles at different levels in the same organization. Rudd (2007) in his study of leadership theory and in its application in the banking industry: “Found that in today’s complex world problems call for the combined expertise of multiple resources and assistants. For these reasons, strong emphasis is placed on promoting teamwork and strong leadership. Due to the complex challenges created by globalization and technological advances, it is imperative for organizations to solve problems efficiently and make the most of available resources. Leaders must recognize the creativeness of all organization’s members across multiple disciplines”. Contingent theory is a refinement of the situational viewpoint and focuses on identifying the situational variables which best predict the most appropriate or effective style to fit the particular circumstances. Transactional theory emphasizes the importance of the relationship between 6 leader and followers, focusing on the mutual benefits derived from a form of „contract‟ through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers. Transformational theory emphasizes change and role of leadership in envisioning and implementing the transformation of organizational performance. There are two critical factors that will make an organization such as a bank to be successful. These are character and capacity (leadership).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought challenge of the role of leadership in banking performance.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain The role of leadership in banking performance. 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 role of leadership in banking performance
Summary
This study was on The role of leadership in banking performance. Three objectives were raised which included: To ascertain the relationship between leadership and banking performance, to ascertain the role of leadership in banking profitability and to ascertain whether leadership influences employee performance. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected banks in Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up human resource managers, customer care officers, senior staff and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Overall, the purpose of this study was to review the leadership styles of managers and employee’s job performance in the banking sector in Nigeria. The results showed that transformational leadership style has a positive relationship with job performance and it is the most commonly leadership styles used by managers in the baking sectors. The findings of the study have therefore brought the researchers to summarize that transformational leadership style is the greatest type of leadership that improves better worker job commitment within the organization, indicating that practicing an effective leadership style within the banking sector improve employee’s job performance and overall job performance within the employees in the banking sector in Nigeria.
Recommendation
For the banks to deliver good returns to the shareholders and enable economic growth which financial intermediation engenders in liberal economies there is the need for improved regulation and monitoring to ensure that the board and management of the banks comply with codes of good corporate governance. Above all, for effective leadership, there is need for good combination of teamwork, right organization power and appropriate style of leadership.
References
- Albion, M.J., &Gagliardi, R. E. (2007). A study of transformational leadershiporganizational change and job satisfaction. In Proceedings of the 7th Industrial &OrganizationalPsychology Conference and 1st Asia Pacific Congress on Work and OrganizationalPsychology: Better Work. BetterOrganizations. Better World (pp. 1-5). Australian Psychological Society [2].
- Amerioun, A., &Mahmoudi, N. (2011). Hospital manager’s leadership style from staffs [3].
- Viewpoint and its relationship with hospital indicators. MilMed Journal, 13(3), 125–132. [4].
- Armstrong M, Baron A (1998). Performance Management, The new Realities, Inst. Personnel Dev., London. [5].
- Avolio, B. J., & Bass, B. M. (1995).Individual consideration viewed at multiple levels of analysis: A multi-level framework for examining the diffusion of transformational leadership. The Leadership Quarterly, 6(2), 199-218. [6].
- Bass, B.M. (1985), “Leadership and Performance beyond Expectations,” Free Press, New York [7].
- Bass, B.M., &Avolio B.J. (1990).The implications of transactional and transformational Leadership for individual, team, and organizational development. Research in Organizational Change and Development, 4, 231–272 [8].
- Bass, B. M. and R. M. Stogdill (1990).Handbook of leadership.A Survey of and Research. New York, Free press LTD [9].
