Effects Of Leadership Style On Organizational Effectiveness

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The term “leadership” is a complex one in every organization, and over the years it has captured the attention of individuals, organizations, and the researchers. Leadership is defined as the process of organizing a group of people to achieve a common goal. In other words, it is forces that initiate action among people to guide, direct, maintain and unify effort towards common goals. The leadership forms that are being focused in this study are: Autocratic, Laissez-faire, Participative, Organisational and Bureaucratic leadership style. There is no organization that can survive without quality leadership; as a matter of fact the quality of the leadership in an organization will ultimately determine the effectiveness of that organization. The study is to examine the perception of effect of leadership style in an organization. What are the functions and dysfunctions? To know the perception of staff about the leadership style. The study is focused on the staff of Synergy Healthcare Limited alone. Considering the limited time for the research and the cost, using the whole population of the company staff which amounted to 176 in total would be impracticable. Therefore, a representative of 88 was arrived at with the application of Taro Yamane formula. It is deduced from the findings of this study that the leadership styles are bound to change as the people and situation change. Data from the studies is presented showing that participative leadership effects, traits and wide style range are essential to promote effective leadership. This style emphasized that management offers guidance to its teams and department while accepting input from individual staff members. Leaders reserve the right to make final decision but encourage feedback, ideas, and suggestions from all employees. The recommendations include; the management of an organization should endeavour to carry subordinates along in decision making.


Title Page                                                                                          ii

Approval Page                                                                                  iii

Dedication                                                                                         iv

Acknowledgement                                                                            v

Abstract                                                                                            vi

Table of Contents                                                                             vii


1.0    Introduction                                                                           1

1.1    Background of the Study                                                      1

1.2    Statement of the problem                                                     7

1.3    Objective of the Study                                                           9

1.4    Research Question                                                                9

1.5       Research hypothesis                                                             10

1.6       Significance of the study                                                       11

1.7       Scope of study                                                                       12

1.8       Limitation of the study                                                          13

1.9       Definition of Terms                                                                14

References                                                                             16

CHAPTER TWO:         

Review of Related Literature                                                          17

2.1       Theoretical Framework                                                         17

2.2       Behavioural Theory/Approach                                             17

2.2.1  Autocratic Leader and His group                                         18

2.2.2  Democratic Leader and His group                                       18

2.2.3  Laissez-Faire Leader and His group                                    19

2.3       Conceptual Framework                                                         33

2.3.1  Structural Framework                                                           33

2.3.2  Human Resource Framework                                               33

2.3.3  Political Framework                                                               34

2.3.4  Symbolic Framework                                                             34

2.4       Reviews According to the Objectives of the Study              35

2.4.1  What is Leadership                                                                36

2.4.2  Leadership and effectiveness                                               40

2.4.3  Organizational Culture and effectiveness                            44

2.4.4  Leadership and organizational culture                                48

2.4.5  Environment                                                                           54

2.4.6  Goals and values                                                                   54

2.4.7  Roles and relationship                                                          55

2.4.8  Culture and climate                                                              56

2.4.9  Ingredients of Leadership                                                     58

2.4.10               Who is a Leader                                                            60

2.4.11              Skills, qualities and functions of effective leader      64

2.5       Job Effectiveness                                                                   67

2.6       Job Satisfaction Theories                                                      69

2.7       Effects of Leadership Styles on Job Effectiveness               71

2.8       Brief Explanation on Position Impact Variables                  71

2.9       Negative Impact Variables                                                    72

2.10    Business Crisis                                                                      73

2.11    Two Categories of Business Crisis                                       74

2.12    Crisis Management                                                                76

References                                                                             78


Research Design and Methodology                                                79

3.1       Research Design                                                                    79

3.2       Area of the Study                                                                   79

3.3       Sources of Data                                                                     80

3.3.1          Primary Data                                                                     81

3.3.2          Secondary Data                                                                 81

3.4       Population of the study                                                         82

3.5   Sampling Size Determination and Sampling 

Techniques                                                              82

3.6   Methods of Data Collection                                      84

3.7   Validity of the Instrument                                                84

3.8   Reliability of the Instrument                                    85

3.9   Methods of Data Presentation and Analysis             85

        Reference                                                                         86


4.1    Data Presentation and Analysis                                           87

4.2    Test of Hypothesis                                                                 103

4.3    Discussion of Findings                                                          107            


Summary of Findings, Conclusions and Recommendation     109

5.1       Summary of Findings                                                             109

5.2       Conclusion                                                                                       110

5.3       Recommendations                                                                 111

5.4       Suggestion for Further Research                                          112

Bibliography                                                                           113

Appendix I                                                                              115

Appendix II                                                                            116

Appendix III                                                                           119

Appendix IV                                                                          121

Appendix V                                                                            123








The concept and definition of leadership 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 politics, businesses, academics, and social works and had been the focus of research and discussion of scholars in a variety of disciplines. Previous views about leadership show it as personal ability. Literacy authors and philosophers provided the initials descriptions and guidance for leader of their time. With the evolution of social sciences, scholars of political science, anthropology, sociology, psychology and business have all explored the nature of leaders and the process of leadership. Terry (1958; 20) opines that leadership between a superior and a subordinate “triggers a person’s will-to-do and transforms lukewarm desires for achievement into burning mission for successful accomplishments. This is an essence of good leadership especially by a human resources manager. According to McClelland (1961; 10), a strong drive for achievement is an important attribute for motivation and the quality which characterizes outstanding leaders. Mc Gregory (1960; 15) mentions four main variables of the leadership, name:

·        The follower’s attributes needs and personal characteristic.

·        The organization characteristic such as its basic purpose, habits, customs, traditions, structure, and nature of task performed.

·        The leader’s characteristics,

·        The Social, economic, and political milieu.

He does not however explain how such variables affect one another. Tennenbaum (1960) who connects them by the idea of influence has also used these types of variables. According to him leadership is defined as the “inter-personal influence exercised in the situation and directed through the communication process towards the attainment of goals”.

Weihdrich and Koontz’s (1994) described leadership “as influence, that is, art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals”. They added “leaders act to help a group attain objectives through the maximum application of its capabilities”. They do not stand behind a group to push and prod; they place themselves before the group as they facilitate progress and inspire the group to accomplish organizational goals. In all of these definitions, there is the implication that leadership is concerned with the process of purposive behaviour. In management, the term leadership is concerned with guiding orders or the activities of the followers towards predetermined objectives or goals. Therefore, leader’s act must be goal-oriented. He must use his influence to achieve some desire goals through his followers.

The qualities of leaders and process of leadership have long been considered an important field of study, and from the beginning of social psychology, researchers have repeatedly explored this area. Early speculations about the personality trait or qualities of the successful leader has largely given way to the study of actual leadership behaviour analysis of situation factors, such as the type of group and the nature of group’s task. Leadership has been described as a process of influence on a group and in a particular situation, at a given point in time and in a specific act of circumstance that stimulate people to strive willingly to attain organizational objectives. Leadership styles as will be used here refers specifically to the pattern of philosophies, beliefs, attitude, feelings and assumptions an individual has about leadership which influence how, as a manager, he actually behaves when managing people. More specifically, it is a set of expectations an individual has as to use his leadership position to involve him and to involve people in the achievement of results. Yukl, Gordon & Taber, (2002; 12) opines that effective leaders guide & facilitate the work to accomplish tasks & objectives while at the same time maintaining cooperative relationships and teamwork. Mesick and Kramer (2004;31) argued that the degree to which the individual exhibits leadership traits depends not only on his characteristics and personal abilities, but also on the characteristics of the situation and environment in which he finds himself. Since human beings could become members of an organization in other to achieve certain personal objectives, the extent to which they are active members depends on how they are convinced that their membership will enable them to achieve their predetermined objectives. Therefore, an individual will support an organization if he believes that through it his personal objectives and goals could be met; if not, the person’s interest will decline. Leadership style in an organization is one of the factors that play significant role in enhancing or retarding the interest and commitment of the individuals in the organization. Thus, Glantz (2002; 22) emphasizes the need for a manager to find his leadership style. Among the objectives of any enterprise are 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. Unamka (1995) observes that in most Nigerian enterprise settings, the effectiveness of this process is greatly determined by the availability of and access to personnel, finance, and possibility of making their goods and services available to their customers 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 managers and leaders. Thus, efficiency in resources mobilization, allocation, utilization and enhancement of organizational effectiveness depends, to a large extent, on leadership style, among other factors. Akpala (1998) identifies attitude to work, leadership style and motivation as some of the factors that exert negative effect on organizational effectiveness in Nigeria.

In the environment of fierce competition, an enterprise faces multiple challenges. Thus, it has become the primary target to create competitive advantages of how an enterprise draws up strategies suitable to improve its operational effectiveness (Jaramilo et al., 2005). In the past, enterprises emphasized financial effectiveness. But now, information development has transformed their competitive basis into the intangible assets and the leadership effectiveness from previous tangible financial effectiveness. Therefore, it should include non-financial indices such as quality and customer satisfaction, which can be used for an enterprise to effectively evaluate its operational effectiveness and consolidate competitive advantages. However, if an enterprise wants to improve the organizational effectiveness, the leadership style of administrative supervisors will play a crucial role in its overall operational effectiveness. When reviewing literature related to leadership and effectiveness, we found that most papers emphasized effects of the leadership style on organizational promise and effectiveness, but few discussed correlations amongst the leadership style and the organizational effectiveness. It was also seldom considered that the leadership style may be a key factor to affect its smooth progresses implemented.

It is noteworthy that human resource has been regarded as another important factor for an organization to gain competitive advantages and realize organizational targets since the emergence and prevalence of firm resource-based views Barney (2001; Wright et al., 2001). “Human” is the theoretical basis of establishing the important assets for an organization. The success of many organizations possibly results from the leadership sagacity and will power, the technical prominence and innovation, the excellent quality or the distinguished reputation, but all these relate to “human”.

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Effects Of Leadership Style On Organizational Effectiveness